CC 2021-09-14_08d AGTBID Budget Amendment_Christmas in the Village
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY MCDONALD, CITY MANAGER
BY: NICOLE VALENTINE, ADMINISTRATIVE SERVICES DIRECTOR
SUBJECT: CONSIDERATION OF APPROVAL OF A RESOLUTION AMENDING THE
ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT
(AGTBID) FISCAL YEAR 2021-22 BUDGET TO SPONSOR 2021
CHRISTMAS IN THE VILLAGE EVENTS
DATE: SEPTEMBER 14, 2021
SUMMARY OF ACTION:
Consider a recommendation from the Arroyo Grande Tourism Business Improvement
District (AGTBID) Advisory Board to adopt a resolution amending the FY 2021-22
AGTBID budget increasing the use of AGTBID’s available fund balance by $5,000 for
Sponsorship of 2021 Christmas in the Village Events requested by Arroyo Grande Village
Events.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The AGTBID FY 2021-22 estimated fund balance is approximately $250,000. The
amendment to the FY 2021-22 AGTBID budget in the amount of $5,000 would be funded
from the AGTBID fund balance. These funds were collected from lodging owners and
have not yet been applied to services.
RECOMMENDATION:
It is recommended the City Council adopt a Resolution approving a Budget Amendment
Request to the FY 2021-22 AGTBID budget increasing the use of AGTBID’s available
fund balance by $5,000 for sponsorship of 2021 Christmas in the Village Events.
BACKGROUND:
The Arroyo Grande Village Improvement Association (AGVIA) had organized and
facilitated Christmas in the Village Events for approximately 30 years. Christmas in the
Village typically occurs from the end of November until the first week in January. The
Christmas in the Village Events require the placing and maintenance of lights in the street
trees and on top of most buildings in the Village business district, amounting to more than
one mile of lights on top of buildings in the Village. There are also 52 trees that are
wrapped in lights for the holidays, from trunk to limbs. In addition, there are two large pine
trees at each end of the Village that are lit. Santa Claus has also attended the Village for
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION AMENDING THE ARROYO
GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) FISCAL YEAR
2021-22 BUDGET TO SPONSOR 2021 CHRISTMAS IN THE VILLAGE EVENTS
SEPTEMBER 14, 2021
PAGE 2
four days each week from Thanksgiving until Christmas. Typically, a parade is held on
the first Sunday after Thanksgiving, which ends in a tree lighting ceremony at the west
end of the Village. Also, a Christmas Concert is typically held at Heritage Square that
precedes the parade. These events and decorations set the scene for the Elegant
Christmas in the Village event that is traditionally held on the second Sunday after
Thanksgiving where most merchant business owners and staff dress up and provide food
and refreshments for residents and out-of-town guests, making this one of the busiest
promotional events of the year.
In 2019, the AGTBID contributed $10,000 in sponsorship funds to the AGVIA for the
Christmas in the Village Events as part of its regular operating budget. In recognition of
the sponsorship, the AGVIA provided Visit Arroyo Grande with two booths at the
Strawberry Festival on Memorial Day weekend, recognition on all published materials for
the Strawberry Festival, recognition in published materials for the annual Beer Feast,
recognition in Christmas in the Village flyers and posters, identification on a banner placed
on a light pole on Branch Street, and inclusion in the annual Village brochure. Since the
2019 Christmas in the Village Events, the AGVIA has ceased operating and no longer
provides funding for lighting or other holiday activities in the Village.
In 2020, the City Council contributed $8,000 towards holiday lighting in the Village utilizing
FY 2020-21 fund balance created by revenue from the CARES Act. When considering
this contribution, the City was conscious of the historical funding source for lighting of the
Village, which was impacted by the COVID-19 pandemic. The Arroyo Grande Strawberry
Festival is usually held on Memorial Day weekend, and a portion of the proceeds
generated from the festival previously provided funding for the annual holiday lighting in
the Village. The 2020 Strawberry Festival was unable to be held due to tourism
restrictions resulting from the COVID-19 pandemic. In consideration of the impacts of
COVID-19 and the benefits of holiday lighting in the Village to the economic prosperity of
the community, Council approved a one-time payment of $8,000 to the South County
Chambers of Commerce (Chamber) to pay for a portion of the costs associated with
installing holiday lights in the Village
On May 25, 2021, the City Council adopted a Resolution confirming the AGTBID Advisory
Board’s annual report and levying an annual assessment for the AGTBID for the 2021-22
fiscal year. The City Council also adopted a Resolution approving the AGTBID FY 2021-
22 budget as shown in the table below:
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION AMENDING THE ARROYO
GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) FISCAL YEAR
2021-22 BUDGET TO SPONSOR 2021 CHRISTMAS IN THE VILLAGE EVENTS
SEPTEMBER 14, 2021
PAGE 3
At the June 28, 2021 AGTBID Advisory Board meeting, the Board approved the use of
the Co-op/Sponsorship line item of $10,000 for FY 2021-22 to be used to participate in
the co-op opportunity available from Visit SLO CAL for its video asset shoot.
At the August 23, 2021 AGTBID Advisory Board meeting, the Board received a request
from Arroyo Grande Village Events to consider approval of funding in an amount not to
exceed $10,000 from the FY 2021-22 AGTBID Budget to sponsor the Christmas in the
Village Event in 2021 (Attachment 2).
After deliberation, the Advisory Board moved to request that the City Council approve an
amendment to the FY 2021-22 AGTBID Budget to increase Co-op/Sponsorship funding
by $5,000 for sponsorship of the Christmas in the Village Events.
ANALYSIS OF ISSUES:
Chapter 3.46 of the City’s Municipal Code and the provisions of the Parking and Business
Improvement Area Law of 1989 govern the City’s use of TBID funding. Section 3.46.030
includes the following language:
3.46.030 - Authorized uses.
This chapter is made and enacted pursuant to the provisions of the Parking
and Business Improvement Area Law of 1989 (Sections 36500 et seq., of
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION AMENDING THE ARROYO
GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) FISCAL YEAR
2021-22 BUDGET TO SPONSOR 2021 CHRISTMAS IN THE VILLAGE EVENTS
SEPTEMBER 14, 2021
PAGE 4
the Streets and Highways Code) (the "law"). The purpose of forming the
district as a business improvement area under the Parking and Business
Improvement Area Law of 1989 is 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. It is the intent of this chapter
to provide a supplemental source of funding for the promotion of lodging
operations in the AGTBID and it is not intended to supplant any other
existing sources of revenues that may be used by the city of Arroyo Grande
for the promotion of the lodging industry. The specific services, activities
and programs to be provided by the district are as follows:
A. The general promotion of lodging operations within the district is
to include costs as specified in the business plan to be adopted
annually;
B. The marketing of conference, group, and film business that
benefits the local lodging industry in the district;
C. The marketing of the district to the travel industry in order to
benefit the local lodging industry in the district;
D. Administration of the AGTBID, including collection and
enforcement of assessments and administration of any contracts that
the city enters into related to the AGTBID.
About 25% of retail business occurs during December. It is critical that the tradition of
Christmas in the Village continue to exist not only to benefit the businesses in the Village,
but also to ensure that visitors will look to the Village as a destination to enjoy the unique
ambiance, shop for the holidays and stay for the weekend in Arroyo Grande lodging
establishments.
Without the ongoing assistance of the AGVIA or the funding opportunities previously
provided by the Strawberry Festival, it is uncertain how lighting and other holiday-related
events in the Village will be funded or completed this year. The Chamber has stepped-in
to coordinate and host the Elegant Evening in the Village event traditionally held on the
first weekend of December, while also helping to coordinate efforts to hold the annual
Christmas Parade. Proceeds from the 2021 Elegant Evening event will be used to provide
funding for holiday lighting and events in the Village in 2022. In the meantime, Arroyo
Grande Village Events proposes to gather sponsorships and funding to support holiday
lighting and other Christmas events in the Village, such as Santa, for the 2021 holiday
season.
The request to the AGTBID Advisory Board explained that the Christmas in the Village
Events involves the following expenses:
• Santa - $1,300 to $1,500
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION AMENDING THE ARROYO
GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) FISCAL YEAR
2021-22 BUDGET TO SPONSOR 2021 CHRISTMAS IN THE VILLAGE EVENTS
SEPTEMBER 14, 2021
PAGE 5
• Central Coast Illumination - $10,000 (Lights, Decor, Labor)
o installation and removal - on Private Businesses and City Property
• Storage of Event Decor, Santa's House, Supplies including City property - $2,200
annually
• Candy Canes for Children - $200
• Entertainment - $200
• Supplies - $200
During the AGTBID Advisory Board discussion of Arroyo Grande Village Events’ request,
it was explained that discussions with individual business and property owners in the
Village have been ongoing to gather support for the holiday lighting and decorating efforts.
As indicated during the Advisory Board discussion, some businesses and/or property
owners have expressed concern regarding the costs, safety, and potential liability
involved with having the lights and decorations installed and operated on their buildings,
particularly given the age of some of the buildings. In addition, questions were raised
regarding the procurement process used to determine costs for the lighting and
decoration efforts, which has not been competitively bid in the past. Discussions also
occurred regarding the extent to which lighting remains on the buildings or trees, which
may minimize the overall costs of completing the decorations. At the conclusion of
deliberations, the AGTBID Advisory Board voted to request that the City Council approve
the use of $5,000 from the FY 2021-22 fund balance to help sponsor Arroyo Grande
Village Events’ Christmas in the Village Events and decorations. The proposed revised
budget is provided in Attachment 1.
ALTERNATIVES:
The following alternatives are provided for Council’s consideration:
1. Adopt a Resolution amending the FY 2021-22 AGTBID budget to appropriate
$5,000 from the AGTBID fund balance to sponsor the 2021 Christmas in the
Village Events as requested by Arroyo Grande Village Events.
2. Utilize fund balance from the General Fund to pay for a portion of the costs to
install lighting and decorations in the Village for the 2021 holiday season.
3. Direct staff to issue a request for proposals, or request that the Chamber, on behalf
of the AGTBID, issue a request for proposals, to install holiday lighting and
decorations in the Village for the 2021 holiday season and/or future holiday
seasons.
4. Do not approve the additional funding as requested by the AGTBID Board.
5. Provide other direction to staff.
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION AMENDING THE ARROYO
GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) FISCAL YEAR
2021-22 BUDGET TO SPONSOR 2021 CHRISTMAS IN THE VILLAGE EVENTS
SEPTEMBER 14, 2021
PAGE 6
ADVANTAGES:
Approving funding for the 2021 Christmas in the Village Events will help ensure that the
traditional lighting and decorations installed in the Village during the holidays will continue
to attract visitors to the Village and occupants to Arroyo Grande’s hotels.
DISADVANTAGES:
It is unclear the extent to which the use of AGTBID funding for the event will increase
lodging business in the City. It is also unclear whether the City will be requested to fund
future holiday decorations and lighting in the Village and elsewhere.
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 amending the FY 2021-22 AGTBID budget
2. August 23, 2021 AGTBID Advisory Board Staff Report
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING 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”) 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 26, 2020; 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, on May 25, 2021, the City Council adopted a Resolution adopting the 2021-22
fiscal year budget for the AGTBID; and
WHEREAS, the Advisory Board has recommended that the AGTBID 2021-22 fiscal year
budget include additional funding from Fund Balance to be paid to Arroyo Grande Village
Events for Sponsorship of 2021 Christmas in the Village Events.
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 amended 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:
Attachment 1
RESOLUTION NO.
PAGE 2
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 14th day of September, 2021.
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
FY 2021/22 AGTBID Budget
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$
Additional fund appropriation 5,000$
Total Revenue 234,500$
Activity Amount
Advertising
Consultant Services 85,500$
Photo/Video Assets 10,000$
Advertising Hard Costs 64,500$
Website 6,500$
Sub-total Advertising 166,500$
Services & Supplies
City - administrative 3,000$
Chamber - Contract admin. 42,000$
Supplies/Domains 2,500$
Vacation rental code compliance 5,000$
Sub-total Services & Supplies 52,500$
Membership & Subscriptions
CCTC 500$
Co-op/Sponsorships 10,000$
Christmas in the Village Sponsorship 5,000$
Sub-total Membership & Subs.15,500$
Total Expenditures 234,500$
REVENUES
EXPENDITURES
Exhibit A
ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT
(AG TBID) ADVISORY BOARD
AGENDA REPORT
TO: AG TBID Advisory Board
FROM: Jocelyn Brennan, President l CEO South County Chambers
MEETING OF: August 23, 2021
SUBJECT: Consider Approval of Funding from the FY 2021-22 AGTBID
Budget for an Amount Not to Exceed $10,000 for Sponsorship
of 2021 Christmas in the Village Event
RECOMMENDATION
That the AGTBID Advisory Board consider approval of funding in an amount not to exceed
$10,000 from the FY 2021-22 AGTBID Budget to sponsor the Christmas in the Village
event in 2021.
BACKGROUND
Arroyo Grande Village Events (AGV Events) plans to host and facilitate events enjoyed
by locals and thousands of returning visitors to the Historic Village of Arroyo Grande.
These events enhance our community as well as help to promote tourism and support of
our local businesses. The AGV Events is a newly formed organization supported by a
small group of volunteers.
DISCUSSION
AGV Events is requesting a $10,000 sponsorship to continue the tradition of Christmas
in the Village. This would begin after Thanksgiving into the New Year. A sponsorship
would fund Santa in the Village, create Santa's Cottage, and provide décor and lighting
throughout the Village. The sponsorship would include payment for all labor needed.
Santa will be at his cottage welcoming children to share their wish lists as well as walking
through the Village and businesses greeting visitors throughout December.
Every dollar is utilized to fund Christmas in the Village. Please refer to the sponsorship
request (Attachment 1) for further details.
Attachments:
1.Sponsorship request from Arroyo Grande Village Events
TBID Item 6 - Page 1
Attachment 2
Submission Date Jul 15, 2021 7:25 PM
Name of your organization Arroyo Grande Village Events
History and brief description of
your organization (500 words or
less)
We host and facilitate events enjoyed by locals and 1000s of returning visitors to
the Historic Village of Arroyo Grande. These events enhance our community as
well as help to promote tourism and support of our local businesses. The
AGVEvents is an organization supported by a small group of non-paid
volunteers.
Our request today is in hopes of carrying on the tradition of Christmas in the
Village. This would begin after Thanksgiving into the New Year. A sponsorship
would fund Santa to the Village, creating Santa's Cottage and providing decor
and lighting throughout the Village. This would include payment for all of the
labor needed as well.
Santa will be at his Cottage welcoming children to share their wish lists as well
as walking through the Village and businesses greeting visitors throughout
December.
We are hoping the TBID will consider a $10,000 sponsorship similar to your kind
generosity in 2019. Every dollar is utilized to fund Christmas in the Village.
Historically, the cost of our e orts towards Christmas in the Village is
approximately $14,000. We have other sponsors and fundraising events that
help cover additional expenses (entertainment, supplies, insurance, storage
rent, permits when needed...) of approximately $4000 annually.
Please let me know if you need additional information or if you have any
questions.
We greatly appreciate your consideration.
Name, location and date/s of
your event
Christmas in the Village End of November - Beginning of January
Point of contact for your event Gaea Powell
Email arroyograndevillage@gmail.com
Phone Number
Required permits for this event,
please provide status of permits
NA
Cost of this event (if it is a
ticketed event)
Free
Description of tourist attraction
record or potential, please
include percentage of in-county
vs. out-of-county attendees:
Santa and Christmas Lights in the Village is a long standing tradition that brings
in countless visitors to Arroyo Grande from surrounding areas as well as tourists.
This event provides a unique and charming experience for all, but particularly
for tourist coming in from Cities. The Historic Village provides an opportunity to
turn back time and enjoy a Christmas experience focused the simple joys and a
more human connection.
arroyograndevillage@gmail.com
TBID Item 6 - Page 2
ATTACHMENT 1
Gaea Powell
Description of any collaborative
efforts with other organizations
relative to this event:
Last year we were fortunate to have the City provide some of their State grant
money to pay for some of the lighting and labor. Our organization succeeded in
raising money for Santa and his House...
We host the Beer Feast in October which also helps us raise funds for Christmas
in the Village and Mullahey Ford, Chevy, Mason Bar and Grill and Rooster are
also sponsors.
We are also happy to help the Chamber with their e orts in hosting Elegant
Christmas weekend in the Village and our City's e orts (particularly the Rec
department) when needed.
The total amount requested,
budget including a prioritized
breakdown of individual line
items within that total.
Santa $1300 to $1500
Central Coast Illumination $10,000 (Lights, Decor, Labor) installation and
removal - on Private Businesses and City Property
Storage of Event Decor, Santa's House, Supplies including City property $2200
annually
Candy Canes for Children $200
Entertainment $200
Supplies $200
Safety plan (large special events
only)
It is an open air event from the end of November to Early January - no large
crowds at one time.
Description of your marketing
strategy and reach. Please
include how your organization
will include Visit Arroyo Grande
in your promotional marketing
and materials.
We will coordinate and collaborate with the SCCC and VAG on all marketing
e orts as well as with the Village and surrounding businesses (they will promote
Santa in the Village through Instagram, Facebook...).
Organizations and event URL's
and social media channels
https://www.facebook.com/AGVillageEvents
TBID Item 6 - Page 3
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