HomeMy WebLinkAbout2001-01-23; City Council; 16029; Economic Research Associates ContractclTY OF CARLSBAD - AGENDA BILL
AB# ! d! 029 TITLE:
MTG. 1-d 3-o 1 APPROPRIATION OF ADDITIONAL FUNDS AND AMENDMENT
OF PROFESSIONAL SERVICES CONTRACT WITH
ECONOMIC RESEARCH ASSOCIATES FOR SURVEY OF DEPT. H/RED CARLSBAD RESIDENTS AND TOURISTS REGARDING THE
ADEQUACY OF SHARED SERVICES AND FACILITIES
RECOMMENDED ACTION:
CITY MGR.a
Adopt City Council Resolution No. d;\m I- 30 approving an amendment to the professional
services contract with Economic Research Associates and appropriating $34,000 from the Council
Contingency Fund for consultant services to develop and conduct surveys to identify the shared
facilities and services needs of residents and tourists to the City of Carlsbad.
ITEM EXPLANATION:
Backqround
In response to one of the City Council goals for 1999-2000, a staff team worked with a private
consultant (Economic Research Associates) to complete an assessment of the impacts on, and needs
of, tourists in the City of Carlsbad as related to existing and projected service needs, projected
development needs, cost/benefit analysis, parking and other related services of facilities. At the time, it
was staff’s understanding that the Council requested the assessment to assist in the effort to identify
the need for various tourist-oriented services and/or facilities which had been the subject of recent
discussions such as a city-wide shuttle, additional parking in the Village Area, and demand and
location for new hotels.
The final assessment report was completed and submitted to the City Council for review in June/July
2000. The Tourism impact Assessment report included 1) a historical summary of policies and/or vision
statements related to tourism in Carlsbad; 2) an inventory of tourism attractions and a general
evaluation of the adequacy of existing facilities available to serve visitors; and, 3) a fiscal impact
analysis of existing tourism costs and benefits to the community. For the purposes of the initial tourism
impact study, a “tourist” was defined as “all overnight visitors plus all day visitors to LEGOLAND who
are not residents of Carlsbad.” This definition does not include day visitors from surrounding
communities who might come to Carlsbad to shop, enjoy the beach, or visit a local tourist attraction
other than LEGOLAND. Attached is a staff report which summarizes the key findings of the Tourism
Impact Assessment.
In the subject report, Economic Research Associates made several recommendations based upon the
Tourism Impact Assessment. One of the key recommendations was that the City of Carlsbad should
prepare a Tourism Master P/an or Tourism Strategy to formulate 1) policies and quality standards, 2)
coordinate tourism marketing, development, infrastructure, and service provision efforts, 3) establish
investment priorities, and 4) enhance Carlsbad’s brand name in the tourism market. According to the
consultant, one of the first steps of the master plan process is to design and administer a
comprehensive, scientific survey of Carlsbad’s tourists regarding their expenditure habits, lodging
locations, visit characteristics, attitudes about Carlsbad, and needs for services and facilities. As
directed by staff, the consultant was primarily focused on the habits and needs of tourists in the study
recommendations. However, because it is recognized that residents and their guests also utilize and
benefit from tourist-oriented services and facilities (i.e., Legoland, Hotels, Resort Restaurants, etc) and
that tourists benefit from resident-oriented services and facilities (i.e., parks, library, specialty retail,
etc), staff felt that it would be more appropriate to survey both residents as well as tourists on their
habits, attitudes, etc. as well as their shared need for various services and facilities, specifically those
that have a tourist orientation. Therefore, before proceeding with efforts to develop a Tourism Master
Plan or Strategy, it is staff’s recommendation that the City proceed with development and distribution of
the subject resident and tourist surveys.
Page 2
Resident and Tourist Survevs
As part of the Council goals for 2000-2001, a goal was included to develop and conduct the subject
resident and tourist surveys as discussed above. The subject surveys represent a portion of Phase II of
the Tourism Impact Assessment. The goal for these surveys is to obtain information from both
residents and tourists on their habits and attitudes as related to the desirability and utilization of
existing tourist-oriented services and facilities. If any services and/or facilities are deemed to be
inadequate, the goal will be to obtain information as to what enhanced or additional services and/or
facilities may be required to improve the quality of life for residents and/or the quality of the visit for
tourists. Staff believes this information will be helpful for future land use decisions as well as for service
delivery and budget purposes. For example, if the survey results indicate that more sit-down, upscale
restaurants with ocean views or more family-oriented, moderately-priced hotels near the beach are
desired by tourists and residents, this would be valuable land use information for the Redevelopment
Agency to incorporate into the new Master Plan for the South Carlsbad Coastal Redevelopment Area
and proactively encourage. This information may also be valuable for implementation of the City’s
Economic Development Strategy for the remainder of the City. The consultant (ERA) interviewed
various organizations to prepare the Tourism Impact Assessment report in Phase I. However, tourists
or residents were not consulted. The proposed surveys would test the findings and recommendations
of the consultant and provide for direct feedback at an individual user level. The survey information
would supplement the consultant information to assist the City in its efforts to gain a better
understanding about the adequacy of existing tourist-oriented services and/or facilities.
The consultant services of Economic Research Associates (ERA) are needed to assist staff in
developing and conducting the noted surveys. Because ERA completed the initial impact assessment
and has considerable experience with tourism surveys, staff is recommending that the ERA contract be
amended to expand the work scope to develop and conduct the subject surveys. The additional cost
for developing and conducting the noted surveys is $34,000. It is proposed at this time that the surveys
include a telephone survey of 500 residents and an intercept survey of 800 tourists to the City. The
consultant has proposed to conduct one-half of the tourist surveys in the Spring, 2001 (March/April)
and one-half in the summer, 2001 (August). The resident surveys will be conducted as soon as the
survey instrument can be developed and arrangements made for the phone interviews. It is anticipated
that all of the resident surveys will be complete by June 30, 2001.
Staff Recommendation
At this time, staff is recommending that the City proceed with Phase II of the Tourism Impact
Assessment by amending the contract with ERA and appropriating the funds to develop and conduct a
survey of residents and tourists as related to the shared-use of, and additional needs for, tourist-
oriented services and/or facilities within Carlsbad. The City Council may or may not decide to proceed
with the development of a Tourism Master P/an or Tourism Strategy depending upon the information
obtained through the subject surveys.
To proceed with Phase II of the Tourism Impact Assessment and complete the surveys, staff is
requesting that the City Council appropriate an additional $34,000 from the Council Contingency Fund
to expand the scope of work for professional consultant services provided by ERA. Staff is also
requesting that the Council authorize the City Manager to execute the amended professional services
agreement between the City and ERA for the subject consultant services to complete the subject
surveys.
AE3# I b ,oacl
Page 3
FISCAL IMPACT:
The cost of Phase I of the Tourism Impact Assessment was $45,320. Phase I is complete and all of the
previously approved funds have been expended. The cost for the survey portion of Phase II of the
Tourism Impact Assessment is $34,000. Since funds have not been previously appropriated for the
surveys, staff is recommending that the funds for the required consultant services be appropriated from
the Council’s Contingency Fund. A balance of approximately $3.7 million currently exists within the
Council’s Contingency Fund. If the Council decides to pursue development of a Tourism Master Plan or
Tourism Strategy at a later date, additional funding will be required for the costs to develop the Plan or
Strategy. These costs may include expenditures as related to additional consultant services.
EXHIBITS:
1.
2.
3.
City Council Resolution No. gm \ - SC) approving the amendment to the professional
services agreement between the City of Carls’bad and Economic Research Associates and
appropriating the funds for consultant services to complete the survey portion of Phase II of the
Tourism Impact Assessment.
Amendment to Professional Services Agreement between City of Carlsbad and Economic
Research Associates for consultant services to complete the survey portion of Phase II of the
Tourism Impact Assessment.
Staff Report on Key Findings from Tourism Impact Assessment (Phase I).
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CITY COUNCIL RESOLUTION NO. 2001-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARJSBAD,
CALIFORNIA, APPROPRIATING $34,000 FROM THE COUNCIL
CONTINGENCY FUND FOR PROFESSIONAL SERVICES TO COMPLETE
THE SURVEY PORTION OF PHASE II OF A TOURISM IMPACT
ASSESSMENT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH
ECONOMIC RESEARCH ASSOCIATES FOR THE SUBJECT SURVEY
WHEREAS, the City of Carlsbad, California, has a need and a desire to complete a
comprehensive assessment of the impacts on, and needs of, tourists and residents in the City as related to
tourist-oriented service and/or facility needs as well as cost/benefit analysis of tourism; and
WHEREAS, the City of Carlsbad completed Phase I of the Tourism Impact Assessment in 1999-
2000, and now desires to complete the survey work related to Phase II of the Tourism Impact Assessment
in 2000-200 1; and
WHEREAS, the City of Carlsbad has determined that it requires the professional services of a
consultant with experience in completing the desired tourism impact assessment and conducting tourist
and resident services; and
WHEREAS, the City of Carlsbad completed a request for proposals and selection process to
identify the consultant, Economic Research Associates, as the most qualified to complete a tourism
impact assessment for the City and desires to expand the original contract of Economic Research
Associates to include work to develop and conduct the subject surveys.
NOW, THEREFORE BE IT HEREBY RESOLVED as follows:
1. That the above recitations are true and correct.
2. That the City Council hereby appropriates $34,000 from the City Council Contingency Fund
to conduct the survey portion of Phase II of the Tourism Impact Assessment for the City of
Carlsbad, and authorizes the Finance Director to expend the appropriated funds for the work
set forth in the contract with Economic Research Associates to develop and conduct the
subject surveys.
3. That the City Council hereby authorizes the City Manager to execute an amendment to the
professional services agreement with Economic Research Associates to provide the required
consultant services to develop and conduct the subject surveys.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad, California, held on the 23rd day of January ,2001, by the following vote, to wit:
AYES: Council Members Lewis,
NOES: None
ABSENT: None
ABSTAIN: None
h TES
/ *hw
. ,&&RAINwM. WOOD, City Clerk II J
-
AMENDMENT NUMBER ONE TO AGREEMENT
This Amendment is entered into and effective as of the 1st day of
Februarv ,2001, amending the agreement dated February 152000 by and between
the City of Carlsbad, a municipal corporation, hereinafter referred to as “City”, and Economics
Research Associates, hereinafter referred to as, “Contractor” for completion of Phase 2 of a
Tourism Impact Assessment.
RECITALS
WHEREAS, the initial agreement, dated February 15, 2000 identified a scope of work to conduct
Phase 1 of the Tourism Impact Assessment; and
WHEREAS, the parties to this aforementioned agreement desire to alter the scope of work as
follows: conduct surveys of residents and visitors to the City regarding touilsm and provide a
report including an analysis of data from the surveys; and
WHEREAS, a supplemental scope of work and schedule of payments for fees
have been negotiated and agreed to between the parties hereto, and as shown on Exhibit “A”
Scope of Services and Exhibit “B” Incremental Payments;
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor hereby agree as follows:
1. Contractor shall provide services as outlined on the attached Exhibit “A”.
2. City shall pay Contractor for all work associated with Paragraph 1 above, on a
time and materials basis not-to-exceed $34,000. Contractor shall provide City with copies of
invoices sufficiently detailed to indicate activities completed pursuant to tasks listed in Exhibit
“A”, Scope of Services, and Exhibit “B”, Incremental Payments.
3. Contractor shall complete all work outlined on the attached Exhibit “A” by
J
September 1,2001, or by expiration of the agreement amended hereby.
4. All other provisions of the aforementioned agreement entered into on
February 15, 2000, by and between City and Contractor shall remain in full force and effect,
5. All requisite insurance policies to be maintained by the Contractor shall
include coverage for the amended assignment and scope of work.
Acknowledged and Accepted:
CONTRACTOR: CITY OF CARLSBAD, a municipal
By:
(sign here)
(print name/title)
February 1, 2001
DATE
(Proper notarial acknowledgment of execution by Contractor must be attached.
Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer
must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.)
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
BY: /&%$& w&--
Deputy City Attorney
2m98
EXHIBIT A
SCOPE OF SERVICES
Task 1: Confirm objectives and development of survey instruments
ERA and subcontractor, Social and Behavioral Research lnstitute (SBRI) will meet with City staff to
confirm the objectives of conducting the surveys and begin development of survey instruments.
Task 2: Development of survey instruments
ERA will complete development of survey instruments and obtain approval from City staff of survey
contents.
Task 3: Conduct resident survey
SBRI will conduct random phone survey of 500 Carl&ad residents regarding their perspectives on
tourism related issues.
Task 4: Tabulation and analysis of survey data
SBRI will tabulate and ERA will analyze survey data.
Task 5: Preparation and submittal of preliminary report
ERA will prepare and submit report to City staff including summary and analysis of resident survey data
by May 1,200l.
Task 6: Conduct visitor survey
SBRI will conduct intercept surveys with 800 visitors to Carlsbad. One-half of the surveys will be
conducted during the spring and one-half of the surveys will be conducted during the summer. Visitors
are defined as non-residents who spend the night in Carlsbad, or non-residents who are visiting Legoland.
Intercept surveys are to begin no later than May 15, 2001.
Task 7: Tabulation and analysis of intercept survey data
SBRI will tabulate and ERA will analyze data from intercept surveys.
Task 8: Preparation and review of draft report
ERA will prepare a draft Tourism Surveys Report including a summary of survey results and an analysis
of those results. ERA will then submit ten copies of the report to City staff for review.
Task 9: Preparation of final report
Within five days of receiving staff approval of the draft report, ERA will submit ten copies of the report
to the City
Task 10: Presentations
ERA will make one presentation to staff and one presentation to the City Council within this budget.
ERA will be available to make additional presentations on a time and material basis.
EXHIBIT B
INCREMENTAL PAYMENTS
I. A payment of ten percent of the total contract amount will be made to Consultant within
thirty days of approval of the contract by the City Council.
II. A payment of thirty percent of the total contract amount will be made within thirty days of
submittal by Consultant to City staff of tabulated results from the resident phone survey, and
an invoice for payment.
III. A payment of thirty percent of the total contract amount will be made within thirty days of
submittal by Consultant to City staff of tabulated results of the intercept survey of visitors,
and an invoice for payment.
IV. A payment of twenty percent of the total contract amount will be made within thirty days of
submittal by Consultant to City staff of the completed draft report, and an invoice for
payment.
V. A final payment of ten percent of the total contract amount will be made within thirty days of
providing a presentation to the City Council on the final report, and submittal of an invoice
for payment to City staff. (City staff shall authorize payment on final invoice if no
presentation is requested by the City Council within forty-five days of submittal of the
report.)
. . . . /
State of California
Countyof 3flA.l D/EG b >
SS.
On~~&$ 8,2&M, before me, TLfg I ‘;7f-r a. dLSL)d d n)&?AP?v, Date ’ Name and Title of Officer (e.g., “Jane Doe, Notary Public”)
personally appeared N / C c / A W f? . fi fs l%CSO d , Name(s) of Signer(s)
to me on the basis of satisfactory
to be the person(s) whose name(s) is/are
subscribed to the within instrument and
acknowledged to me that he/she/they executed
the same in his/her/their authorized
capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s)
acted, executed the instrument.
Place Notary Seal Above
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this fom, to another document.
Description of Attached Document
TitleorTypeofDocument: fin?6tiD &E* uLiIn,&a o&6 Tt3 mm&’
Document Date: LA- g- a&m Number of Pages: )/
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0 1997 National Notary Association * 9350 De Soto Ave.. P.O. Box 2402 - Chatsworth, CA 91313-2402 Prod. No. 5907 Reorder: Call Toll-Free l-800-876-6827
Economics Research Associates
.-
February 7,200O
City of Carlsbad
2965 Roosevelt Street
Suite B
Carlsbad, CA 92008
Attention: Ms. Debra Fountain
Director of Housing and Redevelopment
Dear Ms. Fountain:
Please be advised that Mr. WilIiam Anderson is a Vice President with
Economics Research Associates (ERA). As an officer, Mr. Anderson has full
authority to bind ERA in contract with the City of Carlsbad.
Should you have any questions or need additional information, please
contact the undersigned.
Sincerely,
Yzg+
Corporate Secretary
Senior Vice President, Finance
Chief Operating Officer
TFR/jla
10990 Wilshire Boulevard Suite 1500 Los Angeles, CA 90024
310.477.9585 FAX 310.478.1950 www.econres.com ERI ,L a,,i,iat** With DriYer* ,onar
Los Angeles San Francisco San Diego Chicago Washington DC London
January 9,200l EXHIBIT 3
TO: CITY MANAGER
FROM: TOURISM IMPACT ASSESSMENT TEAM
FINAL REPORT ON TOURISM IMPACT ASSESSMENT
In response to one of the Council goals for 1999-2000, a staff team has been working over the past
several months with a consultant firm, Economic Research Associates (ERA), to complete a
comprehensive assessment of the impacts on, and needs of, tourists in the City of Carlsbad as related to
existing and projected service needs, projected development needs, cost/benefit analysis, parking and
other related services of facilities. The team consisted of staff from Housing and Redevelopment (Debbie
Fountain and Frank Boensch), Economic Development (Cynthia Haas), Planning (Dennis Turner) and
Finance (Cheryl Gerhardt). The final assessment report was prepared and submitted to the City Council
in July, 2000 for review.
The final Tourism Impact Assessment includes the following:
l A historical summary of policies and/or vision statements related to tourism in Carlsbad.
l An inventory of tourism attractions and a general evaluation of the adequacy of existing facilities
available to serve visitors.
l A fiscal impact analysis of existing tourism costs and benefits to the community.
For the purposes of the study, “tourist” is defined as “all overnight visitors plus all day visitors to
LEGOLAND who are not residents of Carlsbad.” This definition does not include day visitors from
surrounding communities who might come to Carlsbad to shop, enjoy the beach, or visit a local tourist
attraction other than LEGOLAND.
KEY FINDINGS
The report includes the following key findings by ERA:
l The City does not have an adopted tourism policy or Master Plan.
l The private sector tourism organizations, including LEGOLAND and the resort hotels, spend by
far the most in marketing Carlsbad as a tourism destination.
l Carlsbad has become a major leisure destination with the opening of the Four Seasons Aviara
Resort and the LEGOLAND theme park.
l Carlsbad attractions base is becoming increasingly diverse.
l Carlsbad’s identify, image and tourism product has several key themes which include: nature,
golf, beaches, small town/village atmosphere, educational family entertainment, resorts and
health and fitness.
l The combined overnight and day-trip visitor market in Carlsbad is estimated at 2.38 million. The
size of Carlsbad’s overnight visitor market corresponds to approximately 6 percent of the total
annual overnight visitation to San Diego County in 1999.
l Carlsbad’s tourism is seasonal with a peak in the Spring (March) and the highest visitation
during the summer months (July/August). December and January are considered off-peak season. ci
Tourism Assessment Memo
January 9,200l
Page 2
l It is estimated that tourists to Carlsbad spend approximately $206 million annually in the City, of
which overnight visitors generate 60 percent and day-visitors to LEGOLAND generate 40
percent.
l Tourism to Carlsbad generates an estimated $10.5 million in annual fiscal revenues to the City.
Transient-occupancy taxes comprise approximately 71 percent of these revenues.
l Based on conservative factors, estimated annual fiscal costs associated with tourism is
approximately $4.6 million, of which 44 percent is associated with public safety and 20 percent
is associated with public works.
l The net fiscal impact is $5.9 million. The estimated ratio of fiscal revenues to costs is 2.27/1.00.
ADEQUACY OF FACILITIES
As indicated within the report, ERA has the following observations regarding the adequacy of tourism
facilities in Carlsbad:
l Road and circulation system appears adequate in most cases. The possible exceptions are
Palomar Airport Road during peak season, and possibly Carlsbad Village Drive certain special
events.
l Most tourists travel by car. There are few alternatives offered due to limited public
transportation.
l Signage program could be improved to facilitate tourists’ ability to find their way to Carlsbad
attractions, lodging and shopping destinations.
l Carlsbad has a pleasing image from the freeway, the route taken by most visitors to Carlsbad, due
to the topography, lagoons and quality development. However, the mix of development,
uncoordinated site plans, and discordant architectural styles near Palomar Airport Road (east of
I-5), present a weak and cluttered image.
l Number of planned and proposed hotel rooms in the City appears to be adequate to accommodate
projected tourism growth during the next 5 to 10 years. However, many of the hotels that are
planned or proposed are limited service, lower price point hotels. It appears that Carlsbad’s hotel
offerings lack moderate-priced, full-service, three-star hotels.
l There is adequate restaurant and retail square footage to serve the tourist market. However,
Carlsbad lacks restaurants and shopping environments with ocean views, and should offer more
quality sit-down restaurants outside the destination resorts.
l Carlsbad may want to offer more night-time shopping and entertainment activities, particularly in
the Carlsbad Village.
CONSULTANT RECOMMENDATIONS
In addition to some of the recommendations noted above under the adequacy of facilities, ERA has
offered the following comments:
Tourism Assessment Memo
January 9,200l
Page 3
l The City should evaluate the cost effectiveness of optional strategies for providing alternative
forms of transportation to tourists within the City.
l Carlsbad should establish a management information system for monitoring the local tourism
industry’s performance, and the effectiveness of Carlsbad’s investments in facilities and
marketing. An important input to this system would be a regular, periodic survey of tourists
within Carlsbad.
l To maximize the benefits of tourism and minimize its costs, ERA recommends that the City of
Carlsbad prepare a tourism master plan to formulate policies and quality standards; coordinate
tourism marketing, development, infrastructure, and service provision efforts; establish
investment priorities; and enhance Carlsbad’s brand name in the tourism market.
l One of the first steps of the master plan process is to design and administer a comprehensive,
scientific survey of Carlsbad’s tourists regarding their expenditure habits, lodging locations, visit
characteristics, attitudes about Carlsbad, etc. This survey should be conducted over the year to
compare how responses vary by season, beginning with the peak summer season.
The full report should be reviewed for more detail on the various comments noted above. The above
simply provides a brief summary of the key findings, observations and recommendations made by ERA.
STAFF TEAM RECOMMENDATION
Based on the report findings and recommendations submitted by ERA, staff is recommending that the
City proceed with efforts to complete a tourist suwey to identify additional characteristics of visitors to
Carlsbad and to determine the more specific needs of tourists for additional services, facilities, etc. A
tourist survey could assist with addressing issues such as true transportation needs, any directional
signage deficiency, actual parking needs, etc. Before proceeding with implementation of some of the
recommendations from the consultant, staff believes it would be beneficial to receive input from the
actual tourists or visitors to the City in terms of their specific needs for facilities and/or services. It is also
recommended that a survey be conducted of Carlsbad residents to assess their values, wants and needs as
related to tourism in Carlsbad. Staff believes it would be valuable to obtain input from the community as
to how tourists or tourist attractions impact their quality of life, and additional actions they would like to
see the City implement to address these impacts.
DEBBIE FhJNTAIN