HomeMy WebLinkAbout1988-03-10; City Council; Minutes.. 4 0 0
Neeting of: CITY COUNCIL (Adjourned Regular)
Date of Meeting: March IO, 1988
Time of Meeting: 6~00 p.m. COUNCIL \$ %PA "s %9/
Place of Meeting: City Council Chambers
CALL TO ORDER:
Mayor Lewis called the Meeting to order at 6.00 p.m.
ROLL CALL was taken by the City Clerk, as follows:
MEMBERS % tp 9
Present: Council Members Lewis, Kulchin, Pettine,
Mamaux and Larson.
Absent: None.
DEPARTMENTAL AND CITY MANAGER REPORTS:
IO. AB 119325 - APPOINTMENT TO VACANCY ON BEACH EROSION
COMMITTEE.
Council adopted the foll-owina Resolution:
X Larson
X Mamaux CITY OF CARLSBAD BEACH EROSION COMMITTEE.
X Kulchin xx Lewis
RESOLUTION NO. 88-74, APPOINTING HUGH VICKERY TO THE X Pettine
11. A5 119313 - SPECFAL MUNICIPAL ELECTION TO INCREASE
TRANSIENT OCCUPANCY TAX.
12. - A5 f9326 - TRANSIENT OCCUPANCY TAX INCREASE -
SPECIAL TAX FOR GOLF COURSE AND TENNIS FACILITIES.
Craig Severson, 5411 Avenida Encinas, representing the
Carlsbad Convention & Visitors Bureau, addressed
Council stating the CCV5 was not pro or con on the
increase in TOT. He distributed a report to Council
Members giving statistics on hotel/motel rooms in San
Diego County and the projected increase within the next
two and a half years.
Mr. Severson discussed the projected income from an 8
percent TOT in Carlsbad, and added the hotel people
felt a 10 percent TOT would be very detrimental on
group and corporate business. According to Mr.
Severson, at the 8 percent rate there would be more
income from TOT in four years than if the tax were
increased to 10 percent. The reason for this would be
the decline in occupancy due to the higher prices.
Mr. Severson stated with the normal projected growth,
and the TOT left at 6 percent, there would be a
significant increase in revenue over what the City is
receiving at the present time.
Don Hoyt, 3307 Highland, representing the Chamber of Commerce, referred to material distributed to Council
Members and added any increase in the TOT could
jeopardize the hotel/motel place in the market. There
was a strong reaction to the proposed increase in TOT,
but on the other hand, there was a strong understanding
that the City of Carlsbad, by necessity, has to look for
expanded revenue sources.
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DEPARTMENTAL AND "_ CITY MANAGER REPORTS: (Continued)
Mr. Hoyt stated that he appreciated Council Member
Mamaux's intent with the suggested IO percent TOT, with
the tourist industry to benefit from the second 2
percent, but he felt this was too high a price to be
workable and would cripple the tourism industry.
Mr. Hoyt said the Chamber would support an increase in
the TOT to 8 percent, but could not support the
increase to 10 percent.
Mike Straub, Chairman, CCVB Board of Directors, 2956
Roosevelt, addressed Council, stating the lodging
business is in a very competitive situation and is
facing more competition in the next few years with the
additional hotel-/motel rooms coming on line. However,
they also recognize the City's need for increased
revenue. Mr. Straub said the majority of local
lodging businesses support Council's action to consider
raising the TOT from 6 percent to 8 percent, with the
revenue going into the General Fund.
Mr. Straub further stated that any addj-tional raise in
TOT is viewed with alarm, as Carlsbad would have the
highest rate in the County, and this would reduce the
occupancy rate, which would in turn offset the revenue.
Mr. Straub suggested Council study the results for a
period of time before considering any further action,
and also consider investing that revenue in the CCVB to
he1.p bring more people to Carlsbad.
3anie Phillips, 3368 Harding Street, representing the
Carlsbad Economic Enhancement Council, stated they
could support a modest increase in the TOT, but
could not support any increase to 10 percent. She felt
this would be a step backward in trying to attract
tourists to Carlsbad. The occupancy rate is down at
the present time, and any increase in the TOT would
cause that rate to drop further. Ms. Phillips stated
the increased number of rooms would cause a natural
growth in the TOT and an increase in revenue without
increasing the tax.
Ms. Phillips concluded her remarks, stating a 2 percent
TOT increase should be considered only if necessary,
and should be phased in over a period of time, giving
additional- time to study the revenue problems.
Tony Howard-Jones, 2785 Roosevel-t Street, representing
Beach Terrace Inn, stated it takes a long time for a
City to become a destination area, and although the
marketing for Carlsbad is being conducted at the
present time, it will take perhaps three or four years
for that to happen. People across the country do not
know where Carlsbad, California, is located, and still confuse it with the Carlsbad Caverns.
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DEPARTMENTAL AND CITY MANAGER REPORTS: (Continued)
In reply to Council query as to whether a golf course
and tennis facility would help to make Carlsbad a
destination City more quickly, Mr. Howard-Jones said it
would be nice to have those facilities, but they would
not do the job overnight.
Arnold Dunbrow, Ocean Manor, stated if the TOT were
raised to IO percent, it could create a lot of problems.
An 8 percent increase would hurt, but he said he could
live with that.
Mr. Dunbrow said the business people in Carlsbad are
trying to build business at this time, and if the TOT
rate goes up too high, business will go down.
Ted Vallas, Olympic Resort Hotel, addressed Council
stating he deals with commercial people and it would be
devastating to raise the TOT to 10 percent. He said he
was in favor of a golf course, but felt private
industry should provide it. This would also mean there
would be no risk to the City.
Mr. Vallas asked what would happen to the money ear-
marked for a golf course, if a study found it was not
feasible to build one.
Mayor Lewis said this Council has said there will be a golf course, and there is land available. Mr. Vallas
commented that golf by itself cannot be self- supporting.
Lisa Seaman, representing the Carlsbad Inn, said the
City is in need of additional- funding sources, but she
felt the deficit could be met by increased occupancy.
The 2 percent increase in TOT would lower the occupancy rate, and decrease the ability to increase TOT revenue.
Ms. Seaman said the City and the Tourist Advisory
Council should work more closely touether, and at this
time she felt the City has discovered the tourist
business people are not a silent voice. She suggested
the City look at alternative methods to increase
revenue.
Paul Graham, 1957 Valley Road, Oceanside, representing
La Costa Hotel 13 Spa, referred to the letter he read at
the previous meeting, and emphasized that La Costa
looks on this proposed TOT increase with great concern.
He stated that La Costa paid the City 1.2 million
dollars last year, which was 70 percent of the City's
TOT revenue.
Mr. Graham reiterated La Costa is in keen competition
with other areas of the country for corporate meetings,
and a raise in the TOT would hinder their chances for
bidding for that business and hurt the lodging business
in Carlsbad. He asked Council to re-consider raising
the TOT.
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DEPARTMENTAL AND CITY MANAGER REPORTS: (Continued)
Maurice Kimball, 1623 James Steet, stated he was not
here to speak for the hotels or the golfers, but was
here to fight tax increases. He said no tax increase
wuld be necessary if the City government was run
efficiently.
A. 3. Skotnicki, 3535 Bedford, representing the
Association of Carlsbad Taxpayers, stated they support
an increase of the TOT to 8 percent, and would even
support a tax increase to 9 percent, but do not
support an incrase in the TOT to 10 percent.
Mr. Skotnicki said the Board of Directors of ACT felt
the TOT should totally support tourists' use of City
services and facilities of all types.
Peder Norby, 2451 Buena Vista Circle, addressed Council
as a businessman in Carlsbad, stating his bakery
business and other retail businesses could be hurt by
increasing the TOT, since 70 percent of his retail
business comes from the hotel property where he leases
his shop.
Mr. Norby felt the golf and tennis facilities should be
funded some other way other than by the tourist
industry.
Pamela Beckworth, 850 Palomar Airport Road,
representing Pea Soup Andersen's, said a significant
portion of their business is conventions and
corporate, and in order to grow, they need to be
competitive with the San Diego properties. She said a
10 percent TOT would have an adverse effect on
convention business.
Kay Christiansen, 2802 Carlsbad Boulevard, representing
the Merchants Association, said tourist money is the
cleanest money for a City, but she felt the tourists
should not have to pay for a tax-free golf course or
tennis courts for the citizens of Carlsbad.
Mrs. Christiansen said there should be a minor increase
in the TOT, but not to 10 percent, as that would drive
people away from Carlsbad.
Glenda Hasselo, 3299 Donna Drive, representing Network,
Tri-City Tennis Patrons, spoke in favor of a tennis
facility, stating this would give Carlsbad a great
opportunity to develop tennis tournaments and programs to attract tourists. She added they would be helping
to pass the issue in June.
3im Smith, 6725 Russelia Court, addressed Council
representing the Carlsbad Golf Association, which has 1,400 members. He read a prepared text stating the
Asociation felt visitors would not stay away from
Carlsbad because of an additional TOT tax, and a golf
course and tennis facility would help to make Carlsbad
into a destination City.
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DEPARTMENTAL AND CITY MANAGER REPORTS:
Mr. Smith read a request by the Golf Association to
change the wording to "Public Golf Facilities" in lieu
of "Public Golf Course", and promised the Association's
help in working for the ballot issue.
Council Member Kulchin stated she could support both
the increase to 8 percent and the increase to 10
percent, as the facilities are needed now.
Council Member Pettine stated he favored an alternative
to the 10 percent TOT, in the form of a G.O. bond,
which wou1.d shift the burden onto the taxpayers instead
of the tourists. He did favor the increase to 8
percent for the TOT.
Council Member Larson said he favored the increase to 8
percent, but felt the increase to 10 percent was more
difficult. However, the City of Carlsbad is not known,
and he felt a golf and tennis facility would help put
Carlsbad on the map. Therefore, he stated his support
for both measures.
Council Member Mamaux said no tax increase is easy, and
in this case the City would provide the land for the
golf course. He added there has been no rate increase
since 1965, and this would open up a lot of avenues to
make life better for a lot of people, and he supported
both issues.
Mayor Lewis stated all the citizens of Carlsbad benefit
from what Council does: and he felt a golf and tennis
facility was needed to make things happen in Carlsbad.
He added he would prefer the 3une ballot contain the
raise to 8 percent and the November ballot the second 2
percent increase, but would support both issues at this
time .
Council adopted the following Resolutions and Lewis X
introduced the following Ordinance: (one motion) Kulchin xx
Pettine x
AND GIVING NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL Larson X
ELECTION TO BE HELD IN SAID CITY ON TUESDAY, THE 7TH
DAY OF JUNE, 1988, FOR THE PURPOSE OF SUBMITTING TO THE
QUALIFIED VOTERS OF THE SAID CITY AN ORDINANCE RELATING
TO INCREASE THE TRANSIENT OCUPANCY TAX RATE FROM 6% to
8%.
RESOLUTION NO. 88-58, CALLING, ORDERING, PROVIDING FOR X Mamau x
RESOLUTION NO. 88-59, REQUESTING THE BOARD OF
SUPERVISORS OF THE COUNTY OF SAN DIEGO TO CONSOLIDATE A
SPECIAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF
CARLSBAD ON TUESDAY, 3UNE 7, 1988, WITH THE STATEWIDE
PRIMARY ELECTION TO BE HELD ON THAT DATE PURSUANT TO
SECTION 23302 OF THE ELECTIONS CODE.
RESOLUTION NO. 88-60, DIRECTING THE CITY ATTORNEY TO
PREPARE AN IMPARTIAL ANALYSIS OF THE PROPOSED ORDINANCE
PERTAINING TO TRANSIENT OCCUPANCY TAX.
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March 10, 1988 Page 6
DEPARTMENTAL AND CITY MANAGER REPORTS: (Continued)
RESOLUTION NO. 88-61, AUTHORIZING CERTAIN OF ITS
MEMBERS TO FILE A WRITTEN A3GUMENT REGARDING A CITY
MEASURE, with the names of all Council Members inserted
in the blanks.
ORDINANCE NO. NS-8, AMENDING TITLE 3, CHAPTER 3.12 OF
THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF
SECTIONS 3.12.030 TO INCREASE THE TRANSIENT OCCUPANCY
TAX RATE TO 8%.
Council adopted the following Resolutions and
introduced the following Ordinance: (one motion)
RESOLUTION NO. 88-75, AMENDING RESOLUTION NOS. 88-58
AND 88-59 CALLING AND GIVING NOTICE OF THE HOLDING OF
THE SPECIAL MUNICIPAL ELECTION TO BE HELD IN THE CITY
ON TUESDAY, JUNE 7, 1988, TO INCLUDE THE SUBMISSION TO
THE QUALIFIED ELECTORS AN ORDINANCE RELATING TO INCREASING THE TRANSIENT OCCUPANCY TAX BY AN ADDITIONAL
2% TO PAY FOR THE PROMOTION OF TOURISM IN CARSLBAD AND
TO FINANCE A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED FACILITIES.
RESOLUTION NO. 88-76, DIRECTING THE CITY ATTORNEY TO
PREPARE AN IMPARTIAL ANALYSIS OF THE PROPOSED ORDINANCE
PERTAINING TO AN INCREASE IN THE TRANSIENT OCCUPANCY
TAX TO PAY FOR THE PROMOTION OF TOURISM IN THE CITY AND
FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED
FACILITIES.
RESOLUTION NO. 88-77, AUTHORIZING CERTAIN OF ITS
MEMBERS TO FILE A WRITTEN ARGUMENT REGARDING A CITY
MEASURE, with the names of all Council Members except
Mr. Pettine to be inserted in the blanks.
ORDINANCE NO. NS-10, AMENDING TITLE 3, CHAPTER 3.12 OF
THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF SECTION
3.12.035 TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE
BY 2% TO PAY FOR THE PROMOTION OF TOURISM IN THE CITY
AND FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED
FACILITIES.
AD30URNMENT:
By proper motion, the Meeting was adjourned at
7:40 p.m.
Respectfully submitted,
Q&Z& &?R-
ALETHA L. RAUTENKRANZ
City Clerk
Harriett Babbitt
Minutes Clerk
I '57
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COUNCIL y$\q (3.9 e $y/ A
MEMBERS Z. tp Z.
Lewis
X Larson
xx Mamaux
Pettine
X Kulchin
X
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