HomeMy WebLinkAbout10-01-2019 Item 10 - 2018-19 Annual TBID Report
Department Name: Administration and IT
Cost Center: 208-1006
For Agenda of: October 1, 2019
Placement: Business Item
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Molly Cano, Tourism Manager
SUBJECT: 2018-19 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT
DISTRICT
RECOMMENDATION
1. As recommended by the Tourism Business Improvement District (TBID) Board, receive and
approve the TBID Board’s annual report for FY 2018-19; and
2. Adopt a resolution of intention to levy and collect assessments within the TBID area in fiscal
year 2019-20 at the same rate as in fiscal year 2018-19 (Attachment A).
DISCUSSION
Background
In June 2008, the Council adopted Ordinance No. 1517 establishing a tourism business
improvement district as requested by the local lodging industry. The district was formed under
the State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets
and Highways Code and codified into the City’s Municipal Code under Chapter 12.42.
Pursuant to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s
Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an
annual report (Attachment B) that outlines the past year’s efforts and how the funding was used
and to what effect.
Section 36534 further requires that after the approval of the annual report, the Council shall
adopt a resolution of intention 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 TBID as required by the applicable statute.
Annual Report
On September 11, 2019, the TBID Board met in a regular monthly meeting to finalize the 2018-
19 annual report for recommendation to the Council. Public noticing for the TBID Advisory
Board meeting was performed through the posting of the agenda on the City’s website and in the
kiosk in front of City Hall by 5:00 pm on September 6, 2019. For convenience, the agenda was
also distributed to TBID constituents and stakeholders via email. The annual report reiterates the
use of the TBID funds within the defined marketing platform that guides the strategy used to
deliver on the TBID’s objective and goals. The annual report’s contents include:
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1. TBID Background and Advisory Body
2. 2018-19 Year by the Numbers
3. Strategic Plan Implementation and Program Approach
4. 2018-19 Summary of Activities
5. 2018-19 Financial Statement
6. Looking Ahead to 2019-20
7. Charts and Graphs showing various results
Next Steps
Should the City Council approve the annual report and adopt the resolution of intention, a public
hearing will be noticed for November 5, 2019. 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 for
at least one year.
Noticing Schedule
Legal notices regarding the Council’s review and approval of the TBID annual report were sent
to TBID properties on Friday, September 20, 2019. For convenience, the link to the agenda was
also distributed to TBID constituents and stakeholders via email.
Advisory Body Action
On September 11, 2019 the TBID Board approved the 2018-19 annual report for submission to
Council and recommended the continuation of the TBID for fiscal year 2019-20. (Attachment C)
Policy Context
As referenced in the City’s Municipal Code, 12.42.060 and Sections 36530 and 36533of the
State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to
submit an annual report that outlines the past year’s efforts and how the funding was used and to
what effect.
Public Engagement
This item is on the agenda for the October 1, 2019 Council meeting and will follow all required
postings and notifications. The public may have an opportunity to comment on this item at or
before the meeting.
All Advisory Body Meetings for the TBID were noticed in accordance with Brown Act
standards.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2018-19
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: TBID Fund
Total
The current unaudited year-end TBID Assessment Revenue for 2018-19 is $1,608,738.45 which
is approximately $33,738 more than the budgeted amount. In 2019-20, the TBID projected
revenue is $1,606,600 and is budgeted for program costs including staffing. Additionally, the
City will retain approximately $32,132 of the assessment revenue- roughly 2% of 2019-20 TBID
Assessment Revenue - to cover the City’s administrative costs associated with collecting and
disbursing the assessment.
ALTERNATIVES
The Council may choose to not approve the report or levy the assessment. This action is not
recommended as the advisory body has fully reviewed the report and recommended the approval
to Council in order to move forward with the Public Hearing for the TBID.
Attachments:
a - Draft Resolution of Intention
b - READING FILE - 2018-19 TBID Annual Report
c - TBID Draft Minutes of September 11, 2019
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RESOLUTION NO. __________ (2019 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DECLARING ITS INTENTION TO CONTINUE
THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT
DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE
ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE
PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR
2019-20
WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq.
of the Streets and Highways Code, authorizes cities to establish business improvement districts for
several purposes, one of which is promotion of tourism; and
WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism
Business Improvement District had requested the City of San Luis Obispo establish such a self-
assessment improvement district in 2008; and
WHEREAS, the San Luis Obispo Tourism Business Improvement District was established
in July 2008 and incorporated into the Municipal Code under Chapter 12.42; and
WHEREAS, the assessment went into effect on October 1, 2008; and
WHEREAS, the City Council appointed an advisory board to provide oversight, guidance,
and recommendations regarding the use of the assessment funds; and
WHEREAS, the City Municipal Code and the Parking and Business Improvement Law
require the advisory board to prepare and submit an annual report stating proposed changes,
improvements and activities for the fiscal year; and
WHEREAS, an annual report was prepared pursuant to Section 36533 of the Streets and
Highway Code; and
WHEREAS, notices regarding the approval of the annual report were sent on September
20, 2019 to all assessed properties.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
a) That the Tourism Business Improvement District Annual Report for fiscal year 2018-
19 as filed by the advisory body is hereby approved.
b) The San Luis Obispo City Council proposes to continue the established Tourism
Business Improvement District in the City of San Luis Obispo in accordance with City
Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections
36500 et seq. (Parking and Business Improvement Law of 1989).
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Resolution No. _____ (2019 Series) Page 2
R ______
c) The assessment levied by the Tourism Business Improvement District shall be used to
promote lodging at the hotels within the district and administer a marketing program
that increases overnight hotel stays pursuant to the set goals.
d) The assessment will be levied and allocated by the City of San Luis Obispo.
e) The assessment is proposed to be levied on all “hotels”, as that term is defined in San
Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of
any structure, which is occupied or intended or designed for occupancy by transients
for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or
house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment
house, dormitory, public or private club, mobile home or house trailer at a fixed
location, or other similar structure or portion thereof.
f) The assessment shall be based on two percent (2%) of gross room rent.
g) New hotels shall not be exempt from immediate assessment.
h) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the
Parking and Business Improvement Law of 1989, section 36535 of the Streets and
Highways Code, is to allow for comments on the Tourism Business Improvement
District and proposed assessment, and is hereby set for 6 P.M., Tuesday, October 16,
2018, before the City Council of San Luis Obispo at the City Council Chambers at 990
Palm Street, San Luis Obispo, California.
i) At the public hearing, the testimony of all interested persons for or against the
continuation of the Tourism Business Improvement District, the boundaries of the
Tourism Business Improvement District, or the furnishing of specified types of
improvements or activities will be heard.
j) Any protest against the continuation of the Tourism Business Improvement District and
the levying of the assessment, or any aspect thereof, may be made in writing. Any
written protest shall contain a description of the business in which the person signing
the protest is not shown on the official records of the City of San Luis Obispo as the
owner of the business, then the protest shall contain or be accompanied by written
evidence that the person is the owner of the authorized representative of the business.
Any protest as to the regularity or evidence of the proceedings shall be in writing and
clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street,
San Luis Obispo, CA 93401. A protest may be withdrawn at any time before the
conclusion of the public hearing.
k) If, at the conclusion of the public hearing, there are of record, written protests by the
owners of businesses within the proposed Tourism Business Improvement District that
will pay fifty percent (50%) or more of the total assessments of the entire Tourism
Business Improvement District, no further proceedings to continue the Tourism
Business Improvement District shall occur. New proceedings to form the Tourism
Business Improvement District shall not be undertaken again for a period of at least
one (1) year from the date of the finding. If the majority of written protests are only as
to an improvement or activity proposed, then that type of improvement or activity shall
not be included in the Tourism Improvement District.
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Resolution No. _____ (2019 Series) Page 3
R ______
BE IT FURTHER THEREFORE RESOLVED, the City Clerk is instructed to provide
notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business
Improvement Law of 1989, section 36534, subpart (a)(7) of the Streets and Highways Code, to
wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to
be published once in a newspaper of general circulation in the City no less than seven days before
the public hearing.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Teresa Purrington
City Clerk
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DRAFT Minutes – Tourism Business Improvement District Board Meeting of 9/11/19 Pg. 1
Minutes - DRAFT
TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD
Wednesday, September 11, 2019
Regular Meeting of the Tourism Business Improvement District Board
CALL TO ORDER
The regular meeting of the San Luis Obispo Tourism Business Improvement District Board was called to
order on Wednesday, September 11, 2019 at 10:01 a.m. in in City Hall, located at 990 Palm Street, San
Luis Obispo, California, by Chair Bruce Skidmore.
ROLL CALL
Present: Chair Bruce Skidmore and Board Members Nipool Patel, Dean Hutton, LeBren Young-
Harris, Pragna Patel-Mueller, and John Conner
Absent: Pragna Patel-Mueller and Kristin Battaglia,
Staff: Tourism Manager Molly Cano and Tourism Coordinator Chantal Burns
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Madison Quiring, Communications Manager of Visit SLO CAL.
--End of Public Comment--
OATH OF OFFICE
Board Member John Conner was sworn in by City Clerk, Teresa Purrington.
CONSENT ITEMS
C.1 Minutes of Meeting on August 14, 2019
C.2 Smith Travel Report
C.3 SLO Chamber Public Relations Activities Report
C.4 AMF + Matchfire Marketing Services Report
C.5 SLO Chamber Guest Services Report
C.6 Transient Occupancy Tax (TOT) Report
C.7 Q1 SLO Happenings Event Promotion Sponsorship Allocations
Public Comment
None.
--End of Public Comment--
ACTION: MOTION BY COMMITTEE MEMBER HARRIS, SECONDED BY COMMITTEE
MEMBER CONNER, CARRIED 5-0-2, TO APPROVE THE CONSENT AGENDA ITEMS 1 THRU 6.
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DRAFT Minutes – Tourism Business Improvement District Board Meeting of 9/11/19 Pg. 2
ACTION: MOTION BY COMMITTEE MEMBER PATEL, SECONDED BY COMMITTEE MEMBER
HUTTON, CARRIED 4-0-3 (HARRIS RECUSED), TO APPROVE THE CONSENT AGENDA ITEM 6.
BUSINESS ITEMS
1. 2019-20 STRATEGIC COMMUNICATIONS PLAN
As recommended by the Marketing Committee, Jacqui Clark-Charlesworth the SLO Chamber’s PR
representative, presented the 2019-20 Public Relations Strategic Communications Plan for the
Board’s review and approval.
Public Comments:
None.
---End of Public Comments---
ACTION: MOTION BY BOARD MEMBER HUTTON, SECOND BY BOARD MEMBER
CONER, CARRIED 5-0-2, to approve the presented 2019-20 Strategic Communications Plan.
2. 2018-19 TBID ANNUAL REPORT
The Board viewed the FY 2018-19 TBID sizzle reel to accompany the reviewed annual report for
recommendation to City Council on October 1, 2019 and provided feedback. Feedback included
extending the data driven slides times within the sizzle reel is possible. Agency representatives
addressed questions and will work with staff in updating the sizzle reel slides.
Public Comments:
None.
---End of Public Comments---
ACTION: MOTION BY BOARD MEMBER PATEL, SECOND BY BOARD MEMBER HUTTON,
CARRIED 5-0-2, approved the presented 2018-19 FY Annual Report and sizzle real with discussed
time edits to be recommended to City Council at the October 1, 2019 meeting.
3. VISITSLO.COM WEBSITE
As recommended by the Marketing Committee, Brittany Garcia of Matchfire presented the website
redesign and new functionality for the Board’s review and approval. Staff will discuss the plan for
TBID communications announcing the new website URL and functionality.
Public Comments:
Jim Dantona, President and CEO of the San Luis Obispo Chamber of Commerce.
---End of Public Comments---
ACTION: MOTION BY BOARD MEMBER CONNER, SECOND BY BOARD MEMBER PATEL,
CARRIED 5-0-2, to approve the presented website and to go live.
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4. CCTC EAST COAST INITIATIVE CO-OP
Tourism Manager Cano presented an update on the CCTC East Coast initiative including the campaign
direction and brand development for the Board’s co-op consideration. Board members discussed the
different co-op options and requested staff’s recommendation.
Public Comments:
Madison Quiring, Communications Manager of Visit SLO CAL.
---End of Public Comments---
ACTION: MOTION BY BOARD MEMBER CONNER, SECOND BY BOARD MEMBER
HARRIS, CARRIED 5-0-2, to approve $10,000 and commit TBID’s participation in the CCTC co-op
at the Gold Sponsorship tier from the existing marketing co-op budget.
5. MARKETING SERVICES RFP PROCESS
Tourism Manager Cano introduced the general Request for Proposal (RFP) process and timeline for
the upcoming Marketing Services contract. Board members discussed the workplan and Board Chair
Skidmore recommended a taskforce including one member from the Management Committee, one
member from the Marketing Committee and Board Chair. Board member Conner, Battaglia and Chair
Skidmore was appointed to the taskforce.
Public Comments:
None.
---End of Public Comments---
ACTION: MOTION BY BOARD MEMBER PATEL, SECOND BY BOARD MEMBER CONNER,
CARRIED 5-0-2, to approve a taskforce consisting of marketing committee member Conner,
management committee member Battaglia, and chair Skidmore to begin work on the RFP workplan.
TBID LIAISON REPORTS AND COMMUNICATION
1. Hotelier Update – Board members reported on their constituent outreach and communications about
the TMD renewal including Sands Inn & Suites having a new General Manager, Sum Beam has a
new point of contact and previous Vice Chair Wilkins may come to a future meeting as public.
2. Management Committee Update - September 5, 2019 minutes are in the packet for review.
3. Marketing Committee Update – September 4, 2019 minutes are in the packet for review.
4. PCC Update – Chair and PCC member Skidmore provided highlights on the August 14, 2019
meeting and reported that PCC member Matteson will be stepping in as the new chair as Chair Dixon
moves outside of city limits.
5. SLO CAL Update – Tourism Manager Cano; Visit SLO CAL Activity Report & STR in agenda
packet.
6. Tourism Program Update – Tourism Manager Cano and Tourism Coordinator Burns reported on
the following:
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• CHLA Workshop on Tuesday, October 22, 2019
• The new Fall promotion, Sip, Stay and Save will begin October 1, 2019
• Google My Business Workshop on Tuesday, September 24, 2019
• Upcoming TBID Meetings:
o Marketing Committee on Wednesday, October 2rd, 2019 at 10:30 a.m.
o Management Committee on Thursday, October 3rd, 2019 at 10:00 a.m.
ADJOURNMENT
The meeting was adjourned at 12:03 p.m. The next Tourism Business Improvement District Board meeting
is scheduled for Wednesday, October 9, 2019 at 10:00 a.m., at The Kinney, 1800 Monterey Street, San Luis
Obispo, CA.
APPROVED BY THE TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD: XX/XX/XXXX
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