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Home My WebLink About2008-06-24; City Council; 19484; Approve Annual Report of Carlsbad Tourism Business Improvement DistrictCITY OF CARLSBAD - AGENDA BILL AB# 19,484 MTG. 6-24-08 DEPT. Admin. Services Approve the Annual Report of the Carlsbad Tourism Business Improvement District DEPT. HEAD ^ CITY ATTY. d^ CITY MGR. (Lfi-^ RECOMMENDED ACTION: Adopt Resolution 2008-177 approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for fiscal year 2008-09. 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 its May 7, 2008 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 the 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 $790,000 in revenue 2007-2008. The costs incurred by the district during this same period were approximately $727,000. The projected fund balance at the end of 2007-2008 is $325,000. For 2008-09 the CTBID has estimated revenues of $785,000 and a budget of $881,000 with a projected fund balance at 6/30/2009 of $229,000. 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 2008-177 approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for fiscal year 2008-09. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409 cgerh(o)ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES D D D D EXHIBIT 1 Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2008-2009 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. 2008-09 Work Plan: During the 2007-08 fiscal year the CTBID Board contracted with Reint Reinders and Associates (RR&A) to conduct a study on how Carlsbad tourism sales, marketing and visitors services should be conducted going forward. This study began in April 2008 and it is anticipated that it will be completed by July 2008. The outcome of this study may assist in determining future projects, programs or activities for the CTBID. In May 2008, 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, 2008 through June 30, 2009. If there are changes to be made in the future based on recommendations from the RR&A study, this will allow time for transition and implementation. 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. 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 fro wholesale and airline vacation companies • Email solicitation and promotions • Reservation center educationals • E-commerce development • Quarterly reports are to be provided with performance measures. 2008-09 CTBID Budget Program Areas Description 2008-09 Budget Carryover Fund Balance Revenues: CTBID Assessment Projected at same level as 2007-08 Interest Earnings Total Estimated Revenues Expenditures: 2% Admin. Fee - City CCVB Payment SDNCVB Payment Staff support CTBID Grants Contingency Total Budgeted Expenses 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID $37,400/month, to operate visitor center, market and promote Carlsbad $9,167/month, to provide group sales Staff support to the CTBID Program approved by Board at 3/18 meeting To be determined by the CTBID Board at a later date 324,982 775,000 10,000 785,000 16,500 448,000 110,000 16,500 40,000 250,000 Ending Fund Balance Contingency for Revenue shortfall 881,000 228,982 1 2 3 4 ASSESSMENTS FOR FISCAL YEAR 2008-09 5 WHEREAS, the CTBID was formed in accordance with the California6 7 8 9 Board to present an annual report to the City Council for its review and approval for 11 16 18 19 21 22 23 24 EXHIBIT 2 RESOLUTION NO.2008-177 A RESOLUTION OF THE CITY OF CARLSBAD APPROVING THE CARLSBAD TOURISM BUISINESS IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, AND CONTINUING THE CTBID PROGRAMS AND Government Code Parking and Business Improvement Area Law of 1989 (Sections 36500, et. Seq. of the Streets and Highways Code), and WHEREAS, Section 36533 of the Code requires the CTBID Advisory 10 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 2008-09 fiscal year, and 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 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 order to levy and assessment for that fiscal year; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 25 1. That the above recitations are true and correct. 26 27 28 O 1 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 (2007-08) shall continue without change 6 7 4. That this resolution constitutes the levy of an assessment of $1.00 per room-night, as defined in the formation documents for the CTBID, for the fiscal year 9 2008-2009. 10 /// 11 /// 12 /// 13 14 15 16 17 '" 18 19 /// 20 /// 21 /// 22 /// 23 /// 24 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 24th day of June, 2008, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard. NOES: None. ABSENT: None. ATTEST: LORRAINE M. WOCC),' City Clerk /S / U