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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