HomeMy WebLinkAbout2009-05-05; Carlsbad Tourism Business Improvement District; MinutesMINUTES
MEETING OF: CARLSBAD TOURISM BUSINESS IMPROVEMENT
DISTRICT BOARD (Regular Meeting)
DATE OF MEETING: May 5, 2009
TIME OF MEETING: 1:00 p.m.
PLACE OF MEETING: Room 173A, Faraday Administrative Center,
1635 Faraday Avenue
CALL TO ORDER: Chair Shute called the Meeting to order at 1:09 p.m.
ROLL CALL was taken by the Deputy Clerk, as follows:
Present: Shute, Stripe, Canepa, Becerra and Howard-Jones .
Absent: Cima.
DISCUSSION OF CONSENT CALENDAR ITEMS:
STAFF REPORT
1) Financial Update
Staff Liaison Cheryl Gerhardt gave the staff report and PowerPoint Presentation (Exhibit 1 to
Minutes).
In response to an inquiry from Board Member Stripe, Mrs. Gerhardt said that the occupancy
rate for hotels in Carisbad is down approximately 30% from 2008.
Board Member Stripe asked ifthe total Transient Occupancy Tax (TOT) numbers included
new rooms.
Mrs. Gerhardt responded that the report contains the same number of rooms as it had over
the past 12 months with the exception ofthe Beach View Lodge that is currentiy under
renovation.
AB 05-09-42 APPROVE CONTRACT WITH MINDGRUVE FOR THE ENDLESS SUMMER
MARKETING CAMPAIGN
General Counsel Ron Ball clarifled changes to the proposed resolution to be adopted by the
Board that would make it consistent with the agreement. He added that the agreement is
contingent upon receiving funding from NRG and City Council.
Mr. Mike Garten Mindgruve, gave the presentation on the Endless Summer Campaign (Exhibit
2 to Minutes).
Mr. Garten from Mindgruve explained the A-Rez internet vacation reservation program.
Mr. Elliott asked if Mindgruve was offering the entire booking package.
May 5, 2009 Carlsbad Tourism Business Improvement District Board Page 2
Mr. Garten stated that Mindgruve's internet site would have a unique reservation package that
would offer themed deals under the Endless Summer program.
In response to an inquiry from Board member Stripe, Mr. Garten said that Mindgruve was
working with each hotel to develop content for the Endless Summer program. He added that
Mindgruve did not have the e-commerce portion ofthe program. He explained that Mindgruve
will accept all of information on the reservation and when the guest is ready to book, the guest
will be redirected to the hotel site that will then run the credit card to secure the reservation.
Board Member Stripe stated he was concerned about credit cards and the security ofthe site.
Carisbad Convention and Visitor's Bureau Vice President Nancy Nayudu asked what would
happen if there was no online system to enterthe credit card information.
Mr. Garten stated that this process needed to be reviewed.
Mr. Elliott asked Mr. Garten to explain how Mindgruve is paid.
Mr. Garten responded that there they receive payment through an agency fee for each hit.
Board Member Stripe asked how monitoring is accomplished when no reservation has been
made. He asked how does hotel management know how marketing dollars are being spent.
Mr. Garten said that the hits are already being measured in Phase 1 ofthe Program. No
money will be spent unless it is beyond the 3-1 expectation.
Board Member Stripe stated he would like to see a higher return for the hotels.
Mr. Garten said that management on returns will be what the market bears.
In response to an inquiry from Board member Stripe, Mr. Garten said the baseline is a 3-1
return and could possibly become a 4-1.
Discussion ensued among the Board members on how to measure the outcome ofthe
program.
General Counsel Ron Ball stated that no contingency for metric measurement needed to be
added to the agreement during the meeting.
Board Member Stripe said he would like to have a metric measurement added to the
agreement.
Mr. Ball added that the resolution before the Board for approval would be amended to include
the phrase "subject to metrics being added to the agreement"
Mr. Garten said that he was concerned about adding additional time to rolling out the Endless
Summer Campaign to the public.
May 5, 2009 Carlsbad Tourism Business Improvement District Board Page 3
Reint Reinders, of Reint Reinders & Associates (RR&A), stated that the Board could ask
RR&A to oversee the project and provide the Board with a weekly report.
General Council Ball stated that wording could be added to the agreement that provided the
Board with the option that if Mindgruve's performance standards are not being met, the project
could be stopped.
Katherine Shimo Kawasaki stated that the Endless Summer Campaign was a short campaign
with quite a bit of up front leg work. She added that the project is going to be relative to what
is happening in terms of the success of the campaign. She said the campaign may not be
compelling for metrics measurements. She further said that the key to the success of the
campaign is quick adjustments as needed.
General Council Ball stated that ifthe Board is concerned about monies spent and wants to
see a return on the investment, then the contract could be divided into phases and wouldn't
proceed further until the Board authorizes additional funding.
Mr. Reinders suggested the Board consider a one-time review ofthe campaign after 45 days.
Mr. Ball said the one-time review could be added and clarifled that Mindgruve is to be paid for
any work completed within the 45 days if the agreement is terminated.
Don Christiansen from Carisbad came fonA/ard to address the Board. Mr. Christiansen asked
the Board to consider including the three Carisbad lagoons and eco-tourism in the marketing
campaign.
ACTION: On a motion by Board Member Stripe, the Board approved
Resolution No. 2009-2. as amended, entering into a contract with
Mindgruve to develop and implement the Endless Summer
Marketing Campaign to be amended to include a review of the
campaign after 45 days, and appropriate funds.
AYES: Shute, Stripe, Canepa, Beccera, and Howard-Jones.
NOES: None
ABSTAIN: None
Vlll. NEXT MEETING:
The date for the next meeting was set for May 19, 2009 at 1:00 p.m.
ADJOURNMENT:
By proper motion, the Regular Meeting of May 5, 2009 was adjourned at 2:35 p.m.
SHERRY FREISINGER
Deputy Clerk