HomeMy WebLinkAbout2008-05-07; Carlsbad Tourism Business Improvement District; 0508-28; Adopt 2008-09 CTBID Annual Report and BudgetCARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB#
MTG.
DEPT.
0508-28
5-07-08
Admin
Services
Adopt 2008-09
Carlsbad Tourism Business
Improvement District Annual Report
and Budget
DEPT. HEAD Qf^
GENERAL ^
COUNSEL f£^
RECOMMENDED ACTION:
To adopt Resolution 2008-3 to approve the Carlsbad Tourism Business Improvement District
2008-09 annual report and budget.
ITEM EXPLANATION:
An ad hoc budget subcommittee met on April 18, 2008 to review the budget process and discuss
the needs of the CTBID for the upcoming year. This committee, comprised of Tim Stripe and Bill
Canepa, reviewed the financial position and needs of the CTBID. Based on this review, they are
presenting the recommended budget shown as Exhibit 1 for the 2008-09 fiscal year. This budget
includes estimated revenue of $785,000 and budgeted expenditures of $881,000. Included in
these expenditures are budgets for contracts for services with the Carlsbad Convention and
Visitors Bureau and San Diego North Convention and Visitors Bureau at the current amount
funded in 2007-08.
FISCAL IMPACT:
The 2008-09 budget includes estimated revenue of $785,000 and budgeted expenditures of
$881,000.
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. CTBID Annual Report
2. Resolution 2008-3 to approve the 2008-09 CTBID Annual Report and Budget.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
BOARD ACTION: APPROVED D
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
EXHIBIT 1
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2008-2009
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.
2008-09 Work Plan: During the 2007-08 fiscal year the CTBID Board contracted
with Reint Reinders and Associates (RR&A) to conduct a study on how
Carlsbad tourism sales, marketing and visitors services should be
conducted going forward. This study began in April 2008 and it is anticipated
that it will be completed by July 2008. The outcome of this study may assist in
determining future projects, programs or activities for the CTBID.
In May 2008, 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, 2008 through June 30, 2009. If there are changes
to be made in the future based on recommendations from the RR&A study, this
will allow time for transition and implementation. 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
t Buyer site inspections
• Meeting planner familiarization tours
• Tour planner familiarization tours
• Trade and travel show attendance
• Direct mail campaigns
t 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.
2008-09 CTBID Budget
Program Areas Description 2008-09 Budget
Carryover Fund Balance
Revenues:
CTBID Assessment Projected at same level as 2007-08
Interest Earnings
Total Estimated Revenues
Expenditures:
2% Admin. Fee - City
324,982
775,000
10,000
CCVB Payment
SDNCVB Payment
Positioning Study*
RR&A Contract**
Staff support
CTBID Grants
Contingency
Total Budgeted Expenses
2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID
$37,400/month, to operate visitor center, market and
promote Carlsbad
$9,167/month, to provide group sales
Marketing Study Phase I
Staff support to the CTBID
Approved by Board at 3/18 meeting
To be determined by the CTBID Board at a later date
785,000
16,500
448,000
110,000
0
16,500
40,000
250,000
Ending Fund Balance Contingency for Revenue shortfall
881,000
228,982
1 RESOLUTION NO. 2008-3 EXHIBIT 2
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 AND BUDGET
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 2008-09 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 Budget; and
18 WHEREAS, the Board of Directors of the Carlsbad Tourism Business
1" 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.
25 2. That the Annual Report shown at 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.
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1 3. That the approved Annual Report and Budget of the Carlsbad Tourism
2 Business Improvement District will be presented to the City Council for its approval at a
June 2008 meeting.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the Board
of Directors of the Carlsbad Tourism Business Improvement District of the City of
Carlsbad held on the I day of I \ CLv/ , 2008 by the
following vote, to wit:
AYES:
NOES:
ABSENT:
APRIL SHUTE, Chair
ATTEST:
L
Pro Tern Clerk of the
Carlsbad Tourism Business Improvement District
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