HomeMy WebLinkAbout2018-06-26; City Council; Resolution 2018-103RESOLUTION NO. 2018-103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE CARLSBAD GOLF LODGING BUSINESS
IMPROVEMENT DISTRICT (CGLBID) ANNUAL REPORT, AND CONTINUING
THE CGLBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2018-19
EXHIBIT 1
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 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 submitted to the City council for Fiscal Year 2018-19; and
WHEREAS, Section 36535 (d) of the Streets and Highways Code of the State of California, allows
the City Council to " ... adopt a resolution continuing the program and assessments as levied in the then
current year without change, and that resolution shall constitute the levy of an assessment for the
fiscal year referred to in the report"; and
WHEREAS, the City Council must adopt a new resolution each year in order to levy an
assessment for that fiscal year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the Annual Report (Attachment A) is approved as submitted by the Board of
Directors for the Carlsbad Golf Lodging Business Improvement District.
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3. That the program and assessment as levied in the current fiscal year (2017-18) shall
continue without change.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 26th day of June, 2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
None.
None.
June 26, 2018 Item #3 Page 4 of 6
ATIACHMENTA
Carlsbad Golf Lodging Business Improvement District (CGLBID)
Annual Report
2018-2019
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
$427,000 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, Omni La Costa Resort 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$700,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount
for reimbursement to the hotels is $672,000. 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 $28,000, which is 4% of the revenues.
Detail of the 2018-19 budget is shown on the following page.
June 26, 2018 Item #3 Page 5 of 6
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.
June 26, 2018 Item #3 Page 6 of 6