RESOLUTION NO. R-2023-022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA APPROVING THE ANNUAL REPORT FOR FISCAL YEAR 2024 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 2024, AND DIRECTING THE CITY CLERK TO SCHEDULE A PUBLIC HEARING FOR APRIL 18, 2023, 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) 2024 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 2024, 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, the City Council declares its intent to levy and collect an annual assessment for the Lodging Business Improvement District for FY 2024. The assessment PAGE 1 OF 10
R-2023-022
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 2024. 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 S. 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 2024 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 18, 2023 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.
PAGE 2 OF 10
R-2023-022
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 Newton, seconded by Council Member Guthrie, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 4'" day of April 2023, by the following vote:
AYES:
4 Newton, Guthrie, Reiss, Waage
NOES:
0 ABSENT:
1 Inman
ABSTAIN:
0 RECUSED:
0 Approved:
E Waage, M or
Attest:
C 1,m nderli ity lerk
PAGE 3OF10
R-2023-022
Exhibit A
Pismo Beach Lodging Business Improvement District
Annual Report and Business Plan for FY 2023-2024
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 15, 2023, 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:
1. 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) 2024 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 2024 include the following: Following the Strategic Plan including smart tourism growth, collaborative partnerships, expanding the brand of Classic California, Wine and Waves and current campaigns that feature stewardship, equity, diversity and inclusivity as well as Experience PismoBeach.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 cooperative advertising with the County Tourism Marketing District and PAGE 4 OF 10
R-2023-022
Exhibit A
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 2024 include the Addle Street restroom improvements 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 2023 and FY 2024
FY 2023 Projected Actuals for Original 1% Assessment
• Sources: The FY 2023 projected actual total sources of $2,271,410, made up of $848,743 from fund balance carried over from the prior fiscal year, an estimated $1,421,117 from LBID assessment revenues, and a projected $1,550 in interest earnings and fees. • Uses: The FY 2023 projected actual expenditures are $1,712,684. This total includes $137,272 for administrative costs and $1,575,412 for direct costs.
The following table shows: the FY 2023 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.
1 PAGE 5 OF 10
R-2023-022
Exhibit A
FY 2023
Original 1%
$
848,743
Beginning Fund Balance
Revenues
LBID Assessment Revenues
1,421,117
Interest Earnings
1,550
Total Revenues
$
1,422,667
Total Sources
$
2,271,410
Expenditures
Salaries & Wages
34,116
Benefits
4,264
Purchase Professional Services
118,550
Purchase Professional Services
-
Contract Services
1,124,170
Operations & Maintenance
2,300
Other Expenses
83,884
Contributions
345,400
Total Expenditures
$
1,712,684
Net Revs - Exp
(290,017)
Carryforward
16,000
Ending Fund Balance
$
558,726
The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
14 PAGE 6 OF 10
R-2023-022
Exhibit A
' FY 2023
Original 1%
Administrative/Overhead $ 137,272
Direct Costs 1,575,412
$ 1,712,684
Direct Costs
TJA Agreement
1,222,000
Miscellaneous direct costs
8,012
Contributions
Title sponsorship for World Para -Surfing Championship
$ 175,400
Sponsorship of major events
100,000
Surfing for Hope SLO CAL Open
20,000
Basin Street Regulars / Jubilee by the Sea
10,000
Chamber of Commerce
15,000
San Luis Obispo Int'I Film Festival
5,000
CA Welcome Center Funding
20,000
Total Contributions
$ 345,400
Total Direct Costs
1,575,412
FY 2023 Projected Actuals for 1% Assessment for Physical Improvements • Sources: The FY 2023 projected actual total sources of $1,422,667, made up of $(568,864) 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 $1,421,117 from LBID assessment revenues, and a projected $1,550 in interest earnings and fees. • Uses: The FY 2023 projected actual expenditures are $346,664. 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 $10,664 for the third and final interest payment on the interfund loan agreement. In addition, the principal on the interfund loan of $1,077,042 will be made this fiscal year.
The following table shows: the FY 2023 projected actuals for the 1% assessment for physical improvements.
PAGE 7 OF 10
R-2023-022
Exhibit A
Beginning Fund Balance
Revenues
LBID Assessment Revenues
Interest Earnings
Total Revenues
Total Sources
Expenditures
Physical Improvements
Debt service
Total Expenditures
Net Revs - Exp
Carryforward
Ending Fund Balance
FY23 Spyglass Sidewalk, Beach
swing replacement, FY24
Addie St Restroom
Debt Service interest
FY 2023
Physical
Improvements
$
(568,864)
1,421,117
1,550
$
1,422,667
$
853,803
336,000
10,664
$
346,664
$
1,076,003
507,139
FY 2024 Proposed Budget for Original 1% Assessment
• Sources: The FY 2024 proposed budget total sources of $2,016,761, made up of $558,726 from fund balance carried over from the prior fiscal year, an estimated $1,449,539 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. • Uses: The FY 2024 proposed budget expenditures are $1,722,188. This total includes $150,588 for administrative costs and $1,571,600 for direct costs.
The following table shows: the FY 2024 proposed budget sources and uses, followed by summary tables of the total uses by administrative costs, direct costs, and improvements and details on the direct costs.
PAGE 8 OF 10
R-2023-022
Exhibit A
Beginning Fund Balance
Revenues
LBID Assessment Revenues
Interest Earnings
Total Revenues
Total Sources
Expenditures
Salaries & Wages
Benefits
Purchase Professional Services
Purchase Professional Services
Contract Services
Operations & Maintenance
Other Expenses
Contributions
Total Expenditures
Net Revs - Exp
Carryforward
Ending Fund Balance
FY 2024
Original 1%
$
558,726
1,449,539
8,496
$
1,458,035
$
2,016,761
33,928
7,573
124,236
16,000
1,177,002
2,300
91,149
270,000
$
1,722,188
(264,153)
$
294,573
The next tables summarize the total uses by administrative costs and direct costs, and provides the components of the direct costs.
Admi nistrative/Ove rhea d
Direct Costs
Direct Costs
T1A Agreement
Miscellaneous direct costs
Proposed Contributions
Total Direct Costs
PAGE 9 OF 10
FY2024
Original 1%
$ 150,588
1,571,600
$ 1,722,188
1,283,100
18,500
270,000
1,571,600
R-2023-022
Exhibit A
FY 2024 Proposed Budget for 1% Assessment for Physical Improvements • Sources: The FY 2024 proposed budget total sources of $1,965,174, made up of $507,139 from fund balance carried over from the prior fiscal year, an estimated $1,449,539 from LBID assessment revenues, and a projected $8,496 in interest earnings and fees. • Uses: The FY 2024 proposed budget expenditures include $1,200,000 for the Addie Street restroom and improvements project.
The following table shows: the FY 2024 proposed budget for the 1% assessment for physical improvements.
FY 2024
Physical
Improvements
$
507,139
Beginning Fund Balance
Revenues
LBID Assessment Revenues
1,449,539
Interest Earnings
8,496
Total Revenues
$
1,458,035
Total Sources
$
2,965,174
Expenditures
Physical Improvements FY24 Addle St Restroom
1,200,000
Total Expenditures
$
1,200,000
Net Revs - Exp
258,035
Carryforward
Ending Fund Balance
$
765,174
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 2024.
The CVB/LBID Advisory Board approved a motion to recommend that the 2% Assessment be continued in FY 2024.
5. The FY 2023 LBID budget for the original 1% assessment is projected to include a $558,726 surplus left over for carryover into FY 2024. The FY 2023 LBID budget for the 1% assessment for physical improvements is projected to include a $507,139 surplus left over for carryover into FY 2024.
6. The FY 2024 LBID Projected Actuals includes $16,991 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 2024.
PAGE 10 OF 10
R-2023-022