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HomeMy WebLinkAbout34-Council Office -- - ...../ CITY PROMOTION Mayor's Office Council Office 1987/88 Budget 1987/88 Budget 01 53601 021 53601 $13,955.46 $1,747.33 1988/89 Expend. $14,290.97 1988/89 Expend. $82.74 - ~l ..~~- : , . . I : ~ . . MEMORANDUM --- """" 'lltlL llH\tE tll14)\llfll.~; tlE?rlt.Rlllllll tIHIl ~" \Q'1~ j~" \ 3 fl!. 4: :3 \ ...-..; -' No. 118 Jan. 1884 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA DATE January 13, 1989 TO Councilman Michael Maudsley FROM Steven H. Dukett, Executive Director ~ SUBJECT FY 87-88 EXPENDITURES ON MARKETING AND PRoMoTIONAL PROJECTS This Is In response to your request for detail on the Agency's FY 1987/88 expenditures for marketing and promotion. The following is a breakdown of various projects designed and developed by the Agency. These expenses are exclusive of Agency personnel time. The approximate costs are rounded to the nearest hundred. ~ Promotion Marketing & promotion Promotion Asslqnment Approximate Cost "Big Spin dual $ 5,400 slide show" "Enterprise Zone $18,700 Film" (90t com- plete) Main Street $20,000 s 11 de shows & film. Gala InvItations and souvenIr programs. Purpose To be used as a promotional publIc information slide presentation showing the redevelopment process and how Trl City and South Valle projects had a spin-off effect from the Southeast Industrial Park project. To be used to generate community support for the Enterprise Zone. Portions were edited out and broadcast as Public Service announcements on Channel 24, the two-county pUblic broadcast station and cable access. To promote the Main Street project concept, generate community support and orient staff. ~14 ----- ," r., :Jurpose l1.2! As~nment Approximate Cost Promotion Main Street $ 9,000 To be used for a fund raiser Gala VIdeo and used as a promotional tool. MarketIng Centra 1 City $ 1,000 Marketing tool for the South film Central City South StUdy transfer to area. video Promotion Two Enterprise $ 4,800 To Inform the communIty Zone News 1 etters of the Enterprise Zone and to generate community support. Marketing Enterprise Zone $ 7,000 To be Inserted In the I nserts (one a Redevelopment Agency four-color two- marketing folder. page product; one a four-color four-page product) Marketing Handouts/Inserts $ 6,000 To market project areas Sta te College: and provide an economic four-color four- profIle of the City and page product inserted I n the Southeast Indus- Redevelopment Agency trial Park: marketing folder. four-color four- page product Economic ProfIle: two-color two- page product Promotion Redevelopment $ 2,700 A colored display wall map Project Area of project areas within wall map City limits, Including Main Street and Enterprise Zone boundaries. Promotion SBRDA Update $ 4,000 A quarterly publication Informing the public of redevelopment project area activity. Promotion Annual Report $ 9,000 An annual publication documenting Redevelopment Agency functions, historical development, photo-log and City and market area demographics. 2 31 In! ~ As~".fnment -. Approximate Cost~urpose General Photography Photography and $47,000 process: color, black & white, slides, trans- parencies, various size formats For In-house use, such as updates. development documentation, annual reports, board room display, marketing materials, advertisements, blIght In project areas as examples of need of code enforcement. For your Information, $20,000 of this amount was used for the Main Street program. Total $134,600 I trust that the above will satisfy your Immediate data needs. If you have any questIons, please feel free to call me or Mr. Moe Estevene. SD:ME:kp:1160S 3 351 . Cl'fV OF SAN BERN(:;IDINO - REQUEST FJR COUNCIL ACTION From: Councilman Michael Maudsley Dept: Council Office Due: January 12, 1989 Subject: Economic Development Council Synopsis of Previous Council action: None Recommended motion: To discuss future of Economic Development Council. ~ Contect perlon: Supporting dete eUeched: Phil Arvizo Yes Phone: Werd: 384-5188 N/A FUNDING REQUIREMENTS: Amount: N/A Source: (ACCT. NO.) (ACCT. DESCRIPTION) Finance: Council Notes: 15.0U2 Agenda Item NO.~. - ....'., ~January 11, 1989 ....., '. REPORT ON THE ECONOMIC DEVELOPMENT COUNCIL AND RECOMMENDATIONS FOR A NEW MARKETING PLAN FOR THE CITY OF SAN BERNARDINO History and Purpose - The San Bernardino Economic Development Council (EDC) was formed in 1974 for the purpose of aiding the communities within the City which had become or were becoming economically and socially disadvantaged. The EDC was formed to attract new industry development and retention of existing businesses that new jobs would be created and existing jobs and encourage the within the City so would be saved. The EDC operated a revolving loan fund for many years in order to carry out its primary purpose of job creation. This loan program produced marginal results and the EDC recognized internally that it would redirect its efforts towards more marketing and public relations activities. In 1987, the loan program was transferred to the City's Community Development Depart- ment and the EDC began its other programs. The Common Council approved the EDC's three-year marketing plan in 1987 utilizing funding from Industrial Development Bonds (IDB). A percentage of the IDB fees were the sole financial support for the marketing plan and staff operations of the EDC. The Common Council specified certain IDB projects that the EDC was supposed to receive a portion of the fees from. The City Council, in 1986, diverted a portion of the funds previously allocated to the EDC for the renovation of Fiscalini Field. The EDC was appar- ently never notified of this fact and it was not until 1988 that this fact became known and the EDC found out that its anticipated funding had been cut off and that it would be necessary to seek other methods of financing its activities. In 1988, the EDC began examining the possibility of obtaining its funding from private sources and conducted a study on its own to determine both the feasibility of such a process and what form that the organization should have. During this time I was appointed to the EDC by the Mayor and confirmed by the Common Council. It was my belief that to survive that the EDC should evolve into an organization with more communi- ty wide support and become more aligned with the entire business community rather than just a narrow group if it was to achieve acceptance and cooperation in fulfilling its marketing and public relations mission. I was familiar with some community marketing programs in California that had achieved substantial success and community support. with the Executive Director of the EDC I commenced a study to determine a course of action to recommend to the Mayor and Common Council for the marketing and public relations efforts for the City of San Bernardino. The Board of Directors of the EDC recommended that we contact the San Bernardino Area Chamber of - ~ - -2- -./ Commerce for their assistance in the planning process, because of their base of community volunteers and staff and their contacts with other communities that have successful public-private market- ing organizations. It was the EDC's belief that if any public-private marketing program broad-based community support and, understanding had to come from every ing none. its prior image was a problem, for San Bernardino must have more important, support and area of San Bernardino exclud- Orqanization - Starting in October 1988, the EDC Executive Director and myself talked with business leaders in the community, the San Bernardino Area Chamber of Commerce Executive Board and Board of Directors, representatives from other communities who had public-private sector successful marketing plans (i.e., K.R.A. Riverside), and consultants who specialize in evaluating the potential for a community to raise funds for such a venture. After all of these meetings, the following were developed for review and use by the Council in evaluating the proposal for a new Economic Development Program for the City of San Bernardino: (1) Purpose - The successor organization to the EDC would be an independent California not-for-profit organization that would fulfill the marketing and public relations mission and efforts of the City of San Bernardino. The organization would affiliate with other marketing organizations in both the public and private sector to eliminate duplication of effort and maximize and leverage resources. (2) Structure - The organization would be governed by an independent Board of Directors composed of representatives from public and private sector entities that are involved or concerned with marketing and public relations efforts for the City of San Bernardino. To organize this executive board, an interim task force would be formed from members selected from throughout the community. (3) Personnel - The Board of Directors of the new organiza- tion would define the personnel needs and objectives and recruit and hire the personnel required. The existing EDC personnel would continue the marketing functions and staff efforts during the transitional period. (4) Timing - Due to the shortage of funds and the potential for interim financing to continue a marketing effort of the City of San Bernardino the organization would proceed at once. (5) Organizing Agencies - It is recommended that the current EDC Committee, along with the Economic Development Committee of the San Bernardino Area Chamber of Commerce, continue this project in an expeditious manner. The Economic Development Committee of the Chamber has volunteered to assist in the formation of this new entity and be the coordinating and resource group to draw people from throughout the City to assist in this effort. - -3- ........ ~ '""" (6) Funding - CUrrently, the EDC has reduced all activities except following up on leads and referrals to extend its resources. The EDC, under its current funding, will be able to operate through March 1989. In May of 1989, the City will receive its share of the IDB funds for the Highland Hills development project. The city agreed to extend the period of time for the IDB funds to be used for this project, and the Community Development Department was able to secure a firm agreement for the payment of these funds for this date regardless of the status of the project. The funds specif- ically designated for the EDC by previous action of the Mayor and Common Council equal $189,000. Because of the lead time needed to establish this new organi- zation I would recommend that the current EDC administrative budget be paid by a loan guaranteed by this May IDB funding. Additional- ly, the funds necessary to do the study to determine the amount that might be generated by a fund raising effort for marketing activities for the City should be paid from this same loan. I have not been able to identify any additional source of funds. The funds that EDC is due to receive in May would be sufficent for these purposes as well as be a substantial commit- ment toward the City's participation in a pUblic-private marketing effort. (7) Continual Funding - Several communities in California and the nation have developed public-private partnerships for specific needs for their community. Of major concern always is how to fund such efforts; and with local government funds being very limited, the National Community Development Services Corporation was con- tacted by the EDC Director and myself for input on fund raising. NCDS is a private corporation that specializes in income develop- ment campaigns for non-profit organizations nationwide. NCDS has lead the campaign to establish the funding in several California cities, including Riverside, where they were able to coordinate fund raising efforts that generated 1.6 million dollars for the "Keep Riverside Ahead" group. The NCDS fund raising strategy requires that a feasibility study that costs $12,000 to $15,000 be conducted to determine how much can potentially be raised from the community for this specific project. Attached is a list of other cities that this organization has raised money in. The list includes both the goal as establish- ed by the feasibility study and the amount raised. The fund raising effort will be for a four-year commitment from the participants which has proved to be a workable and credit- able period nationwide. The raising of substantial amounts of private sector funds will enhance the program's effectiveness by both broadening the interest and commitment level from local business and reducing the potential drain on city resources. In our consultations with NCDS, they stated ratio on pledges was exceptionally high and pledge retention was the productivity of the that the retention the secret to the programs that the ---. I' ~ -4- .J funds were raised for. The time required for the study and fund raising efforts range from five to nine months. NCDS does not work on a percentage basis. (8) Current Marketing Efforts - During this very sensitive time in our City's history I recommend that the EDC staff be retained so that it can be the coordinating agency from the City in the development of a new marketing entity program to represent the City. The EDC staff should also be directed to continue its newsletter program that has generated many inquiries and referrals from businesses interested in locating in this area. These pro- grams will require a loan guaranteed by the May lOB payment to continue. I believe that any other marketing efforts should be funded when the new entity and its independent board of directors is established. The Common Council should maintain the discretion to fund any additional efforts as they see fit. It should be noted that the EDC currently has a marketing slide presentation about to be completed if funding is available and already possesses a state-of-the-art Voyager projector to use in marketing presentations. I have included as a of the EDC. Currently, necessary to fully set package. Summary - When I was appointed to the EDC it was my intent to see that it became a responsive marketing tool for the City of San Bernardino. During the second meeting that I attended I found that the EDC was not going to obtain their originally anticipated funding to accomplish that task. I have worked since that time to develop recommendations and an initial action plan to bring to you to start a program that has been very successful in other communi- ties. part the up a of this report the office inventory EDC possesses all of the equipment new entity with a complete office I believe that much duplication of effort and waste can be avoided in this effort by an entity that represents both the public and private sectors and that has a well defined purpose and goal. I have attached a proposed goal statement for discussion purposes and, although it certainly does not represent what the final documented form should be, I believe it does state sincerely what this community's marketing efforts and goals should reflect. The new structure is designed to avoid the problems of the past and to involve as many segments of this community as it can. The marketing organization will have well defined goals and pur- poses and will be clearly structured to show all of its members and the community at large what they are getting for their investment. It's simplicity and strength will be derived from its purpose ~~ -5- ,~-' of enhancing and maintaining the economic environment of San Bernardino and making us competitive with other communities that have used this formula by drawing on the energies of the entire community. The proposal has drawn an enthusiastic response from those that have worked on the initial research. However, it has also been received with much questioning and some cautious concern from others who believe that the City must make a priority commit- ment towards a program of this nature and because of the shortcom- ings of prior efforts. criticism and analysis of past programs is certainly justified so that we can use the experience at least to avoid errors in the future. It is in this City's best interest to work on this situation now. I believe that the pUblic-private partnership in solving community problems, such as promoting the economic growth of San Bernardino and enhancing the image of our entire City, is most appropriate. ~~~ MICHAEL MAUDSLEY Councilman, Fourth MM:jv Attchs. ~ CITY/CLlDIT GOM. ALIWlY. GA ~ Albany a.a.t>er of co...rce AIlNIS'l'OII. AL CalhoWl COllnty Cha.t>er of Co...rc. (let) (2nd) ATHENS, GA Athena Ar.. Chamber ot Coam.rce ATLANTA, GA Atlanta Chamb.r of Coam.rc. AUSTIN, TX Austin Chamb.r of Comm.rc. BILLINGS, MT B1111n9s Chamb.r of Comm.rc. BRISTOL, VA Br1stol Chamb.r of Commerce BROCKTON. IIA M.tro SOllth IUIlSED .-""""00.'. fl.O .UUon -....I fl.. .UUon 750,000 1.0 .UUon 800,000 3.8.illion 1.8 .Ulion 1.0.UUon 1. 3 .i1l10n 700,000 CEDAR IUIPIDS, IA 1. 8 .U lion Cedar Rapids Area Chamber of Co..erc. and Committee of 100 COLOIUlOO SPRINGS, CO Colorado Spr1n9s Econe.tc Development Council 4.0 ..Ullon COWMBIA, SC 1.8..Ullon Coluabla Are. Chamber ot Commerce COWMBUS, GA 2. 0 1111110n Columbus Chamber of Commerce DECATUR. GA .1.3..111ion Dekalb County Chamber of Commerce DENVER, CO 5.0..11110n Denver Chamber of Commerce DURHAM, NC 1.2 ..illion Ourhaa Chamber of Commerce ELYRIA, OM 2.2 .Ulion Lora1n COllnty Chamber of Co....erce GEORGETOWN. TX 500,000 Georgetovn Chamber of COllllerc. GRAIlD JUNCTION. co M..a COllnty Econeaie Dev.lop.ent Corp. HARRISBURG, PA Harri.bll~ a.a.t>er of Co..erc. HUNTSVILLl, AL Hunt.vill./Madieon COllnty . Cha.t>er of Co..erc. JACKSON, lIS Jackaon Chamber of Co....rea JOLIET, IL Will COllnty C.nter 'or Boon~IG DeY.lo~.nc KAIlKAKllB. IL Kankake. COllnty Eeono.ic Dev.lop...nt COllncil KNOXVILLI. TN (DII" Revalllation) Knoxville Chamber of Co...rce LAKELAND, FL LAkelond ChAmber of Comme~c. LEBANON, PI. . Lebanon County Indllstrisl Dev.lopllent Corp, LlIIA,OR Lias Ar.a Bcono.ie Dav.lopaent Corp. IIACON, GA Greater Hacon Chamber of Commerce (1st) (2nd) MEMPHIS, TN (Dues Revaluation) Memphis Chamber of Commerce 1. 5 .U 110n 2.0 .illion 2,5.UUon 1.' .illien 2.5.11110n 800,000 1.3+ .Ulion 800,000 3.8 .illion . 1.1 .Ullon 1.3+ .UUon 750,000 2.0 .Ullon . 1.8 million 2.1 mill ion, . 1.3 million 6.1 .dllion 1.2 million 2.2 .U11on 500,000 2.0.Ullon 2.0 .UUon 2.' .11Uon 1.1 .Ullon 3.+ .1111on 1.0 1111110n 150,OOo/yr 1.9 1111110n 1.25 IIUllon 1.2 .Ullon 1.. 1111110n 1.1 .illlon 400,OOO/yr 1.2 .1111on 150,OOO+/yr 2.. .Ullon 1.25 .11110n 1. 3+ .1111on 1.6 .Ullon 1. 1 .Ullon 400,Ooo/yr ~ .....-...... "-.....-...... ...... ......--...... NEW ORl.u.JlS, LA 2.2.1Ulon 2.5.1Ulon Clty ot New:"""teana --, Speclal Eve~.~ (19" Republlcan Natlonal conYen~n) NEWpORT, R.I. Newport County Chaaber of Co..eree NORFOLK. VA Hampton Roads Chamber of Commerce ONEID.... NY Oneida County Industrlal Development Corp. PAUoTKA. FL Putnam County Chamber of Commerce PANAMA CITY. FL Bay County Chamber of Commerce PHOENIX, AZ Phoenix Economic Growth Corp. PINE BWFP. AR Pine Blutt Chamber of Commerce PORTSMOUTH. VA Portsmouth Partnership RIVERSIDE. CA Greater Riverside Chambers of Commerce ROME, CA. Rome A.rea Chamber of Commerce SAVANNAH, CA Savannah Economic Development Partnership/Chamber SCOTTnOAU.:, AZ Scott&dale Chamber of Commerce SHRF.VEPO'RT, LA ~hreveport Chamber ot Commerce SIOUX CITY, II. Sioux City Chamber of Commerce SIOUX F"'LLS. SO Sioux Falla Chamber of Commerce SPARTANBURG, SC Spartanbur9 Area Chamber of Commerce (1st) (2nd) SpOKANE, WI. Momentu. '87, Inc. TACOMA, WI. Taco.a-plerce County Chaaber ot Co_erce (lat) (2nd) TEMPLE, TX Temple ChaDber of Commarc. WILKES-BARRE, PI. Commltt.. For Econo.lc Growth _ TI'\ J'lrr.l.5r.o..a.a_ 600,000 600,000 4.0 mlll10n 4.0 mUllon 1.0 lIilllon 1.2 million 500,000 800.000 1.0 milllon . 2.0 ml11lon 2.0 milllon 1.0 ml11lon 1.5 ml1110n 1.2 million 1.2 ml11lon 1.4 million 1.6 million 1. 0 milllon 1. 2 ml11lon 500,000 500,000 . , 1.2 mill ion 1. )5 mill ion 2.5 milllon 2.5 mill ion 1.5 million loB million- 1.4 0111110n 1.9 IIl1110n 2.27 ml1110n 2.5 IIlll10n .1.1 lIilUon 1.1 million 3.8 milllon 5.2 ml1110n 1.6 811110n 1.7 8Ullon 2.0 8Ullon 2.2 8Ullon 1.0 811110n 1.2 8Ullon 2.0 8Ullon 2.0+ 8Ullon Thls la only a partIal llstlnq of NCDS cllents 9/88 \ .. '-. '" ....... , ......,1 SAN BERNARDINO ECONOMIC DEVELOPMEN'l' COUNCIL OFFICE INVENTORY OFFICE MACHINES Xerox 6020 Memorywriter Electronic Typewriter Canon NP270 Copier w/2000 sheet bin & sorter Computer - Dynova 28610 Printer - Epson 850 Monitor - Samsung CM4531 EGA Monitor Mulitmate Advantage II Software Voyager Projector Cost New $1882 6471 2135 635 294 345 3537 Year (86) (85) (88) (88) (88) (88) (88) Estimated Value Now $ 1200 2000 2000 550 250 300 3500 FURIUTURE Computer Table 225 (88) 200 Conference Table wllO chairs 2713 (86) 2500 Executive Chair 434 (86) 350 Executive Desk ? (83) 300 Crecenza ? (83) 300 Rouz::d Table 225 (85) 125 Office lamp ? /83 ) 50 Secretary Desk ? /83 ) 100 Chairs (5 ) ? (83) 250 Fans (2) 80 (86) 60 Coffee Pot /Mr. Coffee) 15 (83) 5 Small Tables (3) ? (83) 15 Secretary Chairs, Swivel (2) 279 /85,88) 300 Cabinets Storage Cabinet /metal 2 door) ? (83) 100 Storage Cabinet (wood 2 door) ? (83) 75 File Cabinets 4 drawer (2) ? (83) 300 File Cabinet 3 drawer ? (83) 100 Total $ 14,930 .~........ ...,."- -- COUNCIL POR ECONOMIC PROGRESs OBJECTIVE: To create a recognized source of business development within the City of San Bernardino. To strengthen the business environment so as to better attract and retain businesses to the City. To broaden the area tax base, create and retain jobs, to integrate fully the efforts and resources within the City and County that impact the area. STRUCTURE: An independent not-for-prOfit corporation that will coordinate City efforts with the ROA, Chamber of Commerce, the Visitors and Convention Bureau, County and Federal programs and the promotions of individual dpvelopers. Promotional efforts will i~clude special event promotions and promotion of business development activities. GOALS: 1. C.E.P. should have expertise and emphasis on attracting and retaining small businesses. 2. Provide a resource that represents the City that is accessible to all businesses in San Bernardino. 3. Develop long and short range plans and goals that provide the City and C.E.P. members with a return on investment. 4. To obtain maximum leverage and resource effectiveness by coordinating the efforts of other area economic development programs. (How many newsletters do we need?) ~ . ....' "-" 5. Focus on the development of local labor skills to support business. 6. The common ground of all the City's business areas and that cf organized labor should not be ignored or neglected. 7. Actively support business retention programs including providing support to businesses for relocation. 8. New businesses and industry must be sought (health care suppliers, aerospace, etc.). 9. Assistance programs for small business such as Job Linkage, University and Valley College Seminars, etc. should be actively promoted. (Small business advisory services are available.) 10. C.E.P. must stand and work for reducing the lack of confidence acd trust of the citizens and small business owners with local gcvernment. 11. Establish a central repository of business properties available in the area and integrate resources into their community resources. 12. To develop guidelines about endorsing, promoting, or recruiting certain types of business that may cause the overall objectives to be impared. , .... ~, \.....,1 Communications Model Information Needs J INFORMATION ORIGINATION J C1YDEPAR1MENTS .Community Senices . Main Street, ete. RDA. DeYeJopment-Qriented Infonnation Multi-Media Presentations Detennine lhe Need of Internal or External Communications (INFORMATl DISTRlBUT ON INroRMAnON ION NEED) DISTRIBUTION CHOI~ Olamber of Coounen:e (Internal Communications) Internal Communications . (INFORMATION DISTRlBUTIONNEED) Planning Guidelines (00) (OR) '. EDC (BxtemaI Communications) to Local Busmesses (00) External Cornnumication to Broken and DeYaIopers . Media . Marketing Strat. Ftannlng and Implementation - - .. . , . SAN BEP'"""RDINO ECONOMIC DEVELOPMEI ,'COUNCIL .. . OFFICE OPERATION BUDGET PROPOSAL (6 months) Salaries Director Secretary $34,000 $22,000 $12,000 $34,000 Employee Benefits Director IRA Health Insurance Director Secretary Director Auto Expense $ 5,200 $1,000 600 1,200 2,400 $5,200 Payroll Taxes Office ($1364 per month) Mail Machine ($55.12 per month) Telephones ($81.71 per month) 4,000 9,005 1. Rent Telephone Insurance 1,500 Office Directors , Officers 2,100 750 1350 2100 Postage Office Supplies Conferences and Trade Shows Prospects/Travel Legal Accounting Dues and Subscriptions Pranchise Tax Board Meetings Operations Sub Total 300 1,000 2,500 1,000 500 250 75 10 100 $61,540 11/23/88