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HomeMy WebLinkAbout2018-05-09; Carlsbad Tourism Business Improvement District; ; AB 05-18-164 Tourism Marketing Services Revised ProposalCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# MTG. 05-18-164 5-9-18 RECOMMENDED ACTION: Tourism Marketing Services Revised Proposal Review Visit Carlsbad's revised proposal and direct staff accordingly. ITEM EXPLANATION: CTBID STAFF GENERAL COUNSEL Since the inception of the Carlsbad Tourism Business Improvement District (CTBID), the CTBID Board has contracted with Carlsbad Convention and Visitors Bureau 501 C-6 corporation (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. The scope of those services have included operation of the visitor center, web site development and administration, print and internet advertising, public relations and various other tourism marketing activities identified in the contract for that fiscal year. At its April 18, 2018, the CTBID Board was presented Visit Carlsbad's proposal for Fiscal year 2018-19. Based on the review of the budget and discussions, the CTBID directed Visit Carlsbad to return with a revised budget. Visit Carlsbad has prepared the revised 2018-19 proposed budget presented at Exhibit 1. The CTBID Board should review and discuss the revised budget. Following the discussion, if the CTIBD Board would like to contract with Visit Carlsbad to provide these services for 2018-19, the CTBI D Board should direct staff to bring back the contract for adoption at the next Board meeting FISCAL IMPACT: For the fiscal year 2018-19, projected revenues for the CTBID are estimated at $1,300,000. The total payment for these proposed services for the twelve-month period is $1,487,000. The CTBID has a fund balance of $647,000. ENVIRONMENTAL IMPACT: This action does not qualify as a project under the California Environment Quality Act ("CEQA") and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b). EXHIBITS: 1. Proposed budget for tourism promotion services from Visit Carlsbad for the period July 1, 2018 through June 30, 2019. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2468, cheryl.gerhardt@carlsbadca.us vfslr. EXHIBIT 1 w carlsbao OMO$ OMO% Actual To Chng FY18 Budget I Date btwn · FY18 Budget FV18 and FY19 INCOME Public Sources CTBID Revenues 1,077,535 Tradeshow Co-op Revenue 10,500 Adv. Commission Reserve Fund TOTAL INCOME $1,088,035, 178,S-65 16% EXPENSE LABOR Salaries Officers 97,026 2,914 3% Direct Labor Public Relations 2,486 (2,486) Visitor Services Mgr 37,477i 1,4.24 3% Visitor Services Coord. 10,409 3J1 3% Volunteer -Paid 1,132· 868 77% Sales Coordinator -Part Time (1) Director of Group Sales 82,320; 3% Director of Marketing 70,000 18% Direct Labor -Total $203,82i 15% Benefits 37,675: 12,325 33% Sales Bonus 10,000: 0% Reorganization Expense 25,000 (25,000) Works Comp 2,000: 3,263 2,000 100% Payroll Taxes 21,600, 21,443 1,900 9% Total Labor $397,124' $341,215 24,927 6% PROMOTIONAL PROGRAMS Advertising & Production 10,000· 7,298 Spring Ad Campaign ! 156,800 (2) Research 6,000: 6,000 3,000 50% (3) Outside Svcs-Digital Mktg 250,000 183,657 0% Outside Svcs-Dest. Brand Refresh Outside Svcs-Public Relations 110,0001 109,672 0% Outside Svcs-Website Maint. 9,000 7,053 PR Integrated Campaigns i 65,170 Total Outside Services $369,000: $365,551 42% Public Relations Events 1s,ooo; 8,273 0% Travel & Entertainment 8,000. 6,020 -21% ! Dues & Subscription 1,000. 8,011 800% Collateral Prod. & Fulfillment I s,0001 1,505 .-50% Total Promotional Programs $414,ooo; $402,659 '351§ OMO FY19 Budget DRAFT v3.0.xlsx vfs;~ b d cars a Actual To OMO$ OMO% FY18 Budget Date Chng btwn FY18 Budget FY18 and FY19 GROUP DIRECT SERVICES Technology 9,000 {2,000) -22% Memberships/Dues 2,000' (1,000) -50% Group Incentive 50,ooo! 0% Sponsorship/Partnership 36,oool (1,000) -3% Marketing/Advertising 10,0001 16,100 161% Planner FAMs/Sites 50,0001 0% Travel & Entertainment 5,000 100% Tradeshows 101,000, -29% (4) Group Direct Services -Total $263,ooo: -5% I GENERAL ADMINISTRATIVE i Bank Charges I (U) -1.1% 1,0001 Equipt. Rental & Maint. 3,000, iOO 6.7% Facility Repair & Maint. 2ool 0.0% General Liability Ins. I l-00 10.0% 1,0001 Office Supplies 1,000. 1,,700 170.0% Postage 100! 50 50.0% Taxes 100! 10 10.0% Telephone 7,5001 995 2,500 33.3% Professional Services 11,8001 9,900 (4,800) -40.7% Volunteer Program 1,3001 1,581 500 38.5% Miscellaneous 2,000, 0.0% Utilities 2,400' 1,293 0 0.0% Computer Expense 2,000: . 1,812 2,000 100.0% Tota/G&A $33,4001 $22,977 2,249 6.7% TOTAL EXPENSE $1,107,524; $939,1S5 159,076 14% $1,107,524, OVER/(UNDER) $19,489 $4,023 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 OMO FY19 Budget DRAFT v3.0.xlsx