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HomeMy WebLinkAbout2009-06-23; City Council; 19864; Approve CTBID reportCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 19,864 6-23-09 Admin. Services Approve the Annual Report of the Carlsbad Tourism Business Improvement District DEPT. HEAD^P^ CITY ATTY. xpg? CITYMGR. , . (V RECOMMENDED ACTION: Adopt Resolution 2009-152 approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2009-10. 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 May 19, 2009 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 $790,000 in revenue 2008-2009. The costs incurred by the district during this same period were approximately $1,105,000. The projected fund balance at the end of Fiscal Year 2008-09 is $74,000. For Fiscal Year 2009-10, the CTBID has estimated revenues of $785,000 and a budget of $848,000 with a projected fund balance of $11,900 at June 30, 2010. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409 cgerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER-SEE MINUTES D. D D D 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 2009-152 approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2009-10. EXHIBIT 1 Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2009-2010 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. 2009-10 Work Plan: During the 2008-09 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. Based on this study, Mindgruve advertising agency was hired to develop and implement a detailed marketing and branding plan. An aggressive Spring and Summer on-line marketing campaign is currently underway. The results of that campaign will determine the course future marketing campaigns. As part of the work done by RR&A, a new name, new executive director, new bylaws and a new Board of Directors were implemented for the Carlsbad Convention and Visitors Bureau. This organization, now doing business as VisitCarlsbad will be fully operational starting July 1, 2009. The CTBID budget for 2009-10 includes $722,895 in funding for this organization. The services provided will focus primarily on driving demand in the leisure market segment and secondarily the meetings market. Funding also includes managing the visitor center and publications. The visitcarlsbad website will be redesigned and used as the primary distribution channel for new business opportunities for CTBID properties. The CTBID 2009-10 budget also includes $72,000 funding for Reint Reinders in Associates. The services provided by RR&A will include managing the Mindguve marketing campaign, monitoring the execution of the action plan by VisitCarlsbad and mentoring the new VisitCarlsbad executive director. RR&A will report back to the CTBID board on a regular basis on the performance of both Mindgruve and VisitCarslbad over the next fiscal year to ensure their recommendations get implemented as planned. EXHIBIT A 2009-10 CTBID Budget Program Areas Description Carryover Fund Balance Revenues: CTBID Assessment $1 per room night Interest Earnings Total Estimated Revenues Expenditures: 2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID CCVB Payment To operate visitor center, market and promote Carlsbad SDNCVB Payment To provide group sales RR&A Contract Reint Reinders and Associates Consulting Staff support Staff support to the CTBID CTBID Grants Grant program established by CTBID Board Mindgruve contract Spring Marketing Campaign Mindgruve contract Endless Summer Marketing Campaign Contingency To be determined by the CTBID Board at a later date Total Expenses Ending Fund Balance Contingency for Revenue shortfall 2008-09 Budget $392,989 775,000 10.000 785,000 16,500 448,000 110,000 120,000 16.500 40,000 350,000 100,000 0 1.201,000 (S23.011) Current 2008-09 Actuals 688,719 10.205 698,924 13.191 374.000 100,833 99,400 18.158 16.539 264.333 55.833 0 942,287 Projected 2008-09 Actuals 392,989 775.000 12.107 787.107 16.500 374,000 110.000 120.000 18,200 16,539 350,000 100,000 0 1.105,239 74,857 Recommended 2009-10 Budget 74,857 775,000 10,000 785,000 16,500 722,895 0 72,000 16,500 20,000 0 0 0 847,895 11,962 * The Carlsbad Convention and Visitors Bureau is the corporate entity. The Bylaws have been changed during 2009 to an organization that now has seven Board members and the dba 'Visit Carlsbad". EXHIBIT 2 1 RESOLUTION NO. 2009-152 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 2009-10 5 , WHEREAS, the CTBID was formed in accordance with the California6 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 1° 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 for 12 the improvements and activities described in the report; and 13 WHEREAS, an Annual Report has been submitted to the City Council for 14 Fiscal Year 2009-10, and 15 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 18 and assessments as levied in the then current year without change, and that resolution 19 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 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 (2008-09) shall continue without change.6 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 2009-10. 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 23rd day of June 2009, by the following vote to wit: AYES: NOES: ABSENT: Council Members Lewis, Kulchin, Hall, Packard, Blackburn None None , Mayor ATTEST: LORRAWE MJA/OOD, CjfyClerk Karen R. Kundtz, Assistant City Clerk (SEAL) t o = v,,*,.^ -7