HomeMy WebLinkAbout2008-07-07; Carlsbad Tourism Business Improvement District; MinutesCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT
(CTBID) BOARD
MINUTES
July 7, 2008
11:00 a.m.
1635 Faraday Avenue, Room 173A
Carlsbad, CA
/• CALL TO ORDER: 11:05 .m.
Chair April Shute called the meeting to order at 11:05 a.m.
//. ROLL CALL:
The Chair took roll call and five Directors were present. Director Cima was
absent. Mr. Paul Edmonson served as General Counsel for Mr. Ron Ball.
///. (C) APPROVE MINUTES OF MAY 7. 2008 MEETING
Mr. Stripe made a motion, seconded by Mr. Canepa, to approve the minutes of
the May 7, 2008 meeting. Motion carried.
IV. £CJ AB07-08-30 APPROVE SAN DIEGO NORTH CONVENTION AND
VISITORS BUREAU QUARTERLY REPORT
Several Board members had questions relative to bookings made through
Travelocity, Expedia, Hotels.com, etc. and were curious why those numbers
were included in the SDNCVB report. Their corporate headquarters staff
contract directly with these entities. Approval and acceptance of the report is
deferred until the next CTBID meeting on August 26.
ACTION:
Staff will contact San Diego North Convention & Visitors Bureau staff and
ask them to provide the following information in their annual report:
1) provide separate subtotals for group bookings vs. extranet providers
to reserve hotel rooms at a specific property.
Staff will also work with SDNCVB and properties on bookings shown in
the report that properties said they used their own staff to contract with.
CTBID Board Meeting Minutes
July 7, 2008
Page 2
V. STAFF REPORT
1) Financial 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.) Assessment revenue numbers
collected by the hotels in May and remitted to the City in June were not yet
available. She will obtain the information from the Finance Department this
week and post the report on the CTBID City website.
Mrs. Gerhardt reported that estimated revenues as of June 30, 2008 were
$828,724. Total expenditures were $694,497. The amount paid to date for the
Reint Reinders & Associates contract is $50,200. The remaining $29,800 will be
carried over to the new FY2008-09 budget.
Comparing FY2007 vs. 2008, Mrs. Gerhardt reported that revenue was $64,000
higher this year. She also mentioned the new FY2008-09 budget that went into
effect on July 1, 2008, which the Board approved at its last meeting. The City
Council approved it at its June 24, 2008 meeting. The only change to the new
budget is an addition of $40,000 for CTBID grants. There is $250,000 in
Contingency for any additional projects the Board may wish to embark upon.
Financial Highlights include:
t Current year contingency = $250,000
+ Unbudgeted reserves = $365,000
* Total number of hotel rooms = 3,635
VI. AB07-08-31 CTBID GRANT REQUESTS
Mrs. Gerhardt stated two grant applications were received, one from In Motion
Events and one from ArtSplash. She introduced Lynn Flanagan from In Motion
Events on behalf of the Carlsbad Marathon.
Mrs. Flanagan stated that the Carlsbad Marathon has been an annual event
since 1991. Last year it accounted for over 12,000 room nights. The date this
year is January 25, 2009. The marketing focus is on the local market and driver
market, including Orange, Los Angeles, Riverside and San Bernardino counties
as well as Arizona and Las Vegas.
If the grant is awarded to the Carlsbad Marathon, the money will be used as
follows:
+ Print ads in: LA Sports and Fitness Magazine, Race Place Arizona, and Sweat
Magazine-Arizona
CTBID Board Meeting Minutes
July 7, 2008
PageS
* Direct mail campaign to marathoners in the Los Angeles area as well as key
areas in Nevada and Arizona
+ Distribution of entry forms in these target areas
+ Design and printing of ads and collateral materials for the new marketing
program
In response to several questions, Mrs. Flanagan shared that the direct mail
campaign has been replaced by e-mail. It costs $10,000 to purchase sponsor,
event and participant lists, which include over 100,000 people. Ten per cent of
the participants are from Arizona, which is second to California. She previously
has not done advertising in Arizona.
San Diego North Convention & Visitors Bureau does all the hotel contracts for
them. Two hundred fifty people have already booked rooms at the Hilton,
hosted by a charity group annual convention with doctor seminars. The
Leukemia Society had 150 people at a local hotel this past year and they plan to
double it next year.
ACTION: Mr. Becerra requested that Mrs. Flanagan obtain a day-by-day report
from SDNCVB for the hotel rooms reserved.
Mrs. Flanagan stated the participants will be given a survey at check-in to
complete that includes information about where they are staying and for how
long.
Conversation ensued regarding the ARES reservation tool used by SDNCVB
and the notion ARES charges a 24% discount to hotels for bookings made
through their system. Board members were curious to know if that discount
applied to citywide events and specifically for the Marathon. A suggestion was
made to offer not more than a 6% discount.
Mrs. Flanagan stated that on the Marathon website page there is a list of all the
hotels they have contracts with and a link to click on to get more information
about the hotel and to make the reservation.
ACTION: Mr. Stripe requested that Mrs. Flanagan provide the information they
requested by the August 26 meeting, to ensure that financial strengths are
aligned.
Chair Shute asked how the print ads are tracked. Mrs. Flanagan responded
they offer a free training shirt to anyone who registers through the particular ad.
A code number is assigned. About 90% of the people register on line and one
half of the advertising is done on line.
CTBID Board Meeting Minutes
July 7, 2008
Page 4
ACTION: Mr. Stripe suggested adding questions to the survey such as: 1) age
and number of children; 2) income level; and 3) e-mail address. Some
properties would like this information for their marketing database.
Mrs. Gerhardt stated In Motion could supply the information in their final report
detailing the results of the project along with copies of the pre-approved
advertisements and collateral materials supported through the grant.
ACTION: In summary, the following information was requested:
1) booking information process
2) confirm the ARES discount
3) include in the survey information that will be useful for the hotels
4) tracking on print ads
5) circulation number of direct mail, e-mail and print ads
Mrs. Flanagan stated the survey is e-mailed along with the registration packet
and they e-mail it again after the event. Mrs. Gerhardt described the process for
the Rock & Roll Marathon. They have everyone complete the survey before
they get their number. They e-mailed it prior to the event so it can be completed
and turned in at registration; or it can be completed at the event and turned in at
the registration area. Their policy is if you want to run, you complete the survey.
Mrs. Gerhardt introduced Joni Miringoff representing ArtSplash. Mrs. Miringoff
showed a DVD that highlighted the ArtSplash two-day events. She provided
background that ArtSplash is an all volunteer, non-profit organization that
produces a popular annual arts and music festival in Carlsbad to raise funds for
art and music programs in North County schools.
The CTBID support is needed to help market and publicize ArtSplash throughout
the greater Southern California region to maximize patronage for both the
festival and local businesses. The funds will be used to purchase ads in Orange
and Riverside County newspapers as well as other out of the area magazines
and websites.
Mr. Stripe suggested partnering with Legoland to encourage two-night stays.
Mrs. Miringoff stated that they give a child's admission free for anyone who signs
up for a 2' x 2' square in the family area. They also provide tickets for raffle
drawings.
Mr. Stripe made a motion, seconded by Mr. Becerra, to adopt Resolution No.
2008-5 allocating $10,000 to In Motion Events and $7,000 to ArtSplash. Motion
carried.
CTBID Board Meeting Minutes
July 7, 2008
Page 5
VII. DISCUSSION ITEMS
None.
VIM. NEXT MEETING
The next regular meeting is on Tuesday, August 26, from 3:00 p.m. to 5:00 p.m.
at 1635 Faraday Avenue, Room 173A.
Agenda items to include:
1. Reint Reinders & Associates will present its report and findings
2. June 30, 2008 end-of-year reports from Carlsbad Convention and Visitors
Bureau and San Diego North Convention and Visitors Bureau
3. Follow-up response to today's questions by Lynn Flanagan of In Motion
Events
PUBLIC COMMENT
None.
ADJOURNMENT
Chair Shute adjourned the meeting at 11:56 a.m.
Respectfully submitted, ,
Sheryl Keller
Recording Secretary
£arJsbadJiujrJsrn
Business Improvement
District
Financial Update
June 30, 2008
CTBID Assessment Revenue
12 month period
AS :$
Month revenue remitted H Hotel B Timeshare Ave occupancy rate 62%
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
CTBID Assessment Revenue
28 month period
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2006 D 2007 • 2008
Monti revenue remitted Ave occupancy rate 62%
2D07-08 Budget to Actua
Program Areas
Revenues:
C
Ir
Tot
Exf
^«z
O
SI
St
P(
Rl
Q
Tot
"BID Assessment
terest Earnings
al Estimated Revenues
enditures:
% Administrative Fee - City
IVB Contract
)NCVB Contract
aff support
)sitioning Study
l&A Contract
mtingency
al Expenses
Budget
775,000
5,000
780,000
15,500
448,800
110,000
15,000
61,000
80,000
70,000
800,300
Actual
30-June-08
814,193
14,531
828,724
14,410
448,800
110,000
12,569
58,518
50,200
0
694,497
Difference
39,193
9,531
48,724
(1,090)
0
0
(2,431)
(2,482)
(29,800)
(70,000)
(105,803)
D 2007 vs 2008
Program Areas
Reven
CTBII
Intere
Total E
Rev
Exoenc
2% /
CCVB
SDNC
Staff
Positi<
RR&A
Total E
ues:
) Assessment
st Earnings
stimated
enues
itures:
idmin. Fee - City
Contract
VB Contract
support
>ning Study
Contract
xpenses
Actual
750,099
7,779
757,878
13,934
408,000
100,000
14,912
34,000
0
570,846
Actual
_3DJjJn_eM3jB
814,193
14,531
828,724
14,410
448,800
110,000
12,569
58,518
50,200
694,497
$
Difference
64,094
6,752
70,846
476
40,800
10,000
(2,343)
24,518
50,200
123,651
JMffe/0
8.5
86.7
9.3
3.4
10.0
10.0
(15.7)
72.1
100
21.7
2D08-09 Budget
Program Areas Budget
Revenues:
CTBID Assessment
Interest Earnings
Total Estimated Revenues
Expenditures:
2% Administrative Fee
CCVB Contract
SDNCVB Contract
Staff support
CTBID Grants
Contingency
Total Expenses
-City
775,000
10,000
785,000
16,500
448,000
110,000
16,500
40,000
250,000
881,000
Financial Highlights
C jrrent year contingency $250,000
Uibudgeted reserves $365,000
Total number of hotel rooms 3,635