HomeMy WebLinkAbout2020-08-25; City Council; ; Carlsbad Tourism Business Improvement District Assessment Modification: Public Meeting, Modified Annual Report Approval, and Ordinance Introduction Meeting Date: August 25, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Cheryl Gerhardt, Finance Manager
cheryl.gerhardt@carlsbadca.gov, 760-602-2468
Subject: Carlsbad Tourism Business Improvement District Assessment
Modification: Public Meeting, Modified Annual Report Approval, and
Ordinance Introduction
Recommended Actions
1. Conduct a public meeting to allow members of the public to provide testimony and
comments on the proposed modification to the Carlsbad Tourism Business
Improvement District assessment
2. Adopt a resolution approving the district’s modified Fiscal Year 2020-21 Annual
Report
3. Introduce an ordinance amending Carlsbad Municipal Code Section 3.37.050 -
Carlsbad Tourism Business Improvement District to modify the assessment
Executive Summary/Discussion
The City of Carlsbad established the Carlsbad Tourism Business Improvement District in 2005
under the Parking and Business Improvement Area Law of 1989 (California Streets and Highway
Code Section 36500 et seq.). The district generates funds 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 district’s boundaries. An appointed advisory board makes recommendations on
expenditures for the district’s programs and activities, makes recommendations for the
district’s annual budget, and provides end-of-year financial reports.
The district’s assessment is currently a flat fee of $1 per occupied room per night for all
transient occupancies, or temporary lodging rentals. The assessment has not been modified
since the district was established.
On June 26, 2020, the district’s advisory board sent the City Council a letter recommending the
City Council modify the assessment to be 2% of gross short-term room rental revenue for all
transient occupancies. The additional assessment revenue will enable the district to provide
improved services and activities to the assessed businesses.
On July 14, 2020, the City Council adopted a resolution of intention to modify the assessment as
recommended. The City Council also scheduled a public meeting for August 25, 2020 and a
public hearing for September 1, 2020. All affected businesses were notified of this resolution
and of the public meeting and public hearing dates.
Aug. 25, 2020 Item #6 Page 1 of 23
The purpose of the August 25, 2020 public meeting is to allow the City Council to receive public
comments and testimony on the assessment modification. The purpose of the September 1,
2020 public hearing is to allow the City Council to hear and consider all protests against the
assessment modification. If there are written protests from affected business owners who will
pay 50% or more of the modified assessment levies, the City Council may not take any further
action to modify the assessment for one year.
As part of the process for levying an annual assessment, the advisory board is required to
submit a report describing the improvements and activities to be funded with the assessment
proceeds. The City Council approved the report for the fy 2020-21 assessment at the City
Council’s meeting on June 2, 2020 and confirmed the report at its meeting on June 23, 2020.
(The confirmation of the report authorizes the assessment to be levied against the affected
businesses.) Because the proposed modified assessment will increase the assessment proceeds
available for fy 2020-21, the advisory board has provided a modified fy 2020-21 report for the
City Council’s approval and confirmation.
Modifying the assessment requires the passage of an ordinance amending CMC 3.37.050.
Before passage, an ordinance must first be introduced. The City Council may introduce an
ordinance amending CMC 3.37.050 at its August 25, 2020 meeting. Doing so would allow the
City Council, if there is no majority protest, to adopt the ordinance following the September 1,
2020 public hearing.
Fiscal Analysis
The $1 per room night assessment rate is estimated to generate $800,000 in revenues in Fiscal
Year 2020-21 for the district’s activities. Modifying the assessment to 2% of the gross short-
term room rental revenue would generate an estimated $3.5 million in annual revenue for the
district’s activities.
Next Steps
A public hearing on the proposed modification is scheduled for Sept. 1, 2020 at 3 p.m., at which
the City Council will be asked to determine if there is a majority protest. If there is not, the City
Council may confirm the modified FY 2020-21 annual report and adopt the ordinance amending
Carlsbad Municipal Code Section 3.37.050 - Carlsbad Tourism Business Improvement
District. The ordinance would become effective 30 days after adoption, but would provide for
the modified assessment to become effective Nov. 1, 2020.
Environmental Evaluation (CEQA)
This action does not constitute a “project” within the meaning of the California Environmental
Quality Act under California Public Resources Code Section 21065 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 the scheduled meeting date.
In addition, following the adoption of the Resolution of Intention, a notice was mailed to all
affected business owners on July 17 which began a mandatory 45-day period during which the
owners may protest the modification.
Aug. 25, 2020 Item #6 Page 2 of 23
Exhibits
1. City Council resolution
2. Ordinance Amending Carlsbad Municipal Code 3.37.050 - Carlsbad Tourism Business
Improvement District
3. Highlighted amendments to CMC 3.37.050
4. Letter from Carlsbad Tourism Business Improvement District Advisory Board
5. Adopted Resolution of Intention
6. Notice of Public Meeting and/or Public Hearing
7. Written protests
Aug. 25, 2020 Item #6 Page 3 of 23
RESOLUTION NO. 2020-178
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE MODIFIED ANNUAL REPORT OF THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) AND
CONTINUING THE CTBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR
2020-21
WHEREAS, the Carlsbad Tourism Business Improvement District (CTBID) was formed in
accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and
Highway Code, § 36500 et seq.) (the "Act"); and
WHEREAS, Section 36533 of the Act requires the CTBID Advisory Board to present a report to
the City Council for review and approval for each fiscal year for which assessments are to be levied and
collected to pay the cost of the improvements and activities described in the report; and
WHEREAS, the CTBID Advisory Board submitted an Annual Report to the City Council for FY
2020-21, which the City Council approved at its meeting on June 2, 2020 and confirmed at its meeting
on June 23, 2020; and
WHEREAS, the CTBID Advisory Board submitted a modified Annual Report to the City Council
for FY 2020-21 based on the proposed modification of the CTBID assessment to two percent (2%) of
gross short-term room rental revenue for all transient occupancies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows:
1. The above recitals are true and correct.
2. The modified Annual Report for FY 2020-21 (Attachment A) is approved, subject to
confirmation after a public hearing on the proposed CTBID assessment modification.
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Aug. 25, 2020 Item #6 Page 4 of 23
PASSED, APPROVED AND ADOPTED at a Meeting of the City Council of the City of Carlsbad on
the 25th day of August, 2020, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
L—(e)v(dielivID-Evvia,
BARBARA ENGLESON, City Clerk
(SEAL)
Aug. 25, 2020 Item #6 Page 5 of 23
Carlsbad Tourism and Business Improvement District (CTBID)
2020-2021 Modified Annual Report
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 2% of gross short-term room rental revenue 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 2% of gross short-term
room rental revenue 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.
2019-20 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, $20,000 in grants were awarded to fund events to increase the overnight
stays in Carlsbad hotels.
The previously adopted CTBID 2020-21 budget included a reduced funding level of
$800,000 for Visit Carlsbad. This reduced funding level is the result of reduction in
assessment revenue due to Covid-19. The services provided will focus primarily on post
Covid-19 marketing recovery efforts. The majority of this will be done by interactive
marketing and group sales. Funding also includes managing the visitor center and
publications. The increase in the assessment from $1 per room night to 2% of gross
revenue will result in an estimated budget of $1,200,000, and goes into effect November
1. This increased revenue will provide additional funding for marketing during the
recovery. Due to the uncertainty of the tourism economy at this time, the CTBID Board
will revisit the budget mid-year as well as the Visit Carlsbad contract to make adjustments
based on the needs at that time.
Detail of the modified 2020-21 budget is shown on the following page.
ATTACHMENT A
Aug. 25, 2020 Item #6 Page 6 of 23
2020-21 CTBID Budget
2016-17 2017-18 2018-19 2019-20 2020-21 2020-21
Program Areas Description Actuals Actuals Actual Actual Adopted Budget Modified Budget
Carryover Fund Balance $655,774 $722,331 $696,716 $640,318 617,131 617,131
Revenues:
CTBID Assessment $1 per room night 1,205,851 1,246,944 1,333,001 1,088,859 800,000 1,200,000
Interest Earnings 1,658 2,535 26,920 21,385
Total Estimated Revenues 1,207,509 1,249,479 1,359,921 1,110,244 800,000 1,200,000
Expenditures:
2% Admin. Fee - City 2% of CTBID assessment revenue, for collection of CTBID
assessment and accounting for CTBID 24,116 24,896 26,644 21,045 16,000 24,000
CCVB Payment To operate visitor center, market and promote Carlsbad 978,612 1,130,216 1,244,575 1,040,326 800,000 800,000
Staff support Staff support to the CTBID - 2% of revenues 19,224 16,972 15,649 20,446 16,000 24,000
Professional Services Civitas Contract 32,960 12,000
CTBID Grants Grant program established by CTBID Board 119,000 103,011 129,451 18,654 75,000 35,000
Total Expenses 1,140,952 1,275,095 1,416,319 1,133,431 907,000 895,000
Ending Fund Balance Contingency for Revenue shortfall $722,331 $696,716 $640,318 $617,131 510,131 922,131
Aug. 25, 2020 Item #6 Page 7 of 23
Visit Carlsbad Expenses
2016-17
Actuals
2017-18
Actuals
2018-19
Budget
2019-20
Request
Labor 348,088 406,478 422,051 434,324 Advertising Campaign 7,095 7,923 156,000 156,000
Digital MKtg 247,764 235,610 250,000 250,000
Group 184,259 198,967 301,100 194,500 PR Contract 95,099 224,353 185,000 190,000
G&A 27,911 29,323 35,649 30,676
Other promotion 35,725 39,929 41,800 42,500
945,941 1,142,583 1,391,600 1,298,000 37%
Reserves 722332
Aug. 25, 2020 Item #6 Page 8 of 23
Agreement Date
11/8/2019 $40,000 6 Months $6,000/month
paid (16,480) 12/19/2019
paid (6,240) 2/6/2020
paid (2,240) 6/30/2020
$15,040
5/15/2020 $20,000 6 Months $6,000/month
Paid -8000 6/4/2020
Paid -6000 7/23/2020
$6,000
Aug. 25, 2020 Item #6 Page 9 of 23
EXHIBIT 2
ORDINANCE NO. CS-381
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE SECTION 3.37.050
TO MODIFY THE ASSESSMENT FOR THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, the City of Carlsbad established the Carlsbad Tourism Business Improvement District
(CTBID) in 2005 under the Parking and Business Improvement Area Law of 1989 (California Streets and
Highway Code § 36500 et seq.); and
WHEREAS, the CTBID generates funds 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's boundaries; and
WHEREAS, an appointed advisory board (Board) makes recommendations on expenditures for
the CTBID's programs and activities, makes recommendations for the CTBID's annual budget, and
provides end-of-year financial report; and
WHEREAS, the CTBID assessment is currently a flat fee of $1 per occupied room per night for all
transient occupancies; and
WHEREAS, the assessment has not been modified since the CTBID was established; and
WHEREAS, on June 26, 2020, the Board sent the City Council a letter recommending the City
Council modify the assessment to be 2% of gross short-term room rental revenue for all transient
occupancies; and
WHEREAS, the additional assessment revenue will allow the CTBID to provide improved services
and activities to assessed businesses; and
WHEREAS, on July 14, 2020, the City Council adopted a Resolution of Intention to modify the
assessment as recommended; and
WHEREAS, the City Council conducted a public meeting on August 25, 2020 to receive public
comments and testimony on the assessment modification; and
WHEREAS, the City Council conducted a public hearing on September 1, 2020 to hear and
consider all protests against the assessment modification; and
WHEREAS, all affected businesses were notified of the Resolution of Intention and of the public
meeting and public hearing dates; and
Aug. 25, 2020 Item #6 Page 10 of 23
WHEREAS, the City Council did not receive written protests from affected business owners who
will pay 50% or more of the modified assessment levies; and
WHEREAS, the City Council received, approved, and confirmed a modified FY 2020-21 annual
report for the CTBID.
NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ordain as follows:
1. The above recitations are true and correct.
2. As of Nov. 1, 2020, Carlsbad Municipal Code Section 3.37.050 is amended to read:
3.37.050 Levy and collection of assessments.
The CTBID will include all hotel businesses located within the CTBID
boundaries. An assessment shall be levied on all hotel businesses, existing and
future, within the City of Carlsbad of two percent (2%) of gross short-term
room rental revenue for all transient occupancies as defined in Section
3.12.020 of the Carlsbad Municipal Code. The amount of the 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 collected monthly, based on two percent (2%) of gross
short-term room rental revenue for the previous month. New hotel businesses
within the boundaries will not be exempt from the levy of assessment
authorized by Section 36531. Assessments pursuant to the CTBID shall not be
included in gross room rental revenue for purpose of determining the amount
of the transient occupancy tax. No assessment shall be imposed upon
occupancies of any federal or State of California officer or employee when on
official business nor on occupancies of any officer or employee of a foreign
government who is exempt by reason of express provision of federal law or
international treaty.
EFFECTIVE DATE: This ordinance shall be effective 30 days from the date of its adoption; and
the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a
summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper
of general circulation in the City of Carlsbad within fifteen days after its adoption.
Aug. 25, 2020 Item #6 Page 11 of 23
INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 25th
day of August, 2020, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the day of , 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
APPROVED AS TO FORM AND LEGALITY:
CELIA A. BREWER, City Attorney
MATT HALL, Mayor
BARBARA ENGLESON, City Clerk
(SEAL)
Aug. 25, 2020 Item #6 Page 12 of 23
PROPOSED AMENDMENTS TO
CARLSBAD MUNICIPAL CODE SECTION 3.37.050
3.37.050 Levy and collection of assessments.
The CTBID will include all hotel businesses located within the CTBID boundaries. The An
assessment shall be levied on all hotel businesses, existing and future, within the City of Carlsbad
based upon a flat fee of two percent (2%) of gross short-term room rental revenue one dollar per
occupied room per night for all transient occupancies as defined in Section 3.12.020 of the
Carlsbad Municipal Code. The amount of the 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 collected monthly, based on two percent
(2%) of gross short-term room rental revenue on one dollar per occupied room per night in
revenues for the previous month. New hotel businesses within the boundaries will not be exempt
from the levy of assessment authorized by Section 36531. Assessments pursuant to the CTBID
shall not be included in gross room rental revenue for purpose of determining the amount of the
transient occupancy tax. No assessment shall be imposed upon occupancies of any federal or
State of California officer or employee when on official business nor on occupancies of any officer
or employee of a foreign government who is exempt by reason of express provision of federal
law or international treaty.
EXHIBIT 3
Aug. 25, 2020 Item #6 Page 13 of 23
EXHIBIT 4
Aug. 25, 2020 Item #6 Page 14 of 23
RESOLUTION NO. 2020-134
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DECLARING ITS INTENTION TO MODIFY THE ASSESSMENT
RATE FOR THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT,
FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND PUBLIC HEARING
ON THE MODIFICATION, AND GIVING NOTICE OF THE PUBLIC MEETING AND
PUBLIC HEARING
EXHIBIT 5
WHEREAS, pursuant to the Parking and Business Improvement Area Law of 1989 (California
Streets and Highway Code§ 36500 et seq.) (the "89 Law"), the City Council has established the Carlsbad
Tourism Business Improvement District ("District"); and
WHEREAS, the 89 Law authorizes the District's advisory board at any time to recommend the
City Council modify the basis and method of levying the assessment rate of the District; and
WHEREAS, the District's advisory board .submitted a written recommendation that the City
Council modify the District assessment rate from $1 per occupied room night for all transient
occupancies to 2% of gross short-term room rental for all transient occupancies; and
WHEREAS, the 89 Law establishes the procedure to modify the assessment rate which includes
adopting a Resolution of Intention, providing notice to affected business owners, holding a public
meeting, holding a public hearing, and adopting an ordinance modifying the assessment rate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.The above recitations are true and correct.
2.The City Council declares its intention to modify the District assessment rate from $1
per occupied-room per night for all transient occupancies to 2% of gross short-term.
room rental revenue for all transient occupancies.
3.As with the current assessment, the modified assessment would be levied on all hotel
businesses, existing and in the future, within the District boundaries.
4.The District boundaries continue to be consistent with the boundaries of the City of
Carlsbad.
5.The modified assessment rate would go into effect on November 1, 2020.
6.The improvements and activities proposed for the District that shall be funded by the
levy of assessments on businesses within the District boundaries include:
a.General promotion of business activities within the District;
b.Promotion of public events which benefit businesses in the District and which take
place on or in public places within the District;
c.Decoration of any public place within the District; and
Aug. 25, 2020 Item #6 Page 15 of 23
d.Acquisition, construction, installation or maintenance of improvements identified in
Section 36510 of the 89 Law.
7.Funds remaining at the end of any District term may be used in subsequent years in
which the District assessments are levied as long as they are used consistent with the
requirements of Carlsbad Municipal Code Section 3.27.070.
8.The CTBID Advisory Board will continue to serve as the advisory board of the District.
9.The District advisory board shall submit an annual report, which shall include a budget'-• for operations and activities to be undertaken by the District for the ensuing calendar
year, to the City Council pursuant to Section 36533 of the 89 Law.
10.The time and place for a public meeting for comments on the modification of the District
assessment rate is set for 3 p.m. on Aug. 25, 2020 at City Hall, 1200 Carlsbad Village
Drive, Carlsbad, CA 92008.
11.The time and place for the public hearing on the modification of the District assessment
rate is set for 3 p.m. on Sept. 1, 2020 at City Hall, 1200 Carlsbad Village Drive, Carlsbad,
CA 92008.
12.At the public meeting and public hearing, the testimony of all interested persons for or
against modifying the District will be heard.
13.A protest against modifying the District, as provided in Section 36524 of the 89 Law,
must be made in writing. A written protest may be withdrawn, in writing, at any time
before the conclusion of the public hearing. Each written protest shall contain a
description of the business in which the person signing the protest is interested,
sufficient to identify the business and its address. If the person signing the protest is
not shown on the official records of the City of Carlsbad as the owner of the business,
then the protest shall contain or be accompanied by written evidence that the person is
the owner of the business, or the authorized representative. Any protest as to the
regularity or evidence of the proceedings shall be in writing and clearly state the
irregularity or defect to which objection is made. Written protests must be received by
the City Clerk's Office before the close of the public hearing, and may be delivered to
the City Clerk Office at 1200 Carlsbad Village Drive, Carlsbad, CA 92008.
14.If, at the conclusion of the public hearing, there are of record written protests by the
owners of businesses within the District that will collectively pay 50% or more of the
proposed modified District assessment rate, no further proceedings to modify the
assessment rate shall occur for a period of one year from the date of the finding of a
majority protest.
15.Further information regarding the proposed modified District assessment rate may be
obtained from the City Clerk, at 1200 Carlsbad Village Drive, Carlsbad, CA 92008 or by
contacting Cheryl Gerhardt, staff for the Carlsbad Tourism Business Improvement
District, at (760) 602-2468.
Aug. 25, 2020 Item #6 Page 16 of 23
16.The City Clerk is instructed to provide notice of the public meeting and public hearing
by mailing notice and a complete copy of this Resolution of Intention to each and every
business owner in the District on or before July 17, 2020.
PASSED, APPROVED AND ADOPTED at a Meeting of the City Council of the City of Carlsbad on
the 14th day of July 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
(SEAL)
Aug. 25, 2020 Item #6 Page 17 of 23
NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING THE MODIFICATION OF THE CARLSBAD
TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT RATE
NOTICE IS HEREBY GIVEN that on July 14, 2020, the City Council of the City of Carlsbad adopted a Resolution of
Intention to modify the Carlsbad Tourism Business Improvement District (the “CTBID”) assessment rate as set
forth in the Resolution of Intention.
NOTICE IS HEREBY FURTHER GIVEN that at 3:00 PM on August 25, 2020, at City Hall, 1200 Carlsbad Village Drive,
Carlsbad, CA 92008, a public meeting shall be held to allow public testimony regarding the modification of the
CTBID assessment rate as set forth in the Resolution of Intention.
NOTICE IS HEREBY FURTHER GIVEN that 3:00 PM on September 1, 2020, at City Hall, 1200 Carlsbad Village Drive,
Carlsbad, CA 92008, has been set as the time and place for a public hearing at which time the City Council
proposes to modify the CTBID assessment rate as set forth in the Resolution of Intention.
Location: The CTBID includes all hotel businesses located within the boundaries of the City of Carlsbad.
Services: The CTBID is designed to provide specific benefits to payors by increasing demand for overnight
visitation to hotels within the CTBID boundaries. Revenues collected shall be used for the
following:
•General promotion of business activities within the CTBID;
•Promotion of public events which benefit businesses in the CTBID and which take place
on or in public places within the CTBID;
•Decoration of any public place within the CTBID; and
•Acquisition, construction, installation or maintenance of improvements identified in
California Streets and Highways Code Section 36510.
Cost: The proposed assessment modification would increase the current assessment rate of $1 per
occupied room per night for all transient occupancies to 2% of gross short-term room rental
revenue for all transient occupancies.
Protest: Any owner of a lodging business within the CTBID that will be subject to the assessment may
protest the modification of the CTBID assessment rate. Written protests must be received by
the City Clerk of the City of Carlsbad before the close of the scheduled public hearing. If written
protests are received from the owners of lodging businesses in the CTBID who 50% or more of
the estimated annual assessments to be levied, the CTBID assessment rate shall not be modified.
You may mail a written protest to: Office of the City Clerk, City of Carlsbad, 1200 Carlsbad
Village Drive, Carlsbad, CA 92008
COVID-19 pandemic related public health orders may prevent your personal appearance at the
public meeting or the public hearing. If your personal appearance is permitted, you may appear
at the public meeting or the public hearing and submit a written protest at that time.
Information: Should you desire additional information about the proposed CTBID assessment rate
modification contact: Cheryl Gerhardt, Carlsbad Tourism Business Improvement District Staff,
1635 Faraday Ave., Carlsbad, CA 92008
EXHIBIT 6
Aug. 25, 2020 Item #6 Page 18 of 23
EXHIBIT 7
Aug. 25, 2020 Item #6 Page 19 of 23
To whom it may concern,
RECEIVED
JUL 2 4 2020
CITY OF CARLSBAD
CITY CLERK'S OFFIC~
I am the owner of the AirBnB at 2373 Jefferson St., Carlsbad CA 92008. I am already taxed TO DEATH. If
you increase the CTBID rate from $1/room to 2% of gross I will sell my home and move away from this
area. You have already failed miserably to address the homeless epidemic and made the beach illegal
for a time; this was a criminal decision. I am at the end of my rope. 10% of gross to the City becoming
12% on top of state and federal taxes is literal theft.
I am writing to protest and demand that you not increase these taxes further.
Sincerely,
Clint Muhe
Aug. 25, 2020 Item #6 Page 20 of 23
o/~
IEICH RISOIT
1ddd:d1Mldfflbll
July 25, 2020
City Clerk of the City of Carlsbad
RECEIVED
AUG O 3 2020
CITY OF CARLSBAD
CITY CLERK'S OFFICE
This is to protest the proposed modification of the CTBID assessment rate. The proposed change is
outrageous in size. To most of the affected properties it would be a 400% increase or more and that is
an outrageous increase. If this increased money is truly needed, look to all the Airbnb type rentals that
take away from the very properties you are supposed to be helping. They get the benefits from the
CTBID tax without supporting their share.
Tamarack Beach Hotel
3200 Carlsbad Bvld
Kenneth and Mary Jo Voertman, Owners
A HELM MANAGED RESORT
3200 Car lsbad Blvd. • Carlsbad, CA 92008 • 800-334-2199 • Fax: {760) 434-5942
www .tamarackresort.com • www .tamarackresort-carlsbad.com
Aug. 25, 2020 Item #6 Page 21 of 23
DocuSign Envelope ID: C3FE35A0-D20A-48AC-8B3C-AE1373E0F088
Annette Granstedt Revocable Trust
20 July 2020
Office of the City Clerk
City Clerk
City of Carlsbad
1200 Carlsbad Village Drive.
Carlsbad Ca. 92008
Dear City Clerk:
I am writing you to protest the proposed modification of the CTBID assessment.
RECE\VEO
AUG 1 O 2020
OF CARLSBAD
C\1'Y ERK'$ OFFICE C\TY CL
My reason for protesting this assessment is the current climate regarding the COVID-19 pandemic. Not
only is this pandemic a fluid situation economically but also socia lly. The general public has lost income
as well as the ability to travel feeling safe. This increased assessment is an unneeded strain on the
hospitality industry and ou r guests at this time. The hospitality industry is already facing waves of
cancellations, shutdowns, negative consumer sentiment, decreased prices for lodging, less nights
booked, and increasing costs coupled with heightened safety measures.
lt ls my hope other buslness owners wlthln the CTBlD wrlte lnto the Clty to protest thls assessment so
our voices can be heard. I believe the City of Carlsbad will do what is right for our local business owners
and those who come to visit our wonderful city.
Sincerely,
Annette Granstedt
Owner/Trustee of Annette Granstedt Revocable Living Trust
agranstedt56@gmail.com
Aug. 25, 2020 Item #6 Page 22 of 23
4668 Nebo Drive, La Mesa, California 91941-5200
www.helmmanagement.com
To: Office of the County Clerk
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92001
Re: CTBID Assessment Rate Increase
To Whom It May Concern:
(619) 589-6222 -Fax: {619) 466-6499
thehelm@helmmanagement.com
August 11, 2020
As the management agent (The Helm Management Co.) for two commercial properties
currently paying the assessment, we want to protest the subject increase rate to 2% of the gross
short term rental income.
Both properties located at, 3200 Carlsbad Blvd., Carlsbad, CA 92001, Tamarack Beach Resort
Hotel and Tamarack Beach Resort Vacation Owners Association are now paying the
assessment. With the Covid-19 crisis resulting in lower incomes and the uncertain future, the
owners of the Hotel and the Board of the timeshare association feel this is not the proper time
for the business economy to justify this increase.
Sincerely,
~~M
Real Estate ~=:~M
ACCREDITED
MANAGEMENT
ORGANIZATION®
'
CERTIFIED
PROPERTY
MANAGER®
Aug. 25, 2020 Item #6 Page 23 of 23
August 17, 2020
Office of the City Clerk
City of Carlsbad
1200 Carlsbad Village Dr.
Carlsbad, CA 92008
Re: Modification of CTBID Assessment Rate
To Whom It May Concern:
RECEIVED
AUG 20 2020
CITY OF CARLSBAD
CITY CLERK'S OFFICE
We own a STVR within the coastal area of Carlsbad. At this time, we are opposed to
modification of the assessment rate as set forth in the Resolution of Intention we received by
mail.
We are not opposed in general to the modification, we are opposed at this time due to Covid-
19. We feel with the general decline of the economy, now is not the time to impose additional
assessments. At such time as the economy recovers, we would be willing to reconsider and
revisit the issue.
Sincerely,
~~~
John and Lorna Hoopes
Property located at:
Carlsbad Tourism Business Improvement
District
Annual Report Modification
August 25, 2020
About Civitas
•Hired by the CTBID Advisory Board to assist in the modification process
•Established over 25 years ago, assisting in the formation and renewal of
Business Improvement Districts
•Consultant on 110+ of the 180 TBIDs nationally
•Consulted on 80+ of the 109 TBIDs in California
•Assisted in the initial formation of the Carlsbad TBID in 2005, as well as the
formation of the Golf TBID
•
~JYJ.JA.$
CTBID Background
•In accordance with the Property and Business Improvement Area Law of 1989
(the ‘89 Law), the CTBID is required to present an annual report to City
Council for approval
•The Fiscal Year 2020-21 Annual Report was approved by Council at the June
23, 2020 City Council Meeting
•The ’89 Law allows Council to modify the Annual Report at any time
•The CTBID Advisory Board is requesting to modify the districts assessment
rate from the current $1 per occupied room to 2% of gross short-term rental
revenue
•
~JYJ.JA.$
CTBID Modification
•At the July 14, 2020 City Council meeting, Council adopted a Resolution of
Intention to Modify the CTBID
•Tonight, we are asking Council to take the following actions:
•Approve the modified Annual Report for Fiscal Year 2020-21
•Open a Public Meeting on the CTBID Modification
•Introduce and hold 1st Reading of the Ordinance modifying the CTBID
•
~JYJ.JA.$
Annual Report Modification
•The increase would go into effect on November 1, 2020
•With the modified assessment rate of 2% of short-term room rental revenue,
the estimated budget for FY 2020-21 will increase to $1.2 million
•Although this budget is higher than the previously adopted FY 2020-21 of $800,000, it
does reflect a reduced funding level due to COVID-19.
•The increase in funding will allow for marketing recovery efforts
•
~JYJ.JA.$
Annual Report –Attachment A
Program Areas Description
2016-17 2017-18 2018-19 2019-20 2020-21 2020-21
Actuals Actuals Actual Actual
Adopted
Budget
Modified
Budget
Carryover Fund Balance $655,774 $722,331 $696,716 $640,318 617,131 617,131
Revenues:
CTBID Assessment $1 per room night 1,205,851 1,246,944 1,333,001 1,088,859 800,000 1,200,000
Interest Earnings 1,658 2,535 26,920 21,385
Total Estimated Revenues 1,207,509 1,249,479 1,359,921 1,110,244 800,000 1,200,000
Expenditures:
2% Admin. Fee -City 2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID 24,116 24,896 26,644 21,045 16,000 24,000
CCVB Payment To operate visitor center, market and promote
Carlsbad 978,612 1,130,216 1,244,575 1,040,326 800,000 800,000
Staff support Staff support to the CTBID -2% of revenues 19,224 16,972 15,649 20,446 16,000 24,000
Professional Services Civitas Contract 32,960 12,000
CTBID Grants Grant program established by CTBID Board 119,000 103,011 129,451 18,654 75,000 35,000
Total Expenses 1,140,952 1,275,095 1,416,319 1,133,431 907,000 895,000
Ending Fund Balance Contingency for Revenue shortfall $722,331 $696,716 $640,318 $617,131 510,131 922,131
•
~JYJ.JA.$
QUESTIONS?
• ~JYJ.JAS -·~