HomeMy WebLinkAbout2020-06-02; City Council; Resolution 2020-094RESOLUTION NO. 2020-094
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE CARLSBAD GOLF LODGING BUSINESS
IMPROVEMENT DISTRICT (CGLBID) ANNUAL REPORT, DECLARING AN
INTENTION TO LEVY AND COLLECT AN ANNUAL ASSESSMENT AND SETTING
A PUBLIC HEARING DATE
EXHIBIT 1
WHEREAS, the CGLBID was formed in accordance with the Parking and Business Improvement
Area Law of 1989 (California Streets and Highways Code, § 36500 et seq.); and
WHEREAS, the CGLBID boundaries are the boundaries of the City of Carlsbad; and
WHEREAS, the CGLBID Advisory Board must present an annual report to the City Council for
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 CGLBID Advisory Board submitted an annual report (Attachment A) to the City
Council for fiscal year 2020-21; and
WHEREAS, after the City Council approves the annual report, the City Council must adopt a
resolution declaring its intention to levy and collect assessments for fiscal year 2020-21; and
WHEREAS, the assessments will generally be spent to promote golf-related tourism within the
CTLBID boundaries, for marketing related capital improvements, such as golf-related signage and
equipment, and to pay related administrative costs; and
WHEREAS, the amount of the proposed assessment and a full and detailed description of the
activities to be conducted and funded in fiscal year 2020-21 are included in Attachment A.
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 annual report (Attachment A) is approved as submitted by the CGLBID Advisory
Board.
3. That for fiscal year 2020-21, the City Council intends to levy and collect from
participating businesses in the CGLBID an assessment of $2 per occupied room per night
for all transient occupancies.
4. That the City Council will hold a public hearing at 3 p.m. on June 23, 2020 on the levying
of the annual assessments.
June 2, 2020 Item #4 Page 4 of 7
EXHIBIT 1
5. That at the public hearing, the City Council will consider any oral or written protests to
the levying of the assessments. Written protests must be submitted to the city clerk at
or before the time set for the public hearing. Written protests must contain sufficient
information to identify the affected business and to show the person submitting the
protest is the business owner or is speaking on the business owner's behalf. If, following
the public hearing, there are written protests from affected business owners that will
pay 50 percent or more of the proposed assessments, the City Council will not take any
further action to levy the proposed assessments for one year.
That the city clerk is directed to give notice of the public hearing by causing this resolution of
intention to be published once in a newspaper of general circulation in the city not less than seven days
before the public hearing.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of
Carlsbad on the 2nd day of June 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
(SEAL)
June 2, 2020 Item #4 Page 5 of 7
ATTACHMENT A
Carlsbad Golf Lodging Business Improvement District (CGLBID)
2020-2021 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.
2019-20 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 $550,000 in CGLBID Assessments in
Fiscal Year 2019-20. 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 2020-21, the Hilton Garden Inn and the Cape Rey Carlsbad Beach Hilton Resort
have elected to participate in the district so the district will have eight hotels. It is estimated that
these eight hotels will collect a total of $500,000 in CGLBID assessments. Based on this revenue
estimate, the budgeted amount for reimbursement to the hotels is $500,000. 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 2020-21 are budgeted at $20,000, which is 4%
of the revenues.
Detail of the 2020-21 budget is shown on the following page.
June 2, 2020 Item #4 Page 6 of 7
2020-21 CGLBID 8_u_d9fil
2016-17 2017-18 2018-19 2019-20 Actuals as of Projected Recommended
Program Areas Description Actuals Actuals Actuals Budget 4/30/2020 2019-20 Actuals 2020-21 Budget
Carryover Fund Balance $169,707 $136,587 $344,804 $291,861 291,861 291 ,861 185,979
Revenues:
CGLBID Assessment * $2 per room night 428,949 681 ,703 719,740 733,000 494,961 550,000 500,000
Interest Earnings 786 -805 11 ,142 2,127 2,500 0
Total Estimated Revenues 429,735 680,898 730,882 733,000 497,088 552,500 500,000
Ex12enditures:
2% Admin. Fee -City For collection of CGLBID assessment and accounting
for CGLBID -2% of CGLBID assessment revenue 8,579 13,633 14,394 14,500 8,733 11,000 10,000
Reimbursements Reimbursement to member hotels for golf related
expenditures 445,516 451 ,341 761,651 704,000 641 ,382 641 ,382 500,000
Staff support Staff support to the CGLBID -2% of CGLBID
assessment revenue 8,759 7,707 7,780 14,500 5,015 6,000 10,000
Total Expenses 462,854 472,681 783,825 733,000 655,130 658,382 520,000
Ending Fund Balance Contingency for Revenue shortfall $136,587 $344,804 $291,861 $291 ,861 $133,819 185,979 165,979
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, arid Cape Rey Beach Hilton Resort.
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