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HomeMy WebLinkAbout2019-05-08; Carlsbad Golf Lodging Business Improvement District; Resolution 2019-42G1 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. 2019-42G 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 2019-20 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 2019 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 ___ 8 __ day of _M_ay=------------' 2019 by the following vote, to wit: ATTEST: AYES: Stripe, Rauch, Gray, Hughes, Stull NOES: n/a ABSENT: n/a Pro Tern Clerk of the Carlsbad Golf Lodging Business Improvement District Ill -2- Carlsbad Golf Lodging Business Improvement District (CGLBID) Annual Report 2019-2020 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. 2018-19 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, in 2017-18 Omni La Costa Resort opted into the district, and in 2018-19 the Westin Carlsbad Resort opted into the district. These six hotels are expected to collect a total of $712,000 in CGLBID Assessments in Fiscal Year 2018-19. 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 2019-20, the district will have six hotels. It is estimated that these six hotels will collect a total of $733,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount for reimbursement to the hotels is $704,000. 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 2019-20 are budgeted at $29,000, which is 4% of the revenues. Detail of the 2019-20 budget is shown on the following page. 2019-20 CGLBID Budget 2016-17 2016-17 2017-18 2018-19 Actuals as of Projected Recommended Program Areas Description Actuals Actuals Actuals Budget 4/30/2019 2018-19 Actuals 2018-19 BudQet Carryover Fund Balance $169,707 $136,587 $344,804 $344,804 344,804 344,804 270,673 Revenues: CGLBID Assessment• $2 per room night 428,949 681 ,703 826,000 558,388 712,000 733,000 Interest Earnings 786 -805 0 8,777 4,000 0 Total Estimated Revenues 429,735 680,898 826,000 567,165 716,000 733,000 Ex~enditures: 2% Admin. Fee -City For collection of CGLBID assessment and accounting for CGLBID - 2% of CGLBID assessment revenue 8,579 13,633 16,500 10,841 14,240 14,500 Reimbursements Reimbursement to member hotels for golf related expenditures 445,516 451 ,341 793,000 761 ,651 761,651 704,000 Staff support Staff support to the CGLBID - 2% of CGLBID assessment revenue 8,759 7,707 16,500 5,450 14,240 14,500 Total Expenses 462,854 472,681 826,000 777,942 790.131 733,000 EndinQ Fund Balance Continciencv for Revenue shortfall $136,587 $344,804 $344,804 $134,027 270,673 270,673 Member hotels: • FY2014-15 thru FY 2016-17 -Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, and Carlsbad by the Sea Resort. • FY2017-18 -Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the Sea Resort, and Omni La Costa Resort. • FY2018-19 -Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the Sea Resort, Omni La Costa Resort and Westin Carlsbad. • FY2019-20 -Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the Sea Resort, Omni La Costa Resort and Westin Carlsbad.