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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. 56 -. I. e 0 y+j$ 39 +A4 March 10, 1988 Page 2 COUNCIL /o + p, MEMBERS Z. ts, Z. 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. 55 ,. .* 0 0 \\p 9 %p%? March IO, 1988 Page 3 COUNCIL "0 +.p/ MEMBERS Z. 8 5 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. 5Y - 0 0 k\i$ 5A-y A1 March 10, 1988 Page 4 COUNCIL "0 %pp MEMIBERS 2. tF 2. 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. 53 .. -. e 0 1\p %T #A4 March 10, 1988 Page 5 COUNCIL "0 $9 MEMBERS Z. (ZI Z. I 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. 5z L. , w * e 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 - COUNCIL y$\q (3.9 e $y/ A MEMBERS Z. tp Z. Lewis X Larson xx Mamaux Pettine X Kulchin X ~