HomeMy WebLinkAbout2008-10-14; Carlsbad Tourism Business Improvement District; 10-08-35; Feedback on Reint Reinders & Associates ReportCARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB# 10-08-35
MTG. 10-14-08
DEPT. AdminServices
Feedback on Reint Reinders &
Associates Report
CTBID STAFF (J£L^JOf*™ ^
GENERAL If
COUNSEL Jir^-\
RECOMMENDED ACTION:
1. Receive report from staff on feedback received on the Reint Reinders & Associates report
ITEM EXPLANATION:
The CTBID Board contracted with Reint Reinders & Associates (RR&A) to develop marketing
strategies and programs that will strengthen the tourism activities within Carlsbad. This study
was conducted during the months of April 2008 through July 2008. RR&A recommendations
were presented to the CTBID Board at its August 26th meeting.
The Board did not implement any of the recommendations at the August 26th meeting. They
requested that RR&A return to the Board on October 14th and present recommendations on the
best strategy for deploying available CTBID funds for marketing the destination of Carlsbad. In
addition, they directed staff to send copies of the RR&A report to all CTBID members and request
their feedback. The letter shown at Exhibit 1 was mailed and emailed to all the CTBID members
(which includes 42 hotels and additional timeshare properties) on September 2nd requesting their
feedback by October 1st. A total of seven responses (shown at Exhibit 2) were received.
Although these seven responses may or may not represent all the hotels, some common themes
in the feedback received included:
• Support of CCVB
• Lack of funding to current CVB
• Too much money spent on studies
• Inaction by the CTBID Board
FISCAL IMPACT:
None.
ENVIRONMENTAL IMPACT:
This action does not approve any projects that will have a physical adverse affect on the
environment so it falls within the general rule under CEQA that this is not a project (CEQA
Regulation 15738).
EXHIBITS:
1. Letter to CTBID members dated September 2, 2008
2. Feedback Responses received from Doug Yavanian, Stephen Bjork, John Rhodes, Nancy
Nayudu, Norine Sigafoose, Kurt Burkhart and Saundra Cima.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cqerh@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONL Y.
BOARD ACTION: APPROVED D CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED P RETURNED TO STAFF D
WITHDRAWN D OTHER - SEE MINUTES D
AMENDED D
Exhibit 1
City of Carlsbad
Administrative Services
September 2, 2008
Dear CTBID Member,
The Carlsbad Tourism Business Improvement District (CTBID) Board requested
that I send out this letter to all CTBID members to request their feedback on a
recent study that was completed and to inform them of the available CTBID
related information.
The Board hired Reint Reinders and Associates (RR&A) to develop marketing
strategies and programs that will strengthen the tourism activities within
Carlsbad. This study was conducted during the months of April 2008 through
July 2008. RR&A presented their findings and recommendations to the Board at
their August 26th meeting. No action was taken by the Board at the meeting
except to extend the contract of RR&A for three additional months to develop a
plan using the current funding level. The Board is asking you to forward any
feedback on the report to me to summarize and present at the next board
meeting on October 14, 2008 at 3pm.
The CTBID has a web page located on the City of Carlsbad web site. On the
web page are copies of the RR&A's report as well as past meeting agendas,
minutes, and monthly financial reports. This web site is updated often and you
can subscribe to it so you are automatically notified when it is updated. The link
to the web page is:
http://www.carlsbadca.gov/chall/chctbid.htrnl
Please review the web page and RR&A's report and forward any comments or
feedback to me at cgerh@ci.carlsbad.ca.us no later than October 1st so I can
summarize it for the Board at their next meeting. Thank you for your
participation in this very important process.
Sincerely,
Cheryl Gerhardt
CTBID staff
cgerh@ci.carlsbad.ca.us
(760)277-5203
C: Carlsbad Convention and Visitors Bureau
San Diego North Convention and Visitors Bureau
1635 Faraday Avenue • Carlsbad, CA 92008-7314 • (760) 602-2409 • FAX (760) 602-8553
Exhibit 2
Mail Message
From: "°°Ug Yavaman" Wednesday - October 1, 2008 3:03 PM<dyavaman@lacosta.com>
To: <cgerh@ci.carlsbad.ca.us>
Subject: Some Comments
Good afternoon Cheryl, for whatever it is worth, I want to give you some
input on the whole matter of CVB/BID/ETC. from at least my point of
view.
1. By way of history, I was one of the individuals over twenty
years ago that help lead the movement to get a CVB created (while I was
the Chamber Exec).
2. One of the purposes for the creation of the bureau was to get
out in front of the power as a leader in community information
dissemination and marketing (with a limited budget of Hi,000).
3. Personalities aside, I think that the City would be doing a
major disservice to the Community and local visitor industry to disband
the CVB.
4. The CVB has been criticized for a not doing certain things but
related to community marketing and tourist development however, in my
estimation, it is doing the best job possible given the fiscal hand that
it has been dealt.
5.1 don't believe that some sort of mega umbrella organization
needs to be created. The answer rests with a more adequately funded CVB
with the BID carrying out its advisory role on behalf of the City.
6. There are at least three areas that should be considered for
funding:
A.The establishment of a sales function within the CVB to
support the small and medium sized properties. The "big three" don't
need such a function as they already have large sales departments.
B. Earmark significant funds to attract and support major
special events (such as for golf and tennis, etc.)
C. Provide funding to the CVB so that it can establish a
well located and modern office facility
D. Consider funding for a motion picture and television
component with the CVB to work closely with the San Diego film
commission.
It is interesting to note that within the consultants recommendations,
there are numerous proposals that have previously been suggested by the
CVB in several reports submitted to the City Council and BID. I don't
think that it is necessary to re-create the wheel. Anyway, I hope that
these comments make some sense in helping to do what is best for the
City in the tourist and visitor arena.
From: <sabjork@gmail.com> Friday - September 19, 2008 10:45 AM
_ <cgerh@ci.carlsbad.ca.us>, <kurtb@visitcarlsbad.com>, "Terry Blue"
<terry@bluevacationrentals.com>
Subject: RR&A Study and response from Ocean Palms Beach Resort
Dear Cheryl;
September 19,2008
I am not going to complain that we have not seen any results from the BID tax collected,
because I know that we have been our own worst enemy, however, we need to start using
the money and achieving results. The obvious question is: How best to spend it?"
We, at the Ocean Palms Beach Resort, are in favor having the Carlsbad CVB (CCVB)
manage the BID marketing assessment. The reasons are many.
1. The CCVB has been engaged in the effort to promote Carlsbad tourism for many
years and have proven to be fair and evenhanded. The is no training or additional expense
required
2. They have an existing infrastructure and staff to do this.
3. Kurt Burkhardt has proven energy and ideas.
4. The CCVB helped get the measure on the ballot and approved.
5. The CCVB works very well with the Hotels and personalities in the area.
6. The RR&A study reveals that Temecula named its CVB to manage the BID
marketing assessment with proven results.
7. Lets not "reinvent the wheel" rather lets evaluate the CCVB performance after a
period of time to buy time to solicit bids from professional marketers.
8. We need to start using the money immediately in resources that the CVB already
has cultivated.
Very insightful study by RR&A. This was a very wise and responsible use of BID
money. Now we need to engage a professional and proven marketing organization to
brand and market Carlsbad and all the great things it offers and catch up with the
competition. Obviously Carlsbad has more to offer and needs to make that known. We
are in favor of finding the best way to do it, but do it now.
Stephen A. Bjork, CFO
Ocean Palms Beach Resort,
2950 Ocean Street
Hail Message |s|
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Mail Properties
From: John Rhodes Tuesday - September 30, 2008 9:34 PM
<johntrhodes@hotmail.com>
To; <cgerh@ci.carlsbad.ca,us>
Subject: Reint Reinders Study
Attachments: Mime.822 {4452 bytes) [View] [Save As]
Dear Cheryl, .;.,
Regarding the RR&A report I have the following comments:
1.1 am absolutely opposed to their recommendation to increase the present BID $l/night tax. The ,J.
monies already levied have not be utilized in their entirety as it is and what HAS been spent has
been on studies.
2.1 also oppose RR&A's proposal to perpetuate themselves to do more studies and oversee
implementation of their recommendations.
3.1 support ample funding of the CCVB with the BID funds as was promised when the BID was
proposed to us. Any additional funding needed should come from a percentage of the TOT that the
city has hijacked entirely to the general fund. Carlsbad has a revenue base that is the envy of our
neighbors; car country, Westfield and Outlet malls, golf manufacturing companies, over 40 hotels,
etc. which evidently led the City Council to conclude that we could afford a $60MM+ golf course.
Meanwhile, TOT revenue was redirected away from tourism promotion, the BID was created to fill
the void (more taxes for our customers) and all we have to show for it are unimplemented reports.
Thank you,
John Rhodes
Carlsbad Travel Inn Motel
htlp://mail.ci.carlsbad.ca.us/gw/webacc?action=Item.Read&User.context=ljavkeVi3iilqrb... 10/1/2008
PehcanCovelnn „, , , _ , , 1A nnA01A-,0„ ,. . _ ,. Wednesday-September 10,2008 10:38From: <pelicancovemn@pehcan- .. ,
cove.com>
To: <cgerh@ci.carlsbad.ca.us>
Subject: RR&A Report comments
Attachments:Mime.822 (5181 bytes) [Vlew] [Save As]
Dear Cheryl,
I first wanted to thank you for getting some of the old agendas and
minutes on line. I know 2006 is missing, but I am guessing it will also be
up soon. I also appreciated getting the letter regarding the RR&A Report.
I have read the RR&A report. Although it contains a lot of truth about
why things are going wrong, most of the information is not new info.
The inaction and waste of funds of the CTBID board is inexcusable. When I
was at the last meeting and a comment was made that it was important to do
these reports (over $200,000 worth) because there needed to be some
direction for the CTBID board I was shocked that no one mentioned that yes,
you did have a plan. You were all given a Marketing Plan when this board
was started. That plan, which was done due to urging by the city and some
members of the CTBID board, has never been discussed or utilized.
Then it was decided that a branding study should be done. This was an
item in the original Carlsbad CVB RFP. Why did the board not task their
contractor with this job? I believe that if that were done, the cost could
have been much less and implementation could have been well under way.
Another misuse of funds is for staff support. Both contractors, SDNCVB
and CCVB, had bid on the staff support at a much lesser cost than what is
currently being paid.
As for the suggestion that the amount being assessed is too small, it
wouldn't be such an issue if the money currently sitting there was being
used for marketing our destination which is what it was intended to do.
In regard to the fractured tourism community here in Carlsbad, that is not
new information. The CCVB created the Vision 2010 summit to address this
issue. The facilitator did a terrific job and came up with MANY of the same
conclusions that you spent $80,000 to receive (with no RFP!). The report
from the Vision 2010 was given to all of you. It was requested, by the
facilitator, that the CTBID should be the group to head up the summit that
would bring all Carlsbad Tourism players to the table to open communication
and work together toward the common goal of marketing our beautiful
destination. Again, nothing was done.
The lack of involvement by the City was an issue that the CCVB brought
before the CTBID board in the beginning. The CCVB was asking for the
support of the CTBID Board in requesting that the City, since they didn't
want to be actively involved in tourism, fund the operation of the Visitor's
center so that more CTBID money could be used for active marketing. Again,
nothing was done and no support was given.
To summarize, the CTBID Board has micromanaged this fund. Two years have
passed with NO new programs being implemented. The flat funding that has
occurred is, in reality, decreased funding due to the rising cost of doing
business. Temecula is viewed as the success story of proper use of a BED.
This is because they entrusted the CVB to do their job and they do. Among
the cities in California that have created BIDs, Carlsbad is viewed as the
example of a train wreck. A really great idea has been derailed. I don't
understand why your contractors are not ex-officio sitting at the table with
you. Their input is invaluable. Put the funds into the CVB's hands so it
can do the work for you. They would still be accountable to you. With over
20 years of service that the CCVB has provided for the city of Carlsbad, the
CCVB's track record speaks for itself. Carlsbad's TOT is the envy of all of
North San Diego County. The CVB has done something right.
Thanks for letting we contributors speak our mind.
Nancy Nayudu
P.S. On the vacancies of the boards and commissions on the city web site, it
shows no vacancies on the CTBID Board. There is one. Just FYI.
From: <NSigaf2994@aol.com> Saturday - September 6, 2008 1:05 PM
To: <cgerh@ci.carlsbad.ca.us>
Subject: FEEDBACK ON REPORT FOR CTBID
Cheryl:
Why in the world this report was done and so much money paid for it, is beyond me. Of course,
you know and the Board knows, that such a report was done by the Carlsbad Convention and
Visitors Bureau last year and for one tenth of the price by a much more qualified group. No new
money has been spent on programs and the Board continues to give sweetheart deals for
reports. What a waste! The report has no new information. However, it does say that the
Carlsbad Convention and Visitors Bureau has not had enough money but has done a lot with
what it has had. Why then, would the Board not fund the money necessary for the Bureau to do a
better job? No, that is to much of the right thing to do. Instead, they vote to give more money to
do more study. What a joke! The Board is squandering the money for which it has a fiduciary
duty to spend on tourism. They flat fund the Bureau, in favor of reports that lend us no new
information and are a huge waste of the tax money. Moreover, why are the deals for the
contractors done without the benefit an RFP? Where is the transparency? This tax money is not
a slush fund for the Board. Stop wasting our dollars on these questionable expenditures and use
the money for promoting tourism which is the purpose for which the hoteliers signed up. If the
developers who run the Board think that the Bureau has done nothing for Carlsbad, they need
only to look at our sister cities, some of whom have more beautiful beaches, harbors and piers, to
compare the TOT dollars generated. Through hard work and dedication, the Carlsbad Bureau
has made Carlsbad a destination despite not having as beautiful beaches piers or harbors,
because for twenty three years, the Bureau has done a great job in promotion. I do not think it
is totally broken, but I do think that if the Board plays fast and loose with the BID dollars, all will be
lost. Make no mistake about it. Most of the tourist do not come to Carlsbad because they want to
stay at a specific hotel. They stay at that hotel because it is in Carlsbad which has been well
promoted by the local Bureau and has become a destination. Our TOT dollars are the envy of all
of the cities in North County. The Board has for all practical purposes, flat funded the Bureau,
which due to the greater cost of business is basically, no new funding. Please, no
more squandering the BID money. It is time to get on with the business for which the BID was
intended, promotion of tourism In Carlsbad. Do not end this great tourism run we have had due
to the efforts of the Bureau by taking away the funding and spending it on an if come. The BID
money is a pot of gold and the opportunist are knocking at the door. The BID Board must not let
them in, even if they are their friends. There should be no hint of favoritism. Remember. The
Board has a fiduciary duty to the contributors.
NORINE SIGAFOOSE
SEASHORE ON THE SAND
760-434-6679
MEMORANDUM
TO: CHERYL GERHARDT, CTBID Staff
FROM: KURT BURKHART, Executive Director r*J
Carlsbad Convention and Visitors
DATE: October 1,2008
I appreciate this opportunity to provide comment relative to the findings presented in the
report recently released by Reint Reinders & Associates (RRA) to the Carlsbad Tourism
Business Improvement District. The original of this letter is being provided to you, along
with a copy of same and listed attachments on a CD.
Competitive Bidding & the RFP Process - Since inception of the Carlsbad Tourism
Business Improvement District, contracts awarded for specific services were conducted
in a competitive bid environment, which included a Request For Proposal. It was through
the recommendation of City staff in March 2006 that the CTBID advisory board follow
an RFP process whenever they desired to have services performed. From the initial bid
for CTBID staff support, which was issued through the very first RFP by the advisory
board, to the selection of the Wright Group and Destination Analysts, competitive
bidding was more or less the direction the CTBID advisory board chose to follow.
However, that changed, when in March 2008, Reint Reinders & Associates was awarded
an $80,000, four-month sole source contract; no competitive bidding, and no RFP was
issued. And, attached to the August 26, 2008 CTBID advisory board meeting agenda
was a subsequent contract to provide phase-two work to RRA for $100,000. Again, non-
competitive, no RFP issued. Instead, the CTBID awarded another 3-month sole source
contract for $30,000 for this same contractor to provide direction on how to proceed with
unspent funds.
The process needs to retain the fundamentals of what was established in March 2006
when Jim Elliott advised the CTBID advisory board to use the RFP process when
considering contracted work. The San Diego North Convention and Visitors Bureau,
along with the Carlsbad Convention and Visitors Bureau, both provided submissions to
the CTBID advisory board in May 2006 (PDF file attached of Carlsbad CVB RFP
Submission to CTBID).
Carlsbad Convention & Visitors Bureau
400 Carlsbad Village Drive, Carlsbad, California 92008
(760) 434.6093 • FAX (760) 434.6056 • www.visitcarlsbad.com • info@visitcarlsbad.com
"The Official Destination Marketing Organization of Carlsbad, California"
During the RFP process for a positioning study, a number of firms, including the Wright
Group, provided timely, qualified submissions.
However, why, hi this instance, when $80,000 was to be awarded did the CTBID
advisory board choose to not follow a process that had been established? This is an area
that needs further review.
Assessed dollars eventually become public funds. The CTBID advisory board is an
instrumentality of the City, which likely means that a higher authority in the decision
making process for procurement of services needs to be followed.
I know of no less than three highly qualified firms that said they would have probably bid
on the services that were awarded to Reint Reinders & Associates had an RFP been
issued that opened the door for competitive bidding. Unfortunately for them, they were
never given the chance to bid on this work.
Competitive bidding through an RFP process needs to be the rule, not the exception.
Transparency - This is key! Rather than asking the City Attorney on how CTBID
advisory board members can meet to talk freely, as was discussed at a meeting earlier last
year, there needs to be sunshine and full accountability at all levels of involvement by the
CTBID advisory board. When a subcommittee convened to review and make a
determination on which contractor would be selected to perform the positioning study,
myself and a member of the Carlsbad CVB board of directors were not permitted to
attend that subcommittee meeting. CTBID advisory board members were later informed
that they could not exclude the public. Again, these are public funds and so long as the
CTBID functions as a government entity, discussions and decisions need to be fully
transparent.
Reports & More Reports - When the Carlsbad Convention and Visitors Bureau first
asked the City of Carlsbad to provide a short-term loan for the purpose of contracting for
legal, research & marketing services during the initial stage of the BID process, Council
Members were briefed on March 22,2005 as to why these funds were needed. That
evening, Council Members were told that, "...the bureau is asking for an additional
$10,000 - so that the bureau and the hotels can -work with Strategic Marketing Group to
develop a comprehensive plan for tourism promotional efforts that would utilize funding
that we anticipate will come from the BID... we believe that by utilizing the professional
services ofSMG, it will help to address the following: future marketing plans and
strategies; identify a transition strategy from the current CVB status to a fully funded one
under the BID; Identify and assess potential cooperative opportunities with other CVBs
and lastly; Develop 3 and 5 year Return on Investment models to illustrate the impact of
the BID funds on the lodging industry. " (PDFfile attached of March 22, 2005 remarks)
Prior to our appearance before Council in March, a letter was sent to then-City Manager
Ray Patchett on February 17,2005 (PDFfile attached), initiating the request for funds to
contract with SMG. It is important to understand that during this time frame, the bureau
was specifically asked by one of the permanent seated members of the CTBID advisory
board to make certain that this, or some similar report, be done prior to making the pitch
to properties to support the concept of having a BID. That concern had already been
taken into account prior to 2005.
In subsequent communications to Council Members, hoteliers, and later to the CTBID
advisory board, the Carlsbad Convention and Visitors Bureau made clear that the SMG
Report would be the "blueprint" for moving forward. When the report was issued in
August 2005, Mayor Lewis and Council Members were provided with a cover letter
(PDFfile attached) that went to great length covering key elements. And, no less than 4
tunes was this report provided to CTBID advisory board members - upon issuance, two
copies were provided - one electronically, and the other by U.S.P.S. delivery; in the
briefing binder that was provided to each CTBID advisory board member on February 8,
2006; one copy included in the Carlsbad CVB submission to RFP on May 15,2006.
Interestingly, not once was the SMG Report ever placed on the agenda for review and/or
discussion by the CTBID advisory board. In short, it was basically ignored, until RRA
was awarded a four-month contract to initiate a report of its own. One only need read the
SMG Report to see that much of what RRA has "discovered," was already provided hi a
document that was only waiting to be acted upon. Seemingly, there was a fair amount of
duplication.
The question needs to be asked, Why, -when the Carlsbad CVB went before City Council
and asked funding to pay for this report, was it not used when the intent was clearly
spelled out at the time funds were requested for SMG?
Industry Support of the BID - At the very outset of the process that eventually brought
to fruition the CTBID, every single lodging establishment was not only notified, but was
encouraged to be a part of the process. That process actually began in September 2004,
when representatives from Grand Pacific Resorts, La Costa Resort and Spa and Four
Seasons Resort Aviara came together in a meeting called by the Carlsbad CVB to discuss
the concept of having a BID. At that meeting was John Lambeth, the attorney who is
credited with having written the 1994 Tourism BID law in California. The initial idea of
having an assessment of one-percent was discussed and was quickly "killed," in favor of
the current one-dollar per night amount that is levied on guests. As the process continued
moving forward, U.S.P.S. Certified letters were sent by the Carlsbad CVB to every TOT-
paying lodging establishment in Carlsbad to invite them to an informational meeting on
January 12,2005. The purpose of that meeting was to introduce the concept of the BID
and field questions. John Lambeth was on hand at that meeting, which 24 properties
attended. (PDF file attached documents include November 19, 2004 letter to industry,
January 2005 meeting agenda & PowerPoint presentation)
RRA has made the assertion that the Carlsbad CVB somehow "lost control" of the BID
process. We do not agree with that claim. Although there was no voiced or written
opposition to the creation of the BID, it is acknowledged that there were no outward
advocates leading the charge. There has also been comment made in the time leading up
to the release of the RRA report that the "The Big 3" only went along, at the insistence of
the City, to "approve" the BID. As we were working through the BID process in the
early summer months of 2006, myself, and several members of the Carlsbad CVB Board
were told that if we chose to basically back-out of the BID and not go forward with it,
that the City would do it on its own.
In short, I believe we did everything that was in keeping with the process by proactively
engaging in outreach and dialogue with the industry.
However, what the industry was led to believe would happen with passage of the BID
has, in fact, failed to meet up to the original intent of the BID, as first proposed. The
bureau's budget has remained flat, an excessively high reserve of 20% keeps funds at
bay, and representation of properties on the CTBDD advisory board, especially at the
lower side of inventory, continues to be a problem, hi short, expectations have not been
met.
Systematic Dismantling of the Carlsbad CVB - Obviously, this is an area that raises
keen and immediate interest on the part of many. In a recent meeting with a Council
Member, the question was asked: If you knew at the time when you approved the
creation of the BID that it would lead to the eventual demise of the Carlsbad CVB, would
you have approved the BID? The answer heard by both Nancy Nayudu, the current CVB
Board Chair, and myself, was, No!
It goes without saying that the Carlsbad CVB has been underfunded and has been
hampered in its effort to elevate itself to that of a full-service bureau. Since 2002, when
the funding level was slightly increased to $408,000, the Carlsbad CVB continued to
function on a flat-funded appropriated amount by the City of Carlsbad and later, through
the CTBID advisory board, until FY 07-08, when that amount was increased to $448,800,
translating into a 10% increase. With no funded sales programs (which, RRA believes is
not an issue, even though the San Diego CVB, while under Mr. Reinders' leadership,
aggressively bid on and won a potential contract to provide sales support services to the
Carlsbad CVB in September 2001) that would bring link the bureau more closely with the
lodging industry, and maintaining the status quo without any significant funding
increases, the bureau had little-to-no options for increasing its value to stakeholders in
Carlsbad.
The assertion made by RRA is that the Carlsbad CVB is unable to realize any new and/or
meaningful changes without a change in the organizational structure and leadership.
There is nothing wrong with the organization, other than it has been held down for more
than 20 years. The bureau has provided community and industry support as a destination
marketing organization since 1985. However, a review of reports issued in 1988 show
that the Carlsbad CVB had a budget of $239,700. hi a report issued in FY 91-92, the
recommendations stated that, "Overall, Carlsbad CONVIS produces one of the most
effective returns of a city's re-investment of TOT revenues by most methods of
comparison. Yet, in spite of its performance, CARLSBAD CONVIS has been receiving a
decreasing percentage of TOT revenues and decreasing real (inflation adjusted)
dollars, " This same report went on to further recommend that the City of Carlsbad
should, "Adopt the average level of funding (7.22%) as a standardized rate to incentivize
CONVIS and allow for better planning."
In short, nearly two decades later, the Carlsbad CVB continues to be plagued with
inadequate funding to meet its needs and the desires of stakeholders to adequately
represent this destination. (PDFfile attached with Carlsbad CONVIS Review, Executive
Summary & Analysis and Comparison Study for Carlsbad CONVIS)
Let's face it; noses will get out of joint and with many sensitivities, there are bound to be
those who will get caught in the personal, rather than readily admitting to a systemic
problem with respect to supporting tourism as an key economic driver. Rather than
perpetuating and advancing personal agendas, the real issue is one of political will; the
failure to act is not an option.
Additionally, what has also provided tremendous challenge is the lack of multi-year
funding that would allow the Carlsbad CVB to embark upon and execute key programs.
Referring again to the May 15,2006 RFP submission by the Carlsbad CVB, every single
facet of service and operation by the bureau was detailed, including a branding campaign,
which is almost always the domain of the CVB. Good programs were outlined and
detailed with cost and percentage of funding. Again, not one iota of discussion followed
the submission of that document. Of the more than $800,000 that was expected in first-
year District assessments, the Carlsbad CVB showed where $722,941 would be spent.
Instead, the bureau received a continuation of the funding that had been previously
provided by the City of Carlsbad - $408,000.
So, it is easy to criticize and have others believe that the existing organization is
somehow falling behind due to some red herring issues. Again, if adequate and proper
funding had been given to the Carlsbad CVB, first by the City and then by the CTBID
advisory board, I would venture to say that the landscape would look entirely different
than it does now. With a renewed effort to embark on selfless partnerships that would
"raise the tide," I believe a new day can occur for an organization and individuals who
have worked hard, especially constrained by external conditions, to improve Carlsbad's
competitiveness.
Board Composition - When Mayor Lewis asked me for a list of prospects to be seated
on the CTBID advisory board I forwarded him a letter that detailed a list of voting and
ex-officio members. Unfortunately, none of the names listed outside of "The Big 3" were
included, although three of the four properties comprising the 7-seated board members
were included. (PDF file attached with letter of April 4, 2005 letter to Mayor Lewis)
It is unfortunate that ex-officio seats, other than what has been provided to the City
Manager, were not included in the ordinance that created the BID. Ex-officio members
would provide real value to the CTBID advisory board as they could likely represent key
elements within the tourism and hospitality sector. And, with more than SO years of
combined experience in Carlsbad and North County, the notion that both contracted
bureaus - San Diego North Convention and Visitors Bureau and Carlsbad Convention
and Visitors Bureau - are excluded from the table is simply mind-boggling. Both
organizations, although contractors, are rich in institutional knowledge and they need to
be seated alongside the industry, contributing and participating in discussions relative to
destination marketing.
And, with all due respect to the current members of the CTBID advisory board, the
current composition of board members needs to change. This is the business about
destination marketing, and what we need to have from those properties currently seated
and, from those who will replace termed-out members, are sales and marketing
professionals whose day-in-and-day-out duties involve just that - sales & marketing.
As appointments on boards and commissions is the purview of the mayor, the issue of
board composition needs to be addressed and this bureau believes it has a role in the
discussions on any changes to the CTBID advisory board.
PDF Files Attached To Disc Provided:
Carlsbad CVB RFP Submission to CTBID May 12,2006
SMG Report - Tourism Marketing Plan for a BID Funded Bureau
Carlsbad CONVIS Review
March 22,2005 remarks before City Council
March 25,2005 SMG Pre-Report Document
November 19,2004 industry letter
April 4,2005 letter to Mayor Lewis on CTBID seats
April 19,2005 letter to Cami Mattson
Carlsbad CONVIS Executive Summary 1991-92
Letter for SMG Funding, February 17,2005
August 22,2005 letter to Mayor Lewis on release of SMG Report
Agenda and PowerPoint presentation on BID, January 2005
January 2003 CBJ, We'd Like to BID on That!
CVB Board Minutes Detail BID Chronology
Carlsbad CVB Semi-Annual Report to the CTBID, July - Dec 2007,
March 18,2008
• Carlsbad CVB Semi-Annual Report to the CTBID, Jan - June 2008
August 15,2008
PowerPoint Presentations:
• BID Advisory Board Presentation February 8,2006
• November 30,2006 CTBID Presentation on Visitor Center
NOTE: CD Attachments are available upon request.
Ocean Villas
2895 Ocean Street
Carlsbad, Ca 92008
760-730-3000
I am an owner of a small hotel/vacation rental on the beach in Carlsbad, as well as a
single family vacation rental for which I regularly pay TOT and BID funds to the city. I
voted for the BID with the understanding that more money would be spent for marketing
Carlsbad as a destination city. I have struggled with the fact that BID was sold to us as
an additional source of advertising revenue for the Carlsbad Visitors Bureau (CVB) and
that the city would match dollar for dollar money raised by the BID assessment.
Surprisingly the funds for marketing/advertising have been limited to a small portion of
the BID revenue alone. Even though this is an important point, it is not the purpose of
this letter, but one that I plan to revisit and investigate at a later date.
I have been very disappointed with the lack of action by the board as well as the large
amount of money that has been spent reinventing the wheel. I will address these as
follows;
A. Excessive expenditures of funds:
1. An SMG group report of $33,000 requested by the city for a marketing plan
for future use of BID funds. This was an important and necessary report but was not
utilized for appropriating any BID funds.
2. A Positioning/Branding Review Report of $95,000 by The Wright group and
others that was paid for by BID funds and again not utilized for direction for BID funds.
3. A Marketing strategy report by the Reint Reinders for $80,000, again paid for
by the BID funds.
4. Another $30,000 outlay of BID funds to Reint Reinders, ($10,000 per month
for the next 3 months) to determine how to spend the existing funds of the BED, as
suggested in the $80,000 Reinder report. (An original Proposal of $100,000 for the Phase
II portion of the Reinder report was substituted by the $30,000 3 month outlay.)
Hopefully, the $100,000 proposal will not come up again and this will be the last of BID
money going for costly reports and proposals.
Very little has been done for marketing but a lot of BID advertising money over the past
couple of years has gone for reports on how to spend money. Reports are important, but
they need to be utilized. We need to have our BID dollars start working for us.
B. Previous Reports for BID:
1. SMG group Report, A marketing plan given to CTBID at the request of the City
Council. This unused plan was to be the blue print for BID funds.
2. Vision 2010 Summit report, another report submitted but not used.
None of these reports were utilized in making BID decisions, but the $80,000 Reint
Reinders Report paralleled much of its findings from these previous reports. Further,
there was no published RFP for open bidding for The Reinder Report.
C. CTBID Members:
1. The Carlsbad City Ordinance law was changed allowing members serving on
the BID board to no longer be required to reside in the city of Carlsbad. This is the only
city board that allows this residence exception. This is an unacceptable change to the
city ordinance and needs to be revisited. People managing Carlsbad money should be
Carlsbad residents.
2. Several members of the BID have permanent status on the board. These
members represent approximately 30% of the hotel rooms in Carlsbad and are from the
largest hotels. Even though these permanent members may perform with the best of the
best, no one should have permanent status on the board. No review of performance is
required for the permanent status. Many of these members are manager or developers
and even though they may be well versed on hotel management and development, they
are not marketing experts. These large hotels have huge marketing dollars and the BID
funds are not as important to their marketing programs as they would be to the smaller
hotels. The smaller hotel's presence has been conspicuously under represented on this
board. This inequity needs to be reevaluated.
3. The CVB needs to be a member of the BID board or used as an advisor to the
administration of the BID funds. The CVB has performed well in the past with Carlsbad
advertising dollars and their expertise should be included in the future spending of BID
funds. Due to the CVB's extensive planning and efforts, the BID program came to
fruition. They have a proven track record for marketing Carlsbad. Why are we not using
the assets available to us instead of trying once again to reinvent the wheel when we have
had a history of success with this agency?
4. The salary of staff support seems an excessive use of BID funds when the
CVB was willing to take on the job for $1 a year or San Diego North perform the same
job for $5000 a year. They were not even considered. Both of the aforementioned have
experience in the marketing field and could have preserved the BID dollars to be directed
to marketing instead of administration. Why was this position appointed instead of filled
through an RFP or RFQ? A person of travel marketing experience would have been an
added asset to this board.
5. The CVB has been receiving the same amount of marketing funds that the city
had awarded in the years past. Even though all cost of operations and advertising has
increased the allotted funds have only been increased by 10%. The large amount of funds
in the BID account are not doing any of us any good just sitting in a bank and are doing
nothing for marketing our properties. As noted in the Reinder Report, smaller cities have
much larger advertising dollars to service fewer hotels. More advertising dollars will
positively affect all businesses in Carlsbad.
6. The Bid Law states that the money being generated by the BID district must be
spent for the benefit of all contributors for the marketing of Carlsbad. The funds going to
San Diego North are being put into a general marketing fund benefiting hotels in other
cities and counties. This may benefit larger properties, but is doing little to benefit the
smaller hotels in the Carlsbad area. Again, our BID money needs to be going for the
marketing for our city alone and not for other Southern California cities in a general
marketing pool.
Summary.
1. This board needs to keep the citizens of Carlsbad informed of all meetings and
agendas, and minutes need to be posted in a timely manner. News of action and
expenditures of the board needs to be e-mailed to those businesses and property owners
that actively collect BID funds. We collect it; we should get news of upcoming programs
and expenditures and have ample time to have an input to these decisions.
2. No further closed door decisions or contract awards.
3. Smaller properties should occupy positions on the board and no board member
should be awarded a permanent status position.
4. Board members need to be residents of Carlsbad.
5. There should be more involvement of the CVB in advising and administering
BID funds
6. We are spending money at record breaking speed for redundant reports and
expensive personnel that are being awarded and appointed in an unfair process that does
not involve an RFP or RFQ. Huge amounts of our hard earned dollars are being spent
with no substantial benefit to the marketing of Carlsbad that we were originally promised.
Large amounts are being stored away for the proposed "rainy day." We need to get this
money working for us, not sitting in a bank.
This idea of a BID is a big BUST and I, for one, will actively oppose any future
increase of BID fees or additional funds being used for reports or needless salaries or
monies going to agencies not serving the sole benefit of businesses in Carlsbad. It is a
travesty that this much money could be collected and wasted for this long on absolutely
nothing. The money that has been awarded to the CVB has been the only money that has
resulted in dollars well spent.
I am very disappointed in what is being done with the BED money and will ask the city
council to review this matter in an open work shop.
Thank you for your time in presenting this matter to the board.
Sincerely,
Saundra Cima
Owner/ Manager Ocean Villas
760-730-3000