HomeMy WebLinkAbout2014-10-15; Carlsbad Tourism Business Improvement District; 10-14-108; VisitCarlsbad FY 2013-14 Year End ReportCARLSBAD TOURISM
BUSINESS IMPROVEMENT DISTRICT
AGENDA BILL
AB# 10-14-108
VisitCarlsbad
FY 2013-14 Year End Report with
Option to Amend Existing Contract or
Adjust FY 2014-15 Budget to Offset
FY 2013-14 Budget Shortage
CTBID STAFF (
MTG. 10-15-14 VisitCarlsbad
FY 2013-14 Year End Report with
Option to Amend Existing Contract or
Adjust FY 2014-15 Budget to Offset
FY 2013-14 Budget Shortage
GENERAL
COUNSEL
VisitCarlsbad
FY 2013-14 Year End Report with
Option to Amend Existing Contract or
Adjust FY 2014-15 Budget to Offset
FY 2013-14 Budget Shortage
RECOMMENDED ACTION:
Adopt Resolution 2014-4 authorizing and approving Amendment No. 1 to the Carisbad
Convention and Visitors Bureau ("VisitCarisbad") FY 2013-14 contract and appropriate $11,018 in
additional funds from Contingencies to Miscellaneous Professional Services to cover
VisitCarisbad's FY 2013-14 shortages.
ITEM EXPLANATION:
The CTBID contracted with Carisbad Convention and Visitors Bureau ("VisitCarisbad") to provide
various tourism services (see contract. Exhibit 2). The contract requires VisitCarisbad "To 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 program in a format approved by the CTBID
Board. Allocation of the unspent funds shall be determined by the CTBID Board." Attached is the
year-end report for the fiscal year ending June 30,2014 (Exhibit 2).
The FY 2013-14 Profit and Loss for VisitCarisbad submitted with the year-end report shows that
VisitCarisbad's budget was overspent by $11,018. The overspent funds will result in a cash flow
shortage for VisitCarisbad in FY 2014-15, unless the CTBID Board appropriates additional funds
to cover these FY 2013-14 incurred expenses. Since the overage was not reported to the CTBID
Board until FY 2014-15, the CTBID Board may also choose to reduce VisitCarisbad's FY 2014-15
budget by $11,018; effectively reducing the amount VisitCarisbad has to spend in the current
fiscal year. Staff is requesting the CTBID Board to consider both the options below and choose
one:
Option 1: Adopt resolution amending prior year VisitCarisbad contract and appropriating an
additionai $11,018 from Contingencies to Miscellaneous Professional Services to cover
VisitCarisbad's FY 2013-14 budget shortage as a result of FY 2013-14 incurred expenses.
Option 2: Consider the $11,018 as VisitCarisbad FY 2014-15 expenses; which will reduce the
amount VisitCarisbad has to spend in FY 2014-15.
FISCAL IMPACT:
The CTBID FY 2014-15 Budget has a $150,000 Contingency fund, which can be used to
appropriate additional funds for FY 2013-14 VisitCarisbad additional expenses.
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(b).
EXHIBITS:
1. Resolution 2014-4 directing staff to amend the VisitCarisbad and appropriate additional funds
in FY 2014-15 to pay for FY2013-14 incurred expenses.
2. VisitCarisbad FY 2013-14 Profit and Loss
3. VisitCarisbad contract dated June 17, 2013.
DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2753, cheryl.gerhardt(@carisbadca.gov
q
EXHIBIT 1
1 RESOLUTION NO. 2014-4
2 RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT,
AUTHORIZING THE CHAIRPERSON TO EXECUTE
AMENDMENT NO. 1 TO THE AGREEMENT WITH THE
CARLSBAD CONVENTION AND VISITORS BUREAU DOING
BUSINESS AS VISITCARLSBAD
5 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
g the Carlsbad Tourism Business Improvement District (CTBID); and
9 WHEREAS, the primary purpose of the CTBID is to promote tourism and provide
IQ 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
12 Board of Directors of the CTBID, subject to the control of federal, state and local laws goveming
j4 the activities of a Business Improvement District; and
2 5 WHEREAS, the City Council has provided the Board of Directors with the ability to
15 contract for services necessary to carry out the purpose of the CTBID; and
WHEREAS, the Board of Directors of the CTBID entered into an agreement on June 17,
J g 2013 with the Carlsbad Convention and Visitors Bureau, a non-profit corporation doing business
19 as VisitCarlsbad to promote tourism and provide services to visitors for FY 2013-14; and
20 WHEREAS, VisitCarlsbad exceeded its FY 2013-14 annual budget by $11,018; and
2\ WHEREAS, Carlsbad Convention and Visitor Bureau and the Board of Directors of the
22 CTBID have negotiated and agreed to a supplemental scope of work and fee schedule as shown
23 in Exhibit IA to the accompanying Agenda Bill No. 10-14-108; and
24 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad
25 Tourism Business Improvement District, as follows:
25 I. That the above recitations are true and correct.
27 2. That subject to review and approval of Amendment No. 1 by the CTBID General
2g Counsel, the Chairperson is hereby authorized to execute Amendment No. 1 to the
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
Agreement between CTBID and Carlsbad Convention and Visitors Bureau to
provide professional services related to tourism promotion.
3. That $ 11,018 be appropriated from CTBID Contingencies to Miscellaneous
Professional Services and dispersed to Carlsbad Convention and Visitors Bureau for
FY 2013-14 incurred expenses.
PASSED, APPROVED, AND ADOPTED at a regular meeting ofthe Board of
Directors of the Carlsbad Tourism Business Improvement District on the IS day of
QoroQ^fL. 2014, by the following vote to wit:
AYES: Board Members Stripe, Nayudu, Akers, Becerra, Allen, Magor.
NOES: None.
ABSENT: Board Member Canepa.
TIM STRIPE
Chair
ATTEST:
BARBARA ENGllJESON
Clerk ofthe
Carlsbad Tourism Business Improvement District
-2-
10
EXHIBIT lA
AMENDMENT NO. 1 TO AGREEMENT WITH CARLSBAD CONVENTION AND VISITORS
BUREAU FOR PROMOTION OF TOURISM AND VISITOR SERVICES
This Amendment No. 1 is entered into and effective as of the day of
, 2014, amending the agreement dated June 17, 2013 (the
"Agreement") by and between the Carisbad Tourism Business Improvement District (CTBID),
and Carisbad Convention and Visitors Bureau doing business as VisitCarisbad ("Contractor")
(collectively the "Parties") for tourism and visitor promotion programs and services.
RECITALS
A. On June 17, 2013, the Parties executed the original Agreement for professional
services relating to the promotion of tourism in Carisbad for the period of July 1, 2013 through
June 30, 2014; and
B. Contractor submitted fiscal 2013-14 year-end report to CTBID which indicated
that VisitCarisbad exceeded the FY 2013-14 contract amount by $11,018; and
C. The Parties desire to alter the Agreement's scope of work to and fee schedule,
which is attached to and incorporated by this reference as Exhibit "A", Scope of Services and
Fee.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, CTBID and Contractor agree as follows:
1. In addition to those services contained in the Agreement, as may have been
amended from time to time. Contractor will provide those additional services described in Exhibit
"A".
2. City will pay Contractor for all work associated with those services described in
Exhibit "A" in an amount not-to-exceed Eleven Thousand Eighteen dollars ($11,018).
3. Contractor completed all work described in the attached Exhibit "A" by June 30,
2014.
4. Ail other provisions of the Agreement, as may have been amended from time to
time, will remain in full force and effect.
5. All requisite insurance policies to be maintained by Contractor pursuant to the
Agreement, as may have been amended from time to time, will include coverage for this
Amendment.
6. The individuals executing this Amendment 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 Amendment,
City Attomey Approved Version 1/30/13
t i
CONTRACTOR CITY OF CARLSBAD, a municipal
corporation of the State of California
By: By:
(sign here) Tim Stripe, CTBID Chairperson
Sam Ross, Executive Director
By:
ATTEST:
(sign here) BARBARA ENGLESON
Pro Tem Clerk ofthe CTBID
(print name/title)
If required by City, proper notarial acknowledgment of execution by Contractor must be
attached. If a corporation, Agreement must be signed by one corporate ofllcer 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:
CELIA A. BREWER, General Counsel
BY:
Assistant General Counsel
City Attomey Approved Version 1/30/13
EXHIBT "A"
SCOPE OF SERVICES AND FEE
Not to Exceed Budget $11.018
Advertising
• Radio spot advertising for Kia Classic
• Print advertising in Golf Guide
• Print advertising Camp Pendleton Guide
• Certified Folder Display golf brochure
Online
• Spring Break advertising Family travel online
City Attorney Approved Version # 05.22.01
Visit Carisbad
Profit & Loss Report
Fiscal Year 2013-14
EXHIBIT 2 {/ys/T
CdrlSiDdO!
Final Budget Actuals Variance
FY 2013-14 FY 2013-14 over/(under)
Car/y Over from FY2013 $ 14,914 $ 14,914
INCOME
701 CTBID Revenues 750,000 750,000 -
706 Retail Sales 149 149
TOTAL INCOME AND SOURCES 764,914 765,063 149
EXPENSES
Labor
Salaries 205,864 199,047 (6,817)
Employee Benefits 22,328 24,147 1,819
Workers Comp 4.000 2,110 (1,890)
Payroll Tax Expense (SUI, FUTA) 17,000 15,895 (1,105)
Total Labor 249,192 241,199 (7,993)
Promotional Programs
Advertising & Production 5,000 12,523 7,523
Research 5,000 7,458 2,458
Outside Services - Interactive Marketing 371,000 376,352 5,352
Outside Services - Group Direct Services 14,914 10,000 (4,914)
Outside Services - Public Relations Services 70.000 63,684 (6,316)
Travel & Entertainment 10.000 15,786 5,786
Dues & Subscriptions 1.500 12.620 11,120
Collateral Prod. & Fulfillment 5,000 2,990 (2,010)
Public Relations Services 4,000 6,631 2,631
Total Promotional Programs 486,414 508,045 21,631
General Administration
Bank Service Charges 1.000 407 (593)
Equipment Rental & Replacement 3,000 3,318 318
Facility Repairs & Maintenance 150 69 (81)
General Liabilty Insurance 2,400 1,151 (1.249)
Grounds Maintenance 2,262 2,262
Office Supplies 3,000 1,744 (1,256)
Postage 2.000 449 (1,561)
Taxes - General 150 184 34
Telephone 6,000 5,378 (622)
Professional Services 5.600 5,600 -
Volunteer Program 1,000 491 (509)
1 Miscellaneous Expenses 300 1 478 178
1 Utilities 3,700 ' 2,378 (1,322)
Computer Expense 1,008 2,780 1,772
Total General Administration 29,308 26,689 (2,619)
TOTAL EXPENSE 764,914 $ 11,018
OVER/UNDER
NOTES:
Budget includes $14,914 carryover from FY 2012-13 that was allocated by the CTBID Board to group marketing.
$11,018