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Home My WebLink About2022-06-21; City Council; ; Levy of Annual Assessment for Carlsbad Tourism Business Improvement District for Fiscal Year 2022-2023CA Review CKM Meeting Date: June 21, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Matt Sanford, Innovation & Economic Development matt.sanford@carlsbadca.gov, 442-339-5987 Subject: Levy of Annual Assessment for Carlsbad Tourism Business Improvement District for Fiscal Year 2022-2023 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 2022-23. 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 7, 2022, the City Council approved the Advisory Board’s annual report, declared an intention to levy and collect an annual assessment in fiscal year 2022-23 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 21, 2022 Item #11 Page 1 of 5 Each fiscal year, before the City Council may levy the assessment, the following steps are required by state law: •The district’s 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 7, 2022, the City Council approved the district Advisory Board’s annual report, adopted a resolution of intention to levy and collect an assessment for the 2022-23 fiscal year, and set a public hearing on the levy of the assessment for June 21, 2022. 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 2022- 23. Options The City Council can either: 1)Adopt a resolution confirming the Advisory Board’s report and levying an assessment for fiscal year 2022-23. 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 2022-23 and the district’s efforts to promote tourism will not receive the funding. Fiscal Analysis For fiscal year 2022-23, the 2% of gross short-term room rental revenue assessed by the district is estimated to generate $5,300,000 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 2022-23, the assessment will go into effect July 1, 2022. 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 21, 2022 Item #11 Page 2 of 5 Environmental Evaluation 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 This item was noticed 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’s Office 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 21, 2022 Item #11 Page 3 of 5 RESOLUTION NO. 2022-151 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 2022-23 FOR THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT {CTBID) Exhibit 1 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 7, 2022, 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 2022- 23, and (3) setting a public hearing on the levy of the assessment for June 21, 2022 (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 21, 2022, 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 2022-23, beginning July 1, 2022 through June 30, 2023. June 21, 2022 Item #11#11 Page 4 of 5 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 21st day of June, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. MATT HALL, Mayor FAVIOLA MEDINA, City Clerk Services Manager (SEAL) June 21, 2022 Item #11#11 Page 5 of 5 t:/vL Carlsbad Tourism Business Improvement District Levy of Annual Assessment -Public Hearing Zach Korach, Finance Director June 21, 2022 {city of Carlsbad June 7, 2022 Council Meeting •City Council approved annual report •Adopted Resolution of intention to levy and collect annual assessment in FY 2022-23 •Scheduled public hearing for June 21, 2022 {city of Carlsbad Carlsbad Tourism Business Improvement District Hearing Process •Hold Hearing •Consider Protests •If majority protest, no further steps for one year •If no majority protest, adopt resolution confirming the annual report and levying the assessment for FY 2022-23 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ I ■ {city of Carlsbad Carlsbad Tourism Business Improvement District -Public Hearing Public Hearing ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ I ■ {city of Carlsbad