CITY OF MORRO BAY Tourism Business Improvement District (TBID) Advisory Board
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1 CITY OF MORRO BAY Tourism Business Improvement District (TBID) Advisory Board City Mission Statement The City of Morro Bay provides essential public services and infrastructure to maintain a safe, clean and healthy place for residents and visitors to live, work and play. Tourism Business Improvement District Purpose and Authority The Morro Bay Tourism Business Improvement District (MBTBID) Advisory Board ( Board ) advises the City Council on the administration and use of the MBTBID assessment funds. The Board recommends projects to the City of Morro Bay to promote tourism to directly benefit the City s lodging industry. The primary purpose of the MBTBID is to increase occupancy and room nights across all lodging types (motel, hotels, bed and breakfast) that pay the business improvement assessment (BID) along with transient occupancy tax (TOT) within the City while placing particular emphasis on marketing that positively impacts the lodging. MEETING AGENDA THURSDAY, SEPTEMBER 21, 2017 VETERAN S MEMORIAL HALL 9:00 A.M. 209 SURF STREET, MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER PUBLIC COMMENT PERIOD Members of the audience wishing to address the TBID Board on matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Board at this time. A. CONSENT AGENDA - None B. BUSINESS ITEMS B-1 JULY 2017 TRANSIENT OCCUPANCY TAX (TOT) REPORT AND YEAR OVER YEAR TOT REPORT; (TOURISM MANAGER) RECOMMENDATION: Receive and file. B-2 AUGUST 2017 MARKETING, PUBLIC RELATIONS, UPDATE; (TOURISM MANAGER) RECOMMENDATION: Receive and file. B-3 UPDATE TO POTENTIALLY INCLUDING VACATION RENTALS AND RV PARKS IN THE TBID ASSESSMENT; (DEPUTY CITY MANAGER) RECOMMENDATION: Receive and file. TBID Page 1 of 38
2 B-4 HIGHWAY 1 OUTDOOR BOARD CONCEPTS; (TOURISM MANAGER) RECOMMENDATION: TBID Board review and select one billboard design for production and installation B-5 UPDATE ON LIGHTED BOAT PARADE & 12-DAYS OF CHRISTMAS EVENTS (TERI BAYUS) C. DECLARATION OF FUTURE ITEMS D. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS, OR CALL CITY HALL AT FOR FURTHER INFORMATION. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. TBID Page 2 of 38
3 CITY OF MORRO BAY TRANSIENT OCCUPANCY SUMMARY FISCAL YEAR 2017/18 AGENDA NO: B-1 MEETING DATE: September 21, 2017 (A) (B) (C) (D) (E) (F) (G) (H) (B+E+G) TRAILER VACATION MOTEL TRAILER PARK VACATION RENTAL MOTEL TAX OCC MOTEL PARK TAX RENTAL TAX TOTAL TAX RECEIPTS COLLECTED RATE #RMS RECEIPTS COLLECTED RECEIPTS COLLECTED COLLECTED TMD MBTBID JULY $3,878, $387, % 915 $293, $29, $754, $75, $492, $49, $116, AUGUST $0.00 $0.00 0% 917 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 SEPTEMBER $0.00 $0.00 0% 917 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 OCTOBER $0.00 $0.00 0% 917 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NOVEMBER $0.00 $0.00 0% 917 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 DECEMBER $0.00 $0.00 0% 916 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 JANUARY $0.00 $0.00 0% 917 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 FEBRUARY $0.00 $0.00 0% 917 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MARCH $0.00 $0.00 0% 912 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 APRIL $0.00 $0.00 0% 916 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MAY $0.00 $0.00 0% 914 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 JUNE $0.00 $0.00 0% 916 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $3,878, $387, $293, $29, $754, $75, $492, $49, $116, CITY OF MORRO BAY TRANSIENT OCCUPANCY SUMMARY FISCAL YEAR 2016/17 (A) (B) (C) (D) (E) (F) (G) (H) (B+E+G) TRAILER VACATION MOTEL TRAILER PARK VACATION RENTAL MOTEL TAX OCC MOTEL PARK TAX RENTAL TAX TOTAL TAX RECEIPTS COLLECTED RATE #RMS RECEIPTS COLLECTED RECEIPTS COLLECTED COLLECTED TMD MBTBID JULY $3,926, $392, % 915 $315, $31, $719, $71, $496, $49, $117, AUGUST $3,206, $320, % 917 $234, $23, $514, $51, $395, $39, $96, SEPTEMBER $2,650, $265, % 917 $216, $21, $337, $33, $320, $32, $79, OCTOBER $2,248, $224, % 917 $181, $18, $291, $29, $272, $27, $67, NOVEMBER $1,701, $170, % 917 $159, $15, $285, $28, $214, $21, $51, DECEMBER $1,473, $147, % 916 $135, $13, $261, $26, $187, $18, $44, JANUARY $1,156, $115, % 917 $98, $9, $195, $19, $145, $14, $34, FEBRUARY $1,161, $116, % 917 $102, $10, $151, $15, $141, $14, $34, MARCH $1,728, $172, % 912 $169, $16, $187, $18, $208, $20, $51, APRIL $2,331, $233, % 916 $194, $19, $361, $36, $288, $28, $69, MAY $2,312, $231, % 914 $193, $19, $328, $32, $283, $28, $69, JUNE $2,859, $285, % 916 $259, $25, $581, $58, $370, $37, $85, $26,757, $2,675, TOTFY17-18 $2,259, $225, $4,216, $421, $3,323, $332, $802, TBID Page 3 of 38
4 TOT July Year to Year Comparison Monthly July Comparison $4,000, July Comparison 2017 vs 2016 Motel Receipts $3,900, $3,800, $3,700, $3,600, $3,500, Total Motel Receipts $137 $138 $162 $165 84% 84% REV PAR ADR OCC RATE TOTAL ROOMS IN JULY TOTAL JACKRABBIT LEADS: 5,011 MARKET FACTORS FOR JULY 2017 VALLEY WEATHER DAYS OVER ART IN THE PARK JULY 4TH HOLIDAY ROCK TO PIER RUN HWY 1 CLOSED MORRO BAY WEATHER DAYS OVER TBID Page 4 of 38
5 SLO County TOT Comparison Location 15/16 TOT 16/17 TOT # Rooms 15/16 # Rooms 16/17 % Increase Paso Robles 4,728,909 5,407, * Atascadero 1,242,263 1,337, Morro Bay 3,142,078 3,323, San Luis Obispo 7,154,334 7,357, Cambria 3,597,104 3,658, Pismo Beach 9,199,947 9,346, San Simeon 1,821,616 1,398, *Added 64 rooms 16/17 TBID Page 5 of 38
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7 AGENDA NO: B-2 MEETING DATE: September 21, 2017 Morro Bay Tourism August 2017 Marketing Report Web Stats Website Unique Visitors: 25,689(-1% Y/Y) Total Jack Rabbit Searches: 6,502 (+67% Y/Y) Jack Rabbit Referrals to Lodging: 3,373 (+12% Y/Y) Paid Advertising Stats Month Media Cost Impressions Clicks CTR CPC Total Conversions Cost Per CV CV Rate July $10,166 2,929,124 3, % $ ,622 $ % August $17,666 3,009,652 7, % $ ,432 $ % Public Relations Influence August Earned Media Impressions 215 M Ad Equivilency $1.45 M Publicity Value $4.35 M Social Media Influence Y/Y August Facebook Followers Facebook Video Views Facebook Engagement Instagram Followers Instagram Engagement Twitter Followers ,373 23,700 9,943 7,404 37,381 1, , ,300 38,595 11, ,110 2,020 Campaigns and Asset Development 1. Event Videos for Social Media Promotions: Concerts on the Bay Video Harbor Festival/Fishing Tournament Holiday Events Video Birds and Butterflies Soar into Spring: March/April Campaign 1 TBID Page 7 of 38
8 2. Promoted September Events Eblasts to LA Magazine and LA Times Landed Avo and Marg PR coverage in LA Times, Travel & Leisure & Smithsonian.com 3. MBT Concerts on the Bay Promotions VIP Package & Tix Giveaways on KCBX, KTLA and Facebook USC, LA Magazine, LA Times eblasts in August and September 4. Winter Shoulder Season Campaign to start running October 15, 2017 Kids Get Free Stuff runs through December 5. Fall Shoulder Campain August 15 October 15, 2017 Get Free Bottle of Wine When You Stay 2 Nights September/ October Sample Feature PR Coverage Budget Travel UVPMs: 279,025 Ad Value: $1,395 Sunset Magazine beaches?&promkey=xet&iid=newsletter-su-weekend &utm_source=sunset.com&utm_medium= &utm_campaign=weeklynewsletter&utm_content= PM#pismo-preserve UVPMs: 1,247,957 Ad Value: $6,235 Oyster.com UVPMs: 2,360,560 Ad Value: $11,800 KCBX Morro Bay is open for Business Series UVPMs: 117,945 Ad Value: $1,500 Surfer Magazine UVPMs: 891,960 2 TBID Page 8 of 38
9 Ad Value: $4,455 Visiting Journalists August o Tobey Grumet Segal, CondeNaste, Today.com, July 31 - August 2 o Tom Wilmer, NPR, story about Highway 1 open for business o Vaughn Lowery, 360 Magazine, Aug 16 September o Alexander Hafizi, Associate Publisher, Elite Magazine, September o Mary A Charlebois, Go Nomad, September Pending Coverage Budget Travel Los Angeles Times 7X7 online KTLA News CondeNaste Today.com TravelswithBaby.com FamilyTravel411 Red Tricycle Bindu Media NPR Fodors KGO USA Today Smart Meetings 3 TBID Page 9 of 38
10 August 2017 Press Clips & Coverage Stats Press Release: Fall Food Events and Concerts Rock Morro Bay, CA TBID Page 10 of 38
11 AUGUST 2017 PRESSCLIPS &COVERAGESTATS SUMMARY 218M 199K 2.24K o n l i n e re a d e rs h i p : e s ti m a te d co ve ra g e vi e w s : s o ci a l s h a re s : M 1.45M l i n ks f r o m co ve ra g e : p u b l i ci ty va l u e : TBID Page 11 of 38 a d e q u i va l e n cy:
12 Budget Travel Aug (est.) m onthly vis its : 279K (est.) coverage views: 1.25K links from coverage: VJ Robert Firpo-Cappielo TBID Page 12 of 38
13 SunsetMagazine Aug (est.) m onthly vis its : 1.25M (est.) coverage views: 3.7K 1 Morro Bay Skate Board Museum Pitch TBID Page 13 of 38
14 oyster.com Aug (est.) m onthly vis its : 2.36M (est.) coverage views: 11.6K 1.3K TBID Page 14 of 38
15 surfer.com Aug (est.) m onthly vis its : 892K (est.) coverage views: 3.89K 450 Journalist is from Morro Bay TBID Page 15 of 38
16 KCBX Journeys of Discovery Aug (est.) m onthly vis its : 29.7K (est.) coverage views: Pitched VJ Tom Wilmer on doing a We are Openfor Business Story TBID Page 16 of 38
17 KCBX Journeys of Discovery Aug (est.) m onthly vis its : 29.7K (est.) coverage views: 195 links from coverage: Pitched VJ Tom Wilmer about doing a We are Open for Business Story TBID Page 17 of 38
18 newkerala.com news Aug (est.) m onthly vis its : 162K (est.) coverage views: TBID Page 18 of 38
19 KCBX Journeys of Discovery Aug (est.) m onthly vis its : 58.6K (est.) coverage views: 385 links from coverage: 2 2 Pitched VJ Tom Wilmer on doing a We are Openfor Business Story TBID Page 19 of 38
20 theautochannel.com Aug (est.) m onthly vis its : 211K (est.) coverage views: 1.15K 3 TBID Page 20 of 38
21 PR Newswire Jul (est.) m onthly vis its : 7.37M (est.) coverage views: 8.52K links from coverage: 10 5 TBID Page 21 of 38
22 760kfmb.com San Diego Aug (est.) m onthly vis its : 41.8K (est.) coverage views: 964 links from coverage: 9 TBID Page 22 of 38
23 MarketWatch Aug (est.) m onthly vis its : 46.3M (est.) coverage views: 47.1K links from coverage: 8 TBID Page 23 of 38
24 forimmediaterelease.net Aug (est.) m onthly vis its : 1.7K (est.) coverage views: 94 links from coverage: 10 TBID Page 24 of 38
25 LA Biz Journal (est.) m onthly vis its : 13.1M (est.) coverage views: 15.1K TBID Page 25 of 38
26 San Francisco bizjournals.com (est.) m onthly vis its : 13.1M (est.) coverage views: 15.1K TBID Page 26 of 38
27 San Jose Biz Journal (est.) m onthly vis its : 13.1M (est.) coverage views: 15.1K TBID Page 27 of 38
28 Yahoo.com Aug (est.) m onthly vis its : 146M (est.) coverage views: 26.5K links from coverage: 9 TBID Page 28 of 38
29 MarketWatch Aug (est.) m onthly vis its : 46.3M (est.) coverage views: 47.1K links from coverage: 8 TBID Page 29 of 38
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31 AGENDA NO: B-3 MEETING DATE: September 21, 2017 Staff Report TO: Tourism Business Improvement District Board DATE: September 7, 2017 FROM: SUBJECT: Ikani Taumoepeau, Deputy City Manager Update to Potentially Including Vacation Rentals and RV Parks in the TBID Assessment RECOMMENDATION Staff recommends the Tourism Business Improvement District (TBID) Board review and discuss the possibility of including vacation rentals and RV parks in the TBID assessment district. BACKGROUND In 2009, the City of Morro Bay established the TBID with a 3% assessment of gross room rates to all hotels within the city boundaries. The assessment was designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, motel, or bed and breakfast that pays Transient Occupancy Tax (TOT). The TBID was formed under the Parking and Business Improvement Area Act of 1989 (the 1989 Act ) to raise revenue for specific purposes as defined by state law and incorporated into a city ordinance. The objective of TBID funds is to defray the costs of services, activities, and programs promoting scenic, recreational, and cultural attractions in the city to drive tourism and directly benefit the operators of lodging establishments. According to a city staff report from 2009, the hoteliers petitioning for the proposed TBID requested that vacation rentals not be included in the TBID initially. At the time, the hoteliers were concerned that: 1) it would take time to poll them, and 2) the vacation rentals may already have contracts or rental agreements in place for that upcoming summer. The city and TBID considered phasing in the vacation rentals that following year (2010), which never happened. At the November 10, 2016 TBID meeting, the Board directed staff to analyze the rate scenarios of potentially including vacation rentals and RVs in the assessment district. At the December 8, 2016 TBID meeting, the Board appointed Charlie Yates and Margaret Juren as sub-committee members for the project. The Board directed staff to meet with the sub-committee and discuss public outreach strategy to possibly include vacation rentals (VRs) and RV parks into the TBID assessment area. Prepared By: _IT Deputy City Manager Review: TBID Page 31 of 38
32 At the January 19, 2017 TBID meeting, staff and the sub-committee made the recommendation not to proceed with the inclusion of VRs and RV parks in the assessment area, but to reconsider the topic again in FY The staff and sub-committee felt it important to focus on excellence in tourism with the recent transition of TBID to the city, but return to the topic the upcoming fiscal year. DISCUSSION As we enter Fiscal Year 17-18, staff and TBID would like to not only discuss the topic, but invite all stakeholders to share their input. Staff has reserved the Vets Hall for Tuesday, October 24, 2017 to have a town hall meeting about possibly including vacation rentals and RV Parks in the assessment area. Staff plans to send fliers to all lodging property owners on record by the end of September. It is essential for property owners to keep their personal contact information updated with the City. There are some properties that submit the property manager s contact information in place of the owner. If this is the case, it will be up to the property manager to forward the flier and town hall information to the property owner. Property owners and stakeholders that may be out of the area on this date and unable to attend will have the opportunity to write their comments to TBID, which will be available for the public to view online. Comments should be ed to TBID@morrobayca.gov by 11:59 PM on Tuesday, October 17, 2017, to be posted for the town hall meeting. The goal of the town hall meeting is to bring the Morro Bay lodging industry together to discuss the possible inclusion of vacation rentals and RV parks joining hotel/motels in the TBID assessment district. There is value for the lodging industry to work together in the assessment district, but there are also impacts and questions that will need to be discussed and answered at the town hall meeting. One of the questions from the lodging industry is, If VR and RV parks are included in the assessment district, what rate should they be pay? The answer to this question may vary depending who is asked, but, it is important to understand what the assessment revenues are used for, which is to fund destination marketing efforts and promotion for Morro Bay. Currently hotels/motels are assessed 3% of gross room rates. According to Ordinance No. 546, which established the TBID in 2009, section states that the proceeds of the TBID assessment and any other voluntary contributions shall be spent to administer marketing and visitor programs to promote the City of Morro Bay as a tourism visitor destination. Assessments are based solely on benefits and only the group receiving the benefit should be paying assessed rates, versus the group that is not receiving the benefit, should not pay. Since the TBID was created to fund the marketing and promotion efforts to enhance the tourism industry in Morro Bay, the group directly affected by TBID assessment fund is the lodging industry. Potential benefits to the VRs and RV parks include: Addition of the property listing on the tourism website MorroBay.org o Currently Morro Bay Tourism marketing efforts drive over 240,000 unique visitors per year to MorroBay.org o Active booking engine on website can expand to include vacation rentals and RV parks o 36,282 searches for lodging TBID member over the last 12 months o 25,898 website referrals to lodging TBID member over the last 12 months Increased collaboration between property management firms and tourism Increased revenues for destination marketing efforts for Morro Bay Attracts higher quality guests by being part of a cohesive destination outreach effort TBID Page 32 of 38
33 According to the transient occupancy tax data reflecting Fiscal Year 16-17, if the VRs and RV parks were included in the TBID assessment district, the following breakdown would represent the weighted vote: the hotels/motels %, vacation rentals 12.67%, and RV parks 6.80%. Hotels/Motels were assessed approximately $802,722 in Fiscal Year The following table reflects the various assessed rates that the VRs and RV parks would ve paid if they were part of the assessment district. Optional TBID Assessments - FY 16/17 % VR RV Total 3% $67, $126, $194, % $45, $84, $129, % $22, $42, $64, CONCLUSION Staff recommends the Tourism Business Improvement District (TBID) Board review and discuss the possibility of including vacation rentals and RV parks in the TBID assessment district. If VRs and RV parks are included in the TBID assessment area, the groups will need to receive benefits, which will be discussed in further detail in the town hall meeting on October 24, TBID Page 33 of 38
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35 AGENDA NO: B-4 MEETING DATE: September 21, 2017 Staff Report TO: Tourism Business Improvement District Board DATE: September 15, 2017 FROM: SUBJECT: Jennifer Little, Tourism Manager Highway 1 Outdoor Billboard Concepts RECOMMENDATION TBID Board review and select one billboard design for production and installation. BACKGROUND Morro Bay Tourism leases a billboard on a private ranch located approximately 2 miles east of Morro Bay off Highway 1. The monthly lease of this board is contracted at $500 per month. The sign sits on the east side of the highway and has been up for 16 months and is ready to be replaced. Currently bushes adjacent to the sign are obstructing view of the bottom portion, but the land owner will trim the bushes this month. The billboard shows signs of wear and tear as the top section (extension) has fallen due to strong winds. Total cost to replace the current board with a new flex-face plus a new extension and reflective paint will run: Billboard Printing: $2,011 Extension $500 Install: $805 Reflective Tape for Text: $1,462 (optional, but there is no night lighting) Total: $4,778 CONCLUSION Review and discuss the five new billboard options and approve one design for installation. ATTACHMENTS 1. Photo of actual location 2. Creative concepts Prepared By: JL Deputy City Manager Review: IT TBID Page 35 of 38
36 Hwy 1 Board location Natural bush invading board readability TBID Page 36 of 38
37 Creative Concepts TBID Page 37 of 38
38 TBID Page 38 of 38
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