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CC 2019-05-28_09a AGTBID Annual Assessment MEMORANDUM TO: CITY COUNCIL FROM: JIM BERGMAN, CITY MANAGER BY: JESSICA MATSON, DEPUTY CITY CLERK SUBJECT: CONSIDERATION OF ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND THE FISCAL YEAR 2019-20 BUDGET DATE: MAY 28, 2019 SUMMARY OF ACTION: Levying an annual assessment for Fiscal Year 2019-20 to defray the costs of services, activities and programs promoting tourism for the benefit of lodging businesses within the Arroyo Grande Tourism Business Improvement District (AGTBID), and approval of the FY 2019-20 budget for the AGTBID. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Based on the anticipated year-end results for FY 2018-19, the assessment expected to be collected totals approximately $200,000. The AGTBID budget provides $3,000 to the City to cover the City’s administrative costs associated with collecting and disbursing the assessment. The City has also budgeted $5,000 to contribute toward the tourism efforts. Therefore, it results in a net cost of $2,000 to the City. RECOMMENDATION: It is recommended the City Council: 1) Hold a public hearing to receive testimony regarding the City Council’s intention to continue the AGTBID and levy an annual assessment for fiscal year 2019-20; 2) Determine whether a legally sufficient number of protests have been made; 3) If a legally sufficient protest is not made, adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2019-20 fiscal year; and 4) Adopt a Resolution approving the FY 2019-20 budget for the AGTBID. BACKGROUND: In May 2013, the City Council adopted an Ordinance establishing the AGTBID. The AGTBID was formed under the Parking and Business Improvement Law of 1989, Sections 36500 et seq. of the Streets and Highways Code and incorporated into the Arroyo Grande Municipal Code (AGMC) in Title 3, Chapter 3.46. Item 9.a. - Page 1 CITY COUNCIL CONSIDERATION OF ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND THE FISCAL YEAR 2019-20 BUDGET MAY 28, 2019 PAGE 2 The purpose of forming the AGTBID was to provide revenue to defray the costs of services, activities and programs promoting lodging businesses in the AGTBID through the promotion of scenic, recreational, cultural and other attractions in the AGTBID as a tourist destination. An assessment is levied on all lodging businesses within the AGTBID boundaries and is based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies. In December 2014, the City Council adopted an Ordinance amending Chapter 3.46 of the Arroyo Grande Municipal Code to provide that the same exemptions that apply to the Transient Occupancy Tax apply to AGTBID assessments and amended the definition of "lodging" to include vacation rentals and homestays. In accordance with the provisions in the Streets and Highways Code and AGMC Section 3.46.100, the City Council appointed an Advisory Board. Pursuant to Streets and Highways Code Section 36533, the Advisory Board is to prepare an annual report, which is to be submitted to the City Council for its review and approval. Accordingly, the AGTBID Advisory Board submitted the annual report (Attachment 1) to the City Council for consideration at its April 23, 2019 meeting, which was approved. AGMC Section 3.46.060 also provides that the assessments for the AGTBID are to be reviewed annually by the City Council based upon the annual report of the Advisory Board, and after approval of the annual report, the City Council is to follow the hearing process outlined in Streets and Highways Code Section 36534 for the annual assessment for the upcoming fiscal year. Section 36534 provides for the adoption of a Resolution of Intention to levy an annual assessment for that fiscal year. The Resolution also sets a public hearing date in order to receive any written or oral protests against the continuation of the AGTBID as required by the applicable statute. Accordingly, on April 23, 2019, the City Council adopted a Resolution setting a public hearing for May 28, 2019. Additionally, the AGTBID Advisory Board has reviewed a preliminary budget for FY 2019- 20 based on activity during FY 2018-19. Due to the absence of a marketing firm in FY 2017-18, the AGTBID currently has an estimated fund balance of $275,000. Although not part of the recommendation of the AGTBID Advisory Board, staff recently received information and a quote from Host Compliance to assist in monitoring and compliance of short-term rentals. At this time, staff recommends the Council consider allocating up to $9,000 from the AGTBID fund balance to be used to hire Host Compliance or similar consultant. ANALYSIS OF ISSUES: The AGTBID has been in effect for almost six years and has been very successful. The Advisory Board implements the programs and activities funded through the AGTBID. The Item 9.a. - Page 2 CITY COUNCIL CONSIDERATION OF ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND THE FISCAL YEAR 2019-20 BUDGET MAY 28, 2019 PAGE 3 Chamber of Commerce administers the program; therefore, minimal staff time has been required by the City. In June 2018, the Council approved an Agreement with Verdin Marketing for tourism marketing services to provide a fresh perspective and innovative ideas given the current economic climate and needs of Arroyo Grande’s tourism market. Since that time, a tourism website, rebranding of Visit Arroyo Grande, advertising campaigns and other marketing efforts have been developed and implemented. Today’s 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 California Streets and Highways Code, the City Council has the ability to continue the AGTBID at this public hearing, unless written protests are received from lodging businesses that pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the AGTBID for at least one year. If the required number of written protests is not received, Streets and Highways Code Section 36535 provides that at the conclusion of the hearing, a Resolution confirming the Advisory Board’s report may be adopted. The statute further provides that adoption of the Resolution constitutes the levy of the assessment for the fiscal year. A Resolution has been prepared for City Council consideration and adoption if there is no legally sufficient protest. The AGTBID Advisory Board also recommends the Council adopt a Resolution approving the FY 2019-20 Budget for the AGTBID including a recommendation to appropriate $46,800 from the FY 2018-19 fund balance into the AGTBID FY 2019-20 operating budget. The proposed budget is included in the attached Resolution. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2019-20 fiscal year, and adopt a Resolution approving the AGTBID FY 2019-20 Budget; 2. Adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2019-20 fiscal year, and adopt a Resolution approving the AGTBID FY 2019-20 Budget, as amended, to include up to $9,000 from the AGTBID fund balance to be used to hire Host Compliance or similar consultant to assist in monitoring and compliance of short-term rentals; 3. Adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2019-20 fiscal year; make other modifications to the budget and adopt a Resolution approving the AGTBID Budget for FY 2019-20; or 4. Provide other direction to staff. Item 9.a. - Page 3 CITY COUNCIL CONSIDERATION OF ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND THE FISCAL YEAR 2019-20 BUDGET MAY 28, 2019 PAGE 4 ADVANTAGES: The recommendations will enable the City to continue the AGTBID, which provides a mechanism to generate funding to promote lodging stays and tourism in the City, which increases transient occupancy tax revenue and supports local businesses. DISADVANTAGES: No disadvantages with levying the assessment for another year are identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. 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. ATTACHMENT: 1. Annual Report 2. Cost Effective Solutions to Short Term Rental Compliance Item 9.a. - Page 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE 2019-20 FISCAL YEAR WHEREAS the Parking and Business Improvement Area 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 the 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 in Chapter 3.46; and WHEREAS in accordance with the requirements of Streets and Highways Code Section 36530 and Arroyo Grande Municipal Code 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 Arroyo Grande Municipal Code and the Parking and Business Improvement Area Law of 1989 requires the Advisory Board to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS the Advisory Board annual report was considered and approved by the Arroyo Grande City Council at its April 23, 2019 meeting; and WHEREAS, in accordance with the procedures contained in Streets and Highways Code Section 36534, on April 23, 2019 the City Council adopted a Resolution of Intention to levy an annual assessment for the Arroyo Grande Tourism Business Improvement District for the 2019-20 fiscal year and set a public hearing for May 28, 2019 to consider the annual assessment and hear any oral or written protests; and WHEREAS, the City Council held a duly noticed Public Hearing on May 28, 2019 to allow for protests, as required by Streets and Highway Code Section 36524, and, sufficient written protests were not received from lodging businesses in the District which pay fifty percent or more of the assessment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande as follows: SECTION 1. The City Council hereby continues the established Arroyo Grande Tourism Business Improvement District in accordance with Arroyo Grande Municipal Code Chapter 3.46 and California Streets and Highways Code Sections Item 9.a. - Page 5 RESOLUTION NO. PAGE 2 36500 et seq. (Parking and Business Improvement Area Law of 1989) and levies assessments for fiscal year 2019-20 as further contained herein. SECTION 2. The report of the Arroyo Grande Tourism Business Improvement District Advisory Board is hereby confirmed. SECTION 3. The location and boundaries of the Arroyo Grande Tourism Business Improvement District are the boundaries of the City of Arroyo Grande. SECTION 4. The assessment levied by the Arroyo Grande Tourism Business Improvement 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 Arroyo Grande Municipal Code Section 3.46.030. SECTION 5. The assessment will be levied and allocated by the City of Arroyo Grande. SECTION 6. The assessment is to be levied on all “lodging”, as that term is defined in Arroyo Grande Municipal Code Section 3.46.020. SECTION 7. The assessment for fiscal year 2019-20 shall be levied on all lodging businesses within the AGTBID boundaries and shall be based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies. The assessment shall be collected quarterly, based on two percent of the rent charged by the operator per occupied room per night in revenues for the previous quarter. SECTION 8. New lodging businesses shall not be exempt from immediate assessment. On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 28th day of May, 2019. Item 9.a. - Page 6 RESOLUTION NO. PAGE 3 ___________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _____________________________________ JAMES A. BERGMAN, CITY MANAGER APPROVED AS TO FORM: ___________________________________ HEATHER WHITHAM, CITY ATTORNEY Item 9.a. - Page 7 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2019-20 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 (“AGTBID”) Advisory Board (“Advisory Board”); 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 25, 2019, the Advisory Board approved the FY 2018-19 AGTBID Annual Report; and WHEREAS, on April 23, 2019, the City Council approved the Advisory Board’s Annual Report and adopted a Resolution of Intention to levy and collect assessments for the 2019-20 fiscal year and to set the date for a public hearing for May 28, 2019; and WHEREAS, on May 28, 2019, the City Council adopted a Resolution confirming the Advisory Board’s Annual Report and levying an annual assessment for the AGTBID for the 2019-20 fiscal year; and WHEREAS, the budget recommendations 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 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 2019-20 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 28th day of May, 2019. Item 9.a. - Page 8 RESOLUTION NO. PAGE 2 ___________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _________________________________ JAMES A. BERGMAN, CITY MANAGER APPROVED AS TO FORM: ___________________________________ HEATHER WHITHAM, CITY ATTORNEY Item 9.a. - Page 9 Preliminary FY 2019-20 AGTBID Budget REVENUES Revenue Source Amount TBID Assessments $ 200,900 Interest $ 800 Chamber contribution 5,000 City contribution 5,000 Total Revenue $ 211,700 Estimated Fund Balance for FY 2019-20 is $275,000 EXPENDITURES Activity Amount Activity Amount Tourism Marketing $165,000 Public Relations & Sponsorships $60,000 Includes: Services Sponsorship Opportunities $43,100 City - administrative $3,000 Chamber - Contract admin. $30,000 Membership Sub-total Services & Supplies $33,000 Central Coast Tourism Council $500 Total Expenditures $258,500 Exhibit A Item 9.a. - Page 10 Annual Report | 2018 - 2019 ATTACHMENT 1 Item 9.a. - Page 11 CALIFORNIA 2 Overview and Goals 3 Rebrand 4 Asset Creation 6 Personas 8 Email Marketing 11 Social Media 12 Website 13 Paid Media 14 Public Relations 15 Addendum 17 Table of Contents 2 Item 9.a. - Page 12 Overview & Goals The Arroyo Grande Tourism Business Improvement 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 discover 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 experiences. The AGTBID Advisory Board consists of lodging business owners within the city of Arroyo Grande and others with knowledge of tourism and/or the lodging industry. The AGTBID helps to promote Arroyo Grande as a travel destination and is funded by a 2% assess- ment administered by lodging partners for this purpose. In July 2018, Verdin, a marketing firm based in San Luis Obispo, was awarded the contract to create and execute a marketing strategy focused on the goals below. Verdin has been working with the AGTBID for the last nine months and is excited to share what has been accomplished to date. Position Arroyo Grande as a travel destination Increase overnight stays in Arroyo Grande Introduce new visitors to Arroyo Grande Marketing Goals: 3Item 9.a. - Page 13 Rebrand We are pleased to debut our fresh new look! Arroyo Grande is a town with an equal dash of class and character, and we believe our new logo better captures its quaintness and welcoming spirit, striking a balance between Arroyo Grande’s refined wine country charm and the down-to-earth inclusivity of its community. We began working on the rebrand in October of 2018 with the guidance of an appointed subcommittee. This process included: We officially launched the brand on February 21, 2019 which included updated social imagery, social content posts, dedicated e-newsletter, website brand updates and a letter to all lodging partners. Above documents are attached in Addendum. • A brand intake • Image assessment • Competitive analysis • Creative brief • Brand map • Three logo options • Two color palettes • Digital brand guidelines 4 Item 9.a. - Page 14 i.•t•oyo ~ .. ,., ---~· ,, t•an e CALIFORNIA Brand Guidelines Click to download all versions and colors of the Arroyo Grande logo: Just looking for one file type? Click for a shortcut to: Download All JPEG ~ Our Logo Background Usage Sometimes the logo will be placed over images or visually complex backgrounds. Always make sure the logo can be easily seen . The full color logo is always preferred, but other options are available to help with legibility, The left column shows unacceptable logo usage, the right column shows how to correct it. When the logo is placed over a photo, on a color background, or on a pattern background, it must be in full color reversed or white if it's darker and full color if it's very light. ~-~ (~· Y' f d"alll C . ' The Color Color Palette The Arroyo Grande color palette is fresh, warm and energizing, The shades of orange are vibrant and full of life, and point back to the city's sunny and welcoming nature, While still lively, the shades of blue also bring in a cool and rejuvenating contrast. Here are the color breakdowns for each production format. CMYK colors are used for any basic printed materials (flyers, brochures, documents, menus etc), RGB colors are used for any digital materials (social media , e• newsletters, website, TV advertisements, etc). The web safe colors are similar to RGB and are only used for digital materials. The six-digit code is an easy way to add specific colors when changing web design preferences. CS I M70IYSSIKS R214IG102 I BS0 #d66632 R 203 I G222 I B193 #c bdecl C89I M 741 Y 44 I K36 R39IGSS I B83 #273a53 5Item 9.a. - Page 15 CALIFORNIA Asset Creation Photos and videos are key to selling a destination. We had the pleasure of hosting our first photo shoot featuring two out of three personas. Here is a taste of the new visual direction for Arroyo Grande. 6 Item 9.a. - Page 16 7Item 9.a. - Page 17 Personas What Matters to Eric? Eric likes to stay busy. When he has a free moment, he chases new experiences that make him feel connected to the outdoors. Eric has an open mind, looks for opportunities, and is known to decide at the last minute to travel for the weekend. He consumes media in the digital space and stays connected through social media, which is where he’ll learn about Arroyo Grande. Outdoor adventurers are a growing population, so this is an important audience for Arroyo Grande to learn to connect with. How Arroyo Grande Appeals to Eric Arroyo Grande may not be home to extreme outdoor adventures, but it’s a great place to recharge in the outdoors, with rolling hills on one side and beach towns on the other. Eric will enjoy the open space and the chance to get outside and bike – especially if the day ends with a hearty meal and a handcrafted beverage from one of Arroyo Grande’s restaurants. He’ll also appreciate the proximity to the beach and is likely to visit Lopez Lake for more outdoor experiences. We know it’s a lot more than demographics to understand the Arroyo Grande visitor profile. Verdin builds personas to craft messages and assets that are specific to their behaviors and interests with the goal of getting them to visit our destination. Leveraging the recent SLO CAL visitor study, the Verdin team developed the following three personas. On-the-Go Eric Seeks experiences that connect him with nature 8 Item 9.a. - Page 18 What Matters to Fiona? Fiona is always looking for new vacations where her family can spend time together and have a special getaway without traveling too far from home. A young mother, Fiona loves her family and wants her two kids to learn to love traveling the way she does. She stays connected to her friends and family on Instagram where she finds inspiration for activities, meals, activities and travel planning. She makes decisions based on reviews, her friends’ feedback, and what she perceives will bring her family closer together, and she’s always got her eye out for a good deal. How Arroyo Grande Appeals to Fiona Arroyo Grande has that “set apart” feeling that Fiona wants her family to have. The quaint Arroyo Grande Village, the swinging bridge, the historic buildings and the nearby beaches fulfill the types of things Fiona looks for when she plans trips. Fiona will travel with her family, which makes it more likely that she will spend money in the destination she visits. It’s important she knows that even if the beach is on the itiner- ary, they will enjoy staying in Arroyo Grande because of the family-friendly feel and the great restaurants (including a stop at Doc Burnstein’s, of course!). Arroyo Grande fits this mom’s criteria because it is safe, friendly and accessible. Family-Focused Fiona Seeks experiences that bring her family together 9Item 9.a. - Page 19 What Matters to Rachel? Rachel enjoys new experiences, but she’ll definitely do her research and planning. She looks for fresh ways to have comfortable and relaxing vacations that will allow her to connect with the people she cares about. When she finds a new favorite, whether a restaurant, hotel or winery, she will generously share it with her friends and family. Rachel likes to leave a vacation feeling revitalized. To accomplish that, she will do her research online before making reservations, so there is opportunity to reach her on multiple platforms and connect on an ongoing basis through social media and email marketing. How Arroyo Grande Appeals to Rachel With a higher household income, money doesn’t guide Rachel’s decisions as much as her perception of the best option. She makes decisions based on perceived quality and comfort. She will appreciate Arroyo Grande’s peaceful and beautiful setting, with the expanses of farmlands and vineyards. Rachel will enjoy the Arroyo Grande wine tasting experience, and it’s important for her to know she can have it all here without traveling to Paso Robles. She will enjoy bringing friends along to Arroyo Grande to stroll the historic streets, shop for antiques, eat dinner in the Village, grab a cocktail at Mason Bar, and perhaps catch a show at the Clark Center. Ready-to-Relax Rachel Seeks experiences that leave her refreshed and inspired 10 Item 9.a. - Page 20 Email Marketing Email marketing has been a great way to share the unique experiences of Arroyo Grande. Our newsletter is sent out the middle of each month on either a Tuesday or Thursday. We featured content based on: • A specific theme from Arroyo Grande’s key messaging points • Promote events, new happenings and local businesses that support tourism • Send email recipients to the website by highlighting activities, restaurants and accommodations that build interest in planning an Arroyo Grande getaway 2.8% average click thru rate2.8% average click rate Enewsletter Results: 720 email subscribers 6 distributed newsletters 31.2% average open rate 11Item 9.a. - Page 21 Spring is finally here and with zt comes.fun and fresh outdoor actit ities. With an average high of 68° during the spring season, Arroyo Grande is the perfect place to plan your spring getaway Enjoy the Fresh Spring Air Explore the Village Cruise through the downtown Village to discover unique shops , meet the chickens and roosters roaming the streets, and cross the historic swinging bridge . Don't forget to stop by the outdoor mural on the side of Mason Bar and Grill for a photo op! Soak Up the Sunshine Relax in the nice weather while you treat yourself to a delicious meal or tasty drink outdoors. Arroyo Grande offer a variety of restaurants, coffee shops and tasting rooms near the Village that have outdoor seating . Rooster Creek Tavern can even accommodate your furry friend! Enjoy Some Fresh Finds Weekly Farmer's Markets You can stock up every Wednesday morning starting at 8:30 in the Smart and Final parking lot on East Grand Avenue, or every Saturday afternoon from 12-2: Arroyo Grand e's Farmers' Markets locally grown fruits and veggies and freshly baked bread can be found at 30pm in Olohan Alley in the Village of Arroyo Grande. Social Media Engaging content on social media has helped Arroyo Grande continue to connect and interact with our audiences with the goal to build valuable relationships, create brand ambassadors and tell the story of this unique destination. Through social media, we: • Used videos to tell our stories, understanding that video shares emotion like no other medium • Shared local stories that highlight the friendly and historic character of Arroyo Grande • Focused on Facebook and Instagram to connect with our target personas • Shared user-generated content on Instagram to build our audience and showcase real a people’s experiences in the destination 738% increase in engagement 5,742 total engagements 4,313% increase in reach Facebook Results: Instagram Results: 5,855 followers 1,667 followers 12 Item 9.a. - Page 22 Website Increasing lodging occupancy hinges on the strength of our website. Digital communication sends visitors to the site, which plays a critical role in the decision to visit. We are planning a website overhaul in 2019 that includes a redesign with content updates, SEO improvements and functionality updates. • Added 29 events to the site • Revamped the events calendar • Content enhancements • Updated website with rebranded fonts, colors and photo assets • Updated lodging, dining, winery and activity list formats to be consistent Highlights: 13Item 9.a. - Page 23 WEBS ITE V ISITOR METRICS Total Visitors New Visitors (87.26%) Returning V isitors ( 12. 74%) Total Page Views Total Sessions i https:/Jwww.vlsltarroyogrande.org m Apps a worq....;;g Cl D Act1~ifl 8,617 7,902 1,154 32,525 9,0S6 NUMBER OF SESSIONS INCREASED BY t 130.61% SINCE PREVIOUS PERIOD . :JI~ s1-Granue HOME STAY ONE PlJl'I SP MNTS mE110NS @ © @) t ,,,.,,. Paid Media We’ve studied the research. We’ve identified our audiences. In the paid media plan, we have determined where we’ll reach these potential travelers. Destination marketing is all about the right message, to the right person, on the right channel, at the right time. The message and the medium must feel highly personalized. We launched our first media campaign in February 2019, targeting the "Family Fiona" and "Relaxed Rachel" personas. We will begin running the outdoor adventure creative in the spring. Below is the media plan being executed this fiscal year. February - June Platform Target Region Target Behaviors*February March April May June Totals Outdoor Adventurer Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Biking, Hiking, Kayak, Surfing, Golf, Beach, Sailing $0 $0 $0 $2,955 $2,955 $5,910 Relaxation Seeker Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Wine, Beer, Food, Shopping, History, Relaxing Outdoor Fun $0 $2,200 $2,200 $2,000 $1,100 $7,500 Family Focused Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Kid Activites, Food, Wine, Beer, Outdoor Fun, Events $0 $2,200 $2,200 $2,000 $1,100 $7,500 Boosted Posts Boosted Posts $300 $300 $300 $300 $300 $1,500 Nature Lover Biking, Hiking, Kayak, Surfing, Golf $0 $0 $0 $3,154 $3,145 $6,299 Relaxation Seeker Wine, Beer, Food, Shopping, History, Relaxing Outdoor Fun $0 $2,800 $3,750 $3,300 $1,600 $11,450 Family Focused Kid Activites, Food, Wine, Beer, Outdoor Fun, Events $0 $2,800 $3,750 $3,300 $1,600 $11,450 Based in clients approval $0 $5,600 $7,500 $9,754 $6,345 $29,199 $300 $4,700 $4,700 $7,255 $5,455 $22,410 $13,391 $5,070 $2,471 $5,070 $4,771 $10,300 $16,050 $22,079 $11,800 $65,000 * Examples of behaviors, not a complete list Programmatic Video/Animated Facebook and Instagram Ads Reactive Advertising Budget SLO Visitors Guide 2019 Travel 50 & Beyond CCTC Co-op Grand Total $2000 $2,000 $1,850 $2,471 $2000 $2000 $1,850 CMSF Showcase of Cities Strawberry Festival South County Visitor’s Guide $4,471 $0 $3,850 $5,070 $0 2019 Media Plan 14 Item 9.a. - Page 24 Our major tactic for 2018-2019 was leveraging Arroyo Grande’s existing partnership with SLO CAL. SLO CAL has been making a long-term investment to support visitors to our county in shoulder and off-peak seasons, and Arroyo Grande’s public relations efforts have complemented this effort. By continuing to partner with SLO CAL, Arroyo Grande will be able to increase earned media and exposure. Highlights: Public Relations Marketing Specialist, Chelsea Modlin and Ashlee Akers, VP of Client Services with Verdin, visited and introduced themselves to each lodging partner on September 18, 2018. They delivered 90-day highlight letter featuring all that was accomplished in the first 90 days of working with Verdin. Partnerships: Through our partnership with SLO CAL, Verdin will host five journalists at Ember in April 2019 as part of the SLO CAL Crafted FAM Tour. The Central Coast Tourism Council (CCTC) is a marketing organization that promotes the Central Coast of California. We submitted content on behalf of Arroyo Grande for the following marketing topics: • Fall events • Outdoor activities • Spring Events • Murals 15Item 9.a. - Page 25 SAN LUIS OBISPO COUNTY CALIFORNIA ® ~ COAST The Original Road Trip 16 Item 9.a. - Page 26 J\rroyo ~ ~Granae CALIFORNIA Addendum 17Item 9.a. - Page 27 BRAND REPORT VISIT ARROYO GRANDE November 13, 2018 COMPETITIVE ANALYSIS Messaging and Content GO GOLETA https://www.gogoleta.com/ Areas of Expertise: • Beaches • Spa & wellness • Golf & outdoor recreation • Art & history • Shopping • Camping Tag Line: On the coast. Down to earth. Messaging Examples: • You want to go to a place that beckons with adventure and discovery. A place that offers epic days full of enjoyment that end with feet kicked up as the sun sinks low. A place that is on the coast and down to earth, with wide-open beaches and hidden gems. Welcome to Goleta — where you GO for fun! • The climate and location make for the perfect playground, with temperatures warm enough to be outside all year long, and a list of things to do that includes cycling, world-class surfing, stand-up paddleboarding, hiking, camping, and golf. • True relaxation is the name of the game here in Goleta, California—the west coast home to down to earth, coastal bliss. • Between the rolling emerald hills of its golf courses, roaring ocean waves and rejuvenating year-round sunshine, Goleta sets the standard for what laid-back vacationing should be. And, when you add the city’s vibrant breweries and eateries to the mix, it’s easy to see why a Goleta Style day is a perfect one. SANTA YNEZ https://www.visitsyv.com/ Areas of Expertise: • Wine • Arts & culture • Shopping • Spa & wellness • Accessibility & proximity to points of interest • Outdoors & recreational activities • Chumash Casino Tag Line: A sophisticated cowboy town. Item 9.a. - Page 28 Messaging Examples: • The Santa Ynez Valley offers six unique communities to explore, a multitude of gorgeous vineyards and wineries, delicious restaurants and much more. We have everything you need to get started on planning the perfect Santa Ynez Valley vacation. • In the vintage township of Santa Ynez (population 4,418), it’s sometimes hard to tell if it’s 2014 or 1884 with its period-style false-front building facades housing shops, saloons, feed stores and random horses hitched to posts. However, this rather sophisticated cowboy town also boasts plenty of conveniences for modern-day trail riders. A variety of restaurants serve up delicious options from casual burgers, pancakes, and waffles (beloved by locals), to steaks, seafood, regional Italian fare, Latin fusion and locavore cuisine. Modern shops and galleries line streets with horseshoe embedded crosswalks. • Don’t miss the Santa Ynez Valley Historical Society Museum and Parks-Janeway Carriage House for a fascinating does of Old West heritage and myriad events year-round such as the Vaquero Show & Sale in November. The Chumash Casino Resort is adjacent to the township with 24/7 gaming, live entertainment, dining and a luxurious hotel. Old Santa Ynez Day every June is just one fun time to visit, when the town celebrates with a street fair, parade and country-western entertainment. Cyclists gravitate to Santa Ynez as well for a world-class training center, tours or just the chance to ride a bike along serene country roads – there’s plenty to see and do in the town that gave the Valley its name. SONOMA https://www.sonomacounty.com/ Areas of Expertise: • Food & wine • Arts & culture • Ecotourism • Spas & wellness • Shopping • Ballooning • Golf & outdoor recreation • Camping • LGBT-friendly Tag Line: Life opens up Messaging Examples: • In Sonoma County, there’s always a place at our table. A place to connect with the land. And also with each other. All just 45 minutes north of San Francisco. Discover one of California’s top food and wine destinations, home to more than 425 wineries ranging from rustic to regal. Hike among towering redwoods, cruise along rugged Pacific coastline and get to know inviting small towns. Or, just sit back and take it all in. Because here, you’re free to go your own way. And we wouldn’t have it any other way. Life opens up in Sonoma County. Welcome to a world where flavors are collected as souvenirs and shared as heirlooms, and where the dishes we create are expressions of our joie de vivre. • Explore and enjoy diverse activities in San Francisco's wine country. Experience arts and culture, outdoor activities in the redwoods, whale watching along the coast, or take a hike in the magnificent state and regional parks. • From wine lovers to nature enthusiasts, from families to couples on a romantic getaway, Sonoma County offers something for everyone. Item 9.a. - Page 29 GO GOLETA VISIT SANTA YNEZ VALLEY VISIT SONOMA TOURISM LANDSCAPE FOR VISIT ARROYO GRANDE The Go Goleta logomark is playful and unrefined feeling, and it’s paired with a higher-end looking handwritten script. The two elements are contradictory, but overall work to present Go Goleta professionally. The visual identity is quite clean and though there is a lot of imagery and movement on their site, there is warmth and personality missing. The website feels like it’s for a resort or golf club. Visit Santa Ynez Valley gives the visitor an appropriate expectation and provides a sense of place. Starting with the logo, a visitor gets a peek at what the Santa Ynez Valley looks and feels like. The website shows custom photography with people enjoying the area authentically that can be no where else but in Santa Ynez Valley. The color palette for this visual identity is unique. The Visit Sonoma County visual identity is stark and overly clean. Blue is known to have an appetite suppressant quality, which is not ideal for a region known for wine and food. The typography is inconsistent throughout their materials which makes the identity come off unprofessional. Photography and videography is lacking the personal experience and could easily pass as stock. Item 9.a. - Page 30 •• 11 • •• ON THE COAST. DOWN TO EARTH . A CALIFO NIA LOGO COLOR WEBSITE IMAGE ANALYSIS FOR VISIT ARROYO GRANDE Opportunities: Through use of strong typography and design symbolism, delight the potential visitor by creating a visual identity that gives the visitor a special sense of place. Create a visual identity that is easy to use across platforms so professionalism and consistency are a part of the first impression a visitor has when interracting with materials. Opportunities: Create a palette that feels unique to Arroyo Grande, one that brings the vibrancy of the area forward so the visitor knows this is a place unlike any other. Include more colors in the color palette to properly express the personality of the destination. Opportunities: Incorporate updated identity for cohesive brand identity. Update website to include more personality through colors, textures, graphics and custom, experiential photography featuring people that give the visitor a sense of what it’s like to visit Arroyo Grande. Where you are today: A place to visit that is centrally located, close to all Central Coast attractions and popular with locals. Where you want to be : A Central Coast destination that offers its own unique charm, one that should not be passed up for a more well-known destination in the area. How to get there: Develop a compelling visual identity that expresses the one-of-a-kind aspects of Arroyo Grande that vistors are already looking for when choosing a destination. Item 9.a. - Page 31 .. -· .. t (805) 541-9005 f (805) 541-9007 3580 Sacramento Drive #110, San Luis Obispo, CA 93401 VERDINMARKETING.COM BRAND MAP BRAND EXPLANATION (INTERNAL STRATEGIC CHOICES) Brand Attributes Functional Benefits Emotional Benefits · Events and Festivals · Swinging Bridge · Roosters · Village · Centrally Located · Wineries · Lopez Lake/ Vista Lago · Clark Center · Variety of Restaurants · Agriculture/ Rutiz Farms · Historic · Outdoor Access · Weather · Antique Shops · Entertainment · Pet/ Family-Friendly · Unique Character/Eclectic · Iconic/ Non-Commercial · Choices for Every Palette · Culture · Water Sports/ Nature · Wild Life · Clean Air and Sunshine · Easy Access to Wide Variety of Experiences · Tasting/ Shopping · Biking/Hiking/Camping · Happiness · Relaxed · Connected · Casual · Warm · Comfort · Loved · Inclusive · Easy · Carefree · Safe · Delighted · Light and Free Brand Reputation Brand Promise Arroyo Grande is a historic, inviting town with budget- friendly accommodations and accessible experiences. The village is a key selling point and brings people to the city. Arroyo Grande is growing and strives to become vibrant destination. Arroyo Grande promises to provide a warm and welcoming environment, rich in unique adventures, to day-trippers and overnight guests alike. BRAND POSITIONING STATEMENT For families, outdoor adventurers and culture lovers, Arroyo Grande is the down-to-earth, welcoming hub among other destinations because of its heritage and unique character. Item 9.a. - Page 32 VERD i\l A VIS.ON FOR YOUR BRAND Arroyo Grande TBIDBudget: $149,000 | Updated4/15/2019 DETAILED SPENDINGBilledBilledBilledBilledBilledBilledBilledBilledBilledProjectedProjectedProjectedDESCRIPTIONBUDGETJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALIntake, Marketing Plan, Reporting$6,5003,573.502,086.40 679.70160.40 6,500.00 Planning, Meetings and Reporting$12,000751.301,238.001,480.20796.201,137.001,415.201,078.00841.20879.20883.70900.00600.00 12,000.00 Creative Development$30,000 238.401,168.403,517.708,383.208,815.253,082.303,593.201,201.55 30,000.00 Photo/Video Assets$3,000 1,624.341,375.66 3,000.00 Public Relations$3,000 360.00082.80669.901,887.30 3,000.00 Web Updates$5,000 1,567.401,049.82400.20220.80027.60856.62873.20 4,995.64 E-Newsletter$9,000 072.50816.50167.40608.601,277.401,223.301,292.701,234.301,200.001,107.30 9,000.00 Social Media$18,500 954.181,882.751,733.101,096.601,337.901,467.801,996.442,022.421,981.142,027.672,000.00 18,500.00 Media Planning$6,000 499.20 076.80245.20184.60371.40495.20855.101,300.00972.501,000.00 6,000.00 Advertising$56,000 - Facebook/Instagram4,597.02 4,597.02 Facebook boosted posts 147.01149.66173.87182.34203.31201.36200.00200.00200.00 1,657.55 Digital advertising5,807.75 5,807.75 SLOCAL Visitor's Guide2,470.592,470.59 2,470.59 CMSF Showcase of Cities$2,000104.002,000.00 2,104.00 Strawberry Festival$2,0002,000.00 2,000.00 South County Visitor's Guide$1,8501,850.00 1,850.00 CCTC Co-op Travel $5,0695,069.41SUMMARY: ACTUAL TO BUDGETBUDGETJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALMonthly Totals$149,000$4,324.80$6,345.18$4,992.28$4,210.86$5,511.46$5,007.44$9,442.13$15,638.24$24,949.14$12,104.80$8,893.37$6,108.85$107,528.55Adjustments Actual Totals$149,000$4,324.80$6,345.18$4,992.28$4,210.86$5,511.46$5,007.44$9,442.13$15,638.24$24,949.14$12,104.80$8,893.37$6,108.85$107,528.55No Charge/Added Value$945.00$67.50OUT OF SCOPE WORK BilledBilledBilledBilledBilledBilledProjectedProjectedProjectedDESCRIPTIONBUDGETJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALRebrand$12,850 1,156.803,902.206,719.90627.20 12,406.10 SUMMARY: ACTUAL TO BUDGETBUDGETJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALMonthly Totals$12,850$0.00$0.00$0.00$1,156.80$3,902.20$6,719.90$627.20$0.00$0.00$0.00$0.00$0.00$12,406.10Adjustments Actual Totals$12,850$0.00$0.00$0.00$1,156.80$3,902.20$6,719.90$627.20$0.00$0.00$0.00$0.00$0.00$12,406.10No Charge/Added Value Item 9.a. - Page 33 Cost-effective solutions to Arroyo Grande’s short-term rental 1 May, 2019 monitoring and compliance problems ATTACHMENT 2 Item 9.a. - Page 34 I' \J HOST COMPLIANCE Agenda •Introductions •USA and Arroyo Grande Specific Market Context •The Host Compliance Solution •Discussion and Next Steps 2 Item 9.a. - Page 35 HOST COMPLIANCE Team Introduction Ulrik Binzer Founder & CEO Classically trained entrepreneur and short-term rental compliance thought leader Golden Gate Capital McKinsey & Company Harvard Business School Royal Danish Army Paul Hetherington Chief Commercial Officer 20 years of local government software sales experience iCompass Technologies Sierra Wireless Recon Instruments Siemens British Columbia Institute of Technology David Marcus Co-Founder & CTO Seasoned software development and geospatial data science expert Nielsen Analytic Consulting Hewitt Associates DwellAware aboutLife California Institute of Technology Item 9.a. - Page 36 4 Almost 60 leading cities and counties in California are looking to Host Compliance for guidance, data and solutions to their short-term rental challenges Check https://hostcompliance.com/clients/ for updates Carmel Valley Division City of Napa Marin County City of Albany City of Newport Beach Mariposa County City of Alhambra City of Oceanside Mendocino County City of Atascadero City of Orinda Mono County City of Avalon City of Pasadena Monterey County City of Benicia City of Petaluma Napa County City of Berkeley City of Piedmont Nevada County City of Buena Park City of Pismo Beach Placer County City of Carlsbad City of Redding San Mateo County City of Carmel-by-the-Sea City of Redwood City Santa Barbara County City of Claremont City of San Diego Santa Cruz County City of Coronado City of San Luis Obispo Town of Los Altos Hills City of Dana Point City of San Rafael Town of Mammoth Lakes City of Encinitas City of South Lake Tahoe Town of Truckee City of Grass Valley City of Sunnyvale Town of Yucca Valley City of Hermosa Beach City of Temecula Tuolumne County City of Imperial Beach City of West Hollywood Ventura County City of Malibu City of Yorba Linda City of Mill Valley Del Norte County City of Monterey Madera County Item 9.a. - Page 37 HOST COMPLIANCE Agenda •Introductions •USA and Arroyo Grande Specific Market Context •The Host Compliance Solution •Discussion and Next Steps 5 Item 9.a. - Page 38 HOST COMPLIANCE Tell us a bit about you, Arroyo Grande, and where you are in terms of regulating short-term rentals? 6 city My Item 9.a. - Page 39 ??? • • • .. 'J HOST COMPLIANCE What are Arroyo Grande’s most important goals as it relates to short-term rentals? 1.Reduce noise, parking, traffic and trash-problems 2.Eliminate party houses 3.Reduce STR’s impact on neighborhood character 4.Ensure building safety 5.Improve city’s responsiveness to neighbor complaints 6.Stem STR’s negative impact on affordable housing availability 7.Improve permit and tax compliance to increase tax revenue 8.Ensure a level playing field between law abiding traditional lodging providers and illegal short-term rentals 9.Reduce tension between short-term rental property owners and their neighbors 10. Send a clear message to citizens that the city takes the STR problems seriously 11. Other? 8 Item 9.a. - Page 40 HOST COMPLIANCE How big of a problem are short-term rentals in Arroyo Grande? Debate Temperature Complaints Many Hot Few Cold Minor Concern Problem Issue 9 Crisis Item 9.a. - Page 41 HOST COMPLIANCE LETTERS To The Editor 10 Market Context: AirBnb, VRBO and 125+ other vacation rental websites have turned vacation rentals into a booming (underground) economy… Sources: AirBnB, Expedia, TripAdvisor, Booking.com and Tripping.com 125+ other web platforms The # of short-term rental listings has grown 850% since 2011 Market is fragmenting Millions of STR listings 8.6 5.8 4.2 3.2 2.1 1.2 1.0 42% CAGR Item 9.a. - Page 42 9 8 7 6 5 4 0.8 3 1.2 2 1 0 2011 2012 2013 2014 2015 2016 ■ Airbnb ■ HomeAway ■ Booking.com ■ TripAdvisor ■ Other HOST COMPLIAN C E 0.8 1.5 Mar-18 @)airbnb d •• Dwellable VRBO" ~ ~acat ion Renta ls ~ HomeAway· I I ffOffi HomeZ:;:n~ .-. tnpp1ng ,.,,,.. ~ tra11tl@a ,, ,.~ lac.ti~ Vacation Rentals.com P,1rtof the Hom.,Aw.y F,mily - The explosive growth of short-term rentals has pushed local governments to rein in the practice and made it the single most controversial local issue in decades 11 In the last 12 month’s 9,189 news stories have covered this issue across the U.S. Item 9.a. - Page 43 Airbnb San Francisco bacl<lash: thousands petition for more oversight More the offervisi ones mo iiiHl·IM·iiil¥i Santa Monica Just Banned Airbnb's Biggest Moneymakers By Blanca Barragan I May 13, 2015, 12:0 4pm PDT f .,, ~ SHARI In Austin, A Boom In Short-Term Rentals Brings A Backlash February 9 , 2017 · 5:50 PM ET Heard on Al • WAD Kri st en H has lived f two-st ory "Ther e an s m all er ar buyi ng up Li ke m an) m a rketfo1 Political contests erupt as cities and hotel industry struggle to curb Airbnb By Robert McCartney Ol:lul.Je1 15, 2018 al 5:04 PM HOST COMPLIANCE …and in Arroyo Grande we have identified 110 listings, representing 90 unique rental units* Sources: Host Compliance proprietary data * Host Compliance's pricing is based on the count of listings and rental units that would need be to analyzed and monitored for compliance. In terms of listings, this number is 121 as we will expand our search area by several hundred yards beyond the borders of Arroyo Grande to capture all relevant listings. Short-term rentals in Arroyo Grande as of May, 2019 12 Item 9.a. - Page 44 Map Sat ell i te ES • H Beach o g l e HOST COMPLIAN C E • Show Polygon Show Polygon + 250m " . A Tripadvisor -owned P ricetin e -owned • w rt Q • @i3 Q F1 t es • • • • OAKS ·-• Arroyo c .. nde • ll • • ... • • • w n ~ • 9 • • • • .._~anc~ Vt LL AGE• --~ • 9 @;l • • = • Othe r J • Expedia-owned • Airbnb (§ + Rd Map data 3:2019 Google 500 m -----Tennsofuse Arroyo Grande Data Details 13 Item 9.a. - Page 45 HOST COMPLIANCE Media1n Nightly Rate (USD) $149 Listing Typ1es Unit Types S i ngle Fam'ily Home ■ Mllllti F mrly H e ■ U111trl "lfll om e Ty pe Pa rli al H omes En ·,e H m es ■ U , kn "lfll Room Ty pe 14 Arroyo Grande Historical Data Details 17.46% YoY Growth in Listings Item 9.a. - Page 46 Source: Host Compliance 80 70 60 50 30 20 10 0 2017 2018 • Listings HOST COMPLIANCE 15 Arroyo Grande Host Breakdown Details Item 9.a. - Page 47 TripAdvisor Owned Websites Expedia Owned Websites ~ HOST COMPLIANCE Platform Breakdown Airbnb The Good: Short-term rentals can drive significant economic growth.. 16 18,037 14,127 56 1,894 $34,907 Total TOT Additional spending 793 Rental income City share of sales tax Sales Tax Estimated Annual Economic Impact per STR in the City of San Diego Source: National University System Institute for Policy Research (October 2015) Item 9.a. - Page 48 ------------------------------------------------------------ " v' HOST COMPLIANCE The Bad: Short-term rentals can displace long -term tenants, alter the neighborhood character and raise legitimate parking, noise, safety, trash and fairness concerns Increased tourism can change the neighborhood character Visitors don't always know (or follow) local rules Short-term renters may not care about keeping good neighborly relations Increased occupancy can have negative trash related side-effects 17 Conversion of long-term rentals into STRs can affect housing availability Unfair competition from VRBOs can cause conflicts and hotel job losses Item 9.a. - Page 49 In some communities short-term rentals have caused significant neighborhood tension “It is loud, and there is live music and karaoke stuff, and it’s all done outside because of the pool. They’re out in front at 4 in the afternoon waiting for their Uber to come, drunk on the front lawn.” “Sometimes, when they are outside, they’re playing beer pong just wearing their underwear” “We did not buy our house to be living next to a hotel. Would you buy a home if you knew a hotel like this was operating next door, if you wanted to set your life up and raise a family?” Jessica C. Neufeld Hazel Old, age 11 Emmy Jodoin Source: New York Times article: “New Worry for Home Buyers: A Party House Next Door”, October 10, 2015 18 Item 9.a. - Page 50 HOST COMPLIANCE IN GENERAL LESS THAN 10% OF STR OWNERS VOLUNTARILY GET A PERMIT AND PAY ALL OF THEIR HOTEL TAXES Without proper enforcement, only a fraction of short-term rentals will get registered and pay their fair share of taxes Large potential for increasing permit fee and tax collection Item 9.a. - Page 51 ---------- HOST COMPLIANCE Unfortunately manual compliance monitoring and enforcement is ineffective and prohibitively expensive Rental property listings are spread across 100s of different websites Manually monitoring 100s of properties is practically impossible as listings are constantly added, changed or removed Address data is hidden from listings making it time-consuming or impossible to locate the exact properties and identify owners It is practically impossible to collect taxes as there is no easy way to find out how often the properties are rented and for how much The vacation rental platforms refuse to provide the detailed data necessary for enforcing local ordinances Manual compliance monitoring and complaint-based enforcement often leads to claims of selective enforcement 20 Item 9.a. - Page 52 HOST COMPLIANCE Agenda 21 •Introductions •USA and Arroyo Grande Specific Market Context •The Host Compliance Solution •Discussion and Next Steps Item 9.a. - Page 53 HOST COMPLIANCE 22 Post-Ordinance Services tailored to your timeline Online Ordinance Assistant tool Webinars Whitepaper Peer Introductions APA Short Term Rental Online Course Free draft review Consulting and facilitation Mobile Permitting and Registration Address Identification Compliance Monitoring Rental Activity Monitoring 24/7 Hotline Pre-Ordinance Item 9.a. - Page 54 HOST COMPLIANCE 23 •Address Identification: Online dashboard with complete address information and screenshots of all identifiable STRs in Arroyo Grande’s jurisdiction •Compliance Monitoring: Ongoing monitoring of STRs for zoning and permit compliance coupled with systematic outreach to illegal short-term rental operators (using Arroyo Grande’s form letters) •Rental Activity Monitoring and Tax Collection Support: Ongoing monitoring of Arroyo Grande’s STR listings for signs of rental activity. Enables data-informed tax compliance monitoring and other enforcement practices that require knowledge of STR activity level •Dedicated Hotline: 24/7 staffed telephone hotline for neighbors to report non-emergency STR problems •Mobile Enabled Permitting and Registration: Mobile/web forms and back-end systems for streamlining Arroyo Grande’s and required documents Ways we can help Item 9.a. - Page 55 HOST COMPLIANCE 24 To accommodate any budget, our services are priced based on the number of listings that needs to be monitored Note: The exact scope of work can be adjusted to meet Arroyo Grande’s exact monitoring needs in terms of geography, listing sites, listing types and other variables Address Identification $45.00 /yr $15.00 /yr $30.00 /yr $12.00 /yr Compliance Monitoring Rental Activity Monitoring 24/7 Dedicated Hotline Mobile Registration $55.56 /yr Item 9.a. - Page 56 HOST COMPLIANCE 25 Affordable modular pricing tailored to Arroyo Grande’s needs Note: Above pricing assumes 121 short-term rental listings and based in USD. Host Compliance would be happy to discuss alternative SOWs, contract terms, contract durations and pricing structures if that would be of interest. Address Identification $5,445 /yr $1,350 /yr $2,700 /yr $1,080 /yr Compliance Monitoring Rental Activity Monitoring 24/7 Dedicated Hotline Mobile Registration $5,000 /yr Item 9.a. - Page 57 HOST COMPLIANCE 29 Mobile Enabled Permitting and Registration: Simplify Arroyo Grande’s registration/permitting process and significantly reduce the administrative costs on the back-end Item 9.a. - Page 58 Permit Registration Form What is the property's parcel number? 123 -478765788 You can look up your parcel number on the tax assessor website. [ Ill press Enter I HOST COMPLIANCE Address Identification: Get weekly reports on Arroyo Grande’s short -term rental activity incl. complete address information and screenshots of all identifiable STRs 30 Item 9.a. - Page 59 Host Compliance Dashboard X + C i https://app.hostcompl iance.com/dashboard/address-identification 1505 STR Rental Units in or near Jurisdiction 67 STR Rental Units Added Last Month 93.0% STR Rental Units with Street Address Identified Listings and Rental Units Funne l Land Use Compliance Status Bedrooms / Bathrooms .IIDtdrllO!!IS{l'Mo) e 10e<1roo111(n•J e zc.tc1raoms(-J .Jc.tdfQO!ffll(l-) ·•t>fOl'llllffllilU'M,) •5•0fOl'll0lM{noJ e uMntl'IM[lll'Mol e LTR•STAUffln!15'"IO,nHrJIIISlfCtklnti,..1111J • ~Tll 134'.ngs In Of Mr Aa~ctlan (!.IU) • ~R Rti:...1 Ull,'!ll lru1rnur JUT!SOict:an{uosJ •IOf•TWlfOS'TRRt~aJU'll"..5 iAl'!SlfCtlll'l(l.1111] e compllutSTR(i.1111) e co111;11t1mtLTR(z:1J • Nat)'t'!Cta!ffll'WCSTA(nz) e 11<r.,-.tCtttr!ll!IWCLTll(oJ • !ia'KO....,..A'lti,1"11(1.Z) .MO"l-<11'11?'-'MUTll(CI • c c.rL'l!OOms (O'll,J e 1c.1:'ll'00111cn,,1 .,111t'lrOOmS[J1"1,) • Jlllt'll'Ollffl[a'II,] •••C.U'lfOo.,r,JIH .. ) .UIIUlll.,..,{lll 'llo) HOST COMPLIANCE • l Ma p Sat1elln1e -i -.....,,_~-....,_._ ~ .. o ~,,,:olJ--"•, ,.~ Go ... Listing types U.,.,,,a,r Q 0 •~p.-.i-..-,cu1MoJ e N1.m~l'1'1"f[II""] .\Jr,(1'0.,,(1 .. J Minimum Nights Stay 0 ,, ,,\, -·-~ 0 • P-lfQIKll"l'lf[•'ll,J e o:'ltll'ttto"'1f[U .. ) •u~ca-.J 0 ~ * - .,-------------- Listings I Week '\,, "',, • cot.•Pl'Allrw l,.ndus.r.gu,uons • NO!lf..COM=>LIAN-w ~ use reiiuJ1~~ • UNKN()Wl',I COM =>UANCE STATUS NOT YET IOEN"'"I F,EO I·- • ,r"'" Advertised Identified STR Rental Units in Jurisdiction / Week 0 Ml)'JHCIU AUjlUZClll ,,.,.,Ulllll ~c12:u, Mlyo:!l017 JLU5lllH 00:Hl!lll .Mrll!Ol:UI Api'OHCUI ,.,,ll,l':U,.11 ~1.llell.11 OKuz:u ... ..J X 31 Address Identification: Complete listing information and screenshots of all identifiable STRs Item 9.a. - Page 60 □ Mate~ property listing X C (D iframe.vacationrentalapi.com/property/6vEm6v3ucu7vMy+P?geoid=16000US0680588&key=! 0. * ■ ic., 8 H: Apps Saved Hot Topics -:~ ll'iJ CAL -•:.:-Asia Timezone £. Dnve ~ lnbox G sbk • sf.com Cal)' Code n NY HC , 0 Host Compliance 13733 Heidi Way, Truckee, CA, Un ited States VAl!O. 321.579566,1126883 ~, --.. ... ,t_ " :: -:.a_ Matched Detai ls Anatyst LYY3 Explanation 1-Jouse number w, ble 10 !,sting pho:o and fi..11 name m,:11ches tax records 8 Owner Name Match HOST COMPLIANCE Active • Identi fi ed v' i!) PR NT 9 " .... •· t 3737HaoiW., -~~ .J:.,.-_,.·:: f ' . -:. : :.:( . . -... ~- -~ Identified Addr~s 13733 He•dl Way. "'.'rvckee, CA. Un :,?Cl States Identified Unit Number Non e Identified Latitude, longitude 39 342317. -120 236335 Parcel Number 444600l000 ~r N11me SCH AEFER MAX W X I/ Matched property li sting X C I CD iframe.vacationrentalapi.com/property/6vEm6v3ucu7vMy+P?geoid=16000US0680588&key=! E). * I ■ ~ 8 H: Apps Sav~ Hot Topics •:~ Ell CAL .-:,,:. As ia Timezone £ Drive ~ lnbox G sbk • sf.com Cape Code n NY HC Li st ing Details Listing URL Listing Sta tus Host Compliance Listing ID Listing Title Listing Info Last Captured Sc reenshot last Captured Price https:, WMV.homeawaycom/Vaca11on- rental/p579566vtl • AC!IV€ hrna321.579 566.1126883 Mountain Hideaway With Modern Conven,ences Pet-Friendly. tl'ay06. 2017 May 04. 2017 Information Prov ided on Listi ng Contact Name Latitude, Longitude Minimum Stay(# of Nights) Max Sleeping Capacity(# of People) Number of Reviews Last Verified Stay Listing Screenshot History MaxScMe'1::-r 39342418. -120.2 36239 23 Mar2017 V,ew La:est Listing Screenshot 111 I I 1111 111 Ma rch0 Apri l 0 Owner Address 90 Fa1rOaks St San Francisco. CA 94110. US ReQistration / Permit Number 1064 Revenue Documented, Last 12 Months Estimated, Last 12 Months Timeline of Activity $2.000 $5.871 View the series of events and documema;,on pen:a ,nIng 10 this property l!l 2 Docu mented Stays March.2017 l!l 2 Docu mented Stays January,2017 11 First Warning Resend: Sent l!l i:I December 30th, 2016 11 First Warning: Sent l!l October 14th, 2016 l!l 1 Documented Stay SQptember, 2016 v Listing hma321.579566.1126883 Identified August 1st. 2016 • L,sting hma321.579566.1126883 First Crawled April 22nd, 2016 l!l 1 Documented Stay January,2016 • Listing hma321.579566.1126883 First Activity August 5th, 2015 □ X P-: m . Compliance Monitoring: Put Arroyo Grande’s outreach efforts on auto-pilot by outsourcing the mailing of notices to non-compliant short-term rental operators 32 Item 9.a. - Page 61 Tl"l'-o'NOFTRIK'J(~ 10 IL1 n.JCICC[ A R:PORT R.'\110 Tll..:K:C..CANtl:!lO! &UCAA~ GR.r.Nt -f'R!.T[ CT,\l 99·0 .sPRNGII U. )It AHCHC..~,,,,., .. ,Of 111•11•1 ~••11'""'•1 11111 1111111••111111 lll•1l•1•1•1•11 1111• 2<l18-11·03 Dear SHEARER GRANT F TRSTE ETM. I\ has come 10 our anenliOn lhal the property loca\.ed at 10015 Rock St Truckee , CA. l.nlec:1 Slates has been posted as avabble tor sho11-term rertal lhouc co~ w1111 tho Town of Tni<:kee's raqulren'81"11:S lnt.kldil'IQ ptopeny r~lll.aloll ana raport.OQ and rel"!'litlanCa DI taa. EneloWd Iii a SUN"5flot of one d 'fOJf ol1W'ol liStlng. fol thll p-operty Aaltteregr.Ceredowneroftheproperty WII bdy requealyouaubm:tlheenQONd property regrstta1:10n form upon receipt ol Iha i.tter In 1ddrt1011, piNH use the ltf\CI09ed lax r1tum fofTTI to rwpoft and rtmit the appropnale tax from the pefiod October 1, 201Sto CWTent ttthese taxes are reported arxl remiled by no later lhan 60 days tom rece~ ot hs ten.er 1he Town wtll waive penallles and lnlereSI due based on yo111ae1c 01 rOQl!ll'atton ana lin"lely report~ u y0u dO not compieta u11 reo~rabOn proeass and pr~ ptymen1, 1M Town wll Uileua!e Htlfflolted tal{U dlHI lndualr'lg penal11H •nd il'llfl'N end lmpoM !NII anoun1 klrc.ol«t,on Conllnutdnon-QMT1p•c.wl ratUI In 1Mpl~ of•l•n on 'fOS prt,penyblhe amot1nl:adue Beginning on Nowmbe1 10, 2018 1..,11 bertqulrtd 1on::~1de thepiopert)' Regj,&rallon Certllcate Number (RCN) on all onine rer1al llltwlg, If 11'11 property 1s ~lt'IQ ,_..,, tlltougn a pro.,.-,y maMgtffl•n1 company tne tl'ICIDMd fOfml ilft no1 necessary contact y0ur p..-op-,y ma~ c.omp,oy to.,,..,. con1pl1.t~ compbnc. .,ith lhDft. Kllffl ,.,...1 Nql.WIHT'ttl"tS •• utlmal..., Intl raspan1t>11,ty of I IMI property Clfl"I« ForquesUon1cr lyoubeh¥tyoi,,are rKeMngtt,11 lette-rln erroi-, ple-aMi;ontect us at IOTft\ownoft.tutkee com er 530-582 5290 Mor& lnlormotion regarding the dUIIM and obhgatlons of managing a .ahott-lcnn rental property In !he Town ol Truckee can be lOcaled at wn u::m09fltud\co comtfQT Sincfl"ely Adm111str11tive SeMUS Oepa-unent To,,nolTrueke-e 10113 TruckN Alrpon Road, TrudtN, CA Ntl1..J30I www.townoftruc kff.com NJrm1itr.lllOn. S30-S62-77001Faw_ S30-S32-noo1emo1 TOTCto.-oo('ruclieecom commu,-.ty Dhel0pmet1 530-682-7620 1Fair !>J0-5&2-78&&,.,,,ail GOO@tov.-not,,ud:e.com Mmal S81\IIC""'«liel9Abat~ 5:J0.582-7830 I Fae 5:J0.582-Ti&':J I"'"-" a,wn~tt,1/(JtM CCl'l'l Fiche• o.par1m.nt 6J0·660-2l2i i F•• !U0-650-2320 1 .,.,..;, ~~low"n101rud:H com HOST COMPLIANCE __ ._, ... ••-•• • ,._,.,r ... ._, ••-•· _.., .,.i. • --,J ................ , ................... --··· -__ ...... ,._,,._,., .. ___ .,._ ... ,._ ., ..... ,_ ............. _ ,,._ .,. ......... _ ~:;~t(~!}~~t~tz -·--... , .... _ ..................... _ .. , ,,. _ _. ... , .. _,.. .... , ..... c.-.••-•--- Rental Activity Monitoring: Easily identify tax fraud and prioritize and initiate tax audits by monitoring Arroyo Grande’s STR listings for signs of rental activity 33 Item 9.a. - Page 62 it Re ntal Units :: 4I binzer • HOST COMPLIANCE Q Qu ick Search Show ing 1 to 50 of 507 entries T [I] < ■ 2 3 4 11 > Host Pa rcel Land Use Has ldentificatio First First Last Mailability First Last Address lde ntifie Owner Listings Last Regist Most-Max Num AddMew Compli Number Compliance an n Status Activity ldentifie Posted/R Status Mailing Mailing d Unit Name Documen ration Likety Slee ber Comments ance Status Adve d eposted Date Date Number ted Stay Numb Jurisdic ping of Rental rtised er lion Capa Com Unit ID Listin city plain g ts zYMYaP NON -Yes Stre et More than Last 31 -More than Rental unit NIA NIA NI A NIA N/A Round 6 0 0 bqEuAA COMPLIAN T: address one year 60 days one year owner Lake 58gU Assessor identified; ago ago directly Hayward , WI town record Owner mailabl e 54843. USA identified identified and we don't find a registration 0RuYpM COMPLIANT: Yes Street Last181 -Last 31 -Last181 -Rental unit NIA NIA NI A NIA Round 0 0 PBGBFI There is a address 365 days 60 days 365 days owner Lake czRW valid identrfied; directly Hayward , WI town reg 1strat1on Owner mailable 54843 , USA identified retOkg COMPLIANT: Yes Street Last 61 -Last 31 -Last 61 -Rental unit NIA NIA N/A NIA Round 10 0 0 M81gpg There is a address 120 days 60 days 120 days own er Lake pMID valid identrfied; directly Hayward, WI town reg istration Owner mailable 54843. USA identified HOST COMPLIANCE Tax Audit Automation: Systematically request and collect data from property owners suspected of under-reporting taxes 34 Item 9.a. - Page 63 Short-term Rental Revenue Validation Form Please report each listing advertising your short-term rental. Listing Website: Homeaway I VRBO / VacationRentals .com ... 0 Listing Webpage: https:/twww.airbnb.com/rooms/12345 Listing Website: [ Tripadvisor / Flipkey • ] 0 Listing Webpage: htlps:/lwww.airbnb.com/rooms/12345 MMMM Back HOST COMPLIANCE 24/7 STR Hotline: Make it easy for neighbors to report, prove and resolve non-emergency STR related problems in real-time 35 Step 1 Concerned neighbor calls 24/7 short-term rental hotline Step 2 Complainant provides info on alleged violation and is asked to provide photo, video or other proof of alleged violation Step 3 If property is registered, Host Compliance immediately calls host to seek resolution Step 4 Problem solved or escalated – Complaints saved in database so serial offenders be held accountable We have received a compliant! Item 9.a. - Page 64 a!(' I .· rt HELP -•• ',', '.' ... ... .,. " \...,,' HOST COMPLIANCE Benefits to using Host Compliance’s services 37 Ensures fair, continuous and consistent compliance monitoring and enforcement Frees up valuable staff time that can be focused on higher-value added activities Minimizes noise, parking and trash violations Minimizes the impact on local law and code enforcement agencies as complaints are first handled by our 24/7 hotline and routed to the appropriate property owner before further enforcement actions are triggered Maximizes Arroyo Grande’s tax and permit fee collections REVENUE POSITIVE – in most cases, the additional permitting fees alone pays for Host Compliance’s services several times Requires NO up-front investment or complicated IT integration -> we can be up and running in a couple of weeks 6 MONTH UNCONDITIONAL MONEY BACK GUARANTEE! Item 9.a. - Page 65 HOST COMPLIANCE Agenda 38 •Introductions •USA and Arroyo Grande Specific Market Context •The Host Compliance Solution •Discussion and Next Steps Item 9.a. - Page 66 HOST COMPLIANCE Feedback 39 Item 9.a. - Page 67 HAT HOST COMPLIANCE Working backwards to a solution to Arroyo Grande’s STR problems 40 Item 9.a. - Page 68 ti ,, v' v' HOST COMPLIANCE Next Steps Send you this presentation Schedule all team meeting? Set timeline to decide on best solution for Arroyo Grande’s needs Confirm timing of possible rollout (needed to secure Arroyo Grande’s place in the queue) 41 Item 9.a. - Page 69 HOST COMPLIANCE Contact info Please feel free to contact us anytime if you have any questions about short-term rental regulation and how to best address the associated monitoring and enforcement challenges. 42 Kyle Salonga kyle@hostcompliance.com (415) 874-1783 Paul Hetherington paulh@hostcompliance.com (604) 763-7285 www.hostcompliance.com Item 9.a. - Page 70 HOST COMPLIANCE