HomeMy WebLinkAbout2009-06-23; City Council; 19864; Approve CTBID reportCITY OF CARLSBAD - AGENDA BILL
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MTG.
DEPT.
19,864
6-23-09
Admin.
Services
Approve the Annual Report of the
Carlsbad Tourism Business
Improvement District
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CITY ATTY. xpg?
CITYMGR. , .
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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.
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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.
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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)
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