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Home My WebLink About2021-05-19; Carlsbad Golf Lodging Business Improvement District; 5-21-56; Approve the Annual Report of the Carlsbad Golf Lodging Business Improvement DistrictCARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT AGENDA BILL Approve the Annual Report of the AB# 5-21-56 Carlsbad Golf Lodging Business CTBID STAFF MTG. 5-19-21 Improvement District GENERAL COUNSEL RECOMMENDED ACTION: Adopt a resolution approving the Annual Report of the Carlsbad Golf Lodging Business Improvement District (CGLBID) and submit the report to the City Council for approval at a June 2021 meeting. ITEM EXPLANATION: In accordance with Section 36533 of the California Streets and Highways Code, the CGLBID Advisory 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 is to contain: O Any proposed changes to the boundaries of the CGLBID. O The activities to be provided for that fiscal year. O Estimate of the cost of providing those activities (i.e., budget) O The method and basis of levying the assessment. •The amount of any surplus or deficiency revenues to be carried over from the previous year. O The amount of any other contributions Staff has prepared the attached report (included as an attachment to Exhibit 1) which includes the above items. Staff recommends that the Advisory Board approve the attached report for presentation to the City Council at a June 2021 meeting. FISCAL IMPACT: None. ENVIRONMENTAL IMPACT: This action does not qualify as a project under the California Environment Quality Act ("CEQA") and will not have a physical adverse effect on the environment. (CEQA Guideline 15378(b).) EXHIBITS: 1. Resolution approving annual report. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2468, cheryl.gerhardt (carlsbadca.gov DocuSign Envelope ID: 2E1F3AE6-607E-413F2-133B7-54B2455EOCEF RESOLUTION NO. 2021-7SG A RESOLUTION OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT (CGLBID) ADVISORY BOARD APPROVING THE ANNUAL REPORT FOR FISCAL YEAR 2021-22 WHEREAS, the CGLBID was formed in accordance with California Government Code Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code Section 36500 et. seq.); and WHEREAS, California Streets and Highways Code Section 36533 requires the CGLBID Advisory Board to present an annual report to the City Council for its 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, an Annual Report has been prepared for the 2021-22 fiscal year; and WHEREAS, the CGLBID Advisory Board wishes to approve the Annual Report; and WHEREAS, the CGLBID Advisory Board wishes to submit the report to the City Council for approval; and NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Golf Lodging Business Improvement District Advisory Board, as follows: 1.That the above recitations are true and correct. 2.The Annual Report shown at Exhibit A is approved in its entirety. 3.That the Annual Report will be presented to the City Council for its approval at a June 2021 meeting. /// /1/ /// /// /// /// /// / / /// DocuSign Envelope ID: 2E1F3AE6-607E-4BF2-B3B7-5462455EOCBF PASSED, APPROVED, AND ADOPTED at a special meeting of the Carlsbad Golf Lodging Business Improvement District Advisory Board on the 19 day of May 2021, by the following vote to wit: AYES: Stripe, Gray, Rauch, Hughes NAYS: n/a ABSENT: Stull ABSTAIN: n/a 1104 Stvirt. Tim Stripe Chair ATTEST: ( 1--lerfo7 GorneZ BARBARA ENGLESON Depuij cif() C)ef,-( Pro Tem Clerk of the Carlsbad Golf Lodging Business Improvement District EXHIBIT A Carlsbad Golf Lodging Business Improvement District (CGLBID) 2021-2022 Annual Report Method of Assessment: The CGLBID includes all hotel businesses in the City of Carlsbad that have elected to participate in the district. The assessment shall be levied on all hotel businesses, that have elected to participate in the district, within the City of Carlsbad based upon a flat fee of $2.00 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 $2.00 per occupied room per night in revenues for the previous month. Assessment Funding Purpose: The proceeds of the CGLBID assessment shall be spent to promote golf-related tourism within the boundaries of the CGLBID, as well as marketing related capital improvements such as golf-related signage, golf related equipment and to pay for related administrative costs. 2020-21 Work Plan: The CGLBID was established in January 1, 2013. For the initial period the district, Fiscal Year 2012-2013 (1/1/13-6/30/13) and the next fiscal year 2013-14, three hotels; the Sheraton Carlsbad, the Park Hyatt Aviara and the Grand Pacific Palisades Hate', opted into the district. In 2014-15 the Carlsbad by the Sea Resort opted into the district, in 2017-18 Omni La Costa Resort opted into the district, in 2018-19 the Westin Carlsbad Resort opted into the district, and in 2020-21 the Cape Rey Beach Hilton Resort and the Hilton Garden Inn opted into the district. These eight hotels are expected to collect a total of $325,000 in CGLBID Assessments in Fiscal Year 2020-21. Due to the closure of many of the hotels during Fiscal Year 2020-21 due to COVID, expenditures for Fiscal Year 2020-21 are only estimated to be $202,000. Each assessed business determines how to spend the funds collected by their respective property provided the expenditures are for an approved golf related expense. Reimbursement of these expenses are made quarterly upon approval from the advisory board up to the amount collected per property minus administrative fees. The administrative fees pay for the collection of assessments and administration of the district. Monies not spent by the end of the fiscal year will carry forward to the next fiscal year. For Fiscal Year 2021-20, it is estimated that these eight hotels will collect a total of $650,000 in CGLBID assessments. Based on this revenue estimate and the carryforward amounts from the previous fiscal year, the budgeted amount for reimbursement to the hotels is $800,000. This amount will be available to the assessed hotels for reimbursement. Administrative fees and staff support for Fiscal Year 2021-22 are budgeted at $26,000, which is 4% of the revenues. Detail of the 2021-22 budget is shown on the following page. 2021-22 CGLBID Budget Program Areas Description 2017-18 Actuals .. 2018-19 Actuals 2019-20 Actual 2020-21 Budget Actuals as of 4/30/2021 Projected 2020-21 Recommended 2021-22 Budget Carryover Fund Balance $136,587 3344,804 $291,861 $172,432 172,432 172,432 295,272 Revenues: CGLBID Assessment * $2 per room night 681,703 719,740 534,264 500,000 237,545 325,000 650,000 Interest Earnings -805 11,142 6,154 -1,151 0 Total Estimated Revenues 680,898 730,882 540,418 500,000 236,394 325,000 650,000 Expenditures: 13,633 14,394 10,684 10,000 4,071 6,500 13,000 2% Admin. Fee - City For collection of CGLBID assessment and accounting for CGLBID - 2% of CGLBID assessment revenue Reimbursement to member hotels for golf related Reimbursements expenditures Staff support Staff support to the CGLBID - 2% of CGLBID assessment revenue 451,341 7,707 761,651 7,780 641,382 7,781 500,000 10,000 189,660 4,106 189,660 6,000 800,000 13,000 Total Expenses 472,681 783,825 659,847 520,000 197,837 202,160 826,000 Ending Fund Balance Contingency for Revenue shortfall $344,804 $291,861 $172,432 $152,432 $210,989 295,272 119,272 Member Hotels opting into the District: * FY2014-15 - Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, and Carlsbad by the Sea Resort. " FY2017-18 - Omni La Costa Resort. * FY2018-19 - Westin Carlsbad Resort. * FY2020-21 - Hilton Garden Inn, and Cape Rey Beach Hilton Resort.