CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
6/27/2022
1 SUBJECT:
Conduct Public Hearing to Adopt a Resolution Approving the Annual Report from the Pacifica Hotel Business Improvement District as modified by City Council, Approving the Program Expenditures, and Assessing the Levy for the Fiscal Year 2022-23 at the same rates as in the Fiscal Year 2021-22.
RECOMMENDED ACTION:
1) Conduct the Public Hearing
2) Rule on Oral and Written protests, if any; and
3) Adopt a resolution approving the annual report of the Pacifica Hotel Business Improvement District Advisory Board, as amended, and continuing the assessments levied in 2021-22 without change in Fiscal Year 2022-23.
STAFF CONTACT:
Yulia Carter, Chief Financial Sustainability Officer
(650) 738-7402
[email protected]
BACKGROUND / DISCUSSION:
Pursuant to California Streets and Highways Code sections 36500 et. seq., the City Council of the City of Pacifica adopted Ordinance No. 714-C.S creating the Pacifica Hotel Business Improvement District and levying an annual assessment of $1.00 per room per day of occupancy on the hotels in the City. The Pacifica BID was established under the authority of the Parking and Business Improvement Area Law of 1989, which does not require identifying a "managing agency." Many Bay Area Cities with BIDs established under the same law manage their BID operations internally. However, the City Council has previously appointed the Chamber of Commerce as the BID Managing Agency. Currently, the Advisory Committee consists of but is not limited to one representative from each of the hotels, the managing director of the Pacifica Chamber of Commerce and Visitor Center, and one representative from the Chamber of Commerce Board of Directors.
On May 13, 2022, the Chamber of Commerce filed the Pacifica Hotel Business Improvement District (BID) report with the City Clerk. The report was presented to the City Council with the resolution of intent to continue the BID program and levy the annual assessments for the fiscal year 2022-23.The report included projected resources and uses for FY 2022-23. There were no proposed changes in the boundaries of the Pacifica Hotel Business Improvement District. The proposed assessment is intended to continue at $1.00 per room per day occupancy. It is estimated to generate $70,000 in revenues for the BID activities in FY2022-23 plus an estimated rollover funds of $977.30 from the current fiscal year. The Pacifica Chamber of Commerce will continue to serve as the Managing Agency for the BID at the proposed annual administrative fee of $35,000 or 50% of the projected FY2022-23 BID assessment.
At the meeting on May 23, Council directed staff and Chamber representatives to hold a Pacifica City Council 2
June 27, 2022
meeting with the hotel representatives and Council liaisons to the Economic Development Committee to seek clarifications for proposed FY22-23 BID activities, reduce duplication, achieve collaboration and request modifications to the BID report. Staff held this meeting on June 1, 2022. During the meeting, some hotel representatives seemed to be unaware of the above-mentioned City programs that would directly benefit hotels or the VisitPacifica website access issues. In addition, the Chamber continued expressing security concerns about granting the City's professional Marketing consulting firm access to the VisitPacifica platform. Staff clarified that the City's standard practice requires substantial professional and general liability coverage from all their contractors, and these concerns would be covered. The Chamber requested to meet with City staff and the City Consultant again to discuss the collaboration and access to the website. This meeting took place on June 9, 2022. During the meeting on June 9, City staff provided clarification to marketing programs, specifically the elements that will directly benefit BID members, discussed collaborative working guidelines, and staff re-submitted a detailed request for the City consultant’s access to VisitPacifica website, and social media for content posting and outreach.
At the City Council meeting on June 13, Council reviewed and discussed the revised BID Annual Report and made the following modifications:
• Modify Exhibit F item #1 to read as follows “The City, Chamber of Commerce, and a quorum of the BID will meet quarterly to discuss performance, alignment of performance measures, and gather information to report back to the City Council at mid-year”. • Delete Exhibit G in its entirety. Exhibit G does not include an associated budget, therefore, should not be included. Alternatively, Exhibit G will be brought back for updates and discussion during the mid-year meeting.
• Modify Exhibit F by removing table item #5 “BID/rep/Marketing Consultant” and the corresponding reference in Exhibit H(4).
The City intends to build greater collaboration and coordination of efforts with the BID to identify correlated key performance measures and better align available resources, unify marketing efforts toward the same goals of promoting Pacifica as an overnight destination, assist hotels with improving their occupancy rates throughout the year, and, as a result of these efforts, improve the hospitality industry and local economy in general.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
"Fiscal Sustainability" includes investing in economic development to increase revenues, funding a reserve/emergency fund, and being well prepared for grant opportunities.
FISCAL IMPACT:
There is no significant fiscal impact associated with this action, except for the City's administrative cost of processing BID pass-through payments that the City collects. The City collects no fee for administering the BID.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Attachment 1 - BID report G-H 2022-2023 updated (PDF)
Attachment 2 - Resolution to Levy the Assessment (DOCX)