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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 2011-12 at the same rateasin fiscal year 2010-11.
DISCUSSION
Background
In June 2008 Council adopted Ordinance 1517 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 1) 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 2) 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
continuation of the district.
Annual Report
On September 14, 2011 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 2011-12 (Attachment 3). The marketing campaign, to drive people from Southern and
Northern California to come and stay in San Luis Obispo while discovering the attractions and
activities of the entire County, remains the main focus of the TBID's efforts. Additionally, the
board continues to entertain funding support for new events happening between November and
April to attract visitors to San Luis Obispo in these shoulder months. With its support of the
inaugural San Luis Obispo Marathon in April and the ongoing support of the SLO International
Film Festival, it will now turn its attention to November, January, and February. Additionally, the
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Council Agenda Report—Annual TBID Report
Page 2
board wants to establish a presence at various tradeshows and has taken the first step by attending
International Pow Wow in San Francisco in May 2011.
Next Steps
Assuming Council approves the annual report and adopts the resolution of intention, a public
hearing will be scheduled for October 18, 2011. 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 2011-12 Financial Plan, the TBID assessment is estimated to raise $973,000
for tourism marketing and promotion based on anticipated Transient Occupancy Tax revenue.
ATTACHMENTS
1. Annual Report
2. Resolution of Intention
3. TBID Board Draft Minutes from September 14, 2011
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TOURISM BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT
FROM: TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD
MEMBERS: Tim Billing, Chair John Conner, Vice-Chair
Dean Hutton Clint Pearce
Joel Koper Nipool Patel
Susan Norris
Prepared By: Brigitte Elke, Principal Administrative Analyst
SUBJECT: TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD ANNUAL
REPORT
DISCUSSION
The City of San Luis Obispo Tourism Business Improvement District
In June 2008 the City 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 of two percent of gross receipts 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. "
The City subsequently established a special fund for the district through which the assessment funds
are administered.
Advisory Body
The use of the assessment fund is based on the recommendation of the Tourism Business Improvement
District advisory board that is staffed by City of San Luis Obispo hotel owners and/or general
managers. The members serve for an initial four-year term with the opportunity for a second term.
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Tourism Business Improvement District.___iiia]Report
_D ATTACHMENT 1
2010-11 Advisory Board
Name Property Term
Tim Billing- Vice-Chair Embassy Suites 3/31/2013
John Conner- Vice-Chair Petit Soleil 3/31/2013
Dean Hutton Apple Farm 3/31/2013
Clint Pearce Madonna Inn 3/31/2015
Joel Koper Holiday Inn 3/31/2015
Susan Norris Sands Inn & Suites 3/31/2012
Nipool Patel Comfort Inn 3/31/2012
In addition to the governing City ordinance, the TBID Board established its advisory body 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 meets monthly on the second Wednesday at 2:00 pm for its regular board meeting. In 2010-
11, the board met in 12 regular monthly meetings, a board retreat, and three special meetings for
business related to events promotion and the 2011-12 budget. Additionally, it appointed a budget task
force, a tradeshow task force, and appointed three of its members to serve on the events promotion
subcommittee with three members of the Promotional Coordinating Committee. 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. Additionally, the board chair
and staff embark on hotel visits at least once a year to personally bring TBID updates and marketing
material to each property.
2010-11 Work program
Level Studios
During fiscal year 2010-11, the TBID continued its marketing efforts with Level Studios and its triple
award winning lodging website www.sanluisobispovacations.com.
The 2010-11 marketing campaign transitioned from broad brand awareness to targeting experience
specific interests and messages. Additionally, Level Studios continued to deepen the user experience
on the website, using current traveler research and site analytics aggregated from the previous year.
Some improvements included adding 18 interest categories such as vacation ideas for families,
couples, and girlfriends, pet-friendly, deals & packages, honeymoons and weddings, and low cost
getaways. A press room section was built that features the newly produced video, press releases, an
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Tourism Business Improvement District A mal Report J ATTACHMENT 1
image gallery, and brand guidelines to provide greater access to visiting press and bloggers with assets
and inspiration to write about the City.
The executed media plan utilized the following strategies:
- continued emphasis on targeting the TBID's message to the most searched for travel terms;
- utilize digital advertising to build continued exposure with a seasonal emphasis;
- utilize social and event content to build media message;
The following media mix was applied in pursuit of the above mentioned strategy:
- Print publications including consumer magazines and trade publications such as Skywest, Via
Discover, Westways, LA Family Magazine, etc.
- Online banner ads that appear on travel portals and in line with travel articles
- Search Engine Optimization(SEO) and Pay-per-click Search Engine Marketing
- Social Media Advertising on Facebook and the introduction of You Tube
- Public Relations, including interest, seasonal and event releases, press trip coordination and
hotelier outreach
By May 2011, the campaign, which remains highly targeted to California travelers,had seen:
➢ 130 million impressions
➢ 560,000 email messages
➢ 28,500 visits to the San Luis Obispo TripAdvisor page
Which resulted in:
➢ 3.5 times more visitors to the website (for only 9.5%more media spend)
➢ 32%more San Luis Obispo related searches
➢ 6,600 new email subscribers
➢ 21,800 unique monthly site visits
➢ 20,050 clicks to hotel sites
➢ 10,700 mobile visitors
In addition to these efforts, the TBID commissioned several campaigns to increase the reach for its
brand and tourism message. Those efforts were:
- 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.
- Funding for a hotel board and 24/7 outdoor kiosk at the Visitors Center and a hotel concierge
training program"MySLO"through the Chamber of Commerce.
Events Promotion
One of the goals of the Tourism Business Improvement District for 2010-11 was to seek events that
bring people to San Luis Obispo. Events that cater to the shoulder seasons were of special interest. In
order to address funding requests, the TBID board appointed three of its members to serve on the joint-
events promotion subcommittee together with three members of the Promotional Coordinating
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Tourism Business Improvement District taual Report
... AT(ACHMENT 1
Committee. Through this collaboration, the TBID took the lead in investing in the following major
events:
Sunset "Savor The Central Coast"
This event highlighted San Luis Obispo through the Mission Plaza Dinner and allowed for a tourism
booth at the main event in Santa Margarita. The TBID took this opportunity to produce a tradeshow
booth that could be used for future opportunities.
Straight Down Golf Tournament
This collaboration was used to develop golf content on the website and a new golf brochure
highlighting the courses around San Luis Obispo.
SLO International Film Festival
The TBID board gave support to the Film Festival as one of the premier San Luis Obispo spring event.
The TBID's agency redesigned the website, produced the Festival brochure, and executed a media buy
driving traffic to the Festival.
SLO Marathon
The inaugural San Luis Obispo Marathon is scheduled for April 2012. As one of the fastest growing
sports, marathon running attracts thousands of people to destinations. To have a major sporting event
in San Luis Obispo was one of the TBID's events promotion goals.
Cal Poly Athletics
Through this partnership, the San Luis Obispo hotels are now the exclusive lodging showcased in all
Cal Poly Athletic venues. The marketing efforts through this partnership open the Cal Poly Athletics
newsletters and email, lists which includes the Alumni, to the San Luis Obispo tourism message.
San Luis Obispo GranFondo
The inaugural 2010 GranFondo attracted 675 bicycle riders to San Luis Obispo, 70% of which came
from out of town. The second GranFondo is scheduled for October 15, 2011.
2011-12 Workprogram
For the 2011-12 fiscal year, the TBID will continue its efforts through Level Studios whose contract
expires in June 2012. In addition to the approved media campaign, the agency will continue the feature
and content updates on the website and develop an itinerary builder for use online and on mobile
applications.
The TBID board recommended continuing its contracts with the San Luis Obispo Visitors and
Conference Bureau for integration of San Luis Obispo in the countywide marketing efforts. The
programs commissioned through the Chamber of Commerce will also continue through fiscal year
2011-12. The concierge program will be refined and offer classes at various hotels for hotel front desk
specific training.
The promotion of large events continues to be a priority for the TBID and the board already
recommended support of the nationally recognized vintage show "Remnants of the Past" at the
Madonna Expo Center on October 8-9, 2011. Additionally, the board is looking to continue its
partnership with the International Film Festival and is actively seeking an event for early September.
The weekend after Labor Day is traditionally very slow and an attractive event could help increase
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ATTACHMENT 1
Tourism Business Improvement District P.ival Report
occupancy for this weekend. The partnership with Cal Poly Athletics is a three-year commitment
through June 2014.
In addition to the tourism marketing efforts and events promotion, the board is looking into increasing
San Luis Obispo's presence at industry tradeshows. The board is currently looking at the following
four tradeshows:
- International PowWow 2012 in Los Angeles
- Los Angeles and Bay Area Travel & Adventure Shows
- 2012 World AG Expo
- RCMA (Religious Conference Manager Association) for group business
Proposed Assessment for 2011-12
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.
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Tourism Business Improvement District iurival Report
O ATTACHMENT 1
Financial Statement 2010-11
Income Time Frame - Amount
TBID Assessment July 2010-June 2011 $ 967,215.00
Investment Earnings $ 8,135.00
Starting Balance $ 616,000.00
Total Income Fiscal Year 2010-11 $ 195919350.00
Expenditure 2010-11
Level Studios Contract July 2010—June 2011 $ 750,000.00
Level Studios Carry-Over From 2009-10 $ 106,000.00
PR Contract July 2010—June 2011 $ 45,000.00
SLO VCB incl. hotel membership July 2010—June 2011 $. 95,000.00
SLO VCB Coo $ 27400.00
Chamber of Commerce July 2010—June 2011 $ 53,600.00
STR Report $ 4,000.00
Central Coast Tourism Council $ 7,800.00
SLO Intern. Film Festival $ 35,000.00
Straight Down Golf Tournament $ 22,500.00
GranFondo Bicycle Event $ 20,000.00
Sunset Savor the Central Coast $ 64,000.00
SLO Marathon $ 35,000.00
Cal Poly Athletics $ 25,000.00
PBS Travelsco e $ 3,750.00
Future of Work Conference $ 10,000:00
International Pow Wow Tradeshow_ in San Francisco $ 20,000.00
Various event support, TBID PBS Travelscope, SLO $ 23,000.00
Retreat, and marketing material. Symphony, Hop Fest,
Salmonid Conference, Cal
Poly en House
City Administration $ _ 32,000.00
Expenditure $1,3799050.00
Agency Carry Over Unused 2010-11 budget $ 28,000.00
Total Expenditure $1,3519050.00
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Tourism Business Improvement District'Aimual Report
- ATTACHMENT 1
Preliminary Financial Statement 2011-12
2011-12 Anticipated Income
Anticipated Carryover 2011-12 $ 240,300.00
Budget Estimate Financial Plan 2011-13 $ 973,000.00
Total Estimated Budget 2011-12 $192139300.00
Expenditure 2011-12 Committed
Agency Contract incl. PR July 2011 —June 2012 $ 800,000.00
SLO Chamber of Commerce July 2011 —June 2012 $ 39,500.00
SLO VCB incl. hotel membership July 2011 —June 2012 $ 119,000.00
Central Coast Tourism Council $ 8,000.00
Smith Travel Research $ 4,000.00
Remnants of the Past Vintage $ 25,000.00
Show
SLO Intern. Film Festival $ 20,000.00
Cal Poly Athletics $ 52,500.00
Administrative Cost Estimate/4% of assessment $ 38,000.00
Total Expenditure Committed in 2011-12 $19106,000.00
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�I
AITACHMER2
RESOLUTION NO. (2011 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 2011-12
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 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 October 4,
2011.
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 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.
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J AITACHMEW2
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.
0 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 18, 2011,
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,
B5-11
ATTACH 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 voter
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of , 2011.
Mayor Jan Marx
ATTEST:
Elaina Cano, City Clerk
APPRUOVE0 AS TO FORM:
�(Z�� 4,
Christine Dietrick, City Attorney
B5-12
Tourism Business Improvement District Board
Minutes
Wednesday, September 14, 2011
2:00 pm
Council Chamber— City Hall
CALL TO ORDER: Chair Tim Billing Draft
PRESENT: Pearce, Patel, Hutton, Norris
STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst
PUBLIC COMMENT
There was no public comment
CONSENT AGENDA
ACTION: Moved by Hutton/Patel to approve the consent agenda as presented.
Motion carried 4:0
PRESENTATIONS
1. SLO MARATHON
Samantha Pruitt and Heather Hellman provided an update on the efforts for the inaugural San
Luis Obispo Marathon. They thanked On The Horizon PR for its help with the recent press
release. They mentioned that they will be at several half and full-marathons to market the SLO
event. Team in Training's CA chapter has committed and is actively promoting the event. It is
possible that the national chapter will come to the event and hopefully by year two the marathon
will see national participants. The board members were asked to distribute the rack cards in the
hotel lobbies.
2. SAVOR THE CENTRAL COAST
The commissioners approved listening to Business Item 6 at the same time as the Savor
presentation as both items were presented by the San Luis Obispo Visitors & Conference
Bureau (VCB).
Molly Cano, Marketing Director for the VCB, reported on Savor ticket sales in comparison to
2010 (40% out-of-county/ 60% in-county at this point/ 2010 30% all together out-of-county).
The numbers do not include the hotel package sales as those numbers will be reported at the
end of the week.
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� TBID Minutes
AITACHMN 3
The chair asked why the City of SLO TBID was not mentioned in the recent press release and
why the TBID was not informed regarding the chef and winery line up. Mrs. Cano explained that
the contractor was hired through the SLO Vintners to line up the chefs with local wineries.
However, the VCB will definitely address the concern for next year.
BUSINESS ITEMS
1. CENTRAL COAST VISITORS GUIDE AD
Matthew Gibbons with Striker Media introduced the 2012 Central Coast Visitors Guide. He
mentioned that the number of copies will be increased to 55,000 without increase in ad prices.
Striker Media sends the Visitors Guides directly to requesting parties and 60% go overseas. The
full page will be $7,250 including the map mention and website presence.
ACTION: Moved by Patel/Hutton to postpone decision to October meeting to review
possible ad creative and media exposure.
Motion carried 4:0
2. QUARTERLY CONTRACTOR REPORTS
Ryan Allshouse and Rebecca Jensen presented the agency's efforts throughout July and
August. They included the finalization of the five short videos, Rosetta Search and Media
Integration, email marketing, event marketing, PR integration, website updates, and the Cal Poly
Athletic program initiative which included printed signs on all major Cal Poly fields, gyms, and
stadiums, 3 video min-clips on digital scoreboard, print ad in event booklets, radio spot during
the games, and the brandnew ShareSLO.com website.
3. EVENTS PROMOTION
Commissioner Hutton who also serves as the joint events subcommittee, elaborated on the
report included in the agenda package which highlighted the request from the Film Festival. The
funding is at $25,000, $20,000 from the TBID and $5,000 to be allocated through the PCC.
ACTION: Moved by Pearce/Hutton to support the 2012 San Luis Obispo International Film
Festival with $20,000 to be managed by Level Studios. Motion carried 4:0
ACTION: Moved by Hutton/Patel to support the requested change in date for the "Future of
Work" conference to January. Motion carried 3:0
Board Chair Billing abstained.
4. ANNUAL REPORT
The board reviewed the presented annual report for efforts in 2010-11, the financial statement,
and proposed work program for 2011-12.
ACTION: Moved by Pearce/Patel to forward the annual report to Council as presented
Motion carried 5:0
S. HOTEL QUESTIONNAIRE — SURVEY MONKEY
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— TBID Minutes --
MACHMEW3
Board Chair Billing presented a list of questions and asked the board to review, provide
comments, and send additional questions for review at the October meeting.
6. CALIFORNIA VISITORS GUIDE —COOP THROUGH VCB
Molly Cano presented the opportunity for a coop ad in the California Visitors Guide. The VCB
was looking for 9 participants at $2,000 each. She handed out a document mentioning the
distribution of the guide. To date, the VCB has two confirmed participants.
ACTION: Moved by Patel/Pearce to participate in the coop ad at $2,000.
Motion carried 4:0
BOARD COMMUNICATION
Board Chair Billing reported on the hotel visits and the material brought to each property.
Adjourned 4:06 pm
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