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Home My WebLink About2020-06-23; City Council; ; Levy of Annual Assessment for Carlsbad Tourism Business Improvement District for Fiscal Year 2020-21CA Review CKM Meeting Date: June 23, 2020 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Cheryl Gerhardt, Finance Manager cheryl.gerhardt@carlsbadca.gov or 760‐602‐2468 Subject: Levy of Annual Assessment for Carlsbad Tourism Business Improvement District for Fiscal Year 2020‐21 Recommended Action Hold a public hearing on the levying of an assessment for the Carlsbad Tourism Business Improvement District, and, in the absence of a majority protest, adopt a resolution confirming the Carlsbad Tourism Business Improvement District Advisory Board’s annual report and levying the assessment for fiscal year 2020‐21. Executive Summary/Discussion The Carlsbad Tourism Business Improvement District administers marketing and visitor programs to promote the City of Carlsbad as a tourism visitor destination and funds projects, programs, and activities, including appropriate administrative charges, that benefit hotels within the district’s boundaries.1 It is funded by an assessment of $1 per room per night for hotels, resorts and other lodging businesses in Carlsbad. The district’s Advisory Board is required to present an annual report for the City Council’s review and approval for each fiscal year for which assessments are to be levied and collected. The report describes the improvements and activities to be funded by the assessment. The City Council approved the Advisory Board’s latest report on June 2, 2020, declared an intention to levy and collect an annual assessment in fiscal year 2020‐21 and scheduled this public hearing on the levying of the proposed assessments. At this public hearing, the City Council must hear and consider all protests against the levy of the assessment. If the City Council receives written protests from affected business owners that will pay 50% or more of the proposed assessments, the City Council may not take any further steps to levy the assessment for a period of one year. Written protests must be submitted to the city clerk at or before the time set for the public hearing. They also must contain sufficient information to identify the affected business and to show the person submitting the protest is the business owner or is authorized to speak on behalf of the business owner. 1 The City Council formed the Carlsbad Golf Lodging Business Improvement District in 2012 when it adopted Ordinance No. CS‐194 (Carlsbad Municipal Code Chapter 3.38). June 23, 2020 Item #10 Page 1 of 4 At the conclusion of the hearing, if there is no majority protest, the City Council may adopt a resolution confirming the Advisory Board’s report, which will constitute the levy of the assessment for fy 2020‐21. Fiscal Analysis For fiscal year 2020‐21, the Carlsbad Tourism Business Improvement District’s $1 per room per night assessment is estimated to generate $800,000 in revenues to be used for the promotion of tourism. Next Steps If the City Council confirms the Advisory Board’s report and levies the assessment for fy 2020‐ 21, the assessment will go into effect July 1, 2020. Environmental Evaluation (CEQA) Pursuant to Public Resources Code section 21065, this action does not constitute a “project” within the meaning of the 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 Public notice of this item was posted in accordance with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours prior to scheduled meeting date. In addition, in accordance with California Streets and Highways Code Section 36534(b), the city clerk gave notice of the public hearing by publishing the resolution of intention in a newspaper of general circulation in the city not less than seven days before the public hearing. Exhibits 1. City Council resolution June 23, 2020 Item #10 Page 2 of 4 RESOLUTION NO. 2020-133 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, CONFIRMING THE ADVISORY BOARD'S REPORT AND LEVYING THE ASSESSMENT FOR FISCAL YEAR 2020-21 FOR THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) EXHIBIT 1 WHEREAS, the CTBID was formed in accordance with the Parking and Business Improvement Area Law of 1989 (Cal. Streets and Highways Code, § 36500 et seq.); and WHEREAS, on June 2, 2020, the City Council adopted a resolution (1) approving the CTBID Advisory Board's annual report, (2) indicating an intention to levy an assessment for fiscal year 2020- 21, and (3) setting a public hearing on the levy of the assessment for June 23, 2020 (resolution of intention); and WHEREAS, the city clerk published the resolution of intention in a newspaper of general circulation in the city not less than seven days before the public hearing; and WHEREAS, on June 23, 2020, the City Council conducted a public hearing on the levy of the assessment and considered all protests against the levy of the assessment; and WHEREAS, the City Council did not receive written protests from affected business owners that will pay 50 percent or more of the proposed assessments. 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 City Council confirms the CTBID Advisory Board's annual report, which is on file in the city clerk's office. 3. That the boundaries of the CTBID shall be the legal boundaries of the City of Carlsbad. 4. That the assessment to be levied shall be a flat fee of $1.00 per occupied room per night for all transient occupancies, as defined in Carlsbad Municipal Code Section 3.12.020, due and payable to the City of Carlsbad's finance department at the same time and in the same manner as payment of transient occupancy tax. 5. That the adoption of this resolution shall constitute the levy of the assessment for the CTBID for fiscal year 2020-21, beginning July 1, 2020 through June 30,2021. June 23, 2020 Item #10 Page 3 of 4 EXHIBIT 1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 23rd day of June, 2020, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Schumacher. None. None. MATT HALL, Mayor (SEAL) June 23, 2020 Item #10 Page 4 of 4 NOTICE OF HEARING ON RESOLUTION OF INTENTION NOTICE IS HEREBY GIVEN that on June 2, 2020, the City Council of the City of Carlsbad adopted Resolution No. 2020-094, declaring an intention to levy and collect annual assessments for the Carlsbad Tourism Business Improvement District (CTBID}, and setting a public hearing date for 3:00 p.m. on June 23, 2020, at 1200 Carlsbad Village Drive, Carlsbad, California. RESOLUTION NO. 2020-093 provides as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) ANNUAL REPORT, DECLARING AN INTENTION TO LEVY AND COLLECT AN ANNUAL ASSESSMENT AND SETTING A PUBLIC HEARING DATE WHEREAS, the CTBID was formed in accordance with the Parking and Business Improvement Area Law of 1989 (Cal. Streets and Highways Code,§ 36500 et seq.); and WHEREAS, the CTBID boundaries are the boundaries of the City of Carlsbad; and WHEREAS, the CTBID Advisory Board must present an annual report to the City Council for 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, the CTBID Advisory Board submitted an annual report (Attachment A, on file in the Office of the City Clerk) to the City Council for fiscal year 2020-21; and WHEREAS, after the City Council approves the annual report, the City Council must adopt of resolution declaring its intention to levy and collect assessments for fiscal year 2020-21; and WHEREAS, the assessments will generally be spent 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 CTBID boundaries; and WHEREAS, the amount of the proposed assessment and a full and detailed description of the activities to be conducted and funded in fiscal year 2020-21 are included in Attachment A (on file in the Office of the City Clerk). 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 (Attachment A, on file in the Office of the City Clerk) is approved as submitted by CTBID Advisory Board. 3. That for fiscal year 2020-21, the City Council intends to levy and collect an assessment of $1 per room-night for each transient occupancy in the city. 4. That the City Council will hold a public hearing at 3 p.m. on June 23, 2020 on the levying of the annual assessment. 5. That at the public hearing, the City Council will consider any oral or written protests to the levying of the assessments. Written protests must be submitted to the city clerk at or before the time set for the public hearing. Written protests must contain sufficient information to identify the affected business and to show the person submitting the protest is the business owner or is speaking on behalf of the business owner. If, following the public hearing, there are written protests from affected business owners that will pay 50 percent or more of the proposed assessments, the City Council will not take any further action to levy the proposed assessment for one year. That the city clerk is directed to give notice of the public hearing by causing this resolution of intention to be published once in a newspaper of general circulation in the city not less than seven days before the public hearing. PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of Carlsbad on the 2nd day of June 2020, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Schumacher. None. None. Copies of the staff report will be available on and after June 19, 2020. If you have any questions, please contact Cheryl Gerhardt in the Finance Department at 760-602-2468 or cheryl.gerhardt@carlsbadca.gov. Per State of California Executive Order N-29-20, and in the interest of public health and safety, we are temporarily taking actions to prevent and mitigate the effects of the COVID-19 pandemic by holding City Council and other public meetings electronically or by teleconferencing. The meeting can be viewed online at www.carlsbadca.gov or on the city's cable channel. The Carlsbad City Council welcomes your participation. During the COVID-19 public health emergency, the city has provided two easy ways for community members to provide comments during a City Council meeting: Verbally Sign up to provide verbal comments by phone by filling out an on line registration form by 2 p.m. the day of the meeting. You will receive a confirmation message with instruction about how to call into the meeting. In writing E-mail your comments to clerk@carlsbadca.gov. Emails received by 2 p.m. will be provided to the City Council prior to the start of the meeting. Other comments will be included with the meeting record. Emailed comments will not be read out loud during the meeting. Please indicate the agenda item number in your email subject line. If you challenge the program budgets in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City of Carlsbad, Attn: City Clerk's Office, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, at or prior to the public hearing. PUBLISH DATE: June 12, 2020 CITY OF CARLSBAD CITY COUNCIL Cheryl Gerhardt, Finance Manager June 23, 2020 Carlsbad Tourism Business Improvement District Levy of Annual Assessment Public Hearing June 2, 2020 Council Meeting •Approved annual report •Adopted Resolution of intention to levy and collect annual assessment in FY 2020-21 •Scheduled public hearing for June 23 CTBID Hearing Process •Hold Hearing •Consider Protests •If majority protest, no further steps for one year •If no majority protest, adopt resolution confirming the annual report and levying the assessment for FY 2020-21 Carlsbad Tourism Business Improvement District Public Hearing