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HomeMy WebLinkAbout2023-06-27; Carlsbad Tourism Business Improvement District; Resolution 2023-006RESOLUTION NO. 2023-006 A RESOLUTION OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD AUTHORIZING THE CHAIRPERSON TO EXECUTE AN AMENDMENT TO EXTEND THE AGREEMENT WITH CARLSBAD CONVENTION AND VISITORS BUREAU (VISIT CARLSBAD) FOR TOURISM PROMOTION SERVICES WHEREAS, on November 15, 2005, the City Council of the City of Carlsbad adopted Ordinance No. NS-778 enacting Chapter 3.37 of the Carlsbad Municipal Code and creating the Carlsbad Tourism Business Improvement District (CTBID); and WHEREAS, the primary purpose of the CTBID is to promote tourism within the City of Carlsbad; and WHEREAS, the City Council has authorized the CTBID Advisory Board to conduct the business of the CTBID in the time, place and manner that best suits the needs of the advisory board, subject to the control of federal, state and local laws governing the activities of a business improvement districts; and WHEREAS, on June 28, 2011, the City Council adopted Resolution 2011-150 confirming the Carlsbad Tourism Business Improvement District (CTBID) Advisory Board's powers and duties to contract on behalf of the CTBID for goods and services all for the benefit of the CTBID and its purpose and mission; and WHEREAS, on May 18, 2022, the CTBID Advisory Board adopted Resolution 2022-7 authorizing an agreement between the CTBID and the Carlsbad Convention and Visitors Bureau (DBA Visit Carlsbad) for tourism promotion and related services. This agreement allows for an extension for a one-year period; and WHEREAS, on April 18, 2023, the City Council of the City of Carlsbad formed a new Carlsbad Tourism Business Improvement District (New CTBID) under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et. seq.); and WHEREAS, Visit Carlsbad will be the Owners' Association under the New CTBID and will implement the New CTBID's management district plan; and WHEREAS, assessments under the New CTBID will begin on July 1, 2023; and WHEREAS, anticipating the disestablishment of the current CTBID by the end of fiscal year 2023-24 and to avoid subjecting hotel businesses to double assessments, the City Council did not levy assessments under the current CTBID for the fiscal year 2023-24; and WHEREAS, the current CTBID ha s available funds from prior fiscal year assessments to fund tourism promotion and visitor services for the benefit of hotel businesses until the New CTBID receives sufficient assessment revenue to begin providing these services; and WHEREAS, to ensure uninterrupted tourism promotion and visitor services for the hotel businesses and the utilization of the current CTBID's available funds for the purposes for which the assessments were col lected, the CTBID Advisory Board and Visit Carlsbad desire to amend the agreement to extend it for a period of one year or until the current CTBID is disestablished by the City Council, whichever period is less; and WHEREAS, Visit Carlsbad has agreed to provide tourism promotion and related services under the terms and conditions of the amendment no. 1 in Attachment A. 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 subject to the review and approval as to form by the CTBID General Counsel, and the contract's execution by Visit Carlsbad, the Chairperson is authorized to execute the amendment to extend the agreement in Attachment A between the CTBID and Visit Carlsbad to provide tourism promotion services. PASSED, APPROVED, AND ADOPTED at a Special Meeting of the Carlsbad Tourism Business Improvement District Advisory Board on the 27th day of June 2023, by the following vote to w it: AYES: NAYS: ABSENT: ABSTAIN: Becerra, Canepa, Chapin, Mason None None None ~ BILL CANEPA, Vice Chair ~ SHERRY FREISINGER, City Clerk (SEAL) ~''"'''""'""" ;$,"''G CA b,,,,,,, ,$i-0~ r,'.I ,,✓, s~ ...•. ~~'✓-✓-ff,-.../ '•)~% ::_,_ ... ~~ ~O i ~') 7.._A\c,% \\.~w)i ~ • ...... \\ti ...... ·· $ "'0f "1i..'"•··! ... •··~,9l-,/ 11,,11 IFO~~,,,~ l////illli\1\\\1\1'' DocuSign Envelope ID: 551D5A7C-FE5F-49DA-847D-F7EC1 E26695C Attachment A AMENDMENT NO. 1 TO EXTEND THE AGREEMENT FOR TOURISM PROMOTION AND VISITOR SERVICES CARLSBAD CONVENTION AND VISITORS BUREAU (VISIT CARLSBAD) This Amendment No. 1 is entered into and effective as of the 6th day of _______ J_u.....:l y'------' 201..L, extending the agreement dated July 13, 2022 (the "Agreement") by and between the Carlsbad Tourism Business Improvement District (CTBID), and the Carlsbad Convention and Visitors Bureau (Visit Carlsbad), a non-profit, private organization ("Contractor") (collectively, the "Parties") for tourism promotion and visitor services. RECITALS A. On April 18, 2023, the City Council of the City of Carlsbad formed a new Carlsbad Tourism Business Improvement District (New CTBID) under the Property and Business Improvement District Law of 1994 (California Streets & Highways Code Section 36600et. seq.). 8 . Visit Carlsbad will be the Owners' Association under the New CTBID and will implement the New CTBID's management district plan. C. Assessments under the New CTBID will begin on July 1, 2023. D. Anticipating the disestablishment of the current CTBID by the end of fiscal year 2023-24 and to avoid subjecting hotel businesses to double assessments, the City Council did not levy assessments under the current CTBID for the fiscal year 2023- 24. E. The current CTBID has available funds from prior fiscal year assessments to fund tourism promotion and visitor services for the benefit of hotel businesses until the New CTBID receives sufficient assessment revenue to begin providing these services. F. To ensure uninterrupted tourism promotion and visitor services for the hotel businesses and the utilization of the current CTBID's available funds for the purposes for which the assessments were collected, the Parties desire to extend the Agreement for a period of one year or until the current CTBI D is disestablished by the City Council, whichever period is less. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained in this Amendment No. 1, the CTBID and Contractor agree as follows: 1. The Agreement, as may have been amended from time to time, is extended for a period of one year or until the CTBID is disestablished by the City Council, whichever period is less. 2. The services to be performed under this Amendment No . 1 are those specified in Exhibit "A" of the Agreement. These services are authorized uses of assessment proceeds under Carlsbad Municipal Code Section 3.37.070 and , therefore, the extension of these services by this Amendment No. 1 would not be a modification of activities under California Government Code Section 36540. 3. The allocation of compensation for the services to be performed under this Amendment No. 1 shall be in the approximately same percentages as specified in Exhibit "B" of the Agreement; however, the total compensation for the services to be performed under this Amendment No. 1 shall not exceed the CTBID assessment balance ending July 31, 2023 for assessments collected through the month of June 2023. 4. Payment will be made in monthly installments -the first installment will be paid upon execution of this Amendment, for a total of $666,666.66. Every installment City Attorney Approved Version 12/28/2022 DocuSign Envelope ID: 551 D5A7C-FE5F-49DA-847D-F7EC1 E26695C Attachment A thereafter will be made each month for a total of $666,666.66 until funds are exhausted. 5. All other provisions of the Agreement, as may have been amended from time to time, shall remain in full force and effect. 6. All requisite insurance policies to be maintained by the Contractor pursuant to the Agreement, as may have been amended from time to time, shall include coverage for this Amendment. 7. The individuals executing this Amendment and the instruments referenced on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions hereof of this Amendment. CONTRACTOR CARLSBAD By: By: r,,,s~ _, , --......._ (sign here) Rob Stirling, Chair (print name/title) (s~re) Michelle Zwirek, Secretary (print name/title) By: fWft: ATTEST: ~ &,J,jlU, (r,r SHERRY FREISINGER City Clerk If required by City, proper notarial acknowledgment of execution by Contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups: Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, City Attorney BY: !,,J,wj{t.r :f)w., Deputy City Attorney City Attorney Approved Version 12/28/2022 2