RESOLUTION NO. 2025-049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITS INTENTION TO AMEND THE AUTHORIZED IMPROVEMENTS AND ACTIVITIES FUNDED BY ASSESSMENTS IMPOSED THROUGH THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT, INITIATE THE PROCESS TO AMEND THE CITY'S MUNICIPAL CODE, AND TAKING OTHER ACTIONS RELATED THERETO WHEREAS, the Arroyo Grande Tourism Business Improvement District (the "AGTBID") was established to promote tourism and increase overnight stays in the City of Arroyo Grande pursuant to California Streets and Highways Code section 36500 et seq., known as the Parking and Business Improvement Area Law of 1989 (the "Act"); and WHEREAS, the AGTBID is also codified pursuant to Chapter 3.46 of the Arroyo Grande Municipal Code and the use of AGTBID assessment funds is currently limited to activities including marketing, advertising, and administration in support of tourism promotion; and WHEREAS, on December 17, 2024, the AGTBID Advisory Board voted unanimously to recommend that the City Council amend the authorized improvements and activities funded by the assessments (the "Authorized Uses") to benefit the businesses located within the AGTBID pursuant to the Act and to amend the Arroyo Grande Municipal Code to broaden the allowable uses of AGTBID revenues; and WHEREAS, the proposed amendment to the Authorized Uses seeks to authorize the use of assessment funds for additional purposes that enhance the tourism experience and improve the quality of public amenities, including public art projects, beautification efforts, event infrastructure, and sustainability-related initiatives located within the boundaries of the AGTBID for the benefit of businesses included in the AGTBID, as further described below; and WHEREAS, the City Council finds that expanding the AGTBID's Authorized Uses of the assessment funds is in the best interest of the businesses located within the AGTBID, the City, and its residents and will further the goals of tourism development and economic vitality; and WHEREAS, the recommended actions to support the Arroyo Grande Tourism Business Improvement District are not subject to the California Environmental Quality Act ("CEQA") because these efforts have no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378). NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby declare the foregoing recitals are all true and correct and are incorporated herein by this reference, the City Council further declares its intention to amend the AGTBID Authorized Uses and to amend Chapter 3.46 of the Arroyo Grande Municipal Code to expand the Authorized Uses of AGTBID assessment revenues. The proposed amendments to the Authorized Uses would include the following categories, as authorized by State law: • Improvements, including the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful live of five years or more including, but not limited to, the following: o Parking facilities, benches, trash receptacle, street lighting, decorations including public art and cultural enhancements and decorations, parks, and fountains; and o Activities which benefit businesses located and operating within the AGTBID. • Promotion and furnishing of, but not limited to, the following activities: o Promotion of public events which benefit businesses within the AGTBID and which take place on or in public spaces within the AGTBID; and o Furnishing of music in any public place within the AGTBID; and o Promotion of tourism within the AGTBID. BE IT FURTHER RESOLVED by the City Council of the City of Arroyo Grande shall provide notice of a public hearing on the question to amend the AGTBID Authorized Uses pursuant to section 36523 of the Act. BE IT FURTHER RESOLVED, the City Council of the City of Arroyo Grande has scheduled a public hearing on the question to amend the AGTBID Authorized Uses for August 12, 2025 at 6:00pm, or as soon as practicable thereafter, in the City Council Chamber located at 215 E. Branch Street, Arroyo Grande, CA 93420 where all protests against the amendments of the Authorized Uses shall be heard and considered. BE IT FURTHER RESOLVED by the City Council of the City of Arroyo Grande that upon the conclusion of such public hearing, absent a majority protest, it is the intention of the City Council to approve the amendment to the Authorized Uses pursuant to the Act. BE IT FURTHER RESOLVED by the City Council of the City of Arroyo Grande that the City Council directs staff to prepare and present a draft ordinance language amending Chapter 3.46 of the Arroyo Grande Municipal Code consistent with this Resolution. BE IT FURTHER RESOLVED by the City Council of the City of Arroyo Grande this Resolution shall become effective immediately upon its adoption. On motion of Council Member Maraviglia, seconded by Council Member Guthrie, and on the following roll call vote, to wit: AYES: Council Members Maraviglia, Guthrie, Loe, and Secrest NOES: None ABSENT: Mayor Ray Russom the foregoing Resolution was passed and adopted this 22nd day of July, 2025. IPL0260314 Aug 6 2025