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Home My WebLink About2022-05-18; Carlsbad Golf Lodging Business Improvement District; ; CGLBID Annual ReportCARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT Staff Report Meeting Date: May 18, 2022 Subject: CGLBID Annual Report 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 2022 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 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: • Any proposed changes to the boundaries of the CGLBID • The activities to be provided for that fiscal year • 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 • The amount of any other contributions Staff has prepared the annual report (Attachment A to Exhibit 1) which includes the above items. Staff recommends that the advisory board approve the annual report for presentation to the City Council at a June 2022 meeting. Fiscal Impact None. Environmental Impact 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. Exhibits 1. Resolution DocuSign Envelope ID: 663E4887-0BB5-4086-982D-6E8620C53731 RESOLUTION NO. 2022-95G A RESOLUTION OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD APPROVING THE ANNUAL REPORT FOR FISCAL YEAR 2022-23 EXHIBIT 1 WHEREAS, the Carlsbad Golf Lodging Business Improvement District (CGLBID} was formed in accordance with the California 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 for the improvements and activities described in the report; and WHEREAS, the Annual Report has been prepared for the 2022-23 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. 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. That the Annual Report {Attachment A} is approved in its entirety. 3. That the Annual Report will be presented to the City Council for its approval at a June 2022 meeting. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Advisory Board of the Carlsbad Golf Lodging Business Improvement District on this 18th day of May 2022, by the following vote to wit: AYES: Canepa, Gray, Rauch, Stripe, Stull NAYS: None ABSENT:None ABSTAIN : None DocuSign Envelope ID: 663E4BB7-0BB5-40B6-982D-6E8620C53731 EXHIBIT 1 TIM STRIPE, Chair .fr--FAVIOLA Mif/t::;:k Services Manager {SEAL) ATTACHMENT A Carlsbad Golf Lodging Business Improvement District (CGLBID) 2022-2023 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. 2022-23 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 -Sheraton Carlsbad, Park Hyatt Aviara and Grand Pacific Palisades Hotel -opted into the district. In fiscal year 2014-15 Carlsbad by the Sea Resort opted into the district, in fiscal year 2017-18 Omni La Costa Resort opted into the district, in 2018-19 Westin Carlsbad Resort opted into the district, and in 2020-21 Cape Rey Beach Hilton Resort and the Hilton Garden Inn opted into the district. These eight hotels are expected to collect a total of $764,000 in CGLBID assessments in fiscal year 2021-22. Expenditures for fiscal year 2021-22 are estimated to be $450,000. 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 2022-23, it is estimated that these eight hotels will collect a total of $770,000 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 2022-23 are budgeted at $30,800, which is 4% of the revenues. Detail of the 2022-23 budget is shown on the following page. 2022-23 CGLBID Budget 2019-20 2020-21 2021-22 Actuals as of Projected Recommended Program Areas Description Actual Actual Budget 4/30/2022 2021-22 2022-23 Budget Carryover Fund Balance $291,861 $172,432 $307,491 307,491 307,491 597,411 Revenues: CGLBID Assessment * $2 per room night 534,264 335,402 650,000 617,500 764,000 770,000 Interest Earnings 6,154 1,544 1,088 1,200 0 Total Estimated Revenues 540,418 336,946 650,000 618,588 765,200 770,000 Expenditures: 2% Admin. Fee -City For collection of CGLBID assessment and accounting for CGLBID -2% of CGLBID assessment revenue 10,685 7,108 13,000 12,350 15,280 15,400 Reimbursements Reimbursement to member hotels for golf related expenditures 641 ,382 189,660 800,000 294,900 450,000 800,000 Staff support Staff support to the CGLBID -2% of CGLBID assessment revenue 7,780 5,119 13,000 5,661 10,000 15,400 Total Expenses 659,847 201 ,887 826,000 312,911 475,280 830,800 Ending Fund Balance Contingency for Revenue shortfall $172,432 $307,491 $131,491 $613,168 597,411 536,611 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.