To: BOARD OF SUPERVISORS
From: Planning and Building Services
Meeting Date: May 19, 2026
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Department Contact: |
Adrienne Thompson |
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707-234-6650 |
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Department Contact: |
Julia Krog |
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707-234-6650 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 15 Minutes |
Agenda Title:
title
Discussion and Possible Action Including Approval of the Mendocino County Lodging Business Improvement District (BID) Annual Report; Adoption of Resolution of the Mendocino County Board of Supervisors Declaring Its Intention to Levy and Collect an Annual Assessment from Businesses in the BID Within the Boundaries of the Unincorporated Portion of the County of Mendocino and the Incorporated Areas of the City of Fort Bragg, the City of Point Arena, the City of Ukiah, and the City of Willits from Specified Lodging Businesses and Setting the Date, Time, and Place of a Public Hearing to be Held by the Board to Levy the Proposed Assessment for Fiscal Year 2026/2027
(Sponsor: Planning and Building Services)
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Recommended Action/Motion:
recommendation
Approve the BID Annual Report, with direction based on CEO Comments herein; adopt Resolution of the Mendocino County Board of Supervisors declaring its intention to levy and collect an annual assessment from lodging businesses in the BID within the boundaries of the unincorporated portion of the County of Mendocino and the incorporated area of the City of Fort Bragg, the City of Point Arena, the City of Ukiah, and the City of Willits); set a public hearing to be held in front of the Board at a regular meeting on June 23, 2026 at or about 9:00 A.M. or as soon thereafter as the matter can be heard, to levy the proposed assessment for Fiscal Year 2026/2027; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
The BID was established on May 16, 2006, through Ordinance 4170, which added Chapter 5.140 to the Mendocino County Code (MCC). The Board adopted Ordinance 4336 on May 19, 2015 amending Chapter 5.140 of the MCC. A BID Advisory Board was appointed by the Board, which oversees the creation of this Annual Report. On July 11, 2017, the Board adopted Ordinance 4384, amending Chapter 5.140 of the MCC.
Summary of Request:
The BID Advisory Board unanimously approved the attached Annual Report for Fiscal Year 2026/2027 for submittal to the Board of Supervisors. Since last years adoption of the Resolution and approval of the BID Annual Report, the Advisory Board continues to work on a conversion from the Parking and Business Improvement Area Law of 1989 to the Property and Business Improvement District Law of 1994 with an ongoing petition drive.
Visit Mendocino County (VMC) has recruited a new Interim Executive Director, Scott Schneider, who has been implementing changes and updates throughout the organization. One recent change is to a more “regional” based marketing plan to target specific tourism inland versus coastal, as data points to different reasons for visiting those locations.
There are three notable recommendations for action by the County in this year’s Annual Report update, 1.) deletion of the 3% Administration fee for collection of the BID assessment, to be reallocated within VMC, 2.) Request for a 3rd party collection vendor to enforce and administer BID funds to MCTC, and 3.) Revise the Ordinance within County Code Chapter 5.140 to streamline several processes and ultimately bring authority back to the MCTC Board over their elections and committee make-up of lodging operators. These recommended changes are incorporated within the workplan for Fiscal Year 2026-2027. See attached Annual Report for further details.
Alternative Action/Motion:
Do not approve the Report; provide direction to staff.
Strategic Plan Priority Designation: A Thriving Economy
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At: www.visitmendocino.com <http://www.visitmendocino.com>
Fiscal Details:
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source of funding: BID funds are collected as a 1% assessment on room rents from all lodging businesses in the county. County Code allows up to 3% of BID funds collected annually to be used by the County for reimbursement of BID collection and election expenses. County costs exceeding this 3% cap are paid by the County’s General Fund. |
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current f/y cost: Recent workload within the Treasurer-Tax Collector’s Office and Planning & Building Services in support of the BID had a value exceeding 5.7% of assessments collected, equating to a General Fund expense in excess of $68,400. |
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budget clarification: As presented, this Annual Report recommends the County forego the 3% Administrative Fee, which is currently included within the recommended FY 26/27 budget as $36,000 in revenue. The report also recommends the County contract for services in support of the BID, with costs which are not currently budgeted, known, or estimated. |
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annual recurring cost: If the recommendations of this Report were to be implemented in FY 26/27, there is not enough information to determine what the annual recurring General Fund costs would be. |
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budgeted in current f/y (if no, please describe): Yes |
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revenue agreement: No |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Darcie Antle, CEO
CEO Review: Yes
CEO Comments: If the Board is generally supportive of the Annual Report’s recommendations actionable by the County, the Executive Office suggests:
1. Board direction be given to the Auditor-Controller/Treasurer-Tax Collector to investigate 3rd party vendors available to support BID administration, and return by December 31, 2026 with associated costs and an initial plan for potential implementation.
2. With recognition that the County workload administering the BID exceeds the 3% cap, and incurs General Fund expenses, any discussion of the County foregoing that allowable reimbursement should not occur in advance of a future discussion with information requested above.
3. Any changes in County Code associated with the Tourism Commission, as referenced within the Annual Report, be proposed for consideration by the Board of Supervisors only after the Tourism Commission agendizes a discussion related to the Annual Report’s recommendations, and sends communication to the Board requesting specific changes.
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Adopted with Direction |
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Date: May 19, 2026 |
Executed Item Type: Resolution |
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Number: 26-093 |
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