Title
Planning and Building Department, Economic Development Division, recommending the Board:
1) Find that the continued support for the Take Care Billboard Campaign provides a public benefit by providing education to limit the environmental impacts of tourism through billboard advertisements targeted at visitors coming into the Lake Tahoe area; and
2) Approve and authorize the Chair to sign Agreement 7589 with Tahoe Fund to provide a funding contribution for the Winter 2022-23 Take Care Billboard Campaign for the period of December 12, 2022, through April 16, 2023, with a not-to-exceed amount of $5,000, and a term expiring on June 30, 2023.
FUNDING: Transient Occupancy Tax (TOT).
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DISCUSSION / BACKGROUND
The Transient Occupancy Tax (TOT), or Hotel/Motel Occupancy Tax, is a tax imposed on the daily rental price of a room in a lodging facility, including vacation home rentals, when used by visitors staying in the unincorporated portions of El Dorado County for a period of 30 days or less. Neither the tax code nor El Dorado County Ordinances require any specific use of TOT funds; however, TOT funds have been directed to the Planning and Building Department, Economic Development Division (Economic Development), to offset operational expenses as well as other various tourism related expenses, including Funding Agreements to promote tourism and economic development.
On April 13, 2021 (File No. 21-0599, Item No. 4), the Board approved a Funding Agreement with Tahoe Fund for the provision of funding the Summer 2021 Billboard Campaign, a 16-week visitor education effort from May 24, 2021, to September 12, 2021. The Board authorized payment of $5,000 for this Community Funding Request, utilizing General Fund Community Funding appropriations.
On October 12, 2021 (File No. 21-1605, Item No. 8), the Board approved a Funding Agreement with Tahoe Fund for the provision of funding the Winter 2021-22 Billboard Campaign, a 16-week visitor education effort from December 13, 2021, to April 4, 2022. The Board authorized payment of $5,000 for this Community Funding Request, utilizing General Fund Community Funding appropriations.
On July 19, 2022 (File No. 22-1281, Item No. 18), the Board approved a Funding Agreement with Tahoe Fund for the provision of funding the Summer 2022 Billboard Campaign, an 18-week visitor education effort from May 23, 2022, to September 25, 2022. The Board authorized payment of $5,000 for this Community Funding Request, utilizing General Fund Community Funding appropriations.
The Winter 2022-23 Billboard Campaign is scheduled to run from December 12, 2022, to April 16, 2023. Digital billboards during this period are placed at various locations along Interstate 80 and U.S. Highway 50, with the purpose of targeting travelers coming into the Tahoe area. The digital billboards display messages aimed at helping to protect the environment and safety of the community and have the ability to display important messages focused on specific issues or holidays.
The proposed Funding Agreement 7589 supports Tahoe Fund’s endeavor, which seeks to limit the environmental impacts of visitation in South Lake Tahoe, by helping fund the digital billboard along U.S. Highway 50, near Rancho Cordova. Although previously funded by General Fund - Other Operations (Department 15) and allocated in the budget available for Community Funding Requests supported by the Board, it was determined that beginning with the Winter 2022-23 Billboard Campaign, the use of TOT funds for this Funding Agreement and any future proposed funding agreements align with the Board’s Budget Policy (B-16). Policy B-16, Section II, Item No. 13, states that “Transient Occupancy Tax revenue shall be directed toward the impact of tourism and economic development, with consideration for support of tourism and promotional activities within the County and for continued support for grant fund allocations to support Veteran programs within the County.”
ALTERNATIVES
The Board may choose not to approve the proposed funding contribution. This would prevent the County from contributing to the Winter 2022-23 Billboard Campaign.
PRIOR BOARD ACTION:
See Discussion/Background above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management have approved the proposed Funding Agreement.
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this item. Funding for these services is available through savings in Economic Development’s Fiscal Year 2022-23 Budget, and funding beyond Fiscal Year 2022-23 will be included in proposed TOT funding allocations and administered by the Chief Administrative Office.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on two (2) original copies of the Funding Agreement; and
2) The Clerk of the Board will forward one (1) fully-executed original Funding Agreement to the Chief Administration Office, Procurement and Contracts Division, for further processing.
STRATEGIC PLAN COMPONENT
Good Governance: Evaluate requests and recommendations based on complete assessment of the best available information, with the goal of reaching well informed decisions.
Public Safety: Improved communication and coordination between public safety and other agencies and the public.
CONTACT
Kyle Zimbelman, Economic and Business Relations Manager
Planning and Building Department