HomeMy WebLinkAbout11/07/1995, C-11 - USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) ENHANCED PROMOTIONAL FUNDS AND GRANT-IN-AID FUNDS MEETING DATE:
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ITEM ?,MBE :
COUNCIL AGENDA REPORT
FROM: Ken Hampian, Assistant CAO
Prepared by: Wendy George, Assistant to the CAO
SUBJECT: Use of Promotional Coordinating Committee (PCC) Enhanced Promotional
Funds and Grant-in-Aid Funds
CAO RECOMMENDATIONS:
1. Approve the PCCs recommended spending plan for Enhanced Promotional Funds
of $20,000 for a southbound Highway 101 sign, $7,000 for a video brochure and
$6,000 for additional advertising;
2. Approve the PCCs recommendation to give a grant-in-aid of$2,500 to Decemberfest
to fund use of the back-up trolley;
3. Approve the PCCs recommendation to reallocate the San Luis Obispo Arts Council's
unspent 1994-95 $2,000 grant-in-aid to the program's reserve.
DISCUSSION
I. ENHANCED PROMOTIONAL FUND EXPENDITURES
Background
The Enhance Promotional Fund was created when the Transient Occupancy Tax was
increased from 9% to 10%. The fund is to be used to initiate new promotional efforts,with
emphasis on improving off-season tourism. A total of$50,000 was allocated to this fund as
part of the 1995-96 budget. Council recently approved spending $5,000 of Enhanced
Promotional Funds as the City's contribution to the cost of a county-wide tourism survey
being coordinated by the Visitors and Conference Bureau (VCB). The PCC has met with
Jennifer Peterson of the Chamber of Commerce and Maggie Cox of Barnett, Cox and
Kornreich to develop a spending program for the remainder of the fund.
Enhanced Promotional Spending Recommendations
1. Highway 101 Sign - In February, 1995, the Council approved the concept of placing
a tourist sign advertising "Historic San Luis Obispo" at the southerly entrance of the City
and authorized the PCC to spend up to $20,000 for sign design and construction. Working
with appropriate City Departments and advisory bodies, the sign has been designed,
approved and is currently placed out to bid. It was the PCC's intention to construct a
similar sign at the northerly entrance to the City when additional funds were available. At
its September meeting the PCC recommended asking Council for approval to spend$20,000
of its 1995-96 Enhanced Promotional Fund to build the second sign.
City Of san Wi S OBI SPO
Moil COUNCIL AGENDA REPORT
The PCC has met with its sign designer who believes that the design of the first sign, with
some modification to fit the terrain, can be duplicated for the second sign. He has been
working with the Water Division Manager to find a location on City property at the base
of Cuesta Grade for placement of this sign. (See attachment A). If Council approves the
funding for the second sign, it will be taken before the Architectural Review Commission
for approval and can, hopefully, be constructed simultaneously with the first sign.
2. Video Brochure-A video brochure is a five minute long video presentation about San
Luis Obispo for use in showcasing the City to travel writers, feature writers, electronic news
media, eta It would be an innovative addition to a printed press kit and personal contact,
and could be produced in conjunction with a 30 second TV spot for cost efficiency. It may
also have a secondary sales market to visitors and to groups like the Center for the
Performing Arts.
The PCC is recommending that Council approve spending $7,000 to produce several
hundred copies of the video to be distributed as part of our promotional program.
Production of the video would be overseen by Barnett, Cox and Kornreich. (See
Attachment B).
3. A&&ional Advertising- The PCC recommends the Council approve $6,000 be used
for additional print advertising, especially in the San Jose Mercury News. Currently, the
City's advertising emphasis has been on southern California, however, zip code analysis by
Barnett, Cox and Kornreich shows the San Jose market is an increasingly important one for
the City. Unfortunately, budget constraints in the past have kept the City from utilizing it.
The VCB also advertises in the San Jose Mercury News and the City will be able to
capitalize on this advertising with its own efforts. (See Attachment B).
4. Reserve Fund - The PCC recommends maintaining a reserve of $17,000 at this time
to be used most likely for additional promotional opportunities, but also to be available to
cover any unanticipated additional costs which might arise from the construction of the two
highway signs. Any future use of this balance will require Council approval.
II. GRANT-IN-AID FUNDS
Background
In July, 1995,based on recommendations from the PCC, the Council approved grants-in-aid
to local non-profit organizations that promote cultural, economic and recreational services
in the City. At the same time it established a fund reserve which could be used for future
grants,if appropriate. At the last PCC meeting the Decemberfest Committee requested that
part of the reserves be used to provide a grant to its organization to fund use of the
'backup" trolley during the Decemberfest celebration. At the same meeting, the San Luis
Obispo Arts Council returned its 1994-95 grant to the PCC because it was unable to
1i°111I $1O 111� city of San tins osispo
COUNCIL AGENDA REPORT
complete the project for which the money was granted.
Grant-in-Aid Requests
1. Decemberfest Request-At its October meeting the PCC reviewed a request received
from the Decemberfest Committee to provide a grant to support the use of the 'backup"
trolley during this year's Decemberfest activities. (See Attachment Q. As in 1994,
Decemberfest is a series of activities and events for young and old, residents and visitors,
at locations all across the City. The Committee would like to use the City's "back-up"
trolley to provide a connector between the downtown area and the mall area on Madonna
Road. Last year the whole event was funded by a major grant from the City to the BIA.
However, this year the Decemberfest Committee is only requesting $2,500 to support the
cost of the trolley.
The use of the trolley is currently the only unfunded element in the Decemberfest activity.
There are no funds included in the City's Transit budget for special trolley service, and even
if such funds were available, existing City policy would not support the Transit Fund
subsidizing its use. Therefore, the Decemberfest Committee has appealed to the PCC to
use part of its Grant-in-aid Fund reserve to cover the cost of the trolley. After
acknowledging the need, but directing the Decemberfest Committee to submit future
requests to the PCC as part of the regular grant-in-aid process, the PCC agreed to
recommend to Council that the grant of $2,500 be made.
2. Sac Luis Obispo County Arts Council Grant Refund Request - The San Luis Obispo
County Arts Council was the recipient of a $2,000 grant in the 1994-95 fiscal year to partially
fund'Nonprofit Spice", an all day conference to assist nonprofit organizations in their efforts
to become more effective businesses with a greater impact on the community and their
constituents. Due to organizational difficulties, this event never took place and will not take
place in the future. As a result, the Arts Council has returned the grant money to the PCC.
The PCC has accepted the check and requests that the Council authorize its reallocation to
the Grants-in-aid Fund reserve.
FISCAL IMPACT:
Funding is available in the Enhanced Promotional Fund to support all the PCC promotional
recommendations as indicated below:
Original Budget $50,000
VCB Survey ( 5,000) - already approved by Council
Second Sign (20,000)
Video Brochure ( 7,000)
Add'1 Advertising -( 6,000)
Reserve $17,000
city of San Luis OBISpo
Mmsbu
COUNCIL AGENDA REPORT
Funding is available in the Grants-in-aid Fund reserve to support the cost of the $2,500
grant to Decemberfest for the trolley. If the $2,000 SLO County Arts Council grant is
returned to the reserve the remaining balance will be $3,400.
Attachments:
Attachment A - Proposed sign design
Attachment B - Promotional proposal from BC&K
Attachment C - Request from Decemberfest
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City of SLO PCC
Enhanced Promotional Funds
1995-96
Spending Proposal
. . . . . . . . . . . . . . . . . .
Submitted by Jennifer Peterson& Maggie Cox
October 9, 1995
This proposal is submitted as a working budget for$15,000 of the remaining enhanced
promotional program funds for the PCC for fiscal year 1995-96. The proposal is
submitted by Jennifer Peterson of the SLO Chamber and Maggie Cox of the City's
contract advertising agency Barnett Cox& Kornreich, who recommend a collaborative
effort be undertaken by the two companies.
The goal of the proposed program is to provide an innovative, several-step program for
boosting tourism in San Luis Obispo during off-season months, as well as promoting
tourism in general. The program recommends a combination of public relations,
advertising and materials' production for meeting City tourism promotion goals.
Project#1: Video Brochure
Budget. $7,000
A video brochure is a five minute long video presentation about SLO for use in
showcasing the City to travel writers, feature writers, electronic news media, etc.
Use of video offers us the opportunity to introduce the City using sight, sound and
emotion, and to have a compelling means of getting writers to "look"at our city.
It is an innovative addition to a printed press kit and personal contact, and is used
b y numerous industries to promote products and services.
The video would include an animated City logo (which would also be used in the
TV commercial), and would be produced in conjunction with the :30 TV spot for
cost efficiency. The video would most likely be"hosted" by professional talent,
and would utilize sound sweetening,professional lighting, and quality video to
create a compelling picture of SLO. Several hundred copies of the video would
be duplicated, allowing the pr program to distribute them on request. The video
budget costs will include jacket design and printing.
Enhanced Promotional Funds Proposal 1019195 I C���•.•�
A 41ae.kmon4 3
There may be a secondary market in sales to visitors and/or potential visitors, as
well as groups like the Center for Performing Arts. This project would be
overseen by BC&K. Note that some of the contingency budget included at the
end of this proposal may be useful for postage costs for distributing the video with
other public relations materials.
Proposed Video Budget—Estimate
Animation $1400
Audio Engineer $ 150
Audio Sweetening $ 150
Boom/Dolly $ 300
Concept/Copy $ 650
Dubs $ 300
Gaffer/Lighting $ 250
Jacket Design/Printing $ 400
Producer/Director $ 600
Video Digital Edit $ 800
Videography $1700
Voice/Talent $300
Project#L Additional Advertising
Budget: $69000
We recommend $6,000 of the funds be used for additional print advertising,
notably in the San Jose Mercury News. Zip code analysis shows this market is an
increasingly important one for SLO, but budget constraints in the past have kept
us from recommending this buy. With new funds, we can open this market and
capitalize on the presence the VCB is generating with its co-op advertising plan in
the San Jose Mercury.
Ad artwork will be the same as that used in Southern California, and will run
concurrently with those scheduled to run in the winter and early spring.
Enhanced Promotional Funds Proposal 10/9/95
e-11-17
Project#0: Contingency Fund
Budget: $2,000
We recommend $2,000 of the fund be maintained for contingency spending,
including increased postage for video distribution and special events participation
opportunities that may arise later in the fiscal year(such as the Fair banner or San
Diego Amtrak trip).
Enhanced Promotional Funds Proposal 10/9/95 3
�'-//--?
c/o Betsey Lyon
1605 Colina Court
San Luis Obispo, CA 93401
Phone/Fax 543-0548
October 6, 1995 O`,
Bill Pyper, Chair
Members of the PCC
c/o Wendy George
City Hall
990 Palm Street
San Luis Obispo, CA 93401
Dear Mr. and Pyper and Members of the PCC,
As Chair of the Decemberfest Committee, I am writing to you regarding our request for
support for the trolley during this year's Decemberfest activities. As in 1994,
Decemberfest is a series of activities and events for young and old, residents and
visitors, at locations all across San Luis This program was begun in 1994 with major
funding provided by the PCC, but this is our only request to the City/PCC this year.
The important facts are:
* Decemberfest represents a partnership of many significant shopping and hotel
facilities, the City's Recreation Department, and almost every cultural
organization here in San Luis.
* 5,000 Full-color brochures will be printed and distributed featuring all of the
activities and maps of the City showing accommodation and event locations.
* The Telegram Tribune will produce a Decemberfest tabloid including the full
schedule of activities that will reach 90,000 readers.
* Every participating individual or group is donating all of their time and services
for the activities. (Last year, some funding was provided to get them started.)
* This is the only time in recent memory that such a partnership stretching across
San Luis from the Apple Farm to the Central Coast Mall has been created and all
parties have worked together successfully. Furthermore, all the cultural
organizations are generous with the time and services in their partnerships with
business locations.
A�a.r�nmPnl C
Bill Pyper, Chair
October 6, 1995
Page two
* The popularity of Decemberfest activities last year was evidenced by the
attendance at Madonna Inn's tea - expecting about 100, they were astonished
when 600 people attended.
* Grass Valley (near Sacramento), population 8,000, has a similar program that is
so successful that businesses report doing 70% of their annual business during this
five-week period, and hotels are impacted for forty miles around! We are
working toward a similar success.
* As we plan to build Decemberfest to include the entire Central Coast and fill the
days between Thanksgiving and New Years, we will need to provide a way to get
around for visitors. In 1994/1995, we are still growing and expect the numbers of
visitors to grow in the future (see note above regarding Grass Valley).
* This is a difficult year as we must follow the professional and impressive standard
set in 1994 for quantity and quality of events and appearance of promotional
materials, but do it without last year's wonderful funding! This year's events and
brochure achieve the same standard as 1994.
* We have raised the bulk of funds needed to print the brochure ($5,000) this year
as well as hang 59 Decemberfest banners ($1,500) through sponsorships of the
major participants (no cost to non-profit organizations performing for free) and
two fund-raising activities, Oktoberfest (October 1st) and Senior Prom on October
28th.
* This leaves the trolley as the only unfunded element. Our request that the trolley
be provided for a route between the upper Monterey Street hotels, downtown and
the Central Coast Mall was presented to the City Council and approved. Council
members have expressed that they believe these activities have a significant future
and that the trolley is a logical and important feature for visitors now and in the
future.
* The funding needed to provide the trolley during Decemberfest amounts to less
than 10% of the funding provided last year by the PCC.
* The trolley cost would be an appropriate contribution from the City of San Luis
Obispo and the Promotional Coordinating Committee as a partner among the
major sponsors contributing $2,000 or more.
eves vo
Bill Pyper, Chair
October 6, 1995
Page three
One of your committee members, Sandy Baer, has served on the Decemberfest
Committee and as editor of the TT tabloid for two years. She can offer her enthusiastic
support and answer many of your questions.
We are enclosing a photocopy of the first draft of this year's brochure. As you look
through it, you will begin to realize how extensive the business/cultural partnerships are
and how many wonderful activities are offered. Following this letter is a list of the
participanting individuals and organizations for this year - you can see how extensively
this involves our entire community.
We would also like to invite all of you to the Decemberfest kickoff at noon on Friday,
December 1st at Santa's Castle in the Central Coast Mall. The Mall will be giving away
photos with Santa to the first twenty-five people wanting them, and will be providing
refreshments along with the entertainment. An addition to the Kickoff and the brochure
is entertainment by Pat Jackson's young dancers, "Swing Babies" singing "My Guy" (I
think they mean Santa).
All of the committee members listed on the following page sincerely appreciate the
support of the PCC, both past and present, and look forward to seeing you at the
Decemberfest Kickoff on December 1st. If we can answer any questions for you, please
contact me. Thank you for your time and consideration of this request.
Very
ytruly yours,
�G
Betsey Ly
7
Decemberfest Chair
List of Participants in
'X"MAWIAd X.995
Apple Farm Inn Business Improvement Association (with
over 500 members)
Children's Museum
City of SLO (Recreation Dept.) Civic Ballet
Embassy Suites Garden Street Inn
Gilbert Reed Ballet Heritage Inn
Jack House KJUG
Lamplighter Inn Madonna Inn
New Times Noland's Carriages
Old Mission Pacific Repertory Opera
SLO Art Center SLO Chamber of Commerce
SLO County Symphony Taylor Rentals
Telegram Tribune
and individuals:
Sandy Baer Betsey Lyon
Therese Sohmeno
MEETING AGENDA e,l�
DATE ��'�gs ITEM #
[OKA
NCIL PDD DIA
MEMORANDUM . FIN DIR
TTCRNEY IEFLVPW DIR
November 7, 1995 LERK�ORIo O POLICE CHFMTTEAM 17 REC DIR
TO: City Council Members FILE O U71L DIR
❑ PERS DIA
FROM: Ken Hampian, Assistant City.Administrator
SUBJECT: Southbound Highway 101 Sign
Atttached is an updated version of the proposed southbound Highway 101 sign. The use of
"Monterey Street" on the sign instead of "Marsh Street" was approved by the Promotional
Coordinating Committee (PCC) at its recent sign subcommittee meeting.
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