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HomeMy WebLinkAbout2008-05-07; Carlsbad Tourism Business Improvement District; 0508-28; Adopt 2008-09 CTBID Annual Report and BudgetCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# MTG. DEPT. 0508-28 5-07-08 Admin Services Adopt 2008-09 Carlsbad Tourism Business Improvement District Annual Report and Budget DEPT. HEAD Qf^ GENERAL ^ COUNSEL f£^ RECOMMENDED ACTION: To adopt Resolution 2008-3 to approve the Carlsbad Tourism Business Improvement District 2008-09 annual report and budget. ITEM EXPLANATION: An ad hoc budget subcommittee met on April 18, 2008 to review the budget process and discuss the needs of the CTBID for the upcoming year. This committee, comprised of Tim Stripe and Bill Canepa, reviewed the financial position and needs of the CTBID. Based on this review, they are presenting the recommended budget shown as Exhibit 1 for the 2008-09 fiscal year. This budget includes estimated revenue of $785,000 and budgeted expenditures of $881,000. Included in these expenditures are budgets for contracts for services with the Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors Bureau at the current amount funded in 2007-08. FISCAL IMPACT: The 2008-09 budget includes estimated revenue of $785,000 and budgeted expenditures of $881,000. ENVIRONMENTAL IMPACT: This action does not approve any projects that will have a physical adverse affect on the environment so it falls within the general rule under CEQA that this is not a project (CEQA Regulation 153789(b)). EXHIBITS: 1. CTBID Annual Report 2. Resolution 2008-3 to approve the 2008-09 CTBID Annual Report and Budget. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED D DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER-SEE MINUTES D EXHIBIT 1 Carlsbad Tourism and Business Improvement District (CTBID) Annual Report 2008-2009 Method of Assessment: The CTBID includes all hotel businesses located within the CTBID boundaries. The assessment shall be levied on all hotel businesses, existing and future, within the City of Carlsbad based upon a flat fee of $1.00 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 $1.00 per occupied room per night in revenues for the previous month. Assessment Funding Purpose: 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 boundaries of the District. 2008-09 Work Plan: During the 2007-08 fiscal year the CTBID Board contracted with Reint Reinders and Associates (RR&A) to conduct a study on how Carlsbad tourism sales, marketing and visitors services should be conducted going forward. This study began in April 2008 and it is anticipated that it will be completed by July 2008. The outcome of this study may assist in determining future projects, programs or activities for the CTBID. In May 2008, the Carlsbad Tourism Business Improvement District Board approved renewing agreements with Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors Bureau for tourism promotion services for the period July 1, 2008 through June 30, 2009. If there are changes to be made in the future based on recommendations from the RR&A study, this will allow time for transition and implementation. These agreements require that these agencies continue to provide the services they have provided in the past as detailed below: Carlsbad Convention and Visitors Bureau (CCVB): Manage and coordinate marketing programs that position Carlsbad as a year-round leisure visitor destination in Southern California. • Increase brand awareness • Operate Visitor Information Center in the Historic Santa Fe Train Depot seven days per week. • Initiate familiarization tours by inviting the media to Carlsbad. • Promote local community events. • Develop private funding sources for the purpose of supplementing funds. • Support a full-time marketing campaign. • Provide semi-annual reports of the activity and expenses of the CCVB to the City. EXHIBIT 1 San Diego North Convention and Visitors Bureau (SDNCVB): Increase measurable visitor spending through the generation of group business leads from room night bookings and group events. Tactics include: • Phone solicitation/prospecting • Personal sales calls to targeted national and international businesses t Buyer site inspections • Meeting planner familiarization tours • Tour planner familiarization tours • Trade and travel show attendance • Direct mail campaigns t Product launches fro wholesale and airline vacation companies • Email solicitation and promotions • Reservation center educationals • E-commerce development • Quarterly reports are to be provided with performance measures. 2008-09 CTBID Budget Program Areas Description 2008-09 Budget Carryover Fund Balance Revenues: CTBID Assessment Projected at same level as 2007-08 Interest Earnings Total Estimated Revenues Expenditures: 2% Admin. Fee - City 324,982 775,000 10,000 CCVB Payment SDNCVB Payment Positioning Study* RR&A Contract** Staff support CTBID Grants Contingency Total Budgeted Expenses 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID $37,400/month, to operate visitor center, market and promote Carlsbad $9,167/month, to provide group sales Marketing Study Phase I Staff support to the CTBID Approved by Board at 3/18 meeting To be determined by the CTBID Board at a later date 785,000 16,500 448,000 110,000 0 16,500 40,000 250,000 Ending Fund Balance Contingency for Revenue shortfall 881,000 228,982 1 RESOLUTION NO. 2008-3 EXHIBIT 2 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADVISORY BOARD OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT 3 DISTRICT (CTBID) OF THE CITY OF CARLSBAD, CALIFORNIA, TO 4 APPROVE THE ANNUAL REPORT AND BUDGET 5 6 WHEREAS, the CTBID was formed in accordance with the California 7 Government Code Parking and Business Improvement Area Law of 1989 (Sections 8 36500, et. Seq. of the Streets and Highways Code), and 9 WHEREAS, Section 36533 of the Code requires the CTBID Advisory Board to present an annual report to the City Council's for their review and approval for each fiscal year for which assessments are to be levied and collected to pay the cost 12 for the improvements and activities described in the report; and 13 WHEREAS, an Annual Report has been prepared for the 2008-09 fiscal 14 year, and 16 WHEREAS, the Board of Directors of the Carlsbad Tourism Business 17 Improvement District wishes to approve the Annual Report and Budget; and 18 WHEREAS, the Board of Directors of the Carlsbad Tourism Business 1" Improvement District wishes to submit the report to the City Council for approval; and 20 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the 21 Carlsbad Tourism Business Improvement District of the City of Carlsbad, California, as 22 follows: 23 1. That the above recitations are true and correct. 25 2. That the Annual Report shown at Exhibit 1 is approved in its entirety 26 as the first report of the Board of Directors of the Carlsbad Tourism Business 27 Improvement District. 28 1 3. That the approved Annual Report and Budget of the Carlsbad Tourism 2 Business Improvement District will be presented to the City Council for its approval at a June 2008 meeting. 4 5 6 7 8 '" 9 /// 10 /// 11 /// 12 /// 13 /// 14 /// 15 16 17 18 '" 19 20 /// 21 /// 22 /// 23 /// 94 25 26 27 28 -2- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District of the City of Carlsbad held on the I day of I \ CLv/ , 2008 by the following vote, to wit: AYES: NOES: ABSENT: APRIL SHUTE, Chair ATTEST: L Pro Tern Clerk of the Carlsbad Tourism Business Improvement District -3-