HomeMy WebLinkAbout1990-06-26; City Council; 10697; CCVB QUARTERLY REPORT FOR PERIOD ENDED MARCH 31, 1990r ?
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MTG. 6/2 6/90 CCVB QUARTERLY REPORT FOR PERIOD ENDED CITY
DEPT.FTN MARCH 31, 1990 CIl-7
RECOMMENDED ACTION:
Adopt Resolution No. 78*2/3 adopting the 1990-91 Budget for the Carls Convention and Visitor’s Bureau.
IT EM EXP LANAT I OH :
During the month of April, the Carlsbad Convention and Visitor’s Bureau ( submitted their quarterly report for the period ended March 31, 1990. has now completed an in depth review of the CCVB operations for the first months of the 15-month contract period and is presenting the following r to the City Council.
For the period ended March 31, 1990, CCVB has expended total of $108,2 approximately 45% of their total budget. Although this appears to plac CCVB in a good fiscal position for this point in the year, a closer lo the numbers shows that a total of 77% of the funds allocated to administr have been spent whereas only 16% of funds designated for programs were through the end of March. At this time, we would expect CCVB to have exp approximately 60% of their total ongoing administrative budget. Based or spending pattern, CCVB could expect to spend as much as $147,0C administrative costs through the end of the contract. This would e budgeted administration costs by approximately $32,000. A straight forecast of program expenditures would forecast a total expendi tur $102,000 by year end or approximately $23,000 under the current budget.
Revenues for the first nine months of the contract period totaled $110,0 approximately 46% of the total budget estimate. Contributions from the for administration amount to approximately $70,000 or 60% of the budgeted amount. At this the City has not released any funds under the matching portion of the con which reserved $30,000 for programs on a dollar-for-dollar match basis. has raised approximately $25,000 in matching funds through the end of M This is very close to the $30,0000 matching requirement set by the Council. The CCVB has estimated that it will raise about $40,000 in mat funds for the 15-month contract period.
On a total basis, the staff estimate of CCVB operation would show that deficit of approximately $9,000 will be experienced by the end 01 contract.
Payment for programs to CCVB totaled $15,000.
_-.___-___......_._ ___. . __ _____ ... . ITIT[ Pr:g? 1 Project&
Budget 9 Monlhs Under (Over) Expended Expenditures Under (Over)
Budgel Accounl Amount Actual Budget To Dale Revenue Budget
Expendilure Catagory -
Adminlslration 114,700 88.033 26,667 76.75% 146,722 (32,027)
Programs 125,300 20,164 105,136 16.09% 102,365 22,935
Total Contract 240,000 108,197 131.803 45.08% 249.087 (9,087)
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Revenue Catagory
Cily Conlribulions
Adrniriislralion 114,700 69.887 44.813 60.93% 114.700 0
Programs - Non Matching 55.300 14,617 40,683 26.43% 55,300 0
Programs - Matching 30,000 0 30,000 0.00% 30,000 0
DonationsiOther 40,000 25.297 14,703 63.24% 40.3GO 0
Iota! flcvonuo 240,000 109,801 130,139 45.75% 240,OCO 0 ______-___-___ ____ ----- -- -- - ~~ - - -
-_._____- (9,087) (9.087) ___. _._. ~ ._.__ Net Income (Loss) 0 1,604 1,604
_. ArnounIs afe bawd on an eudil 01 CCVBlCtismber records conducted In May and June IBW) -
c e e
Page Three of Agenda Bill No. /a, 677
The CCVB staff will be available at the Council meeting to answei questions the Council may have.
On June 19, 1990, the City Council directed staff to return with an discussing the appropriation of funds for the CCVB for fiscal year 199 Attached to this agenda bill is a copy of the CCVB Request for Funding fc period 10/1/90 to 9/30/91. Council may wish to discuss the budget requc well as the report of current activities at the meeting of June 26, 199C
Council wishes to proceed with the appropriation of funds for fiscal 1990-91, they may adopt the attached resolution at this time. The prc funding level for the CCVB for 1990-91 is $200,000 as shown in the prelin budget review by Council on June 19, 1990.
FISCAL IMPACT:
The City of Carlsbad appropriated a total of $200,000 for the support c CCVB through September 30, 1990. The 1990-91 budget request presented t Council on June 19, 1990 includes $200,000 for CCVB funding for the r: October 1, 1990 through September 30, 1991.
EXHI BITS :
1.
2. CCVB quarterly report dated April 13, 1990.
3. CCVB budget presented to the City Council November 7, 1989.
4. Summary Schedule CCVB audit dated March 31, 1990.
5. Letter from Steve Link dated June 8, 1990.
6. Letter dated May 3, 1990 - CCVB budget request.
Resolution No. ?0-2/3 appropriating funds for the 1990-91 CCVB Bud
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RESOLUTION NO. 90-213
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING
CARLSBAD CONVENTION AND VISITOR’S BUREAU THE 1990-91 OPERATING BUDGET FOR THE
WHEREAS, the City Council of the City of Carlsbad, California,
requested the proposed Operating Budget for the Carl sbad Conventior
Visitor’s Bureau (CCVB) for fiscal year 1990-91; and
WHEREAS, the City of Carlsbad and CCVB have entered intr
agreement for the provision of services dated November 20, 1989 re1
to the promotion of the City of Carlsbad; and
WHEREAS, funds are available within the General Fund to support
appropri at i on.
NOW, THEREFORE, BE IT RESOLVED by %he City Council of the City
Carlsbad, California as follows:
1. That the amount of $225,000 is hereby included in the 199
Operating Budget for the support of the CCVB operations for
period 10/1/90 to 9/30/91.
That the current contract between the City and CCVB will be modi
to reflect that $55,000 of the appropriated funds may be rele
to the Chamber on a dollar for dollar basis as matching funds.
2.
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PASSED, APPROVED AND ADOPTED, by the City Council of the Citj
Carlsbad at a regular meeting of the City Council held on the
of June , 1990, by the following vote, to wit:
26th
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
ATT&
ALETHA L. RAgEN$*k
(SEAL)
i
0
LA i,
April 13, 1990
Debbie Neville
Sr. Management Analyst
Finance Department
City of Carlsbad
1200 Elm Avenue Carlsbad, CA 92008
/-
Dear Debbie:
Attached is a synopsis of the major activities of the Carl:
Convention and Visitors Bureau from January 1 - March There is some duplication with the previous quarterly repo.
I was under the impression the previous report was to incli
January.
I am also including some newspaper clippings to provide yoi a broader perspective of our activities.
If you need additional information, please call me.
31,
Sincerely,
..A(>+.- /*-
Steve Link Manager
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The ConVis has carried out several marketing programs during
this period.
1. Trade Shows
January 4: In cooperation with the North County Marketinc Group, the ConVis manned a booth at the Mixer Plus Visito:
Industry Trade Show at the San Diego Convention Center.
January 15: The ConVis met with 150 visiting travel ageni
from the United Kingdom at a mini trade show at Sea World
February 3-4: The ConVis booth was at the Orange County Register's Travel Show at the Orange County Fairgrounds
in Costa Mesa.
March 3-4: The ConVis booth was at the Southern Arizona World Travel Show in the Tucson Convention Center.
March 17-18: The ConVis booth was at the LA Travel Show
at the Los Angeles Convention Center.
March 24-25: The ConVis booth was at the LA Times'
Orange County Travel Show at the Anaheim Stadium.
2. Sales Missions
January 11-13: In cooperation with the North County
Marketing Group, the ConVis participated in a sales mission to Silicon Valley. One hundred ninety travel
agencies from Redwood City to San Jose were personally
visited.
February 27-March I: In cooperation with the North Count:
Marketing Group, the ConVis participated in a sales
mission to Phoenix/Scottsdale. More than 300 travel
agencies were personally visited.
3. Community Events
The ConVis provided promotional support as well as suppor
in other ways for various community events. These includc
the Tournament of Champions - January 4-7, the Davis Cup .
February 2-4, the Clown Camp - March 9-11, and the Carlsb(
5000 - March 24-25.
4. Magazine Ads
January: Motorland
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February: Westways
March: Tucson Lifestyle
Motor land Competitor Magazine
Spring (quarterly): Golden State
Valley Guide (Phoenix)
Tucson Guide
5. Newspaper Ads
January: Orange County Register
February: Several ads were placed in the LA Times in
cooperation with the North County Marketing Group.
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CARLSBAD CONVENTION & VISLTORS BUREAU FINXNCIAL STATEMENT
YEAR 1989-1990 MONTH ENDING March 30
DATE OF REFORTApril 13
BUDGET ACTUAL BUDGET
Y -T -D Y-T-D MO
INCOME :
City of Carlsbad 119,997 92,714 13,333
Other (Fund Raisers, 24,012 24,589 2,668
Cooperative Fees,
Donations, ?fisc.)
TOTAL INCOME 144,009 11 7,303 16,001
EXPENSES:
Admini s t ra t ion 68,891 76,374 7,495
Operation 13,688 17,430 1 , 675
Pro j e c t s /Programs 61,416 23,163 6,824
TOTAL EXPENSES 143,995 11 6,967 15,994
NET PROFIT (LOSS) 14 336 7
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VISITOR INFORMATION SUMMARY
January 1, 1990 - March 31, 1990
CA. resident Out of CA Foreicin Total
visitors visitors visitors montl
JANUARY 437 3 14 118 869
FEBRUARY 433 342 121 896
MARCH 396 399 162 957
3 month totals 1266 1055 401 2722
Above figures represent one member of family and/or group
JAN FEB MAR TOTAL:
-
Phone inquiries 172 202 213 587
Mail outs 329 449 328 11oc
Travel agent 197 285 2 14 69' mail outs
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Have Booth Will Travel
ConVis took their show on the
road and participated in four
major travel-trade shows during the past month. ‘mat we got for
our efforts were tired feet and
thousands of people who are now better informed about Carlsbad’s
charms,’’ reported ConVis Manager Steve Link.
The combined attendance at
these four shows totaled more than
60,000 people including almost 4,000 travel agents. ”At each of
“They may fantasize about a cruise to Tahiti for awhiIe -but then they end uP corning to Carlsbad. we are the vacation
destination that is most practical
and affordable for the average farni1Yt’’ said Link.
The four shows were: Orange
Comfy Register‘s Trave1 Show,
L.A. Travel Show, Southern
Arizona World Travel show and
the LA. Times’ Orange County
public relations director for
ConVis, those working in the
director sf sales for the Tamarac
Beach Resort and her assistant
Christine White; Karen Mosher,
director sf sales for the Lexingto Hotel Suites; and Carol Dudeck,
director of sales, and Mary Kay
Walker, outside sales
volunteers who work in
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(L to R) Bonnie Teksfra (Tamarack Beach Resort sales director) and Carol Dudek
(Carlsbad Inn sales director) talk with interested travel consumers at the recent
Orange County Register Travel and Trade Show.
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Travel Agencies Invaded by North 1
County Volunteers
The dictionary defines blitz as a
sudden overwhelming attack. This aptly describes last month's sales
three days, they personally visited
more than 300 travel agencies in
Phoenix and Scottsdale.
told them I was from a beach community just north of San Diego,
they were eager to talk to me," reported Beverly Jenks, sales director
of the Raintree Grill and Bar. "I am
pleased with the reception I received
at every agency I visited."
The sales mission was organized by
the North County Tourism Marketing
Group, a joint project of the cities of Carlsbad, Oceanside, Escondido, San
Marcos and Vista. Team members
presented each agency with a packet
of brochures touting North County
communities, attractions and hotels. They informed the travel agents of
leisure and business clients into North County hotels. The sales mission concluded with a reception
and trade show featuring displays of
North County communities.
The benefits of the sales mission were quickly received. "In the first
week following the trip, the Tamarack Beach Resort received
bookings from three travel agencies I
visited in Phoenix," claimed Bonnie
Tekstra, sales director for the resort.
The group's programs are funded
by San Diego County's Community
Enhancement Program through the office of the 5th District Supervisor,
John McDonald.
mission to Phoenix by 19 people. In the advantages of booking their I
'When I walked into an agency and
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CARLSBAD CHAMBER OF COMMERCE
CARLSBAD CONVENTION AND VISITORS BUREAU BUDGET FOR PERIOD 7/1/89 TO 9/30/90
Total city Budset Payment ccVB
Maqazines/Newspaper Ads $ 63.000
Advcrtismnts will bc placed in magazines and newspapers that
reach our target market. These include: Hotorland, Yestways.
Golden State, L.A. Hagazine, California Travel Guide, Travel & Leisure. San Diegan, L.A. Times. Phoenix Gazette, Arizona Republic and Orange County Register.
Trade Yhovs aod Blitzes 12,000
Nov. 16. 1989 Convis Annual Travel Show
NOV. 24 - 26 San Diego Convention Center Grand Opening
Fdl. 3 - 1. 1990 Orange County Register Travel Show Hnr. 2 - 3 ASTA lravel Stm - Tuscon, Arizona
Mar. 17 - 18 L.A Travel Show
Mar. 21 - 25 Orange County Travel Show
.hn. 8 - 12. 1990 Ulitzing San Jose Area
Feb. 26 - Mar. 1 Blitzing Phoenix. Scottsdale Area
Fam trips for travel agents and travel writers. for 35 travel agents wtx, will visit us on kt. 26 - 29. 1989. This is a cooperative venture with keanside. Escondido and Pmtrak. Thrcc travel agent fam trips to Carlsbad are planned in cooperation with Pan Am Camruter Airlines.
There is a fam trip
Print/Reprint Brochures 12.000
Advei tising Specialty Itms 2,000 __
(e’- 9.135 ’ /’ , ,,Ptmtional fund for Local Cmunity Events.
Total Programs $102,635 $ 85.300 SI
2
$200,000 $JJ
brtninistrafive and Operations Expenses* 137,365 I 14,7no -
TOTAL $?40.000
Adninistrative and Operations Expenses shdll include $4.500 for annual audit expenses and property ta
The Charher will pronptly pay all Invoices related to these expenses wl
the.
on the ATbSF Dept property.
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Carlsbad Convention-Visitors' Bureau
d Division of the Carlsbad Chamber of Commerce
Pro-Forma Statement of Reimbursement, Revenue and Bxpenses
Hine months ending March 31, 1990
Actual Projected Pro-Forma 1989-1990 Pro-?ora
9 months Six months 15 month 15 sonth (0ver)Und
Reiebursenents and Revenues: to 3/31/90 to 9/30/90 to 9/30/90 Budget Budget
Reimbursements fron Carlsbad:
Administration 7/1/89-9/30/89 25,076.00 0.00 25,016.00 25,077
Administration 10/1/89-9/30/90 44,811.48 44,812.52 89,624.00 89,623
To ha 1 69,881.48 44, 812.52 111,700 .OO 114,700
Programs: Hon-matching 11,616.60 40,683.40 55,300.00 55 , 300
Prograas: Hatching 0.00 30,000.00 30,000.00 30,000
Total 14,616.60 10 , 683.40 85 , 300. 00 85,300
Total Carlsbad 84,504,08 115,195.92 200,000.00 ZOO , 000
Revenue from Other Sources 25,296.50 14,103.50 40,000.00 40,000
Total Reimburserents h Revenue 109,800.58 l30,199.42 240,000.00 2UJ,OOO
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Expenses:
Admin & Operations:
Salaries 52,412 -25 34,941.50 81,353.15 89,500 2,
Benefits 5,561.30 3,711.53 9,218.83 1,875 (1,
Payroll taxes 6,861.42 4,514.28 11,435 .70 1,500 (3,
Acc t inglsec ty/ legal 1,700.00 1,133.33 2,833.33 5,150 2,
Insurance 850.00 566.67 1,416.67 1,500
Equip rental 1,116.57 144.38 1,860.95 125 (1, Utilities 1 , 295.65 863.71 2,159.42 2,250
Haintenance 992.03 661.35 1,653.38 600 (19
Janitorial 519.65 386.43 966. oa 1,163
Telephone 3,616.10 2,410.73 6,026.83 7 , 500 1,
Postage 2,518.53 1,679.02 4,191.55 4,500
Office supplies 2 , 594.44 1,729.63 4,324.07 2,250 (2,
nileage expense 713.62 515.75 1,289.37 1,875
Mesbership/confernce 5,967.31 3,918.25 9,945.62 2,847 (1,
Publications, etc 1,188.56 792.31 1,980.93 1 , 800 (
Total Adain & Oper 88,033.49 58,688.99 146,122.48 131,635 (9,
Program hpenses: Mag & nenspaper ads 12,828 .ll 50 , 171.29 63,000.00 63 , 000
Trade shows 3,734.60 8,265.40 12,000.00 12,000
Brochures 833.55 15,666.45 16,500.00 16,500
Specialty ads 1,621.41 108.59 1,130.00 1,130
local event proao's 1,145.44 7,989.56 9,135.00 9,135
Total Program Exp. 20 , 163.71 82,201.29 102,365.00 102 , 365
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total Gxpenditures 108 , 197.20 140,890.28 249,087.48 240,000 (9
Het income 1,608,38 [10,690,86) (9,081.48) 0 (9
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June 8, 1990
Mr. Jim Elliott Finance Director City of Carlsbad
1250 Carlsbad Village Dr.
Carlsbad, CA. 92008
Dear Jim,
This is in response to the perusal of our financial records
by A1 Capuchin0 last week. The perusal by A1 is appreciate( because it alerted us to some potential shortfalls and to a couple of expenses that were inadvertently logged under the wrong category.
I can assure you that we are in no danger of exceeding our
budget this year. 1 have personally begun a recheck of eve! expense since July 1, 1989, to insure they are logged under
the correct category. I will provide you a precisely correc expense sheet by June 15, if you wish to use it to project
expenses for the remainder of the year.
Take the category of' conferences, for example. It shows thc greatest potential shortfall in Al's report. I only attend two conferences per year; the Chamber's Retreat in December and the Governor's Conference on Tourism in March. So the figure will not grow between now and October. Additionally we discovered well over two thousand dollars had been applic to that category that were expenses associated with some trr
shows we attended.
There is one real shortfall. This is in the areas of benef.
and taxes. I estimated far too little an amount for this.
However, we will come under budget in salaries by about $3,1 If these funds can be applied to the shortfall in benefits r
taxes, we will be okay. Also, the projections in the salar: benefits and taxes categories will be less than shown. If ; recall, I was given a $1,000 moving expense payment in July Cleta Wright was given a temporary pay raise for the many e:
hours and increased responsibility she bore during the tranr
tion to the new manager. These amounts should be accounted
in a projection.
Again, thank you for permitting A1 to peruse our books. He was very helpful.
Manager
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BAD
CHAMBER OF COMMERCE
May 3, 1990
Mr. Ray Patchett, City Manager
City of Carlsbad
1200 Elm Avenue
Carlsbad, CA. 92008
Dear Ray,
The Convention dl Visitors Bureau is requesting from the City of Carlsbad to fund our programs and operate the nformation Center
:October"'i," 1990 to Sep~-ernbe~30~$9@#
The nominal increase over cts the FlTght 1 :higher 'administrat ive -cos€ iiFX f he-- cost * of
producing a tourism orlente
It is important to maintain the consistency and momentum of our marketing
programs so Carlsbad's hospitality industry will continue to prosper. The
rapid growth in the hospitality industry has slowed this past year.
While T.O.T. revenues have increased substantially since 1987, most of the
crease is due to the higher rates. The revenues to the hotels are increasj
only slightly.
CALENDAR YEAR TOT REVENUES HOTEL REVENUES
-_--_-_____^ -------------- -------------
1987 $1, 898,417 $31,638,967
1989 $3, 041,147 $36,272,829
1986 $2,391,761 $35,439,534
The average occupancy rate of San Diego County hotels dipped to 53.7% in
January, down from 57.2% in January 1989. This is the lowest level in more than a decade. In the local area the occupancy rate was 54.3% compared to
56.4% in January 1989.
The oversupply of hotel rooms in San Diego is causing hotels throughout the
county to reduce rates and compete more fiercely.
54) 1 Avenida Encinas, Suite 100 P.O. Box 1605 Carlsbad,California 92008 (619) 729
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A-
Ray Patchett, Clty Manager
Page two
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Without community facilities to attract large convention groups, our hote
with the exception of La Costa, must rely on leisure and business travele
fill their rooms. Vith fewer leisure travelers in the winter months and
increased competition from San Diego, our hotels will contfnue to experie
difficulties in the winter months.
pur marketing strategy iwlll continue to focus on l@@u ravelerq from t
2Los Angeles, Phoenix and-Tucson-Fnptropolitan areas. As funds permit, we i
promote Carlsbad in various medla In
to entice visitors to Carlsbad in th
:This year, we are-a?ranglng"fo nal ventures wit 1
Grand -Ai r wa ys ,"--t he . new- commut e
'We- a r e" pl ea s ed- w i t li * t ha'" Bur ;ea U'"Fl fiv unity events. (
particlpation is increasing the number, size and scope of community event
this year.
We will be pleased to provide you with any additional information you nee!
I_r_l__ - - -" -T - - .-.x. I_
. - --" I ~-~-"-
LEE BOHLMANN
Execut Ive Director
Enc.
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\ PROPOSED CONVIS BUDGET FY 90-91
ADMINISTRATIVE EXPENSES:
$116,500 Salaries and all expenses to operate the Bureau
and the Visitor Information Center at the Depot
2,000 City Audit
2,500 Depot Property Taxes
~12i,OOO Total
PROGRAMS :
$ 85,000 Multi Media Advertising
12, 000 Trade Shows
10,000 Tour Ism Yldeo
4,000 Fam Tr ips
liJ 000 Pr in t Brochures
2,000 Advertising Specialty Items
10,000 Special Events
$134,000 Total
$255,000 Grand Total
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$225,000 From City
$ 30,000 From Fees & Donations