HomeMy WebLinkAbout1989-09-26; City Council; 10277; Subcommittee Report on Carlsbad ConventionCI- OF CARLSBAD - AGE”-‘* BILL i9d @
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MTG. 9/26/89
DEPT.
TITLE: DEPT. HD. - SUBCOMMITTEE REPORT ON THE CARLSBAD
CONVENTION AND VISITOR’S BUREAU CITY ATTY
CITY MGR. %,
By minute motion, direct staff in matters related to providing funding for the Carl sbad Convention and Visitor’s Bureau.
By minute motion, direct staff to return with contract documents.
ITEM EXPLANATION:
The City Council Subcommittee on the Carlsbad Convention and Visitor’s Bureau (CCVB) has met several times over the past weeks. The present recommendations from the committee include the following key points:
0 The following budget is proposed by the Subcommittee for CCVB funding. These amounts relate to direct costs only:
Advertising $ 65,000 Printing (brochures) 12,000 Trade shows 12,000 Speci a1 suppl ies 2 , 000
CEEC funding 20,000
$1 11 , 000 -------- ---__--- TOTAL
CEEC must return to the Council with a specific proposal for
the use of these funds prior to distribution.
0 The CCVB fiscal year for funding shall run from October 1 to September 30 each year. The proposed fiscal year provides sufficient notification to the CCVB staff if changes are made in the City‘s operating budget.
Unresolved items include the following:
0 Funding for CCVB staff and overhead costs.
0 Funding for promotion of special events.
The Subcommittee members will provide additional information at the Council meeting .
Page Two of Agenda Bill No. 1O,z-f1
STAFF COMMENTS:
City staff recommends that if Council wishes to continue relations with CCVB that funding be provided to support administrative and overhead costs. These costs are estimated to be about $100,000 for the twelve month period ending September 30, 1990. If Council limits the City’s participation to the $200,000 included in the 1989-90 budget, $63,924 is available for funding of overhead and salaries through 9/30/90.
Budgeted promotion funding
Program funding through 9/30/90
$200 , 000
(11 1,000) CCVB funding through 9/30/89 ( 25 , 076)
Avail ab1 e funds for Overhead and Salaries through 9/30/90 $ 63,924 -------- --------
Funds required in excess of $63,924 to support special events, overhead and salary expenses through 9/30/90 will have to be raised by CCVB from private sources.
FISCAL IMPACT:
The 1989-90 budget includes $200,000 for the promotion of the City of Carlsbad. In a previous action, the Council allocated $25,076 to CCVB to fund operation through September 30, 1989. The remaining balance of $174,924 is unobligated at this time. Council may allocate up to this amount to CCVB for promotion activities without requiring further appropriation or transfers from the contingency account.
EXHIBITS :
1. Letter from the Finance Director dated September 14, 1989, regarding the CCVB Subcommittee.
2. Memo from the Senior Management Analyst dated September 12, 1989, regarding the responses to CCVB related issues.
September 14, 1989
TO: ASSISTANT CITY
FROM : Finance Director
V CCVB SUBCOMMITTEE
The following is a summary of the actions taken at the last meeting of the CCVB Subcommittee and responses to their requests for
additional information. At the next meeting the committee members will review their progress and provide staff with direction in preparing an agenda bill for consideration by the full Council.
The following budget was proposed for the CCVB. Additional items may be added or revisions may be made at the next
meeting:
Advertising $ 65,000 Printing (Brochures) 12,000 Trade Shows 12,000 Special Supplies 2,000 Overhead, Salaries -0-
CEEC Funding (1) 20,000
Total $111,000 -------- --------
(1) CEEC must return to the Council with a specific
proposal for the use of these funds.
The Committee will review the possibility of including funding
for special events at the next meeting.
The Committee requested information related to the current
advertising effort included in the existing City budget. The
attached memo includes a summary of this information. In general, City advertising amounts to about $9,200.
The Committee members asked staff to provide a list of special events that take place in Carlsbad. The attached memo
includes a list of events that may be of interest to the community in general.
The Committee indicated an interest in knowing the in-kind value of the AT&SF Depot by the CCVB. The Attached memo shows
that this value is about $25,000 to $28,500 on an annual basis.
September 14, 1989 Page No. 2
5) Remaining issues include the following topics:
Should the budget include funding of salaries, overhead, and 0&M costs
Should the contract term be 10/1to 9/30 as suggested at the last meeting
Which special events, if any, should the committee designate as particularly important for the CCVB to concentrate on promoting
Following the next meeting, staff will prepare an agenda bill to
be presented to the Council at the 9/26/89 meeting.
JFE
September 12, 1989
TO: ASSISTANT CITY MANAGER
FROM: Senior Management Analyst - Finance
RESPONSES TO CCVB RELATED ISSUES
Three areas requiring further inquiry have been researched, with responses out1 ined below.
1. How much does the City spend on advertising for special events such as the Triathlon, 5K and the arts?
Tr i at hl on $2,000 City Sports Magazine (2 half page ads) 80 5 Competition Magazine
-0- B1 ade Ci t i Zen
Big Bang Bar-B-Q 1,541 Carl sbad Journal and 180 Blade Citizen
77 1
5K 3,500 Sponsorship
400 Competition Magazine
TOTAL $9,197
2. What is a fair market rent for the train depot?
The area within the train depot totals 1,320 square feet. Mr. Salomone
estimated that rates for downtown office space range from $1.60 to $1.80 per square foot. This yields a monthly rate ranging from $2,112 to $2,376, and
an annual rate of $25,344 to $28,512.
3. Identify special events which have a city wide or broader appeal. Twenty- two are identified below:
Big Bang Bar-B-Q Fundraiser
Big Bang Fireworks Display
Fall Faire Book Faire, Branch Library, October
Golf Clinics - 2 per year
Book Faire, Main Library, May
Spring Faire
Oktoberfest
5K
Tri athl on
Christmas Tree Lighting
Summer Jazz Series
Pops Concert
Arts Fanfaire
Easter Egg Hunt
Yard and Plant Sale sponsored by the
Sculpture Exhibit
Garage Sale in Park
Hal 1 oween Carni Val s (2)
Grass Vol leyball Tournament
Body Surfing Contest
Body Board Contest
Geneal ogical Society
September 26, 1989
TO: CITY COUNCIL
FROM: COUNCIL SUBCOMMITTEE ON THE CONVENTION AND VISITOR’S BUREAU
REPORT OF SUBCOMMITTEE
The Council Subcommittee on the Convention and Visitor’s Bureau met on September 25, 1989, to review the proposed funding for the CCVB. At this meeting, the Subcommittee developed the following recommendations for the CCVB program.
0 The following budget is proposed for the CCVB:
Direct Costs
Advertising $ 65,000 Printing (brochures) 12,000 Trade Shows 12,000 Speci a1 Suppl i es 2,000 Promotion of Economic Development 20,000 Special Event Promotion 29.000
Subtot a1 $140,000
Additional Fundinq
Matching Funds - Administrative costs 30,000 Audits and Taxes 4,923
$174,923 -------- -------- TOTAL BUDGET
0 The CCVB fiscal year for funding shall run from October 1 to September
30 each year. The proposed fiscal year provides sufficient notification to the CCVB staff if changes are made in City’s operating budget.
0 Matching funds will be available to support administrative costs on a dollar-for-dollar basis up to a limit of $30,000.
0 The City auditor will review the CCVB records for conformance to all conditions on an annual basis.
0 Funding for economic development and special events will be released by the City Council after reviewing a program to be presented by CCVB at a later date. Special event programs to be considered for funding include the Sister City Program, Triathlon, Carlsbad 5K and other programs listed on the attached agenda bill.
0 City staff will prepare a contract detailing the conditions to be set by the Council and will return with this contract for Council approval at a later date.
t
September 26, 1989 Page No. 2
0 Subcommittee will agree to recommend that 15% of ad costs will be available to pay CCVB salary and overhead expenses.
0 Subcommittee will agree to recommend an advance of $6,000 against future receipts to allow CCVB to operate in the short term.
The Subcommittee will meet with the Chamber and CCVB representatives on Tuesday, September 26, 1989 to review the proposal and will report to the Council the results of this meeting.
JFE:tlg
6
The Proposed allocation of the City's portion of the budget is as follows:
$100,000 Advert ising/Promot ions
$65,000 - Advertising in magazines and newspaper that reach our target market. These Include: Motorland, Westways, Golden State, L.A. Ihgazine, Calilornia Travel Guide, Sunset, Travel & Leisure, L.A. Times, Phoenix Gazette, Arizona Republic and Orange County Register.
$16,500 - To participate in six trade shows and two blitzes. These are:
Nov. 16, '89 - San Diego ConVis Annual Travel Show
Nov. 24-26 - San Diego Convention Center Grand Opening
Feb. 3-4, '90- Orange County Register Travel Show . '
Mar. 2-3, - ASTA Travel Show - Tucson
Mar. 17-18 - L.A. Travel Show
Mar. 24-25 - Orange County Travel Show
Jan. 8-12, '90 - Blitzing - San Francisco Bay area Feb. 26 - Mar. 1 - Blitzing - Phoenlx/Scottsdale (Trade Shows and Blitzes are labor intensive. 35% of the
funds will be allocated to staff time.)
$4,500 - Four Fam Trips for travel agents. Three will be a cooperative venture with Pan Am Commuter and the other, a cooperative venture with Oceanside, Escondido and Amtrak. Fam trips are labor intensive. 35% of
the funds will be allocated to staff time.
$12,000 - Publishing new or reprinting existlng promotion brochures.
8
52,000 - Purchase advertising specialty (giveway) items.
$74,922 Special Programs
$40,000 - Assist the City in managing the Futtsu Sister City
Carlsbad Convention h Visitors Bureau P.O. Box 4297 Carlsbad, CA 92008 (619) 729-1786
Division of the Carlsbad Chainbrr of Comnirrcr
Program and to promote a mutually agreed upon list of community events. This
will involve meeting with committees of groups sponsoring the events to
develop a promotional program and purchase advertising space or printing.
These programs are labor intensive. 35% of the funds will be allocated to
staff time.
310,000 - Publishing pronotional literature for CEEC. This wlll involve meeting with the CEEC board to develop the literature, design,
photography, layout of literature and coordinating with typesetter and prin-
ter. 35% of the funds will be allocated to staff time.
$24,922 - Basic operating expenses of the Tourist Information
Center in the depot from Oct. 1, 1989 - June 30, 1990. No salarles are In-
cluded in the City's portion of the budget. The costs are:
Janitorial $ 567
Malnt enance 5 40
Ut I1 i t les 1440
Telephone 5400
Post age 3600
Off ice Supplies 675
BookkeepIng/Legal/Insurance 4500
Equipment lease 4500
Mileage Expense 650 Stationary/Envelopes/Forms 1050
City Audit 2000