HomeMy WebLinkAboutItem 11 - Annual Public Hearing for the Tourism Business Improvement District (TBID)Department Name: Administration and IT
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November 12, 2019
Public Hearing
30 minutes
FROM: Greg Hermann, Deputy 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 San Luis Obispo Tourism Business Improvement District and determine
whether a legally sufficient protest is made; and
2.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 2019-20
(Attachment A).
DISCUSSION
Background & Previous Council Action
On October 1, 2019, Council reviewed and approved the San Luis Obispo Tourism Business
Improvement District (TBID) board’s annual report pursuant to Municipal Code Section
12.42.060 (Attachment B).
The City’s Municipal Code further requires that, after the approval of the annual report, Council
may choose to 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. 11050 (2019 Series), setting such a hearing, was adopted on October 1, 2019
(Attachment C).
Following the October 1, 2019, 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 5, 2019. Those notices were sent on
October 24, 2019 to all assessed properties.
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Item 11
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 San
Luis Obispo 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
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 TBID, setting forth the
basis for the assessment, and levying the assessment upon hotels in the district for fiscal year
2019-20.
Policy Context
As referenced in the City’s Municipal Code, 12.42.060 and Sections 36524 and 36525 of the
California Streets and Highways Code, after approval of the annual report the City Council shall
follow the hearing process. At the public hearing, the City Council shall hear and consider all
protests. If written protests are received from hotel businesses in the district paying fifty percent
or more of the annual assessment, no further proceedings to continue the levy of assessments
shall take place. The protests shall be weighted based upon the annual assessment for the prior
year by each hotel business. (Ord. 1517 § 3 (part), 2008)
Public Engagement
This item is on the agenda for the November 5, 2019 Council meeting and will follow all
required postings and notifications. The public may have an opportunity to comment on this item
at or before the meeting.
All Advisory Body Meetings for the TBID were noticed in accordance with Brown Act
standards.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in
this report, because the action does not constitute a “project” under CEQA Guidelines sec.
15378.
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: TBID Fund 1,606,600 1,606,600
Total 1,606,600*
* In 2019-20, the TBID projected revenue is $1,606,600, which is intended to be used for
tourism marketing and promotion as outlined in the TBID Strategic Plan and 2019-20 TBID
Marketing Plan. All costs associated with TBID program expenditures are paid with TBID
revenues. The City retains 2% of TBID revenues to offset administrative overhead which is
approximately $32,132 in FY 2019-20.
ALTERNATIVES
Delay the public hearing. Staff does not recommend this alternative because all legally required
noticing has been completed. In addition to the legal noticing, staff provided additional
constituent outreach. In the event that the City receives close to 50% protest, the Council could
delay the public hearing in order verify protest submissions.
Deny the resolution. Staff does not recommend this alternative if the requirements to deny the
resolution under the legal protest specifications were not met.
Attachments:
a - Daft Resolution
b - Action Update for October 1, 2019 Council Meeting
c - Resolution 11050 (2019 Series) Declaring Intention to Continue TBID
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RESOLUTION NO. _____ (2019 Series)
A 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 1, 2019
WHEREAS, on October 1, 2019 the City Council adopted Resolution No. 11050 (2019
Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement
District in 2019-20; and
WHEREAS, notices regarding the approval of the public hearing were sent on October 24,
2019 to all assessed properties; and
WHEREAS, the City Council held a duly noticed Public Hearing on November 5, 2019
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 Council of the City of San Luis Obispo
as follows:
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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 any hotel, inn, tourist home or
house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment
house, dormitory, public or private club, mobile home or house trailer at a fixed
location, or other similar structure or portion thereof.
e)The assessment shall be based on two percent (2%) of gross room rent.
f)New hotels shall not be exempt from 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 _____________________, 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington, City Clerk
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 ______________, 2019.
____________________________________
Teresa Purrington, City Clerk
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Action Update
CITY OF SAN LUIS OBISPO CITY COUNCIL
Tuesday, October 1, 2019
Regular Meeting of the City Council
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, October 1, 2019
at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Mayor
Harmon.
CLOSED SESSION
A: CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
City Attorney Dietrick stated that the Council met in closed session on one matter for existing litigation
Kristoffersen vs. City of San Luis Obispo in the case of civil action #2:19-cv-07369-VAP-SS by motion
of Council Member Christianson and second by Vice Mayor Pease on a vote of 5-0 to approve a tentative
settlement that has been filed with the court. City Attorney Dietrick reported out the terms of the
settlement, a copy of the full settlement agreement is available in the City Clerk’s office.
CONSENT AGENDA
3.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0 to waive reading of all resolutions and ordinances as appropriate.
4.DRAFT MINUTES REVIEW - SEPTEMBER 17, 2019 CITY COUNCIL MEETING
CARRIED 5-0, to approve the minutes of the City Council meeting held on September 17, 2019.
5.2019 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT APPLICATION
CARRIED 5-0, to authorize staff to submit an application for a 2019 Edward Byrne Memorial Justice
Assistance Grant in the amount of $12,859 and authorize the City Manager to execute necessary grant
documents and direct the appropriation of monies into the accounts required to administer and fulfill the
obligations of the grant.
6.APPROVAL OF THE FINAL MAP FOR TRACT 3063 - PHASE 2, 3987 ORCUTT ROAD
(FMAP 2005-2018)
CARRIED 5-0, to adopt Resolution No. 11047 (2019 Series) entitled, “A Resolution of the City Council
of the City of San Luis Obispo, California, approving the Final Map for Tract 3063 – Phase 2 (3987
Orcutt Road, FMAP-2005-2018)” and authorize the Mayor to execute a Subdivision Agreement and
Private Access Drainage Easements.
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7. APPROVAL OF THE FINAL MAP FOR TRACT 3113, 3063 ROCKVIEW PLACE (SBDV-
1211-2017)
CARRIED 5-0, to adopt Resolution No. 11048 (2019 Series) entitled, “A Resolution of the Council of
the City of San Luis Obispo approving the Final Map for Tract 3113 (3063 Rockview Place, Sbdv-1211-
2017),” and authorize the Mayor to execute a Subdivision Agreement.
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
8. PUBLIC HEARING: REVIEW OF APPEALS FILED BY DAMIEN MAVIS, APPLICANT,
AND DAVID JOY, APPELLANT, CONCERNING THE PLANNING COMMISSION’S
DECISION REGARDING PROPERTY LOCATED AT 1121 MONTALBAN
CARRIED 5-0 to adopt Resolution No. 11049 (2019 Series) entitled, “A Resolution of the City
Council of the City of San Luis Obispo, California, upholding the appeal of the applicant (APPL-
0393-2019) to remove Condition No. 3 that Planning Commission added to restrict access to
bedrooms to a single door rather than the proposed double doors; and denying the appeal of the
appellant (APPL-0394-2019), thereby granting final approval of the development of a three-story
mixed-use development consisting of 15 residential units and 430 square feet of commercial space.
The project includes two Affordable Housing Alternative Incentive Requests for a density bonus of
97.5 percent and Relief of Site Development Standards to allow ground floor residences within the
first 50 feet of floor area adjacent to the street. The project is Categorically Exempt from
Environmental Review. As represented in the staff report and attachments dated September 17, 2019”
with the following changes.
The Director’s approve regarding unbundling the parking shall be final (non-appealable).
Prior to the issuance of the building permit, the applicant shall provide a Trip Reduction Plan to
reduce vehicle trips to and from the property, the plan shall clearly identify the responsibility for
monitoring and reporting the progress of the Trip Reduction Program to the satisfaction of the
Community Development Director and the Transportation Division. The Trip Reduction Plan shall
be clear on the performance measures, how they will be monitored/measured.
To support the neighborhood compatibility and city-wide VMT reduction goals, applicant shall
develop and implement a Car Free program to actively discourage car ownership, with special focus
on tenants who choose not to lease on-site parking. The program will be integrated with the Trip
Reduction Plan and will promote and support non-car transportation through education and possible
incentives.
STUDY SESSION ITEMS
9. STUDY SESSION ON SHARED BICYCLE SERVICES
By consensus, Council directed staff to receive and file the presentation regarding shared bicycle
services and provided the following direction:
Return to Council with a framework for a policy and request for proposals.
Would like to see a program model associated with getting funding for bike infrastructure.
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Hybrid (docking and dock less) component seems most useful.
Pilot program with checking in at the six months point is important.
Stakeholders – Cal Poly, Cuesta, Downtown SLO, Mass Transit, and hotels
Program that includes e-bike, analog bikes and bikes that are geared to a variety of user-
abilities (i.e., recumbent, bikes with baskets, and child seats.)
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
10. 2018-19 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT
(TBID)
CARRIED 5-0 to receive and approve the TBID Board’s 2018-19 annual report and adopt Resolution
No. 11050 (2019 Series) 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 2019-20” at the same rate as in the fiscal year
2018-19.
11. CONSIDERATION OF THE PROPOSED RENEWAL OF THE SAN LUIS OBISPO
COUNTY TOURISM MARKETING DISTRICT (SLOCTMD)
CARRIED 5-0 to
a. Authorize the San Luis Obispo County Board of Supervisors to renew the SLOCTMD inclusive
of lodging properties within the City of San Luis Obispo to be funded by a 1.5% gross room rent
assessment for a term of ten years and based on support from properties representing over 50% of
taxable rents in the City of San Luis Obispo; and
b. Adopt Resolution No. 11051 (2019 Series) entitled, “A Resolution of the City Council of the City
of San Luis Obispo, California, granting consent to the County of San Luis Obispo to renew the
San Luis Obispo County Tourism Marketing District” within the City of San Luis Obispo, to be
funded by a 1.5% gross room rent assessment.
ADJOURNMENT
The meeting was adjourned at 11:08 p.m.
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RESOLUTION NO. 11050 (2019 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
2019-20
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, an annual report was prepared pursuant to Section 36533 of the Streets and
Highway Code; and
WHEREAS, notices regarding the approval of the annual report were sent on September
20, 2019 to all assessed properties.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
a) That the Tourism Business Improvement District Annual Report for fiscal year 2018-
19 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).
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Resolution No. 11050 (2019 Series)
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 Tourism Business Improvement
District and proposed assessment, and is hereby set for 6 P.M., Tuesday, October 16,
2018, 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 Tourism Business Improvement District, the boundaries of the
Tourism Business Improvement District, or the furnishing of specified types of
improvements or activities will be heard.
j) Any protest against the continuation ofthe Tourism Business Improvement District and
the levying of the assessment, or any aspect thereof, may be made in writing. 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. A protest may be withdrawn at any time before the
conclusion of the public hearing.
k) If, at the conclusion of the public hearing, there are of record, written protests by the
owners of businesses within the proposed Tourism Business Improvement District that
will pay fifty percent (50%) or more of the total assessments of the entire Tourism
Business Improvement District, no further proceedings to continue the Tourism
Business Improvement District shall occur. New proceedings to form the Tourism
Business Improvement District shall not be undertaken again for a period of at least one
1) year from the date of the finding. If the majority of written protests are only as to
an improvement or activity proposed, then that type of improvement or activity shall
not be included in the Tourism Improvement District.
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Resolution No. 11050 (2019 Series)
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 Gomez, seconded by Council Member Christianson, and
on the following roll call vote:
AYES:
NOES:
ABSENT:
Council Members Christianson, Gomez, Stewart, Vice Mayor Pease and
Mayor Harmon
None
None
The foregoing resolution was adopted on October 1, 2019.
ATTEST:
1 2~0-'?tWu-.,~'
Teresa Purrington
City Clerk
ri tine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my han~d affixed the official seal of the City
of San Luis Obispo, California, this \) t\ day of CJ o\a fC , '.2...019, .
eresa Purrington
City Clerk
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