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HomeMy WebLinkAbout2008-11-24; Carlsbad Tourism Business Improvement District; 11-08-38; Report from Renders & AssociatesCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 11-08-38 MTG. 1 1 -24-08 DEPT. Admin Services Report from Reint Reinders & Associates CTBID STAFF ('g>\ GENERAL X^f?' COUNSEL <&^ RECOMMENDED ACTION: 1. Receive reports from Reint Reinders & Associates and discuss recommendations and direct staff appropriately 2. Adopt Resolution 2008-8 directing general counsel to draft a proposed contract with Mindgruve to perform Marketing Plan and appropriating $350,000 from Reserves and return for Board action. 3. Adopt Resolution 2008-9 extending contract with Reint Reinders & Associates an additional three months and appropriating $30,000 from reserves. 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. RR&A's initial recommendations (Phase I) were presented to the CTBID Board at the August 26th meeting. The Board extended RR&A's contract through November 30, 2008 and requested that they return to the Board with recommendations on the best strategy for deploying available CTBID funds for marketing the destination of Carlsbad (Phase II). RR&A presented an overview of their recommended strategy for the remainder of the 2008-2009 fiscal year at the October 14th Board meeting and the Board authorized them to procure the assistance of Mindgruve advertising agency in preparing a detailed marketing and branding plan. The Board directed RR&A to return in November with a detailed marketing plan to be developed by RR&A, Mindgruve, and a committee of marketing experts from the hotel industry in Carlsbad, including CCVB. This plan is attached at Exhibit 1. It overviews the objectives of the plan as well as how these objectives will be accomplished over the remainder of the 2008-09 fiscal year with total cost of $350,000. The Board also directed RR&A to develop a recommended budget for 2009-10. A document outlining the budget principals is attached at Exhibit 2. This budget gives a general overview of how the $900,000 in CTBID revenue should be spent. A more detailed plan will be developed in the spring for the Board approval. The CTBID Board should receive the reports and discuss the marketing strategies outlined by RR&A in its memo dated November 14, 2008 (shown at Exhibit 3). Following the discussion, if the Board chooses to move forward with the Mindgruve spring marketing plan, the Board should adopt the resolution appropriating the $350,000 and directing staff to draft the necessary documents and agreements for the signature of the Board Chair. months at a cost of $10,000 per month. This would allow RR&A time to return to the Board with the appropriate documents for Board approval to put in place some of their recommendations. FISCAL IMPACT: The CTBID's 2008-09 Budget has a $220,000 contingency fund and a $390,000 available fund balance for a total of $610,000 in available funds. The Estimated revenue for 2009-10 from the $1 per room night CTBID assessment is $900,000. 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. Mindgruve CTBID Marketing Plan dated November 14, 2008 2. RR&A Budget Proposal for Carlsbad DMO for Fiscal year 2009-10 3. RR&A Memorandum to April Shute dated November 14, 2008 4. RR&A Phase II outline dated August 8, 2008 5. Resolution 2008-8 authorizing contract with Mindgruve and appropriating funds. 6. Resolution 2008-9 extending contract with RR&A and appropriating funds. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2409, cgerh@ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED D CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER - SEE MINUTES D AMENDED D EXHIBIT 1 MINDGRUVE THE NEXT GENERATION AGENCY An advertising + interactive media firm that develops result-driven solutions for some of the top brands in the U.S. Carlsbad BID November U, 2008 Prepared for: Reint Reindeers Project: City of Carlsbad Campaign Contact: Reint Reinders Address: 12380 Rue Cheaumont, San Diego, CA 92131 Email: reintOreintreinders.com Phone: 619.519.2831 of>M -J? Carlsbad BID Overview The following recommendations are based on a Phase 1 approach to accomplish the following objectives over a (6) month term: 1) Solidify The City of Carlsbad Brand & Positioning 2) Develop a New Identity/Logo for the City of Carlsbad 3) Create Tourism Packages to Stimulate Hotel & Attraction Bookings 4) Leverage The City of San Diego's equity and Campaign Initiatives to drive travelers to Carlsbad 5) Develop & Execute a Targeted Online Marketing Campaign via Google, Family Travel Websites, etc. 6) Execute an Overarching Carlsbad Campaign to drive vacationers to Carlsbad and put heads in beds for our hotel constituents. This Phase 1 initiative will serve as the foundation and building block for all future advertising and marketing campaigns. Our goal would be to keep the velocity and momentum created by this Phase 1 campaign by leveraging it into a Phase 2 campaign. We plan to begin the planning process for Phase 2, 90 days into Phase 1. Because all of our Phase 1 campaign initiatives will be highly scrutinized and measured, we will be able to determine which tactics are performing best. In doing so, this will allow us to develop a blue print for how to maximize the media dollars in Phase 2. Research-$17,500 In today's economy, we are faced with the challenges of increased competition, a declining dollar and consumers watching every dollar they spend. Our continued success depends upon targeting our acquisition programs more efficiently and cost effectively. Mindgruve's travel marketing industry segmentation will enable Carlsbad to profile the best customers and utilize this information, along with our powerful consumer segmentation to: 1) Target prospects 2) Tailor promotions to each audience 3) Improve cross-sell promotions for other properties 4) Identify partners for co-branding promotions All information contained within: © Copyright 2008 Mindgruve, inc. — all rights reserved. Mindgruve provides research solutions that deliver measurable results for media planning, customer acquisition and retention, promotions and cross-sell initiatives. Our experience determining your customer's travel and lifestyle preferences through market segmentation, behavioral data and demographics will enable you to: 1) Utilize customer data to determine how much a person is worth to you (lifetime- value and share of wallet) 2) Identify who your best customers are (so you can find, engage and retain) 3) Eliminate advertising waste by targeting only your best prospects 4) Establish loyalty by offering what appeals to the customer's individual lifestyle 5) Use lifestyle analysis to tailor promotions and maximize cross-sell opportunities With the proper research to analyze your targeted customers, we can determine the best approach to drive home our unique value proposition. "Customer Acquisition and Retention-identify the right customers at a time of need, capture them, and keep them engaged on an ongoing basis and coming back. *Market Feeders-link customer information to geographies so you can prioritize your best markets and sites for expansion *Direct Marketing-developing laser targeted customer profiles helps to improve your response rates by delivering messages to fewer, better-targeted prospects. "Media Planning-choose the appropriate medium to reach your best customers while maximizing the impact of you media expenditures. Brand Platform- $20,000 A brand build is a compilation of the written, verbal and visual representation of your brand which serves as a guide to consistent brand communication. 1) Formalization of brand and positioning. 2) To provide brand uniformity and establish a benchmark for the way the organization connects with consumers. 3) Provide agency teams, i.e. public relations, traditional advertising, interactive marketing and photographers, a practical guide for all Carlsbad branding efforts. Below is an itemization of categories we plan to explore and formalize. 1) Target Audience- our primary audience and decision making influencers 2) Vision Statement- The brand's future goals. "Where do we want to go?" 3) Mission Statement- A mission statement answers the question, "Why do we exist?" 4) Strategic Positioning- A straightforward statement about what the organization offers in the marketplace to meet specific set of needs in that category, stated in such a way that it clearly differentiates us from the competition. Who is Carlsbad? 5) Unique Value Proposition- What is our point of difference? 6) Brand Promise- The brand's point of credibility; the most legitimate claim it can make 7) Brand Traits- Traits that describe the way consumers will relate to the brand. Use these traits as the benchmark for determining whether the brand message is connecting with the intended audience. In other words, "what we are and are not". 8) Brand Tone- How the brand speaks to its audiences. What's our commercial voice? 9) Our Story- The background and history of this brand, written in a way that connects emotionally with the consumer. What is the Carlsbad story? 10) Image Exploration- What types of images do we want to reveal? The stage helps to define style, angles, type, and variety of images we plan to utilize for the campaign. 11) Color Story- What colors are going to be primary and complimentary to the campaign? 12) Type Study- What will be our primary and secondary font families that best connect to our new brand? 13) Mood Board- A collection of fonts, textures, colors, photos, headlines, and lifestyle icons that summarize our vision for the new brand. Carlsbad Logo Design- $10,000 Our recommendation is to develop a new logo for the City of Carlsbad that connects with our new positioning and will better resonate with our target audience. This initiative will include several iterations of logo concept, design, color, and production. Tourism Package Development- $15,000 Work with Hotels & Theme Park to formalize internet special packages, promotions, and coops. Brochure Design & Production- $15,000 New brochure to promote Tourism Packages with a Carlsbad Fun Map. Print Campaign-$15,000 Ads in targeted magazine, local publications, Val Pak, etc Microsite Design & Programming- $25,000 Based on 4-5 microsite campaigns linked to key word domains for specific travel package sales and promotions. Online Banner Advertising- $35,000 Banner Ads on key family travel websites that geotarget Los Angeles, Orange, Riverside, San Bernardino, San Diego Counties as well as Las Vegas, Phoenix, Tijuana. Pay-Per-Click Advertising- Yahoo & Google- $90,000 Based on a (6) month term. Key words that drive travel and destination leads at a time of need to our specialized microsites and/or our Carlsbad Tourism Partners. Email Marketing- $24,000 Based on 6 month term. Series of targeted emails that support our Hotel & Resort Vacation Packages and Microsites. Frequency to be determined. Campaign Measurement- $15,000 Entire Advertising Campaign will be measured on a monthly basis including web traffic, conversions, open rates, click thru's, affiliates, channel partners, etc. All information contained within © Copyright 2008 Mindgruve, me — all tights reserved Content Development- UGC/Social Media/Blog, Articles, Video-$18,000 Carlsbad is lacking depth of content in all aspects of their website. We will utilize social media to leverage user generated content such as blogs, message boards, twitter, and others. Also, featured articles on local attractions, and videos to better engage our consumers. Campaign Project Management- $30,000 This budget includes the monthly management fee for the account manager, project managers, account communications, meetings, and ongoing campaign strategy. Additional Costs- $20,500 This is our additional items budget to cover all variable costs relating to Copywriting, Stock Photography, Photography, Map Illustrations, and Printing. CHAD ROBLEY PRESIDENT crobley@mindgruve.com 1018 EIGHTH AVE SAN DiEGO, CA9210" mindgruve.com 619.757.1325x222 MICHAEL GARTEN SVP, BUSINESS DEVELOPMENT mgartenfclmindgruve.com 18851 BARDEEN AVENUE IRVINE, CA 92612 mindgruve.com I 949.955.9221 x2 EXHIBIT 2 JteinfJteinders, CffA fieintfieinders & Associates 12380 J?ue Cfoeaamont San Diego, CA 92131 Phone: 619-519-2831 reint(a)remtrei?iders. com www. reintremdeiy. com Wednesday, November 05, 2008 Budget proposal for Carlsbad DMO for Fiscal 2009-2010 Vision Statement Make Carlsbad into a top of mind Tourism Brand in the San Diego Region Mission Statement To position Carlsbad as a desirable leisure travel destination in the minds of our prospective travelers and to act as the brand manager for the Carlsbad tourism brand in order to generate commerce and tax revenues for the citizens of Carlsbad. Leisure Travel Target Categories Geographical All mature feeder markets such as Los Angeles, Orange and Riverside counties. Prime feeder markets such as Phoenix, Tucson and Northern California. Potential growth areas include Las Vegas, Salt Lake City and Sacramento. San Diego has a much larger reach and Carlsbad will benefit from the growth in marketing dollars from the State of California and from the extension of marketing reach from San Diego ConVis and San Diego North CVB, now with considerable more resources following the new San Diego Tourism Promotion Corp. arrival this year. Carlsbad Travel Target Audiences Family travel is the priority segment. This is a growing segment and Carlsbad - - with its major attraction and small town and beach environment - - is the perfect location for family travel. This segment is $75k plus, college educated, aged 30 - 54, married with children under 18 living at home, residing in large metropolitan areas. Another segment is the more affluent audience, those who enjoy high-end resort settings, with spas, golf, dining and shopping. These are families and young upward mobile affluent singles and couples. And then there are the Baby Boomers, a rapidly growing segment of travelers, who enjoy a wide variety of sightseeing and activities. With over 1 billion people online now globally, our strategy will be to take advantage of this growing medium. We are able to target all the prime travel audiences for Carlsbad. We have a $350,000 marketing campaign which is scheduled to kick off in January and will carry us through the balance of the fiscal year. It is critical that we follow through on this initial campaign with a budget for the fiscal *10 that dovetails on the initiatives we are putting in place now. The principal emphasis will be on the Internet and making the VisitCarlsbad.com website the very best. In addition, we will be deploying multiple strategies to enhance our interaction with potential visitors. This will include review and enhancement of our platform, navigation, content and booking engine. Areas such as search optimization, database management, Web 2.0 and other critical web growth strategies will become a focus of the new Carlsbad DM0. It will be very important that we hire a Director of Business Development, someone who is completely knowledgeable of the Web and how to improve the positioning of the VisitCarlsbad.com web presence with the various potential travel markets. Someone who can improve the content development, bring the hotel and tourism community members together to enhance the overall product offerings available to our markets. Someone who can institute new innovative areas in e-mail marketing, expanding the opt-in online community, develop an active blogging area and generally will focused on making the number of potential visitors dramatically greater than where we are today. The other position we need to employ is a Director of Communications. This position will deploy all the traditional areas of public relations, e.g., travel writer Fams, media visits, media P.R. releases, special event coverage, national, regional, and local print coverage and monitoring. Significant time needs to be spent on web needs, such as content development, blogging, e-mail monitoring, audience development, and in general, work with the Carlsbad tourism community to ensure involvement and proper updates on the tourism products. The primary leader will be the President and CEO of the Carlsbad DMO. This leadership position is a critical one. It will require an individual who is a hands-on problem solver. Someone who is knowledgeable of the sales, marketing and promotion of a destination and all that it entails. This person needs to know the Internet - - in today's marketplace a small destination like Carlsbad will rely more and more on this medium. This individual will be critically important in galvanizing the Carlsbad tourism community. This person will be the face and be the spokesperson of the tourism community. This person will be working closely with the BID leadership and keep them involved and informed on an ongoing basis. This leader will be working with the hotel and tourism community to ensure that any and all marketing plans and special events are vetted and supported by the community. It is also going to be important for this leader to be engaged with other like-minded organizations, e.g., Cal Tourism Industry Assn, CTTC, San Diego North CVB and San Diego ConVis to ensure alignment and to capitalize on any joint marketing opportunities. Preliminary Budget outlook for Fiscal 2009-2010 Staffing President & CEO with 3 reports President is responsible for all administrative, operational and Sales and Marketing direction of the organization. Is responsible to the Board of the BID and maintains close relationships with the hotels, attractions and all other tourism constituents and enjoys a critical liaison with the Carlsbad municipal government. Maintains also close relationships with all out of city aligned agencies (CONVIS, SDNCVB, CTTC, CalTIA). Director of Business Development. Responsible for identifying market opportunities for short and long term leisure market growth. Is the principle driver for the Carlsbad Web development and growth. Is the key Brand manager. Works closely with the creative agency to deliver high quality brand solutions. Works with an industry marketing advisory panel for feedback and input. Director of Communications. Overall responsibility for the effective development and execution of an aggressive P.R. plan for the promotion of leisure business and special events. Operations Assistant. This person will be responsible for all administrative support needed including records maintenance, accounts receivable and payable functions and monthly report generation. The 2009-2010 Budget will have total revenue of $800,000. This revenue will come from the CTBID, which at this point appears to be collecting in excess of $900,000 for this fiscal year. The balance to be reserved and for BID administration and special event distribution where approved by the Board. There are three (3) main categories of expense to be budgeted: Personnel cost, which is for the four (4) positions and benefits, cost should not exceed 40% or $320,000. Marketing promotional costs to stay within 50% or $400,000. Administrative and General expenses, cost to be approximately $100,000. This preliminary Budget outlook assumes a few fiscal impact items: 1. The City of Carlsbad to assume the fiscal responsibility for operation of the visitor center 2. The DMO to move out of the visitor center into office space in the downtown area The DMO to work out the agreement with the City and assume oversight of the visitor center and all other appropriate materials and services for prospective visitors. Much remains to be decided in the months to come. The above preliminary direction is important to discuss in view of the significant commitment the CTBID is making with the $350,000 marketing initiative which will lead us into the new fiscal year with a renewed commitment from all players to the Carlsbad tourism future. EXHIBIT 3 Jteintfieinden, CffA fieintfteinders & Associates 12380 J^ue Cbeaumont San Diego, CA 92131 Ptone: 619-519-2831 remt(q)remtreim/ers. com www. remtremde;y. com Friday, November 14, 2008 Memorandum To: April Shute, Chairwoman Carlsbad Tourism Business Improvement District Cc: CTBID Board of Directors From: Reint Reinders & Associates (RR&A), Consultants to the CTBID Subject: Carlsbad Tourism Marketing Strategies On Monday, November 24, 2008 RR&A will be making a presentation to the CTBID Board in hopes of seeking a positive reception from the Board in approving the $350,000 1st and 2nd quarter Marketing Campaign as presented by Mindgruve, to stimulate travel demand to Carlsbad and the Carlsbad hotel community. Tourism statistical results for the San Diego Region, including Carlsbad, have been alarmingly headed in a downward movement, so much so that for the week ending November 9, the Smith Travel Research Report reveals the San Diego Region was down 27 percent in occupancies and 24 percent in RevPar. Considering these sobering statistics now is the time to start a new direction for Carlsbad tourism marketing over the next 6-8 months; leading us into the next fiscal year, giving us a great opportunity to position a fresh, new and aggressive approach to Carlsbad destination marketing. Here are some significant areas for the CTBID Board's consideration and for approval today so we may move forward. 1- Approval of the Mindgruve Spring Marketing Campaign. A comprehensive $350K campaign that will address multiple areas of branding and positioning; multiple Internet marketing strategies - - all to be focused on building the Carlsbad brand demand in order to increase leisure travel to Carlsbad. 2- Approval in principle of the direction of the $800K FY 2010 Budget. A document outlining the Budget principles is attached for your review. This proposal at this point is just a general marketing objective. A more detailed FY marketing plan will be developed in the spring for CTBID approval. It will be important to give direction to our new partner (Mindgruve) for continued engagement into the next fiscal year, 3- The hotel community is now in charge of Carlsbad tourism promotion. No longer are we dependant on the City TOT funding and the annual CVB "begathon". We have the responsibility to set the agenda and be good stewards of the BID funds. The CTBID should be renamed "Carlsbad Tourism Promotion Corporation", 4- RR&A suggests that the CTBID calls for a "Tourism Summit" to be held in early January 2009. Invitees will be representatives of the CCVB leadership, Attractions Leaders, City of Carlsbad Leadership (Mayor, Council and City Manager), BID Board of Directors and all BID Hotel members should be invited. RR&A will be working with the CTBID to set the agenda and will facilitate the meeting. The outcome of the meeting is hopefully a new cooperative, committed and engaged community, with all partners fully cognizant and dedicated to their respective roles. 5- It is suggested that CTBID reaffirms its commitment to the August 24 tourism status report delivered by RR&A and specifically reaffirms its commitment to moving forward on the Phase II engagement of RR&A and the 17 point plan as outlined in that document. Now is the time to move forward to put the new DMO organization in place and to formulate all roles and responsibilities, which will lead to a grand kick off of the new structure at the start of FY 2010. 6- RR&A is looking forward to a successful implementation of all of the aforementioned strategies and stands ready to assist in making the Carlsbad tourism product a desirable and highly recognizable brand in the years to come. EXHIBIT 4 fteinffieinders, Cf/A Jteint fieinders & Associates 12380 fiue Cbeaumont San Diego, CA 92131 Pbone: 760-994-9266 remt&)remt?-emdeiy. com www. re infre infers, com Friday, August 08, 2008 RR&A Proposal Phase II (2/18/08 version1) After the initial four months of Phase I, the set of recommendations will be available for actionable steps to go forward with RR&A's Phase II professional services. RR&A recommends that the CTBID Board engage the RR&A team for a second phase (Phase II). Phase II is designed to ensure full implementation and detailed follow up on all recommendations the CTBID Board approve and adopt. Phase II is expected to last eight (8) months ($12,000.00 per month, total of $96,000.00). This follow up mentoring can be a real asset to the organization as it begins to execute on the marketing plans, new budgets and technology implementation. RR&A suggests a series of steps that would enable RR&A to interact with leadership and the staffs, hold weekly meetings, do coaching, teaching and continuously adjust and improve the newly agreed upon and adopted standards. RR&A will be reporting monthly in writing and in person to the BID Board, the ultimate stakeholder leadership. RR&A is confident that RR&A will be able to have a very effective functioning organization and have instituted an enterprising spirit to deliver on the Carlsbad tourism marketing initiatives. RR&A Proposal Phase II (8/8/08 version) Reint Reinders& Associates (RR&A) to be contracted by the CTBID for a Phase II deployment for a period not to exceed 10 months at a total compensation of $100,000.00 ($10,000.00 per month for ten months, 9/1/08 through 6/30/09). Phase II would commence on September 1, 2008 and end on June 30, 2009. This period will coincide with the balance of the CTBID fiscal year as well as the duration of the existing contracts with Carlsbad Convention & Visitors Bureau (CCVB) and San Diego North Convention & Visitors Bureau (SDNCVB), and will allow for a new model and program to be in place at the start of fiscal year 2009-2010. Here are the recommendations by RR&A of the specific actions to be performed during the balance of the fiscal 2008-09 year. Depending on the new level of funding starting fiscal 2009- EXHIBIT 4 10 approved by the CTBID, not all recommendations may be doable at a lower level of funding. Plans and tasks to be performed by the RR&A team: 1. RR&A will provide overall management of the implementation process for the 10- month period of time between 9/1/08 and 6/30/09. Should the CTBID Board approve and adopt all or most of the critical new initiatives recommended, RR&A will take ownership of the transition and implementation process. There is no one on the current CTBID Board to take on the responsibility and serve in that capacity 2. Develop an organization plan and template to include governance , general guidelines, and standard operating procedures (SOPs) on/for performance measurement/metrics, position descriptions, compensation, reporting and budgets for approval by the newly reconstituted Destination Marketing Organization (DM0) and by the CTBID Board; both organizations (the new Carlsbad DM0 and the CTBID) to become aligned and in synch for the explicit benefit of the Carlsbad tourism community 3. Develop a new 2009-2010 Carlsbad Tourism Sales and Marketing Plan to be adopted by the new DM0 and by the CTBID Board, the body that will be funding all of the components of the Plan 4. Engage the Mayor and the Carlsbad City Council to discuss, suggest and redefine the City's roles and involvement with the CTBID and new DM0; in addition, to resolve funding and upgrading issues of the current Carlsbad Visitor Center 5. Engage the Mayor and the City Council in a discussion, to seek buy in on certain other critical infrastructure issues of great importance to Carlsbad tourism stakeholders that will enhance and strengthen the overall Carlsbad brand 6. Engage the Mayor and the City Council members in a discussion on reformatting or revising the City's General Plan to incorporate a formal strategy for tourism 7. Engage the San Diego ConVis and SDNCVB to develop a specific plan for a new, formal alignment between the new Carlsbad DMO, S.D. ConVis and SDNCVB especially in view of the recent tremendous growth of tourism marketing dollars for these two organizations; with the introduction last year of the S.D. Tourism Promotion Corporation, ConVis will claim more than $30 million for tourism marketing in 2009; the plans and alignment initiatives will include Internet, research, advertising and promotions, public relations and sales and marketing programs and campaigns 8. Engage in dialogue with potential "sponsors" and "partners" and new alliances for the new Carlsbad DMO, e.g., Legoland and Callaway (potential sources for additional funding and/or joint marketing efforts) 9. Create a new "advisory board" for the newly reconstituted Carlsbad DMO to consist of the very best marketing minds amongst Carlsbad's tourism stakeholders; new advisory EXHIBIT 4 board to give input on DMO's future marketing plans, strategies, initiatives and spending; opportunity for creating new synergism between DM0 and hotel stakeholders 10. Develop an RFP and solicit representative consulting firms to conduct a comprehensive Carlsbad Tourism Economic Impact study in order to produce a 2008 baseline; importance for all Carlsbad tourism stakeholders, in particular the City government, to "know the dollars" (that come from tourism locally); RR&A to present the consulting firm selection to the CTBID for approval and funding 11. Conduct a CEO search and any other key managers required to staff the new DM0; all candidates proposed to be presented for final review and approval by the CTBID Board 12. Oversee the upgrade and overall enhancement of the VisitCarlsbad.com website; work closely with Simple View (a preferred provider in CVB website construction and hosting, already engaged with the present CCVB website); develop an overall plan for the site that will include SEO (search engine optimization), functionality, navigation, content, linkages and transaction capabilities along with strategies to improve overall organic growth; present the CTBID Board with the detailed plan for funding with the intention of the new site becoming fully operational before 6/30/09 13. Implement and manage a new customized training program made available to all Carlsbad hotels for managers, revenue managers, front desk, reservations, sales, catering and conference service personnel, focusing on capturing more room nights from call ins, walk ins and past and present guests; a sustaining program featuring monthly workshops; adds value to the new BID contribution by all hotels; program is designed to help raise Carlsbad's overall occupancy back to a stabilized 70 percent plus; to be presented to CTBID Board for approval and funding 14. As a highlighted principal strategy of the 2009-2010 marketing plan process, create a "Branding Carlsbad" initiative to ensure full embracement by the Carlsbad tourism stakeholders so that, under RR&A's watch and supervision, Carlsbad can be positioned as a "unique" destination; a primary goal of this branding exercise will be to grow the F.I.T. (non group, non-business traveler, more leisure driven) business for Carlsbad and to especially strengthen the demand for leisure product during the six months of Carlsbad's off-season (Sept. through Feb.), which at present produces a less than acceptable sub-60 percent occupancy 15. Conduct meetings individually and in small groups with the tourism community stakeholders to explain (and get input and buy in on) the new DM0 organization and its sales and marketing strategies, goals and overall value going forward 16. RR&A to meet with and report monthly and/or quarterly with the CTBID Board, orally and/or in writing - - at the pleasure of the CTBID Board 17. The Phase II fee ($10,000 per month) for RR&A's services entails a maximum of 50 hours per month at the rate of $200.00 per hour; to be billed monthly 3 EXHIBIT 5 1 RESOLUTION NO. 2008-8 2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, AUTHORIZING THE CHAIRPERSON TO ENTER 4 INTO AN AGREEMENT FOR PROFESSIONAL SERVICES WITH MINDGRUVE 5 6 WHEREAS, the City Council of the City of Carlsbad adopted Ordinance No. NS-778 7 enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15, 2005 thereby creating 8 the Carlsbad Tourism Business Improvement District (CTBID); and 9 WHEREAS, the primary purpose of the CTBID is to promote tourism and provide 10 services to visitors to the City of Carlsbad; and 11 WHEREAS, the City Council has authorized the Board of Directors of the CTBID to 12 conduct the business of the CTBID in the time, place and manner that best suits the needs of the 13 Board of Directors of the CTBID, subject to the control of federal, state and local laws governing 14 the activities of a Business Improvement District; and 15 WHEREAS, the City Council has provided the Board of Directors with the ability to 16 contract for services necessary to carry out the purpose of the CTBID; and 17 WHEREAS, the CTBID has contracted with Mr. Reint Reinders to provide marketing 18 and other consulting services to the CTBID; and 19 WHEREAS, the CTBID directed Reint Reinders &Associates to develop a detail 20 marketing plan for the 2008-09 fiscal year with the assistance of Mindgruve advertising agency; 21 and 22 WHEREAS, Mindgruve submitted a detailed marketing plan dated November 14, 2008 23 for a total cost of $350,000; and 24 WHEREAS, the CTBID Board has reviewed the plan submitted by Mindgruve and finds 25 that the services to be provided by Mindgruve will be of benefit to the CTBID; 26 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad 27 Tourism Business Improvement District, as follows: 28 1. That the above recitations are true and correct. 2. That the CTBID General Counsel is directed to draft the documents necessary to enter into an agreement with Mindgruve for Board's consideration to provide all, or part of the services described in the plan dated November 14, 2008, as may be deemed necessary by the CTBID Board. 3. That $350,000 be appropriated from CTBID reserves to fund the Mindgruve contract. -2- PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District on the A I day of j\l d\)e^ \}^T 2008, by the following vote to wit: AYES: NOES: / ABSENT: I ATTEST: APRIL SHUTE Chairperson L)pRRAINFWOOD / J (j ro Tern Clerk of the v_x Carlsbad Tourism Business Improvement District -3- EXHIBIT 6 1 RESOLUTION NO. 2008-9 2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, AUTHORIZING THE CHAIRPERSON TO ENTER 4 INTO AN AGREEMENT FOR PROFESSIONAL SERVICES WITH REINT REINDERS & ASSOCIATES 5 6 WHEREAS, the City Council of the City of Carlsbad adopted Ordinance No. NS-778 7 enacting Chapter 3.37 of the Carlsbad Municipal Code on November 15, 2005 thereby creating 8 the Carlsbad Tourism Business Improvement District (CTBID); and 9 WHEREAS, the primary purpose of the CTBID is to promote tourism and provide 10 services to visitors to the City of Carlsbad; and 11 WHEREAS, the City Council has authorized the Board of Directors of the CTBID to 12 conduct the business of the CTBID in the time, place and manner that best suits the needs of the 13 Board of Directors of the CTBID, subject to the control of federal, state and local laws governing 14 the activities of a Business Improvement District; and 15 WHEREAS, the City Council has provided the Board of Directors with the ability to 16 contract for services necessary to carry out the purpose of the CTBID; and 17 WHEREAS, Mr. Reint Reinders, by virtue of his extensive experience in the hospitality 18 industry, marketing background, deep understanding of the tourism industry, and long tenure 19 with several successful hotel operations, is uniquely qualified to provide marketing and other 20 consulting services to the CTBID; and 21 WHEREAS, the CTBID contracted with Reint Reinders and Associates (RR&A) for 22 Phase I of a marketing study; and 23 WHEREAS, Reint Reinders & Associates completed phase I of the study and has 24 submitted a proposal for phase II dated August 8, 2008; and 25 WHEREAS, the CTBID Board contracted with RR&A for three months of phase II: and 26 WHEREAS, Reint Reinders & Associates completed 3 months of phase II and the Board 27 would like to extend those services an additional three months at a cost of $10,000 per month for 28 a total cost of $30,000; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Tourism Business Improvement District, as follows: 1 . That the above recitations are true and correct. 2. That the CTBID General Counsel is directed to draft the documents necessary to enter into an agreement with Reint Reinders & Associates to provide all, or part of the services described in the proposal dated August 8, 2008, as may be deemed necessary by the CTBID Board. 3. That the CTBID Chairperson is hereby authorized to execute an agreement between the CTBID and Reint Reinders & Associates in a form acceptable to the CTBID General Counsel for the procurement of the described services. 4. That $30,000 shall be appropriated from CTBID reserves to fund the contract extension. -2- PASSED, APPROVED, AND ADOPTED at a regular meeting of the Board of Directors of the Carlsbad Tourism Business Improvement District on the <> I day of N pueblo e-V- 2008, by the following vote to wit: AYES: NOES: ( ABSENT: ( ATTEST: APRIL SHUTE Chairperson I£)RRAINB WOOB J Q Pro Tern 6erk of the Carlsbad Tourism Business Improvement District -3-