HomeMy WebLinkAbout05/05/1998, C2 - USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) ENHANCED PROMOTIONAL FUNDS councils
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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
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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
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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