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Home My WebLink About2007-05-04; Carlsbad Tourism Business Improvement District; MinutesCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID) BOARD MINUTES May 4, 2007 11:00 a.m. 1635 Faraday Avenue, Room 173A Carlsbad, CA I. CALL TO ORDER: 11:03 a.m. Chairperson April Shute called the meeting to order at 11:03 a.m. II. ROLL CALL: The Chair took roll call and four Directors were present at that time. Director Vallas later arrived at 11:20 a.m. Director Stripe was absent. There is one vacancy on the Board due to the resignation of Mr. Kauhaahaa. General Counsel Ronald Ball was absent and Deputy General Counsel Paul Edmonson served in Mr. Ball's capacity. III. APPROVE MINUTES OF THE MARCH 30. 2007 MEETING Mr. Cima made a motion, seconded by Mrs. Howard-Jones, to approve the minutes of the March 30, 2007 meeting. Motion carried by unanimous vote. IV. STAFF REPORT Mrs. Gerhardt presented a staff report to update the Board members on financial activity that has transpired since the previous meeting. (The PowerPoint slide presentation is attached to these minutes.) The CTBID assessment revenues for the past twelve months (April to April) were $752,000, a little behind estimates. The average occupancy rate was 63%. The current fiscal year revenue through April, 2007 was $607,170 and expenditures were $402,136. Current year contingency is $73,205 and unbudgeted reserves are $158,000. Mr. Canepa requested that revenue related to the occupancy rate (just hotels, not timeshares) be shown as well. V. AB #0507-18 - SAN DIEGO NORTH CONVENTION AND VISITORS BUREAU PERFORMANCE MEASURES Mrs. Gerhardt provided a report on a performance measurement system that has been developed for monitoring the activity of San Diego North Convention and Visitors Bureau (SDNCVB). This system will track the actual room nights CTBID Meeting Minutes May 4, 2007 Page 2 booked as a result of SDNCVB activity, and the value of the visitor spending at the hotels related to those room nights. She described some of the obstacles that were encountered, namely: 1) Multiple rates within a contract due to different room types, number of people per room and different seasons, weekend vs. weekday; 2) Reporting of actual revenue is dependent on hotels reporting back to SDNCVB; and 3) Some people book outside the block of rooms. Ms. Cami Mattson, President & CEO of SDNCVB, reviewed the report highlighting the breakdown by: Report Summary, Contracted Definite Accounts for Carlsbad booked July 1, 2006 through March 31, 2007, and the Consumer History for Contracted Definite Accounts that Traveled to Carlsbad. She stated that the report will be based on contracted room nights. They will use an Average Daily Rate as reported by Smith Travel Research by hotel group for Carlsbad. An additional amount will be added for meals and incidentals. Mr. Canepa suggested that the report include how much business the hotels are getting in comparison to the amount of money that the CTBID pays to the Bureau. Following the presentation, the Board members reported they were very impressed with the report and congratulated all involved on a fantastic job. Mr. Canepa made a motion, seconded by Mr. Cima, to incorporate the performance measurement system into future contracts with the SDNCVB. Updated reports will be provided by the Bureau to the CTBID Board members on a quarterly basis. Motion carried by unanimous vote. VI. AB #0507-19 - 2007-08 BUDGET DISCUSSION The Board members heard a report and recommendation from staff and the budget subcommittee (April Shute, Robert Cima and Tim Stripe) recommending that the CTBID enter into contracts with both CCVB and SDNCVB for 2007-08 in amounts 10% above the current contract amounts. CCVB's contract for 2007-08 will be $448,000, and SDNCVB's contract will be $110,000. The spending plan for 2007-08 includes $780,000 in revenue and $793,300 in expenditures. The expenditures include a $150,000 contingency. This allows the Board to retain a surplus of revenues over expenditures of about $240,000 at this time. These funds may be appropriated after the completion of the marketing and positioning study scheduled for fall 2007. Mrs. Gerhardt explained that the 2007-08 budget must be presented to the City Council prior to the end of June 2007. She suggested a specific date of June 19. At that meeting, the Council will hold a public hearing regarding the levy of the $1 per room night assessment for the 2007-08 fiscal year. CTBID Meeting Minutes May 4, 2007 Page 3 Mr. Cima made a motion, seconded by Chair Shute, to direct staff to prepare the 2007-08 annual budget, and to prepare the agreements to extend the contracts with the two Bureaus which both expire on June 30, 2007. These items will be presented for approval by the Board at its next meeting. Motion carried by unanimous vote. VII. DISCUSSION ITEMS Mrs. Gerhardt reported that the Positioning Study Subcommittee (Robert Cima, Tim Stripe, and Barbara Howard-Jones) met and chose June 22, 2007 from 10:00 a.m. to 3:00 p.m. in Room 173B at the Faraday Center, to hold the positioning study kickoff workshop. This is a private, invitation-only meeting. Homework will be sent to the attendees prior to the meeting in order to prepare them for the actual workshop. The subcommittee members suggested the following people comprise this working group: - Tim Stripe, Positioning Study Subcommittee member - Barbara Howard-Jones, Positioning Study Subcommittee member (or her designee, the GM at her property) - Rob Sapp, Four Seasons Marketing Director - Denise Chapman, La Costa Director of Marketing - Legoland representative - Flower Fields representative - Cami Mattson, SDNCVB - Kurt Burkhart, CCVB - Robert Moore, GM Hilton Garden Inn None of the Board members objected to the subcommittee's recommendation. VII. NEXT MEETING The next regular meeting will be held on Friday, June 1, 2007, at 11:00 a.m. and will be held at 1635 Faraday Avenue, Room 173A. Action: Agenda items will include: 1) 2007-08 budget approval; and 2) extension of the current contracts with Carlsbad Convention and Visitors Bureau and San Diego North Convention and Visitors Bureau, which expire on June 30. ADJOURNMENT Chair April Shute adjourned the meeting at 11:55 a.m. CTBID Meeting Minutes May 4, 2007 Page 4 Respectfully submitted, Sheryl Keller Recording Secretary Carlsbad Tourism Carlsbad Tourism Business ImprovementBusiness ImprovementDistrictDistrictFinancial UpdateFinancial UpdateBy: Cheryl GerhardtBy: Cheryl GerhardtMay 4, 2007May 4, 2007 CTBID AssessmentCTBID AssessmentRevenueRevenue15 month period15 month period$59,905$62,495$56,196$56,374$58,576$67,573$81,528$80,662$60,125$59,882$54,227$47,324$58,964$58,531$64,801$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000FEBMARAPRILMAYJUNEJULYAUGSEPTOCTNOVDECJANFEBMARAPRILMonth revenue remittedAve occupancy rate 63% 20062006--07 Budget to Actual07 Budget to Actualas of 4/30/2007as of 4/30/2007Program AreasProgram AreasBudgetBudgetActualActualRemainingRemaining3030--AprApr--0707BalanceBalanceRevenues:Revenues:CTBID Assessment CTBID Assessment 790,000 790,000 600,401 600,401 189,599 189,599 Interest EarningsInterest Earnings1,000 1,000 6,654 6,654 (5,654)(5,654)Total Estimated RevenuesTotal Estimated Revenues791,000 791,000 607,170 607,170 183,945 183,945 Expenditures:Expenditures:2% Administrative Fee 2% Administrative Fee --City City 15,800 15,800 9,890 9,890 5,910 5,910 CCVB ContractCCVB Contract408,000408,000306,000 306,000 102,000 102,000 SDNCVB ContractSDNCVB Contract100,000 100,000 74,99974,99925,001 25,001 Staff supportStaff supportPositioning Study Positioning Study 15,000 15,000 95,00095,00011,24711,2470 0 3,7533,75395,000 95,000 ContingencyContingency73,205 73,205 0073,205 73,205 Total ExpensesTotal Expenses707,005 707,005 402,136 402,136 304,869 304,869 Financial HighlightsFinancial Highlights••CTBID Revenue for JanCTBID Revenue for Jan--Dec 2006 $747KDec 2006 $747K••CTBID Revenue April 06 CTBID Revenue April 06 ––April 07 $752KApril 07 $752K••Average occupancy rate 63%Average occupancy rate 63%••Current year contingency $73,205Current year contingency $73,205••Unbudgeted reserves $158,000Unbudgeted reserves $158,000 SDNCVB Performance MeasuresSDNCVB Performance MeasuresBackgroundBackground••CTBID board directed staff to develop CTBID board directed staff to develop criteria to measure the effectiveness of criteria to measure the effectiveness of activities performed by SDNCVB activities performed by SDNCVB ••CTBID board was interested in objective CTBID board was interested in objective criteria that measured actual hotel criteria that measured actual hotel spending for contracted salesspending for contracted sales SDNCVB Performance MeasuresSDNCVB Performance MeasuresObstaclesObstacles••Multiple rates within a contractMultiple rates within a contract––Different room typesDifferent room types––# of people per room# of people per room––Different seasons, weekend, weekdaysDifferent seasons, weekend, weekdays••Reporting of actual revenue dependent on Reporting of actual revenue dependent on hotels reporting back to SDNCVBhotels reporting back to SDNCVB••Some people book outside the block of Some people book outside the block of roomsrooms SDNCVB Performance MeasuresSDNCVB Performance MeasuresProposed MethodProposed Method••Report based on contracted room nightsReport based on contracted room nights••Use ADR as reported by Smith Travel Use ADR as reported by Smith Travel Research by hotel group for CarlsbadResearch by hotel group for Carlsbad••Add an additional amount for meals and Add an additional amount for meals and incidentalsincidentals••Report QuarterlyReport Quarterly••Additional information will be provided on Additional information will be provided on consumed revenue when obtainedconsumed revenue when obtained 2006-07 Projected Recommended Program AreasBudget 2006-07 Actuals 2007-08 BudgetCarryover Fund Balance$74,005 74,005200,005Revenues:CTBID Assessment 790,000750,000775,000Interest Earnings1,0009,0005,000Total Estimated Revenues791,000759,000780,000Expenditures:2% Admin. Fee - City 15,80015,00015,500CCVB Payment408,000408,000448,800SDNCVB Payment100,000100,000110,000Positioning Study*95,00095,0000Staff support15,00015,00015,000Contingency73,2050150,000Total Expenses707,005633,000739,300Ending Fund Balance$158,000 200,005240,705 Positioning Study Positioning Study ••Kickoff meeting Friday, June 22, 10am Kickoff meeting Friday, June 22, 10am ––3pm3pm••Recommended Attendees:Recommended Attendees:––Tim Stripe, Positioning study subcommittee memberTim Stripe, Positioning study subcommittee member––Barbara Howard Jones or GM, Positioning study Barbara Howard Jones or GM, Positioning study subcommittee membersubcommittee member––Rob Sapp, Four Seasons Marketing DirectorRob Sapp, Four Seasons Marketing Director––Denise Chapman, La Costa Director of MarketingDenise Chapman, La Costa Director of Marketing––Lego land representativeLego land representative––Flower Fields representativeFlower Fields representative––Cami Mattson, SDNCVBCami Mattson, SDNCVB––Kurt Burkhart, CONVISKurt Burkhart, CONVIS––Robert Moore, GM Hilton Garden Inn Robert Moore, GM Hilton Garden Inn