RESOLUTION NO. R-2022-022
6=0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA APPROVING THE ANNUAL REPORT FOR FISCAL YEAR 2023 FROM
THE PISMO BEACH CONFERENCE AND VISITORS BUREAU / LODGING
BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD, AND DECLARING THE
CITY COUNCIL'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR THE LBID FOR FY 2023, AND DIRECTING THE CITY CLERK TO SCHEDULE A PUBLIC HEARING FOR APRIL 19, 2022, TO CONSIDER LEVYING THE ASSESSMENT WHEREAS, the Parking and Business Improvement Area Law of 1989 (California Streets and Highway Code Section 36500 et seq.) authorizes cities to establish parking and business improvement areas for the purpose of imposing assessments on businesses for certain purposes; and
WHEREAS, the Pismo Beach City Council established the Lodging Business Improvement District ("the District" or "LBID") by the adoption of Ordinance 0-2009-008; and
WHEREAS, the Conference and Visitors Bureau / Lodging Business Improvement District Advisory Board has submitted an Annual Report to Council that outlines the activities of the District proposed for Fiscal Year (FY) 2023 as required by California Streets and Highways Code Section 36533; and
WHEREAS, the City Council finds the Annual Report to be complete, to comply with the interests of the District assessees, and to contain the information required by California Streets and Highways Code Section 36533; and
WHEREAS, California Streets and Highways Code Sections 36534 and 36535 require that in order to levy an assessment, the Council must adopt a Resolution of Intention that declares its intent to levy such assessment, and then set a date for a public hearing where interested parties may be heard on the issue.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Pismo Beach as follows:
Section 1. The City Council hereby approves the Annual Report for FY 2023, as submitted to the City Clerk by the CVB/LBID Advisory Board attached as Exhibit A.
Section 2. No changes are proposed to the boundaries of the Lodging Business Improvement District.
Section 3. Pursuant to the provisions of Section 36500 et seq. of the California Streets and Highways Code, City Council declares its intent to levy and collect an annual assessment for the Lodging Business Improvement District for FY 2023. The assessment PAGE 1 OF 10
R-2022-022
shall be calculated based upon 2% of the gross lodging revenues, as that term is defined in Pismo Beach Municipal Code Section 3.26.020(D).
Section 4. The authorized uses for the revenues derived from the assessment are stated in Pismo Beach Municipal Code Section 3.26.030, and no changes to these uses are proposed in the Annual Report for FY 2023. The authorized uses as stated in that section are:
a) The general promotion of lodging operations within the LBID shall include costs of programs and physical improvements as specified in the business plan to be adopted annually;
b) The marketing of conference, group, and vacation business that benefits the local lodging industry in the district;
c) The marketing of the LBID to the travel industry in order to benefit the local lodging industry in the district;
d) Administration of the LBID, including collection and enforcement of assessments.
Section 5. An outline description of the improvements and activities to be provided in FY 2023, the boundaries of the District, and the proposed assessments to be levied upon the businesses within the area are contained within the Annual Report for FY 2023 filed with the City Clerk by the CVB/LBID Advisory Board.
Section 6. A public hearing shall be held before the City Council on April 19, 2022 in the City Council Chamber, 760 Mattie Road, Pismo Beach, California. Following the hearing, Council will consider adoption of a resolution levying the assessment as recommended by the CVB/LBID Advisory Board.
At this hearing, Council will hear all interested persons, and protests may be made orally or in writing. Written protests shall be filed with the City Clerk at or before the hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing, and shall clearly set forth the irregularity or defect to which the objection is made. Council may correct minor defects in the proceedings during the hearing.
If written protests against the assessment are received from business owners that will pay fifty percent or more of the proposed assessment, no further proceedings to levy the assessment shall be taken for one year from the date of the finding of a majority protest by Council. If the majority protest by business owners is against the furnishing of a specified improvement or activity within the District, those improvements or activities shall be eliminated. In order to be counted toward a majority protest, each written protest shall be from the business owner and contain a business description sufficient to identify the business. If the protesting person is not shown on the City's official business license records as owner of the business, the protest shall contain written evidence that the person is the business owner.
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Section 7. The City Clerk is hereby directed to give notice of said hearing by causing the Resolution of Intention to be published once in a newspaper of general circulation in the City of Pismo Beach not less than seven days before the public hearing.
Section 8. This Resolution is effective on its adoption.
UPON MOTION OF Council Member Blake, seconded by Council Member Newton, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5tn day of April 2022, by the following vote:
AYES: 5 Blake, Newton, Guthrie, Reiss, Waage
NOES: 0
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Approve : Attest- ,
2 Ed Waage, Mayor ca In' erlipd, City Clerk
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R-2022-022
Exhibit A
Pismo Beach Lodging Business Improvement District
Updated Annual Report and Business Plan for FY 2022-2023 Presented to the Pismo Beach City Council By the City Conference & Visitors Bureau / Lodging Business Improvement District Advisory Board
The City of Pismo Beach's Conference & Visitors Bureau (CVB) Board at its meeting on March 16, 2022, completed its Pismo Beach Lodging Business Improvement District Updated Annual Report and Business Plan as required by Section 3.26.060 of the Pismo Beach Municipal Code.
Regarding the requirements for the Annual Report, as stated in Section 36533 of the California Streets and Highways Code:
The Pismo Beach Lodging Business Improvement District (LBID) Advisory Board did not propose any changes in the Boundaries of the LBID, which were established in Section 3.26.040 to be the boundaries of the City of Pismo Beach.
2. With the renewal of the LBID following adoption of Proposition 26, the purposes for which LBID assessments could be expended were more limited than when the LBID was initially established. As such, the improvements and activities to be provided for in Fiscal Year FY 2023 are those services and activities permitted under Section
3.26.030 of the Pismo Beach Municipal Code, which include:
A. The general promotion of lodging operations within the LBID shall include costs of programs and physical improvements as specified in the business plan to be adopted annually;
B. The marketing of conference, group, and vacation business that benefits the local lodging industry in the district;
C. The marketing of the LBID to the travel industry in order to benefit the local lodging industry in the district;
D. Administration of the LBID, including collection and enforcement of assessments.
The continuing initiatives proposed for the original 1 % LBID Assessment for FY 2023 include the following: Following the Strategic Plan including smart tourism growth, collaborative partnerships, expanding the brand of Classic California, Wine and Waves and the current campaign of "The Drive is on to Pismo Beach" and ExperiencePismoBeach.com. This will be accomplished by following the 2023-2025 Marketing Plan with ongoing reviews at the CVB/LBID Advisory Board Meetings. Specific initiatives include emphasis on lodging packages, targeted advertising of the four -to -five - hour drive markets of both Southern and Northern California, Fresno, Bakersfield, Ventura County, and Santa Barbara County, as well as San Luis Obispo flight routes from Los Angeles, San Diego, Phoenix, Denver, Seattle, Dallas and San Francisco. Continue PAGE 4 OF 10
R-2022-022
Exhibit A
cooperative advertising with the County Tourism Marketing District and other tourism partners, such as Central Coast Tourism Council and Visit California. There will be a continuing effort to promote off-season events that benefit the lodging industry in Pismo Beach and other marketing efforts with emphasis on all social media platforms. These efforts are designed to improve lodging occupancies, RevPAR and TOT taxes which benefit all the residents of Pismo Beach.
The physical improvements proposed for the additional 1 % LBID Assessment for FY 2023 include paying down the loan to the Motor Vehicle Replacement Fund for the Pier Plaza and Pismo Preserve project, consistent with the original intent of the additional 1 % for physical improvements. These efforts are designed to improve lodging occupancies, RevPAR and TOT taxes which benefit all the residents of Pismo Beach.
3. Estimated Costs for FY 2022 and FY 2023
FY 2022 Projected Actuals for Original 1% Assessment
• Sources: The FY 2022 projected actual total sources of $2,327,851, made up of $751,205 from fund balance carried over from the prior fiscal year, an estimated $1,575,420 from LBID assessment revenues, and a projected $1,226 in interest earnings and fees.
• Uses: The FY 2022 projected actual expenditures are $1,457,523. This total includes $121,976 for administrative costs and $1,335,547 for direct costs.
The following table shows: the FY 2022 budget and projected actuals for the original 1 % assessment, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
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R-2022-022
Exhibit A
FY 2022
Revised
Projected
Variance
Original 1%Assessment
Budget
Actuals
(Prof. -
Fund Balance
$ 751,205
$ 751,205
$ -
Revenues
1% LBID Assessment
1,575,420
1,575,420
-
LBID Penalty & Interest
1,226
1,226
-
Total Sources
$ 2,327,851
$ 2,327,851
$ -
Uses
Overtime
$ 158
158
Temporary Salaries
$ 31,827
22,418
(9,409)
Benefits
2,791
3,403
612
Auditor
3,600
3,600
-
Legal
2,000
1,181
(819)
Cooperative Media
2,500
2,500
-
Travel & Meetings
10,000
10,000
-
Oper. Supplies & Maint
1,800
1,800
-
Postage
500
500
-
Overhead
78,917
78,917
-
Advertising & Promotion
976,658
976,658
-
Purchased professional
91,389
91,389
-
LBID Audit costs
16,000
-
(16,000)
Contributions
245,000
245,000
-
CA Welcome Center
20,000
20,000
-
Total Uses
$1,482,982
$1,457,523
($25,459)
Net Sources less Uses
$844,868
$870,32
$25,459
The next tables summarize the total uses by administrative costs and direct costs, and
provides the components of the direct costs.
FY 2022
Revised
Projected
Variance
Original 1% Assessment
Budget
Actuals
(Prof. -
Total Administrative Costs
131,435
121,976
(9,459)
Total Direct Costs
1,351,547
1,335,547
(16, 000)
Total Uses
$1,482,982
$1,457,523
($25,459)
Direct Cost Detail
TJA contract
$1,068,047
$1,068,047
-
Other Contributions
265,000
265,000
-
Miscellaneous direct costs
2,500
2,500
-
Total Direct Costs
$1,335,547
$1,335,547
-
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R-2022-022
Exhibit A
FY 2022 Projected Actuals for 1 % Assessment for Physical Improvements • Sources: The FY 2022 projected actual total sources of $(523,870), made up of $(2,100,515) from fund balance carried over from the prior fiscal year based on an interfund loan payable to the City's Motor Vehicle Replacement Fund, an estimated $1,575,420 from LBID assessment revenues, and a projected $1,226 in interest earnings and fees.
• Uses: The FY 2022 projected actual expenditures are $358,888. This total includes:
$300,000 for the pedestrian connections under US interstate 101 at Spyglass; $36,000 to replace the beach playground equipment at Main Street and Addie Street, consistent with the original intent of the additional 1 % for physical improvements; and $22,888 for the second interest payment on the interfund loan agreement. In addition, the principal on the interfund loan of $1,222,433 will be made this fiscal year.
The following table shows: the FY 2022 budget and projected actuals for the 1 % assessment for physical improvements.
FY 2022
Variance
1% Assessment for Phsyical
Revised
Projected
(Prof. -
Improvements
Budget
Actuals
Budget)
Fund Balance
$ (2,100,515)
$ (2,100,515)
$ -
1% LBID Assessment for physical
1,575,420
1,575,420
-
improvements
Interest Earnings
1,550
-
(1,550)
LBID Penalty & Interest
-
1,226
1,226
Total Sources
(523,545)
(523,870)
(324)
Uses
Spyglass pedestrian connection
Beach Playground equipment - Addie
St, Main St.
Loan Interest
Total Uses
Net Sources less Uses
Loan Repayment
300,000 300,000
36,000 36,000
22,888 22,888
358,888 358,888 -
$ (882,433) $ (882,758) $ (324)
$1,222,433 $1,222,433 -
FY 2023 Proposed Actuals for Original 1% Assessment
• Sources: The FY 2023 projected actual total sources of $2,478,807, made up of $870,327 from fund balance carried over from the prior fiscal year, an estimated $1,606,930 from LBID assessment revenues, and a projected $1,550 in interest earnings and fees.
• Uses: The FY 2023 projected actual expenditures are $1,226,631. This total includes $135,381 for administrative costs and $1,091,250 for direct costs.
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R-2022-022
Exhibit A
The following table shows: the FY 2023 projected actual sources and uses, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
Original 1% Assessment
Fund Balance
Revenues
1% LB I D Assessment
LBID Penalty & Interest
Total Sources
FY 2023
Revised
Budget
$ 870,327
1,606,930
1,550
$ 2,478,807
Uses
Overtime
Temporary Salaries
$ 31,827
Benefits
2,791
Auditor
3,600
Legal
2,000
Cooperative Media
2,500
Travel & Meetings
10,000
Oper. Supplies & Maint
1,800
Postage
500
Overhead
82,863
Advertising & Promotion
884,900
Purchased professional
83,850
LBID Audit costs
Contributions
100,000
CA Welcome Center
20,000
Total Uses
$1,226,631
Net Sources less Uses
$1,252,176
The next tables summarize the total uses by administrative costs and direct costs, and
provides the components of the direct costs.
FY 2023
Revised
Original 1% Assessment
Budget
Total Administrative Costs
$ 135,381
Total Direct Costs
1,091,250
Total Uses
$1,226,631
Direct Cost Detail
TJA contract
$ 968,750
Other Contributions
120,000
Miscellaneous direct costs
2,500
Total Direct Costs
$ 1,091,250
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Exhibit A
FY 2023 Proposed Actuals for 1% Assessment for Physical Improvements • Sources: The FY 2023 projected actual total sources of $725,722, made up of $(882,758) from fund balance carried over from the prior fiscal year based on an interfund loan payable to the City's Motor Vehicle Replacement Fund, an estimated $1,606,930 from LBID assessment revenues, and a projected $1,550 in interest earnings and fees.
• Uses: The FY 2023 projected actual expenditures include $10,664 for the third interest payment on the interfund loan agreement. In addition, the principal on the interfund loan of $1,066,378 will be made this fiscal year.
The following table shows: the FY 2023 budget and projected actuals for the 1 % assessment for physical improvements.
FY 2023
1 % Assessment for Phsyical
Revised
Improvements
Budget
Fund Balance
$ (882,758)
1% LBID Assessment for physical
1,606,930
improvements
Interest Earnings
1,550
LBID Penalty & Interest
-
Total Sources
725,722
Uses
Spyglass pedestrian connection
$ -
Beach Playground equipment - Addie
-
St, Main St.
Loan Interest
10,664
Total Uses
10,664
Net Sources less Uses
$ 715,058
Loan Repayment
$1,066,378
As the revenues and expenditures in this report reflect projections, it is prudent to continue to monitor these items over the course of the fiscal year.
4. No change in the LBID method or basis of levying the assessment was proposed for FY 2023. More specifically, the CVB/LBID Advisory Board approved a motion to recommend that the 2% Assessment be continued in FY 2023.
5. The FY 2022 LBID budget for the original 1 % assessment is projected to include a $870,327 surplus left over for carryover into FY 2023. The FY 2022 LBID budget for the 1 % assessment for physical improvements is projected to include a $(882,758) deficit fund balance for carryover into FY 2023.
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Exhibit A
6. The FY 2023 LBID Projected Actuals includes $3,100 in projected interest earnings, which comes from investments from the 2% assessment levied on transient rentals, and fund balance carried over from the prior fiscal year. The CVB/LBID Advisory Board did not recommend that any other contributions be budgeted for FY 2023. 0 PAGE 10 OF 10
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