HomeMy WebLinkAbout2020-08-25; City Council; Resolution 2020-178RESOLUTION NO. 2020-178
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE MODIFIED ANNUAL REPORT OF THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) AND
CONTINUING THE CTBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR
2020-21
WHEREAS, the Carlsbad Tourism Business Improvement District (CTBID) was formed in
accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and
Highway Code, § 36500 et seq.) (the "Act"); and
WHEREAS, Section 36533 of the Act requires the CTBID Advisory Board to present a report to
the City Council for review and approval for each fiscal year for which assessments are to be levied and
collected to pay the cost of the improvements and activities described in the report; and
WHEREAS, the CTBID Advisory Board submitted an Annual Report to the City Council for FY
2020-21, which the City Council approved at its meeting on June 2, 2020 and confirmed at its meeting
on June 23, 2020; and
WHEREAS, the CTBID Advisory Board submitted a modified Annual Report to the City Council
for FY 2020-21 based on the proposed modification of the CTBID assessment to two percent (2%) of
gross short-term room rental revenue for all transient occupancies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows:
1. The above recitals are true and correct.
2. The modified Annual Report for FY 2020-21 (Attachment A) is approved, subject to
confirmation after a public hearing on the proposed CTBID assessment modification.
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Aug. 25, 2020 Item #6 Page 4 of 23
PASSED, APPROVED AND ADOPTED at a Meeting of the City Council of the City of Carlsbad on
the 25th day of August, 2020, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
L—(e)v(dielivID-Evvia,
BARBARA ENGLESON, City Clerk
(SEAL)
Aug. 25, 2020 Item #6 Page 5 of 23
Carlsbad Tourism and Business Improvement District (CTBID)
2020-2021 Modified Annual Report
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 2% of gross short-term room rental revenue 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% of gross short-term
room rental revenue 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.
2019-20 Work Plan: Last fiscal year, the CTBID contracted with Carlsbad Convention and
Visitors Bureau (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad.
In addition, $20,000 in grants were awarded to fund events to increase the overnight
stays in Carlsbad hotels.
The previously adopted CTBID 2020-21 budget included a reduced funding level of
$800,000 for Visit Carlsbad. This reduced funding level is the result of reduction in
assessment revenue due to Covid-19. The services provided will focus primarily on post
Covid-19 marketing recovery efforts. The majority of this will be done by interactive
marketing and group sales. Funding also includes managing the visitor center and
publications. The increase in the assessment from $1 per room night to 2% of gross
revenue will result in an estimated budget of $1,200,000, and goes into effect November
1. This increased revenue will provide additional funding for marketing during the
recovery. Due to the uncertainty of the tourism economy at this time, the CTBID Board
will revisit the budget mid-year as well as the Visit Carlsbad contract to make adjustments
based on the needs at that time.
Detail of the modified 2020-21 budget is shown on the following page.
ATTACHMENT A
Aug. 25, 2020 Item #6 Page 6 of 23
2020-21 CTBID Budget
2016-17 2017-18 2018-19 2019-20 2020-21 2020-21
Program Areas Description Actuals Actuals Actual Actual Adopted Budget Modified Budget
Carryover Fund Balance $655,774 $722,331 $696,716 $640,318 617,131 617,131
Revenues:
CTBID Assessment $1 per room night 1,205,851 1,246,944 1,333,001 1,088,859 800,000 1,200,000
Interest Earnings 1,658 2,535 26,920 21,385
Total Estimated Revenues 1,207,509 1,249,479 1,359,921 1,110,244 800,000 1,200,000
Expenditures:
2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of CTBID
assessment and accounting for CTBID 24,116 24,896 26,644 21,045 16,000 24,000
CCVB Payment To operate visitor center, market and promote Carlsbad 978,612 1,130,216 1,244,575 1,040,326 800,000 800,000
Staff support Staff support to the CTBID - 2% of revenues 19,224 16,972 15,649 20,446 16,000 24,000
Professional Services Civitas Contract 32,960 12,000
CTBID Grants Grant program established by CTBID Board 119,000 103,011 129,451 18,654 75,000 35,000
Total Expenses 1,140,952 1,275,095 1,416,319 1,133,431 907,000 895,000
Ending Fund Balance Contingency for Revenue shortfall $722,331 $696,716 $640,318 $617,131 510,131 922,131
Aug. 25, 2020 Item #6 Page 7 of 23
Visit Carlsbad Expenses
2016-17
Actuals
2017-18
Actuals
2018-19
Budget
2019-20
Request
Labor 348,088 406,478 422,051 434,324 Advertising Campaign 7,095 7,923 156,000 156,000
Digital MKtg 247,764 235,610 250,000 250,000
Group 184,259 198,967 301,100 194,500 PR Contract 95,099 224,353 185,000 190,000
G&A 27,911 29,323 35,649 30,676
Other promotion 35,725 39,929 41,800 42,500
945,941 1,142,583 1,391,600 1,298,000 37%
Reserves 722332
Aug. 25, 2020 Item #6 Page 8 of 23
Agreement Date
11/8/2019 $40,000 6 Months $6,000/month
paid (16,480) 12/19/2019
paid (6,240) 2/6/2020
paid (2,240) 6/30/2020
$15,040
5/15/2020 $20,000 6 Months $6,000/month
Paid -8000 6/4/2020
Paid -6000 7/23/2020
$6,000
Aug. 25, 2020 Item #6 Page 9 of 23