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HomeMy WebLinkAbout10-17-2017 Item 09 - 2016-17 Annual Report of the Tourism Business Improvement District (TBID) Meeting Date: 10/17/2017 FROM: Greg Hermann, Acting Assistant City Manager Prepared By: Molly Cano, Tourism Manager SUBJECT: 2016-17 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION As recommended by the Tourism Business Improvement District (TBID) Board: 1. Receive and approve the Tourism Business Improvement District (TBID) Board’s 2016-17 annual report; and 2. Adopt a resolution of intention to levy and collect assessments within the TBID area in fiscal year 2017-18 at the same rate as in fiscal year 2016-17. DISCUSSION Background In June 2008, the Council adopted Ordinance No. 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 codified into the City’s Municipal Code under Chapter 12.42. Pursuant 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 A) that outlines the past year’s efforts and how the funding was used and to what effect. Section 36534 further requires that after the approval of the annual report, the Council shall adopt a resolution of intention (Attachment B) to levy an annual assessment for that fiscal year. The resolution also sets a public hearing in order to receive any written or oral protests against the continuation of the district as required by the applicable statute. Annual Report On September 13, 2017, the TBID Board met in its regular monthly meeting to finalize the 2016- 17 annual report (Attachment C). Public noticing for the TBID Advisory Board meeting was performed through the posting of the agenda on the City’s website and in the kiosk in front of City Hall by 5:00 pm on September 8, 2017. For convenience, the agenda was also distributed to TBID constituents and stakeholders via email. The annual report reiterates the use of the TBID funds within the defined marketing platform that guides the strategy used to deliver on the TBID’s objective and goals. The report content includes: Packet Pg 207 9 1. TBID Background and Advisory Body 2. 2016-17 Year by the Numbers 3. Strategic Plan Implementation and Program Approach 4. 2016-17 Summary of Activities 5. 2016-17 Financial Statement 6. Looking Ahead to 2017-18 7. Charts and Graphs showing various results Next Steps Should the City Council approve the annual report and adopt the resolution of intention, a public hearing will be noticed for November 7, 2017. The public hearing will allow hoteliers to submit comments, voice concerns, and protest 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 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. Noticing Schedule Legal notices regarding the City Council’s review and approval of the TBID annual report were sent to TBID properties on Wednesday, October 4, 2017. For convenience, the link to the agenda was also distributed to TBID constituents and stakeholders via email. FISCAL IMPACT The current unaudited year-end TBID revenue for 2016-17 is approximately $1,440,300.00 which is approximately $5,000 more than the budgeted amount. In 2017-18, the TBID projected revenue is $1,465,787.00 and is budgeted for program costs including staffing. Approximately $29,000 is budgeted to cover the City’s administrative costs associated with collecting and disbursing the assessment. ALTERNATIVES The City Council may choose to not approve the report or levy the assessment. This action is not recommended as the advisory body has fully reviewed the report and recommended the approval to City Council in order to move forward with the Public Hearing for the Tourism Business Improvement District. Attachments: a - SLOTBID Annual Report 2016–17 b - Resolution of Intention 2017 c - 09-13-2017 TBID minutes DRAFT Packet Pg 208 9 SLO TBID ANNUAL REPORT 2016–2017 Packet Pg 209 9 2 SLO TBID Annual Report 2016-17 A Letter from the Chair A LETTER FROM THE CHAIR The Tourism Business Improvement District (TBID) for San Luis Obispo has worked together with its local lodging constituents to record another year of TOT growth. Faced with an exceptionally wet winter and the sudden and ongoing closure of the Pacific Coast Highway, San Luis Obispo innkeepers and hoteliers were able to increase average daily rate (ADR) while mitigating the reduction in occupancy. In one sense, it is difficult to pinpoint the specific benefit of the TBID’s efforts when everything is going well. If the weather cooperates and Highway 1 is open, it is less apparent to an individual constituent precisely what is making the difference between a good year and a great year; there is little incentive to even spend time figuring it out. Conversely, when the unprecedented year-over-year growth that we had begun to take for granted begins to taper off, the benefit of a communal marketing effort led by the TBID becomes very clear. The story of FY16 is essentially this; after many years of growth in occupancy and ADR, SLO hoteliers pushed rate. We set rates many months to sometimes years in advance, and none of us has a crystal ball—rates are set based on past performance, instinct and hope. We had no reason to believe the ever-increasing occupancy might taper off. So we set our rates higher than ever, and were able to maintain increased revenue through higher ADR in spite of decreased occupancy. Where does the TBID fit in all this? One anecdote that I feel illustrates what we do well is that we literally have a program called “Money for a Rainy Day.” When it started raining, and then didn’t stop when it normally does, we kicked our program into action and were able to demonstrably move the needle—even garnering free publicity in the LA Times for our unique promotion through our joint PR efforts with the Chamber of Commerce. This is exactly the function we are meant to serve, and the need for us is greater in challenging years than when everything comes easily. After having gone through the Strategic Planning process, and then a completed mid-point check-up, we are reaching an organizational maturity that is being noticed and emulated. Visit California recognized our efforts with a “Poppy Award” for best overall marketing program. Our competitors have noticed as well, and we see discussions taking place in neighboring communities that we were having three years ago. The benefits from the decisions we are making now will continue to pay dividends for our constituents and the city which we are so grateful to be a part of for years to come. Sincerely, Matthew Wilkins Sands Inn & Suites SLO TBID Board Chair Packet Pg 210 9 3 SLO TBID Annual Report 2016-17 Table of Contents TABLE OF CONTENTS Background on TBID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Background ............................................4 Advisory Body ..........................................4 2016–17 Advisory Board ..................................4 Advisory Body Bylaws ...................................5 2016-17 Year By the Numbers (TOT) . . . . . . . . . . . . . . . . . . .6 Strategic Plan Implementation Year & Program Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 TBID Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Snapshot of the Progress ................................8 Branding ...............................................8 Website ...............................................10 Digital & Print Media ....................................11 Social .................................................13 Public Relations ........................................17 Travel & Tradeshows ....................................18 Special Promotions .....................................19 Guest Services ........................................22 Strategic Partnerships .................................24 Event Promotion ......................................26 Industry Relations .....................................27 2016–17 Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . .28 Income ...............................................28 Expenditures ..........................................29 Looking Ahead to 2017–18 . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 TOT Chart 2016–17 .....................................32 TOT Month to Month 2016–17 ...........................32 OCC Month to Month 2016–17 ...........................33 ADR Month to Month 2016–17 ...........................33 RevPar Month to Month 2016–17 .........................34 Packet Pg 211 9 4 SLO TBID Annual Report 2016-17 Background on TBID BACKGROUND ON TBID BACKGROUND 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 follows: “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 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, operators, and/or managers. The board members are appointed by the City Council and serve for an initial term of four years with the opportunity to serve second term for a maximum of eight years. 2016-17 ADVISORY BOARD NAME PROPERTY TERM Dean Hutton Apple Farm 3/31/17 2nd term Kimberly Walker Granada Hotel & Bistro 3/31/21 2nd term LeBren Harris Hampton Inn & Suites by Hilton 3/31/21 Nipool Patel (Past Chair)Lamplighter Inn & Suites 3/31/20 2nd term Pragna Patel-Mueller Lexington Inn 3/31/19 Clint Pearce Madonna Inn 3/31/19 2nd term Matthew Wilkins (Chair)Sands Inn & Suites 3/31/20 2nd term Packet Pg 212 9 5 SLO TBID Annual Report 2016-17 ADVISORY BODY BYLAWS 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 10 a.m. for its regular board meeting. In 2016–17, the Board met in 11 regular monthly meetings and 2 special meetings. Additionally, based on the continued implementation of the TBID 5-year Strategic Plan, the Board maintained the standing subcommittees - the Management Committee and the Marketing Committee, each is made up of three board members. The Marketing Committee members also serve on the joint Event Promotion Committee with three members of the Promotional Coordinating Committee to consider event sponsorship commitments. In order to keep the lodging constituency abreast of all TBID business, the Board is assigned properties to liaise. Each board member is responsible for communication with his/her respective group of hotels. Staff continue to visit all properties at least once a year to personally bring TBID updates and marketing opportunities to each property. Background on TBIDPacket Pg 213 9 6 SLO TBID Annual Report 2016-17 2016-17 Year by the Numbers 2016-17 YEAR BY THE NUMBERS The 2016-17 fiscal year produced modest growth in the tourism industry in San Luis Obispo. The City collected nearly $7.4 million dollars (+2.8%) in transient occupancy tax (TOT) – the largest collection ever recorded for the City of San Luis Obispo. The collections slightly exceeded the City’s forecasted and budgeted growth which is contributed directly into the City’s General Fund. However, based on the Smith Travel Research (STR) reports, the occupancy rate in the City decreased by 1.2%. Overall, occupancy was down consistently for the first three quarters of the fiscal year apart from November and January. It began to rebound in the fourth quarter where we saw a record 11% occupancy growth in April 2017. The dip in occupancy can be attributed in part to the seasonal weather patterns achieved by the mountain regions that produced the significant snow fall, the closure of Highway 1, and the impact of a competitive and crowded tourism market throughout the region. The 2016-2017 fiscal year concluded with average annual occupancy rate over 71%, a slight decline in occupancy compared to the 2015-16 fiscal year. While the occupancy rate decreased, the Average Daily Rate (ADR) was up 2.8% to $143.49. Nearly, every month within the year out rated the same month in the prior year. Additionally, the RevPAR, defined as Revenue Per Available Room, grew by 1.8% to $104.13. This means that although the occupancy was down overall for the properties, the lodging businesses received higher profits based on rate increases with less day-to-day impact on the properties. Additionally, the downtown Visitor Center served nearly 86,000 in person guests. San Luis Obispo lodging properties achieved twenty five sell out weekends in 2016–17. 2016-17 YEAR BY THE NUMBERS See the appendix for complete graphs. MEASUREMENT FY 2016-17 RESULT % CHANGE FROM FY 2015-16 TOT $ 7,357,923 2.8 % Occupancy 71.58 -1.2 % ADR $ 143.49 2.8 % RevPAR $ 104.13 1.8 % Packet Pg 214 9 7 SLO TBID Annual Report 2016-17 Strategic Plan Implementation Year & Program Approach STRATEGIC PLAN IMPLEMENTATION YEAR & PROGRAM APPROACH In 2016-17 the TBID continued the focused implementation of the 5-year Strategic Clarity Plan, a document that serves as the framework for the direction and decisions made by the TBID Board for the tourism program. The plan defines the work programs for the TBID and is used as a guide for the decisions made for the overall promotion of San Luis Obispo. Within the plan, the TBID identified five Strategic Imperatives: • Deliver Smart Growth • Develop the SLO Brand • Build Meaningful Partnerships • Contribute to an Unforgettable SLO Experience • Ensure Organizational Excellence This fiscal year marked the halfway point for the plan. In the fall of 2016, the TBID Board held workshop to revisit the plan and they modified it as needed for the remaining two years of implementation. While none of the Strategic Imperatives changed, the Board added new initiatives to drive new program efforts. Mission The SLO TBID builds awareness to grow tourism, serving as the voice of San Luis Obispo. Values Integrity | Accountability | Adaptability | Collaboration | Determination | Innovation Unique Role of Value The SLO TBID provides the City of SLO with comprehensive tourism brand management through strategic partnerships and a robust marketing and promotional budget. Vision In SLO TBID manages the brand for the destination of San Luis Obispo, delivering balanced growth of tourism, with creativity and integrity. Vision Out San Luis Obispo is an unforgettable place where visitors engage in a unique lifestyle they aspire to, become emotionally attached, and return for renewal. Brand Intention Heart Side: Happy | Pride of Place | Inspiring | Relaxed | Rejuvenating Head Side: Experiential | Beautiful | Artisinal | Healthy | Authentic Strategic Imperatives Deliver Smart Growth | Develop the SLO Brand | Build Meaningful Partnerships | Contribute to an Unforgettable SLO Experience | Ensure Organizational Excellence Unique Value Proposition San Luis Obispo is an authentic and inviting California community where you can play, taste, explore, relax, and recharge. Strategic Clarity The elements of our Strategic Clarity are the SLO TBID’s “North Star” for the upcoming five fiscal years, setting the level of expectation and the tone and tenor of everything we plan. As we move into defining specific initiatives, our Strategic Clarity will serve as a touchstone. Vision In What kind of organizational culture are we committed to being? Vision Out What is the ideal future state we will strive to create? What are we committed to making happen?Mission What is most important to us as we strive to realize our vision? What is the focus of our work?Values What are the fundamental beliefs that shape how we work together to serve our mission? Unique Role of Value What unique and valuable role do we play amongst our peer organizations? HOW do we provide value? Strategic Imperatives What must be accomplished during the planning horizon? Unique Value Proposition What unique and sustainable value does the destination of San Luis Obispo deliver? WHY San Luis Obispo? Brand Intention WHAT is the experience we want our destination to be known for? Mission Values Unique Role of Value Vision In Vision Out Brand Intention Strategic Imperatives Unique Value Proposition Vision In Vision Out Mission Values Unique Role of Value Strategic Imperatives Unique Value Proposition Brand Intention Packet Pg 215 9 8 SLO TBID Annual Report 2016-17 TBID Activities TBID ACTIVITIES SNAPSHOT OF THE PROGRESS Fiscal year 2016–17, was a very accomplished year for the TBID activities. • Deployed “It Means Something Different Here” campaign 2.0 • Created and distributed unique content that inspired returning and new tourists • Implemented a marketing automation program to enhance email marketing efforts • Captured and created a library of candid, “local perspective” video content • Expanded library of professional photography • Developed and distributed new collateral materials • Executed new social media opportunities including Snapchat & Instagram Stories • Developed seasonal promotional campaigns, including Cal Poly Lodging Loyalty Program, Money for a Rainy Day, Exclusive Seattle Promotion and tradeshow-specific promotions • Developed individualized event promotion strategies • Partnered with Visit SLO CAL on new co-op placements In order to implement the complex marketing programs, the TBID Board and staff work closely with the team of contractors from the marketing agencies Barnett Cox & Associates (BCA) and Matchfire formerly StudioGood, and the San Luis Obispo Chamber of Commerce. Packet Pg 216 9 9 SLO TBID Annual Report 2016-17 TBID Activities BRANDING The TBID manages the tourism brand for the destination of San Luis Obispo, delivering balanced growth of tourism, with creativity and integrity. In fiscal year 2016–17, the advertising campaign “It Means Something Different Here” was continued across digital and print channels. Additionally, the TBID expanded their print collateral and created a new small brochure to complement our SLO Inspiration Guide & Maps brochure featuring eye catching photography. These pieces are used to promote San Luis Obispo and are disturbed at various tradeshow, events, and through Certified Folder Displays in airports visitor centers and hotels throughout California. San Luis Obispo Brand Messaging Pillars: • Cultural • Culinary • Outdoor • Family Packet Pg 217 9 10 SLO TBID Annual Report 2016-17 WEBSITE www .SanLuisObispoVacations .com The City’s official tourism website, SanLuisObispoVacations.com, is the primary marketing tool used to represent our destination. It is designed mainly for consumers, but also serves the travel trade, meeting planners, TBID members and media. It features robust content including a detailed calendar of events integrated with SLO Happenings, lodging property listings for all TBID constituents including hotels and permitted homestay properties, itinerary suggestions and features, the ShareSLO blog, and featured press coverage. Search Engine Optimization (SEO) ensures the relevancy and success of the TBID’s website. Organic search traffic to the site continues to stand as the top traffic channel, making up 36% of site sessions. The work is done monthly to optimize pages with top keywords, meta tags and meta descriptions, ShareSLO blog posts and social content were created based on forecasted keyword and search trends. Thus, pages now rank in the top position on Google for San Luis Obispo searches including Bubblegum Alley, Night Life and Shopping. Key 2016–17 Website Results: • 60% increase in site sessions • 51% increase in average monthly users • 32% increase in referral traffic year-over-year Highlights of Website Activities: • Updated Email Sign-Up Form in August • Launched Automated Welcome Series and Hotel Page Abandonment Email • Updated Mobile Navigation, #ShareSLO Blog and Filtering Functionality in November • Revamped Events Page in February • Refreshed Hotel & Homestay Property Pages in June • Added 15 new pages and updated over 35 pages See the appendix for complete graphs. TBID ActivitiesPacket Pg 218 9 11 SLO TBID Annual Report 2016-17 DIGITAL & PRINT MEDIA Digital Media Online programmatic campaigns are the most effective marketing and advertising tool to target the drive markets in California for leisure travelers to San Luis Obispo. The TBID continues to use branded advertising to maximize online reach for the promotion of San Luis Obispo through strategic placement on top travel and lifestyle sites through a programmatic digital advertising program. In 2016-17, the advertising program for the TBID was focused on the mix of digital display that hit key websites to target the right customer and the use of video pre-roll using the 5 pillar videos in desired markets. TBID Activities CUMULATIVE DIGITAL ADVERTISING MEASUREMENTS Total Number of Digital Ad Impressions 12,639,406 Total Number of Clicks 879,325 Print Advertising Limited print advertising placements were continued in the TBID’s media mix through BCA in the 2016–17 fiscal year. Traditional print campaigns are an important tool to reach niche market visitors primarily in the mature demographic and to reinforce travel inspiration and build brand awareness for the destination. The TBID placed print ads only in cooperative advertising campaigns with regional partners like Visit SLO CAL and Central Coast Tourism Council (CCTC). • SLO CAL Destination Visitors Guide • Alaska Airlines in-flight magazine for the launch of the new flight • SLO Chamber Visitors Guide • Central Coast Tourism Map ad • California State Travel Guide in the 8-page Central Coast feature • BuzzFeed article • Matador article & video Packet Pg 219 9 12 SLO TBID Annual Report 2016-17 Email Marketing The TBID continued to utilize email marketing activities through the newsletter to communicate regularly with potential visitors on activities in SLO to build brand loyalty and encourage repeat visitation and an extended length of stay. The newsletter promotes upcoming events and special promotions as well as compliments our seasonal advertising campaigns and public relations outreach. This year the TBID refocused their attention on enhancing their email marketing efforts beyond the monthly newsletter. In 2016-17 the TBID concentrated their email marketing on growing their audience, tracking the behaviors and following up with relevant messaging that ultimately drove visitation to San Luis Obispo. Their investment in marketing automation garnered nearly 2000 new email subscribers on the TBID site by updating the form and the placement of the sign up. Additionally, they launched an automated Welcome Series to acknowledge new subscribers. And they implemented a Hotel Page Abandonment series which sent visitors a personalized email if they left hotel pages without taking action. Highlights of Email Marketing Activities: • 37% increase in database size • 1,783 submitted through new email sign-up form • 7 SLO Vacations’ e-newsletters • 2 ongoing, automated emails based on user behavior • 9 targeted emails for Lodging Loyalty program • 6 targeted emails for tradeshow promotion • 2 targeted emails for Money for a Rainy Day promotion • 1 promotional email for Festival Mozaic TBID Activities NEWSLETTER ACTIVITY MEASUREMENTS Total Number of Newsletters Sent 25 Database Size 23,361 Packet Pg 220 9 13 SLO TBID Annual Report 2016-17 SOCIAL #SHARESLO This year, the TBID continued to captivate ShareSLO fans and grow their social media footprint through great, engaging content. They continued to leverage user-generated content in 2016-17, along with adding TBID created content including “local perspective” videos. With an emphasis on engaging site content, the TBID drove social traffic to SanLuisObispoVacations.com by linking to relevant content whenever possible. ShareSLO continues to maintain a network of engaged social fans on Facebook, Twitter, Instagram and Snapchat. In 2016–17, the ShareSLO cumulative social fan base grew by over 62,000 fans and followers across Facebook, Twitter, and Instagram. The total social media engagements across all platforms was over 203,760, representing a 74% increase in engagements over 2015–16. The ShareSLO blog, featured on SanLuisObispoVacations.com continues to perform exceptionally well as a source to drive traffic to the website. In addition to general content each month, the ShareSLO blog featured dedicated campaigns including: Meet the Brewers Series in October, ShareSLO Chef Series in January, Bike Month in April, SLO in the News throughout the year. Thus, the ShareSLO blog saw a 171% increase in page views within the blog compared to the prior year. TBID ActivitiesPacket Pg 221 9 14 SLO TBID Annual Report 2016-17 #SHARESLO (Cont .) 2016–17 ShareSLO Activities Included: • 54 ShareSLO blogs published • Activated on Snapchat & Instagram Stories • Consistent, daily community management • Activated Instagram Giveaways: Brews & Bites, SLO Film Fest, Cal Poly Baseball Tickets & First Pitch Giveaway • Participated in 3 Visit CA sponsored Twitter chats: #HikerChat, #FoodieChat, #Kidifornia • Uploaded 4 new videos to ShareSLO’s YouTube channel • Captured event photography and videography at Cow Parade SLO Launch Event and Amgen Tour • Real-time posting at events on Facebook, Twitter, Instagram and Snapchat TBID Activities SHARESLO PROGRAM MEASUREMENTS Total Number of Blog Posts 54 Total Number of Fans 118,956 Total Hashtag Uses (Instagram & Twitter only) 41,830 Total Video Views (YouTube)34,181 Packet Pg 222 9 15 SLO TBID Annual Report 2016-17 TBID Activities SHARE SLO SOCIAL METRICS 2016–17 % CHANGE FROM 2015–16 Facebook Total New Fans 58,163 226.23% Average New Fans per Month 4,847 226.18% Total Fans 104,275 129.09% Total Reach 8,262,200 31.75% Average Reach per Post 7,764 45.23% Average Daily Engaged Users 789 106.01% Total Engagements 65,207 31.38% Twitter New Followers 304 46.57% Average New Followers per Month 25 46.81% Total Followers 3,744 8.62% Total Engagements 6,567 24.87% Total #ShareSLO 4,294 4.48% Instagram New Followers 3,719 25.63% Total Followers 10,937 51.52% Total Engagements 131,986 112.44% Total #ShareSLO 37,536 53.67% YouTube Video Views on Main Video 34,181 54.07% #SHARESLO (Cont .) Packet Pg 223 9 16 SLO TBID Annual Report 2016-17 Paid Social Media In 2016–17, the TBID continued to invest in paid social media to enhance the effectiveness and reach of the ShareSLO brand on Facebook. Adding a paid element to the posts has helped to expand the reach and increase engagement among ShareSLO fans, followers, and friends. Paid promotion on social media is very cost-effective for the TBID and provides the ability to extend the promotion of San Luis Obispo almost year- round. Paid social media on Facebook in 2016–17 included ads to drive page likes, website conversions, video views, lead generation and prompted posts. TBID Activities Paid Media Results 2016–17 2015–16 % Change Facebook Page Likes Page Likes 54,173 14,300 278.83% Impressions 1,091,175 649,193 68.08% Avg. Cost per Click $0.24 $0.70 65.71% Avg. Cost per Like $0.31 $0.75 58.67% Website Conversions Link Clicks 53,887 11,944 351.16% Actions 150,966 112,103 34.67% Impressions 3,294,166 1,533,533 114.81% Avg. CTR (All)2.26%1.67%35.33% Avg. CTR (Link)1.33%0.73%82.19% Video Views Video Views 444,798 915,418 51.41% Avg. Duration of Video Viewed 00:00:09 00:00:14 35.71% Lead Generation Leads 2,155 N/A N/A Total Reach 156,006 N/A N/A Promoted Posts Total Reach 953,384 825,646 15.47% Total Engagements 102,527 94,512 8.48% Packet Pg 224 9 17 SLO TBID Annual Report 2016-17 PUBLIC RELATIONS In 2016–17, the TBID and PCC continued to jointly hold a dedicated contract with the San Luis Obispo Chamber of Commerce for Public Relations efforts. On behalf of the City’s community promotions program, the SLO Chamber is responsible for establishing professional relationships with media outlets and journalists in various markets to build and maintain awareness of San Luis Obispo as a travel destination. The 2016-17 contract elements with the SLO Chamber for Public Relations included: pitching to media, bringing in media, coordinating media trips, sending out media releases, responding to natural media inquiries, use of the Chamber’s photography library for editorial requests and press releases, planning and executing press trips and developing media kits. This focused PR effort continued to prove success for San Luis Obispo. During the 2016–17 fiscal year, the PR activities generated at least 275 total mentions or media placements that highlighted San Luis Obispo in international, national, regional and even local publications. A few specific publications include: Toronto Star, Coastal Living Magazine, Travel Channel, Huffington Post, Los Angeles Times and the San Francisco Chronicle. A new focus in 2016–17 for PR efforts was tailored to digital media outlets. Primary targets included influential lifestyle, outdoors and parent with long-term, loyal and engaged audiences that are in line with San Luis Obispo’s focused messaging efforts. On behalf of the City’s community promotion, the Chamber proactively connected with various digital outlets to position the San Luis Obispo message. As a result, the TBID was featured on Sweet, a Snapchat Discover channel that reaches 100 million daily active users. Other digital outlets include: Goop, Lonely Planet, Thrillist and Matador Network. Additionally, coordinated media visits or press trips were secured to promote the destination with the goal of earning valuable editorial coverage. In fiscal year 2016-17, nearly 40 media outlets, both domestic and international were hosted in San Luis Obispo. Top domestic and international media outlets hosted include: Fodor’s Travel Guide, General Motors, Los Angeles Magazine, the Toronto Sun. TBID Activities PUBLIC RELATIONS MEASUREMENTS Total Number of Media Outlets Hosted 40 Number of Mentions 275 Potential Reach 769,122,617 Packet Pg 225 9 18 SLO TBID Annual Report 2016-17 TRAVEL & TRADESHOWS Consumer Travel Shows The TBID continues to maximize the consumer travel show strategy. Consumer shows provide the TBID an opportunity to take San Luis Obispo on the road to key markets. The three consumer tradeshows attended were: Los Angeles Travel & Adventure Show, Bay Area Travel & Adventure Show, and San Diego Travel & Adventure Show. The booth featured key information on San Luis Obispo including lodging information, maps and upcoming events. Shows were selected based on their anticipated attendance, quality of attendees, and target drive market location. Booth visitors were presented with the call-to-action to book two nights in SLO and receive a $100 VISA gift card upon arrival. In addition to one-on-one conversations with potential visitors, the TBID also met with numerous travel media and operators in the booth. Industry Tradeshows In 2016–17, the TBID returned to the industry tradeshow IPW. The U.S. Travel Association’s IPW is the travel industry’s premier international marketplace and the largest generator of travel to the U.S. The TBID had previously participated in 2011 and 2012 but had since declined, in order to focus on consumer-only efforts. However, this year the TBID Board made a strategic decision to partner with SLO CAL, the San Luis Obispo County’s tourism marketing district, at the show. During the three-day show booked with intensive pre- scheduled business appointments, the TBID met with over 55 representatives interested in booking travel to San Luis Obispo. TBID Activities CONSUMER TRADE SHOW MEASUREMENTS Number of Shows Attended 3 Newsletter Registrations Collected 1,798 Total Room Nights Booked Through Promotion 36 Packet Pg 226 9 19 SLO TBID Annual Report 2016-17 SPECIAL PROMOTIONS Money for a Rainy Day In 2016-17, the TBID Board ran for the second year a special promotional offer designed to drive overnight stays in the City of San Luis Obispo during the slowest months of the year. Through the promotion, visitors were required to book two consecutive nights at a lodging property in the City of San Luis Obispo between January – March 2017 and they would receive a $100 Visa Gift Card to spend how they choose. More than 660 Visa gift cards were redeemed through the promotion. As a result, the promotion garnered over 1500 room nights during January through March. TBID ActivitiesPacket Pg 227 9 20 SLO TBID Annual Report 2016-17 SPECIAL PROMOTIONS (CONT .) Seattle Flight Promotion In April 2017, Alaska Airlines launched non-stop service between San Luis Obispo and Seattle. To maximize the promotion of this flight, the TBID utilized their $100 VISA card promotion to promote overnight stays in San Luis Obispo coordinated with the launch of the flight. This promotion was marketed via targeted facebook ads and through PR outreach. As a result, over 46 room nights were booked in San Luis Obispo in conjunction with a round trip flight to SLO from Seattle. Additionally, the TBID partnered with Atascadero on an overnight discovery trip to Seattle. This overnight trip provided an opportunity for the TBID to participate in the inaugural flight to Seattle, meet with key staff at the Visit Seattle office, coordinate consumer information with the Seattle AAA office and host a media dinner with targeted Seattle digital influencers and journalists. TBID ActivitiesPacket Pg 228 9 21 SLO TBID Annual Report 2016-17 SPECIAL PROMOTIONS (CONT .) Cal Poly Lodging Loyalty Program In 2016–17 the TBID launched a pilot lodging loyalty program for new Cal Poly Parents. This program encouraged visiting parents to stay in San Luis Obispo and as a reward after 10 nights achieved the registered parent would earn one free night stay. The program was launch to a select number of parents and supporters who had registered with the TBID during the Cal Poly SLO Days events. Over 240 parents signed up for the program resulting in over 270 room nights consumed in San Luis Obispo. TBID ActivitiesPacket Pg 229 9 22 SLO TBID Annual Report 2016-17 GUEST SERVICES Through a dedicated contract with the TBID, the San Luis Obispo Chamber of Commerce provides a suite of guest services to the TBID. In 2016–17 this included: • Provide dedicated customer service for San Luis Obispo City hotels at the Downtown Visitor Center. • Provide a 800-number separate phone line exclusively for the TBID. Only SLO TBID properties will be recommended through this phone line. Provide staff to respond to a TBID-only phone line during Visitor Center Hours and return after hours phone calls. • Provide dedicated customer service on SanLuisObispoVacations.com with a Live Chat feature. *Trialed from August to October • Perform “hotel availability call arounds” and keep a record of current availability for all SLO City hotels. • Educate local hoteliers about the hotel availability program and how they may best utilize it. During fiscal year 2016–17, Visitor Center staff contacted every TBID property each week and maintained a record of which hotels were sold out and which have availability for each Thursday, Friday and Saturday as well as impacted weekdays throughout the year to help guests, who would otherwise need to call each property on their own to find a room in SLO. This service also allowed for TBID properties to refer their clients directly to the Visitor Center for centralized guest services. In addition, this information was widely utilized to assist visitors to the Visitor Center in keeping the traveler in the City of San Luis Obispo. Since July, 2016, the Chamber was able to make use of this availability information in conjunction with TBID marketing materials to refer SLO TBID properties 10,266 times. In addition, the Chamber is contracted to answer each call made to the TBID’s 1-877-SLO-TOWN number, which is serves as a response tool to the TBID’s advertising efforts and digital presence. This creates the option for a ‘real person’ to assist in trip planning, ensuring that travelers seeking personal guidance have a friendly, live voice to shape their experience of San Luis Obispo before even arriving. The telephone number, 1-877-SLO-TOWN, is a separate line that rings in the Chamber and is used solely to refer and promote TBID properties. During fiscal year 2016–17 over 2000 calls were answered on the 1-877-SLO-TOWN line, an increase of 270% over the prior year. Much of this is attributed to the seasonal promotions and Cal Poly Lodging Loyalty program implementation and fulfilment. TBID ActivitiesPacket Pg 230 9 23 SLO TBID Annual Report 2016-17 GUEST SERVICES (CONT .) Live Chat To better enhance the San Luis Obispo guest experience, the TBID piloted a live chat service in 2016-17 to make sure that no potential guest encountered any barrier to staying in SLO. Live chat gave website users the opportunity to interact with guest service providers in real-time. The service engaged with users and supported SanLuisObispoVacations.com during peak traffic times when site visitors are planning their trip. The service was piloted from August – October 2016 and nearly 4000 chats were held during that period. Chat Topics: • 30% of chats were hotel related (where to stay, affordable hotels) • 38% of chats were area related (general activities, transportation) • 29% of chats were itinerary related (specific activities/destinations) TBID ActivitiesPacket Pg 231 9 24 SLO TBID Annual Report 2016-17 STRATEGIC PARTNERSHIPS The TBID collaborates with numerous community partners and industry nonprofit organizations in marketing San Luis Obispo as a destination which makes the TBID more efficient in promotional activities. The TBID’s strategic partnerships allow the marketing agencies to build relationships with the organizations below, elevating the destination as a whole. Promotional opportunities with each organization give the TBID new platforms and audiences to build brand awareness. Top partnerships achievements include: Cal Poly Athletics • TBID maintains the exclusive hotel industry sponsor to advertise with Cal Poly Athletics • TBID hosted nearly 650 room nights for visiting teams, recruits, and coaches • Basketball suite event for TBID sales teams • ShareSLO throws 3 first pitches at Cal Poly Baseball • CP Athletics Facebook page posts • Banner ad in ongoing Athletics newsletters • Cal Poly Alumni E-blast & Alumni Getaway Giveaway • Radio spots for basketball • Homecoming game ticket giveaway • New rotating graphics submitted for LED banner at Mott Gym • Soccer Visiting Teams Guide • ShareSLO Track & Field Meet • Program ad • :15 scoreboard video using new footage SLO Wine • Deployed e-newsletters to over 12,000 subscribers that included TBID content, logo, and links • Hosted travel, lifestyle, wine writers in San Luis Obispo for various media visits resulting in media coverage in: Wine Enthusiast, SF Gate & SF Chronicle, USA Today, LA Time, 805 Living, Chicago Tribune • The “Stay” page on SLOwine.com garnered over 30,000 views • Partnered to host an integrated marketing experience at LA Magazine’s The Food Event in October 2016 TBID ActivitiesPacket Pg 232 9 25 SLO TBID Annual Report 2016-17 STRATEGIC PARTNERSHIPS (CONT .) Cal Poly’s New Student & Transition Programs Cal Poly New Student & Transition Programs (NSTP) sees over 50,000 guests of students and their families between Open House, Student Life Orientation Days, and Week of Welcome annually. Through a new partnership in 2016–17 the TBID partnered with NSTP to engage and connect with our new students and their families. In addition to website presence and logo inclusion, the TBID activations include representation at the following events: • Open House • SLO Days • Week of Welcome/Move-in Weekend TBID ActivitiesPacket Pg 233 9 26 SLO TBID Annual Report 2016-17 EVENT PROMOTION In 2016–2017, the TBID sponsored, promoted, and was represented at more than a dozen local events of different shapes and sizes. Over the course of the year, the TBID continued to shape an event strategy to ensure all SLO TBID-sponsored events are well-aligned with the brand, and that expectations and best practices were clear. These guidelines allowed the TBID to reach visitors before, during, and after an event takes place, which in turn arms the TBID with the tools we need to leverage events to put heads in beds. In 2016–17, the TBID took a new approach to supporting a few of the sponsored events. Instead of simply funding out of area marketing, the TBID dedicated their sponsorship dollars along with the marketing agency time to help create and manage the out of area promotional campaigns. This strategy was successful for the TBID. TBID Sponsored Events: • Sustainable Ag Expo • Bacon & Barrels SLO • Festival Mozaic—Winter Mezzo & Summer Event • CowParade SLO—Sponsorship & Event Promotion • SLO Beer Week • SLO Film Festival • SLO Marathon + Half • SLO Jazz Festival • Cal Poly Open House • Roll Out the Barrels TBID Activities EVENT SPONSORSHIP MEASUREMENTS Number of Events Sponsored 13 Estimated Total Number of Event Attendees Reached through Sponsorship 28,350 Total Sponsorship Investment $ 104,250 Packet Pg 234 9 27 SLO TBID Annual Report 2016-17 INDUSTRY RELATIONS Visit California The Visit California partnership has been critical in the growth of our brand within the California Tourism product. San Luis Obispo has received coverage though the marketing activities performed by Visit California including travel trade, press, and industry outreach. Monthly submissions are uploaded to Visit California for media outreach, trade contacts, and newsletter content. Additionally the TBID maintains ongoing coordination to keep City of San Luis Obispo destination page up to date. ShareSLO also participated in Visit California sponsored Twitter chats. The TBID attended the Visit California Outlook Forum educational event in the spring. Central Coast Tourism Council The Central Coast Tourism Council (CCTC) is an organization of tourism and hospitality professionals whose marketing efforts accomplish collectively what no single tourism entity can do alone—promote the entire California Central Coast as a destination and maximize our members’ tourism revenue. The CCTC serves as the Central Coast’s voice in Sacramento, and partners with California Tourism’s global marketing and advertising campaigns. The TBID is actively involved in CCTC with the Tourism Manager as the President and Regional Board Member. In 2016-17, the TBID leveraged the CCTC activities through media and trade leads, blog and social presence, and travel trade leads. SLO CAL The TBID maintains participation with SLO CAL by having two representatives on the Board of Directors and the Tourism Manager on the Marketing Committee. The TBID Board leverages the partnership with Visit SLO CAL to promote San Luis Obispo on a national and international level- beyond the local and state reach the TBID’s marketing plan focus to achieve. The TBID’s participation in Visit SLO CAL also encompasses group sales, film commission, county-wide public relations, and county-wide special events like Restaurant Month and Wine Month. In 2016-17, the TBID partnered with Visit SLO CAL an may initiatives including: participation in IPW, hosting of a China travel trade delegation familiarization visit, Alaska Airlines in-flight magazine advertising co-op, and Matador Network and BuzzFeed content and video co-ops. TBID ActivitiesPacket Pg 235 9 28 SLO TBID Annual Report 2016-17 2016–17 FINANCIAL STATEMENT 2016-17 Financial Statement INCOME SOURCE 2016–17 TOT Revenue Assumption (Revised with Supplement)$7,186,000 TBID Assessment (20% of TOT Revenue)$1,437,200 2016–17 Requested Carryover $68,200 2016–17 Fund Balance $153,000 TBID Fund Reserve $100,000 TBID Program Budget $1,658,400 INCOME Packet Pg 236 9 29 SLO TBID Annual Report 2016-17 2016-17 Financial Statement EXPENDITURE ALLOCATED Operations/Staffing Administration Overhead (2% of TBID Assessment)$28,744 Tourism Manager Salary (.75 FTE)$89,788 Tourism Coordinator Salary (FTE)$102,000 Contracts Marketing Contract $814,500 Additional Rainy Day Funding $14,000 RaceSLO Arch $5,000 Chamber of Commerce - PR $51,000 Chamber of Commerce - Phone $34,000 Chamber of Commerce - Media Monitor $8,000 Chamber of Commerce - Live Chat $4,000 Chamber of Commerce - Special Promotion Partnership $8,000 CCTC Black Diamond Co-op $1,200 Partnerships Cal Poly Athletics $95,500 SLO Wine $17,000 Cal Poly NSTP $20,000 SLO County History Center $6,700 EXPENDITURE ALLOCATED Events Promotion General Events Promotion $108,532 Salmondid Restoration Conference $3,000 CowParade Media Hosting $3,000 ROTB 2016 Expenses $150 Bacon & Barrels SLO Expenses $1,000 Tradeshows Tradeshows & LA/SF/SD Travel Shows & Seattle $35,000 Tourism Conferences $4,000 IPW Co-op $8.125 Tourism Organizations/Research Central Coast Tourism Council Membership $1,000 Smith Travel Report $1,500 Support/Meetings Tourism Manager Expenses $4,000 FAM Trip Hosting $10,000 Getaway Winners $2,500 Past Due CP Rooms $1,000 Corragio Group - Strategic Plan Update $8,000 Cal Poly Printing $600 Earmarked Funds for 2017–18 Programs $100,000 Total Allocated Expenditure $1,353,627 EXPENDITURES *This figure represents the total allocated expenditures. The difference will be available for carryover to the 2017-18 program budget. Packet Pg 237 9 30 SLO TBID Annual Report 2016-17 Looking Ahead to 2016-17 LOOKING AHEAD TO 2017–18 As the TBID moves into 2017-18, the Board is committed to the continued implementation of the 5-year Strategic Clarity Plan. In the next fiscal year, the Board will begin to prepare for the development of their next plan as well. As stated in the marketing plan, BCA and Matchfire will update the SLO TBID Marketing Plan each fiscal year. It is imperative to acknowledge trends, be observant of growth or decline and make changes according to the current tourism climate on an ongoing basis. The SLO TBID Marketing Plan coupled with the SLO TBID Strategic Clarity Plan provides a foundation for building the City of SLO brand and establishing real tactics for consistently improving tourism in the City of San Luis Obispo. The highest priority Strategic Clarity Plan initiatives for the 2017–2018 fiscal year are: • Deliver Smart Growth -Develop an engaging and comprehensive marketing plan -Develop a SLO identity for attracting corporate visitors -Identify, map and prioritize target audiences for marketing and PR • Develop the SLO Brand -Clarify and strengthen the SLO (TBID/City) brand platform, including minimization of brand confusion -Identify assets and build a unique identity for the City of SLO • Build Meaningful Partnerships -Maximize our strategic partnerships at the national, regional, state and local level -Create a comprehensive Cal Poly/Cuesta partnership plan • Contribute to an Unforgettable SLO Experience • Further define and evaluate the need of a loyalty program • Create a packaged program for “How to do SLO” • Develop a world-class event Packet Pg 238 9 31 SLO TBID Annual Report 2016-17 Looking Ahead to 2017–18 LOOKING AHEAD TO 2017–18 (CONT .) The key program activities include: • Venture into new geographic markets, including Seattle and Denver • Explore new tradeshow opportunities, including new markets and B2B events • Develop content specific to tiered markets and target personas • Enhance video strategy from real-time activations to short form, pillar videos • Amplify Cal Poly partnerships through the New Student & Transition Programs, Athletics and Parent Programs • Leverage expected travel trend of increased “bleisure” travelers to market to business travelers during mid-week and shoulder season • Develop email campaign that delivers interest focused content to spur “traveling by passion” • Develop new creative campaign and assets to inspire travel to SLO • Build on existing successful seasonal promotions strategy to increase hotel stays in shoulder season • Utilize effective event strategies from 2016-17, including personalized media buys and creative, to increase out-of-area event attendance and stays in San Luis Obispo lodging properties In addition, the TBID is looking forward to growing the district membership, to include new hotel properties coming into the City of San Luis Obispo. Packet Pg 239 9 32 SLO TBID Annual Report 2016-17 Appendix APPENDIX TOT CHART 2016-17 TOT MONTH TO MONTH 2016-17 Packet Pg 240 9 33 SLO TBID Annual Report 2016-17 Appendix OCC MONTH TO MONTH 2016-17 ADR MONTH TO MONTH 2016-17 Packet Pg 241 9 34 SLO TBID Annual Report 2016-17 Appendix REVPAR MONTH TO MONTH 2016-17 Packet Pg 242 9 R ______ RESOLUTION NO. XXXX (2017 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, 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 A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR 2017-18 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 assessment went into effect on October 1, 2008; 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, notices regarding the approval of the annual report were sent on October 4, 2017 to all assessed properties. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: a) That the Tourism Business Improvement District Annual Report for fiscal year 2016- 17 as filed by the advisory body is hereby approved. b) 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). Packet Pg 243 9 Resolution No. _____ (2017 Series) Page 2 R ______ c) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer a marketing program that increases overnight hotel stays pursuant to the set goals. d) The assessment will be levied and allocated by the City of San Luis Obispo. e) 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. f) The assessment shall be based on two percent (2%) of gross room rent. g) New hotels shall not be exempt from immediate assessment. h) 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 6 P.M., Tuesday, November 7, 2017, before the City Council of San Luis Obispo at the City Council Chambers at 990 Palm Street, San Luis Obispo, California. i) 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. j) 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. k) 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 Packet Pg 244 9 Resolution No. _____ (2017 Series) Page 3 R ______ 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 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 (a)(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 _____________________ 2017. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney Packet Pg 245 9 Resolution No. _____ (2017 Series) Page 4 R ______ IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Carrie Gallagher City Clerk Packet Pg 246 9 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 13, 2017 Page 1 Minutes - DRAFT TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD Wednesday, September 13, 2017 Tourism Business Improvement District Board CALL TO ORDER A Meeting of the Tourism Business Improvement District Board was called to order on Wednesday, September 13, 2017 at 10:00 a.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Wilkins. ROLL CALL Present: Board Members Pragna Patel-Mueller, Bruce Skidmore, Kimberly Walker (10:01), LeBren Young-Harris, and Chair Matthew Wilkins Absent: Board Member Clint Pearce and Vice Chair Nipool Patel Staff: Tourism Manager Molly Cano, Tourism Coordinator Liesel Kuehl, and Recording Secretary Kevin Christian PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None. CONSENT AGENDA ACTION: MOTION BY BOARD MEMBER HARRIS, SECOND BY BOARD MEMBER SKIDMORE, CARRIED 4-0, to approve the Consent Calendar Items C1 through C6. C1. Minutes of Meeting on Wednesday, August 9, 2017 C2. Smith Travel Report C3. Chamber Public Relations Report C4. BCA + Matchfire Marketing Report C5. Chamber Guest Services Report C6. Transit Occupancy Tax (TOT) Report Packet Pg 247 9 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 13, 2017 Page 2 PRESENTATIONS 1. Marketing Agency Monthly Report Representatives from BCA + MatchFire reviewed their monthly marketing activities. Highlights included new metrics on website book-now use, a promotional video featuring Bubblegum Alley, #shareslo use increases, and a report on the Cal Poly Parent Program activity with the students moving in this week. Public Comments: None ---End of Public Comments--- No action was taken on this item 2. SLO Chamber of Commerce Monthly Report Chamber of Commerce representative Molly Kern, Director of Communications and Business Education, reviewed their Public Relations report for August. Highlights discussed included coverage in Seattle Magazine, the Mercury News, the East Bay Times, and A Practical Wedding which had a piece entitled, “23 Best North American Honeymoon Destinations.” Public Comments: None. ---End of Public Comments--- No action was taken on this item. Packet Pg 248 9 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 13, 2017 Page 3 BUSINESS ITEMS 1. 2018 SLO Jazz Festival Sponsorship Consideration Tourism Manager Cano recapped the TBID Board’s funding requirements for the awarded $10,000 for the 2018 SLO Jazz Festival. Jazz Festival representative Scott Andrews reviewed the Jazz Festival concerns about the TBID stipulated marketing requirements, outlined the Festival’s priorities to increase outside attendance, and expressed their belief that the marketing efforts should drive attendees directly to the Jazz Festival website in the most streamlined method possible. Tourism Manager Cano and representatives from BCA + MatchFire reviewed the past Jazz Festival website traffic and related ticket sales statistics for the Board and responded to questions. The Board discussed their priorities and the expressed marketing concerns of the Jazz Festival. Jazz Festival representative Scott Andrews was informed that there would be no change in the funding requirement terms. Public Comments: None. ---End of Public Comments--- No action was taken on this item. 2. 2016-17 TBID Annual Report Tourism Manger Cano presented an overview of changes and highlights for the draft FY 2016-17 TBID annual report, played a sizzle real presentation, and informed the Board that the report would be presented to the City Council on October 17, 2017. Board member Patel-Mueller requested a spelling change to her name. Board members Harris and Walker each requested minor changes to the names of their respective hotels. Public Comments: None. ---End of Public Comments--- ACTION: MOTION BY BOARD MEMBER WALKER, SECOND BY BOARD MEMBER SKIDMORE, CARRIED 5-0, to approve the report with the minor changes discussed. Packet Pg 249 9 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 13, 2017 Page 4 3. Board Member Committee Assignments Tourism Manager Cano reviewed the management and marketing committee meeting schedules. The Board discussed their availability, directed staff to make some changes to meeting dates, and decided on the following sub committee assignments. The new committee assignments will begin in October 2017. Management Marketing Patel-Mueller Young-Harris Patel Walker Pearce Skidmore Public Comments: None. ------------------ ---End of Public Comments--- Packet Pg 250 9 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 13, 2017 Page 5 4. Property Liaison Assignments Tourism Manager Cano reviewed the background and purpose of property liaison assignments. The Board made changes to the assignments to group them geographically as follows: 2017-18 Board Liaison Property Name Clint Budget Inn Clint Homestead Motel Clint Los Padres Motel Clint Madonna Inn Inc Clint San Luis Obispo Travelodge Clint Villa San Luis Motel Bruce Royal Oak Bruce Economy Motel Bruce Holiday Inn Express Bruce La Cuesta Inn Llc Bruce Vagabond Bruce Embassy Suites Kimberly Avenue Inn Kimberly Granada Hotel & Bistro Kimberly Hostel Obispo Kimberly San Luis Creek Lodge Kimberly SLO Brew Lofts LeBren Motel 6 #1373 LeBren Motel 6 #138 LeBren Rose Garden Inn LeBren Courtyard By Marriott LeBren Hampton Inn & Suites Matt Inn at San Luis Obispo Matt Sunbeam Matt Sands Inn & Suites Matt Super 8 Motel Matt The Butler Hotel Matt Petit Soleil Nipool America's Best Value Inn Nipool Lamplighter Nipool Quality Suites San Luis Obispo Nipool Ramada Olive Tree Inn Nipool San Luis Inn & Suites Pragna Lexington Inn Pragna Apple Farm Pragna Garden Street Inn Bed & Breakfast Pragna Heritage Inn Pragna Peach Tree Inn Packet Pg 251 9 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 13, 2017 Page 6 Public Comments: None. ------------------ ---End of Public Comments--- ACTION: MOTION BY BOARD MEMBER WALKER, SECOND BY BOARD MEMBER HARRIS, CARRIED 5-0, to approve the assignments as discussed. TBID LIAISON REPORTS &COMMUNICATIONS 1. Hotelier Update No further discussion at this time. 2. Management Committee Update Tourism Manager Cano reported on changes to the STR report contract and additional committee activity. 3. Marketing Committee Update Tourism Manager Cano reported on MindBody University, upcoming travel show booth changes, and approval of the 2017-18 Media Plan. 4. Promotional Coordinating Committee (PCC) Update Tourism Manager Cano reported on the activities of the PCC, specifically covering approval of the SLO Happening program plan and work on their Strategic Plan. 5. Visit SLO CAL Update Tourism Manager Cano reported on activities of the Visit SLO CAL Marketing Committee. 6. Tourism Program Update Tourism Manager Cano reviewed the following: • Cal Poly partnership – Move-In weekend at Cal Poly • Promotional Gift Cards left over from the Rainy Day promotion • Central Coast Tourism Council • Short-term rental program and AirBnB compliance Packet Pg 252 9 DRAFT Minutes – Tourism Business Improvement District Board Meeting of September 13, 2017 Page 7 ADJOURNMENT The meeting was adjourned at 11:38 a.m. The next Regular meeting of the Tourism Business Improvement District Board is scheduled for Wednesday, October 11, 2017 at 10:00 a.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD: XX/XX/2017 Packet Pg 253 9 Page intentionally left blank. Packet Pg 254 9 THENewspaper of the Central Coast OCT 16 201? 3825 South Higuera • Post Office Box 112 • San Luis Obispo, California 93406-0112 • (805) 781-7800 In The Superior Court of The State of California In and for the County of San Luis Obispo AD #3321401 CITY OF SAN LUIS OBISPO OFFICE OF THE CITY CLERK STATE OF CALIFORNIA ss. County of San Luis Obispo I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen and not interested in the above entitled matter; I am now, and at all times embraced in the publication herein mentioned was, the principal clerk of the printers and publishers of THE TRIBUNE, a newspaper of general Circulation, printed and published daily at the City of San Luis Obispo in the above named county and state; that notice at which the annexed clippings is a true copy, was published in the above-named newspaper and not in any supplement thereof — on the following dates to wit; OCTOBER 7, 2017 that said newspaper was duly and regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior Court of San Luis Obispo County, State of California, on June 9, 1952, Case #19139 under the Government Code of the State of California. I certify (or declare) under the penalty of perjury that the foregoing is true and correct. (Sign -e of Principal Clerk) DATE: OCTOBER 7, 2017 AD COST: $139.20 CMOF WwMiumomm SAN LUIS OBISPO CITY COUNCIL NOTICE OF PUBLIC MEETING Tho San Luis Obispo City Council invites all interested persons to attend a public meeting on Tuesday, October 17, 2017, at 6.00 p.m. in the City, Hall Council Chamber, 990 Palm Street, San Luis Obi- spo. California, relative to the following: 2018.17 A-.NNUAL REPORT Ol Tf i; TdURI$Pof BUSitim-impRovEmmi 1713TRICT 1. As Recommended by the Tourism Busi- ness Improvement District (7130), receive and approve the TBID Boards 2016.17 annual report; and 2. Adopt a resolution of intention to levy and CcItact assessments within the TB 10. area in fiscal year 2017-18 at the same rate as in fiscal year 2016-17. For more information, you are invi led to contact Molly Ca no of the City's Adminlsire - tlon Department at (805) 781-7165 or by email at mcanpAsioclty_crg The City Council may also discuss other hearings or business items before or after the Items listed above. Reports for this meeting will be available for review in the City Clerk's Office and online at www.slo city o{gon Wednesday, October 11, 2017 Please call the City Clerk's Oliloe at [805] 781-7100 for cobra Information, The City Council meeting wHl be lelevlsed live on Charter Cable Channel 20 and live slream- Ing on www.slocltv.oro. Carrie Gallagher City Clerk City of San Luis Obispo Qeiober 7, 2017 3321401 City of San Luis Obispo Tourism Business Improvement District: FY 2016-17 Annual Report 10/17/2017 Item 9, Staff Presentation Established in 2008 7-member Advisory Board 2% assessment on lodging properties “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.” 10/17/2017 Item 9, Staff Presentation 10/17/2017 Item 9, Staff Presentation 10/17/2017 Item 9, Staff Presentation 2016-17 YEAR BY THE NUMBERS 10/17/2017 Item 9, Staff Presentation 2016-17 Summarized Financials Anticipated Revenue:$1,437,200 Total Program Budget:$1,658,400* Unaudited Expenditures $1,353,627 * Includes carryover & fund balance from 2015-16 **The difference will be available for carryover to the 2017-18 program budget. 2016-17 FINANCIAL STATEMENT 10/17/2017 Item 9, Staff Presentation STRATEGIC PLAN IMPLEMENTATION 10/17/2017 Item 9, Staff Presentation 2016 –17 TBID Accomplishments 10/17/2017 Item 9, Staff Presentation LOOKING AHEAD TO 2017-18 10/17/2017 Item 9, Staff Presentation Countywide Tourism Marketing District (TMD) •Development & Implementation of the 3 -year Strategic Plan •Research Programs •Visitation •Share of Wallet •Conference Center Feasibility •Countywide Brand Development & Implementation •Air Service Development •Seattle •Denver •Industry Education •Co-Op programs 10/17/2017 Item 9, Staff Presentation Recommendation 1. Receive and approve the Tourism Business Improvement District (TBID) Board’s 2016-17 annual report. 2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, 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 a date for the public hearing on the district and the assessment for 2017- 18” at the same rate as in fiscal year 2016-17. (Public Hearing to be scheduled for November 7, 2017) 10/17/2017 Item 9, Staff Presentation