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Home My WebLink About2017-06-27; City Council; ; Approve a Resolution approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2017-18Page 39 CA Review vJv 9 CITY COUNCIL Staff Report Meeting Date: To: From: Staff Contact: Subject: June 27, 2017 Mayor and City Council Kevin Crawford, City Manage~ Cheryl Gerhardt, Finance cheryl.gerhadt@carlsbadca.gov or 760-602-2425 Approve a Resolution approving the annual report ofthe Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2017-18. Recommended Action Approval of a Resolution approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2017-18. Executive Summary 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. Staff has prepared the report and it has been approved by the CTBID Board. This City Council is being asked to approve the report and continue the assessment into the next fiscal year. Discussion 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 June 5, 2017 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 Page 40 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 (Exhibit 1). Fiscal Analysis The CTBID will generate approximately $1,160,000 in revenue 2016-17. The costs incurred by the district during this same period are approximately $1,124,000. The projected fund balance at the end of Fiscal Year 2016-17 is $691,000. For Fiscal Year 2017-18, the CTBID has estimated revenues of $1,200,000 and a budget of $1,276,000 with a projected fund balance of $615,000 at June 30, 2018. Next Steps Adopt Resolution approving the annual report ofthe Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2017-18. Environmental Evaluation (CEQA) Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning ofthe CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. Resolution approving the annual report of the Carlsbad Tourism Business Improvement District, and continuing the programs and assessments for Fiscal Year 2017-18. 2. CTBID Annual Report. RESOLUTION NO. 2017-120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, AND CONTINUING THE CTBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2017-18 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 2017-18; and WHEREAS, Section 36535 (d) ofthe 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 of the 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 for the Carlsbad Tourism Business Improvement District. (Report on file With City Clerk) EXHIBIT 1 3. That the program and assessment as levied in the current fiscal, year (2016-17) shall continue without change. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 27th day of June, 2017, by the following vote, to wit: AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. NOES: None. ABSENT: None. ~ A HALL, Mayor (SEAL) Page 43 EXHIBIT 2 Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2017-2018 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 Visit Carlsbad) to provide tourism marketing services for Carlsbad. In addition, $99,000 in grants were awarded to fund projects and events to increase the overnight stays in Carlsbad hotels. The CTBID 2017-18 budget includes $1,077,535 in funding for Visit Carlsbad. 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. Visit Carlsbad will also contract with a public relations firm to continue branding Carlsbad. Funding also includes managing the visitor center and publications. The Visit Carlsbad Board will review the CTBID grant applicants and make the funding recommendations, for which there is $150,000 allocated this year, to the CTBID Board. Detail of the 2017-18 budget is shown on the following page. Page 44EXHIBIT A 2017-18 Recommended CTBID Budget 2014-15 2015-16 2016-17 2016-17 Actuals Projected Recommended Program Areas Description Actuals Actuals Budget as of 4/30/17 2016-17 Actuals 2017-18 Budget Carryover Fund Balance $280,435 $537,435 $655,774 655,774 655,774 691,062 Revenues: CTBID Assessment $1 per room night 1,104,688 1,167,716 1,160,000 998,009 1,155,000 1,200,000 Interest Earnings 3,778 10,442 2,735 4,200 Total Estimated Revenues 1,108,466 1,178,158 1,160,000 1,000,744 1,159,200 1,200,000 ExQenditures: I 2% Admin. Fee-City 2% of CTBID assessment revenue, for collection of CTBID I assessment and accounting for CTBID 22,093 23,336 23,200 19,959 23,100 24,0001 CCVB Payment To operate visitor center, market and promote Carlsbad 766,538 893,463 978,612 817,707 978,612 1,077,5351 Staff support Staff support to the CTBID -2% of revenues 22,835 33,523 23,200 13,184 23,200 24,000 CTBID Grants Grant program established by CTBID Board 40,000 109,497 200,000 44,000 99 ,000 150,000 Total Expenses 851,466 1,059,819 1,225,012 894,850 1,123,912 1,275,535 Ending Fund Balance Contingency for Revenue shortfall $537,435 $655,774 $590,762 $761,668 691 ,062 615,527