HomeMy WebLinkAbout2008-05-07; Carlsbad Tourism Business Improvement District; MinutesCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT
(CTBID) BOARD
MINUTES
May 7, 2008
3:15 p.m.
1635 Faraday Avenue, Room 173A
Carlsbad, CA
/. CALL TO ORDER: 3:17 p.m.
Chair April Shute called the meeting to order at 3:17 p.m.
//. ROLL CALL:
The Chair took roll call and five Directors were present. Director Howard-Jones
was absent. Mr. Paul Edmonson served as General Counsel for Mr. Ron Ball.
///. (C) APPROVE MINUTES OF MARCH 18. 2008 MEETING
Mr. Cima made a motion, seconded by Mr. Canepa, to approve the minutes of
the March 18, 2008 meeting. Motion carried.
IV. STAFF REPORT
1) Financial Report
Mrs. Gerhardt presented a staff report to update the Board members on financial
activity that has transpired since the previous meeting. (The PowerPoint slide
presentation is attached to these minutes.) Assessment revenue collected by
the hotels in March and remitted to the City in April was $74,861. This higher
amount reflects CTBID tax paid by the new properties that recently opened.
Occupancy rate was 62%. Comparing last year to this year, revenue was 7%
higher than the prior year that is partly due to the new properties.
Mrs. Gerhardt reported that actual revenues as of April 30, 2008 were $687,868.
Total expenditures were $557,952.
Financial Highlights include:
+ CTBID Revenue last 12 months = $777,000
* March 2008 CTBID revenue 13% increase over March 2007
+ 373 new rooms added since January 2008 (12% increase)
4 Average occupancy rate is 65% for hotels
+ Average timeshare CTBID revenue is $3,400 per month
+ Current year contingency = $70,000
CTBID Board Meeting Minutes
May 7, 2008
Page 2
« Unbudgeted reserves = $261,000
* Total number of hotel rooms = 3,514
2) TOT form
Mrs. Gerhardt provided a follow-up report from the last meeting where it was
mentioned that in the past the TOT form had a space whereby tax exempt
occupancy dollars could be listed. Mrs. Gerhardt was told that there was never
a space on the form. Some hotels choose to show it, however. They do
currently have a place on the form to show available rooms for the month that
can be used to calculate occupancy but it is not consistently completed by all the
hotels. When the hotels submit their forms, they might include exempt rooms
that are still available but not paid for. There is no simple way to get the
information, and if everyone does not submit it, we cannot accurately calculate
occupancy for the city.
3) Grant Program
Mrs. Gerhardt reported that Lynn Flanagan from In Motion requested a grant
application. All applications are due to the City office by 5:00 p.m. on June 2,
2008. Grant applications can be reviewed by the Board in June/July 2008 and
grant recipients may be announced in July 2008.
V. AB05-08-28 ADOPT 2008-09 ANNUAL REPORT AND BUDGET
Mrs. Gerhardt stated that Mr. Stripe and Mr. Canepa served on the budget
subcommittee and prepared the budget for the Board members to review and
approve today.
Mr. Cima made a motion, seconded by Mr. Becerra, to adopt Resolution #2008-
3 recommending approval of the 2008-09 CTBID Annual Report and Budget.
Mrs. Gerhardt informed the Board that the CTBID Budget will be presented for
approval to the City Council at its June 24, 2008 meeting.
VI. AB05-08-29 EXTEND AGREEMENTS WITH CARLSBAD CONVENTION
AND VISITORS BUREAU AND SAN DIEGO NORTH CONVENTION AND
VISITORS BUREAU
A lengthy discussion was held regarding whether or not to renew the Bureau
contracts for an entire year or for a shorter period of time. Mr. Cima explained
that once the final report is presented by Reint Reinders and Associates, the
Board may wish to pursue a different direction. Mr. Edmonson explained that
the current agreement extension can be approved as written or modified by staff
to reflect direction from the Board as to additional terms and alternative options.
Then each of the Bureaus can decide whether or not they wish to accept the
CTBID Board Meeting Minutes
May 7, 2008
PageS
proposed amendment to their respective agreement. If they do not accept the
proposed amendment, their respective agreement would terminate on its own
accord.
Mr. Canepa stated he does not wish to presume anything from the Reint
Reinders and Associates report and suggested extending each of the Bureaus
current agreement for another year. Chair Shute and Mr. Becerra concurred
with Mr. Canepa's comments.
Mr. Stripe made a motion, seconded by Mr. Cima, to adopt Resolution #2004-4
extending the agreements with CCVB and SDNCVB effective July 1, 2008
through June 30, 2009.
VII. DISCUSSION ITEMS
1) Update by Reint Reinders and Associates regarding progress of
stakeholder interviews and findings to date.
A) Mr. Reint Reinders updated the Board members on the work that was done
by Mr. Reinders and Mr. Brudney in the month of April. They met with the
CTBID Board members. He thanked everyone for their time. They have
reviewed previous Carlsbad materials relative to marketing, visioning, and
branding plans.
Over twenty-five confidential one-on-one interviews have been conducted with
other hoteliers and other community people including GIA, the Carlsbad
Chamber of Commerce and Legoland.
Extensive research has begun on what other people are doing in similar cities in
California, i.e. their TOT and how they spend it, and involvement with the local
city government, what part of their budget is identified for tourism, and whether
or not they have a BID.
Conversations have been held with the Travel Industry of America and
Destination Marketing International. They shared information regarding what
they have done and what makes a convention and visitors bureau a powerful
organization. Mr. Reinders stated the market is changing on how business is
conducted.
B) In the month of May and into June many more individual and group interviews
will be conducted, including meetings with the Mayor and City Council members
and key City officials. They will also speak with The Wright Group and
Destination Analysts who conducted the positioning study last year.
CTBID Board Meeting Minutes
May 7, 2008
Page 4
Mr. Reinders and Mr. Brudney meet weekly to discuss the activities for the
current week and form their opinions and recommendations. The people they
have met with are very passionate about Carlsbad.
C) Mr. Reinders shared highlights of what they have learned to date:
+ There is mixed stakeholder feedback on the value received from the two
Bureaus; they were ranked from 1 to 5 and the ratings were all over the board.
4 There is strong support for the CCVB west of I-5 along the coast.
+ There is more support of SDNCVB from the larger properties who have group
business.
* More money is needed to promote Carlsbad for whatever organization or
organizations are engaged to promote tourism. Results must be detailed and
return on investment is expected.
+ Need strong competitive 21st Century organization that drives the brand of
Carlsbad and is based in Carlsbad.
* They are looking forward to talking to the City officials who can be of great
assistance in outlining that tourism is an important part of the budget each year,
and that it can continue to grow and be a very important part of what is good for
the citizens and visitors.
+ Recommend a SWOT test of Carlsbad be created to analyze the quality of
dining, shopping and entertainment.
+ The visitor element is an important piece and makes a huge impact.
4 Leverage the wonderful attractions already here, i.e. Legoland. Mr. Reinders
wishes to assist Carlsbad in getting a higher leverage of visibility as a brand.
Everyone needs to be a proponent to take Carlsbad to the next level.
VIII. NEXT MEETING
The next regular meeting was scheduled for Tuesday, August 26, from 3:00 p.m.
to 5:00 p.m. at 1635 Faraday Avenue, Room 173A.
Agenda items to include:
1. Reint Reinders & Associates Final Report
2. Review and choose Grant application(s) award recipients
PUBLIC COMMENT
Mr. Kurt Burkhart, Executive Director of the Carlsbad Convention and Visitors
Bureau, thanked the Board members for extending the agreement for another
year. He stated that an invitation is in the mail to celebrate National Tourism
Week on Wednesday, May 14, from 5:00-7:00 p.m. at West Inn & Suites. Hors
d'oeuvres and champagne will be served poolside for your enjoyment. The new
Visitors Guide was recently mailed and production increased from 50,000 two
CTBID Board Meeting Minutes
May 7, 2008
PageS
years ago to 75,000 last year and now to 80,000 this year. Advertising
increased to fifty-five advertisers. He thanked the Board members for their
support.
ADJOURNMENT
Mr. Stripe made a motion, seconded by Mr. Becerra, to adjourn the meeting. Chair
Shute adjourned the meeting at 4:04 p.m.
Respectfully submitted,.
Sheryl Keller
Recording Secretary
Business Improvement
District
Financial Update
Prepared by: Cheryl Gerhardt
May 7, 2008
CTBID Assessment Revenue
12 month period
'"A-
Month revenue remitted • Hotel • Timeshare Ave occupancy rate 62%
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
CTBID Assessment Revenue
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Montlfi revenue remitted 2006 D 2007 • 2008 Ave occupancy rate 62%
2D07-08 Budget to Actua
Program Areas Budget Actual
30-Apr-08 Difference
Revenues:
CTBID Assessment
Interest Earnings
Total Estimated Revenues
Expenditures:
2% Administrative Fee
C( MB Contract
SI )NCVB Contract
Staff support
Positioning Study
RR&A Marketing Study
Contingency
Total Expenses
-City
775,000
5,000
780,000
15,500
448,800
110,000
15,000
61,000
80,000
70,000
800,300
675,759
12,108
687,868
11,653
374,000
91,667
9,714
58,518
12,400
0
557,952
99,241
(7,108)
92,133
3,847
74,800
18,333
5,286
2,482
67,600
70,000
242,348
FT
Pr
1 U ZUU/ VS ZUUO
39 ram Areas
Revenues:
CTBII
Mere
Total E
Exoenc
2%/
CCVB
SDNC
Staff
Positi'
RR&A
Total E
) Assessment
st Earnings
stimated Revenues
itures:
idmin. Fee - City
Contract
VB Contract
support
>ning Study
Marketing Study
xpenses
Actual
30-Apr-07
634,629
7,526
642,154
11,122
306,000
74,999
11,246
0
0
403,367
Actual
30-Apr-08
675,760
12,108
687,868
11,653
374,000
91,667
9,714
58,518
12,400
557,952
$
Difference
41,131
4,582
45,714
532
68,000
16,668
(1,532)
58,518
12,400
154,585
%
Difference
6.5
60.9
7.1
4.8
22.2
22.2
(13.6)
100
100
38.0
Financial Highlights
GTBID Revenue last 12 months $777,000
March 2008 CTBID revenue 13% increase over
March 2007
373 new rooms added since 1/08 (12% increase)
ccupancy rate for March 65%
verage timeshare CTBID revenue $3/400/mo
urrent year contingency $70,000
IJJnbudgeted reserves $261,000
Total number of hotel rooms 3,514
CTBID Grant Program
Grant Application Timetable*
• April 1, 2008
• June 2, 2008
• June/July 2008
• July 2008
Grant guidelines available
Grant applications due
to City office by 5 p.m.
Grant applications
reviewed by subcommittee
Grant recipients announced
*The Board will have another application period midway through the
year in December. The due date of the application will be
announced at least 2 months prior to its due date.
2008-09 CTBID Budget (as recommended by the Budget subcommittee)
Program Areas
Carryover Fund Balance
Revenues:
CTBID Assessment
Interest Earnings
Total Estimated Revenues
Expenditures:
2% Admin. Fee - City
CCVB Payment
SDNCVB Payment
Positioning Study*
RR&A Contract**
Staff support
CTBID Grants
Contingency
Total Expenses
Ending Fund Balance
Description
Projected at same level as 2007-08
2% of CTBID assessment revenue, for collection of
CTBID assessment and accounting for CTBID
$37,400/month, to operate visitor center, market and
promote Carlsbad
$9,167/month, to provide group sales
Marketing Study Phase I
Staff support to the CTBID
Approved by Board at 3/18 meeting
To be determined by the CTBID Board at a later date
Contingency for Revenue shortfall
2007-08
Budget
$261,000
775,000
5,000
780,000
15,500
448,800
110,000
61,000
80,000
15,000
70,000
800,300
$240,700
Current
2007-08 Actuals
606,255
12,107
618,362
11,654
374,000
91,667
58,518
0
8,725
0
544,564
Projected
2007-08 Actuals
261,000
775,000
16,000
791,000
15,500
448,000
110,000
58,518
80,000
15,000
0
727,018
324,982
Recommended
2008-09 Budget
324,982
775,000
10,000
785,000
16,500
448,000
110,000
0
16,500
40,000
250,000
881,000
228,982
Project completed in 2007-08
* Budgeted in 2007-08 although some costs will occur in 2008-09 (budget will carry over)