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Home My WebLink About10/3/2001 - STAFF REPORTS (21) � l October 3, 2001 MEMORANDUM TO: Palm Springs City Council FROM: John O. Pinkney, President of Palm Springs Chamber of Commerce RE: Proposed Advertising Campaign designed to Attract Tourists From Drive Time Markets Prior to the September 11, 2001 attacks on New York and Washington D.C., our local hotels were collectively experiencing the lowest occupancy rates in five years. Since the September 11'h attacks, many local hotels experienced significant cancellations and/or declines in occupancy rates. These declines impact not only our local hotel industry but our retail industry and entire economy. The declines will also impact City TOT and sales tax revenues. In an effort to deal with the above declines, the Palm Springs Chamber, Mayor Kleindienst, the Bureau of Tourism, Gerry Ogburn, the Palm Springs Aerial Tramway, the Hotel and Hospitality Association and Mainstreet have been working on developing a program to promote Palm Springs in drive market areas such as Los Angeles and Orange County. In furtherance of this effort the above organizations and individuals have requested the Jones Agency to prepare a media plan and budget for television and radio advertising campaigns. The purpose of this television and radio campaign will be to entice potential Palm Springs tourists that are located within driving distance to choose Palm Springs as their getaway destination. Given the uncertainty of the time created by the incidents back east, many travelers will be postponing long distance vacations or uncomfortable traveling by air. It is our objective to encourage them to come to Palm Springs and enjoy what our City has to offer. As of today's date the Tramway has committed $10,000 to this program. Tourism has also committed $10,000. The Chamber Board is requesting a $5,000 contribution to this program. The Hotel and Hospitality Association and Mainstreet will also be meeting to discuss contributing to this program. Attached to this memorandum are three plans developed by the Jones Agency. Plan A and B would require a $20,000 contribution from the City. Plan C would require a $70,000 contribution from the City. Plan C will involve significantly greater exposure than Plan A or B and according to the Jones Agency will have a much greater impact than A or B. The attached plans will compliment rather than duplicate current efforts of the Bureau of Tourism. The Bureau of Tourism's ongoing campaign is primarily utilizing print media and outdoor advertising as opposed to television and radio advertising. Accordingly, we are requesting that the Council review the attached proposals and adopt a resolution authorizing a city contribution to the above community-wide effort. With this in mind the City staff has prepared two proposed resolutions for the Council's consideration. The Chamber, Tramway, Hotel and Hospitality Association, Bureau of Tourism and Mainstreet will have representatives in attendance at the October 3, 2001 Council meeting to answer any questions the Council may have. Palm Springs Bureau of Tourism Selected Los Angeles Broadcast Options October 22 - December, 2001 Plan A (Radio) Spots Number Cost per Investment Station per Week of Weeks Minute Weekly Total (4) KNX 10 4 $578 $7,514 $23,102 KFI 9 5 510 4,590 22,950 Total 19 $12,104 $46,052 Estimated Production 3,000 (1) Based on Mo • Fr 6 AM - 8 PM spot rotations Total $49,070.00 (2) 97 total spots over 4 weeks Added value on air promotion and contest; Hotel, Golf,Tennis,Food and Beverage Packages will be given away as barter in kind spots plus several 10 sec. mentions. Palm Springs Bureau Of Tourism Selected Los Angeles Broadcast Options October 22- December, 2001 Plana (Cable TV in Selected Upscale Communities) Cable % Major Areas System Households Coverage Served West Valley 137,110 60% Encino Granada Hills Northridge Reseda Tarzana Woodland Hills Orange County 110,000 53% Huntington Beach Garden Grove Costa Mesa West Los Angeles 101,700 54% Beverly Hills Los Angeles Marina Del Rey Pacific Palisades Santa Monica West Hollywood West Los Angeles 100,250 50% Los Angeles Marina Del Rey Venice West Hollywood Culver City Irvine 54,670 73% Irvine Corona Del Mar Newport Beach Newport Coast Orange Tustin So. Orange County 48,700 500/c, Newport Beach Corona Del Mar Costa Mesa No. Orange County 45,800 5070 Buena Park Fullerton Yorba Linda Costa Mesa 26,070 52% Costa Mesa Newport Beach Tustin Malibu 14,970 79% Malibu Agoura Hills Total: 639,270 Calabasas Pacific Palisades TV Cost Estimates by System $50,000 Production Cost estimated @ $5,000.00 Total : $55,000,00 (1) Based on average prime time :30 (Mo - Su 4 PM - Midnight) on CNBC, CNN Fox Sports West, Headline News and MNBC Networks (2) Based on 32 announcements per week per system for 4 weeks (1152 total announcements) Palm Springs Bureau Of Tourism Selected Los Angeles Broadcast Options October - December, 2001 Plan C (Total L.A. Cable TV Cluster + Radio) ✓ The "Cable Network TV Cluster" buy consists of inserting commercials in all 5 major news networks reaching all cable TV homes throughout Los Angeles simultaneously ✓ 3.4 million cable TV home coverage ✓ 80 systems ✓ News networks consist of: • CNN • CNBC • Headline News • MSNBC • Fox News Channel ✓ Cost per 30-second in each network in prime time (Mo - Su 4 PM - Midnight) is $250 ✓ Proposal - purchase 11 commercials per network on 5 networks per week for 4 weeks (55 spots per week x 4 weeks = 220 commercials total. Total investment $55,000. Production Cost estimated @ $5,000.00 Minutes Number Cost per Investment Station per Week of Weeks Minute Weekly Total (4) KNX 13 4 $578 $7,514 $23,102 KFI 9 5 510 4,590 22,950 $12,104 $46,052 Estimated Production 3,000 (1) Based on Mo - Fr 6 AM - 8 PM spot rotations Total $49,070.00 (2) 97 total minutes over 4 weeks Added value on air promotion and contest Hotel, Golf, Tennis,Food and Beverage Packages will be given away as barter in kind spots plus several 10 sec. Spots. Total for Plan 3 $109,070.00 RESOLUTION NO. N� OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2001-02 FISCAL YEAR. WHEREAS Resolution 20062 approving the budget for the fiscal year 2001-02 was adopted on June 6, 2001; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 20062, adopting the budget for the 2001-02 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount 112 2019 #to be assigned $� '➢r Community Special Chamber of Promotion Contributions Commerce Promo Purpose:Contribution to the Chamber of Commerce for special marketing & promotion effort. SECTION 2. SOURCE Savings created by the refinancing of the Convention Center bonds will reduce the amount of the transfer from the Community Promotion Fund to the Debt Service Fund. FUND Activity Account Amount 112 29301 $I Wry ��,>� Community Fund Balance �/Promotion Adopted this day of 2001. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By .. City Clerk City Manager REVIEWED AND APPROVED -'* 9a