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Home My WebLink About2016-05-25; Carlsbad Golf Lodging Business Improvement District; ; Approve the annual report of the Carlsbad Golf Lodging Business Improvement DistrictCARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT AGENDA BILL Approve the Annual Report of the rJ:sY AB# 05-16-24 Carlsbad Golf Lodging Business CTBID STAFF Improvement District GENERAL MTG. 5-25-16 COUNSEL RECOMMENDED ACTION: Adopt Resolution No. 2016-3G approving the Annual Report of the Carlsbad Golf Lodging Business Improvement District (CGLBID) and submit the report to the City Council for approval at a June 2016 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 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. 2016-3G, Approve Annual Report DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, cheryl.gerhardt @carlsbadca.gov 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 EXHIBIT 1 RESOLUTION NO. 2016-3G 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, CALIFORNIA, TO APPROVE THE ANNUAL REPORT 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'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 2016-17 fiscal year, and WHEREAS, the Board of Directors of the Carlsbad Golf Lodging Business Improvement District wishes to approve the Annual Report; and WHEREAS, the Board of Directors of the Carlsbad Golf Lodging Business Improvement District wishes to submit the report to the City Council for approval; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the 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 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of tiA Directors of the Carlsbad Tourism Business Improvement District on the .LL-day of r:l ::~i,e:: 'th::::::ng vote to wit: NOES: None. ABSENT: Onizuka ATTEST: Pro Tern Clerk of the Carlsbad Tourism Business Improvement District Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill -2- EXHIBIT A Carlsbad Golf Lodging Business Improvement District (CGLBID) Annual Report 2016-2017 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. 2014-15 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 2015-16 the Carlsbad by the Sea Resort opted into the district. These four hotels are expected to collect a total of $440,000 in CGLBID Assessments in Fiscal Year 2015-16. 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 2016-17, no additional hotels have elected to participate in the district so the district will include the same four hotels as Fiscal Year 2015-16. It is estimated that these four hotels will collect a total of $450,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount for reimbursement to the hotels is $432,000. 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 2016-17 are budgeted at $18,000, which is 4% of the revenues. Detail of the 2016-17 budget is shown on the following page. EXHIBIT A 2016-17 CGLBID Budget 2012-13 2013-14 2014-15 2015-16 Actuals as of Projected Recommended Program Areas Description Actuals Actuals Actuals Budget 4/30/2016 2015-16 Actuals 2016-17 Budget Carryover Fund Balance $0 $7,900 $158,637 $149,264 158,637 158,637 149,037 Revenues: CGLBID Assessment* $2 per room night 135,156 354,525 440,239 450,000 359,296 440,000 450,000 Interest Earnings -66 1,348 1,043 963 0 Total Estimated Revenues 135,090 355,873 441,282 450,000 360,259 440,000 450,000 Exr;1enditures: 2% Admin. Fee -City For collection of CGLBID assessment and accounting for CGLBID-2% of CGLBID assessment revenue 2,703 7,090 8,804 9,000 7,014 8,800 9,000 Reimbursements Reimbursement to member hotels for golf related expenditures 121,651 192,095 433,447 432,000 372,911 432,000 432,000 Staff support Staff support to the CGLBID-2% of CGLBID assessment revenue 2,836 5,951 8,404 9,000 8,257 8,800 9,000 Total Expenses 127,190 205,136 450,655 450,000 388,182 449,600 450,000 Ending Fund Balance Contingency for Revenue shortfall $7,900 $158,637 $149,264 $149,264 $130,714 149,037 149,037 * Member hotels for FY2012-13 and FY 2013-14 include Sheraton Carlsbad, Park Hyatt Aviara and Grand Pacific Palisades. *Member hotels for FY2014-15 and FY 2015-16 include Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, and Carlsbad by the Sea Resort.