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Home My WebLink About2007-06-05; Carlsbad Tourism Business Improvement District; 0607-21; CTBID Annual ReportCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# MTG. DEPT. 0607-21 6-05-07 Admin Services Approve the Annual Report of the Carlsbad Tourism Business Improvement District DEPT. HEAD C£^ GENERAL rffa COUNSEL G£^ RECOMMENDED ACTION: Adopt Resolution #2007-5 approving the Annual Report of the Carlsbad Tourism Business Improvement District (CTBID) and submit the report to the City Council for approval at their June 19, 2007 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 (i.e. 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 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 153789(b)). EXHIBITS: 1. Annual Report for presentation to the City Council. 2. Resolution #2007-5, Approve Annual Report DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES D D D D EXHIBIT 1 Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2007-2008 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 remitted 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. 2007-08 Work Plan: During the 2006-07 fiscal year the CTBID Board contracted with the Wright Group and Destination Analysts to perform a positioning study. The purpose of this study is to identify a positioning strategy for Carlsbad that would help increase tourism. This study will begin in June 2007 and it is anticipated that it will be completed by the end of 2007. The outcome of this study may assist in determining future projects, programs or activities for the CTBID. In June 2007, the Carlsbad Tourism Business Improvement District Board approved renewing agreements with Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors Bureau for tourism promotion services for the period July 1, 2007 through June 30, 2008. 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. EXHIBIT 1 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 • Meeting planner familiarization tours • Tour planner familiarization tours • Trade and travel show attendance • Direct mail campaigns • Product launches fro wholesale and airline vacation companies • Email solicitation and promotions • Reservation center educationals • E-commerce development • Quarterly reports are to be provided with performance measures. 2007-08 CTBID Budget Program Areas Description Budget Estimated Fund Balance 7/01/07 2007-08 Estimated Revenues: CTBID Assessment Interest Earnings Total Estimated Revenues 2007-08 Expenditures: 2% Administrative Fee - City CCVB Payment SDNCVB Payment Staff support Contingency Total Expenses Projected Fund Balance 6/30/08 $1 per room night, projected 3600 hotel rooms at average 60% occupancy 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID $37,400 per month , to operate visitor center, market and promote Carlsbad Staff support to the CTBID To be determined by the CTBID Board $ 200,005 775,000 5,000 780,000 15,500 448,800 $9,167 per month, to provide group sales 110,000 15,000 150,000 739,300 $ 240,705 EXHIBIT 2 1 RESOLUTION NO. 2007-5 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 2007-08 fiscal 14 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. ^T" 25 2. That the Annual Report shown as Exhibit 1 is approved in its entirety 26 as the first report of the Board of Directors of the Carlsbad Tourism Business 27 Improvement District. 28 1 3. That the approved Annual Report of the Carlsbad Tourism Business 2 19, 2007 meeting. Improvement District will be presented to the City Council for their approval at the June 3 4 III 5 III 6 III 1 8 '" 9 /// 10 /// 11 /// 12 /// 13 /// 14 /// 15 III 16 III 17 18 '" 19 '" 20 /// 21 /// 22 /// 23 /// 24 /// 25 III 26 III 27 III 28 -2- 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 Directors of the Carlsbad Tourism Business Improvement District of the City of <"" ^TO dav nf O UCarlsbad held on the _ following vote, to wit: AYES: NOES: ABSENT: day of , 2007 by the APRIL SHUTE, Chair ATTEST: WOOD Pro Tem\Clerk of the CarlsbadTourism Business Improvement District III in III III -3-