CC 2020-04-28_11a AGTBID Annual Report and Assessment
MEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
BY: JESSICA MATSON, DEPUTY CITY CLERK
SUBJECT: CONSIDERATION OF ANNUAL REPORT AND ADOPTION OF
RESOLUTION OF INTENTION FOR LEVY OF ANNUAL ASSESSMENTS
FOR ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT
DISTRICT (AGTBID)
DATE: APRIL 28, 2020
SUMMARY OF ACTION:
Receive and approve the Annual Report, which provides information on the activities
during the past year, and adopt a Resolution of Intention that would continue the levy of
annual assessments for Arroyo Grande Tourism Business Improvement District (AGTBID
or District) for another year.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Based on the anticipated year-end results for 2019-20 and taking into account COVID-19
related losses, the assessments expected to be collected total approximately $165,000.
The AGTBID budget provides $3,000 to the City to cover the City’s administrative costs
associated with collecting and disbursing the assessments. 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:
The AGTBID Advisory Board recommends the City Council: 1) receive and approve the
Annual Report; 2) adopt a Resolution of Intention to levy and collect assessments within
the AGTBID area for Fiscal Year 2020-21 at the same rate as in Fiscal Year 2019-20;
and 3) set the date for the public hearing for May 26, 2020.
BACKGROUND:
In May 2013, the City Council adopted an Ordinance establishing the Arroyo Grande
Tourism Business Improvement District. The District 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 11.a. - Page 1
CITY COUNCIL
CONSIDERATION OF ANNUAL REPORT AND ADOPTION OF RESOLUTION OF
INTENTION FOR LEVY OF ANNUAL ASSESSMENTS FOR ARROYO GRANDE
TOURISM BUSINESS IMPROVEMENT DISTRICT
APRIL 28, 2020
PAGE 2
The purpose of forming the District was to provide revenue to defray the costs of services,
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. Assessments are levied on all lodging businesses within the District
boundaries and are 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 Advisory
Board has submitted the Annual Report (Attachment 1).
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 36535 for the annual
assessments 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 in order to receive any written or oral protests against the
continuation of the District as required by the applicable statute.
ANALYSIS OF ISSUES:
The AGTBID has been in effect for almost seven years and has been very successful. In
January 2018, the City Council combined the Tourism Marketing Committee, which was
coordinated by the Chamber of Commerce, and the Advisory Board, increasing the
number of members of the Advisory Board from a minimum of three (3) to not more than
nine (9). The Advisory Board implements the programs and activities funded through the
AGTBID. The 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, a
monthly e-newsletter, advertising campaigns and other marketing efforts have been
developed and implemented.
Currently, digital advertising for Visit Arroyo Grande is paused due to the COVID-19
impact on tourism and event cancellations. Social media campaigns and e-newsletters
continue as planned with adjustments to messaging that are sensitive to the pandemic
Item 11.a. - Page 2
CITY COUNCIL
CONSIDERATION OF ANNUAL REPORT AND ADOPTION OF RESOLUTION OF
INTENTION FOR LEVY OF ANNUAL ASSESSMENTS FOR ARROYO GRANDE
TOURISM BUSINESS IMPROVEMENT DISTRICT
APRIL 28, 2020
PAGE 3
situation. Local lodging partners are reporting significant fallouts in room occupancy, so
unspent tourism marketing dollars will be allocated to the recovery period to welcome
tourists back to Arroyo Grande when the time is right.
On April 20, 2020, the Advisory Board reviewed and approved the Annual Report and has
forwarded it to the City Council for consideration. The Advisory Board recommends
extending the assessments and continuing the program. As noted above, following
approval of the Annual Report and adoption of the Resolution of Intention, the next step
in the process is to schedule a public hearing for May 26, 2020. The public hearing will
allow lodging businesses subject to the assessment 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 proposed
citywide 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.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendations;
2. Request changes or clarification to the Annual Report;
3. Do not approve staff’s recommendations; or
4. Provide staff other direction.
ADVANTAGES:
The recommendations will enable the City to extend 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 the recommended actions 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
Item 11.a. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DECLARING ITS INTENTION TO
CONTINUE THE ARROYO GRANDE TOURISM BUSINESS
IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS
FOR AND TO LEVY THE ASSESSMENTS FOR THE
DISTRICT, AND TO SET A DATE FOR THE PUBLIC
HEARING ON THE DISTRICT AND THE ASSESSMENT
FOR THE 2020-21 FISCAL YEAR
WHEREAS, the Parking and Business Improvement Area Law of 1989 (“PBIAL”),
sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish
business improvement districts for several purposes, one of which is promotion of
tourism; and
WHEREAS, the Arroyo Grande Tourism Business Improvement District was established
in May, 2013 and incorporated into the Arroyo Grande Municipal Code (“AGMC”) under
Chapter 3.46; and
WHEREAS, in accordance with the requirements of Streets and Highways Code Section
36530 and AGMC Section 3.46.100, the City Council appointed an Advisory Board to
provide oversight, guidance, and recommendations regarding the use of the assessment
funds; and
WHEREAS, the AGMC and the PBIAL require the Advisory Board to prepare and submit
an annual report (“Annual Report”) stating proposed changes, improvements and
activities for the fiscal year; and
WHEREAS, on April 20, 2020, the Advisory Board approved the Annual Report; and
WHEREAS, the Advisory Board Annual Report was filed and approved by the Arroyo
Grande City Council on April 28, 2020.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
Section 1. The City Council proposes to continue the Arroyo Grande Tourism Business
Improvement District (“District”) in accordance with AGMC Chapter 3.46
and Streets and Highways Code Sections 36500 et seq. and levy
assessments for fiscal year 2019-20.
Section 2. The Annual Report is on file with the City Clerk and contains a full and
detailed description of the improvements and activities to be provided for
fiscal year 2020-21. No changes to the District boundaries are proposed,
and the report includes the estimated cost of providing improvements and
activities for fiscal year 2020-21. The assessment is not proposed to be
increased.
Item 11.a. - Page 4
RESOLUTION NO.
PAGE 2
Section 3. The boundaries of the District are the boundaries of the City of Arroyo
Grande.
Section 4. The assessment levied by the District shall be used for activities and
programs promoting lodging businesses in the District through the
promotion of scenic, recreational, cultural and other attractions in the District
as a tourist destination, and as further set forth in AGMC Section 3.46.030.
Section 5. The assessment is proposed to be levied on all “lodging” businesses in the
District, as that term is defined in AGMC section 3.46.020, and allocated by
the City of Arroyo Grande.
Section 6. The assessment shall be based upon two percent (2%) of the rent charged
by the operator per occupied room per night for all transient occupancies
and shall be collected quarterly.
Section 7. New lodging businesses shall not be exempt from immediate assessment.
Section 8. A public hearing, held pursuant to AGMC Chapter 3.46 and Streets and
Highways Code Section 36535, to allow for comments and to receive written
and oral protests on the District and proposed assessment, is hereby set
for 6:00 p.m., Tuesday May 26, 2020, before the City Council of the City of
Arroyo Grande at the City Council Chambers at 215 E. Branch St., Arroyo
Grande, CA or via teleconference as follows:1-833-493-5844.
Section 9. At the public hearing, the testimony of all interested persons for or against
the continuation of the District, the boundaries of the District, or the
furnishing of specified types of improvements or activities will be heard. A
protest may be made orally or in writing by any interested person. However,
only written protests will be considered in determining if there is a
majority protest. The form and manner of protests shall comply with
Streets and Highways Code Sections 36524 and 36525.
Section 10. Any protest pertaining to the regularity or sufficiency of the proceedings
shall be in writing and clearly state the irregularity or defect to which
objection is made.
Written protests must be received by the City Clerk of the City of Arroyo
Grande before the close of the public hearing scheduled herein and may be
delivered or mailed to the City Clerk, City of Arroyo Grande, 300 East
Branch Street, Arroyo Grande, CA 93420. A written protest may be
withdrawn in writing at any time before the conclusion of the public hearing.
Each written protest shall contain a written description of the business in
which the person signing the protest is interested sufficient to identify the
business. If the person signing the protest is not shown on the official
Item 11.a. - Page 5
RESOLUTION NO.
PAGE 3
records of the City of Arroyo Grande as the owner of the business, then the
protest shall contain or be accompanied by written evidence that the person
is the owner of the business.
Section 11. If at the conclusion of the public hearing, there are of record, written protests
by the owners of lodging businesses within the District that will pay fifty
percent (50%) or more of the total assessments of the entire District, no
further proceedings to continue the District shall occur. New proceedings to
continue the District shall not be undertaken again for a period of at least
one (1) year from the date of the finding of a majority protest by the City
Council. If the majority of written protests are only as to an improvement or
activity proposed, then that type of improvement or activity shall not be
included in the District.
Section 12. The City Clerk is instructed to provide notice as required by AGMC Chapter
3.46 and Streets and Highways Code Section 36534. The City Clerk shall
give notice of the public hearing by causing this Resolution of Intention to
be published once in a newspaper of general circulation in the City no less
than seven (7) days before the public hearing.
On motion of Council Member _______, 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 April 2020.
Item 11.a. - Page 6
RESOLUTION NO.
PAGE 4
___________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 11.a. - Page 7
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Antique treasure trove
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Item 11.a. - Page 24
-.
SIQ . CAL ,
SAN LUIS OBISPO COUNTY
CALIFORNIA @
C
coragg1o group
The Original Road Trip
Item 11.a. - Page 25
CALIFORNIA
$$%-$3,
Item 11.a. - Page 26
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 11.a. - Page 27
VERD i\l
A VISION FOR YOUR BRAND
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Item 11.a. - Page 28