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Home My WebLink About2007-06-19; City Council; 19046; CTBID annual reportCITY OF CARLSBAD - AGENDA BILL DEPT. HEADN CITY ATTY. CITY MGR. AB# MTG. DEPT. 19,046 6-19-07 Admin. Services Approve the Annual Report of the Carlsbad Tourism Business Improvement District RECOMMENDED ACTION: Adopt Resolution 2007-147 approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for fiscal year 2007-08. ITEM EXPLANATION: On November 15, 2005 the City Council adopted Ordinance No. NS-778 forming the Carlsbad Tourism Business Improvement District (CTBID) pursuant to the Parking and Business Improvement Law of 1989. The ordinance authorized the levying of $1 per-night assessment of each occupied room within the City effective January 1, 2006. The CTBID 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 (Exhibit 1) was approved by the CTBID Board at their June 5, 2007 meeting. Section 36535 (d) of the Streets and Highways Code of the State of California, allows the City Council to "adopt a resolution confirming the report submitted by the advisory [board]", or to "adopt a resolution continuing the program and assessments as levied in the then current year without change, and that resolution shall constitute the levy of an assessment for the fiscal year referred to in the report." If the Council makes no changes to the report or programs, no public hearing is necessary. The CTBID Board is not recommending any changes to the programs and assessments of the CTBID. However, if the Council wishes to make changes to the report, programs or proposed assessments, a public hearing is necessary, and would be scheduled for next available Council meeting following the necessary notice period. Staff is recommending that the Council approve the annual report, and continue the existing programs and assessments of the CTBID by adopting the attached resolution., FISCAL IMPACT: The CTBID generated approximately $770,000 in revenue 2006-2007. The costs incurred by the district during this same period were approximately $633,000. The projected fund balance at the end of 2006-2007 is $200,000. For 2007-08 the CTBID has estimated revenues of $780,000 and a budget of $739,000 with a projected fund balance at 6/30/2008 of $240,000. ENVIRONMENTAL IMPACT: This action does not approve any projects that will have a physical adverse affect on the environment so it falls within the general rule under CEQA that this is not a project (CEQA Regulation 153789(b)). \ EXHIBITS: 1. CTBID Annual Report 2. Resolution 2007-147 approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for fiscal year 2007-08. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409 cqerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED H' Dn nn CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D Dn EXHIBIT 1 Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2007-2008 Method of Assessment: The CTBID includes all hotel businesses located within the CTBID boundaries. The assessment shall be levied on all hotel businesses, existing and future, within the City of Carlsbad based upon a flat fee of $1.00 per occupied room per night for all transient occupancies as defined in section 3.12.020(7) of the Carlsbad Municipal Code. The amount of assessment shall be separately stated from the amount of the rent and other taxes charged, and each transient shall receive a receipt for payment from the operator. The assessment will be remitted monthly, based on $1.00 per occupied room per night in revenues for the previous month. Assessment Funding Purpose: To administer marketing and visitor programs to promote the City of Carlsbad as a tourism visitor destination and to fund projects, programs, and activities, including appropriate administrative charges, that benefit hotels within the boundaries of the District. 2007-08 Work Plan: During the 2006-07 fiscal year the CTBID Board contracted with the Wright Group and Destination Analysts to perform a positioning study. The purpose of this study is to identify a positioning strategy for Carlsbad that would help increase tourism. This study will begin in June 2007 and it is anticipated that it will be completed by the end of 2007. The outcome of this study may assist in determining future projects, programs or activities for the CTBID. In June 2007, the Carlsbad Tourism Business Improvement District Board approved renewing agreements with Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors Bureau for tourism promotion services for the period July 1, 2007 through June 30, 2008. These agreements require that these agencies continue to provide the services they have provided in the past as detailed below: Carlsbad Convention and Visitors Bureau (CCVB): Manage and coordinate marketing programs that position Carlsbad as a year-round leisure visitor destination in Southern California. • Increase brand awareness • Operate Visitor Information Center in the Historic Santa Fe Train Depot seven days per week. • Initiate familiarization tours by inviting the media to Carlsbad. • Promote local community events. • Develop private funding sources for the purpose of supplementing funds. • Support a full-time marketing campaign. • Provide semi-annual reports of the activity and expenses of the CCVB to the City. 3 EXHIBIT 1 San Diego North Convention and Visitors Bureau (SDNCVB): Increase measurable visitor spending through the generation of group business leads from room night bookings and group events. Tactics include: • Phone solicitation/prospecting • Personal sales calls to targeted national and international businesses • Buyer site inspections • Meeting planner familiarization tours • Tour planner familiarization tours • Trade and travel show attendance • Direct mail campaigns • Product launches for wholesale and airline vacation companies • Email solicitation and promotions • Reservation center educationals • E-commerce development • Quarterly reports are to be provided with performance measures. 2007-08 CTBID Budget Program Areas Description Budget Estimated Fund Balance 7/01/07 2007-08 Estimated Revenues: CTBID Assessment Interest Earnings Total Estimated Revenues 2007-08 Expenditures: 2% Administrative Fee - City CCVB Payment SDNCVB Payment Staff support Contingency Total Expenses Projected Fund Balance 6/30/08 $1 per room night, projected 3600 hotel rooms at average 60% occupancy 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID $37,400 per month , to operate visitor center, market and promote Carlsbad Staff support to the CTBID To be determined by the CTBID Board $ 200,005 775,000 5,000 780,000 15,500 448,800 $9,167 per month, to provide group sales 110,000 15,000 150,000 739,300 $ 240,705 1 EXHIBIT 2 RESOLUTION NO. 2007-147 2 A RESOLUTION OF THE CITY OF CARLSBAD APPROVING THE CARLSBAD TOURISM BUISINESS IMPROVEMENT DISTRICT (CTBID) 3 ANNUAL REPORT, AND CONTINUING THE CTBID PROGRAMS AND 4 ASSESSMENTS FOR FISCAL YEAR 2007-08 5 6 WHEREAS, the CTBID was formed in accordance with the California 7 Government Code Parking and Business Improvement Area Law of 1989 (Sections 8 36500, et. Seq. of the Streets and Highways Code), and 9 WHEREAS, Section 36533 of the Code requires the CTBID Advisory Board to present an annual report to the City Council's for their review and approval for each fiscal year for which assessments are to be levied and collected to pay the cost 12 for the improvements and activities described in the report; and 13 WHEREAS, an Annual Report has been submitted to the City Council for 14 the 2007-08 fiscal year, and 16 WHEREAS, Section 36535 (d) of the Streets and Highways Code of the 17 State of California, allows the City Council to "...adopt a resolution continuing the program 1 x and assessments as levied in the then current year without change, and that resolution shall constitute the levy of an assessment for the fiscal year referred to in the report." 20 WHEREAS, the City Council must adopt a new resolution each year in 22 order to levy and assessment for that fiscal year; and 23 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 24 Carlsbad, California, as follows: 25 1. That the above recitations are true and correct. 26 27 28 2. That the Annual Report is approved as submitted by the Board of 2 Directors of the Carlsbad Tourism Business Improvement District. (Report on file with 3 City Clerk) 4 3. That the program and assessments as levied in the current fiscal year 5 (2006-07) shall continue without change6 7 4. That this resolution constitutes the levy of an assessment of $1.00 per g room-night, as defined in the formation documents for the CTBID, for the fiscal year 9 2007-2008. 10 /// 11 /// 12 /// 13 14 15 16 17 '" 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 241' 25 26 27 '" 28 '" -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 19th day of June, 2007, by the following vote to wit: AYES: Council Members Lewis, Hall and Packard NOES: None ABSENT: Council Members Kulchin and Nygaard CLAUDE A ATTEST: