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HomeMy WebLinkAbout09/15/2009, C2 - ANNUAL REPORT FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT council i agcnaa RepoRt " b` Ca C I T Y OF SAN LU I S O B 1 S P O FROM: Shelly Stanwyck, 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 2009-10 at the same rate as in fiscal year 2008-09. 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 Street 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 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 August 26, 2009 the TBID Board met in a special meeting to, amongst other agenda items, review the annual report and define its recommendation for use of the assessment funding in 2009- 10 (Attachment 4 — Draft Minutes). In 2008-09, the main focus of the board was the launch of the TBID's website and start of its 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 main focus of the district. However, there are other areas in which the Board wants to expand in order to maximize booking results for the hoteliers in the City. The annual report outlines the proposed activities as: Ca - I Council Agenda Report—Annual TBID Report Page 2 Marketing Efforts and Branding 1. Continue marketing efforts to promote the TBID brand and drive traffic to http://sincerelvcalifornia.com to generate bookings for San Luis Obispo hoteliers. This will be achieved through the contract with the TBID's advertising agency, Level Studios. The contract goes through lune 30, 2010. 2. Contract with the San Luis Obispo County Visitors and Conference Bureau for regional marketing and PR efforts to supplement the San Luis Obispo City efforts and maximize outreach to potential visitors. 3. Solicit proposals for merchandise to further promote the TBID's brand "San Luis Obispo— Sincerely, California". Event Promotion 1. Establish a process for grant funding to efficiently and effectively evaluate the many funding requests the board receives. 2. Engage in efforts to attract two major events to San Luis Obispo and evaluate needed funding to do so. 3. Establish a working relationship with the San Luis Obispo Vintners to jointly promote the San Luis Obispo wine region and fully integrate their two main events into the TBID's tourism efforts. Trade Shows 1. Evaluate the benefit of participating in tourism related tradeshows and if deemed important, develop the needed marketing material to participate and promote San Luis Obispo— Sincerely, California Next Steps After approval of the annual report and adoption of the resolution of intention, a public hearing will be scheduled for October 20, 2009. The public hearing will allow hoteliers to voice potential disapproval and raise a negative protest against the formed district. 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 Financial Plan, the TBID is estimated to raise $837,000 for tourism marketing and promotion in fiscal year 2009-10. ATTACHMENTS 1. Annual Report 2. Resolution of Intention 3. Ordinance 1517 4. TBID Board Draft Minutes from August 26, 2009 �rtyof ATTACHMENT 1 °m •J6,a san lues ompo TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FROM: TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD MEMBERS: John Conner, Chair Tim Billing, Vice-Chair Jamie Wallace Joel Koper Robert Mueller 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. 0,a - 3 Tourism Business Improvement Districfewnual Report ATTACHMENT 1 Advisory Board Members Name Property Term John Conner- Chair Petit Soleil 3/31/2013 Tim Billing- Vice-Chair Embassy Suites 3/31/2013 Jamie Wallace Courtyard by Marriott 3/31/2011 Joel Koper Holiday Inn 3/31/2011 Robert Mueller Days Inn 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. It set its monthly meetings on the second Wednesday of the month at 2 pm. The first regular meeting occurred on September 10, 2008 after a special meeting on September 3, 2008. Work program for 2008-2009 The TBID Board started its discussion about possible marketing efforts in October 2008 and continued the discussion through November.. Establishing a guiding marketing plan and the development of a San Luis Obispo Lodging only(only hotels and motels within City limits) website were the main objectives. The Board initially wanted to create the marketing plan and the website first and then commission a marketing company to execute the plan. However, it reconsidered that position at its December meeting, arguing that a company writing the plan will already have bought into the recommended strategies and would therefore be best positioned to execute the selected proposal.. The Board subsequently approved a RFP document, requesting companies to submit proposals with a three-phase approach. The proposals sought were expected to provide the following components: 1. Establishment of a City of San Luis Obispo Tourism Marketing Plan 2. Website Development 3. Execution of the Marketing Plan The deadline for submittals was January 28, 2009 and 12 proposals were received. The date for review, finalist interviews, and evaluation of the agencies was set for February 18, 2009. Tourism Business Improvement District r,imual Report - ATTACHMENT 1 Evaluation Process and Finalist Presentations The TBID Board chose the week of February 2nd through 6h for review of the proposals to narrow the field for presentation to the Board. The TBID Board met in a special meeting on February 2, 2009 and reviewed the 12 proposals received. Three companies were selected for presentation to the Board during the regular monthly Board meeting on February 11, 2009.. Verdin Marketing, Ink., Level Studios, and 20/20 Creative Group presented their proposals for all three elements of the RFP to the TBID Board. After each presentation, the Board took time for questions and comments. Following the presentations, the Board decided to meet again on February 18, 2009 to make a final selection and recommendation to Council. In addition to the TBID Board's evaluation of the respondent agencies, the submitted information had been made available for review to all hoteliers throughout the process. From the time of bid opening to the second special meeting on February 18, 2009, all proposals and the subsequently provided presentations were available to all hoteliers for review and input at City Hall. Selected Proposal After deliberation, input from hoteliers present at the meeting, the Board voted unanimously to recommend Level Studios as the Marketing firm to the TBID through June 2010. Level Studios is a local agency headquartered at 3450 Broad Street, San Luis Obispo. Founded in 1995 as Web Associates, the agency now operates studios in San Jose and Los Angeles and has a staff of 130 employees, 95 of which are employed in San Luis Obispo. Their client list includes Hewlett Packard, Apple,Netflix, and B1ackBerry. Current Status of Marketing Efforts On August 10, 2009 the TBID's website went live under http://sincerelycalifomia.com. The website features the newly developed logo and tagline for the TBID. It showcases all the accommodations with amenities, things to do (day trips, outdoor activities, shopping, wine tasting), events, and local legends section. In September 2009, the agency will launch its branding campaign with an extensive media and PR plan. The plan will utilize the following strategy & execution: - test ads and response digitally for the first three months develop traditional ads from digital success; - use digital to level exposure through the year, and traditional for seasonal emphasis; - gradually develop social and event content and repurpose into media; - form partnerships with other sites, marketing bodies, travel and event planners. Media Mix: - print publications including consumer magazines, trade publications; - CRM—seasonal email newsletter, Pay per Click, online display ads; - Search Engine Optimization; - PR special events for editorial coverage; - Social media such as Facebook, MySpace, YouTube, Yelp, etc. The total cost which covers execution of the plan including production cost is $508,700 Tourism Business Improvement District..nnual Report -% ATTACHMENT 1 In addition, the board received presentations and funding requests from a variety of organizations. After considering the benefits to its constituency, the board gave sponsorship funding to two organizations. The board also commissioned a report from Smith Travel Report to receive occupancy data comparing nine different counties throughout the state. This report enhances the data commissioned by the Promotional Coordinating Committee which only reports on the City of San Luis Obispo. Proposed Activities for 2009-10 Marketing Efforts and Branding 1. . Continue marketing efforts to promote the TBID brand and drive traffic to httn://sincerelyeatifornia.com to generate bookings for San Luis Obispo hoteliers. This will be achieved through the contract with the TBID's advertising agency Level Studios. The contract goes through June 30, 2010. 2. Contract with the San Luis Obispo County Visitors and Conference Bureau for regional marketing and PR efforts to supplement the San Luis Obispo City efforts and maximize outreach to potential visitors. 3. Solicit proposals for merchandise to further promote the TBID's brand"San Luis Obispo— Sincerely, California". Event Promotion 1. Establish a process for grant funding to efficiently and effectively evaluate the many funding requests the board receives. 2. Engage in efforts to attract two major events to San Luis Obispo and evaluate needed funding to do so. 3. Establish a working relationship with the San Luis Obispo Vintners to jointly promote the San Luis Obispo wine region and fully integrate their two main events into the TBID's tourism efforts. Trade Shows 1. Evaluate the benefit of participating in tourism related tradeshows and if deemed important, develop the needed marketing material to participate and promote San Luis Obispo— Sincerely, California Financial Statement Income Time Frame Amount TBID Assessment October 2008 —June 2009 $ 646,893.00 Interest on Income $ 6,198.00 Total Income $ 6539091.00 Expenditure Agency Contract February—June 2009 $350,000.00 SLO County Airport $ 3,680.00 Festival Mozaic $ 10,000.00 Smith Travel Research $ 2,100.00 Total Expenditure 2008-09 $ 3659780.00 Carryover to 2009-10 $ 287,311.00 Budget Estimate Financial Plan 2009-10 $ 837,000.00 Total Estimated Budget 2009-10 $19124,311.00 Tourism Business Improvement District, nnual Report ATTACHMENT 1 Proposed Assessment for 2009-10 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. 0a - 7 . l ATTACHMENT 2 RESOLUTION NO. (2009 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 2009-10 WHEREAS the Parking and Business Improvement Law of 1989, sections 36500 et seg. 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 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 15, 2009. 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 lodging. c) The assessment will be levied and allocated by the City of San Luis Obispo. RT ACHMENT 2 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 shall not be exempt from assessment. 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 20, 2009, 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 majority of written protests are only as to an improvement or activity proposed, � a-9 ATTACHMENT 2 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 12009. Mayor David F. Romero ATTEST: Elaina Cano, Interim City Clerk APPROVED AS TO FORM: Jonathan P. Lowell, City Attorney �a- �o ATTACHMENT 3 ORDINANCE NO. 1517 (2008 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ESTABLISHINGTHE 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(T'BID);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 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., ea - i1 01517 Ordinance No. 1517(2008 Series) AnACHMENT 3 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 fordwelling,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,es full days. 1.2.42.030.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 3 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 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. 12.42.040.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 TBID boundaries. The assessment shall be levied on all hotels ,existing and firture,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(2%)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 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.IMPOSITION 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 onAugust 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 tern 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 C � -�3 ATTACHMENT Ordinance No. 1517(2008 Series) 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 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 budgetyear. 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,mayinodify the provisions 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. Cady Ordinance No. 1517 (2008 Series) ATTACHMENT 3 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 17a' 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: udrey H er City Cl APPROVED AS TO FORM: o�than well iey a -is ATTACHMENT 4 Tourism Business Improvement District Board Minutes Wednesday, August 26, 2009 —Special Meeting 2:00 pm Community Room City Council Chamber CALL TO ORDER: Chair John Conner DRAFT PRESENT: Billing, Wallace, Koper, Mueller STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst PUBLIC COMMENT There was no public comment. BUSINESS ITEMS 1. LEVEL STUDIOS Doug Klein and Ryan Allshouse were available to answer questions regarding the proposed media plan. Doug reiterated that the current media plan is concentrating on destination travel versus lifestyle. He also mentioned d that they are in contact with other organizations placing tourism related media buys in order to avoid duplication, but utilize these buys to negotiate better terms. ACTION: Moved Wallace/Billing to approve the media plan as presented Motion carried 4:0 2. SLO VCB FUNDING John Summer, Executive Director of the VCB reiterated the benefits the current VCB marketing plan offer VCB members and contributors and also addressed the issue the current membership structure presents. He presented a new funding model that would include the City's entire lodging industry and extend all benefits to the TBID's constituency. He requested a contribution from the TBID for 2009-10 of$95,000. ACTION: Moved Koper/Mueller to approve the requested contribution for 2009-10 in the amount of$95,000 Motion carried 3:0 Board members Billing and Wallace abstain from discussion and vote due to a conflict of interest. Ca -16 - ' ATTACHMEW4 3. ANNUAL TBID REPORT Staff had prepeared a summary of the 2008-09 activities for the board and needed direction on the 2009-10 proposed activities. After discussion, the board defined the following activities for 2009-10: Proposed Activities for 2009-10 1. Continue marketing efforts to promote the TBID brand and drive traffic to htta://sincerelvcalifornia.com to generate bookings for San Luis Obispo hoteliers. This will be achieved through the contract with the TBID's advertising agency Level Studios. The contract goes through June 30, 2010. 2. Contract with the San Luis Obispo County Visitors and Conference Bureau for regional marketing and PR efforts to supplement the San Luis Obispo City efforts and maximize outreach to potential visitors. 3. Establish a process for grant funding to efficiently and effectively evaluate the many funding requests the board receives. 4. Evaluate the benefit of participating in tourism related tradeshows and if deemed important, develop the needed marketing material to participate and promote San Luis Obispo — Sincerely, California 5. Engage in efforts to attract two major events to San Luis Obispo and evaluate needed funding to do so. 6. Solicit proposals for merchandise to further promote the TBID's brand "San Luis Obispo —Sincerely, California" 7. Establish a working relationship with the San Luis Obispo Vintners to jointly promote the San Luis Obispo wine region and fully integrate their two main events into the TBID's tourism outreach efforts. ACTION: Moved Wallace/Koper to approve the annual report including the 2009-10 activities as discussed. Motion carried 4:0 Board member Mueller abstained. The meeting adjourned at 3:05 p.m.