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HomeMy WebLinkAbout2019-06-11; City Council; Resolution 2019-086RESOLUTION NO. 2019-086 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE REPORT OF THE CARLSBAD GOLF LODGING BUSINESS IMPROVEMENT DISTRICT (CGLBID) , AND CONTINUING THE CGLBID PROGRAMS AND ASSESSMENTS FOR FISCAL YEAR 2019-20 EXHIBIT 1 WHEREAS, the CGLBID was formed in accordance with the California Government Code Parking and Business Improvement Area Law of 1989 (Sections 36500, et. Seq. of the Streets and Highways Code); and WHEREAS, Section 36533 of the Code requires the CGLBID Advisory Board to present a report to the City Council for their 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 report has been submitted to the City Council for Fiscal Year 2019-20; and WHEREAS, Section 36535 (d) of the Streets and Highways Code of the State of California, allows the City Council to " ... adopt a resolution continuing the program and assessments as levied in the then current year without change, and that resolution shall constitute the levy of an assessment for the fiscal year referred to in the report"; and WHEREAS, the City Council must adopt a new resolution each year in order to levy an assessment for that fiscal year. 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 report is approved as submitted by the Board of Directors for the Carlsbad Golf Lodging Business Improvement District. (Attachment A) 3. That the program and assessment as levied in the current fiscal year (2018-19) shall continue without change. June 11, 2019 Item #15 Page 3 of 11 EXHIBIT 1 PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of Carlsbad on the 11th day of June, 2019, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton. None. None. MATT HALL, Mayor ~~ ..ft-BARBARA ENGLESON, City Clerk (SEAL) June 11, 2019 Item #15 Page 4 of 11 ATTACHMENT A Carlsbad Golf Lodging Business Improvement District (CGLBID) 2019-2020 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 CGLBI D 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. 2018-19 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; the Sheraton Carlsbad, the Park Hyatt Aviara and the Grand Pacific Palisades Hotel, opted into the district. In 2014-15 the Carlsbad by the Sea Resort opted into the district, in 2017-18 Omni La Costa Resort opted into the district, and in 2018~19 the Westin Carlsbad Resort opted into the district. These six hotels are expected to collect a total of $712,000 in CGLBID Assessments in Fiscal Year 2018-19. 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 2019-20, the district will have six hotels. It is estimated that these six hotels will collect a total of $733,000 in CGLBID assessments. Based on this revenue estimate, the budgeted amount for reimbursement to the hotels is $704,000. This amount plus any carry forwards from the previous fiscal year will be available to the assessed hotels for reimbursement. Administrative fees for Fiscal Year 2019-20 are budgeted at $29,000, which is 4% of the revenues. Detail of the 2019-20 budget is shown on the following page. June 11, 2019 Item #15 Page 5 of 11 2019-20 CGLBID Budget 2016-17 2016-17 2017-18 2018-19 Actuals as of Projected Recommended Program Areas Description Actuals Actuals Actuals Budget 4/30/2019 2018-19 Actuals 2019-20 Budget Carryover Fund Balance $169,707 $136,587 $344,804 $344,804 344,804 344,804 275,673 Revenues: CGLBID Assessment * $2 per room night 428,949 681,703 826,000 558,388 712,000 733,000 Interest Earnings 786 -805 0 8,777 9,000 0 Total Estimated Revenues 429,735 680,.898 826,000 567,165 721,000 733,000 Ex12enditures: 2% Admin. Fee -City For collection of CGLBID assessment and accounting for CGLBID -2% of CGLBID assessment revenue 8,579 13,633 16,500 10,841 14,240 14,500 Reimbursements Reimbursement to member hotels for golf related expenditures 445,516 451,341 793,000 761,651 761,651 704,000 Staff support Staff support to the CGLBID -2% of CGtBID assessment revenue 8,759 7,707 16,500 5,450 14,240 14,500 Total Expenses 462,854 472,681 826,000 777,942 790,131 733,000 Ending Fund Balance Contingency for Revenue shortfall $136,587 $344,804 $344,804 $134,027 275,673 275,673 Member hotels: * FY2014-15 thru FY 2016-17 -Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, and Carlsbad by the Sea Resort. * FY2017-18 -Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the.Sea Resort, and Omni La Costa Resort. * FY2018-19 -Sheraton Carlsbad., Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the.Sea Resort, Omni La Costa Resort and Westin Carlsbad. * FY2019-20 -Sheraton Carlsbad, Park Hyatt Aviara, Grand Pacific Palisades, Carlsbad by the ·sea Resort, Omni La Costa Resort and Westin Carlsbad. June 11, 2019 Item #15 Page 6 of 11