HomeMy WebLinkAbout2/21/2007 - STAFF REPORTS - 2.R. QpLM SA
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1FO kV, CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 21, 2007 CONSENT AGENDA
SUBJECT: A PROPOSED RESOLUTION TO AMEND THE BUDGET FOR FY 2006-
2007 FOR CONVENTION AND VISITOR'S AUTHORITY MARKETING
CAMPAIGN FOR $50,000.
FROM: David H. Ready, City Manager
BY: Aviation Department
SUMMARY
Airport Commission is requesting a $50,000 budget adjustment to enable the Airport to
contribute to a 2007 marketing campaign proposed by Palm Springs Desert Resorts
Convention and Visitors Authority and directed toward increasing air travel at Palm
Springs International.
AIRPORT COMMISSION RECOMMENDATION:
1, Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR FISCAL YEAR 2006-2007 FOR THE 2007 ADVERTISING
CAMPAIGN."
STAFF ANALYSIS
The Convention and Visitors Authority (CVA) has prepared a marketing plan for 2007
and is soliciting participation from its member cities and the Palm Springs International
Airport. One of the programs in the 2007 plan is an advertising campaign specifically
aimed at increasing air service to the destination, to be conducted in the key markets of
Portland, San Francisco, Seattle and Chicago. The program is a mixture of radio and
print advertising and on-air radio promotions. This program did not exist when the
FY2007 Airport budget was being prepared.
By making a large volume purchase, the CVA will receive a bonus amount of
advertising which actually exceeds the actual investment in the value of the media spots
purchased. In addition, as part of the CVA's arrangement, Alaska and American
ITEM NO,
City Council Staff Report
February 21, 2007 -- Page 2
CVA Marketing
Airlines will be promoting the Valley as a destination through several efforts involving its
website, e-mails, free tickets for promotions, and special offers for its frequent flier
members. The value of the American Airlines contribution in the Chicago market alone
is $115,000,
The Airport Deputy Director-Marketing and Development had significant input in the
markets that were eventually chosen for this program by the CVA Marketing
Subcommittee. The media purchase is well researched and planned, in the judgment of
Airport staff and represents a sound investment. This co-operative approach allows the
Valley to create cohesive marketing programs that have a scope much larger than what
the Airport could undertake on its own.
However, the Airport plans to continue to budget separately for its own advertising,
enabling it to have control of the time, place, and nature of its marketing efforts. In
FY2007, the Airport's total advertising budget is $50,000.
Four cities plan to support this advertising campaign with a separate $50,000
contribution: Rancho Mirage, Palm Desert, Indian Wells, and La Quinta. The CVA is
contributing $200,000.
Below is a summary of the advertising campaign by market.
Market Total Total Added Total Media
Investment Value Spend
Portland $52,405 $90,000 $142,405
San Francisco $124,127 $241,175 $365,302
Seattle $107,787 $183,840 $291,627
Chicago $109,611 $88,000 $197 611
Production $5,000
Alternative Lifestyle Publications $11,744
Public Relations $39,326
TOTAL $450,000 $603,105 $1,053,105
City Council Staff Report
February 21, 2007 -- Page 3
CVA Marketing
FISCAL IMPACT: Of
Funds for this purchase will be available in Account ## 415-6002-45520 as a result of the
budget amendment and transfer from the Airport Fund's Retained Earnings Account
415-29302.
Richard S. Walsh, A.A.E., Director of Aviation
T ��l
David H. Ready, City ger
Attachment: Resolution
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING THE BUDGET FOR FISCAL YEAR
2006 2007 FOR THE 2007 ADVERTISING
CAMPAIGN
WHEREAS, Resolution No. 21611 approving the budget for the fiscal year 2006-
07 was adopted on June 7, 2006; and
WHEREAS the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. ADDITIONS
Fund Activity Account Amount
415 Airport 6002 Airport 45520 Advertising $50,000
Administration
Purpose: To amend FY 2006-07 budget for the 2007 Advertising Campaign.
SECTION 2. SOURCE
Fund Activity Account Amount
415 Airport N/A 129302 Retained $50,000
Earnings
ADOPTED THIS 21 st day of February 2007.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
Resolution No,
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. _ is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on March 1, 2006,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California