HomeMy WebLinkAbout10/19/2010, PH 4 - ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT councit
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CITY OF SAN LUIS OBISPO
FROM: Michael Codron, Acting Assistant City Manager 1�
Prepared By: Brigitte Elke, Principal Administrative Analyst
SUBJECT: ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS
IMPROVEMENT DISTRICT
RECOMMENDATION
1. Conduct a public hearing to receive testimony regarding the City Council's intention to continue
the citywide Tourism Business Improvement District.
2. Determine whether a legally sufficient protest is made.
3. Adopt a resolution affirming the establishment of the San Luis Obispo Tourism Business
Improvement District, setting forth the basis for the assessment, and levying the assessment
upon hotels in the district for fiscal year 2010-11 if a legally sufficient protest showing is not
made.
DISCUSSION
Background
In June 2008 Council adopted Ordinance No. 1517 (Attachment 1) establishing a tourism business
improvement district (TBID) 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
Street and Highways Code and incorporated into the City's Municipal Code under Chapter 12.42.
Pursuant to Municipal Code Section 12.42.060 and the California Streets and Highways Code
Sections 36530 and 36533 (Parking and Business Improvement), the appointed TBID Board
submitted an annual report(Attachment 2) that outlined the board's efforts over the past year and
the proposed activities for use of the assessment funds in the upcoming year.
Section 36534 of 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 and
schedule a public hearing to receive any written or oral protests against the district. Resolution No.
10217 (2010 Series) setting such a hearing was adopted on September 21, 2010.
Council Action: Public Hearing and Resolution
As set forth in Sections 36524 and 36525 of the California Streets and Highways Code and San Luis
Obispo Municipal Code Section 12.42.060, the Council has the ability to continue the proposed
citywide TBID at the public hearing, unless oral or written protests are received from City hoteliers
FH4-1
Council Agenda Report—Annual TBID Report
Page 2
that will pay 50% or more of the proposed assessments. Under Municipal Code Section 12.42.060,
protests are weighted based upon the annual assessment for the prior year by each hotel. Staff will
have this information available at the meeting, but for privacy reasons, this information is not made
public before or at the meeting. In the event that a negative protest occurs, no further proceedings to
continue the levy of assessments for that fiscal year shall take place.
At the conclusion of the public hearing, if no or insufficient protest is received, Council may then
adopt a resolution affirming the establishment of the San Luis Obispo Tourism Business
Improvement District, setting forth the basis for the assessment, and levying the assessment upon
hotels in the district for fiscal year 2010-11. Such a resolution is provided as Attachment 4.
FISCAL IMPACT
According to the City's Financial Plan, the TBID is estimated to raise $853,800 for tourism
marketing and promotion in fiscal year 2010-11. As previously mentioned, the use of the assessment
funds are described in the TBID Board's Annual Report (Attachment 2).
ATTACHMENTS
1. Ordinance No. 1517
2. TBID Board Annual Report
3. Resolution of Intention No. 10217 (2009 Series)
4. Resolution confirming the TBID and levying the assessment
PH4-2
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('I'BID),FDCING 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 Levy 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 and specified 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 a public hearing 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 by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Pursuant to authority granted under the Parking and Business
Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq.,
01517
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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 mean the 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 for.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 RVParks.
(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
PH4-4
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 of revenues which may 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.
12.42.040.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 TBD)boundaries. The assessment shall be levied on all
hotels, existing and future,within the City of San Luis Obispo based upon two percent(20/6)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 REVIEW 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 Body appointed pursuant to this chapter and Sections
36530 and 36533 of the law. After approval of the annual reportthe 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.BUOST 014 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 TBID 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 TBID 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
FH4-51
Ordinance No. 1517(2008 series) ATTACHMENT 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 San Luis 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 p,
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 programsand
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 Reportshall 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 provisions of this chapter and may disestablish the
district or parts of the district, after adopting aresolution 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 bylaw. 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"/0)or more of
the assessments in the district,or in the district as it is proposed to be enlarged.
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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 3rd day of June 2008, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 17th 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
01
Mayor David F. Romero
ATTEST:
udrey Her
City Cler ..
APPROVED AS TO FORM:
onathan . well
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art,,°f ATIACHMENT
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w san Luis oBispo
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. 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. "
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.
PHi4-8
Tourism Business Improvement Distn. Annual Report ATTACHMENT 2
Advisory Board Members
Name Property Term
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 fdnding 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.
PH4-9 .
Tourism Business Improvement Dish._:Annual Report ATIACHMEII 12
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
a
- 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.
2010-11 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.
. a
PH4-10
Tourism Business Improvement Distn..Annual Report
ATTACHMENT 2
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 Tournariment 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.
P.H4-11
Tourism Business Improvement Dista,..Annual Report
ATTACHMENT 2
Financial Statement
Income Time Frame Amount
t
TBID Assessment July 2009—June 2010 $ 899,024.00
Investment Earnings $ 17,465.00
Starting Balance $ 52800.00
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 $ 952,860.00
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 ._ $ 324000.00
Total Expenditure _Committed in 2010-11 $10159400.00
Anticipated Carryover 2010-11 $ 505,555.00
Budget Estimate Financial Plan 2009-11 $ 853,800.00
Total Estimated Budget . 2010-11 $19359,355.00
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.
PH4-12,
ARACHMENT 3
RESOLUTION NO. 10217(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 Obispo in accordance with City
Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections
36500 et seg. (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.
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
R 10217
PH4-13
I�� J fl Ar�^�
Resolution No. 10217(2010 Series) fl�A�11Y1—
Page 2
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 protestis 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 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' FURTHER 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
PH4-14
Resolution No. 10217 (2010 Series) ATTACHMENT
Page 3
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 Council Member Marx, seconded by Council Member Ashbaugh, and on
the following vote:
AYES: Council Members Ashbaugh, Marx and Settle,Vice Mayor Carter and
Mayor Romero
NOES: None
ABSENT: None
The foregoing resolution was adopted this 21 st day of September 2010.
Mayor David F. Romero
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
i. Christine Dietrick
City Attorney
PH4-15
RESOLUTION NO. 2010 Series A�A"HM
RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING THE BASIS FOR
AND THE LEVY OF THE ASSESSMENT FOR THE SAN LUIS OBISPO TOURISM
BUSINESS IMPROVEMENT DISTRICT, AND AFFIRMING THE ESTABLISHMENT
OF THE DISTRICT.
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 had 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 the San Luis Obispo Tourism Business Improvement District law
was incorporated into the Municipal Code as Chapter 12.42; and
WHEREAS, the City Council appointed an advisory board to carry out the functions
specified in Street and Highways Code Section 36530, and to provide oversight, guidance, and
recommendations regarding the use of the assessment funds; and
WHEREAS the San Luis Obispo Tourism Business Improvement District law and the
Parking and Business Improvement Law of 1989 requires the advisory body to prepare and
submit an annual report stating proposed changes, improvements and activities for the fiscal
year; and
WHEREAS, such report was filed and approved by the City Council on September 21,
2010; and
WHEREAS, on September 21, 2010 the City Council adopted Resolution No. 10217
(2010 Series) declaring its intention to continue the San Luis Obispo Tourism Business
Improvement District in 2010-11; and
WHEREAS,the City Council held a duly noticed Public Hearing on October 19,2010 to
allow for protests, as contemplated by Streets and Highway Code Section 36524; and
WHEREAS, sufficient written or oral protest were not received from hotel businesses in
the district which pay fifty percent or.more of the assessment;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
a) The establishment of Tourism Business Improvement District in the City of San Luis
Obispo in accordance with the San Luis Obispo Tourism Business Improvement
District law, San Luis Obispo Municipal Code Chapter 12.42, and the California
PH4-16
J ATTACHMENT 4
Streets and Highways Code, section 36500 et seq. (Parking and Business
Improvement.Law of 1989)is affirmed.
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 lodging.
c) The assessment shall be levied and allocated by the City of San Luis Obispo.
d) The assessment shall to be levied on all "hotels", as that tern 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 shall not be exempt from assessment.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of , 2010.
Mayor David F. Romero
ATTEST:
Elaina Cano, City Clerk
APPRO S TO FO
store Dietrick, City Attomey
P114-17
RED FILE
� k1J� MEETING AGENDA
DA %�/9 o ITEM #222L
October 18, 2010
Mayor Dave Romero, Vice Mayor Andrew Carter, Council Members Allen Settle,
Jan Howell Marx and John Ashbaugh.
Dear Mayor,Vice Mayor and City Council Members,
I will be out of the state and therefore unable to attend the City Council meeting
Tuesday, October 19, 2010. That being said, I would like to give you my feedback on
continuing the T-BID assessment. Being a Hotel General Manager in the City of San
Luis Obispo as well as a current member of the Tourism Business Improvement
District Board, I am very enthusiastic about the progress that has been made during the
last year. It is vital that resources are allocated to promote the city of San Luis Obispo
as a tourism destination as well as a perfect location for significant events.
I mimic my words from last year when I say-I have had the privilege of attending
almost every meeting since the San Luis Obispo's T-BID assessment board began. It
has been a very positive and forward moving process and should continue to be for
years to come. The promotion of tourism is vital for our city so we can compete with
those communities around us who have even larger budgets. A larger budget allows us
to seek marketing opportunities the City may not otherwise afford, and the T-BID will
enhance existing marketing efforts already in place by working together for the greater
good.
It is time to show the world that San Luis Obispo (a very"Happy Place") has so much
to offer the traveler, a very genuine, authentic, "Sincerely California" experience!
Respectfully,
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Dean R. Hutton Ca- ORA z+r► ErFIRE CHIEF
General Manager Apple Farm Inn L�'ATTORNEY 2-PW DIR
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T-BID Board Member. 805-544-0713 Ext. 601 tE3 DEPT HEADS 3'REC DIR
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SLO CITY CLERK