SR-106-011-02 (4)
Council Meeting: December 14, 2004 Santa Monica, CA
TO: Mayor and Councilmembers
FROM: City Staff
SUBJECT: Contract Modification Augmenting Funding for the Santa Monica
Convention and Visitors Bureau and Appropriate Set-aside Funds For
That Purpose
Introduction
This report requests that the City Council authorize the City Manager to negotiate and
execute a modification to the current agreement with the Santa Monica Convention and
Visitors Bureau (Bureau) and appropriate $500,000 set aside in the 2004/05 budget to
promote Santa Monica as a destination and to assist visitors to the City.
Background
In 1983, recognizing Santa Monica’s potential as a regional, national and international
visitor destination and understanding the role of tourism in establishing a robust local
economy, the City participated in the formation of the 501c4 non-profit Santa Monica
Convention and Visitors Bureau. In the ensuing years, the Bureau has had strong
professional leadership, gained a reputation in the industry as an effective and efficient
organization, enhanced Santa Monica’s profile as a destination and provided warm and
personalized service to visitors to the City.
The City and its residents have realized financial benefit from the work of the Bureau as
municipal services are supported by the growth of sales and transient occupancy tax.
The Bureau has crafted its messages and promotional efforts to reinforce the image of
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Santa Monica as a “walkable” city, a center for the arts and a fine-dining destination.
They consciously target longer-stay visitors who tend to spend more and have a lower-
impact on traffic and parking. The city encouraged the Bureau to establish a downtown
Visitor Center and they have done so.
The work of the Bureau is funded in large part by payments under the contract with the
City. Base funding of $1.4 million is provided and the City has from time to time
contributed to special projects such as a winter destination promotion in New York City
and the establishment of a Visitor’s Center in downtown Santa Monica. The current
contract expires in 2009.
Discussion
The Bureau’s budget is modest in comparison to other bureaus in Southern California.
The staff of the Bureau has stretched its promotional reach creatively by partnering with
regional, state and national tourism organizations. Santa Monica hotels and restaurants
assist the Bureau’s efforts, largely through in-kind support.
Tourism is one of several important components of the City’s enviably diverse revenue
base. Investing in maintenance of Santa Monica’s share of the visitor market will
benefit the broader community in coming years. With the passage of Proposition “N”
on the November ballot, the City’s General Fund which supports basic municipal
services has been strengthened providing the opportunity to enhance Bureau funding.
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In the adopted FY 2004-05 budget $500,000 was set aside for that purpose. The new,
ongoing base amount will be $1.9 million.
Budget/Financial Impact
Provision for an ongoing increase of $500,000 was made in a set-aside in the adopted
FY 2004/05 budget. Appropriation to account number 01274.566220 – Convention and
Visitor’s Bureau, is required.
Conclusion
It is recommended that Council authorize the City Manager to negotiate and execute a
contract modification with the Bureau to augment base funding by $500,000.
Prepared by: Susan E. McCarthy, City Manager
Reference Sixth Amendment to Contract No. 4581 (CCS).
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