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Home My WebLink About2012-03-28; Carlsbad Tourism Business Improvement District; MinutesMINUTES MEETING OF: CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD (Regular Meeting) DATE OF MEETING: March 28, 2012 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 Cleric, as follows: Present: Canepa, Nayudu, Becerra. Stiebeling and Akers, Stripe, McCormick. Absent: None. lil. MINUTES FOR APPROVAL On a motion by Board Member Stiebeling. the Board approved the Minutes of the meeting held January 25, 2012. AB 03-12-74 - 2011-12 CTBID RECIPIENT'S FINAL REPORTS On a motion by Board Member Nayudu, the Board unanimously approved the final reports from the 2011-12 Grant Recipients. APPROVE APPOINTMENT TO VISITCARLSBAD BOARD: Board Member Akers recused herself from the meeting for this item due to a potential conflict of interest. On a motion by Board Member Becerra, the Board approved the appointment of Kristine Bane to the DMG Board. Chair Stripe requested that the BID Board receive a report/bio on applicants being considered for approval to the VisitCarisbad Board. STAFF REPORT: Staff liaison Cheryl Gerhardt gave the staff report and PowerPoint presentation (on file in the Office ofthe City Clerk) regarding the January and February financial reports. CTBID Board Meeting March 28, 2012 Page 2 Ms. Gerhardt provided the subcommittee's recommendations on the 2012-2013 proposed budget to the Board. She said that the committee projected revenues by 3% with the exception ofthe Park Hyatt, La Costa Resort and Spa, and Grand Pacific Resorts which she used actual projections provided to her by the hotels. In addition, the new Hilton, due to open in June 2012, was included In the projections. Ms. Gerhardt reviewed the proposed budget for 2012-13. She explained that the subcommittee recommended to increase that funding amount for grants from $20,000 to $50,000 and to increase the VisitCarisbad contract from $744,000.00 to $780,000.00. Board Member Becerra, a member ofthe subcommittee, explained that it was important for the BID Board to have the opportunity to look at different grant organizations/sponsorships that come to Carisbad. A discussion ensued among Board Members regarding potential types of mariceting grants. Chair Stripe said it was important that it be made it known that funds are available for marketing grants. The Board concurred that marketing grants have had a positive impact on rented room nights. Board Members also concurred that if it was not necessary to spend the entire amount allocated for grant funding if it was not warranted. Vll. VISIT CARLSBAD BUDGET PROPOSAL FOR FISCAL YEAR 2012-13 Sam Ross, Executive Director ofthe DMO gave the report and PowerPoint presentation regarding VisitCarisbad's proposed 2012-13 budget. Mr. Ross explained that the DMO was proposing a budget of $800,000; adding that the bulk of the working program consists of primarily using Mindgruve, they are also bringing aboard a public relations agency to assist with the Carlsbad brand. Mr. Ross said that $50,000 was eannarked for group-direct marketing. He further reviewed the funding allocations of the various VisitCarisbad programs. In response to an inquiry from Ms. Gerhardt, Mr. Ross explained that group-direct mariceting will entail monthly group emails, allow for the growth of space on VisitCarisbad.com, and enable the use of mobile tablet applications for meeting groups. Board Member Canepa expressed his concern no addifional funding being provided to the DMO since the District was fomried. He said he was in support of giving the DMO the addifional requested funding. Chair Stripe stated he would like to see measurability in terms of room nights. CTBID Board Meefing March 28, 2012 Page 3 Mr. Ross explained that the DMO Board felt that measuring room nights was not an effective measuring tool. Mr. Ross explained that good measurements encompass unique visitors, pages viewed per visit, number of comments and growing fans on facebook. Board Member McConnick asked for a revenue indicator to be used as a measurement tool. In response to an inquiry from Board Member Canepa, Mr. Ross stated that four DMO Board Members recommended this budget request. Chair Stripe requested that the DMO and Mindgruve develop a metric system to measure room night stays. In response to an inquiry from General Counsel Ron Ball, Mr. Ross stated that there are other maricefing agencies that provide the same services as Mindgruve, but he has not suggested a full agency review at this time. Board Member Akers stated that the DMO Board should be receiving an annual progress report from Mindgruve. In response to an inquiry from Board Member Stiebeling, Mr. Ross stated that fiie DMO has contracted with Mindgruve for the past three years. Board Member Stiebeling expressed concem that as this contract accounts for 65% of the DMO budget, there have been no progress reports from Mindgruve. He suggested that the DMO inquire about other agencies that provide the same services. In response to an inquiry from Board Member Becen-a, Mr. Ross said the agreement with Mindgruve ends on June 30, 2012. Board Member Becerra and Chair Stripe concun-ed that the DMO should solicit an RFP to three other mariceting groups for the same services provided to the DMO by Mindgruve. Mr. Ross explained fiiat he would not change the use of Mindgmve for marketing purposes, but ifthe BID recommendation is that a review should be conducted, the DMO would do it. CTBID Board Meefing March 28, 2012 Page 4 Chair Stripe requested a review from Mindgruve on its accomplishments and proposed accomplishments. In response to an inquiry from Board Member Canepa, General Counsel Ball stated that the BID Board should direct staff to return at the next meeting with the proposed 2012-13 budget. Discussion ensued among Board Members regarding the potential relocation of lodging to Carlsbad for the San Diego Surf Cup. Board Members then provided their comments on the proposed DMO 2012-13 budget request- Board Members: Nayudu: Use $15,000 from grant funding for the addifional funding request; and allot for a $5,000 reducfion from something else in the DMO to make the $800,000 budget request. Canepa: DMO budget at $795,000, grant funding will probably be expended at $30,000- $45,000. Becerra: DMO budget at $800,000. Review the scope of woric with Mindgruve and look at what other marketing agencies are charging. If other maricefing agencies are cheaper, then consider a reduction in funding with the Mindgruve agreement. Use $20,000 from the reserve to make the $800,000. Leave grant funding at the proposed level. Stiebeling: Leave grant funding at the proposed level. DMO budget at $800,000. Use $20,000 from resen/e funds. Review and evaluate performance of Mindgruve. Akers: Concurred with Board Members Becerra and Stiebeling. McCormick: DMO budget at $800,000. Re-evaluate Mindgruve perfomnance. Vll. NEXT MEETING The Board concurred to hold its regular annual meefing on Wednesday, May 16, 2012. By proper mofion, the Board Meefing of March 28, 2012 adjoumed at 2:24 p.m. SHERRY FREISINGER Senior Deputy Clerk 2012-13 CTBID Budget EXHIBITA Program Areas Description 2010-t1 Actuals 2011-12 Budget Cunrent 2011-12 Actuals Projected 2011-12 Actuals Recommended 2012-13 Budget Carryover Fund Balance $65,353 $62,678 62.678 62,678 123,776 Revenues: CTBID Assessment Interest Earnings Prior Year refunds $1 per room night 791.301 761 780.000 0 717,905 404 -12,135 857.880 460 -12.135 900.000 0 Total Estimated Revenues 792.062 780,000 706,174 858,330 900.000 ExDenditures: 2% Admin. Fee - City CCVB Payment Staff support CTBID Grants Contingency 2% of CTBID assessment revenue, for collection of CTBID assessment and accounting for CTBID To operate visitor cjenter, market and promote Carlsbad Staff support to the CTBID Grant program established by CTBID Board To be determined by the CTBID Board at a later date 15,820 743,434 15.663 19,820 0 16.500 744,582 16,600 20.000 0 14,230 682,528 12,978 19,000 0 17,157 744.576 16,499 19.000 0 19.000 800.000 16,500 50.000 0 Total Expenses 794,737 797,582 728.736 797,232 885,500 Ending Fund Balance Contingency for Revenue shortfall $62,678 $45,096 $40,116 123.776 138,276 * The Carlsbad Convention and Visitors Bureau Is the corporate entity. The Bylaws that now has seven Board members and the dba "Visit Carlsbad". have been changed during 2009 to an organization