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Home My WebLink About2021-04-14; Carlsbad Tourism Business Improvement District; 4-21-201; Tourism Marketing Services ProposalCARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT AGENDA BILL RECOMMENDED ACTION: Review Visit Carlsbad proposal and direct staff accordingly. ITEM EXPLANATION: Since the inception of the Carlsbad Tourism Business Improvement District (CTBID), the CTBID Board has contracted with Carlsbad Convention and Visitors Bureau 501C-6 corporation (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. The scope of those services has included operation of the visitor center, web site development and administration, print and Internet advertising, public relations, group sales and various other tourism marketing activities identified in the contract for that fiscal year. The Visit Carlsbad Board has developed the 2021-22 proposed budget and program of work presented at Exhibit 1, The CTBID Board should receive the report and discuss the proposal. Following the discussion, if the CTIBD Board would like to contract with Visit Carlsbad to provide these services for 2021-22, the CTBID Board should direct staff to bring back the contract for adoption at the next Board meeting. FISCAL IMPACT: For the fiscal year 2021-22, projected revenues for the CTBID are estimated at $3,600,000. The total payment for these proposed services for the twelve-month period range from $2,000,000 to $3,000,000. The CTBID has a fund balance of $617,000. ENVIRONMENTAL IMPACT : This action does not qualify as a project under the California Environment Quality Act ("CE") and will not have a physical adverse effect on the environment. (CEQA Regulation 15378(b). EXHIBITS: 1. Proposed budget and program of work for tourism promotion services from Visit Carlsbad for the period July 1, 2021 through June 30, 2022. DEPARTMENT CONTACT: Cheryl Gerhardt, 760-602-2468, cheryLeerhardt@carlsbadca.us Proposed DNIO % Chop, Reduced 2Mm btwn CTBID FY22 FY22 Budget Notes: 803,000 $800,000 95,000 $234,129 42,003 3,030 20,00 10.000 3310,129 5250,000 5.000 Ask Ibrcarlsbad DM0 $ Chng btwn FY21 anti FY22 Proposed 3N1M CTBID FY22 Budget Actual DMO FY21 Budget INCOME Public Sources CTBID Revenues ram INCOME EXPENSE LABOR Salaries Direct Labor NEW - President & CEO VP of Marketing & CommuniCationsl) NEW • Director of Public Relations Direct Labor. Total Employee Benefits Works Comp Payroll Taxes Staff Bonus Pool Total Labor PROMOTIONAL PROGRAMS Advertising & Production Winter/Spring Ad Campaign Fall Ad Campaign Golf Marketing Campaign Expedia SD Co-Op Campaigns Total Advertising Campaigns Destination Research Digital Marketing Public Relations Social Media Advertising Google PP/Display Content Creation Video Programing/Development Website Redesign Ad Agency Campaign/Creative Develop Remarketing Campaigns Mobile Visitor Center Experience Website Hosting PR Media FAM/Visits Digital Agency Fees Photo Shoot Total Outside Services Travel & Entertainment Dues & Subscription 3,000.000 2,200,CCO 275% 2,000,000 $3,000,000 2,2(10,000 275% $2,000,000 264,000 764,000 264,000 CEO base pay 522084 20% bonus structure 110,000 15,000 15.8% 110,000 Position change from Director to VP level 90,000 90,000 - New Role - bring PR in house, ornmited at 2M level budget $464,000 229,871 98.2% 5374,000 74,000 32,000 76.2% 53,000 10,000 6,000 150.0% 8,000 18,000 8.000 40.0% 23,000 20,000 10,000 100.0% - VC hoard added in bonus potential for staff, previously sales bonus tine 5596,000 285,871 92.2% $483,000 *total tabor costs come in at 20% of revenues 350,000 350,000 175,000 Robust campaign for media buy, along side with agency campaign concept/creation 300,000 300.000 150,000 Robust campaign for media buy, along side with agency campaign concept/creation 100.000 100,000 30,004 Create new Golf centric destination campaign / hotel packages 80,000 80,000 40,000 20K quarterly cost, nets ler1.2M gross room revenues $830,000 $395,000 55,000 45.000 450.0% 40,000 Ad Studies. Economic impact. Persona research, etc. (250,0031 -100.0% - Previously all digital efforts were group here, now broken out below 0 74,450 Thls budget only reflects for rower 2MM as the position in house would be eliminated 33,450 31,450 25,500 Paid social campaigns 85,000 85.000 70,000 Boogie Astwords & disPla1r 18,000 18.000 12,000 Slog content articles 72,000 72.000 38,000 Create repeating shows on destination, highlighting seasonal, features, etc. 120,000 ;20,000 120,000 Ground up build of new site with advanced functionality 200,000 100.000 175,000 REP for new creative look, wording, ad design. etc. to be rolled out for all campaigns 65,000 65,000 40,000 Using GPS retargeting data for visitation to destination 50,000 50,000 20,000 Take the Information out to where the people am 6,000 6,000 6,000 45,000 45.000 15,000 Merlin hosting, travel, etc. 28,800 28.800 28,800 Elevated management fret 80,000 80,000 15,000 Agency photo shoot budget new creatimi 5803,250 553.250 221.3% $639,750 15,000 9,000 180.0% 1 5,000 27,000 17,000 170.0% 22,000 Software, memberships. etc. SO 10.000 253,000 FY21 Proposed Budget Collateral Prod. & Fulfillment Public Relations Events Total Promotional Proororos GROUP DIRECT SERVICES Technology 9,003 Memberships/DueS 2,621 Group Incentive 50.030 Coronavirus Rebound Sponsorship 40.0E0 Sponsorship/Partnership Marketing/Advertising Sile Inspections Total FAM/Sito Visits Travel & Entertainment Tradeshows Group Direct Services - Total i 5176,621 GENERAL ADMINISTRATIVE Dank Charges Equipt. Rental & Maint. Facility Repair & Ma)m. Office Space Rental General Liability ins. Office Supplies Postage Taxes Telephone Professional Services Volunteer Program Miscellaneous 1.161ities Computer Expense rototapt Ur:applied Cash 6.5 Pyrnt Lop TOTAL EXPENSE 30.030 35,000 san 1.002 5021 1,000 2,000 10) 150 1 $800,000 ,OOO 3000 2.007 ,2.50 W.57.12- librcarlsbad Notes: Proposed Reduced 2MM CT8t0 FY22 Budget Proposed 3Mai CTBID FY22 Budget tam0 $ Ong bMss FY21 and tY22 DM13% Chng btwn FY21- FY22 Actual CKAO EY2Ieudget 3,000 1,000 r.0 Mal 50.0% -100.0% 3,000 $1,733,250 1.445,730 501.8% $1,114,750 3,003 15 COW .66.7% 3.000 3,000 379 14.5% 3,000 400,000 350,000 700.0% 250,000 Robust Incentive to match new propos,d 20,000. 5 0.0% 15,000 CVENt. etc, platform renewals 75,000. 70,000 1400.0% - Promote new destiination group (new ballroom, PH mow:Rion, etLi 10,000 5.000 5.000 10,000 0 0.0% 5,000 25.000 (10.0001 -28.6% 25,000 Reduced Tradoshows into to conditions, look to hotel coop 6546,000 369.379 209.1% $306,000 15001 -100.0% 2,000 1,000 200.0% 2,000 3,000 7,500 500.0% 3,000 50,000 50,000 001V/01 50,000. Rents based no 12021n It office space in Carlsbad 2,500 1,500 150.0% 2,000 15,000 13.000 650.0% 10,000 100 o o.o% 100 ISO o 0.0% 150 10,000 0 0.0% 10,000 30,000 26,500 757.1% 30,000 CP/1.year end CMC171.11 audit (sow -1130.0% 1,000 o o.o% 1,000 5,000 7.000 66.7% 3,000 0.000 4.003 200.0% 5,000 $124,750 99,500 394.1% $216,250 53,000,000 2,200,000 275.0% $2,000,000 OVER/(UNDER) 0 FY2 t Proposed Budget