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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 D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES D D D D Page 2 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. 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 (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. 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 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 <-> (SEAL)U