HomeMy WebLinkAbout04/07/1998, C-10 - USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) ENHANCED PROMOTIONAL FUNDS council '4�_�s
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CITY OF SAN LUIS OBISPO
FROM: Ken Hampian,Assistant City Administrative Officer
Prepared By: Wendy George, Assistant to the City Administrative Officer
SUBJECT: USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC)
ENHANCED PROMOTIONAL FUNDS
CAO RECOMMENDATION
Approve the PCC's recommendation to allocate $10,000 of Enhanced Promotional Funds to the
San Luis Obispo WASBE Organizing Committee (SLOWOC) to partially fund the registration
brochure for the World Association of Symphonic Bands and Ensembles (WASBE) Conference
scheduled for July, 1999.
DISCUSSION
Background
Several years ago, in conjunction with an increase in the Transient Occupancy Tax (TOT) from
9% to 10%, the City created an Enhanced Promotional Fund to be used to finance innovative
promotional ideas and provide seed money for new special events. Annually, the PCC makes
recommendations to the City Council on how this fund should be spent. At its last meeting the
PCC was presented with a request for fimding from the San Luis Obispo WASBE Organizing
Committee(SLOWOC)to partially fund the WASBE Conference brochure.
The WASBE Conference
As its name implies, the WASBE organization has an international membership made up of
individuals, institutions and industries interested in symphonic bands and wind ensembles as
serious and distinctive mediums of musical expression and cultural heritage. The organization
holds an international conference every two years. In 1995, at the urging of then-WASBE
President, Bill Johnson, Director of Bands at Cal Poly, the San Luis Obispo County Visitor's and
Conference Bureau (VCB) bid on holding the WASBE Conference in the City of San Luis
Obispo in 1999. The bid was accepted and the Conference is currently scheduled for July 5-11,
1999.
It is estimated that there will be as many as 1,500 attendees from more than 45 countries who
will visit the City over the seven days of the conference. They will bring with them their varying
international backgrounds and will join together for meetings, exhibitions and performances, all
located at the Performing Arts Center. In order to handle the funding and organization for the-
conference, the VCB created an organizing committee, the San Luis Obispo WASBE Organizing
Committee or SLOWOC, made up of representatives from Cal Poly, local businesses, the arts
community, the Chamber of Commerce and the City.
Council Agenda Report—Use of Enhanced Promotional Funds
Page 2
The SLOWOC Funding Request
After putting together its business plan, SLOWOC realized that it was about $30,000 short of its
funding needs. This shortfall is particularly critical because much of the conference expense
occurs up front, while the income from the conference that eventually comes to SLOWOC will
not be available until the conference is over. As a result, SLOWOC has asked the City, the
County and Cal Poly, the three agencies which will be most positively impacted by the
conference, to contribute $10,000 each toward conference funding. Specifically, SLOWOC has
asked that the City contribution be used to partially fund the final registration brochure which
will be mailed to 10,000 people worldwide. In addition,the Cal Poly Foundation has been asked
to handle cash flow issues related to facilities costs without charging SLOWOC any interest.
At this point, no response has been received from the County, but Cal Poly officials have
indicated that they are receptive to the request.
The PCC's Recommendation
The PCC carefully considered many aspects of the SLOWOC request before deciding to
recommend funding it. While it was very clear to the PCC that the WASBE Conference will
have many economic and cultural benefits for the City, the PCC was concerned as to whether or
not the request was an appropriate use of Enhanced Promotional Funds. The following
considerations led the PCC to believe that it would be proper to use Enhanced Promotional
Funds for this purpose.
• While the WASBE conference is not being held off-season, the VCB was able to schedule it
starting immediately after the 4th of July weekend. This week is usually the slowest in the
month of July. Furthermore, WASBE Conference attendees will stay an average of 5 nights,
mostly mid-week as opposed to the usual average of 2-3 nights mostly on weekends.
• The WASBE registration brochure, which will be an extended version of the initial brochure
(Attachment 2), can be viewed as a significant advertising piece for the City. It clearly
highlights the attractiveness of San Luis Obispo as a destination and will be mailed out to
10,000 individuals worldwide. SLOWOC has also agreed that the PCC will have an
opportunity for input into the brochure design.
• The WASBE conference is not a onetime "special event". Rather, it is the prototype for
future conferences of this sort. By showing that the Performing Arts Center can be utilized
for such a conference, and that the VCB can handle the logistics, SLOWOC will have created
a strong on-going marketing piece. Therefore, the PCC funding can legitimately be
considered"seed money" for a new marketing program.
Finally, the PCC addressed the fact that when the concept of the WASBE Conference was
originally presented to the City, the VCB clearly stated that SLOWOC would assume
responsibility for all fundraising. The City's role would be strictly ceremonial. Since that time,
based on an earlier PCC recommendation,the Council has already authorized spending $4,000 to
pay for the preliminary conference brochure.
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Council Agenda Report—Use of Enhanced Promotional Funds
Page 3
The PCC expressed its disappointment that SLOWOC was not able to meet its full funding
responsibility, and was very concerned that a pattern might develop of seeing Enhanced
Promotional Funds as "bailout" funds. At the same time, the PCC felt that it was critical that this
conference be "a model, not a case study". Given the commitments that have been made by
SLOWOC and the VCB, and the fact that a poorly run conference would reflect badly on the
City in the eyes of the attendees (many of the foreign conferences are government supported and
attendees are likely to assume this one is, too), the PCC believes the City has a vested interest in
assuring the success of the conference.
FISCAL EMPACT
The current Enhanced Promotional Fund was established in the amount of$50,000, to be used
over the two years of the 1997-99 Financial Plan. Expenditures, actual and proposed, are as
follows:
Enhanced Promotional Fund $50,000
BIA Funding Request ( 8,400)
Proposed SLOWOC Request ( 10,000)
Remaining Funds $31,600
ALTERNATIVES .
The Council could choose to fund a lesser amount than the $10,000 requested or provide no
funding at all. If SLOWOC is unable to make up the anticipated $30,000 deficit, one of the first
things what will be eliminated will likely be the availability of simultaneous language translation
at all sessions. This cost-cutting step was taken at the last conference and resulted in
unhappiness on the part of the attendees. SLOWOC feels that it has already reduced the budget
as much as possible, and that the only remaining cuts would have to be significant ones like
translation services.
ATTACE31ENTS
SLOWOC Request
Preliminary WASBE brochure(actual brochures available in the Council Office)
PCC minutes for 3/11/98
WASBE Conference Business Plan is available in the Council Reading File
San Luis Obispo
WASBE Organizing Committee -
The Ninth WASBE International Conference •July 5-11, 1999
March 2, 1998
Ms. Sandy Baer,Chairperson
Promotional Coordinating Committee
City of San Luis Obispo Administration
990 Palm Street
San Luis Obispo,CA 93401-3249
Dear Sandy:
The San Luis Obispo WASBE Organizing Committee is respectfully requesting$10,000 from the City's
Enhanced Promotional Funds to assist in the production of the final registration brochure for this one-
time event. We are also requesting support from the County and Cal Poly for other projects relating to
this conference, and are pursuing corporate sponsorships and a variety of other revenue sources as well.
In July of 1999, San Luis Obispo will play host to a world-class event that will benefit the City
financially, culturally and educationally. It is the 9'International World Association for Symphonic
Bands and Ensembles Conference,(WASBE)which will bring up to 2,000 people from 40 different
countries for one week.
There are many compelling benefits to this community accrued through the presence of WASBE:
Financial Benefits:
► Increased TOT revenues collected
► Increased sales tax collected
► Increased business in tourism related businesses
Cultural Benefits:
► 15 concerts in 7 days, including the world-class U.S.Air Force Band
► A proving ground for multi-use of the Performing Arts Center
Educational Benefits:
► 10 clinics and 5 workshops with premier conductors,brass and wind soloists
► Coaching for Cuesta and Cal Poly music students as well as local high school
musicians
Organizing Committee
In order to plan and stage an event of this magnitude,the VCB assembled a community-wide group of
business leaders who combine an interest in music and cultural tourism with the necessary managerial
skills to plan the city's largest international event to date. The San Luis Obispo WASBE Organizing
Committee(SLOWOC)has the responsibility of carrying out the conditions as set forth in the "Letter of
Agreement." The signing of this document sealed the relationship between the WASBE Council and
SLOWOC,detailing the services that are required to host the conference in San Luis Obispo. These
services include conference registration and housing,facility and equipment rentals, simultaneous
1037 Mill Street,San Luis Obispo,California 93401 Tel.-805-541-8000 F=805-543-9498 www.SwiLuisOb4oCowuy.com
ATTACHMENT 1 -/,o
language translation,and transportation of delegates during the conference. Key committee members are
as follows:
► William V.Johnson,Conference Co-Chair,Cal Poly Music Department
► Jonni Biaggini,Co-Chair,SLO County VCB
► Ron Regier,Performing Arts Center
► Sandi Sigurdson, SLO Symphony
► Cate Norton, SLO Mozart Festival
► Dave Garth, SLO Chamber of Commerce
► Barbara Roche, SLO County Arts Council
► Dee Neilson Simoes,Cal Poly Conference Housing
► Kathy Bach,Embassy Suites
► Peter Wilt,Cal Poly Theater
► Amy Kardel,Global Accent Translation Service
► Gordon Jackson,Holiday Inn Express
Financial Requirements
Staging an event of this magnitude requires substantial financial resources over the next 18 months. Due
to the requirements of the "Letter of Agreement,"projected expenses to produce the event are estimated
at$255,000. Revenues are expected to come from a combination of sources. Approximately 30%of the
revenues will be derived from delegate registration and exhibitor fees. Another 20%will come from
ticket sales to the 15 concerts that will occur during the week. The remaining revenues will come from
corporate sponsorships,advertising opportunities,grants,merchandise sales,and special fund raising
events.
A majority of the revenues will materialize just prior to or during the conference,yet 30%of the
expenses will occur one year to 18 months in advance of the event.
Benefits to the City
Financial
► Current average length of stay in SLO County is 2-3 nights. The WASBE Conference
will have an average room night stay of 5 nights,guaranteeing 100%occupancy in the
City of SLO. WASBE will generate higher sales tax revenues as visitors in multi-night
stays will dine out for breakfast,lunch,dinner,shop for souvenirs and attend local
events.
► San Luis Obispo can expect an increase in TOT due to increased room occupancy.
Further,while an inexperienced person might assume that the week following the July 4m
holiday is a peak travel period and already at 100%occupancy,seasoned lodging
professionals recognize a traditional,predictable and lamentable dip in occupancy rates
just prior to and immediately following major holidays. WASBE fills the gap.
► The 1999 WASBE Conference will attract up to 2,000 visitors from 40 different
countries to San Luis Obispo. With an average WASBE roomnight stay of 5 nights,at
$92 per person per day,tourism expenditures from this conference alone should total
$920,000. Much of this money will be spent in our restaurants and retail establishments.
► In reviewing the WASBE budget,please note that$255,000 will be spent directly with
local services and products. The overwhelming majority of these dollars are OUTSIDE
dollars infused into our local San Luis Obispo economy.
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Cultural
► 15 concerts in 7 days will be the highlight of the conference. Ensembles featured will.
come from 9 different countries including Switzerland,Brazil,Argentina, Sweden,and
Asia. The United States will be represented by the United States Air Force Band as well
as other professional and collegiate ensembles. All of these concerts will be open to the
public and tickets will be sold at an affordable rate to ensure broad-based participation
from our community as well as a well-defined target market.
► In order to maintain affordable rental rates for San Luis Obispo non-profit performance
groups,the PAC must be utilized to its full potential. The WASBE Conference will
effectively demonstrate the versatility and viability of the Performing Arts Center as a
convention site. Having established a successful track record with WASBE,local
convention planners and elected representatives will confidently promote and attract
additional conferences to San Luis Obispo.
► Having made a$32 million community investment in the Performing Arts Center, our
community is poised to reap the cultural and educational benefits of our world-class
Hall. WASBE will showcase the Performing Arts Center before a discriminating
international music association and bring the San Luis Obispo Performing Arts Center
into the patois of presenters across the globe.
Educational
► In addition to outstanding concerts featuring world-class ensembles,WASBE will offer
10 clinics and 5 workshops throughout the 7-day conference. The chance to be coached
by the premier wind players of the world offers unparalleled educational opportunities to
our local musicians. In 1996,the SLO Symphony offered a day-long Brass Symposium
and was inundated with applications from musicians from the San Fernando Valley to
King City.
► One thousand WASBE members in 40 countries around the world and 10,000 educators
and musical professionals on the WASBE mailing list will receive the promotional
packet on SLO WASBE'99. The high quality of the marketing pieces and the desirable
demographics of WASBE members will gamer international exposure for San Luis
Obispo as a premier travel destination.
► The California Office of Tourism and the California Arts Council are currently forming
a task force to examine the role of the.arts in destination tourism. Clearly,industry
leaders and government officials foresee a profitable union between the arts and
commerce. In aggressively supporting WASBE, San Luis Obispo will once again prove
to be a cutting edge leader.
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1• .r
Grant Request Activity
SLOWOC's request of$10,000 from the City will be used for the following purpose:
Final registration brochure,to be mailed to 10,000 people worldwide.
Due date:August, 1998.
Total brochure cost: $15,000
PCC Grants-in-aid request $10,000
(See complete budget attached)
The City of San Luis Obispo would be considered a major conference sponsor and the City's
logo and notation of sponsorship would appear in all appropriate promotional material, including
the fmal registration brochure.
Committee Contact Person:
Ron Regier,Performing Arts Center 756-6557
Sincerely,
San Luis Obispo WASBE Organizing Committee
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WASBE '99 Budget
ncor�7 9 9 8 9 - �990OQeffir! oEmil IIj
Delegate Registration @ 50%, 40,000 40,000 500 x$160.12 late reg.@$20
9xhibitor Booths @ 80°/, 38,400 38,400 40 x$1,200'4/5
•oncert Tickets @ 100% 56,000 56,000 14 concerts x$10.400seats
Corporate Sponsorship 40,000 40,000
Program Advertisers 10,000 10,000 20,000
Registration Brochure Advertisers 5,000 0 5,000
Eventsffund-raisers 5,000 1 5,000
Souvenirs/CD sales,etc. 5,000 5,000
Income from housing(Gullivers) 5,000 5,000
Other(VCB Annual Dinners) 1,800 4,500 6,300
Grants:
City of SLO PCC 4,000 10,000 0 0 14,000
Cal Poly 10,000 0 0 10,000
SLO County 10,000 0 0 10,000
0
0
Total Income $5,800 $34,500 $15,000 $199,400 $254,700
Promotional Brochure 4,000 4,000
Exhibit/Booth Registration 0
Program Advertising 0
Travel Expenses 1,350 1,350
Mayor's Reception 3,450 3,450
Mid-West Band Conference 1,050 1,050 2,100
WASBE Council mtg 7/98 7,500 7,500
Registration Brochure 1 15,000 15,000
Facility Administration Fee 5,000 5,000
facility Expenses' $35,501 35,501
Exhibitors exp/Vets Hall 2,500 2,500
VCB Administrative Exp. 3,000 3,000
Operations&Development Staff 20,000 20,000 25,000 65,000
Language Translation 15,000 15,000
Transportation 5,000 5,000
Gala Dinner 5,000 5,000
Speaker's Fees 5,000 5,000
WASBE Youth Band 3,000 3,000
Concert Marketing 5,000 6,000 11,000
WASBE Council 20,000 20,000
Percussion Equipment 3,000 3,000
Program Printing 20,000 20,000
Contingency 23,140 23,140 10.000)6
Total Expenses $4,000 $25,850 $48,550 $176,141 $254,541
Net $159
-
Pertonning Arts Center Rental 8,000 7 days
Staff 8,000
Ticketing 11,585 $75.14+$105'7+400'14'1.75
Cal Poly Theatre Rental 3,486
Techs incl.
Chumash Auditorium Rental 700
Techs ??7
Pvddrape 2,000 2,000
University Union Rental 300
Music Room 216 Rental 770
Music Room 218 Rental 660
Total Facility&Technical Costs $35,501
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Excerpt from 3 _/98 PCC Minutes
She has also been working with the writer of a guidebook called The 100 Most Desirable Towns in
America. San Luis Obispo has been chosen as one of those towns. She has provided
information on attractions, restaurants, lodging and business names and addresses to the writer.
She said she has received many media contacts based on the press releases she has sent out
concerning events in San Luis Obispo.
Christine Bragg then reported that she has completed a business-size card which contains the
Chamber's web site address and "They are going like hotcakes" She distributed a copy of the
card to the PCC members. She also pointed out that on the February Visitor's Center report the
number of visitors are down compared to this time last year. The decrease is based on two
factors: (1)the weather, which was sunny last year and very rainy this year, and (2)the closure of
Highway 1. She was pleased to note that the number of evening visitors has remained constant.
10. REPORT FROM BARNETT COX&ASSOCIATES
Maggie Cox reported that everything is going very well with the radio promotion in San Jose. The
disc jockey arrives this weekend and he is delighted to be coming. She will have a cassette of his
reports back to the radio station which she will be able to play for the PCC at its next meeting.
She also reported that the LA Times banner began its run this week. She will be receiving daily
reports on the number of hits it receives. She has a draft of the TOT newsletter,which is almost
completed and anticipates mailing it shortly. She has also been working with Dave Eddy of the
Telegram-Tribune who is coordinating the editorial content of Outlook'98,the special economic
forecast edition slated for release in late March. She was talking to him about placing a tourist
story in the edition.
11. REQUEST FOR WASBE FUNDING FROM WASBE ORGANIZING COMMITTEE
Bill Johnson provided a brief description of the WASBE organization. He stated that the last time
it met in the United States was in 1987. This is only the second time that it has come to the
United States. WASBE represents musicians, conductors, composers, and instrument
manufacturers from as many as 50 countries. By holding the conference in the United States in
1999, WASBE hopes to draw more United States members than usually attend. It is an
opportunity for members to hear performances and exchange ideas. U.S.bands will be very well
represented as performers.
Ron Regier then provided the history of how the City of San Luis Obispo brought the conference
to the city. Since last summer,the SLOWAC (San Luis Obispo WASBE Organizing Committee)
has been meeting more frequently. The committee has developed a business plan which deals
with the administrative and financial requirements of the conference. SLOWOC will get 50
percent of the conference fees, 80 percent of the exhibitors'fees and 100 percent of concert
tickets sold to non-conference attendees. When the budget finally came together,the committee
realized it was about$30,000 short in funding. SLOWOC does not feel the budget can be cut any
further without diminishing the effectiveness of the conference, so they are looking for other
sources of funding.
The committee has approached the City, Cal Poly and the County because these three agencies
have a vested interest in the event being successful. Specifically, the committee is asking the City
to provide cash support for the conference brochure. The committee wants this conference to be
a model, not a case study. They do not want to jeopardize the City's ability to attract future
conferences by doing a poor job. Staff then provided a summary of the history of the Enhanced
Promotional fund and outlined the criteria for its use. Sandy Baer stated that one ongoing
advantage of this conference is that it will show ways of using the Performing Arts Center as other
than just a concert hall in the future.
George Newland asked what would happen if the committee is not successful in getting funding
from the other two agencies. Ron Regier replied that the committee would have to cut back on
such things as simultaneous translation at all times, which is a cost item of$15,000. He indicated
ATTACHMENT 3
that translation was cut at the last conference and there were many complaints about it. George
asked what the highest need was out of the$30,000 shortfall. Ron replied that of all of the
priorities, the brochure is second priority.
Carol Ann Lockary agreed strongly with Ron's statement that the conference should not be a case
study, it should be a model. Pati Brown pointed out that this conference is a sales piece for future
conferences. In particular, the brochure is a marketing device that will be distributed to 10,000
people. Although, she requested that the PCC have input on what goes into the design of the
brochure if we are going to fund it. She wants to make sure that it would function not only as a
conference enrollment document but as a marketing piece for the City. Denis Rizzo pointed out
that the City should get as much"bang for the buck"as possible and asked if the City could have
a copy of the brochure mailing list for future use.
Jonni Biaggini pointed out that WASBE has its own web site linked to the VCB. The PCC asked
that it be linked to the Chamber's web site also. A discussion followed among the PCC members
as to whether or not the SLOWOC request fit the Enhanced Promotional funding requirement.
The feeling was that it is a seed event, seeding the prototype of a large conference. It is not a
special event. It is expanding the use of the Performing Arts Center and it showcases the
possibility for this use in the future.
Concern was expressed about the fact that the conference will be held in July. Jonni Biaggini
stated that the SLOWOC had no choice on when the conference would be held; it had to be held
in the month of July. However, they did select the slowest week in July,which is the week
following July 4'". It will be impacting the TOT mid-week in the slowest week of the month. The
PCC felt that it should not pass up this opportunity to market San Luis Obispo and the Performing
Arts Center to a vast international audience.
On a motion by Bill Pyper,seconded by Carol Ann Lockary, the PCC unanimously voted to
provide the SLOWOC committee with $10,000 to fund the brochure.
12. REPORT FROM THE VCB
Jonni Biaggini reported that thanks to the addition of funding from Pismo Beach, the VCB was
able to do a special spring advertising campaign in the Seattle and Portland areas. They are
offering golf packages, starting as low as $68. The advertising will alternate between the two
cities. The concept of advertising in the Pacific Northwest is a new market and pushing golf is
also new to the VCB. March 12'"will be the VCB's Meeting Expo Forum. The Expo will be an
opportunity to showcase local meeting sites so that meeting planners will not go out-of-county
looking for venues. The next trade show Jonni will be attending will be the Consumers'Show in
Sacramento.
Sarah Moore then reported that she had sent out 4,600 flyers as a result of the EI Nino promotion.
She has also set up a two-week radio promotion in Visalia with five giveaway packages. Package
#5 is almost strictly activities in San Luis Obispo. The radio station says that it has received about
30 calls each time an ad for the promotion is run. Sarah also reported that the president of the
WASBE organization will be in San Luis Obispo next month to conduct a concert. She will be
setting up a press conference with him when he arrives.
The LA Times recently did a co-0p promotion which features pictures of various visitor's guides.
Readers are asked to cut out the picture of the guide they would like to receive and send it in as a
request. San Luis Obispo County's guide received 450 requests, second only to San Diego and
ahead of San Francisco and others. Based on this success, Maggie is going to look at possibly
participating in the future. Jonni also reported that Mark Plotkin has contracted with Amtrak to
write a monthly periodical called'The Coast Starlight Tourist". There is an opportunity for co-op
advertising with San Luis Obispo, Paso Robles and perhaps other locations within the county.
Jonni will be looking to put together a co-op package to utilize this terrific opportunity.