HomeMy WebLinkAbout2007-06-19; 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
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
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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.
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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)
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3. That the program and assessments as levied in the current fiscal year
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(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.
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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: