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Home My WebLink About2006-08-20; Carlsbad Tourism Business Improvement District; 0206-2; Operation of CTBID PresentationCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 0206-2 MTG. 2-8-06 DEPT. ADMIN SERVICES TITLE: PRESENTATION FROM STAFF REGARDING THE OPERATION OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) ^*\^ORIGINATORVT&I---^ CITY ATTY. A/V RECOMMENDED ACTION: Accept the report from staff. If necessary, provide direction to staff to return with additional information. ITEM EXPLANATION: On November 15, 2005 the City Council adopted Ordinance No. NS-778 forming the Carlsbad Tourism Business Improvement District. This action was the culmination of many months of effort by the tourism industry and City Council focused on the creation of a dedicated funding source to support tourism enhancement in Carlsbad. The CTBID will receive its revenue from a $1 per-night assessment on each occupied room within the City. All hotels and businesses that provide lodging to tourists that are subject to the collection of the City's Transient Occupancy Tax (TOT) will also be responsible for collecting the CTBID assessment. CTBID assessments will be paid to the City of Carlsbad with the monthly TOT reports filed by each hotel. The City will then make these funds available to the CTBID to fund the Board's work programs. There are currently approximately 3,600 hotel rooms located in 35 properties within Carlsbad that offer lodging to the tourism industry. This strong base has the potential of providing funding to the CTBID of as much as $874,000 assuming room occupancy rates averaging 66%. The total amount of revenue received will vary with room occupancy rates. The Board members of the CTBID appointed by the City Council on November 8, 2005 (Resolution No 2005-332) include: Name Term April Shute, La Costa Hotel and Spa No term limit Robert Cima, Four Seasons Resort, Aviara No term limit Timothy Stripe, Grand Pacific No term limit Ted Vallis, Olympic Resort Two year initial term, through 11/08/07 Barbara Howard-Jones, Best Western Two year initial term, through 11/08/07 Bill Canepa, Hilton Gardens Inn Four year initial term, through 11/08/09 Francis Kauhaahaa, Holiday Inn Four year initial term, through 11/08/09 (Bill Canepa has indicated that he will be unable to serve. Therefore, the City Council will appoint a new member to fill Mr. Canepa's term.) The duties and responsibilities of the Board is spelled out in the California Government Code in the Parking and Business Improvement Area Law of 1989, Section 36500 et seq. of the Streets and Highways Code. A copy of this law will be distributed at the first meeting PAGE 2 as background information for the Board. The City Attorney has been appointed by the City Council to act as legal counsel to the CTBID Board, and will provide additional information about the statutes and how they govern the actions of the Board. A memo from the City Attorney addressing the public nature of the CTBID Board, open meeting laws, conflict of interest rules, rules of procedure, and the taking of minutes is attached to this agenda bill. Additional materials will be presented to the Board at the first meeting. The City Council's actions that formed the CTBID appointed the City Manager, or his representative, an ex-officio member of the CTBID Board. The City Manager has delegated this duty to the City's Administrative Services Director, Jim Elliott. Mr. Elliott will attend all CTBID Board meetings as a non-voting member of the board, and will be the Board's liaison with the City of Carlsbad. At this meeting of the CTBID the Board will hear a short report from both the City Attorney and the Administrative Services Director. The Board may request additional information to be provided as necessary to carry out its duties and responsibilities. The goal of this portion of the agenda is provide the Board with an opportunity to become comfortable with its new duties, prior to getting on with the business of the district. FISCAL IMPACT: This is an information item only. EXHIBITS: 1. Memo from the City Attorney to the CTBID Board of Directors dated January 19, 2006 DEPARTMENT CONTACT: Jim Elliott, 760-602-2409, e-mail: ielli@ci.carlsbad.ca.us January 19, 2006 TO: Carlsbad Tourism Business Improvement District Board Of Directors FROM: City Attorney BOARD OF DIRECTORS MEETING 1/31/06 Welcome to your first meeting of the Carlsbad Tourism 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 don't 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 of the 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 award contracts and recommend an annual budget to the City Council. The contracts which you award 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, encouraging and furthering 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; you may request the City to provide that service or hire your own minutes 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. RONALD R. BALL City Attorney rmh attachments