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HomeMy WebLinkAbout10/06/1992, 5A - ADDENDUM TO AGENDA ITEM #5: WATERLINE IMPROVEMENT PROJECT: HIGUERA STREET - BROAD TO OSOS, CITY PLAN NO. S-05P, CONSTRUCTION MITIGATION CAMPAIGN llllllll�pA��U�`► city O f San tuts OBISPO MEED G eTE9L COUNCIL AGEOWN NDA REPORT ITEM NUMBER: 5� FROM: Ken Hampian, Assistant City Administrative Officer-- Prepared by: David Gray, Administrative Analyst�j SUBJECT: Addendum to Agenda Item #5: Waterline Improvement Project: Higuera Street - Broad to Osos, City Plan No. S-05P, Construction Mitigation Campaign CAO RECOMMENDATION: By motion, approve an allocation in the amount of $7,500 from the Water Main Improvement Project account to support a promotional/advertising campaign to mitigate the effects of the Higuera Street Waterline Improvement Project ($5,000 direct contribution; up to $2,500 in matching funds to Business Improvement Association/merchant contributions). DISCUSSION: Over the last several months, consistent with a resolution adopted by the City Council last January, staff has been working very closely with BIA staff and downtown retailers to develop plans to lessen the impact of two major downtown construction projects: the Nipomo Street Bridge and the Higuera Street Water Line. Item 5 on the Council agenda outlines several construction related mitigation plans for the water line project. Due to the highly sensitive location of this project in the heart of the downtown business district,the San Luis Obispo Downtown Business Improvement Association (BIA) has also requested that the City provide financial assistance to a promotional/advertising campaign to encourage customer patronage and promote business activity during the construction period. Precedent for such assistance was set in 1989, when the City made a similar contribution relative to the Higuera Street Storm Drain Project. Like the storm drain project, the scope of the water line project in the dense environment of the downtown may have "customer psychology" impacts, in addition to the physical impacts on the downtown. Every effort has been made to minimize the physical impacts and accommodate the needs of businesses and customers, as outlined in Item 5. Consideration must also be given to overcoming psychological obstacles by advertising the continued convenience of, and the accessibility to, the heart of the downtown in order to sustain sales and services to the public. On September 30, 1992, staff met with representatives of the Downtown Business Improvement Association to receive a promotional/advertising campaign proposal prepared by the BIA. The BIA is proposing a multi-media promotional/advertising campaign throughout the three to four month construction period. The proposal is based in part on the promotional/advertising campaign developed around the Higuera Street Storm Drain Project. Although the BIA initially requested support for a $5,000/month budget (total of approximately$20,000), a consensus was reached between staff and BIA representatives that a recommendation be made to the City Council for a $5,000 direct lil�li�►n►t(V�IIIIII��� ��U�II MY Of san tins OBISPO COUNCIL AGENDA REPORT Page 2 Addendum - Item #5 - City contribution to the campaign; and, up to an additional $2,500 in a dollar-for-dollar match of funds contributed by the BIA or individual merchants. Thus, total"out-of-pocket" City costs will not exceed $7,500, which will at least be partially offset by the increased sales tax such an effort will hopefully generate. In addition, the City may provide in-kind contributions such as: (1) street banner on a space available basis with a "Pardon our Dust" type message; (2) publicity in the City Lights newsletter promoting downtown patronage; (3) news releases describing the project and mitigations to accommodate the public; (4) a special groundbreaking ceremony emphasizing; (5) signs at both ends of the project area inviting access, explaining the project and directing customers to alternative parking; and (6) an exhibit describing the project at Thursday Night Activities. CONCURRENCE: Staff and BIA representatives concur that a maximum of$7,500 in direct contributions and other in-kind contributions are appropriate mitigations for this project. FISCAL IMPACT: Following the allocation of $150,000 for the Higuera Street Water Line Construction Project (Item 5), $356,000 will remain in the 1992-93 Water Main Improvement Project account. Staff recommends allocating the $7,500 from this account. dg\water.rpt