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HomeMy WebLinkAbout2018-05-23; Carlsbad Tourism Business Improvement District; Resolution 2018-41 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 RESOLUTION NO. 2018-4 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, AUTHORIZING THE CHAIRPERSON TO EXECUTE AGREEMENT WITH THE CARLSBAD CONVENTION AND VISITORS BUREAU (CCVB) DOING BUSINESS AS VISITCARLSBAD _______________ _ EXHIBIT 1 WHEREAS, The City Council of the City of Carlsbad adopted Ordinance No. NS-778 enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15, 2005 thereby creating the Carlsbad Tourism Business Improvement District (CTBID); and WHEREAS, the primary purpose of the CTBID is to promote tourism and provide services to visitors to the City of Carlsbad; and WHEREAS, the City Council has authorized the Board of Directors of the CTBID to conduct the business of the CTBID in the time, place and manner that best suits the needs of the Board of Directors of the CTBID, subject to the control of federal, state and local laws governing the activities of a Business Improvement District; and WHEREAS, the City Council has provided the Board of Directors with the ability to contract for services necessary to carry out the purpose of the CTBID; and WHEREAS, the Board of Directors of the CTBID has determined that it is in the best interest of the District to promote tourism and provide services to visitors to the City of Carlsbad through the use of agencies that currently exist in the community to provide these services; and WHEREAS, the Board of Directors has determined that the Carlsbad Convention and Visitors Bureau (CCVB) possesses the necessary skills to provide services related to the promotion of tourism; and WHEREAS, the CCVB has agreed that its Board of Directors will not be changed without approval of the CTBID Board during the term of the contract; and WHEREAS, the CCVB has agreed to provide tourism services under the terms and conditions of the agreement attached hereto for the term July 1, 2018 through June 30, 2019, NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Tourism Business Improvement District, as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Ill 18 Ill 19 I II 20 Ill 21 Ill 22 Ill 23 Ill 24 Ill 25 I II 26 II I 27 28 1. That the above recitations are true and correct. 2. That subject to review and approval of the CTBID General Counsel, and the contract executed by the CCVB Board, the Chairperson is hereby authorized to execute the attached agreement, Exhibit lA, between the CTBID and the CCVB to provide professional services related to tourism promotion. 3. That the CTBID Board understands that the current six directors with one vacancy of the CCVB Board are: Julie Zahner, Sheraton Carlsbad Resort & Spa Rob Stirling, Cape Rey Carlsbad, a Hilton Resort Christine Davis, Carlsbad Village Business Association Julie Pastor, LEGOLAND California Patsy Bock, Omni La Costa Resort & Spa Troy Wood, Park Hyatt Aviara Vacant The CCVB has agreed that the Board of Directors will not be changed without approval of the CTBID Board during the term of the contract. -2- 1 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 on the ~day of __ M_a_y ____ 2018, by the following vote to wit: AYES: Stripe, Canepa, Idris, Rauch, Sarnietz NOES: None ABSENT: S irns ATTEST: Carlsbad Tourism Business Improvement District II I Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill -3- EXHIBIT 1A AGREEMENT FOR PROMOTION OF TOURISM AND VISITOR SERVICES CARLSBAD CONVENTION AND VISITORS BUREAU THIS AGREEMENT is made and entered into as of the ~~ day of -S U.\/\L , 20Ji_, by and between the Carlsbad Tourism Business Improvement District (CTBID), and the Carlsbad Convention and Visitors Bureau, a non- profit, private organization ("Contractor"). RECITALS A. CTBID requires the professional services of a contractor that is experienced in tourism and visitor promotion programs and services. B. Contractor has the necessary experience in providing professional services and advice related to the promotion of tourism in Carlsbad. C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to CTBID and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CTBID and Contractor agree as follows: 1. SCOPE OF WORK CTBID retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of one (1) year from the date July 1, 2018 through June 30, 2019. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. CTBID Attorney Approved Version #05.06.08 1 5. COMPENSATION The total not to exceed fee payable for the Services to be performed during the initial Agreement term shall not exceed One Million Two Hundred Sixty-Six Thousand Six Hundred dollars ($1,266,600). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The CTBID reserves the right to withhold a ten percent (10%) retention until CTBID has accepted the work and/or Services specified in Exhibit "A". Compensation will be made in twelve (12) monthly installments of One Hundred Five Thousand Five Hundred Fifty dollars ($105,550) each month for a not to exceed amount of $1,266,600 as detailed in the attached Exhibit A to this Agreement. The first installment shall be payable in the first full week of July 2018. Subsequent installments shall be paid in the first full week of each month, through the term of this Agreement. Subsequent installments will be adjusted based on the approved actual expenses from the prior month. Adjustments to pay dates may be necessary due to the cash balance in the fund. The CTBID reserves the right to terminate or reduce funding levels outlined in the Agreement in the event of CTBID revenue reductions. Recommended deductions will be reported to the CTBID Board who shall determine the modified funding level. 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of CTBID. Contractor will be under control of CTBID only as to the result to be accomplished, but will consult with CTBID as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of CTBID for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. CTBID will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. CTBID will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify CTBID within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which CTBID may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the CTBID's election, CTBID may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of CTBID. If Contractor subcontracts any of the Services, Contractor will be fully responsible to CTBID for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for CTBID Attorney Approved Version #05.06.08 2 the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and CTBID. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by CTBID. 8. OTHER CONTRACTORS The CTBID reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the CTBID and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney's fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense CTBID incurs or makes to or on behalf of an injured employee under the CTBID's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII". OR with a surplus line insurer on the State of California's List of Eligible Surplus Line Insurers {LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X". 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless CTBID Attorney or CTBID Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. CTBID, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will CTBID Attorney Approved Version #05.06.08 3 obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. 10.1.1 Commercial General Liability Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability (if the use of an automobile is involved for Contractor's work for CTBID). $1,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to CTBID's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 Liability. The CTBID will be named as an additional insured on General 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to CTBID sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to CTBID's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to CTBID. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then CTBID will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by CTBID to obtain or maintain insurance and CTBID may collect these payments CTBID Attorney Approved Version #05.06.08 4 from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. 10.5 Submission of Insurance Policies. CTBID reserves the right to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of CTBID during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of CTBID. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to CTBID. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in CTBID and Contractor relinquishes all claims to the copyrights in favor of CTBID. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of CTBID and on behalf of Contractor under this Agreement. For CTBID: Cheryl Gerhardt CTBID Staff City of Carlsbad 1635 Faraday Ave. Carlsbad, CA 92008 Phone No. 760-602-2468 5 For Contractor: Sam Ross Executive Director Visit Carlsbad 400 Carlsbad Village Drive Carlsbad,CA 92008 Phone No. 760-434-6093 CTBID Attorney Approved Version #05.06.08 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. RESERVED 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or CTBID will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the CTBID Board. The CTBID Board will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the CTBID Board will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. CTBJD Attorney Approved Version #05.06.08 6 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, CTBID may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If CTBID decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, CTBID may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by CTBID and all work in progress to CTBID address contained in this Agreement. CTBID will make a determination of fact based upon the work product delivered to CTBID and of the percentage of work that Contractor has performed which is usable and of worth to CTBID in having the Agreement completed. Based upon that finding CTBID will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of CTBID, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to CTBID. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. CTBID will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, CTBID will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to CTBID must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to CTBID, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If CTBID seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on CTBID Attorney Approved Version #05.06.08 7 any public work or improvement for a period of up to five {5) years. Contractor acknowledges debarment by another jurisdiction is grounds for CTBID to terminate this Agreement. 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. This Agreement shall be interpreted pursuant to the laws of the State of California. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon CTBID and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of CTBID, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. Ill Ill CTBID Attorney Approved Version #05.06.08 8 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it 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 of this Agreement. CONTRACTOR Carlsbad Tourism Business Improvement District ATTEST: If required by CTBID, 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. **Group B. Chairman, President, or Vice-President 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: ::LIA A ?~7?:ounsel to CTBID Assistant General Counsel CTBID Attorney Approved Version #05.06.08 9 EXHIBIT A Scope of Services 1. Visit Carlsbadi Board appointments and reappointments will be approved by the CTBID Board. 2. Provide monthly reports to the CTBID's which shall include: a. An accounting of funds spent by the program in a format approved by the CTBID Board. b. Minutes from Visit Carlsbad Board meetings c. Smith Travel Research data which includes key competitive markets d. Public Relations i. Articles written including publication name and circulation ii. Number media visits and of travel writers iii. Media marketplace events and press trips attended e. Group Sales i. Number of leads generated and sent out to hotels ii. Number of leads converted to definites iii. Trade shows attended and number of contacts and leads made f. Digital Marketing i. Campaigns run including dates and cost ii. Number of bookings made iii. Number of emails sent iv. Website traffic v. Other measurements as identified during the year g. Visitor Center i. Number of visitors US and foreign 11. Number of emails from Contact us on website 111. Number phone calls ,v. Number lodging referrals v. Number of volunteer hours h. Other items as identified by the CTBID Board during the year 3. Allocation of the Visit Carlsbad unspent funds shall be determined by the CTBID Board. 4. Review CTBID grant applications and make funding recommendations to the CTBI D Board. 5. Develop a program of work that focuses on driving demand in the leisure and group market segments. The Visit Carlsbad Board will approve and oversee the program of work and corresponding budget allocations which are included at the end of the scope. Outcomes on number of leads generated and number of room nights booked will be tracked. EXHIBIT A 6. Continue to develop a Group Sales component that is primarily focused on lead generation and where possible share leads with all eligible Carlsbad hotel properties. a. Attend planned tradeshows as outlined in Exhibit B and track number of leads by tradeshow. b. Implement Group Incentive Program as outlined in Exhibit C. 7. Prioritize and develop market intelligence on the leisure travel segment. Perform a 2018 visitor profile study. 8. Primarily focus on VisitCarlsbad.com as the primary distribution channel for new business opportunities for those CTBID propertiesii and Carlsbad tourism suppliers. a. Partner with local tourism service providers to develop new products or packages consistent with the current market demand for special offers. b. Develop visitor-relevant content. c. Work & develop website development to increase efficiency and usability of website d. Work with digital agency to increase search engine optimization for organic google/search rankings e. Schedule, create and post monthly blog content posts on site f. Promote events & offers on website and other digital outlets 9. Deliver a 2018/19 Spring integrated/interactive marketing campaign focused on driving traffic to visitcarlsbad.com and hotel reservations. Promotional campaigns will include but not be limited to pay-per-click advertising, on-line display advertising, content development, social media, video, promotions, and email marketing. Campaign ROI will be tracked and reported back to CTBID from a Ad Effectiveness Study. 10. Manage yearly Search Engine Marketing PPG/Display campaigns, working with digital agency vendor of record. 11. Manage monthly consumer email campaigns, database & Adhoc email requests 12. Internally monitor & create social media posts & campaigns 13. Develop creative assets & needs, including video, digital banners & advertisements. 14. Supervise outside PR agency and their pitching of editorial ideas to travel writers and online blogging communities. a. Host travel writers, bloggers, and influencers. b. Coordinate media FAMs in partnership with SOTA, CTBID properties, and local tourism suppliers. 15. Manage the visitor center, visitor collateral, including: a. Service visitor walk-ins with local/regional tourism information. b. Collect geographical data from walk-in visitors. EXHIBIT A c. Refer visitors to local tourism service providers. 16. Develop partnerships and co-op opportunities with CTBID properties and local tourism suppliers. 17. CTBID board will participate in the selection and approval of outside vendors who will perform services for Visit Carlsbad pursuant to this Agreement. i Visit Carlsbad is the dba to be used by the Carlsbad Convention and Visitors Bureau. ii CTBID properties are the hotels and timeshares assessed by the CTBID. WSI~ b d cars a_ OMO$ DMD% I Actual To I Chngbtwn Chng FY18 Budget J Date FYllJ and btwn , FY18 Budget FV19 FY18 and I I FY19 INCOME Public Sources I CTBID Revenues 1,077,53Sj Tradeshow Co-op Revenue 10,S00! Adv. Commissio n I I Reserve Fund I I TOTAL INCOME $1,088,03Sj 178,565 16% EXPENSE I LABOR I Salaries Officers 97,026: 2,914 3% Direct La bor 2,4861 Public Relations (2.486) Visitor Services Mgr I !,124 3% 37,477i Visitor Services Coord. 10,409; 311 3% Volunteer -Paid I 77% 1,132/ 868 Sales Coordinator -Part Time i 16,100 (1) Director of Group Sales 82,320 1 2,470 3% Director of Marketing I 12400 18% 70,0001 Direct Labor -Total $203,823; 30,788 15% Benefits l 37,6751 12;325 33% Sales Bonus 10,0001 0% Reorganization Expense 25,0001 (25,000) I Works Comp 2,000i 2,000 100% Payroll Taxes 21,600, 1,900 9% Total Labor $397,124! I 24,927 6% PROMOTIONAL PROGRAMS I i Advertising & Production 10,000i Spring Ad Campaign I l 156,000 (2) Research G,oool 3,000 50% (3) Outside Svcs-Digital Mktg I 0% 250,0001 Outside Svcs-Dest . Brand Refresh Outside Svcs-Public Relations I 0% 110,0001 0 Outside Svcs-Website Malnt. 9,ooo: (9,000) PR Integrated Campaigns Total Outside Services $369,000 156,000 42% Public Relations Events 15,000 8,273 0% Travel & Entertainment 8,000 6,020 (1,700) -21% Dues & Subscription 1,000 8,011 8,000 800% Collateral Prod. & Fulfillment 5,000 1,505 2,500) -50% Total Promotional Programs $414,000 $402,659 143 800 35% DMO FY19 Budget DRAFT v3.0.xlsx v&/r..l b d cars a GROUP DIRECT SERVICES Technology Memberships/Dues Group Incentive Sponsorship/Partnership Marketing/Advertising Planner FAMs/Sites Travel & Entertainment Tradeshows Group Direct Services -Total GENERAL ADMINISTRATIVE Bank Charges Equipt. Rental & M aint. Facility Repair & Maint. General Liability Ins. Office Supplies Postage Taxes Telephone Professional Services Volunteer Program Miscellaneous Utilities Computer Expense Tota/G&A TOTAL EXPENSE OVER/(UNDER) NOTES: (1) Hiring of a part-time sales coord. (2) Winter/Spring advertising campaign (3) STR rescarh and SDTA visitor profile (4) Tradeshows and meetings. No IMEX i ; Actual To FY18 Budget ! Date ! i FY18 Budget I 9,ooo: 2,0001 50,000 36,000 10,000 50,000 5,000 101,000 $263,0001 1,000 3,000 2001 1,000! 1,000 100 100 7,500 11,800 1,300 2,000 2,400! 2,0001 $33,400! $1,107,524! $1,107,524j $19,489 OMO FY19 Budget DRAFT v3.0.xlsx DMO $ OMO % Chngbtwn Chng FY18and btwn FV19 FY18 and FY19 (2,000) -22% (1,000} -50% 0% (1,po8) -3% 16,100 161% 0% 5,000 100% (29,000) -29% (4) (11,900) -5% (11) -1.1% 200 6.7% 0.0% 100 10.0% 1,700 170.0% so 50.0% 10 10.0% Z,500 33.3% (4,800) -40.7% 500 38.5% 0.0% 0.0% 100.0% 6.7% 14% FY2019 --PROGRAM of WORK for LEISURE MARKETING and GROUP SALES -FINAL VISIT CARLSBAD Timing VC Strategy and Tactics 01 02 03 0 4 Budget Comments Manage digital marketing agency and Social Media v v PPC, navtive, programmatic, display, email, SE~ Lead Generation for Meetings Market and Events v v Group leads/site visits/FAMs/marketing/tradeshows Develop one advertising campaign -Winter/Spring '19 v v Manage Public Relations Program of Work v v Including PR events/programs, media FAMs, active pitching Earn unpaid media exposure through public relations v v Hosting of writers and hotel reimbusement costs Partnerships & subscriptions with regional/national tourism orgs. 'I/ v Association memberships Prioritize and develop market intelligence on the leisure travel segment v STR subscripti.on and Carlsbad Visitor Profile Travel & Entertainment v 'I/ Manage visitor publications and fulfillment v v Visitor center maps TOTAL MARKETING/SALES PROGRAM OF WORK v v v v v v v v v v 'I/ v 'I/ v 'I/ v v v 250,000 Elevated Digital Agency 251,100 Group Direct and Events 156,000 Elevated/In-house 110,000 Wagstaff Worldwide PR Agency 15,000 In-house 9,000 In-house 9,000 STR Report, SOTA 6,300 2,500 $808,900 DMO FY19 Budget DRAFT v2.0 5/14/2018 Planned tradeshows for 2018-19 DATE JUL 15-17 AUG 7-9 AUG 26-28 OCT 15-18 NOV 4-7 NOV14 DEC 9-12 DEC 13-16 FEB 3-5 FEB MAR 3-6 MAR 12-13 APR APR MAY MAY NOTE: EVENT Destination West Luxury Meeting Summit Smart Meetings East Natl IMEX America Elite Mtg Alliance All Things Meetings SITE SoCal Holiday Event Amex Interaction IPEC Smart Meetings NorCal Conference Direct APM MIC Tradeshow HelmsBriscoe ABC Smart Meetings/Womens Summit Destination California Smart Meetings West Natl LOCATION Denver Chicago, Mnpls, Indy Palm Beach Las Vegas Miami Oakland Coronado San Diego San ·Antonio TBD Atlanta Denver TBD Chicago Monterey TBD The tradeshow schedule is dynamic and may change during the course of the year. EXHIBIT B OMO Proposed $5,500 $3,750 $6,500 $2,750 $8,500 $1,000 $1,500 $1,000 $6,500 $4,000 $7,500 $1,000 $6,500 $4,000 $5,500 $6,500 $7_2,0.9.21 Vfsir..l b d cars a Visit Carlsbad Group Incentive Program EXHIBIT C Visit Carlsbad is here to help connect you with the right hotel and ensure your successful meeting. Our team can assist you throughout the planning process and will off-set your transportation with La Costa Limo or credit your hotel master account in the following amounts: $1,000 for 50-100 actualized room nights $2,000 for 101-200 actualized room nights $3,000 for 201-300 actualized room nights -$4,000 for 301+ actualized room nights $2,000 bonus additional to the amounts listed above will be given to events that actualize 750+ room nights. Terms & Conditions For new meetings with RFPs directly sourced through or qualified* by Visit Carlsbad Meeting to be held any month of the year. This is valid for meetings happening prior to December 31, 2022. For multi-year bookings, incentive will be paid for each year provided they are contracted at the same time. The amount is based on actualized room nights. Cash incentives are to be paid to transportation company or the contracted hotel within 15 days of the final meeting date. Payments will be made directly to the vendor only. Incentives will be offered if budgeted funds are available and program is subject to change. Does not apply to already contracted meetings. Leads will be distributed to all eligible Carlsbad hotel properties based on lead parameters. Visit Carlsbad reserves the right to end this incentive program at any time without prior notice. The Visit Carlsbad Board of Directors agrees that Tamara McGiboney, Director of Sales, has expertise in Carlsbad as a destination, as well as expertise in other popular destinations, and that her ability to leverage this expertise during the sales process, can often make a difference between a Carlsbad property being awarded a contract over a competing destination. Therefore, a qualified RFP not directly sourced through Visit Carlsbad is one in which: 1) The decision is between one or more eligible Carlsbad properties and any other non-Carlsbad destination; 2) The expertise by Visit Carlsbad could help result in the decision being awarded to a Carlsbad destination versus a non-Carlsbad destination; 3) Via Board-approved email format and before a contract is signed with any perspective Carlsbad property or properties, Visit Carlsbad confirms participation in RFP process with proposed Carlsbad property or properties.