HomeMy WebLinkAboutReso 59-20 Continuing TBID FY 20-21RESOLUTION NO. 59-20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
CONTINUING THE PROGRAM AND LEVYING THE ASSESSMENTS FOR THE
2020/21 FISCAL YEAR FOR THE MORRO BAY
TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID)
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the Parking and Business Improvement Area Law of 1989, Sections 36500
et seq., of the California Streets and Highway Code authorizes cities to establish and review
business improvement areas of the purpose of promoting tourism, and
WHEREAS, on April 13, 2009, the City Council held a public hearing and first reading of
Ordinance 546 amending the Morro Bay Municipal Code (MBMC) to add a new Chapter 3.60 to
establish the Morro Bay Tourism Business Improvement District (MBTBID), and adopted
Ordinance No. 546 at its April 27, 2009 meeting which set the MBTBID assessments at 3%
from June 1, 2009 to May 31, 2010, and 2% from June 1, 2010 and thereafter; and
WHEREAS, on June 1, 2010, the MBTBID assessments returned to the 2% level, as
established by then MBMC section 3.60 050; and
WHEREAS, on September 13, 2010, the City Council held a public hearing and first
reading of Ordinance No. 562 to amend MBMC section 3.60.050, changing the assessment
percentage to 3%, and adopted Ordinance No. 562 at its September 27, 2010 meeting; and
WHEREAS, on December 10, 2019 the City Council adopted Ordinance No. 626
modifying the MBTBID to add vacation rentals businesses (as that term is defined in Chapter
5.47 (Short Term Vacation Rental Permit) of the Morro Bay Municipal Code) to the MBTBID at
the existing assessment rate of 3% levied on hotels; and
and
WHEREAS, all other findings of Ordinances Nos. 546, 562 and 626 remain unchanged;
WHEREAS, on May 28, 2020, the advisory board requested the renewal of the TBID for
the 2020/21 fiscal year to continue its activities, and the City Council has approved that renewal
annually since 2010; and
WHEREAS, on June 9, 2020, staff presented to City Council the annual assessment
report for Fiscal Year 2020/21, which provides a full and detailed description of the activities to
be provided during the 2020/21 fiscal year, as provided in the proposed budget for that Fiscal
Year, which are attached to this Resolution as Exhibit A; and
WHEREAS, the budget plan generally describes the funded activities to be marketing,
which attracts and extends overnight stays in Morro Bay hotels and vacation rentals, and are
consistent with the authorized uses for the assessment revenue set forth in MBMC, section
3.60.030; and
WHEREAS, it is the intention of the City Council to levy and collect 3% assessments
from the hoteliers and vacation rentals within the TBID for the 2020/21 fiscal year; and
WHEREAS, Resolution No. 47-20 declaring the intention to continue the program and
levy assessments from the hoteliers and notifying them of the June 23, 2020, public hearing
was adopted by the Council at the June 9, 2020, meeting and published in the New Times SLO
on June 11, 2020; and
WHEREAS, that public hearing was held via teleconference in accordance with Section
3 of Executive Order N-20-20, issued by Governor Newsom on March 17, 2020, for the final
public hearing to consider testimony for and against renewal of the TBID assessment, in
accordance with the California Streets and Highway Code sections 36534 and 36535; and
WHEREAS, at that public hearing regarding the renewal of the TBID for the 2020/21
fiscal year, affected businesses had the opportunity to protest the TBID renewal, with the
following results:
FOR: None
AGAINST: None
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay as
follows:
1. The above recitations are true and correct, and incorporated herein by reference.
2. The City Council, having affirmed the annual report and proposed budgets at its regular
meeting held on June 9, 2020, and considered all testimony, reports and opinions
presented at the June 23, 2020 public hearing, hereby declares the renewal of the Morro
Bay Tourism Business Improvement District for the 2020/21 fiscal year, and instructs the
hoteliers and vacation rentals to levy and collect 3% assessments for overnight stays of
30 days or less.
PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular
meeting thereof held on the 23rd day of June 2020 by the following vote:
AYES. Headding, Addis, Davis, Heller, McPherson
NOES. None
ABSENT: None
ATTEST:
afv‘r%-•
NA SWANSON, City Clerk
ir
•
JOHN tr E4DDI{NG, Mayor
Resolution No. 59-20
Exhibit A
Morro Bay Business Improvement District
Annual Report for FY 2020-21
Presented to the Morro Bay City Council by the Morro Bay Tourism
Business Improvement District Advisory Board
The City of Morro Bay's Tourism Business Improvement District at its regularly scheduled meeting on
May 28, 2020, completed its review of the Annual Report as required by Section 3.60.060 of the
Morro Bay Municipal Code (MBMC).
Regarding the requirements for the Annual Report, as stated in Section 36533 of the California
Streets and Highways Code:
1. The Morro Bay Tourism Business Improvement District (MBTBID) Advisory Board did not
propose any changes in the Boundaries of the TBID, which were established in MBMC
Section 3.60.040 to be the boundaries of the City of Morro Bay.
2. The improvements and activities to be provided for in Fiscal Year FY 2020/21 are those
services and activities permitted under Section 3.60.030 of the Morro Bay Municipal Code,
which include:
A. The general promotion of tourism within the district to include costs as specified in
the business plant to be adopted annually; and
B. Implementation of the strategic plan; and
C. Marketing of Foreign Independent Travelers (FIT), conference, group, and film
business that benefits local tourism and the local hotel industry in the district; and
D. The marketing of the district to the travel industry in order to benefit local tourism
and the local hotel industry in the district
GOALS & OBJECTIVES for FY 2020/21
1. Increase overall occupancy & hotel/motel/vacation rental revenues, especially
during midweek and shoulder season through our new destination assets such as the
website and implementation of the strategic plan and new branding.
2. Midweek — be more aggressive through digital media to increase stays plus grow
mid -week stays through FIT and group longer stays.
3. Extend the number of average hotel/motel/vacation rental room nights beyond the
current level of 1.8.
4. Help incrementally increase the hotel/motel/vacation rental Average Daily Rate
(ADR) through the promotion and elevation of the destination.
Resolution No 59-20
Exhibit A
5. Bring exposure to Morro Bay as a viable domestic and international destination for
individuals and groups which will increase longer stays.
6. Assist with the development and growth of athletic competitions and events that
attract overnight guest and that fit in our strategic plan model.
7. Create opportunities to positively impact sales tax businesses & drive economic
development in the City of Morro Bay such as new or upgrade of hotel stock, grow
the quality of events to entice a higher level of visitor.
8. Positively impact transient occupancy tax (TOT) for the City of Morro Bay.
9. Complete integration of vacation rentals into the TBID.
3. An estimate of the cost of providing the improvements and the activities for that fiscal
year (as described below with the FY 2020/21 Proposed Budget).
FY 2020-21 Proposed Budget - Attached
Sources: The FY 2020/21 projected actual sources include total sources of $550,000, all from TBID
assessment revenues.
Uses: The FY 2020/21 projected actual expenditures are $384,307, netting a $165,693 change to the
fund balance.
The attached budget shows FY 2020/21 revised budget, projected actuals, and the variance of the
projected actuals compared to the revised budget.
4. No change in the TBID method or basis of levying the assessment was proposed for FY
2020/21 More specifically, the Morro Bay TBID Advisory Board approved a motion to
recommend that the 3% Assessment for any hotel, motel, vacation rental, or bed and
breakfast establishment in the City of Morro Bay be continued in FY 2020/21.
5. The TBID budget for FY 2019/20 is projected to include $ -0- surplus left over for carryover
into FY 2020/21.
6. The amount of any contributions to be made from sources other than assessments levied
is zero for FY2020/21.
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390-Mist Rev - Miscellaneous Revenues
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007-3170 3990
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550,000.0000
823,644.0000
489,298.0900
829,289.2200
802,877.2500
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Department Total: 1111 - Undistributed/Non-Dept.
3170 - Promotion & Advertising
Department:
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007-3170 5110
Other Expense
007-3170 5201
General Office Supplies
007-3170 5301
Copying Supplies
007-3170 5302
Forms Printing
007-3170 5305
Account Classification Total: 60-Supplies - Supplies
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Consulting Services
007-3170 6105
165,000.0000
109,808.5700
282,426.7200
193,013.5900
Contractual Services
007-3170 6106
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Promotion & Advertising
007-3170 6107
105,806.1800
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007-3170 6108
Print Ads - So. Region
007-3170 6113
Community Event Support
007-3170 6114
Print Ads - Other Regions
007-3170 6116
2020 Amended
2020 Actual Amount
City of Morro Bay
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2018 Actual Amount
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Promotion - Media
007-3170 6118
Promotion - Other
007-3170 6119
Trade Shows - Space Rent
007-3170 6120
Trade Shows - Trans.
007-3170 6121
Advertising Sponsorships
007-3170 6124
Professional Development
007-3170 6125
007-3170 6127
Out of Home Media
007-3170 6128
Digital Services
007-3170 6129
007-3170 6130
Promotion - Visiting Journalist
007-3170 6132
Tonal Services
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007-3170 6199
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007-3170 6201
007-3170 6220
007-3170 6300
007-3170 6308
Workers Comp Insurance
007-3170 6451
Unemployment Insurance
007-3170 6461
Meetings & Conferences
007-3170 6510
Mileage Reimbursement
007-3170 6511
Meals & Lodging
007-3170 6513
Travel Expense
007-3170 6514
Association Membership
007-3170 6519
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7710 - Interfund Transactions
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$1,068,288.79
$917,860.71
EXPENSES Total
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Total: 007 - MBT-BID
Fund REVENUE
$1,068,288.79
Total: 007 - MBT-BID
Fund EXPENSE
Fund Total: 007 - MBT-BID
Resolution No 59-20
Exhibit A
California Streets and Highway Code Section 36520-36537
36520. A parking and business improvement area may be established as provided in this chapter.
36521. The city council may establish an area on its own initiative.
36521.5. A county may not form an area within the territorial jurisdiction of a city without the
consent of the city council of that city. A city may not form an area within the unincorporated
territory of a county without the consent of the board of supervisors of that county. A city may not
form an area within the territorial jurisdiction of another city without the consent of the city council
of the other city.
36522. Proceedings to establish a parking and business improvement area shall be instituted by the
adoption by the city council of a resolution of intention to establish the area. The resolution of
intention shall do all of the following:
(a) State that a parking and business improvement area is proposed to be established pursuant to
this chapter and describe the boundaries of the territory proposed to be included in the area and the
boundaries of each separate benefit zone to be established within the area. The boundaries of the
area may be described by reference to a map on file in the office of the clerk, showing the proposed
area.
(b) State the name of the proposed area.
(c) State the type or types of improvements and activities proposed to be funded by the levy of
assessments on businesses in the area. The resolution of intention shall specify any improvements
to be acquired.
(d) State that, except where funds are otherwise available, an assessment will be levied annually to
pay for all improvements and activities within the area.
(e) State the proposed method and basis of levying the assessment in sufficient detail to allow each
business owner to estimate the amount of the assessment to be levied against his or her business.
(f) State whether new businesses will be exempt from the levy of the assessment, pursuant to Section
36531.
(g) Fix a time and place for a public hearing on the establishment of the parking and business
improvement area and the levy of assessments, which shall be consistent with the requirements of
Section 54954.6 of the Government Code.
Resolution No. 59-20
Exhibit A
(h) State that at the hearing the testimony of all interested persons for or against the establishment
of the area, the extent of the area, or the furnishing of specified types of improvements or activities
will be heard.
(i) Describe, in summary the effect of protests made by business owners against the establishment
of the area, the extent of the area, and the furnishing of a specified type of improvement or activity,
as provided in Section 36524.
36523. Notice of a public hearing held under Section 36524, 36541, 36542, or 36550 shall be given
by both of the following:
(a) Publishing the resolution of intention in a newspaper of general circulation in the city once, for at
least seven days before the public hearing.
(b) Mailing of a complete copy of the resolution of intention by first-class mail to each business owner
in the area within seven days of the city council's adoption of the resolution of intention.
(c) Notwithstanding subdivision (b), in the case of an area established primarily to promote tourism,
a copy of the resolution of intention shall be mailed by first-class mail within seven days of the city
council's adoption of the resolution of intention, to the owner of each business in the area which will
be subject to assessment.
36523.5. Notwithstanding Section 36523, prior to adopting any new or increased assessment, the
city council shall give notice pursuant to Section 54954.6 of the Government Code in lieu of
publishing notice pursuant to subdivision (a) of Section 36523.
36524. (a) At the public hearing, the city council shall hear and consider all protests against the
establishment of the area, the extent of the area, or the furnishing of specified types of
improvements or activities within the area. A protest may be made orally or in writing by any
interested person. 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.
(b) Every written protest shall be filed with the clerk at or before the time fixed for the public hearing.
The city council may waive any irregularity in the form or content of any written protest and at the
public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in
writing at any time before the conclusion of the public hearing.
(c) Each written protest shall contain a description of the business in which the person subscribing
the protest is interested sufficient to identify the business and, if a person subscribing is not shown
on the official records of the city as the owner of the business, the protest shall contain or be
accompanied by written evidence that the person subscribing is the owner of the business. A written
protest which does not comply with this section shall not be counted in determining a majority
protest.
Resolution No. 59-20
Exhibit A
36525. (a) If written protests are received from the owners of businesses in the proposed area which
will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn
so as to reduce the protests to less than that 50 percent, no further proceedings to create the
specified parking and business improvement area or to levy the proposed assessment, as contained
in the resolution of intention, shall be taken for a period of one year from the date of the finding of
a majority protest by the city council.
(b) If the majority protest is only against the furnishing of a specified type or types of improvement
or activity within the area, those types of improvements or activities shall be eliminated.
36526. (a) At the conclusion of the public hearing to establish the area, the city council may adopt,
revise, change, reduce, or modify the proposed assessment or the type or types of improvements
and activities to be funded with the revenues from the assessments.
(b) At the public hearing, the city council may only make changes in, to, or from, the boundaries of
the proposed parking and business improvement area that will exclude territory which will not
benefit from the proposed improvements or activities. However, proposed assessments may only be
revised by reducing any or all of them.
(c) The city council shall not change the boundaries of the area to include any territory that will not,
in its judgment, benefit by the improvement or activity. Any addition of territory to the proposed
boundaries of the area may be made only upon notice to the owners of the businesses proposed to
be added to the area, as provided in Section 36523, and upon a public hearing on the addition of
territory, as provided in Section 36524.
36527. if the city council, following the public hearing, decides to establish the proposed parking
and business improvement area, it shall adopt an ordinance to that effect. The ordinance shall
contain all of the following:
(a) The number, date of adoption, and title of the resolution of intention.
(b) The time and place where the public hearing was held concerning the establishment of the area.
(c) A determination regarding any protests received at the public hearing.
(d) The description of the boundaries of the area and of each separate benefit zone established
within the area.
(e) A statement that a parking and business improvement area has been established and the name
of the area.
(f) A statement that the businesses in the area established by the ordinance shall be subject to any
amendments to this part.
Resolution No. 59-20
Exhibit A
(g) The description of the method and basis of levying the assessments, with a breakdown by
classification of businesses if a classification is used.
(h) A statement that the improvements and activities to be provided in the area will be funded by
the levy of the assessments. The revenue from the levy of assessments within an area shall not be
used to provide improvements or activities outside the area or for any purpose other than the
purposes specified in the resolution of intention, as modified by the city council at the hearing
concerning establishment of the area.
(i) A finding that the businesses and the property within the business and improvement area will be
benefited by the improvements and activities funded by the assessments proposed to be levied. In
the case of an area formed to promote tourism, only businesses that benefit from tourist visits may
be assessed.
(j) The time and manner of collecting the assessments.
36528. The city council may establish one or more separate benefit zones within the area based
upon the degree of benefit derived from the improvements or activities to be provided within the
benefit zone and may impose a different assessment within each benefit zone.
36529. All provisions of this part applicable to the establishment, modification, or disestablishment
of a parking and business improvement area apply to the establishment, modification, or
disestablishment of benefit zones. The city council shall, to establish, modify, or disestablish a benefit
zone, follow the procedure to establish, modify, or disestablish a parking and business improvement
area.
36530. The city council shall appoint an advisory board which shall make a recommendation to the
city council on the expenditure of revenues derived from the levy of assessments pursuant to this
part, on the classification of businesses, as applicable, and on the method and basis of levying the
assessments. The city council may designate existing advisory boards or commissions to serve as the
advisory board for the area or may create a new advisory board for that purpose. The city council
may limit membership of the advisory board to persons paying the assessments under this part. The
city council may appoint the advisory board prior to adoption of the resolution of intention to create
the area, so that the advisory board may recommend the provisions of the resolution of intention.
36531. The city council may exempt a business recently established in the area from the levy of the
assessments, for a period not to exceed one year from the date the business commenced operating
in the area. The city council shall state its determination to so exempt new businesses in the
resolution of intention to establish the area and shall reaffirm its determination annually in the
resolution of intention required to be adopted pursuant to Section 36534.
36532. The collection of the assessments levied pursuant to this part shall be made at the time and
in the manner set forth by the city council in the ordinance establishing the area.
Resolution No. 59-20
Exhibit A
36533. (a) The advisory board shall cause to be prepared a report for each fiscal year for which
assessments are to be levied and collected to pay the costs of the improvements and activities
described in the report. The report may propose changes, including, but not limited to, the
boundaries of the parking and business improvement area or any benefit zones within the area, the
basis and method of levying the assessments, and any changes in the classification of businesses, if
a classification is used.
(b) The report shall be filed with the clerk and shall refer to the parking and business improvement
area by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year,
shall contain all of the following:
(1) Any proposed changes in the boundaries of the parking and business improvement area or in any
benefit zones within the area.
(2) The improvements and activities to be provided for that fiscal year.
(3) An estimate of the cost of providing the improvements and the activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each business owner
to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The amount of any contributions to be made from sources other than assessments levied
pursuant to this part.
(c) The city council may approve the report as filed by the advisory board or may modify any
particular contained in the report and approve it as modified. The city council shall not approve a
change in the basis and method of levying assessments that would impair an authorized or executed
contract to be paid from the revenues derived from the levy of assessments.
36534. (a) After the approval of the report, the city council shall adopt a resolution of intention to
levy an annual assessment for that fiscal year. The resolution of intention shall do all of the following:
(1) Declare the intention of the city council to change the boundaries of the parking and business
improvement area, or in any benefit zone within the area, if the report filed pursuant to Section
36533 proposes a change.
(2) Declare the intention of the city council to levy and collect assessments within the parking and
business improvement area for the fiscal year stated in the resolution.
(3) Generally describe the proposed improvements and activities authorized by the ordinance
enacted pursuant to Section 36527 and any substantial changes proposed to be made to the
improvements and activities.
Resolution No 59-20
Exhibit A
(4) Refer to the parking and business improvement area by name and indicate the location of the
area.
(5) Refer to the report on file with the clerk for a full and detailed description of the improvements
and activities to be provided for that fiscal year, the boundaries of the area and any benefit zones
within the area, and the proposed assessments to be levied upon the businesses within the area for
that fiscal year.
(6) Fix a time and place for a public hearing to be held by the city council on the levy of the proposed
assessment for that fiscal year. The public hearing shall be held not less than 10 days after the
adoption of the resolution of intention.
(7) State that at the public hearing written and oral protests may be made. The form and manner of
protests shall comply with Sections 36524 and 36525.
(b) The clerk shall give notice of the public hearing by causing the resolution of intention to be
published once in a newspaper of general circulation in the city not less than seven days before the
public hearing.
36535. (a) The city council shall hold the public hearing at the time and in the place specified in the
resolution of intention. The public hearing shall be conducted as provided in Sections 36524 and
36525. The city council may continue the public hearing from time to time.
(b) During the course or upon the conclusion of the public hearing, the city council may order changes
in any of the matters provided in the report, including changes in the proposed assessments, the
proposed improvements and activities to be funded with the revenues derived from the levy of the
assessments, and the proposed boundaries of the area and any benefit zones within the area. The
city council shall not change the boundaries to include any territory that will not, in its judgment,
benefit by the improvement or activity.
(c) At the conclusion of the public hearing, the city council may adopt a resolution confirming the
report as originally filed or as changed by it. The adoption of the resolution shall constitute the levy
of an assessment for the fiscal year referred to in the report.
(d) Notwithstanding subdivision (c), if the primary purpose of the area is promotion of tourism, the
city council may adopt a resolution confirming the report as submitted by the advisory board, or may
adopt a resolution continuing the program and assessments as levied in the then current year
without change, and that resolution shall constitute the levy of an assessment for the fiscal year
referred to in the report. As an alternative, the city council may modify the report and adopt a
resolution confirming the report as modified but in that case the city council may adopt the
resolution only after providing notice of the proposed changes as specified in Section 36523 and only
after conducting a public hearing on the resolution as provided in Sections 36524 and 36525.
Resolution No 59-20
Exhibit A
36536. The assessments levied on businesses pursuant to this part shall be levied on the basis of the
estimated benefit to the businesses and property within the parking and business improvement area.
The city council may classify businesses for purposes of determining the benefit to a business of the
improvements and activities provided pursuant to this part.
36537. The validity of an assessment levied under this part shall not be contested in any action or
proceeding unless the action or proceeding is commenced within 30 days after the resolution levying
the assessment is adopted pursuant to Section 36535. Any appeal from a final judgment in an action
or proceeding shall be perfected within 30 days after the entry of judgment.