HomeMy WebLinkAbout2020-09-01; City Council; CS-381; AN ORDINANCE AMENDING CARLSBAD MUNICIPAL CODE SECTION 3.37.050 TO MODIFY THE ASSESSMENT FOR THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICTSept. 1, 2020 Item #4 Page 11 of 34
ORDINANCE NO. CS-381
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AMENDING CARLSBAD MUNICIPAL CODE SECTION 3.37.050
TO MODIFY THE ASSESSMENT FOR THE CARLSBAD TOURISM BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, the City of Carlsbad established the Carlsbad Tourism Business Improvement District
(CTBID) in 2005 under the Parking and Business Improvement Area Law of 1989 (California Streets and
Highway Code § 36500 et seq.); and
WHEREAS, the CTBID generates funds 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's boundaries; and
WHEREAS, an appointed advisory board (Board) makes recommendations on expenditures for
the CTBID's programs and activities, makes recommendations for the CTBID's annual budget, and
provides end-of-year financial report; and
WHEREAS, the CTBID assessment is currently a flat fee of $1 per occupied room per night for all
transient occupancies; and
WHEREAS, the assessment has not been modified since the CTBID was established; and
WHEREAS, on June 26, 2020, the Board sent the City Council a letter recommending the City
Council modify the assessment to be 2% of gross short-term room rental revenue for all transient
occupancies; and
WHEREAS, the additional assessment revenue will allow the CTBID to provide improved services
and activities to assessed businesses; and
WHEREAS, on July 14, 2020, the City Council adopted a Resolution of Intention to modify the
assessment as recommended; and
WHEREAS, the City Council conducted a public meeting on August 25, 2020 to receive public
comments and testimony on the assessment modification; and
WHEREAS, the City Council conducted a public hearing on September 1, 2020 to hear and
consider all protests against the assessment modification; and
WHEREAS, all affected businesses were notified of the Resolution of Intention and of the public
meeting and public hearing dates; and
Sept. 1, 2020 Item #4 Page 12 of 34
WHEREAS, the City Council did not receive written protests from affected business owners who
will pay 50% or more of the modified assessment levies; and
WHEREAS, the City Council received, approved, and confirmed a modified FY 2020-21 annual
report for the CTBID.
NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ordain as follows:
1. The above recitations are true and correct.
2. As of Nov. 1, 2020, Carlsbad Municipal Code Section 3.37.050 is amended to read:
3.37.050 Levy and collection of assessments.
The CTBID will include all hotel businesses located within the CTBID
boundaries. An assessment shall be levied on all hotel businesses, existing and
future, within the City of Carlsbad of two percent (2%) of gross short-term
room rental revenue for all transient occupancies as defined in Section
3.12.020 of the Carlsbad Municipal Code. The amount of the 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 collected monthly, based on two percent (2%) of gross
short-term room rental revenue for the previous month. New hotel businesses
within the boundaries will not be exempt from the levy of assessment
authorized by Section 36531. Assessments pursuant to the CTBID shall not be
included in gross room rental revenue for purpose of determining the amount
of the transient occupancy tax. No assessment shall be imposed upon
occupancies of any federal or State of California officer or employee when on
official business nor on occupancies of any officer or employee of a foreign
government who is exempt by reason of express provision of federal law or
international treaty.
EFFECTIVE DATE: This ordinance shall be effective 30 days from the date of its adoption; and
the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a
summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper
of general circulation in the City of Carlsbad within fifteen days after its adoption.
Sept. 1, 2020 Item #4 Page 13 of 34
INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 25th
day of August, 2020, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 1st day of September, 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
APPROVED AS TO FORM AND LEGALITY:
CELIA A. BREWER, City Attorney
(SEAL)