HomeMy WebLinkAbout2021-06-22; City Council; ; Levy of Annual Assessment for Carlsbad Tourism Business Improvement District for Fiscal Year 2021-22Meeting Date: June 22, 2021
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Cheryl Gerhardt, Finance
cheryl.gerhardt@carlsbadca.gov, 760-602-2468
Subject: Levy of Annual Assessment for Carlsbad Tourism Business Improvement
District for Fiscal Year 2021-22
District: All
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 district Advisory Board’s annual report and levying the assessment for fiscal year 2021-22.
Executive Summary
The Carlsbad Tourism Business Improvement District 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 to pay the costs of the improvements and activities
described in the report. At its meeting on June 8, 2021, the City Council approved the Advisory
Board’s annual report, declared an intention to levy and collect an annual assessment in fiscal
year 2021-22 and set a public hearing on the levying of the proposed assessments.
The next required step in this annual process is for the City Council to hold this public hearing
on the levying of the assessment. At the conclusion of the public hearing, in the absence of a
majority protest against the levying of the assessment by businesses in the district that will pay
50% or more of the assessment, the City Council may confirm the Advisory Board’s annual
report and levy the assessment.
Discussion
The district was formed in 2005 under the Parking and Business Improvement Law of 1989
(California Streets and Highways Code Section 36500 et seq.). It is funded by the levying and
collection of an assessment of 2% of gross short-term room rental revenue for all transient
occupancies within the city. The assessment proceeds to go the district, which 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. (Carlsbad Municipal Code Section 3.37.070.)
June 22, 2021 Item #6 Page 1 of 7
Each fiscal year, before the City Council may levy the assessment, the following steps are
required by state law:
• The district Advisory Board must prepare a report describing the improvements and
activities to be funded by the assessment and file the report with the City Clerk.
• The City Council must approve the report, adopt a resolution of intention to levy the
assessment, and set a public hearing date on the levy of the assessment.
• At the 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.1
• At the conclusion of the hearing, if there is no such majority protest, the City Council
may adopt a resolution confirming the Advisory Board’s report, which will constitute the
levy of the assessment for the fiscal year covered by the report.
At its meeting on June 8, 2021, the City Council approved the district Advisory Board’s annual
report, adopted a resolution of intention to levy and collect an assessment for the 2021-22
fiscal year, and set a public hearing on the levy of the assessment for June 22, 2021. The City
Clerk published a notice of the public hearing in the form and manner required by California
Streets and Highway Code Section 36534(b).
For the assessments to continue, in the absence of a majority protest, the City Council is
required to adopt a resolution confirming the Carlsbad Tourism Business Improvement District
Advisory Board’s report, which will constitute the levy of the assessment for fiscal year 2021-
22.
Options
The City Council can either:
1) Adopt a resolution confirming the Advisory Board’s report and levying an assessment for
fiscal year 2021-22. This will allow the city to levy and collect assessments in the coming
fiscal year.
2) Not approve the resolution confirming the Advisory Board’s report and levying an
assessment. The levying and collection of the assessments will not continue into fiscal
year 2021-22 and the district’s efforts to promote tourism will not receive the funding.
Fiscal Analysis
For fiscal year 2021-22, the 2% of gross short-term room rental revenue assessed by the district
is estimated to generate $3,600,000 in revenues to be used for the promotion of tourism.
Next Steps
If the City Council confirms the district Advisory Board’s report and levies the assessment for
fiscal year 2021-22, the assessment will go into effect July 1, 2021.
1 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 authorized to speak on behalf of the business owner.
June 22, 2021 Item #6 Page 2 of 7
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 keeping with the state's Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours before the 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 22, 2021 Item #6 Page 3 of 7
RESOLUTION NO. 2021-156
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, CONFIRMING THE ADVISORY BOARD'S REPORT AND LEVYING
AN ASSESSMENT FOR FISCAL YEAR 2021-22 FOR THE CARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT (CTBID)
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 8, 2021, 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 2021-
22, and (3) setting a public hearing on the levy of the assessment for June 22, 2021 (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 22, 2021, 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 2% of gross short-term room rental revenue
for all transient occupancies within the City of Carlsbad, 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 same manner as the payment of transient occupancy tax.
5.That the adoption of this resolution shall constitute the levy of the assessments for the
CTBID for fiscal year 2021-22, beginning July 1, 2021 through June 30, 2022.
June 22, 2021 Item #6 Page 4 of 7
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 22nd day of June, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
jtIneK f*`vr
BARBARA ENGLESON, City Clerk
(SEAL)
June 22, 2021 Item #6 Page 5 of 7
RESOLUTION NO. 2021-125
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 MAJORITY-PROTEST
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 of the
improvements and activities described in the report; and
WHEREAS, the CTBID Advisory Board submitted an annual report (Attachment A) to the City Council
for fiscal year 2021-22; and
WHEREAS, after the City Council approves the annual report, the City Council must adopt a
resolution declaring its intention to levy and collect assessments for fiscal year 2021-22; 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 2021-22 are included in Attachment A.
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) is approved as submitted by CTBID Advisory Board.
3.That for fiscal year 2021-22, the City Council intends to levy and collect an assessment of 2% of
gross short-term room revenue for each transient occupancy in the city.
4.That the City Council will hold a public hearing at 3 p.m. on June 22, 2021 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. If the majority protest is only against specified activities or
improvements, those activities and improvements will be eliminated for fiscal year 2021-22.
6.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 Regular Meeting of the City Council of the City of Carlsbad
on the 8th day of June, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
June 22, 2021 Item #6 Page 6 of 7
Per California Executive Order N-29-20, and in the interest of public health and safety, the CMWD is
temporarily taking actions to prevent and mitigate the effects of the COVID-19 pandemic by holding
CMWD Board and other public meetings online only. All public meetings will comply with public
noticing requirements in the Brown Act and will be made accessible electronically to all members of
the public seeking to observe and address the Board. You may participate by phone by signing up at
https://www.carlsbadca.govicityhall/clerk/meetings/default.asp by 2 p.m. the day of the meeting to
provide comments live by phone. You will receive a confirmation email with instructions about how to
call in. If you would like to participate in the public hearing in writing, email comments to
clerk@carlsbadca.gov. Comments received by 2 p.m. the day of the meeting will be shared with the
Board prior to the meeting. When e-mailing comments, please identify in the subject line the agenda
item to which your comments relate. All comments received will be included as part of the official
record. Written comments will not be read out loud. These participation procedures shall remain in
place during the period in which state or local health officials have imposed or recommended social
distancing measures.
If you challenge the assessment in court, you may be limited to raising only those issues raised by you
or someone else at the public hearing described in this notice, or in written correspondence to the City
of Carlsbad, Attn: Office of the City Clerk, 1200 Carlsbad Village Drive, Carlsbad, 92008, at or prior to
the public hearing.
PUBLISH DATE: JUNE 11, 2021 I CITY OF CARLSBAD
June 22, 2021 Item #6 Page 7 of 7