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HomeMy WebLinkAbout2010-04-29; Carlsbad Tourism Business Improvement District; 04-10-54; Proposal from VisitCarlsbadCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL CTBID STAFF GENERAL COUNSEL AB# MTG. 04-10-54 4-29-10 DEPT. Finance Proposal from VisitCarlsbad (Carlsbad Convention and Visitors Bureau) RECOMMENDED ACTION: Receive report from VisitCarlsbad and direct staff accordingly. ITEM EXPLANATION: Last fiscal year, a newly formed Destination Marketing Organization (DMG) with a new executive leader and a new 2009-10 Business Plan and budget was hired by the ^arlsbad Tourism Improvement District (CTBID) to provide tourism marketing services for Carisbad. The DMG is the Carisbad Convention and Visitors Bureau 501 C-6 corporation with ii new look and feel together with new visuals , an enhanced Internet strategy, and many otier components ofthe plan, it functions under the name VisitCarisbad. and The VisitCarlsbad Board has developed the 2010-11propsed budget presented at Exhibit 1. The CTBID Board should receive their report Following the discussion, if the Board would like to contract with services for 2010-11, the CTBiD Board should direct staff to bring back at the next Board meeting. program of work ahd discuss the proposal. VisitCarisbad to provide these the contract for adoption FISCAL IMPACT: For the fiscal year 2010-11, projected revenues for the CTBID are total payment for these proposed services for the twelve-month period estlrhated at $800,000. s $744,582. ENVIRONMENTAL IMPACT; This action does not approve any projects that will have a physical environment so it falls within the general rule under CEQA that this is Regulation 15738 (b)). EXHIBITS: 1. Proposed budget and program of work for tourism promotion sen/|ces from VisitCarisbad for the period July 1, 2010 through June 30, 2011. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-277-5203, chen/l.qerhardt(S)carlsbadca.us The adverse affect on the not a project (CEQA FOR CITY CLERKS USE ONLY. ^ BOARD ACTION: APPROVED DENIED • CONTINUED • WrrHDRAWN • AMENDED • CONTINUED TO DATE SP ECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER-SEE MINUTES FYll VISIT CARLSBAD BUDGET - PROPOSED %r carisbad Carryover FYIO Forecast FYIO Budget Variance FYll Proposed Budget Percent Variance to FYIO Forecast INCOME Public Sources CTBID Revenues City of Carlsbad 722,895 722,895 0 744,582 1 3% Total Public Sources 722,895 722,895 0 744,582 TOTAL INCOME 722,895 722,895 744,582 3% EXPENSE Labor Salaries 181,000 185,000 4,000 186,430 2 3% Payroll Taxes 14,863 14,900 37 15,309 2 3% Benefits 21,660 18,400 (3,260) 22,309 2 3% Total Labor 217,523 218,300 777 224,048 3% Promotional Programs Advertising & Production 59,229 60,000 771 60,000 1% Research 3,500 5,000 1,500 5,000 3 30% Outside Services-Interactive Marketing 296,916 300,000 3,084 309,000 4% Outside Services-Group Direct Sales 60,000 60,000 0 60,000 4 0% Travel & Entertainment 9,217 14,700 5,483 10,000 5 8% Dues & Subscription 9,545 7,500 (2,045) 9,500 0% Collateral Production & Fulfillment 43,408 32,000 (11,408) 37,609 -15% Total Promotional Programs 481,816 479,200 (2,616) 491,109 2% General Administration Bank Charges 538 (538) 500 -8% Equipment Rental & Maintenance 4,612 7,000 2,388 4,600 0% Facility Repair & Maintenance 86 (86) 80 -7% Insurance 2,294 2,395 101 2,300 0% Office Supplies 4,239 700 (3,539) 4,000 -6% Postage 1,201 700 (501) 1,200 0% Taxes 45 (45) 45 0% Telephone 5,015 3,150 (1,865) 5,000 0% Utilities 2,808 3,750 942 2,800 0% Professional Services (legal, audit) 6,890 5,700 (1,190) 6,900 0% Volunteer Program 1,042 (1,042) 1,000 -4% Miscellaneous 1,179 2,000 821 1,000 -18% Total G&A 29,948 25,395 (4,553) 29,425 -2% TOTAL EXPENSE 729,287 722,895 744,582 2% OVER/(UNDER) (6,392) 0 (0) FOOTNOTES 1 Forecasted at 3% increase over FYIO 2 Merit increase of 3% 3 Increase STR subscription to cover competitive sei 4 Assumes same contract for FYll 5 Addiitonal funds for PR hosting Approved by VisitCarlsbad Board of Directors April 19, 2010 FYll --PROGRAM OF WORK-PROPOSED ^^carlsDad strategy and Tactics Timing 01 02 03 Q4 Budget Comments Prioritize and develop market intelligence on the leisure travel segment Extract Carlsbad visitor information from SDCVB Visitor Profile Study Expand STR subscription to include key competitive markets IVIanage Interactive Agency Program of Work Pay-per-click advertising Online banner advertising Email marketing Content development Social media Promotions Develop partnerships and coop advertising opportunities Produce print advertising for inclusion on State and local DIVIO programs Two email campaigns, meetings market Manage visitor publications and collateral Evaluate how to scale back distribution costs Evaluate different models for managing a visitor guide for future years Earn unpaid media exposure through public relations Pitch story ideas, whats new, host travel writers Coordinate media FAMs in partnership with regional DMOs Travel & entertainment Contracting for Meetings Market Leads/Bookings Groups leads/bookings services Partnerships & subscriptions with regional and national tourism organizations 5,000 SDCVB Research Center V V V V V V V V 309,000 Mindgruve V 60,000 V V V V V V V 37,609 15% reduction YOY V V V V V V V V 10,000 8% increase YOY V V V V 60,000 San Diego North CVB V V V V 9,500 DMAI database Regional DMO memberships TOTAL PROMOTIONAL PROGRAM OF WORK 491,109 Approved by VisitCarlsbad Board of Directors April 19, 2010