CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
12/8/2025
1 SUBJECT:
Agreement with The San Francisco Peninsula for Management of Pacifica Tourism Marketing District (PTMD)
RECOMMENDED ACTION:
Adopt Resolution Authorizing the City Manager to execute the agreement with The San Francisco Peninsula for Management of Pacifica Tourism Marketing District (PTMD).
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 501-6004
[email protected]
BACKGROUND/DISCUSSION:
Pacifica’s lodging industry has participated in a formal tourism assessment district since 2004, when the Pacifica Hotel Business Improvement District (PHBID) was formed under the Parking and Business Improvement Area Law of 1989 (“’89 Law”). The PHBID established a $1-perroom-night assessment to fund marketing and promotion efforts for local hotels.
Over time, as industry best practices shifted statewide toward the Property and Business Improvement District Law of 1994 (“’94 Law”), the framework used by most modern Tourism Marketing Districts, Pacifica’s hotel operators expressed interest in transitioning to a more flexible and industry-governed model.
In early 2024, the City and lodging partners began exploring modernization of the district by forming a new Tourism Marketing District under the Property and Business Improvement District Law of 1994 (“’94 Law”). The ’94 Law provides a more flexible structure and enables assessment revenues to be directed to a nonprofit entity governed by the assessed businesses, an industry-standard approach widely used throughout California.
Following industry outreach, financial analysis, and the required statutory noticing and protest procedures, the Pacifica Tourism Marketing District (PTMD) was formally established on April 28, 2025, for a five-year term beginning July 1, 2025.
The PTMD includes all existing and future hotels and short-term vacation rentals within the city and levies a 0.5% assessment on gross room revenue, excluding stays over 30 days and federally exempt guests. The former PHBID expired on June 30, 2025, and PTMD operations and assessment collection commenced July 1, 2025.
Management and Administration
Under the ’94 Law, PTMD assessment revenues must be administered by a nonprofit organization responsible for implementing the Management District Plan (MDP). To select a Pacifica City Council 2
December 08, 2025
qualified entity, the City issued a Request for Proposals (RFP) on June 3, 2025. Three proposals were received and evaluated based on demonstrated experience with tourism districts, regional marketing capacity, understanding of Pacifica’s visitor market, and ability to implement the MDP effectively. Based on the initial evaluation, only two out of three proposers, The San Francisco Peninsula (SFP), and Peninsula Chinese Business Association, were determined to be qualified under the ’94 Law and were invited to participate in interviews with the PTMD subcommittee.
Following the interview process, the PTMD Advisory Board recommended The San Francisco Peninsula (SFP) as the preferred contractor. In addition to its strong destination marketing capabilities, SFP currently manages the San Mateo County Tourism Business Improvement District, of which Pacifica hotels are already members. Aligning management of the local PTMD with the countywide BID enhances coordination, creates a unified marketing platform, and allows Pacifica to leverage existing regional campaigns, media relationships, and travel trade networks that already feature Pacifica properties.
Under the proposed contract, SFP will be responsible for implementing the MDP, including executing marketing campaigns, maintaining Pacifica’s tourism webpage, managing digital and print advertising, coordinating public relations, and supporting lodging partners through sales initiatives and regional partnerships.
The recommended contract will be for an initial one-year term based on the attached preliminary scope of work, which may be refined prior to the full execution of the contract. The agreement will include options to extend for up to two additional years based on performance and mutual agreement between SFP and the PTMD Advisory Board. The annual cost of $40,000 will be fully funded by PTMD assessments. Before the contract goes into effect, the District will also need to revamp the Visit Pacifica website to ensure it meets the technical and marketing capabilities required for SFP’s use. This work is currently underway and is expected to be completed in the next few weeks. Staff is requesting Council authorization for the City Manager, or his designee, to finalize and execute the contract with the SFP once website upgrade work is completed.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item advances the Council’s goal of "Enhancing Organizational and Fiscal Sustainability" by strengthening the City’s tourism economy, supporting local businesses, and investing in economic development and marketing that will directly benefit the hospitality industry and improve the local economy.
FISCAL IMPACT:
There is no fiscal impact associated with this action. The City collects no fee for administering the district assessments at this time, and once it is transferred to the selected non-profit agency, the administration of the district will be fully covered by the assessments.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Attach1-PrelimSOW (DOCX)
Pacifica City Council 3
December 08, 2025
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE PACIFICA TOURISM
MARKETING DISTRICT, AND THE SAN FRANCISCO PENINSULA FOR MANAGEMENT
SERVICES
WHEREAS, on April 28, 2025, the City Council of the City of Pacifica formed the Pacifica Tourism Marketing District (PTMD) pursuant to the Property and Business Improvement District Law of 1994; and
WHEREAS, the PTMD was established to fund marketing, sales, and promotional activities that increase overnight visitation and support Pacifica’s hotels and short-term vacation rentals; and
WHEREAS, the Property and Business Improvement District Law of 1994 requires that a nonprofit organization administer the activities and expenditures of the District as outlined in the adopted Management District Plan (MDP); and
WHEREAS, the City issued a competitive Request for Proposals (RFP) on June 3, 2025, and received three proposals to manage the PTMD’s marketing and promotional programs; and WHEREAS, after a thorough evaluation process and recommendation by the Pacifica Hotel Business Improvement District Advisory Board, The San Francisco Peninsula (SFP) was selected as the most qualified organization based on its experience, regional expertise, and successful management of other tourism marketing districts; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica, California, that the City Council hereby authorizes the City Manager to execute an agreement between the Pacifica Tourism Marketing District, and The San Francisco Peninsula for management services for a one-year term with the option to extend for up to two additional years, at an annual cost of $40,000 funded entirely through PTMD assessments.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 8
th day of December, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Pacifica City Council 4
December 08, 2025
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney