HomeMy WebLinkAbout2006-08-31; Carlsbad Tourism Business Improvement District; Resolution 2006-8EXHIBIT 1
1 RESOLUTION NO. 2006-8
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADVISORY
BOARD OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT
3 DISTRICT (CTBID) OF THE CITY OF CARLSBAD, CALIFORNIA, TO
4 APPROVE THE ANNUAL REPORT
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6 WHEREAS, the CTBID was formed in accordance with the California
7 Government Code Parking and Business Improvement Area Law of 1989 (Sections
8 36500, et. Seq. of the Streets and Highways Code), and
9 WHEREAS, Section 36533 of the Code requires the CTBID 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
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for the improvements and activities described in the report; and
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WHEREAS, an Annual Report has been prepared for the 2006-07 fiscal14
year, and
16 WHEREAS, the Board of Directors of the Carlsbad Tourism Business
17 Improvement District wishes to approve the Annual Report; and
18 WHEREAS, the Board of Directors of the Carlsbad Tourism Business
19 Improvement District wishes to submit the report to the City Council for approval; and
20 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
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Carlsbad Tourism Business Improvement District of the City of Carlsbad, California, as
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follows:
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1. That the above recitations are true and correct.24
25 2. That the Annual Report shown at Exhibit A is approved in its entirety
26 as the first report of the Board of Directors of the Carlsbad Tourism Business
27 Improvement District.
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3. That the approved Annual Report of the Carlsbad Tourism Business
2 Improvement District will be presented to the City Council for their approval at a
September 2006 meeting.
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1 PASSED, APPROVED AND ADOPTED at a regular meeting of the Board
2 of Directors of the Carlsbad Tourism Business Improvement District of the City of
3 Carlsbad held on the r> I J day of f\ UA u-fT" , 2006 by the
4 following vote, to wit:
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AYES:
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NOES:
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ABSENT:8
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11 APRIL SHUTE, Chair
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13 ATTEST:
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ULj
i-y i i_ \yiM\vumi_ yv^vJU—tORRAlNE'WbOrj'
Pro Tem Clerkof the
Carlsbad Touris*nJ3usiness Improvement District
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EXHIBIT A
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2006-2007
Method of Assessment: The CTBID includes all hotel businesses located within the CTBID
boundaries. The assessment shall be levied on all hotel businesses, existing and future, within
the City of Carlsbad based upon a flat fee of $1.00 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 collected monthly, based on $1.00 per occupied room per night in revenues for the previous
month.
Assessment Funding Purpose: To administer marketing and visitor programs to promote
the City of Carlsbad as a tourism visitor destination and to fund projects, programs, and
activities, including appropriate administrative charges that benefit hotels within the boundaries
of the District.
2005-06 Fiscal Year Activity: The CTBID Board contracted with Carlsbad Convention and
Visitors Bureau and San Diego North Convention and Visitors Bureau for tourism promotion
services for the period March 1, 2006 through June 30, 2006 at the same level that they were
being provided under their contracts with the City. In addition, the Board authorized the
repayment of funds advanced by the City of Carlsbad for the costs related to the formation of
the CTBID. These costs totaled $33,500 and were to be paid in equal installments over a 6-
month period. This loan was paid off as of June 30, 2006.
2006-07 Work Plan: In June 2006, the CTBID Board approved extension of agreements with
Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors
Bureau for tourism promotion services for the period July 1, 2006 through December 31, 2006.
These agreements require that these agencies continue to provide the services they have
provided in the past as detailed below:
Carlsbad Convention and Visitors Bureau (CCVB): Manage and coordinate marketing
programs that position Carlsbad as a year-round leisure visitor destination in Southern
California.
• Increase brand awareness
• Operate Visitor Information Center in the Historic Santa Fe Train Depot seven days per
week.
• Initiate familiarization tours by inviting the media to Carlsbad.
• Promote local; community events.
• Develop private funding sources for the purpose of supplementing funds.
• Support a full-time marketing campaign.
• Provide semi-annual reports of the activity and expenses of the CCVB to the City.
San Diego North Convention and Visitors Bureau (SDNCVB): Increase measurable visitor
spending through the generation of group business leads from room night bookings and group
events. Tactics include:
• Phone solicitation/prospecting
• Personal sales calls to targeted national and international businesses
• Buyer site inspections
EXHIBIT A
• Meeting planner familiarization tours
• Tour planner familiarization tours
• Trade and travel show attendance
• Direct mail campaigns
• Product launches from wholesale and airline vacation companies
• Email solicitation and promotions
• Reservation center educationals
• E-commerce development
Semi-annual reports are also to be provided with performance measures.
Since the above contracts only cover through December 31, 2006, the CTBID Board will need
to determine before the end of 2006 how they want to allocate funding for contractual services
for the second half of the fiscal year (the period 1/1/2007 though 6/30/2007). At this time the
budget only includes a lump sum for contractual services which the board will further identify at
a later date.
2006-07 CTBID Budget
Program Areas Description Budget
Carryover Fund Balance 7/01/06
2006-07 Revenues:
CTBID Assessment
Interest Earnings
Total Estimated Revenues
2006-07 Expenditures:
2% Administrative Fee - City
CCVB Payment
SDNCVB Payment
Staff support
Contractual Services
Total Expenses
$1 per room night, projected 3600 hotel
rooms at average 60% occupancy
$ 74,005
790,000
1,000
2% of CTBID assessment revenue, for
collection of CTBID assessment and
accounting for CTBID
$34,000 per month for 6 months, to operate
visitor center, market and promote
Carlsbad
$8,333 per month for 6 months, to provide
group sales
Staff support to the CTBID
To be determined by the CTBID Board
791,000
15,800
204,000
50,000
7,500
429,705
707,005
Projected Fund Balance 6/30/07 20% Contingency for Revenue shortfall $ 158,000