HomeMy WebLinkAbout2023-06-27; Carlsbad Tourism Business Improvement District; ; Amendment to extend agreement with Carlsbad Convention and Visitors Bureau (Visit Carlsbad) for tourism promotion servicesQ s~~ff D~:~~;~SINESS IMPROVEMENT DISTRICT
Meeting Date:
To:
From:
Staff Contact:
Subject:
June 27, 2023
CTBID Advisory Board Members
Matt Sanford, Economic Development Manager
Matt Sanford, Economic Development Manager
matt.sanford@carlsbadca.gov, 760-607-2923
Amendment to extend agreement with Carlsbad Convention and Visitors
Bureau (Visit Carlsbad) for tourism promotion services
Recommended Action
Adopt a resolution approving an amendment to extend the agreement with Carlsbad
Convention and Visitors Bureau (Visit Carlsbad) for tourism promotion and visitor services.
Item Explanation
Since the inception of the Carlsbad Tourism Business Improvement District (CTBID), the CTBID
Advisory Board has contracted with Carlsbad Convention and Visitors Bureau, a 501(c)(6)
corporation (dba Visit Carlsbad), to provide tourism promotion services for the CTBID. The
scope of those services has included operation of the visitor center, website development and
administration, group sa les, print and internet advertising, public re lations and various other
tourism promotion activities identified in the agreement.
Visit Carlsbad develops a program of work and presents it to the CTBID Advisory Board for
approval along with the proposed budget for the work. The budget is then included in the
CTBID annual report and budget. In this case, the program of work was presented and
approved in May 2022 for FY 2022-2023. This amendment would use that same program of
work.
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 an d Highways Code Section 36600 et. seq.). Visit
Carlsbad will be the Owners' Association under the New CTBID and will implement the New
CTBID's management district plan, beginning July 1, 2023 when the new assessment will also
begin.
As a result of the New CTBID's establishment, the cu rrent CTBID will wind down operations by
the end of fiscal year 2023-24. To avoid subjecting hotel businesses to double assessments,
however, the City Council did not levy assessments under the current CTBID for the fiscal year
2023-24. However, 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.
June 27, 2023 Item 1 Page 1 of 7
•
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 CTB ID Advisory Board may extend the agreement for a period
of one year or until the current CTBID is disestablished by the City Council, whichever period is
less.
This approach will ensure continuity of destination marketing by Visit Carlsbad while the New
CTBID ramps up operations. If passed, Visit Carlsbad would continue to provide destination
marketing consistent with the FY 2022-2023 scope of work for FY 2023-2024. Once the current
CTBID funds are exhausted and the current CTBID is disestablished by the City Council, Visit
Carlsbad would conduct destination marketing services consistent with the approved
management district plan.
Fiscal Impact
This extension will utilize remaining CTBID Reserve Funds, which are estimated at $3.4 million.
This balance will continue to accumulate funds through July 31, 2023, as May and June
assessments have yet to be collected. This agreement is limited to the amount of reserve funds
remaining after all collections are made and will exhaust the remaining CTBID assessment funds
under the current authorization.
Exhibits
1. CTBID Advisory Board resolution
June 27, 2023 Item 1 Page 2 of7
RESOLUTION 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
EXHIBIT 1
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)
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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