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CI,. " OF SAN BERNARDI....D - REQUE..... r FOR COUNCIL AC1 .4N
From: James C. Richardson, Deputy City Su~Kt: Approval of Convention and Visitor
Administrator - Development Serv.' s Bureau (CVB) Plan of Action and
Dept: Administration Appointment of Board of Directors
Date: October 11, 1988
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Synopsis of Previous Council action:
9/8/88 The Mayor and Common Council referred the matter of a CVB
to Ways & Means Committee and Steering Committee members
were invited to attend.
10/10/88 The Ways and Means Committee of the Common Council reviewed
and endorsed the CVB plan of action and recommended members
for the CVB Board.
Recommended motion:
1. That the 18-month plan of action for the Convention Visitor Bureau
(CVB) be approved, to include funding of $28,920 appropriated from
the General Fund Operating Contingency, $10,000 appropriated from
the Parking & Business Improvement Fund balance, $10,000 applied
for from the CDBG Appropriated Reserve Account and recognize $3,060
of in-kind services form the SBACC, and
2. That Pat Caffery, Laurie Aldern, David Porter, Terri O'Connor,
Ann Harris, Alfredo Gonzalez and Bob Spivacke be appointed as
members and Jim Richardson and Director of CVB be appointed as
ex-officio members of the Board of Directors of the CVB.
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Contact person: James C. Richardson, Deputy City Phone:
Administrator - Development Serv.'s
Supporting data attached: Staff Report Ward:
5270
City-Wide
FUNDING REQUIREMENTS:
Amount: $66.980 in 1988-89
$15,000-RDAi
Improvement
Council Notes:
Source: Acct. No. General Fund 001
Improvemen t s Fund ~ 1>" 0 3" 0 _
Acct. Descri tion 28 920 _ 0 {I D'f Ob
ContingencYi $10,000-CDBGi $3,060~B~CC\I~ind~vices
$10.000 Parkin9 & Business Finance:~~ ~
Fund ., \ l:lO 98
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75.0262
Agenda Item No.
4tJ
CI.... OF SAN BERNARDI~_') - REQUEl ~. FOR COUNCIL ACT.. IN
STAFF REPORT
At the September 8, 1988, meeting of the Mayor and Common Council, a
request from the San Bernardino Area Chamber of Commerce (SBACC) for
approval of a Convention and visitor's Bureau (CVB) was considered and
referred to the Ways and Means Committee. The CVB Steering Committee
was invited to attend the Ways & Means Committee, as requested and a
reconstituted subcommittee was charged with developing a work plan and
the identification of funding sources. Several meetings were held of
the CVB Subcommittee and a final report was prepared on October 3, 1988
by Chairman David Porter. The subcommittee report is a part of the
minutes of the 10/10/88 Ways and Means Committee meeting minutes. This
report provides a detailed plan of action setting forth goals and
objectives, a work plan, proposed timelines, suggested names for a
board of directors, the economic impacts and funding sources for the
1988-89 and 1989-90 budget years. Additionally, a 9/16/88 letter of
support from the "Thursday Morning Group" and a 10/10/88 list of in
kind contributions for CVB from the San Bernardino Area Chamber of
Commerce.
During the October 10, 1988, meeting of the Ways and Means Committee,
the goals, economic data, CVB board membership and funding sources were
thoroughly reviewed. The Ways and Means Committee unanimously endorsed
the CVB plan of action and made nominations for membership of the Board
of Directors. Additionally, the Ways and Means Committee asked to
review the By Laws of the CVB Board of Directors and asked Deputy City
Administrator, Jim Richardson, to assist the Board in their
organizational efforts.
Subsequently, the Acting City Administrator asked that the reasoning
behind the funding sources be identified as outlined below:
Funding
Source
Amount
1988-89 1989-90
Reasoning
General
$28,920
$100,000
The transient occupancy
tax (TOT) of approxi-
mately $1,000,000 is
derived from a 8% tax on
hotel/ motel gross
receipts and the CVB
proposal would return a
portion of the TOT to
the industry.
Redevelopment Agency
$15,000
$ 30,000
The Convention Center
and most of the hotels/
motels are located in
RDA project areas and
funding would be used to
promote and expand the
economic growth of the
tourism industry.
75-0264
.
Request for Council Action
CVB Plan of Action and
Appointment of Board of Directors
October 11, 1988
Page 2
Funding
Source
Amount
1988-89 1989-90
Parking & Business
Improvement Fund
$10,000
Community Development
Block Grant (CDBG)
$10,000
Convention Center
Gross Receipts Tax
Cable TV (CATV)
$ 20,000
$ 7,500
$ 8,000
Reasoninq
This fund will used to
promote general retail
activities in the
district which includes
much of the central
business district that
will directly benefit
from increased tourism
activities.
One of the objectives
of the CDBG program is
economic opportunities
for low and moderate
income groups to be a
primary benefactor for
the hotel/motel and food
industries, thereby,
fostering job and
economic opportunities.
By agreement with the
Maruko, the City is to
receive a 1% of gross
receipts for convention
center from $1,500,000
to $2,000,000 and 2%
of receipts above
$2,000,000 each year,
which are proposed to be
spent for promotional
activities of the CVB.
The city's CATV opera-
tion would produce a CVB
video/slide presentation
which would be provided
on an in-kind basis.
.
Request for Council Action
CVB Plan of Action and
Appointment of Board of Directors
October 11, 1988
Page 3
Funding
Source
Amount
1988-89 1989-90
Reasoning
SBACC/CVB
Memberships
$ 3,060
$ 11,790
In-kind services for
rent and utilities has
been proposed by the
Chamber of Commerce
(SBACC) plus donations
and membership fees for
hotels, motels and
restaurants will show a
commitment from the
private sector, which
should grow in future
years.
TOTAL
$66,980
$183,410
Combined 18 months total
of $250,390 for all
sources.
The above noted revenues $250,390 ($235,540 with private sector sources
deducted) compares favorably with $235,000 in direct and indirect
revenues for the CVB program. Thus, in 18 months a successful CVB
program could realize nearly a complete (99.8') return on investment
(ROI) for the public sector funding. This ROI factor is regarded as
conservative when the full economic impact to the private sector is
considered as follows:
Source
Economic Impact
TOT
$ 1,125,000
$ 2,000,000
city Sales Tax
Multiplier
("rollover" )
factor
12,500,000
Full Economic Impact
$15,625,000
Thus, the "ROI" of $15.6 million in full economic impacts is many times
greater than the direct costs outlined.
The CVB proposal has been well documented and represents a unique
opportunity for a joint partnership between the public and private
sectors. The CVB proposal is recommended for approval by the Mayor and
Common Council. The approval of a plan of action and appointment of a
.
Request for Council Action
CVB Plan of Action and
Appointment of Board of Directors
October 11, 1988
Page 4
board of directors are the first steps in initiating the CVB. At a
future date, a contract for services will need to be prepared once the
CVB Board of Directors has been established. Additionally, as
discussed at the 10/10/88 Ways and Means Committee meeting, the CVB
will need to maintain its independence of the Chamber of Commerce while
being accountable to the City of San Bernardino through periodic
reporting on the progress of stated goals.
.~
S C. RICHARDSON,
eputy City Administrator-
Development Services
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