HomeMy WebLinkAbout2002-09-10; City Council; 16884; Funding from Carlsbad Village Business AssociationAB# 16,884
MTG. 9-10-02
DEPT. CM
CITY OF CARLSBAD -AGENDA BILL
~~ ~
TITLE:
REQUEST FOR FUNDING FROM THE CARLSBAD
VILLAGE BUSINESS ASSOCIATION
DEPT. HD.
CITY ATTY. &!-
CITY MGR-
RECOMMENDED ACTION:
Receive presentation and consider action on the request for funding from the Carlsbad
Village Business Association.
ITEM EXPLANATION:
The City Council provides an opportunity for citizens and organizations to submit requests
during the City’s budget process for consideration. During the development of the 2002/03
City budget, the Carlsbad Village Business Association (CVBA), requested that the City
Council approve and authorize a grant for $25,000 to assist and enhance the CVBA in their
current efforts. Due to recent changes that have occurred at the CVBA, the City Council
requested that the CVBA provide additional information on their request to assist the
Council in their deliberations. Based upon this direction, City staff requested that the CVBA
provide the following information: Organizational Structure, Mission, Goals, Business
Objectives of the CVBA, Detail of the CVBA’s operating budget, detail of the CVBA’s
request for funding and an explanation of how the funds will be utilized, and an explanation
of the CVBA’s fund expenditure controls and detail on how the CVBA will report back to
Council on the expenditure of grant monies. This information is contained in the attached
report.
FISCAL IMPACT:
The fiscal impact to the City would be $25,000 to be allocated from the City Council
Contingency Account .
EXHIBITS :
1.
Carlsbad Village Business Association, dated July 23, 2002.
Report on Request for Funding submitted to the Carlsbad City Council from the
Cads bad Vi1 lag e Business Association
P. 0. Box 1460
Carlsbad, CA 9201 8-1 460
760.433.5598 Phone
760.757-01 88 Fax www.cvba.com
REQUEST FOR FUNDING
-submitted to-
CITY OF CARLSBAD CITY COUNCIL
-from-
CARLSBAD VILLAGE BUSINESS
ASSOCIATION
July 23, 2002
CVBA Request for Fundtng -1-
Carlsbad Village Business Association
Organization
The Carlsbad Village Business Association (CVBA) is chartered as a tax-exempt organization
under the provisions of the Internal Revenue Code 501(C) (6).
Voting membership is open to all holders of a business license fiom the City of Carlsbad having
a place of business or business interest in the area bounded by the Pacific Ocean in the west,
Interstate 5 on the east, Tamarack Avebue on the south and Buena Vista Lagoon on the north.
The governance of the CVBA is through an elected Board of Directors selected fiom the
membership, currently numbering thirteen, which is subject to its own Bylaws and the laws and
regulations governing non-profit corporations in the State of California. Meetings of the
membership are held weekly and the Board of Directors meets monthly. The CVBA is staffed
by a 50% FTE Executive Assistant and a list of the Directors is included in Appendix A.
The CVBA was founded 20 years ago for purposes of preserving and enhancing the character
and a business friendly environment in “the Village”--.Carlsbad’s historic and original town site.
An additional function that has evolved qver the years is an educational one of keeping the
membership advised of developments within the3ity that affect the Village and their businesses
as well as providing the merchants with a forum for expressing their views. In recognition of the
fact that the Village is predominantly small commercial, retail and service businesses, the CVBA
endeavors to coordinate issues and activities of concern to the area into a coherent and
meaningful approach that will be of benefit to all and to the Village.
Mission. Goals. and Obiectives of the CVBA
The Mission of the CVBA is:
To help improve the business atmosphere of the Village through cooperative
marketing and representation of business concerns to governmental bodies and
other organizations.
One overall goal of the CVBA is to define the Village’s business, commercial and civic role
within the greater City of Carlsbad and, given that role, to enhance the image and view of the
whole City of Carlsbad, which is inextricably tied to the Village, where the city’s roots are tied
to its history and its traditions.
In furtherance of completing such a goal the CVBA has identified several objectives to achieve
that will promote the Village’s and the city’s image. Some objectives are fund raising in nature
to allow the CVBA to complete its Village enhancement activities.
CVBA Request for Funding -2 -
3
Obiectives:
To promote the Village as a safe and fiiendly environment for business, shopping and leisure
activities.
To sponsor and fund direct advertising of the Carlsbad Village within Local and Regional
publications.
To maintain a CVBA website where information about the Village is available along with links
to other enterprises throughout the city that might be of interest.
To publish a monthly newsletter for all interested merchants and businesses providing
information about and informing each bf current issues that affect the Village.
To maintain contact with city leaders and city administration officials relative to issues and
concerns that are of importance to or may impact or negatively affect the Village’s environment.
To develop the CVBA infrastructure so that we can assist the city government in either
transitioning or planning for expanded redevelopment functions at the current housing charter in
2005.
To fund the CVBA through organizing, sponsoring or assisting special fund raising activities and
events as follows: -c
1.
2.
3.
4.
5.
6.
c
Antique Shows
Arts and Crafts Shows-Three each year
Weekly Farmer’s Market and Strawberry Festival
Seasonal Holiday Decorations and Events
New Light post Banners Program
Carlsbad Village Awareness Program (cultivation of NCTD Visitors Programs
Business Plan
The CVBA operates largely through the volunteer efforts of its board and members or through
contracts with administrative support from a .5 FTE Executive Assistant.
The sponsored special events are chaired by board members and are budgeted separately with the
CVBA fbnding the expenses fiom its general funds. These funds are reimbursed after the
completion of the project and any revenues over the expenditures inure to the CVBA general
fbnd.
The weekly Farmer’s Market is contracted through a vendor that specializes in these events. A
percentage of the revenues from the market is paid to the vendor.
These events fbnction as dual-purpose events in that they promote the Village by exposing it to
visitors and customers throughout the region as well as raise funds for CVBA activities.
CVBA Request for Funding -3-
Other Communitv Enhancement Activities
In keeping with its objective to enhance the Village atmosphere, the CVBA has undertaken the
project of “o~tfitting’~ the Village for the four Seasonal Events of Easter, Fourth of July,
Halloween and the Holiday Season embracing Thanksgiving and Christmas. This project takes
the form of encouraging businesses to focus on each of these occasions through special occasion
merchandising and marketing, sales, pricing and window displays. During the Thanksgiving-
Christmas Holiday Season, the CVBA decorates the Village Streets and cooperates with the
Carlsbad Rotary Club in the Christmas Tree Lighting held in the Village Square at the
Intersection of State and Grand Streets. In connection with this Season the CVBA sponsors a
“Window Decorating Contest” to recognize those businesses whose efforts greatly enhance the
Villages appearance and appeal during the Holiday Season.
These events have served to draw thousands of visitors throughout San Diego County and the
adjacent regions to the Village and greater City of Carlsbad. The CVBA has begun focusing on
the Carlsbad’s sea front location, a unique aspect that few other cities can claim, as the “Village-
by-the-Sea” (e.g. note the CVBA Logo), that offers retail shopping, an array of eateries, coffee
houses and specialty shops, all within walking distances of beautifbl beaches.
Together, these events are serving to provide an added stimulus for visitors and customers to
spend time in the Village generating increased retail sale that translates into increased sales tax
and TOT revenue for the City of Carlsbad.
Detail of CVBA’s Operating Budget
The 2002 CVBA Budget is contained in Attachment I along with a Summary Report of Income
and Expenditures for the current year (January 1 through July 16,2002).
*
c
Year-to-date revenues are generally congruent with the projected 2002 budget. The projected
revenue ($34,000 including Projected Special Events Income) will likely be realized with a slight
surplus. Expenditures on the major line items are, likewise, generally in alignment with budget
projections.
Not included in the projected 2002 budget were two restricted special purpose grants that CVBA
was informed will be received just prior to the last quarter of this year. The first of these is a
$5,000 grant for the Highway 101 Project Committee. Also, San Diego County has signaled
their intent to provide a $10,000 grant to the CVBA from Community Enhancement Funds.
Both these are for restricted purposes and accounted for separate and apart from the CVBA’s
general operating hnds and both will involve expenditures during the 2003 Calendar Year.
Detail of CVBA’s Request for Fund and Explanation of how the Funds Will be Expended
Rationale
As is the case with the Carlsbad Village itself, the CVBA is at a transitional crossroads and
presently engaged in planning how to better serve the Village and the greater City of Carlsbad.
Over the past 15 years as Carlsbad went through unprecedented growth and expansion it began
an inevitable migration of most of the larger retail outlets to sites outside the Village. The
Carlsbad Company Stores, renovation of Plaza El Camino Real Mall, the building of the
CVBA Request for Funding -4-
Encinitas Town Plaza, and the relocation of some of the main civic services from the Village
such as the Dove Library, closure of the Pines school and the impending move of City Hall has
affected the character of the Village in dramatic ways.
Within this process, however, the Village, as the struggle to redefine itself is in process, is in an
extremely vulnerable position. This poses what should be a recognizable danger to the Greater
City of Carlsbad should “the Village”, its core, become an undesirable “shell of its former self’
and present an image of a city that attracts only the wrong types of businesses catering to the
wrong kind of customers.
Without a doubt the City Council’s effort through the Village Redevelopment Program helped to
stem this trend and has served to “buy some time” during which those efforts must be continued
and expanded. However, the private sector doing business in the Village, which has never been
fblly engaged in this process, needs to’be engaged or the ultimate goal of a restored Village will
not be realized. There remain some very serious problems in retention of tenancy and
desirability of doing business in certain sectors of the Village.
This issue is not confined to the Village, but extends throughout the Northwest Sector,
Carlsbad’s original and therefore oldest section. There are several shopping centers throughout
this sector, including some in the Village, that aie badly in need of renovations to bring them up
to a standard that is compatible with the image of a safe, successhl community and desirable
place to do business.
It must be recognized that the business sector of this area is predominantly comprised of small
businesses. In the aggregate, however, small bustnesses comprise the “backbone” of the City,
and while Carlsbad has been blessed in recent years with attracting many large businesses and
corporations, these would not have come and could not remain had it not been for the existence
of the city’s vital “backbone”.
However, it is the consensus of the small business sector “backbone” that in the process of
accommodating these corporations, it was not recognized that the needs of small businesses
differs dramatically from those of the City’s large businesses and corporations. As a result it has
become increasingly difficult to attract desirable new businesses particularly into certain areas
such as the Barrio sector of the Village despite its wealth of history and culture. The CVBA
recognizes in order to be an effective “backbone” there must be redevelopment in all sectors.
The CVBA has hnctioned largely as a volunteer organization with its directors and some
members devoting extremely large blocks of time to the community enhancement hnctions and
special events described above. With the increasing demands in running businesses, it is
increasingly dificult to find individuals who can allocate the time that must go into special
events in order to assure their continued success and growth. In addition this drains the CVBA’s
capacity to engage as a more active participant in assisting in the development and retention of
businesses within the Village and planning with City Officials and staff for sustaining the Village
while growing with its natural beauty into a first class environment and experience for residents
and visitors alike.
Utilization of Funds
The CVBA’s Board of Directors has recognized these facts and determined that they must secure
more hnding in order to contract out and/or hire assistance to continue the community
CVBA Request for Fundmg -5-
b
enhancement and special events activities. These activities will remain under the direct control
and supervision of the CVBA, but many of the hnctions, which are now covered by volunteer
hours, will be contracted.
A planning committee has been appointed by Steve Oggel, President of the CVBA to work with
city staff toward planning for the Village and bringing a better understanding of the issues,
problems and potential solutions to the difficulties small businesses are having in keepsg their
doors opened. It was noted in the City’s tourism study that several recommendations centered on
the Village and were dependent on the private business sector in order to come to fruition. It is,
therefore, a timely moment for increasing dialog and coordination of such actions between the
City and the CVBA. Some individual members of the committee have already had some
productive meetings with staff fiom the City Manager’s Office and the City’s Redevelopment
Office.
A grant fiom the City will allow the CVBA to grow its infrastructure and its current community
enhancement and special events programs hrther while allowing us to take a more proactive role
with the city in maintaining and further developing Carlsbad’s image and status as one of
Southern California’s prime cities in all aspects.
t
A breakout of how hnds received fiom the city ’would be expended is contained in Attachment
11.
Fund Expenditure Controls and CVBA Reporting on Use of Funds
The CVBA’s Board of Director’s, in accordance ’with its Bylaws as well as state and federal
regulations governing non-profit organizations, carries the fiduciary responsibility for the
organization. The treasure is charged with maintaining budgets, authorizations for expenditures,
issuing checks and accounting for all receipts, deposits and withdrawals from CVBA accounts.
The board reviews all financial records and the current transactions monthly during its regular
board meeting. Those authorized to sign checks are limited to the executive committee and dual
signatures are required on checks in excess of $250. Some general supervision of CVBA
Accounting System is provided by a CPA who also files IRS Form 990 (See Attachment 111) on
behalf of the CVBA.
I
The CVBA would propose submitting progress notes to the City Council and/or designated city
staff on a quarterly basis and a comprehensive report on how expended hnds were used with
results attained on a yearly basis.
CVBA Request for Funding -6-
Attachment I
a) CVBA.2002 Budget
b) Summary Report of Income & Expenditures
CVBA Request for Funding -7-
CVBA Budgerfor 2002
(Approved on 1 /I 0/2002)
CVBA Account Balances : Cash on Hand Comments
Checking - #03501337
Petty Cash
Flex CD Savinas
5,154.68 12/31/2001 Actual
50.10 12/31/2001 Actual
7,833.96 12/31/2001 Actual
Preliminary
Projections for 2002
Draft 1/7/2002
“ . . - - - - -
Total Account Balances 13,038.74
Less:
Prepaid Rent Arts & Crafts Bazaar
Beginning Funds 2002 after Adjustments
(2,310.00)
10,728.74
Postage (360) $30/Mo. (2001 =$388)
Self Storage locker (540) $45/Mo. Actual
,’
Administrative &Z General Expenses
Miscellaneous
Subtotal
Projected Net Income e Salaries & Events
Less:
Administrative Sec.- Salary
(1,200)
(300)-
(1 1,260)
12,440
(12.000’1 $1000 Der month
IProjected Special Event Income
Subtotal
7
.. I I 440
I
,Antique Show (Spring - 373/2002 NET
Arts & Crafts Bazaar (Summer- 8/11/2002) NET
Antique Show (Fall - 10/6/2002) NET
4,q3 $6375 est 11/14/01 less 30% contingency
6,848 $8560 est.l2/10/01 less 20% contingency
4 463 $6375 est 11/14/01 less 30% continaencv
Open
Subtotal
~~~ ~
15,774
CVBA Budget for 2002
(Approved January IO, 2002)
L Projected Net Income for the year (2002)
Tom McMahon, Treasurer
16,214
Summary Report
1/1/02 Through 7/16/02
7/16/02
Category Description
INCOME
A a c 2002 Inc
Antique Spring 2002 InC Farmers MM Inc Int Inc Lic Plate Hold Meetings
Members Dues Newsletter Inc
TOTAL INCOME 'I
EXPENSES
U ncategorized
A 8 C 2002 Exp Accounting Exp Administrative Secretary ,
Advertising Antique Fall 2002 Exp Antique Fall 2003 Exp
Antique Spring 2002 Exp Bulk Mail
Dues Farmers MM Exp * c
Ins - Dir a Off tic PI Hld Exp Newsletter
Office Supplies Postage Storage Locker
Supplies
Tax Telephone TO Pamela L. Petty Cash
TOTAL EXPENSES
OVERALL TOTAL
1/1/02- 711 6/02
12,430.00 3,669.00
1 9,830.12
20.09 51 1.26 305.10
1,980.00
50.00
*.
0.00 2,689.22 400.00
5,500.00 640.00
200.00 231.19 4,228.02
562.81 175.00
11,847.04 1,553.00
384.18 453.14
705.72 237.01 269.70
155.37
123.00 357.46 200.00
Page 1
Attachment TI
Explanation of How Funds Will Be Used
CVBA Request for Funding -8-
-Bud pet-
The CVBA is requesting support from the City of Carlsbad in the amount of $25,000.
These funds will not supplant any that are currently being allocated to existing
purposes and programs, however they will be dedicated to enhancing and expanding
the reach and impact of some of the current activities now being completed by the
CVBA. The allocation of these funds would be to the three major categories.
1.0 Personnel Support $7,500
2.0 Special Events Enhancement and Development $7,500
3.0 Advertisement and Village Presentation $1 0,000
A grant from the City of Carlsbad would be utilized for the specified activities as
identified in the following Budget, Justification.
-Budpet Justification-
1.0 Personnel Support
1.1 Currently CVBA allocates $15,000 for personnel. This request for
$7,500 will be matched by an additional, $7,500 from CVBA general
funds for a total of $30,000 for personnel.
In keeping with refocusing the CVBD Directors and key members into
a more active role with City Staff and planners, the additional staff
will assume much,of the time now dedicated to special events by the
Board.
Additional staffing hours will provide administrative support for the
Board in unifying and representing the various business sectors
within the Village. Focus will be on developing a greater degree of
cohesion and vision for the Village, involvement and investment with
the City Officials and Staff and in the planning processes that involve
the Village Business sector.
1.2
-
1.3
2.2
2.3
2.4
2.0 Special Events Enhancement and Development
2.1 Focus will be on “seed money” and securing professionals under
contracts to take CVBA special events to the “next level” as premier
activities that expose the Village and Greater Carlsbad to populations
from larger regional and national areas.
Focus will be on establishing the Village’s “niche” identity within the
Greater City of Carlsbad while planning and defining its “niche
markets” among the various business interests and sectors that
constitute the Village’s business community.
Focus will be on expanding on the Wednesday Farmer’s Market into
an evening venue with an accompanying “Evening of Dining and
Shopping in Carlsbad--Village by the Sea”.
To grow the very successful arts and crafts shows into three events
per year.
+
CVBA Request for Funding -9-
3.4
3.5
3.6
* 3.7
3.8
3.0 Advertisement and Village Presentation
3.1
3.2
CVBA will assume an increasing responsibility in establishing the
“Carlsbad-Village by the Sea” theme.
Regular advertisements in regional media will be provided and timed
to coincide with the special events that occur both within the Village
and within other areas throughout the City of Carlsbad.
CVBA will budget additional funds for decorating the Village.
Particular focus will be on the Thanksgivinglchristmas Holiday
Season with sponsored special events and entertainment during this
time to enhance the Village’s Holiday atmosphere and desirability as a
place to shop. Businesses will be encouraged to decorate their stores
in accordance with the season and the villages theme and to market
specials that will attract shoppers.
Businesses will ’be encouraged to cooperate in establishing
coordinated and some evening hours to assure availability for
shoppers who are attracted to the area by its “Village by the Sea’’
theme.
Contingent on availability of a budget the CVBA will sponsor a
professional video presentation featuring the “Carlsbad--Village by
the Sea” theme for distribution to regional and national areas.
Web Site Enhancement.
Highway 101 Regional Conference Participation
Augmentation of a Village Banner Program
3.3
CVBA Request for Funding - 10-
Attachment I11
U
c
IRS Form 990
CVBA Request for Funding - 11 -
Short Form Return of Organization Exempt from Income Tax
Under Suction 5Ol(c), 527. or 4947(lixl) of the lntlmd Revenue Code (except black lung benefit trust or prlv.k foundlition] For organizattons with gross receipts krr than $laO,oaO and total assets less than $250,000 at the end of the year.
c The orpanuatton may Mu? lo use a copy of this return to satrsl). $?ate reportino requrrements.
Form 9900EZ
u Deuulmonl d r* Tte.url I~WIWR.WW sunu
A For tho 2wn ulandrr yew, or tu year beginning
B cndrrrpplublr.r IC
,2001, end ending ,zQ
os WD. \w.1150
2001
0p.cltoPUbJlc lnrprctlm
Carlsbad Village Business Association
Carlrbad, CA 92018
comrhta return.
............................
..................... 58 Gross amount from rate of assets othbr Wan inventory., ..................
b Leu: cost or oWr basis and sales axpenses.. ...........................
of contributions
reported on line 1). .....................................................
b Less: direct expenses other than fundraising expenses.. ..................
c Net income or (loss) from special events and activihes (line 6a less line 6b).
s, postage, and shippiw ......................................................... * See Statement 1
23 Land and buildings.. ..............................................................
26 TOW Ilmbililrs (describe
btkma knndrcportd to th, LRSl II Ys,' aWh a fanSMmrQ d hchngr,. .............
L
JIa Enter amount of political rxpodituros, direct or indirect, as described in tho irnlrwtionr ......
b M Um wgmiulion fib Form 112WOL for this year?. .........................................
SI sol(c)mcwgcniulions . Entor: 8 lnilition faas and capital contributions included on Jino 9. ......
b Gross ramiptr. inclW en line 9, for public weof club facilities. ..............................
408 sl(C)fl) Or--. Entor: knount of tu inyosod on Vn 0rg;miZation durinp Vlr flu undor:
N/A ; Section 4912 * Saclion4911
during tha par or 4-a mare of M excess bons)lt transactan tromr priarysvl If vm8'&achm 8xpIrrutton.. .......................................................................
N/A ; Section 4955 *
Did thr organization enga e in any Section 4958 excess knsfil Urn b 501(c)(l) and (4) 01 ' .
c knwrtd trximpcwP on orwnzabm mups or eirpurlirid paxons during ttm yur wrdrm, 49% nd4W.. .................. dEnb: Amowl of c 0. on li a, rbo~, rrimbursed by the organization., ....................................
u
zoo1 Federal Statements Page
Carlsbad Village Businass Association 33-aa2l
Statement 1 Form 99O-EZ, Part I, Line 16 Other Expenses
Advertisin ........................................................................................ I 4,761. Arts & Cra ts Faire Expenses ................................................................ 4,344. 2,311. Farmers Market Expenses ...................................................................... Insurance.. ......................................................................................... 1,386. License Plate Holder Exp ..................................................................... 317. fli sc.. ................................................................................................. 2. News I e t t e r Expense. ............................................................................. 1,175. Office Expenses ...................... .c.. ......................................................... 3,019.
Total 5 18,35A.
P;
Telephone.. ............................... .'. ......................................................... 438.
Statement 2
Orgmiution's Primary Exempt Purpose
Improve the economic conditlon of the business community within the geographic area known as the Carlsbad Village.
FOm SO-=, P8rt 111
*
<
Statemont 3 Form 99O-R, Part 111, Line 28 Statement of Program Service Accomplishments
Grants Program Service DescrlDW Allocations- and ..
Im rovement of the economic condition of the Carlsbad
and by brin ing people to Carlsbad for festivals, and the Vi f \age business community through promotion, advertising,
farmers mar 1 et. 26,173.
3 0. s 26, lfr
Statement 4 Form 990-U, Part IV List of Officers, Directors, Trustees, and Key Employees
Title and Cont r i - Expense Compen- bution to Account/ 5s Per Week De voted. sw LRLuL-
Tom McMahon Treasurer I 0. $ 0. s 0.
4028 Park Or. 30 Carlsbad, CA 92008
Average Hours
2001 Federal Statements
Carlsbad Village Business Association
Page ;
33-Mc;Fm'
Statement 4 (continued)
List of Officers, Directors, Trustees, and Key Employees Form 99O-EZ, PII4 1V
Contri - Expense Compen- bution to Account/ Title and Average Hours -
Jan Jones Secretary L 0. s 0. 0 0.
Name and_Address sation JRLuL-
2608 State St. 10 Carlsbad, CA 92008
Io. Total 3 -0,
Statement 5 Form 990-U, Part V Regarding Transfers Associated with Personal Benefit Contracts
(a) Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? ........................... No (b) 'Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ................................................... No