sr-071409-1i~~
~;tYaf City Council Report
Santa Monica°
City Council Meeting: July 14, 2009
Agenda Item: ~ - Z
To: Mayor and City Council
From: Jennifer Phillips, Assistant City Manager
Subject: Convention & Visitors Bureau Funding
Recommended Action
Staff recommends 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 in the amount of $2,495,743 for fiscal year 2009/10.
Executive Summary
The Santa Monica Convention and Visitors Bureau (CVB) has been marketing the City as
a visitor destination. A majority of their funding has come from annual appropriations from
the City based on a 1985 agreement that has been extended thereafter. In order to ensure
the CVB has the ability to continue to market the City in the current economic climate, a
one-year extension to the current agreement is recommended. During the next year, staff
will work with the CVB to negotiate a new agreement. Funds for fiscal year 2009/2010 are
available in the operating budget.
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 501 c4 non-profit Santa Monica
Convention and Visitors Bureau. Since then, the CVB has been 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 CVB as
municipal services are supported by the growth of sales and transient occupancy tax. The
work of the CVB is funded in large part by payments under the contract with the City.
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Base funding is provided through annual budgets and the City has from time to time
contributed to special projects. The current contract expired June 30, 2009.
Discussion
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 and contribute to the City's economic
sustainability by ensuring continuation of diverse revenue sources. The current contract
with the CVB was executed in 1985 and has been extended in five-year increments since
then, with the latest extension approved by Council in 2004 and expired on June 30, 2009.
In order to ensure the continued success of the CVB's initiatives and to enable the CVB to
continue to market Santa Monica in the current economic downturn, it is recommended
that the current agreement be extended for a one year period based on a two percent
increase over last year's contract. During the next year, staff will be working with the CVB
towards a new agreement.
Financial Impacts & Budget Actions
Funds for fiscal year 2009/2010 are available in 01274.566220.
Prepared by: Donald P. Patterson, Assistant to the City Manager -Management Services
Approved: Forwarded to Council:
~ ~ s GCi~"'cs
Jenn~ er Phi h P amont Ewell
A istant C M ager City Manager
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Reference Amendment to
Contract No. 4581 (CCS).