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Home My WebLink About2021-05-19; Carlsbad Tourism Business Improvement District; 05-21-204; Approve the Annual Report of the Carlsbad Tourism Business Improvement DistrictCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL Approve the Annual Report of the AB# 05-21-204 Carlsbad Tourism Business CTBID STAFF (1,4' MTG. 5-19-21 Improvement District GENERAL COUNSEL RECOMMENDED ACTION Adopt a resolution approving the Annual Report of the Carlsbad Tourism Business Improvement District (CTBID) 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 CTBID 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 for the improvements and activities described in the report. This report is to contain: o Any proposed changes to the boundaries of the CTBID. O The activities to be provided for that fiscal year. O An estimate of the cost of providing those activities (i.e., budget) •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 is 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 Guidelines 15378(b)(5).) EXHIBITS: 1. Resolution approving annual report DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2468, cheryl.gerhardt @carlsbadca.dov DocuSign Envelope ID: OBC45232-671E-4D06-828D-563C499474B6 RESOLUTION NO. 2021-3 A RESOLUTION OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD APPROVING THE ANNUAL REPORT FOR FISCAL YEAR 2021-22 WHEREAS, the Carlsbad Tourism Business Improvement District (CTBID) was formed in accordance with the 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 CTBID 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 for 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 CTBID Advisory Board wishes to approve the Annual Report; and WHEREAS, the CTBID Advisory Board wishes to submit the report to the City Council for approval. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Tourism Business Improvement District Advisory Board as follows: 1.That the above recitations are true and correct. 2.That 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. II- I" /// /// /// /// /// DocuSign Envelope ID: OBC45232-671E-4006-8280-563C499474B6 PASSED, APPROVED, AND ADOPTED at a special meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District on this 19 day of May 2021, by the following vote to wit: AYES: Stripe, Rauch, Gray, Canepa, Hughes, Chapin, Becerra NOES: Oa ABSENT: n/a 1-11%Sfr TIM STRIPE Chair ATTEST: iler,7101 6orne2/ . Dept Ci cjetv .1urBARBARA ENGLESON Pro Tern Clerk of the Carlsbad Tourism Business Improvement District Attachment A Carlsbad Tourism and Business Improvement District (CTBID) 2021-2022 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 a rate of 2% of gross short-term room 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 revenues 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. 2020-21 Work Plan: Last fiscal year, the CTBID assessment generated approximately $1,100,000 in revenue. The CTBID contracted with Carlsbad Convention and Visitors Bureau (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. In addition, $30,000 in grants were awarded to fund events to increase the overnight stays in Carlsbad hotels. The CTBID 2021-22 budget includes a funding level of $3,000,000 for Visit Carlsbad. This increased funding level is the result of the increase in assessment revenue due to the modification of the assessment rate from $1 per room night to 2% of gross short-term room revenue. This assessment increase was approved during Fiscal Year 2020-21, and went into effect on November 1, 2020. The services provided by Visit Carlsbad will focus on post COVID-19 marketing efforts. The majority of this will be done by through promotional programs and group sales. Visit Carlsbad also has plans to hire a CEO/President during Fiscal Year 2021-22. The CEO will help develop a business plan for Visit Carlsbad's future. The Visit Carlsbad Board will also review the CTBID grant applicants, for which there is $100,000 allocated this year, and make the funding recommendations to the CTBID Board. Detail of the 2021-22 budget is shown on the following page. 2020-21 Recommended CTBID Budget Program Areas Description 2017-18 Actuals 2018-19 Actual 2019-20 Actual 2020-21 Budget 2020-21 Actuals as of 12/31/20 Projected 2020-21 Actuals Recommended 2021-22 Budget, Carryover Fund Balance $722,331 $696,716 $640,318 $617,139 617,139 1,033,139 Revenues: CTBID Assessment 2% of Room Revenue (was $1 per room night prior to 11/1/20) 1,246,944 1,333,001 1,088,860 800,000 535,851 1,100,000 3,600,000 Interest Earnings 2,535 26,920 21,384 -7,006 Total Estimated Revenues 1,249,479 1,359,921 1,110,244 800,000 528,845 1,100,000 3,600,000 Expenditures: 2% of CTBID assessment revenue, for collection of 2% Admin. Fee - City CTBID assessment and accounting for CTBID 24,896 26,644 21,045 16,000 6,470 22,000 72,000 CCVB Payment To operate visitor center, market and promote Carlsbad 1,130,216 1,244,575 1,040,326 800,000 266,667 600,000 3,000,000 Staff support Staff support to the CTBID 16,972 15,649 20,438 16,000 8,963 20,000 50,000 Professional Services Civitas Contract 32,960 12,000 12,000 CTBID Grants Grant program established by CTBID Board 103,011 129,451 18,654 75,000 30,000 100,000 Total Expenses 1,275,095 1,416,319 1,133,423 907,000 294,100 684,000 3,222,000 Ending Fund Balance Contingency for Revenue shortfall $696,716 $640,318 _ $617,139 $510,139 1,033,139 1,411,139