City of Coronado

Coronado Tourism Improvement District (CTID)

Minutes from Advisory Board/Board of Directors Special Meeting, February 7, 2013, Glorietta Bay Inn, Coronado, Ca.

Call to Order. Meeting was called to order at 1 p.m. Seven CTID Advisory Board members were present: Tim Herrmann, Eddie Warner, Phil Monroe, Brian Johnson, Mary Ann Berta, David Spatafore and Denise Schwab. Todd Shallan and Camille Gustafson were unable to attend.

Also in attendance: Claudia Ludlow-Gonzalez from Glorietta Bay Inn, Executive Director (ED) Todd Little, Tom Ritter from City of Coronado, Rita Sarich from Coronado Mainstreet, David Axelson from the Eagle & Journal, Janet Francis from Coronado Visitor Center, Sue Gillingham from 1906 Lodge, Bob Kennedy from Coronado Marketing & Advertising, Kris Grant from Coronado Lifestyle, Howie and Lois Stern of Ala Carte Publishing, and Cherissa Hill of HD Relay

Approval of Minutes from January 3, 2013. Motion for approval: Monroe, Second: Berta. Unanimously approved 7-0.

Staff Discussion and Updates. The ED updated the Board on the assessments collected in December ($27,170.) The YTD total is $297.504, 1% under projections but 4% over last years total for the same period. The Board also received a budget versus actual expense report that indicted $5,433 less spending than planned in the Annual Report budget. The balance did reflect the planned $25,000 contribution to the Long Term Planning Fund.

The Board packet included a copy of the CTID’s Q2 Report as well as the Balance Sheet, P&L Report and Transaction Summary through December 31, 2012.

Oral Communications. Phil Monroe introduced Janet Francis the new Manager at the Coronado Visitor Center. Previously, Janet worked at the Olympic Training Center in Chula Vista. Cherissa Hill of HD Relay introduced the capabilities of their firm to provide live video streams from web cams. She believes they are great marketing tools for engaging local and international guests. The feeds can interface with Google Maps and costs average $2,000 per unit.

Denise Schwab thanked the Board on behalf of the Coronado Chamber of Commerce for their granted radio campaign to promote Snow Mountain and the Holiday Open House & Parade. To measure the impact of the grant the Chamber provided year-over-year percentages from a number of merchants: Brigantine: 30% increase, Bistro d’ Asia: 35% increase, Costa Azul/Island Pasta: 20% increase, Blue Jeans and Bikinis: 100% increase. She closed by saying the grant did what it was supposed to do (provide an increase in revenues for local businesses.)

Bob Kennedy told the Board that Coronado dining guides (in Topic 5c) are already being published by the private sector. In addition to others, he is launching an initiative that lists and promotes about 30 of Coronado’s restaurants. He questioned whether guides were the best use of CTID assessments. He felt the CTID should solicit more input before producing its own guide.

Howie Stern wanted his planned dining guide to be an asset to the community. He planned to draw on his experience as a restaurateur and publisher of the Telluride guide. He offered full participation to the CTID Board when seeking their endorsement. He hoped his guide would position Coronado as a 12-month resort and bring unity in attracting guests from San Diego.

Lois Stern continued by commiserating with restaurateurs who struggle with marketing decisions. She added that the guide they are producing offers a full scope of turnkey solutions for restaurants including online versions of the guide and QR code assess. To offset costs they will seek corporate or co-op advertising.

Review FY13 Goals (Topic 5a) The Board requested a summary on the short and long-term goals featured in the CTID Annual Report:  The Visit Coronado mobile app was released in late July 2012. Since then there’ve been 10,487 downloads/updates.  The APPsolutely! campaign has contributed greatly to its awareness and usage  The sample size for the most recent Marketing ROI Study increased to 52 local merchants. This improves the accuracy of the data that showed an average 7% growth YOY while the CTID campaigns were in the field.  Plans for way-finding signage were started with the CTID funding an initial study  The CTID has promoted alternative ways to reach and navigate Coronado via the app, the way-finding signage initiative plus the promotion of the Ferry, Water Taxi and MTS 904 in the forthcoming newspaper insert.  The CTID accomplished its long term goal of seeding a Planning Fund with $25,000  Reports on goals for a summer shuttle and iPad were to come in the meeting  The ED will provide a summary on grants following the Superseal event in March In anticipation of the FY14 Annual Report the ED suggested including a goal to continue the way-finding signage process based on the findings of meetings scheduled for late February.

Approve direction for Expanding Assessment (Topic 5b) In January the ED was asked to provide a summary should the Board wish to pursue increasing the CTID assessment to 1%. In doing so, the Board could finally afford marketing to offset the significant drop in foot traffic merchants experience during January, February and March. At this time, current assessment levels only allow for national marketing in Fall or early Spring.

Doubling the percentage to 1% would generate just over $1M in assessments. For the sake of example, the ED’s presentation reflected $600,000 for campaigns throughout the off- season including some strategies the current assessment level wouldn’t allow for. The increased assessment would allow the Board to reach a new marketplace such as the Coachella Valley and fortify the digital portion of our marketing.

The CTID’s strategic partner, San Diego Tourism Authority (SDTA,) recommended supplementing the existing full-page magazine strategy with two issues of Sunset Magazine. Sunset was cut last year despite the fact it would deliver 2.2M impressions. They recommended embellishing the current newspaper strategy with the Desert Sun to improve hotel occupancy. Coachella Valley could be considered a drive market but its mostly likely its wealthy residents would stay the night in Coronado hotels instead of driving back. SDTA highly recommended increased spending on digital efforts, especially during Winter. The additional funds would go towards more travel websites, behavioral retargeting and geo- targeting just prior to the month of January, February and March. The increase in funds would allow this Board more flexibility when evaluating shuttle systems, signage programs and possibly community grants that improve occupancy. All funding would need to directly benefit the assessed hotels.

Prop 26 is important when considering an increase in assessment. This 2010 law stops hidden taxes, but the CTID assessment is not considered a tax. Additionally, the CTID assessment qualified for two exemptions to Prop 26: the use of the assessments to specifically benefit the hotels that collect it and government services that the assessment helps pay for.

The ED recommended starting the process to increase the assessment right away. The Board was given an option to retain Civitas Advisors who have supervised the increase of assessments in 20 different districts similar to the CTID. The cost of their services would be $20,000. Another option was to simply follow the direction of the City for approval from Council.

Because there is unanimous support from the assessed hotels, Tom Ritter felt the process would run smoothly. He outlined the approval process that would begin with letters to the hotel owners confirming their wish to increase the assessment. Tom suggested using the March 7th CTID meeting to approve the budget that would appear in the FY 13-14 Annual Report. The CTID must deliver that Report by March 30th outlining the benefits for the increase with the projected allocation budget. City Staff with work with the ED to schedule the required Resolutions, Notices and Public Hearing with City Council. Tim Herrmann felt it was important that all use of the funds directly impact the hotels. He added that it would be wise to consider initiatives that resonant with residents (such as shuttles and community grants.) Phil Monroe felt it important for CTID representatives to proactively meet with Council members to educate them on the benefits of change in assessment. Eddie Warner reminded the Board there is a significant portion of residents who once lobbied Council to close Coronado’s Visitor Bureau (because they felt the community was being overrun by tourists.) David Spatafore felt there was a new generation of residents who would not be so vocal because the work of the CTID is funded by a guest assessment, not City funds. Mary Ann Berta agreed, suggesting things are better than they used to be and residents may appreciate way-finding signage and shuttle programs. Sue Gillingham commented that residents have a love/hate relationship with tourism even though it contributes to the tax base that pays for city services they enjoy. Kris Grant recalled the same residential concern in the mid-90’s and encouraged the Board to remind opponents the assessments improve off-season tourism, not the number of summer guests. David Spatafore was against retaining Civitas at their suggest cost and asked if they would advise the CTID by billable hour. Eddie Warner asked what we would receive for their full retainer. Tom Ritter suggested retaining Civitas Advisors as some point if possible because the City Attorney cannot provide counsel to the CTID. Motion for the CTID to negotiate with Civitas on compensation; otherwise proceed with assessment expansion process: Spatafore. Second: Johnson. Unanimously approved 7- 0.

Approve direction for improving dining awareness (Topic 5c) The Restaurant Subcommittee have spend a good amount of time trying to improve the awareness of Coronado’s dining category because it benefits our hotels, shops and service providers. They’ve discuss a number of options and the ED sought direction on items such as a printed dining guide, underwriting an established dining strategy or better promoting dining as a whole via our marketing efforts

If the Board were to approve producing its own dining guide, the ED felt it was imperative to include each eating establishment in Coronado. He encouraged profiling the restaurants in CTID hotels first because their assessments are paying for it (not advertisers or sponsors.) Distribution in San Diego was mandatory to adhere to the CTID mission. The ED discussed different sizes citing the Chamber Holiday Guide as a model. His initial development cost for 10,000 copies was $12,000 excluding a distribution plan for San Diego County.

A second option for the Board was to underwrite or outsource a dining guide that already exists. This would include guides produced by Kris Grant and those planned by Bob Kennedy and Howie Stern. The CTID would still mandate certain data but the publisher could include advertising and offset expenses with co-op dollars unlike the CTID. Outreach would be best handled through an RFP process.

A final option presented to the Board was simply improving the need, want and demand for dining by prioritizing dining images and messaging in existing marketing strategies. The Board packet included three examples of how it could be carried out in print ads. The CTID’s PR efforts could be ramped up immediately without any significant change in costs. Kris Grant, Bob Kennedy and Howie Stern collectively disagreed with launching a dining guide with 10,000 initial copies. They felt the quantity was very conservative. Kris Grant produces 35,000 copies of her “A Taste of Coronado” Guide that is restocked throughout the year at various locations. David Spatafore first encountered Howie Stern’s dining guide in Telluride and felt with a number of changes it may work for Coronado. David voiced concern that existing guides accommodated advertisers and sponsors and did not serve the true needs of the restaurants. He added that print, in general, was a dated marketing tool. He felt it wasn’t the CTID place to produce a guide, but underwriting was a consideration. Phil Monroe was against producing a guide that would compete against existing businesses. Mary Ann Berta felt it was necessary to ascertain the interest and opinion of other restaurateurs and felt it may be possible to update the Board on March 7th. Denise Schwab said it was important for the CTID to remain focused on “heads on beds” and tourism, not dining guides. Brian Johnson was more comfortable with the possibility of outsourcing such a project but only if it attracted guests from San Diego. Kris Grant had no interest in underwriting for her guide because it would not work in her current business model plus it would force her to compete against other guide publishers. Cherissa Hill of HD Relay reminded the Board that ads for dining could preface footage on their live web cams. Lois Stern believes their guide is a wonderful marketing tool that promotes the variety of cuisine available in Coronado. Motion to approve the option to improve dining through existing marketing strategies: Schwab. Second, Johnson. Approved 5-0 with restaurateurs Spatafore and Berta recusing themselves.

Approve direction for developing iPad/tablet application (Topic 5d) The ED outlined why developing an app for iPad and other tablets made sense (even though the Visit Coronado app is robust and heavily used.) He suggested that the existing app is intended for guests who are on-foot and searching for information about a hotel, restaurant, shop or service. The Board was shown data that suggests tablet usage is exploding because they are a source of inspiration, a discovery mechanism for reviewing large frame photos unlike a smartphone. Tablets have been adopted by older and affluent guests who surf the internet without being tethered to a PC or laptop.

The cost of developing an iPad app (that is an extension of Visit Coronado app) is around $6,000 then $3,000 for hosting. The ED recommended investing in a responsive website instead which looks and acts like an app but can be read on any device that calls for it. This will allow the Board to avoid repetitive and costly app updates to accommodate the ever- changing tablet technology.

Eddie Warner asked how this would impact the website being developed by the Visitor Center. The ED thought some information would be duplicated but it was intended for those who want more information after seeing a CTID advertisement. Rita Sarich asked if the website would replace CoronadoTourismDistrict.org. The ED said that website would continue to exist because it was intended for the transparency of the CTID. Sue Gillingham felt it was good to use responsive websites; her guests often use both smartphones and tablets (of all sorts) to gather information about Coronado. Motion to include funding for responsive website in projected budget FY14: Schwab. Second, Spatafore. Unanimously approved 7-0. Approve direction on shuttle system (Topic 5e) In February 2012 the Board heard a number of options for a summer shuttle that could better balance spending in all districts by transporting guests across the island. A shuttle could lessen car usage and improve the overall visitor experience. Plus it would be a positive addition for residents who are impacted by additional guests during summer. One negative was discussed, how the shuttle could work against retailers and restaurants that rely on window-shopping and walk up business.

Since that 2012 presentation the number of shuttle providers had shrunk and no obvious cost- effective solutions exist. The ED reviewed the deliverables of three providers:

Old Town Trolley (OTT) is the most experienced provider, delivering 200,000 guests to Coronado each year. While they could provide narrated tours along the proposed loop from Ferry Landing to the Hotel del Coronado, Old Town Trolley ticketholders may be confused if the CTID did not brand/wrap the shuttle significantly. OTT can provide ADA compliant vehicles and coordinate with their existing schedules, but the projected cost between Memorial Day and Labor Day reached $65,000. Unfortunately, Goldfield Stage could not improve on that cost despite an abundance of fleet vehicles. Their estimate reached $70,000. Because it uses the exact route discussed last year, the ED improvised for a third option… completely rebranding the existing MTS 904 bus during the tourist season with a contrasting color, free passage for riders and wait times of only 30 minutes. Still, the cost approached $65,000. The ED recommended tabling the topic once again.

Denise Schwab felt the proposed route wasn’t ideal because it did not include two of the assessed hotels. She also felt the shuttle was beyond the CTID budget and several of the hotels already provide shuttles for their guests. Mary Ann Berta felt the shuttle would not impede window-shopping because riders would ultimately return to their point of origin. Eddie Warner felt a 30-minute wait wasn’t wise; a 15 minutes window made more sense. She also asked if the providers would consider service only on weekends. The ED did not think it would make economic sense for the providers. Tim Herrmann said weekday service was better for the hotels because have higher occupancy then compared to weekends. Brian Johnson preferred a solution that benefited all of the hotels, businesses and constituents. Brian added that more shuttles would be necessary for a 15-minute wait. He does see increased demand for a shuttle service; Loews is evaluating a larger shuttle for their guests. David Spatafore felt the shuttle system would only work if there were a parking facility that served as a hub for arriving guests. Motion to table topic: Schwab. Second, Spatafore. Unanimously approved 7-0

Review recommendations for community grants, approve direction (Topic 5f) As the community grant cycle approaches the ED began looking for ways to improve the grant process so more Coronado event planners were made aware of it and the Board could more effectively evaluate applicants.

The number of applications has eroded and the ED suggested budgeting $1500 to better advertise the grants. He suggested an RFP for Coronado websites such as Patch, WelcomeToCoronado and eCoronado.com. Finally he suggested having selected applicants provide oral presentations to the Board. This could help Board members better understand the applicant’s request and the passion behind their organization.

Phil Monroe felt the process already works and the approval scoring was consistent across the board. Brian Johnson didn’t want to spend money to award money. He did appreciate the idea of presentations because it would allow him to put a face with the organizations. Mary Ann Berta felt the advertising was important to reach applicants who may have no idea of the grants. David Spatafore felt the advertising was not necessary and applicants already had a forum to speak if they had the initiative to do so. He felt it made more sense to encourage potential grantees to show up and speak on behalf of their application. He was against extending the grant process to hear presentations from finalists. Instead he suggested allowing presentations on the day grants are evaluated. Sue Gillingham understood an applicant refusal to apply for a grant after being turned down previously. She recalled an early plan to use these grants to launch or foster new events in Coronado. Eddie Warner asked if an increase in the CTID assessment could allow the Board to increase grant amounts. Tim Herrmann felt it was possible if hotel occupancy was the key benefit from approving a grant. Motion to disapprove additional marketing budget but allow presentations on evaluation day: Spatafore. Second, Monroe. Unanimously approved 7-0.

Adjournment. The meeting was adjourned at 3:40pm.