HomeMy WebLinkAbout8680RESOLUTION NO, 8680
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ,
CALIFORNIA9 DEFINING PROMOTION AND RETAINING THE
I
FIRM OF BOOZ, ALLEN & .HAMILTON TO MAKE A SURVEY
OR CAUSE A SURVEY TO BE MADE, TOGETHER WITH RE-
COMMENDATIONS TO BE SUBMITTED TO THE CITY COUNCIL
ON OR BEFORE SEPTEMBER 1, 1966 FOR THE EXPENDI-
TURE OF "ROOM TAX" MONIES FOR PROMOTIONAL, ADVER-
TISING AND PUBLICITY PURPOSES AND PROVIDING FOR
A LIMITED BUDGET THROUGH SEPTEMBER 30, 1966 FOR
CHAMBER OF COMMERCE EXPENDITURES ,
PREAMBLE
On the 18th day of October, 190, the City Council of the
City of Palm Springs adopted Ordinance No. 713, as ul-
timately amended, imposing a tax, hereinafter referred
to as "Room Tax", upon the privilege of transient occu-
pancy and providing for the collection thereof. It then
was , and now is , the intent of the City Council to have
such revenues dedicated to the promotion, advertising
and publicity of the Palm Springs resort area , March of
the disagreement concerning the use of the funds springs
from the word 11promotion" . It needs a working definition,As we use it here, it is meant to include a comprehensive
promotional, advertising and publicity program serving all
I the residents and taxpayers of the City of Palm Springs ,
Since the image of this community as America' s foremost
desert resort is international in scope , the purpose be-
hind the expenditure of the revenues derived from the
Room Tax" is to sharpen and enhance this image thereby
attracting an ever expanding band of desirable visitors
and residents to Palm Springs . We intend and conclude
that this , in turn, will build a substantial future on the
firm foundation of our past. We dare say that the wise ex-
penditure of the monies in question will perpetuate our
image as a city of prosperity and beauty, So, having in
mind what generally constitutes promotion, advertising and
publicity, it is the purpose of this resolution to further
define and seek out the practical aspects thereof, to pro-
vide means of determining the best methods available to
effect a workable and rewarding promotional program; and,
in order to successfully achieve this end, we hereby
direct that a study be made to guide us to our stated
goal.
NOW THEREFORE BE IT RESOLVED by the City Council of the
City of Palm Springs as follows °
to The term "promotion" for the purposes of Ordinance 713
shall embrace . "Those activities designed to entice and
attract potential residents and tourists , fostering and
furthering the growth and prosperity of the Palm Springs
area as a world renowned desert resort community." Pro-
motion shall included (A) The solicitation of groups , con-
ventions and tourists for meetings and stays within the
City of Palm Springs and the normally accepted servicingofsuchgroupsandconventionsandtouristswhenhere; and
B) Necessary but minimal internal functions , such as ad-
ministration, material preparation and purchase , Promotion,
for the purposes of this ordinance, shall not include capital
outlays ,
2 . Interim budget . In adopting this resolution, the
City Council is aware of the fact that the Palm Springs
Chamber of Commerce has , in the past, administered the
promotional program financed out of "Room Tax" revenues .
It is further recognized that a serious planning problem
is generated by a change from a fiscal year budget to a
Ilimitedtermbudget. However, because of the magnitude
and complexity of the problem of how best to expend
approximately $450,000 yearly for a comprehensive pro-
motional program, the Palm Springs Chamber of CommerceisherebyrequestedtosubmittothisCouncilforthwith,
or as soon hereafter as possible , an interim budget not
to exceed $90 ,000 for an integrated promotional, adver-
tising and publicity program covering the period from
July 1, 1966 through September 30 , 1966 .
3 . Survey. Without attempting to make findings and
conclusions relative to the merits of the program to
date, this Council recognizes that there have been differ-
ences of opinion as to the following° optimum amounts
which could be expended on the various possible aspects
of overall promotion such as promotion strictly speaking,
advertising, publicity , convention service, convention
sales , tourist bureau facilities and a variety of other
attractions , conveniences and improvements having avowed
powers to magnetize visitors to Palm Springs .
Moreover, it has been recognized that there has been an
increased cost in the overall operation of the Chamber
of Commerce, financed out of the revenues under considera-
tion, which are not commensurate with the normal cost
escalation attributable to the activities included herein.
It is further recognized that a basic disagreement exists ,
and continues to exist, between the Chamber of Commerce
Board of Directors , its committees on this program and
various individuals as to administrative and promotional
policy. By like token, there have been various suggestions
to the effect that this program should be administered by
a City commission, by City personnel or by various combina-
tions of these . In sum, we hereby conclude that there is a
reasonable doubt about how this program could best be ad-
ministered and how the available monies could best be
spent . Therefore, the City Manager is hereby authorized
and directed to request an answer from the consulting firm
of Booz, Allen to Hamilton„ hereinafter referred to as the
FIRM as to the following questions -
A) Is the FIRM in a position to prepare a. comprehensive
report on the various possible expenditures of "Room Tax"
monies based upon the definitions and instructions as set.
forth in this Resolution, the potential revenues to be de-
rived from the "Room Tax" , your own investigations , studies
and surveys including, but not limited to, a discussion of
the various promotional activities available, their respect-
ive merits , cost breakdowns relative thereto, by whom and
how the administration of the fund should be handled,
possible definitions of what constitutes advertising,publicity and promotion within the frame of reference of
the Uniform Transient Occupancy Tax Ordinance, specific
problems inherent in administering and implementing such
programs , any new functions that the City should considerwithinthescopeandpurposeofthispromotionalprogram
and other pertinent operational and administrative aspects
not to include legal opinion but culminating in a written
recommendation to this Council to act as a guide only for
our future action in this area?
r
B) Can the FIRM present such a study to the Council on
or before September 1, 1966?
C) Will the FIRM present a written proposal to the
Council offering to engage in the project hereby proposed
I together with cost and time estimates to be submitted to
us on or before June 23, 1966?
D) As an alternative to contracting to perform the ser-
vices proposed herein,, will the FIRM recommend a qualified
consultant or consultants recognized as expert in the
field outlined 'herein, willing to comply with the require-
ments set forth in A, B and C just above, together with
such fi,rm(s) credentials?
It is hereby recognized that the consultant firm of Booz,
Allen & Hamilton is, in the opinion of this Council,
uniquely qualified to make the study proposed herein because
of the nature, breadth and depth of past reports and
recommendations made by it to the City of Palm Springs .
4. Reserve, A reserve of 10% or more as determined by
the annual budget of each year' s collections , including
unappropriated collections for the fiscal year 1965-1966,
should be established to provide a contingency for emergency
situations and to set up a base for unforeseen major ex-
penses falling solely within the scope of the Uniform
Transient Occupancy Tax Ordinance,
5. Action procedure , Because of the fact that time is
of the essence, this meeting of the City Council is hereby
adjourned until 1-00 p.m. , June 23, 1966 in the Conference
Room, City Hall, 3200 Tahquitz-McCallum Way, Palm Springs,
California at which, time and place this matter will be
further studied based upon the recommendation, if any, of
Booz, Allen & Hamilton,
Adopted this 13th day of ,Tune 1966 .
AYES - Councilman Dragicevich, Foster and Wiefels
NOES - Councilman Selig and Mayor McCoubrey
ABSENT- None
ATTEST° CITY OF PALM SPRINGS, CALIFORNIA
Fo Do ALESHIRE
City Clerk
Deputy City Clerk City Manager
APPROVED AS TO FORM- APPROVED AS TO CONTENTS :
Date Date