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HomeMy WebLinkAbout03/06/2001, C6 - USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) ENHANCED PROMOTIONAL FUNDS 1 t � council j ac En as RCPORt 'wmh..bc, CITY OF SAN LUI S OBIS PO FROM: Wendy George, Assistant City Administrative Office WV Prepared By: Shelly Stanwyck, Economic Development Manager .- SUBJECT: USE OF PROMOTIONAL COORDINATING COMMITTEE (PCC) .ENHANCED PROMOTIONAL FUNDS CAO RECOMMENDATION Approve the Promotional Coordinating Committee's recommendation to allocate $6,500 of Enhanced Promotional Funds for a unique marketing opportunity provided by the San Luis Obispo Symphony during its Spring 2001 East Coast Tour. DISCUSSION Background Several years ago, in conjunction with an increase in the Transient Occupancy Tax (TOT) from nine percent 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 February 14, 2001, meeting, the PCC heard a presentation from Sandi Sigurdson, Executive Director, San Luis Obispo Symphony, regarding a unique marketing opportunity for the City. Marketing Opportunity This spring, the San Luis Obispo Symphony will be touring the East Coast. In preparation for performances at Carnegie Hall and in Washington DC, with internationally known soloists, the Symphony has created an extensive full color marketing packet. This marketing packet focuses on both the Symphony and the City of San Luis Obispo. The promotional packets are going directly to known media contacts on the East Coast. The Symphony believes the City will directly benefit from this significant promotion of arts and culture in the City of San Luis Obispo. The Symphony requested $6,500.00 for the circulation of additional promotional packets. The proposal from the Symphony is not intended to help support their tour, but rather to provide additional promotional packets to media representatives. There would be a four to one match of Symphony funds to City funds. This proposal was well received by members of the PCC. They felt it would highlight the cultural tourism opportunities in San Luis Obispo to an audience rarely reached. Members of the PCC recommend pursing this unique opportunity L'b -1 Council Agenda Report—Report Title Page 2 FISCAL IMPACT A total of$50,000 of Enhanced Promotional money is budgeted to be spent over the 1999-01 fiscal years. To date $26,300 has been spent for specialized promotional tools, a visitor survey, seed money for the first annual Central Coast Book & Author Festival, and an advertising opportunity with American Express Destination Guide. Upon approval of this recommendation, $17,200 would remain for Enhanced Promotional purposes. ATTACHMENTS PCC minutes of February 14, 2001 A copy of the promotional packet is available in the Council Reading Room c �-a PCC Meeting Minutes of February 14,2uU1 Page 2 7. SAN LUIS OBISPO SYMPHONY PROPOSAL Sandi Sigurdson, Executive Director of the San Luis Obispo Symphony, presented the organization's New York and East Coast promotional package. The very complete package holds two CD's and full color marketing pieces. Ms. Sigurdson described this as a unique marketing opportunity. The Symphony will be performing at Carnegie Hall and in Washington DC this spring. At these performances two soloists with international recognition will also be performing. 300-500 people from San Luis Obispo are attending the New York performances.. The Symphony is asking for Enhanced Promotional funds because they have built their entire press package around San Luis Obispo, in addition to the Symphony. The packets are going direct to good, solid contacts. Ms. Sigurdson felt the City would directly benefit from this promotion. Nevertheless, the Symphony needs additional funds to help complete this promotion. $6,500 would be spent on additional marketing of the promotional packet. Ms. Hunt Roberts stated that at first she was concerned about the proposal as the sponsorship of a tour, which we have not done in the past, and which could open the floodgates. However, she felt that the promotional packet allayed her concerns and demonstrated promotional value for the City. Mr. Massey thought the value was good to the City and was fair to other groups.. Chairperson Rosen felt this fulfilled the objective of innovative promotional ideas. Ms. Sigurdson clarified that there is a 4 to 1 match for funds from the Symphony for City funds. Mr. Pyper made a motion to grant a request for $6,500 in Enhanced Promotional funds to the Symphony for this unique marketing opportunity. Massey seconded the motion. Under discussion, Mr. Newland did not think this fit the market, 95% of his hotel's guest are from California. Motion carried 5-1. 8. SAN LUIS OBISPO CHAMBER OF COMMERCE COUPON BOOK Ms. LaChap le presented the SLO Chamber Saver coupon book. Run of 5,000 books. Ad sales and advanced sales of books h been great. Sell to City for$5.00 each. Purchase from 1 to 1,000 by the City. One time use at location, punch the rd with a special punch. Locals and tourists are the market. Preferred customer program ould be possible with BC&A. Recommendation from conversion study to do something to encourage.repeat vi ' rs. Ms. Cox liked the concept and could do a lot with it. Participants on the card have to be Chamber members. my those in the book can sell the cards at their locations. Discussion of tracking - hard to tell benefits since can't r Ily tell who uses it. Could solve this with a "free offer"to user so that if he or she came into the Visitor's Center, they uld receive something, for instance a San Luis Pin. Need to track. this somehow to judge effectiveness. Committee members decided it would be best for the m eting subcommittee to meet and discuss details on how to track usage and encourage repeat visitors. Continue to ch meeting. 9. RESOURCE CONSERVATION Brief discussion about what can be done to conserve resources, both power d water. Industry experts said they offer voluntary programs in San Luis Obispo. Many hotel guests unfortunately pert certain things because of the costs. Conservation ideas will put in the next Tourism Newsletter by Ms. Cox. C � - 3