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HomeMy WebLinkAbout1988-09-27; City Council; 9663; Proposed Letter of Support for Golf Coursed&" (@ CI- OF CARLSBAD - AGENr BILL AB# 9(963 ITITLE: DEPT. HD.- PROPOSED LETTER OF SUPPORT FOR GOLF COURSE MTG. 9-27-88 DEPT. Mamaux CITY ATTY RECOMMENDED ACTION: City Council authorize the proposed letter of support for Golf Course. ITEM EXPLANATION: Attached is a letter in support of the City's Proposition 'MI for the funding of a Golf Course, Tennis Facilities and other recreational amenities. of support for transmission to the Chamber of Commerce and other appropriate en ti ties. It is requested that the City Council sign this letter EXHIBITS 1. Letter of support addressed to Mr. Don Hoyt, President, Carls bad Chamber of Commerce. .. - 1200 ELM AVENUE CARLSBAD, CA 92008-1989 City Council Office TELEPHONE (619) 434-2830 September 27, 1988 Don Hoyt, President CARLSBAD CHAMBER OF COMMERCE P.O. Box 1605 Carlsbad, CA 92008 Dear Mr. Hoyt: On September 28, 1988, the Board of Directors of the Carlsbad Chamber of Commerce will review the ballot measure Prop "M". This letter and included back-up material is presented to aid you in reviewing this important proposal. Included in this packet are the following: 4) 5) Agenda bi 11 ent i tl ed, "Report of Counci 1 Go1 f Course Subcommi tte" , dated July 12, 1988. City Council Meeting Minutes, dated July 12, 1988. Agenda bill entitled, "Transient Occupancy Tax Increase - Special Tax for Golf Course and Tennis Facilities", dated August 2, 1988. City Council Meeting Minutes, dated August 2, 1988. Memo from City Finance Director entitled, "Transient Occupancy Tax Revenue Projections", dated September 8, 1988. Letter from Carlsbad Chamber of Commerce to Carlsbad City Council, dated July 8, 1988. City Attorney's Impartial Analysis of Proposition "M". Ballot Measure Argument in Favor of Proposition "M". Comments from Arnold Palmer, dated July 5, 1988. Not included, because of size and reproduction costs, is the golf course feasibility report on golf facilities in Macario Canyon prepared in February 1987. at anytime. The City Council has expended a considerable amount of time and energy on this important project. We believe that sharing this added material will increase the background information needed by all of us in our decision making processes. This report cost the City $25,000 to produce. It is available to you ? Don Hoyt September 27, 1988 Page 2 It is important that we take this opportunity to discuss the differences in the Board's position paper delivered to City Council July 8, 1988 (Appendix 6) and the Council action taken to date. Basically the Board and the City Council agree that the T.O.T. should be increased. However, the Board proposes that the increase in revenue (Appendix 6) be placed directly into the General Fund, whereas the Council has opted for a Special Tax Fund to be established. The Board and the Council agree on the calling for a vote on the tax. Therefore, the issue of the actual tax is moot at this point. Both sides have the same opinion. The Board wanted a staggered increase in the tax, and the Council presented a staggered increase in the tax rate. This staggered rate is slightly different than the one proposed, but represents the Council's willingness to respond to some of the Chamber's requests. The only difference in the Prop "M" ballot measure as presented and the Board's recommended course of action is the methodology in how the funds are to be handled. An explanation and discussion of this difference is in order. You will see that the differences are minimal. The Board proposed that the Council place on the ballot a measure that would increase the T.O.T. and place the funds in the General Fund. The Board proposed a separate ballot measure for recreational purposes to meet the requirements of Prop "H" . Under the Board's proposal, all of the T.O.T. increase would go into the General Fund and every special interest group and municipal need would compete for those funds every year. This proposal has some merit, but doesn't, on its face, solve the recreational issue in the companion measure. Once the funds are placed into the General Fund, and the Prop "H" requirement has been met, the City would incur bonded, or long term debt, to construct the golf course and tennis facilities. Under the Board's proposal of the financial strength of the City would be placed behind the debt for the Golf/Tennis complex. This automatically increases the potential funds for the repayment of the debt. Prop "M", in contrast, limits the amount of funds available for debt service to ability of the T.O.T. to generate funds. That limitation results in further restrictions if the debt is incurred in the early years of the tax. Under Prop "M", the funds generated in excess of the monies needed for debt service will directly or indirectly be utilized for General Fund purposes. The additional funds (Appendix 5) will be spent at the discretion of the City Council, after public input. It is anticipated that excess funds for this purpose will be available in the fiscal year 1991-92. Don Hoyt September 27, 1988 Page 3 The amount of money utilized for debt service for the Golf/Tennis Complex should be the same whether the funds are in the General Fund or in a special Tax Fund. The amount of money available for General Fund purposes, in excess of the debt service, is exactly the same. President Don Hoyt and Board Members have previously expressed support for the Golf/Tennis Complex. The need for these facilities and their resultant benefits to the community have been documented over a period of time (Appendix 6). It is estimated that the annual debt payment for the Golf/Tennis Complex will be $900,000. Does it matter whether the monies come from the General Fund or a Special Fund? Obviously, it will amount to the same amount. The only difference of opinion, then, is in the excess funds. Whenever the debt is retired the entire fund will be available for direct and indirect relief to the General Fund fiscal pressures. Rest assured that all excess funds resulting from the increased revenues from Prop "M" will be expended by the City Council only after open discussion and public input has been received. Additionally, it is anticipated that the Golf Course will generate a profit in the vicinity of $200,000 per year. These Funds could be utilized for early debt retirement in discretionary use by the City Council. Again, public input will be received on the distribution of these funds during annual budget review periods. Once Prop "M" is approved by the voters, the following timetable is proposed: November 1988 - February 1989 - Site review and selection of the best of three sites. Chamber input in this phase is encouraged. April 1989 ADril 1989 - January 1990 January 1990 March 1, 1990 June 1, 1991 - Architect selection - Chamber input anticipated. - Design - Chamber and citizen participation will be encouraged. - Bids for construction. - Construction begins. - Play opens. Don Hoyt September 27, 1988 Page 4 It appears that the Board and the City Council agree on the need for a Golf and Tennis Complex, and on the need to increase the T.O.T. We have an apparent difference of opinion on the methodology for the collecting and accounting for these funds. Hopefully this report will be of assistance to you. Thank you for your time and patience in reviewing this material. important issue to the City of Carlsbad and your deliberations are important. It is a very We know you share our desire to continue the City of Carlsbad's efforts to build only quality facilities. Unfortunately, we have not found a way to build quality facilities without spending money. Sincerely, "CLAUDE A. "BUD" LEWIS Mayor Counci 1 Member MARK PETTINE Counci 1 Member (/ Counci 1 Member mhs Enclosures . I 1' July 6, 1988 TO : CITY COUNCIL FROM: Golf Course Subcommittee REPORT OF COMMITTEE ON GOLF AND TENNIS FACILITY FINANCING Your Council Subcommittee had two meetings, one on July 2, 1988, and the other on July 5, 1988 to review the issue with staff and prepare a recommendation for consideration by the full Council. reviewed the attached report from the City Finance and Parks and Recreation Directors. $10 million depending upon the location and scope of the proposed facilities. Such facilities could be financed if an additional 2% was added to the Transient Occupancy Tax. The Subcommittee Proposed golf and tennis facilities would cost between $6 and Operating costs for the golf and tennis complex will be covered by user fees and charges. The City would have a variety of revenue sources such as greens fees, concessions, leases and rentals which could be used to fund direct operating expenses. TOT will generate ultimately more than is needed to fund golf and tennis facilities. in accordance with the City's Parks and Recreation Program. The balance will be used for other general City recreation facilities In summary, the Committee recommends the Council consider two alternatives: 1. Special Transient Occupancy Tax to be levied in two steps - 1% on July 1, 1989 and 1% on January 1, 1990. Requires two-thirds majority for approval. 2. General Transient Occupancy Tax - 1% to be levied on January 1, 1989 and 1% to be levied on January 1, 1990, and a separate Proposition H vote. Both require 50% majority for approval. Committee members both agree on alternative 1 and can recommend that alternative to the Council. on alternative 2, the Council may want to consider alternative 2 as well. Although the Subcommittee did not reach agreement JOHN J. MAMAUX MARK V. PETTINE saf July 61 1988 TO : CITY MANAGER ASSISTANT CITY MANAGER FROM : FINANCE DIRECTOR PARKS & RECREATION DIRECTOR REPORT ON GOLF COURSE COMMITTEE MEETING Summary On July 2, 1988, the Council's Golf Course Committee met with the City staff to discuss various options for funding the construction of a City owned golf courseltennis facility. The Committee reviewed various alternatives including 1) a General Obligation bond issue, 2) private development, 3) special tax increases to support a debt issue, and 4) funding general operations from a general tax and allowing the Council to determine how the general tax funds should be spent, The committee narrowed the field of options to these shown below and is asking the full Council to discuss the matter at the next available Counc i 1 inee t ing . Funding Alternatives A. B. Special Taxes: 1) Increase the Transient Occupancy Tax by 2% on the dates shown below: 1% on July 1, 1989 1% on January 1, 1990 2) Increase the Transient Occupancy Tax as shown below: 2% on January 1, 1990 3) Increase the Transient Occupancy Tax as shown below: 2% on April 1, 1990 General Taxes: 1) Increase the Transient Occupancy Tax as shown below for general fund operations: 1% on January 1, 1989 1% on January 1' 1990 Should the Council wish to proceed with a tax measure to be placed before the voters, all actions must be completed by August 9th and submitted to the County Registrar's office by August 12th to qualify for the November ballot. Project Description The committee reviewed various alternative configurations for a golf complex/ tennis facility and sports field development at Macario Canyon Park. reviewing the available options, the committee is recommending the following configuration for the facilities: After Regulation (72 par) golf course on one of three possible sites: Lake Calavera, Macario Canyon or the county property near the Safety Center. Project costs would include: Course construction Club house/Pro shop Exterior site work (parking, lighting etc) Maintenance building and yard Cart storage shed Maintenance equipment Access improvements The cost of carts and operations for the first 6 months are also considerations, however these may be met through either contracting or other methods. Tennis Center including the following: Construction of up to 16 courts Club house/Pro shop Exterior site work Access improvements The construction of a short course (par 56) was also discussed. The priority at this time is to accomplish the construction of a regulation course with the construction of a short course to follow when funding allows. The concept of developing Macario Canyon sports facilities was also discussed by the committee. later date, the committee is recommending that the existing park development plan be followed and that Macario Canyon not be considered for development until required. Although the Council may wish to discuss these facilities at a The tentative project construction schedule calls for the golf courseltennis improvements to begin in early 1990 and end by early 1992. If voters were to approve a funding mechanism in November 1988, site selection would begin immediately. is selected. Construction bids could be accepted as early as March or April 1990 with construction requiring up to 18 months. Design could be completed approximately 6 to 8 months after a site Operating costs for the golf and tennis complex will be covered by user fees and charges. The City has a variety of sources of revenue, including greens fees, concesions, leases and rentals which can be used to fund direct operating expenses. Staff does not anticipate sufficient revenue to offset debt service costs * Funding The committee reviewed several basic funding concepts including general obligation bonds, private developers and special taxes. In addition, the committee discussed the use of General Fund revenues to support debt service payments augmented by the increase of TOT taxes. After some discussion, the committee narrowed the field of funding options to two, both of which deal with increasing the Transient Occupancy Tax (TOT) rate. -2- These options are summarized below: Special Tax - Requires a 2/3 vote - Funds received are designated - for special purposes General Tax - Requires simple majority - No separate Prop H Vote required - for spending on special projects - 1% TOT tax increase yields about $375,000 per year Funds received are deposited to the General Fund Spending more than $1 million on a capital project requires a Prop H Vote. 1% TOT tax increase yields about $375,000 per year The Special Tax scenario is very similar to Proposition D presented to the voters last June. The major differences between Prop D and the Special Tax options considered by the committee are found in the starting date for the tax. The table below summarizes the various special tax proposals: Effective Dates for Tax Increases Proposition D 2% Special Tax Option 1 1% Special Tax Option 2 2% Special Tax Option 3 2% General Tax Option 1 1% ANNUAL TOT REVENUE VARIOUS TAX July 1, 1989 July 1, 1989 1% January, 1990 January 1, 1990 April 1, 1990 January 11, 1989 1% January 1990 vs PROJECT COSTS OPTIONS TOT Revenue In Thousands 1200 1000 800 600 400 200 0 88-89 09-90 90-91 91-92 FISCAL YEAR m PROP0 SPEC TAX OPT 1 SPEC TAX OPT 2 = SPEC TAX OPT 3 QEN TAX OPT 1 The General Tax proposal would have two key features. ballot measure would direct all revenue to the General Fund. required to go forward with a bond issue or golf courseltennis center construction. Second, a companion Proposition H advisory measure would be necessary to allow Council to proceed with project construction. several methods for structuring a General Tax measure using various starting dates for the tax increase. for a 1% increase beginning January 1, 1989 and another 1% beginning January 1, 1990. First, the tax increase The Council is not There are One proposal outlined by the committee would call -3- The starting dates for the tax increases are important to guarantee that the City has sufficient cash flow to support debt service and/or project costs as they occur. The chart below shows the estimated increased TOT revenue vs the expected project costs. Those alternatives that show a deficiency of revenue in 1989-90 depend on a loan of funds from the General Fund to allow project design to proceed. Any loan would be repaid during 1990-91 from proceeds of the bond sale. Allowing the General Tax measure to phase in during 1988-89 provides about $200.000 in revenue this year which can be used to help balance the cuzreut budget. The surplus in each of the remaining years under both the Special and General Tax measures could also be used to help fund City operations. The amount of funding necessary will depend upon the final design of the project. Cost estimates for construction of a regulation golf course and tennis facility range from $6 million to $10 million. This wide range reflects the uncertainty surrounding final site selection and scope of the project. the debt service costs for bond issues up to $12 million based on current interest rates. The chart belocr shows ANNUAL DEBT SERVICE COSTS Debt Servlce In Thousand S 1400 I 1200 1000 800 eo0 400 200 0' I I I I I I I I 1 I I 12 3 4 6 0 7 8 9 10 11 12 Million Dollars of Debt Issued -AT&% +AT9% Draft Ballot Measures The committee indicated an interest in reviewing draft ballot language. measures have been roughed out, one for the Special Tax and one for the General Tax measures. The City Attorney will provide the City Council with guidance on the final wording of the final measure. Two 1. Special Tax: "Shall Ordinance No. - be adopted amending Chapter 3.12 of the Carlsbad Municipal Code to increase the Transient Occupancy Tax rate by an additional 2% to pay for a public golf course, tennis courts 'or other recreational facilities consistent with the City Parks and Recreation program. (The ordinance prepared by the City Attorney will deal with the specific dates of the tax increases and how funds in excess of those required for debt service will be distributed to the General Fund.) -4- 2. General Tax: be adopted amending Chapter 3.12 of the Carlsbad - "Shall Ordinance No. Municipal Code to increase the Transient Occupancy Tax rate by an additional 2% to pay for general City operations?" (The ordinance prepared by the City Attorney will deal with the specific dates of the tax increases and how funds are to be distributed to the General Fund.) Proposition H Spending Limit: "Should the City of Carlsbad be authorized to construct a golf course and tennis facilities with a total cost greater than $1 million?" (The City Attorney will provide additional guidance on the wording of the Proposition H measure.) Response to Committee Questions The committee raised several questions during the meeting which inay have soiiie bearing on the Council's final decision. addressed by the City Attorney if Council wishes to pursue the issue. The Attorney has provided guidance where necessary and may wish to comment separately. Some of these questions can be further If the City places a Special Tax measure before the voters, can it be worded in a way that it will allow the imposition of a tax if a 2/3 vote is achieved or provides Proposition H approval if a simple majority is received but a Special Tax is not approved? Although there may be a way to word such a measure, the Council would be on more stable ground if the two questions were separated. Constitution limits state ballot measures to single issues. Coiiibining the Proposition H question with the tax question may conflict with this constraint. The State Can the City propose a General Tax measure increasing the TOT by 2% for General fund purposes? Yes. increase for general purposes. There is no limitation on the City's ability to propose a General Tax Can the City pledge General Fund revenues to the repayment of bonds used to construct a City facility? Yes. in public finance. repayment of debt and total amount of debt outstanding must be observed in any issue. The pledge of General Fund revenues to the repayment of debt is common The normal limitations of adequacy of revenue for Can the City issue tax exempt debt for the construction of the golf courseltennis center? -5- .' Maybe. management services and a portion of the operator's coinpensation is based on the revenue produced by the facility, then it is likely that the City may be forced into issuing taxable bonds. If the City operates the course itself, the bonds can be tax exempt. The difference between a taxable and tax exempt issue is about $200,000 per year (assunling a $10 iiiilliori bond issue) in additional debt service. If the City enters into an agreement with a private operator for Recomineiida tions The committee reconinlends that the City Council select the appropriate funding method and direct staff to provide the necessary documents for placing the issue before the voters in November, 1988. The City Attorney will provide direction to Council on the necessary actions and will assist in drafting the final ballot measure. I //JAHES F. ELLIOTT I DAVID BRADSTREET c: Vince Biondo, City Attorney David Bradstreet, Parks & Recreation Director -6- Appendix 2 MINUTES July 12, 1788 Page 10 DEPARTMENTAL AND CITY MANAGER REPORTS: (Continued) City Attorney Vincent Biondo stated that if a speed limit is set too far below the speed determined by a speed survey, that speed limjt is not enforceable by th Police Department. They actually have a more hazardous situation, because the Police cannot use radar to enforce the speed limit and the courts would not uphold any citat.ions. In answer to query regarding the stop sign request, staff stated stop signs cannot b installed unless they meet CalTrans warrants. Also, stop signs installed to slow traffic can cause mre accidents, as drivers will not respect signs that are not warranted. Staff indicated they will help Mrs. Grove direct a request to the Traffic Safety Commission to analyze the stop sign requests. Council introduced the following Ordinance: ORDINANCE NO. NS-26, AMENDING TITLE 10, CHAPTER 10.44 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF SECTION 10.44.290 TO ESTABLISH THE SPEED LIMIT ON HILLSIDE DRIVE FROM PARK DRIVE TO NERLINA DRIVE. 18. AB 89534 - PRIMA FACIE SPEED LIMIT ON PORTION OF TAMARACK AVENUE. Bob Johnson, Traffic Engineer, gave the staff report as contained in the Agenda Bill. Counci 1 introduced the following Ordinance: ORDINANCE NO. NS-25, AMENDING TITLE IO, CHAPTER 10.44 OF THE CARLSRAD HJNICIPAL CODE BY THE ADDITION OF SECTION 10.44.300 TO ESTABLISH THE SPEED LIMIT ON TAMARACK AVENUE FROM EL CAMIND REAL TO HARWICH DRIVE. 19. AB #9535 - PRIMA FACIE SPEED LIMIT ON PORTION OF HILLSIDE DRIVE. This item was taken out of order. (See paqe 7) 20. AB t9537 - REPORT OF COUNCIL GOLF COURSE SUB- COMMITTEE. Council Member Mamaux gave the initial report on this ittem as contained in the Subcommittee Report attached to the Agenda Bill, with Council Member Pettine adding to the report, and giving the recommendation of the Subcommittee of Alternative #I: Occupancy Tax to be levied in two steps - 1 percent on July 1, 1789, and 1 percent on January 1, 1990; requiring a two-thirds majority for approval. Council directed staff to return with election documents to place a measure on the November ballot to increase the transient occupancy tax, in accordance with Alternative 81 in the Agenda Bill, with guidance from the Subcommittee in preparing the wording. Special Transient COUNCIL \' MEMBERS ' Lewis Kulchin Pet t i ne Mamux Larson Lewis Kulchin Pet t i ne Mamux Larson Lewis Kulchin Pet ti ne Mamaux Larson \ \ \B# y3*& 7 ATG. wz/m )EPT.cc Adopt Resolution No. - ?fWJ 7p , amending Resolution Nos. 88-225 and 88-226 calling and giving notice of the holding of the General Municipal Election. Adopting Resolution No. ff-27/ , directing the City Attorney to prepare an impartial analysis of the proposed ordinance pertaining to the Transient Occupancy Tax. Adopt Resolution No. ffiJf2, authorizing certain Council members to file a written argument regarding a City measure. TITLE: DEPT. HD.~&- CITY MOR&&- TRANSIENT OCCUPANCY TAX INCREASE - AND TENNIS FACILITIES CITY ATTY-La SPECIAL TAX FOR GOLF COURSE Introduce Ordinance No. NS-29, amending Chapter 3.12.035 to increase the Transient Occupancy Tax rate by 2%, to pay for a golf course, tennis courts and other recreational facilities. By minute motion, repeal Ordinance No. NS-10. ITEM EXPLANATION At the meeting of July 12, 1988, Council directed staff to prepare documents placing a Transient Occupancy Tax increase measure on the November 8, 1988 ballot. Ordinance No. NS-29 has been prepared in accordance with Council direction, and provides for a one percent (1%) increase in the Transient Occupancy Tax effective July 1, 1989, and a one percent (1%) increase effective January 1, 1990, to provide funds to pay for the design and construction of a municipal public golf course, tennis courts and other recreational facilities. Resolution No. 8r-a@ , amends Resolution Nos. 88-225 and 88-226 to include the submission of this measure to the voters at the November 8, 1988 election. Resolution No. f&n/ri , directs the City Attorney to prepare an impartial analysis of the measure, and Resolution No. 88-~7~authorizes Council Members to file a written argument regarding the measure. Ordinance No. NS-10 was not approved by the voters at the June 7, 1988 election. Therefore, by minute motion, Council should repeal Ordinance No. NS-IO. EXHIBITS 1. Resolution No. ff-J%' , amending Resolution Nos. 88-225 and 88-226 to include the submission to the qualified electors an ordinance relating to increasing the Transient Occupancy Tax by an additional 2% to finance the construction of a public golf course, tennis courts and other recreational facilities. Resolution No. jfeA17/ , directing the City Attorney to prepare an impartial analysis of the proposed ordinance. 2. PAGE 2 OF AB # 73’6./r 3. Resolution No. fsJY2, authorizing certain members of the City Council to file a written argument regarding the measure. 4. Ordinance No. NS-29, amending the Municipal Code to increase the Transient Occupancy Tax rate by 2% to pay for a golf course, tennis courts and other recreational facilities. 5. Ordinance No. NS-10. -- 1 2 SHALL ORDINANCE NO. NS-29 BE ADOPTED AMENDING CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE BY 2% TO PAY FOR A QUALITY REGULATION MUNICIPAL GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES? 3 YES NO 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ia 19 20 21 22 23 24 25 26 27 20 RESOLUTION NO. 88-270 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING RESOLUTION NOS. THE HOLDING OF THE GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY ON TUESDAY, NOVEMBER 8, 1988, TO INCLUDE THE SUBMISSION TO THE QUALIFIED ELECTORS AN ORDINANCE RELATING TO INCREASING THE TRANSIENT OCCUPANCY TAX BY AN ADDITIONAL 2% TO FINANCE THE CONSTRUCTION OF A PUBLIC GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES IN THE CITY. 88-225 AND 88-226 CALLING AND GIVING NOTICE OF WHEREAS, pursuant to the requirements of the laws of the State of California relating to General Law Cities, there has been called and ordered to be held in the City of Carlsbad, California, on Tuesday, November 8, 1988, a General Municipal Election for the purpose of electing two members of the City Council for the term of four years; and WHEREAS, the City Council desires to submit a measure to the voters relating to increasing the Transient Occupancy Tax by an additional 2% to pay for the construction of a public golf course, tennis courts and other recreational facilities in the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: SECTION 1. That the above recitations are true and correct. SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question: as Exhibit A. I- - .- SECTION 4. That Resolution No. 88-225 is hereby amended to include submission of this measure to the qualified voters of the City at the General Municipal Election to be held November 8, 1988. SECTION 5. That Resolution No. 88-226 is hereby amended to request the Board of Supervisors of the County of San Diego to authorize the Registrar of Voters to include this measure in the provision of specified services relating to the conduct of the election of the City of Carlsbad. SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 2nd day of August , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ABSENT: None ATTEST: (SEAL) 1 SHALL ORDINANCE NO. NS-29 BE ADOPTED AMENDING CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE BY 2% TO PAY FOR A QUALITY REGULATION MUNICIPAL GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES? 2 YES NO 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 1E 19 2c 21 22 22 24 25 26 27 RESOLUTION NO. 88-271 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE PROPOSED ORDINANCE PERTAINING TO AN INCREASE IN THE TRANSIENT OCCUPANCY TAX TO PAY FOR THE CONSTRUCTION OF A PUBLIC GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES. WHEREAS, a General Municipal Election is to be held in the City of Carlsbad, on November 8, 1988, at which there will be submitted to the qualified voters of said City, the following Proposition, to wit: showing the effect of the Ordinance on existing law and the operation of the Ord i nance ; NOW, THEREFORE, BE IT RESOLVED, DECLARED, DETERMINED AND ORDERED by the City Council of the City of Carlsbad as follows: SECTION 1. Pursuant to the provisions of Section 5011 of the Elections Code of the State of California, this City Council does direct the City Attorney to prepare an impartial analysis of the Ordinance. /// /// /// /// /// /I/ /// 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 SECTION 2. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 2nd day of August , 1988, by the following vote, to wit: The impartial analysis shall not exceed 500 words in length. AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ABSENT: None ATTEST : (SEAL) a SHALL ORDINANCE NO. NS-29 BE ADOPTED AMENDING CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE BY 2% TO PAY FOR A QUALITY REGULATION MUNICIPAL GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES? *. 1 YES NO 2 3 4 5 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 88-272 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING CERTAIN OF ITS MEMBERS TO FILE A WRITTEN ARGUMENT REGARDING A CITY MEASURE WHEREAS, a General Municipal Election is to be held in the City of Carlsbad, California, on November 8, 1988, at which there will be submitted to the voters the following measure: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Carl sbad, Cal i forni a, does decl are, determi ne and order as fol 1 ows : SECTION 1. That the above recitations are true and correct. SECTION 2. That the City Council authorizes Claude Lewis Ann Kulchin Mark Pettine John Mamaux Eric Larson to file a written argument regarding the City measure set forth in the recitals hereof in accordance with Article 4, Chapter 3, Division 5 of the Elections Code of the State of California, and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against said City measure may be submitted to the City Clerk. /// ’. *. i 5 4 5 1c 11 12 13 14 15 16 17 le 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 2nd day of August , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ABSENT: None d21HkfL UDE A. LE S, ayor ATTEST : ALETHA L. RAUTENKRANZ, City Clerk (SEAL) .. 1 2 8 9 10 11 12 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. NS-29 AN ORDIN 3E OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDINGTITLE 3, CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF SECTION 3.12.035 TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE BY 2% TO PAY FOR A QUALITY REGULATION MUNICIPAL GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES. The City Council of the City of Carlsbad, California L3es ordain as follows: SECTION I: That Title 3, Chapter 3.12 of the Carlsbad Municipal Code is amended by the addition of Section 3.12.035 tc read as follows: "3.12.035 ImDosition of additional amount -- where Dayable - - Dumoses. (a) In addition to the tax imposed by Section 3.12.030 fox the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of two percent of the rent charged by the operator. The tax imposed by this section shall be levied in two steps of one percent on July 1, 1989 and one percent j on January 1, 1990. Such tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon thE transient's ceasing to occupy space in the hotel. If for any reasor the tax due is not paid to the operator of the hotel, the tar administrator may require that such tax shall be paid directly tc the tax administrator. The proceeds of this tax shall be limited to the uses specified in this section in the following priority: 1. An amount as determined necessary by the Cit] Council to pay for the design and construction of a qualit] regulation 18 hole municipal public golf course and relatec facilities in the City of Carlsbad and for the construction of 2 complex of public tennis courts and related facilities in the Cit] of Carlsbad. 2. An amount as determined necessary by the Cit] Council to pay for the design and construction of an additional short golf course, or additional tennis courts or ball fields 01 other recreational facilities in the City of Carlsbad in accordancc with the City's Parks and Recreation program. 3. If the City Council determines it necessary tc finance the facilities described in subsections (1) and (2) with one (b) -. 1 2 3 a .- or more bond issues the proceeds may be committed to service such bonds. Any proceeds from this tax in excess of the amounts necessary to satisfy the requirements of subsections (1) , (2) and (3) shall be deposited in the general fund." 4. SECTION 2: The City Council may amend this ordinance from time to time to add exceptions, or adjust the rate, or application of tax, or make such other changes as they determine to be necessary provided the rate of tax to be imposed by this ordinance shall not be increased and the commitment of funds made in accordance with Section 3.12.035(b) shall not be decreased. SECTION 3: In accordance with Section 4013 of the Elections Code of the State of California, this ordinance shall be considered as adopted upon the date that the vote is declared by the City Council and shall go into effect ten days after that date. SECTION 4: This ordinance imposes a special tax and therefore requires the approval of two thirds of the voters voting thereon in the election. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 2nd day of August , iga8, and thereafter 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 9th day of August I the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine and Mamaux NOES: None ABSENT: Council Member Larson APPROVED AS TO FORM AND LEGALITY ATTEST: Q.&& d.Q& ALETHA L. RAUTENKRANZ, Cjty Clerk 1988 I by 6 "3.12.035 ImDosition of additional amount -- where pavable -- D urDoses. Section 3.12.030 for the privilege of occupancy in any hotel, ea( transient is subject to and shall pay a tax in the amount of two percent of the rent charged by the operator. Such tax constitute a debt owed by the transient to the City which is extinguished only by payment to the operator or to the city. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. due is not paid to the operator of the hotel, the tax administrator may require that such tax shall be paid directly to the tax administrator. uses specified in this section in the following priority: appropriation beginning on July 1, 1989 to the Carlsbad Convention and Visitors Bureau of two hundred thousand dollars tc be used for the promotion of tourism in the City of Carlsbad. If the Bureau ceases to exist or is otherwise unable to use the mone for such purposes it shall be deposited in the general fund. An amount up to the next nine hundred thousand dollars per year shall be used by the City Council for the construction of an 18 hole championship public golf course and related facilities in the City of Carlsbad and for the construction of one or more complexes of public tennis courts and related facilities in the City of Carlsbad. used by the City Council for the construction, reconstruction, (a) In addition to the tax imposed by If the rent is paid in installments, a If for any reason the tax (b) The proceeds of this tax shall be limited to the 1. The City Council shall make an annual 2. 3. The next two hundred thousand dollars may be 7 8 9 10 11 12 n k 0 1E 1G 2c 21 2: 22 24 2f 2t 2: 2t ORDINANCE NO. NS-10 AN RDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 3, CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF SECTION 3.12.035 TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE BY 2% TO PAY FOR "E PROMOTION OF TOURISM IN THE CITY AND FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED FACILITIES, The City Council of the City of Carlsbad, California does ordain as follows: SECTION I: That Title 3, Chapter 3.12 of the Carlsbad Municipal Code is amended by the addition of Section 3.12.035 to read as follows: 1 2 3 8 9 10 11 12 t: 0 18 19 20 21 22 23 24 25 26 27 28 -7 -3 maintenance or repair of the facilities described in subsection (2) or for the construction of an executive golf course and related facilities in the city of Carlsbad. 4. Any proceeds from this tax in excess of the amounts necessary to satisfy the requirements of subsections (l), (2) and (3) or otherwise unexpended when this tax terminates shall be deposited in the general fund. (c) The tax imposed by subsection (a) shall be paid for a period beginning on July 1, 1989 and ending twenty years after the date the City sells the bonds necessary to fund the facilities described in Section (b) (2) .Ig SECTION 2: The City Council may amend this ordinance from time to time to add exceptions, or adjust the rate, or application of tax, or make such other changes as they determine to be necessary provided the rate of tax to be imposed by this ordinance shall not be increased and the allocation of funds for the promotion of tourism in the City or for the construction of the golf course or tennis courts shall not be decreased. SECTION 3: In accordance with Section 4013 of the Elections Code of the State of California, this ordinance shall be considered as adopted upon the date that the vote is declared by the City Council and shall go into effect ten days after that date. SECTION 4: This ordinance imposes a special tax and therefore requires the approval of two thirds of the voters voting thereon in the election. It will be presented to the voters at the same time as another ordinance requiring a majority vote which would raise the transient occupanoy tax rate from 6% to 8%. If both ordinances are adopted the effect of this ordinance will be to increase the transient occupancy tax rate from 8% to 10%. If this ordinance passes and the other does not this ordinance would increase said rate from 6% to 8%. r- 1 2 3 4 5 6 7 8 9 10 11 12 D 5 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 10th day of March I 1988, and thereafter PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 22nd day of March I 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Mamaux and Larson NOES: Council Member Pettine ABSENT: None APPROVED AS TO FORM AND LEGALITY ATTEST: ALE$HA UBBd TE- Z, City Clerk aEN R. KUNDTZ, Deputy City Clerk (SEAL) 3. Appendix 4 MINUTES August 2, 1988 Page 5 DEPARTMENTAL AND CITY MANAGER REPORTS: (Continued) Mr. Cahill stated this project would go to bid this year, and would require a Coastal permit. That permit would require no winter season grading, and if that could not be waived, it would probably be April of 1989 before construction could be started. In response to Council Member Larson's query regarding traffic, Mr. Cahill explained there would be a right turn in and out to the visitation area to enhance the safety of ingress and egress. Ron Wootton, 5451 Avenida Encinas, President of the Buena Vista Lagoon Foundation, stated this project would be the shortest construction period for the longest anticipation period in mny years. Vr. Wootton thanked Council and staff for their work lr arrLving at the three-party agreement which included the State of California. Council adopted the following Resolution: RESOLUTION NO. 88-269, APPROVING A CONSULTANT AGREEMEN1 WITH KELTNER AND ASSOCIATES FOR THE DESIGN OF THE WEN! VISTA LAGOON VISITATION AREA AND IMPROVEMENTS TO JEFFERSON STREET. 18. AB 89567 - TRANSIENT OCCUPANCY TAX INCREASE - SPECIAL TAX FOR GOLF COURSE AND TENNIS FACILITIES. Dan Hammer, 4015 Isle Drive, stated he thought this wa: an idea whose time had come, as a golf course was something everyone could support. would take a lot of effort, but thought everyone shoulc get behind this project and support it. Council adopted the following Resolutions, introduced the followina Ordinance and repealed Ordinance No. NS- IO: (one mtion) He indicated it RESOLUTION NO. 88-270, AMENDING RESOLUTION NOS. 88-225 AND 88-226 CALLING AND GIVING NOTICE OF THE HOLDING OF THE GENERAL MUNICIPAL ELECTION TO BE HELD IN THE CITY ON TUESDAY, NOVEMBER A, 1988, TO INCLUDE THE SUBMISSIOE TO THE QUALIFIED ELECTORS AN ORDINANCE RELATING TO INCREASING THE TRANSIENT OCCUPANCY TAX BY AN ADDITIONAL 2% TO FINANCE THE CONSTRUCTION OF A PUBLIC GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES IN THE CITY. RESOLUTION NO. 88-271, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE PROPOSED ORDINANCE PERTAINING TO AN INCREASE IN THE TRANSIENT OCCUPANCY TAX TO PAY FOR THE CONSTRUCTION OF A PUBLIC GOLF COURSE, TENNIS COURTS AND OTHER RECREATIONAL FACILITIES. RESOLUTION NO. 88-272, AUTHORIZING CERTAIN OF ITS MEMBERS TO FILE A WITTEN ARGUMENT REGARDING A CITY MEASURE. Council determined all Council Members' name: would be inserted in the Resolution. COUNCIL MEMBERS Lewis Kulchi n Pettine Mamaux Larson Lewis Kulchin Pet ti ne Mamaux Larson September 8, 1989 Appendix 5 I \ I1 TO : CITY PLiNAGER FROM: Finance TIWKSIENT OCCUPAWCE' TAX REVE.'UE '\ PROJECTIONS The following chart has been assembled in response to a question froin a counciliiieiiiber. The City's projected TOT Tax Revenue €or 1988-89 is $3.1 uiilliou based on a tax rate of 8%. the short range forecast, before any consideration of new hotels or motels to the present in\.entory . TOT Revenue is projected to grow at 10% per yeax on Proposition D Revenues are projected based on 1% being iaiposed 011 July 1. 1989 and an additional 1% on Jaiiuar). 1, 1990. If you have any questions I alii available to iiieet with you or the Council at your convenience. TRANSIENT OCCUPANCY TAX PROJECTED REVENUES Tear - 1988-89 1989-90 1990-91 1991-92 1992-93 Additional Prop D Tax Revenue Increases Total Tas Revenue 2% Additional Tax Revenue (1% 7/1/83) TOT $ 6% 1985-89 8 8% ( 1% 1 / 1 I90 1 Revenue $2.345,000 5 781,000 $3,126,000 - $3,126,000 2,580,000 860,000 3,440,000 $ 645,000 4,085,000 2,837,000 945,000 3,782,000 945 I 000 4,727,000 3.121.000 i ,040,000 4,161,000 1,040,000 5,201,000 3,433.000 1,144,000 4,577 , 000 1,144,000 5,721,000 $c Projections are based on an annual growth rate of 10%. Appendix 6 CHAMBER OF COMMERCE July 8, 1988 Honorable Mayor Lewis and Council Members Kulchin, Larson, Mamaux and Pettine As Directors of the largest business organization in Carlsbad, we wish to offer our support for the second alternative as listed in the staff report of the Golf Course Sub-committee. We feel that funds generated by special taxes should be placed in the General Fund, therefore allowing the voters to evaluate expenditures based on total city revenues. We feel it is imperative that the city resolve its shortages in future years, with this increase in the General Fund. Because there are limited sources for new funds, it is likely that you will continue to look toward the business community to derive additional funds. Monies developed for the General Fund will allow expenditures which benefit the entire community, not a special interest group. After long discussion and pointed comments from the Hospitality Industry, we urge you to vote to support Alternative 2: General Occupancy Tax increase for General Funds, with a separate Proposition II vote for recreational facilities. S i n c e rHy, SENIOR VICE-PRESIDENT, ADMINISTRATIVE DIVISION CARLSBAD CHAMBER OF COMMERCE 541 1 Avenida Encinas, Suite 100 P.O. Box 1605 Carlsbad,California 92008 (619) 729-5924 Appendix 7 Y CITY ATTORNEY'S IMPARTIAL WALYSIS Proposition M proposition M asks the people of Carlsbad to adopt an ordinance adding Section 3.12.035 to the Carlsbad Municipal Code to increase the existing 8% transient occupancy tax rate by an additional 2% of the charge for the room. All other provisions of the transient occupancy tax would remain the same. This ordinance has been unanimously adopted by the City Council. Proposition 62, passed at the November 4, 1986 election, also requires adoption by a two- thirds vote of the voters voting in this election. The two-thirds requirement applies because the proceeds of the 2% increase must be used for the purposes specified in the ordinance which are: As the first priority, an amount as determined by the City Council, must be used for the construction of a quality regulation 18 hole municipal public golf course and for the construction of a complex of public tennis courts and related facilities in the City of Carlsbad. A second priority requires that an amount, as determined necessary by the City Council, be used for the construction of an additional short golf course or additional tennis courts or ball fields or other recreational facilities. Tax proceeds may be used to support bond financing for the facilities specified in the ordinance. Any proceeds remaining would go to the general fund. If this measure is approved the ordinance would be effective after the results of the vote are declared by the City Council. However, the levy of the increased tax will be phased with one percent to be collected beginning on July 1, 1989 and an additional one percent beginning on January 1, 1990. Appendix 8 \ ARGUMENT IN FAVOR OF PROPOSITION @) THIS MEASURE WILL NOT COST CARLSBAD RESIDENTS ANY MONEY If this measure passes, the City of Carlsbad is planning to construct the following needed public facilities for the citizens of Carlsbad. 0 0 e Quality Regulation Par 72 Golf Course 16 Tennis Courts/Club House Facility Other recreational amenities as determined by the City Council such as ballfields and park facilities If passed by a 2/3 majority vote, Proposition ( ) will incrementally increase the transient occupancy tax (TOT), a tax which visitors pay on rent charged by hotel/motel operators, by a total of 2%. One percent (1%) would be implemented beginning July 1989 and the other one (1Yo) would take effect January 1990. There are no public regulation size golf courses or large tennis facilities in Carlsbad. Most golf courses in San Diego County are private or semi-private, and are not open to the general public or they are operating at full capacity. Financing construction of the recreational amenities by use of TOT revenues will not be a tax burden to residents. Maintenance and operation costs will be offset by user fees. A ”Yes” vote will provide the ability to enhance the overall recreation opportunity in the City of Carlsbad. ANN J. KULCW, UA Mayor Pro Tern AUX, Council Merhber /l Appendix 9 ARNOLD PALMER JULY 5, 1988 Arnold Palmer, hero c "Arnie's Army", and everyman's idea of the perfect golfer, came to Carlsbad and talked to a Golbal Perspectives gathering about the need for public golf courses. "Almost 50% of the courses in America today are private courses" Palmer noted, "and with the cost of land increasing, more and more of the new courses will also be private - we will be pricing many players out of the game." In addition, Palmer stated that demand for golf courses is rising so fast that even if a golf course were opened every day it would not meet the demand. Other statistics he related included: There were 20.2 million golfers in America in 1986, 20% were women and 56% were under 40; by the year 2000, 27 million golfers will be spending $26.8 billion per year; of these golfers, approximately 69% are frequent golfers (play more than 20 rounds per year); there are presently 12,500 golf courses in America and they are growing at the rate of 100-150 new courses per year, however 70-80% of these are associated with real estate developments. Palmer also spoke about his golf course design firm and the work they are doing at the Pacific Rim project in Carlsbad. Presently, his firm is designing/building 54 golf courses around the world in such far-flung places as Mainland China; Bankok, Thailand; and Geneva, Switzerland. Of the Pacific Rim course, Palmer feels it will rival any of the excellent Sourthern California courses in playability and will also be in one of the most attractive settings in the state. The course will loop nine holes towards the ocean and then nine holes back again. Groundbreaking for the course is set for late summer, with completion set for approximately 1990. Highlighting some of their most recent projects, Palmer noted that they recently completed a public course in Atlanta, Georgia which will be self supporting and afford many people there a chance to play golf who otherwise couldn't afford the greens fees at priva 2 and semi-private courses. He also detailed a course being built in Japan which will be the world's most expensive golf course - it will cost $2.5 million to purchase a share of the corporation which will own the course, and annual dues are estimated at $66,000. In Mainland China, A Hong Kong businessman is building a golf course and donating it to the Chinese government. When asked by an attendee what qualities seperate a good course from a bad course, Palmer responded that his firm's main goal in designing a course is to make it playable for a child or for a national open. He feels a good course is always challenging to even the most advanced players. Palmer was also asked, if golfing technology is improving (Le., metalwoods, better balls), why aren't scores improving as well. Palmer noted that while the leaders are all averaging about 68 strokes per round, there are more contenders than there has ever been; approximately 120 as compared to the 20 players that were in contention in the 50's and 60's. He also noted that course design has improved and more work is done to make the courses difficult. The early tour days appear to hold a lot of fond memories for Palmer who recalled when, in his first year after qualifying for the PGA, he and his wife followed the tour around pulling a small trailer after his car, and some of the pros would sharpen their irons by dragging them alongside their car as they travelled down the highway. Although he had some great stories to tell, Palmer admitted that it isn't too bad when, after a grueling tournament, he steps into his private jet and pilots himself back to his native Pennsylvania for a couple days break before the next tournament. Palmer closed his talk by expressing his hope that Carlsbad wi!l suoport a public course, and also gave the group an insider's tip about the next "king of golf" - Curtis Strange is the one to watch. By Christopher Reynolds The City Council yesterday voted to spend almost $3 million in new hotel-motel room tax revenues on Mayor Maureen O’Connor’s 1989 So- viet arts festival. In a related vote, the council also agreed to use revenues from the tourist tax for $45 million in Balboa Park improvements. The council also resolved not to raise hotel-motel room taxes again for at least three years. Staff Writer ,* The 6-2 vote on the arts festival - . munity together,” said Councilman by far the most controversial issue of Bruce Henderson, who proposed the the day - sets aside $2.97 million. It idea. The $30,000 is to be doled out to came over the dissent of council “bona fide” groups by the city arts members Judy McCarty and Abbe commission. ’ Wolfsheimer, with Ed Struiksma ab- The mayor, now committed to raising about $2 million Privatelv to sent. ,. coverthe projected $6.02 million iost And it was accompanied by an of the festival, first opposed and then for an to measure. For the Soviet festival, she knowledge groups that have suffered argued long and hard. under the Soviet presence elsewhere ,,The city is coming of age,” she in the world. expected 5-3 to earmark $30Jooo accepted the alternative festival “I’m just trying to bring the com- See City on Page A-3 I I City: Funds OK’d for Soviet arts festival Continued from A-1 said. “Are we going to support our arts community . . . or are we going to say, ‘OK, it‘s too much trouble, it‘s too much controversy, let‘s just leave it alone?’ ’’ OConnor said that in the next few weeks she will announce a donation “in the hundreds of thousands of dol- lars” by “a major non-profit corpora- tion” outside California, She also said there are encouraging negotiations with a major airline. The festival is scheduled to last three weeks and feature exhibits of Faberge eggs and ancient icons, which together are expected to carry an overhead cost of more. than.$l.3 million. The festival is expected to open Oct. 21, 1989, with a production of “Boris Gudunov” featuring a Soviet conductor, chorus master and princi- pal singers;which is expected to cost between $800,000 and $1 million.” According to estimates‘ yesterday by festival coordinator Bruce Herr- ‘ing, the event will attract at least 150,000 people and bring $17.7 million or more into San Diego’s economy. Padres owner Joan Kroc, the sole - private donor to the festival so far, has given $1 million. OConnor, who envisions future international festi- vals every three years, has pledged to make ev.ents affordable for all San Diegans. “I think the popular support will be there,” said O’Connor. “What you’re seeing (from opponents) is a lot of people who aren’t interested in the arts . . . They’re interested in pro- pagating hate.” McCarty and Wolfsheimer, backed by about a dozen public speakers, ar- gued that the city had no business spending money to bring Soviet art and artists here. “How can I send my son to Balboa Park to see the people who killed 13‘2 million people in Afghanistan?” asked Dost M. Hayat, an Afghan now living in San Diego. “We’re ashamed of you,” charged community activist Debra Schettino,; who made an often-vituperative 10- minute presentation. I Said McCarty: “When I go out in my district, people say, ‘We don’t want a Soviet arts festival. It’ll bring more people.’ Right now, it looks like a majority of the people don’t want a 1 cosmopolitan city.” out to back the mayor’s plan, and O’Connor argued repeatedly that the festival is the bold stroke needed to transform San Diego into a world- class city. O’Connor, who has made many key decisions about the festival with only minimal advice from local arts lead- ers, has been accused of coercing support from arts groups that de- pend upon city funds - a charge that Wolfsheimer noted yesterday. O’Con- nor dismissed it as “ridiculous.” The vote that made the festival funding possible was the council’s 8-0 decision to raise the city hotel-motel . roombx from 8 cents to 9 cents on : the dollar as of June 1,1989. That move is expected to raise $4.1 1 million alone in new revenues in the ! But more than 40 speakers turned , i year ending June 30, 1990. It was backed by leaders pf the. San Diego Hotel-Motel Association, who, in re-, turn, were hoping to see the council approve a cap on room tax increases for the next five years. Instead, under a compromise proposed by Wolfsheimer, the council backed a three-year. cap.