The URL can be used to link to this page

Home My WebLink About2006-08-31; Carlsbad Tourism Business Improvement District; 0806-10; CTBID Annual ReportCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# MTG. DEPT. 0806-10 8-31-06 Admin Services Approve the Annual Report of the Carlsbad Tourism Business Improvement District DEPT. HEAD^x^ GENERAL }tf£> COUNSEL Q^ RECOMMENDED ACTION: Adopt Resolution #2006-8 approving the Annual Report of the Carlsbad Tourism Business Improvement District (CTBID) and submit the report to the City Council for approval at a September 2006 meeting. ITEM EXPLANATION: In accordance with Section 36533 of the California Streets and Highways Code, the CTBID 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 CTBID. • 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 (Exhibit A) which 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 153789(b)). EXHIBITS: 1. Resolution #2006-8, Approve Annual Report (Exhibit A to the Resolution) DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED B CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER-SEE MINUTES D AMENDED D EXHIBIT 1 1 RESOLUTION NO. 2006-8 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADVISORY BOARD OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT 3 DISTRICT (CTBID) OF THE CITY OF CARLSBAD, CALIFORNIA, TO 4 APPROVE THE ANNUAL REPORT 5 6 WHEREAS, the CTBID was formed in accordance with the California 7 Government Code Parking and Business Improvement Area Law of 1989 (Sections 8 36500, et. Seq. of the Streets and Highways Code), and 9 WHEREAS, Section 36533 of the Code requires the CTBID 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 12 for the improvements and activities described in the report; and 13 WHEREAS, an Annual Report has been prepared for the 2006-07 fiscal14 year, and 16 WHEREAS, the Board of Directors of the Carlsbad Tourism Business 17 Improvement District wishes to approve the Annual Report; and 18 WHEREAS, the Board of Directors of the Carlsbad Tourism 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 21 Carlsbad Tourism Business Improvement District of the City of Carlsbad, California, as 22 follows: 23 1. That the above recitations are true and correct.24 25 2. That the Annual Report shown at Exhibit A is approved in its entirety 26 as the first report of the Board of Directors of the Carlsbad Tourism Business 27 Improvement District. 28 3. That the approved Annual Report of the Carlsbad Tourism Business 2 Improvement District will be presented to the City Council for their approval at a September 2006 meeting. 4 5 6 III7 8 '" 9 /// 10 /// 11 /// 12 /// 13 /// 14 /// 15 16 17 18 '" 19 '" 20 /// 21 /// 22 /// 23 /// 24 /// 25 26 27 28 -2- 18 1 PASSED, APPROVED AND ADOPTED at a regular meeting of the Board 2 of Directors of the Carlsbad Tourism Business Improvement District of the City of 3 Carlsbad held on the r> I J day of f\ UA u-fT" , 2006 by the 4 following vote, to wit: 5 AYES: 6 NOES: 7 ABSENT:8 9 10 11 APRIL SHUTE, Chair 12 13 ATTEST: 14 15 ULj i-y i i_ \yiM\vumi_ yv^vJU—tORRAlNE'WbOrj' Pro Tem Clerkof the Carlsbad Touris*nJ3usiness Improvement District 19 20 21 22 23 24 25 26 27 28 -3- EXHIBIT A Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2006-2007 Method of Assessment: The CTBID includes all hotel businesses located within the CTBID boundaries. The assessment shall be levied on all hotel businesses, existing and future, within the City of Carlsbad based upon a flat fee of $1.00 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 collected monthly, based on $1.00 per occupied room per night in revenues for the previous month. Assessment Funding Purpose: To administer marketing and visitor programs to promote the City of Carlsbad as a tourism visitor destination and to fund projects, programs, and activities, including appropriate administrative charges that benefit hotels within the boundaries of the District. 2005-06 Fiscal Year Activity: The CTBID Board contracted with Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors Bureau for tourism promotion services for the period March 1, 2006 through June 30, 2006 at the same level that they were being provided under their contracts with the City. In addition, the Board authorized the repayment of funds advanced by the City of Carlsbad for the costs related to the formation of the CTBID. These costs totaled $33,500 and were to be paid in equal installments over a 6- month period. This loan was paid off as of June 30, 2006. 2006-07 Work Plan: In June 2006, the CTBID Board approved extension of agreements with Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors Bureau for tourism promotion services for the period July 1, 2006 through December 31, 2006. These agreements require that these agencies continue to provide the services they have provided in the past as detailed below: Carlsbad Convention and Visitors Bureau (CCVB): Manage and coordinate marketing programs that position Carlsbad as a year-round leisure visitor destination in Southern California. • Increase brand awareness • Operate Visitor Information Center in the Historic Santa Fe Train Depot seven days per week. • Initiate familiarization tours by inviting the media to Carlsbad. • Promote local; community events. • Develop private funding sources for the purpose of supplementing funds. • Support a full-time marketing campaign. • Provide semi-annual reports of the activity and expenses of the CCVB to the City. San Diego North Convention and Visitors Bureau (SDNCVB): Increase measurable visitor spending through the generation of group business leads from room night bookings and group events. Tactics include: • Phone solicitation/prospecting • Personal sales calls to targeted national and international businesses • Buyer site inspections EXHIBIT A • Meeting planner familiarization tours • Tour planner familiarization tours • Trade and travel show attendance • Direct mail campaigns • Product launches from wholesale and airline vacation companies • Email solicitation and promotions • Reservation center educationals • E-commerce development Semi-annual reports are also to be provided with performance measures. Since the above contracts only cover through December 31, 2006, the CTBID Board will need to determine before the end of 2006 how they want to allocate funding for contractual services for the second half of the fiscal year (the period 1/1/2007 though 6/30/2007). At this time the budget only includes a lump sum for contractual services which the board will further identify at a later date. 2006-07 CTBID Budget Program Areas Description Budget Carryover Fund Balance 7/01/06 2006-07 Revenues: CTBID Assessment Interest Earnings Total Estimated Revenues 2006-07 Expenditures: 2% Administrative Fee - City CCVB Payment SDNCVB Payment Staff support Contractual Services Total Expenses $1 per room night, projected 3600 hotel rooms at average 60% occupancy $ 74,005 790,000 1,000 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID $34,000 per month for 6 months, to operate visitor center, market and promote Carlsbad $8,333 per month for 6 months, to provide group sales Staff support to the CTBID To be determined by the CTBID Board 791,000 15,800 204,000 50,000 7,500 429,705 707,005 Projected Fund Balance 6/30/07 20% Contingency for Revenue shortfall $ 158,000