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Home My WebLink AboutR30 EDAECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ORIGINAL REQUEST FOR COMMISSION ACTION From: Gary Van Osdel Subject: CONVENTION AND VISITORS Executive Director BUREAU BUDGET Date: November 10, 1998 Synopsis of Previous Commission /Council /Committee Action(s): On August 11, 1998 the Community Development Commission adopted the Agency's Budget for the Fiscal Year 1998 -99 with revisions, and referred the Convention and Visitors Bureau's Budget to the Redevelopment Committee. On November 9, 1998 the Redevelopment Committee recommended that the item be forwarded to the Community Development Commission. --------------- - - - - -- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission approve an Agency funding level of $250,000 for the Convention and Visitor Bureau's Fiscal Year 1998 -99 Budget, and that the Convention and Visitors Bureau's office rent be reduced by $13,500 for the fiscal year 1998 -99. Ilk Barbara Lindseth Gary an Osdel Ex cutive Director -------------------------------------------------------------------------------- Contact Person(s): Barbara Lindseth /Gary Van Osdel Phone: 5081 Project Area(s): All Ward(s): 1 - 7 Supporting Data Attached: Staff Report; Budget FUNDING REQUIREMENTS: Amount: $250,000.00 Source: All Budget Authority: Requested ------------------------------------------------------------------------------- Commission Notes: ------------------------------------------------ ------------------------------- GVO•BJL•2484A COMMISSION MEETING AGENDA Meeting Date: 12/07/1998 Agenda Item Number: i ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT Budget Convention and Visitors Bureau BACKGROUND On August 11, 1998 the Community Development Commission adopted the Agency's Budget for the fiscal year 1998 -99 with revisions to salaries and benefits, travel, and general consulting budget line items. The Convention and Visitors Bureau's portion of the budget was referred to the Redevelopment Committee with the allowance for the Bureau to operate at the same funding level as the fiscal year 1997 -98 until a funding level for the Bureau was adopted. The Bureau was requested to provide the Committee with a five year report on its activities, plus the Committee desired to review the Agreement between the Agency and the Bureau. As presented on August 11, 1998, the Convention and Visitors Bureau's requested budget (attached) is based upon a funding level of $322,000, which is the estimated revenues the City will receive from the Transient Occupancy Tax. The Transient Occupancy Tax is not received by the Agency, and as a result, tax increment is used to fund the Convention and Visitors Bureau. Due to Agency budget reductions in all areas, a funding level of $250,000 was proposed. RECOMMENDATION At the Redevelopment Committee meeting on November 9, 1998, the Committee reviewed the Bureau's report on activities, and recommended that the Agency provide the Convention and Visitor's Bureau with a funding level of $250,000 for the fiscal year 1998 -99, and that the Bureau's office rent be reduced by 50 %, or by $13,500, for fiscal year 1998 -99. It was also recommended that the Memorandum of Understanding between the Agency and the Bureau be reviewed. .C, l' u an Osdel Executive Director ------------------------------------------------ ---------------------------- GVO:BJL•2484A COMMISSION MEETING AGENDA Meeting Date: 12/07/1998 Agenda Item Number: R-3 0 i- REVENUES. SAN BERNARDINO CONVENTION and VISITORS BUREAU FISCAL YEAR 1998 -99 BUDGET FY 98 -99 FY 97 -98 97 -98 vs. % change Budget Budget 98 -99 20% of Projected TOT Collections (thru EDA) $ 322,000.00 $ 310,000.00 $ 12,000.00 3.73% Economic Development Agency Contribution - 90,000.00 (90,000.00) - 100.00% SBCVB Memberships 12,000.00 4,693.74 9,000.00 1,000.00 3,000.00 3,693.74 25.00% 78.70% Interest & Miscellaneous Income $ 338,693.74 $ 410,000.00 $ (71,306.26) - 21.05% Total Revenues $ (3,885.21) - 24.00% Subtotal * $ Salaries, Fringe Benefits and Taxes: 131,046.46 $ 172,943.14 $ (41,896.68) -24.23% Salaries* Employee Benefits* 9,436.01 9,436.01 18,671.06 $ (9,235.04) - 49.46% Retirement* Re Re 9,599.25 12,285.79 $ (2,686.53) - 21.87% oll Taxes* 12,302.27 16,187.48 $ (3,885.21) - 24.00% Subtotal * $ 162,383.99 $ 220,087.46 $ (57,703.47) - 26.22% o a i re'Rects un star y ona oi year 8,385.00 11,670.00 (3,285.00) - 28.15% Special Events General Administrative & Operating: $ 6,329.00 $ 3,889.50 $ 2,439.50 62.72% Accounting Services 11,400.00 16,860.00 Travel (5,460.00) - 32.38% Auto Allowances 225.00 50.00 700.00 175.00 350.00% Board Meetings Community /Employee Relations 1,000.00 700.00 $ 82,404.40 $ 300.00 42.86% Dues & Publications 6,255.00 5,437.34 (56,245.26) 817.66 15.04% Insurance 4,967.00 5,272.00 (305.00) - 5.79% Miscellaneous Administrative & Operational Expense,, 1,000.00 700.00 300.00 42.86% Office Equipment - Purchases & Upgrades 2,000.00 1,500.00 500.00 33.33% Office Equipment Maintenance & Service Agreement! 6,540.40 3,093.48 3,446.92 111.43% Office Equipment Lease Payments 7,350.96 8,751.24 (1,400.28) - 16.00% Office Rent 27,000.00 27,000.00 - 0.00% Office Supplies and Expenses 4,200.00 6,202.72 (2,002.72) - 32.29% ' Postage/Shipping 10,221.00 8,983.00 1,238.00 13.78% Taxes - Other 806.66 18,413.20 806.66 18,262.20 - 151.00 0.00% 0.83% Telephone Subtotal $ 107,708.22 $ 107,508.14 $ 200.08 0.19% Sales, Marketing and Promotions: $ 2 3,970.00 $ 19,690.00 $ 4,280.00 21.74% Advertising /Publicity Conferences 5,503.25 3,898.54 1,604.71 41.16% . Convention Services 2,000.00 4,095.00 3,500.00 3,060.00 {1,500.00} 1,035.00 - 42.86% 33.82% Entertainment Tradeshows 15,775.76 14,616.28 1,159.48 7.93% Familiarization Tours 2,400.00 6,775.00 (4,375.00) - 64.58% Membership Programs 1,685.00 1,270.00 415.00 32.68% Printing, Design, Photography, etc. 8,385.00 11,670.00 (3,285.00) - 28.15% Special Events 1,000.00 3,950.00 (2,950.00) - 74.68% Promotional Activities 3,052.72 1,650.00 1,402.72 85.01% Travel 15,095.80 10,487.08 4,608.72 43.95% Direct Mail 700.00 1837.50 (1,137.50) - 61.90% Subtotal $ 83,662.53 $ 82,404.40 $ 1,258.13 1.53% Total Expenses $ 353,754 74 $ 410 000.00 $ (56,245.26) - 13.72% Subtotal Expenses over Revenues $ (15,061.00) $ (0.00} Net Assets $ 15,061.00 $ - IM Total Expenses over Revenue $ (0.00) $ {0.00) The above is 2 Draft to be Adopted by the SBCVB Board of Directors for 1996 - 99. Draft 3:24 PM 5128198 1999 Route 66 Rendezvous Cash Budget vs. Prior Year Actual Expenses November 1, 1998 - October 31, 1999 INCOME Beer Gardens Burnout Contest Car Entries (projecting 2,400 entries) City Business Licenses Decorator & Power Commissions Exhibitor Spaces Revenue Golf Tournament Entry Fees (100 paid; 44 comped for sponsors) Golf Tournament other revenues (drinks, raffle, etc.) Golf Tournament Tee & Green Sponsors Goody Bag Stuffer Health Permits Ice Kid's Town (net) Poker Run Stops Rendezvous Club RV Parking SBEDA Contribution' Sponsorships - Local Business (under $5k) Sponsorships - Major Corporate ($5k & above) T -shirt sales (net) T -shirts (old) Vendor Insurance TOTALS LT-A 1999 Budgeted 1997 Actual 1999 Budget vs. 1997 Actuals 15,000 13,108 1,892 - 200 (200) 88,500 85,838 2,662 450 360 90 10,000 9,517 483 65,000 57,241 7,759 7,500 5,700 1,800 1,500 1,620 (120) 2,700 1,900 800 - 50 (50) - 45 (45) 700 513 187 5,000 4,534 466 3,250 3,250 - 12,000 9,500 2,500 - (20) 20 - 35,000 (35,000) 15,000 10,000 5,000 176,000 72,500 103,500 75,000 41,387 33,613 500 95 405 1,800 1,750 50 479,900 354,088 125,812 EXPENSES 1999 1997 Budget Budgeted Actual vs. Actual Accommodations & Entertainment - Celebrities & Media 3,000 286 2,714 Accommodations - Event Staff 2,500 2,233 267 Accounting 2,400 2,236 164 Advertising - Car Publications 4,200 4,188 12 Advertising - TV, Radio, Print 500 10,200 (9,700) Banner Expense 500 800 (300) Car Participants Dash Plaques 2,100 2,193 (93) Car Participants Shirts 12,500 12,469 31 Car Show Trophies and Awards 500 408 92 Celebrity Appearance Fees - - - City Business License 500 450 50 City Services (permits, trash, police, etc.) 40,359 1,935 38,424 Commercial/Promo Production 3,000 96 2,904 Community/Employee Relations 200 21 179 Computer Purchase /Upgrade /Repair 2,500 113 2,387 Computer Software Purchase /Upgrade (1997 - Repair) 2,000 1,615 385 Conferences 2,000 2,757 (757) Copier Lease - 3 months 1,100 Credentials (In -kind '98) - 647 (647) Crusin' Hall of Fame Expenses 2,500 2,148 352 DJ 1,800 1,800 - Embroidered Apparel (70 @ $20, 24 @ $25) 2,000 2,880 (880) Equipment Rentals 25,000 22,409 2,591 Exhibitor Sales Commissions 1,500 1,462 38 Fuel 100 36 64 Golf Tournament Awards & Prizes 200 - 200 Golf Tournament Expenses (green fees, lunches, misc. expns.) 5,100 5,100 - Ice Insurance - Event 10,000 8,976 1,024 Page t c Draft 3:24 PM 528198 Kid's Entertainment Kids Town Expenses (net under income) Legal Litter Removal & Post -event Repairs Contingency Masonic Temple Rental & Cleanup Mileage Miscellaneous Expenses Office Equip. Maint. Agree. Office Supplies Operations (Auto) Center - cleanup, supplies, etc. Phone Photography Pitney Bowes - Lease Planning meeting expenses Poker Run - Canopies, tables & chairs Portable Toilets (increase over'97; see Power - Event) Postage & Shipping Poster, Graphics & Design Power - Event, Exhibitors, Sponsors; (stage, bikerail, bleachers, toilets '97) Printing - Event Flyers, Envelopes Printing - Public Relations Program (incl. in advertising in 1996) Publicity (incls. professional fcc and incidcn!ol expenses) Rent - 30% Radio Communications Rentals Rendezvous Club Sales Tax Security ('97 included in City Svcs) Signage Sound System Sponsor Equipment & Supplies Sponsor Hospitality Sponsorship Recognition Staff (salaries, benefits, payroll taxes, etc.; excl. CVB admin. staff) Storage T -shirts (net under income) Tape Production & Duplication Telephone TV Show Production Utility Vehicles Vendor Insurance VIP Hospitality VIP Invitations, mail labels Volunteer Appreciation Parties - post -event Volunteer Appreciation Plaques Volunteer Canteen Volunteer Event T -shirts - 8 hrs. or more Volunteer Hats & Visors Volunteer Refreshments during event Volunteer Staff T -shirts Worker's Comp Insurance TOTALS 275 (275) 3,000 2,841 159 2,000 - 2,000 2,500 - 2,500 500 206 294 2,500 1,658 842 350 344 6 2,000 1,530 470 200 - 200 9.000 612 88 850 549 301 1,466 2,500 500 2,000 785 1,215 1,800 1,698 102 10,000 - 10,000 4,000 3,600 400 46,000 45,778 222 5,000 3,941 1,059 43,000 47,300 (4,300) 8,100 - 8,100 4,500 3,275 1,225 3,000 2,778 222 5,200 4,911 289 4,500 - 4,500 1,000 246 754 18,000 14,400 3,600 750 165 585 3,000 2,799 201 1,000 731 269 132,800 92,346 40,454 500 - 500 9,000 2,073 6,927 1,500 1,500 - 6,500 6,314 186 1,000 800 200 2,500 2,247 253 300 34 266 1,000 957 43 700 612 88 625 517 108 3,000 2,500 500 3,000 - 3,000 500 498 2 3,000 2,577 423 700 517 183 479,900 340,760 139,140 1998 1997 Budget Budget Actuals vs. Actuals Total Revenues 479,900 354,088 125,812 Total Expenses 479,900 340,760 139,140 Excess (Shortfall) 0 13,327 Page 2 1 MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding is entered into on and as of the date set forth below by and between the Board of Directors (the "Board ") of the San Bernardino Convention and Visitors Bureau, a California non - profit mutual benefit corporation (the "CVB"), and the Community Development Commission of the City of San Bernardino (the "Commission ") which operates and functions as the Economic Development Agency (the "Agency "). WHEREAS, the CVB is a California non - profit mutual benefit corporation whose efforts are dedicated to enhancing the economy of the City of San Bernardino by encouraging and fostering tourism, conventions and similar economic activities. The CVB was formed in 1989 and has only recently obtained the funding necessary to undertake significant programs to accomplish its purposes; and WHEREAS, the Agency is under the direction of the Agency Administrator and is charged with coordinating the economic development activities of various public and private agencies in the City of San Bernardino, including the CVB; and WHEREAS, the CVB receives a substantial portion of its funding from City General Fund moneys and tax revenues including Transient Occupancy Taxes imposed upon guests of the various hotels and motels in the City of San Bernardino (the "City ") . In addition - 1 - SBEO100 MOCAU May 28, 1991 1 • • to such public revenues, the CVB currently receives approximately one -third (1 /3rd) of its annual resources from the dues and contributions of its members, which members are engaged in the lodging, hospitality and related industries in the City of San Bernardino; and WHEREAS, the Mayor and Common Council of the City of San Bernardino adopted Ordinance No. MC -732, dated June 8, 1990, wherein Section 3.52.030 of the San Bernardino Municipal Code was amended to increase the Transient Occupancy Tax from eight percent (8 %) to ten percent (10 %) , and Resolution No. 90 -315 was adopted on July 16, 1990, setting forth the intent of the City to provide that twenty percent (20 %) of all subsequently collected Transient Occupancy Taxes would be made available to fund the business activities of the CVB pursuant to an agreement setting forth goals and objectives, proposed expenditures and requiring the submission of activity reports; and WHEREAS, in order to provide for the orderly administration of the economic development activities in the City of San Bernardino, including those of the CVB, the Board and the Commission now desire to enter into this Memorandum of Understanding and to provide for the role of the Executive Director of the CVB and the integral participation by the Agency Administrator in the coordination, planning, budgetary process, fiscal matters and implementation of the activities of the CVB and - 2 - SBE0\00011D0CW44 May 28, 1991 3 a — r to increase the involvement of the CVB in the economic development activities within the City. NOW, THEREFORE, in consideration of the above recitals, and of the agreements and undertakings set forth herein, the Commission and the Board agree as follows: 1. The Board shall provide, or shall instruct the Executive Director of the CVB to provide, notice to the Agency Administrator of each and every meeting of the Board of Directors of the CVB. Such notice shall be provided in the same manner and at the same time as such notice is provided to the members of the Board of Directors of the CVB. In addition, the Board shall provide, or shall instruct the Executive Director of the CVB to provide, such materials as are provided to the Board in advance of meetings thereof. Such materials shall be provided to the Agency Administrator at the same time as they are delivered to members of the Board, and the Agency Administrator shall inform the Commission through Agency activity status reports of all material business activities of the CVB as the same relate to the overall operations of the Agency. 2. The Agency Administrator shall be entitled and shall be :strongly encouraged to attend all meetings of the Board of Directors of the CVB. SBEMOWINDOMW - 3 - May 28, 1991 r 3. The Chairman and the Vice - Chairman of the Board will consult with and seek the advice of the Agency Administrator with regard to material changes in personnel, all policy decisions regarding the business inducing efforts of the CVB and all expenditures by the CVB of amounts appropriated by the City to fund CVB activities. In such consultations, the Chairman and Vice- Chairman of the Board shall seek to reach unanimity of position, with the Agency Administrator, with regard to all such actions. 4. The Executive Director of the CVB shall inform and consult with the Agency Administrator on a regular basis regarding the activities of the CVB. The Board shall instruct the Executive Director to make every reasonable effort to attend all meetings with the Agency Administrator as the Agency Administrator may request including, without limitation, staff meetings of the Agency with the Agency Administrator and other Agency staff. The Executive Director shall be appointed by the Board after consultation with the Agency Administrator and shall serve in such position until removed by the Board upon consultation with the Agency Administrator. 5. The Board shall instruct the Executive Director of the CVB to provide to the Agency Administrator such records, files, data and documents concerning the activities of the CVB as the Agency Administrator may request and to permit the Agency Administrator access to and make available to inspection by the - 4 - SBEO1OW1\DOCW" ?&y 28, 1991 Agency Administrator or his designee of all files and records maintained by the CVB in the same manner as the Agency Administrator may obtain access to all other files and records of any other department of the Agency. 6. The Board shall keep the Agency Administrator fully advised of all business activities of the CVB and shall instruct the Executive Director to likewise advise the Agency Administrator. The CVB and the Agency Administrator shall take such other actions as they may deem reasonable and proper to accomplish their mutual goal to foster economic development within the City of San Bernardino and to establish a mutually cooperative working relationship between the Agency and the CVB. 7. The Board and the Executive Director shall annually prepare a proposed budget on or before May 31 of each year which shall list by line item each category of expenditure and dollar amount anticipated for the next succeeding fiscal year. Such budget shall also estimate the revenue sources available to the CVB from other than City sources and the amount that is required to be appropriated by the City from General Fund revenues. Such proposed CVB budgets shall be prepared by the Board and the Executive Director in consultation with the Agency Administrator. Any final CVB budget submitted by the Board to the Agency Administrator will be forwarded by the Agency Administrator within the Agency budget to the Commission together with an evaluation report on such budget - 5 - SBPA100011DOCWU NUy 28, 1991 U prepared by the Agency Administrator for consideration by the Commission. The Agency budget together with the CVB funding request shall then be subject to formal approval by the Mayor and Common Council of the City and the Commission, as necessary. 8. After the City or the Commission, as appropriate, have approved a CVB budget and the City has appropriated City General Fund revenues to fund such budget, the Agency Administrator shall transfer to the CVB on a monthly basis on the first day of each month, moneys sufficient to pay all budgeted monthly expenditures as set forth in the budget. 9. In the event the CVB, the Board, the Executive k Director or any other employee thereof (i) undertakes such activity on behalf of the CVB that, upon recommendation of the Agency Administrator and after official action of either the Mayor and Common Council or the Commission, as appropriate, is determined by the Mayor and Common Council or the Commission, as appropriate, not to be in the best interests of the City or the Commission, or (ii) either incurs or pays an unauthorized expenditure not previously approved either in the annual budget or in a supplemental budget approved by the Board, irrespective of whether such expenditure was to be made or was actually made with City funds or other CVB funds, or (iii) in any manner breaches any provision of this Agreement, the Commission shall have the right to terminate this Agreement and cease funding of the budget items upon fourteen (14) days' written - 6 - SBEOWWIU)OC" M.y 28, 1991 notice delivered to the offices of the CVB and to the Chairman of the Board. Such notice shall state that it is the intent of the Commission to terminate this Agreement and to cease the City's funding of CVB activities as of a date to be set forth in said notice which shall be on or after the conclusion of such 14 -day notice period. If corrective action satisfactory to the Commission is commenced within said fourteen (14) days, the Commission by official action may rescind such termination notice and may thereafter continue to fund CVB activities. 10. Neither the City nor the Commission shall have any liability for the payment of any obligations incurred by the CVB irrespective of the City or the Commission agreeing to fund certain activities of the CVB, and all obligations of the CVB, whether for contract services, supplies, personnel costs or other contractual obligations, shall be solely that of the CVB and shall not in any manner obligate either the City or the Commission, directly or indirectly, to either pay such obligations of the CVB or to continue funding of the CVB during a fiscal year or for any succeeding fiscal year. 0 - 7 - SBWOOLWOC.W44 May 28, 1991 R r IN WITNESS WHEREOF, the parties have executed this Memorandum of Understanding to be effective on and as of this S n.Q, day of A, 1991. (SEAL) ATTEST: ecretary o the oard (SEAL) ATTEST: Secretary Approved as to Form: Attorney , SBEO\00011D XC1 - 8 - nCVBn For toe Board of Directors of the S SI BE}�BIARDI p CONVENTION V I;, Irr Isavid PoY''ter, Chairman of the Board COMMUNITY DEVELOPMENT COMMISSION OF THE CITY -OF SAN BERNARDINO /" Ivly 28, 1991