Loading...
CC 2013-07-09_08.h. TBID Budget and ByLawsMEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER ~ SUBJECT: CONSIDERATION OF TOURISM BUSINESS IMPROVEMENT DISTRICT BUDGET AND BY-LAWS DATE: JULY 9, 2013 RECOMMENDATION: It is recommended the Council: 1) adopt a Resolution approving the proposed FY 2013-14 Annual Budget for the Arroyo Grande Tourism Business Improvement District (TBID); 2) adopt a Resolution approving the proposed by-laws for the TBID; and 3) appropriate $5,000 to contribute towards the tourism efforts. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Total revenues for the TBID are projected to be approximately $162,000, which includes $152,000 from the assessment and a $5,000 contribution from the City and from the Chamber of Commerce. A total of $146,599 in expenditures are recommended, which leaves a projected ending fund balance of approximately $15,401. Of the $5,000 contribution by the City, $3,000 would come from funds previously agreed by the TBID to be paid to the City for reimbursement of administrative expenses. Therefore, it represents an impact of only $2,000 on the budget. BACKGROUND: At the February 26th meeting, staff recommended and the City Council adopted a Resolution of Intention to establish the TBID, which will levy a 2% room charge assessment on lodging businesses within the District. The City Council also adopted a Resolution establishing the TBID Advisory Board. At the April 23, 2013, the Ordinance was introduced by the City Council. At the May 14, 2013 meeting, the City Council adopted the Ordinance to establish the TBID and appointed the members of the TBID Advisory Board. The TBID became effective on June 13, 2013 and the assessment fee took effect on July 1, 2013. The TBID Advisory Board held their first meeting on June 24, 2013. They approved recommendation of the proposed budget and work plan. Item 8.h. - Page 1 CITY COUNCIL CONSIDERATION OF TOURISM BUSINESS IMPROVEMENT DISTRICT BUDGET AND BY-LAWS JULY 9, 2013 PAGE2 ANALYSIS OF ISSUES: Under the proposed budget and work plan, the City will contract with the Chamber of Commerce to coordinate the TBID work, provide staff support to the Advisory Board, coordinate the Advisory Board meetings, maintain the web site and other social media, and manage contracts associated with tourism marketing. It was determined that this would be the most cost effective approach since the Chamber of Commerce is already coordinating a Tourism and Marketing Committee that will be responsible for implementing most of the goals and objectives set forth by the Advisory Board. Consultant services of a marketing firm will also be recommended to design and implement the advertising efforts. The City will collect the assessment payments and be responsible for issuing payments for expenses. There are legal restrictions on utilizing TBID revenues for activities that provide benefits to others than those paying the assessment. Therefore, funding from the City and the Chamber of Commerce are recommended in order to enable other businesses to be included on the web site and advertising materials. The proposed budget includes funding to participate in the Visitors' and Conference Bureau and in Savor of the Central Coast. A website will be designed devoted specifically to prospective Arroyo Grande visitors. Additional funding has also been budgeted, but not yet earmarked for specific activities, since the overall work plan is still under development. By-laws have been prepared to provide overall guidelines for the TBID Advisory Board. The by-laws were drafted to be consistent with the provisions approved by Council in the resolution that established the TBID Advisory Board. ALTERNATIVES: The following alternatives are provided for the Council's consideration: • Approve staffs recommendations; • Request changes to the budget or by-laws and then approve; • Approve the budget and by-laws, but not an appropriation of City funding; • Do not approve and request the TBID Advisory Board to consider other goals; or • Provide direction to staff. ADVANTAGES: The recommendations will enable the TBID Advisory Board and Chamber of Commerce Tourism and Marketing Committee to immediately begin implementation of the City's tourism efforts. The work plan will not only result in potential increases in transient occupancy tax and sales tax revenues, but some of the activities will target increasing hotel stays during off-peak seasons. One of Item 8.h. - Page 2 CITY COUNCIL CONSIDERATION OF TOURISM BUSINESS IMPROVEMENT DISTRICT BUDGET AND BY-LAWS JULY 9, 2013 PAGE3 the opportunities discussed is to promote business use of the Regional Center and Woman's Club Community Center, which could also generate facility use revenue for the City. DISADVANTAGES: The recommendations result in a minor expenditure of City General Fund monies. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Wednesday, July 3, 2013 and on the City's website on Friday, July 5, 2013. No comments were received. Attachments: 1. TBID Budget Detail Item 8.h. - Page 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2013-14 BUDGET FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, on February 26, 2013, the City Council adopted Resolution No. 4516 establishing the Arroyo Grande Tourism Business Improvement District Advisory Board ("Advisory Board"); and WHEREAS, on May 14, 2013, the City Council adopted Ordinance No. 651 establishing the Arroyo Grande Tourism Business Improvement District; 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 Arroyo Grande Tourism Business Improvement District; expenditures of revenues derived from such assessments; and programs, services, improvements, and activities intended to promote lodging establishments within the District; and WHEREAS, on June 24, 2013, the Advisory Board recommending that the Council approve a budget expenditure plan for FY 2013-14 based upon City revenue projections; and WHEREAS, the budget recommendations will fund a work plan that meets the objectives, goals and responsibilities of the Arroyo Grande Tourism Business Improvement District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. The recitals set forth herein are true and correct. 2. The City Council hereby adopts the FY 2013-14 budget for the Arroyo Grande Tourism Business Improvement District attached hereto as Exhibit A. On motion by 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_ day of 2013. Item 8.h. - Page 4 RESOLUTION NO. PAGE2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.h. - Page 5 EXHIBIT A TOURISM BUSINESS IMPROVEMENT DISTRICT FUND SUMMARY FUND: xxx TOURISM BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2012-13 2010-11 2011-12 ORIGINAL AMENDED ESTIMATED 2013-14 ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET Beginning Fund Balance $ $ $ $ $ $ Revenues: Revenues 162,200" Transfers In Total Revenues 162,200 Expenditures: Salaries and Benefits Current Expenses 146,599 Capital Outlay Transfers Out Total Expenditures 146,599 Adjustments to Fund Balance Ending Fund Balance $ $ $ $ $ $ 15,601 Reserve for Carry-Over of Appropriations Available Fund Balance $ $ $ $ $ $ 15,601 1 Item 8.h. - Page 6 TOURISM BUSINESS IMPROVEMENT DISTRICT REVENUE DETAIL FUND: xxx TOURISM BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2012-13 2010-11 2011-12 ORIGINAL AMENDED ESTIMATED 2013-14 ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET ANALYSIS TAXES AND ASSESSMENTS xxxx Annual Assessments $ $ $ $ $ $ 152,000 Total 152,000 USE OF MONEY 4301 Interest 200 Total 200 OTHER REVENUE 4801 Other Revenue 10,000 Total 10,000 Grand Total $ $ $ $ $ $ 162,200 1 Item 8.h. - Page 7 TOURISM BUSINESS IMPROVEMENT DISTRICT EXPENDITURE DETAIL FUND: XXX TOURISM BUSINESS IMPROVEMENT DISTRICT ', ACTIVITY: XXX TOURISM BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2012-13 2010-11 2011-12 ORIGINAL AMENDED ESTIMATED 2013-14 ACCOUNT LINE ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET ANALYSIS SERVICES & SUPPLIES 5301 Advertising $ $ $ $ $ $ 67,500 5303 Contractual Services 18,500 5304 Professional Services 5,000 5503 Memberships & Subscriptions 15,599 5504 Public Relations 40,000 Total 146,599 TRANSFERS 5902 Operating Transfers 5903 Cost Allocation Transfers 5904 Capital Transfers Total Grand Total $ $ $ $ $ $ 146,599 1 Item 8.h. - Page 8 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING AND ADOPTING BYLAWS FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD WHEREAS, on February 26, 2013, the City Council adopted Resolution No. 4516 establishing the Arroyo Grande Tourism Business Improvement District Advisory Board ("Advisory Board"); 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 Arroyo Grande Tourism Business Improvement District; expenditures of revenues derived from such assessments; and programs, services,. improvements, and activities intended to promote lodging establishments within the District; and WHEREAS, the City Council may, by resolution, adopt bylaws governing the membership and operations of the Advisory Board. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1 . The recitals set forth herein are true and correct. 2. The City Council hereby adopts Bylaws for the Advisory Board attached hereto as Exhibit A and incorporated herein by this reference. On motion by 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_ day of 2013. Item 8.h. - Page 9 RESOLUTION NO. PAGE2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.h. - Page 10 RESOLUTION NO. PAGE3 EXHIBIT A ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD BY-LAWS Section 1: Purpose The Arroyo Grande Tourism Business Improvement District (AGTBID) Advisory Board (Board) advises the City Council in the administration and use of the assessment funds. The Board recommends projects to the City of Arroyo Grande to promote tourism to directly benefit the City's lodging industry. Section 2: Membership Board Members shall be appointed by the City Council. The total membership of the Board shall consist of a minimum of three (3) but not more than seven (7) members, 2/3rds of which shall be owners of lodging businesses and/or appointed representatives of the owners of lodging businesses from within the AGTBID. Membership on the Board shall be exempt from City residency requirements otherwise applicable to other City Advisory Boards. Criteria and selection for membership shall not discriminate based upon sex, race, religion, creed, color, age, national or ethnic origin, or any other classification protected by law. Section 3: Term Board Members shall be appointed to terms of four (4) years. Section 4: Remuneration The Board shall serve without compensation. Section 5: Termination of Membership Membership on the Board shall terminate in the event that the Member is no longer an owner of a lodging business or an appointed representative of an owner of a lodging business within the AGTBID. Section 6: Removal of Members A Member may be removed by a majority vote of the City Council. Section 7: Resignation Any Board Member may resign at any time by giving written notice to the Chairperson, who shall forward such notice to the Board. Any such resignation will take effect upon receipt by the Chairperson or upon any date specified therein. The acceptance of such resignation shall not be necessary to make it effective. Item 8.h. - Page 11 RESOLUTION NO. PAGE4 Section 8: Filling of Vacancies In the event of a vacancy on the Board, the City Council shall appoint an individual to fill such vacancy as soon as reasonably practicable. New Members must meet the membership qualifications. Section 9: Functions and Duties The functions and duties of the Board shall include, but not be limited to, the following: a. To study, investigate and determine the need for the Arroyo Grande Tourism Business Improvement District on an annual basis. b. To advise the City Council regarding the expenditure of assessment funds on an annual and ongoing basis. c. To prepare and file the annual report as described in Streets and Highways Code Section 36533. Such report shall be submitted to the City Council no later than April 30 of each year. d. To study, investigate and make proposals regarding the need for any changes to the Arroyo Grande Tourism Business Improvement District on an annual basis be included in the annual report. e. To perform any other functions as directed by the City Council from time to time. Section 10: Officers a. At the first regular meeting of the Board wherein newly appointed Members are seated, the Members shall elect a Chairperson and Vice Chairperson who shall hold office for a period of one year. b. The Chairperson shall preside over all meetings of the Board, and otherwise perform such duties as directed by the Board or Council. The Chairperson may sign documents necessary to carry out the business of the Board. c. The Vice Chairperson shall serve in the absence or incapacity of the Chairperson. Section 11: Meetings a. Regular Board meetings shall be held quarterly, on the 4th Monday of the month in July, October, January, and April, at a location accessible to the public, in Arroyo Grande,, California. b. Special meetings may be called at any time by the Chairperson or by a majority of the Board Members. c. A notice, agenda and other necessary documents shall be delivered to the lodging members, personally, by mail or by e-mail, at least seventy-two (72) hours prior for a regular meeting and 24 hours prior for a special meeting. d. The meetings shall be open to the public. e. A quorum shall consist of a majority of the Board Members then serving on the TBID Board. f. All actions of the TBID Board shall be by a majority vote and shall be directed through the Chairperson. Item 8.h. - Page 12 RESOLUTION NO. PAGES g. Minutes of each meeting shall be taken, shall be available as a public record and forwarded to the Council if needed. Section 12: Staff Representation a. The City of Arroyo Grande City Manager, or the designee of the City Manager, shall be responsible for preparing agendas pertaining to Advisory Board business and shall attend the Board meeting. b. The Arroyo Grande Chamber of Commerce Executive Director will prepare and maintain accurate minutes of the official activities of the Board. Section 13: Amendments All amendments to these Bylaws shall be approved by the City Council. Item 8.h. - Page 13 ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT FY 2013-14 BUDGET DETAIL Revenues Revenue Source Amount TBID Fee $152,000 City $5,000 Chamber of Commerce $5,000 Revenue Total Expenditures Line Item Expenditure Administration City $3,000.00 Chamber of Commerce $13,000.00 Supplies $2,500.00 Total Advertising/Marketing Advertising $30,000 Consultant Services $30,000 Miscellaneous $7,500 Total Website Website Design $5,000 Total Memberships Visit SLO County (VCB) $12,599 CCTC $500 Miscellaneous $2,500 Total Sponsorships Savor the Central Coast $15,000 Miscellaneous $15,000 Total Events Miscellaneous $10,000 Expenditure Total Projected Fund Balance Attachment 1 $162,000 Total $18,500.00 $67,500 $5,000 $15,599 $30,000 $10,000 $146,599 $15,401 Item 8.h. - Page 14