HomeMy WebLinkAbout2010-06-22; City Council; 20269; Annual CTBID reportCITY OF CARLSBAD - AGENDA BILL
AB# 20,269
MTG. 6/22/10
DEPT.FIN
APPROVE THE ANNUAL REPORT OF
THE CARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
DEPT. DIRECTOR
CITY ATTORNEY
CITY MANAGER
RECOMMENDED ACTION:
Adopt Resolution No. 2010-151 approving the annual report of the Carlsbad Tourism
Business Improvement District, and continuing the programs and assessments for Fiscal Year
2010-11.
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
18, 2010 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 $775,000 in revenue during Fiscal Year 2009-2010. The
costs incurred by the district during this same period were approximately $948,000. The
DEPARTMENT CONTACT: Cheryl Gerhardt 760-602-2417 chervl.qerhardt(g)carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
Dn
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
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projected fund balance at the end of Fiscal Year 2009-10 is $62,000. For Fiscal Year 2010-11,
the CTBID has estimated revenues of $801,000 and a budget of $809,000 with a projected fund
balance of $53,000 at June 30, 2011.
ENVIRONMENTAL IMPACT:
The proposed approval of the annual report does not qualify as a "project" under the California
Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378 as it does not
result in a direct or reasonable foreseeable indirect physical change in the environment.
EXHIBITS:
1. CTBID Annual Report.
2. Resolution No. 2010-151 approving the annual report of the Carlsbad Tourism
Business Improvement District, and continuing the programs and assessments for Fiscal
Year 2010-11.
EXHIBIT 1
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2010-2011
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.
2010-11 Work Plan: Last fiscal year, the CTBID contracted with a newly formed
Carlsbad Convention and Visitors Bureau (CCVB) to provide tourism marketing
services for Carlsbad. The CCVB had a new name "VisitCarlsbad", a new
executive director, new bylaws and a new Board of Directors.
The CTBID budget for 2010-11 includes $756,582 in funding for VisitCarlsbad.
The services provided will focus primarily on driving demand in the leisure market
segment and secondarily the meetings market. The majority of this will be done
through on-line marketing but they will continue to do some print advertising.
Funding also includes managing the visitor center and publications as well as
developing visitor profile information. VisitCarlsbad will also continue to contract
with San Diego North Convention and Visitors Bureau for meetings market leads
and bookings. This year VisitCarlsbad Board will also review the CTBID Grant
applications and make funding recommendations to the CTBID Board.
Detail of the CTBID 2010-11 Budget is shown on the following page.
2010-11 CTBID Budget
2008-09
Program Areas Description Actuals
Carryover Fund Balance 392,989
Revenues:
CTBID Assessment $1 per room night 796,219
Interest Earnings 15,436
MiscRev 150,000
Total Estimated Revenues 961 ,655
Expenditures:
2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID 1 5,956
CCVB Payment To operate visitor center, market and promote
Carlsbad 374,000
SDNCVB Carlsbad Group Sales 110,000
RR&A Contract Reint Reinders and Associates Consulting 1 1 8,400
Staff support Staff support to the CTBID 20,237
CTBID Grants Grant program established by CTBID Board 16,539
Mindgruve contract Spring Marketing Campaign 314,832
Mindgruve contract Endless Summer Marketing Campaign 150,042
Contingency To be determined by the CTBID Board at a later date
Total Expenses 1 , 1 20,006
Ending Fund Balance Contingency for Revenue shortfall 234,638
2009-10
Budget
234,638
775,000
10,000
0
785,000
16,500
722,895
72,000
16,500
20,000
35,168
99,958
0
983,021
$36,617
Current Projected
2009-10 Actuals 2009-10 Actuals
234,638
676,238 775,000
-1,795 0
674,443 775,000
12,814 16,500
662,651 722,895
37,100 44,000
13,777 16,500
12,720 12,720
35,125 35,168
99,889 99,958
0 0
874,076 947,741
61,897
Adopted
2010-11 Budget
61,897
800,000
1,000
801,000
16,500
756,582
0
16,500
20,000
0
0
0
809,582
53,315
* The Carlsbad Convention and Visitors Bureau is the corporate entity. The Bylaws were changed during 2009 to an organization
that now has seven Board members and the dba "Visit Carlsbad".
5/26/2010 12:51
EXHIBIT 2
1 RESOLUTION NO. 201°-151
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 2010-11
5
WHEREAS, the CTBID was formed in accordance with the Californiao
j Government Code Parking and Business Improvement Area Law of 1989 (Sections
g 36500, et. Seq. of the Streets and Highways Code), and
9 WHEREAS, Section 36533 of the Code requires the CTBID Advisory
10 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 2010-11, 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
(2009-10) shall continue without change.
6
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 2010-11.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 22nd day of June, 2010, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, and Blackburn.
NOES: None.
ABSENT: Council Member Packard.
ATTEST:
LbRRAftlE M.'WOOD, City rflerk <->
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