HomeMy WebLinkAbout2014-06-03; City Council; 21609; Annual Report Carlsbad Tourism Business Improvement DistrictCITY OF CARLSBAD - AGENDA BILL
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APPROVE THE ANNUAL REPORT OF
THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT
DEPT.DIRECTOR
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2014-106 approving the annual report of the Carlsbad Tourism
Business Improvement District, and continuing the programs and assessments for Fiscal Year
2014-15.
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
22, 2014 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 ofthe
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 ofthe CTBID by adopting the attached resolution.
D EPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753. chervl.qerhardt@carlsbadca.qov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED X
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WITHDRAWN •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 $950,000 in revenue 2013-2014. The costs incurred
by the district during this same period were approximately $880,000. The projected fund
balance at the end of Fiscal Year 2013-14 is $211,000. For Fiscal Year 2014-15, the CTBID
has estimated revenues of $960,000 and a budget of $993,000 with a projected fund
balance of $179,000 at June 30, 2015.
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. 2014-106 . approving the annual report of the Carlsbad Tourism
Business Improvement District, and continuing the programs and assessments for Fiscal
Year 2014-15.
EXHIBIT 1
Carlsbad Tourism and Business Improvement District (CTBID)
Annual Report
2014-2015
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) ofthe Carlsbad Municipal Code. The amount of assessment shall be
separately stated from the amount ofthe 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.
2014-15 Work Plan: Last fiscal year, the CTBID contracted with Carlsbad
Convention and Visitors Bureau (dba VisitCarlsbad) 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 Carlsbad hotels and $43,000 was
spent to cover half the cost of a Tourism Study.
The CTBID 2014-15 budget includes $755,520 in funding for VisitCarlsbad. 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 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 VisitCarlsbad 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. The budget includes a $150,000 contingency which will be
allocated by the CTBID Board upon the completion ofthe tourism study.
Detail ofthe 2014-15 budget is shown on the following page.
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EXHIBIT 2
1 RESOLUTION NO. 2014-106
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2 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 2014-15
WHEREAS, the CTBID was formed in accordance with the California
Government Code Parking and Business Improvement Area Law of 1989 (Sections
36500, et. Seq. ofthe Streets and Highways Code), and
WHEREAS, Section 36533 ofthe Code requires the CTBID Advisory Board
to present an annual report to the City Council's for their review and approval for each
j2 fiscal year for which assessments are to be levied and collected to pay the cost for the
13 improvements and activities described in the report; and
14 WHEREAS, an Annual Report has been submitted to the City Council for
15 Fiscal Year 2014-15, and
WHEREAS, Section 36535 (d) ofthe Streets and Highways Code ofthe
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
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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
2 Directors of the Carlsbad Tourism Business Improvement District. (Report on file with City
Clerk)
3. That the program and assessments as levied in the current fiscal year
(2013-14) shall continue without change.
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
2014-15.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 3'^'' day of June, 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Schumacher and Blackburn.
None.
ABSENT: None.
ATFEST:
BARBARA ENGLESON, CltK'erk