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CC 2020-05-26_09a AGTBID Annual AssessmentMEMORANDUM TO: CITY COUNCIL FROM: BILL ROBESON, ACTING CITY MANAGER BY: JESSICA MATSON, DEPUTY CITY CLERK SUBJECT: ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF THE FISCAL YEAR 2020-21 BUDGET DATE: MAY 26, 2020 SUMMARY OF ACTION: Conduct the public hearing to levy an annual assessment for Fiscal Year 2020-21 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 approve the FY 2020-21 budget for the AGTBID. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Based on the anticipated year-end results for 2019-20, the assessment expected to be collected totals approximately $100,000. TBID assessments are projected to be 50% lower in FY 2020-21 due to COVID-19’s impact on tourism. 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, the AGTBID assessment results in a net cost of $2,000 to the City. RECOMMENDATION: It is recommended the City Council: 1) Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the AGTBID and levy an annual assessment for Fiscal Year 2020-21; 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 2020-21 fiscal year; and 4) Adopt a Resolution approving the FY 2020-21 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, Item 9.a. - Page 1 CITY COUNCIL ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF AGTBID FISCAL YEAR 2020-21 BUDGET MAY 26, 2020 PAGE 2 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. 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 28, 2020 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 set 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 28, 2020, the City Council adopted a Resolution setting a public hearing for May 26, 2020. Additionally, the AGTBID Advisory Board has reviewed a preliminary budget for FY 2020- 21 based on activity during FY 2019-20. Due to the absence of a marketing firm in FY 2017-18, the AGTBID currently has an estimated fund balance of $295,000. In order to continue the momentum of the AGTBID’s tourism marketing efforts and to fund anticipated additional marketing opportunities, the AGTBID Advisory Board is recommending the approval of the FY 2020-21 budget that includes an appropriation of $139,500 from the fund balance into the AGTBID FY 2020-21 operating budget. Item 9.a. - Page 2 CITY COUNCIL ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF AGTBID FISCAL YEAR 2020-21 BUDGET MAY 26, 2020 PAGE 3 Since 2018, the TBID has taken on a more proactive role to more successfully market Arroyo Grande. This has resulted in increased occupancies and an approximate 14% revenue increase in Transient Occupancy Tax (TOT) for the City. The TBID recently finalized a three-year Arroyo Grande tourism strategic plan with the Coraggio Group (Attachment 4). Coraggio Group’s Insight Report shows the feedback from its recent survey of Arroyo Grande stakeholders (Attachment 5). One of the objectives identified was the current limited organizational capacity of the TBID. The South County Chamber of Commerce is requesting increased funding from the TBID in order to implement the goals of the strategic plan. The increased funding will be used for a dedicated person at the Chamber to implement the goals of the strategic plan, assist lodging operators with the impacts and requirements associated with the COVID-19 pandemic, and work with City staff on short term rental host compliance and tourism events. The Chamber will continue to manage the functions of TBID and work directly with the lodging operators, tourism-related businesses and organizations, marketing firm, board members, and City staff. The additional amount requested is $30,000 for Fiscal Year 2020-21. The preliminary budget includes the request for additional funding from the Chamber of Commerce. ANALYSIS OF ISSUES: The AGTBID has been in effect for almost seven years and has been very successful. 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, coordination of a tourism strategic plan, 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 to implement 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 recommends approval of the FY 2020-21 budget for the Item 9.a. - Page 3 CITY COUNCIL ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF AGTBID FISCAL YEAR 2020-21 BUDGET MAY 26, 2020 PAGE 4 AGTBID, which is included in the attached Resolution. The Budget incorporates additional funding requested by the Chamber of Commerce (Attachment 2) for costs associated with implementing the goals of the tourism strategic plan for Visit Arroyo Grande. The current Agreement with the Chamber of Commerce is included with this report (Attachment 3). Should the City Council approve the FY 2020-21 budget for the AGTBID, an updated agreement would be brought to City Council for consideration at a future meeting. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Conduct the public hearing, determine whether a legally sufficient number of protests have been made, and if a legally sufficient protest has not been made, adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2020-21 fiscal year and adopt a Resolution approving the AGTBID FY 2020-21 budget; 2. Conduct the public hearing, determine whether a legally sufficient number of protests have been made, and if a legally sufficient protest has not been made, adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2020-21 fiscal year; make modifications to the budget and adopt a Resolution approving the modified AGTBID budget for FY 2020- 21; or 3. Provide other direction to staff. 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 levying the assessment for another year are identified. Approving the FY 2020-21 budget, including the additional funding request from the Chamber of Commerce, will reduce the amount of funding for other potential marketing services. 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. Item 9.a. - Page 4 CITY COUNCIL ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF AGTBID FISCAL YEAR 2020-21 BUDGET MAY 26, 2020 PAGE 5 Attachments: 1. Annual Report 2. Request for Additional Funding from Chamber of Commerce 3. Current Agreement with the Chamber of Commerce 4. Coraggio Group Tourism Strategic Plan for Visit Arroyo Grande 5. Coraggio Group Insight Report Item 9.a. - Page 5 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 2020-21 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 28, 2020 meeting; and WHEREAS, in accordance with the procedures contained in Streets and Highways Code Section 36534, on April 28, 2020, the City Council adopted a Resolution of Intention to levy an annual assessment for the Arroyo Grande Tourism Business Improvement District for the 2020-21 fiscal year and set a public hearing for May 26, 2020, to consider the annual assessment and hear any oral testimony and receive any written protests; and WHEREAS, the City Council held a duly noticed Public Hearing on May 26, 2020, 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 6 RESOLUTION NO. PAGE 2 36500 et seq. (Parking and Business Improvement Area Law of 1989) and levies assessments for fiscal year 2020-21 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 2020-21 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 26th day of May, 2020. Item 9.a. - Page 7 RESOLUTION NO. PAGE 3 ___________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _____________________________________ BILL ROBESON, ACTING CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Item 9.a. - Page 8 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2020-21 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 April 20, 2020, the Advisory Board approved the FY 2019-20 AGTBID Annual Report; and WHEREAS, on April 28, 2020, the City Council approved the Advisory Board’s Annual Report and adopted a Resolution of Intention to levy and collect assessments for the 2020-21 fiscal year and to set the date for a public hearing for May 26, 2020; and WHEREAS, on May 26, 2020, the City Council adopted a Resolution confirming the Advisory Board’s Annual Report and levying an annual assessment for the AGTBID for the 2020-21 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 2020-21 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 26th day of May, 2020. Item 9.a. - Page 9 RESOLUTION NO. PAGE 2 ___________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _________________________________ BILL ROBESON, ACTING CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Item 9.a. - Page 10 FY 2020-21 AGTBID Budget (PROPOSED) Fund Balance for FY 2019-20 as of 4/23/20 is $295,669 Revenue Source Amount TBID Assessments 100,000.00$ Interest 500.00$ Chamber Contribution 5,000.00$ City Contribution 5,000.00$ Total Revenue 110,500.00$ Activity Amount Amount Advertising Consultant Services 85,500.00$ 500.00$ Photo/Video assets 10,000.00$ 17,500.00$ Advertising hard costs 64,500.00$ Website 6,500.00$ Sub-total Advertising 166,500.00$ 18,000.00$ Services & Supplies City - Administrative 3,000.00$ Chamber - Contract 60,000.00$ Supplies, Domains 2,500.00$ Sub-total Services & Supplies 65,500.00$ 250,000.00$ CCTC (Memberships) Total Expenditures Co-op/Sponsorships (Public Relations) Sub-total Partnerships REVENUES Partnerships Activity EXPENDITURES EXHIBIT A Item 9.a. - Page 11 --3!+%/.028  9   ATTACHMENT 1 Item 9.a. - Page 12 ,(,-$%")4 ))*(*%$6 ()%$)8 #" (!*$22 )+"*)*"$23 %" 24 )*25  26 +*(*% %" %$(*$() 27 +""*%$)J(*$()&) 28 $+#2: !"+%.&.-2%-21 Item 9.a. - Page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tem 9.a. - Page 14 Item 9.a. - Page 15 11%20%!2).- ))*)(!/*%)""$)*$*%$?*&")+(%%)*$""&%*%)%%* *+($%+($E*E%(&()%$?+(&($&%*%)%%**+($%+(*-%%*( &()%$)$*""-)&+*%$%"+*%* E2:%+*(!? ()*)*% *,)+"(*%$%(((%/%($%(312:@3131? Item 9.a. - Page 16 Item 9.a. - Page 17 %01.-!1 '''%&'# % ("!)*%)*/+)/?$)(#%#$*=))$-.&($)**#!#" %$$**%*%+*%%()?()$%&$#$="%%!)%(%&&%(*+$*)=$)!$%-$*%** ")*#$+**%*(,"%(*-!$? %$)+#)#$**")&$)*/)%$$* *(%+)%"#=-)-(H"""($%+*((%/%($?+*%%(,$*+(()((%-$ &%&+"*%$=)%*))$#&%(*$*+$%(((%/%($*%"($*%%$$*-*? #*%%#,# %"$$ &'# % ((%/%($)(*&"*%(($*%+*%%()-*(%""$"")%$%$)$*%-$)%$ *%*(?(-""$ %/*%&$)&$*$*%*%+*)$!D)&""/*/$) -*(*/#"$$(*,((%#%$%((%/%($H)()*+($*)? 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Item 9.a. - Page 21 %13+21!2!+!-#%  $"* )--%55%"4)1)21   "&() )-/!'%4)%51  !   $)')2!+!$4%02)1)-'),/0%11).-1 ''# "&() )-%-'!'%,%-2 "&() )-0%!#(   #+)#*1.-$)')2!+!$4%02)1)-',%11!'%1 &)* (% "&() )-&.++.5%01                                       "&())-  Item 9.a. - Page 22 ,!)+!0*%2)-' #"#(!*$)$(*-/*%)( *+$'+.&($)%((%/%($?+( $-)"**())$*%+**#"%#%$*? *+(%$*$*)%$< ; )&*#(%#((%/%($H)!/ #))$&%$*) ; (%#%*$,$*)=$-&&$$)$"%" +)$)))**)+&&%(**%+()# ; $$#"(&$*)*%*-)*/ "*$*,*)=()*+($*)$ %##%*%$)**+"$*()*$ &"$$$$((%/%($*-/  !4%0!'%#+)#*0!2% "*& ''%&( '&  %,!)+13"1#0)"%01 $)120)"32%$-%51+%22%01  !4%0!'%./%-0!2% Item 9.a. - Page 23 .#)!+%$)! $$%$*$*%$)%"#)"&((%/% ($%$*$+*%%$$*$$*(*-*%+( +$)-**%")*%+","+"("*%$)&)= (*($#))%()$*""*)*%(/%*) +$'+)*$*%$?(%+)%"#=-< ; ),%)*%*""%+()*%()=+$()*$$** ,%)()#%*%$"!$%%*(#+# ; ("%")*%()**"**($"/$ )*%((*(%((%/%($ ; %+)%$%%!$ $)*(#*%%$$* -*%+(*(*&()%$) ; (+)(E$(*%$*$*%$ $)*(#*% +"%+(+$$)%-)("&%&"H) .&($)$*)*$*%$ )-#0%!1%)-%-'!'%,%-2  2.2!+%-'!'%,%-21 )-#0%!1%)-0%!#( ##&( '& "&'%!&( '&  &.++.5%01  &.++.5%01 Item 9.a. - Page 24 %"1)2% $()$"%$%+&$/$)%$*)*($*%%+(-)*?*"%##+$*%$)$) ,)*%()*%*)*=-&"/)(*"(%"$*)%$*%,)*?(&"$$$-)*%,(+"$ 3131@3132**$"+)()$-*%$*$*+&*)=#&(%,#$*)$+$*%$"*/+&*)? ; ,$*)*%*)* ; %$*$*$$#$*) '*)#"&#% &'&'#%'%&%"'& Item 9.a. - Page 25 !)$%$)! H,)*+*()(?H,$*%+(+$)? $*&#&"$=-, *(#$-(-H""(*)&%*$*"*(,"()?)*$*%$#(!*$)""%+**(* #))=*%*(*&()%$=%$*(*$$"=**(**#?#))$*#+# #+)*""/&()%$"0?"%%!%(-(*%(-$#%(,)*%()*%((%/%($*(%+ $$,(*)$**)&!)*%*($*()*)?"%-)*312:@3131#&"$**-) &&(%,/*%(? - "    !! !#       ! !§ïÄĖĝŌÄò½Ơ0ĖÄĝúăăúòŁ §ïÄĖĝŌÄò½Ơ0ĖÄĝúăăúòŁ 0% 0%0% 0% 0&/)%%0'/-%% !"#0ĖÄĝúăƕ•Ýĝ§òݧƕ§ïÄĖĝŌÄò½ƕ MyĬ¶ĬĖ¶ĝƕ;úò§ú½"ùēÝĖÄ 0ĖÄĝúăƕ•Ýĝ§òݧƕ§ïÄĖĝŌÄò½ƕ MyĬ¶ĬĖ¶ĝƕ;úò§ú½"ùēÝĖÄ 0ĖÄĝúăƕ•Ýĝ§òݧƕ§ïÄĖĝŌÄò½ƕ MyĬ¶ĬĖ¶ĝƕ;úò§ú½"ùēÝĖÄ ÝïÝúÓƕ7ÝïÝúÓƕK§Ł§ïƕ yĬĖŌúÓƕ1ăòÒƕħ·Ùƕy§ÝòÝúÓ !"#0ĖÄĝúăƕ•Ýĝ§òݧƕ§ïÄĖĝŌÄò½ƕ MyĬ¶ĬĖ¶ĝƕ;úò§ú½"ùēÝĖÄ ÝïÝúÓƕ7ÝïÝúÓƕK§Ł§ïƕ yĬĖŌúÓƕ1ăòÒ KݽÒĖÝÄú½òŁ§·ĦÝĺÝÄĝƕ Ò§ùÝòŁĦĖ§ĺÄòƕ¶Ä§·ÙƕÒăă½ KݽÒĖÝÄú½òŁ§·ĦÝĺÝÄĝƕ Ò§ùÝòŁĦĖ§ĺÄòƕ¶Ä§·ÙƕÒăă½ –ÝúÄƕÄÄĖƕ0ăă½ƕ yÙăēēÝúÓƕ7ÝĝĦăĖŁƕ rÄò§ŀÝúÓ_ĬĦ½ăăĖ0Ĭú –ÝúÄƕÄÄĖƕ0ăă½ƕ yÙăēēÝúÓƕ7ÝĝĦăĖŁƕ rÄò§ŀÝúÓ_ĬĦ½ăăĖ0Ĭú 0'/,%% 0&/(*% 0&/'*% 0% 0%0-/*+% 0§ùÝòŁ0ă·ĬĝĽ 0ĖÄĝúăƕ•Ýĝ§òݧƕ§ïÄĖĝŌÄò½ƕ MyĬ¶ĬĖ¶ĝƕ;úò§ú½"ùēÝĖÄ 0% 0% 0% 0% 0%0(/'+% $!0% 0&/(*% 0&/'*% 0% 0%0'/+%% ăăĝĦĽoăĝĦĝ ăăĝĦĽoăĝĦĝ 0(%% 0(%% 0(%% 0% 0(%%0'/)%% !0% 0%0% 0% 0'/*%%0*/%%% 0*/,*% 0'/-,* 0'/(*% 0% 0%0&,/%+* 0§ùÝòŁ0ă·ĬĝĽ0% 0%0% 0% 0%0+/%.% 0ĖÄĝúăƕ•Ýĝ§òݧƕ§ïÄĖĝŌÄò½ƕ MyĬ¶ĬĖ¶ĝƕ;úò§ú½"ùēÝĖÄ $!0% 0'/-,* 0'/(*% 0% 0%0*/''* 0*/,*% 0*/,*% 0)/,%% 0% 0'/*%%0((/(-% 0(/%%% 0(/%%% 0'/-%%0%0&/,%%0&./+'% 0-/,*% 0-,*% 0,/*%% 0% 0)/'%%0*(/%%% Programmatic Video/Animated Grand Total Facebook & Instagram Ads 0" 0&/)%% 0% 0% 0% 0(%% 0'/*%% 0% 0% 0% 0'/*%% 0&/,%% 0)/'%%  0% 0&/&(% 0&/&(% 0% 0(%% 0% 0&/..* 0&/..* 0% 0(/..% 0'/*+% 0+/**%  0% 0&/&(% 0&/&(% 0% 0(%% 0% 0'/&%% 0'/&%% 0% 0)/'%% 0'/*+% 0+/,+%  0% 0&/%%% 0&/%%% 0% 0(%% 0% 0&/..* 0&/..* 0% 0(/..% 0'/(%% 0+/'.% –§ĖùĻħĦÙÄĖÓÄĦ§Ļ§Ł –§ĖùĻħĦÙÄĖÓÄĦ§Ļ§Ł  0% 0&/&(% 0&/&(% 0% 0(%% 0% 0&/..* 0&/..* 0% 0(/..% 0'/*+% 0+/**%  0% 0&/&(% 0&/&(% 0% 0(%% 0% 0'/&%% 0'/&%% 0% 0)/'%% 0'/*+% 0+/,+%  0% 0&/%%% 0&/%%% 0% 0(%% 0% 0&/..* 0&/..* 0% 0(/..% 0'/(%% 0+/'.% Item 9.a. - Page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tem 9.a. - Page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tem 9.a. - Page 28 Item 9.a. - Page 29 $$%-$3, Item 9.a. - Page 30 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 Benets Emotional Bene ts ·· 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 31 Page 1 of 2 In 2011, the City of Arroyo Grande formed a Tourism Business Improvement District (AGTBID). The AGTBID operates as a destination marketing organization under the name of Visit Arroyo Grande. Spearheaded by Arroyo Grande hoteliers, Visit Arroyo Grande is comprised of hotels and vacation rental/home stays. It is governed by a Board of Directors representing the diverse make-up of the Arroyo Grande hospitality industry. The purpose of the AGTBID is to promote the scenic, recreational, cultural, and other attractions in the district (the City of Arroyo Grande) as a tourist destination for the benefit of lodging operators. The South County Chambers of Commerce administers the Arroyo Grande Tourism Business Improvement District. This is an important role as the members who serve the board are volunteers, and the AGTBID administrator provides all support services needed for board meetings, committee meetings, local fund applications and any organizational leadership needed to complete the mission of the AGTBID successfully. Additionally, due to Brown Act requirements, the administrator is the key point of communication with the Board, its individual members, committee members, lodging operators and the public at large. The AGTBID has taken on a more proactive role to more successfully market Arroyo Grande. As the TBID has become more proactive and engaged the Chambers role in administering the TBID has been expanded. The AGTBID in partnership with the marketing agency of record, a consultant group, and stakeholders have created a three-year tourism strategic plan for Arroyo Grande. The Chamber is requesting increased funding from the TBID to implement this plan. The Chamber is requesting an additional $30,000 annually to administer the Arroyo Grande Tourism Business Improvement District. The increased funding will be used for a full time dedicated person at the Chamber to administer the daily functions of AGTBID, manage the AGTBID Board, manage social media platforms for Visit Arroyo Grande, to work directly with the firm and implement the strategic plan. Additional scope of work: Key elements of the strategic plan that the Chamber will lead include creating a content library and tool kit to influence a unified brand approach, pursue opportunities for collaborative and aligned promotional partnerships and messaging, create a framework to evaluate and promote events that generate new and repeat visitors to the destination, facilitate one signature tourism event for Arroyo Grande, encourage the availability of downtown and nightlight opportunities, design attractive trip itineraries to drive visitation to AG’s portfolio of experiences, create a stakeholder engagement and outreach campaign to educate and promote the value of the TBID to lodging partners, collaborate with stakeholders to design and expand co-operative marketing programs, increase the voice of tourism and its benefits with governmental, businesses, community leaders and residents. Work with short term vacation rentals, homestays, and Airbnb for transient occupancy tax, tourism marketing district and tourism business improvement district compliance. Continued scope of work: Facilitate AGTBID monthly meetings, communicate upcoming agenda items with AGTBID Board Members and marketing firm, ensure AGTBID Board quorum for future meetings, provide draft agenda, staff report and supporting documents for AGTBID meetings to City Clerk, provide draft minutes of AGTBID meetings to City Clerk, provide copies of the agenda for the AGTBID Board members, ensure compliance with Brown Act, ensure compliance of the Public Records Act, host Jocelyn Brennan | President | CEO | South County Chambers of Commerce jocelyn@southcountychambers.com | C: (805) 748-7630 | O: (805) 489-1488 |southcountychambers.com ATTACHMENT 2 Item 9.a. - Page 32 Page 2 of 2 AGTBID meetings and post agenda for public at meeting location 72 hours in advance, ensure TBID Board Members 700 Forms are current, ensure AGTBID is complaint with the city’s conflict of interest policy, facilitate all subcommittee and/or task force meetings, schedule and attend all Special AGTBID meetings, provide draft agenda and minutes related to any AGTBID Special Meetings, regularly communicate to lodging owners in the AGTBID District, schedule annual election of Chair and Vice Chair, work to fill any board vacancies, attend monthly Visit SLO Cal Tourism Marketing monthly meetings and report out to AGTBID, attend Central Coast Tourism Council annual meeting, communicate with TBID Board on ongoing tourism training and educational opportunities, communicate with TBID Board and marketing firm on event sponsorship opportunities, oversee monthly financials, process monthly TBID invoices for TBID fund expenditures, provide community calendar events to marketing firm for tourism marketing purposes, provide photos and other content to marketing firm for website and social media purposes, attend travel tradeshows and events as directed by the AGTBID and in collaboration with the marketing firm, ensure monthly reporting by marketing firm to lodging owners and City Council. Jocelyn Brennan | President | CEO | South County Chambers of Commerce jocelyn@southcountychambers.com | C: (805) 748-7630 | O: (805) 489-1488 |southcountychambers.com Item 9.a. - Page 33 ATTACHMENT 3 Item 9.a. - Page 34 Item 9.a. - Page 35 Item 9.a. - Page 36 Item 9.a. - Page 37 Item 9.a. - Page 38 Item 9.a. - Page 39 Item 9.a. - Page 40 Item 9.a. - Page 41 Item 9.a. - Page 42 Item 9.a. - Page 43 Item 9.a. - Page 44 Item 9.a. - Page 45 Item 9.a. - Page 46 Item 9.a. - Page 47 Item 9.a. - Page 48 Item 9.a. - Page 49 Item 9.a. - Page 50 Item 9.a. - Page 51 Item 9.a. - Page 52 Item 9.a. - Page 53         +#&%+ )+( #+  &%*+ !%  + #$!#%+ #(#%+ + &+ #%#$         %#' &%*# %&%% $!%%* &#$*$%#   * #% ## *  # $$#%#'$%% #% #)!#$$&!! #%!# $!# &$  * &%*$%## *  #$%%*,$!##*$ &# #$%% #%$#'$% &#$#$!#+ % #*%#$ %## *  #% &#$)!#+ # '#$ % &#$#% #% %+   #% #$! %'& % &#$$&!! #%*% &#$#'#$+ %(#$%%$ % &#$(%## *  #,$"&%*  "!! !!"  #& !! '!!&"!"!/ $*& * )%#-(/ #&'(#)( $  ! !!/ #&''&$$)#(-*'($&*$!)"/ #&')'$'&&#''('/ &#(( &#'%$'($##(!&& (&*!"& (/ &($#(#(!&&-#($$! (($#!)#)#&#%%&$/ )&')$%%$&()#('$&$!!$&(*#!#%&$"$($#!%&(#&'%'#"''# "! "!&"   !%/ #&'#)"&$*'($&$)&'#"& (/ #&'!#($'(-/ &(&"+$& ($*!)(#%&$"$(*#('((#&(#+#&%(*'($&'($('(#($#/ #$)&(*!!(-$$+#($+###(!($%%$&()#('/ '#((&(*(&%(#&&'($&**'(($#($ 0'%$&($!$$,%&#'% !"!&!!!!# "!#" " !&/ #&'&%&'#(($#$!$#%&(#&'$#( $&/ &$+'( $!&%&(%($#/ #&'&'#(%%&$*!$($)&'"/ &('( $!&#"#(#$)(&"%#($)(#%&$"$((*!)$(  ($!$#%&(#&'/ $!!$&(+('( $!&'($'##,%#$$%&(*"& (#%&$&"'/ #&'(*$$($)&'"+( -$*&#"#(!)'#'''#$"")#(-'$#" &'#!&'          / !#$##"%!"#((&&$%##"& (##$"")#($#%!#+( -%&(#&'#'( $!&'/ *$($&$&#.($#!%(-($#')&(&'!#-$ 0'($)&'"$#$"-/ ##(($)&'"#)'(&-0'%$'($##"%$&(## 0'$#$"&$*&-ATTACHMENT 4Item 9.a. - Page 54 Coraggio Group503.493.1452 | coraggiogroup.comPhoto credit: https://www.sellingpismobeach.comVisit Arroyo GrandeStrategic Planning Insights Report April 6, 2020ATTACHMENT 5Item 9.a. - Page 55 2Approach Methodology This report summarizes the data collection and outreach efforts conducted on behalf of Visit Arroyo Grande as the organization prepares to create its 2023 Strategic Plan. The purpose of this outreach was to stakeholder perception of the current state of tourism in Arroyo Grande and gain insights on potential priorities for the organization’s Strategic Plan. This report was developed by surveying Visit Arroyo Grande stakeholders on the following topics: This report highlights key themes identified from the survey results. Each theme is supported by survey data and relevant quotations. These themes were developed using the following methods: •Quantitative questions were analyzed using category means, percentage rates and frequencies. •Qualitative, open-ended questions were analyzed by assigning themes influenced by response content and Coraggio’s interpretation of those responses. 4%43%23%9%21%RespondentsBoard MemberCommunity MemberIndustry Partner/StakeholderLodging OwnerRestaurant/Store Owner•Strategic Guidance•Destination Brand•Role Importance and Effectiveness •Mission and Leadership •Tourism Drivers, Assets, and Experiences •Tourism Support and Enablers Item 9.a. - Page 56 3Key Themes1. Arroyo Grande is a destination anchored by its food & beverage opportunities, its access to outdoor recreation, and its small-town charm positioned between key metropolitans.2. Arroyo Grande’s brand is fixed. Focus on quality of experience is imperative.3. Visit Arroyo Grande’s role continues to be primarily a marketing organization purposed with driving brand awareness through marketing leadership.4. Events are seen as a key vehicle to driving visitation, opportunities exist to create and promote an expanded event portfolio. 5. Collaboration with local organizations and governments is wanted and necessary to improve the Arroyo Grande tourism experience; key areas include product development, small business support, and infrastructure investment.6. Limited nightlife, entertainment and retail options (downtown experiences) are barriers to growing Arroyo Grande’s tourism economy.7. Stakeholder and government engagement and communication is required to generate greater awareness and support of Visit Arroyo Grande’s efforts.Item 9.a. - Page 57 4Arroyo Grande: Current BrandWhat THREE words do you believe describe Arroyo Grande's brand as a destination today? What makes Arroyo Grande a unique destination today?•Arroyo Grande is seen as a charming, historic, small town experience on the Central Coast of California.•Its access to quality wine experiences and off the beaten path beach adventures are the complimentary assets to be leveraged.Key Takeaways:Item 9.a. - Page 58 5Arroyo Grande: Future BrandWhat THREE words would you use to describe Arroyo Grande's brand as a destination in the future? What would you like Arroyo Grande's brand to be?•The future brand of Arroyo Grande looks much like it does today.•Its small-town charm, coupled with quality wine and access to beach experiences, are core brand differentiators.•With a solid brand foundation, focus becomes oriented towards brand awareness.Key Takeaways:Item 9.a. - Page 59 6Strategic PrioritiesWhat do you believe are the THREE greatest strategic opportunities for Arroyo Grande as a destination?Key TakeawaysBrand Awareness (23 respondents):Many believe the most strategic thing Visit Arroyo Grande can do is promote the brand, as is.Food/Wine Tourism (20 respondents):Arroyo Grande is perceived to have quality food and wine offerings that could serve as a differentiator in its marketing efforts. Event Marketing/Creation (15 respondents):Events are believed to be a primary tool to attract visitors to Arroyo Grande. Promoting existing or partnering with stakeholders to create new events could be key tools in driving awareness and visitor traffic.Product Development & Business Support (12 respondents):Some stakeholders believe that a more diverse set of attractions (retail, cultural, etc.) could help better position Arroyo Grande as a travel destination. Catalyzing this effort lies in the evaluation of favorable, pro-business regulations that better incentivize entrepreneurship.Other (5-7 respondents):Sustainability/Stewardship, Transportation Management, Downtown ActivationItem 9.a. - Page 60 7Tourism ThreatsUsing the list below, what do you believe are the top THREE threats facing Arroyo Grande as a destination?• Aligning with strategic priorities, AG’s limited brand awareness is the destination’s #1 threat.• AG’s perceived lack of nightlife and entertainment also presents a barrier to growth in tourism, as it is a key monetizer and asset in any tourism market. Some mentioned a less than ideal downtown experience as something that may be supporting this threat.• California’s affordable housing issues and its perceived threat to tourism economies are felt in AG as well.•The destination believed public infrastructure could be a threat to tourism growth, a common issue among road trip markets.• California’s growth and status as America’s top vacation destination has increased competition among destinations within the state. Stakeholders believe this threat could be experience in AG.•The upcoming/arrived economic downturn is a threat to all destinations, AG is not immune and stakeholders are aware.Key Takeaways30% 30%28%23%21%19%16%0%5%10%15%20%25%30%35%Limited BrandAwarenessLimitedNightlife &EntertainmentAffordableHousingInsufficientPublicInfrastructureIncreasedCompetitionEconomicDownturnsInsufficientDestinationInformation &WayfindingTop Tourism Threats (+10%)Item 9.a. - Page 61 8Arroyo Grande Tourism Offering Rating:Using the scale below, please rate your perception of the quality of each area of Arroyo Grande's tourism offering.2.923.363.123.223.773.392.673.532.9412345RatingAverage Rating•The AG tourism experience is anchored in its Food, Wine, and Outdoor recreation opportunities.•Middle of the road lodging options, combined with food & beverage and outdoor recreation options may position AG as a viable basecamp to explore the broader central coast, but work is required.•Limited nightlife, entertainment, and retail opportunities may limit the full monetization potential of tourists in AG.•Attractions and events, foundational assets that attract visitation could also use improvement.•Destination information is often first point of contact with a visitor. Ensuring quality websites and engaging content is key to conversion.Key Takeaways:Item 9.a. - Page 62 9•Support for AG tourism is middle of the road and could use improvement across the board.•Stakeholder and resident support are foundational elements of a successful tourism industry and should be a focus.•Tourism funding could also be improved, but often correlates to the success of local marketing campaigns and resulting visitor traffic.•Improving wayfinding and signage, as well as visitor information is key in a road trip market with many competitive alternative visitation options.• Government support is the destination’s main support strength and should be leverage to improve other support structure areas.Key Takeaways3.272.523.263.003.093.003.142.912.7512345RatingAverage RatingArroyo Grande Tourism Support StructuresRate your perception of the quality of each area of Arroyo Grande's tourism support structure.Item 9.a. - Page 63 10Visit Arroyo Grande: Organizational ReputationWhat THREE words do you believe best describe Visit Arroyo Grande's reputation as organization?•Visit Arroyo Grande is a relatively unknown entity in the community.•The organization is friendly, collaborative and passionate about what they do.•Opportunities exists to better establish a vision for the destination, organize strategically, and communicate effectively.Key Takeaways:Item 9.a. - Page 64 11Visit Arroyo Grande’s Mission Please select your level of agreement with each statement•Many are not aware of Visit Arroyo Grande’s mission and purpose, yet it is seen as critical to a thriving tourism economy in AG.•Opportunities exist to better position the organization as the lead voice of the industry and communicate a purpose that rallies stakeholders to a common vision.Key Takeaways:3.134.203.5612345I feel I have anunderstanding of VisitArroyo Grande's primarymission/purposeVisit Arroyo Grande'smission/purpose is criticalto a thriving tourismeconomyVisit Arroyo Grande is thelead voice for the city'stourism industryItem 9.a. - Page 65 12Key TakeawaysMarketing Leadership:Visit Arroyo Grande’s main role and responsibility remains that of a traditional DMO, to provide destination marketing leadership in order to drive overnight stays and tax revenuesStakeholder Collaboration and Inclusion:Continuing to collaborate with local tourism stakeholders is also seen as a key role. Some believe expanding outreach to include a broader set of tourism stakeholders could be warranted.Event Promotion:Events continue to be a focal point of driving visitation. The creation, support, and promotion of said events is believed to be an opportunity for Visit Arroyo Grande Advocacy:Some stakeholders would like to see Visit Arroyo Grande take a position on the creation pro-business regulations, infrastructure investment, and product development - all supporting areas of a viable tourism economyVisit Arroyo Grande Roles and Responsibilities What THREE roles or responsibilities do you believe Visit Arroyo Grande should focus on providing to help its tourism stakeholders and support a thriving tourism industry?Item 9.a. - Page 66 503.493.1452 | coraggiogroup.com13Item 9.a. - Page 67 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.a. - Page 68