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HomeMy WebLinkAbout2007-06-05; Carlsbad Tourism Business Improvement District; Resolution 2007-41 RESOLUTION NO. 2007-4 2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, AUTHORIZING THE CHAIRPERSON TO 4 EXECUTE AGREEMENTS WITH THE CARLSBAD CONVENTION AND VISITORS BUREAU (CCVB) AND SAN 5 DIEGO NORTH CONVENTION AND VISITORS BUREAU fSDNCVB) 6 WHEREAS, the City Council of the City of Carlsbad adopted Ordinance No. NS-778 7 enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15, 2005 thereby creating 8 the Carlsbad Tourism Business Improvement District (CTBID); and 9 WHEREAS, the primary purpose of the CTBID is to promote tourism and provide 10 services to visitors to the City of Carlsbad; and 11 WHEREAS, the City Council has authorized the Board of Directors of the CTBID to 12 conduct the business of the CTBID in the time, place and manner that best suits the needs of the 13 Board of Directors of the CTBID, subject to the control of federal, state and local laws governing 14 the activities of a Business Improvement District; and 15 WHEREAS, the City Council has provided the Board of Directors with the ability to 16 contract for services necessary to carry out the purpose of the CTBID; and 17 WHEREAS, the Board of Directors of the CTBID has determined that it is in the best 18 interest of the District to promote tourism and provide services to visitors to the City of Carlsbad 19 through the use of agencies that currently exist in the community to provide these services; and 20 WHEREAS, the Board of Directors has determined that the Carlsbad Convention and 21 Visitors Bureau (CCVB) possesses the necessary skills to provide services related to the 22 promotion of tourism; and 23 WHEREAS, the Board of Directors has determined that the San Diego North 24 Convention and Visitors Bureau (SDNCVB) possesses the necessary skills to provide services as 25 they relate to the group sales travel market; and 26 27 28 EXHIBIT 1 1 WHEREAS, the CCVB and SDNCVB have agreed to provide tourism services under the 2 terms and conditions of the agreements attached hereto for the term July 1, 2007 through June 3 30,2008; 4 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad 5 Tourism Business Improvement District, as follows: 6 1. That the above recitations are true and correct. 7 2. That the Chairperson is hereby authorized to execute the attached agreement, Exhibit 8 1, between the CTBID and the Carlsbad Convention and Visitors Bureau to provide 9 professional services related to tourism promotion. 10 3. That the Chairperson is hereby authorized to execute the attached agreement, Exhibit 11 2, between the CTBID and the SDNCVB to provide professional services related to 12 the group sales travel market. 13 /// 14 /// 15 /// 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 -2- 1 2 3 4 5 6 7 8 9 10 ! 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District on the o day of C3 tine^ 2007, by the following vote to wit: AYES: NOES: ABSENT: APRIL SHUTE Chairperson ATTEST: WOC Pro Tern Clerk of the Carlsbad Tourism Business Improvement District -3- EXHIBIT 1 AMENDMENT NUMBER 7 TO AGREEMENT FOR PROMOTION OF TOURISM AND VISITOR SERVICES CARLSBAD CONVENTION AND VISITORS BUREAU This Amendment Number 7 to the Agreement between the Carlsbad Tourism Business Improvement District (CTBID) and the Carlsbad Convention and Visitors Bureau (CCVB) (collectively, the "Parties") is effective as of the 1st day of July, 2007, extending and applying the terms and conditions of the original agreement dated June 23, 2004 (the "Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"), and The Carlsbad Convention and Visitors Bureau, ("Contractor"). RECITALS A. On six prior occasions the Parties have amended the June 23, 2004 Agreement resulting in an extension to the term of the Agreement; and except as modified, on the same terms and conditions of the original Agreement; B. The Agreement is scheduled to terminate on June 30, 2007, unless it is extended; C. The Parties desire to enter into this 7th Amendment to the Agreement for the purpose of extending the terms and conditions of the Agreement for an additional period of twelve (12) months, from July 1, 2007 through June 30, 2008; and D. The CTBID requires the visitor and promotional services provided by Carlsbad Convention and Visitors Bureau, in the form in which these services were previously provided to the City of Carlsbad. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, Parties agree as follows: 1. The above recitals are incorporated herein. 2. This Amendment Number 7 to the Agreement is effective for a period of twelve (12) months beginning July 1, 2007 through June 30, 2008. 3. Excepted as specifically modified herein, the terms and conditions between the parties shall be those set forth in the Agreement between the City of Carlsbad and the Convention and Visitors Bureau dated June 23, 2004. Compensation will be made in twelve (12) monthly installments of thirty-seven thousand four hundred dollars ($37,400) each month for a total of $448,800 as detailed in the attached Exhibit A to this Amendment Number 7 funding request. The first installment shall be payable in the first full week of July 2007. Subsequent installments shall be paid in the first full week of each month, through the term of this Agreement. 4. All other provisions of the Agreement, as may have been amended from time to time by the City of Carlsbad, or as may be amended by the Parties, shall remain in full force and effect. City Attorney Approved Version #05.22.01 5. 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. 6. 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 (sign hepe) QA^CO AjCLu (prifrt name/title^ (e-mail address) *By: CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT: a Business Improvement District as defined in section 36500 of the California Streets and Highways Cc By: // Chairperson ATTEST (sign here) / ^ M. WOOD 'ro Tem Slerk of the Carlsbad Tourism Business Improvement District (e-miS4iddress) 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: RONALD R. BALL, General Counsel \ ^^OPOT-. General Counsel City Attorney Approved Version #05.22.01 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of County of On \<t>-Locn before me, personally appeared jf fJwUl>0 ' Ndme and Title ofbfficer (e.g.. "Jane Doe, Notary Public") _ _ Name(s) of Signer(s) personally known to me -OR-,® proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) jfc/are subscribed to the within instrument and acknowledged to me that r^e/^Kie/they executed the same in rnp/hter/their authorized capacity(ies), and that by hi6/h«r/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.OFRCIALSEAL "" WITNESS my hand and official seal. -OPTIONAL- Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date:Number of Pages: Signer(s) Other Than Named Above: EXHIBIT A rlsbad c a I ifo r n i a April 30,2007 Ms. April Shute, Chairwoman & Advisory Board Members Carlsbad Tourism Business Improvement District c/o City of Carlsbad, Cheryl Gerhardt Administrative Services 1635 Faraday Avenue Carlsbad, CA 92008 Dear Chairwoman Shute and CTBID Advisory Board Members: As Chair of the Carlsbad Convention & Visitors Bureau's Board of Directors, I have been authorized by our Executive Committee to transmit the attached funding request for FY 07-08 to the Carlsbad Tourism Business Improvement District. The total amount requested for the upcoming fiscal year is $448,800. We were asked to include a 10% increase in funding to the current amount of $408,000 that has been appropriated this year by the CTBID advisory board. Please note that none of this increase has gone to reward staff in the way of merit increases or cost-of-living adjustments for staff. Although we want as much of our funding to go to support essential marketing program, the fact that staff will not enjoy increases like so many other workers in San Diego County is unfortunate. I know that our board would look favorably on an increase over-and-above the ten-percent that has been presented to allow for a 3% increase to cover salary, wages and benefits for staff. Adjustments for this added amount can be included and presented if the advisory board so decides on this specific request. Key adjustments in the Marketing & Communications Outreach section of our previous funding request were made to scale down costs from our original funding proposal that was submitted to you on May 13, 2006. Nine publications were eliminated from "Print Media Advertising," with funding that would have supported those ad buys, instead, going directly into Internet Pay-Per-Click marketing. Our current contractual agreement with Bacon's media service has been eliminated, as have 5 professional conferences. Additionally, our lineup of consumer travel shows has been scaled back from five existing shows to three. There was also a 60% reduction on itemized programs. Carlsbad Convention & Visitors Bureau 400 Carlsbad Village Drive, Carlsbad, California 92008 (760)434.6093 • FAX (760) 434.6056 • www.visitcarlsbad.com • info@visitcarlsbad.com "The Official Destination Marketing Organization of Carlsbad, California" We all know that the amount of BID monies collected has been below our expectations. Our goal is to work with the CTBID advisory board to figure out how best to free up more money so that it can be actively working to promote Carlsbad. More promotion should equal higher BID totals, and when that happens, we all benefit. With the likelihood that San Diego North CVB will become a direct beneficiary of monies from the proposed San Diego Tourism BID, funds could very well be freed up that would allow us to put more money toward programs through our local CVB. Also, if there is a cap put on the 20% reserve and, when that cap is reached, additional money could ultimately be put into action. That may allow for some of the originally proposed programs in our earlier RFP submission to be implemented. With the City of Carlsbad rejecting our request for supplemental funding, the CTBID funds are the only source of funds the Carlsbad Convention and Visitors Bureau receives. It is our hope that the CTBID advisory board will recognize this and provide funding relief to an organization that has worked diligently to market and promote Carlsbad as a year-round preferred travel destination. The Carlsbad CVB looks forward to growing programs that will provide immediate, direct and value-added benefit to the very industry that supports us. Speaking on behalf of the Carlsbad CVB Board of Directors, your thoughtful consideration of our request and comments contained are very much appreciated. Thank you. Sincerely, Nancy Nayudu, Chair Carlsbad Convention and Visitors Bureau Enclosure: 4 page funding spreadsheet cc: Carlsbad Tourism BID Advisory Board Carlsbad CVB Board of Directors Executive Director, Carlsbad CVB = £• v o08o i! tA -,*n Io> S o Scfi i S f o H£§ «£ fi"S t s:O Is; O Ifil - y « xCD IT Iff! HP fti i itH* in1- 11*- * s i O - 35 § £ =5 a I a. z £8 E a> g *1 I co - g oc T3s O•o j= I o in il »«»jj •fi 8' & £ C ?Q. £ a 'iT^ Q- j i CD ii: ,-W PtL^t. ooooooiooooiom(DOC4U>h-<OT eo" T-" CM" CM" CM" CM"»8i s | § § g § i=R siS s"sail^i O CO8 <•>w 2 eOL is3 =>3. CD CO i_•5,-i i 3 •5 i I : IS I §oo <D B 08 m £ [ OT CO si t-i! fiiii f i «'a=j «if 1!5 o •.-I O 00 ? 1D. O o <n I o.ea EXHIBIT 2 AMENDMENT NUMBER 7 TO AGREEMENT FOR PROMOTION OF TOURISM AND VISITOR SERVICES SAN DIEGO NORTH CONVENTION AND VISITORS BUREAU This Amendment Number 7 to the Agreement between the Carlsbad Tourism Business Improvement District (CTBID) and the San Diego North Convention and Visitors Bureau (SDNCVB) (collectively, the "Parties") is effective as of the 1st day of July, 2007, extending and applying the terms and conditions of the agreement dated June 23, 2004 (the "Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"), and the San Diego North Convention and Visitors Bureau, ("Contractor"). RECITALS A. On six prior occasions the Parties have amended the June 23, 2004 Agreement resulting in an extension to the term of the Agreement; and except as modified, on the same terms and conditions of the original Agreement. B. The Agreement is scheduled to terminate on June 30, 2007, unless it is extended. C. The Parties desire to enter into this 7th Amendment to the Agreement for the purpose of extending the terms and conditions of the Agreement for an additional period of twelve (12) months, from July 1, 2007 through June 30, 2008; and D. The CTBID requires the visitor and promotional services provided by SDNCVB, in the form in which these services were previously provided to the City of Carlsbad. E. The CTBID requires SDNCVB to report to the Board on those activities on a quarterly basis using contracted room nights secured during the reporting period multiplied by an Average Daily Rate, obtained by Smith Travel Research, with an additional amount added for meals and incidentals. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, Parties agree as follows: 1. The above recitals are incorporated herein. 2. This Amendment Number 7 to the Agreement is effective for a period of twelve (12) months beginning July 1, 2007 through June 30, 2008. 3. Excepted as specifically modified herein, the terms and conditions between the parties shall be those set forth in the Agreement between the City of Carlsbad and the Convention and Visitors Bureau dated June 23, 2004. Compensation will be made in twelve (12) monthly installments of nine thousand one hundred sixty-six dollars and sixty-six cents ($9,166.66) each month for a total of $110,000 as detailed in the attached Exhibit A to this Amendment Number 7 budget request. The first installment shall be payable in the first full week of July 2007. Subsequent installments shall be paid in the first full week of each month, through the term of this Agreement. City Attorney Approved Version #05.22.01 4. All other provisions of the Agreement, as may have been amended from time to time by the City of Carlsbad, or as may be amended by the Parties, shall remain in full force and effect. 5. 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. 6. The individuals executing this Amendment Number 7 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 Lx (sign here) CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT: a Business Improvement District as defined in section 36500 of the California Street? and Highways Code, (print name/title) ORRAINE M. WOOD Pro Tern <\lerk of the Carlsbad Tourism Business Improvement District (e-mail address) 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. City Attorney Approved Version #05.22.01 2 ACKNOWLEDGMENT State of California County of v On -6 i&a O before me, personally appeared. (here insert narrrearfcl title of the officer) M of personally known to me (or proved to me on the basis of satisfactory evidence) to be the person^) whose name(X) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/heV/thdir authorized capacity(ies), and that by his/tyeV/try^ir signature^ on the instrument the person^), or the entity upon behalf of which the personM acted, executed the instrument. WITNESS my hand and official seal Signature «1529000 Notary Public - California * San Diego County f Comm. Expkes Nov. 22,2006 f (Seal) ACKNOWLEDGMENT State of CaliforniaState o aiorna , , — -N ( County of ^5 A /Y J_ )i On -before - personally appeared - (here insert narye'ancrtitie of the ojmcer) (_. /)/lf\ I Y\OiT7^d /V _ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person^/) whose name^rf) is/aj£ subscribed to the within instrument and acknowledged to me that fjeVshe/thi^y executed the same in l^/her/th^ir authorized capacity(i^), and that by ry&/her/th4ir signature^ on the instrument the person^), or the entity upon behalf of which the person^ acted, executed the instrument. WITNESS my COMM. §1529000 Notary Public • C«Worni« San Diego County Comm. Expires Nov. (Seal) APPROVED AS TO FORM: RONALD R. BALL, General Counsel By: ~ 3 l<~-« i ^ General Counsel City Attorney Approved Version # 05.22.01 WORTH EXHIBIT A ^AUTHENTIC. DIVERSE. CALIFORNTA' OFFICERS: Chairman Tim Fennel), CEO Del Mar Fairgrounds Vice Chairman Robert Rauch, Genera) ManagetfPartner Homewood Suites San Diego/Del Mar Treasurer Robert McClure, Director San Diego Zoo's Wild Animal Park Secretary James S. Farley, Attorney At Law James S. Farley Law Offices Member-at - Large Robert Moore, General Manager Hilton Garden Inn Carlsbad Beach DIRECTORS: Janet Bcronio, General Manager Harrah's Rincon Casino & Resort Bruce Brainerd, General Manager Hyatt Regency La Jolla Paul Corsinita, General Manager San Diego Marriott La Jolla John Daley, Owner 101 Cafe, Oceansidc Dcnise Dornfeld, Exec. Vice President PRA Destination Management Patrick Duffy, General Manager Hilton La Jolla Torrey Pines Julian Duval, Executive Director Quail Botanical Gardens Juanita Hayes, Public Affairs Manager San Diego Gas & Electric Co. Nigclla Hillgarth Ph.D. Executive Director Birch Aquarium at Scripps John Jakohscn, General Manager LEGOLAIMD California Chris Jcnncwein Director of Internet Operations The San Diego Union-Tribune/ SignOnSanDiego.com Nance Trevithick, Director of Sates Four Seasons Resort Aviara Paul Van Elderen, Managing Broker McMillin Realty Commercial Tammic Wheatley, General Manager Radisson Suite Hotel Rancho Berfiardo Carl Winston, Program Director San Diego State University EX OFFICIOS: Jonathan Jacobs, Managing Partner Radisson Suite Hotel Rancho Bernardo Rick Mansur Senior Vice President of Operations J.C. Resorts, Inc. President & CEO Cami Mattson Carlsbad Sales Budget Detail Sales Personnel (18% of existing team's efforts) Carlsbad Budget SD North Budget $51,235 $ 285,141 Sales Programs $ 13,950 (18% of trade shows, site visits, client events, educational tours, promotions) Sales Operations $ 8,488 (18% of lease, postage, office supplies, office machines, internet, telephone) Sales Marketing Support $ 36,237 (10% of collateral, direct mail, booth displays, co-op advertising, public relations, web site/email initiatives, marketing personnel) Additional administration, operations, $ 0 and leisure marketing programs $ 77,500 $ 47,154 $ 346,068 Total $110,000* $ 326,237 $1,082,100 *The 10% increase over last year will go towards the increased cost of doing business with the existing sales programs. The $100,000 allocation from the City of Carlsbad was first allocated to the San Diego North CVB in FY2003-04 and has remained flat for the last 4 years. SAN DIEGO NORTH CONVENTION & VISITORS BUREAU Executive Office: 360 N. Escondido Boulevard, Escondido, California 92025-2600 Located at the Center For The Arts, Escondido Voice: 760-745-4741 800-848-3336 Fax: 760-745-4796 Sales Office: 6120 Paseo Del None, Suite L-l, Carlsbad, California 92011-1100 Voice: 760-603-1690 800-848-3336 Fax:760-603-9570 www.sandiegonorth.com