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HomeMy WebLinkAbout2013-01-30; Carlsbad Golf Lodging Business Improvement District; 01-13-02; Presentation Staff ReportCARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 01-13-02 PRESENTATION FROM STAFF REGARDING THE CGLBID STAFF CH- MTG. 01-30-13 CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT (CGLBID) GENERAL COUNSEL CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT (CGLBID) / RECOMMENDED ACTION: Accept the report from staff. If necessary, provide direction to staff to return with additional information. ITEM EXPLANATION: At its November 27, 2012 meeting, the Carlsbad City Council adopted Ordinance No.CS-194 forming the Carlsbad Golf Lodging Business Improvement District (CGLBID). This action was the culmination of many months of effort by the hotels and the City Council focused on the creation of a funding source to market golf related overnight stays in Carlsbad. The CGLBID is a voluntary district. Hotel (as that term is defined in Carlsbad Municipal Code § 3.12.020(1)) members (Hotel Member) that opt in would be assessed $2.00 per occupied room night to be paid to the city monthly through the current Transient Occupancy Tax collection process. The assessment would be passed through to the Hotel Member's guest as opposed to being paid directly from the Hotel Member's operating revenues. Each assessed Hotel Member would determine how to spend the funds collected by their respective property provided the expenditures are for an approved golf related expense. Reimbursement of these expenses would be made quarterly upon approval from the CGLBID Board up to the amount collected per said property minus administrative fees. For the 2012-13 fiscal year three hotels have chosen to participate in the CGLBID; the Sheraton Carlsbad, the Grand Pacific Palisades and the Park Hyatt Aviara. These hotels make up about 669 rooms in Carlsbad and based on past occupancy figures it is estimated that these 3 hotels would generate $330,000 in annual assessment revenue for the new district. The Board members of the CGLBID appointed by the City Council on November 27, 2012 (Resolution 2012-260) include: Tim Stripe, Grand Pacific Resorts Gary Glaser, The Crossings at Carlsbad Mark Stiebeling, Park Hyatt Aviara Two year initial term through 11/2014 Four year initial term through 11/2016 Four year initial term through 11/2016 The City Attorney has been appointed by the City Council to act as legal counsel for the CGLBID Board, and will provide additional information about the statues and how they govern the actions of the Board. A memo from the City Attorney addressing the public nature of the CGLBID Board, open meetings laws, conflict of interest rules, rules of procedure and the taking of minutes is attached to this agenda bill. The City Council's actions that formed the CGLBID appointed the City Manager, or his representative, an ex-officio member of the CGLBID Board. The City Manager has delegated this duty to the Deputy City Manager, Cynthia Haas. Ms. Haas will attend all CGLBID Board meetings as a non-voting member of the board, and will be the Board's liaison with the City of Carlsbad. FISCAL IMPACT: None. ENVIRONMENTAL IMPACT: This action does not qualify as a project underthe California Environment Quality Act ("CEQA") and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b).) EXHIBITS: 1. Memo from City Attorney dated 1/22/13. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, chervl.qerhardt @carlsbadca.aov FOR CITY CLERKS USE ONL Y. BOARD ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • EXHIBIT 1 January 22, 2012 TO: Carlsbad Golf Lodging Business Improvement District Board of Directors FROM: City Attorney/General Counsel BOARD OF DIRECTORS MEETING 1/30/13 Welcome to your first meeting of the Carlsbad Golf Lodging Business Improvement District. Enclosed, please find some information regarding your powers, duties and obligations as a member of the Advisory Board. The Advisory Board has been appointed by the City Council to carry out the purposes of the District as specified in the ordinance. You are a public body and your meetings are subject to the Open Meeting Laws and other applicable laws governing the conduct of business of public bodies. That requires that you determine a regular meeting schedule and notice your meetings at least 72 hours in advance so the public may be informed and participate. You may have special meetings, in addition to regular Board meetings, when necessary. I do not anticipate a need for any, but you can have closed sessions based on the advice of the City Attorney. These must also be noticed and every item of business must be briefly described. I recommend that you familiarize yourself with the publication "Open & Public III" which has frequently asked questions about the Open Meeting laws and the text of the Brown Act itself. As a member ofthe Advisory Board, you are also subject to the Conflict of Interest rules, which basically require that you recuse yourself from items that come before the Board in which you are financially interested. This does not include your economic interests by virtue of your hotel ownership, control, income or other economic association with your hotel. It does, however, require you to recuse yourself when there are other economic conflicts. For example, you would not participate in the award of a contract to a person or entity that was a source of income to you. There are many and detailed rules associated with conflicts of interest which are set forth in two laws. The first law is known as the "political Reform Act" and the second law is known as Government Code section 1090. I will be happy to assist you in determining whether or not you have any conflicts under either of these laws. Ultimately, the Attorney General, Fair Political Practices Commission or the courts determine the final answers to some of these questions. One of your primary responsibilities will be to approve reimbursements and recommend an annual budget to the City Council. The reimbursements must benefit the District and be consistent with its purposes and the purpose for which the assessments have been collected. This will require your finding that such recommended expenditures further the purposes of promoting, golf related tourism and the revenue and taxes associated with it. You may establish your own rules of procedure. They are to be guided by the City Council's rules of procedure. Your meetings should be conducted according to those rules which basically require actions to be taken by the Advisory Board by motions and voting. All of your votes are public. One of you will need to take minutes of your meetings or you may request the City to provide that service or hire your 1 EXHIBIT 1 own minute's clerk. The minutes of your meeting will be filed with the City Clerk and are open to public inspection at any time. Congratulations on your first meeting and I will be happy to assist you in the conduct of your business in any way appropriate. CELIA A. BREWER City Attorney/General Counsel Cg Attachments