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HomeMy WebLinkAbout1998-07-28; City Council; 14791; Carlsbad Convention and Visitors Bureau‘ -, ilTy OF CARLSBAD - AGENbA BILL AB# 14,791 TITLE: CARLSBAD CONVENTION AND VISITOR’S BUREAU MTG. 7/28/g8 REPORT FOR THE PERIOD ENDING APRIL 30,1998. DEPT. ED RECOMMENDED ACTION: CITY MGR Accept the report and direct staff regarding a proposed contract amendment. ITEM EXPLANATION: On October 21, 1997, the City Council authorized the Mayor to execute a two (2) year agreement with the Carlsbad Convention and Visitors Bureau (CCVS) for community promotion purposes. The contract is for the period November 1, 1997 and will run through October 31, 1999. Total fees payable to CCVB for the first year shall not exceed $235,000, and $243.000 for the second year. Services CCVB will provide to the City, and that are specified in the contract, are as follows: A. Manage and coordinate a marketing program that positions Carlsbad as a prime destination in Southern California. B. Generate awareness of Carlsbad in those geographic regions of the United States which provide the largest number of visitors to Carlsbad each year. C. Operate the Visitor’s Information Center. D. Provide familiarization tours/travel writer program. E. Promote local community events, including the San Diego Marathon, the Carlsbad 5000, the Carlsbad Triathlon, the La Costa Golf event, and the Toshiba Tennis Classic. F. Develop private funding for advertising co-op programs, central reservations fees, and other participatory fees to support a full-time, aggressive tourism marketing program. G. Establish a corporate/group sales incentive program. Each quarter, CCVB is required to provide the City Council with a report of its activity and expenses. CCVB has submitted their latest report summarizing their activities for the period February I,1998 through April 30, 1998 (EXHIBIT 1). CCVB Report Highlights: 1. The number of visitors served at the Carlsbad Visitor’s Information Bureau offices was down 9% from the same period last year ( 9255 to 8440). 2. The number of telephone inquiries were down slightly by 2% (7484 to 7292) from the same period last year. 3. The number of internet inquiries (e-mail inquiries for hotels, meetings, conventions, etc.. .) was 132, more than double the prior quarter. This represents a new method for CCVB to respond to potential visitors. 4. CCVB recently implemented a volunteer program that provided an additional 132 hours of service during the period. 1 , PAGE 2 OF AGENDA dILL NO. 14,791 c4 REQUEST FOR CHANGE IN CONTRACT In late June 1998, CCVB submitted a request to reduce the Travel Show allocation from $32,000 to $28,000 (a $4000 reduction), and reduce the allocation for Brochures from $25,000 to $15,000 (a $10,000 reduction). In addition, CCVB is requesting that the combined reduction in these allocations ($14,000) be transferred into the Advertising Account. The increased allocation to advertising will be used to counter negative publicity stemming from national reports of El Nino in California coastal communities, and to expand the advertising coverage of Legoland. The letter requesting the change is attached (EXHIBIT 2). If the City Council agrees with the request from CCVB, they may direct staff to amend the contract accordingly. FISCAL IMPACT: The City’s Agreement with the Carlsbad Convention and Visitor’s Bureau established $235,000 as the total amount of funding for the twelve (12) month period from November 1, 1997 to October 31, 1998. The contract includes $114,000 for operation of the Visitors Center, and $121,000 for programs. Payments from the City during this period totaled $86,209, with total contract payments to date of $159,168.20. Expenditures for the period totaled $99,968. Visitor Center operations totaled $28,500 or 40% of the expenditures. The remaining expenditures ($71,468) were for programs. Print advertising (magazines/brochures) was the largest single outlay in this category totaling $27,907. Expenditures for participation in trade shows totaled $10,880, followed by brochures ($10,802) and promotion of community events ($6,300). EXHIBITS: 1. Report from the Carlsbad Convention and Visitor’s Bureau for the period of February 1, 1998 through April 30, 1998, dated May 29, 1998. 2. Letter from Carlsbad Convention and Visitor’s Bureau dated June 18, 1998. EXHIBIT 1 - May 29,199s Cynthia Hass Economic Development City of Carlsbad 2075 Las Palmas Carlsbad CA 92009 Dear Cynthia: Attached is the financial report and a synopsis of major activities of the Carlsbad Convention and Visitors Bureau for the period February 1,1997 - April 30,199s. If you have any questions, please call me. Please notify us when this will be placed on the Council Agenda so we can be present to answer questions. Executive Director Enclosure Carlsbad Convention & Visitors Bureau P.O. Box 1246 l Carlsbad, CA 92018- 1246 (760) 434-6093 l Fax (760) 434-6056 www.carlsbadca.org Cii of Cadsbad County of San Diego Regional Partners Hotel Co-op Marketing Partnership Depot Sales Misc. Promotions Total Carlsbad Convention & Visitors Bureau Accounting of Funds For the Quarter Ended Apr 30,1998 Income For the Quarter Contract to Data $ 88,209.OO $ 159,168.20 6,OOO.OO 14,ooo.oo 18,785.OO 21,884.05 2,250.oo 3,186.29 748.00 1,535.85 760.00 $ 113,992.oo s 200,534.39 Visitor Center Operatiis Personnel: Management For the Quarter $ 2,500 Staff Salaries 13,100 Benefits 700 Payroll Taxes 5,102 $ 5,250 26,940 1,475 10,370 Total Personnel $ 21,402 $ 44,035 Overhead: Utilltles Outside Services Maim/Rental Equipment Allocation Office Supplies Postage Travel Insurance Conferences Memberships Telephone Items for Resale Misc. Fees 1,039 1,528 485 1,180 659 887 183 921 1,301 2,411 33 85 323 657 1,573 2,585 770 1,220 294 663 427 658 31 170 Total Overhead $ 7,098 $ 12,965 Equipment Purchases: Items Cost Total Equipment Total Visitor Center Operatiis: $ 28,500 E:\ConVii\Financial Reports\Quattedy RepotiConvis Accounting of Funds April361998 $ 57,000 - Program Expenditures Accounting of Funds For the Quarter Ended April 30,1998 TOTAL EXPENSES For the Quarter 8 1,000 83 328 s $ 3,500 2,700 100 $ s 4,000 900 5,480 500 $ $ 4,900 487 27,907 311 4,000 500 8 $ 3,945 10,802 $ s 45 6 COilfEEttOD&2 Travel Writer Program: Management Allocation Meals Equipment Allocation Fees Supplies Telephone/Postage Subtotal Community Events: Management Allocation Equipment Allocation Promotion Travel Subtotal Trade Shows: Management Allocation Booth Fees Travel Costs Supplies/Materials Subtotal Advertising: Management Allocation Equipment Allocation Ads Production Costs Telephone/Postage Supplies Subtotal Brochures: Management Allocation Equipment Allocation Design & Printing subtotal Video: Management Allocation Production Costs Subtotal Marketing Partnership Subtotal $ 2,500 87 2,500 328 100 $ 1,411 t 5,515 10,280 21,976 53,369 27,207 45 7,000 3,180 100 s 6,300 s 5,550 900 15,026 500 $ 10,880 $ 8,900 467 37,608 1,394 4,500 500 $ 38,085 $ 14,747 8,345 18,862 s 45 $ 118,392 $ 175,392 Total Program Expenditures: $ 71,468 Total Period Expenditures: S 99,968 E:\ConVi\Financial Reports\Quarterly RepodConvis Accounting of Funds April30-1998 Visitor Information Summary February 1,1998 - April 30,1998 February CA resident Out of CA Visitors Visitors 1998 1997 1998 1997 878 1,158 1,145 1,446 Foreign Visitors 1998 1997 119 I30 Total for Month 1998 1997 2,142 2,734 1,470 I,dlI 1,419 1,551 152 142 3,041 3,304 1,628 1,715 1,457 1,320 172 182 3357 3,217 3 months total 3,976 4,484 4,021 4,317 443 454 8,440 9,255 Above figures represent one member of family and/or group. Phone inquires Mail outs Travel Agent Mail outs 1998 1997 1998 1997 1998 1997 February 2,201 2,160 744 822 203 123 March 2,569 2,898 1,757 1589 197 I40 April 2,522 2,426 1,539 I, 770 209 137 3 months total 7,292 7,484 4,040 4,181 609 400 . . INQUIRIES 2ND QUARTER 1998 ADVERTISERS Feb. 98 Mar. 98 Apr. 98 4 12 4 Alaska Airline 4 0 23 Arizona Daily Star 0 0 7 Association Meetings Mag 40 0 0 AZ Senior World 0 5 2 CA Tourism Visitors Guide 50 9 507 CA Travel Planners Guide 15 1 110 Travel & Leisure Travel 50 Bevond Travel Agent-Magazine 0 0 168 Tucson Lifestyle 10 6 10 Vacation Magazine 0 4 189 Western Association News 3 0 0 Westworld AAA (Canada) 25 18 6 Programs to Attract Groups During this three-month period, we advertised in several publications aimed specifically at travel professionals including group tour organizers and meeting planners. These were: Association Meetings (February issue) Insurance Conference Planner (March issue) Meetings in the West (February issue) Religious Conference Planner (April issue) Travel Agent Magazine (March issue) Diana Aaron manned the Carlsbad booth at California Travel Mart, a travel show exclusively for travel professionals. Steve Link manned the Carlsbad booth at ITB in Berlin, a travel show attended by a large number of travel professionals. Diana Aaron participated in the European Tour Operator Reception in Los Angeles. Staff worked with the CA Division of Tourism to host a visit by a dozen London tour operators. Diana Aaron conducted sales calls to tour operators in Los Angeles. ConVis was a sponsor of the Carlsbad 5000 and the Volksmarch during this period. Through our Internet web page and in response to our advertisements, we provided viable leads to hotels for meetings and conventions totaling more than 15,060 people, requesting 3,232 room nights. Most groups were requesting meeting spaces. Names are available upon request. These are in addition to the individuals who inquired in response to our advertising programs. I IN-KIND SERVICES Feb 3-5 Olympic Resort hosted a French travel writer for two nights. (Value $200). Neimans hosted one dinner. (Value $35) Feb 11 Snow Bird party hosted by Beach View Lodge for approximately 60 people. (Value $800) Feb 18 Hotel Motel Committee meeting hosted by Carlsbad Inn, including lunch. (Value $500) Feb 23 KSNE-FM Las Vegas conducted a month long contest with the prize being a trip to Carlsbad. (Value of air time $6,150). The 2-night stay with meals at Olympic Resort plus airfare from Las Vegas. (Value $500) Mar 7 A travel writer was hosted by Four Seasons Resort Aviara for three nights. (Value $1,400) Mar 18 The Hotel/Motel Committee meeting was held at the National Association of Music Merchants and lunch was provided by Seashore on the Sand. (Value $500) Mar 26 Andersen’s Inn hosted a luncheon for tour operators that attended the California Travel Mart. (Value $300) Apr 15 The Hotel/Motel Committee meeting was hosted by Tamarack Beach Resort. (Value $500) Apr 25-26 Beach Terrace Inn hosted a dozen tour operators from London for two nights including a wine and cheese reception. (Value $2,000). LEGOLAND hosted them for a breakfast off Raintree. (Value $200) Apr 28 La Costa Resort and Spa hosted two travel writers for two nights. (Value $800) a Volunteer Program ConVis has a volunteer program. We are continually looking for and recruiting new volunteers. The following chart illustrates volunteer hours worked. VOLUNTEER HOURS WORKED 2ND QUARTER 1998 Carlsbad Convention and Visitors Bureau NAME Ursula Belick Cathy Belt June DeVito Teresa Durso Gladys Hayes Morris Hayes Lucy Henson Kay Karins Kelsie McMiren Sonia McPartland Ginny Roblez Frank Stasio Mary L. Trolson Jane Witman MONTHLY TOTAL= FEB. 18 16.5 9 19.5 20.25 3 12.5 98.75 MAR. APR. 20 13.75 13.5 9.75 5.75 4.5 0 4 13 12 16.5 15.25 29.75 22 8 0 16 12.5 0 12 12 28 19 0 154.5 132.75 lo C ACTIVITIES February February February February February Feb - March February 2 February 3 February 3-5 Diana Aaron worked with a writer from Tucson Lifestyle Magazine. Staff worked with Schotte Media Partners in Germany to produce a German language brochure. Much of the design coordination was done over the Internet. We produced 20,000. Four thousand were to be distributed at the ITB travel show in Berlin. The remaining 16,000 will be distributed to travel agencies and consumers throughout Germany and Austria. The February issue of the Meetings In The West has a story on San Diego County including Carlsbad, plus a photo of the Flower Fields taken by Steve Link. The February issue of Sunset Magazine has a story recommending cycling along Carlsbad Blvd. ConVis staff assisted in the preparation of the story. This year is Carlsbad’s first mention in the World Travel Guide, a destination book distributed to travel agents throughout the world. A full-page ad costs $12,000. They provide an equal amount of space for the advertiser to tout his destination. Carlsbad is well represented with 244 pages of ads. Those agreeing to advertise were LEGOLAND, La Costa Resort and Spa, Ramada Inn Suites, Olympic Resorts, Andersen’s Inn and American Eagle. Steve Link wrote the 2-s pages of editorial copy. Diana Aaron is working with the other bureaus in the county to put on an informative interesting program for the international travel professionals attending California Travel Mart, March 22-25. The group is meeting 2-3 times per month. Staff worked with a travel writer from Vacations Magazine. Members of the German Film Fest Committee met to plan their event. Staff worked with French travel writer, Jean Francois Bessy, who was preparing a series of articles for a magazine. He was hosted by Olympic Resort, and met with the Public Relations Director for La Costa Resort and Spa. ! i February 9 February 9 February 10 February 11 February II February I2 February lb February 17 February 17 February 18 February 19 February 20 Staff worked with a travel writer from the Orange County Entertainment Guide. A representative of the Leukemia Society phoned from New Jersey and asked for a recommendation for 420 hotel rooms in North County for a three-day event in October. Steve Link recommended the four hotels near the Pointsettia exit of I-5. He provided her with phone numbers. The representative of the Leukemia Society flew to Carlsbad. Steve Link escorted her on a site inspection of the four hotels and the Raintree restaurant. She contracted with the hotels for 420 rooms for 3 nights (1260 room nights) in October. Since then she has booked the same hotels for another event this June. Staff helped and attended the SnowBird party hosted by Beach View Lodge. This annual party is held to welcome tourists visiting here from colder regions. Staff attended the San Diego Women in Tourism Meeting. The guest speaker was Floyd Best from Palomar Airport. The focus of the meeting was North County and time was given to talk about Carlsbad. The staff and directors of the De1 Mar Chamber of Commerce were given a tour of the Old Depot and briefed on our marketing programs by Steve Link. Staff met with representatives from Free Spirits Magazine to discuss a North County tourism publication. South Carlsbad Office Committee met. Members of the Regional Marketing Committee met to work on the design of the “Beach Train” brochure. The Hotel/Motel Committee meeting was hosted by Carlsbad Inn Beach Resort. The featured speakers were Mara McSparran of LEGOLAND and Claudia Piepenburg of Elite Racing (Carlsbad 5000). Staff conducted a site inspection tour of four hotels for the Visitor Center volunteers. Members of the Regional Marketing Committee met to work on the design of the “Beach Train” brochure. February 23 February 23 Februaty 25 February 23-26 February 26 Feb 28 - Mar 1 March March 4 March 7 Mar 7-12 March 12 March 16 The German Film Fest Committee decided to cancel the event because of concern about its chances of success. KSNE-FM 106.5, the #l radio station with adults in Las Vegas, asked to repeat the Carlsbad Getaway Promotion in February. This past fall, Diana Aaron worked with them on the Carlsbad promotion. They held a contest in February with the winners receiving free airline tickets from Southwest Airlines, two nights and dinner at the Olympic Resort. The announcements aired 41 times. The airings had a value of $6,150. The Board of Directors met. Diana Aaron participated in the Media Blitz to New York sponsored by the California Division of Tourism. Thirty representatives of California destinations and attractions traveled to New York where they met with 150 journalists. Lisa McDonald of LEGOLAND also participated in the trip. Staff worked with a travel writer from Entertainment Magazine. Steve Link manned the Carlsbad booth at the Phoenix Travel Show with Edrie Romans, Ramada Inn Suites and Carol Dudeck, Carlsbad Inn. In response to a lead developed by Diana Aaron on the Media Blitz to New York, staff researched several story ideas for broadcast on Good Morning America on ABC. Staff organized a tour of five Carlsbad hotels for the visitor center volunteers. Diana Aaron worked with travel writer Joseph Feinstein who writes for a Jewish heritage publication in Los Angeles. He was hosted by the Four Seasons Resorts Aviara. Steve Link manned the Carlsbad booth at the ITB Travel Show in Berlin with Rich Smock, Beach Terrace Inn. Staff organized a hospitality industry transportation meeting at the Carlsbad Inn. Diana Aaron attended the World Bridge Seminar sponsored by San Diego ConVis. The seminar focused on how to work with the international market. \3 - March 18 March 19 March 22 Mar 23-26 March 24 March 25 March 25 March 26 March 26 March 27 Mar 28-29 The March Hotel/Motel Committee meeting was held in the conference room at the National Association of Music Merchants. The featured speakers were Marylynn Badillo, NAMM meeting planner and Jan Sobel, Carlsbad Chamber CEO. Lunch was provided by Seashore on the Sand. Diana Aaron participated at the European Tour Operator Reception in Los Angeles. The reception enabled participants to talk directly to many of the largest tour operators in Los Angeles. Diana Aaron and Mara McSparran from LEGOLAND worked at the San Diego Airport to welcome in the California Travel Mart tour operators. Diana Aaron manned the Carlsbad Booth at California Travel Mart along with Edrie Romans, Ramada Inn Suites and Rebecca Stevens, Andersen’s Inn. This prestigious show is aimed at tour operators and other travel professionals from throughout the world. Diana Aaron, along with representatives of the other bureaus in the county produced an informative, entertaining program for the travel professionals. Staff provided information on Carlsbad to a meeting planner. Staff provided a tour of the Old Depot to 15 high school students visiting from Austria. Steve Link briefed them on our marketing programs. The Board of Directors met. Steve Link took several visiting businessmen from the Czech Republic to a Rotary meeting. Staff attended a post California Travel Mart Fam luncheon held at Andersen’s Inn. Diana Aaron conducted post California Travel Mart Fam tours of Carlsbad for three international tour operators. ConVis was a sponsor of the Carlsbad 5000. For many weeks prior to the event ConVis staff worked with organizers of the race to secure volunteers and helped promote the race. 4 March 30 April April 2 April 3 Apr 4-5 April 8 April 13 April 14 April 15 April 16 Apr 18-19 April 19 Jerry Rombotis and Diana Aaron drove to Ontario Mills to see the California Welcome Center and discuss the viability of a Welcome Center in Carlsbad. The April issue of Tucson Lifestyle Magazine contains a full-page article about Carlsbad. Steve Link is a member of the Mira Costa College Hospitality and Tourism Department Advisory Board. The board met to develop policies and curriculum and programs to increase enrollment. Steve Link met with Howard Gad, president of Heritage West, to discuss the plans for a new hotel on Carlsbad Blvd. Staff manned the Carlsbad booth at the LA Travel Show. The Transportation Committee met to discuss the need for a tourist shuttle within Carlsbad. A film crew from KMEX-TV, a LA television station, was in Carlsbad to feature Carlsbad as a tourist destination. They were provided a copy of the ConVis tourism video. Because of this, they only filmed at Alt Karlsbad and Barnstorming Adventures. Steve Link spoke on Carlsbad’s attractions at a luncheon of San Diego ConVis staff and volunteers. The Hotel/Motel Committee meeting was hosted by Tamarack Beach Resort. The featured speaker was Floyd Best, McClellan- Palomar Airport Manager. The updated Dining Guide was published. The guide is published every 7-8 months. Ten thousand are printed. Each of Carlsbad’s 145 restaurants are surveyed to insure accuracy. ConVis is the sponsor of the annual Volksmarch in Carlsbad. Walkers had a choice of a 5 or 1OK route that began and ended at the Old Depot. More than 350 people participated. Most were from out of town. ConVis was a sponsor of the Folk Festival in the Flower Fields. There was a band, Andersen’s served chili and Diana Aaron sold soft drinks. All of the proceeds went to “Kids Are Worth a Million”. April 22 April 22 April 24 Apr 25-26 Apt 25-26 April 26 April 28 Apr 28-29 April 30 Steve Link and Diana Aaron attended an Oceanside Chamber of Commerce luncheon. The Board of Directors met. Diana Aaron and two ConVis volunteers attended a volunteer recognition luncheon at Andersen’s Inn. A dozen tour operators from London visited Carlsbad. They were hosted by Beach Terrace Inn for two nights including a wine and cheese reception. LEGOLAND hosted them for breakfast. Steve Link and Diana Aaron gave them a tour of Carlsbad and showed the ConVis tourism video at breakfast. ConVis staff manned a table at the Flower Fields to solicit volunteers to work in the Old Depot as well as answer questions from tourists. The National Association of Music Merchants held a conference. Steve Link and two volunteers manned a table to provide information on restaurants and other interesting things to do. Staff provided press kits to Kevin Pilley and Stuart Abraham, travel writers that were hosted by La Costa Resort and Spa. Steve Link manned the Carlsbad booth at one-day travel shows in Bakersfield and Fresno. These shows, sponsored by American Airlines and American Eagle were open only to travel agents. Diana Aaron, Anita Boeker, Company Stores and Mara McSparran, LEGOLAND drove to Los Angeles to meet with tour operators. They had appointments to meet with five companies. ConWis B5.m ‘ The Iniasioti of the Chkkeheads by Steve Link, Executive Director .’ Carlsbad Convention & Visitors Bureau ./’ anuary was an awesome month for Carlsbad’s hospitality industry. With the Mercedes Championship PGA Tournament, the San Diego Marathon and the Super Bowl, our hotels, restaurants and merchants enjoyed the most profitable January ever. Now that the Cheeseheads have I& town, we can catch our breath. Or can we? We have our annual throng of Canadians and other snowbirds in town enjoying a respite from frigid weather. Trivia Question Editor’s Notes- Village Voice, under its current format and direction, celebrates its “Sixth Anniversary Edition” this month. Regular readers will notice a trimmed down version for this month. We are up to our eyeballs preparing for a dynamite issue in March to launch our new year! sey what’s the big deal about “Packers” implies a meat Weeseheads. Sure, Wisconsin packing industry. Since when s noted as a daiq state and is has Wisconsin been !snown for a aown for their cheese leadership in that industry? broducts. But they rank econd in the production of Cheeseheads-Meatheads, they [airy products (including still lost a great showtime game heese) to California. to a Good-Ol’-Boy quarterback from Granada Hills, CA and Yhat does the name Stanford who leads a herd of ‘Packers” have to with horses called the Broncos. Hc nything even remotely lead his horses to water and they onnected to that state? drank. --.- ConVis Continued The Answer To Steve Link’s Trivia Qrrcstion Each month the hotels report their room revenues to the city Which month 6f 1977 produced the first $5M revenue for the for tax purposes. There was a month in 1997 in which the hotels? Did you guess August? Wrong! It was October 1977. hotels reported more than $5 million in revenues for the first time ever. Which month was it? Answer to follow... ! See...we are not just a summer tourist destination anymore! ,. ,.: .,, . . . . . .I . ,,,.. I :;, ;.. . r CJonWis 36-i I MS WALK-Saturday, March 21.~1 / More than a thousand people are expected to walk in Carlsbad to raise feuds to combat Multiple Sclerosis. The Walk begins and ends at Cannon Park. Walkers have a choice of a 5K or 10K route. Registration forms are available in the Old Depot (ConVis). - Have Booth-Will Travel by Steve Link, Executive Director CARLSBAD S,OOO- Weekend of Mar. 28-29 Carlsbad Convention & Visitors Bureau On Saturday, March 28th, about 2,000 youngsters arc expected to compete in the Jr. Carlsbad Races in the ebruary was a & month for the ConVis. downtown area. Races range from a 25-yard Toddler Trot to > During the first weekend, we manned our booth at a one-mile race for older children. We all know what the the Orange County Travel Show. Sunday Carlsbad 5,000 is all about. >On February 3-5, we hosted a journalist from France, who was writing an article on golf vacations. I I _Tlte Health & Fitness Expo will be open all weekend on Roosevelt Street. On Sunday, an estimated 9,000 athletes and 20,000 spectators will descend on the Village for the undisputed best 5K race in the world. The race will be carried nationwide on ESPN. Let’s hope El Nino fizzles out by then! >On February 23-26, Diana Aaron, Dir&or of Public Relations for ConVis, traveled to New York with a delegation from the California Division of Tourism to meet with more than 100 journalists. > On the last weekend in February, we manned our booth at the Phoenix Travel Show. Other Events OfNote In Our City LOVE-IN Did this headline get your attention? Good...You should be aware of this wonderful event, held each year, to show the Canadians and other snowbirds, spending the winter in Carlsbad, how much we appreciate them. Organ&d by Eileen Olses the party was hosted by Beach View Lodge 1 on F~bruarv 1 lth. I at you want in the F “,c F Where should you go? The Carlsbad Village would be T :nice! How about an ocean view while reading your T T newspaper and sipping on your favorite morning brew. 7 J r T f Coffee, Danish, muffins, cereal, fruit, juices and even $ ;f yogurt are now being served by Tamarack Beach Resort q J’? at Dini’s By The Sea Restaurant every morning from ? IT ,T 7:OOam to 9:30am. ‘T T ‘TTtTTrtTTTTtrt’f”f’r*r’P”Pt’EtlP’PT”P’r~P”r”rl~ EXHIBIT 2 June 18,1998 CynthiaHaas Economic Development City of Car&bad 2075 Las Palmas Carlsbad, CA 92009 Dear Cynthia, As per paragraph 8 of the agreement between the City of Carlsbad and the Carlsbad Convention and Visitors Bureau, we are requesting a modification in the allocation of funds for our various marketing programs, as listed in paragraph 5B. Our records show that we have submitted six invoices during this contract period. The totals for each category of reimbursements compared to the original contract estimates are: Advertising $47,876.02 $48,000 Travel Shows 16,751.13 32,000 Fam Trips 3,049.94 6,000 Event Promotion 3,832.OO 9,000 Brochures 8,361.79 25,000 Video 0 1,000 Mgt. Expense 27,750.OO 68,000 We are requesting that Travel Shows be reduced from $32,000 to $28,000 and Brochures be reduced from $25,000 to $15,000. The $15,000 reductions can then be added to the Advertising category, increasing it from $48,000 to $63,000. There are several reasons for this. Our travel show expenses are consistently lower than anticipated. And our printing expenses are much lower than anticipated. For example, Smurfit Printing and Carlsbad Printing got into a bidding war to print our large brochure. The cost of printing it was $5,301 less that last year. Carlsbad Convention & Visitors Bureau P.O. Box 1246 l Carlsbad, CA 92018-1246 (760) 434-6093 l Fax (760) 434-6056 www.carlsbadca.org .’ . On the other hand, we are placing many more ads than we estimated at the beginning of the contract year. Part of this was due to El Nino. We felt we had to increase our advertising this April and May to counteract the nationwide perception that California beach communities were devastated by El Nino storms. And part of this is due to LEGOLAND The attention and excitement focused on LEGOLAND has opened a window of opportunity. We are able to inform the public about Carlsbad’s other attractions while they are learning about California’s newest themepark. This was our rationale for our co-op ad in the World Travel Guide. Next month we will be co-oping a full-page ad in a tariff book co-oping with LEGOLAND, Andersen’s Inn and Company Stores. The tariff book is published by ATI, the largest tour operator in the US. Each of these unanticipated opportunities costs us $2000-$3000. It doesn’t take long to use up our advertising budget. But the results will be well worth it. Sincerely, Executive Director