CA Review CKM
Meeting Date: June 21, 2022
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Matt Sanford, I nnovation & Economic Development [email protected], 442-339-5987
Subject: Levy of Annual Assessment for Carlsbad Tourism Business Improvement District for Fiscal Year 2022-2023
District: All
Reco
mmended Action
Hold a public hearing on the levying of an assessment for the Carlsbad Tourism Business Improvement District and, in the absence of a majority protest, adopt a resolution confirming the district Advisory Board’s annual report and levying the assessment for fiscal year 2022-23.
Executive Summary
The Carlsbad Tourism Business Improvement District Advisory Board is required to present an annual report for the City Council’s review and approval for each fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. At its meeting on June 7, 2022, the City Council approved the Advisory Board’s annual report, declared an intention to levy and collect an annual assessment in fiscal year 2022-23 and set a public hearing on the levying of the proposed assessments.
The next required step in this annual process is for the City Council to hold this public hearing on the levying of the assessment. At the conclusion of the public hearing, in the absence of a majority protest against the levying of the assessment by businesses in the district that will pay 50% or more of the assessment, the City Council may confirm the Advisory Board’s annual report and levy the assessment.
Discussion
The district was formed in 2005 under the Parking and Business Improvement Law of 1989 (California Streets and Highways Code Section 36500 et seq.). It is funded by the levying and collection of an assessment of 2% of gross short-term room rental revenue for all transient occupancies within the city. The assessment proceeds to go the district, which administers marketing and visitor programs to promote the City of Carlsbad as a tourism visitor destination and funds projects, programs and activities, including appropriate administrative charges, that benefit hotels within the district’s boundaries. (Carlsbad Municipal Code Section 3.37.070.) June 21, 2022
Item #11 Page 1 of 5
Each fiscal year, before the City Council may levy the assessment, the following steps are required by state law:
• The district’s Advisory Board must prepare a report describing the improvements and activities to be funded by the assessment and file the report with the City Clerk. • The City Council must approve the report, adopt a resolution of intention to levy the assessment, and set a public hearing date on the levy of the assessment. • At the public hearing, the City Council must hear and consider all protests against the levy of the assessment. If the City Council receives written protests from affected business owners that will pay 50% or more of the proposed assessments, the City Council may not take any further steps to levy the assessment for a period of one year.1 • At the
conclusion of the hearing, if there is no such majority protest, the City Council may adopt a resolution confirming the Advisory Board’s report, which will constitute the levy of the assessment for the fiscal year covered by the report.
At its meeting on June 7, 2022, the City Council approved the district Advisory Board’s annual report, adopted a resolution of intention to levy and collect an assessment for the 2022-23 fiscal year, and set a public hearing on the levy of the assessment for June 21, 2022. The City Clerk published a notice of the public hearing in the form and manner required by California Streets and Highway Code Section 36534(b).
For the assessments to continue, in the absence of a majority protest, the City Council is required to adopt a resolution confirming the Carlsbad Tourism Business Improvement District Advisory Board’s report, which will constitute the levy of the assessment for fiscal year 2022-
23. Options
The City Council can either:
1) Adopt a resolution confirming the Advisory Board’s report and levying an assessment for fiscal year 2022-23. This will allow the city to levy and collect assessments in the coming fiscal year.
2) Not approve the resolution confirming the Advisory Board’s report and levying an assessment. The levying and collection of the assessments will not continue into fiscal year 2022-23 and the district’s efforts to promote tourism will not receive the funding.
Fiscal Analysis
For fiscal year 2022-23, the 2% of gross short-term room rental revenue assessed by the district is estimated to generate $5,300,000 in revenues to be used for the promotion of tourism.
Next Steps
If the City Council confirms the district Advisory Board’s report and levies the assessment for fiscal year 2022-23, the assessment will go into effect July 1, 2022. 1 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 authorized to speak on behalf of the business owner.
June 21, 2022
Item #11 Page 2 of 5
Environmental Evaluation
This action does not constitute a “project” within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review.
Public Notification
This item was noticed in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date.
In addition, in ac cordance with California Streets and Highways Code Section 36534(b), the City Clerk’s Office gave notice of the public hearing by publishing the resolution of intention in a newspaper of general circulation in the city not less than seven days before the public hearing.
Exhibits
1. City Council resolution
June 21, 2022
Item #11 Page 3 of 5
RESOLUTION NO. 2022-151
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, CONFIRMING THE ADVISORY BOARD'S REPORT AND LEVYING AN ASSESSMENT FOR FISCAL YEAR 2022-23 FOR THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT {CTBID)
Exhibit 1
WHEREAS, the CTBID was formed in accordance with the Parking and Business Improvement Area Law of 1989 {Cal. Streets and Highways Code, § 36500 et seq.); and WHEREAS, on June 7, 2022, the City Council adopted a resolution (1) approving the CTBID Advisory Board's annual report, (2) indicating an intention to levy an assessment for fiscal year 2022- 23, and (3) setting a public hearing on the levy of the assessment for June 21, 2022 (resolution of intention); and
WHEREAS, the City Clerk published the resolution of intention in a newspaper of general circulation in the city not less than seven days before the public hearing; and WHEREAS, on June 21, 2022, the City Council conducted a public hearing on the levy of the assessment and considered all protests against the levy of the assessment; and WHEREAS, the City Council did not receive written protests from affected business owners that will pay 50 percent or more of the proposed assessments.
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 City Council confirms the CTBID Advisory Board's annual report, which is on file in the City Clerk's Office.
3. That the boundaries of the CTBID shall be the legal boundaries of the City of Carlsbad.
4. That the assessment to be levied shall be 2% of gross short-term room rental revenue for all transient occupancies within the City of Carlsbad, as defined in Carlsbad Municipal Code Section 3.12.020, due and payable to the City of Carlsbad's Finance Department at the same time and same manner as the payment of transient occupancy tax.
5. That the adoption of this resolution shall constitute the levy of the assessments for the CTBID for fiscal year 2022-23, beginning July 1, 2022 through June 30, 2023.
June 21, 2022 Item #11 #11 Page 4 of 5
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 21st day of June, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
MATT HALL, Mayor
FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
June 21, 2022 Item #11#11 Page 5 of 5
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PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above-entitled matter. I am the principal clerk of the printer of
The San Diego Union Tribune
Formerly known as the North County Times and UT North
County and which newspaper has been adjudicated as a
newspaper of general circulation by the Superior Court of the County of San Diego, State of California, for the City of Oceanside and the City of Escondido, Court Decree numbers 171349 & 172171, for the County of San Diego, that the
notice of which the annexed is a printed copy (set in type not smaller than nonpariel), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
June 11th, 2022
I certify ( or declare) under penalty of perjury that the foregoing is true and correct.
Dated at TEMECULA, California this
13th, day lune, 2022
Jane Allshouse
The San Diego Union Tribune
Legal Advertising
RESOLUTION NO, 20:u-11:a
A RESOLUTION OF THE CITY COUNCJL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING THE CARLSBAD TOURISM
BUSI N ESS IMPROVEMENT DISTRICT ANNUAL REPORT ,
DECLAR ING AN INTEN TION TO LEVY AND COLLECT AN A NNUAL ASSESSMENT AND SETTING A PUBLIC HEARING FOR 5 P.M . ON
JUNE 21, 2022
WHEREAS, the Carlsbad Tou rtsm Busine ss Improvement D istrict (CT81D) was formed in accordance with the Parlc lng and Business lml)'ovemen t Area Law of 1989 (Cal. Streets and Highways Code, § 36500 et seq.); and
WHE REAS, the CTBID boundaries are the boundaries of the Oty of Carlsbad; and
WHE REAS, the CT81D Advisory Board must present an annual report to the City Council for approval for each fisc,al year for which Msessments are to be levied and collected to pay the c.ost for the Improveme nts and activities described In the report , and WHEREAS, the CTBI D Adv isory Board submitted an annual report (Attachment A) to the City Council for fiscal year 2022- 23; and WHEREAS, after the City Council approves the annual report, the City Council must adopt of resolution declaring its inten t ion to levy and collect assessments for f,scal year 2022 - 23; and
WHEREAS, the assessments w ill gen erally be spent to administ er marketing and visitor programs to promote the City of Carlsbad as a tourism visitor destinat ion and to fund projects, programs, and activities, Including appropriate administrative charges, that benefit hot e ls wit hin the CTBI0 boundaries; and
W H EREAS, the amount of the proposed assessments and a full and detailed description of the activities to be conducted and funded In fiscal year 2022 -23 are Included In Attachment A.
NOW, THEREFORE, BE IT'R ESOLVED by the City Council of the City of Carlsbad, Cahforn la, as follows:
1. That the above recitations are true and correct.
2 . That the annual report ( Atuchment A ) Is approved as submitted by CTBID Advisory Board .
3 . That for fiscal year 2022 - 23, the City Council Intends to levy and collect an assessmen t o f 2% of gross short -term room revenue for each transient occupanc y in t he dty.
4. Not.i ce is h erebY. given that a public hearing is scheduled for s p.m . at the City Co4.mc1I Chambers located at 1.200 Carlsbad VIiiage Drive In Carlsbad, California on the following date :
Tuesday, June 21, 2022
5. That at the publlc hearing, the City Council will consider any oral or written protests to t he levying of the assessme n ts. Written protests must be submitted to t he Oty Clerk 's Office at or before the time set for the public hearing . Written protens must contain sufficient information to ldent ,fy the affected business and to show the person submitting t he prot11st Is the busln.eu owner or Is speaking on behalf of the business owner . Following the public hearing, If t h ere are written protests from affected busfneu owners that w,11 pay so percent or more of the proposed anessments, the City Counc, l will not take any further action to levy the proposed assessment for one year.
6 . That the Crt:y Clerk's Office is directed to give notice of the public hearing by causing this reso lution of Intention to be published once In a newspape r of' general circ ulation In the city not less than seven days before the public hearing .
PASSED, APPROVED ANO ADOPTED at a Regular Meeting of the Coty Counci l of the City of Carlsbad on the 21h day of June. 2022, by the follo w ing vote, to wit :
AYES : Hall, BlacJcburn, Bhat -Patel, Acosta, Norby .
NAYS : None!.
ABSENT , None .
PUB LISH DATE , June :u., 2022
City of Carlsbad I City Council
AFFIDAVIT OF MAILING
NOTICE OF PUBLIC HEARING
TO: CITY CLERK
DATE OF PUBLIC HEARING:
SUBJECT: ___,G=-1"---'--~--=-~ _l)_-"',..UA/=--z..._7--M~¼/2___,.\----"~~_.__=----- ~ 1200 Carlsbad Village Drive, Carlsbad. CA 92008 LOCATION:
D Other: ________________ _
DATE POSTED TO CITY WEBSITE JV 1/Vv l ~ 'vf!> 'i 7..,,
DATE NOTICES MAILED TO PROPERTY OWNERS: --~lfv---+-j _µ _____ _ NUMBER MAILED : V\,\ (/'v
I declare under penalty of perjury under the laws.of the State of California that I am employed by the City of Carlsbad and the foregoing is true and correct.
DEPARTMENT: ~CITY CLERK'S OFFICE □ OTHER _______ _
~ &/,~/2-z_
Signature Date
SENT TO FOR PUBLICATION VIA E-MAIL TO: ~ Union Tribune on fl /B (z, z., D Coast News on· -----
PUBLICATION DATE: Union Tribune JV VU.., \ \ vD 2-- 2.. __ ;;__ __ --=---+---___;_-- -- Coast News ______________ _
I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad and the foregoing is true and correct.
DEPARTMENT: ~ CITY CLERK'S OFFICE □ OTHER ______ _ _
Signature Date
Attachments: 1) Mailing Labels
2) Notice w/ attachments
Carlsbad Tourism Business
Improvement District Levy of
Annual Assessment - Public Hearing
Zach Korach, Finance Director
June 21, 2022
{city of
Carlsbad
June 7, 2022 Council Meeting
• City Council approved annual report
• Adopted Resolution of intention to levy and collect
ann
ual assessment in FY 2022-23
• Scheduled public hearing for June 21, 2022
{city of
Carlsbad
Carlsbad Tourism Business Improvement
District Hearing Process
• Hold Hearing
• Consider Protests
• If majority protest, no further steps for one year
• If no majority protest, adopt resolution confirming the annua
l report and levying the assessment for FY 2022-23
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{city of
Carlsbad
Carlsbad Tourism Business Improvement
District - Public Hearing
Public Hearing
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{city of
Carlsbad