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ere .oF SAN BERNARDt)O - REQUFjT FOR COUNCIL ACOON
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" From:
Date:
6-15-87
Subject: Proposal to contract with the San
Bernardino Area Chamber of Commerce
for the purpose of establishing a
Convention and Visitor Bureau,
(l"lfI
Mayor Evlyn Wilcox
Dept:
i~ayor' s Offi ce
Synopsis of Previous Council action:
Recommended motion:
Approve in concept contracting with the San Bernardino Area Chamber of Commerce
for the purpose of establishing a convention and visitor's bureau and refer
budget options A, B, C, as proposed in attached request to the Council's Ways
and Means Committee for analysis and recommendations,
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Signature
Contact person:
Mayor Evlyn Wilcox
Phon8: x5051
SupportIng data attached:
Yes
Ward:
FUNDING REQUIREMENTS:
Amount:
(To Be Determined)
Source: (ACCT, NO.)
(ACCT, DESCRIPTION)
Finance:
Council Notes:
1S.0262
,
Agenda Item No,
S-I
\ CICt 'OF SAN BERNARDOO - REQUOT FOR COUNCIL AC:JoN
STAFF REPORT
Analvsis:
1.
Ordinance 2811r approved
transient occupancy tax.
reads as follows:
4-11-67, established the
Section 14r page 8 of 281l
"All taxes and penalties paid to the city of San
Bernardino pursuant to the provisions of this ordinance
shall be placed in a special fund or account and shall
be expended only for the purposes of promoting or
advertising the CitYr attracting visitors and touristsr
establishing a convention and cultural center and
related purposes."
2. Ordinance 3560, dated 3-1-76 deletes the provision that
all taxes and penalties "shall be placed in a special
fund or account."
3. Ordinance MC-284, dated 6-29-83 eliminated the
restriction that "all taxes and penalties paid shall be
expended for promoting and advertising the City ------
etc."
4. Ordinance MC-296, dated 8-3-83, set the tax at 8%
effective 8-1-83.
The transient occupancy tax was increased from 6% to 8% in
August of 1983 for the purpose of providing adequate revenue
to the General Fund for the '83-84 fiscal year. Revision of
MC-284, which eliminated the restrictions placed on the fund
was necessary to allow the Mayor and Council to increase the
tax without electorate approval.
1986-87 projected revenue from the occupancy tax will top one
million dollars.
A recent request was brought to the Mayor and Council to help
fund the American Legion Convention in San Bernardino in June
of 1987 which was approved (approximate amount of $9,000).
The statistics that supported this request showed that the
City of San Bernardino would benefit financially by having a
convention of this size in the City. The projected revenue
estimates for the City were $65,000 which included a
combination of occupancy tax revenue and sales tax revenue.
If a Convention and Visitor Bureau would be successful in
attracting four or five major conventions to the city of San
Bernardino on an annual basis, the financial assistance from
the City to the operation of the Bureau, would more than pay
for itself and return a profit to the City.
If economic diversity to enhance the revenue for the City is
75-0264
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an objective of the CO~il, then the ~tab1ishment of a
Convention and visitor Bureau would be warranted.
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It is the Mayor's recommendation that a Convention and
visitor Bureau be established and that the City provide
financial assistance to this operation in order that a
continued effort can be made to expand the economic base of
the city and draw revenues into the city from outside
sources.
(Reason for Supplemental Agenda Placement for 6/15 meeting.
To place this item before the Mayor & Council for
consideration during the budget process for fiscal year 1987-
88. )
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ACCREDITED
0"'_0 O. COMMUU
SAN BERNARDINO AREA CIIAMBER OF COMMERCE
546 W, 6TH 5T, . P,O, BOX 658. SAN BERNARDINO, CA 92402 . (714) 885-7515
June 5, 1987
Mayor Evlyn Wilcox
Members of the Common Council of the City of San Bernardino
300 N. "Oil Street
San Bernardino, CA 92418
Dear Mayor Wilcox and Members of the Common Council:
Following several months of investigation and study the Board
of Directors of the San Bernardino Area Chamber of Commerce recently
approved the creation of a new Convention and Visitor Bureau.
The recommendation calling for the establishment of the Convention
and Visitor Bureau was formulated by a Chamber committee composed of
representatives of the Mayors's Office; Economic Development Council,
National Orange Show; hospitality industry and others.
The proposed Convention and Visitor Bureau would be housed in the
Chamber and as a division of that organization. The monies would be
maintained in a separate account and would not be co-mingled with Chamber
funds. '
The development of the Convention and Visitor Bureau program of work
would be formulated by a Steering Committee comprised of representatives
of the public and private agencies indicated above including a member to
be appointed by the Mayor.
In addition to the full time professional director of the Convention
and Visitor Bureau, the Chamber executive vice-president would also serve
on the Bureau's Steering Committee.
Enclosed are three proposed budgets, Plan A, Plan B and Plan C. Each
plan reflects the level of program and service which would be provided,
We have also provided you with additional information and various letters
of support for the proposed Bureau.
Plan A represents $200,000 or approximately 2% of the current Transient
Occupancy Tax; Plan B represents ly, percent of the tax and Plan C represents
1% of the Tax. On Monday Les Dabritz will provide you with supplemental
information including a description of the proposed Convention and Visitor
Bureau program.
It is proposed that the agreement between the City of San Bernardino
Convention and Visitor Bureau be for a three year period. The Bureau in
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turn would submit quarterly progress reports to the Council. Increases in
the Transient Occupan~y Tax and numbers of conventions held during this
period would serve as direct methods of measuring the progress of the
Convention and Visitor Bureau.
Although the initial funding request is being made to the City
of San Bernardino, it is anticipated that upon its official formation,
the Convention and Visitors Bureau would contact the County of San
Bernardino, Private Industry Councils of both the City and County of
San Bernardino and other public/private agencies for funding,
We believe that there is a demonstrated need for the creation of
a properly funded and staffed Convention Bureau. Therefore, we are
requesting that you and members of the Common Council endorse the
proposal to establish the Convention and Visitor Bureau as proposed and
contract with our organization to operate the new Bureau.
(" -fC:"-
Brian J. Simpson
President
enclosures
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CONVENTION & VISITOR BUREAU
A DIVISION OF THE
SAN BERNARDINO AREA CHAMBER OF COMMERCE
PROPOSED BUDGET PLANS A,B.C. - 1987/8B F.Y,
EXPENSES
2%-$200,ODO 11:;%-150,000 1%-100,000
Plan A Plan B Plan C
1. SALARIES & RELATED EXPENSES
1. Director $ 35,000 $ 30,000 $ 25,000
2. Executive Secretary 18,000 15,000 13,000
3, Group Health Insurance 4,500 1,000 3,000
4, Workers Comp, taxes, etc 6,000 5,000 5,000
TOTAL: $ 63,500 $ 53,000 $ 46,000
II. ADMINISTRATIVE & GENERAL
1. Audit 1,500 1,500 1,500
2, Office Supplies 7,000 6,000 5,000
3, Postage 10,000 10,000 5,000
4. Telephone 6,000 6,000 4,000
5, Organization Dues 2,500 1,500 500
6. Subscriptions 1,500 1,000 500
7. Insurance 3,500 3,500 3,500
8. Operations 6,000 6,000 6,000
TOTAL: $ 38,000 $ 35,500 $ 26,000
Ill. CONFERENCES, MEETINGS & TRAVEL
1. Auto Lease 3,600 3,600
2. Director's Expenses 1,800 1,500 1, 200
3, Conferences, Meetings 6,000 6,000 2,200
4. Exhibits/Trade Shows 4,000 4,000 2,700
5. Tra ve 1-Area 4,000 4,000 3.900
TOTAL: $ 19,400 $ 19,100 $ 10,000
IV.. ADVERTISING, MARKETING & PROMOTION
1. Marketing Survey 8,100 3,500. 1,000
2. Promotional Packages 4,000 1,500
3. Promotional Design Costs 4,000
4, Brochures 20,000 10,000 9,000
5, Folders 10,000 5,000 4,000
6, Name Badges 5,000 5,000 4,000
7. Advertising/Marketing 25,000 14,000
8. Misc printing 3,000 3,400
TOTAL: $79,100 $ 42,400 $ 18,000
GRAND TOTAL: $200,000 $150,000 $100,000
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CALIFOR~IA STATE
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U~IVERSITY'SA~ BER~ARDI~O
SCHOOL OF BUSINESS AND PUBLIC ADMINISTRATION. OFFICE OF THE DEAN
TELEPHONE 17141887-7531
The California
Stare UnIversity
June 1, 1987
Mr, Les Dabr i tz
Executive Vice President
San Bernardino Area Chamber of Commerce
P,O, Box 658
San Bernardino, CA 92402
Dear Mr, Dabritz:
I am very encouraged by the San Bernardino Chamber's efforts to estab-
lish a Visitor and Convention Bureau in our city, I can think of few
actions which wi II do more to improve the business cl imate. Not only
wi I I more tourism and convention business be attracted to San Bernar-
dino, but the activities of the Bureau will contribute substantially
to improving the image of the city, The brochures and pamphlets which
are a natural part of a Bureau's activities can be used to attract
businesses as well as conventions and tourists, More important, the
self-image held by residents of San Bernardino wi I I improve as they
learn, through the Bureau's activities, about the advantages of visit-
ing in our city,
More narrowly, if only tourism is considered, a Visitor and Convention
Bureau is a worthwhile investment. Tourism and conventions are the
second largest industry in the U,S, California has been a leader in
this industry and already has a very good reputation nationally and
internationally, San Bernardino can work from that general reputation
and be successful with a relatively modest Bureau and budget, I cau-
tion, however, that the tourism industry has become much more competi-
tive in recent years, States, cities and major properties have more
than doubled their promotional efforts since 1980, If San Bernardino
is not active (and effective), the city will lose much of the business
they now have,
I urge your Chamber committees, as they consider establishing a Visi-
tor and Convention Bureau, not to try to operate it on a shoestring,
A minimum budget, in my opinion, is in the neighborhood of $300,000 a
year, Professional staff, association memberships, creative promo-
tional materials, travel and market research cannot be effectively
carried out by volunteers, Volunteers wi I I always be a necessary
component of a successful program, but they wi II need to be backed up
by competent professionals and attractive promotional materials.
5500 UNIVERSITY PARKWAY, SAN BERNAROINO, CALIFORNIA 92407-2397
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page 2
June 1, 1987
Les Dabritz
I suggest that part of your support be provided through the City, The
benefits derived from such a promotion are broadly distributed
throughout the citizenry, making support by the City appropriate,
Also, the "bed tax" presently being collected by hotels and motels may
be viewed, at least in part, as appropriate for supporting such activ-
ities, The City can expect increased revenues from the bed tax, and
the general sales tax, as the Bureau's activities increase the number
of visitors to San Bernardino,
Please feel free to call on me if I can be of assistance in this
matt!lr,
S i ce r e,l y 'Ii / L
it7t(/ r / c'? L ~
av I d 0, Porter
Dean
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cc: Sam Henley
Bruce Varner
Anthony Evans
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May 28, 1987
The Honorable Mayor Evlyn Wilcox
City of San Bernardino
300 North D Street
San Bernardinor CA 92418
Dear Mayor wilcox:
We were very pleased to read of the progress in the sale
of the hotel. As the sale moves forward we must plan for
the operation of the Convention Center.
We havz been working with the Chamber of Commerce, California
State University and others to establish a Convention and
Visitors Bureau (CVB) in San Bernardino" The organization is
corning together and it appears the best method of operating
initially will be as a separate division within the Chamber
of Commercer but financially independent to prevent co-mingling
of funds. Long range goal (3-5 years) would be for the CVB
to become a separate agency operating independently in support
of the Convention Center and visitor activities.
In order to demonstrate to a hotel operator we are ready
to support the Convention Center operation we must fund the
CVB now.
The Chamber of Commerce will be approaching the Mayor and
Common Council with a plan to use a percentage of the
Transient Occupancy Tax (bed tax) to provide the initial
funding for the CVB.
We think a quality CVB will be able to generate the additional
revenue (TOT and Sales Tax) that will far offset initial
start up costs.
We strongly support the use of the City TOT for this purpose.
BRUCE D.
Chairman
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cc: Les Dabritz
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330 NORTH.O STREET. SUITE 420. SAN BERNAROINO. CA 92401. TELEPHONE (7141381-4327. TELEX 675-508