HomeMy WebLinkAbout1985-07-02; City Council; 8151-1; Convention and Visitor Bureau 1985-86 Budget(' CITY-~F CARLSBAD - AGENDA-ILL
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TITLE:
CARLSBAD CONVENTION AND VISITORS BUREAU
1985-86 BUDGET
ITEM EXPLANATION:
In April 1985 the City and Chamber entered into an agreement which formed
the basis for the Carlsbad Convention and Visitors Bureau. The City
allocated initial funding to this organization in the amount of $100,000
for the period ending June 30, 1985. The agreement requires the CCVB to
submit a work program and budget to the Council which will cover the
period July 1, 1985 to June 30, 1986.
The attached letter from the Chamber of Commerce dated June 4, 1985
contains the proposed budget for the CCVB for the 1985-86 fiscal year and
an advertising plan for the period June 1985 to May 1986.
At the meeting of June 18, 1985, the City Council adopted the City's
Operating Budget which provided six-month funding for the CCVB ($100,000)
which would carry the program through December 31, 1985. Prior to the end
of the calendar year, the CCVB would be required to submit a detailed report
of the activities undertaken and the results and benefits gained from City
support of this program.
With the above conditions in mind, the staff is submitting the CCVB's budget
and work program to the Council for review.
CCVB breaks the $230,000 annual budget into its component parts and provides
a detail of the advertising plans for the period June 1985 through May 1986.
The budget has been divided into two segments covering the first and last
half of the year with the total estimated expenditures of $115,000 in each
half.
The attached letter from the
Representatives of the Chamber are available to discuss this budget with
the City Council.
FISCAL IMPACT:
The CCVB budget of $230,000 is based on revenues of $200,000 from the City
and $30,000 in other sources including donations or contributions from local
businesses. The City Council decided to appropriate $100,000 in funds to
cover the period July 1, 1985 to December 31, 1985 as part of the budget
adoption resolution. The additional $100,000 of City funding fOK this
project has been set aside in the Council's Contingency Account.
This program has the potential of increasing the City's transient occupancy
tax and sales tax revenue. However, the precise impact is impossible to
calculate at this time.
EXHIBITS :
Resolution No. fds.? adopting the Operating Budget for the Carlsbad
Convention and Visitors Bureau covering the period July 1, 1985 to
December 31, 1985.
Carlsbad Convention and Visitors Bureau budget request - June 4, 1985 /
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RESOLUTION NO. 8099
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD ADOPTING THE OPERATING BUDGET OF THE CARLSBAD CONVENTION AND VISITORS BUREAU COVERING THE PERIOD JULY 1, 1985 TO
JUNE 30, 1986.
WHEREAS, the City Council has agreed to support the efforts of the
Carlsbad Convention and Visitors Bureau during the latter part of fiscal year
1984-85 in the amount of $100,000; and
WHEREAS, continued support during 1985-86 of the Carlsbad Convention and
Visitors Bureau is in the best interest of the City of Carlsbad; and
WHEREAS, the Council has reviewed the proposed 1985-86 budget and
advertising program for the Carlsbad Convention and Visitors Bureau for the
1985-86 fiscal year totaling $200,000; and
WHEREAS, the Carlsbad Convention and Visitors Bureau will report to the
City Council on the results of operations for the quarters ending December
1985, March 1986 and June 1986, including in such reports accountings of
revenues and expenses, and the results of programs operated during each
.
peri od.
NOW, THEREFORE, be it resolved by the City of Carlsbad, that the City
shall fund the operation of the Carlsbad Convention and Visitors Bureau for
the period of July 1, 1985 to June 30, 1986 in the amount of 200,000.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
on the 6th day of August , 1985, by the following vote, to wit:
AYES:
NOES: None
ABSENT: Council Member Petthe
Council Members Casler, Lewis, Kulchin, Chick
vLLcl P?L+/
MARY CASgR, Mayor ATTEST:
(SEAL)
June 4, 1985
Mr. Frank Aleshire
City Manager
CITY OF CARLSBAD
1200 Elm Avenue
Carlsbad, CA 92008
Dear Frank:
The attached documents define how I envision the Visitors Bureau expending
the $200,000 for the period of July 1, 1985 through June 30, 1986. Should
you or the Council have any questions, Bob Watson (Chamber President) and
Mike Straub (Bureau Chairman) will be available to respond.
You should note that the net effect of this allocation is $180,000, as we
are not renewing our $40,000 contract (one-half of which was earmarked for
economic development activities). Thank you in advance for including this
request in the 1385-86 City Budget. I'm confident that this investment by
the City will cause positive returns.
Sincerely,
Douglas A. Yavanian
Executive Vice President
DAY: j 1s
Attachments
c: City Council
Carlsbad Convention & Visitors Bureau P.O. Box 4297, Carlsbad, CA 92008 (619) 729-1786
Divlsion of the Carlsbad Chamber of Commerce
CARLSBAD CHAMBER OF COMMERCE
CARLSBAD CONVENTION & VISITORS BUREAU
PROPOSED BUDGET/EXPLANATION OF ACCOUNTS
JULY 1, 1985 - JUNE 30, 1986
PROPOSED BUDGET:
Public Sector
Private Sector
TOTAL INCOME
$200,000.00
30,000.00*
*NOTE : Does not include in-kind services
EXPENSES :
Fixed Costs
Accounting & Legal
Auto/Mileage
Employee Benefits
Equipment
Insurance
Off ice Supplies
Payroll Taxes
Postage
Rent
Salaries
Telephone
Utilities
Total Fixed Costs
Variable Costs
Advert is in g
Business Expenses
Conferences/Trade Shows
Dues/Subscriptions
Miscellaneous
Printing
Professional Services
Special Projects
Total Variable Costs
TOTAL EXPENSES
$ 2,000.00
3,600.00
6,500 .OO
2,400.00
500.00
1,800.00
6,000.00
3,600.00
3,600.00
60,000.00
3,600.00
1,200.00
$230,000.00
$ 94,800.00
$102,000.00
2,400.00
3,600.00
600. CO
500.00
10,000.00
3,600.00
12,500.00
$135,200.00
$230,000.00
JULY TO DEC , 1985 JAN TO JUNE, 1986
$115,000 $115,000
VISITORS BUREAU (CONT.)
EXPLANATION OF ACCOUNTS
INCOME
With the implementation of the Bureau's activities and the 1985-86 funding
level authorization by the Council, staff will actively pursue supportive
funding from the private sector as well as much needed in-kind services.
These latter two points will be carried out as a matter of meeting specific
requests of various Council members.
Fixed costs for the budget period will be $94,800.
at a rate of $7900 per month.
The City will be billed
Accounting & Legal ($2000)
This allocation is to cover periodic accounting reviews as stipulated in
Section 4 of the City-Chamber contract adopted in May ('85).
Auto/Mileage ($3600)
Auto lease or monthly allowance of $250 per month for Bureau manager.
balance of this allocation will cover auto use by non-management personnel.
The
Employee Benefits ($6500)
Worker's compensation and medical/hospitalization coverage for all full-time
Bureau personnel.
Equipment ($2400)
This allocation will supplement the initial amount in the '84-'85 budget to
acquire appropriate office equipment to support the Bureau's clerical needs.
It is anticipated a second typewriter will be needed while a portion of the
funding will cover a word processing equipment lease.
Insurance ($500)
Intended to provide funds for additional insurance to cover the Chamber/Bureau
liability as a result of the expanded visitor activity. In the event our
carrier feels the current coverage is adequate, the funds will be redistributed
to advertising and promotional accounts.
Office Supplies ($1800)
Funds will cover stationery, bookkeeping and supplies not routinely available
through the Chamber inventory.
Payroll Taxes ($6000)
It is anticipated that the 10% allocation in relation to the part-time
positions will be adequate for the Bureau's payroll tax requirements.
Postage ($3600)
While it is difficult to anticipate postage needs for the twelve (12) month
period, we've established a $300 monthly allocation based on past history.
The Bureau may have to make a mid-year course adjustment with this account.
Rent ($3600)
This is an unknown quantity. The Pea Soup Andersen offer is not looking good
at this point. The end-result would be that the Chamber would have to lease
a freeway site. These funds would assist, in a small way, to offset a pro-
portionate share of the overall lease package. There will be no charge back
as long as the Depot site is utilized.
Salaries ($60,000)
The total utilization of this allocation will depend on the relocation of
visitor services to a freeway site and the implementation of a seven-day
information operation. The anticipated positions include: Manager ($25,000 -
$27,000), Secretary ($10,000 - $13,000), Information Supervisor ($9600 -
$10,800), Information Clerks, two ($500 -$600 each per month).
Telephone ($3600)
The Bureau currently has one line on the Chamber system (729-1786).
per month allocation would support additional lines. However, until such time
a new facility is secured or the Depot is renovated, the allocation may be
higher than needed. We will sustain this appropriation until we better define
our overall needs.
The $300
Utilities ($1200)
Our best guess is that $100 a month is a fair share for the information services
area.
City contract.
This amount is similar to that allocation under the previous Chamber/
Variable costs will generally be billed on a project by project or as needed
basis ($135,200).
Advertising ($102,000)
See attached schedule; could change as needs and markets change.
area will be coordinated by the Bureau Advisory Panel and the Benedict and Wells
Advertising Agency.
This account
Business Expenses ($2400)
Scheduled for out-of-pocket business expenses and various area, regional and
national tourism conferences.
Conferences/Trade Shows ($3600)
These funds will be used to attend travel shows and key area fairs (e.g. Del Mar,
LA, Orange County). These, in part, would be held in conjunction with such
groups as the California Department of Tourism and the San Diego Convention and
Visitors Bureau. A specific list of shows will be presented in July to the
Advisory Panel.
Dues/Subscriptions ($600)
The funds are to cover the costs necessary to provide membership for Bureau
staff in key travel/tourism association organizations and membership for the
Bureau in area, state, regional, and national travel industry organizations
such as: Western Association of Convention and Tourism Bureaus, California
Tourism Industry Association (CALTIA), International Association of Convention
and Visitors Bureau and Travel Industry Association of America. As in the
case with Business Meetings/Conferences, this allocation will give the Bureau
necessary exposure to assist it in meeting its marketing goals and objectives.
Miscellaneous ($500)
Budgeted for activities, projects or materials which may require Bureau atten-
tion but do not fall into a specific budget category.
Printing ($10,000)
This is a supplemental appropriation to provide funds to reprint rack brochures
produced under our previous budget allocation. This project includes a four
color brochure with inserts noting lodging, dining, golf courses, recreational
opportunities, etc.
Professional Services ($3600)
Budgeted to cover costs for services rendered by such contract individuals as
free lance writers, graphic designers, photographers, etc. It is anticipated
that various projects may be required of the Bureau outside the perameters of
the contractual arrangement with the Benedict and Wells Agency.
Special Projects ($12,500)
Funds in this account area will cover the following activities:
relations, $5000; 2) Video Cassette, $2000 (additional fmding-if required);
3) Familiarization Tours, $2000 (for travel agents, media representatives, and
tour operators) and 4) Economic Development Promotional activities, $3500.
1) Media
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