HomeMy WebLinkAbout2014-01-22; Carlsbad Golf Lodging Business Improvement District; 01-14-11; Approve Reimbursement RequestsCARLSBAD GOLF LODGING
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB# 1-14-11 Approve Reimbursement Requests
Carlsbad Golf Lodging Business
Improvement District (CGLBID)
CGLBID STAFF /tiy
MTG. 1-22-14
Approve Reimbursement Requests
Carlsbad Golf Lodging Business
Improvement District (CGLBID) GENERAL
COUNSEL
Approve Reimbursement Requests
Carlsbad Golf Lodging Business
Improvement District (CGLBID)
RECOMMENDED ACTION:
Adopt Resolution No. 2014-2G approving the Reimbursement Requests from the Sheraton
Carlsbad, the Grand Pacific Palisades Hotel, and the Park Hyatt Aviara of approved golf related
expenses and authorizing staff to process the payment.
ITEM EXPLANATION:
At its November 27, 2012 meeting, the Carlsbad City Council adopted ordinance No.CS-194
forming the Carisbad Golf Lodging Business Improvement District (CGLBID). Hotels (as that term
is defined in Carlsbad Municipal Code § 3.12.020(1)) that choose to opt in and be a part of this
district are assessed $2 per occupied room night which is remitted to the city monthly through the
current Transient Occupancy Tax collection process. The proceeds of the additional hotel
business assessment shall be used 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 the related administrative costs. Each assessed hotel 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 by the CGLBID Board up to the amount collected per property minus
administrative fees.
At its April 17, 2013 meeting, the CGLBID Board approved a process for reimbursement (Exhibit
A). Based on this process, staff has reviewed reimbursement requests submitted by the Sheraton
Carlsbad, Grand Pacific Palisades Hotel and Park Hyatt Aviara and is recommending the board
approve the attached Resolution approving the reimbursement requests and authorizing staff to
process the payment for the expenses up to the amount collected minus the 4% administration
fees.
Attached at Exhibit B is a summary of CGLBID Assessments collections and a summary of
Requests for Reimbursement.
FISCAL IMPACT:
As of December 31, 2013 CGLBID Assessment revenue was $180,282. Reimbursement
requests from the Sheraton Carlsbad were $34,543 of which a $32,448 is available and is being
recommended for payment. Reimbursement requests from the Grand Pacific Palisades were
$11,975 of which $11,735 is available and is being recommended for payment. Reimbursement
requests from the Park Hyatt Aviara were $2,658 of which $2,658 is available and is being
recommended for payment.
ENVIRONMENTAL IMPACT:
This action does not approve any projects that will have a physical adverse affect on the
environment so it falls within the general rule under CEQA that this is not a project (CEQA
Regulation 15378 (b)).
EXHIBITS:
1. Resolution No. 2014-2G approving the Reimbursement Requests from the Sheraton
Carlsbad, the Grand Pacific Palisades Hotel, and the Park Hyatt Aviara of approved golf
related expenses and authorizing staff to process the payment.
A. CGLBID Proposed Process for Reimbursement
B. Summary of CGLBID Assessment collections and summary of Requests for
Reimbursement
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, chervl.aerhardt carlsbadca.aov
EXHIBIT A
Carlsbad Golf Lodging Business Improvement District (CGLBID)
Process for Reimbursement
(see Chapter 3.38 of CMC for more information)
• Hotels that have opted into the CGLBID will collect a $2 per room night CGLBID assessment. This
assessment may be combined with the CTBID assessment on the guest's bill, and notated as "BID
Assessments", but may not be combined with TOT or state assessments.
• Hotel will remit monthly, CGLBID assessments along with TOT and CTBID assessments. City finance
department will revise form to include line for CGLBID assessment.
• City will track CGLBID payments for each hotel. Amount collected minus 4% administrative charge
will be available to the hotels for reimbursement for allowable expenditures.
• Hotel shall submit a quarteriy accounting of expenses for CGLBID activities to BID manager.
Reimbursement requests submitted by the 10**^ of the month following the end of the quarter will
be processed for that quarter's reimbursement.
• BID manager will review documentation and determine allowable amount of reimbursement.
Reimbursement will be limited to amount of assessment remitted to the city less the 4%
administrative fee. Reimbursement request will be included in the CGLBID Board meeting agenda
for approval by the CGLBID Board at the next CGLBID Board meeting. Approval must be made by a
quorum of the board which is at least two members. CGLBID Board's decision shall be final as to
whether an allowable expenditure is reimbursable.
• Where a reimbursement was denied by the CGLBID Board, the Board, pursuant to CMC § 3.28.070,
may recommend to the Carisbad City Council that the type or purpose of denied reimbursement be
permitted in the future as an allowable expenditure.
• Once reimbursement is approved by the CGLBID Board, BID manager will process the payment to
hotel.
• Any funds that have not been reimbursed by the end of the year will carry forward to the next year.
• Meeting dates for CGLBID 1/30/13, 4/17/13, 5/15/13, 7/10/13,10/7/13
• Allowable expenditures include the following:
> Equipment related to golf such as golf transportation equipment, golf racks, golf signage, etc.
(equipment related specifically to the promotion of golf)
> Joint marketing related to the promotion of a member's property and a Carisbad golf course.
Approved by CGLBID Board 4/17/13
EXHIBIT A
such as:
• A brand initiative such as Marriott, Hilton, Starwood, or Hyatt advertising the
member's property in conjunction with a Carisbad Golf Course
• A marketing promotion - radio, TV, or print advertising the member's property and a
Carisbad golf course
• On-line / Internet promotions jointly advertising a member's property and a Carisbad
golf course
• Reimbursement for marketing and sales staff on time spent in joint marketing efforts
> Other expenses to promote golf-related tourism
Documentation required for reimbursement
> Completed Request for Reimbursement Form
> Copy of invoices for expenses
Approved by CGLBID Board 4/17/13
Summary of CGLBID Assessment Collections
EXHIBIT B
Expenses
Account Check
Total Less 4% Available Pending Paid Balance Request
Propertv Deposits Admin Fee Deposits (A) Approval (B) (A)-(B) amount
Grand Pacific Palisades Hotel 49,356 1,974 47,382 11,975 35,646 11,735 11,735
Park Hyatt Aviara 129,696 5,188 124,508 2,658 61,668 62,841 2,658
Sheraton Carlsbad Resort 136,386 5,455 130,931 34,543 98,482 32,448 32,448
315,438 12,618 302,820 49,176 195,796 107,024
(1) These expenses will be reimbursed in the next quarters reimbursement
January 22, 2014 Reimbursement Requests!
1 Grand
Sheraton Pacific Park Hyatt
i Carlsbad Palisades Aviara Total
Advertising and Marketing | 6,498 2,355 2,658 11,511
Public Relations 12,000 12,000
Sales and Marketing Contract 1 --
Director of Sales Salary j 16,045 9,620 25,665
34,543 11,975 2,658 49,176
EXHIBIT 1
1 RESOLUTION NO. 2014-2G
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2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT
DISTRICT, ADOPTING THE PROPOSED REIMBURSEMENT
PROCESS
WHEREAS, at its November 27, 2012 meeting, the Carlsbad City Council adopted
Ordinance No. CS-194 forming the Carlsbad Golf Lodging Business Improvement District
(CGLBID); and
WHEREAS, members of the district are assessed $2 per occupied room night which is
remitted to the city monthly through the current Transient Occupancy Tax collection process;
and
WHEREAS, the proceeds of the additional assessment shall be used to promote golf
related tourism within the boundaries of the district; and
WHEREAS, each assessed hotel would determine how to spend the funds collected by
their respective property provided the expenditure are for an approved golf related expense; and
WHEREAS, reimbursement of these expenses would be made quarterly upon approval
of the CGLBID Board up to the amount collected per property minus administrative fees per the
reimbursement process as shown at Exhibit A; and
WHEREAS, staff has reviewed the reimbursement requests shows at Exhibit B and is
recommending the Board approve these reimbursements and authorize staff to pay the requests
up to the amount available.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors ofthe Carlsbad
Golf Lodging Business Improvement District, as follows:
1. That the above recitations are true and correct.
2. The CGLBID Board approves the January 22 reimbursement requests shown at
Exhibit B and authorizes staff to pay the following amounts to the following hotels:
Sheraton Carlsbad $32,448
Grand Pacific Palisades Hotel $11,735
Park Hyatt Aviara $ 2,658
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PASSED, APPROVED, AND ADOPTED at a regular meeting ofthe Board of
Directors of the Carlsbad Golf Lodging District on the 22 : day of
January 2014, by the following vote to wit:
AYES: Board Members Glaser, Stripe.
NOES: None.
ABSENT: Board Member Allen.
Gary Glaser
Chair
ATTEST:
12 BARBARA ENGLESON
Pro Tem Clerk of the
13 Carlsbad Golf Lodging Business Improvement District
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