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Home My WebLink About2016-06-28; City Council; 22333; APPROVE THE ANNUAL REPORT OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICTCITY OF CARLSBAD -AGENDA BILL 11 AB# 22 333 DEPT. DIRECTOR CJ;(j.;\ MTG. 6-28-16 APPROVE THE ANNUAL REPORT OF THE CARLSBAD CITY ATTY. Hs TOURISM BUSINESS IMPROVEMENT DISTRICT DEPT. FIN CITYMGR. tLb- RECOMMENDED ACTION: Adopt a Resolution approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2016-17. 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 room-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 2) was approved by the CTBID Board at their May 25, 2016 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. FISCAL IMPACT: The CTBID generated approximately $1,166,000 in revenue 2015-16. The costs incurred by the district during this same period were approximately $1,094,000. The projected fund balance at the end of Fiscal Year 2015-16 is $608,000. For Fiscal Year 2016-17, the CTBID has estimated revenues of $1,160,000 and a budget of $1,211,000 with a projected fund balance of $556,000 at June 30, 2017. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, cheryl.gerhardt@carlsbadca.gov FOR CITY CLERKS USE ONLY. :( COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC 0 DENIED 0 CONTINUED TO DATE UNKNOWN 0 WITHDRAWN 0 RETURNED TO STAFF 0 AMENDED 0 COUNCIL RECEIVED THE 0 REPORT /PRESENTATION OTHER-SEE MINUTES 0 Item No. 11 - AB #22,333 June 28, 2016 Page 1 of 7 Page 2 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. Resolution approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2016-17. 2. CTBID Annual Report. Item No. 11 - AB #22,333 June 28, 2016 Page 2 of 7 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 RESOLUTION NO. 2016-128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD CALFIORNIA, APPROVING THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, AND CONTINUING THE CTBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2016-17 EXHIBIT 1 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 described in the report; and WHEREAS, an Annual Report has been submitted to the City Council for Fiscal Year 2016- 17;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"; and WHEREAS, the City Council must adopt a new resolution each year in order to levy and assessment for that fiscal year. NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Annual Report is approved as submitted by the Board of 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 (2015-16) shall continue without change. Item No. 11 - AB #22,333 June 28, 2016 Page 3 of 7 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 2016-17. /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// III -2- 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 Item No. 11 - AB #22,333 June 28, 2016 Page 4 of 7 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 of the City Council ofthe City of Carlsbad on the 28th day of June, 2016, by the following vote to wit: AYES: Hall, Wood, Schumacher, Blackburn, Packard. NOES: None. ABSENT: None. (SEAL) -3- Item No. 11 - AB #22,333 June 28, 2016 Page 5 of 7 EXHIBIT 2 Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2016-2017 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. 2016-17 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, $150,000 in grants were awarded to fund projects and events to increase the overnight stays in Carlsbad hotels. The CTBID 2016-17 budget includes $965,435 in funding for VisitCarlsbad. The services provided will focus primarily on driving demand in the leisure market during the off peak season. The majority of this will be done by interactive marketing and group sales. VisitCarlsbad will also contract with a public relations firm to continue 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 $200,000 allocated this year, to the CTBID Board Detail of the 2016-17 budget is shown on the following page. Item No. 11 - AB #22,333 June 28, 2016 Page 6 of 7 EXHIBIT 2 2016-17 Recommended CTBID Budget Program Areas Description 2013-14 Actuals 2014-15 Actuals 2015-16 BUDGET 2015-16 Actuals Projected as of 5/31/16 2015-16 Actuals Recommended 2016-17 Budget Carryover Fund Balance $140,276 $280,435 $537,435 537,435 537,435 608,772 Revenues: CTBID Assessment $1 per room night 1,019,349 1,104,688 1,160,000 1,074,861 1,160,000 1,160,000 Interest Earnings 2,700 3,778 6,168 6,000 Prior Year refunds Total Estimated Revenues 1,022,049 1,108,466 1,160,000 1,081,029 1,166,000 1,160,000 Expenditures: 2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID 20,386 22,093 23,200 21,478 23,200 23,200 CCVB Payment To operate visitor center, market and promote Carlsbad 750,000 766,538 907,497 821,899 893,463 965,435 Staff support Staff support to the CTBID - 2% of revenues 18,379 22,835 23,200 28,303 28,000 23,200 CTBID Grants Grant program established by CTBID Board 50,000 40,000 150,000 86,424 150,000 200,000 Tourism Study CTBID sharing cost 50/50 with City 43,125 0 Contingency Contingency 0 327,233 0 0 Total Expenses 881,890 851,466 1,431,130 958,104 1,094,663 1,211,835 Ending Fund Balance Contingency for Revenue shortfall $280,435 $537,435 $266,305 $660,360 608,772 556,937 Item No. 11 - AB #22,333 June 28, 2016 Page 7 of 7