CITY COUNCIL STAFF REPORT
Meeting Date: February 07, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 APPROVING THE AGREEMENT
WITH STAY PLEASANT HILL TO SERVE AS THE OWNERS'
ASSOCIATION FOR THE PLEASANT HILL TOURISM
IMPROVEMENT DISTRICT AND AUTHORIZING THE CITY
MANAGER TO EXECUTE THE AGREEMENT
SYNOPSIS
A resolution approving an Owners’ Association Agreement for Stay Pleasant Hill to serve as the owners’ association and manage the Pleasant Hill Tourism Improvement District (PHTID), effective on April 1, 2022 and continuing for five years until March 31, 2027, unless terminated earlier in accordance with the terms of the Agreement, and authorizing the City Manager to execute the agreement.
DISCUSSION
Background
On January 24, 2022, the City Council approved the renewal of the PHTID for five additional years, extending the district through March 31, 2027. The PHTID will generate approximately $700,000 annually for the marketing and promotion of the City’s hotels and attractions. In addition to increasing hotel usage, PHTID will also give a boost to all of the City’s businesses by bringing additional visitors into the City to shop and eat at the City’s local businesses, and by marketing for many of our establishments through www.Staypleasanthill.com, the Stay Pleasant Hill Social Media platforms, as well as hard copy materials.
Timeline
April 1, 2017 PHTID formed with a five-year term (expires March 31, 2022).
November 2021 Petition to Renew the PHTID beyond March 31, 2022 signed by majority of City hotel owners.
December 6, 2021 Resolution of Intent to Renew the PHTID adopted by City Council with amended five-year extension term.
December 9, 2021 Written notices mailed to all hotels in the City that would be subject to the assessment, as required by Streets and Highways Code § 36623 in order to form or extend a TID.
December 20, 2021 City Council allowed public testimony on proposed PHTID renewal and reached consensus on formation of the Stay Pleasant Hill nonprofit corporation and City/Stay Pleasant Hill owners’ association agreement.
January 24, 2022 Public hearing and approval of a Resolution to Renew the PHTID for five additional years and approval of the PHTID Management District Plan.
February 7, 2022 Resolution to approve an agreement for Stay Pleasant Hill to serve as the Owners’ Association and manage the Pleasant Hill Tourism Improvement District (PHTID).
Owners’ Association Agreement between the City and Stay Pleasant Hill Streets and Highways Code section 36651 requires a contract between the City and the owners’ association that would manage the PHTID services that are described in the Management District Plan (attached). The Owners’ Association Agreement (attached) between the City and Stay Pleasant Hill outlines the terms in which Stay Pleasant Hill will provide the services for the PHTID. For example, Stay Pleasant Hill will prepare an annual report each year which includes:
Improvements and activities to be provided for that fiscal year. An estimate of the cost of providing the improvements and the activities for that fiscal year.
The method and basis of levying assessments.
The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
The Agreement also enables the City to audit assessments, collections, and uses, and allows for termination of the agreement in the event that either party defaults in its obligations under the agreement.
Drafts of the Owners’ Association Agreement have been included in previous staff reports during the PHTID renewal process, and feedback from the City Council is reflected in the attached Agreement.
FISCAL IMPACT
No direct fiscal impacts as all costs associated with the management of Stay Pleasant Hill will be covered by the PHTID. Because the activities of the PHTID that will be managed by Stay Pleasant Hill are intended to increase visitation to the City, an increase in transient occupancy tax (TOT) and sales tax collection is expected.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution approving an Owners’ Association Agreement for Stay Pleasant Hill to serve as the owners’ association and manage the Pleasant Hill Tourism Improvement District (PHTID) and authorizing the City Manager to execute the agreement.
ALTERNATIVES TO RECOMMENDED ACTION
The Council could choose not to adopt the attached Resolution for Stay Pleasant Hill to serve as the owners’ association and manage the PHTID. Staff does not recommend this option.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 - Owners’ Association Agreement – clean copy with Stay Pleasant Hill signature Owners’ Association Agreement – redline version reflecting Council direction 2022-2027 PHTID Management District Plan
Prepared by: Zach Seal, Economic Development Manager
Approved by: June Catalano, City Manager