CC 2020-08-25_08l Resolution Amending AGTBID Budget FY 2020-21
MEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, ACTING CITY MANAGER
WHITNEY MCDONALD, ACTING DEPUTY CITY MANAGER
BY: JESSICA MATSON, DEPUTY CITY CLERK
SUBJECT: CONSIDERATION OF A RESOLUTION AMENDING THE ARROYO
GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID)
FISCAL YEAR 2020-21 BUDGET
DATE: AUGUST 25, 2020
SUMMARY OF ACTION:
Consider an amendment to the FY 2020-21 AGTBID budget removing the City’s
contribution of $5,000 and increasing the use of AGTBID’s available fund balance by
$5,000.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The amendment to the FY 2020-21 AGTBID budget removing the City’s contribution of
$5,000 will reduce the AGTBID’s overall revenue, but will allow those funds to be utilized
by the City elsewhere. The reduction in revenue will be offset by an increase in the use
of AGTBID’s available fund balance. As of July 1st, 2020, the fund balance was
approximately $295,000.
RECOMMENDATION:
It is recommended the City Council adopt a Resolution amending the FY 2020-21
AGTBID budget eliminating the City’s $5,000 contribution and increasing the use of
AGTBID’s available fund balance by $5,000.
BACKGROUND:
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. The City Council also adopted a Resolution approving the AGTBID FY 2020-21
budget as amended by Council to remove the request for $30,000 by the South County
Chambers of Commerce (Chamber) and remove $7,500 from the Sponsorships category.
At that time, the Council recommended that Chamber staff bring back a presentation of
the tourism strategic plan at a future Council meeting to allow further consideration of the
Chamber’s funding request.
Item 8.l. - Page 1
CITY COUNCIL
CONSIDERATION OF AMENDED ARROYO GRANDE TOURISM BUSINESS
IMPROVEMENT DISTRICT (AGTBID) FISCAL YEAR 2020-21 BUDGET
AUGUST 25, 2020
PAGE 2
On July 28, 2020, the City Council received a presentation from the South County
Chambers of Commerce and representatives from Verdin Marketing and Coraggio Group
regarding the AGTBID Tourism Strategic Plan. At that time, Council also considered and
approved an amendment to the AGTBID FY 2020-21 budget to increase funding for the
Chamber to implement portions of the Strategic Plan. The proposed AGTBID FY 2020-
21 budget included a proposed $5,000 contribution from the City. This contribution has
been paid each year by the City from the City’s General Fund since the AGTBID was
formed. It is believed that the contribution was initially intended to provide seed money
for the TBID to help it get off the ground and become successful. During the discussion
of the AGTBID FY 2020-21 budget on July 28, 2020, Council expressed a desire to
eliminate the City’s $5,000 contribution. However, the motion to amend the budget did
not include the removal of the $5,000 contribution at that time.
At the August 11, 2020 regular meeting of the City Council, Councilmember Paulding
discussed the Council’s previous action regarding the amendment of the AGTBID budget
and the Council’s wishes to remove the City’s contribution because it no longer seemed
relevant due to the success and administration of the AGTBID. The Council concurred
and directed staff to place a further revision to the AGTIB FY 2020-21 budget on a future
City Council agenda for consideration.
ANALYSIS OF ISSUES:
The AGTBID has been in effect for almost seven years and has been very successful.
The AGTBID Advisory Board implements the programs and activities funded through the
AGTBID while the Chamber administers the program, ensuring that minimal staff time is
required by the City.
As discussed during Council’s consideration of the AGTIB FY 2020-21 budget on July 28,
2020, it is recommended that the $5,000 City contribution to the AGTBID budget be
removed so the funds can be utilized elsewhere. To balance the AGTBID budget’s
revenue against expenses, staff recommends appropriating $5,000 from the AGTBID’s
available fund balance. The total fund balance as of July is approximately $295,000.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt a Resolution amending the FY 2020-21 AGTBID budget, eliminating the City’s
contribution of $5,000 and appropriating $5,000 from the AGTBID fund balance;
2. Do not adopt a Resolution amending the FY 2020-21 AGTBID budget, eliminating
the City’s contribution of $5,000 to the AGTBID and appropriating $5,000 from the
fund balance; or
3. Provide direction to staff.
Item 8.l. - Page 2
CITY COUNCIL
CONSIDERATION OF AMENDED ARROYO GRANDE TOURISM BUSINESS
IMPROVEMENT DISTRICT (AGTBID) FISCAL YEAR 2020-21 BUDGET
AUGUST 25, 2020
PAGE 3
ADVANTAGES:
The recommendation will allow the City to retain $5,000 in its General Fund for use
elsewhere.
DISADVANTAGES:
Removing the City’s $5,000 contribution from the AGTBID FY 2020-21 budget will require
additional appropriations from AGTBID’s available fund balance.
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.
Attachments:
1. Minutes from the August 11, 2020 City Council Meeting
2. Amended AGTBID FY 2020-21 Budget and Proposed Amendment 2 to the
AGTBID FY 2020-21 Budget
Item 8.l. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING 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, on the expenditure of revenues derived from such assessments, and on the
programs, services, improvements, and activities intended to promote lodging establishments
within the AGTBID; 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, on May 26, 2020, the City Council adopted a Resolution confirming the 2020-21
fiscal year budget for the AGTBID; and
WHEREAS, on July 28, 2020, the City Council adopted a Resolution amending the 2020-21
fiscal year budget for the AGTBID; and
WHEREAS, the City Council desires to further amend the 2020-21 fiscal year budget for the
AGTBID to eliminate the City’s financial contribution to 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 amended FY 2020-21 budget for the AGTBID attached
hereto as Exhibit A.
Item 8.l. - Page 4
RESOLUTION NO.
PAGE 2
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 25th day of August, 2020.
Item 8.l. - Page 5
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 8.l. - Page 6
Approved Amendment 2 to FY 2020-21 AGTBID Budget
Fund balance is approximately $294,000 as of July 27, 2020
Revenue Source Amount
TBID Assessments 100,000.00$
Interest 500.00$
Chamber Contribution 5,000.00$
City Contribution
Appropriation from Fund Balance 125,000.00$
*removal of $5,000 City contribution
*additional $5,000 from fund balance to balance
Total Revenue 230,500.00$
Activity Amount Amount
Advertising
Consultant Services 85,500.00$ 500.00$
Photo/Video assets 10,000.00$ 10,000.00$
Advertising hard costs 64,500.00$
Website 6,500.00$
Sub-total Advertising 166,500.00$ 10,500.00$
Services & Supplies
City - Administrative 3,000.00$
Chamber - Contract 48,000.00$
Supplies, Domains 2,500.00$
Sub-total Services & Supplies 53,500.00$ 230,500.00$
CCTC (Memberships)
REVENUES
EXPENDITURES
Activity
Partnerships
Total Expenditures
Co-op/Sponsorships
Sub-total Partnership
EXHIBIT A
Item 8.l. - Page 7
Item 8.l. - Page 8
Minutes: City Council Meeting
Tuesday, August 11, 2020
ATTACHMENT 1
Page2
ayor Ray Russom thanked staff for the proactive efforts made to support local businesses and
sta d that the County is over the hospitalization threshold set by the State and that more
inform ·on will be forthcoming if any action is being taken.
som invited public comment. No public comments were received.
6.b. &E Regarding Public Safety Power Shutoffs.
Eric Daniels, PG&E Governme Relations Representative, gave a presentation on the
Community Wildfire Safety Program nd the factors that would require a Public Safety Power
Shutoff under certain weather condition · spoke about outreach and educational efforts PG&E
is undertaking to prepare customers in th vent of an extended power shut off; referenced
PG&E's website, www.pge.com/wildfiresafety, r obtaining important safety information about
wildfire prevention, emergency preparedness an upport; and responded to questions from
Council.
7. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Ray Russom invited public comment. Speaking from th ublic were Breanna Peterson,
regarding police system reform; Bonnie Ernst, Oceana Beach Com nity Association, regarding
an invitation to visit the area and see changes since the dunes hav een closed to off-road
vehicles; Glen Hoving, Village Glen Drive, commented on the Council's ap val to remove Liquid
Amber trees that are causing damage to City sidewalks. City Clerk Wetmore d into the record
written correspondence received from Billy Bins, Kenneth Price, and Randy Rus
public comments were received.
8. CONSENT AGENDA
Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from
the consent agenda for further discussion.
In response to a question from Council Member Paulding regarding Item 8.b. (Consideration of
Approval of Minutes) in reference to the motion to approve amendments to the Arroyo Grande
Tourism Business Improvement District (AGTBID) Fiscal Year 2020-21 Budget, City Attorney
Carmel clarified that the motion did not include removal of the City's $5,000 contribution to the
TBlD, and that to amend the budget further, would require the item to come back to the Council
for consideration on a future agenda. Following brief discussion, Council Member Paulding
requested, and Mayor Ray Russom concurred, to direct staff to bring the TBlD Budget Resolution
back to Council for further consideration.
Mayor Ray Russom invited public comment on the Consent Agenda. No public comments were
received.
Action: Council Member Paulding moved to approve Consent Agenda Items 8.a. through 8.d.,
with the recommended courses of action, and to direct staff to bring back the AGTBlD Budget
Resolution to the next regular meeting for consideration. Mayor Ray Russom secondep, and the
motion passed on the following roll-call vote:
Proposed Amendment 2 to FY 2020-21 AGTBID Budget
Fund balance is approximately $294,000 as of July 27, 2020
Revenue Source Amount
TBID Assessments 100,000.00$
Interest 500.00$
Chamber Contribution 5,000.00$
City Contribution *removal of $5,000 City contribution
Appropriation from Fund Balance 125,000.00$ *additional $5,000 from fund balance to balance the budget
Total Revenue 230,500.00$
Activity Amount Amount
Advertising
Consultant Services 85,500.00$ 500.00$
Photo/Video assets 10,000.00$ 10,000.00$
Advertising hard costs 64,500.00$
Website 6,500.00$
Sub-total Advertising 166,500.00$ 10,500.00$
Services & Supplies
City - Administrative 3,000.00$
Chamber - Contract 48,000.00$
Supplies, Domains 2,500.00$
Sub-total Services & Supplies 53,500.00$ 230,500.00$
Council Approved Amended FY 2020-21 AGTBID Budget (7/28/20)
Fund balance is approximately $294,000 as of July 27, 2020
Revenue Source Amount
TBID Assessments 100,000.00$
Interest 500.00$
Chamber Contribution 5,000.00$
City Contribution 5,000.00$
Appropriation from Fund Balance 120,000.00$ *additional $18,000 from fund balance
Total Revenue 230,500.00$
Activity Amount Amount
Advertising
Consultant Services 85,500.00$ 500.00$
Photo/Video assets 10,000.00$ 10,000.00$
Advertising hard costs 64,500.00$
Website 6,500.00$
Sub-total Advertising 166,500.00$ 10,500.00$
Services & Supplies
City - Administrative 3,000.00$
Chamber - Contract*48,000.00$
Supplies, Domains 2,500.00$
Sub-total Services & Supplies 53,500.00$ 230,500.00$
*additional $18,000 from fund balance
REVENUES
Partnerships
Activity
EXPENDITURES
CCTC (Memberships)
Total Expenditures
Co-op/Sponsorships (Public Relations)
Sub-total Partnerships
REVENUES
EXPENDITURES
Activity
Partnerships
CCTC (Memberships)
Co-op/Sponsorships (Public Relations)
Sub-total Partnerships
Total Expenditures
ATTACHMENT 2
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