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HomeMy WebLinkAboutR03-Redevelopment Agency o 0 AGENDA ITEM INFORMATION SUMMARY . C GENERAL INFORMATION: 'I Subject}Arwleu ~ J. tu~ ~r~~ Author()A lL,v.J ~ En3V21 Ward fEu ProjfICI Area o.u....- Budget Authority 0/ 0.3 Dale <6 ,t .-&(_ ~-7-~1 Adminislraliwt Daputy ManagerlSupenlisor CITY DEPARTMENTAL REVIEW: Dale C Oepl By Dapl By INFORMATIONAL DATA FORWARDED TO CITY DEPAR Sent to Mayor'S Office Council Ward Council Ward Council Ward Council Ward Department Department Committe. CommissioniCouncH Filing Dales Meeting Dales ro I, 0 I~ ~ ? Funding ReqUlremenlst 5~, ~ .iJb CLEARANCES: jl Dale ; ; ~(;;,~~jrr~';;f 7-~-~ o ~ ~=:Y/.2,dn., E-'-19 ~ D./ CIty Attamey ~ o Is;:] CIty Adminislralor By Date COMMENTS/CONCERNS: Include pel1lnent comments and concerns of offices and persons clearing the summary, such IS controversial Issues. time constraints and funding complications. Indicate dates when o action must be taken. -#.3 RDA -174 REV. 6-29-89 , o o o . Redevelopment Agency · City of San Bernardino ~ Norlh "D" SIJeeI, Fourth Floor " San Bomardino, Califcmia 92418 (714) 384-5081 FAX (714) 888-9413 ... In'r'rc;; " ; SieveD H. Du....tt Execulive Director AUGUST 7, 1989 CONVENTION & VISITOR BUREAU (CVB) Synopsis of Previous Commission/Council/Committee Action: 02-06-89 Commission approved a $15,000 contract with the Convention & Visitor Bureau (CVB) for Fiscal Year 1988-89. 04-17-89 Commission approved a $10.000 amendment to the Fiscal Year 1988-89 Convention Visitor Bureau (CVB) contract. (COMMUNITY DEVELOPMENT COMMISSION) c Recommended Motion: That the CommissIon authorize execution of the attached $30,000 Agreement for Professional Services with the San Bernardino Convention and Visitor'; Bureau for fiscal year 1989-90. Supporting data attached: YES Ward: FUNDING REQUIREMENTS: $30.000 Project: ALL Commission Notes: 1810R/AB/mv Agenda of: AUQust LlI. 1989 Item No.3 o ........ J , o o Redevclopment Agency o S T A F F R E P 0 R T This Is to request that the Commission authorize execution of a $30,000 Agreement for Professional Services with the San Bernardino Convention and Visitor's Bureau (CVB> for fiscal year 1989-90. Over the past year, the CVB successfully recruited the Renaissance Pleasure Faire and conducted other promotional activities of benefit to the City. The requested funding will enable the CVB to continue Its marketing and media outreach efforts to attract convention and tourist business to San Bernardino during the current year. The attached Agreement has been approved as to form and legal content by Agency Counsel and signed by the Executive Director of the CVB. The Redevelopment.Committee reviewed the attached Agreement at Its meeting on August 10, 1989 and recommended that this item be forwarded to the Commission for approval. o o o o o o o AGREEMENT FOR PROFESSIONAL SERVICES Agreement No. THIS AGREEMENT made and entered into this day of ,19 , by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN -- BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public agency, ("Agency"), and SAN BERNARDINO CONVENTION AND VISITORS BUREAU ("Bureau"): RECITAL 1. Purpose The purpose of this Agreement is to procure the services of the Bureau to develop a comprehensive program to coordinate, organize and/or sponsor tourist and visitor support services including the establishment and operation of a marketing program to attract and increase the number of visitors, tourist and convention activities to the City of San Bernardino. TERMS AND CONDITIONS 2. Mission Agency hereby retains Bureau to concentrate its efforts in attracting professional conferences, conventions and business meetings to San Bernardino, to provide services such as convention lead referrals, and to develop and make available printed marketing materials to entice and increase the tourism and visitors business. Bureau hereby accepts such responsibility as described herein. 3. Terms This Agreement shall commence as of the day and year first above shown and shall remain in full force and effect through June 30, 1990 unless sooner terminated as provided herein. 4. Bureau Responsibilities Bureau shall complete the work program described in Attachment I. 5. Compensation For performance of such services, Agency will pay Bureau an amount not to exceed the sum of $30,000.00, which payment shall constitute full and complete compensation for Bureau's services under this Agreement. Bureau shall submit to Agency invoices for Bureau's expenses during the Agreement term. Said invoices shall give the total of expenses incurred and shall also itemize the same in detail conforming to the program budget described in Attachment "II" attached hereto and incorporated herein. Invoices shall be approved by Agency's Executive Director or his or her designee. o o o o o 6. Right to Audit Agency or any of its duly authorized representatives shall have access to any books, documents, papers and records of Bureau and/or its subcontractors which are pertinent to the specific program hereunder for the purpose of making an audit, an examination, excerpts and transcriptions. All books, records and supporting detail shall be retained for a period of five (5) years after the expiration of the term of this Agreement, or any extension thereof, or for any longer period of time as required by law. 7. Audit Exceptions Bureau agrees that in the event the program established hereunder is subjected to audit exceptions by appropriate audit agencies, it shall be responsible for complying with such exceptions and paying Agency the full amount of liability resulting from such audit exceptions. Independent Contractor 8. Bureau shall perform the services as contained herein as an independent contractor and shall not be considered an employee of Agency or under Agency supervision or control. This Agreement is by and between Bureau and Agency, and is not intended, and shall not be construed, to create the relationship of agent, servant, employee, partnership, joint venture, or association, between Agency and Bureau. 9. Successor and Assignment The services as contained herein are to be rendered by Bureau whose name is as appears first above written and said Bureau shall not assign nor transfer any interest in this Agreement without the prior written consent of Agency. 10. Indemnification Bureau agrees to indemnify, defend (upon request by Agency) and save harmless Agency, its agents, officers and employees from and against any and all liability, expense, including defense costs and le9al fees, and claims for damages of any nature whatsoever, including, but not limited to, bodily injury, death, personal injury or property damage arising from or connected with Bureau's operations, or its services hereunder, including any workers' compensation suit, liability or expense, arising from or connected with the services performed by or on behalf of Bureau by any person pursuant to this Agreement. 2 o o o 11. Insurance Without limiting Bureau's indemnification of Agency, Bureau shall provide and maintain at its own expense.during the term of this Agreement the following program(s} of insurance covering its operation hereunder. Such insurance shall be provided by insurer(s} satisfactory to Agency and evidence of such programs satisfactory to Agency shall be delivered to the Executive Director of Agency or his or her designee within ten (10) days of the effective date of this Agreement. General Liability: A program including, but not limited to, comprehensive general liability including automobile coverage with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall be primary to and not contributing with any other insurance maintained by Agency, and shall name Agency and the City of San Bernardino as additional insureds. Workers' Compensation: A program including workers' compensation insurance, where necessary, with statutory limits. Failure on the part of Bureau to procure or maintain required insurance shall constitute a material breach of this Agreement upon which Agency may immediately terminate this Agreement. c::; 12. Compliance with Laws The parties agree to be bound by applicable federal, state and local laws, regulations and directives as they pertain to the performance of this Agreement. 13. Non-Discrimination In the fulfillment of the program established under this Agreement, either as to employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other terms of compensation, selection for training, including apprenticeship or participation in the program or the receiving of any benefits under the program, Bureau agrees not to discriminate nor to allow any subcontractor to discriminate on the basis of race, color, creed, religion, natural origin, ancestry, sex, marital status or physical handicap. o 14. Severability In the event that any provlslon herein contained is held to be invalid, void or illegal by any court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall in no way affect, impair or invalidate any other provision contained herein. If any such provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law. 3 o o o o o 15. Interpretation No provision of this Agreement is to be interpreted for or against either party because that party or that party's legal representative drafted such provision, but this Agreement is to be construed as if it were drafted by both parties hereto. 16. Entire Agreement This Agreement supersedes any and all other agreements, either oral or in writing. between the parties hereto with respect to the retention of Bureau by Agency and contains all the covenants and agreements between the parties with respect to such retention. 17. Waiver No breach of any provision hereof can be waived unless in writing. Waiver of anyone breach of any provision shall not be deemed to be a waiver of any other breach of the same or any other provision hereof. 18. Contract Evaluation and Review The ongoing assessment and monitoring of this Agreement is the responsibility of Agency's Executive Director or his or her designee. 19. Termination This Agreement may be terminated by either party by giving written notice at least five (5) days prior to the effective termination date in the written notice. 20. Notice Notices, herein shall be presented in person or by certified or registered u. S. mail, as follows: To Bureau: Executive Director San Bernardino Convention and Visitor Bureau P.O. Box 920 San Bernardino, California 92402 To Agency: Steven H. Dukett, Executive Director Redevelopment Agency of the City of San Bernardino 300 North "D" Street, Fourth Floor San Bernardino, California 92418 Nothing in this paragraph shall be construed to prevent the giving of notice by personal service. 4 o o o o o 21. Entire Agreement This Agreement with attachments constitutes the entire understanding and agreement of the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above shown. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Chairman By: Secretary BUREAU BY~ d~.i > k/. ~. Title: ~,-=-.~ ~:~z:. Approved as to form and legal content: B~~fr-j gen ounse Approved as to program: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Division Manager 1 683R 5 o o Attachment I o CONVENTION AND VISITORS BUREAU (CVB) WORK PROGRAM The Convention and Visitors Bureau (CVB) shall attract conventions, conferences, and business meet1ngs to San Bernardino by soliciting professional associations and fraternal organizations seeking pleasant and convenient sites for statewide and regional functions; coordinate facl11t1es, hous1ng, restaurants. and services to meet each organization's needs, and bring these visitors back to San Bernardino for future meet1ngs; provide aggressive tourism promotions; and solicit statew1de and regional conventions that generate days and dollars spent In San Bernardino. The CVB will provide convention lead referrals and tour group lead referrals and Information to attractions In San Bernardino and surrounding areas. o During the term of this contract, the CVB agrees to perform the following: · Formulate the budget and marketing plan. · Confirm two future bookings for major conventions and/or special events with 1.500 to 3.000 persons attending. · Confirm tour groups with 100-500 persons attending. · Book 1000 hotel nights. · Conduct specific marketing and media outreach to publicize the tourist and lodging facilities available In San Bernardino to accomodate the anticipated needs of those 200.000 people attending the Renaissance Pleasure Falre. Revised 07/28/89 l8l2J o o o o o o Attachment II SIlN IlBRNlIRlDR) <IlM!Rrl[II & ....uiL"uK> lQUWJ San Bernardino RedeIrelopnent lq!ncy Caltribution EXPENSES R:R FISCAL YFAR 1989-90 Expense/Description salaries Exea1tive Director Manager, GrC1lp sales & Marketing SUbtotal Marketing and PraDotioos J\dvertising SUbtotal 'It1mL Amoont $13,000 7,000 $20,000 $10,000 $10,000 530.000 o o o SAN BERNARDINO CONVENTION & VISITORS BUREAU 1989-90 MARKETING PLAN o o o o o KEY MARKETING OBJECTIVES AND STRATEGIES o o o o o o o OBJECTIVE - To establish San Bernardino as a prime site to host conventions, meetings and special events in Southern California. STRATEGY - The people ingredient. The Convention & Visitors Bureau staff is friendly, personable and attentive to requests for information as well as aggressively following up on sales leads. - Develop professional collateral material as an aid in the total sales effort, - Develop creative and impactful ads for the industry trade (association, convention & meeting planner, tour operator) and consumer magazines & newspapers. PLAN - Utilize the tag line, "The Heart of California's Inland Empire" in our advertising efforts wherever appropriate. - Produce a constant flow of quality, creative press releases which emphasizes San Bernardino's uniqueness. - Aggressively work the SMERF (Social, Military, Ethnic, Religious & Fraternal) segment of the convention & meetings market, due to the size of the local facilities. - Create special events that have a substantial economic impact upon the community in general and the hospitality sector in particular. o o o o o OBJECTIVE - To gain the reputation for being the best value in Southern California. STRATEGY - Establish a strong perception of value with an emphasis on quality as well as price. - Develop a community attitude that San Bernardino has the "Hospitality Personality!" PLAN - Constantly seek improvement in San Bernardino's image as the consummate host for conventions, meetings and special events. This can be accomplished by working with the hotels/motels, restaurants and other service businesses to increase their awareness of our "Hospitality Personality" especially among front line employees having substantial visitor contact. - Work with the local hotel/motel association and the restaurants to spotlight and honor an exemplary employee of the month. This would be someone who has front line visitor contact and best personifies friendly, efficient service. The Bureau would publicize this in the local press. o o KEY ADVERTISDlG OBJECTIVES o o o o o o o o KEY ADVERTISING OBJECTIVES - Create a positive image and awareness that San Bernardino is "The Heart of california's Inland Empire" by virtue of its reputation for hosting major events. - Clearly communicate the difference between San Bernardino and Riverside & Ontario: - Exciting, interesting and cultural events such as the Renaissance Pleasure Faire, Fan Fair West, Fiesta San Bernardino and the Rte. 66 Rendezvous concepts. - Unique facilities such as the California Theatre for the Performing Arts and the National Orange Showgrounds. - Create impactful and effective advertising messages: - Stress that San Bernardino has a "Hospitality Personality". - Do co-promotions with attractions, hospitality and travel related companies wherever possible. - Provide the most effective advertising within the'budget constraints. - Be attentive to changing market conditions that may indicate a change in our marketing mix. o c o o o TARGET MARKET o o o o o TARGET MARKET - Conventions, predominantly in the SMERF category (Social, Military, Ethnic, Religious, & Fraternal). - Groups through motor coach tour operators. - The general public in california, Arizona and Nevada who would be interested in visiting area attractions and special events. o o POSITIONING STATEMENT o o o o o o o o POSITIONING STATEMENT San Bernardino is differentiated from Ontario and Riverside by its hosting of major, successful special events in addition to meetings & conventions. San Bernardino has a "Hospitality Personality" which sets this community apart because of the outwardly friendly employees in the restaurants, hotels/motels and shops. The San Bernardino Convention & Visitors Bureau is charged with bringing primary dollars into the community through the attraction of meetings & conventions as well as the marketing & promotion of major special events that have the potential to draw from a large regional area and create a substantial economic impact to the area. o o o o MEDIA OBJECTIVES o c o o o o MEDIA OBJECTIVES - To create immediate and long term awareness of San Bernardino through an effective media mix. - Target media for conventions, specifically meeting planners. - Target media for groups, specifically tour operators. - To address media weight to coincide with special events. - To maintain media flexibility as market factors dictate. o c MEDIA RATIONALE/STRATEGY o c o o o o o o MEDI~ RATIONALE/STRATEGY A media mix of print and radio will be utilized to satisfy the stated objectives. NEWSPAPERS 1. Newspapers offer mass reach within individual markets and are an excellent source of audience for the travel minded target market. Newspapers are traditionally well read by older demographic groups. Even though newspapers provide a cross section of the market, careful selection can provide the largest percentage of the target market in print. 2. Newspapers have a local quality which is very important to the advertising message. They allow geographical targeting and flexibility both regionally and locally. 3. Newspapers offer a sense of immediacy and are perceived as a source of the most current information available. They also offer catalogue value and longer shelf life through the utilization of special travel and/or geographic sections. 4. Sunday editions of dailies will be utilized in our target markets. 5. Regional papers are: Arizona Republic, Fresno Bee, Las Vegas Review-Journal, Sacramento Bee, San Diego Union, and the San Francisco Chronicle among others. MAGAZINES 1. Magazines are very successful in reaching selected audiences. There are large numbers of magazines available which target specific age groups and special interest groups. There are geographic editions of many publications which allow specific area targeting with very little waste. 2. Magazines have a long shelf life. This results in increased reach which helps extend the overall effectiveness of the campaign. o o o o o 3. In order to target both special interest groups and general travel consumers the following types of publications will be used: meeting planner publications targeted to the California. market; travel publications which are targeted geographically to the automobile and airline traveller. RADIO 1. Radio will serve as a broadcast support for the print portion of the special events ~dvertising campaign. With print as the primary medium, radio is used to bring sound and frequency into the plan. 2. Radio will be utilized in regional markets and targeted specifically to a particular format for the most effective promotion of an event in conjunction with giving exposure to San Bernardino accommodations. . 3. In addition to running flights, whenever possible, complimentary tickets for the events will be used for additional promotion. Note: Many stati9ns in large markets will not usually do ticket promotions without also making a token buy. 4. Radio becomes a method of reaching people in a specific demographic category, dependent on format, and thus has added impact. o o o ADDENDUM o o c o o SIlR ~ <DM!MrIl:If " VI:iu\K) ~ IllDGE1' FCR FISCAL YFAR 1989-90 Expense/Description Salaries Exeo1tive Director Manager, O:nvention Sales (starts 1/1/90) Manager, Gralp Sales " Marketinq Mninistrative Assistant Reoeptia1ist/Secretary (starts 1/1/90) Subtotal DrplC1,lee Benefits (incls. insurance & retirement - 30\ of salary)" Executive Director Cl:lnvention Sales Manager Manager, GroJp Sales " Marketinq Mninistrative Assistant Receptionist/Secxetary Subtotal General Mninistrative Acoountlng Services Auto Allowance Cbnferences I)Jes & Publications Insurance Miscellaneoos Mninistrative and Operational Expenses Office ~pnent (canputer " printer, fumiture leases, etc.) Office Rent " utilities Payroll Taxes Office &Ipp1ies Postage TelE!(ia1e &Jbtot:al Marketinq and Pranotioos 1\dvertising Creative Des:Ujn, pOOtography, Layoot and Printing &ltert:ainDent Exhibits!Trade Shows Familiarizatim Tours Special Praootional Events Travel Subtotal 'lOTAL Annmt $ 52,000 20,500 28,000 22,880 8,320 $1 31 ,700 $ 15,600 6,150 8,400 6,864 2,496 $ 39,510 $ 2,950 4,800 8,000 8,000 3,400 3,500 11,500 24,000 12,140 3,500 8,000 14,000 $103,790 $ 38,000 50,000 5,000 5,000 5,000 5,000 17 ,000 $125,000 1400.000 o c o bL o o SlIN IBlNARDJK) <DM!Rl'lI:B & Vhu".l\Kj lUmAIJ IllIlGI':l' FCR FISCAL YEAR 1989-90 JUstificatim STAFJi'IKi & SAL1lRIES: 'D1e need for this level of staffing is nost apparent with the Renaissance Pleasure Faire relocating to the area, the Miss Teen USA pageant wanting to return this July, and the ent:nlraqing discussions with the Camtry Music Associatim for staging a Fan Fair west event in March, 1990. All of this activity is in additim to the tBsic sales & lIBrl<eting effort aimed at capturing nme ocnventions am cxnferenoes for san Ben1a%d1no. Executive Director's salary is on the low end ocmpared to other Bureaus in the area. In addition, t:esed m exerotive salaries with similar duties and responsibilities in businesses and other non-profits in the area, the salary is m the low efId. Riverside's Executive Director is in the low 50's; aocording to the Riverside Press-:&1terprise, the Executive Director lIIho just t:odt a similar position in Louisville, KY, was paid $107,000; the other cities such as san Diego, Anaheim, La1g Beach, etc., CuIl!,Jl=l~te their Exerotive Directors/Presidents at a level tBtween $80,000 and $115,000 per year plus perks and benefits. 'D1e new Chamber Executive Vice President will eam a base of arc:und $53,000 plus perfOIlllaJlOe bcnuses which OCJ1ld make the total .....I~.satim reach up to aramd $60,000. 'D1e Cbnvention Sales Manager's salary is tBsed on the Riverside Bureau's similar position (Director of sales). It is absolutely essential to retain a quality persm am hold on to them. 'D1e salary is oanpetitive. The Manager of Grcup sales & ~rl<eting position is already m board and is based on the Riverside Bureau's similar position and is canpetitive. 'D1e Mninistrative Assistant is in the middle of the scale as coopared to what the City pays a Senior Secretary. However, I am cmfident that we can locate a qualified candidate. Reoeptiarlst/Secretary handles telephone inquiries and respoods to all requests for infornation. Equal to $8/hr. EMPIDYEE mNEFrrs: All benefits are calcula~ at 30% of salary and is mid-range oanpared to other organizations am businesses which can reach as IIIllCh as 45%. Benefits include medical insurance, retirement for qualified full time enpl~ees thrwgh a SEP (Sinplified :&lpl~ Pension Plan), vacatim and sick leave. ~n"e of current Federal law cmoerning benefits, all enpl~ will receive the sane benefits as a percentage of their blse salary . c o o o o SllN IlI!RRARDIK) <XIM!R1'D:B a Y.bL"1Uf:j I!lREllD IllDGEll' FCR FISCAL YEAR 1989-90 Justificatioo (ccnt'dl GEmRAL AIMINISTRATIVE: 'nIe line itans in this category are predicated on supporting the efforts of the Executive Director and a staff of four. CX>st adjusbnents have also been included to take into aoc:nmt rising service costs and the start-up of a new offiCll,t. '!be operUng of an office at street level and adjacent to the <:bnventicn Center, City Hall and with ample parking has great cnvantages for the Bureau now and into the future. 'nIe office space under coosideratioo is appt'ClldnBte1y 1 ,500 sq. ft. and the cost is nost reasonable. Payroll taxes are calOJlated at .09\ of gross salary. MARKETING & PlOOl'IOOS: 'nIe advertising bJdget reflects a significant increase and will be higher in years to cane when not as III1Ch will be required to prcXiuoe printed collateral material. '!be initial costs inherent in ooing color separations and creative are a one time cha:tge unless the copy or photography needs to be radically changed. I project a minimal entertainnent l:uiget, however, I propose an cr:Jgressive association trade show presence and will need to put together an effective emibit. I plan on hosting associatioo meeting p1armers to sho.lcase san Bemardino with sE!l7eXal Fam trips. I also want to 00 one for tour q:erators. Sp!cial prcm:>tiooal events will be utilized to publicize an event once we have landed it and intrcrluce it to the oonmunity. '!be travel bJdget is fairly conservative given the fact that travel costs are risinq am three people will be travelinq on business. ~: 'Ibis bOOget is justified by the fact that this is a similar amoont to what our oanpetition is currently spending, if not less in sane areas. Further, they have a 7-10 year lead on us as far as collateral developnent am name recognitioo against our target narket. 'nIe urgency to aggressively move forward am not merely crawl is fairly evident in light of the Renaissance Pleasure Faire, the proposed Chmtry Music Fan Fair and other large special events the Bureau has either attracted or been in the forefra1t of prcm:>tion. '!be success on the convention side will be minimal at best withwt a professiooal sales staff on bOard a.1c:ng with the proper office suwort and sales naterials. All that has been aCXXJlillished to date is just a sample of what can be oone if the Bureau is allowed to move ahead in a realistic fashion.