HomeMy WebLinkAbout08/19/1997, C-5 - CHANGES TO WORK SCOPE FOR THE 1997-99 VISITORS AND CONFERENCE BUREAU CONTRACT council Mdi�°W
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CITY OF SAN LUIS OBISPO '
FROM: Ken Hampian,Assistant City Administrative Office
Prepared By: Wendy George,Assistant to the City Administrative Officer
SUBJECT: Changes to Work Scope for the 1997-99 Visitors and Conference Bureau
Contract
CAO RECOMMENDATION
Approve the Promotional Coordinating Committee's proposed changes to the work scope of the
1997-99 Visitors and Conference Bureau Contract.
DISCUSSION:
Background
At the July 1, 1997, meeting, the City Council approved a contract with the Visitors and
Conference Bureau (VCB) for the 1997-99 fiscal years. Included as part of that contract was a
work scope which spelled out activities the City wished the VCB to undertake during the life of the
contract. The work scope was based on input from the Promotional Coordinating Committee
(PCC)and excerpts from the proposal initially made by the VCB to the PCC.
One off the issues which was decided by the Council at the July 1'meeting was the amount of the
VCB's contract. The VCB had initially requested $91,700 for each fiscal year and had based its
proposal on that funding level. The PCC's recommendation was to pay the VCB $84,100 for 1997-
98 and $87,500 for 1998-99. Ultimately, the Council decided to fund the VCB at the staff
recommended levels of$58,700 and$60,400.
After the Council's funding decision was made, staff was informed by the VCB director, Jonni
Biaggini, that, because of the reduced funding level approved, the VCB would be unable to
perform some of the duties spelled out in the work scope of the contract. Additionally, Ms.
Biaggini expressed some concerns with the specific language of several of the duty statements.
Staff met with Ms. Biaggini to discuss her concerns and to develop some potential compromising
language. That language was then taken to the PCC for its formal recommendation to the Council.
The PCC met on July 9, 1997, and reviewed the modified language of the work scope. The PCC
was understanding of the VCB's concern about the impact of reduced funding on its ability to
fulfill the original work scope. On a unanimous vote, the PCC supported recommending the new
language to the City Council.
Substance of the Chances
1. When the VCB initially presented its proposal to the PCC it discussed developing a new,
focused program which would target corporate and incentive groups and encourage them to
use San Luis Obispo County as a location for their business awards programs. This type of
business tends to impact communities as much or more than most conference groups. As a
result of the City's reduced funding, the VCB feels that it can no longer develop a special
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Council Agenda Report-Change to VCB Work Scope
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focused marketing program for these groups. However, it will continue to target these types
of groups as part of its regular group marketing program.
2. The PCC was very concerned that the VCB was not expending enough effort on marketing
the Performing Arts Center, and included a particular emphasis on doing so in the work
scope. The VCB pointed out that as a county-wide agency it could not agree to promote
one facility above other locations. A compromise was reached to maintain language which
speaks to including the use of the Performing Arts Center as a potential conference site in
the work scope,but to delete the language`with particular emphasis on".
3. As part of its original proposal to the PCC, the VCB spoke of creating a new off-season
advertising campaign for the months of winter which would encompass ideas such as
special discounted visitors' packages. This campaign was included as part of the contract
work scope. Again, because of the reduced funding from the City, the VCB feels that it
does not have the staff to create a new advertising campaign. However, the VCB was
willing to accept language which includes a work focus on trying to fill rooms during the
months of September through March.
4. The PCC had requested that the VCB provide it with monthly reports similar to those
provided by the Chamber of Commerce and Barnett, Cox & Associates. Additionally, the
PCC had requested that those reports be broken down to show data specific to the City, as
well as presenting county-wide information. The VCB's regular reporting system is set up
on a county-wide basis, so the City data must be manually extracted, which is time
consuming. The VCB has requested that it be allowed to report county-wide information
monthly, and specific City data only on a quarterly basis.
A legislative draft of the previously approved Scope of Work indicates the changes requested by
the VCB. (See attachment.)
FISCAL IMPACT
There is no direct fiscal impact to the requested changes. With the revised work scope in place, the
level of service from the VCB remains about what it has been in the past. However, the changes do
constitute some reduction in service over what was originally approved by the Council, which
could potentially reduce growth in the City's transient occupancy tax (TOT). It is very difficult to
quantifv what that impact might be.
Attachments
Legislative draft of proposed changes
PCC minutes of July 9, 1997
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Scope of Work
1. Contractor will maintain an office suitable for the conduct of a visitors and
conference bureau. This office shall be open during normal business hours to
facilitate contact with conference representatives.
2. Contractor shall employ personnel qualified in visitors and conference bureau
administration.
3. Contractor shall conduct a visitors and conference bureau on behalf of City as
outlined below or as may be modified from time to time by mutual agreement
between the City and the contractor.
4. The program to be conducted by the Contractor shall include,but not be limited
to,the following:
a) Developing direct sales efforts to attract group business and conferences.
Major markets would include Los Angeles, San Francisco, Sacramento,
Bakersfield and Fresno:.—Aiww4eewrwiRincludina targeting corporate and
incentive groups.
b) Attending and representing San Luis Obispo County at those major travel and
sales shows that directly impact our targeted market areas during the contract
time period.
c) Coordinating scheduling for potential conferences with individual properties
in San Luis Obispo County, includina the use of
the Performing Arts Center.
d) Developing new, coordinated countywide sales materials and brochures to be
used in the marketing program,with care being taken not to duplicate
materials developed by the San Luis Obispo Chamber of Commerce or the
City's advertising firm.
e) Creating and implementing a coordinated and planned marketing campaign,
stressing the benefits of the San Luis Obispo area as a destination for visitors,
I including a mew-focus for the months of'`'~••••- bar T....,,.. be
and i hHay. September through March.
f) Submitting monthly reports on the progress of the VCB to the City's Project
manager and the Promotional Coordinating Committee(PCC). Reports will
contain information on countywide activities and,on a quarterly basis, a
breakdown indicating those items which specifically benefit the City of San
Luis Obispo.
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g) Assuring the 966cess of the World Association of,Syinphonic Bands and
Ensembles(WASBg) conference in 1999 without additional.fihancial support
from the City..
h) Acting.as the county Film Commission'to attract film business-to the area.
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changes in the economy and how much by promotion, for example. Ken then presented a
worksheet which demonstrated how many additional motel/hotel rooms would need to be filled and
how much purchasing must take place to provide TOT and sales tax revenue equal to an annual
increase of$35,000. (See attached worksheet.) After answering a number of different questions
from the PCC on City revenue sources and how his worksheet was developed, Ken excused himself
and left.
6. SCOPE OF SERVICE FOR VCB CONTRACT
Staff explained that after Council had approved the Scope of Service for the VCB contract Jonni
Biaggini had indicated that the VCB would have difficulty with some of the items in the scope. Staff
met with Jonni and developed some possible compromise language which was presented to the
PCC. After staff explained the reasons for the changes requested by Jonni,the PCC voted to accept
them.
On a motion by Bill Pyper, seconded by Sandy Baer, the PCC unanimously approved
recommending the proposed changes to the Scope of Service to the Council.
7. REPORT ON HIGHWAY 101 SIGNS
Staff reported that the project manager is waiting for the contractor to submit all his insurance
information so the contract can be signed and the prejob conference can be scheduled. He
believes that should be happening within the week. The PCC's staff member will be invited to sit in
on the prejob conference.
8. REPORT FROM CHAMBER OF COMMERCE
Jennifer Best distributed the Chamber's report at the meeting. She passed around a letter which had
been received from a boy requesting information on San Luis Obispo which she thought the PCC
would enjoy reading. Jennifer reported that new media sources are beginning to respond to some of
the information she has sent out. For example, she has been contacted by a writer for Jewish
publications who will be coming to San Luis Obispo in August. On June 27"' information about the
SLO and EZ Access Guide was included on the MSNBC web site. The Chamber is getting good
responses on the Guide. Jennifer passed copies out to the PCC. She will promote it in specialty
magazines. Jennifer also distributed a copy of"Merging Times"which has a very nice article about
the Guide.
9. REPORT ON MARKETING
Maggie Cox reported that the ad in the LA Times which contained the listing of hotels/motels has
generated over 700 responses. Maggie met with the sales representative from Via Magazine
(formerly Motorland) and is hoping that the City might be able to participate in a co-op ad in the
magazine in the future. She talked about the direction she received from the marketing
subcommittee to explore vertical marketing partners like Amtrak or the airlines. She will also be
working on outreach to people who have responded to other City ads in the past. She also showed
the transit rack card which has been developed by the Tourism Council and indicated that she hopes
to use it as part of the fulfillment package. Finally, she briefly explained the billing format used by
BCBA so that the PCC will be better able to understand her bills.
10. REPORT FROM VCB
Lynn Latronica reported in the absence of Jonni Biaggini. She went over the VCB's sales activity for
the year. 74% of all conferences booked this year were in San Luis Obispo. The VCB has already
gotten responses to the OWAC event. Articles mentioned the City even though they mostly talked
about coastal locations. The VCB will be doing a golf writers tour soon. Lynn believes that golf
should be a good off-season market for people from cold weather states.
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