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11-07-2017 Item 09 Public Hearing - Annual Public Hearing for the Tourism Business Improvement District
Meeting Date: 11/7/2017 FROM: Greg Hermann, Acting Assistant City Manager Prepared By: Molly Cano, Tourism Manager SUBJECT: ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1. Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the citywide Tourism Business Improvement District; and 2. Determine whether a legally sufficient protest is made; and 3. If no legally sufficient protest is made, adopt a resolution affirming the continuation of the San Luis Obispo Tourism Business Improvement District, setting forth the basis for the assessment, and levying the assessment upon hotels in the district for fiscal year 2017-18 (Attachment C). DISCUSSION Background On October 17, 2017, the City Council reviewed and approved the Tourism Business Improvement District (TBID) board’s annual report pursuant to Municipal Code Section 12.42.060 (Attachment A – Council Agenda Action Update 10-17-17). The City’s Municipal Code further requires that, after the approval of the annual report, Council shall adopt a resolution of intention to levy an annual assessment for that fiscal year and schedule a public hearing to receive any written or oral protests against the district. Resolution No. 10840 (2017 Series) setting such a hearing was adopted on October 17, 2017 (Attachment B - Resolution No. 10840). Following the October 17, 2017 Council action, all lodging businesses within the district including hotels, motels, bed and breakfast properties and the city permitted homestays, were noticed for the public hearing scheduled for November 7, 2017. Notices regarding the approval of the public hearing were sent on October 25, 2017 to all assessed properties. Council Action: Public Hearing and Resolution As set forth in Sections 36524 and 36525 of the California Streets and Highways Code and San Luis Obispo Municipal Code Section 12.42.060, the Council has the ability to continue the citywide TBID at the public hearing, unless oral or written protests are received from City hoteliers that will pay 50% or more of the proposed assessments. Under Municipal Code Section 12.42.060, protests are weighted based upon the annual assessment for the prior year by each Packet Pg 95 9 hotel. Staff will have assessment information available at the meeting, but for confidentiality reasons, this information is not made public before or at the meeting. In the event that a sufficient negative protest occurs, no further proceedings to continue the levy of assessments for that fiscal year shall take place. At the conclusion of the public hearing, if insufficient protest is received, Council may then adopt a resolution affirming the continuation of the San Luis Obispo Tourism Business Improvement District, setting forth the basis for the assessment, and levyin g the assessment upon hotels in the district for fiscal year 2017-18. Such a resolution is provided as Attachment C. FISCAL IMPACT In 2017-18, the TBID projected revenue is $1,465,787, which is intended to be used for tourism marketing and promotion as outlined in the TBID Strategic Plan and Marketing Plan. Attachments: a - 10-17-2017 Agenda Action Update b - Resolution No. 10840 (2017 Series) c - Reso confirming TBID 11-7-17 Packet Pg 96 9 Action Update CITY OF SAN LUIS OBISPO CITY COUNCIL Tuesday, October 17, 2017 Regular Meeting of the San Luis Obispo City Council ROLL CALL Present: Council Members Carlyn Christianson, Aaron Gomez, Andy Pease, Vice Mayor Dan Rivoire, and Mayor Heidi Harmon Absent: None. Staff: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Carrie Gallagher, City Clerk AGENDA ITEMS ACTION CLOSED SESSION A. CONFERENCE REGARDING PROPERTY NEGOTIATIONS NO REPORTABLE ACTION STUDY SESSIONS 1. PRELIMINARY RESULTS OF THE CAPITAL FACILITIES FEE PROGRAM NEXUS STUDY AND THE WATER AND WASTEWATER CAPACITY AND CONNECTION FEE PROGRAM STUDY: STUDY SESSION STUDY SESSION RECEIVED AND COUNCIL PROVIDED DIRECTION CONSENT CALENDAR 2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES APPROVED (5-0) 3. MINUTES OF AUGUST 15, 2017, SEPTEMBER 26, 2017, AND OCTOBER 3, 2107 APPROVED (5-0) 4. MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACTS FOR THE LAGUNA LAKE DREDGING AND SEDIMENT MANAGEMENT PROJECT NO ACTION TAKEN ITEM CONTINUED TO 10/24/17 5. ACCEPTANCE OF SUBDIVISION IMPROVEMENTS FOR TRACT 2707 (953 ORCUTT, TR 151-03) RESOLUTION 10837 (2017 Series) ADOPTED (5-0) Packet Pg 97 9 Action Update – City of San Luis Obispo City Council Meeting of October 17, 2017 Page 2 6. CALIFORNIA OFFICE OF EMERGENCY SERVICES (CALOES) HAZARD MITIGATION GRANT APPLICATION RESOLUTION 10838 (2017 Series) ADOPTED (5-0) 7. MARGARITA LIFT STATION REPLACEMENT PROJECT AWARD, SPECIFICATION NO. 91214A APPROVED (5-0) 8. ADOPTION OF A RESOLUTION DENYING, IN PART, AND UPHOLDING, IN PART, AN APPEAL OF THE ARCHITECTURAL REVIEW COMMISSION’S DECISION TO DENY A REQUEST TO MODIFY APPROVED COLORS AND BUILDING DESIGN FOR A REMODELED BUILDING AT 1135 SANTA ROSA STREET RESOLUTION 10839 (2017 Series) ADOPTED (4-0) (GOMEZ RECUSED) PUBLIC HEARING ITEMS AND BUSINESS ITEMS 9. 2016-17 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) RESOLUTION 10840 (2017 Series) ADOPTED (5-0) 10. PUBLIC HEARING - PILOT PROGRAM FOR WINTER OPEN SPACE HOURS OF USE COUNCIL APPROVED TO CONTINUE ITEM FOR ADDITIONAL EVALUATION TIME (3-2) (PEASE NO) (CHRISTIANSON NO) ITEM CONTINUED TO A DATE UNCERTAIN 11. PUBLIC HEARING - WATER AND WASTEWATER CAPACITY AND CONNECTION FEES RESOLUTION 10841 (2017 Series) REPORT RECEIVED BY CONSENSUS, COUNCIL APPROVED ITEM BE CONTINUED AND BROUGHT BACK TO COUNCIL IN CONNECTION WITH AB 1600 FEES Packet Pg 98 9 R10840 RESOLUTION NO. 10840 (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 99 9 Resolution No. 10840 (2017 Series) Page 2 R10840 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 100 9 Resolution No. 10840 (2017 Series) Page 3 R10840 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 _Council Member Christianson_, seconded by Council Member __Gomez__, and on the following roll call vote: AYES: Council Members Christianson, Gomez and Pease, Vice Mayor Rivoire, and Mayor Harmon NOES: None ABSENT: None The foregoing resolution was adopted this _17____ day of ____October______ 2017. __/s/ Mayor Heidi Harmon__________ __ Mayor Heidi Harmon ATTEST: /s/ Carrie Gallagher____________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _/s/ J. Christine Dietrick__________________________ J. Christine Dietrick City Attorney Packet Pg 101 9 R ______ RESOLUTION NO. ________ (2017 Series) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING THE BASIS FOR AND THE LEVY OF THE ASSESSMENT FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT, AND AFFIRMING THE ESTABLISHMENT OF THE DISTRICT WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District had requested the City of San Luis Obispo establish such a self- assessment improvement district in 2008; and WHEREAS, the San Luis Obispo Tourism Business Improvement District was established in July 2008, and the San Luis Obispo Tourism Business Improvement District Law was incorporated into the Municipal Code under Chapter 12.42; and WHEREAS, the City Council appointed an advisory board to carry out the functions specified in Street and Highways Code Section 36530, and to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS the San Luis Obispo Tourism Business Improvement District Law and the Parking and Business Improvement Law of 1989 requires the advisory body to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, such report was filed and approved by the City Council on October 17, 2017 WHEREAS, on October 17, 2017 the City Council adopted Resolution No. 10840 (2017 Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District in 2017- 18; and WHEREAS, notices regarding the approval of the public hearing were sent on October 25, 2017 to all assessed properties; and WHEREAS, the City Council held a duly noticed Public Hearing on November 7, 2017 to allow for protests, as contemplated by Streets and Highway Code Section 36524; and WHEREAS, sufficient written or oral protest was not received from hotel businesses in the district which pay fifty percent or more of the assessment; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: Packet Pg 102 9 Resolution No. _____ (2017 Series) Page 2 R ______ a) The establishment of Tourism Business Improvement District in the City of San Luis Obispo in accordance with the San Luis Obispo Tourism Business Improvement District Law, San Luis Obispo Municipal Code Chapter 12.42, and the California Streets and Highways Code, section 36500 et seq. (Parking and Business Improvement Law of 1989) is affirmed. b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer marketing programs that increase overnight lodging. c) The assessment shall be levied and allocated by the City of San Luis Obispo. d) The assessment shall to be levied on all “hotels”, as that 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 an y hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. e) The assessment shall be based on two percent (2%) of gross room rent. f) New hotels shall not be exempt from immediate assessment. 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 Packet Pg 103 9 Resolution No. _____ (2017 Series) Page 3 R ______ APPROVED AS TO FORM: ____________________________________ J. Christine Dietrick, City Attorney 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 104 9 d C'1 O cony G09 a1 Oo 0 En o�� O W ot cn o��No y Z N �r �O rtz �O 515, � y O. CD CDD (�.D � O o 0 0 CnCDy C O CD o C 0 p -S?, nM - OCD CD CD ao cu ° y'o = � W " ... 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Q m i '< O Q? b 3 J o w N 3 j- °- a (O 3. p m (D m O D n 5: N -] O O» N W o p 7 N c C N ,? 7 a •< w T - 7 7 N N b ° N (? O •i Z �+ 1 y (A (D N m m o 3= 3 -• p o m Cl s 7 m a o m w -? �< -!� 7 ° _® a a. o w a_ m o - a o 1 O p 0 )1. o° mnv D ZLOZ G) n re Newspaper of the Central Coast MIJ, I bw SLO CITY CLERK 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 Ci'i'YDl? f Sfm Li M D;BIM AD #3352920 SAN LUIS OBISPO CITY COUNCIL CITY OF SAN LUIS OBISPO NOTICE OF PUBLIC HEARING OFFICE OF THE CITY CLERK The San Luis Obispo City Council invites all interested persons to attend a public hearing on Tuesday. November 7, 2017, STATE OF CALIFORNIA at bra p,m. In the Cily Hall Council Chamber, 990 Palm Sl reef. San Lula 0bl- SPO, Car IKorn 10- rolatiw 10 the following; ss. County of San Luis Obispo ANN—VAI—PUBLIC H9ARlq_F0 THE T&R sE M pQSINEs IMPR v HENT �sTLCT I am a citizen of the United States and a resident of the A public hearing to consider any protests Countyaforesaid I am over the age of eighteen and not g g against the continuance Of the San Luis Obispo Tourism Susinoss Improvement Dis- interested in the above entitled matter; I am now, and at trict (TSID). If a legally sufliclenl protest is all times embraced in the publication herein mentioned not made, consider adoption of a reaolu- "on affirming the conlinualiOn Of the TSID, was the principal clerk of the printers and publishers of p p p p setting forth the basis for the assessment, and levyinp the assessment upon hotels in THE TRIBUNE, a newspaper of general Circulation, the district for fiscal year 2017-% printed and published daily at the City of San Luis For mora lnformation, you are Invited to Obispo in the above named county and state; that notice contact MOIly Cana of The City's Administra- at which the annexed clippings is a true copy, was tion Department at (805) 751-7165 or by em 011 at mQqqpo31 l qM. published in the above-named newspaper and not in any The City Council may also discuss other supplement thereof — on the following dates to wit; hearings or business items before or alter OCTOBER 28, 2017 that said newspaper was duly and the items listed above. If you challenge the proposed project in court, you may be limit - regularly ascertained and established a newspaper of ad to raising only those issues you Or general circulation by Decree entered in the Superior someone else raised at the public hearing described In this notice, or in written corm - Court of San Luis Obispo County, State of California, on to the or prior to, thelivered publIc hearing. City Council at, June 9, 1952, Case #19139 under the Government Code of the State of California. Rapons for ibis meoling wIU be available for review in the city clerks office and on• line at www,sl city.org an November 1 2017. Please call the Clty Clerk's Office ai I certify (or declare) under the penalty of perjury that the (805) 781-7100 for more informstlon. The foregoing is true and correct. City COunCli meofing will be televised live ail Charter Cable Channel 20 and live streaming on www.sfocitv.ora Carrie Gallagher Sif Principal Clerk G11yClerk ( �'aure oI1al ) City of San Luis Obispo DATE: OCTOBER 28, 2017 Or.+n6�ir 28, 2017 3352920 AD COST: $157.76