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HomeMy WebLinkAbout05/05/1998, C2 - USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) ENHANCED PROMOTIONAL FUNDS councils j acEnaa izEpout CITY OF SAN LUIS OB ISPO 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 $25,000 of Enhanced Promotional Funding for First Night San Luis Obispo to cover the estimated cost of marketing/promotion and to partially off-set the cost of artists'fees. DISCUSSION Background Several years ago,in conjunction with an increase in the Transient Occupancy Tax(TOT) from 9% to 10%, the City created an Enhance Promotional Fund to be use 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 fiinding from First Night San Luis Obispo, a new event scheduled to take place on New Year's Eve, 1998. What is First Night San Luis Obispo? First night is an annual, family-oriented celebration of the arts held on December 31st. It was started in Boston in 1976, and the concept has spread throughout the country. The cities of Santa Cruz and Monterey have held First Night celebrations for more than four years;and attendance now exceeds 30,000 in each city. The celebration provides venues to showcase local entertainment in the downtown area and offers a positive, non-alcoholic alternative to typical New Year's Eve activities. First Night San Luis Obispo anticipates the involvement of more than 60 performers in such non-typical locations as banks, churches, retail businesses and other commercial structures. The performances are presented from the afternoon until late evening,with a timed and orchestrated crescendo at a midnight grand finale. The event uses hundreds of volunteers, although the artists are actually paid a stipend. Funding is derived from grants, private contributions and the sale of buttons which allow entrance to all the venues. The theme for the first event is "Light Up the Night" and the anticipated attendance is 10,000. First Night San Luis Obispo Funding Request The total event budget estimated by the First Night San Luis Obispo committee is$94,500. Of that total approximately $12,000 is for marketing and promotion and $36,000 is for artists' fees. The committee made a verbal request at the PCC meeting for a grant of $25,000 in Enhanced Promotional Funds to cover the cost of marketing and promotion and partially to offset the artists' fees. In addition to the funding requested from the City, the committee estimates an additional $25,000 from businesses, $15,000 from other grants and $30,000 from the sale of buttons and merchandise. Council Agenda Report-Use of Enhanced Promotional Funds Page 2 PCC Recommendation All the members of the PCC are very supportive of the First Night San Luis Obispo celebration. They believe that not only will the event be endorsed and enjoyed by the local community,but that it has tourism potential, as well. Since the nearest similar event is in Monterey, it is likely that visitors from Santa Maria, Santa Barbara,the Central Valley and possibly even Los Angeles will be enticed to attend our celebration. Enhanced Promotional Funds are intended to be used for activities that will increase tourism, especially during the off season, and the First Night event would appear to be an appropriate use. However, several of the PCC members were concerned about the level of support being proposed by the First Night San Luis Obispo committee. Some members were reluctant to provide $25,000 in fiinding because the Enhanced Promotional Fund for 1997-99 is only $50,000 for the two years together. A total of $18,400 has already been allocated to the Downtown Association for its Farmers' Market Anniversary and video and to the World Association of Symphonic Bands and Ensembles for its conference brochure. Only $6,600 would remain for new promotional or marketing ideas during the next year and a half if the proposed grant to First Night San Luis Obispo were made. Other members were concerned that $25,000 was a significant portion of the event's proposed budget and wondered what the committee would do next year when the City would not be able to continue this support. Members of the First Night San Luis Obispo committee responded that it that if the event is very will done the first year, it will attract many additional attendees next year. More attendees will mean more buttons sold and that should make up the deficit. Based on the attendance at the First Night events in Monterey and Santa Cruz, it would appear reasonable that 5,000 more people might attend San Luis Obispo's event the second year and make up for the loss of City funding. However, the PCC stressed to the First Night Committee that should it fail to increase its button sales next year there would be no Enhanced Promotional Funds to provide a "bailout". On a split vote of four to three, the PCC recommended that the full $25,000 request be funded. Should the Council share the concerns of the PCC minority,two other funding options are proposed by staff under the Alternatives section of this report. FISCAL EWFACT The Enhanced Promotional Fund for 1997-99 is $50,000. To date, expenditures have been approved as follows: Enhanced Promotional Fund $50,000 Farmers'Market 15th Anniversary ( 7,000) Farmers'Market video ( 1,400) Proposed First Night Celebration2j 5.000 Remaining Enhanced Funds $ 6,600 ALTERNATIVES 1. First Night San Luis Obispo could be fimded at a lower level and conserve more Enhance Promotional Funds for new marketing and promotional ideas over the next year and a half. Three of the seven PCC members preferred a lower level of funding, although an exact amount was never discussed If the event were fimded at $20,000, for example, the City e_a-aa� Council Agenda Report-Use of Enhanced Promotional Fands Page 3 would still be subsidizing all the marketing and promotional expenses and $7,800 of the total estimated artists' fees of$36,000. $11,600 would remain in Enhanced Promotional Funds for future new marketing and promotional activities. 2. If the event were funded at$15,000, the City would subsidize all the event's marketing and promotion expenses and $2,800 of the artists' fees. $16,600 would remain for future new marketing and promotional activities. Attachments 1 -Memo from First Night San Luis Obispo Committee 2-Proposed First Night San Luis Obispo budget 3 -Minutes of the 4/8/98 PCC meeting L'-�3 DATE: April 2, 1998 TO: Promotional Coordinating Committee,City of San Luis Obispo RE: Enhanced Promotional Funding for FIRST NIGHT SAN LUIS OBISPO The previous presentation made to this body explained the FIRST NIGHT and outlined our intention and general parameters for the initial event. We have included a copy of our March 9, 1998, presentation and the applicable exhibits that were included with our presentation at that time. This package provides the necessary elements for an organization committed to the success of FIRST NIGHT SAN LUIS OBISPO. Our Mission is to provide a venue and to showcase local entertain-ment for families for a celebration of the old and new years in a central downtown location. This has proven in other communities to be most positive alterative to the typical New Year's Eve event The FIRST NIGHT concept is to utilize local area talent (60+ performers) in nontypical venues, such as banks, churches, retail businesses and other commercial structures. These performances are presented from afternoon until late evening with a timed and orchestrated crescendo at midnight with a grand finale. This event uses hundreds of volunteers, all artists are paid and finds are derived from contribution grants,as well as government and business contributions. In addition,buttons are sold to attendees at an inexpensive price to ensure affordable family participation. FIRST NIGHT began in Boston in 1976. Last year both large and small cities held FIRST NIGHT celebrations: Boston, Buffalo, Salt Lake City and Honolulu, as well as Santa Cruz, Monterey and Stockton. Santa Cruz and Monterey have held FIRST NIGHT celebrations for over four years and now exceed 30,000 attendees at each city. We expect to have 10,000 attendees at our initial FIRST NIGHT SAN LUIS OBISPO. As the FIRST NIGHT culture spreads, this event can grow to the size of Santa Cruz and Monterey's events. The theme for FIRST NIGHT SAN LUIS OBISPO this year is "Light Up The Night" Please watch for our web site. ATTACHMENT 1 Sheetl - FIRST NIGHT SLO BUDGET 1998 INCOME CONTRIBUTIONS BUSINESSES 25000 GOVERNMENT 25000 GRANTS 15000 65000 EARNED BUTTON SALES 30000 6000 x$5.00 FOOD BOOTHS 0 MERCHANDISE 300 ADVERTISING/PROMO 0 MISC. 500 INTEREST 100 30900 TOTAL INCOME 95900 EXPENSES PRODUCTION ARTISTS FEES 36000 60 x$600 TECHNICAL FEES 14000 COORDINATORS 300 SITES 3000 RENTALS 4000 TRANSPORTATION 2000 INSURANCE 5000 LICENSING 1500 MEMBERSHIP 900 SECURITY 1000 SIGNAGE 1500 VOLUNTEERS 2500 SUPPLIES 2000 73700 MARKETINGIPROMOTION DESIGN/PRINTING 3000 PROMOTION 6000 SPONSORS 200 BUTTONS 2000 PHOTOGRAPHY 1000 12200 ADMINISTRATION _ Pagel ATTACHMENT 2 Sheetl =r CONTRACT ADMINISTRATION 2000 RENT 300 . TELEPHONE 900 OFFICE:SUPPLIES 500 POSTAGE. 1800 EQUIPMENT RENTAL 100 MEETINGS .2500 MISC 500 8600 TOTAL-EXPENSES 94600 NET SURPLUS/DEFICIT 1400 BEGINNING BALANCE 0 ENDING BALANCE 1400 c/mydoclfiistnight98 Page 2 Sheet! INSURANCE EVENT LIAB INS. 1700 PREMISES INS 1700 WEATHER INS 1600 TOTAL 5000 MEMBERSHIP FEES FIRST NIGHT 300 CHAMBER MEMS 200 ARTS COUNCIL 400 TOTAL 900 Page 3 PROMOTIONAL COORDINATING COMMITTEE DRAFT REGULAR MEETING MINUTES April 8, 1998 Council Hearing Room, City Hall San Luis Obispo, CA 93401 1. CALL TO ORDER The meeting was called to order at 5:35 p.m. by Chairperson Sandy Baer with the following members present: Carol Ann Lockary, Mitch Massey,George.Newland, Bill Pyper, Denis Rio and Wilda Rosene. Wendy George served as staff. Also present were Christine Bragg, Dave Garth,Jonni Biaggini, Sarah Moore and Maggie Cox. 2. PUBLIC COMMENT There was no public comment. 3. APPROVAL OF MINUTES The minutes of the regular meeting of March 11, 1998, and the Marketing Subcommittee meeting of March 6, 1998,were approved as written. 4. REQUEST FOR FUNDING FOR FIRST NIGHT CELEBRATION Dr. Stephen Hansen introduced the First Night project briefly. He indicated that the committee now had a budget that he could share with the PCC and that he.was requesting$25,000 in funding. Wilda Rosene had questions about funding sources other than the PCC. Sandy.Baer wanted to know exactly what the money was to be spent for. Dr. Hansen indicated that the money would be spent for anything having to:do with either promotion or artists'fees and that he understood that.it could not be spent for staffing expenses. Wilda and Sandy asked if:First:Night subcommittees had been established and if they.are actively pursuing:theirresponsibilities. Dr. Hansen replied that that is the case. Barbara'Roche;who is also a board°member, offered the information that there are many artists.already.on board, and thatthe arts communky has-been very supportive. The Logistics Committee'is already-working on venues. The Logistics Committee will include City Police and Fire representatives. George Newland asked if the event sees itself as eventually:becoming:self-supporting,since the PCC would not be in a position to:recommend an ongoing.subsidyof$25,000. Dr. Hansen replied that it is very important to.make;thefirstyear sm .uccessful:so:that:people will come-back: In the future,they plan to bring;irnadditional reyenues�oyselling more buttons. On:a:motion by Bill Pyper, seconded by Mitch Massey,the PCC•approved;recommending,a.$25,000 contribution of Enhanced Promotional funds be given to First:Night. This recommendation will be forwarded to the Council. George Newland,Sandy Baer and Denis Riao:were opposed to the motion,based on the amount of funding requested. They all stated they were in favor of the First Night event. 5. PARKING AT CHAMBER OF COMMERCE VISITORS'CENTER UPDATE Bill Pyper distributed a letter he had drafted:for.the BlA Parking Committee and asked the:PCC to approve the letter. The letter requested that.all-parkin .apaces on the north side;of:the1000 block of Chorro Street be limited to times from 15=30 minutes. It.also;requested4hat two of the four spaces closest to Higuera Street on the southside'of the 1000b1ock of..Chorrobe 15-minute meter spaces. These changes would makeit easier for tourists to access the Chamber of Commerce Visitors'Center. ATTACHMENT 3