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HomeMy WebLinkAbout2023-07-20; Visit Carlsbad Destination Transportation Services Program (Districts - All); Rocha, LauraTo the members of the: Date l/2.t>/23 CA CC / CITY CO~NCI CM -~-AM _ DCM (3) ~ July 20, 2023 Council Memorandum {city of Carlsbad Memo ID# 2023072 To: Honorable Mayor Blackburn an e rs ofthe City Council From: Via: Re: Laura Rocha, Deputy City Manager, A David Graham, Chief Innovation Offir-h~l-l,,II- Geoff Patnoe, Assistant City Manag r Visit Carlsbad Destination Transpor This memorandum provides information on destination transportation services procured by Visit Carlsbad using grant funding from the Carlsbad Tourism Business Improvement District (CTBID) Advisory Board, which will move visitors from hotels and other lodging establishments to destinations around the city. Background There are more than 100 Tourism Business Improvement Districts in the State of California, generating a collective $300 million in funding to promote destinations for tourism. The CTBID was formed in 2005 as a special assessment district, ensuring Carlsbad remained competitive among other California destinations. Assessed funds are used for the promotion of Carlsbad as a destination for individual, family, and group travel and to make the destination more appealing to visitors. There are approximately 400 assessed businesses in Carlsbad, including 42 hotels, motels, and lodging establishments, and approximately 360 short-term vacation rentals. In 2008, the CTBID Advisory Board approved initial guidelines to establish a formal grant program to support tourism and tourism-related activities in Carlsbad . The grants have been used t o support and help grow events in Carlsbad . Historically, these grants were used for smaller, primarily local-serving events. Discussion At its March 24, 2022, meeting, the CTBID Advisory Board established an ad hoc grants subcommittee t o evaluate the grant program and make recommendations for potential changes to the grant criteria, budget, and desired impact. The CTBID Advisory Board stated that grants should be used to attract and grow larger, more impactful events for Carlsbad, especially ones that generate more overnight stays in Carlsbad. They also expressed a desire to solve issues related to moving guests around Carlsbad. Administrative Services Branch Innovation & Economic Development Department 1635 Faraday Ave 'i Carlsbad, CA 92008 'i 442-339-4620 t Council Memo -Visit Carlsbad Destination Transportation Services Program (Districts -All) July 20, 2023 Page 2 The ad hoc subcommittee of the CTBID Advisory Board met several times ahead of the fiscal year 2022-2023 CTBID budget process and recommended an increase in the amount of funds allocated to grants to amplify the program impacts and incentivize new events in Carlsbad. The subcommittee also recommended allocating funds to establish a destination transportation service to move visitors around Carlsbad. The purpose of this service would be to make Carlsbad a more attractive and convenient place to visit because visitors would be able to get from their lodging to tourist destinations like the beach, attractions, retail establishments, and restaurants for free. As part of the fiscal year 2022-2023 CTBID budget, the CTBID Advisory Board approved $1.5 million to be used for tourism and tourism-related grants, a significant increase from previous years. This necessitated an update to the CTBID grant criteria and guidelines. The ad hoc grants subcommittee subsequently met two additional times to advise on updates to the grant criteria and guidelines. On October 12, 2022, the CTBID Advisory Board approved an updated grant policy that became effective immediately. The grant program is to: • Fund programs or events that are going to increase overnight stays in hotels • Encourage the development of innovative tourism products • Elevate Carlsbad's brand as a premier destination • Promote collaboration within and across sectors of the tourism industry • Reach important travel segments such as multicultural, family and senior markets • Support the efficient and convenient movement of visitors around the destination Of the $1.5 million approved, $1 million was approved for destination transportation services. The subcommittee's recommendation to allocate funds to establish a destination transportation service to move visitors around Carlsbad included the following parameters for the potential service provider: • Move visitors from resorts and hotels to and from interest areas around Carlsbad such as the beaches, Carlsbad Premium Outlets/The Flower Fields, The Forum Carlsbad, Shoppes at Carlsbad, Carlsbad Village, Legoland, etc. • Have flexible route (or routes) with the capacity to serve multiple destinations • Have knowledgeable drivers who can share destination information about Carlsbad • Operate exclusively within the City of Carlsbad • Operate during peak seasons, days of the week, and hours for tourism visitors Council Memo -Visit Carlsbad Destination Transportation Services Program (Districts -All) July 20, 2023 Page 3 • Adhere to all applicable laws and regulations and requirements for transporting public passengers, including stipulated insurance requirements • Establish a method of tracking and reporting to the CTBID Advisory Board The goal of the destination transportation services grant is to establish a program that would last for a period of up to one year and capture the summer peak season for visitors. On April 18, 2023, the Carlsbad City Council adopted a resolution forming a new Tourism Assessment District and named Visit Carlsbad as the representative Owner's Association. Because of this action, the CTBID Advisory Board began the transition process to the newly approved model. Because the intent of the destination transportation services program is to be active beyond the existence of the current CTBID, the CTBID Advisory Board approved a resolution to provide grant funds in the amount of $1,000,000 to Visit Carlsbad to implement a destination transportation services program, subject to the requirements and restrictions of the grant guidelines. Prior to the April 18, 2023, City Council action, city staff conducted a competitive procurement process for destination transportation services on behalf of the CTBID. This Request for Proposals (RFP) process conformed with the City's procurement policy and identified three qualified bidders. The procurement was open from February 28, 2023, to March 30, 2023. A review committee was established and reviewed the proposals. It consisted of representatives from city departments including Innovation & Economic Development and Transportation, Visit Carlsbad and the CTBID Advisory Board who also served on the ad hoc grants subcommittee. Staff ultimately terminated this Request for Proposal (RFP) process when the CTBID Advisory Board instead awarded a grant to Visit Carlsbad to create a destination transportation services program rather than CTBID. Staff made its RFP findings-to-date available to Visit Carlsbad to assist with their procurement. Next Steps Visit Carlsbad has chosen to contract with Circuit Transit Inc. (Circuit) to stand up and execute the destination transportation services program. Circuit was one of the three bidders during the RFP process the city conducted. Circuit's proposal offers flexibility, consistent branding, environmental sustainability, high-quality service, and data-driven adaptability. They are familiar with operating in the San Diego region having deployed and operated mobility services within San Diego County. Visit Carlsbad recently entered into an agreement with Circuit, which will allow the program to launch as quickly as possible. Visit Carlsbad found that Circuit's proposal for transportation services offers several key benefits: Council Memo -Visit Ca rlsbad Destination Transportation Services Program (Dist ricts -All) July 20, 2023 Page 4 • Flexible and Efficient Service: Circuit's electric vehicles can transport visitors to various key locations via flexible routes, meaning the routes can be the most efficient means to get to a destination while still maximizing ridership. The destinations themselves are adaptable and can be altered as needed, allowing for the addition or removal of stops during major events. Furthermore, Circuit can adjust the number of vehicles in operation during peak months and weekends, while scaling back or eliminating service during periods of low or no demand. This flexibility ensures efficient use of funds and availability of transportation when visitors need it most. The program can also be built to include points of origin, or their destination to or from a hotel or lodging establishment, ensuring the program is primarily used by lodging guests. • Consistent Branding and Visitor Experience: Circuit offers program branding on the exterior of their vehicles, creating a cohesive look and feel that aligns with the city's branding. This feature enhances a sense of place and minimizes confusion for visitors. • Environmental Sustainability: Circuit's all-electric fleet supports t he city's goals to reduce greenhouse gas emissions. The shared shuttle system also decreases vehicle miles traveled in comparison to single-vehicle rides, further promoting sustainability. • High-Quality Service and Knowledgeable Staff: Drivers work directly for Circuit and are not independent contractors. This ensures a high standard of service and well-informed drivers. It also means that visitors using the program will experience reliable customer service. • Data-driven Adaptability and Performance Assessment: Since no ridership data currently exists for this type of transit program in Carlsbad, Circuit proposes to work with Visit Carlsbad to provide data that can be used to adjust the program in real time. This collaboration will allow for service expansion and contraction based on demand at different times of the year, helping Visit Carlsbad establish a performance baseline. Circuit's flexibility in approach and data-driven adaptability should allow the CTBID t o maximize it s return on investment for the program in its first year. The program data can then be used in subsequent years to determine scalability for future demand. Visit Carlsbad and Circuit aim to have t he destination transportation services program running by early Sept ember 2023. Council Memo -Visit Carlsbad Destination Transportation Services Program (Districts -All) July 20, 2023 Page 5 Fiscal Impact There is no direct fiscal impact to the city as this program was funded by a CTBID grant that uses special assessment funds. If successful, the program may support increased tourism to the city, with the potential benefit of increased Transit Occupancy Tax and sales tax revenue. cc : Scott Chadwick, City Manager Cindie McMahon, City Attorney Laura Rocha, Deputy City Manager, Administrative Services Zach Korach, Finance Director Kristina Ray, Communications and Engagement Director Tom Frank, Transportation Director Nathan Schmidt, Transportation Planning and Mobility Manager Matt Sanford, Economic Development Manager