PISMO BEACH COUNCIL AGENDA REPORT
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1 PISMO BEACH COUNCIL AGENDA REPORT Agenda Item #11.B SUBJECT/TITLE: APPROPRIATION OF LODGING BUSINESS IMPROVEMENT DISTRICT FUNDS TO SUPPORT THE 2017 AMGEN TOUR OF CALIFORNIA BIKE RACE RECOMMENDATION: Adopt a Resolution authorizing the appropriation of funds in the Pismo Beach Lodging Business Improvement District Fund to support the AMGEN Tour of California bike race to be held in Pismo Beach on May 16, BACKGROUND: On January 24, 2017, the Conference & Visitors Bureau (CVB) / Lodging Business Improvement District (LBID) Advisory Board approved a recommendation to appropriate up to $25,000 of LBID available (unrestricted) fund balance to help offset the cost of hosting the AMGEN Tour of California (TOC) bike race to be held in Pismo Beach on May 16, As of January 24, 2017 there was $9, in the AMGEN TOC account from hosting the event in previous years. Staff recommends that the City Council appropriate $15,000 of LBID available fund balance to have a total of $24, for AMGEN TOC costs. In addition, staff recommends that Council appropriate $18,000 of revenues from the San Luis Obispo County Tourism Marketing District (SLOCTMD) and corresponding expenditures for AMGEN TOC costs. Amgen TOC In November 2016, the City of Pismo Beach was selected to host the Stage 3 Start of the 12 th Annual AMGEN Tour of California bike race (AMGEN TOC) on May 16, Known as America s most successful and prestigious cycling race, this event is the largest annual spectator sporting event in California and largest cycling event in North America. AMGEN TOC features a world-class field of riders representing dozens of countries and attracting more than 11 million spectators annually. As a Host City for this event, the City of Pismo Beach will receive exposure as a worldclass destination on both a national and international level. The exposure received from this partnership will benefit the City s lodging businesses and, in turn, will benefit City revenues. In 2016, the 782-mile route was lined by millions of fans, while a global television audience of 11.3 million fans followed the race on international networks such as NBC, Eurosport, Rogers Sportsnet, Sky Sports and SBS. On mobile devices, fans watched 181,836 hours of coverage on the Microsoft tour tracker, setting records for the race on both of these platforms. The creator, owner, and producer of AMGEN TOC is Los Angeles-based sports and entertainment presenter AEG. With AEG's continued partnership with NBC Sports and the Amaury Sport Organization (ASO), the race was seen live on NBCSN in the U.S. and in more than 200 countries and territories worldwide. In addition to this, Pismo Beach will receive a 30-second commercial unit on broadcast and a 30-second city feature. 11.B-1
2 AMGEN TOC Costs The cost of hosting AMGEN TOC could be supported by the LBID fund and San Luis Obispo County Tourism Marketing District (SLOCTMD) sponsorship, and includes $15,320 for hotel rooms, $5,250 for hospitality catering, $3,890 for media costs, $10,040 for meals, $3,000 for the lifestyle event, and $5, for contingency, for a total of $42, On September 21, 2016, the Visit San Luis Obispo County Board of Directors, representing the SLOCTMD, voted to allocate $50K for AMGEN TOC sponsorship to be split between the start and finish cities of Pismo Beach and Morro Bay, appropriating $18K and $32K respectively. The table on the following page includes a projected budget on the various costs to host the event in Pismo Beach. 11.B-2
3 FY AMGEN TOC Costs Stage Start Budget Hotel Site Visit Rooms $115) $ 4, Night Before Stage Start Rooms $134) $ 10, Subtotal Hotel $ 15, Hospitality VIP Catering (250 $15) $ 3, LOC Tent Catering $ 1, Subtotal Hospitality $ 5, Media Media Workspace $ 1, Internet $ Rentals if needed (tables, chairs, TVs, etc.) $ 1, Catering Media Check-in (30 $13 breakfast) $ Subtotal Media $ 3, Meals Caravan Boxed Lunches (600 $15) $ 9, Start Crew Breakfast (30 $13) $ Media Work Room Breakfast (50 $13) $ Subtotal Meals $ 10, Lifestyle Event Movie Equipment Rental $ 1, Venue Set-Up / Decorations $ 1, Subtotal Lifestyle Event $ 3, Total Cost $ 37, Contingency $ 5, Total with Contingency $ 42, County TMD Sponsorship Support $ 18, Total Cost with County Support $ 24, FISCAL IMPACT: The total cost of the AMGEN TOC 2017 event for the City of Pismo Beach is $42, The LBID fund budget already includes $9, from hosting the event in previous years. As such, there is a current budget shortfall of $33,000. LBID Fund Budget $9, AMGEN TOC cost 42, Budget shortfall $(33,000.00) 11.B-3
4 Staff recommends that Council adopt a Resolution (Attachment 1) appropriating an additional $33,000 from the LBID fund to support this event, which includes SLOCTMD Sponsorship support of $18,000 and LBID Fund support of $15,000. Requested Appropriation Expenditures ($15,000 from LBID Fund and $18,000 from SLOCTMD) $33, Budget surplus/(shortfall) $0 The LBID fund has a FY projected ending fund balance of $249 thousand, which can be used to promote the lodging businesses in the District. As such, there are sufficient funds to cover this cost. In addition, staff recommends that Council appropriate $18,000 from the SLOCTMD Sponsorship support for this event. Requested Appropriation SLOCTMD Revenues $18, The cost of hosting AMGEN TOC is part of a package to host the event, which promotes lodging operations and benefits the local lodging industry. ALTERNATIVES: 1. Appropriate a lesser amount of LBID funds. ATTACHMENTS: 1. Resolution 2. CVB/LBID Minutes of January 24, 2017 Board Meeting 3. Visit San Luis Obispo County Minutes and Infographic showing fund allocation from the September 21, 2016 Board Meeting Prepared by: Kristin Huebner, Tourism Coordinator Meeting Date: February 21, 2017 Approved by: Gordon Jackson, CVB Executive Director City Manager Approval: 11.B-4
5 Attachment 1 RESOLUTION NO. R-2017-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH AUTHORIZING THE APPROPRIATION OF FUNDS IN THE PISMO BEACH LODGING BUSINESS IMPROVEMENT DISTRICT FUND TO SUPPORT THE AMGEN TOUR OF CALIFORNIA BIKE RACE TO BE HELD IN PISMO BEACH ON MAY 16, 2017 WHEREAS, the City of Pismo Beach is hosting the Stage 3 Start of the AMGEN Tour of California bike race (AMGEN TOC) on May 16, 2017; and WHEREAS, AMGEN TOC is the largest annual spectator sporting event in California and the largest cycling event in North America, featuring a world-class field of riders representing 28 countries and attracting more than 2 million spectators annually; and WHEREAS, as a Host City for this event, the City of Pismo Beach will receive exposure as a world-class destination on both a national and international level; and WHEREAS, the exposure received from this partnership will benefit the City s lodging businesses and, in turn, will benefit the City revenues; and WHEREAS, the cost of hosting the event includes hotel rooms, hospitality, media, meals, and hosting a lifestyle festival; and, WHERAS, the Conference & Visitors Bureau (CVB) / Lodging Business Improvement District (LBID) Advisory Board recommends that the City appropriate LBID Fund unassigned fund balance to support these costs; and WHEREAS, there are sufficient funds in the LBID fund to support the cost of hosting AMGEN, which promotes lodging operations and benefits the local lodging industry; and WHEREAS, the San Luis Obispo County Tourism Marketing District (SLOCTMD) has dedicated $18,000 of its funds to the City of Pismo Beach for the start of the AMGEN TOC 2017 race. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach appropriates $33,000 of expenditures in the LBID fund in the AMGEN TOC project account and appropriates $18,000 of revenues in the LBID Fund from SLOCTMD funds to support the cost of hosting the AMGEN TOC event. UPON MOTION OF Council Member, seconded by Council Member, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 7 th day of March 2017, by the following vote: 11.B-5
6 Attachment 1 AYES: NOES: ABSENT: ABSTAIN: RECUSED: Approved: Ed Waage, Mayor Attest: Erica Inderlied, City Clerk 11.B-6
7 Attachment 2 11.B-7
8 Attachment 2 11.B-8
9 Attachment 2 11.B-9
10 Attachment 2 11.B-10
11 Attachment 3 MINUTES Visit San Luis Obispo County Board of Directors 1. CALL TO ORDER: Jay Jamison Visit San Luis Obispo County Board of Directors Meeting Minutes Wednesday, September 21, :30am Inn at Morro Bay 60 State Park Rd, Morro Bay, CA PRESENT: John Arnold, Mark Eads, Aaron Graves, Jim Hamilton, Jay Jamison, Sam Miller, Nipool Patel, Clint Pearce, Val Seymour, Roger Wightman ABSENT: Kathy Bonelli, James Davison, Rachel Lima, Noreen Martin, JP Patel STAFF PRESENT: Chuck Davison, Brendan Pringle, Helen Pratt Call to Order at 8:33am. 2. PUBLIC COMMENT (On Non-Agenda Items) Kristin Huebner announced that there is a company called KND Safety Services, conducting fire inspections for local businesses without a business license for this area. ANNOUNCEMENTS None. Public Comment None. CONSENT AGENDA 3. Approval of August 17, 2016 Board Meeting Minutes Approval of August VSLOC Financials Approval of Marketing Committee Application Jennifer Little Board Discussion. Public Comment None. ACTION: Moved by Pearce/N. Patel to approve the Consent Agenda as presented. 4. CEO Report Motion carried: 10:0 11.B-11
12 Attachment 3 C. Davison provided an update on VSLOC staffing. VSLOC is subscribing to quarterly VisaVue Travel reports. An easy-toread infographic form of the report will be posted to the Members Area of the VSLOC website. The annual audit process commenced on September 9, 2016 with an on-site visit. The final audit document will be reviewed at the October Board meeting. VSLOC s Crisis Communication Plan was tested for the first time with the Chimney Fire. VSLOC is making minor revisions to the plan. VSLOC developed a flow chart outlining the lead management process, including collaboration and distribution. This will be posted to the Members Area of the VSLOC website. VSLOC contracted Gladwell Governmental Services to create a document retention policy, which will be presented to the Board in October for approval. Health insurance rates increased by 14% and a greater increase is expected next year. The County and EVC are working on a plan for a forward-looking economic impact study based on the closure of Diablo Canyon. Davison expects to have updates by the next Board meeting. December s Board meeting is currently scheduled for December 21, The Executive Committee recommends cancelling that meeting. VSLOC will cancel the meeting unless there is opposition. Board Discussion. Public Comment None. BUSINESS ITEMS 5. FY Annual Report A draft copy of the Annual Report was distributed to the Board members. Davison asked Board for approval of the FY Annual Report. Board Discussion. Public Comment Toni LeGras of Beachside Rentals stated that the Annual Report is beautiful and easy to read. ACTION: Moved by Graves/Seymour to approve the Annual Report. Motion carried: 10:0 6. Event Sponsorship Update Davison recapitulated VSLOC s sponsorship of AMGEN Tour of California s Morro Bay start and gave an update on current negotiations for the upcoming AMGEN event that are taking place directly with the cities. Davison asked the Board for direction on how to proceed with AEG, which manages the event. The Marketing Committee recommends changing the general event sponsorship criteria to include the following: one to two large county event opportunities, a focus on out-of-market SAVOR events and assistance with other local events through in-kind marketing only. Davison asked for Board approval of the Marketing Committee s recommendations for VSLOC event sponsorship criteria. Board Discussion. Public Comment None. ACTION: Moved by Graves/Pearce to authorize VSLOC to allocate up to $50K for AMGEN sponsorship, to be split between the start and finish as VSLOC deems proportionately appropriate. This would be in conjunction with the individual cities and BIDs, granted that AEG provides the appropriate coverage to VSLOC to justify the cost. Motion carried: 10:0 ACTION: Moved by Wightman/Patel to change VSLOC event sponsorship criteria based on the Marketing Committee s recommendations. 11.B-12
13 Attachment 3 Motion carried: 10:0 7. SAVOR the Central Coast IWSC Group has made a proposal to VSLOC to purchase and operate SAVOR the Central Coast. Davison asked for the Board s recommendation as to how to proceed. Board Discussion. Public Comment Toni LeGras, Beachside Rentals, asked if IWSC would own the SAVOR the Central Coast brand if an agreement was made. Kristin Huebner, Pismo Beach CVB, noted that this event has previously relied on the cities to provide funding, and that this should be considered during discussions with IWSC. ACTION: Moved by Pearce/Graves to approve entering into proposal discussions with IWSC Group for the sale of SAVOR the Central Coast as a local event. 8. Airport Development Motion carried: 10:0 Davison gave an update on air service development. Due to the new Seattle air service project, the airport will not be eligible for additional grant funding for air development until Q4 2018/19. Davison suggested that new service development would need to come from a minimum revenue guarantee (MRG) or LOC, which is estimated to be at $1-1.5 million for Dallas/Denver air service. Davison asked if the Board saw a scenario where VSLOC might bet aside $100K+ into an MRG. The Board discussed and the consensus was yes, but that it would depend on the flight city. Davison noted that an economic impact study is $10,000, and asked the Board if VSLOC should share the cost in this study with the EVC and SLO County Regional Airport. Board Discussion. Public Comment None. ACTION: Moved by Graves/Arnold to approve participating in a shared cost program for a Dallas/Denver flight economic impact study. Motion carried: 10:0 9. Seattle Flight Launch Update Davison gave an update on his in-market meetings in Seattle regarding co-op opportunities with Alaska Airlines, Visit Seattle, Seattle Food & Wine Experience Weekend, and Expedia. Davison gave a brief overview on next steps. Board Discussion None. Public Comment None. 10. Operational Planning Update Davison gave an update on VSLOC s Operational Planning efforts with Coraggio Group. Davison will present the Operational Plan and associated costs at the November meeting. 11.B-13
14 Attachment 3 Board Discussion None. Public Comment None. 11. Marketing Agency Update Davison provided an update on BCF Agency s current and future projects, including the membership kit, annual report, SAVOR on the Road, branding process, and strategic planning. The new brand will be presented to VSLOC staff on September 30, The Marketing Plan draft will be presented to the Marketing Committee at their October meeting. PRESENTATION 12. Measure J Jorge Aguilar and James Worthley from SLOCOG discussed Measure J, a new tax initiative that would support infrastructure funding throughout San Luis Obispo County. Davison asked for the Board s position on VSLOC advocating for or against the initiative. Board Discussion. Public Comment Toni LeGras, Beachside Rentals, stated that this issue isn t something the tourism board should take a position on. Kristin Huebner, Pismo Beach CVB, suggested that a poll should be done with constituents, and that the Executive Committee should choose a stance based on those results. ACTION: Moved by Patel/Hamilton that VSLOC will advocate in favor of Measure J. ADJOURNMENT Meeting adjourned at 10:46am. REMINDERS Motion carried: 7:2:1 Pearce abstained. Arnold and Seymour opposed. The next Advisory Committee meeting will be held on December 8, All Board members are encouraged to attend. ADJOURNMENT Meeting adjourned at 10:46am. 11.B-14
15 11.B-15 Attachment 3
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