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Home My WebLink About2013-05-15; Carlsbad Golf Lodging Business Improvement District; 05-13-06; Approve Annual ReportCARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 05-13-06 MTG. 5-15-13 Approve the Annual Report of the Carlsbad Golf Lodging Business Improvement District CTBID STAFF GENERAL COUNSEL RECOMMENDED ACTION: Adopt Resolution No. 2013-5G approving tlie Annual Report of tine Carlsbad Golf Lodging Business Improvement District (CGLBID) and submit the report to the City Council for approval at a June 2013 meeting, ITEM EXPLANATION: In accordance with Section 36533 of the California Streets and Highways Code, the CGLBID Advisory Board is required to present an annual report for City Council's review and approval for each fiscal year for which assessments are to be levied and collected to pay the costs for the improvements and activities described in the report. This report is to contain: • Any proposed changes to the boundaries of the CGLBID, • The activities to be provided for that fiscal year, • Estimate of the cost of providing those activities (ie budget) • The method and basis of levying the assessment. • The amount of any surplus or deficiency revenues to be carried over from the previous year, • The amount of any other contributions Staff has prepared the attached report (included as an attachment to Exhibit 1) which is includes the above items. Staff recommends that the Board approve the attached report for presentation to the City Council, FISCAL IMPACT: None. ENVIRONMENTAL IMPACT: This action does not qualify as a project under the California Environment Quality Act ("CEQA") and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b). EXHIBITS: 1. Resolution No, 2013-5G, Approve Annual Report DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, chervl.qerhardt @carlsbadca,aov 22 23 24 25 26 27 28 EXHIBIT 1 1 RESOLUTION NO. 2013-5G 2 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, 4 CALIFORNIA, TO APPROVE THE ANNUAL REPORT 5 WHEREAS, the CGLBID was formed in accordance with the California 6 Y Government Code Parking and Business Improvement Area Law of 1989 (Sections 36500, et. Seq, of the Streets and Highways Code), and 9 WHEREAS, Section 36533 of the Code requires the CGLBID Advisory 10 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 2013-14 fiscal year, and WHEREAS, the Board of Directors of the Carlsbad Golf Logding Business 11 12 13 14 15 16 Improvement District wishes to approve the Annual Report; and ^8 WHEREAS, the Board of Directors of the Carlsbad Golf Lodging 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 ^1 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 its approval at a June 2013 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 15*^ day of May 2013 by the following vote, to wit: AYES: Board Members Stiebeling, Stripe. NOES: None. ABSENT: Board Member Glaser. ATTEST: MARK STIEBELING, Chair -2- EXHIBIT A Carlsbad Golf Lodging Business Improvement District (CGLBID) Annual Report 2013-2014 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. 2013-14 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), three hotel's opted into the district. Those three hotels; the Sheraton Carlsbad, the Park Hyatt Aviara and the Grand Pacific Palisades Hotel, are expected to collect a total of $138,000 in CGLBID Assessments. 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 fon^/ard to the next fiscal year. For Fiscal Year 2013-14, no additional hotels have elected to participate in the district so the district will include the same three hotels as Fiscal Year 2012-13. It is estimated that these three hotels will collect a total of $335,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount for reimbursement to the hotels is $321,000, This amount plus any carry fonA^ards from the previous fiscal year will be available to the assessed hotels for reimbursement. Administrative fees for Fiscal Year 2013-14 are budgeted at $5,520, which is 4% of the revenues. Detail of the 2013-14 budget is shown on the following page. 2013-14 CGLBID Budget EXHIBIT A Program Areas Description 2012-13 Budget Actuals as of 4/30/2013 Projected 2012-13 Actuals Recommended 2013-14 Budget Carryover Fund Balance $0 0 0 100 Revenues: CGLBID Assessment * Interest Earnings $2 per room niglit 138,000 76,938 63 138,000 100 335,000 0 Total Estimated Revenues 138,000 77,001 138,100 335,000 Expenditures: 2% Admin. Fee - City Reimbursements Staff support 2% of CGLBID assessment revenue, for collection of CGLBID assessment and accounting for CGLBID Reimbursement to member hotels for golf related expenditures Staff support to the CTBID 2,760 132,480 2,760 1,539 0 1,660 2,760 132,480 2,760 6,700 321,600 6,700 Total Expenses 138,000 3,199 138,000 335,000 Ending Fund Balance Contingency for Revenue shortfall $0 $73,802 100 100 Member hotels for FY2012-13 and FY 2013-14 include Sheraton Carlsbad, Park Hyatt Aviara and Grand Pacific Palisades.