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HomeMy WebLinkAboutTiburon Tourism Business Improvement District Pkt 2013-06-13TOWN OF TIBURON Tiburon Town Fall 1505 Tiburon. Boulevard Tiburon, CA 94920 SPECIAL MEETING AGENDA Advisory Board, Tiburon Tourism Business Improvement District June 13, 2013 Special Meeting - 5:00 p.m. Town Council Chambers ADVISORY BOARD TIBURON TOURISM BUSINESS IMPROVEMENT DISTRICT CALL TO ORDER AND ROLL CALL Board members Fraser, Curran, Nabben, Flake ACTION ITEMS 1. Election Of Board Chair 2. Advisory Board Report - Review and approve report describing the TTBID program; forward to Town Council for consideration and adoption and related actions to implement the TTBID. ORAL COMMUNICATIONS Persons wishing to address the Advisory Board on subjects not on the agenda may do so at this time. Please note however, that the Advisory Board is not able to undertake extended discussion or action on items not on the agenda. Matters requiring action will be referred to the appropriate Commission, Board, Committee or staff for consideration or placed on a future Advisory Board meeting agenda. Please limit your comments to three (3) minutes. ADJOURNMENT GENERAL PUBLIC INFORMATION ASSISTANCE FOR PEOPLE WITH DISABILITIES In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (415) 435- 7377. Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. AVAILABILITY OF INFORMATION Copies of all agenda reports and supporting data are available for viewing and inspection at Town Hall and at the Belvedere - Tiburon Library located adjacent to Town Hall. Agendas and minutes are posted on the Town's website, «7.ci.tiburon.ca.us. Upon request, the Town will provide written agenda materials in appropriate alternative formats, or disability- related modification or accommodation, including auxiliary aids or services, to enable individuals with disabilities to participate in public meetings. Please send a written request, including your name, mailing address, phone number and brief description of the requested materials and preferred alternative format or auxiliary aid or service at least 5 days before the meeting. Requests should be sent to the Office of the Town Clerk at the above address. PUBLIC HEARINGS Public Hearings provide the general public and interested parties an opportunity to provide testimony on these items. If you challenge any proposed action(s) in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing(s) described later in this agenda, or in written correspondence delivered to the Town Council at, or prior to, the Public Hearing(s). TIMING OF ITEMS ON AGENDA While the Town Council attempts to hear all items in order as stated on the agenda, it reserves the right to take items out of order. No set times are assigned to items appearing on the Town Council agenda. To: TOWN OF TIBURON TTBID Advisory Board Meeting June 13, 2013 A 1505 Tiburon Boulevard m Agenda Item: --� Tiburon, CA 94920 1' Advisory Board Town of Tiburon Tourism Business Improvement District From: Town Attorney Subject: Recommendation to Consider and Approve Report Regarding the Tiburon Tourism Business Improvement District Program Reviewed By: ak�_ BACKGROUND AND ANALYSIS In 2007, the Town created the Tourism Business Improvement District ( "TTBID ") to levy assessments to fund tourism promotion activities. Until March of this year, the Town contracted with the Marin County Visitors Bureau ( "MCVB ") to implement the TTBID program. In March of this year, the Town Council responded to the requests of the assessed businesses, the Town's lodging establishments, and approved an agreement that severed the Town's relationship MCVB. This was the first step in creating a local tourism improvement program. As the next step in the process, the Council created this Advisory Board, naming as members Town Council member Jim Fraser, Town Manager Peggy Curran and one representative from each of the Town's hotels. The Board's immediate task is to prepare and approve a Report that will govern the TTBID program for the upcoming fiscal year. Staff has prepared the attached draft for the Board's consideration. The draft report recommends that the Town use the TTBID assessments to fund a pilot marketing program, administered by the Town Manager in consultation with the TTBID beneficiaries — the Town's lodging establishments — and other interested parties. We expect that the TTBID program will consist of the following activities: • A broad -based destination marketing campaign to raise Tiburon's profile as a premiere location for vacations, conferences, meetings and other events. This campaign will be directed both at leisure tourists and at travel, event and conference professionals. • Market research to determine the best means of attracting customers to the assessed businesses. • Strategies to raise Tiburon's profile on the internet and in social media. • Creation and distribution of maps, brochures, advertising materials and similar tourism - related documents that support the TTBID mission. 33 q • Representation at trade conferences and other events directed towards the tourism and event industry. • Identification and implementation of opportunities to attract favorable media attention to the Town (an example is the Town's sponsorship of the America's Youth Cup TEAM USA45). • Provision of visitor services to improve room night consumption. After the Board approves the Report, in its current form or with modifications, staff will forward the document to the Town Council for consideration and approval. The Council may make its own amendments before approving the final document. To fund the proposed TTBID program, Council would also adopt a resolution declaring the Town's intention to continue the TTBID assessments and setting the matter for a public hearing to consider protests from the assessed businesses. If there is no majority protest, the Council may confirm the assessments. RECOMMENDATION Staff recommends that the TTBID Advisory Board: 1. Consider the draft Advisory Board Report and take public testimony thereon. 2. Direct staff to make any desired changes to the Report; and 3. Approve the Report with said changes and direct staff to submit it to the Town Council at its next regular meeting. Exhibit: Draft Report of the TTBID Advisory Board Prepared By: Ann R. Danforth, Town Attorney TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD REPORT To: Mayor and Members of the Town Council From: TTBID Advisory Board Subject: Report of the TTBID Advisory Board re TTBID Funding and Program; Recommendation to Approve Report Date: June 13, 2013 Reviewed By: I. BACKGROUND The Town Council formed the Tiburon Tourism Business Improvement District ( "TTBID ") in 2007. The impetus behind that action was the request from Town's two hotels, the Lodge at Tiburon and the Water's Edge, to join the Marin County tourism promotion effort. The Marin County Visitors Bureau ( "MCVB ") administers the County progrii which is funded by Marin County Tourism Business Improvement District and is -,for the benefit of hotels that District. The TTBID originally imposed assessments of 1 %0 of gross hotel revenue. In 2011, the Town raised the amount of the assessment from 1% to 2% of gross hotel revenue, also at the hotels' request. Pursuant to the Town's contract with the MCVB, the Town transmitted the TTBID funds to MCVB and MCVB included the Town in its promotional program. Beginning in 2012, the hotel representatives began to' question whether the County -wide program was the best use of TTBID funds. In several meetings with Town officials, the hotels indicated that they would prefer a locally focused program that specifically promoted the Town as an overnight destination. Town officials agreed to pursue such a program. Accordingly, in March of this year, the Town severed its contractual relationship with the MCVB. This action has two practical consequences. First, the Tom is now fully responsible for complying with the procedural laws governing business assessmerit,districts; the County previously handled most of that process. Second, the Town must now develop, :and implement the business improvement program that will utilize the assessment revenue to benefit the businesses that pay the assessments. II. TTBID Program A. Procedural Requirements. The Town created the TTBID in 2007 pursuant to the Parking and Business Improvement Area Law of 1989, Section 36500 et seq. of the California Streets and Highways Code (the "Act "). The formation process required several Council meetings and a public hearing to hear any protests. At the end of that process, the Council adopted an ordinance that created the TTBID and levied the assessments on lodging establishments within the Town. In 2011, the Town went through a similar process to increase the assessments. TOWN OF TIBURON PAGE 1 OF 4 EXHIBIT The Act includes annual reporting responsibilities that now fall to the Town. The Council took the first step on May 15th by appointing the Advisory Board for the TTBID. Each year, the Advisory Board will prepare a report. Under Section 36533 of the Act, the Report must contain the following: 1. The improvements and activities to be provided for the upcoming fiscal year, i.e., the business improvement program. 2. An estimate of the cost of the business improvement program for that fiscal year. 3. 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. 4. The amount of any surplus or deficit revenues to+' Carried over from a previous fiscal year. 5. The amount of any contributions to be made from sources other than assessments levied pursuant to this part. Several of these items do not apply because this is the first year of the Town's program. This Report addresses the applicable issues in Section II.B, below. The Council must review this report at a public meeting. If th& Qo.uncil approves the report, either in its current form or with changes, the, Council should adoptahe attached Resolution of Intention, which sets a public hearing on the proposed program. Please note that the original TTBID formation documents expressly stated that the Town would use the assessment funds to participate in the County -wide program. The Resolution of Intention includes modifying the permissible use of the funds, as proposed by the wo hotels. After the Council adopts the Resolution of Intention, staff will provide notice as required by the Act. On the stated date, Council would hold the public hearing and consider any protests from the assessed businesses (i.e., the Town's lodging establishments). Assuming no majority protest, the Council would adopt a resottttion confirming the report and levying the assessments. At this same meeting, the'Council should =Inntroduce an ordinance amending Chapter 7A of the Municipal Code to reflect the redirection of theTTBID funds. The Council would adopt the ordinance at its next meeting. B. Tourism Business Improvement Program. 1. Improvements and Activities This will be the Town's first year undertaking this endeavor, which the Town Manager will implement as a pilot program. Town staff has worked closely with the hotels' representatives and marketing professionals to lay the groundwork for our local program. The Town Manager will continue that consultation process with the assessed businesses and others to develop and fund specific activities over the upcoming months. We expect that the TTBID program will consist of the following: • A broad -based destination marketing campaign to raise Tiburon's profile as a premiere location for vacations, conferences, meetings and other events. This ..... ........ .............. ..... ._................ ......... EXHIBIT campaign will be directed both at leisure tourists and at travel, event and conference professionals. • Market research to determine the best means of attracting customers to the assessed businesses. • Strategies to raise Tiburon's profile on the internet and in social media. • Creation and distribution of maps, brochures, advertising materials and similar tourism - related documents that support the TTBID mission. • Representation at trade conferences and other events directed towards the tourism and event industry. • Identification and implementation of opportunities to attract favorable media attention to the Town (an example is the Town's sponsorship of the America's Youth Cup TEAM USA45). • Provision of visitor services to improve room night consumption. The Board does not expect that Town staff will undertake these _activities directly. Marketing lies well outside the normal business of running a local government, which is staff's primary responsibility. The Board recommends that the Town Manager retain a consultant or consultants to assist in further program development and implementation. 2. Revenues. The TTBID raised $109,309 in assessment;revenues in Fiscal Year2011 -2012 and is on track to raise a similar amount in Fiscal Year 2012 -2013. The Town also currently holds $48,649 in accumulated revenue since the termination of the Town's agreement in March of this year. We expect the revenues to remain fairly stable during Fiscal Year 2013 -2014, with modest increases thereafter. The Advisory Board expects to expend the full amount of assessment revenue to the TTBID program. Any sums remaining would be carried over to the 2014 -2015 program. 3. Method and Basis of Assessment The basis for the assessment will not change. When the Town created the TTBID, the MCVB recommended that the Town calculate the assessment level as a percentage of gross receipts, indicating'that the benefit to the assessed businesses would be commensurate with those receipts. Both ofthe Town's lodging establishments supported that level of assessment. The Town deferred tp tide joint expertise y f the MCVB and the hotels. The hotels continue to support the 2% of gross receipts assessment and the Advisory Board accepts their judgment. 4. Surplus or Deficit Revenues to be carried over. As noted above, the TTBID currently holds $38,155 of accumulated revenue. The Town has expended approximately $1,960.00 to date on hotel advertising, at the joint request of the hotels. The Board recommends ratifying this expenditure. The remaining $46,689 will be carried over and expended in Fiscal Year 2013 -2014. ................ _..__.. EXHIBIT 5. The Amount of Contributions from non - TTBID Sources. Other sources of income are unknown at this time. However, the Advisory Board recommends exploring participation from local merchants that could benefit from tourism promotion activities. FINANCIAL IMPACT None. The Town will continue to collect the 1 % administrative allowance as provided by law. All remaining funds would be expended on the TTBID program without further contributions from the Town. RECOMMENDATION The Advisory Board recommends that the Town Council: 1. Hear public testimony and make any desired changes to the Advisory Board Report; and 2. Move to approve a Resolution Approving the Report, Declaring the Town's Intention to Levy Assessments as set forth herein and setting a Public Hearing on said Assessments. EXHIBIT