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HomeMy WebLinkAbout2013-05-15; Carlsbad Tourism Business Improvement District; 05-13-91; Approve Agreement Between CTBID and CCVBCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL AB# 05-13-91 Approve Agreement between CTBID and the Carlsbad Convention and Visitors Bureau CTBID STAFF "JMK MTG. 5-15-13 Approve Agreement between CTBID and the Carlsbad Convention and Visitors Bureau GENERAL COUNSEL Approve Agreement between CTBID and the Carlsbad Convention and Visitors Bureau RECOMMENDED ACTION: 1. Adopt Resolution No. 2013-4 authorizing the Chairperson to enter into agreement between the Carisbad Tourism Business Improvement District (CTBID) and the Carisbad Convention and Visitors Bureau (CCVB) for tourism promotion services for the period July 1, 2013 through June 30, 2014. ITEM EXPLANATION: Since the inception of the Carisbad Tourism Business Improvement District (CTBID), the CTBID Board has contracted with Carisbad Convention and Visitors Bureau 501C-6 corporation (dba VisitCarisbad) to provide tourism marketing services for Carisbad. The scope of those services have included operation of the visitor center, web site development and administration, print and internet advertising, public relations and various other tourism marketing activities identified in the contract for that fiscal year. The VisitCarisbad Board develops the scope of work and presents it to the CTBID Board for approval along with the proposed budget for the work which is then included in the CTBID annual budget. At the April 17, 2013 CTBID Board meeting. Visit Carisbad presented to the CTBID Board its proposed program of work and budget for fiscal year 2013-14. Based on its review and discussion of the budget, the CTBID Board directed staff to bring back the contract for approval and to include funding for the contract in the CTBID's 2013-14 budget. Following discussion, if the Board would like VisitCarisbad to provide promotional and tourism marketing services for 2013-14 as outlined in the contract, the CTBID Board should adopt the resolution attached at Exhibit 1. FISCAL IMPACT: For the fiscal year 2013-14, projected revenues for the CTBID are estimated at $925,000. The total payment for this contract for this twelve-month period is $750,000. ENVIRONMENTAL IMPACT: This action does not qualify as a project under the California Environment Quality Act ("CEQA") and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b). EXHIBITS: 1. Resolution No. 2013-4 authorizing the Chairperson to enter into agreement between the CTBID and the CCVB for tourism promotion services for the period July 1, 2013 through June 30, 2014. 1A. Agreement for promotion of tourism and visitor services Carisbad Convention and Visitors Bureau. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, chervl.qerhardt@carisbadca.aov EXHIBIT 1 1 RESOLUTION NO. 2013-4 2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT, AUTHORIZING THE CHAIRPERSON TO EXECUTE AGREEMENT WITH THE CARLSBAD CONVENTION AND VISITORS BUREAU (CCVB) DOING 5 BUSINESS AS VISITCARLSBAD 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 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 j3 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 Board of Directors of the CTBID has determined that it is in the best 18 interest of the District to promote tourism and provide services to visitors to the City of Carlsbad 19 through the use of agencies that currently exist in the community to provide these services; and 20 WHEREAS, the Board of Directors has determined that the Carlsbad Convention and 21 Visitors Bureau (CCVB) possesses the necessary skills to provide services related to the 22 promotion of tourism; and 23 WHEREAS, the CCVB has agreed that its Board of Directors will not be changed 24 without approval of the CTBID Board during the term of the contract; and 25 WHEREAS, the CCVB has agreed to provide tourism services under the terms and 26 conditions of the agreement attached hereto for the term July 1, 2013 through June 30, 2014, 27 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad 2g Tourism Business Improvement District, as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 28 1. That the above recitations are true and correct. 2. That subject to review and approval of the CTBID General Counsel, the Chairperson is hereby authorized to execute the attached agreement. Exhibit 1 A, between the CTBID and the CCVB to provide professional services related to tourism promotion. 3. That the CTBID Board understands that the current seven directors of the CCVB Board are: George Allen, Sheraton Carlsbad Resort & Spa Regie Brown, Hilton Garden Inn, Carlsbad Beach Kristine Bane, West Inn & Suites Peter Kock, LEGOLAND California Denise Chapman, La Costa Resort & Spa Kimberly Foo, Hilton Homewood Suites Jason McLauglin, Park Hyatt Aviara The CCVB has agreed that the Board of Directors will not be changed without approval of the CTBID Board during the term of the contract. PASSED, APPROVED AND ADOPTED at a regular meeting ofthe Board of Directors th of the Carlsbad Tourism Business Improvement District of the City of Carlsbad held on the 15 day of May 2013 by the following vote to wit: AYES: NOES: ABSENT: 9 10 11 12 13 14 15 16 17 i: 19 20 21 22 23 24 25 26 27 28 ATTEST: NGLfeS0M,tityCler7^ EXHIBIT 1A AGREEMENT FOR PROMOTION OF TOURISM AND VISITOR SERVICES CARLSBAD CONVENTION AND VISITORS BUREAU "HIS AGREEMENT is made and entered into as of the /7 ^ day of UyjuJ^ , 20_/3, by and between the Carisbad Tourism Business Imprql^ement District (CTBID), and the Carisbad Convention and Visitors Bureau, a non-profit, private organization ("Contractor"). RECITALS A. CTBID requires the professional services of a contractor that is experienced in tourism and visitor promotion programs and services. B. Contractor has the necessary experience in providing professional services and advice related to the promotion of tourism in Carisbad. C. Selection of Contractor is expected to achieve the desired results in an expedited fashion. D. Contractor has submitted a proposal to CTBID and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CTBID and Contractor agree as follows: 1. SCOPE OF WORK CTBID retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of one (1) year from the date July 1, 2013 through June 30, 2014. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. CTBID Attorney Approved Version #05.06.08 5. COMPENSATION The total not to exceed fee payable for the Services to be performed during the initial Agreement term will be Seven Hundred Fifty Thousand dollars ($750,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The CTBID reserves the right to withhold a ten percent (10%) retention until CTBID has accepted the work and/or Services specified in Exhibit "A". Compensation will be made in twelve (12) monthly installments of Sixty Two Thousand Five Hundred dollars ($62,500) each month for a total of $750,000 as detailed in the attached Exhibit A to this Agreement. The first installment shall be payable in the first full week of July 2013. Subsequent installments shall be paid in the first full week of each month, through the term of this Agreement. Adjustments to pay dates may be necessary due to the cash balance in the fund. The CTBID reserves the right to terminate or reduce funding levels outlined in the Agreement in the event of CTBID revenue reductions. Recommended deductions will be reported to the CTBID Board who shall determine the modified funding level. 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of CTBID. Contractor will be under control of CTBID only as to the result to be accomplished, but will consult with CTBID as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of CTBID for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. CTBID will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. CTBID will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify CTBID within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which CTBID may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the CTBID's election, CTBID may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of CTBID. If Contractor subcontracts any of the Services, Contractor will be fully responsible to CTBID for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing CTBID Attorney Approved Version #05.06.08 contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and CTBID. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by CTBID. 8. OTHER CONTRACTORS The CTBID reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the CTBID and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense CTBID incurs or makes to or on behalf of an injured employee under the CTBID's self- administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or eariy termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:Vir'. OR with a surplus line insurer on the State of California's List of Eligible Surplus Line Insurers (LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X". 10.1 Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless CTBID Attorney or CTBID Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. CTBID, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. CTBID Attorney Approved Version #05.06.08 10.1.1 Commercial General Liabilitv Insurance. $1.000.000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liabilitv (if the use of an automobile is involved for Contractor's work for CTBID). $1,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liabilitv. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to CTBID's satisfaction, a declaration stating this. 10.1.4 Professional Liability. Errors and omissions liability appropriate to Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work. 10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The CTBID will be named as an additional insured on General Liability. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to CTBID sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to CTBID's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to CTBID. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then CTBID will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by CTBID to obtain or maintain insurance and CTBID may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. CTBID Attorney Approved Version #05.06.08 10.5 Submission of Insurance Policies. CTBID reserves the right to require, at anytime, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carisbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of CTBID during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of ail work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of CTBID. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to CTBID. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the sen/ices will be vested in CTBID and Contractor relinquishes all claims to the copyrights in favor of CTBID. 15. NOTICES The name of the persons who are authorized to give written notices or to receive written notice on behalf of CTBID and on behalf of Contractor under this Agreement. For CTBID: For Contractor: Cheryl Gerhardt Sam Ross CTBID Staff Executive Director City of Carlsbad VisitCarisbad 1635 Faraday Ave. 400 Carisbad Village Drive Carisbad, CA 92008 Carisbad, CA 92008 Phone No. 760-602-2753 Phone No. 760-434-6093 CTBID Attorney Approved Version #05.06.08 Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. RESERVED 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants that the services required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or CTBID will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be fonA/arded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be fonA/arded to the CTBID Board. The CTBID Board will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the CTBID Board will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. CTBID Attorney Approved Version #05.06.08 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, CTBID may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If CTBID decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, CTBID may terminate this Agreement upon written notice to Contractor. Upon notification of termination. Contractor has five (5) business days to deliver any documents owned by CTBID and all work in progress to CTBID address contained in this Agreement. CTBID will make a determination of fact based upon the work product delivered to CTBID and of the percentage of work that Contractor has performed which is usable and of worth to CTBID in having the Agreement completed. Based upon that finding CTBID will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of CTBID, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to CTBID. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. CTBID will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, CTBID will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or othenA/ise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to CTBID must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to CTBID, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that California Government Code sections 12650 et seg.. the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If CTBID seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment CTBID Attorney Approved Version #05.06.08 proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for CTBID to terminate this Agreement. 23. JURISDICTIONS AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. This Agreement shall be interpreted pursuant to the laws of the State of California. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon CTBID and Contractor and their respective successors. Neither this Agreement or any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of CTBID, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. /// /// CTBID Attorney Approved Version #05.06.08 8 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CONTRACTOR (sign here) (print name/tftle) cur Carisbad Tourism Business Improvement District ATTEST: ill address) ) (print name/title) Sherry Freisinger Clerk of CTBID (e-mail address) If required by CTBID, proper notarial acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each of the following two groups. *Group A. Chairman, President, or Vice-President **Group B. Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: , General Counsel to CTBID Assistant General Counsel CTBID Attorney Approved Version #05.06.08 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 State of California 1 County of. On 12 before me, §L^<pv A- ffiUSins^ K^Wy^lfei^o. Date ~ ^ . Here Insert Ngme *»*Title o/the Officer | personally appeared OAoLpman 4 "Ty^oA^^-g r^^^/i'C / Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)/iS/are subscribed to the within instrument and acknowledged to me that h07sj;>e/they executed the same in hjg/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true apid correct. WITNESS my he Official $eal./ Place Notary Seal Above Signature OPTIONAL Signature of Notary Public Though the information below is not required by law, it may prove valuabt^ld persons relying on the dot and could prevent fraudulent removal and reattachnient of this form to another document Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: • Corporate Officer — Title(s): • Individual • Partner — • Limited • General • Attorney in Fact • Trustee • Guardian or Conservator • Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer's Name: • Corporate Officer — Title(s): • Individual • Partner — • Limited • General • Attorney in Fact • Trustee • Guardian or Conservator • Other: RIGHT THUMBPRINT OF SIGNER Top of thumb here I 2010 National Notary Association • NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 EXHIBIT A Scope of Services 1. VisitCarlsbad' Board appointments and reappointments will be approved by the CTBID Board. 2. Provide periodic updates at the CTBID's request and a year-end report on the program of work deliverables which shall include an accounting of funds spent by the program in a format approved by the CTBID Board. Develop measurability indicators to report on performance of program. Allocation ofthe unspent funds shall be determined by the CTBID Board. 3. Review CTBID grant applications and make funding recommendations to the CTBID Board. 4. Develop a program of work that is primarily focused on driving demand in the leisure market segment. The Visit Carlsbad Board will approve and oversee the program of work and corresponding budget allocations which are included at the end of the scope. 5. Prioritize and develop market intelligence on the leisure travel segment. Extract Carlsbad visitor information from San Diego Tourism Authority visitor profile study. Expand Smith Travel Research subscription to include key competitive markets. 6. Primarily focus on VisitCarlsbad.com as the primary distribution channel for new business opportunities for those CTBID properties'' and Carlsbad tourism suppliers. a. Partner with local tourism suppliers to develop new products or packages consistent with the current market demand for special offers. b. Develop visitor-relevant content. c. Grow space on VisitCarlsbad website group section adding group email opt-in. d. Develop and add mobile applications to website. EXHIBIT A 7. Deliver an interactive marketing campaigns focused on driving traffic to visitcarlsbad.com and hotel reservations. Promotional campaigns will include but not be limited to pay-per-click advertising, on-line display advertising, content development, social media, promotions, and email marketing. A Request for Proposal is to be done after summer to ensure that Visit Carlsbad is getting the best value for delivering this program. 8. Pitch editorial ideas to travel writers and online blogging communities and write relevant content for the website, including: a. Pitch story ideas, what's new, and host travel writers. b. Coordinate media FAMs in partnership with SDTA, CTBID properties, and local tourism suppliers. 9. Manage the visitor center, visitor publications and collateral, including: a. Service visitor walk-ins with local/regional tourism information, b. Collect geographical data from walk-in visitors, c. Refer visitors to local tourism suppliers, d. Manage visitor publications distribution and other collateral, e. Produce print advertising for inclusion on state and local DM0 program, 10. Develop partnerships and co-op opportunities with CTBID properties, local tourism suppliers, and regional DMOs, such as Visit Oceanside, SDTA, and CTTC. 11. Manage outside public relations firm to work on "branding Carlsbad". ' VisitCarlsbad is the dba to be used by the Carlsbad Convention and Visitors Bureau effective June 2009. " CTBID properties are the hotels and timeshare assessed by the CTBID. FY14 VISIT CARLSBAD BUDGET EXHIBIT A % Variance FY13 Budget FY13 YTD Budget (F) (A) ^ Variance FY14 Budget FY13 to FY14 INCOME Public Sources CTBID Revenues 800,000 666,670 # (133,330) 750,000 1 -7% Total Public Sources 800,000 666,670 (133,330) 750,000 -7% TOTAL INCOME 800,000 666,670 (133,330) 750,000 -7% EXPENSE Labor Salaries 201,337 177,835 (23,502) 205,864 4 2% Payroll Taxes 16,556 14,273 (2,283) 17,000 3% Works Comp 3,800 1,433 (2,367) 4,000 5% Benefits 22,500 18,506 (3,994) 22,328 -1% Total Labor 244,193 212,047 (32,146) 249,192 2.0% Promotional Programs Advertising & Production 22,700 34,080 11,380 5,000 -354% Research 2,800 4,350 1,550 5,000 44% Outside Services-Interactive Marketing 335,000 272,250 (62,750) 371,000 10% Outside Services-Group Direct Sales 48,000 48,000 0 -2 -100% Outside Services-Public Relations 70,000 50,533 (19,468) 70,000 0% Public Relations Events 0 0 4,000 3 100% Travel & Entertainment 10,000 12,951 2,951 10,000 0% Dues & Subscription 10,000 3,571 (6,429) 1,500 -567% Collateral Production & Fulfillment 28,000 13,341 (14,659) 5,000 -460% Total Promotional Programs 526,500 439,076 (87,424) 471,500 -12% Bulk Mail 0 -- General Administration 30 Bank Charges 1,157 224 (933) 1,000 -16% Equipment Rental & Maintenance 3,000 2,299 (701) 3,000 0% Facility Repair & Maintenance 150 89 (62) 150 0% Insurance 2,400 806 (1,594) 2,400 0% Office Supplies 3,000 1,889 (1,111) 3,000 0% Postage 2,000 1,654 (111) 2,000 0% Taxes 150 563 1,504 150 0% Telephone 6,000 4,796 (5,437) 6,000 0% Professional Services 5,600 4,800 (804) 5,600 0% Volunteer Program 1,000 651 3,800 1,000 0% Miscellaneous 150 527 501 300 50% Utilities 3,700 1,986 (3,173) 3,700 0% Computer Expense 1,000 1,577 986 1,008 1% Total G&A 29,307 21,890 (27,730) 29,308 0% TOTAL EXPENSE 800,000 673,013 750,000 -6.7% OVER/(UNDER) 0 6,343 (0) FOOTNOTES 1 Budget reduced by S50k for FY2014 2 The majority ofthe budget cut will come from Group Direct 3 Add PR Events line item to cover PR Event costs 4 2% COLA 5 FY13 (A) is YTD up to May 2013 4/10/2013 FY14 -- PROGRAM OF WORK VISIT CARLSBAD Timing Strategy and Tactics Q1 Q2 Q3 Q4 Budget Comments Prioritize and develop market intelligence on the leisure travel segment Extract Carlsbad visitor information from SDCVB Visitor Profile Study STR subscription to include key competitive markets Manage Interactive agency Program of Work Including pay-per-click advertising, display advertising, email Manage Public Relations Program of Work Including hosting travel writers, lead generation, fielding broadcast Develop partnerships and coop advertising opportunities Produce print/digital advertising for inclusion of local suppliers Manage visitor publications and fulfillment Visitor center maps Review CTBID Grant Applications and make funding recommendations Earn unpaid media exposure through public relations Pitch story ideas, whats new, host travel writers Coordinate media FAMs with PR agency V V V V V V V V V V V V V V V V V V V V V V 5,000 STR Report 371,000 Digital Advertising Agency 70,000 Public Relations Agency 5,000 5,000 4,000 Visit CA Media Events Travel & Entertainment Partnerships & subscriptions with regional/national tourism orgs. Regional DM0 memberships V V V V V V V V 10,000 1.500 TOTAL PROMOTIONAL PROGRAM OF WORK 471,500 April 12, 2013 REV: May 8, 2013