Hold a public hearing regarding the establishment of the Yolo County Tourism Business Improvement District, adopt resolution declaring results of majority protest proceedings and establishing a Tourism Business Improvement District, approve contract with Yolo County Visitor's Bureau regarding a Tourism Business Improvement District assessment pass-through and related responsibilities and waive the administrative fee associated with collecting and processing assessments. (No general fund impact) (Pinedo/Tengolics)

Holding the final hearing, declaring results of the majority protest proceedings, and adopting the resolution (Att. A) will result in the renewal of the Yolo County Tourism Business Improvement District (YCTBID) and the levy of assessments on lodging businesses with four (4) rooms or more within the boundaries of the YCTBID.
 
The YCTBID is a benefit assessment district designed to help fund marketing and public relations and community marketing programs for Yolo County lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The renewed YCTBID shall include all lodging businesses, existing and in the future, with four (4) rooms or more located within the boundaries of unincorporated Yolo County and the cities of Davis and Winters.
 
Lodging business owners decided to pursue renewal of the YCTBID in order to continue a revenue source devoted to marketing Yolo County as a tourist, meeting and event destination. If renewed, the YCTBID would generate approximately $430,000 on an annual basis for promotion of travel and tourism specific to Yolo County.

The Management District Plan (Att. B)  includes the proposed boundary of the renewed YCTBID, a service plan and budget and a proposed means of governance. The YCTBID shall include all lodging businesses, existing and in the future, with four (4) rooms or more located within the boundaries of unincorporated Yolo County (County) and the cities of Davis and Winters (cities). Staff understands that Visit Yolo and the City of Woodland have reached a tentative agreement regarding the disposition of unspent assessments generated by Woodland hotels under the 2017 YCTBID and future collaborative opportunities. 
 
The renewed YCTBID will have a seven (7) year life, beginning July 1, 2022, or as soon as possible thereafter, and end seven (7) years from its start date. Once per year, beginning on the anniversary of YCTBID renewal, there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a Board of Supervisors hearing on YCTBID termination. 
 
The annual assessment rate shall be two percent (2%) of gross room rental revenue.  After the initial year, the assessment rate may be increased annually to a maximum of four percent (4%) of gross short-term room rental revenue as described in Section VI of the Management District Plan.  The assessment rate may also be decreased, but shall never drop below two percent (2%) of gross short-term room rental revenue.  The maximum annual assessment increases or decreases shall be one half percent (0.5%) per year. Based on the benefit received, the assessment shall not be collected on: stays of more than thirty (30) consecutive days and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. 
 
The County and cities shall be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each assessed lodging business located in the YCTBID, within their respective jurisdictions.  The County and the cities shall take all reasonable efforts to collect the assessments from each assessed business. The attached amendment (Att. C) will extend the agreement with the Yolo County Visitor's Bureau regarding the Tourism Business Improvement District assessment pass-through and related responsibilities and waive the administrative fee associated with collecting and processing assessments.