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