HomeMy WebLinkAbout2014-06-03; City Council; 21610; Approve Annual Report Carlsbad Golf Lodging Business Improvement DistrictCITY OF CARLSBAD - AGENDA BILL
AB# 21,610 APPROVE THE ANNUAL REPORT OF
THE CARLSBAD GOLF LODGING
BUSINESS IMPROVEMENT DISTRICT
DEPT.DIRECTOR 0[jh\
MTG. 6-3-14
APPROVE THE ANNUAL REPORT OF
THE CARLSBAD GOLF LODGING
BUSINESS IMPROVEMENT DISTRICT CITY ATTY. /7K
DEPT. CM
APPROVE THE ANNUAL REPORT OF
THE CARLSBAD GOLF LODGING
BUSINESS IMPROVEMENT DISTRICT CITY MGR. 14)
RECOMMENDED ACTION:
Adopt Resolution No. 2014-107 approving the annual report ofthe Carlsbad Golf Lodging
Business Improvement District, and continuing the programs and assessments for Fiscal Year
2014-15.
ITEM EXPLANATION:
On November 27, 2012 the City Council adopted Ordinance No. CS-194 forming the Carlsbad
Golf Lodging Business Improvement District (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, ofthe properties within the City that have elected to be part ofthe 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 described in the report. This
report (Exhibit 1) was approved by the CGLBID 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 CGLBID Board is not recommending any changes to the programs and assessments ofthe
CGLBID, and no additional properties have elected to be part ofthe district in Fiscal Year 2014-
15. 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 CGLBID by adopting the attached resolution.
DEPARTMENT 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 CGLBID generated approximately $350,000 in revenue during Fiscal Year 2013-2014.
The costs incurred by the district during this same period were approximately $350,000.
The projected fund balance at the end of Fiscal Year 2013-14 is $0. For Fiscal Year 2014-
15, the CGLBID has estimated revenues of $420,000 and a budget of $420,000 with a
projected fund balance of $0 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. CGLBID Annual Report.
2. Resolution No. 2014-107 . approving the annual report of the Carlsbad Golf Lodging
Business Improvement District, and continuing the programs and assessments for Fiscal
Year 2014-15.
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EXHIBIT 1
Carisbad Golf Lodging Business Improvement District (CGLBID)
Annual Report
2014-2015
Method of Assessment: The CGLBID includes all hotel businesses in the City of
Carlsbad 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 Carlsbad 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 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 $2.00 per occupied room per night in revenues for the previous month.
Assessment Funding Purpose: The proceeds ofthe 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.
2014-15 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) and the next fiscal
year 2013-14, three hotel's opted into the district. Those three hotels; the Sheraton
Carlsbad, the Park Hyatt Aviara and the Grand Pacific Palisades Hotel, are
expected to collect a total of $350,000 in CGLBID Assessments in Fiscal Year
2013-14. 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 fonward to the next fiscal year.
For Fiscal Year 2014-15, one additional hotel has elected to participate in the
district, Carlsbad by the Sea Resort. The district will now be comprised of four
hotels. It is estimated that these four hotels will collect a total of $420,000 in
CGLBID assessments. Based on this revenue estimate, the budgeted amount for
reimbursement to the hotels is $403,200. This amount plus any carry fonwards
from the previous fiscal year will be available to the assessed hotels for
reimbursement. Administrative fees for Fiscal Year 2014-15 are budgeted at
$16,800, which is 4% ofthe revenues.
Detail ofthe 2014-15 budget is shown on the following page.
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EXHIBIT 2
1 RESOLUTION NO.2014-107
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WHEREAS, the CGLBID was formed in accordance with the California Government Code
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE CARLSBAD GOLF LODGING
BUSINESS IMPROVEMENT DISTRICT (CGLBID) ANNUAL REPORT,
4 AND CONTINUING THE CGLBID PROGRAMS AND ASSESSMENTS
FOR FISCAL YEAR 2014-15.
5 "
6
y Parking and Business Improvement Area Law of 1989 (Sections 36500, et. Seq. ofthe Streets
8 and Highways Code), and
^ WHEREAS, Section 36533 ofthe Code requires the CGLBID Advisory Board to present an
annual report to the City Council for its review and approval for each fiscal year for which
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assessments are to be levied and collected to pay the cost for the improvements and activities
12
described in the report; and
14 WHEREAS, an Annual Report has been submitted to the City Council for Fiscal Year
15 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."
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21 WHEREAS, the City Council must adopt a new resolution each year in order to levy an
22 assessment for that fiscal year.
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.
//
1 2. That the Annual Report is approved as submitted by the Board of
2 Directors ofthe Carlsbad Golf Lodging Business Improvement District. (Report on file with
3 City Clerk)
4 3. That the program and assessments as levied in the current fiscal year
5 (2013-14) shall continue without change.
o
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4. That this resolution constitutes the levy of an assessment of $2.00 per
/
8 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 2014-15:
10 Sheraton Carlsbad Resort and Spa
11 Grand Pacific Palisades Hotel
12 Park Hyatt Aviara
13 Carlsbad by the Sea Resort
14 ///
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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.
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON,