HomeMy WebLinkAboutCC 2025-05-13_10a TBID PH to Levy Annual Assessment and FY 25-26 BudgetItem 10.a.
MEMORANDUM
TO: City Council
FROM: Sheridan Bohlken, Director of Recreation Services
SUBJECT: Tourism Business Improvement District Public Hearing to Levy
Annual Assessment and FY 2025-26 Budget
DATE: May 13, 2025
RECOMMENDATION:
1) Conduct a public hearing to receive public comment and protests regarding the City
Council’s intention to continue the Arroyo Grande Tourism Business Improvement District
(AGTBID), confirm the annual report (the “Annual Report”), and levy an annual
assessment for FY 2025-26;
2) Determine if a majority protest has been received; if no majority protest has been
received, adopt a Resolution confirming the Annual Report and assessment to be levied
within the AGTBID for Fiscal Years 2025-26;
3) Adopt a Resolution approving the FY 2025-26 operating budget for the AGTBID ; and
4) Determine that conducting a public hearing to adopt a Resolution confirming the Annual
Report and to levy and collect assessments, and adopting a Resolution to approve the
AGTBID operating budget is not subject to the California Environmental Quality Act
(“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable
indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2)
and (3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Based on the anticipated year-end results for Fiscal Year 2024-25, the assessments
expected to be collected total approximately $298,700 for FY 2025-26. The AGTBID
budget provides $5,000 to the City to cover a portion of the City’s cost associated with
supporting a Community Services Specialist position for vacation rental code compliance.
The AGTBID budget also provides $45,000 to the City for administration of the AGTBID.
The budget proposes $461,850 in expenditures consistent with the FY 2024-25 AGTBID
operating budget, and aims to spend down the assessment’s fund balance, projected to
be $132,955 at the conclusion of FY 2025-26.
BACKGROUND:
In May 2013, the City Council adopted Ordinance No. 651 establishing the AGTBID. The
purpose of forming the AGTBID was to provide revenue to defray the cost of services,
Page 129 of 504
Item 10.a.
City Council
Tourism Business Improvement District Public Hearing to Levy Annual
Assessment and FY 2025-26 Budget
May 13, 2025
Page 2
activities, and programs promoting lodging businesses in the AGTBID through the
promotion of scenic, recreational, cultural, and other attractions as a tourist destination.
An assessment is levied on all lodging businesses, inclusive of vacation rentals an d
homestays less than 30 days, within the AGTBID boundaries and is based upon two
percent of the rent charged by the operator to the visitor per occupied room per night for
all transient occupancies.
Pursuant to the Streets and Highways Code (SHC) and AGMC Section 3.46.100, the City
Council established the AGTBID Advisory Board and, in April 20231, updated the by-laws
to appoint one member per Council Member to advise on the administration and use of
funds benefiting the lodging industry. As required by the SHC Section 36533 the Advisory
Board submitted an Annual Report prepared by Commune Communication (Attachment
3), which was approved by the City Council on March 25, 20252. In accordance with
AGMC Section 3.46.060 and SHC Section 36534 the Council adopted a Resolution of
Intention to levy the annual assessment and set a public hearing for May 13, 2025, to
receive any protests regarding the AGTBID’s continuation.
At the AGTBID Board meeting on April 28, 20253, the AGTBID Board recommended
approval of a preliminary budget for FY 2025-26. AGTBID activities are funded through
assessments, which must be used exclusively for marketing and administration of the
AGTBID. Unused funds may be carried over to subsequent years if used in acco rdance
with the ordinance. The City Council considers recommendations from the AGTBID
Advisory Board regarding the use of assessment revenues.
ANALYSIS OF ISSUES:
Public Hearing to Continue Levying Assessment
As noted above, following approval of the Annual Report and adoption of the Resolution
of Intent to Levy the Assessment, the next step in the process for collecting assessments
for FY 2025-26 is to conduct a public hearing to consider public comment and pr otests
regarding the assessment. This public hearing will allow lodging businesses subject to
the assessment an opportunity to submit comments, voice concerns, and protest the
assessment. As set forth in Sections 36524 and 36525 of the S HC, the City Council has
the ability to continue to levy the AGTBID assessment for the next fiscal year at this public
hearing, unless written protests are received from the lodging businesses that pay 50%
or more of the proposed assessments. In that event, the City Council cannot consider
continuation of the AGTBID for at least one year. If the required number of written protests
is not received, SHC Section 36535 provides that at the conclusion of the hearing, a
Resolution levying an annual assessment for the AGTBID for FY 2025-26 may be
adopted. The statute further provides that the adoption of the Resolution confirming the
Annual Report and assessments constitutes the levy of the assessment for the fiscal year.
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=6427
2 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14198
3 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14401
Page 130 of 504
Item 10.a.
City Council
Tourism Business Improvement District Public Hearing to Levy Annual
Assessment and FY 2025-26 Budget
May 13, 2025
Page 3
Fiscal Year 2025-26 Operating Budget
The proposed AGTBID budget for the upcoming fiscal year maintains the same funding
levels as the previous year across all categories. This approach reflects a consistent
commitment to supporting core programs and services, including advertising, public
relations, and administrative support.
Maintaining the existing budget allows the AGTBID to continue promoting Arroyo Grande
as a tourism destination without disruption, while preserving fiscal stability with a
projected fund balance of $132,955 at the end of FY 2025 -26. In alignment with the
Streets and Highways Code, this ensures that assessment funds are used to directly
benefit the lodging businesses that pay into the district through destination marketing and
promotional activities. Consistent with Visit California’s call to “lean in” during times of
economic uncertainty and external challenges such as tariffs, and in support of
messaging from the Central Coast Tourism Council, this strategy affirms that Arroyo
Grande—and California more broadly—remain open for business and welcoming to
visitors. It reflects a responsible and sustainable approach to leveraging available
resources in support of AGTBID’s mission while reinforcing the regional and statewide
tourism brand.
The proposed budget strategically draws down the existing f und balance by temporarily
exceeding annual revenues, with the goal of aligning future expenditures with projected
income. This measured approach ensures responsible use of funds while continuing to
support the promotion of Arroyo Grande’s lodging industry. Ongoing market evaluation
will guide future planning.
Page 131 of 504
Item 10.a.
City Council
Tourism Business Improvement District Public Hearing to Levy Annual
Assessment and FY 2025-26 Budget
May 13, 2025
Page 4
Beginning Fund Balance $ 328,350 $ 405,833 $ 436,489 $ 438,185 $ 295,355
Revenue
FY 2021-22
Actuals
FY 2022-23
Actuals
FY 2023-24
Actuals
FY 2024-25
Adopted
Budget
FY 2025-26
Proposed
Budget
TBID Assessments $ 295,271 $ 303,626 $ 281,764 $ 318,270 $ 298,700
Interest (5,257) 4,078 17,990 750 750
Total Revenue $ 290,014 $ 307,704 $ 299,754 $ 319,020 $ 299,450
Expenditures
FY 2021-22
Actuals
FY 2022-23
Actuals
FY 2023-24
Actuals
FY 2024-25
Adopted
Budget
FY 2025-26
Proposed
Budget
Advertising
Marketing Services $ 144,762 $ 196,254 $ 218,340 $ 250,000 $ 250,000
Photo/Video Assets 10,000 11,595 1,890 25,000 25,000
Promotional Product - - 600 5,000 5,000
Website 7,765 16,695 - - -
Travel and Trade Shows - - - 7,500 7,500
Coop Advertising - - 14,400 50,000 50,000
Sub-total Advertising $ 162,527 $ 224,544 $ 235,230 $ 337,500 $ 337,500
Contractual Services
Short-term compliance $ - $ - $ 11,350 $ 11,350 $ 11,350
Chamber - Contract admin. 42,000 44,500 - - -
Sub-total Contractual Services $ 42,000 $ 44,500 $ 11,350 $ 11,350 $ 11,350
Membership & Subscriptions
CCTC $ - $ - $ 475 $ 500 $ 500
Sub-total Membership & Subs. $ - $ - $ 475 $ 500 $ 500
Public Relations
Event Sponsorships - - 1,000 50,000 50,000
Influencers - - - 10,000 10,000
Sub-total Public Relations $ - $ - $ 1,000 $ 60,000 $ 60,000
Services & Supplies
City - administrative $ 3,000 $ 3,000 $ 45,000 $ 45,000 $ 45,000
Supplies/Domains - - - 2,500 2,500
Vacation rental code compliance 5,004 5,004 5,004 5,000 5,000
Sub-total Services & Supplies $ 8,004 $ 8,004 $ 50,004 $ 52,500 $ 52,500
Total Expenditures $ 212,531 $ 277,048 $ 298,059 $ 461,850 $ 461,850
Ending Fund Balance $ 405,833 $ 436,489 $ 438,185 $ 295,355 $ 132,955
Page 132 of 504
Item 10.a.
City Council
Tourism Business Improvement District Public Hearing to Levy Annual
Assessment and FY 2025-26 Budget
May 13, 2025
Page 5
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. 1) Conduct a public hearing to receive public comment and protests regarding the
City Council’s intention to continue the AGTBID, confirm the Annual Report, and
levy an annual assessment for FY 202 5-26; 2) Determine whether a majority
protest has been received:
If a majority protest is not achieved:
a) Adopt a Resolution confirming the Annual Report and levying an annual
assessment for the AGTBID for FY 2025-26;
b) Adopt a Resolution approving the FY 202 5-26 operating budget for the
AGTBID; and
c) Determine that conducting a public hearing to adopt a resolution to levy
and collect assessments and adopting a resolution to approve the
AGTBID operating budget are not subject to the California
Environmental Quality Act (“CEQA”) because it has no potential to result
in either a direct, or reasonably foreseeable indirect, physical change in
the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3),
15378.);
If a majority protest is achieved:
a) Do not adopt the Resolution levying an annual assessment for the
AGTBID for FY 2025-26;
b) Do not adopt the Resolution approving the FY 2025-26 Budget; and
c) Direct staff to return next year with an item to consider whether to levy
the assessment in FY 2026-27; or
2. Provide other direction to staff.
ADVANTAGES:
Levying the annual assessment will enable the City to extend the AGTBID, which provides
a mechanism to generate funding to promote lodging stays and tourism in the City. These
efforts, in turn, increase transient occupancy tax revenue and supports local businesses.
Approving the AGTBID FY 2025-26 operating budget will allow the continuation of the
momentum of the Visit Arroyo Grande’s tourism marketing efforts, and to fund anticipated
additional marketing opportunities.
DISADVANTAGES:
Levying the assessment will continue to impose a cost to tourists and visitors to Arroyo
Grande who pay the assessment. There are no other disadvantages identified by levying
the assessment for another year. There are no disadvantages identified with adopting the
Resolution to adopt the AGTBID FY 2025-26 operating budget.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
Page 133 of 504
Item 10.a.
City Council
Tourism Business Improvement District Public Hearing to Levy Annual
Assessment and FY 2025-26 Budget
May 13, 2025
Page 6
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Resolution for TBID Assessment
2. Resolution for FY 2025-26 Budget
3. Annual Report
4. Resolution 2025-019
Page 134 of 504
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE CONFIRMING THE ANNUAL REPORT
AND ASSESSMENT TO BE LEVIED WITHIN THE
ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT
DISTRICT FOR THE FISCAL YEAR 2025-26
WHEREAS, on March 25, 2025, the City of Arroyo Grande (the “City”) City Council (the
“City Council”) adopted Resolution 2025-019 initiating proceedings for the continued
collection of assessments for Fiscal Year 2025-2026 for the Arroyo Grande Tourism
Business Improvement District (the “District”) pursuant to the Parking and Business
Improvement Area Law of 1989 (“PBIAL”), commencing with section 36500 et seq. of
the Streets and Highway Code; and
WHEREAS, the District was established in May 2013 and incorporated into the Arroyo
Grande Municipal Code (“AGMC”) under Chapter 3.46; and
WHEREAS, the AGMC and the PBIAL require the Advisory Board to prepare and submit
an annual report (“Annual Report”) stating improvements , activities, and assessments
for the fiscal year; and
WHEREAS, on March 13, 2025, the Advisory Board approved the Annual Report; and
WHEREAS, the Advisory Board Annual Report was filed and approved by the Arroyo
Grande City Council on March 25, 2025; and
WHEREAS, this Resolution is not subject to the California Environmental Quality Act
(CEQA) because it will not result in a direct, or reasonably foreseeable indirect, physical
change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378).
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
1. All recitals set forth above, are true, correct and incorporated herein.
2. Following notice duly given by publication, the City Council has held a public hearing
regarding the approval of the Annual Report and levy of the proposed assessment
within the District for the fiscal year commencing July 1, 2025, and ending June 30,
2026, to pay for the costs and expenses of activities and programs promoting
lodging businesses in the District through the promotion of scenic, recreational,
cultural, and other attractions in the District as a tourist destination, and as further
set forth in ACMG Section 3.46.030 (the “Activities”). All interested persons were
afforded the opportunity to hear and be heard regarding protests, and objections
have been considered by the City Council.
Page 135 of 504
RESOLUTION NO.
PAGE 2
3. The City Council hereby confirms the Annual Report and assessment for Fiscal Year
2025-2026 and orders the continued provision of the Activities within the District.
4. The assessment is proposed to be levied on all “lodging” businesses in the District,
as that term is defined in AGMC section 3.46.020, and allocated by the City.
5. The assessment shall be based upon two percent (2%) of the rent charged by the
operator per occupied room per night for all transient occupancies and shall be
collected quarterly and is hereby approved.
6. The adoption of this Resolution constitutes the levy of the assessment for fiscal year
2025-26.
7. This Resolution shall become effective immediately upon its adoption.
On motion of Council Member , seconded by Council Member , and
on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 13th day of May, 2025.
Page 136 of 504
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
Page 137 of 504
ATTACHMENT 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING THE FISCAL YEAR 2025-26
BUDGET FOR THE ARROYO GRANDE TOURISM BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, on February 26, 2013, the City Council adopted Resolution No. 4516
establishing the Advisory Board (“Advisory Board”) to the Arroyo Grande Tourism
Business Improvement District (“AGTBID” or “District”); and
WHEREAS, on May 14, 2013, the City Council adopted Ordinance No. 651 establishing
the AGTBID; and
WHEREAS, the purpose of the Advisory Board is to consult with and advise the City
Council on those matters dealing with the method and basis of levying assessments
within the AGTBID; expenditures of revenues derived from such assessments; and
programs, services, improvements, and activities intended to promote lodging
establishments within the District; and
WHEREAS, on March 13, 2025, the Advisory Board approved the FY 2025-26
AGTBID annual report (the “Annual Report”); and
WHEREAS, on March 25, 2025, the City Council approved the Advisory Board’s Annual
Report and adopted a Resolution of Intention to levy and collect assessments for the
2025-26 fiscal year and to set a date for a public hearing for May 13, 2025; and
WHEREAS, on May 13, 2025, the City Council adopted a Resolution confirming the
Annual Report and levying an annual assessment for the AGTBID for the 2025 -26 fiscal
year; and
WHEREAS, the budget recommendations attached hereto as Exhibit A are based upon
City revenue projections and will fund a work plan that meets the objectives, goals, and
responsibilities of the AGTBID.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande, as follows:
1. The foregoing recitals are true and correct and are incorporated herein.
2. The City Council hereby adopts the FY 2025-26 budget for the Arroyo Grande
Tourism Business Improvement District attached hereto as Exhibit A.
Page 138 of 504
RESOLUTION NO.
PAGE 2
On motion of , seconded by , and on the following roll call vote,
to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 13rd day of May, 2025.
Page 139 of 504
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
Page 140 of 504
RESOLUTION NO.
PAGE 4
EXHIBIT A
Beginning Fund Balance 328,350$ 405,833$ 436,489$ 438,185$ 295,355$
FY 2021-22
Actuals
FY 2022-23
Actuals
FY 2023-24
Actuals
FY 2024-25
Adopted
Budget
FY 2025-26
Proposed
Budget
TBID Assessments 295,271$ 303,626$ 281,764$ 318,270$ 298,700$
Interest (5,257) 4,078 17,990 750 750
Total Revenue 290,014$ 307,704$ 299,754$ 319,020$ 299,450$
Expenditures
FY 2021-22
Actuals
FY 2022-23
Actuals
FY 2023-24
Actuals
FY 2024-25
Adopted
Budget
FY 2025-26
Proposed
Budget
Advertising
Marketing Services 144,762$ 196,254$ 218,340$ 250,000$ 250,000$
Photo/Video Assets 10,000 11,595 1,890 25,000 25,000
Promotional Product - - 600 5,000 5,000
Website 7,765 16,695 - - -
Travel and Trade Shows - - - 7,500 7,500
Coop Advertising - - 14,400 50,000 50,000
Sub-total Advertising 162,527$ 224,544$ 235,230$ 337,500$ 337,500$
Contractual Services
Short-term compliance -$ -$ 11,350$ 11,350$ 11,350$
Chamber - Contract admin. 42,000 44,500 - - -
Sub-total Contractual Services 42,000$ 44,500$ 11,350$ 11,350$ 11,350$
Membership & Subscriptions
CCTC -$ -$ 475$ 500$ 500$
Sub-total Membership & Subs.-$ -$ 475$ 500$ 500$
Public Relations
Event Sponsorships - - 1,000 50,000 50,000
Influencers - - - 10,000 10,000
Sub-total Public Relations -$ -$ 1,000$ 60,000$ 60,000$
Services & Supplies
City - administrative 3,000$ 3,000$ 45,000$ 45,000$ 45,000$
Supplies/Domains - - - 2,500 2,500
Vacation rental code compliance 5,004 5,004 5,004 5,000 5,000
Sub-total Services & Supplies 8,004$ 8,004$ 50,004$ 52,500$ 52,500$
Total Expenditures 212,531$ 277,048$ 298,059$ 461,850$ 461,850$
Ending Fund Balance 405,833$ 436,489$ 438,185$ 295,355$ 132,955$
Revenue
Page 141 of 504
ARROYO GRANDE, CA
TBID Annual Report
2024-2025
ATTACHMENT 3
Page 142 of 504
22024-2025 ANNUAL REPORT ARROYO GRANDE, CA
TABLE OF CONTENTS
Overview and Goals
Updated Strategic Plan
Communications Strategy
Geography
Completed Initiatives
New Campaign
Results to Date
Roadmap
03
06
09
13
15
18
22
31
1
2
3
4
5
6
7
8
Page 143 of 504
32024-2025 ANNUAL REPORT ARROYO GRANDE, CA
OVERVIEW & GOALS
2
Page 144 of 504
42024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Gregory Dutson Board Member 8/22/2023 1/31/2025
Sarah Kunkle Vice Chair 8/22/2023 1/31/2027
OVERVIEW & GOALS
Advisory Body
The Arroyo Grande Tourism Business Improve-
ment District (AGTBID) has a plan in motion to
reach travelers whose interests and behaviors
align with the genuine experiences found in
our area. These travelers are ready to dis-
cover the magic of Arroyo Grande—a town
differentiated by its charming atmosphere,
striking scenery, and access to some of the
Central Coast’s most sought-after experienc-
es. The AGTBID Advisory Board is made up
of representatives from the local community,
lodging, or hospitality-related businesses in
Arroyo Grande appointed by the City Council.
The TBID helps to promote Arroyo Grande
as a travel destination and is funded by a 2%
assessment charged by hotels and Short Term
Rentals (STRs) for this purpose.
The AGTBID Advisory Board consists of in-
dividuals with expertise in the lodging and
tourism industry, including owners of lodging
businesses within the AGTBID. These members
are appointed by the City Council and play
a vital role in promoting Arroyo Grande as a
travel destination.
Name
Sean Dasmann Chair 8/22/2023 1/31/2025
Jeannie Miranda Board Member 8/22/2023 1/31/2027
Jared Worthen Board Member 8/22/2023 1/31/2025
Position Orig. Term Exp. Term
Page 145 of 504
52024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Marketing Objectives
Communications Goal
Arroyo Grande TBID’s plan to increase tourism
involves expanding to new audiences while driving
greater differentiation and distinctiveness:
We need to ignite a spark
that makes people want
to visit our area,
while giving them a clear
reason to choose
Arroyo Grande over all the
other options available.
Attract new visitors from top feeder
markets by inspiring a new audience to
consider SLO and Arroyo Grande as a
vacation destination.
Increase Arroyo Grande’s share of
overnight stays among visitors to the
5 cities and SLO County by creating a
distinctive proposition and voice for
Arroyo within the broader region.
1
2
Page 146 of 504
62024-2025 ANNUAL REPORT ARROYO GRANDE, CA
STRATEGIC PLAN
2
Page 147 of 504
72024-2025 ANNUAL REPORT ARROYO GRANDE, CA
STRATEGIC PLAN
This updated Visit Arroyo Grande strategic plan retains the core positioning and objectives, but
puts a greater focus on paid media outreach, driving advocacy, and tapping into current travel
inspiration trends.
Vision
Values
A thriving community rooted in authentic
hospitality and nourished by a strong
economy.
• Truth
• Excellence
• Teamwork
• Community
• Impact
To market Arroyo Grande as a
desirable travel destination, create
memorable experiences and support a
prosperous economy and community
• Transparent
• Forward-thinking
• Reliable
• Humble
• Partners
Arroyo Grande TBID is the city’s primary
source for destination marketing services and
tourism leadership.
We are:
• Storytellers of the Arroyo Grande tourism
experience
• Providers of tourism related information and
data
• Collaborators championing the value of
tourism and supporting key tourism drivers
• Stewards balancing the benefits of tourism
with Arroyo Grande’s quality of life
Mission
Reputation
Position
Page 148 of 504
82024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Vision
• Increase Brand Awareness as a Central
California Destination of Choice
• Ensure the Quality of our Brand Promise
and Visitor Experience
• Expand Stakeholder and Community
Engagement to Create a Collaborative and
Supportive Tourism Industry
• Attract new visitors from top feeder
markets
• Increase share of county visitor volume
• Increase number of visitor hours in
market
• Increase length of stay
• Increase advocacy
• Inspire repeat visits
• Increase representation of lodging
partners on the Board
• Grow stakeholder participation
• Increase resident approval of tourism
• Increase paid media efforts targeting larger
growth markets
• Create a distinctive proposition and voice
for Arroyo within the broader region
• Introduce new attribution model tying
media exposure to increased visitation
• Test new media types to elevate exposure to
a broader audience
• Use social media and influencer marketing
to reach travelers where they go for
inspiration
• Create and market experiences tied to
culturally relevant passion areas
• Create and promote shareworthy
experiences for visitors
• Provide visitors with content and materials
that help them get the most out of their visit
• Create a stakeholder engagement and
outreach campaign to educate and promote
the value of the TBID to lodging partners
• Collaborate with stakeholders to design and
expand co-operative marketing programs
• Increase the voice of tourism with key
governmental, businesses and community
decision makers and leaders
Mission
Initiatives
Page 149 of 504
92024-2025 ANNUAL REPORT ARROYO GRANDE, CA
COMMUNICATIONS STRATEGY
3
Page 150 of 504
102024-2025 ANNUAL REPORT ARROYO GRANDE, CA
COMMUNICATIONS STRATEGY
This updated Visit Arroyo Grande strategic plan retains the core positioning and objectives, but
puts a greater focus on paid media outreach, driving advocacy, and tapping into current travel
inspiration trends.
Positioning Statement:
There’s Just Something in the Air
There are plenty of places to shop, dine,
and play on the Central Coast, but there is
something different about Arroyo Grande.
Whether it’s the charm of the historic
downtown, the cozy neighborhood feel, the
best weather in the region, or the locals’
passion for their community, AG has a
unique, indefinable character that must be
experienced to be truly understood.
Arroyo Grande is SLO for those in the know.
Page 151 of 504
112024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Communications Architecture
There’s Just
Something in the Air
What’s AG?
Many people in key feeder
markets are unaware or
have low familiarity with
what AG has to offer.
Inspire
Reach travelers where
they go to get inspired,
and establish Arroyo
Grande as a destination
that they aspire to visit.
Moments to Share
Use social media,
programming
opportunities in the city,
influencer marketing,
and broad reach media
to create shareable
snapshots of AG’s unique
charm.
Social Media
Influencer Marketing
Display
OOH
CTV / Video
Why AG?
Those who are aware of
Arroyo Grande, may not
understand what makes
us different from other
destinations in the area.
Convince
Connect with interested
travelers around shared
passions and human sto-
rytelling that gives them
a reason to discover more
about AG.
Storytelling
Use longer form video,
image, and text stories to
communicate the unique
culture and emerging
character of AG, while
connecting with shared
passions of travelers.
Display
Organic Social
Web
How do I do AG?
Those who would like to
visit may not know where
to stay, dine, and play or
be exposed to less well-
known assets of the city.
Capture
Make AG travel
information and
experiences more
engaging and easy to
discover .
For Those in the Know
Capture interested
travelers with targeted
paid media and search,
while curating content for
different types of travelers
in easy-to-navigate digital
experiences.
Search
Display
Social Media
Web
AG has an unique, indefinable character that
must be experienced to be truly understood.
It’s SLO for those in the know.
Page 152 of 504
122024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Media Mix
FY 2024 Media Mix
33.3%
18.2%
12%
11.8%
9.2%
9.1%
1.9%
34.7%
22.2%
16.7%
12.5%
8.3%
5.6%
CTV
Organic Social
Display
Paid Social
Pre-Roll
E-Newsletter
Print
CTV/OTT
Paid Search
Display Banners
Paid Social
Pre-Roll
Interstitials
New!
New!
New!
FY 2025 Media Mix
Beginning in Q2, we shifted our media mix and marketing activities to prioritize paid media
investment targeted to new, potential visitors and de-prioritized marketing activities targeting
known audiences and the local community.
The media mix is now being optimized towards channels that are effective at driving visitation
to Arroyo Grande as tracked by mobile device IDs.
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132024-2025 ANNUAL REPORT ARROYO GRANDE, CA
GEOGRAPHY
4
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142024-2025 ANNUAL REPORT ARROYO GRANDE, CA
GEOGRAPHY
Grow Nurture
Focus on expanding visitation from major growth markets while
continuing to increase share of Nurture markets
High volume markets with lower
per-capita visitation, suggesting
opportunity for growth
Los Angeles
San Francisco
Sacramento
San Diego
Low / Mid volume markets with high
per-capita visitation, suggesting a high
conversion opportunity
Fresno
Monterey / Salinas
Bakersfield
San Francisco
Sacramento
Los Angeles
San Diego
Fresno
Monterey
Bakersfield
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152024-2025 ANNUAL REPORT ARROYO GRANDE, CA
COMPLETED INITIATIVES
5
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162024-2025 ANNUAL REPORT ARROYO GRANDE, CA
COMPLETED INITIATIVES
Completed Proposed Activities From FY2024
From April to June, Visit Arroyo completed
proposed activities, including a photo and
video shoot to support the “Time Well Spent”
creative campaign, a Co-Op marketing
test with Sojern to measure the economic
impact of marketing activity, and previously
scheduled blog posts and newsletters. In
addition, Arroyo Grande TBID secured ad
placement in Edible Magazine (Winter Digital
Issue) for illustrated holiday map as well as
an influencer partnership with CCTC California
Gold Pass Media.
In addition to the paid media test with Sojern,
and in partnership with Visit SLOCal, Arroyo
Grande TBID also executed a variety of
marketing programs to help increase visibility
for Arroyo Grande with visitors to the region.
In Q2, Arroyo Grande hosted Lisa Gipson
from San Diego Family Magazine helping
generate coverage with the important family
traveler demographic. Arroyo Grande was also
featured in a recent episode of Visit SLOCals
“Unpacking” social media video series. Arroyo
Grande secured placement with ads in Visit
SLOCal’s visitor magazine, the South County
Chamber of Commerce Visitor’s magazine,
and Sunset magazine, which are distributed
across the region. Lastly, our own Swinging
Bridge and Lopez Lake are featured in a
custom SLOCaledition of the Monopoly board
game, which is for sale online and retailers
across the region.
Arroyo Grande TBID’s owned media work
focused on maintaining an active social
media presence, including event promotions,
holiday celebrations, and emergency response
messaging for the LA fires. The AGTBID
created a new video for the Visit California
Welcome Center, and launched a talent search
campaign to source local ambassadors.
Arroyo Grande TBID collaborated with Visit
SLO CAL and Visit California, covering topics
including “What’s New in 2025”, “New Year’s
Eve Celebrations”, and the “CA Calendar.”
Arroyo Grande TBID participated in Visit
SLO CAL Travel & Tourism Customer Service
Training and supported the CCTC Fam Trip
Influencer with Discover California. $24,500
was approved for local event sponsorships
and the AGTBID developed merchandise for
distribution as stickers and tote bags.
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172024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Hired new marketing agency
In Q2 of FY2025, Arroyo Grande TBID
engaged Commune Communication as
their new agency of record for marketing
communications. Since the initial kickoff, the
AGTBID has been working with Commune
to develop a refreshed marketing strategy,
including a more distinctive brand positioning
and creative voice, a revised marketing
strategy, as well as a new attribution model
for marketing effectiveness and optimization.
Launched new paid media
strategy and attribution model
The first step of the transition to a
new marketing strategy was the rapid
implementation of a revised media mix and
data attribution strategy. Marketing activities
have been re-prioritized with a heavier
emphasis on paid channels and awareness
building activities that target potential visitors
from Arroyo Grande’s top feeder markets.
Using location-based, mobile ID data, AGTBID
and Commune identified top markets both in
terms of volume and per capita visitation. Paid
efforts launched immediately in November
to begin driving visitation activity from top
feeder markets, as well as beginning to collect
visitation data to inform future marketing
efforts. In an effort to prioritize reach and
paid media exposure to new audiences,
certain activities like blog posts, newsletters,
and organic social media have been de-
prioritized as these channels primarily reach
existing audiences or the local community.
In addition to helping identify key growth
opportunities, mobile device ID data is being
collected to analyze the performance of
paid media efforts at driving incremental
visitation to Arroyo Grande and member
hotels. Included in this is the addition of Days
Inn as part of the lodging options available to
potential travelers. An initial report on location
visitation was provided to the AGTBID board
in February. These findings not only provide
valuable benchmarks for future performance,
they have led to specific optimization
recommendations, including an increased
focus on CTV/OTT, as well as an upcoming test
of OOH billboards on HWY 101.
Developed new
campaign concept
In an effort to further differentiate Arroyo
Grande from other regional destinations,
Commune developed a fresh, distinctive
tourism campaign concept. The idea, Oddly
Familiar, not only captures the unique,
authentic charm of Arroyo Grande, it
establishes a truly original voice that helps
Arroyo Grande not only stand out within the
region, it breaks the common conventions
of tourism advertising. The campaign uses
breakthrough headlines and thought-
provoking imagery to inspire curiosity and
intrigue, inspiring the uninitiated to find out
more about what makes Arroyo Grande the
hidden gem of SLO County and to come visit a
place where they instantly feel at home.
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182024-2025 ANNUAL REPORT ARROYO GRANDE, CA
NEW CREATIVE CONCEPT
6
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192024-2025 ANNUAL REPORT ARROYO GRANDE, CA
NEW CREATIVE CONCEPT
Strategic Insight
Concept
84% of Gen Zers and Millennials are looking
for the excitement of discovery and finding
something unique and personal.
JOMO (Joy of Mission Out): Large cities are
impossible to get through in one weekend,
maybe even a week, but AG is truly fun
sized—allowing visitors to partake in a mix of
experiences at a pace that let’s them actually
enjoy them.
Nearly everywhere we went in Arroyo Grande,
locals were quick to welcome us into their world
like family—even though we were there for the
first time. As visitors from big California cities,
this felt a bit…odd.
At the same time, Arroyo Grande offers an
experience that’s familiar, with farm-to-table
fare, outdoor adventure, artisan shopping and
cultural events, all packaged with the friendly
spirit of a small town.
It all made us think, Have we been here before?
1
2
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202024-2025 ANNUAL REPORT ARROYO GRANDE, CA
From the second you arrive in Arroyo Grande,
You feel like this town isn’t just welcoming you in
It’s somehow welcoming you back.
Even if you’ve never set foot here before.
In Arroyo Grande, intuition is your travel guide
And familiarity sets the pace.
You already know your way around,
Even if you don’t quite know how.
It’s where first-time visitors are treated like long-
time locals, activities are tailor-made for your specific
interests, and there’s no learning curve to climb.
Every choice feels effortless, every turn feels right, every
moment makes perfect sense.
Almost as if you’ve lived it all before.
And maybe you have—
Because an experience this different from the norm, yet
this comfortable, can only happen in a place that’s
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212024-2025 ANNUAL REPORT ARROYO GRANDE, CAPage 162 of 504
222024-2025 ANNUAL REPORT ARROYO GRANDE, CA
RESULTS TO DATE
7
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232024-2025 ANNUAL REPORT ARROYO GRANDE, CA
RESULTS TO DATE
Along with a shift in paid media strategy,
starting in Q2, we initiated a new attribution
model for paid media, allowing us to track the
incremental impact of paid placements on
visitation to Arroyo Grande and our member
hotels. This data uses mobile device IDs to
connect exposure to advertising with actual
visits to specific locations in Arroyo Grande.
This data, along with occupancy and Transit
Occupancy Tax reporting provides a more
complete picture of Arroyo Grande TBID’s
performance, while allowing the marketing
team to make smarter decisions about
audience targeting, marketing mix, and
messaging.
*data represents July - December FY 2025
CTR
Total Video Impressions
Total Digital Impressions
Total Clicks
Business Results
Paid Media
1.56%
2.13 M+
3.35M+
54,401
Transit Occupancy Tax (TOT)
2019-2020
$926,026
2022-2023
$1,519,395
2020-2021
$1,016,301
2023-2024
$1,398,882
2021-2022
$1,472,554
2024-2025
$778,800*
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242024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Total Exposed Visits
Total Exposed Visits
Overall Cost Per Unique Visitor
Total Exposed Travel Activities*
*includes both searches and
bookings for car rentals, flights,
lodging, and foot traffic
**based on estimated $1,216 per
traveler across all activities
Total Exposed Unique Visitors
Confirmed Overnight Stays
Overall Cost Per Exposed Visit
Estimated ROAS**
Location Visitation Reporting
Sojern Co-op Media Test
530
166
$105.53
679
199
13
$40.57
5:1
Location Visitation Reporting (LVR)
complements occupancy and TOT data to
provide insight into the incremental impact of
paid media on visitation to specific locations
within Arroyo Grande. These numbers reflect
visits resulting from exposure to our paid media
efforts, allowing us to track the contribution
and effectiveness of those efforts over time,
while optimizing key variables like channel mix,
messaging, and audience targeting.
In addition to Location Visitation Reporting,
Arroyo Grande TBID participated in a BETA test
campaign with SLOCal to test the economic
impact of marketing with media partner, Sojern.
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252024-2025 ANNUAL REPORT ARROYO GRANDE, CA
VisitArroyoGrande.org Results
The primary drivers to VisitArroyoGrande.org for FY2024 were paid search and
cross-network display ads. Organic search had the highest engagement rate,
indicating strong SEO performance and alignment with visitor intent.
Source Sessions Engagement Rate
Paid Search
Cross-Network
Organic Search
Organic Social
Direct
64,139 18.24%
18.82%
57.42%
20.01%
30.53%
36,440
24,212
17,285
10,996
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262024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Visitation by Location
On a per capita basis, Arroyo Grande continues to attract a higher
percentage of visitors from our “Nurture” markets and from the Bay Area.
The marketing team is exploring opportunities to increase media exposure
in LA and the Bay Area to continue capitalizing on growth opportunities in
those markets.
ALL MARKETS
GROWTH MARKETS
Exposed
Visits
Total: 530
Exposed
Unique Visits
Total: 199
Population
Growth Markets
Nurture Markets
All Bay Area
All SoCal Area
410 151 13,175,753
120 48 1,247,217
182 54 1,335,372
169 92 4,639,394
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272024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Visitation by Destination
In addition to tracking by feeder market, we are able to track visitation to
specific locations within Arroyo Grande, including all local lodging establishments.
When combined with website behavior data, we can better analyze marketing
impact on driving consideration, purchase intent, and conversion for specific
properties, as well as AG as a whole.
While the majority of initial visits are to the village, paid media has created a
significant lift in visits to our hotel properties, while also bringing in more visitors
to the village who may convert to overnight stays on future trips.
Exposed
Visits
Total: 530
Exposed
Unique Visitors
Total: 199
Website
Hotel Page
Soft Conversions
Website
Book Now
Soft Conversions
The Village
Location
Aloha Inn
Best Western Casa Grande
Hampton Inn & Suites
Days Inn (was Pismo)
The Agrarian Hotel
BeachwayInn
ArroyoVillage Inn
425
Total across all Hotels: 64 Total across all Hotels: 29 Total across all Hotels: 79 Total across all Hotels: 78
13
162 --
4 22 22
34
2
12 16 21
2 3 No book button
25
6
8 16 21
2 7 8
23
2
7 11 0
2 4 6
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282024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Exposed Visitation by Month
50
100
150
0
As media exposure accumulates and tourists begin following through on their
travel planning, visits resulting from ad exposure month over month have steadily
increased, helping to drive down our Cost-Per-Visit and improving ROI.
Exposed Visits
Nov 2024 Dec 2024 Jan 2025 Feb 2025
Exposed Visitors Trendline for Exposed Visitors
Trendline for Exposed Visits
18
147
89
43
15
107
75
28
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292024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Exposed Visitation by Tactic
Based on the first few months of activity CTV/OTT has proved to be the most
effective tactic at driving visitation to Arroyo Grande and will continue to provide
the foundation of the plan, while interstitials and display play a complementary
role in driving cost-effective reach and web traffic.
Exposed
Visits
Total: 530
Exposed
Unique Visitors
Total: 199
Total
Impressions
Soft Conversions
Total Exposed
Visits per 1K
Impressions
CTV/OTT
Ad Tactic
Pre-RollVideo
StandardDisplay
High ImpactInterstitials
390 124 279,333 1.51
3 3 160,270 0.02
17 12 134,261 0.13
120 60 910,043 0.18
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302024-2025 ANNUAL REPORT ARROYO GRANDE, CA
Performance Against Benchmarks
With the introduction of location visitation reporting (LVR) the Arroyo Grande
TBID team used the first few months of activity to establish performance
benchmarks against key paid media KPIs. Continual optimization has already
demonstrated improvement against most key metrics. While most metrics have
improved, the need to convert more visitors to overnight stays remains an issue
to address in the coming months.
Benchmark Current
% +/-
Benchmark
CTR
Metric
Cost per Exposed Unique Visitor
Hotels as % of Total Visits
Cost per Exposed Visit
1.12%1.17%+4.5%
$125.78 $105.53 -16.1%
$67.34 $40.57 -39.75%
21%19.81%-5.67%
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312024-2025 ANNUAL REPORT ARROYO GRANDE, CA
ROADMAP
8
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322024-2025 ANNUAL REPORT ARROYO GRANDE, CA
The next launch of the campaign creative for this fiscal year takes place Q3 with
placements across standard display banners, high-impact interstitials, paid social
media, and billboards. The FY24/25 annual report will be brought to City Council
in Q3, 2025, with the next optimization and performance report brought to the
board in Q4 2025.
Nov
Mar
Jan
May
Dec
Apr
Feb
Jun
Define
Define
Channels
Design
Design
Diagnose
Diagnose
Deploy
Deploy
ROADMAP
LaunchLaunch Launch
Board MTG
Discovery
Board MTG
Launch Billboard Billboard
Board MTG Board MTG Board MTG
Page 173 of 504
332024-2025 ANNUAL REPORT ARROYO GRANDE, CA
ARROYO GRANDE, CA
Page 174 of 504
RESOLUTION NO. 2025-019
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DECLARING ITS INTENTION TO
CONTINUE THE ARROYO GRANDE TOURISM BUSINESS
IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS
FOR AND TO LEVY THE ASSESSMENTS FOR THE
DISTRICT, AND TO SET A DATE FOR THE PUBLIC
HEARING ON THE DISTRICT AND THE ASSESSMENT
FOR THE 2025-26 FISCAL YEAR
WHEREAS, the Parking and Business Improvement Area Law of 1989 (“PBIAL”),
sections 36500 et seq. of the Streets and Highway Code, authorizes cities to establish
business improvement districts for several purposes, one of which is promotion of tourism;
and
WHEREAS, the Arroyo Grande Tourism Business Improvement District was established
in May 2013 and incorporated into the Arroyo Grande Municipal Code (“AGMC”) under
Chapter 3.46; and
WHEREAS, in accordance with the requirements of Streets and Highways Code Section
36530 and AGMC Section 3.46.100, the City Council appointed an Advisory Board to
provide oversight, guidance, and recommendations regarding the use of the assessment
funds; and
WHEREAS, the AGMC and the PBIAL require the Advisory Board to prepare and submit
an annual report (“Annual Report”) stating proposed changes, improvements and
activities for the fiscal year; and
WHEREAS, this Resolution is not subject to the California Environmental Quality Act
CEQA) because it will not result in a direct, or reasonably foreseeable indirect, physical
change in the environment (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378); and
WHEREAS, on March 13, 2025, the Advisory Board approved the Annual Report; and
WHEREAS, the Advisory Board Annual Report was filed and approved by the Arroyo
Grande City Council on March 25, 2025.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
1. All recitals set forth above, are true, correct and incorporated herein.
2. The City Council hereby declares its intention to continue the Arroyo Grande
Tourism Business Improvement District (“ District”) in accordance with AGMC
Chapter 3.46 and Streets and Highways Code Sections 36500 et seq. and to levy
assessments for fiscal year 2025-26.
ATTACHMENT 4
Page 175 of 504
RESOLUTION NO. 2025-019
PAGE 2
3. The Annual Report is on file with the City Clerk and contains a full and detailed
description of the improvements and activities to be provided for fiscal year 2025-
26. No changes to the District boundaries are proposed, and the report includes the
estimated cost of providing improvements and activities for fiscal year 2025- 26. The
assessment is not proposed to be increased.
4. The boundaries of the District are the boundaries of the City of Arroyo Grande.
5. The assessment levied by the District shall be used for activities and programs
promoting lodging businesses in the District through the promotion of scenic,
recreational, cultural, and other attractions in the District as a tourist destination,
and as further set forth in ACMG Section 3.46.030.
6. The assessment is proposed to be levied on all “lodging” businesses in the District,
as that term is defined in AGMC section 3.46.020, and allocated by the City of
Arroyo Grande.
7. The assessment shall be based upon two percent (2%) of the rent charged by the
operator per occupied room per night for all transient occupancies and shall be
collected quarterly.
8. New lodging businesses shall not be exempt from immediate assessment.
9. A public hearing, held pursuant to AGMC Chapter 3.46 and Streets and Highways
Code Section 36535, to allow for comments and to receive written and oral protests
on the District and proposed assessment, is hereby set for 6:00 p.m., Tuesday May
13, 2025, before the City Council of the City of Arroyo Grande at the City Council
Chambers at 215 E. Branch St., Arroyo Grande, CA.
10. 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. A protest may be made
orally or in writing by any interested person. However, only written protests will
be considered in determining if there is a majority protest. The form and
manner of protests shall comply with Streets and Highways Code Sections
36524 and 36525.
11. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in
writing and clearly state the irregularity of defect to which objection is made. Written
protests must be received by the City Clerk of the City of Arroyo Grande before the
close of the public hearing scheduled herein and may delivered or mailed to
the City Clerk, City of Arroyo Grande, 300 East Branch Street, Arroyo Grande, CA
93420. A written protest may be withdrawn in writing at any time before
Page 176 of 504
RESOLUTION NO. 2025-019
PAGE 3
the conclusion of the public hearing. Each written protest shall contain a written
description of the business in which the person signing the protest is interested
sufficient to identify the business. If the person signing the protest is not shown on
the official records of the City of Arroyo Grande as the owner of a business, then
the protest shall contain or be accompanied by written evidence that the person is
the owner of the business.
12. If at the conclusion of the public hearing, there are of record written protests by the
owners of lodging businesses within the District that will pay fifty percent (50%) or
more of the total assessments of the entire District, no further proceedings to
continue the District shall occur. New proceedings to continue the District shall not
be undertaken again for a period of at least one (1) year from the date of the finding
of a majority protest by the City Council. 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 District.
13. The City Clerk is instructed to provide notice as required by AGMC Chapter 3.46
and Streets and Highways Code Section 36534. The City Clerk shall give notice
of the public hearing by causing this Resolution of Intention to be published once
in a newspaper of general circulation in the City no less than seven (7) days before
the public hearing.
On motion of Council Member Maraviglia, seconded by Council Member Secrest, and on
the following roll call vote, to wit:
AYES: Council Members Maraviglia, Secrest, and Guthrie
NOES: None
ABSENT: Council Member Loe and Mayor Ray Russom
the foregoing Resolution was passed and adopted this 25th day of March, 2025.
Page 177 of 504
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO. 2025-019
PAGE 4
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