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HomeMy WebLinkAbout2001-10-23; City Council; 16407; Community Promotion Services With CCVB. AB# lb, VU7 MTG. to-a8 a/ DEPT. ED CITY OF CARLSBAD -AGENDA BILL TITLE- CONSIDERATION AND APPROVAL WITH THE CARJSBAD CONVENTION AND VISITORS BUREAU FOR COMMUNITY PROMOTION SERVICES CITY MGR a> RECOMMENDED ACTION: ADOPT Resolution No.Jm \ -32.5 approving a one-year contract for basic tourism promotion and visitor services for the term November 1, 2001 to October 3 1, 2002, authorize the Mayor to execute an Agreement between the City and the Carlsbad Convention and Visitor’s Bureau, and appropriate $2 1,000 from the Contingency Account available balance. Review the CCVB Group Sales Program proposal, consider the funding request, and if appropriate, direct staff to prepare all appropriate documents and return to City Council for approval at a future City Council meeting. ITEM EXPLANATION: BASIC CONTRACT PROPOSAL On October 31, 2001, the contract between the City of Carlsbad and the CCVB will expire. In response to the upcoming expiration of the existing contract for visitor and promotional services, CCVB has submitted a one (1) year proposal for the continuation of these services to the City of Carlsbad beginning November 1,200l and ending October 3 1,2002. CCVB’s basic proposal includes the continuation of visitor and promotional services at a cost of $384,000, representing an increase of $21,000 or 5.7% over the 2000-2001 contract ($363,000). Approximately 4.4% or $16,000 of the proposed increase is attributed to increases in operational expenses at the Visitor Center and in employee benefit related expenses. The additional $5,000 request represents the net cost of an increase in brochures of $10,000, and a reduction in CDROM and Consultant Services of $5,000. The CCVB Program Request is as follows: Travel Shows & Familiarization Tours $25,000 Brochures, Print Materials $35,000 Internet Maintenance and Development $ 12,000 Marketing, Advertising and Promotions $170,000 Administration for CVB & Visitor’s Center $142,000 Total 2001-2002 Contract Request $384,000 CCVB currently employs four (4) Full-time staff, including an Executive Director, a Public Relations Director, a Visitor Center Supervisor and an Administrative Assistant. In addition, to their full-time staff, a group of more that 50 volunteers contribute an average of 390 hours per month at the Visitor’s Center. PAGE 2 OF AGENDA BILL NO. lb, 407 NEW PROGRAM - GROUP SALES In addition to the basic contract proposal for tourism promotion and visitor services, CCVB is asking the City Council to consider funding a new Group Sales Program. The CCVB has stated the primary objective of the new program is to “design and implement an aggressive sales effort to increase group sales, build measurable positive awareness for Carlsbad, California as a preferred year-round leisure travel destination and to increase Transient Occupancy Tax (TOT) revenues to the City of Carlsbad.” The CCVB is defining group sales as “ten (10) room nights or more, to include leisure and corporate business.” CCVB has stated that in the past they have had limited resources to pursue a proactive approach to generating group sales. They believe that given the recent terrorist attacks in the United States and the corresponding drop in tourism nationwide, a proactive and aggressive approach to group sales will help maintain or bolster local TOT revenues and visitor spending. The CCVB is asking the City Council to fund the program at $100,000, for one-year, as a pilot program. During the contract period, CCVB will provide a sales tracking mechanism for group sales as part of its reporting requirement, and evaluate whether the program is achieving stated goals. CCVB anticipates that the new program will directly generate TOT in an amount equal to, or greater than, the initial funding within twelve (12) to twenty-four (24) months of implementation. Since the program is envisioned to initially be a “pilot program, CCVB is exploring partnership/subcontract opportunities with groups who currently have expertise in the group sales area. In August 2001, CCVB distributed a Request for Proposal to possible subcontractors, and is still in the negotiation process. The staff recommendation is to approve the basic one-year contract for tourism promotion and visitor services in the amount of $384,000. In the event the City Council elects to fund the new Group Sales Program, staff can be directed to prepare documents that would amend the basic contract to include the new program, allocate the additional monies, and then return all documents to the City Council for final approval. FISCAL IMPACT: Payment for operation of the Visitor’s Center will made to CCVB in monthly installments of $11,833, not to exceed $142,000 for the twelve (12) month period. Payment for all other programs will be made on a reimbursement basis up to the maximum amounts approved in the contract. In anticipation of a contract for promotional and visitor services this fiscal year, a total of $363,000 was included in the 2001-2002 Operating Budget. If the one-year contract is approved with CCVB, an additional $21,000 will need to be appropriated. Staff recommends that the City Council appropriate the additional funds from the Contingency Account. The Contingency Account available balance is approximately $3.9 million. If the City Council elects to fund the new Group Sales Program at the requested amount, or any other amount, those monies will need to be appropriated at a future City Council meeting. ’ PAGE3OFAGENDABlLLNO. Id,%)7 ENVIRONMENTAL: The Planning Director has determined that the activities above are categorically exempt from CEQA review pursuant to Section1 5309 of the CEQA guidelines. EXHIBITS: 1. Resolution No.$U/&of the City Council of the City of Carlsbad, California, authorizing the Mayor to execute an agreement with the Carlsbad Convention and Visitor’s Bureau, and appropriating $2 1,000 from the Contingency Account available balance. 2. Agreement between the City of Carlsbad and the Carlsbad Convention and Visitor’s Bureau to provide professional services related to the promotion of the City of Carlsbad. 3. Letter dated September 28,200l from CCVB Executive Director Kurt Burkhart to Economic Development Manager, Cynthia Haas. 1 RESOLUTION NO. 2001-325 2 3 4 5 6 7 8 9 10 11 12 13 . 14 15 16 17 18 19 20 21 22 23 24 25 2P 27 28 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSLBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH THE CARLSBAD CONVENTION AND VISITORS BUREAU (CCVB) AND APPROPRIATING $21,000 FROM THE CONTINGENCY ACCOUNT AVAILABLE BALANCE. WHEREAS, the City Council of the City of Carlsbad has determined that it is in the best interest of the City to promote tourism and provide services to visitors to the City; and WHEREAS, the City Council has further determined that the Carlsbad Convention and Visitor’s Bureau possesses the necessary skills to provide these services to the City of Carlsbad; and WHEREAS, the Carlsbad Convention and Visitor’s Bureau has agreed to provide these services under the terms and conditions of the agreement attached hereto. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. 2. That the Mayor is hereby authorized to execute the attached agreement, Exhibit 2, between the City of Carlsbad and the Carlsbad Convention and Visitor’s Bureau to provide professional services related to the promotion of the City of Carlsbad. 3. That an appropriation of $21,000 from the Contingency Account available balance is authorized. Ill Ill //I //I Ill Ill Ill II! PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council 2001, by the following vote to wit: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall NOES: None . I ,' ABSENT: None Mayor 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- AGREEMENT FOR PROMOTtON OF TOURISM AND VtSfTOR SERVICES CARLSBAD CONVENTION AND VISITOR’S BUREAU THIS AGREEMENT is made and entered into as of the 3iS7 lzm?mc day of 2001, by and between the CITY OF CARLSBAD, a municipal corporation, (“City”), and The Carlsbad Convention and Visitor’s Bureau, a non-profit corporation, hereinafter referred to as “CCVB”. RECITALS A. City requires the professional services of a contractor that is experienced, in tourism and visitor promotion, programs and services. B. CCVB has the necessary experience in providing professional services and advice related to the promotion of tourism in Carlsbad. C. Selection of CCVB is expected to achieve the desired results in an expedited fashion. D. CCVB has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and CCVB agree as follows: 1. SCOPE OF WORK City retains CCVB to perform, and CCVB agrees to render, those services (the “Services”) that are defined in attached Exhibit “A”, which is incorporated by this reference in accordance with this Agreement’s terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, CCVB will exercise the reasonable professional care and skill customarily exercised by reputable members of CCVB’s profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. - TERM The term of this Agreement will be effective for a period of twelve (12) months beginning November I,2001 and ending October 31,2002. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. City Attorney Approved Version #04.11 .Ol 5. COMPENSATION The total fee payable fur the Services to be performed during the initial Agreement term will be Three Hundred Eighty Four Thousand Dollars ($384,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit “A”. Incremental payments to CCVB are outlined in attached Exhibit “A”. 6. STATUS OF CCVB CCVB. will perform the Services in CCVB’s own way as an independent CCVB and in pursuit of CCVB’s independent calling, and not as an employee of City. CCVB will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by CCVB to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to CCVB pursuant to the Agreement will be the full and complete compensation to which CCVB is entitled. City will not make any federal or state tax withholdings on behalf of CCVB or its agents, employees or subcontractors. City will not be required to pay any workers’ compensation insurance or unemployment contributions on behalf of CCVB or its employees or subcontractors. CCVB agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers’ compensation payment which City may be required to make on behalf of CCVB or any agent, employee, or subcontractor of CCVB for work done under this Agreement. At the City’s election, City may deduct the indemnification amount from any balance owing to CCVB. 7. SUBCONTRACTING CCVB will not subcontract any portion of the Services without prior written approval of City. If CCVB subcontracts any of the Services, CCVB will be fully responsible to City for the acts and omissions of CCVB’s subcontractor and of the persons either directly or indirectly employed. by the subcontractor, as CCVB is for the acts and omissions of persons directly employed by CCVB. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of CCVB and City. CCVB will be responsible for payment of subcontractors. CCVB will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to CCVB’s work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHERCCVBS The City reserves the right to employ other CCVBs in connection with the Services. 2 City Attorney Approved Version #04.11 .Ol 9. INDEMNIFICATION Except as to the sole negligence or wiltful misconduct of City, CCVB will defend, indemnify and hold City, its officers, agents and employees, harmless from any and all loss, damage, claims, demands, liability, expense or cost, including attorney’s fees, which arises out of, or is in any way connected with the performance of, the Services by CCVB or any of CCVB’s employees, agents or subcontractors, notwithstanding that City may have benefited from their services. The parties expressly agree that any payment, attorney’s fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City’s self- administered workers’ compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of the Agreement. 10. INSURANCE CCVB will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by CCVB or CCVB’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best’s Key Rating of not less than “A-:V”. 10.1 Coverages and Limits. CCVB will maintain the types of coverages and minimum limits indicated below, unless City Attorney or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on CCVB’s indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by CCVB pursuant to this Agreement are adequate to protect CCVB. If CCVB believes that any required insurance coverage is inadequate, CCVB will obtain such additional insurance coverage, as CCVB deems adequate, at CCVB’s sole expense. 10.1 .l Commercial General Liabilitv Insurance. $1 ,OOO,OOO combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability (if the use of an automobile is ,involved for CCVB’s work for City). $1 ,OOO,OOO combined single-limit per accident for bodily injury and property damage. 3 City Attorney Approved Version #04.11 .Ol 10.1.3 Workers’ Compensation and Employer’s Liability. Workers’ Compensation limits as required by the California tabor Code and Employer’s Liability limits of $1 ,ooo,ooo p er accident for bodily injury. Workers’ Compensation and Employer’s Liability insurance will not be required if CCVB has no employees and provides, to City’s satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to CCVB’s profession with limits of not less than $1 ,OOO,OOO per claim. Coverage must be maintained for a period of five years following the date of completiqn of the work. 10.2. Additional Provisions. CCVB will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 Liability. The City will be named as an additional insured on General 10.2.2 CCVB will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City’s execution ‘of this Agreement, CCVB will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If CCVB fails to maintain any of these insurance coverages, then City will have the option to declare CCVB in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. CCVB is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from CCVB or deduct the amount paid from any sums due CCVB under this Agreement. 10.5 Submission of Insurance Policies. City reserves the right to require, at anytime, complete and certified copies of any or all ,required insurance policies and endorsements. II. BUSINESS LICENSE CCVB will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 4 City Attorney Approved Version #04.11 .Ol 12. ACCOUNTING RECORDS CCVB will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. CCVB will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. CCVB will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by CCVB or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by CCVB or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. CCVB will have the right to make one (1) copy of the work product for CCVB’s records. 14. COPYRIGHTS CCVB agrees that all copyrights that arise from the services will be vested in City and CCVB relinquishes all claims to the copyrights in favor of City. 15. NOTICES The name of the persons who are authorized to give written notice,s or to receive written notice on behalf of City and on behalf of CCVB under this Agreement. For City: For CCVB: Title: Economic Development Manager Department :Economic Development City of Carlsbad Address 1635 Faraday Avenue Carlsbad, CA 92008 Phone No. (760) 602-2732 Nam&~T~iL&ULI(-~~ Title Ex e-n.r,~ ‘3 i xcJ itic A dress i’cc CCL&S I’LL \I;‘lLrii ~‘bfi- 2c.w i5Lc e.4 w-~cb / I Phone No. ( xc) ‘fj L/ - dc\q,T Each .party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST City will evaluate CCVB’s duties pursuant to this Agreement to determine whether disclosure under the Political Reform Act and City’s Conflict of Interest Code is required of CCVB or any of CCVB’s employees, agents, or subcontractors. Should it be determined that disclosure is required, CCVB or CCVB’s affected employees, agents, or subcontractors will complete and file with the City Clerk those schedules specified by City and contained in the Statement of Economic Interests Form 700. 5 City Attorney Approved Version #04.11 .Ol CCVB, for CCVB and on behalf of CCVB’s agents, employees, subcontractors and consultants warrants that by execution of this Agreement, that they have no interest, present or contemplated, in the projects affected by this Agreement. CCVB further warrants that neither CCVB, nor CCYB’s agents, employees, subcontractors and consultants have any ancillary real property, business interests or income that will be affected by this Agreement or, alternatively, that CCVB will file with the City an affidavit disclosing this interest. 17. GENERAL COMPLIANCE WITH LAWS CCVB will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by CCVB, or in any way affect the performance of the Services by CCVB. CCVB will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of CCVB’s services with all applicable laws, ordinances and regulations. CCVB will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED CCVB will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of ,the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of CCVB or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 6 City Attorney Approved Version #04.11 .Ol 20. TERMINATION tn the event of the CCVB’s failure to prosecute, detiver, or perform the Services, City may terminate this Agreement for nonperformance by notifying CCVB by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to CCVB. Upon notification of termination, CCVB has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that CCVB has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, CCVB will assemble the work product and put it in order for proper filing and closing and deliver it to City. . CCVB will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES CCVB warrants that CCVB has not employed or retained any company or person, other than a bona fide employee working for CCVB, to solicit or secure this Agreement, and that CCVB has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, CCVB agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. CCVB acknowledges that if a false claim is submitted to City, it may be considered fraud and CCVB may be subject to criminal prosecution. CCVB acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney’s fees. CCVB acknowledges that the filing of a false claim may subject CCVB to an administrative debarment proceeding as the result of which CCVB 7 City Attorney Approved Version #04.11 .Ol may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. CCVB acknowtedges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will tie tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and CCVB and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by CCVB without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede, the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. 8 City Attorney Approved Version #04.11 .Ol 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of CCVB each represent and warrant that they have the legal power, right and actual authority to bind CCVB to the terms and conditions of this Agreement. CCVB ATTEST: kd- /--(sign here) .J--/+A7e, /$L (print nameitii; ;- dzmAw $4.)vo@ ’ City Clerk If required by City, proper notarial acknowledgment of execution by CCVB must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. *Group A. **Group B. , Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer 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 Bv: ti lul54v- Deputy City Attorney 9 City Attorney Approved Version #04.11 .Ol EXHIBIT “A” SCOPE OF SERVICES The City agrees to engage, and the CCVB agrees to perform the services described below: SCOPE OF WORK 1. Manage and coordinate a marketing program that positions Carlsbad as a prime tourist destination in Southern California. a. Generate awareness of Carlsbad in those geographic regions of the United States which provide the largest number of visitors to Carlsbad each year. b. Operate the Visitor Information Center in the AT&SF Depot seven days per week from 9:00 a.m. to 5:00 p.m., Monday through Friday, from IO:00 a.m. to 4:00 p.m. on Saturday, and from IO:00 a.m. to 3:00 p.m. on Sunday, except New Years Day, Easter Sunday, Thanksgiving Day, and Christmas Day to assist visitors to Carlsbad. c. Provide familiarization tours (including a travel writers program) by organizing visits to Carlsbad by travel writers and others that result in published articles promoting Carlsbad and additional tourism to Carlsbad d. Promote local community events, including the San Diego Marathon, the Carlsbad 5000, the Carlsbad Triatholon, and the La Costa Resort golf and tennis events in the following ways: 1. Provide hotel/motel referrals. 2. Staff Information booths as requested by the City and/or the private event promoters. 3. Distribute promotional literature related to the events from the Visitor Information Center. e. Develop private funding for advertising co-op programs, central reservations fees and other participatory fees to support a full-time aggressive tourism marketing program. Version 10/02/2001 -10 - f. Provide reports as foHows: I. CCVB shall deliver to the City, semi-annual reports of the activity and expenses of the CCVB as funded under this agreement. These reports shall summarize activities and expenses for each six (6) month period of the contract and include the following information: a. A written description of the activities of CCVB for the quarter. b. A statistical report showing the results of the information gathered from inquiries at the Visitor’s Center, CCVB website, or other sources. c. An accounting of the funds spent by program in a format approved by the City. 2. CCVB shall include in the semi-annual report, statistical or other quantitative information which demonstrates the effectiveness of CCVB’s efforts in drawing additional visitor’s to Carlsbad. PAYMENT OF FEES For the services described above, the City will compensate the CCVB as described below: 1. Payment for the operation of the Visitor’s Center shall be made to the CCVB in equal monthly installments by the 15’h of each month for the 12 months beginning November 2001 and ending October 2002. The monthly payment amount for the period from November 2001 to October 2002 will be $11,833, not to exqeed $142,000 for the 12 month period. 2. Payment for all other programs will be released to the CCVB on a reimbursement basis up to the maximum amounts shown below: a. Travel Shows and FAM Tours $25,000 b. Brochures & Print Material $35,000 c. Internet Maintenance & Development $ 12,000 Version 10/02/2001 -11 - d. Marketing, Advertising and Promotions $170,000 3. The City reserves the right to terminate or reduce the funding levels outlined in the Agreement in the event of City revenue reductions. Recommended reductions will be reported to the City Council who shall determine the modified funding level. Version 10102/2001 -12 - On /(j//p /f/ i , before me, - o+* I-?/-. I i 2 (5 f-f%- 14” I? \ date 1 of Officer (e.g “Jane Doe Notary Pbl!c’J f personally appeared Name(s) of Stgner(s) f Place Notary Seal Above 3 personally known to me r 2 Aproved to me on the basis of satisfactory & evidence 3 to be the perso 6 s whose naqf$$) j@&$ subscribed to the within instrument and acknowledged to me that Mp-&ey executed in JMt$r@$& authorized and that by the instrument the behalf of which acted, executed the instrument. 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 form to another document. Description of Attached Document Title or Type of Document Date: Signer(s) Other Than Named Above: Number of Pages: Capacity(ies) Claimed by Signer Signer’s Name: 0 Individual Cl Corporate Officer - Title(s): 0 Partner - 0 Limited C General [? Attorney in Fact U Trustee 0 Guardian or Conservator q Other: Signer Is Representing: linwB!m Top of thumb here %=3xxmcC~~T-. ‘ ~~~~~~~~~~~~~,~~~~~~~~~~~ 0 ,999 Nabma, Notary Asscaamn * 9350 De Solo Ave P.0 Box 2402 * Chatsworth. CA 91313-2402. w.nat~onalnotaryorg Prod No. 5907 Reorder: Call Toll-Free I-800-8766827 September 28,200l Ms. Cynthia Haas Economic Development Manager City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 Dear Cynthia: Hand Delivered The attached is a proposed budget that the Board of Directors has approved for the contract year, 2001-02. The Board believes that this budget represents a true and accurate representation of what it costs the Carlsbad Convention and Visitors Bureau to do business promoting the City of Carlsbad as a year-round preferred travel destination. Over and above the request for $100,000 to fund, through a professional services contract, Group Sales for Carlsbad, the CVB is requesting for internal programs and operations, an increase of only 5.4%. As this office works toward completing its report to the city on its accomplishments for the past year and future goals, please know that I am available to answer any questions that you may have in the interim. Sinqerely, Kurt Burkhart Executive Director Enclosure: Budget proposal cc: Carlsbad CVB Board of Directors Carlsbad Convention.& Visitors Bureau PO.B0~1246~Carlsbad,California 92018-1246 TEL 1760)434.6093 l FAX (760) 434.6056 www.carlsbadca.org/ Proposed Budget for Contractual Year 2001-02 Line Item Amounts Advertising and Events Brochures Consultant Contract Year 2000 - 2001 Contract Year 1999 - 2000 $ 90,000 $ 90,000 $ 25,000 $ 20,000 $ 10.000 $ 10.000 Travel Shows & FAM Tours Video/CD-ROM $ 25,000 $ 30,000 $ 7,000 $ 5,000 Marketing Program Operations Operate Visitor Center Totals Increase/Decrease $ 80,000 $ 79,000 $126,000 $123,000 $363,000 $357,000 $ 3,000 The CVB Board of Directors has agreed to realign certain line items under the new contract with the city Line Item Amount Requested Croun Sales (11 $100.000* Increase/Decrease $1 oo.ooo* Travel Shows & FAM Tours Brochures, print materials (2) Internet Maintenance and Develonment 13) $25,000 $35,000 !?i 12.000 Same - No Increase $10,000 4 5.000> Marketing, Advertising and Promotions (Advertising and Events, Marketing Program Operations have been combined into one line item) Administration for CVB & Visitor Information Center (4) Total $170,000 $142,000 $484.000 Same - No Increase $16,000 S121.000 Highlights of Anticipated Increases: 1. Group Sales professional services contract - new item, $1 OO,OOO* 2. Brochures - 1) creative and production for new run of the 2002 Visitor & Diner’s Guide to replace reducing inventory; 2) reprint of German language brochure. Continued, page 2 Pape 2, Proposed Budpet for Contractual Year 2001-02 Highlights of Anticinated Increases: 3. Internet Maintenance and Development - website design makeover; professional services for daily maintenance; multiple hosting services; multiple domain names to enhance online positioning; DSL high-speed line access. Previous line item’amount for CD-ROM and Consulting in previous budget submissions have been combined to reflect the increased need to maintain all aspects of Internet communications. 4. Administration - a) $920 to cover higher volume of postage due to more direct response ads; b) $1500 for professional services ($500 for legal advice; $1000 non-Internet computer services); c) $3450 to cover the 9.1% increase in health care premiums that became effective 9-01-01; d) $6000 for an anticipated annual pay increase of 5% for staff that includes 4 full-time and 1 part-time; e) $2000 to cover employer’s contribution of for employee participation in 401(k) plan; f) increase of $580 (20%) over previous year in utilities costs; g) $750 in additional funding to pay annual salary for newly hired administrative assistant; h) $800 to cover current state and federal unemployment coverage for administrative assistant aiong with an anticipated premium increase of 27% for California state workers’ compensation.