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Home My WebLink About2018-05-23; Carlsbad Golf Lodging Business Improvement District; Resolution 2018-25G1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 1 RESOLUTION NO. 2018-25G A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADVISORY BOARD OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT (CGLBID) OF THE CITY OF CARLSBAD, CALIFORNIA, TO APPROVE THE ANNUAL REPORT WHEREAS, the CGLBID was formed in accordance with the California Government Code Parking and Business Improvement Area Law of 1989 (Sections 36500, et. Seq. of the Streets and Highways Code), and WHEREAS, Section 36533 of the Code requires the CGLBID Advisory Board to present an annual report to the City Council's for their review and approval for each fiscal year for which assessments are to be levied and collected to pay the cost for the improvements and activities described in the report; and WHEREAS, an Annual Report has been prepared for the 2018-19 fiscal year, and WHEREAS, the Board of Directors of the Carlsbad Golf Lodging Business Improvement District wishes to approve the Annual Report; and WHEREAS, the Board of Directors of the Carlsbad Golf Lodging Business Improvement District wishes to submit the report to the City Council for approval; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Golf Lodging Business Improvement District of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Annual Report shown at Exhibit A is approved in its entirety by the Board of Directors of the Carlsbad Golf Lodging Business Improvement District. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. That the approved Annual Report of the Carlsbad Golf Lodging Business Improvement District will be presented to the City Council for their approval at a June 2018 meeting. PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Golf Lodging Business Improvement District of the City of Carlsbad held on the __ 2_3 __ day of _ _.:M:..::..a __ y'---------' 2018 by the following vote, to wit: ATTEST: BARBA AYES:Stripe, Sarnietz, Rauch NOESNone ABSENT: Sims, Stull v Pro Tern Cler of the Carlsbad Golf Lodging Business Improvement District Ill -2- Carlsbad Golf Lodging Business Improvement District (CGLBID) Annual Report 2018-2019 EXHIBIT A Method of Assessment: The CGLBID includes all hotel businesses in the City of Carlsbad that have elected to participate in the district. The assessment shall be levied on all hotel businesses, that have elected to participate in the district, within the City of Carlsbad based upon a flat fee of $2.00 per occupied room per night for all transient occupancies as defined in section 3.12.020(7) of the Carlsbad Municipal Code. The amount of assessment shall be separately stated from the amount of the rent and other taxes charged, and each transient shall receive a receipt for payment from the operator. The assessment will be remitted monthly, based on $2.00 per occupied room per night in revenues for the previous month. Assessment Funding Purpose: The proceeds of the CGLBID assessment shall be spent to promote golf-related tourism within the boundaries of the CGLBID, as well as marketing related capital improvements such as golf-related signage, golf related equipment and to pay for related administrative costs. 2017-18 Work Plan: The CGLBID was established in January 1, 2013. For the initial period the district, Fiscal Year 2012-2013 (1/1/13-6/30/13) and the next fiscal year 2013-14, three hotels; the Sheraton Carlsbad, the Park Hyatt Aviara and the Grand Pacific Palisades Hotel, opted into the district. In 2014-15 the Carlsbad by the Sea Resort opted into the district, and in 2017-18 Omni La Costa Resort Opted into the district. These five hotels are expected to collect a total of $700,000 in CGLBID Assessments in Fiscal Year 2017-18. Each assessed business determines how to spend the funds collected by their respective property provided the expenditures are for an approved golf related expense. Reimbursement of these expenses are made quarterly upon approval from the advisory board up to the amount collected per property minus administrative fees. The administrative fees pay for the collection of assessments and administration of the district. Monies not spent by the end of the fiscal year will carry forward to the next fiscal year. For Fiscal Year 2018-19, the Westin Carlsbad Resort & Spa has elected to participate in the district so the district will have six hotels as Fiscal Year 2018-19. It is estimated that these six hotels will collect a total of $826,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount for reimbursement to the hotels is $793,000. This amount plus any carry forwards from the previous fiscal year will be available to the assessed hotels for reimbursement. Administrative fees for Fiscal Year 2018-19 are budgeted at $33,000, which is 4% of the revenues. Detail of the 2018-19 budget is shown on the following page. EXHIBIT A 2018-19 CGLBID Budget 2015-16 2016-17 2017-18 Actuals as of Projected Recommended Program Areas Description Actuals Actuals Budget 4/30/2017 2017-18 Actuals 2018-19 Budget Carryover Fund Balance $149,264 $169,707 $136,587 136,587 136,587 361,247 Revenues: CGLBID Assessment* $2 per room night 428,675 428,949 700,000 566,074 700,000 826,000 Interest Earnings 2,283 786 0 3,441 4,000 0 Total Estimated Revenues 430,958 429,735 700,000 569,515 704,000 826,000 Expenditures: 2% Admin. Fee -City For collection of CGLBID assessment and accounting for CGLBID -2% of CGLBID assessment revenue 8,574 8,579 14,000 8,576 14,000 16,500 Reimbursements Reimbursement to member hotels for golf related expenditures 392,354 445,516 672,000 451,340 451 ,340 793,000 Staff support Staff support to the CGLBID -2% of CGLBID assessment revenue 9,587 8,759 14,000 6,965 14,000 16,500 Total Expenses 410,515 462,854 700,000 466,881 479,340 826,000 Ending Fund Balance Contingency for Revenue shortfall $169,707 $136,587 $136,587 $239,222 361,247 361 ,247 • Member hotels for FY2014-15 thru FY 2016-17 include Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, and Carlsbad by the Sea Resort. • Member hotels for FY2017-18 include Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the Sea Resort, and Omni La Costa Resort. • Member hotels for FY2018-19 include Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the Sea Resort, Omni La Costa Resort and Westin Carlsbad.