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AGENDA ITEM INFORMATION SUMMARY
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C GENERAL INFORMATION: 'I
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Ward fEu ProjfICI Area o.u....-
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Adminislraliwt Daputy
ManagerlSupenlisor
CITY DEPARTMENTAL REVIEW:
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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:
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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
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. 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;; "
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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)
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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
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Redevclopment Agency
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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.
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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.
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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.
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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.
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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.
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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.
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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
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Attachment I
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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.
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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
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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
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SAN BERNARDINO CONVENTION & VISITORS BUREAU
1989-90 MARKETING PLAN
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KEY
MARKETING OBJECTIVES AND STRATEGIES
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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.
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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.
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KEY ADVERTISDlG OBJECTIVES
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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.
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TARGET MARKET
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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.
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POSITIONING STATEMENT
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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.
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MEDIA OBJECTIVES
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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.
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MEDIA RATIONALE/STRATEGY
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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.
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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.
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ADDENDUM
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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
<ert: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
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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 .
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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.
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'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.