i'll call to order the meeting of may th of the santa barbara city council finance committee is there anyone in the audience who would like to speak to any item that is not on our agenda seeing no one will go to the first item on our agenda it over the airport board department to start us off good afternoon my name is tom bowlers i'm with the airport department i'm an added administrative analyst with the department as you may recall we came to council about a week ago to talk a little bit about our light industrial development at the airport and council referred the proposed appropriation of funds to the finance committee to talk a little bit about the terms of our proposal so i just wanted to go through that a little  bit again just a little background eight acres of land was sold to direct relief in two thousand and fourteen for about eight seven million dollars the airport took that money and created a development fund to develop  further light industrial buildings on the airport property that development fund then would fund future construction by splitting its revenues between the airport operating fund and the airport development so again just to kind of go over the the site you can see an orange here the project location north of hollister avenue pretty much across the street from the airport administration building and just west of the airport long term parking lot too  quickly the site plan this would be at full build out its forty seven thousand square feet approximately nine buildings we received construction bids for the project in january we bill bid five buildings we actually awarded three of those buildings to tomar construction for a total of about five four million dollars  project budget didn't have enough money to do buildings four and five so that's kind of what we're talking about doing is funding those extra buildings so again buildings one two and three building one is about three eight hundred square feet of retail space building two and three are mirror images of each other about four four hundred square feet of light industrial space that contract award also included storm water treatment and landscaping for the entire site and also parking lots and sidewalks and street lighting and all the infrastructure that's associated with those three buildings so kind of just to locate those here on the site plan those are the three buildings closest to frederick lopez road the retail building is the one located right on the easternmost portion of the buildings four and five are about four seven hundred square feet each located in the middle of the site again light industrial buildings there's associated infrastructure that would need to be built for those buildings parking lots in sidewalks again lighting the the bids in january came in at about three four million dollars and again that was about three million dollars over budget we're proposing to do is the transfer three one million dollars from the city general fund to be repaid at three and a half percent interest over nine years that three one million dollars includes interest for about one year while the buildings are being constructed and before they start generating revenue and then the the the loan would be repaid from the airport development fund so those five buildings would be generating revenue and that revenue would then pay back the general fund ultimately be backed by the airport operating fund and it it's kind of just looking at the financial impacts over fifteen year period under two scenarios here so three buildings these are the ones that are currently under construction versus the five buildings if we were to go forward with  loan from the general fund in terms of at the end of the fifteen year period operating fund under the three building current scenario would generate about two hundred thousand dollars more than the the five building loan scenario the development fund would earn significantly more money with five buildings five point formula five point five million dollars but after debt service that it would have have a balance of about one  million dollars after the fifteen year period versus two point six million dollars with the current three building scenario so overall the kind of summary of the revenues between the operating fund development fund about seven and a half million dollars versus four point eight million dollars and then in terms of the nets next steps we currently have buildings four and five out to bid so we need to return to council after that to award the contract and then we also need to return to council on a concurrent basis a proposed resolution to memorialize the terms of the loan agreement i guess i would just ask what what are the assumptions you're making when you're looking out at a fifteen year financial impact sure so we tried to take a more conservative view of the revenues that would be generated from the building so  each year we go to the airport commission with rental rates for different types of properties so we kind of took a middle of the road dollar forty five per square foot a month rental income for the light industrial and that about a dollar ninety a square foot for the retail component we also double check that with some some of the local commercial rental companies published quarterly reports with kind of the rates that people are asking and and receiving a quarterly basis so it's pretty consistent with that and then we inflated that about three percent a year over that fifteen year period which is pretty typical for airport leases they generally  a cost of living increase of with a minimum of three percent in a cap at eight percent what was the low point in rent in the last recession not sure they did a drop like fifty percent twenty five percent or we were we locked into longer term leases that created more of a lag  leases did drop but not the commercial industrial properties they pretty much held steady over the years i can't recall when we've ever had a significant drop we did i have to admit we did make some adjustments during the really bad times for some of the the yard use tenants reducing their rent by one or two cents per square foot but nothing dramatic on revenues so i'm guessing that's because there wasn't a big bubble there wasn't a lot of speculation right i mean that there were still businesses and you know hard working tenants and in most of our tenants quite frankly i would say eighty five to ninety percent have been at the airport for more than ten years we have tenants that have been there forty five years so they're a core group of strong businesses small but still very profitable great thank you very much any other questions i have some questions so let me start at the beginning we sold eight acres for eight seven million dollars and the total development cost of all of these properties is eight point eight million dollars we're taking half of the revenue from the dra and applying it to this equation what am i missing there comes another heart so this the the numbers in here are just the construction cost so there's no soft costs in there so we had some soft cost to design a development there's also some construction management and then there's also the cost of the public road so we are splitting that with direct after the fifteen years this will have this over the fifteen year term it will generate seven point five million dollars is that what your performance shows so yeah there's still time there will still require time to  earn back the investment in total beyond fifteen years yes is that twenty years how long will it take to earn back the l commercial industrial area so to me it's not like it's reap you know if we pay for it then we continue to put money into the development fund half of the revenues from that the light industrial development for a future development on the north side so it's sort of a pay as you go so the seven point five million dollars isn't accounted the way i'm my perception of it isn't the right so try that again explain that to me again so you you had the sale of the building i had a million dollars eight seven yes and you're using that for this development yes one hundred percent of that for this development and you're barring additional money to finish that development or  phases that we're talking about and so you have something like ten million dollars plus invested in the project yes and then you're going to have rents over a fifteen year term that generates seven point five million dollars yes ok so my point is that after fifteen years you won't have recouped the initial investment we won't recoup the whole cost but we will recoup the amount of the loan we will have paid our fair share of the road work the sidewalk and the landscaping and the other stormwater improvements that we're doing sort of like infrastructure we will have paid in cash for three buildings and we will have repaid for the two that we're asking for the loan so once it's paid for  then it just generates extra revenue so that's the point the longer term not the fifteen year term right but is it is it twenty years to fully capitalize the investment is how much more rent term do we need to get to that profit place where you're actually making money if we didn't borrow the money no you have to borrow the money you have to build it finish it all the costs are the cost is i'd say after ten years i don't even think fifteen years i think it would have been once we pay it back then it's all revenue for the city for the airport after ten years you know once we pay the loan back then we have no debt we have fully funded facilities and we're generating revenue just like we do in all of our other buildings right because you have the eight million dollars for the purchase price initially right then that's that's an asset and did you do the present value benefit of having that eight million dollars invested and what that does differently as opposed to this development plan what if you just put that money in cds over this time period is there a we wouldn't make nearly the return i don't believe but we didn't do it but as far as i know you'd never make the money back the current rates that we're making so i'm operating fund for example we have about four and a half million dollars in reserves and we've been earning about one hundred and twenty thousand dollars in interest an okay ten years you'd make a million dollars this million and a half dollars something like that and here you're making seven and a half million dollars okay well that's a great way to compare it thank you that's exactly what i was looking for and then the reason not to do the rest of the development you know once you're borrowing money to do this now and this makes sense on these five buildings but you have the four other buildings why doesn't it make sense to borrow money to do that as well we actually haven't looked at that in total there is one other parcel up next to direct relief that i would choose to develop next as opposed to where the camper shell building is on hollister because that's an existing tenant that a revenue generating today that's correct and the other has yard use tenants in it but it would just look make the area look better if we were to develop that parcel so how long is it that you imagine that you'd million dollars about because it has parking and roadway improvements there as well as the building and another option could be bonding  and pay it out over a longer term the goal would be to move as quickly as we can to get that done so once we reach that point to where we actually are generating i think tom's forecast he shows in two thousand and twenty two thousand one hundred and twenty two the revenues falling to the bottom line at the airport are significant it almost like the old days so if we have a million eight following to the bottom line there's nothing that says we can't put more money in the development fund and move quicker it depends on what the priorities are at the time so that's really the the timing of it is how fast the development fund accumulates the funds necessary to do it right and amongst other competing needs what other developments well there will be development on the patience i'd remember with the master plan we're going to have to look at coupling our share of federal funds which is a great share because it's less than ten percent to do more ramp space probably do more taxiway connections always taking care of the aviation side we also want to buy a new boarding bridge for the terminal to complete the the whole area that we have reporting bridges and so there will be other projects along but i think that the north side is a gym for the airport it generates a lot of money and we really need to keep a focus on that as well so the development fund isn't exclusively for the north side land based uses it is a combined fund for all the capital needs at the airport actually we set it up for the north side it doesn't mean that it can't be expanded to use on the south side but it was set up for the north side so again wide wouldn't the you know whether the it makes sense from the general fund impact separate from that that's a different question but the question is why wouldn't it make sense to borrow money to complete this development is because it's the existing leases that have to be maintained and the other properties the existing leases are a month to month so that wouldn't i mean it would be a transition and we would certainly want to assist our existing tenants for relocation  that i don't see us an issue i think we just haven't looked at what it would take to pay it back but we can certainly do that because i agree it would be great to have the whole thing done okay get it done and go forward  and i tom can do the numbers and we can see if that works well i hadn't thought about the hit to the general fund i mean that could be another i don't know seven eight nine million when one of the other things i'd like to add is when we did the five buildings we wanted to make sure that the revenue from the buildings was going to be able to pay back alone over a reasonable period of time so by adding that extra building or buildings we were kind of gonna either extend the term or wind up having to subsidize the development fund from the airport operating fund so we were trying to find that sort of sweet spot we wouldn't have to do either of those things so you've run all these calculations and you've done all these different scenarios and you there's this is the sweet spot it's it's for a reasonable term of the loan yeah i think this is a good sized development and then the other so that it would be significant to the general fund you know seven to nine million dollars and that probably would make the difference between whether we can do it or not i see mister casey racing out to probably say that but but we do have the other out we either have the other  loan for the airport and what i'm trying to get to is as everybody looked at all this from all the perspectives and made sure you know if we're gonna do this is this the right exact balance point to do this or is there more or is there less and that's what i'm trying to that's why we're here exactly that's exactly a great conversation appreciate having it you know city has developer what's kind of the right call is we kind of develop out this property at the airport the original vision was to sell the property direct relief  take the money and then incrementally build out the remaining parcels that we're talking about now on the frontage of hollister take it build some of the buildings lease them up half some of the debt as you kind of accrue equity you know then kind of march on down and kind of build it out incrementally make sure that you're hitting the sweet spot on what you're marketing for and that it's leasing well and it's successful so that's why we started self financing was original financing no borrowing correct so that's why you started with the you know three to five buildings there you had the camper shell lease kind of going on financially on the self financing it was just those first three buildings came to council we released the contract on that we're then in the budget meeting and we're kind of talking about it we're looking at it we go gosh darn it we're gonna have these two kind of empty lots you know that are just begging to have something it's just gonna feel wrong how do we crack that nut and at least finish up to the camper shells that you have kind of a logical first installation of the vase and that's where we said for a modest loan from the general fund we could do it and now's the time to do it when you're in a construction you got a contractor out there and you're doing it so that's kind of the thought process of where we got to where we are today it would be a more aggressive play to take out a greater loan to do the entire frontage i probably myself have confidence that we will lease it up i think this light industrial stuff just leases itself every day the week when you talk to anyone in town in the industry  but it's just it's a bigger loan it's taken on more debt it's taking on more debt from the general fund that is kind of tied up you just do have more exposure and so we haven't been as aggressive as that so could we do it yeah with more debt you could do it but we i think we kind of like where we're at by finishing up these two parcels and kind of having a more logical development of the initial development well you may or may not get better bids on a second phase depending on the timing of the economy and though this is probably not this is probably toward the top end of the the prices so if you waited you might be better maybe but that might be something to think about in terms of when you do the next phase is that in the right cycle you could save a lot of money on construction so plug in the rest of the information i can't recall now a the other loan that the city has it's called an investment as opposed to a loan and was done in two thousand and nine i believe when we built the rental car qta the quick turn facility and storage facility for the rental cars that particular project needed to be done when we were doing the terminal or at this before we did the terminals so we could have a place for the rental cars to be and it wasn't a large enough project for bonding because it would be taxable bonds not tax free bonds and so the city at that time decided that it could be an investment for the city and the airport took out the loan to pay for that development and right now i think we have i can't recall we have quite a bit of money in reserve for that project so it's just been creating a cash flow but we can't use it for anything except for that loan but that's when we did it in two thousand and nine and i think it was a twenty year term to begin with and most recently we renegotiated the interest rate down to three and a half percent okay so these two loans are gonna be at the same interest rate there's no there's no advantage to refinancing that into these terms there's no benefit to combining them and no actually we we intend to pay it off in two thousand and twenty so you're gonna prepay that early because the cash flows have turned around and the revenues there and there's no reason to have that additional debt cost exactly the money's just sitting there yes but the reason the sweet spot in terms of this loan is be is being found because you do have that existing loan so in two thousand and twenty you will have a different debt to to asset ratio than today and so the so the nervousness about taking out too much debt changes in two thousand and twenty when you pay of the good thing about paying off that debt is that it will generate more revenue for the airport because currently the debt is paying for the construction of that building and once it's paid for then we can rent it and start generating additional revenue from the the parcel for the airport yep yeah i don't have to pay the debt you have money in your pocket right apart okay i'm just trying to make sure everybody's looked at this and i think you know it sounds like you have  but this is probably the time to think about this it's now hopefully thank you thank you any other questions yes mister casey just final comment right we we think this is a cleaner development point to build out those last two buildings and then see how the rest of the finances come up and if everything's successful you can finish out the project at a later date maybe in a good bidding climate the other policy question for you all just to be considering is the loan from the general fund and so it is tying up some of the reserves they'll still be counted as reserves the airport's good form there are ways that we could call the loan and get it from the airport but you know that's one thing then we're also gonna be recommending as part of the measure c to do something similar for paying off the remainder cost of the cabrillo pavilion construction city needs to come up with five million dollars next fiscal year if you took it all in one fiscal year it of really hits your measure c programming so we're gonna be proposing next week i believe the maybe a five year loan from the general fund to have measure c kind of pay off that debt to spread it out over a number of years so that's just kind of the other policy consideration i want you all to be thinking about is using the general fund as the bank for these loans we think it's prudent in this case and not a big exposure but something to be aware of yeah that's really important too in the context what we're talking about if we're talking about additional debt for the airport knowing that there is an additional proposal to have debt to have been the general fund that you have to weigh those things in context so that's that's very helpful um any other questions or comments for on this item do we need a motion for this or is this just informational at this point okay well then thank you very much for that clarification we do need a recommendation from council okay council member dominguez i'll make the motion i saw this presentation before at airport commission i'm the council liaison to the commission so i'd be happy to make a motion to do you want to the motion to be recommending this to the full council for approval okay make that motion motions been made and seconded any gonna continue with our review of the fifi changes from the department's today we'll be hearing from the enterprise funds well they're gonna hear an request from an outside organization for a funding request and then we'll wrap up with a review of thanks good afternoon finance community members so rob date went downtown parking to go over the feet changes the first five feet changes are simply clean up from last time the first one on page thirty four items seven and eight we're converting those we're merging those because they had the same monthly permit fee of a hundred and sixty dollars we're putting those together and making sure the garages have numbers and names and then the next one on page thirty five we have and this is number twenty three is the new number this is our annual residential parking permit this is for downtown the downtown areas that get residential parking permits we also have area m on the mesa and l which is outside of downtown last year we raised the price from twenty to thirty and we had the start go in the middle of the year because that's  permits actually ever new is it the first of the year the calendar year so this is a clean up to just get rid of the language from july one to december st and just have it be thirty dollars which has been the cost for the last six months and then next on page thirty five just cleaning up on number thirty five this is a pay by space fee is the parking and the whole city helene a lot this is the one down in the fun zone the dpc is has a capital project that we're moving forward the only lot like that that's paid by space in the downtown parking system that's correct it's a it's an exploratory step by the dpc they're looking at ways to use that parking more effectively particularly the funk zone as the demand for the funk zone happens the ninety minute format doesn't really work well because the lots not centralized next to the businesses so people you know there's a lot of walking time from the lot and back to the lot this will provide people more opportunity to stay for longer periods of time and the pay by space is just a better way of doing it so that you don't have to walk you don't have to walk back to your and and put it on your you could just enter the space you're in or license plate so there they're working on some innovative strategies to do pricing and and we had this fee in there last year but we haven't we haven't gotten to the place where we're put in the capital for the the  systems that stand free stands similar to the waterfronts and there's no kiosk there there's no parking attendant there's that way to enforce the ninety minutes so that's probably more in fort yeah the forcement is challenging yeah and it's not the lots not big enough it's only twenty nine spaces for for a gatir wouldn't make any financial sense okay thanks so the next one on page thirty five also is some cleanup this is from the oversized vehicle parking ordinance when council approved this before they approved the ordinance we had put inside the fee what we would anticipate the council would approve for the fee and that was at that time six hundred and fifty dollars per permit these are for the contractor permits the ones that that are have oversized vehicles that have a business and they're on the street so they get a permit for the calendar year so the council wanted one hundred dollars fee so this cleans that up and raise it to one hundred dollars fee and then the the time frames are quarterly reductions for the remainder of the year if you get a permit not at the beginning of the calendar year and then the next one on the next page is this is similar it's related to on page thirty six is similar it's this is for additional vehicles when the council created the ordinance they wanted additional vehicles to be reduced rates this is the fifty dollars for additional vehicles within the same business and then finally the one additional fee that we're proposing to add this year is a facility use fee when we have contractors who come in the downtown parking lots and they're using primarily for building and staging construction when they're in  lots it's much easier to gauge the cost because we just take the number of spaces they're using and charge them for those the daily rate for those spaces but when they're in the paseos and the other extra properties that are around that lots we don't have a fee for that  to go with our permit so this establishes a hundred dollar fee to cover the staff costs for ministering the permit and then staffing the coordination with the construction that actually happens in real time it's probably a little bit less than the cost that that we we employ and then the amount of hours that we employ but we're gonna monitor overtime to make sure that it's paying for the cost that it takes the downtown parking crew to manage these particular  incidences and that's it any questions for mister dayton just one question so you have been charging this fee for the oversized vehicles since the the ordinance went into effect or are people buying  questions notice as the liaison to the parking committee i would move that we recommend this proposal to the full council motions are made and seconded it any comments all next we have the gulf fund and and we don't necessarily have to have a recommendation today unless it's at the discretion of the committee but we'll be looking for final recommendations next week as part of as a part of a wrap up mister sewell you probably covered a so when we look at our fees across the park to recreation department we consider a number of factors we want to try to make sure we can maximize participation we want to make sure that we are competitive in the market where there is a market to be competitive in and bearing in mind what our competition are doing and of course with golf there are a number of local golf courses around who compete with us and we look to also provide community benefits by our pricing strategy to encourage affordability for targeted  markets and finally of course we need to be aware of what our operational and capital costs are likely to be so within the golf realm there are a number of different fees and a number of different discounts that you can earn depending discount to encourage play at the times where typically we might be a bit quieter than normal recommended for fiscal nineteen are just a couple of changes commencing july the st we're recommending a one dollar fee increase for the hiring of a golf cart you don't have to hire a golf car if you want to come and play meanie but we've recently took delivery i think a week ago ten days ago of a brand new golf cart fleet and that fee hasn't changed for at least nine or ten  and then from january the first we are recommending a one dollar fee increase on our eighteen hole rounds of golf only we've no changes to do news nine hole twilight anything like that and again i mentioned it earlier will continue to offer special offers where golfers will be able to take advantage of cheaper golf at a time where we would typically not necessarily sell all of our tee times that's the plan what does that look like well if you are playing during the week you can play for thirty one dollars at the moment and that will go to thirty two dollars if you are a senior or young adult we are fairly unique in the area that we offer a discount for players who are aged between eighteen and twenty five they get the same fee as a senior and they're not the weekend as is typical in the golf industry there's a slightly higher fee to play and that represents the demand profile for weekday and weekend play a significant saving to be had depending on whether you're a junior senior young at or or i don't and then there's a similar story at that weekend where that again is the case and that's not our strategy to be the cheapest but of course we want to make sure we are most all of our service fees are going to be increasing by three percent it's generally to maintain our full cost recovery keep pace with any inflationary cost increases we're experiencing we have two new service fees for existing services  that were providing right now and i'll get into those in the next couple of slides there's also several feed justments that are outside of this general three percent increase also talk about those individually and we really have one other non fee increase but it's an update to language pertaining to our water consumption estimates so like i said we have two new service fees our first one is a data logger fee it's thirty five dollars and that thirty five dollars we've paid by customers on their third request and thereafter within the same fiscal year so we find the first t to be in line or an extension of our conservation efforts it helps customers track leaks but after that there is some time involved for staff to come and if you look at this picture there's a little data logger there next to that laptop they put it on the meter they download the data they send it to the customer sometimes there's some back and forth discussion about the data so there's some time involved we think it's reasonable fee of course if we're doing data logger deployment for city staff purposes or tracking the system needs metering needs then we would not be charging the customer and secondly there's an after hours meter turn on fee so right now if you pay your bill right towards the end of the day when the billing office is closing in finance they'll generate a work order the work so these are other few changes that are outside of our general three percent increases the first is the most substantial our connection fees are providing a new tap to the system is being reduced by nine hundred and ninety dollars really we've stopped providing excavation services what we found is that we're gonna we're gonna focus on our expertise which is creating new new connections to the water system and will allow the homeowner or the business owner to a higher private contractor schedule that on their own time and they will do the excavation some of the traffic control the markings on the ground and then we'll come in make the new tap so it's a service we're no longer providing although i think we could in special instances but for the most part we had to start going to provide it so we are reducing all of our connection fees where applicable by nine hundred and ninety dollars we have a couple of changes to our fire hydrant upgrades these are just materials cost change we got new quotes from our vendor residential hydrant i think was lowered by approximately four hundred dollars our commercial hydrants are up but i think just actually a few dollars we also did a check on our staffing for hydrant flow test we found that we're using more staff and so that va is increasing from approximately a hundred and fifty dollars to three hundred and twenty five dollars so that was just an adjustment because of more staffing than we had initially had from a half hour to an hour and a half and if sometimes you have to test them twice we split the difference i believe that represents forty five minutes of work for our staff and finally as i mentioned we made some clarifying language changes to our water consumption estimates just to explain in better detail what is actually going on with that estimate in addition there's new language that was added when there's no water use history  or insufficient consumption history from that customer we will be taking kind of a system wide average client from their class and applying that to to get an estimate and make a bill so that concludes my presentation i can take any questions if you have them any questions for mister hamilton i have a question about the no longer providing the excavation services so does that potentially mean it could take longer for the work in the street to be done if it's not being done by city employees and it's subject to the contractors schedule mister chairs i understand it right now that we are gonna try to be standardizing when we'll come out and do the tap in it and essentially scheduling those as soon as work and charge somebody a fee that's correct i believe that we either do it ourselves or we will ourselves have a contract i do it but i can check into that for you yeah i guess i guess the reason i ask is it sounds like there's a you know an economics question versus you know service quality and mister haig marks just is clipped so he's ready to answer that question cherrick committee yeah we've been looking particularly with the drought on how we can do business better and one of the things that we're trying to do is focus on we have so many things to maintain in the system what things can we outsource to the private sector to have them take care of and a few years ago you may recall that we have we actually brought in an outside contractor to help us out with this excavation work and it helped but we were still having to manage that outside contractor and so with this move we're looking to actually put it on the property owner who's ever doing the development to take care of the excavation which is they come in and get a public works permit they'll do the excavation we're we're thinking this is going to be more streamlined because they'll will give them the date here's the time we're going to be there to do the tap and they get everything prepped ahead of time takes that management responsibility out of the city's hands they can now just we're focused on doing the more what i consider more technical aspects of a new service and i think they can do it more cost effectively potentially then we can having to also have to manage that contractor so i think this is one of those win wins for everybody in this allows us to spend more of our time maintaining the infrastructure that we have and the new stuff what they we the outside resources of our local contractors and is there been discussion with public works about the impact in the street because this is street work right this is street work yes and it's it's work that regardless of how we do it w goes through our public works counter it does get a permit and is noted and monitored and with all the street work that's coming there will be a three year moratorium and penalties if you need to get in there beforehand so that's going to be part of that ongoing the right of way i guess that's something i would encourage you to monitor is you know how long is the street disrupted in this model versus you know the city crew option because i think i've i've noticed that sometimes the street work takes it much longer than it should and i don't know i don't know why that is and i'm just worried that you know the timing is something like this if it's they you know the private sector person who's trying to get water service to their development doesn't have any and senta to get in and out of the street fast like the city workers do and so that's what fundamentally i'm concerned about okay typically when we give permits they do have a window fir'd for doing the work and so they have to provide traffic control during that time period and so there is an incentive this is a model actually was a couple years ago we switched over for sewer so you do the same thing private contractor comes in digs down to the sewer main exposes everything our city staff actually make the connection to the city's sewer main so it's a model that we feel like we've kind of run through and feel pretty comfortable managing so happy to talk more about those how long they're in the right away and what projects those are we can follow up and discuss those but i don't feel like this is going to put anybody in the right away longer than they already are okay good well thank you for that answer any other questions is your emotion for this item so moved motions been made and seconded any questions mister chair and committee members i'm brian bossy i'm the waterfront business manager and you briefed we briefly touched on this last monday at our departmental budget presentation before city council but i am going to go through with it one more time with you and answer any questions that you do have our proposed fee adjustments for fiscal year two thousand and nineteen start with our slip rental fee and that we're proposing a two percent increase which is similar to the past five fiscal years it's a it's a percentage that we feel that our slipper varieties become quite comfortable with and really don't hear a lot of of grief either way on this one it's kind of just part of our process anymore and i have a slide here later that shows you what that means with some of our common slip lengths what that two percent increase is next is our slip permit transfer fee and this we are proposing to increase that twenty five dollars per foot it's currently four hundred and fifty dollars per foot we'd like to move that up to four hundred and seventy five dollars this is for slips that are above thirty feet in length now the overwhelming majority of our slips are below thirty feet and those slip permit transfer fees have already been frozen in prior years this also frozen have been our number of specifically designated commercial fishing  vessel slips as we are working harbor and want to continue that into the future our visiting or transient vessel fee we're posed proposing that vessel seventy feet and above  go from one dollar per linear foot to a dollar fifty per linear foot as i mentioned last week we probably get on the order of twenty five to thirty visiting vessels that that meet this criteria of seventy feet and above  it's not so much a revenue gain for us as it is just trying to cover the cost that these larger vessels have with their pull on water and electricity next our two parking permit fee adjustments the first is our slip permit a parking permit and these are for folks we have eleven hundred and forty three slips and one per slip one lucky person per slip gets a slip permit parking fee parking permit wow that's a tongue twister slip permit a parking permit and currently it is at seventy dollars and this is this allows folks to park in primary the harbour main lot essentially three hundred and sixty five days a year if they have an operable vehicle this has not been changed it's been at seventy dollars since july st two thousand and six we think it's a long time per month next is our public parking permit so these are your non slip holders or those folks who are slip holders who didn't get that lucky one to start with and we're proposing that increase go from a hundred dollars to a hundred and twenty five dollars and again this allows parking at all of our waterfront parking lots except for stearns wharf both of these so you are allowed to park it i believe it's seven different lots this one hundred two hundred and twenty five dollar increase gets you to about ten dollars and forty two cents per month to park down at the brief beach very speeches and marinas next is our annual west beach rac permit fee and these are primarily for folks the club folks the outrigger canoe folks and we are proposing to increase that fee from a thousand dollars a year to eleven hundred dollars per year so one hundred dollars increase we only have six of those racks they house eight kayaks or outriggers and we're trying to make this more equivalent to what it is for the folks who just have them resting on the sand kind of your other non club members members of the public so we're proposing to increase that by one hundred dollars and lastly this is a new one since last monday may th and i just want to give you a little background on this back in march i'll even go but beyond that we have four different marinas and in order to gain access in and out of system known as the pinnacle system to provide that secure access in and out it also not only is it the four marinas but it's also the corresponding restrooms that go with us over the fifteen years that we've been using the pinnacle system we've issued over twenty zero of these key cards or key fobs that's a lot and what has happened is we routinely see issues with people who shouldn't be in the restrooms who shouldn't be in our various marinas and staff as well as harbor users have been a little bit concerned about that and so we decided to look at how we can clean this clean this key card issue up so back in march our staff provided our harbor commission with the presentation on the current issues with our gate gate key cards and key fobs we returned on april the th back to the harbor commission where they formed an ad hoc subcommittee and the ad hoc subcommittee actually met on tuesday of last week again we met with you the full council on monday that's why you didn't see this on tuesday this is what our ad hoc committee came up with and the idea is here is to reissue all of these cards and fobs in a in an orderly manner now currently we issue two nine key cards or fobs to slip a slip account per slip account and again there can be one person on this count there can be ten it can be higher than that i suppose so what we're proposing to do is take that from nine and bring it down to five cards or fobs per slip account and we'll continue to do it at the same dollar figure seven dollars for a key card and twelve dollars fob so the dollar figure there doesn't change just the amount per slip account now beyond that what we currently charge is twenty if you want to go ten eleven twelve however many it's twenty five dollars for a key card and thirty five dollars for a key fob what we'd like to do is raise that regardless of fabra key or fob or card move that up to a hundred dollars we feel that what happens a lot people lose them or don't want to look for them and so they just come in and get another they can get into the wrong hands and that's where we end up with problems so i think people are going to take a whole lot more care of their key cards and key fobs at the if you're going to have to replace them at one hundred dollars  once you get above that initial five so that is our last proposed fee adjustment and a little background on where that came from as far as that two percent slip increase how does that impact some of your common slips on the left you'll see our slip length the change per foot and then the change in their monthly fee which would be four twenty footer three dollars and fifty one cents up to a sixty footer that's fourteen dollars and seventy two cents so with that kind of gives you a gauge on what we're working with there and with that that concludes my presentation i'm happy to answer any questions that you might have any questions for mister bossy counsel berger vegas thank thank you for the presentation the the adjustments you made in slide two what was the underlying philosophy or mission in terms of like the twenty five dollars a foot increase for above thirty is there kind of a harbor mission that this is in conformance with or was there a pricing study so what we do each year our operations manager ramen talks with our various yacht brokers and the whole idea here is you're trading you're moving boats in and out in a in a public publicly owned space and so in order to kind of keep that at a reasonable level not have a quote unquote an underground market and keep it all aboveboard the city has for quite some time charged to slip permit transfer fees so it just doesn't get exorbitant and so over the years there comes a point with you know your twenty footers your twenty five footers your thirty footers where instead of people a price point where instead of people transferring boats in and out as an investment they stop doing that and it's they just want to it keeps recreational boaters or leisure boaters more in play as opposed to trading it as a commodity if you will and so there comes a point it's probably around fifty percent of the value point we're increasing the slip transfer fee will actually harm those transactions and so we we generally stopped it around that fifty percent mark and so that's why we've stopped it at the thirty the twenty eight to twenty five and downward as you know we go much higher than that we have some very large boats vessels in the harbor and we're not quite there yet but we do monitor this with our with our yacht brokers and  talk with them about all these increases and so this is twenty five dollars a foot increase through what's the total per foot so for vessels if this were approved for vessels above thirty feets and not your thirty fo so above thirty feet it would now be four hundred and seventy five dollars per foot so was four hundred and fifty yes correct and then the same question regarding the visiting transient vessel fee why was that bumped up what was the philosophy there sure great question so this was bumped up these larger vessels take quite a bit of use quite a bit of resources as far as water and electricity and some from analysis again it's a slim it's as we don't get that many seventy and above it's usually in between twenty five and thirty on an annual basis but just the amount of resources they use from pulling electricity and water we feel that this is more appropriate and in line with the size of the vessel versus your smaller ones chair committee member dominguez if i may we also do a comprehensive marina survey that you heard about last week of eighteen marinas up and down the coast and we found that our visiting slip fees were quite below what you'd call market so we decided to on the larger vessels raise it up okay great thank you any other questions i have a question about the parking fees where has it been a long time since those were raised because those are big increases of thirty percent more nearly thirty percent for the slip permit a parking permit and twenty five percent for the public parking permit mister chair the slip permit a parking permit was last raised on july st of two thousand and six and the public parking permit was last raised on july st of two thousand and fifteen where it went from ninety five dollars to one hundred dollars and again similar to what mister riebmann was saying we do as part of that eighteen marina survey look into various parking rates and we're far below what people charge we've also done a whole lot of additional research into similar cities of our size up and down the coast as to what they charge for their parking permits and i can tell you that a hundred and twenty five dollars on both account is is well below with those folks charged and added to the fact that those are just day use so what you have is in places like santa monica huntington beach and and the like our day use only seven a m to five p m that's what their permit is good for and then you've got to move and those are upwards of anywhere from one hundred and fifty dollars to i believe to beach has three hundred dollars a year so we're slowly trying to get more in line with those types of plate not the three hundred dollars mind you but just more in line with what the market is charging and with our public parking permit you are allowed to stay up to seventy two hours in our harbor main lot if you're going on out on the boat and things like that and what does that survey show for slip rental fees ours in comparison to the other two the market that's another great question i have an extra slide for you so again we come in well  below what marinas up and down the coast are charging these are both the asterisked marinas are private marinas and so on the left you'll see the marina name and then we just took a sampling thirty forty fifty and sixty foot slip and then occupancy ratings so we are very much booked and then some at one hundred percent and as you can see when you go through each of these different slip lengths we are well below what other marinas are charging as you can see the two noted on the bottom private marinas do charge it there though the possessory tax is included in their fees with our possessory interest tax which comes through the county obviously it ends up being about twenty five dollars per year for your twenty five footers up to when you get up to the ninety and a hundred fritters maybe i believe it's a little over a hundred dollars per year one hundred maybe one hundred and fifty but so even when you add those interest fees in there it's still well below what other folks are charging i think the two percent increase is the lowest of any of the other city departments everybody else is at three percent so those facts argue that this should be three percent not two percent that that's a good point we could do that we've come to a point with the two percent where it's something that our slip permit  have become somewhat comfortable with they know it's coming i believe we've done this for the eight fiscal years prior to that i think we did have a few different you know three percent here and and one not but this provides a gradual increase mister chair we're on a good trajectory in terms of the operating revenues that we get particularly with the slip transfer fees which can soon continue to surprise us so we very carefully and i don't think it's necessary at this time to go any higher than the two percent but certainly your comment is well noted well certainly costs overhead costs for the city separate from the department are going at a higher clip than two percent and so i think it's something you should consider and i think you know the point is that your customers have got used to cost of living increases which everybody has to pay and i think the cpi is closer to three percent than two percent so i would i would make the argument that you should look at that maybe not this year but next year so any other questions following up on those questions what would be the impact if you raised it is it like land rentals where people might move on or does it does it change your occupancy rate closer to the other comparables up here i don't think it would change our occupancy rate at all a two percent versus a three percent is a lot of those figures i showed you will stay it it would still be an eighteen cent increase eighteen cents per month increase so it really wouldn't change that a whole lot i don't think it would have an impact on our occupancy i think what a lot of these other folks who do charge higher rates they have to do that because of their occupancy rating whereas again at a hundred percent and people waiting  clamoring after our slips we don't have to go that route so i think the impact dollar wise on on average the puller would be would be minimal at a three percent so then what are the what are the cons to raising it to be more in line with other cpi adjustments i that's a good question i would have to say it you know other than people just become used to the two percent that's and this would be a little bit different that's that's one con i could see it it's just the track we've been on it's been working so it's not that broken that we need to fix it i believe if that's a fair answer okay maybe if it doesn't change beyond two percent this year you might want to put an asterisk in your billing statement that the finance committee is asking questions and it could go up higher next year if notice to you is important as you know as a value for your department you know now would probably be a good time to start putting people  and then the other question the the public parking permit can you tell us again what's the relationship with with the parking permits and the city college and and parking privileges between the two agencies sure so to address the city college issue i believe the city's had a joint has a joint powers agreement since one thousand nine hundred and sixty two whereby we share a lot of our resources between the city and santa barbara city college we at the waterfront obviously are right there and so we have an agreement with santa barbara city college where students are allowed to park in our parking lots they primarily park in the ledbetter lot and the harbor wes lot to attend their classes because obviously santa barbara city college does not have enough parking to accommodate all of their driving students so they're allowed to do that through the school year monday through friday and they're also allowed to park in our lots during the summer session sessions i should say as they have to so they can do that they don't have to purchase one of our permits they just have to purchase one of their own city college permits although we do find you know they'll purchase both on occasions so they can get whenever they're not in session so weekends and then the summers component of summer where they're not in session we get those revenues as well so we do work a lot with their parking staff just to make sure we understand each other and where everybody's coming from so that's our relationship with city college and in that shell so you receive a portion or all of the revenues from the la playa lots on the weekends i believe it is all of the revenues from those lots which is not a lot i mean most people they're coming to the beach they want to be close to the beach and so they park in our lots people who are going to the track to do stadiums and participate so that revenue comes to the city exactly is that because we manage any of that equipment or the lots they if i remember correctly yes though the city college folks bring their revenue over to us they collected out of their own machines and then bring it to us during the times in the summer weekends and so forth that seems very generous why what do we owe in that land that is city owned land yes along with the stadium it's it's not known by many people but yeah it goes back to this one thousand nine hundred and sixty two agreement which is pretty interesting is that agreement indefinite is there term to it i believe it is an evergreen agreement but i want to say there were components of it that were adjusted in recent years it was headed up by the parks department a number of fees and things like that that were significantly outdated were updated but i believe the agreement the joint powers agreement as a whole isn't everything it just goes on i think there are options for both parties to move out but  i don't think that's we've ever gotten to that point so have you ever looked at any changes for the laplace in terms of either how you manage it or i know you changed recently the systems leadbetter they have a similar  system where it's a pay and display obviously with city college i believe when you register as a student over a certain number of units you have to buy one of their parking permits so their walk up pay and display machines like we have in a lmost all of our lots aren't real handy for them since again ninety five ninety nine percent of those people are students already with the parking permit we have it's the relationship has worked out quite well they allow us to use it for special events that we have whether it be the harbor and seafood festival so we do work well together as far as special events are concerned and things like that okay great thank you again summer friedman i'm gonna follow up on this first and then go back to this that fear l just had a comment but on on the city college i just i'm trying to understand when a city college student has a city college permit and parks in the ledbetter lot do we get any revenue from that permit no we do not that revenue all goes to city college the reason i bring this up it may be for next year's discussion but is i actually went a couple weeks ago went there on wednesday at ten zero a m and every single space with exception of one and i was there to go go paddling was full and they were busily all city call it and there was about four or five other cars that were trying to find a space so i thank you for bringing it up councilmember dreamings because i think the primary use of those spots should be for beach users and if they're getting full of city college students there's an issue of beach access there and this is just during the day and so i think we should look at that again because the other thing is it also encourages city college students to drive if they know they have that lot and one of the things that when you do is look at the alternative transportation investments so if there's an extra lot that should be used for beach goers but it's being used for students i think that's a larger issue so if i would ask if you and the harbor commission could look at that issue over the next year as part of looking back at these rates for the next fiscal year in the going maybe the three percent or two percent and going back to the two percent just for a little my personal perspective having been on the harbour commission kind of when this change went there was every year there was a lot of controversy that came up with that that would the slip fee so this was a way to increase the fees and kind of work with the community down there because we do have some liveaboards there which we want to maintain that aspect of it without pricing them out the other is if you could clarify is this two percent also goes towards our fishing boats or are they separate from our fishing fleet  regarding the commercial fishing fleet the two percent does not let me get to that real quick here it does go to our sorry it does go to our commercial fleet i was getting confused about this lip permit transfer fee which is not this twenty five dollars increase does not apply to those specifically designated commercial fishing slips but it would go the two percent to the entirety of our eleven hundred and forty three slips so i would just make the comment as you study whether or not to go to two or three percent next year that you also look specifically at the fees we're charging our commercial fishing fleet because they are under a lot of pressure from for a lot of reasons that we don't need to get into today so i would be very hesitant to put any more economic pressures because that's that's what makes our harbor our harbor it's and working harbor and our fishermen are an asset in this community so i just ask you to look at that as a separate not separately but look at that as an issue so that we're not having impacts to them when you look at it we can do that and i guess one last question just so i understand this in context what is one percent revenue on slip fees slip rental fees what it was that number on annual basis so in total the two percent increase would be the equivalent of just under ninety thousand dollars i believe it's eighty nine thousand five hundred and change for forty five thousand dollars per percent correct right okay any other questions is there a motion if you'll move the staff recommendation is there a second any other public works director and this is rather a last minute change to add an impound fee for scooters that are left on the side way or sidewalk or in public right of way city municipal code ten point five six already authorizes with the businesses to figure out how to make sure that they don't create a nuisance that will take some time i will be at council on june th to have a conversation with council about and get direction on working with that group however we know that they're interested now in being here based on information that we're hearing first or second hand from companies such as lime bike and spend so we just want to have a tool available as soon as we can if we start getting recommendation just i do have a question about why did the hundred dollars that's what you surveyed around like that honestly it's two different agencies that have an impound fee in place santa monica i think is sixty and i believe it's austin it's a hundred it we where you still have to figure out where to put these we're gonna have to have somebody pick them up and transport them it's supposed to be a deterrent yeah i know i totally understand the issue of but reading the articles about coronado not enforcement nightmare companies that you know at least in that instance companies that you know did not cooperate with local government this is another example of you know companies that have a business model that is predatory on public infrastructure and they don't have any concern for that you know i for me i would make this really sting and i would make it two hundred dollars we're we're open to whatever  council would like to put in there cuz i think that these companies need to get we need to get their attention before this becomes a problem because in coronado it's become a giant problem and they're even with this fee that hasn't ameliorated that concern so were there any other does the impound fee then is that including storage yes it's the cost to collect notify and store well it's not even the cost it is it is to offset or reimburse the city for the impact having to do that right yeah it seems like one hundred would be reasonable or a ballpark if we were just picking it up and someone was gonna come pick it up within a month but there's also a good chance we may be the new custodians of these for their lifespan or until we find a way to get but just on a personal note i was in in san francisco this last weekend for a few hours and on second and harrison you know which is south to market just within like two minutes several electric scooters went by electric bikes regular bikes regular scooters electric skateboards electric and non electric skateboards so the whole spectrum of human and human assisted powered transportation went by well vehicular traffic was at a near standstill it was a closing hours so you know rough commute time rush hour commute time but it was just amazing to see the spectrum of vehicles they're using there to to get her on rollerblades even saw rollerblades so they are probably coming well and i could certainly see where they would be know help and an asset if they were properly operated but folks flying around on scooters on sidewalks is a public health and safety threat and you know we need a cooperative operator to make this work in santa barbara and if they're going to cooperate that's one thing if they're not you know i think we need to send a message right away that that's not okay councilman friedman's a quick comment so you're coming back into the full council in july about the whole issue the whole permitting in the whole the whole process i'm sorry i ma june th i believe is what it is so you're coming back for the full council on this district yeah so i'll support this but as part of that if you know five hundred is the deterrent or if there's another number as you do your research i'm open to that in the long range but i'm supporting five hundred just because right now we don't have any protections in place and we'll have a second opportunity within this is it counsel to to adjust that number of it isn't right in the meantime you can have a conversation with them and tell them that the finance committee has recommended five hundred dollars that's go sorry thank you for giving me the opportunity to speak today i'm here to request one hundred and fifty thousand dollars one time funding for tourism recovery efforts if we could go the next slide as you all know that tourism industry has been severely impacted by the thomas fire and the montecito debris flow we certainly lost both leisure as well as group travel business in the wake of the disasters and frankly we're at risk at losing even more business in the future there is a perception that santa barbara the city of santa barbara has been destroyed or that it's unsafe to visit so between the the global press coverage as you can see those were some of the headlines and certainly the evacuations that followed santa barbara has a serious perception problem to overcome i still feel optimistic that we will overcome and we just need additional resources to be able to add more momentum to the recovery so as you're aware we outlined a three phase recovery approach immediately after the debris flow phase one was the information impact assessment dissemination of all of the facts to both our visitors as well as our hospitality community the second phase is really welcoming visitors back to the area and we've heavily invested in the southern california market we had to immediately p change our marketing strategy to focus in southern california of phase three which is what we're in right now as well as still focusing on southern california it's about rebuilding demand for long haul and group business so since launching in january the santa barbara shines campaign has generated over thirty two million impressions on the screen before you is a list of all of our marketing initiatives please don't worry i'm not going to walk through every one of those initiatives but it clearly outlines that we have been aggressive in all of our outreach to focus on i'm bringing back group business leisure business and focusing and working with our media we need to get the word out  santa barbara was indeed open for business looking ahead we also will are working with llosa and amtrak on a really clever and innovative campaign that we will be launching in july and we actually using some of our reserve funds for that campaign and you'll hear more about that in the upcoming month just two had on the screen right now it's just an example of some of the new initiatives we had to conduct things that we never did before in the past and that includes putting up billboards digital billboards in los angeles and also san francisco we have large images of santa barbara on the ground as well as on the walls of the embarcadero station of san francisco i wish  were i knew that you're going there so you could have got to take it a look at that as well too so we're trying to transition other recovery phase right now but continuing to market to the southern california market so it's a little bit of straddling of our regular programming and still focusing on socal so here's kind of the reality in december obviously we saw the devastating effect of the fire which led to the media decrease of room rates as well as the revenues as you recall many people in our community left the area for about a three week period and then from january through march the average daily rate of our lodging industry continued to underperform for three weeks in january and then subsequent evacuations both in february in march but as you can see the tod collections have continued to decline with just a very nominal increase in the month of march  other factors that need to be taken into consideration with this t ot growth certainly from january through march is the hotel california grows so we're now seeing t ot generated from the hotel california that we did not see in two thousand and seventeen and in december through march not only did we have vacuous staying in our hotels we had first responders that were staying in our hotels and certainly employees that live south of santa barbara hotels four seasons are scheduled to open in june first we no longer will see that that source of business and then also we saw a slight increase in business in march because there was a shift in spring break last year easter  in later april so most of that spring break business occurred in april instead of march so beyond these key metrics i also want to mention that that  chart that you just saw really doesn't represent the visitor industry as well it is it doesn't represent the profile the visitor industry it really reflected all of those factors that we just discussed but beyond those  metrics we have we look to assess business there are some other discerning and concerning data points that have our industry on alert there are many hotels have certainly communicated to me that  they are behind pace for advance bookings in some case ten to twenty percent i get a lot of calls from a lot of hotels on a daily basis and they're expressing concerns and we're very concerned about a soft summer our group business continues to rain in maine a little bit soft and then just even looking at our metrics on our website traffic the web traffic on the lodging page has been down twenty five percent and more importantly our booking referrals  referrals that go directly to the lodging pages is down thirty nine five percent again indicators that we have not completely recovered from the disasters so  as we move forward certainly can we go to the next slide we need to adapt to this new normal and environment actually let's go back to the other slide  o disaster aside we're certainly looking at highly competitive tourism marketplace certainly like palm springs napa and monterey who are vying for the same visitor and as i mentioned it's going to be  increasingly clear that it's going to be a slow road likely a two year process to restore our reputation or certainly our reputation was tarnished and to reclaim this lost market share again i'm optimistic that we can do this with added resources running in mid july we are we still have some reserve funds but we must maintain those to protect our organization as well too so therefore i'm here to request this additional one hundred and fifty thousand dollars again its one time funding for a specific campaign as campaign has been designed to generate buzz for the city of santa barbara by really showcasing santa barbara and a new and compelling way and it is designed to generate business a media business for the city of santa barbara and we believe that we need this momentum builder to start getting some of that lost business share and really inspiring los angeles to begin traveling to the area so if we could go the next slide i don't want to be debbie downer here there is a brighter side as well obviously we're in a challenging landscape but our community certainly in our destination have so much going in our favor and there's so many opportunities to leverage and overcome our present challenges and we're equally focused on the brights certainly starting from the fact that our community and industry are very tight knit i think we saw that clearly in the last few months how our business community our government agencies our hospitality community were very much united in our efforts to focus on tourism recovery and that come together spirit i don't think i've ever seen before and it's it's really quite powerful and then we've also santa barbara's always been a very friendly welcoming destination but i believe that that spirit has also been elevated in the wake of the disaster to our visitors are being embraced in a way that we've never like never before and there is that feeling and sense of gratitude for all of that business so this is a very positive trend and we can continue to leverage that we're also very fortunate that the infrastructure in the city of santa barbara is is really basically on harm right now we certainly had to focus on coast village road but fortunately they're up and running right now but we have a town that is as that has not been  damaged and very much welcoming visitors we also have a lot of new product that we have seen coming to the area with hotel california and opening last year a number of new restaurants and other visitors servicing businesses this is all very good and positive things that are good for our community and good for our visitors and lastly you know the marketing landscape as i referenced earlier may be cluttered and may be crowded but it also means that there are some channels and innovative tactics at our disposal and we need to really push our creative limits and think outside that box so on that note i want to show you a concept of how we would invest the requested one hundred and fifty thousand dollars to feel immediate bookings so we contacted our agency of record and they recommend what they call an out of home approach and that literally means out of the area and it this medium is proven to encourage more online activity per ad spend than any other medium and there's a fact that travelers look at thirty eight sites on average before they book a vacation and we want to simplify that process and really introduce a one click shop to buy a santa barbara vacation so we're literally bringing a pop up shop into the southern california market that will feature a wall of santa barbara social images that are literally  will promote the activation with billboards that will drive traffic to the physical location as well as an online shop and this campaign will also be supported by digital ads and campaigns leveraging  mobile technology and we can extend this campaign even further by partnering with a fashion brand to create a capsule american riviera collection and taking the shop on the road for a multi city tour and certainly partnering with a major brand to develop custom content around the collection so so this was one example of a way that we would use at one hundred and fifty thousand dollars to invest in a campaign that we believe would have immediate results being able to track the bookings immediately it's clever its innovative it hasn't been done before but we also have other ideas that that money could be used for and i'm happy to provide additional  samples so thank you again for considering this request we are very grateful for all of the city's support you have been absolutely tremendous in in supporting our recovery efforts and we do feel california come down earlier in the year and just the marketing you're doing one thing that came up yesterday during our budget on the golf the golf fund was we actually our golf course has really turned around and it was the course was said out of their thirty three courses i think that the mystery shopping it was rated number one at all their courses so if we had given some direct to ask them to coordinate with you on potential marketing campaigns for golf especially since it's a more and more affordable courses so that would be something as you're looking to the summer to work with our golf course in particular as part of it but really just want to thank you for the work you're doing and for hearing this at the full council thank you and  the city of gelida and there there is an opportunity to do that the city of carpinteria doesn't participate in our tourism business improvement district nor finance any of our campaigns right now so we do not have any relationship with them in terms of tourism promotion but we can certainly reach out to a few of the other jurisdictions to see if they would be interested as well it'd be great if you could do that before we decide council i mean it seems that it is a regional benefit and we'd love to have our partners that ask us for help all the time participate in something that we all benefit from okay i'd be happy to go  thank you any other questions karam dominguez no just uh just basically did out of what you've both said doing a great job and keep up the good work and we'll support you as much as we can thank you m so last time we have at the request of committee member friedman we wanted to present to you the what's called the arts and economic vitality program used to be called the community promotions budget we're running a little short