HomeMy WebLinkAbout2008-03-18; Carlsbad Tourism Business Improvement District; 03-08-27; Consideration of Marketing ProposalCARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB#
MTG.
DEPT.
03-08-27
3-18-08
Admin
Services
Consideration of Marketing Proposal
from Reint Reinders & Associates
CTBID STAFF \^
GENERAL /) /
COUNSEL M//x
*
RECOMMENDED ACTION:
Consider marketing proposal from Reint Reinders & Associates.
ITEM EXPLANATION:
During the past two years, the Carlsbad Tourism Business Improvement District (CTBID) Board
of Directors has been focusing on the development of a marketing program that would support
the wide range of hotel properties within the City of Carlsbad. Since the creation of the CTBID,
the Board has worked with both the Wright Group and Destination Analysts, and has heard
presentations from the Carlsbad Convention and Visitors Bureau (CCVB), and the San Diego
North Convention and Visitors Bureau (SDNCVB) regarding services these agencies provide in
support of tourism in the area.
Most recently, the CTBID has contacted Mr. Reint Reinders, of Reint Reinders & Associates,
regarding the development of marketing strategies and programs that will strengthen the tourism
activities within Carlsbad. The proposal from Mr. Reinders, dated February 18, 2008, provides an
overview of the service that would be provided by Reint Reinders & Associates, and the
recommendations that would result from the proposed work program,
The two phase work program as described in the proposal would provide the CTBID with the
following:
Phase 1 - A recommendation on how to drive visitor demand to increase travel and occupancies
in Carlsbad.
Phase II - Recommendations on how to spend CTBID assessment funds to maximize impact.
A more detailed description of the work to be provided by Reint Reinders & Associates can be
found on pages three and four of the proposal.
The CTBID Board may review the proposal and ask Reint Reinders & Associates to perform all or
a portion of the work described. Mr. Reinders has indicated that he is open to revising the work
program to meet any specific needs.
The CTBID Board should discuss the proposal at the March 18, 2008 meeting. Following the
discussion, if the Board would like to proceed with hiring Reint Reinders & Associates, they
should direct the General Counsel to draft the necessary documents and agreements for the
signature of the Board Chairperson.
FISCAL IMPACT:
The proposal submitted by Reint Reinders & Associates includes two phases of work. Phase I is
expected to take approximately four months, and is priced at a total of $80,000 ($20,000 per
month for four months). Phase II is expected to take an additional 8 months, and has a total price
of $96,000 ($12,000 per month), for a total project cost of $176,000.
The CTBID's 2007-08 Budget has a $150,000 contingency fund and a $261,000 available fund
balance for a total of $411,000 in available funds.
ENVIRONMENTAL IMPACT:
This action does not approve any projects that will have a physical adverse affect on the
environment so it falls within the general rule under CEQA that this is not a project (CEQA
Regulation 15738 (b)).
EXHIBITS:
1. Proposal from Reint Reinders & Associates dated February 18, 2008.
2. Resolution No. 2008-2, Authorizing the Chairperson of the Carlsbad Tourism Business
Improvement District to enter into an agreement for professional services with Reint Reinders &
Associates.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
BOARD ACTION: APPROVED H CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D
EXHIBIT 1
R eint Reindcrs
Reiat Reinders & Associates
12380 Rue Cheaumont
San Diego, CA 92131
Phone: 619-519-2831
Monday, February 18, 2008
James F. Elliott
Deputy City Manager
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008
Re: City of Carlsbad. CA - Carlsbad Tourism B.I.D. Proposal
Dear Jim:
It is our pleasure to submit this Carlsbad Tourism BID Proposal to the City of Carlsbad, CA, and
the CTBID Board Members (and CTBID staff member and legal counsel).
A new marketing direction: an expanded tourism future
Situation Analysis
In 2006 The City of Carlsbad in cooperation with the hotel community enacted a BID self
assessment initiative to add $1 per night to each room night occupied in all Carlsbad hotels.
This initiative has raised more than $800,000.00 annually to be used for promoting and
marketing Carlsbad as a desirable visitor destination.
Traditionally, The City of Carlsbad has funded tourism sales and marketing and visitor services
from the TOT budget, but has shifted this funding 100 percent now to the new BID.
Tourism sales and marketing has been conducted for the last several years by the Carlsbad CVB
and the San Diego North CVB (SDNCVB), with the Carlsbad CVB receiving approximately
$425,000 for its marketing and visitor services and the SDNCVB $100,000.00 approximately for
contracted leisure and group sales.
After two years of the BID collecting the funds, the BID in cooperation with the City is
interested in exploring how the funds should be spent most efficiently and effectively for
maximum impact.
The hotel community and the City are desirous of initiatives that will enable occupancies to
reach and maintain 70 percent or higher for the destination.
Reint Relnders & Associates Proposal
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Reint Reinders & Associates (RR&A), a San Diego-based hospitality consulting firm, has been
requested by the City of Carlsbad and the BID to submit a proposal to;
1. Review
2. Analyze and
3. Make recommendations
On how tourism sales & marketing and visitor services for the Carlsbad community should be
conducted going forward. RR&A recognizes the City and the BID's keen interest in
recommendations that will result in a more dynamic and effective organizational leadership
structure to ensure that BID funds have the highest possible R.O.I.
At present 35 Carlsbad hotels with 3,500 rooms are running an aggregate occupancy of 65
percent and generate approximately $835,000.00 in BID funds. An increase of 5 points to a
stabilized and desired 70 percent occupancy would generate an additional 63,875 room nights
sold and would result in substantial gains in hotel revenues and TOT for the City.
A two part proposal will outline how RR&A plans to execute the critical objective.
RR&A Proposal Phase I
Timeline: Four (4) months from the time of contract signing.
Due Diligence to be performed:
1. Conduct a review of the performances of the Carlsbad CVB and the San Diego North
CVB (collectively)
2. Conduct meetings individually or in group settings with the Carlsbad hotel stakeholders
3. Conduct meetings individually or In group settings with the Carlsbad tourism
stakeholders
4. Conduct interviews with the City management team and the City Council members
where appropriate
5. Conduct in-depth interviews with the BID Board members
6. Meet one-on-one with the leaders of Carlsbad CVB and the SDNCVB
7. Meet with key leaders at the Carlsbad Chamber of Commerce
8. Meet with community civic leaders of the Carlsbad at large community
9. Review in depth the survey report produced by Destinations Analysts
10. Review in depth the branding PPt. presentation produced by Destination Analysts
11. Review In depth the recently completed Carlsbad CVB Vision 2010 PPt. and report
12. Review the "CVB Industry Most Recent Futures Report" produced by DMAI
13. Review any and all other previous reports and proposals, surveys, questionnaires and
sales and marketing plans which have been or are presently guiding Carlsbad
destination sales and marketing initiatives
14. Identify any and all accessible partners for potential future alliances
The Citv of Carlsbad & BID'S Expectations
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The BID and the City of Carlsbad can expect a report and a set of actionable recommendations
that will help guide them going forward with their visitor destination marketing initiatives.
RR&A understands fully that the key deliverable will be opinion and recommendation on
how best to drive visitor demand so as to increase travel and occupancies.
The City of Carlsbad and BID will be able to promote and extend the Carlsbad brand after
implementing the brand strategy initiatives.
RR&A will provide guidance in how Carlsbad visitor stakeholders will take on a leadership
position to partner with and direct cooperation and support initiatives with the Carlsbad
business community going forward,
RR&A will recommend guidelines for visitor destination marketing strategies:
1. Structure
2. Policies
3. Oversight
4. Planning and
5. Execution
In addition, RR&A will analyze:
1. Manpower needs
2. Consultant roles
3. Technology requirements
4. Office situation
5. Contracted sales and marketing and
6. Any and all other tools needed to ensure a highly functioning environment
RR&A Proposal Phase II
After the initial four months of Phase I, the set of recommendations will be available for
actionable steps to go forward with RR&A's Phase II professional services.
RR&A recommends that The City of Carlsbad and BID engage the RR&A team for a second
phase (Phase II). Phase II is designed to ensure full implementation and detailed follow up on
all recommendations the City of Carlsbad and BID approve and adopt. Phase II is expected to
last eight (8) months.
This follow up mentoring can be a real asset to the organization as it begins to execute on the
marketing plans, new budgets and technology implementation.
RR&A suggests a series of steps that would enable RR&A to interact with leadership and the
staffs, hold weekly meetings, do coaching, teaching and continuously adjust and improve the
new agreed upon and adopted standards.
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RR&A will be reporting monthly in writing and in person to the BID Board, the ultimate
stakeholder leadership.
RR&A is confident that RR&A will be able to have a very effective functioning organization and
have instituted an enterprising spirit to deliver on the Carlsbad visitor marketing initiatives.
The proposed Phase I project will last four (4) months with a possibility of reducing the process
to three (3) months. RR&A expects to render 100 hours of work per month. Assisting
throughout the projects will be RR&A's associate, David M. Brudney, ISHC, principal of David
Brudney & Associates of Carlsbad (www.DavidBrudney.com, see attached Bio).
Project Outcomes
1. RR&A to answer the question: how the BID assessment funds should be spent
most efficiently and effectively for maximum Impact?
2. The professional knowledge, expertise and marketplace hands-on experience of the
RR&A team will help produce recommendations and initiatives on how best to drive
visitor demand so as to increase travel and occupancies to 70 percent or higher annually
3. Ensures full implementation and detailed follow up on all recommendations The City of
Carlsbad and BID approve and adopt
4. A full and detailed progress report will be delivered at the end of each month and an
oral download will be provided to the BID Board (who will be monitoring the project's
progress)
5. By engaging RR&A for Phase II, The City of Carlsbad and the BID Board will have
confidence and peace of mind that RR&A will oversee full Implementation and detailed
follow up of all approved and adopted recommendations
6. Phase II allows for RR&A to provide follow up mentoring, a real asset to and for the
organization as the City of Carlsbad and the BID Board begins execution and
implementation of new budgets, marketing plans and technology resources
7. The monthly overviews would consist of Interaction with leadership and staffs, weekly
meetings, teaching, coaching and mentoring and continuous adjusting and improvement
upon the approved and adopted new standards
8. RR&A will be reporting monthly in writing and in person to the BID Board, the ultimate
stakeholder leadership
Project Fqes
Phase I
Professional services rendered: $20,000.00 per month; four (4) months duration, total:
$80,000.00.
Phase II
Professional services rendered: $12,000.00 per month; eight (8) months duration, total:
$96,000.00.
RR&A is available to respond to any and all questions on this proposal.
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Respectfully submitted by RR&A for your consideration and approval,
Reint Reinders, CHA, Managing Director
Reint Reinders & Associates
Hospitality Consulting
12380 Rue Cheaumont
San Diego, CA 92131
(Phone) 619-519-2831
Reint@ReintReinders.com
David M. Brudney, ISHC, Principal
David Brudney & Associates
2938A Luciernaga Street
Carlsbad, CA 92009
(Phone) 760-476-0830
David@pavidBrudney.com
www.DavldBrudney.com
www.ishc.com
Attachment: Executive summary Bios on RR&A principals
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Reint ReindetS ReintfaReiatReinders.com 619-519-2831
Reint Reinders, CHA, is the President of Reint Reindets & Associates, a hospitality
consulting firm he founded in 2006. He is presently consulting on several hotel projects, as
diverse as the 2,000 room Gay lord Chula Vista, presently under development, to budget and
lifestyle hotel developments elsewhere in California and locally in San Diego. He has also
consulted with CVBs, most notably, in 2007 for Jacksonville, Florida, where he facilitated a
2020 Strategic Vision Planning effort.
Mr. Reinders was born and raised in Holland, where he had his formative years and studied
Hotel Administration at the International School of Hotel Administration in The Hague. He
graduated in 1965 with a degree in hotel management. After a few years in Europe in the
hotel business, Reint moved to the USA where he joined Hilton Hotels at the Tarrytown
New York property.
In 1970 Mr. Reinders joined the Marriott Corporation where he enjoyed a successful career
in all facets of the hotel business, working at various properties around the country and in
the process becoming a successful general manager. In 1985 he was awarded GM of the year
by Marriott Hotels. He opened the highly successful La Jolk Marriott in 1985 and after a 21
year career retired from Marriott in 1991.
Mr. Reinders became President and CEO of die San Diego Convention and Visitors Bureau
in 1991, a position he held for 15 years until his retirement in 2006. His career in the CVB
business was highly distinguished as he took San Diego from a virtual unknown to a national
and international player in the meetings and consumer travel business. The receipts of TOT
dollars, a measure of travel volume, grew from $30 million to over $125 million on his
watch. He instituted numerous award winning sales and marketing initiatives during his
tenure. Twice he was recognized as one of the top 25 most influential people in the meetings
industry.
Mr. Reinders continues to be active in die San Diego community, in Rotary and on the
Board of the USS Midway Aircraft Carrier, a highly successful attraction, for which he was a
founding Executive Board member. Upon his retirement a special endowment for student
growth was established in his name at the SDSU School of Hospitality, a program he was
instrumental in getting started in the bite eighties.
Reint and Angela, his wife of 34 years, have a grown daughter, and reside in Scripps Ranch.
Reint Reinders, Managing Director
Reint Reinders & Associates
Hospitality Consulting
12380 Rue Cheaumont
San Diego, CA 92131
(Phone) 619-519-2831
Roint@ReintReinciefs.com
EXHIBIT 2
1 RESOLUTION NO. 2008-2
2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT
DISTRICT, AUTHORIZING THE CHAIRPERSON TO ENTER
4 INTO AN AGREEMENT FOR PROFESSIONAL SERVICES
WITH REINT REINDERS & ASSOCIATES
5
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, Mr. Reint Reinders, by virtue of his extensive experience in the hospitality
18 industry, marketing background, deep understanding of the tourism industry, and long tenure
19 with several successful hotel operations, is uniquely qualified to provide marketing and other
20 consulting services to the CTBID; and
21 WHEREAS, the CTBID requested a proposal from Reint Reinders &Associates for
22 marketing and consulting services; and
23 WHEREAS, Reint Reinders & Associates submitted a proposal for services dated
24 February 18, 2008 that set forth a scope of work that consisted of two separate phases; and
25 WHEREAS, the CTBID Board has reviewed the proposal submitted by Reint Reinders
26 & Associates and finds that the services to be provided by Reint Reinders & Associates will be of
27 benefit to the CTBID;
28
WHEREAS, it is estimated that Phase 1 of the services will take 3 to 4 months to
complete and the fee shall not to exceed $20,000 per month;
WHEREAS, Reint Reinders & Associates estimate that it will work no more than 1 00
hours per month and will bill at the established rate of $200 per hour;
WHEREAS, Reint Reinders & Associates will invoice the CTBID monthly; and
WHEREAS, Reint Reinders & Associates will provide monthly progress reports to either
the CTBID Board, the subcommittee of the CTBID Board or both the CTBID Board and the
subcommittee of the CTBID Board.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad
Tourism Business Improvement District, as follows:
1 . That the above recitations are true, correct, and incorporated herein.
2. That the CTBID General Counsel is directed to draft the documents necessary to
enter into an agreement with Reint Reinders & Associates to provide a part of the
services described as Phase 1 in the proposal dated February 18, 2008, as are deemed
necessary by the CTBID Board.
3. That the CTBID Chairperson is hereby authorized to sign an agreement between the
CTBID and Reint Reinders & Associates in a form acceptable to the CTBID General
Counsel for the procurement of the described services.
4. That staff is authorized to pay Reint Reinders & Associates invoices in an amount
not to exceed $20,000 per month for a maximum of four months.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of
Directors of the Carlsbad Tourism Business Improvement District on the 1*9 day of/Y) yI 1 \&M (>K 2008, by the following vote to wit:
AYES:
NOES: O
ABSENT:
ATTEST:
/_(/^
TIMOTHY
Vice Chairpersor
ONE WOOD
' Pro "Mi Clerk of the
Carlsbad Tourism Business Improvement District^
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