HomeMy WebLinkAbout2012-06-12; City Council; 20933; Approve Annual Report CTBIDCITY OF CARLSBAD - AGENDA BILL 8
AB# 20,933 APPROVE THE ANNUAL REPORT OF
THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT
DEPT. DIRECTOR 3Z^'
MTG. 6-12-12
APPROVE THE ANNUAL REPORT OF
THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT CITY ATTY.
DEPT. CM
APPROVE THE ANNUAL REPORT OF
THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT CITYMGR. lu—^
RECOMMENDED ACTION:
Adopt Resolution No. 2012-133 approving the annual report of the Carlsbad Tourisnn
Business Improvement District, and continuing the programs and assessments for Fiscal Year
2012-13.
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
23, 2012 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.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, chervl.aerhardt(S)carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
WITHDRAWN
AMENDED
CONTINUED TO DATE SPECIFIC •
CONTINUED TO DATE UNKNOWN •
RETURNED TO STAFF •
COUNCIL RECEIVED THE •
REPORT/PRESENTATION
OTHER - SEE MINUTES •
Page 2
FISCAL IMPACT:
The CTBID generated approximately $850,000 in revenue in Fiscal Year 2011-2012. The
costs incurred by the district during this same period were approximately $797,000. The
projected fund balance at the end of Fiscal Year 2011-12 is $123,000. For Fiscal Year
2012-13, the CTBID has estimated revenues of $900,000 and a budget of $885,500 with a
projected fund balance of $138,000 at June 30, 2013.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a
"project" within the meaning of CEQA in that it has no potential to cause either a direct
physical change in the environment, or a reasonably foreseeable indirect physical
change in the environment, and therefore does not require environmental review.
EXHIBITS:
1. CTBID Annual Report.
2. Resolution No. 2012-133 . approving the annual report of the Carlsbad Tourism
Business Improvement District, and continuing the programs and assessments for Fiscal
Year 2012-13.
9-
EXHIBIT 1
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2012-2013
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 Carisbad 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 Carisbad 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.
2012-13 Work Plan: Last fiscal year, the CTBID contracted with Carisbad
Convention and Visitors Bureau (dba VisitCarisbad) to provide tourism marketing
services for Carisbad. In addition, $19,000 in grants were awarded to fund
projects and events to increase the overnight stays in Carisbad hotels.
The CTBID 2012-13 budget includes $800,000 in funding for VisitCarisbad. The
services provided will focus primarily on driving demand in the leisure market and
secondarily in the meetings market. The majority of this will be done by on-line
marketing but they will continue to do some print advertising. They will also
contract with a public relations firm to work on branding Carisbad. Funding also
includes managing the visitor center and publications. The VisitCarisbad Board
will review the CTBID grant applicants and make the funding recommendations,
for which there is $50,000 allocated this year, to the CTBID Board.
Detail of the 2012-13 budget is shown on the following page.
3
2012-13 CTBID Budget
Program Areas Description
2010-11
Actuals
2011-12
Budget
Current
2011-12 Actuals
Projected
2011-12 Actuals
Recommended
2012-13 Budget
Carryover Fund Balance $65,353 $62,678 62,678 62,678 123,776
Revenues:
CTBID Assessment
Interest Earnings
Prior Year refunds
$1 per room night 791,301
761
780,000
0
717,905
404
-12,135
857,880
450
-12,135
900,000
0
Total Estimated Revenues 792,062 780,000 706,174 858,330 900,000
Expenditures:
2% Admin. Fee - City
CCVB Payment
Staff support
CTBID Grants
Contingency
2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID
To operate visitor center, market and promote
Carlsbad
Staff support to the CTBID
Grant program established by CTBID Board
To be determined by the CTBID Board at a later date
15,820
743,434
15,663
19,820
0
16,500
744,582
16,500
20,000
0
14,230
682,528
12,978
19,000
0
17,157
744,576
16,499
19,000
0
19,000
800,000
16,500
50,000
0
Total Expenses 794,737 797,582 728,736 797,232 885,500
Ending Fund Balance Contingency for Revenue shortfall $62,678 $45,096 $40,116 123,776 138,276
* 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. 2012-133
2 A RESOLUTION OF THE CITY OF CARLSBAD APPROVING THE
CARLSBAD TOURISM BUISINESS IMPROVEMENT DISTRICT (CTBID)
^ ANNUAL REPORT, AND CONTINUING THE CTBID PROGRAMS AND
4 ASSESSMENTS FOR FISCAL YEAR 2012-13
5
WHEREAS, the CTBID was formed in accordance with the California
6
y 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
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
the improvements and activities described in the report; and
WHEREAS, an Annual Report has been submitted to the City Council for
Fiscal Year 2011-12, and
11
12
13
14
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
21
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 Carisbad, California, as follows:
25 1. That the above recitations are true and correct.
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27
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WHEREAS, the City Council must adopt a new resolution each year in
1 2. That the Annual Report is approved as submitted by the Board of
^ Directors of the Carisbad Tourism Business Improvement District. (Report on file with
City Clerk)
3. That the program and assessments as levied in the current fiscal year
(2011-12) shall continue without change.
4. That this resolution constitutes the levy of an assessment of $1.00 per
8 room-night, as defined in the formation documents for the CTBID, for the Fiscal Year
9 2012-13.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carisbad on the 12*^ day of June 2012, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Kulchin, Blackburn, Douglas and Packard.
None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
E M. WOOD, City Cleri<
(SEAL)