HomeMy WebLinkAbout2011-07-13; Carlsbad Tourism Business Improvement District; MinutesMINUTES
MEETING OF: CARLSBAD TOURISM BUSINESS IMPROVEMENT
DISTRICT BOARD (Regular Meeting)
DATE OF MEETING: July 13, 2011
TIME OF MEETING: 1:00 p.m.
PLACE OF MEETING: Room 173A, Faraday Administrative Center,
1635 Faraday Avenue
CALL TO ORDER: Chair Stripe called the Meeting to order at 1:05 p.m.
ROLL CALL was taken by the Deputy Clerk, as follows:
Present: Canepa, Nayudu, Stripe, Becerra and Stielbeling .
Absent: McCormick and Howard-Jones.
III. MINUTES FOR APPROVAL
On a motion by Board Member Stielbeling, the Board unanimously approved the
Minutes ofthe May 18, 2011 meeting.
IV. AB 07-11-68 APPOINTMENT TO VISITCARLSBAD BOARD
On a motion by Board Member Stielbeling, the Board unanimously approved the
appointment of Jason McLaughlin to the VisitCarisbad Board of Directors.
V. STAFF REPORTS
Cheryl Gerhardt provided the staff report and PowerPoint presentation regarding the
financial update ofthe Transient Occupancy Tax and CTBID revenues and budget.
Ms. Gerhardt responded to Board Member Stiebeling's inquiry, stating that an
approximately $60,000 was remaining in the Board's reserve account.
Ms. Gerhardt provided the Board with an update on Board Members' attendances at
meetings and whose terms would end in November 2011.
The Board concurred not to make a recommendation to City Council regarding
attendance at Board meetings at this time.
VI. AB 07-11-69 CTBID GRANT FUNDING RECOMMENDATIONS
General Counsel Ball referred to the grant fund request from the Mercury Insurance
Open and suggested that the Board consider taking action to meet the $10,000
amount requested from the grantee instead of VisitCarisbad's recommended
$11,000 award.
Board Member Nayudu asked if the Board would entertain increasing the ArtSplash
request by $1,000.
Board Member Becerra motioned to change the grant award funding for the Mercury
Insurance Open to meet the grantee's request of $10,000. The motion passed
unanimously.
Discussion ensued among Board Members regarding allocation ofthe $1,000
subtracted from the Mercury Insurance Open grant award.
Board Member Stiebeling motioned to fund the remaining grant requests totaling
$9,000 as recommended by the VisitCarisbad Board. The motion passed
unanimously.
VII. AB 07-11-7- PROPOSED CARLSBAD MARKETING DISTRICT
Board Member Nayudu explained that she would prefer to set aside her own funds
for additional marketing purposes.
Board Member Stiebeling stated he felt the proposed program would provide
insurance that the funds set aside would be used for marketing purposes and not to
offset other expenses.
Board Member Canepa said he was cohcerned about the impact the program would
have on the status and future funding ofthe DMO. He asked DMO Executive
Director Sam Ross to explain how he would use this additional funding.
Mr. Ross responded that the funds would provide for more opportunity to market
Carisbad in the southwest and midwest. He added that he felt that growth of the
DMO would be stunted if a new assessment district was created.
Board Member Stiebeling stated he felt that the new district would create additional
occupancy that would bring in revenue to be funneled into the DMO.
Discussion ensued among Board Members regarding the potential affect a separate
assessment could have on the DMO.
In response to an inquiry from Board Member Becerra, General Counsel Ball
informed the Board that assessments are not taxes, as taxes require a vote ofthe
people. He further added that the current administration costs of 2% would not the
cover the costs of the addition of another assessment district.
Chair Stripe reviewed his thoughts on the proposed district:
- The proposed district would grow
- More occupancy would occur, which in turn would increase funding to the DMO
- The program is voluntary by property
- Would prove the ability to have an increase in marketing dollars to be used
strictly for marketing
- Disagree with the program adding additional work for the assesses
Board Member Canepa said he would like to see an even split of the total $3
charged to the assesses at $1.50 and would prefer a trial period ofthe new program
that would expire unless all lodging members participated.
Board Members concurred that they were interested in increasing the amount of BID
monies for marketing purposes.
Rick Mansur from the Sheraton Hotel came forward to address the Board on this
item.
Mr. Mansur stated the proposed district provides one more tool to Carisbad
hoteliers, that most consumers are aware that depending on where they are staying,
assessments rates are different at participating hotels located in Tourism Business
Districts. He added that the main objective of the program is to bring new business
to Carisbad. He further said he is concerned that objectives to the proposal keep
changing.
Ms. Gerhardt stated she received an email from Board Member McCormick
regarding this issue and after a determination from General Counsel Ball that is was
admissible during this meeting, informed the Board that Mr. McCormick is in favor of
the proposed program provided there is an option for all to choose whether or not to
participate.
Board Member Becerra motioned notto approve Resolution No. 2011-6, regarding
the formation of a Carisbad Marketing District.
Board Members Stripe and Stiebeling voted in favor of approving Resolution No.
2011-6. Board Members Becerra, Nayudu and Canepa voted against approval of
Resolution No. 2011-6.
Vll. NEXT MEETING
The Board scheduled its next meeting for October 12, 2011 at 1:00 p.m. Staff will
notify the Board ofthe location.
By proper motion, the Board Meeting of July 13, 2011 adjourned at 2:00 p.m.
{Y FREISltvJGER
Senior Deputy Clerk