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Home My WebLink About2009-05-19; Carlsbad Tourism Business Improvement District; 05-09-43; Approve the annual report of the CTBIDCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 05-09-43 MTG. 5-19-09 DEPT. AdminServices Approve the Annual Report of the Carlsbad Tourism Business Improvement District DEPT. HEAD ( 5^V GENERAL COUNSEL RECOMMENDED ACTION; Adopt Resolution #2009-3 approving the Annual Report of the Carlsbad Tourism Business Improvement District (CTBID) and submit the report to the City Council for approval at a June 2009 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 (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. 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 #2009-3, Approve Annual Report DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, caerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. TT BOARD ACTION: APPROVED /& CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN O CONTINUED O RETURNED TO STAFF D WITHDRAWN D OTHER - SEE MINUTES O AMENDED D EXHIBIT I 1 RESOLUTION NO. 2009-3 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADVISORY .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 , WHEREAS, the CTBID was formed in accordance with the Californiao 7 Government Code Parking and Business Improvement Area Law of 1989 (Sections g 36500, et. Seq. of the Streets and Highways Code), and 9 WHEREAS, Section 36533 of the Code requires the CTBID Advisory 1° Board to present an annual report to the City Council's for their review and approval for 1' each fiscal year for which assessments are to be levied and collected to pay the cost for 12 the improvements and activities described in the report; and 13 WHEREAS, an Annual Report has been prepared for the 2009-10 fiscal 14 year, and WHEREAS, the Board of Directors of the Carlsbad Tourism Business16 , 7 Improvement District wishes to approve the Annual Report; and 13 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 2. That the Annual Report shown at Exhibit A is approved in its entirety 26 by the Board of Directors of the Carlsbad Tourism Business Improvement District. 27 28 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 3. That the approved Annual Report of the Carlsbad Tourism Business Improvement District will be presented to the City Council for their approval at a June 2009 meeting. 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 I9tb day of May _ , 2009 by the following vote, to wit: AYES: Board Members Stripe, Canepa, Becerra and Nayudu. NOES: None . ABSENT: Board Members Sbute, Cima and Howard-Jones. APRIL SHUTE, C ATTEST: WOOGf ) ' Pro TooyClerk of me/ Carlsbad Tourism Business Improvement District -2-0 EXHIBIT A Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2009-2010 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. 2009-10 Work Plan: During the 2008-09 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. Based on this study, Mindgruve advertising agency was hired to develop and implement a detailed marketing and branding plan. An aggressive Spring and Summer on-line marketing campaign is currently underway. The results of that campaign will determine the course future marketing campaigns. As part of the work done by RR&A, a new name, new executive director, new bylaws and a new Board of Directors were implemented for the Carlsbad Convention and Visitors Bureau. This organization, now doing business as VisitCarlsbad will be fully operational starting July 1, 2009. The CTBID budget for 2009-10 includes $722,895 in funding for this organization. The services provided will focus primarily on driving demand in the leisure market segment and secondarily the meetings market. Funding also includes managing the visitor center and publications. The visitcarlsbad website will be redesigned and used as the primary distribution channel for new business opportunities for CTBID properties. The CTBID 2009-10 budget also includes $72,000 funding for Reint Reinders in Associates. The services provided by RR&A will include managing the Mindguve marketing campaign, monitoring the execution of the action plan by VisitCarlsbad and mentoring the new VisitCarlsbad executive director. RR&A will report back to the CTBID board on a regular basis on the performance of both Mindgruve and VisitCarslbad over the next fiscal year to ensure their recommendations get implemented as planned. EXHIBIT A 2009-1OCTBID Budget Program Areas Description Carryover Fund Balance Revenues: CTBID Assessment $1 per room night Interest Earnings Total Estimated Revenues Expenditures: 2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID CCVB Payment To operate visitor center, market and promote Carlsbad SDNCVB Payment To provide group sales RR&A Contract Reint Reinders and Associates Consulting Staff support Staff support to the CTBID CTBID Grants Grant program established by CTBID Board Mindgruve contract Spring Marketing Campaign Mindgruve contract Endless Summer Marketing Campaign Contingency To be determined by the CTBID Board at a later date Total Expenses Ending Fund Balance Contingency for Revenue shortfall 2008-09 Budget $546,800 775,000 10,000 785,000 16,500 448,800 110,000 120,000 16.500 40,000 350,000 100.000 0 1.201.800 $130,000 Current 2008-09 Actuals 654,996 9,462 664,458 10.780 299,200 73,333 69,400 15,442 6,664 187,958 0 0 662.777 Projected 2008-09 Actuals 546,800 775,000 12,107 787,107 16,500 448,800 110,000 120,000 16,500 16,664 350,000 100,000 0 1.178,464 155,443 Recommended 2009-10 Budget 155,443 775,000 10.000 785,000 16,500 722,895 0 72,000 16,500 20,000 0 0 0 847,895 92,548 * The Carlsbad Convention and Visitors Bureau is the corporate entity. The Bylaws have been changed during 2009 to an organization that now has seven Board members and the dba "Visit Carlsbad".