HomeMy WebLinkAbout2010-01-26; Carlsbad Tourism Business Improvement District; 01-10-50; Consider Amending Mindgruve ContractCARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB# 01-10-50
Consider amending the Mindgruve
CTBID STAFF
MTG. 1-26-10 Consider amending the Mindgruve GENERAL 1-26-10 Endless Summer marketing campaigns COUNSEL
DEPT. Admin contract DEPT. Services
RECOMMENDED ACTION:
If the Board chooses, adopt resolution 2010-1 directing staff to amend the Mindgruve Endless
Summer marketing campaign contract to allow payment of monies that exceeded the original
contract not to exceed amounts.
ITEM EXPLANATION:
On May 8, 2009 the CTBID Board contracted with Mindgruve to perform an Endless Summer
marketing campaign. This 90-day campaign targeted Los Angeles and Orange County visitors
through on-line and print media. The campaign period was Junel through August 31 for a total
cost of $250,000. The funding for this program was $100,000 from the City of Carlsbad General
fund, $100,000 from CTBID resen/es and a $50,000 grant from NRG. The contract (shown at
Exhibit 2) allocated a certain amount of hours and direct costs for each specific category. As
stated in the contracl, these amount s were not to exceed amounts and any deviation from these
amounts was to be approved by the CTBID Board. At conclusion of the contract, Mindgruve
was required to submit time records and receipts to the contract administrator to substantiate the
total hours and amounts spent
Midgruve submitted receipts totaling $249,931. However, as shown in the summary at Exhibit 3
one category was underspent and two categories exceeded the contract budget The direct mail
category budget was $25,000. Due to the short time duration of the campaign. Mindgruve
decided not to do any direct mail mariceting but to put that money towards the on-line banner
advertising and pay per click advertising. These two categories exceeded the not to exceed
budget amounts by $24,931. This included 56 hours over the not to exceed hours (at $125 per
hour is $7000) and $17,931 over the not to exceed direct costs. Per the contract guidelines,
Board approval was required to move money between these categories. Since this formal
approval was not obtained these amounts were not paid to Mindgruve.
The Board Chair requested that this item be put on the agenda for the Board to consider whether
or not to pay Mindgruve the $24,931 that was disallowed. Based on the Board's review and
discussion, if it decides it wants to pay Mindgruve for the amounts not paid it can adopt the
attached Resolution 2010-1. This resolution amends the original contract changing the budget
amounts in each category to coincide with what Mindgruve spent which will allow the payment of
the $24,931.
FISCAL IMPACT:
The additional money is already budgeted in the CTBID 2009-10 budget
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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. Resolution 2010-1 directing staff to amend the Mindgruve Endless Summer marketing
campaign contract to allow payment of monies that exceeded the original contracfs not to
exceed amounts
2. Midgruve Endless Summer marketing campaign contract dated May 5, 2009.
3. Summary by category of time records and receipts submitted by Mindgruve for the Endless
Summer marketing campaign.
DEPARTMENT CONTACT: Cheryl Gerhardt 760-277-5203. cqerh@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
BOARD ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF j •
WrrHDRAWN • OTHER-SEE MINUTES ! •
AMENDED •
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EXfflBIT 1
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1 RESOLUTION NO. 2010-1
2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT
^ DISTRICT, AUTHORIZING THE CHAIRPERSON TO AMEND
4 MINDGRUVE ENDLESS SUMMER AGREEMENT
^ WHEREAS, the City Council ofthe City of Carlsbad adopted Ordinance No. NS-778
^ enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15, 2005 thereby creating
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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 ofthe 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 goveming
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 CTBID contracted with Mindgruve to perform a summer marketing
campaign for the summer of 2009: and
WHEREAS, the contract provided funding for specific categories with not to exceed
amounts; and
WHEREAS, Mindgruve exceeded fianding in some categories and underspent in other
categories; and
WHEREAS, the CTBID Board wishes to amend the funding in each category to coincide
with the amounts spent by Mindgruve; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors ofthe Carlsbad
Tourism Business Improvement District, as follows:
1. That the above recitations are true and correct.
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1. That the CTBID General Counsel is directed to draft the documents necessary to
amend the Mindgruve Endless Summer Marketing Campaign contract in order to pay
Mindgruve the monies that were disallowed under the existing contract.
2. That the CTBID Chairperson is hereby authorized to approve the agreement between
the CTBID and Mindgruve in a form acceptable to the CTBID General Counsel for the
procurement of the described services.
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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 26*_day of January,
2010, by the following vote to wit:
AYES-.'^OcuJ rVjur^U^ Sh,^, &U^, (Lxr^tfic, l^JL^ra, (l>UJcorct-
NOES: (Viae
ABSENT: 2)0^^.^ ry^^n^U^ ^''^
APRIL SHUTE
Chairperson
ATTEST:
LORRAINE WOOD
Pro Tem Clerk of the
Carlsbad Tourism Business Improvement District