HomeMy WebLinkAbout2013-06-11; City Council; 21255; Approve Annual Report Carlsbad Golf Lodging CGLBIDCITY OF CARLSBAD - AGENDA BILL
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DEPT.
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6-11-13
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APPROVE THE ANNUAL REPORT OF
THE CARLSBAD GOLF LODGING
BUSINESS IMPROVEMENT DISTRICT
DEPT. DIRECTOR cA\
CITYATTY. \J(r^
CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2013-135 approving the annual report of the Cartsbad Golf Lodging
Business Improvement District, and continuing the programs and assessments for Fiscal Year
2013-14.
ITEM EXPLANATION:
On November 27, 2012 the City Council adopted Ordinance No. CS-194 forming the Carlsbad
Golf Lodging Business Improvement Distnct (CGLBID) pursuant to the Parking and Business
Improvement Law of 1989. The ordinance authorized the levying of $2 per-night assessment of
each occupied room, of the properties within the City that have elected to be part of the district,
effective January 1, 2013. The CGLBID 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 descnbed in the report. This
report (Exhibit 1) was approved by the CGLBID 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
heanng is necessary.
The CGLBID Board is not recommending any changes to the programs and assessments of the
CGLBID, and no additional properties have elected to be part of the district in Fiscal Year 2013-
14. 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 CGLBID by adopting the attached resolution.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753. chervl.qerhardt@cartsbadca.qov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
WITHDRAWN
AMENDED
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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 CGLBID generated approximately $138,000 in revenue during Fiscal Year 2012-2013.
The costs incurred by the district during this same period were approximately $138,000.
The projected fund balance at the end of Fiscal Year 2012-13 is $100. For Fiscal Year
2013-14, the CGLBID has estimated revenues of $335,000 and a budget of $335,000 with a
projected fund balance of $100 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. CGLBID Annual Report.
2. Resolution No. 2013-135 . approving the annual report of the Carisbad Golf Lodging
Business Improvement District, and continuing the programs and assessments for Fiscal
Year 2013-14.
EXHIBIT 1
Carlsbad Golf Lodging Business Improvement District (CGLBID)
Annual Report
2013-2014
Method of Assessment: The CGLBID includes all hotel businesses in the City
of Carisbad that have elected to participate in the district. The assessment shall
be levied on all hotel businesses, that have elected to participate in the district,
within the City of Carisbad based upon a flat fee of $2.00 per occupied room per
night for all transient occupancies as defined in section 3.12.020(7) of the
Carisbad 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 $2.00 per occupied room per night in revenues for the
previous month.
Assessment Funding Purpose: The proceeds of the CGLBID assessment
shall be spent to promote golf-related tourism within the boundaries of the
CGLBID, as well as marketing related capital improvements such as golf-related
signage, golf related equipment and to pay for related administrative costs.
2013-14 Work Plan: The CGLBID was established in January 1, 2013. For the
initial period the district, Fiscal Year 2012-2013 (1/1/13-6/30/13), three hotel's
opted into the district. Those three hotels; the Sheraton Carisbad, the Park Hyatt
Aviara and the Grand Pacific Palisades Hotel, are expected to collect a total of
$138,000 in CGLBID Assessments. Each assessed business determines how to
spend the funds collected by their respective property provided the expenditures
are for an approved golf related expense. Reimbursement of these expenses
are made quarterly upon approval from the advisory board up to the amount
collected per property minus administrative fees. The administrative fees pay for
the collection of assessments and administration of the district. Monies not spent
by the end of the fiscal year will carry fonA/ard to the next fiscal year.
For Fiscal Year 2013-14, no additional hotels have elected to participate in the
district so the district will include the same three hotels as Fiscal Year 2012-13.
It is estimated that these three hotels will collect a total of $335,000 in CGLBID
assessments. Based on this revenue estimate, the budgeted amount for
reimbursement to the hotels is $321,000. This amount plus any carry fonA/ards
from the previous fiscal year will be available to the assessed hotels for
reimbursement. Administrative fees for Fiscal Year 2013-14 are budgeted at
$5,520, which is 4% of the revenues.
Detail of the 2013-14 budget is shown on the following page.
2013-14 CGLBID Budget
EXHIBIT A
Program Areas Description
2012-13
Budget
Actuals as of
4/30/2013
Projected
2012-13 Actuals
Recommended
2013-14 Budget
Carryover Fund Balance $0 0 0 100
Revenues:
CGLBID Assessment *
Interest Earnings
Total Estimated Revenues
$2 per room night 138,000 76,938
63
138,000
100
335,000
0
Revenues:
CGLBID Assessment *
Interest Earnings
Total Estimated Revenues 138,000 77,001 138,100 335,000
Expenditures:
2% Admin. Fee - City
Reimbursements
Staff support
Total Expenses
2% of CGLBID assessment revenue, for collection of
CGLBID assessment and accounting for CGLBID
Reimbursement to member hotels for golf related
expenditures
Staff support to the CTBID
2,760
132,480
2,760
1,539
0
1,660
2,760
132,480
2,760
6,700
321,600
6,700
Expenditures:
2% Admin. Fee - City
Reimbursements
Staff support
Total Expenses
2% of CGLBID assessment revenue, for collection of
CGLBID assessment and accounting for CGLBID
Reimbursement to member hotels for golf related
expenditures
Staff support to the CTBID
138,000 3,199 138,000 335,000
Ending Fund Balance Contingency for Revenue shortfall $0 $73,802 100 100
* Member hotels for FY2012-13 and FY 2013-14 include Sheraton Carlsbad, Park Hyatt Aviara and Grand Pacific Palisades Hotel.
EXHIBIT 2
1 I RESOLUTION NO. 2013-135
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA. APPROVING THE CARLSBAD GOLF LODGING
^ BUISINESS IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, AND
CONTINUING THE CGLBID PROGRAMS AND ASSESSMENTS FOR
FISCAL YEAR 2013-14
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^ WHEREAS, the CGLBID was formed in accordance with the California
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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 CGLBID 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
13 the improvements and activities described in the report; and
14 WHEREAS, an Annual Report has been submitted to the City Council for
15 Fiscal Year 2013-14, and
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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
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order to levy and assessment for that fiscal year; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carisbad, 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 Carlsbad Golf Lodging 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 $2.00 per
room-night, for the following hotels that have opted into the district, as defined in the
9 formation documents for the CGLBID, for the Fiscal Year 2013-14:
10 Sheraton Carisbad Resort and Spa
Grand Pacific Palisades Hotel
Park Hyatt Aviara 12
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 11^^ day of June , 2013, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn and Douglas.
None.
ABSENT: None.
ATTEST:
bJ?-^ -T C»