HomeMy WebLinkAbout10/18/2011, PH2 - ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT Council Agenda Report—Annual TBID Report
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have this 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 2011-12. Such a resolution is provided as Attachment 4.
FISCAL IMPACT
According to the City's Financial Plan, the TBID is estimated to raise $973,000 for tourism
marketing and promotion in fiscal year 2011-12. As previously mentioned, the use of the
assessment funds are described in the TBID Board's Annual Report (Attachment 2).
ATTACHMENTS
1. Ordinance No. 1517
2. TBID Board Annual Report
3. Resolution of Intention No. 10306 (2011 Series)
4. Resolution confirming the TBID and levying the assessment
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ATTACHMENT 1
ORDINANCE NO. 1517 (2008 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING THE SAN LUIS OBISPO CITY TOURISM BUSINESS
IMPROVEMENT DISTRICT (TBID),FIXING THE BOUNDARIES
THEREOF, PROVIDING FOR THE LEVY OF A BUSINESS
ASSESSMENT TO BE PAID BY HOTELS IN SUCH DISTRICT
WHEREAS, on April 15, 2008, the City of San Luis Obispo Council adopted Resolution
No. 9972 (2008 Series)entitled,"Resolution of the City of San Luis Obispo Declaring its
Intention to Establish the San Luis Obispo Tourism Business Improvement District(TBID),to
Establish the Basis for and to Levy the Assessment for the District and to Set Dates for the
Public Hearing on the District,and the Proposed Assessment"; and
WHEREAS,as specified in such Resolution,the boundaries of the district encompass the
City of San Luis Obispo,and there are no separate benefit zones within the district; and
WHEREAS,said Resolution was published and copies thereof were duly mailed and posted,
all as provided by state law and specified in the Resolution; and
WHEREAS,pursuant to that Resolution a public meeting concerning the formation of said
district was held before the City Council on May 20, 2008 at 7:00 p.m. in the City Council
Chambers at City hall; and
WHEREAS, also pursuant to Resolution a public hearing concerning the formation of said
district was held before the City Council on June 3, 2008 at 7 p.m.in the City Council Chambers
at City Hall; and
WHEREAS,all written and oral protests made or filed Were duly heard, and testimony for
and against the proposed action was received and considered; and
WHEREAS,the City Council determined that there was no majority protest within the
meaning of Streets and Highways Code Section 36525.,as written protests were not received
from owners of businesses in the proposed district which would pay fifty percent (50%) or more
of the assessments proposed to be levied; and
WHEREAS,protests are weighted based on the assessment proposed to be levied on each
hotel. For purposes of the initial formation of the district,the proposed assessment to be levied
was calculated based on the assessment rate multipliedby the most recent available data for the
hotels' rental revenues.
NOW, THEREFORE,BE IT ORDAINED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Pursuant to authority granted under the Parking and Business
Improvement Area Law of 1989,California Streets and Highways Code Sections 36500 et seq.,
01517
Di- 1) 2
�\ O
Ordinance No. 1517 (2008 Series)
ATTACHMENT 1
Page 2
the City of San Luis Obispo Tourism Business Improvement District(TBID)is hereby
established in the City of San Luis Obispo as herein set forth and all hotels in the district
established by this ordinance shall be subject to any amendments made hereafter to said law or to
other applicable laws.
SECTION 2. The City Council of the City of San Luis Obispo.finds.that hotels within
the San Luis Obispo Tourism Business Improvement District will be benefited by the
improvements and activities funded by assessments to be levied.
SECTION 3. Chapter 12.42_(Tourism Business Improvement District)is hereby added to
Title 12 (Streets, Sidewalks,and Public Places)of the San Luis Obispo.Municipal Code to read
as follows:
12.42.010.TITLE.This chapter shall be known as the"City of San Luis Obispo
Tourism Business Improvement District Law."
12.42.020.DEFINITIONS.
(1)"City Council" shall mearr the City of San Luis Obispo City Council.
(2)"City Advisory Body"shall mean the Advisory Body appointed by the City Council,
pursuant to this chapter.
(3)"District"shall mean the City of San Luis Obispo Tourism Business hnprovement District
(or"TBID")created by this chapter and as delineated in Section 12.42.040.
(4)"Hotel"shall mean 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,motel,bed and breakfast, or vacation home and pays Transient Occupancy
Tax. For purposes of this chapter the,definition of"hoteP' shall not include RV Parks.
(5)"Law"shall mean the Parking and Business Improvement.Area Law of 1989, California
Streets and Highways Code Sections 36500 et seq.,as amended.
(6)"Operator" shall mean the person who is the proprietor of the hotel, whether in the capacity
of owner,lessee,sublessee,mortgagee in possession,licensee or any other capacity. Where the
operator performs its functions through,a managing agent of any type or character other than an
employee,the managing agent shall also be deemed an operator for the purposes of this chapter
and shall have the same duties and liabilities as his principal. Compliance with the provisions of
this chapter by either the principal of the managing agent shall,however,be considered to be
compliance by both.
(7)"Transient"means any person who exercises occupancy or who is entitled to occupancy,by
reason of concession,permit,right of access,license, or other agreement for a period of thirty
(30) consecutive calendar days or less, counting portions of calendar days as full days.
12.42.030.AUTHORIZED USES.This ordinance is made and enacted pursuant
to the provisions of the Parking and Business Improvement Aim 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. It is the intent of this chapter
DII'f A
r"
Ordinance No. 1517 (2008 Series)
ATTACHMENT 1
Page 3
to provide a supplemental source of funding for the promotion of tourism in the district and it is
not intended to supplant any other existing sources of revenues which may be used by the City of
San Luis Obispo for the promotion of tourism. The specific services, activities and programs to
be provided by the district are as follows:
A. The general promotion of tourism within the district4s to include costs as
specified in the business plan to be adopted annually by the City Council.
B. The marketing of the district to the travel industry in order to benefit local
tourism and the local hotel industry in the district.
12.42.040. BOUNDARIES.The boundaries of the TBID shall be the boundaries
of the City of San Luis Obispo.
12.42.050.LEVY OF ASSESSMENT AND EXEMPTIONS. The TBID shall
include all hotels located within the TBID boundaries. The assessment shall be levied on all
hotels,existing and future,within the City of San Luis Obispo based upon two percent(2%)of
the paid gross rent charged by the operator per night for all transient occupancies. The
assessment shall be collected monthly,based on two percent(2%)of the gross rent charged by
the operator per night in revenues for the previous month. New hotels within the boundaries
shall not be exempt from the levy of assessment authorized by Section 36531 of the law.
Assessments pursuant to the.TBID shallnot be included in gioss room rental revenue for purpose
of determining the amount of the transient occupancy tax. The value of rooms for extended stays
of more than thirty(30)consecutive calendar days shall be exempt from the levy of assessment.
12.42.060.ANNUAL REVIEW OF ASSESSMENT. All of the assessments
imposed pursuant to this chapter shall be reviewed by the City Council annually,based upon the
annual report prepared by the Advisory Body appointed pursuant to this chapter and Sections
36530 and 36533 of the law. Atter approval of the annual report the City Council shall follow
the hearing process as outlined in Section 36534 of the law. 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(50%)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.
12.42.070. IMPOSITION OF ASSESSMENT. The City Council hereby levies
and imposes and orders the collection of an additional assessment to be imposed upon hotels in
the district described above,which shall be calculated pursuant to Section 12.42.050 above.
Such levy shall begin on August 1,2008.
12.42.080.USE OF REVENUE. The improvements and activities to be
provided by the TBID will be funded by the levy of the assessments. The revenue from the levy
of assessments within the TBID shall not be used to provide improvements or activities outside
the TBID or for any purpose other than the purposes specified in the resolution of intention. All
funds shall be expended consistent with the purposes of this act. Funds remaining at the end of
any TBID term may be used in subsequent year in which TBID assessments are levied as long as
they are used consistent with the requirements of this Section. The City Council shall consider
DA'f G
Ordinance No. 1517(2008 Seri) C ATTACHMENT 1
Page 4
recommendations made by the City Advisory Body created by Section 12.42.100 of this chapter
as to the use of assessment revenue.
12.42.090.DELINOUENCY. PENALTY,AND INTEREST. Any hotel that
fails to remit any assessment imposed by this ordinance within the time required shall pay a
penalty in accordance with the policies, regulations, and ordinances of the City of San Luis
Obispo. Any and all remedies available to the City of San Luis Obispo for non payment of
assessments or taxes shall be applicable in the event of non payment of an assessment under this
chapter.
12.42.100 ADVISORY BODY. An advisory body comprised of five(5)
members is hereby created to carry out the functions of an advisory board under Section 36530
of the law. Said advisory body shall be referred to as the Tourism Business Improvement
District Board or TBID Board. The members of the TBID Board shall be.appointed following
the City's recruitment guidelines for Advisory Bodies. All applicants and members must be
operators of hotels within the district, or employed by the operator of such a hotel. The length of
the term for each individual member of the TBID Board shall follow the guidelines of all City
Advisory Bodies and is limited to eight(8) subsequent years. Members of the TBID Board shall
serve at the pleasure of the City Council and maybe removed by the City Council at any time. If
a member no longer represent the lodging establishment for which he or she was selected to the
TBID Board,his or her seat will be vacated and a new member will be appointed. The TBID
Board shall review the implementation of this chapter, the implementation of programs and
activities funded through this chapter, and advise the City Council on the amount of the district's
assessments and on the services,programs, and activities to be funded by the Assessments, and
shall perform such other duties as required by the law, including preparing the Annual Report
required by Section 3.6533 of the law. The Annual Report shall be submitted to the City Council
no later than 90 days before the new budget year. The City Council shall ensure that the TBID
Board has timely access to all public information regarding collection, disbursement, and uses of
the funds collected under the terms of this ordinance
12.42.110 MODIFICATION OR DISESTABLISHMENT. The City
Council,by ordinance,may-modify the provisions of this chapter and may disestablish the
district or parts of the district, after adopting a resolution of intention to such effect. Such
resolution shall describe the proposed change or changes,or indicate that it is proposed to
disestablish the area, and shall state the time and place of'a hearing to be held by the City
Council to consider the proposed action. If the operators of hotels which pay fifty percent(50%)
or more of the assessments in the district file a petition with the Clerk of the City of San Luis
Obispo to adopt a resolution of intention to modify or disestablish the district,the City Council
shall adopt such resolution and act upon it as required by law. Signatures on such petition shall
be those of a duly authorized representative of the operators of hotels in the district. In the event
the resolution proposes to modify any of the provisions of this chapter, including changes in the
existing assessments or in the existing boundaries of the district, such proceedings shall
terminate if protest is made by the operators of hotels which pay fifty percent(50%)or more of
the assessments in the district,or in the district as it is proposed to be enlarged.
UTQ9_�
Ordinance No. 1517(2008 Series) ATTACHMENT 1
Page 5
in the event the resolution proposes disestablishment of the district,the City Council shall
disestablish the district;unless at such hearing,protest against disestablishment is made by the
operators of hotels paying fifty percent(50%)or more of the assessments in the district.
SECTION 4. if any section, subsection, sentence, clause or phrase of this ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance.
The City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more of
the sections, subsections, sentences, clauses or phrases hereof be declared invalid or
unconstitutional.
SECTION 5. A summary of this ordinance,together with the names of Council
members voting for and against it, shall be published at least five(5) days prior to its final
adoption, in The Tribune, a newspaper published and circulated in the City of San Luis Obispo.
This ordinance shall go into effect at the expiration of thirty(30) days after its final adoption.
INTRODUCED on the P day of June 2008, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 17`s day of June 2008, on the following roll call
vote:
AYES: Council Members Carter, Mulholland and Settle,Vice Mayor Brown and
Mayor Romero
NOES: None
ABSENT: None
Mayor David F. Romero
ATTEST:
idrey H er
City Cl
APPROVED AS TO FORM:
konathanyLowell
Ciorney
MU2_7
L" ATTACHMENT
2
sG.�r�i iu s oBlspo
TOURISM BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT
FROM: TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD
MEMBERS: Tim Billing, Chair John Conner, Vice-Chair
Dean Hutton Clint Pearce
Joel Koper Nipool Patel
Susan Norris
Prepared By: Brigitte Elke, Principal Administrative Analyst
SUBJECT: TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD ANNUAL
REPORT
DISCUSSION
The City of San Luis Obispo Tourism Business Improvement District
In June 2008 the City Council adopted Ordinance 1517 establishing the tourism business improvement
district (TBID) in the City of San Luis Obispo as requested by the local lodging industry. The
assessment of two percent of gross receipts for the district became effective on October 1, 2008 and the
use of funds was defined in Section 12.42.030 of the Municipal Code as follow:
"This ordinance is made and enacted pursuant to the provisions of the Parking and Business
Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways
Code). The purpose of forming the district as a business improvement area under the Parking and
Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities
and programs promoting tourism which will benefit the operators of hotels in the district through the
promotion of scenic, recreational, cultural and other attractions in the district as a tourist
destination. "
The City subsequently established a special fund for the district through which the assessment funds
are administered.
Advisory Body
The use of the assessment fund is based on the recommendation of the Tourism Business Improvement
District advisory board that is staffed by City of San Luis Obispo hotel owners and/or general
managers. The members serve for an initial four-year term with the opportunity for a second term.
PH2-8
Tourism Business Improvement District a....ua]Report C ATTACHMENT 2
2010-11 Advisory Board
Name Property Term
Tim Billing- Vice-Chair Embassy Suites 3/31/2013
John Conner- Vice-Chair Petit Soleil 3/31/2013
Dean Hutton Apple Farm 3/31/2013
Clint Pearce Madonna Inn 3/31/2015
Joel Koper Holiday Inn 3/31/2015
Susan Norris Sands Inn & Suites 3/31/2012
Nipool Patel Comfort Inn 3/31/2012
In addition to the governing City ordinance, the TBID Board established its advisory body bylaws and
further defined its role and functions as:
The functions and duties of the TBID BOARD shall include, but not be limited to, the following:
A. Planning a comprehensive program to promote tourism to the City of San Luis Obispo and prepare
an annual marketing program consistent with industry goals and objectives.
B. Develop advertising and promotional programs and projects to benefit the lodging industry in San
Luis Obispo.
C. Present an annual assessment report to the City Council regarding the implemented promotional
programs and projects.
D. Perform any other lawful tasks as directed by the Council.
The board meets monthly on the second Wednesday at 2:00 pm for its regular board meeting. In 2010-
11, the board met in 12 regular monthly meetings, a board retreat, and three special meetings for
business related to events promotion and the 2011-12 budget. Additionally, it appointed a budget task
force, a tradeshow task force, and appointed three of its members to serve on the events promotion
subcommittee with three members of the Promotional Coordinating Committee. In order to keep the
lodging constituency abreast of all TBID business, the board assigned liaisons and each board member
is responsible for communication with his/her respective group of hotels. Additionally, the board chair
and staff embark on hotel visits at least once a year to personally bring TBID updates and marketing
material to each property.
2010-11 Work program
Level Studios
During fiscal year 2010-11, the TBID continued its marketing efforts with Level Studios and its triple
award winning lodging website www.sanluisobispovacations.com.
The 2010-11 marketing campaign transitioned from broad brand awareness to targeting experience
specific interests and messages. Additionally, Level Studios continued to deepen the user experience
on the website, using current traveler research and site analytics aggregated from the previous year.
Some improvements included adding 18 interest categories such as vacation ideas for families,
couples, and girlfriends, pet-friendly, deals & packages, honeymoons and weddings, and low cost
getaways. A press room section was built that features the newly produced video, press releases, an
PH2-9
ATTACHMENT 2
Tourism Business Improvement District i,...ual Report
image gallery, and brand guidelines to provide greater access to visiting press and bloggers with assets
and inspiration to write about the City.
The executed media plan utilized the following strategies:
- continued emphasis on targeting the TBID's message to the most searched for travel terms;
- utilize digital advertising to build continued exposure with a seasonal emphasis;
- utilize social and event content to build media message;
The following media mix was applied in pursuit of the above mentioned strategy:
- Print publications including consumer magazines and trade publications such as Skywest, Via
Discover, Westways, LA Family Magazine, etc.
- Online banner ads that appear on travel portals and in line with travel articles
- Search Engine Optimization (SEO) and Pay-per-click Search Engine Marketing
- Social Media Advertising on Facebook and the introduction of You Tube
- Public Relations, including interest, seasonal and event releases, press trip coordination and
hotelier outreach
By May 2011, the campaign, which remains highly targeted to California travelers, had seen:
➢ 130 million impressions
➢ 560,000 email messages
➢ 28;500 visits to the San Luis Obispo TripAdvisor page
Which resulted in:
3.5 times more visitors to the website (for only 9.5%more media spend)
32% more San Luis Obispo related searches
➢ 6,600 new email subscribers
➢ 21,800 unique monthly site visits
20,050 clicks to hotel sites
➢ 10,700 mobile visitors
In addition to these efforts, the TBID commissioned several campaigns to increase the reach for its
brand and tourism message. Those efforts were:
Funding allocation to the San Luis Obispo Visitors and Conference Bureau (VCB) in order to
participate in the effort to build awareness for San Luis Obispo County. The TBID board also
recommended payment of individual VCB membership fees in order to provide a direct benefit
to the properties paying the assessment fee.
Central Coast Tourism Council membership including a San Luis Obispo ad in the
organization's tourism guide.
Continuation of the STR report for occupancy comparison between various counties and an
additional report comparing San Luis Obispo occupancy to Pismo Beach and Paso Robles.
Funding for a hotel board and 24/7 outdoor kiosk at the Visitors Center and a hotel concierge
training program "MySLO"through the Chamber of Commerce.
Events Promotion
One of the goals of the Tourism Business Improvement District for 2010-11 was to seek events that
bring people to San Luis Obispo. Events that cater to the shoulder seasons were of special interest. In
order to address funding requests, the TBID board appointed three of its members to serve on the joint-
events promotion subcommittee together with three members of the Promotional Coordinating
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Tourism Business Improvement District A,�dal Report
ATTACHMENT 2
Committee. Through this collaboration, the TBID took the lead in investing in the following major
events:
Sunset "Savor The Central Coast"
This event highlighted San Luis Obispo through the Mission Plaza Dinner and allowed for a tourism
booth at the main event in Santa Margarita. The TBID took this opportunity to produce a tradeshow
booth that could be used for future opportunities.
Straight Down Golf Tournament
This collaboration was used to develop golf content on the website and a new golf brochure
highlighting the courses around San Luis Obispo.
SLO International Film Festival
The TBID board gave support to the Film Festival as one of the premier San Luis Obispo spring event.
The TBID's agency redesigned the website, produced the Festival brochure, and executed a media buy
driving traffic to the Festival.
SLO Marathon
The inaugural San Luis Obispo Marathon is scheduled for April 2012. As one of the fastest growing
sports, marathon running attracts thousands of people to destinations. To have a major sporting event
in San Luis Obispo was one of the TBID's events promotion goals.
Cal Poly Athletics
Through this partnership, the San Luis Obispo hotels are now the exclusive lodging showcased in all
Cal Poly Athletic venues. The marketing efforts through this partnership open the Cal Poly Athletics
newsletters and email, lists which includes the Alumni, to the San Luis Obispo tourism message.
San Luis Obispo GranFondo
The inaugural 2010 GranFondo attracted 675 bicycle riders to San Luis Obispo, 70% of which came
from out of town. The second GranFondo is scheduled for October 15, 2011.
2011-12 Workprogram
For the 2011-12 fiscal year, the TBID will continue its efforts through Level Studios whose contract
expires in June 2012. In addition to the approved media campaign, the agency will continue the feature
and content updates on the website and develop an itinerary builder for use online and on mobile
applications.
The TBID board recommended continuing its contracts with the San Luis Obispo Visitors and
Conference Bureau for integration of San Luis Obispo in the countywide marketing efforts. The
programs commissioned through the Chamber of Commerce will also continue through fiscal year
2011-12. The concierge program will be refined and offer classes at various hotels for hotel front desk
specific training.
The promotion of large events continues to be a priority for the TBID and the board already
recommended support of the nationally recognized vintage show "Remnants of the Past" at the
Madonna Expo Center on October 8-9, 2011. Additionally, the board is looking to continue its
partnership with the International Film Festival and is actively seeking an event for early September.
The weekend after Labor Day is traditionally very slow and an attractive event could help increase
PH2-11
Tourism Business Improvement District r..,,ival Report U
ATTACHMENT 2
occupancy for this weekend. The partnership with Cal Poly Athletics is a three-year commitment
through June 2014.
In addition to the tourism marketing efforts and events promotion, the board is looking into increasing
San Luis Obispo's presence at industry tradeshows. The board is currently looking at the following
four tradeshows:
- International PowWow 2012 in Los Angeles
- Los Angeles and Bay Area Travel & Adventure Shows
- 2012 World AG Expo
- RCMA (Religious Conference Manager Association) for group business
Proposed Assessment for 2011-12
The TBID Board does not recommend any changes in the levy of the assessment. The assessment is
recommended to continue at 2% of gross receipts to be submitted monthly to the City of San Luis
Obispo together with the Transient Occupancy Tax.
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Tourism Business Improvement District Annual Report ATTACN E9 n
Financial Statement 2010-11
Income Time Frame Amount
TBID Assessment July 2010- June 2011 $ 967,215.00*
Investment Earnings $ 8,135.00
Starting Balance $ 616,000.00
Total Income Fiscal Year 2010-11 $ 19591 350.00
Expenditure 2010-11
Level Studios Contract July 2010—June 2011 $ 750,000.00
Level Studios Carry-Over From 2009-10 $ 106,000.00
PR Contract July 2010—June 2011 $ 45,000.00
SLO VCB incl. hotel membership July 2010—June 2011 $ 95,000.00
SLO VCB Coo $ 27,400.00
Chamber of Commerce July 2010—June 2011 $ 53,600.00
STR Report $ 4,000.00
Central Coast Tourism Council $ 7,800.00
SLO Intern. Film Festival $ 35,000.00
Straight Down Golf Tournament $ 22,500.00
GranFondo Bicycle Event $ 20,000.00
Sunset Savor the Central Coast $ 64,000.00
SLO Marathon $ 35,000.00
Cal Poly Athletics $ 25,000.00
PBS Travelsco e $ 39750.00
Future of Work Conference $ 10,000.00
International Pow Wow Tradeshow in San Francisco $ 20,000.00
Various event support, TBID PBS Travelscope, SLO $ 23,000.00
Retreat, and marketing material. Symphony, Hop Fest,
Salmonid Conference, Cal
Poly en House
City Administration 4% of actual assessment $ 32,000.00*
Expenditure $193799050.00
Agency Carry Over Unused 2010-11 budget $ 28,000.00
Total Expenditure $193519050.00
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Tourism Business Improvement District A—,ial Report �
ATTACHMENT 2
Preliminary Financial Statement 2011-12
2011-12 Anticipated Income
Anticipated Carryover 2011-12 $ 240,300.00*
Budget Estimate Financial Plan 2011-13 $ 973,000.00
Total Estimated Budget 2011-12 $1 213,300.00
Expenditure 2011-12 Committed
Agency Contract incl. PR July 2011 —June 2012 $ 800,000.00
SLO Chamber of Commerce July 2011 —June 2012 $ 39,500.00
SLO VCB ind hotel membership July 2011 —June 2012 $ 119,000.00
Central Coast Tourism Council $ 8,000.00
Smith Travel Research $ 4,000.00
Remnants of the Past Vintage $ 25,000.00
Show
SLO Intem. Film Festival $ 20;000.00
Cal Poly Athletics $ 52,500.00
Administrative Cost Estimate/4% of assessment $ 38,000.00
Total Expenditure Committed in 2011-12 $191069000.00
'These numbers are based on current estimates.The actual amounts will be based on the City's audited budget numbers.The
administrative cost to the City is 4%of actual revenue and will therefore be adjusted accordingly.
PH2-14
ATTR
CHMENT3
RESOLUTION NO. 10306 (2011 Series)
RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING ITS
INTENTION TO CONTINUE THE SAN LUIS OBISPO TOURISM BUSINESS
IMPROVEMENT DISTRICT,TO CONTINUE THE BASIS FOR AND TO LEVY
THE ASSESSMENT FOR THE DISTRICT,AND TO SET DATES FOR THE
PUBLIC HEARINGS ON THE DISTRICT AND THE ASSESSMENT FOR 2011-12
WHEREAS the Parking and Business Improvement Law of 1989, sections 36500
et seq. of the Streets and Highways Code, authorizes cities to establish business
improvement districts for several purposes, one of which is promotion of tourism; and
WHEREAS the lodging businesses within the proposed City of San Luis Obispo
Tourism Business Improvement District had requested the City of San Luis Obispo
establish such a self-assessment improvement district in 2008; and
WHEREAS the San Luis Obispo Tourism Business Improvement District was
established in July 2008 and incorporated into the Municipal Code under Chapter 12.42;
and
WHEREAS the City Council appointed an advisory board to provide oversight,
guidance, and recommendations regarding the use of the assessment funds; and
WHEREAS the City Municipal Code and the Parking and Business Improvement
Law require the advisory board to prepare and submit an annual report stating proposed
changes, improvements and activities for the fiscal year; and
WHEREAS this report was filed and approved by the City Council on October 4,
2011.
NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of
San Luis Obispo as follows:
a) The San Luis Obispo City Council proposes to continue the established
Tourism Business Improvement District in the City of San Luis Obispo in
accordance with City Municipal Code Chapter 12.42 and the California Streets
and Highways Code, sections 36500 et seq. (Parking and Business
Improvement Law of 1989).
b) The assessment levied by the Tourism Business Improvement District shall be
used to promote lodging at the hotels within the district and administer
marketing programs that increase overnight lodging.
c) The assessment will be levied and allocated by the City of San Luis Obispo.
PH2-15
Ll 10 ATTACHMENT 3
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 assessment.
g) The public hearing, held pursuant to the City Municipal Code Chapter 12.42
and the Parking and Business Improvement Law of 1989, section 36535 of the
Streets and Highways Code, is to allow for comments on the District and
proposed assessment, and is hereby set for 7 P.M., Tuesday, October 18, 2011,
before the City Council of San Luis Obispo at the City Council Chambers at
990 Palm Street, San Luis Obispo, California.
h) At the public hearing, the testimony of all interested persons for or against the
continuation of the District, the boundaries of the District,or the furnishing of
specified types of improvements or activities will be heard.
i) Any protest against the continuation of the City of San Luis Obispo Tourism
Business Improvement District and the levying of the assessment, or any aspect
thereof, may be made in writing. A protest may be withdrawn at any time
before the conclusion of the public hearing. Any written protest shall contain a
description of the business in which the person signing the protest is not shown
on the official records of the City of San Luis Obispo as the owner of the
business, then the protest shall contain or be accompanied by written evidence
that the person is the owner of the authorized representative of the business.
Any protest as to the regularity or evidence of the proceedings shall be in
writing and clearly state the irregularity or defect to the City of San Luis
Obispo at 990 Palm Street, San Luis Obispo, CA 93401.
j) If, at the conclusion of the public hearing, there are of record, written protests
by the owners of businesses within the proposed San Luis Obispo Tourism
Business Improvement District that will pay fifty percent (50%) or more of the
total assessments of the entire San Luis Obispo Tourism Business Improvement
District, no further proceedings to continue the San Luis Obispo Tourism
Business Improvement District shall occur. New proceedings to form the San
Luis Obispo Tourism Business Improvement District shall not be undertaken
again for a period of at least one(1) year from the date of the finding. If the
majority of written protests are only as to an improvement or activity proposed,
PR2-16
ATTACHMENT 3
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 , 2011.
Mayor Jan Marx
ATTEST:
Elaina Cano, City Clerk
APPRO D AS TO FO
Stine Dietrick, City Attorney
PH2-17
ATTACHMENT 4
RESOLUTION NO. (2011 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 4, 2011
WHEREAS, on October 4, 2011 the City Council adopted Resolution No. 10306 (2011
Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District
in 2011-12; and
WHEREAS, the City Council held a duly noticed Public Hearing on October 18, 2011 to allow
for protests, as contemplated by Streets and Highway Code Section 36524; and
WHEREAS, sufficient written or oral protest were 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
Highways Code, section 36500 et seq. (Parking and Business Improvement Law of 1989) is
affirmed.
PH2-18
ATTACHMENT 4
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 assessment.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of , 2011
Mayor Jan Marx
ATTEST:
Elaina Cano, City Clerk
APPRO S TO FO
Stine Dietrick, City tto
PH2-19
3
'11111111111111111ill11111iiiiiiiijIlIlII
council memoizanbum
city oF_san Luis_osisPo, aOmirnstRation 0epaRtment
DATE: October 18, 2011
TO: City Council RED FILE
VIA: Katie Lichtig, City Manage _- MEETING AGENDA
FROM: Michael Codron, Assistant City Lager -
Prepared by: Brigitte Elke, Principal Administrative Analyst DATEI�ITEM # PH ;_
SUBJECT: Public Hearing 2- October 18, 2011
Annual Public Hearing for the Tourism Business Improvement District
In response to a request by Council Member Ashbaugh, please find below the Transient Occupancy
Tax information for fiscal year 2010-11. We have also added the original revenue assumption and the
mid-year adjustment.
Transient Occupancy Receipts by Month
Month 2009-10 2010-11 Increase in$ Increase in%
July $ 508,195 $ 541,806 $ 33,610 6.6%
August $ 511,564 _ $ 542,194 $ 30,630 6.0%
September $ 400,023 $ 437,543 $ 37,520 9.4%
October $ 414,870 $ 442,586 $ 27,716 6.7%
November $ 280,913 $ 330,924 $ 50,010 17.8%
December $ 246,684 $ 274,417 $27,733 11.2%
January $ 230,279 $ 256,351 $ 26,072 11.3%
February $ 273,373 $ 362,246 $ 28,873 10.6%
March $ 326,099 $ 333,783 $ 7,684 2.4%
April $ 423,158 $ 451,133 $ 27,975 6.6%
May $ 373,997 $ 433,874 $ 60,877 16.3%
June $ 490,326 $ 512,542 $22,216 1 4.5%
Year total $4,478,482 $4,859,398* $380,916 1 8.5%
'Gross Receipts(does not account for credit card fees and other relevant fees to TOT collection.
Original TOT Revenue Assumption for 2010-11 based on 2% growth: $4,295,800
Mid-Year Revision to: $4,770,000 hard C0 ° ffkMs0'
o COUNCIL a CDD DIM,
Audited TOT Revenue 10/11: $4,844,200 a CITY MGR a FIT UM
a ASST CM a FIRE CHIEF
a ATTORNEY a PW DIR
Increase over original: 12.77% aCL 0R1G o POLICEPARKSCHIEF
C DM
Increase over mid-year: 1.56% a TRIBUNE a UTILDIR
a NEW TBIES a HR Diff
o SLOCITY NEM aCOUNCIL
a CITY MGR
Growth Assumptions for 2011-13: 4% 6 cLEsic
G:UraffLFl"ed FilesQ0lI TBID Public Hewing-TOT Re nues.dcc