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HomeMy WebLinkAbout09/21/2010, B2 - ANNUAL REPORT FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT council ° -57°� ;2 ,o agenda REpoRt 1�N.Iba CITY OF SAN LU I S O B I S P O FROM: Michael Codron, Assistant City Administrative Officer Prepared By: Brigitte Elke, Principal Administrative Analyst SUBJECT: ANNUAL REPORT FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1. Receive and approve the Tourism Business Improvement District (TBID) Board's annual report. 2. Adopt a resolution of intention to levy and collect assessments within the TBID area in fiscal year in 2010-11 at the same rate as in fiscal year 2009-10. DISCUSSION Background In June 2008 Council adopted Ordinance 1517 (Attachment 1) establishing a tourism business improvement district as requested by the local lodging industry. The district was formed under the State's Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code and incorporated into the City's Municipal Code under Chapter 12.42. According to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State's Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report (Attachment 2) that outlines the past year's efforts and the proposed activities for use of the assessment funds in the upcoming year. In Section 35634, the law further requires that after the approval of the annual report, Council shall adopt a resolution of intention (Attachment 3)to levy an annual assessment for that fiscal year. The resolution also allows for a public hearing in order to receive any written or oral protests against the district. Annual Report On September 8, 2010 the TBID Board met in its regular monthly meeting to, amongst other agenda items, review the annual report and define its recommendation for use of the assessment funding in 2010-11 (Attachment 4— Draft Minutes). In 2009-10, the main focus of the board was the launch of the TBID's website, the branding of its logo and tagline "San Luis Obispo — Sincerely, California" by means of an extensive media campaign. For the upcoming year, the effort to "drive traffic"to the website and increase bookings for San Luis Obispo hotels will remain the focus of the district in addition to building awareness of San Luis Obispo as a travel destination. However, there are other areas in which the Board wants to expand in order to maximize booking results for the hoteliers in 3a -/ Council Agenda Report—Annual TBID Report Page 2 the City. The annual report outlines the following additional activities already under way or as being pursued: - Marketing support for the International Film Festival. The Film Festival takes place annually in March which is traditionally a slow time for tourism. Finding events that will cater to the downtime in lodging(November through March), was one of the goals set forth by the board. Even though the Film Festival is well established, it has lacked the marketing funding to take it to the next level and start attracting movie aficionados from outside the county. The TBID funding should help achieve this goal. - Collaboration with the San Luis Obispo Chamber of Commerce for improvements in the Visitors' Center and the creation of a concierge training program. This entails: o Replacement of the current hotel board with a flat screen TV monitor that rotates the. TBID members' information with a direct dial option; o Installation of a indoor/outdoor kiosk terminal incorporated into the existing building and accessible 24/7; o Concierge program offering classes to front desk staff to learn about San Luis Obispo attractions, activities, and sight seeing options. - On July 20, 2010, the City Manager approved the release of a request for proposal for Public Relations services. During its August 2010 regular meeting, the board received presentations from two contractors and recommended contracting with On the Horizon Communications for PR services through June 2011. The board continues to entertain funding support for new events happening between November and April to attract visitors to San Luis Obispo. It is therefore looking into a marathon race starting and ending downtown as well as the Straight Down Golf Tournament happening each year in November. Next Steps Assuming Council approves the annual report and adopts the resolution of intention, a public hearing will be scheduled for October 19, 2010. The public hearing will allow hoteliers to voice comment and provide an opportunity to raise a negative protest against the assessment. As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the Council has the ability to continue the proposed citywide TBID at this public hearing, unless oral or written protests are received from City hoteliers that will pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the TBID in the City of San Luis Obispo for at least one year. FISCAL IMPACT According to the City's 2009-11 Financial Plan, the TBID assessment is estimated to raise $853,800 for tourism marketing and promotion in fiscal year 2010-11 based on anticipated Transient Occupancy Tax revenue. B d- ` Council Agenda Report—Annual TBID Report Page 3 ATTACHMENTS 1. Ordinance 1517 2. Annual Report 3. Resolution of Intention 4. TBID Board Draft Minutes from September 8, 2010 �a -3 ATTACHMENT 1 ORDINANCE NO. 1517 (2008 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ESTABLISHING THE SAN LUIS OBISPO CITY TOURISM BUSINESS IMPROVEMENT DISTRICT(TBID),FIXING THE BOUNDARIES THEREOF,PROVIDING FOR THE LEVY OF A BUSINESS ASSESSMENT TO BE PAID BY HOTELS IN SUCH DISTRICT WHEREAS, on April 15, 2008, the City of San Luis Obispo Council adopted Resolution No. 9972 (2008 Series) entitled,"Resolution of the City of San Luis Obispo Declaring its Intention to Establish the San.Luis Obispo Tourism Business Improvement District(TBID);to Establish the Basis for and.to bevy the Assessment for the District and to Set Dates for the Public Hearing on the District and the Proposed Assessment"; and WHEREAS, as specified in such Resolution,the boundaries of the district encompass the City of San Luis Obispo, and there are no separate benefit zones within the district; and WHEREAS,said Resolution was published and copies thereof were duly mailed and posted, all as provided by state law andspecified in the Resolution; and WHEREAS,pursuant to that Resolution a public'meeting concerning the formation of said district was held before the City Council on May 20, 2008 at 7:00 p.m. in the City Council Chambers at City hall;and WHEREAS,also pursuant to Resolution apublic Bearing concerning the formation of said. district was held before the City Council on June 3, 2008 at 7'p.m.in the City Council Chambers at City Hall; and WHEREAS, all written and oral protests made or filed `were duly heard, and testimony for and against the proposed action was received and considered, and WHEREAS,the City Council determined that there was no majority protest within the meaning of Streets and Highways Code.Section 36525:,as written protests were not received from owners of businesses in the proposed district which would pay fifty percent (50%)or more of the assessments proposed to be levied;and WHEREAS,protests are weighted based on the assessment proposed to be levied on each hotel. For purposes of the initial formation of the district,the proposed assessment to be levied was calculated based on the assessment rate multiplied by the most recent available data for the hotels' rental revenues. NOW, THEREFORE,BE IT ORDAINED by4he CityCouncil:of the City of San Luis Obispo as follows: SECTION L Pursuant to authority granted under the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq., 01517 8�� ATTACHMENT 1 Ordinance No, 1517 (2008 Series) Page 2 the City of San Luis Obispo Tourism Business Improvement District(TBID)is.hereby established in the City of San Luis Obispo as herein set forth and all hotels in the district established by this ordinance shall be subject to any amendments made hereafter to said law or to other applicable laws. SECTION.2. The City Council of the City of San Luis Obispo.finds that hotels within the San Luis Obispo Tourism Business Improvement District will be benefited by the improvements and activities funded by assessments to be levied. SECTION 3. Chapter 12.42.(Tourism Business Improvement District)is hereby added to Title 12 (Streets, Sidewalks,and Public Places) of the San Luis Obispo.Municipal Code to read as follows: 12.42.010.TITLE.This chapter shall be known as the"City of San Luis Obispo Tourism Business Improvement District Law," 12.42.020. DEFINITIONS. (1)"City Council" shall menthe City of San Luis,Obispo City Council. (2) "City Advisory Body"shall mean the Advisory Body appointed by the City Council, pursuant to this chapter. (3)"District"shall mean the City of San Luis.Obispo Tourism Business Improvement.District (or"TBID")created by this chapter and as delineated in Section 12.42.040. (4)"Hotel"shall.mean any structure,or any portion of any structure,which is occupied or intended or designed for occupancy by transients forr dwelling; lodging or sleeping purposes, and includes any hotel,motel,bed and breakfast, or vacation home and pays Transient Occupancy Tax. For purposes of this chapter.the.definition of"hotel"shall not include RV Parks. (5) "Law" shall mean the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq., as amended. (6)"Operator" shall mean the person who is the proprietor of the hotel,whether in the capacity of owner,lessee, sublessee,mortgagee in possession,licensee or any other capacity. Where the operator performs its functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal of the managing agent shall,however,be considered to be compliance by both. (7) "Transient"means any person who exercises occupancy or who is entitled to occupancy,by reason of concession,permit,right of access,license,or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days.as full days. 12.42.030.AUTHORIZED USES.This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989(Sections 36500 et.-seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through, the promotion of scenic,recreational, cultural:and other attractions in the district as a tourist destination. It is the intent of this chapter Ordinance No. 1517 (2008 Series) ATTACHMENT 1 Page 3 to provide a supplemental,source of funding for the promotion of tourism in the district and it is not intended to supplant any other existing sources ofrevenues which may be used by the City of San Luis Obispo for the promotion of tourism. The specific services, activities and programs to be provided by the district are as follows: . A. The general promotion of tourism within the district is to include costs as specified in the business.plan to be adopted annually by the City Council. B. The marketing of the district to the travel industry in order to benefit local tourism and the local hotel industry in the district. 12.42040.BOUNDARIES.The boundaries of the TBID shall be the boundaries of the City of San Luis Obispo. 12.42.050,LEVY OF ASSESSMENT AND EXEMPTIONS. The TBID shall include all hotels located within the TBID boundaries. The assessment shall be levied on all hotels existing and future,within the City of San Luis Obispo based upon two percent(2%)of the paid gross rent charged by the operator per night for all transient occupancies. The assessment shall be collected monthly,based on two percent (20/6)of the gross rent charged by the operator per night in revenues for the previous month. New hotels within the boundaries shall not be exempt from the levy of assessment authorized by.Section 36531 of the law. Assessments pursuant to the.TBID shall not be included in gross room.rental revenue for purpose of determining the amount of the transient occupancy tax. The value of rooms for extended stays of more than thirty(30)consecutive calendar days shall be exempt from the levy of assessment: 12.42.060.ANNUAL REVEEW OF ASSESSMENT. All of the assessments imposed pursuant to this chapter shall be reviewed by the City Council annually,based upon the annual report prepared by the Advisory Bodyappointed pursuant to this chapter and Sections 36530 and 36533 of the law. Atter approval of the annual report'the City Council shall follow the hearing process as outlined in Section 36534 of the law. At the public hearing the City Council shall hear and consider all protests. If written protests are received from hotel businesses in the district paying fifty percent(50%)percent or more of the annual assessment,no further proceedings to continue the levy of assessments shall take place. The protests shall be weighted based upon the annual assessment for the prior year by each hotel business. 12.42.070.IIdPOSITION OF ASSESSMENT. The City Council hereby levies and imposes and orders the collection of an additional assessment to be imposed upon hotels in the district described above,which shall be calculated pursuant to Section 12.42.050 above. Such levy shall begin on August 1,.2008, 12.42.080. USE OF REVENUE. The improvements and activities to be provided by the TBD)will be funded by the levy of the assessments. The revenue from the levy of assessments within the TBID shall not be used to provide improvements or activities outside the TBID or for any purpose other than the purposes specified in the resolution of intention. All funds shall be expended consistent with the purposes of this act. Funds remaining at the end of any TBD) term may be used in subsequent year in which TBID assessments are levied as long as they are used consistent with the requirements of this Section. The City Council shall consider Ordinance No. 1517 (2008 Series) ATTAUHME I 1 Page 4 recommendations made by the City Advisory Body created by Section 12.42.100 of this chapter as to the use of assessment revenue. 12.42.090:DELINQUENCY,PENALTY,AND INTEREST. Any hotel that fails to remit any assessment imposed by this ordinance within the time required shall pay a penalty in accordance with the policies,regulations, and ordinances of the City of San Luis . . Obispo. Any and all remedies available to the City of SanLuis Obispo for non payment of assessments or taxes shall be applicable in the event of non payment of an assessment under this chapter. 12.42.100 ADVISORY BODY. An advisory body comprised of five(5) members is hereby created to carry out the functions of an advisory board under Section 36530 of the law. Said advisory body shall be referred to as the Tourism Business Improvement District Board or TBID Board. The members of the TBID Board shall be appointed following the City's recruitment guidelines for Advisory Bodies. All applicants and members must be operators of hotels within the district, or employed by the operator of such a hotel. The length of the term for each individual member of the TBID Board shall follow the guidelines of all City Advisory Bodies and is limited to eight(8) subsequent years. Members of the TBID Board shall serve at the pleasure of the City Council and may be removed by the,City Council at any time. If a member no longer represent the lodging establishment for which he or she was selected to the TBID Board,his or her seat will be vacated and a new.member will be appointed. The TBID Board shall review the implementation of this chapter, the implementation of programs and activities funded through this chapter, and advise the City Council on the amount of the district's assessments and on the services,programs, and activities to be funded by the Assessments, and shall perform such other duties as required by the law, including preparing the Annual Report required by Section 36533 of the.law.; The Annual Report.shall be submitted to the City Council no later than 90 days-before the new budget year. The City Council shall ensure that the TBID Board has timely access to all public information regarding collection,disbursement,and uses of the funds collected under the terms of this ordinance 12.42.110 MODIFICATION OR DISESTABLISHMENT. The City Council,by ordinance,may-modify the*visions of this chapter and may disestablish the district or parts of the district, after adopting.a.resolution of intention to such effect. Such resolution shall describe the proposed change or changes,or indicate that it is proposed to disestablish the area, and shall state the time and place of a hearing to be held by the City Council to consider the proposed action. If the operators of hotels which pay fifty percent(50%) or more of the assessments in the district file a petition with the Clerk of the City of San Luis Obispo to adopt a resolution of intention to modify or disestablish the district,the City Council shall adopt such resolution and act upon it as required by law. Signatures on such petition shall be.those of a duly authorized representative of the operators of hotels in the district. in the event the resolution proposes to modify any of the provisions of this chapter,including changes in the existing assessments or in the existing boundaries of the district, such proceedings shall. terminate if protest is made by the operators of hotels which pay,fifty percent(50%)or more of the assessments in the district,or in the district as it is proposed to be enlarged. Ordinance No. 1517 (2008 Series) ATTACHMENT 1 Page 5 In the event the resolution proposes disestablishment of the district,the City Council shall disestablish the district;unless at such hearing,protest against disestablishment is made by the operators of hotels paying fifty percent(50%)or more of the assessments in the district.. SECTION 4. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the.decision.of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase hereof,irrespective of the fact that any one or more of the sections, subsections, sentences, clauses or phrases hereof be declared invalid or unconstitutional. SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against it, shall be published at least five(5) days prior to its final adoption, in The Tribune, a newspaper published and circulated in the City of San Luis Obispo. This ordinance shall go into effect at the expiration of thirty(30) days after its final adoption. INTRODUCED on the P day of June 2008, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 17'h day of June 2008, on the following roll call vote: AYES: Council Members Carter, Mulholland and Settle, Vice Mayor Brown and Mayor Romero NOES: None ABSENT: None Mayor David F. Romero ATTEST: udt'ey er City Cl H APPROVED AS TO FORM: onathanwell dilrAtforney Ij crty°fM ACHMEW 2 •= san lues osispo TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FROM: TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD MEMBERS: John Conner, Chair Tim Billing, Vice-Chair Dean Hutton Jamie Wallace Joel Koper Dave Brown Susan Norris Prepared By: Brigitte Elke, Principal Administrative Analyst SUBJECT: TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD ANNUAL REPORT DISCUSSION Establishment of the Tourism Business Improvement District In June 2008 Council adopted Ordinance 1517 establishing the tourism business improvement district (TBID) in the City of San Luis Obispo as requested by the local lodging industry. The assessment for the district became effective on October 1, 2008 and the use of funds was defined in Section 12.42.030 of the Municipal Code as follow: "This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seg., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination. " Advisory Body At the time the TBID ordinance was adopted, as required by State law, Council established an advisory board and elected five hoteliers to the newly created TBID Board to advise Council on the use of the assessment. Based on the Board's recommendation, the number of board members was increased to seven in September 2009. Tourism Business Improvement District"inual Report ` J Advisory Board Members ATTACHMENT 2 Name Property Tenn John Conner- Chair Petit Soleil 3/31/2013 Tim Billing- Vice-Chair Embassy Suites 3/31/2013 Dean Hutton Apple Farm 3/31/2013 Jamie Wallace Courtyard by Marriott 3/31/2011 Joel Koper Holiday Inn 3/31/2011 Susan Norris Sands Inn & Suites 3/31/2012 Dave Brown Downtown Travelodge 3/31/2012 Role and Function of the TBID Board In addition to the governing City ordinance, the TBID Board established its bylaws and further defined its role and functions as: The functions and duties of the TBID BOARD shall include, but not be limited to, the following: A. Planning a comprehensive program to promote tourism to the City of San Luis Obispo and prepare an annual marketing program consistent with industry goals and objectives. B. Develop advertising and promotional programs and projects to benefit the lodging industry in San Luis Obispo. C. Present an annual assessment report to the City Council regarding the implemented promotional programs and projects. D. Perform any other lawful tasks as directed by the Council. The board set its monthly meetings on the second Wednesday of the month at 2 pm. In 2009-10, the board met in 12 regular monthly meetings, a board retreat, and four special meetings for business related to the website launch and individual funding requests. In order to keep the lodging constituency abreast of all TBID business, the board assigned liaisons and each board member is responsible for communication with his/her respective group of hotels. 2009-10 Work program During fiscal year 2009-10, the TBID continued its marketing efforts with Level Studios and in August 2009 launched its new lodging website under www.sanluisobispovacations.com./ www.sincerelycalifomia.com. The website features the newly developed logo and tagline"San Luis Obispo—Sincerely, California"and showcases all lodging establishments in San Luis Obispo including amenities, things to do (day trips, outdoor activities, shopping, dining, wine tasting etc.) events, and a local legends section. The 2009-10 marketing campaign continued to build brand awareness for the new tourism brand "Sincerely, California"by means of an extensive media campaign. Additionally,the agency continued building content for the website including monthly promotions for stays in San Luis Obispo. In order to make certain that the newly developed logo and tagline were used properly by all entities displaying it, the TBID board commissioned a style guide which was produced by Level Studios. �� /IJ Tourism Business Improvement District,....nual Report RTTRCHMENT 2 The media plan utilized the following strategies: - continued testing of ads and audience response to build the most effective campaign; - utilize digital advertising to build continued exposure with a seasonal emphasis; - utilize social and event content to build media message; - form partnerships with other sites, marketing bodies, travel and event planners. The following media mix was applied in pursuit of the above mentioned strategy: - print publications including consumer magazines and trade publications - online banner ads - Search Engine Optimization (SEO) - Social Media Public Relations Additional Marketing efforts and campaigns The TBID board commissioned the following additional components to increase its tourism marketing efforts and events promotion: - Funding allocation to the San Luis Obispo Visitors and Conference Bureau (VCB) in order to participate in the effort to build awareness for San Luis Obispo County. The TBID board also recommended payment of individual VCB membership fees in order to provide a direct benefit to the properties paying the assessment fee. - Central Coast Tourism Council membership including a San Luis Obispo ad in the organization's tourism guide. - Continuation of the STR report for occupancy comparison between various counties and an additional report comparing San Luis Obispo occupancy to Pismo Beach and Paso Robles. - Support of two new major events in San Luis Obispo: o Sunset's "Savor the Central Coast"which will take place September 30 through October 3, 2010. The TBID board funded the event bags that will be handed out to all ticket holders. o The inaugural GranFondo bicycle event starting and finishing in Mission Plaza. This event will take place October 23, 2010. - Additional funding was given to the San Luis Obispo County Airport in support of direct marketing effort for the Airport. 2010-I1 Activities,Contracts, and Programs In June 2010, the contract with Level Studios expired. Based on the satisfactory performance and campaign success, the TBID board recommended extending the contract for an additional two years. The original contract entered into in September 2008 allowed for two two-year extensions. On July 6, 2010, the City Council approved the contract extension with a first year allocation of$750,000 and an expiration date of June 30, 2012. The recommended funding allocation was based on the agency's proposal which will implement a transition from brand building to an awareness campaign for San Luis Obispo as a tourism destination. The primary target market is the greater Los Angeles area traditionally San Luis Obispo's largest feeder market. Secondary markets are the Bay Area, Bakersfield and Fresno. Tourism Business Improvement District,.nual Report MAGHMEI'1 12 The website will see new features in an itinerary builder, search engine integration, and special promotion development. Most of the funding is however directly tied to the media buy with $500,000 going towards print ads, banners, social ads, social networking, pay-per-click, SEO, and email campaigns. Additional Marketing Components During its budget deliberations, the board recommended several additional marketing components to increase events promotion and tourism friendly visitors and lodging information. To that effect, the following components were considered and approved to date: - Marketing support for the International Film Festival. The Film Festival takes place annually in March which is traditionally a slow time for tourism. Finding events that will cater to the downtime in lodging(November through March), was one of the goals set forth by the board. Even though the Film Festival is well established, it has lacked the marketing funding to take it to the next level and start attracting movie aficionados from outside the county. The TBID funding should help achieve this goal. - Collaboration with the San Luis Obispo Chamber of Commerce for improvements in the Visitors' Center and the creation of a concierge training program. This entails: o Replacement of the current hotel board with a flat screen TV monitor that rotates the TBID members' information with direct dial option; o Installation of a indoor/outdoor kiosk terminal incorporated into the existing building and accessible 24/7; o Concierge program offering classes to front desk staff to learn about San Luis Obispo attractions, activities, and sight seeing options. - On July 20,2010, the City Manager approved the release of a request for proposal for Public Relations services. During its August 2010 regular meeting, the board received presentations from two contractors and recommended contracting with On the Horizon Communications for PR services through June 2011. The board continues to entertain funding support for new events happening between November and April to attract visitors to San Luis Obispo. It is therefore looking into a marathon race starting and ending downtown as well as the Straight Down Golf Tournament happening each year in November. Additional Activities The TBID board has established an events promotion task force to review the many funding requests the board receives. This task force meets at the board's request to evaluate funding requests received. Most of the requests ask for promotional support for events happening in San Luis Obispo. The board will generally consider requests for events or activities that have the potential to generate overnight stays and room occupancy. The same three-person task force is participating in a joint-committee with the Promotional Coordinating Committee to that same effect. The joint-committee is working on a streamlined process for applicants to better and more efficiently determine which entity should consider the funding request. This process will include the Grants-In-Aid program in order to avoid multiple funding through the City to the same organization. oP- l r� Tourism Business Improvement Districtrual Report ATTACHMENT2 Financial Statement Income Time Frame Amount TBID Assessment July 2009—June 2010 $ 899,024.00 Investment Earnings $ 17,465.00 Starting,Balance_ $ 528,800.00 Total Income Fiscal Year 2009-10 $ 194459280.00 Expenditure 2009-10 Level Studios Contract _ $ 768,000.00 SLO VCB $ 95,000.00 STR Report $ 2,800.00 Central Coast Tourism Council $ 8,060.00 GranFondo Bicycle Event $ 30,000.00 Sunset Savor the Central Coast $ 24,000.00 SLO County Airport Committed—not expended $ 25,000.00 Total Expenditure $ 9521860.00 Expenditure 2010-11 Committed Agency Contract July 2010—June 2011 $ 750,000.00 Public Relations July 2010—June 2011 $ 45,000.00 SLO Chamber of Commerce July 2010—June 2011 $ 53,400.00 SLO Film Festival $ 35,000.00 SLO VCB July 2010—June 2011 $ 95,000.00 SLO Symphony $ 2,000.00 Smith Travel Research $ 3,000.00 Administrative Cost Estimate/4% of assessment $ 32,000.00 Total Expenditure Committed in 2010-I1 $11015 400.00 Anticipated Carryover 2010-11 $_ 505,555.00 Budget.Estimate _ Financial Plan 2009-11 $ 853,800.00 Total Estimated Budget 2010-11 $173599,355.00 Proposed Assessment for 2010-11 The TBID Board does not recommend any changes in the levy of the assessment. The assessment is recommended to continue at 2% of gross receipts to be submitted.monthly to the City of San Luis Obispo together with the Transient Occupancy Tax. J � ✓ ATTACHMENT 3 RESOLUTION NO. (2010 Series) RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING ITS INTENTION TO CONTINUE THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT,TO CONTINUE THE BASIS FOR AND TO LEVY THE ASSESSMENT FOR THE DISTRICT,AND TO SET DATES FOR THE PUBLIC HEARINGS ON THE DISTRICT AND THE ASSESSMENT FOR.2010-11 WHEREAS the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District requested the City of San Luis Obispo establish such a self-assessment improvement district in 2008; and WHEREAS the San Luis Obispo Tourism Business Improvement District was established in July 2008 and incorporated into the Municipal Code under Chapter 12.42; and WHEREAS the City Council appointed an advisory board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS the City Municipal Code and the Parking and Business Improvement Law require the advisory board to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS this report was filed and approved by the City Council on September 17, 2010. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: a) The San Luis Obispo City Council proposes to continue the established Tourism Business Improvement District in the City of San Luis Obsipo in accordance with City Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections 36500 et seq. (Parking and Business Improvement Law of 1989). b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer marketing programs that increase overnight stays. c) The assessment will be levied and allocated by the City of San Luis Obispo. �a a� MACHU 3 d) The assessment is proposed to be levied on all "hotels", as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house,motel, studio hotel,bachelor hotel, lodging house,rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. e) The assessment shall be based on two percent (2%) of gross room rent. f) New hotels, opening for business after the date the assessment proposed herein is levied, shall be subject to the assessment in accordance with San Luis Obispo Municipal Code Chapter 12.42. g) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36535 of the Streets and Highways Code, is to allow for comments on the District and proposed assessment, and is hereby set for 7 P.M., Tuesday, October 19, 2010, before the City Council of San Luis Obispo at the City Council Chambers at 990 Palm Street, San Luis Obispo, California. h) At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District,or the furnishing of specified types of improvements or activities will be heard. i) Any protest against the continuation of the City of San Luis Obispo Tourism Business Improvement District and the levying of the assessment, or any aspect thereof, may be made in writing. A protest may be withdrawn at any time before the conclusion of the public hearing. Any written protest shall contain a description of the business in which the person signing the protest is not shown on the official records of the City of San Luis Obispo as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the authorized representative of the business. Any protest as to the regularity or evidence of the proceedings shall be in writing and clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo, CA 93401. j) If, at the conclusion of the public hearing, there are of record written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no further proceedings to continue the San Luis Obispo Tourism Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Improvement District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the 13a s ATTACHMENT 3 majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the San Luis Obispo Tourism Improvement District. BE IT THEREFORE RESOLVED, the City Clerk is instructed to provide notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36534, subpart (7) of the Streets and Highways Code, to wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City no less than seven days before the public hearing. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of , 2010. ATTEST: David F. Romero, Mayor Elaina Cano, City Clerk APnneDietrick, S TO FO City Attorney FCP �� Tourism Business Improvement District Board ATTACHMENT 4 Minutes Wednesday, September 8, 2010 2:00 pm Council Chamber— City Hall DRAFT CALL TO ORDER: Chair John Conner PRESENT: Wallace, Koper, Brown, Hutton, Norris, Billing STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst PUBLIC COMMENT There was no public comment. CONSENT AGENDA ACTION: Moved Hutton/Wall ace e e consent agenda as presented. Motion carried 7:0 Special Item Board agreed to hear the item on the Straight Down Tournament due to the short time f e to participate in the promotional opportunity. BUSINESS ITEMS 1. MONTHLY REPORTS BY CONTRACTORS Chamber of Commerce Lindsey Miller, Marketing Director for the Cha er of Commerce, reported that the commissioned hotel board is now up and ring. The MySLO concierge program is also ready and visits to the lodging properties ar anned to promote the program. The commissioners will be contacted regarding dates fo eir introductory training course. Work on the 24/7 kiosk is moving along nicely and th rminal should be installed by October. Level Studios Ryan Allsho , Account Manager with Level Studios, presented the new and upcoming items the age is working on. He reported that the website now sees about 300 unique visits per day d 100 sign ups for the newsletter per week. 23% of visitors are going to the 'find a hotel' ge. A new web page outlining wine events for September Wine Month has been added. He ATTACHMENT 4 introduced the show booth for Savor the Central Coast and the photo booth that will be used during the main event Saturday and Sunday. When presented with the gadget ideas, Bo Chair Conner asked that cooking related options be considered as wine produc probably be plentiful. On the Horizon Communications Holly Padove gave a quick recap of last mo efforts and the planned projects moving forward. She mentioned that last et the foundation that can now be built on. She mentioned that all clips wi osted on a free service online where commissioners can access them any time. T erial is interactive and can be linked to other websites. Upcoming press releases ' oncentrate on the art scene and coincide with ARTS Obispo's Open Studios Tour. T ency asked that commissioners forward any ideas or topics of interests for PR releases. 2. 2011-13 GOAL SETTING The board members had received the 2009-11 Council goals establishe a board in 2008. One item was discussed and will be forwarded for the 2011-1 setting process. The board will continue this item in October to add additional or Council to consider. Making Downtown Events easier more cost effective for new groups and as a City embrace and facilitate events as as possibilities. Possibly another advisory body between PCC/TBID/Parks&Rec to facilitate quarterly m gs with applicants to help them sort through the mandatory permitting process. 1 3. ANNUAL TBID REPORT The board had received the draft annual report for review, comment, and modifications. Staff was asked to correct dates in the financial statement section. ACTION: Moved Wallace/Billing to approve the annual report and forward to Council for consideration on September 21, 2010. Motion carried 7:0 I� 4. CENTRAL COAST TOURISM COUNCIL Matthew Gibbons from Stnker Media went over the membership benefits o rough CCTC and presented the Visitors Guide (50,000 copies) and new map fo 50,000 copies). He commented the board's agency on the fantastic ad creativ was used on the back cover of the guide last year. They were hoping that the boa prove another ad in the guide and guaranteed the same placement. Last ye ad was placed on the back side. ACTION: Moved Bro o per to renew the annual membership for$560 and commission the bcover ad in the Visitors' Guide for$7,850. Motion carried 7:0 The asked the agency to coordinate the ad creative directly with Striker Media. ATTACHMENT 4 5. STRAIGHT DOWN GOLF TOURNAMENT Staff introduced the topic and what was asked from the board at this po' even that the tournament will take place in November, promotional efforts h start prior to the October board meeting. The commissioners discussed the potAntiatCo grow this tournament and to build a lasting partnership with the organizers. ACTION: Moved Bill " allace to give promotional support to the Straight Down Golf Tou ent up to $30,000. The actual amount and promotional plan will be based events subcommittee' recommendation. Motion carried 7:0 TBID LIAISON REPORTS 1. HOTELIER UPDATES Board Chair Conner informed the commissioners that all properties had visited and that quarterly visits are planned to keep the constituency abreast of th D's efforts and available marketing material. 2. VCB UPDATE Commissioner Wallace mentioned that t CB is all about the Savor event coming up, in additional to efforts for Wine Mont a organization's marketing plan has been finalized. 3. SLO CHAMBER OF MMERCE AND CCTC — covered under agenda items. 4. PCC UP E — Board Chair and PCC liaison Conner mentioned that the PCC released an RFP in-county events promotion and that the committee will also establish its goals for ncil. The meeting adjourned at 3:45 pm. MEER' AGENDA.. C DATE Ole�ITEM #_ MINUTES SPECIAL AND REGULAR MEETINGS OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, JUNE 159 2010 COUNCIL CHAMBER, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA 4:00 P.M. —SPECIAL MEETING ROLL CALL: Council Members Present: Council Members John Ashbaugh, Jan Howell Marx, Allen K. Settle, Vice Mayor Andrew Carter, and Mayor Dave Romero City Staff Present: Katie Lichtig, City Manager, Christine Dietrick, City Attorney, Shelly Stanwyck, Assistant City Manager,and Elaina Cano, City Clerk, were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. BUSINESS ITEMS 1. DAMON GARCIA SPORTS FIELDS— FIELD MAINTENANCE UPDATE. Deputy Director of Public Works Lynch presented the agenda report and along with Public Works Director Wafter and Parks Maintenance Supervisor Todd Beights, responded to Council questions. Public Comments There was no public comment. —end of public comments— ACTION: Council supported the continued low cost turf strengthening activities. 2. APPROVAL OF PUBLIC ART FOR THE PORTOLA FOUNTAIN. Public Art Coordinator Shannon Bates presented the agenda report and responded to questions. Artist Jeffrey Laudenslager spoke about the art piece being presented and responded to Council questions. Public Comments k � , ud., Ct - I City Council Meeting - Page 2 Tuesday, June 15, 2010 The following citizens spoke in support of the art piece: Ann Reamm. Chairperson of Art in Public Places Committee Gini Griffin, San Luis Obispo Pierre Rademaker. San Luis Obispo Lando Fike, San Luis Obispo —end of public comments— Council discussion ensued, during which Council spoke in support of installation, and commended the artist. Mayor Romero spoke of his concern regarding the perception of City spending for Public Art. Mayor Romero asked staff to make a special effort to inform the community that these funds were earmarked for this purpose. ACTION: Moved by Settle/Marx to approve Staffs recommendation as presented; motion carried 5:0. 3. DOWNTOWN MAINTENANCE AND BEAUTIFICATION. Director of Public Works Walter introduced this Rem, following which Senior Civil Engineer Bridget Fraser presented the agenda report and responded to Council questions. Public Comments Pierre Rademaker. San Luis Obispo, spoke in support of staff reccomendations. Ermina Karim, Chamber of Commerce, thanked staff for the investment in the downtown and encourged continued leadership. Deborah Cash, Executive Director - Downtown Association, thanked staff for their efforts and spoke about the importance of lighting in the downtown area. Ms. Cash stated that a commemorative plaque program is being considered. Bob Seeley, San Luis Obispo, spoke about the tree lighting in the downtown area and spoke in support of the utility art boxes. Landy Fike, San Luis Obispo, spoke about her concerns regarding the current lighting in the downtown area and suggested an alternative. Public Art Coordinator Bates presented an agenda report regarding the Utility Box Beautification Program and responded to Council's comments and questions. Public Comments City Council Meeting Page 3 Tuesday, June 15, 2010 The following citizens spoke in support of the Utility Box Beautification Program Deborah Cash, Executive Director Downtown Association Lynn Hessler, San Luis Obispo —end of public comments— Public Art Coordinator Bates spoke about the Utility Box Beautification Program. Council Member Settle and Mayor Romero spoke in support of staffs recommendation but suggested adding a conduit component for additional lighting in the downtown. City Manager Lichtio suggested that staff research the possibility of adding a conduit component to be included with the bid aftematives. Ms. Lichtig stated that the conduit component should be secondary to achieving all the accomplishments included in the Option and if there is additional resources available, then the conduit component would be considered. Council concurred. Mayor Romero thanked staff for their efforts and spoke in support of Option 1 with the addition of the conduits and the painting of additional poles. ACTION: Moved by Romero/Marx to: Approve work scope Option 1 which includes completing improvements on three blocks of Higuera Street from Morro to Broad and direct staff to proceed with preparation of construction documents, also including, as aftemate bid items, conduits for future lighting along the three blocks as well as additional painting of street light/traffic poles, installation of news racks and installation of trash cans along Higuera north and south of the three block area. 2. Authorize the City Manager to approve the plans and specifications for advertising and award the construction contract if bids are within the approved budget of$640,000. 3. As recommended by the Capital Improvement Plan Committee, approve funding in the amount of$34,000 for the downtown utility box public art project; motion carried 5:0. ADJOURN TO A REGULAR MEETING 7:00 P.M. —REGULAR MEETING Mayor Romero called the regular meeting to order at 7:00 p.m. All Council Members were present. Mayor Romero presented Parks and Recreation Director Kiser a proclamation in recognition for her years of service. 05=0 oj-�5 City Council Meeting -- Page 4 Tuesday, June 15, 2010 PUBLIC COMMENT Gary Fowler, San Luis Obispo, spoke about his concerns regarding parking fees and enforcement. Rose Shaolev, spoke about her concerns regarding the City's bid process and getting projects done in a timely manner. CONSENT AGENDA Public Comment Christine Rogers, Energy Watch Partnership, spoke in support of the Energy Watch Partnership. Gary Fowler, San Luis Obispo, spoke about his concerns regarding the donation to the City from Achievement House, Inc. Parks and Recreation Director Kiser explained the process of accepting the donation from the Achievement House, Inc. Marie Brinkmever, Executive Director of RSVP, requested funding to the RSVP program. Edith Kahn, San Luis Obispo, AIDS Support Network, expressed her gratitude for the funding to the AIDS Homeless Prevention and Supportive Housing Program. Carl Hansen, Food Bank Coalition, expressed his gratitude for the funding to the Food Bank. Suzanne McFarlane, expressed her gratitude for the funds received for the Caring Callers Program. Brian Hermanson, San Luis Obispo, expressed his gratitude of the Council's support to cultural activities. Patty Thaver, San Luis Obispo, thanked Council for their support to the San Luis Obispo Symphony. By consensus Council agreed to pull Item C4, C10 and C11 for further discussion. CI - 4 City Council Meeting Page 5 Tuesday, June 15, 2010 C1. PARTICIPATION IN THE SAN LUIS OBISPO COUNTY ENERGY WATCH PARTNERSHIP. ACTION: Moved by Settle/Ashbaugh to adopt Resolution No. 10185 (2010 Series) authorizing participation in the San Luis Obispo County Energy Watch Program; motion carried 5:0. C2. APPROPRIATIONS LIMIT FOR 2010-11. ACTION: Moved by Settle/Ashbaugh to adopt Resolution No. 10186 (2010 Series) establishing the City's appropriations limit for 2010-11; motion carried 5:0. C3. REVISIONS TO WATER FIXTURE CHARGES. ACTION: Moved by Settle/Ashbaugh to adopt Resolution No. 10187 (2010 Series) revising water fixture charges, based on current material costs; motion carried 5:0. C4. SAN LUIS GARBAGE COMPANY FRANCHISE FOR SOLID WASTE RECYCLING AND GREEN WASTE SERVICES. Tom Martin, San Luis Garbage, stated that he has been researching property to relocate his facility. Council discussion ensued during which they commended Mr. Martin and his relationship with the City. ACTION: Moved by Ashbaugh/Settle to adopt Resolution No. 10188 (2010 Series) declaring the City's intent to grant a franchise to San Luis Garbage Company for solid waste, recycling and green waste service, and set a public hearing for July 6, 2010, to introduce an ordinance to grant the franchise; motion carried 5:0. C5. FOXPRO APPLICATION REPLACEMENT—TIMECARDSISCHEDULING. ACTION: Moved by Settle/Ashbaugh to: 1. Award a contract to IntellTime for replacement of the FoxPro timecard application. 2. Award a contract to Telestaff for replacement of the Fire Department's FoxPro scheduling application and the Police Department's Speedshift scheduling application. 3. Authorize the City Manager to execute these contracts totaling $142,034; motion carried 5:0. C6. ORDINANCE ADDING SECTION 1.08.150 TO CHAPTER 1.08 OF THE SAN LUIS OBISPO MUNICIPAL CODE REQUIRING THAT CITY TAXES BE PAID PRIOR TO CLAIMANTS SEEKING JUDICIAL RELIEF. ACTION: Moved by Settle/Ashbaugh to adopt Ordinance No.. 1549 (2010 Series) ; motion carried 5:0. � 1 - s I City Council Meeting Page 6 Tuesday, June 15, 2010 C7. AGREEMENT WITH ACHIEVEMENT HOUSE INC. FOR CONCESSIONAIRE AT LAGUNA LAKE GOLF COURSE. ACTION: Moved by Settle/Ashbaugh to: 1. Accept a donation from Achievement House, Inc. for$30,000 in improvements to the Laguna Lake Goff Course pro-shop. 2. Enter into a 5-year agreement with Achievement House, Inc. to provide a food and beverage concessionaire at Laguna Lake Golf Course. 3. Authorize the Mayor to execute the agreement; motion carried 5:0. C8. 2010-11 HUMAN RELATIONS COMMISSION (HRC) GRANTS-IN-AID (GIA) FUNDING RECOMMENDATIONS. ACTION: Moved by Settle/Ashbaugh, as recommended by the HRC, to approve the 2010-11 GIA allocations and authorize the City Manager to execute agreements with each grant recipient; motion carried 5:0. CS. ENVIRONMENTAL GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION'S NATURE EDUCATION FACILITIES PROGRAM. ACTION: Moved by Settle/Ashbaugh to adopt Resolution No. 10189 (2010 Series) authorizing staff to complete and submit an application for grant monies in the amount of$100,000 from the California Department of Parks and Recreation's Nature Education Facilities Program to supplement City monies in the design, manufacture and installation of informational kiosks at various City open space properties; motion carried 5:0. C10. 2010-11 CULTURAL ACTIVITIES GRANTS-IN-AID (GIA) FUNDING. Council Member Marx asked for clarification regarding the reallocation of any excess funds. City Manager Lichtig confirmed that any excess funds will be allocated for future use. AC71ON: Moved by Carter/Marx, as recommended by the Promotional Coordinating Committee (PCC), to: 1. Approve the 2010-11 Grants-in-Aid (GIA) allocations in the amount of$89,572. 2. Authorize the City Manager to execute the individual agreements with each grant recipient; motion carried 5:0. C11. REFERRAL OF MARGARITA AREA SPECIFIC PLAN AMENDMENT INITIATIVE TO STAFF FOR IMPACTS ANALYSIS. (DIETRICK) City Attorney Dietrick requested direction from Council to staff to move forward with an analysis recognizing the time constraints associated with creating the analysis and recognizing what the scope of report could be in the short time frame allotted. In addition, Ms. Dietrick suggested Council request other items, pursuant to the statutory section, that they would like to have considered in the analysis if necessary. DArLST�:+ City Council Meeting Page 7 Tuesday, June 15, 2010 Council discussion ensued during which they requested that the following information be included in the analysis: history of the process and location and ties to the Damon- Garcia Sports Fields, impacts on the Margarita Area Specific Plan, Orcutt Area Specific Plan, and Airport Area Specific Plan, traffic and circulation impacts, optional uses for the land, environmental and fiscal impacts. ACTION: Moved by Ashbaugh/Settle, pursuant to California Elections Code, Section 9212, refer the proposed initiative to amend the Margarita Area Specific Plan to eliminate a portion of the currently planned Prado Road alignment to staff and direct staff to prepare a report to the City Council on the specified impacts of the initiative on City finances and policies; motion carried 5:0. PUBLIC HEARINGS 4. ADOPTION OF 2010-11 BUDGET. City Manager Lichtig introduced this item, following which Acting Director of Finance & Information Technology Malicoat presented the agenda report and responded to questions. City Manager Lichtig explained the purpose of the Sustainability Task Force as an advisory group selected by Ms. Lichtig to learn more about the City's financial situation and to come up with a strategic plan for addressing the City's financial sustainability over the course of next five years. Membership on this task force will be representatives from the community, members from the City's bargaining groups, and members from other stakeholder groups. Mayor Romero opened the public hearing. Stephen Barasch, San Luis Obispo, spoke about his concerns regarding the budget. Mayor Romero closed the public hearing. Council Member Marx spoke of her concerns regarding the reduction of the training and education program budget for the Fire Department and suggested that these funds be re-considered if unexpected funds become available. Fire Chief Callahan explained that the submissions by the Fire Department were ranked by priority and the recommended reductions were the least onerous. Vice Mayor Carter spoke in support of staffs recommendations and the overall process. Council Member Settle spoke about his concerns regarding the impact of PERS and of his support of staffs recommendations. City Council Meeting Page 8 Tuesday, June 15, 2010 Council Member Ashbaugh spoke about his concerns regarding the reduction to the training budget for the Utilities department. Utilities Director Mattingly reassured Council that staff will continue to be properly trained. Mayor Romero spoke in support of staffs recommendation and commended staff for presenting a comprehensive report. ACTION: Moved by Carter/Settle to adopt Resolution No. 10190 (2010 Series) approving the 2009-11 Financial Plan Supplement and 2010-11 Budget; motion carried 4:1 (Marx opposed). Council Member Marx stated her opposition to the motion was due to the reductions to recommendations 21, 22, 23 25, and 26 on pages D-27 to D30. Vice Mayor Carter commended Ms. Lichtig for convening the Sustainability Task Force and the community members which will serve on the task force. Council Member Settle concurred. Council recessed at 9:10 p.m. and reconvened at 9:20 p.m. with all members present. 5. 2009 GENERAL PLAN ANNUAL REPORT(GPI 37-10). Deouty Director of Long Range Planning Murry introduced this item, following which Associate Planner Dunsmore presented the agenda report and responded to questions. Mayor Romero opened the public hearing. There was no public comment. Mayor Romero closed the public hearing. Deouty Director of Long Range Planning Murry stated that staff will begin to evaluate the current circulation element and land use element programs. Council discussion ensued during which they discussed the zoning of the properties on Calle Joaquin. ACTION: Moved by Ashbaugh/Settle, as recommended by the Planning Commission, to accept the 2009 annual report on the General Plan and direct staff to address modifications to the zoning for the Calle Joaquin properties to add an S-Overlay zone during the annual zoning ordinance modifications; motion carried 5:0. 6. AMENDMENTS TO THE CITY'S RESIDENTIAL GROWTH MANAGEMENT POLICIES AND ORDINANCE INCLUDING CHANGES TO LAND USE ELEMENT POLICIES 1.10.2. 1.10.3. AND TABLE 2 AND TO MUNICIPAL CODE SECTION 17.88 (GP/ER 133-09). ENKA= City Council Meeting -' Page 9 Tuesday, June 15, 2010 Deputy Director of Long Range Planning Murry introduced this item, following which Associate Planner Dunsmore presented the agenda report and responded to questions. Mayor Romero opened the public hearing. Clay Appleton, spoke in support of staffs recommendation. David Gray, San Luis Obispo, spoke in support of staffs recommendation. John Evans, Canon Engineering Corporation, spoke in support of staffs recommendation. Ermina Karim. Chamber of Commerce, spoke in support of staffs recommendation. Jeanne Helphenstine, San Luis Obispo, spoke in support of staffs recommendation. Steve Delmartini, San Luis Obispo, spoke in support of staffs recommendation. Mayor Romero closed the public hearing. ACTION: Moved by Ashbaugh/Carter to: 1. Adopt Resolution No. 10191 (2010 Series) to amend General Plan Land Use Element Policies 1.10.2, 1.10.3, and Table 2 and to adopt a Negative Declaration. 2. Introduce Ordinance No. 1550 (2010 Series) to amend MC 17.88, the Residential Growth Management Regulations; motion carried 5:0. COUNCIL LIAISON REPORTS Mayor Romero reported on his attendance at the Whale Rods Commission, Laguna Middle School Community Awards Assembly, Nacimiento Water Project, Student Community Liaison Committee, Mayor's Selection Committee, and Mayor's Luncheon meetings. Council Member Marx reported on her attendance at the California Channel Counties, Citizen Emergency Response Team Graduation, Community Garden Dedication, and SLOCOG meetings. Council Member Settle reported on his attendance at the Revenue Taxation Committee meeting in Sacramento, and PAC Facilities Committee meeting.. Council Member Ashbaugh reported on his attendance at the UCSB Economic Forecast, Water Resources Advisory Committee, Prado Day Center Board, and Zone 9 Committee. meetings. COMMUNICATIONS None o (" City Council Meeting Page 10 Tuesday, June 15, 2010 There being no further business to come before the City Council, Mayor Romero adjourned the meeting at 10:35 p.m. Elaina Cano, CMC City Clerk APPROVED BY COUNCIL: xod"dl0 °°°councit j acEnaa wpont cam CITY OF SAN LU IS O B I S P O FROM: Elaina Cano, City Clerk SUBJECT: AMENDMENTS TO THE CITY'S CONFLICT OF INTEREST CODE RECOMMENDATION: Adopt a resolution amending the City's Conflict of Interest Code. DISCUSSION Background The Political Reform Act (PRA) requires local government agencies to adopt and implement a Conflict of Interest Code, and designate positions that are required to file Statements of Economic Interests (Form 700) with the City Clerk. In addition, the PRA requires that the City Council review its Conflict of Interest Code biennially and to make amendments, if required. A Conflict of Interest Code must contain the following three basic components: • Language incorporating the Fair Political Practices Commission (FPPC) Regulations (Title 2, Division 6, California Code of Regulations §18730), or the basic provisions set forth in Government Code §87302. • A list of the designated positions that either make or participate in making governmental decisions.. • Disclosure categories specifying financial interests that designated positions must disclose. The City's Conflict of Interest Code was first adopted in 1983 by Resolution No. 5044 and incorporated, by reference, the FPPC's, standard model code(Attachment 1). The State has made minor amendments to its standard model code since the City last updated its Conflict of Interest Code in 2008, including FPPC Regulation 18734, effective January 1, 2010. This regulation requires an individual hired for a position not yet covered under the City's conflict-of- interest code to file Form 700 if the individual serves in a position that makes or participates in making governmental decisions. Proposed Modifications Staff recently conducted a review of the City's Conflict of Interest Code in accordance with State law. During this review, it became evident that amendments were warranted. Positions have been added or deleted as a result of reclassifications, titles have changed, or disclosure categories have been modified to more appropriately reflect the responsibilities of the position. Ca -i Council Agenda Report—Conflict of Interest Code Update Page 2 These amendments are reflected in the Legislative Draft of the Appendix (Attachment 1) and the resolution with Appendix amending the City's Conflict of Interest Code (Attachment 2). The Appendix does not include the Mayor and Council Members, Planning Commissioners, City Manager, City Attorney, or City Finance Director since these officials are required to file Statements of Economic Interests pursuant to Government Code §87200. CONCURRENCES The City Attorney's Office and Department Heads concur with the proposed amendments. FISCAL IMPACTS None. ATTACHMENTS: 1. Legislative Draft of the Appendix 2. Resolution and Appendix COUNCIL READING FILE. Complete Copy of the Fair Political Practice's Commission Model Code T:\Council Agenda Reports\City Clerk CAR\09-21-10 Agenda Report COI Code �a ATTACHMENT 1 LEGISLATIVE DRAFT LIST OF DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES' POSITION DISCLOSURE CATEGORY Administrative Office: .Assistant City n drat ...sabre Of ee Manager I Economic Development Manager 3 Natural Resources Manager 3 .Principal Administrative Analyst 1 City Attorney: Assistant City Attorney 1 City Clerk: City Clerk 1 Community Development: Assistant Chief Building Official 3 Assistant Planner(s) 3 Associate Planner(s) 3 Building Inspector(s) 3 Building Permit Coordinator 3 Chief Building Official 3 Code Enforcement Officer UII 3 Community Development Director 3 Contract Planner(s) 1 Deputy Community Development Director,Development Review 3 Deputy Community Development Director,Long Range Planning 3 Housing Programs Manager 3 Plan Examiner 2 Planning Technician 3 Senior Planner(s) 3 Supervising Administrative Assistant 2 Finance& Information Technology Department: Accounting Supervisor 2 Revenue Supervisor 2 Finance Manager 2 Information Technology Manager 2 Telecommunications Supervisor 2 Network Services Supervisor 2 Administrative Analyst 2 The Mayor and Council Members, Planning Commissioners, City Manager, City Attorney and Finance& Information Technology Director/City Treasurer are required to file Statements of Economic Interests pursuant to Government Code Section 87200, and are therefore, not included in the List of Designated Positions required to file pursuant to the City's Conflict of Interest Code. 0,;- -3 ATTACHMENT 1 Fire Department: Fire Marshal 3 Battalion Chiefs) 3 Fire Chief 1 Fire Inspector 3 Hazardous Materials Coordinator 3 Human Resources Department: Human Resources Analyst 2 Human Resources Director 1 Risk and Benefits Manager 2 Parks& Recreation Department: Director of Parks and Recreation 1 Golf Course Supervisor 2 Recreation Manager 2 Recreation Supervisor—Sports 2 Recreation Supervisor-Aquatics 2 Recreation Supervisor-Children's Services 2 Recreation Supervisor-Facilities 2 Recreation Supervisor—Ranger Service 2 Recreation Supervisor—Teens, Boomers, Seniors 2 Recreation Supervisor—Special Events, Skate Park 2 Police Department: Administrative Analyst 2 Chief of Police 1 Communications and Records Manager 2 Neighborhood Services Manager 2 Police Captain(s) 2 Police Lieutenant(s) 2 Public Works Department: Administrative Analyst 2 Admir}istrative Serviees Manager 2 Engineering Technician(s) 1 —3 3 Facilities Maintenance Supervisor 2 City Traffic Engineer 2 Construction Engineer Manager 2 Deputy Public Works Director 2 Director of Public Works 1 Engineer 1 - 3 3 Field Eng ineering Assist 3 Engineering Inspector 1-4 3 Fleet Maintenance Supervisor 2 GIS supr r. ser Parking Manager 2 Parks Maintenance Supervisor 2 Permit Technician 3 Principal Transportation Planner 2 ATTACHMENT 1 Public Works Maintenance Supervisor 2 Senior Civil Engineer 2 Senior Construction Inspector 2 Stefm,Autef C-ede E49feementOffleer 3 Stefmwatef Manager- :2 Street Maintenance Supervisor 2 Supervising Administrative Assistant(s) 2 Supervising Civil Engineer 2 Transit Manager 2 Utilities Department: Deputy Director of Utilities-Wastewater 2 Deputy Director of Utilities-Water 2 Industrial Waste Ceer-dinate Manager 1 Industrial Waste Inspector 1 Senior Administrative Analyst 2 Utilities Director 1 Utilities Conservation Eeerdiita4 Manager 3 Utilities Eugieeef 3 Utilities Projects Manager 3 Wastewater Collection Supervisor 2 Wastewater Treatment Plant Supervisor 2 Water Distribution Supervisor 2 Water Qualy Laboratory Manager 2 Water Supply Supervisor(Whale Rock) 2 Water Treatment Supervisor 2 Committees/Commissions: Members of the Architectural Review Commission 3 Members of the Cultural Heritage Committee 3 Members of the Housing Authority 3 Members of the Promotional Coordinating Committee 2 Other Positions: Consultantsz 1 Housing Authority Executive Director 1 Temporary Positions 1 as-S ATTACHMENT 1 DISCLOSURE CATEGORIES Category Reportable Interests I Investments, business positions, income from sources located in or doing business in the jurisdiction, interests in real property located in the jurisdiction, including property located within a two-mile radius of any property owned or used by the City. 2 Investments,business positions,and sources of income of the type which provide services, supplies,materials,machinery or equipment of the type utilized by the City. 3 Investments,business positions,and sources of income of the type that engage in land development, construction or the acquisition or sale of property. Interests in real property located within the jurisdiction, including property located within a two- mile radius of any property owned or used by the City. Consultants should be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The City Manager may determine(upon written application by the consultant)that a particular consultant, although a"designated position,"is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and,based upon that description,a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. If a consultant believes he or she is exempt from disclosure requirements of law,prior to the application to the City Manager,the consultant shall obtain opinion to that effect from an admitted attorney to practice in the State of California,which opinion shall contain the information specified in the paragraph above. 3Temporary positions may be required to file a Statement of Economic Interests upon determination by the City Attorney that the temporary position is the functional equivalent of a designated position. ATTACHMENT 2 RESOLUTION NO. (2010 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING THE CITY'S CONFLICT OF INTEREST CODE WHEREAS, the City Council adopted Resolution No. 5044 (1983 Series) amending the City's Conflict of Interest Code by incorporating by reference the Fair Political Practices Commission's standard model Conflict of Interest Code (Title 2, Division 6 of the California Code of Regulations) and updating the list of designated positions required to file a Statement of Economic Interests; and WHEREAS, the Political Reform Act requires that the City Council review its Conflict of Interest Code biennially to determine whether amendments are required; and WHEREAS, Resolution No. 10032 (2008 Series) adopted on October 21, 2008, amended the City's Conflict of Interest Code by updating the-Appendix (List of Designated Positions and Disclosure Categories—Exhibit A); and WHEREAS, a review of the Appendix indicates that amendments are necessary to reflect changes in job titles, positions and classifications; and further reveals the need to add disclosure categories specifying those financial interests that designated positions must disclose. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Resolution No. 10032 (2008 Series) is hereby rescinded. SECTION 2. The Fair Political Practices Commission's standard model Conflict of Interest Code (Title 2, Division 6 of the California Code of Regulations), as reorganized, along with the List of Designated Positions and Disclosure Categories in Exhibit A are adopted as the City of San Luis Obispo's Conflict of Interest Code. Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of 2010. ATTACHMENT 2 Mayor David F. Romero ATTEST: Elaina Cano City Clerk ;APPROVED AS O FORM: J. me Dietrick ity Attorney �02 anacHP s EXHIBIT A LIST OF DESIGNATED POSITIONS AND DISCLOSURE CATEGORIES' POSITION DISCLOSURE CATEGORY Administrative Office: Assistant City Manager 1 Economic Development Manager 3 Natural Resources Manager 3 Principal Administrative Analyst 1 City Attorney: Assistant City Attorney 1 City Clerk: City Clerk 1 Community Development: Assistant Chief Building Official 3 Assistant Planner(s) 3 Associate Planner(s) 3 Building Inspector(s) 3 Building Permit Coordinator 3 Chief Building Official 3 Code Enforcement Officer 1/II 3 Community Development Director 3 Contract Planner(s) 1 Deputy Community Development Director, Development Review 3 Deputy Community Development Director, Long Range Planning 3 Housing Programs Manager 3 Plan Examiner 2 Planning Technician 3 Senior Planner(s) 3 Supervising Administrative Assistant 2 Finance& Information Technology Department: Accounting Supervisor 2 Revenue Supervisor 2 Finance Manager 2 Information Technology Manager 2 Telecommunications Supervisor 2 Network Services Supervisor 2 Administrative Analyst 2 The Mayor and Council Members, Planning Commissioners, City Manager,City Attorney and Finance& Information Technology Director/City Treasurer are required to file Statements of Economic Interests pursuant to Government Code Section 87200, and are therefore, not included in the List of Designated Positions required to file pursuant to the City's Conflict of Interest Code. ATTACHMENT 2 Fire Department: EXHIBIT A Fire Marshal 3 Battalion Chief(s) 3 Fire Chief 1 Fire Inspector 3 Hazardous Materials Coordinator 3 Human Resources Department: Human Resources Analyst 2 Human Resources Director 1 Risk and Benefits Manager 2 Parks&Recreation Department- Director of Parks and Recreation I Golf Course Supervisor 2 Recreation Manager 2 Recreation Supervisor—Sports 2 Recreation Supervisor-Aquatics 2 Recreation Supervisor-Children's Services 2 Recreation Supervisor-Facilities 2 Recreation Supervisor—Ranger Service 2 Recreation Supervisor—Teens, Boomers, Seniors 2 Recreation Supervisor—Special Events, Skate Park 2 Police Department: Administrative Analyst 2 Chief of Police 1 Communications and Records Manager 2 Neighborhood Services Manager 2 Police Captain(s) 2 Police Lieutenant(s) .2 Public Works Department: Administrative Analyst 2 Engineering Technician(s) 1 —3 3 Facilities Maintenance Supervisor 2 City Traffic Engineer 2 Construction Engineer Manager 2 Deputy Public Works Director 2 Director of Public Works 1 Engineer 1 - 3 3 Engineering Inspector 1-4 3 Fleet Maintenance Supervisor 2 Parking Manager 2 Parks Maintenance Supervisor 2 Permit Technician 3 Principal Transportation Planner 2 Public Works Maintenance Supervisor 2 (2a / ATTACHMENT 2 Senior Civil Engineer 2 EXHIBIT A Senior Construction Inspector 2 Street Maintenance Supervisor 2 Supervising Administrative Assistant(s) 2 Supervising Civil Engineer 2 Transit Manager 2 Utilities Department: Deputy Director of Utilities—Wastewater 2 Deputy Director of Utilities—Water 2 Industrial Waste Manager 1 Industrial Waste Inspector 1 Senior Administrative Analyst 2 Utilities Director 1 Utilities Conservation Manager 3 Utilities Projects Manager 3 Wastewater Collection Supervisor 2 Wastewater Treatment Plant Supervisor 2 Water Distribution Supervisor 2 Laboratory Manager 2 Water Supply Supervisor(Whale Rock) 2 Water Treatment Supervisor 2 Committees/Commissions: Members of the Architectural Review Commission 3 Members of the Cultural Heritage Committee 3 Members of the Housing Authority 3 Members of the Promotional Coordinating Committee 2 Other Positions: Consultants2 1 Housing Authority Executive Director 1 Temporary Positions 1 DISCLOSURE CATEGORIES Cate eory Reportable Interests 1 Investments, business positions, income from sources located in or doing business in the jurisdiction, interests in real property located in the jurisdiction, including property located within a two-mile radius of any property owned or used by the City. 2 Investments,business positions, and sources of income of the type which provide services,supplies,materials, machinery or equipment of the type utilized by the City. 3 Investments,business positions, and sources of income of the type that engage in land development, construction or the acquisition or sale of property. Interests in ATTACHMENT 2 EXHIBIT A real property located within the jurisdiction, including property located within a two- mile radius of any property owned or used by the City. Consultants should be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The City Manager may determine(upon written application by the consultant)that a particular consultant, although a"designated position," is hived to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and,based upon that description,a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. If a consultant believes he or,she is exempt from disclosure requirements of law,prior to the application to the City Manager,the consultant shall obtain opinion to that effect from an admitted attorney to practice in the State of California,which opinion shall contain the information specified in the paragraph above. 3Temporary positions may be required to file a Statement of Economic Interests upon determination by the City Attorney that the temporary position is the functional equivalent of a designated position.