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HomeMy WebLinkAbout2015-06-09; City Council; 21981; Approve Annual Report Carlsbad Golf Lodging Buisness Improvement DistrictCITY OF CARLSBAD - AGENDA BILL AB# 21,981 APPROVE THE ANNUAL REPORT OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT DEPT. DIRECTOR MTG. 6-9-15 APPROVE THE ANNUAL REPORT OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT CITY ATTY./<K^ DEPT. CM APPROVE THE ANNUAL REPORT OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT CITY MGR. RECOMMENDED ACTION: Adopt Resolution No. 2015-137 approving the annual report ofthe Carisbad Golf Lodging Business Improvement District, and continuing the programs and assessments for Fiscal Year 2015-16. ITEM EXPLANATION: On November 27, 2012 the City Council adopted Ordinance No. CS-194 forming the Carisbad 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 21, 2015 meeting. Section 36535 (d) ofthe Streets and Highways Code ofthe 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 2015- 16. 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 foliowing the necessary notice period. The hotels that have opted into the District for Fiscal year 2015-16 are Sheraton Carisbad Resort and Spa, Grand Pacific Palisades Hotel, Park Hyatt Aviara and Carisbad By the Sea Resort. 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.gerhardt@carisbadca.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 • • • • • Page 2 FISCAL IMPACT: The CGLBID generated approximately $445,000 in revenue during Fiscal Year 2014-2015. The costs incurred by the district during this same period were approximately $451,000. The projected fund balance at the end of Fiscal Year 2014-15 is $152,000. For Fiscal Year 2015-16, the CGLBID has estimated revenues of $450,000 and a budget of $450,000 with a projected fund balance of $152,000 at June 30, 2016. 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. 2015-137 approving the annual report ofthe Carisbad Golf Lodging Business Improvement District, and continuing the programs and assessments for Fiscal Year 2015-16. EXHIBIT 1 Carlsbad Golf Lodging Business Improvement District (CGLBID) Annual Report 2015-2016 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 ofthe CGLBID assessment shall be spent to promote golf-related tourism within the boundaries ofthe 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 hotels; the Sheraton Carisbad, the Park Hyatt Aviara and the Grand Pacific Palisades Hotel, opted into the district. In 2014-15 the Carlsbad by the Sea Resort opted into the district. These four hotels are expected to collect a total of $445,000 in CGLBID Assessments in Fiscal Year 2014-15. 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 quarteriy 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 2015-16, no additional hotels have elected to participate in the district so the district will include the same four hotels as Fiscal Year 2014-15. It is estimated that these four hotels will collect a total of $450,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount for reimbursement to the hotels is $432,000. 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 2015-16 are budgeted at $18,000, which is 4% ofthe revenues. Detail ofthe 2015-16 budget is shown on the following page. 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TJ c ro 5 ro 0. o o ro CL -o c ro § <5 ro ro ro ro •> > < < X X ro ro CL CL ro ro .a ^ ro ro O O o o ro ro CO <r> tu tu TJ TJ •>a- CO I I CO in ro ro CO in o o CM CM >-u. tu tu .Q J3 E E <u tu EXHIBIT 2 1 RESOLUTION NO. 2015-137 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE CARLSBAD GOLF LODGING BUISINESS IMPROVEMENT DISTRICT (CGLBID) ANNUAL REPORT, AND CONTINUING THE CGLBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2015-16 3 4 5 6 7 8 9 10 11 16 17 18 19 20 23 24 25 26 27 28 WHEREAS, the CGLBID 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 of the Code requires the CGLBID Advisory Board to present an annual report to the City Council's for their review and approval for j2 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 2015-16, 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 22 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. 1 2. That the Annual Report is approved as submitted by the Board of 2 Directors of the Carisbad Golf Lodging Business Improvement District. (Report on file with City Clerk) 3. That the program and assessments as levied in the current fiscal year (2014-15) 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 formation documents for the CGLBID, for the Fiscal Year 2015-16: 3 4 5 6 7 8 9 IQ Sheraton Carisbad Resort and Spa 11 Grand Pacific Palisades Hotel 12 Park Hyatt Aviara 1^ Carisbad by the Sea Resort 14 15 16 17 18 19 20 21 /// 24 25 26 27 28 /// /// /// /// /// /// 22 /// 23 /// /// /// /// /// \0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City of Carlsbad on the 9*'' day of June, 2015, by the following vote to wit: AYES: NOES: Council Members Hall, Blackburn, Schumacher, Wood, Packard. None. ABSENT: None. ATTEST: BARBARA EN(^},^SON, dty Clerk ''lllllW^^^