HomeMy WebLinkAbout2013-06-11; City Council; 21254; Approve Annual Report Carlsbad Tourism CTBIDCITY OF CARLSBAD - AGENDA BILL 8
AB# 21.254 APPROVE THE ANNUAL REPORT OF
THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT
DEPT. DIRECTOR C^K
MTG. 6-11-13
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 CITY MGR. TSt^
RECOMMENDED ACTION:
Adopt Resolution No. 2013-134 approving the annual report of the Carlsbad Tourism
Business Improvennent District, and continuing the programs and assessments for Fiscal Year
2013-14.
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
15, 2013 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.qerhardt@carlsbadca.qov
FOR CITY CLERKS USE ONL Y.
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WITHDRAWN •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
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FISCAL IMPACT:
The CTBID generated approximately $900,000 in revenue 2012-2013. The costs incurred
by the district during this same period were approximately $884,000. The projected fund
balance at the end of Fiscal Year 2012-13 is $128,000. For Fiscal Year 2013-14, the CTBID
has estimated revenues of $925,000 and a budget of $936,500 with a projected fund
balance of $117,000 at June 30, 2014.
ENVIRONMENTAL IMPACT:
This action does not qualify as a project under the California Environment Quality Act
("CEQA") and will not have a physical adverse effect on the environment. (CEQA Regulation
15378(b)).
EXHIBITS:
1. CTBID Annual Report.
2. Resolution No. 2Q13-134 . approving the annual report of the Carlsbad Tourism
Business Improvement District, and continuing the programs and assessments for Fiscal
Year 2013-14.
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EXHIBIT 1
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2013-2014
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.
2013-14 Work Plan: Last fiscal year, the CTBID contracted with Cartsbad
Convention and Visitors Bureau (dba VisitCartsbad) to provide tourism marketing
services for Carlsbad. In addition, $50,000 In grants were awarded to fund
projects and events to increase the overnight stays in Cartsbad hotels.
The CTBID 2013-14 budget includes $750,000 in funding for VisitCartsbad. The
services provided will focus pnmarily on driving demand in the leisure market and
secondarily in the meetings market. The majority of this will be done by
interactive marketing. They will also contract with a public relations firm to work
on branding Carlsbad. Funding also includes managing the visitor center and
publications. The VisitCartsbad Board will review the CTBID grant applicants
and make the funding recommendations, for which there is $150,000 allocated
this year, to the CTBID Board.
Detail of the 2013-14 budget is shown on the following page.
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2013-14 CTBID Budget
Program Areas Description
2010-11
Actuals
2011-12
Actuals
2012-13
Budget
Actuals as of
1/31/2013
Projected
2012-13 Actuals
Recommended
2013-14 Budget
Carryover Fund Balance $65,353 $62,678 $113,074 113,074 113,074 128,724
Revenues:
CTBID Assessment
Interest Earnings
Prior Year refunds
$1 per room night 791,301
761
856,708
1,276
-12,135
900,000 545,764
142
900,000
150
0
925,000
0
Total Estimated Revenues 792,062 845,849 900,000 545,907 900,150 925,000
Expenditures:
2% Admin. Fee - City
CCVB Payment
2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID
To operate visitor center, market and promote
Carlsbad
15,820
743,434
17,124
744,576
19,000
800,000
10,915
466,669
18,000
800,000
18,500
750,000
Staff support
CTBID Grants
Staff support to the CTBID
Grant program established by CTBID Board
15,663
19,820
14,753
19,000
16,500
50,000
5,154
20,000
16,500
50,000
18,000
150,000
Contingency
Total Expenses
To be determined by the CTBID Board at a later date 0 0 0 0 0 0 Contingency
Total Expenses
To be determined by the CTBID Board at a later date
794,737 795,453 885,500 502,738 884,500 936,500
Ending Fund Balance Contingency for Revenue shortfall $62,678 $113,074 $127,574 $156,243 128,724 117,224
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EXHIBIT 2
RESOLUTION NO. 2013-134
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD
CALFIORNIA, APPROVING THE CARLSBAD TOURISM BUISINESS
IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, AND
CONTINUING THE CTBID PROGRAMS AND ASSESSMENTS FOR
FISCAL YEAR 2013-14
WHEREAS, the CTBID was formed in accordance with the California
Government Code Parking and Business Improvement Area Law of 1989 (Sections
36500, et. Seq. of the Streets and Highways Code), and
WHEREAS, Section 36533 of the Code requires the CTBID Advisory
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 descnbed in the report; and
WHEREAS, an Annual Report has been submitted to the City Council for
Fiscal Year 2013-14, and
WHEREAS, Section 36535 (d) of the Streets and Highways Code of the
State of California, allows the City Council 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."
WHEREAS, the City Council must adopt a new resolution each year in
order to levy and assessment for that fiscal year; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
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
^ Directors of the Cartsbad Tounsm Business Improvement District. (Report on file with
City Clerk)
3. That the program and assessments as levied in the current fiscal year
(2012-13) shall continue without change.
4. That this resolution constitutes the levy of an assessment of $1.00 per
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8 room-night, as defined in the formation documents for the CTBID, for the Fiscal Year
9 2013-14.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the if ^ day of June , 2013, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn and Douglas.
None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
(SEAL)
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