The URL can be used to link to this page

Home My WebLink About11-05-2013 ph1 annual ph of tbid FROM: Michael Codron, 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. 2. Determine whether a legally sufficient protest is made. 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 2013-14. DISCUSSION Background On October 1, 2013, 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 1 – Council Agenda Report). The 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. 10463 (2013 Series) setting such a hearing was adopted on October 1, 2013 (Attachment 2). 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 hotel. Staff will have assessment information available at the meeting, but for privacy reasons, this information is not made public before or at the meeting. In the event that a 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 no or 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 levying the assessment upon hotels in the district for fiscal year 2013-14. Such a resolution is provided as Attachment 3. 11/05/13 PH1 - 1 FISCAL IMPACT According to the City’s Financial Plan, the TBID is projected to collect $1,151,400 for tourism marketing and promotion in fiscal year 2013-14. ATTACHMENTS 1. Council Agenda Report – October 1, 2013 2. Resolution of Intention No. 10463 (2013 Series) 3. Resolution confirming the TBID and levying the assessment PH1 - 2 FROM: Michael Codron, Assistant City Administrative Officer Prepared By: Molly Cano, Tourism Manager SUBJECT: ANNUAL REPORT FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1. Receive and approve the Tourism Business Improvement District (TBID) Board’s annual report. 2. Adopt a resolution of intention to levy and collect assessments within the TBID area in fiscal year 2013-14 at the same rate as in fiscal year 2012-13. DISCUSSION Background In June 2008 Council adopted Ordinance 1517 establishing a tourism business improvement district as requested by the local lodging industry. The district was formed under the State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code and incorporated into the City’s Municipal Code under Chapter 12.42. According to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report (Attachment 1) that outlines the past year’s efforts and how the funding was used and to what effect. In Section 35634, the law further requires that after the approval of the annual report, Council shall adopt a resolution of intention (Attachment 2) to levy an annual assessment for that fiscal year. The resolution also 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 11, 2013, the TBID Board met in its regular monthly meeting to, among other agenda items, finalize the annual report (Board Minutes - Attachment 3). The 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: 1. TBID Background and Advisory Body 2. The TBID’s objective and goals 3. The Marketing Platform now in use 4. 2012-13 Summary of Activities 5. 2012-13 Campaign Metrics Meeting Date Item Number 10/1/13 PH1 - 3 6. 2012-13 Financial Statement Next Steps Assuming the City Council approves the annual report and adopts the resolution of intention, a public hearing will be noticed for November 5, 2013. 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. FISCAL IMPACT Based on the unaudited year-end results for 2012-13, the total assessment collected totals $1,118,779, which is approximately $40,000 more than the budgeted amount. In 2013-14, the TBID projected revenue is $1,151,400. Of the projected revenue, $1,128,400 is budgeted for program costs and the remaining $23,000 is budgeted to cover the City’s administrative costs associated with collecting and disbursing the assessment. ALTERNATIVE The City Council may choose to not approve the report. This is not recommend 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 1. Annual Report 2. Resolution of Intention 3. TBID Board Draft Minutes from September 11, 2013 T:\Council Agenda Reports\2013\2013-10-01\Annual Report for the TBID (Codron-Cano) PH1 - 4 Tourism Business Improvement District Annual Report 2012-13 PH1 - 5 1 TBID Annual Report 2012-13 Letter from the Chair Through the past four years since the establishment of the City of San Luis Obispo’s Tourism Business Improvement District (TBID), the funds collected through the assessment have afforded the City a tourism marketing program that has grown from an advertising campaign to a comprehensive program designed to bring people to San Luis Obispo to visit, enjoy, and most importantly stay for a while. The year 2012-13 proved to be a monumental year as the convergence of the past efforts and future aspirations began to coalesce. In November of 2012, the Tourism Manager, Molly Cano, was introduced into the City’s Administration team. This newly created position funded by the TBID in conjunction with the City’s Promotional Coordinating Committee, has afforded the overall tourism program for the City of San Luis Obispo the opportunity to develop a unified voice, cohesive message, and further coordinate the efforts to compliment the work efforts between the City’s two promotional Advisory Bodies. As my second term as the Board Chair, it has been a distinct pleasure to lead the board and its elected members and to partake in the success of an evolving and growing program that has heightened the travelers’ awareness of our region and our City as a place to visit. Over the past year, the TBID Board has seen changes with the shifting of representatives, including Lindsey Ridgeway. The past year board also said farewell to longstanding member Tim Billing who led the board as chair for two years from its prior to my term. With the changing of the faces, the Board also welcomed new commissioners: Kimberly Walker- owner of the Granada Inn & Bistro, Terry Westrope- Vice President of Administration for Ocean Park Hotels and former Visit California Commissioner, and Matthew Wilkins- General Manager for Sands Inn & Suites. Their collective knowledge, experience, and points-of-view have proved to be a great addition to the TBID Board. The year 2012-13 has seen several program additions as the TBID continues to mature and attract tourism to San Luis Obispo. Components have been added to the marketing mix and promotional platform to now encompass a well-rounded tourism campaign including social media though the ShareSLO campaign. The board is especially excited a new partnership San Luis Obispo Wine Country Association which was spearheaded through the funding support of the annual Roll out the Barrels wine country weekend. This partnership will not only bring people to San Luis hotels, but form ties to SLO Wine’s partners, constituents, and loyal clientele. The TBID also welcomed a new member, Granada Inn that opened in the fall of 2012 and has since generated outstanding publicity for the property as well as the City of San Luis Obispo. As we look toward what 2013-14 will hold for the TBID as well as tourism overall for San Luis Obispo, we are excited to embark on a strategic planning process for the TBID. This planning comes at no better time, when the TBID is now in its fifth year and programs have the entered maturity. We are anticipating another great year. Sincerely, Clint Pearce PH1 - 6 2 TBID Annual Report 2012-13 Contents Background ………………………………………………………………….3 Goals & Objectives ………………………………………………………..5 Marketing Platform …………………………………………………….…6 2012-13 Summary………………………………………………………….7 2012-13 Data Comparison ……………………………………………14 Financial Statement………………………………………………………16 PH1 - 7 3 TBID Annual Report 2012-13 Tourism Business Improvement District (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 follow: “This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination.” Advisory Body 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. 2012-13 Advisory Board Name Property Term Clint Pearce – Chair Madonna Inn 3/31/2015 Dean Hutton - Vice-Chair Apple Farm 3/31/2017 Joel Koper Holiday Inn 3/31/2015 Matthew Wilkins Sands Inn 3/31/2016 Nipool Patel Comfort Inn 3/31/2016 Terry Westrope Courtyard 3/31/2017 Kimberly Walker Granada Inn 3/31/2017 PH1 - 8 4 TBID Annual Report 2012-13 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 2012-13, the board met in 11 regular monthly meetings and one special meeting. Additionally, it appointed a budget task force and appointed three of its members to serve on the events promotion subcommittee together with three members of the Promotional Coordinating Committee. In order to keep the lodging constituency abreast of all TBID business, the board assigned liaisons and each board member is responsible for communication with his/her respective group of hotels. The board chair and staff continue to visit all properties at least once a year to personally bring TBID updates and marketing opportunities to each property. PH1 - 9 5 TBID Annual Report 2012-13 Goals and Objectives Objective The TBID’s objective is to promote tourism to San Luis Obispo and expeditiously increase overnight stays in City hotels or simply: “Put heads in hotel beds”. Goals The goals to achieve the objective are five-fold and are the base for all promotional efforts and the programmatic approach within the marketing strategy: 1. Increase occupancy at all 39 hotel properties throughout the year; 2. Increase occupancy during shoulder months; 3. Increase occupancy mid-week; 4. Stabilize bookings and emphasize the City as a year-round destination; 5. Increase the length of stay. The objective and the goals are at the core of all efforts put forth under the TBID annual work program. The initial efforts concentrated on an advertising campaign centered around the tourism website www.sanluisobispovacations. Four years later, the TBID’s program matured into what could be called a promotional marketing platform utilizing a multitude of elements in support of the defined goals and set objective. PH1 - 10 6 TBID Annual Report 2012-13 2012-13 Marketing Strategy All of the TBID’s efforts are driven by the objective and goals to increase demand for overnight stays and hotel occupancy. The City’s tourism website www.sanluisobispovacations.com remains the center piece to which all other efforts drive traffic. A key measure within the site is the use of the “Hotel Finder” which is dominantly placed on all pages within the site. In 2012-13 the marketing platform continued to utilize five distinct elements to broaden awareness of San Luis Obispo as a destination and to actively bring people to town. 2012-13 Marketing Platform Advertising Partnerships Tradeshows Events Promotion Tourism Organizations PH1 - 11 7 TBID Annual Report 2012-13 2012-13 Marketing Detail Advertising With a fully operating media funnel for three years, the campaign has been able to advance the objectives in a slowly maturing travel market. The funnel concentrates on the four key elements utilizing traditional and online advertising, social media, search tools, search engine optimization (SEO) and a monthly newsletter to drive traffic through the funnel and ultimately to booking a hotel room in San Luis Obispo. In 2012-13, the TBID shifted the budget allocations in order to provide more funding available for partnerships, events, new programs, and the addition of the Tourism Manager position. As a result, the marketing and advertising contract was reduced. However in light of the investment reduction, the 2012-13 marketing campaign continued to deepen the targeting of experience specific interests and maximized the user experience on the website, using current traveler research and site analytics aggregated from the previous year. The major focus was on the development and luach of the first social platform for the TBID, through a campaign and program called ShareSLO. The changes seen in the marketing mix as a result of the budget reduction included: • Reduction in the display network • Removal of the 3rd party services that haven’t been performing • Budget for print ads was removed from the overall media plan • Additional Public Relations service allocation was removed from the contract as to not duplicate efforts with the Promotional Coordinating Committee • Streamlined marketing services and management by the agency with the establishment of the Tourism Manager position The executed media plan utilized the following strategies: • continued emphasis on targeting the TBID’s message to the most searched for travel terms • utilized digital advertising to build continued exposure with a seasonal emphasis • utilize social and event content to build media message • utilize events specific promotion on the website incorporating media buys and the monthly newsletter • monthly give-away in newsletter utilizing events for additional draw The following media mix was applied in pursuit of the above mentioned strategy: • Online banner ads that appear on travel portals and in line with travel articles • Search Engine Optimization (SEO) and Pay-per-click Search Engine Marketing • Placement and positioning in sponsored travel digital communication • Establishment of a social media platform through the ShareSLO program PH1 - 12 8 TBID Annual Report 2012-13 Overall, in 2012-13 the TBID through the management of the marketing agency took a calculated risk by reallocating 47% of the paid media budget to the ShareSLO campaign. At first review there were a few negative results that were garnered through this decision, as expected in relation to the paid media: • Traffic specially attributed to paid media went down 31% • Hotel outbound clicks specifically attributed to paid media went down 514 • Decrease in the total amount of new newsletter subscribers in comparison to the previous period However, while there were fewer eyes on the placed advertising, there was more traffic to the website. There was an 11% increase in the visits to the site, the length of time on the site increased by 14%, and the bounce rate decreased by almost 7.5% which proves that the traffic coming to the site was intentional. While the budget was decreased, the ad buys were smarter and more profitable -- showing that the TBID advertising investment in comparisons to hotel conversions decreased from nearly $25 a conversion to a much lower cost of $13. The charts below depict the details of those conversions. Website Traffic Comparison for 2012-13 to 2011-12 PH1 - 13 9 TBID Annual Report 2012-13 Media Buy Comparison Expenditure Detail The City’s Advertising Agency for the TBID, Rosetta Marketing, pursued once again an aggressive media campaign online. Due to aggressive media buying, constant monitoring and campaign adjustment, the agency spent about $585,700 of the contracted $597,000. Of the $585,700 spent, $454,000 was spent on general marketing expenditures and $131,700 on the ShareSLO campaign overall. The remaining $11,300 will be moved to fiscal year 2013-14 in support of events promotion and tradeshow material. Below is the breakdown of the agency’s expenditure: 17% 49% 11% 21% 2% Advertising Marketing & Media Mgmt Media Buy Media Development Website Features Partnership Fulfillment PH1 - 14 10 TBID Annual Report 2012-13 Additional Website Outcomes The traffic to the site also shows that digital “word of mouth” is increasing providing more traffic to the website and mobile traffic has seen a huge increase. • Direct traffic up 92% (11,160 more visits) • Organic search traffic up 75% (33,727 more visits) • Inbound referrals up 6% (2,541 more visits) • Mobile traffic has doubled from 15% of users to 30% of users. ShareSLO ShareSLO is one of the major marketing initiatives for the TBID in 2012-13. The program is aimed at developing a new approach to managing social media networks though consistent and relevant content upload and participation. The program was crafted as a way to launch the TBID into the social media networks through creating a unique platform and program to build community support and content integration. This is not the ordinary social media campaign. The program launched in January, through the TBID’s contracte d marketing agency Rosetta Marketing Group. This multi-phased campaign began with the “Search for the Ambassador,” followed by the “Be Everywhere” phase for the Ambassador, and now the “Build the Community” phase. Through the “Build the Community” phase, the representation efforts are focused on the Street Team. The ShareSLO Street Team is a group of people that love San Luis Obispo and are ready to share it with the world. They are tasked with educating the general public about the beauty of San Luis Obispo through social media and ShareSLO.com. ShareSLO.com is a community-generated information hub providing up-to-date and entertaining accounts of life in the happiest city in North America. It celebrates all that San Luis Obispo has to offer, through the eyes of real residents and visitors. With a local events calendar, community blog and live feeds from Twitter and Instagram, ShareSLO.com helps visitors live like the locals. 41% 37% 13% 9% ShareSLO Creative Development Project Management Media PH1 - 15 11 TBID Annual Report 2012-13 The ShareSLO.com blog reports on activities and events, local hot spots and backroad adventures that are all uniquely San Luis Obispo. Whether wine, food, outdoor activities or Cal Poly life, ShareSLO bloggers are in-the-know when it comes to local happenings and Central Coast life. Visitors can find them out on the town and online enjoying everything that makes our city great. The Street Team is encouraged to use the hashtag term (#shareslo) on their social posts in order for the results and reach of their post to be tracked. Within the first few month of the program, the campaign generated substantial results and reach for the SLO TBID. ShareSLO Results by the Numbers 6,664 Unique visitors to ShareSLO.com 10,434 Visits to ShareSLO.com 4,176 Total Facebook page fans 1,149,360 Friends of Facebook page fans 9,541,045 Total number of unique users on Facebook who have seen content related to ShareSLO 22,823,004 Number of interactions from Friends on Facebook with any content associated with ShareSLO 118,694,017 Number of impressions on Facebook seen of any content associated with ShareSLO Partnerships In 2012-13, this element of the marketing mix was expanded from solely focusing on partnerships for exclusive lodging in San Luis Obispo to include partners that could help strategically support and expand the marketing efforts of the TBID overall. The longest standing partnership came with Cal Poly Athletics in 2011-12, when the City entered into a three-year agreement to host all of Cal Poly’s conference visiting teams, recruits, and athletic guests. In 2012-13 the program continued, and 575 guests from eight different sports were lodged in San Luis Obispo not including visiting parents and other guests travelling with the teams. Besides the direct lodging component, the sponsorship benefits opened the Cal Poly Athletics newsletter and alumni list to the promotional efforts of the TBID in addition to exclusivity on hotel messaging at all the stadiums, programs, and promotional tools of Cal Poly Athletics. This partnership expanded to help support the ShareSLO campaign and to build awareness with students and Cal Poly fans to #shareslo. In 2012-13, the exclusive partnership with Nature Corps to secure lodging of all volunteer vacation participants in San Luis Obispo was developed. Since 1987 the Nature Corps has organized luxury volunteer vacations to help bridge the gap between dwindling resources and the growing need for preservation and rehabilitation of fragile wilderness ecosystems within the national and state parks. In San Luis Obispo County, the Corps offers two packages that benefit Morro Bay and PH1 - 16 12 TBID Annual Report 2012-13 Hearst Castle State Parks. Volunteer vacations have tremendously gained in popularity as people are not only looking to visit scenic places, but to give meaning to their travels. Volunteer vacations offer this experience as they mix meaningful restoration work in the country’s national and state parks with sightseeing and entertainment. Ideally, the packages were to bring Nature Corps participants to San Luis Obispo for stays Monday through Friday and were placed in the shoulder months in alignment with the TBID’s goals. This program gained large media endorsements including the New York Times, and twice in the LA Times however the packages failed to sell. As a result, the Nature Corps team has moved forward with Rosetta to realign their brand and website to better serve the guest in an effort to return results for the TBID in the future. In 2012-13 was a pilot year for a new program with the Chamber of Commerce to provide a telephone assistance and hotel availability program exclusively for the TBID hotels and guests. During the first six and a half months of this program, the Chamber was able to refer TBID properties 879 times – an average of 4 to 5 per day -- and made 100% contact with the TBID properties, either by phone or email, to gather availability information. Also launched this past year was a phone line tied to a specific and dedicated phone number that serves as a response tool to the TBID’s online advertising efforts and website presence- 1-877-SLO-TOWN. The phone number creates the option for a ‘real’ planning experience, namely connecting with someone to talk to and answer questions. The staff person only recommends TBID properties through that phone line. The telephone number, 1-877-SLO-TOWN, is a separate line that rings into the Chamber and is for TBID use only. During the first six and a half months of the program, 46 calls were received. The City of San Luis Obispo has contributed to the marketing efforts of the San Luis Obispo County VCB now Visit San Luis Obispo County for many years. Traditionally, this payment came out of the Community Promotions program overseen by the Promotional Coordinating Committee. Due to the changes within Community Promotions since the creation of the TBID, the Visit San Luis Obispo County funding shifted to the TBID because of the Visit San Luis Obispo County’s marketing efforts promote the County of San Luis Obispo as a tourist destination. In addition, since 2009-10 fiscal year, the TBID Board has covered the expense of all membership dues for San Luis Obispo lodging properties in order to create equal membership benefits for all San Luis Obispo hotels. The TBID Board leverages the partnership with Visit San Luis Obispo County 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 investment in Visit San Luis Obispo County is also encompasses group sales, film commission, countywide public relations, and countywide special events (like Restaurant Month, Wine Month, Savor the Central Coast). For more information on the programs, please review Visit SLO County’s annual report. PH1 - 17 13 TBID Annual Report 2012-13 Tradeshows In 2012-13, the TBID continued the participation in two consumer shows, the Los Angeles and the San Francisco Travel and Leisure Shows. Both shows were a great success with 28,000 people attending the Los Angeles show and 14,000 visiting San Francisco. In addition to the direct contact made at the booth to excite people about travelling to San Luis Obispo, staff promoted upcoming events, the ShareSLO campaign and blog, and distributed hotel and destination information. Between the two shows nearly 2,000 new subscribers to the newsletter were garnered. One exciting feature of the San Luis Obispo presence at the Los Angeles travel show was the SLO photo booth, where attendees could capture their photo in the photo booth and take home a souvenir of the show and a brand piece to remember San Luis Obispo. Events Promotion In 2012-13, the TBID invested in several high profile events and provided the seed money needed to establish them in San Luis Obispo. One of the stipulations for funding is exclusivity for San Luis Obispo lodging and the events are required to actively promote stays in TBID member hotels. SLO Marathon – April 7, 2013 The event was a huge success in its second year. Attendance grew by 30% to 4500 participants and over 10,000 spectators. In total 60% of the athletes were from out of the area with over 33 states represented and 6 countries. Based on the privately commissioned economic impact report, the local economic impact result was over $3 million a 37.5% increase over 2012. For the out of area athletes, the economic impact was nearly $1.2 million including lodging, meals, gas and local purchases and lodging accounted for nearly $500,000. Based on the survey, 85% of respondents said that they would come back to SLO for a vacation. Remnants of the Past Vintage Show – October 2012 & June 2013 The June show attracted 3300 attendees to San Luis Obispo of which 68% were from outside of the area. The show attracted 92 vendors who traveled to SLO as well. The show was also named one of the “Best Romantic Flea Markets in America”. PH1 - 18 14 TBID Annual Report 2012-13 SLO Wine’s Roll Out the Barrels – June 2013 This was the first year the TBID has partnered with SLO Wine Country Association. The purpose of the partnership was to establish lodging promotions with SLO Wine for San Luis Obispo hotels as well as provide SLO Wine the much needed funding to expand th e event advertising outside the area. Inn total the event attracted 1881 attendees and about 30% were from out of the area. The survey results show that attendees from outside the area attendee 3 events on average and stayed on average 3 nights in the area. Based on the Stay in SLO $20 discount ticket promotion, 112 ticket packages were sold. Based on the average nightly stay and rate, the ROI for the event was between $50,000-$60,000 for the TBID hotels collectively. Additional Events Promotion Support was given to the following organizations:  Concourse D’Elegance  GranFondo  Cal Poly Open House  Sunset SAVOR the Central Coast 2012-13 Data Comparison Transient Occupancy Tax (TOT) 2007 - 2013 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 PH1 - 19 15 TBID Annual Report 2012-13 TOT 2012-13 versus 2011-12 Occupancy 2011-12 and 2012-13 Average Daily Rate (ADR) 2011-12 versus 2012-13 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June 2011-12 2012-13 0 20 40 60 80 100 July September November January March May 2012-13 2011-12 0 50 100 150 July September November January March May 2012-13 2011-12 PH1 - 20 16 TBID Annual Report 2012-13 2012-13 Financial Statement Adopted Budget Amounts Time Frame Amount TBID Budget July 2012- June 2013 $ 992,000 Investment Earnings $5,000 2011-12 Carry-Over /Excess Revenue $123,158 Fund Balance $100,000 Total Budget Fiscal Year 2012-13 $1,120,158.00 Expenditure 2012-13 Rosetta Contract July 2012- June 2013 $597,000 SLO VCB incl. hotel membership July 2012- June 2013 $118,190 Chamber of Commerce July 2012- June 2013 $ 26,215 STR Report $4,000 Central Coast Tourism Council $660 CA State Visitors Guide $2,000 Events Promotion $125,950 Tradeshows/ Conferences $ 26,687 Partnerships – Cal Poly, Nature Corps $ 97,500 City Administration/ Tourism Manager $102,100 Total Expenditure $1,100,302 PH1 - 21 RESOLUTION NO. XXXX (2013 Series) RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING ITS INTENTION TO CONTINUE THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR 2013-14 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 this report was filed and approved by the City Council on October 1, 2013. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: a) The San Luis Obispo City Council proposes to continue the established Tourism Business Improvement District in the City of San Luis Obispo in accordance with City Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections 36500 et seq. (Parking and Business Improvement Law of 1989). b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer a PH1 - 22 marketing program that increases overnight hotel stays pursuant to the set goals. c) The assessment will be levied and allocated by the City of San Luis Obispo. d) The assessment is proposed to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. e) The assessment shall be based on two percent (2%) of gross room rent. f) New hotels shall not be exempt from immediate assessment. g) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36535 of the Streets and Highways Code, is to allow for comments on the District and proposed assessment, and is hereby set for 6 P.M., Tuesday, November 5, 2013, before the City Council of San Luis Obispo at the City Council Chambers at 990 Palm Street, San Luis Obispo, California. h) At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District, or the furnishing of specified types of improvements or activities will be heard. i) Any protest against the continuation of the City of San Luis Obispo Tourism Business Improvement District and the levying of the assessment, or any aspect thereof, may be made in writing. A protest may be withdrawn at any time before the conclusion of the public hearing. Any written protest shall contain a description of the business in which the person signing the protest is not shown on the official records of the City of San Luis Obispo as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the authorized representative of the business. Any protest as to the regularity or evidence of the proceedings shall be in writing and clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo, CA 93401. j) If, at the conclusion of the public hearing, there are of record, written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no further proceedings to continue the San Luis Obispo Tourism PH1 - 23 Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Improvement District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the San Luis Obispo Tourism Improvement District. BE IT THEREFORE RESOLVED, the City Clerk is instructed to provide notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36534, subpart (7) of the Streets and Highways Code, to wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City no less than seven days before the public hearing. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________, 2012. ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Sheryll Schroeder Interim City Clerk APPROVED AS TO FORM: J. Christine Dietrick _____________________________________ Christine Dietrick, City Attorney PH1 - 24 Tourism Business Improvement District Meeting Minutes Wednesday, September 11, 2013 10 am Hampton Inn CALL TO ORDER: Chair Clint Pearce PRESENT: Wilkins, Patel, Hutton, Walker, Patranella STAFF PRESENT: Molly Cano, Tourism Manager Chair Pearce: Call to Order at 10:03 am PUBLIC COMMENT Ermina Karim of the San Luis Obispo Chamber of Commerce introduced Lynne Biddinger to the committee. Lynne will be an interim team member at the Chamber through the end of the year working on the tourism programs, contracts with the City for promotions, and other specific projects. OATH OF OFFICE Commissioner Patranella was sworn in to serve on the TBID Board. CONSENT AGENDA ACTION: Moved by Hutton/Patel to approve the consent agenda. Motion carried 6:0 BUSINESS ITEMS 1. QUARTERLY REPORT BY CONTRACTOR Ryan Allshouse and Freya Wilkerson representatives from Rosetta presented the quarterly report on the ShareSLO program. Allshouse presented an overview of where the campaign has been since the creation including phase one: Build Awareness with the development and launch of the campaign, phase two: Be Everywhere to maintain a presence on multiple social channels and attended events, and phase three: Grow the Community to inspire and advocate to carry on sharing content. Some of the results achieved include a thriving social community, over 3 million impressions, strong connections with local businesses, events, and tourism organizations, and an active network of local passionate leaders (aka Street Team). After a very brief update on the role of the Ambassador, DRAFT PH1 - 25 Allshouse shared how the remaining program funds would be reallocated focusing on management, advertising, and street team allocations. Wilkerson then presented information on the Street Team participants including testimonials from the street team members. Allshouse then unveiled the new ShareSLO.com look and functionality. 2. TBID ANNUAL REPORT The Board reviewed the FY 2012-13 TBID annual report for recommendation to City Council on October 1, 2013. Pending the approval of the report by the City Council, the annual public hearing for the TBID will be scheduled for the November 5, 2013 City Council meeting. Commissioner Patel will present the report to the City Council with Molly Cano on October 1, 2013. The committee provided feedback on the report. Overall they were very enthusiastic about the information and the way it was presented. The committee asked staff to add the mention of increased length of stay for the goals section and to add a section about Visit San Luis Obispo County under partnerships. ACTION: Moved by Patel/Hutton to accept the 2012-13 TBID Annual Report for submission to City Council with the requested additions. Motion carried 6:0 3. EVENTS PROMOTION SUBCOMMITTEE The committee reviewed the draft event funding RFP that will be implemented in FY 2014-15. The RFP will be an annual process with the PCC however the TBID will accept applications throughout the year if funds are available for consideration. The committee commended the hard work of the subcommittee on creating the document. ACTION: Moved by Walker/Wilkins to accept the Events Promotion application as presented for use by the TBID. Motion carried 6:0 4. MARKETING CONTRACT RFP DISCUSSION The Board began the discussion of RFP process for the Marketing Services contract with the TBID and considered the formation of a taskforce to facilitate the process. Staff presented the expected timeline for the Board to follow in order to meet the deadlines of the RFP process. The Board discussed the importance of the all commissioners’ input in the review and selection of the contractors. The Board agreed to create a taskforce to develop the RFP document as the first phase but would like to revisit the next phase for the consideration of the full board. ACTION: Moved by Patel/Hutton to form a taskforce for the creation of the RFP document for the Board’s consideration. Motion carried 6:0 The following members formed the taskforce: Commissioners Patel, Hutton, Wilkins and constituent Michael Adams. 5. STRATEGIC PLANNING UPDATE The Board received a presentation from the taskforce on the draft strategic plan document from the retreat and taskforce work sessions. Chair Pearce presented the overview of the document including the mission and visions for the TBID. He then presented the strategic imperatives and the PH1 - 26 measurable to rate success for those goals. The Board shared that they were excited to see the report and the associated measurements. Public Comment: Ermina Karim from the SLO Chamber commended the Board on the inclusive work that was done to create the document and setting the course for the next few years. Mark Landon from the Nature Corps thanked the Board for including the partners in the process and expressed how impressive the draft plan looked overall. The final report will be presented for adoption at the October 9, 2013 TBID Board Meeting. Board and constituents are encouraged to thoroughly review the report in preparation for the meeting. COMMITTEE COMMUNICATION HOTELIER UPDATE No new hotel news to be discussed. The Board was encouraged to revisit their liaison list and make an effort to share the strategic plan document with their assigned properties. PCC UPDATE Molly Cano informed the TBID on the results of the PCC’s contract with Pierre Rademaker Design for the development of a Citywide Style Guide and Brand Standards Manual. Cano shared that after the recommendation for adoption by the PCC, Council reviewed it and accepted the direction as well. TOURISM PROGRAM UPDATE Molly Cano presented the Tourism Program update: Cano introduced Lee Johnson, the City’s new Economic Development Manager. Cano provided an update on SAVOR planning: Continuing the booth design and other components of our event integration. SAVOR Run packages – last day to register online is tomorrow 9/12 SAVOR sweepstakes – 160 entries Our SAVOR weekend getaway includes: - 3 night stay at your choice of one of our 39 destination hotels - two tickets to Sunset at Hearst Castle on Thursday - two 2-day M ain Event tickets for the festivities at Santa Margarita Ranch on Saturday and Sunday - two entries for the run event of your choice at the inaugural SAVOR Run on Sunday Cano is seeking volunteers for the booth by the end of the week Cano is preparing for the Visit California media event, September 24 in LA. The following day, Cano will be participating in the inaugural Visit California PR Summit. Staff provided an update on the Jazz Festival to the Board. Due to permitting issues, the dates have been moved to May 2014. Meeting adjourned at 11:48 am PH1 - 27 RESOLUTION NO. 10463 (2013 Series) RBSOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING ITS INTENTION TO CONTINUE THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMBNT FOR 2OI3-I4 WHERBAS, 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 \ryHEREAS, 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 selÊassessment improvement district in 2008; and \ryHEREAS, 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 efïect 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, this report was hled and approved by the City Council on October 7,2013 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: a) The San Luis Obispo City Council proposes to continue the established Tourism Business Improvement District in the City of San Luis Obispo in accordance with City Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections 36500 et seq. (Parking and Business Improvement Law of 1989). b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer a marketing program that increases overnight hotel stays pursuant to the set goals. c) The assessment will be levied and allocated by the City of San Luis Obispo d) The assessment is proposed to be levied on all "hotels", as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any R 10463 Attachment 2 -1 PH1 - 28 ResolutionNo. 10463 (2013 Series) Page 2 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. Ð New hotels shall not be exempt from immediate assessment. g) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36535 of the Streets and Highways Code, is to allow for comments on the District and proposed assessment, and is hereby set for 6 P.M., Tuesday, November 5,2013, before the City Council of San Luis Obispo at the City Council Chambers at 990 Palm Street, San Luis Obispo, California. h) At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District, or the furnishing of specified types of improvements or activities will be heard. i) Any protest against the continuation of the City of San Luis Obispo Tourism Business Improvement District and the levying of the assessment, or any aspect thereof, may be made in writing. A protest may be withdrawn at any time before the conclusion of the public hearing. Any written protest shall contain a description of the business in which the person signing the protest is not shown on the official records of the City of San Luis Obispo as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the authorized representative of the business. Any protest as to the regularity or evidence of the proceedings shall be in writing and clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo, CA 93401. j) If, at the conclusion of the public hearing, there are of record, written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no fuilher proceedings to continue the San Luis Obispo Tourism Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Improvement District shall not be undertaken again for aperiod of at least one (1) year from the date of the hnding. 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 RESOLVBD, 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, subparl (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 Attachment 2 -2 PH1 - 29 ResolutionNo. 10463 (2013 Series) Page 3 in a newspaper of general circulation in the City no less than seven days before the public hearing. Upon motion of Vice Mayor Smith, seconded by Council Member Christianson, and on the following roll call vote: AYES: Council Members Ashbaugh, Carpenter and Christianson, Vice Mayor Smith and Mayor Marx NOES: None ABSENT: None The foregoing resolution was adopted this I't day of October 2013 Marx ATTEST Sheryll Interim City Clerk AS RM Christine Dietrick City Attorney CMM Attachment 2 -3 PH1 - 30 RESOLUTION NO. _________________ (2013 Series) RESOLUTION OF THE CITY OF SAN LUIS OBISPO 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, 2013 WHEREAS, on October 1, 2013 the City Council adopted Resolution No. 10463 (2013 Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District in 2013-14; and WHEREAS, the City Council held a duly noticed Public Hearing on November 5, 2013 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: 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 PH1 - 31 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 _____________________, 2013 ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Anthony Mejia, City Clerk APPROVED AS TO FORM: _____________________________________ Christine Dietrick, City Attorney PH1 - 32 November 4,2013 City of San Luis Obispo Office of the City Clerk 990 Palm Street San Luis Obispo CA 93401 Re: Ordinance 1517, SAMATA MANAGEMENT, INC. are compelled would benefit in Council and do not approve of REC D NO\/ 0 4 2013 CTTY CI- Dear 'We are not Council. At stipulated would be legitimate repres The of 1n Sincerely, Robert Mueller Donnington Place 604 Henderson Avenue San Luis Obispo, CA 93401 ó04 Henderson Avenue, Suite 200.San Luls Obispo, California 93401 'PH. 805.597.5191 'tX. 805.597.5199 www.samatamanagement.com l{ËC Ë.f Ì /r.: ¡'\\t t*!^J NOv 0 4 2013trINN November 4,2013 st-0 CT TY e [.-F;'i,: AGENDA CORRESPONDENCE City of San Luis Obispo Office of the City Clerk 990 Palm Street San Luis Obispo CA 93401 Re: Ordinance I5I7, San Luis Obispo Tourism Business Improvement District Dear Council Members Our customers and our businesses are compelled to contribute funding for this committee. The expectation is that each constituent would benefit in fair measure. Vy'e regret that these standards have not been recognized by the Council and do not approve of any continued assessment. Vy'e are not represented on the TBID committee, the membership of which is determined by the Council. At the time this committee was established, our industry had given its endorsement but stipulated that any such committee membership would be determined by the constituents and would be representative of our industry's ownership. The Council has chosen to exclude legitimate representatives in an irresponsible manner that hurts our community. Sincerely, Pragna Patel Lexington Inn San Luis Obispo 2050 Garfield Street San Luis Obispo, CA9340l Lexington Inn - San Luis Obispo ' 2050 Gafield Street . San Luis Obispo, California 93401 Telephone (805) 549-9911 .Fax (805) 546-0734 . Reservations Only (800) 544-7250 www.lexingtoninn-sanluisobispo.com.Email: info@lexingtoninn-sanluisobispo.com Operated by Samata Management, Inc.