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Home My WebLink About2008-05-07; Carlsbad Tourism Business Improvement District; 0508-29; Approve agreements CCVB and SDNCVBCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 0508-29 MTG. 5-7-08 DEPT. Admin Services Approve Extension of Agreements between CTBID and the Carlsbad Convention and Visitors Bureau and the San Diego North Convention and Visitors Bureau CTBID STAFF Q£Y _ GENERAL t/^ COUNSEL ^^ / RECOMMENDED ACTION: Adopt Resolution No. 2008-4 authorizing the Chairperson to enter into agreements between the Carlsbad Tourism Business Improvement District (CTBID) and the Carlsbad Convention and Visitors Bureau (CCVB) and the San Diego North Convention and Visitors Bureau (SDNCVB) for tourism promotion services for the period July 1, 2008 through June 30, 2009. ITEM EXPLANATION: The current contracts with CCVB and SDNCVB expire on June 30, 2008. The Budget Subcommittee met on April 20, 2008 and recommends extending both Bureaus' contracts for the next fiscal year (July 1, 2008 through June 30, 2009). If there are changes to be made in the future, this will allow time for transition and implementation. Attached to this agenda bill are two agreements that accomplish this objective. The agreement with CCVB will provide funding of $448,800 for the 12-month period through June 2009, paid at the rate of $37,400 per month. The agreement with SDNCVB will provide $110,000 for this same period, paid at the rate of $9,166.66 per month. Staff recommends that the Board adopt the attached resolution authorizing the Chairperson to enter into the agreements with both agencies. FISCAL IMPACT: For the fiscal year 2008-09, projected revenues for the CTBID are estimated at $785,000. The total payment for both agencies for this twelve-month period is $558,800. 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 153789(b)). EXHIBITS: 1. Resolution No. 2008-4 Extending Agreements with CCVB and SDNCVB with exhibits. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED D CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER-SEE MINUTES D AMENDED D 1 RESOLUTION NO. 2008-4 2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT,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 (SDNCVB) 6 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 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, 2008 through June 3 30,2009; 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- EXHIBIT 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 / \Di\i 2008, by the following vote to wit: AYES: NOES: ABSENT: APRIL SHUTE Chairperson ATTEST: Pro Tern Clerk of the Carlsbad Tourism Business Improvement District -3- EXHIBIT 1 AMENDMENT NUMBER 8 TO AGREEMENT FOR PROMOTION OF TOURISM AND VISITOR SERVICES CARLSBAD CONVENTION AND VISITORS BUREAU This Amendment Number 8 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, 2008, 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 seven 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, 2008, unless it is extended; C. The Parties desire to enter into this 8th 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, 2008 through June 30, 2009; 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 8 to the Agreement is effective for a period of twelve (12) months beginning July 1, 2008 through June 30, 2009. 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 8 funding request. The first installment shall be payable in the first full week of July 2008. 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 O^CCiJ I " * fe- (sign he/e) (print: narcfe/title) .r>cuenrwvfi CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT: a Business Improvement District as defined in section 36500 of the Califor/iia Streets and Highways Code (e-mail address) By: l>uO~Cp\}f C(v, Chairperson ATTEST: (sign here) (print name/title) Pro Tern Clerk 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. APPROVED AS TO FORM: RONALD R^^^General Counsel By: City Attorney Approved Version #05.22.01 FY 08-09 CTBID Funding Request for the Carlsbad Convention and Visitors Bureau FY 08-09 BID Funds Account Bank Related Fees $180 Equipment Purchases/Replacements $2,800 Equipment Rentals $4,446 Equipment Repair & Servicing $3,125 Insurance Coverages $2,450 Local Conferences/Meetings $1,654 Membership Dues $1,875 Mileage Reimbursements $2,100 Office Supplies $2,046 Postage/Federal Express $2,164 Printing $2,344 Professional Services $3,465 Salary, Wages & Benefits $226,850 Taxes (non-payroll) $386 Telephone $4,255 Utilities $2,175 Volunteer Program $1,985 Visitor Center Total Operarting Budget $264,300 Brochure & Visitor Guide Distribution $43,030 Consumer Travel Shows $10,758 Event Sponsorships $2,450 Internet $55,553 Print Media Advertising $35,865 Print Production $21,114 Professional Conferences $5,765 Professional Memberships $3,415 Public Relations & Media $4,800 Subscriptions & Publications $1,750 Destination Marketing Total Budget $184,500 Grand Total $448,800 A EXHIBIT 2 AMENDMENT NUMBER 8 TO AGREEMENT FOR PROMOTION OF TOURISM AND VISITOR SERVICES SAN DIEGO NORTH CONVENTION AND VISITORS BUREAU This Amendment Number 8 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, 2008, 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 seven 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, 2008, unless it is extended. C. The Parties desire to enter into this 8th 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, 2008 through June 30, 2009; 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 8 to the Agreement is effective for a period of twelve (12) months beginning July 1, 2008 through June 30, 2009. 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 8 budget request. The first installment shall be payable in the first full week of July 2008. 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 -8 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. CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT: a Business Improvement District as defined in section 36500 of the California Streets and Highways Code - (sign here) /1 ,A Ai ,1 OLM \ \M d <M (e-mail address) ATTEST: *By: (sign here) (print name/title)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 APPROVED AS TO FORM: RONALELR. BALL, General Counsel By: _ _ General Counsel / City Attorney Approved Version # 05.22.01 'NORTH ••Room to fill your senses SAN Ditco NORTH CONVENTION &-VISITORS BUREAU OFFICERS: Chairman Robed Raueh, General Manager/Partner Hilton Garden Inn /Homewood Suites San Diego/Del Mar Immediate Pasi Chairman Tun Fenuell, CEO Del Mar Fairgrounds Treasurer Robert McClure, Director San Diego Zoo's Wild Animal Park Secretary James S Farley, Attorney At Law James S Farley Law Offices Member-al-Large John Daley, Owner 101 Cafe, Oceanside Member-at- Large Dem.se Dornfeld, Exec. Vice President PRA Destination Management Member-at-Large Robert Moore, General Manager Hilton Garden Inn Carlsbad Beach DIRECTORS: Janet Beronio, General Manager Hurrah's Rincon Casino & Resort Paul Corsimla, General Manager San Diego Marriott La Jolla Patrick DulTy, General Manager Hilton La Jolla Torrey Pines Julian Duvat, Executive Director Quail Botanical Gardens Dennis Fraher. General Manager San Diego Marriott Del Mar John Gates, General Manager Rancho Bernardo Inn Juanita I layes, Public Affairs Manager San Diego Gas & Electric Co. Patrick Hclbling, Operations Director Birch Aquarium at Scripps John Jakobsen, General Manager LEGOLAND California Chris Jennewt-in Director of Internet Operations The San Diego Union-Tribune/ SignOnSanDiego com Pam Richardson, V.P. Operations Lake San Marcos Resort & Country Club Vikram Sood, General Manager The Grand Del Mar Paul Van Elderen, Broker Hanson Realty Tammie Wheatiey, General Manager Radisson Suite Hotel Rancho Bernardo Carl Winston, Program Director San Diego State University tX OFFICIOS: Jonathan Jacobs, Managing Partner Radisson Suite Hotel Rancho Bernardo Carlsbad Sales & Marketing Budget 08-09 Detail Sales & Marketing Personnel Sales Programs (trade shows, site visits, client events, educational tours, lead generation, promotions) Marketing Support (collateral, direct mail, booth displays, co-op advertising, public relations, web site/email initiatives, research) Administration & Operations (lease, postage, office supplies, office machines, internet, telephone) Total Carlsbad Budget SD North Budget $51,235 $1,177,200 $ 13,950 $ 558,500 $ 36,237 $1,285,000 $ 8,488 $ 370,900 $110,000 $3,391,600 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: 6l20Paseo Del None, Suite L-l. Carlsbad, California 9201 l-l 100 Voice 760-603-1690 800-848-3336 Fax:760-603-9570 www sandiegonorth com