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Home My WebLink About2020-05-06; Carlsbad Golf Lodging Business Improvement District; ; Approve the Annual Report of the Carlsbad Golf Lodging Business Improvement DistrictApprove the Annual Report of the Carlsbad Golf Lodging Business Improvement District AB# 5-20-51 MTG. 5-6-20 CTBID STAFF GENERAL COUNSEL CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT AGENDA BILL RECOMMENDED ACTION: Adopt a resolution 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 2020 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. Staff will be issuing a more comprehensive Annual Report document in July 2020 once the books are closed for fiscal year 2019-20. 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 Guideline 15378(b).) EXHIBITS: 1. Resolution approving annual report. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2468, cheryl.gerhardt (carlsbadca.gov DocuSign Envelope ID: 0D6A3427-5AEB-4EF1-B676-29E7DC21A817 RESOLUTION NO. 2020-63G RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT (CGLBID), APPROVING THE ANNUAL REPORT WHEREAS, the CGLBID was formed in accordance with 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 for their 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, an Annual Report has been prepared for the 2020-21 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, as follows: 1. That the above recitations are true and correct. 2. The Annual Report shown at Exhibit A is approved in its entirety by the BBoard of Directors of the Carlsbad Golf Lodging Business Improvement District. 3. That the Annual Report of the Carlsbad Golf Ledging Business Improvement District will be presented the City Council for their approval at a June 2020 meeting. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Golf Lodging District on the 6th day of May 2020, by the following vote to wit: AYES: Stripe, Hughes, Stull, Gray, Rauch NAYS: None. ABSENT: None. ABSTAIN: None. DocuSign Envelope ID: 0D6A3427-5AEB-4EF1-B676-29E7DC21A817 Ilm cfrift, Tim Stripe Chair ATTEST: e, I Peck"' &0n 2,, Depa7:-) Cil Cleo(' BARBARA ENGLESON Pro Tern Clerk of the Carlsbad Golf Lodging Business Improvement District ATTACHMENT A Carlsbad Golf Lodging Business Improvement District (CGLBID) 2020-2021 Report 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. 2019-20 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 2014-15 the Carlsbad by the Sea Resort opted into the district, in 2017-18 Omni La Costa Resort opted into the district, and in 2018-19 the Westin Carlsbad Resort opted into the district. These six hotels are expected to collect a total of $550,000 in CGLBID Assessments in Fiscal Year 2019-20. 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 2020-21, the district will have eight hotels. It is estimated that these eight hotels will collect a total of $500,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount for reimbursement to the hotels is $500,000. 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 2020-21 are budgeted at $20,000, which is 4% of the revenues. Detail of the 2020-21 budget is shown on the following page. 2020-21 CGLBID Budget Program Areas Description 2016-17 Actuals 2017-18 Actuals 2018-19 Actuals 2019-20 Budget Actuals as of 4/30/2020 Projected 2019-20 Actuals Recommended 2020-21 Budget Carryover Fund Balance $169,707 $136,587 $344,804 $291,861 291,861 291,861 185,979 Revenues: CGLBID Assessment * $2 per room night 428,949 681,703 719,740 733,000 494,961 550,000 500,000 Interest Earnings 786 -805 11,142 2,127 2,500 0 Total Estimated Revenues 429,735 680,898 730,882 733,000 497,088 552,500 500,000 Expenditures: 2% Admin. Fee - City For collection of CGLBID assessment and accounting for CGLBID - 2% of CGLBID assessment revenue 8,579 13,633 14,394 14,500 8,733 11,000 10,000 Reimbursement to member hotels for golf related Reimbursements expenditures 445,516 451,341 761,651 704,000 641,382 641,382 500,000 Staff su Staff support to the CGLBID - 2% of CGLBID pport assessment revenue 8,759 7,707 7,780 14,500 5,015 6,000 10,000 Total Expenses 462,854 472,681 783,825 733,000 655,130 658,382 520,000 Ending Fund Balance Contingency for Revenue shortfall $136,587 $344,804 $291,861 $291,861 $133,819 185,979 ' 165,979 Member Hotels opting into the District: * FY2014-15 - Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, and Carlsbad by the Sea Resort. * FY2017-18 - Omni La Costa Resort. * FY2018-19 - Westin Carlsbad Resort. " FY2020-21 - Hilton Garden Inn, and Cape Rey Beach Hilton Resort.