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CC 2021-05-25_09a AGTBID Annual AssessmentMEMORANDUM TO: CITY COUNCIL FROM: WHITNEY McDONALD, CITY MANAGER BY: JESSICA MATSON, LEGISLATIVE & INFORMATION SERVICES DIRECTOR/CITY CLERK SUBJECT: PUBLIC HEARING TO DISCUSS AND CONSIDER A RESOLUTION LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF A RESOLUTION ADOPTING THE FISCAL YEAR 2021- 22 BUDGET D ATE: MAY 25, 2021 SUMMARY OF ACTION: Conduct the public hearing to levy an annual assessment for Fiscal Year 2021-22 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 2021-22 budget for the AGTBID. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Based on the anticipated year-end results for FY 2020-21, the assessment expected to be collected in FY 2021-22 totals approximately $136,000. TBID assessments are projected to be lower than previous years due to COVID-19’s impact on tourism but we are projecting a 9% increase compared to FY 2020-21. The AGTBID budget provides $5,000 to the City for vacation rental code compliance services. 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 2021-22; 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 FY 2021-22; and 4) Adopt a Resolution approving the FY 2021-22 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 PUBLIC HEARING TO DISCUSS AND CONSIDER A RESOLUTION LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF A RESOLUTION ADOPTING THE FISCAL YEAR 2021-22 BUDGET MAY 25, 2021 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 27, 2021 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 27, 2021, the City Council adopted a Resolution setting a public hearing for May 25, 2021. Additionally, the AGTBID Advisory Board has reviewed a preliminary budget for FY 2021- 22 based on activity during FY 2020-21. Due to the absence of a marketing firm in FY 2017-18, the AGTBID currently has an estimated fund balance of $250,000. In order to continue the momentum of the AGTBID’s tourism marketing efforts and to fund a portion of a vacation rental code compliance officer position, the AGTBID Advisory Board is recommending the approval of the FY 2021-22 budget that includes an appropriation of $92,750 from the fund balance into the AGTBID FY 2021-22 operating budget. Item 9.a. - Page 2 CITY COUNCIL PUBLIC HEARING TO DISCUSS AND CONSIDER A RESOLUTION LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF A RESOLUTION ADOPTING THE FISCAL YEAR 2021-22 BUDGET MAY 25, 2021 PAGE 3 Since 2018, the TBID has taken on a more proactive role to more successfully market Arroyo Grande. ANALYSIS OF ISSUES: The AGTBID has been in effect for almost eight 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, completion 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 2021-22 budget for the AGTBID, which is included in the attached Resolution. The budget incorporates additional funding requested by the City to fund a portion of a vacation rental code compliance officer. 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 2021-22 fiscal year and adopt a Resolution adopting the AGTBID FY 2021-22 budget; Item 9.a. - Page 3 CITY COUNCIL PUBLIC HEARING TO DISCUSS AND CONSIDER A RESOLUTION LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) AND ADOPTION OF A RESOLUTION ADOPTING THE FISCAL YEAR 2021-22 BUDGET MAY 25, 2021 PAGE 4 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 FY 2021-22; make modifications to the budget and adopt a Resolution approving the modified AGTBID budget for FY 2021-22; 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. 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. Proposed Resolution – Annual Assessment 2. Proposed Resolution – AGTBID FY 2021-22 Budget 3. Annual Report 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 2021-22 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 (“AGTBID” or “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 27, 2021 meeting; and WHEREAS, in accordance with the procedures contained in Streets and Highways Code Section 36534, on April 27, 2021, the City Council adopted a Resolution of Intention to levy an annual assessment for the Arroyo Grande Tourism Business Improvement District for the 2021-22 fiscal year and set a public hearing for May 25, 2021, 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 25, 2021, 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 recitals set forth herein are true, correct and incorporated herein by this reference. Attachment 1 Item 9.a. - Page 5 RESOLUTION NO. PAGE 2 SECTION 2. 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 36500 et seq. (Parking and Business Improvement Area Law of 1989) and levies assessments for fiscal year 2020-21 as further contained herein. SECTION 3. The report of the Arroyo Grande Tourism Business Improvement District Advisory Board is hereby confirmed. SECTION 4. The location and boundaries of the Arroyo Grande Tourism Business Improvement District are the boundaries of the City of Arroyo Grande. SECTION 5. 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 6. The assessment will be levied and allocated by the City of Arroyo Grande. SECTION 7. The assessment is to be levied on all “lodging,” as that term is defined in Arroyo Grande Municipal Code Section 3.46.020. SECTION 8. The assessment for fiscal year 2021-22 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 9. 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 25th day of May, 2021. Item 9.a. - Page 6 RESOLUTION NO. PAGE 3 ___________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ___ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: _____________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, 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 2021-22 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” or “District”) 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 22, 2021, the Advisory Board approved the FY 2020-21 AGTBID Annual Report; and WHEREAS, on April 27, 2021, the City Council approved the Advisory Board’s Annual Report and adopted a Resolution of Intention to levy and collect assessments for the 2021-22 fiscal year and to set the date for a public hearing for May 25, 2021; and WHEREAS, on May 25, 2021, the City Council adopted a Resolution confirming the Advisory Board’s Annual Report and levying an annual assessment for the AGTBID for the 2021-22 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, correct and incorporated herein by this reference. 2.The City Council hereby adopts the FY 2021-22 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 25th day of May, 2021. Attachment 2 Item 9.a. - Page 8 RESOLUTION NO. PAGE 2 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 9.a. - Page 9 FY 2021/22 AGTBID Budget (PROPOSED) Estimated Fund Balance for FY 2020/21 is $250,000 Revenue Source Amount TBID Assessments 136,250$ Interest 500$ Appropriation from fund balance 92,750$ Total Revenue 229,500$ Activity Amount Amount Advertising Consultant Services 85,500.00$ 500$ Photo/Video Assets 10,000.00$ 10,000.00$ Advertising Hard Costs 64,500.00$ 10,500$ Website 6,500.00$ Sub-total Advertising 166,500$ Services & Supplies 229,500$ City - administrative 3,000.00$ Chamber - Contract admin. 42,000.00$ Supplies/Domains 2,500.00$ Vacation rental code compliance $5,000 Sub-total Services & Supplies 52,500$ CCTC Total Expenditures Co-op/Sponsorships Sub-total Membership & Subs. REVENUES Membership & Subscriptions Activity EXPENDITURES EXHIBIT A Item 9.a. - Page 10 Annual Report | 2020–2021 1 Attachment 3 Item 9.a. - Page 11 Overview and Goals 3 Strategic Plan 4 Completed Initiatives 5 Personas 6 Destination Campaigns 9 Results at a Glance 10 Email Marketing 11 Social Media 12 Paid Media 13 Outreach to Local Lodging Partners 14 Public Relations & Partnerships 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% assessment administered by lodging partners for this purpose. 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 In August 2020, the AGTBID finalized their three-year strategic plan defining key imperatives, objectives to measure and initiatives to execute. This plan will guide all future marketing efforts and direct the AGTBID as an organization. Vision Mission Position A thriving community rooted in authentic hospitality and nourished by a strong economy To market Arroyo Grande as a desirable travel destination, create memorable experiences and support a prosperous economy and community Visit Arroyo Grande is the city’s primary source for destination marketing services and tourism leadership. We are: • Storytellers of the Arroyo Grande tourism experience • Providers of tourism related information and data • Collaborators championing the value of tourism and supporting key tourism drivers • Stewards balancing the benefits of tourism with Arroyo Grande’s quality of life Values Reputation • Truth • Excellence • Te amwork • Community • Impact • Transparent • Forward-thinking • Reliable • Humble • Partners Imperatives Objectives Initiatives Support the Destination in Tourism Recovery and Strengthen Organizational Capacity for Future Impact • Recover/Achieve 2019 Occupancy Rate • Increase Staffing budget • Align on and implement tiered re-opening marketing and communication plan with key partners and stakeholders • Advocate for organizational capacity to ensure the resiliency of AG’s tourism economy • Enhance the tourism industry’s position and importance in AG’s economic recovery Increase Brand Awareness as a Central California Destination of Choice • Increase share of county visitor volume • Increase use of shared brand assets • Differentiate AG brand's position in the larger SLO CAL travel market • Create a content library and tool kit to influence a unified brand approach • Pursue opportunities for collaborative and aligned promotional partnerships and messaging Ensure the Quality of our Brand Promise and Visitor Experience • Increase number of visitor hours in market • Increase length of stay • Create a framework to evaluate and promote events that generate new and repeat visitors to the destination • Encourage the availability of downtown and highlight opportunities • Design attractive trip itineraries to drive visitation to AG’s portfolio of experiences Expand Stakeholder and Community Engagement to Create a Collaborative and Supportive Tourism Industry • Increase representation of lodging partners on the Board • Grow stakeholder participation • Increase resident approval of tourism • 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 with key governmental, businesses and community decision makers and leaders 2021–2024 Strategic Plan 4 Item 9.a. - Page 14 Completed Initiatives As a strategic plan initiative, AGTBID developed a content library that unified its brand and can be shared with partners to help tell the story of Arroyo Grande. This included photography, brand guidelines, logos, social media handles and hashtags. Another initiative completed this fiscal year were trip itineraries to help drive visitation to Arroyo Grande experiences. To view the itineraries visit the below links: Outdoor Adventures—visitarroyogrande.org/outdoor-itinerary/ Family Fun—visitarroyogrande.org/family-itinerary/ 5Item 9.a. - Page 15 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 is 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 takes 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 6 Item 9.a. - Page 16 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, 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 itinerary, 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 7Item 9.a. - Page 17 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 bring 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 8 Item 9.a. - Page 18 Verdin created a series of digital ads and placed them programmatically and on social media to build brand awareness for Visit Arroyo Grande and to get more heads in beds within city limits. Our design team developed several motion graphics, a cost-effective way to attract key audiences’ attention through movement and inspirational messaging about the unique travel opportunities Arroyo Grande has to offer. Destination Campaigns Fresh The Fresh campaign was placed on hold while leisure travel was more restricted. During that time, two photoshoots were conducted focusing on the family and relaxed traveler personas. Hiking in wine country and Biddle Park, fishing at Lopez lake, picnics at Heritage Park, as well as u-pick experiences at Rutiz Farms were featured. The campaign launched in February 2021 as travel sentiment and vaccine distribution began to increase. Wander Here Due to the pandemic, the “Wander Here” campaign was paused in March of 2020. With assets only being in market for a short period of time, the motion graphic ads were re-launched in September 2020 which were still relevant and compelling to our target audiences. The “Wander Here” campaign targeted Visit Arroyo Grande’s On-the-Go Eric persona with dynamic imagery of hiking, biking and windsurfing attractions set to uplifting music, calling on people to come experience the outdoors. 9Item 9.a. - Page 19 Results at a Glance July–February YOY 19% increase in pages viewed per visit 48% increase in time on site Reached 881,796 through digital advertising Facebook 17,129 engagements 12,241 clicks from digital advertising Instagram 114% increase in followers Transient Occupancy Tax (TOT) July–January totals 2020-2021: $519,636 2019-2020: $684,104 2018-2019: $596,208 2017-2018: $576,450 2016-2017: $568,391 24% decrease in page views YOY 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. We feature content based on: • A specific theme from Arroyo Grande’s key messaging points • Promoting events, new happenings and local businesses that support tourism • Sending email recipients to the website by highlighting activities, restaurants and accommodations that build interest in planning an Arroyo Grande getaway Due to the pandemic, we paused the email marketing tactic until leisure travel was less restricted. It was re-engaged in February 2021. 2.4% average click rate Enewsletter Results: 1,066 email subscribers 2 distributed newsletters 24% average open rate 11Item 9.a. - Page 21 Social Media Engaging content on social media has helped Arroyo Grande continue to connect and interact with our audiences with the goals 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 people’s experiences in the destination 17,129 engagements 6,517 total engagements 186,627 impressions Facebook Results: Instagram Results: 6,275 followers 2,589 followers 12 Item 9.a. - Page 22 Paid Media Research and past paid media performance helped guide AGTBID to identify its target audience—those who expressed interest in Arroyo Grande experiences. In the paid media plan, it's been determined where to reach these potential travelers. Destination marketing is 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. Next fiscal year, AGTBID looks forward to drawing more visitors to Arroyo Grande through engaging advertising that speaks to the interests of its audiences. Below is the 2020–2021 media plan that was approved by the board. 2020–2021 Media Plan August - June Platform Target Region Target Behaviors OCT Totals Boosted Posts Boosted Posts Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire $0 $6,520 Relaxation Seeker Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Wine, Beer, Food, Shopping, History, Relaxing Outdoor Fun Biking, Hiking, Kayak, Surfing, Golf Kid activies, food, wine, beer, outdoor fun, events Fresno, Visalia, Bakersfield, LA Suburbs, Inland Empire Nature Lover $3,950 $26,145 $3,950 $7,900 Family Focused $0 $17,345 $6,000 Programmatic Video Reactive Opportunities Facebook & Instagram Ads SEP $120 $3,950 $3,950 $0 $8,020 AUG $200 $0 $0 $0 $0 $7,900 NOV $100 $2875 $0 $2875 $5,850 DEC $800 $900 $0 $0 $1,700 JAN $0 $0 $0 $0 $0 $63,910Grand Total FEB $300 $2,720 $0 $2,720 $5,740 MAR $1,500 $3,250 $0 $3,250 $8,000 APR $1,500 $3,250 $0 $3,250 $8,000 $2,750 $2,750 MAY $1,000 $0 $6,500 $2,500 $2,500 JUN $1,000 $0 $6,000 13Item 9.a. - Page 23 One key imperative of the Visit Arroyo Grande 2021–2024 Strategic Plan is to expand stakeholder and community engagement to create a collaborative and supportive tourism industry. The objectives of this imperative are to increase representation of lodging partners on the TBID Board, grow stakeholder participation, and increase resident approval of tourism. The initiatives are to 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, and increase the voice of tourism with key governmental, businesses and community decision makers and leaders. In line with these directives from the Strategic Plan, here are some examples of steps AGTBID took this past year to connect with its tourism partners: Outreach to Local Lodging Partners • Invited lodging partners to participate in the strategic planning virtual sessions with Coraggio Group • Checked in with lodging partners at the onset of COVID-19 and shared organizational updates • Updated lodging property contact list for future communications • Connected with The Agrarian General Manager to encourage participation and provide tourism marketing updates from Visit Arroyo Grande • Outreach to the Premier Inn who attended a recent AGTBID meeting and is working to secure a member of the team to attend future board meetings to keep connected • Arroyo Grande lodging partner communications via email regarding various topics such as COVID-19 restrictions, Village promotion, TBID Board vacancies, Visit Arroyo Grande social media and website links, marketing presentations, Visit SLO CAL communications, and invitations for future TBID meetings • Connected with four vacation rental property owners who expressed interest in serving on the board and attended at least one TBID meeting to date • Sent lodging properties a marketing toolkit created by Verdin to help unify the Visit Arroyo Grande brand that included professional photos, logos, hashtags and brand guidelines • Delivered South County Visitor & Community Guides and South County Maps to the larger Arroyo Grande hotels that was then accompanied by a letter that explained the value of the publications and links to digital versions • Updated lodging properties on the renovation and grand reopening of the California Welcome Center in Pismo Beach • Planned future Arroyo Grande hotel visits to meet the general manager, drop off a board application and answer questions 14 Item 9.a. - Page 24 This fiscal year the AGTBID continued to leverage its existing partnership with Visit SLO CAL. Visit SLO CAL has been making a long-term investment to support visitors to the county, and Arroyo Grande’s public relations efforts have complemented this initiative. By continuing to partner with Visit SLO CAL, Arroyo Grande will be able to increase earned media and exposure. Public Relations & Partnerships Partnerships: Visit SLO CAL is the non-profit countywide destination marketing and management organization for SLO CAL (San Luis Obispo County, CA). They are responsible for promoting a community as an attractive travel destination and enhancing its public image as a dynamic place to live and work. AGTBID submitted content about Arroyo Grande for use in media pitching and story lead generation. 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: • Webcams for virtual experiences • State Parks (Lopez Lake) • Social media content Visit Arroyo Grande worked with Coraggio Group, a strategy and organizational change management consulting group, to create a three-year tourism strategic plan. See addendum for final plan. 15Item 9.a. - Page 25 visitarroyogrande.org16 Item 9.a. - Page 26 Addendum 17Item 9.a. - Page 27 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.a. - Page 28