HomeMy WebLinkAbout2011-06-28; City Council; 20604; REPORT CARLSBAD TOURISM IMPROVEMENT DISTRICTCITY OF CARLSBAD - AGENDA BILL
AB# 20,604
MTG. 6-28-11
DEPT. CITY MGR
APPROVE THE ANNUAL REPORT OF
THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT
DEPT. HEAD ^^
CITY ATTY. (S&*^
CITY MGR. [1^
RECOMMENDED ACTION:
Adopt Resolution No. 2011-151 approving the annual report of the Carlsbad Tourism Business
Improvement District, and continuing the programs and assessments for Fiscal Year 2011-12.
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, 2011 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 $780,000 in revenue 2010-2011. The costs incurred by the district
during this same period were approximately $ 796,000. The projected fund balance at the end of Fiscal
Year 2010-11 is $49,200. For Fiscal Year 2011-12, the CTBID has estimated revenues of $780,000 and
a budget of $797,500 with a projected fund balance of $31,600 at June 30, 2012.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2446 cheryl.gerhardt@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
nnn
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN O
RETURNED TO STAFF D
OTHER- SEE MINUTES D
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. 2011-151 , approving the annual report of the Carlsbad Tourism Business
Improvement District, and continuing the programs and assessments for Fiscal Year 2011-12.
EXHIBIT I
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2011-2012
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 fron;, 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 Puroesa: To administer marketing pnd 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
2011.12 Work Plan: Last fiscal year, the CTBID contracted with Carlsbad
Convention and Visitors Bureau (dba VisltCarisbad) to provide tourism marketing
services for Carlsbad.
The CTBID 2011-12 budget includes $744,582 in funding for ViartCarlabad. The
services provided will focus primarily on driving demand In the leisure market
segment and secondarily in the meetings market The majority of this will be
done through on-fine marketing but they will continue to do some print
advertising. Funding also includes managing the visitor center and publications
as weft as developing visitor profile information. The VjsifCarisbad Board will
also review tie CTBID grant applications and make funding recommendations to
the CTBID Board.
Detail of the 2011*12 budget is shown on the following page.
2011-12 CTBID Budget
2009-10
Program Areas Description Actuals
Carryover Fund Balance $234,638
Revenues:
CTBID Assessment $1 per room night 775,839
Interest Earnings -472
Total Estimated Revenues 775,367
Exoendilures:
2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID 15,484
CCVB Payment To operate visitor center, market and promote
Carlsbad 722,892
RR&A Contract Reint Reinders and Associates Consulting 42,100
Staff support Staff support to the CTBID 16,442
CTBID Grants Grant program established by CTBID Board 12,720
Mindgruve contract Spring Marketing Campaign 35,168
Mindgruve contract Endless Summer Marketing Campaign 99,846
Contingency To be determined by the CTBID Board at a later date 0
Total Expenses 944,652
Ending Fund Balance -Contingency for Revenue shortfall $65,353
2010-11
Budget
$65,353
800,000
1,000
801,000
16,500
746,582
0
16,500
20.000
0
0
0
799,582
$66,771
Current
2010-11 Actuals
65.353
583,732
98
583,830
11,646
564,790
0
11,614
14.000
0
0
0
602,050
$47,133,
Projected
2010-11 Actuals
65,353
780,000
98
780.098
16.500
743.432
0
16,500
19,820
0
0
0
796,252
_......,, ,49,199
Recommended
201W1 Budget
: 49,199
780,000
0
780,000
16.500
744,582
o
16,500
20,000
0
0
0
797,582
31.617
* 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. 2011-151
2 A RESOLUTION OF THE CITY OF CARLSBAD APPROVING THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID)
3 ANNUAL REPORT, AND CONTINUING THE CTBID PROGRAMS AND
4 ASSESSMENTS FOR FISCAL YEAR 2011-12
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WHEREAS, the CTBID was formed in accordance with the California6
j 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 Board to
10 present an annual report to the City Council for its review and approval for each fiscal
year for which assessments are to be levied and collected to pay the cost for the
12 improvements and activities described in the report; and
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WHEREAS, an Annual Report has been submitted to the City Council for Fiscal
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Year 2011-12; and
15
WHEREAS, Section 36535 (d) of the Streets and Highways Code of the State of16
17 California, allows the City Council to "...adopt a resolution continuing the program and
18 assessments as levied in the then current year without change, and that resolution shall
19 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
21 levy and assessment for that fiscal year; and
22 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
23 Carlsbad, California as follows:
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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)
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3. That the program and assessments as levied in the current fiscal year
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(201 0-1 1 ) shall continue without change.
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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 2011-12.
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1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
2 of the City of Carlsbad on the 28th day of June 2011, by the following vote to wit:
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AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
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5 NOES: None.
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7 ABSENT: None.
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(INE M. WOOD, City Clerk
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