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HomeMy WebLinkAboutMinutes - Marketing Committee 03/07/2017• 3 PALM DESERT PALM DESERT MARKETING COMMITTEE APPROVED MINUTES Tuesday, March 7, 2017 — 3:00 p.m. Administrative Conference Room I. CALL TO ORDER Theresa Maggio called the meeting to order at 3:02 p.m. II. ROLL CALL Members Present: Franchesca Forrer Mahasti Islami Theresa Maggio, Vice -Chair Jerry Martin Jeffrey Norman Ray Rodriguez Barb Wagner Members Absent: Arlene Amick Rolf Hoehn, Chair Bruce Nation Erin Scott Staff /Others Present: Jan Harnik, Mayor Gina Nestande, Councilmember Thomas Soule, Tourism & Marketing Manager Martin Alvarez, Economic Development Director David Hermann, Senior Management Analyst Ruth Ann Moore, Economic Development Manager Barbara Blythe, Tourism & Marketing Specialist Jane Stanley, Recording Secretary Barry Gorfine Eric Newman Christy Lane III. ORAL COMMUNICATIONS r Christy Lane is a ten-year resident of Palm Desert and is a member of the Palm Desert Historical Society. The Society is working on a marketing campaign to generate a vision, an image, and some funding for the Historical Society. She is working on producing a cartoon map of Palm Desert. Christy distributed several documents including the Palm Desert area of one done in the 1980s. Local businesses will be asked if they would like to be listed on the map. A graphic designer has agreed to do the map for the Society. Christy has been working with Kim Housken from the Cultural Resources Preservation Committee regarding which boundaries and which sites should be on the map. Christy has been generating some ideas that move into the marketing area and wanted to share those with this Committee. She inquired if there are any APPROVED MINUTES PALM DESERT MARKETING COMMITTEE March 7, 2017 restrictions with the City in regards to the cartoon map and historical sites. With an app the Society will also be doing audio walking and bike tours. She wanted to know if there could be areas designated as "Historical Palm Desert." Mayor Harnik noted that Christy's questions could be answered by the City Manager or the City Attorney. IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF DECEMBER 6, 2016 Jeffrey Norman moved, by Minute Motion, to approve the minutes of the December 6, 2016, meeting as presented. The motion was seconded by Franchesca Forrer and carried by a 7-0-4 vote. (AYES: Forrer, Islami, Maggio, Martin, Norman, Rodriguez, and Wagner; NOES: None; ABSENT: Amick, Nation, Scott and Hoehn) V. CONSENT ITEMS HELD OVER None. VI. NEW BUSINESS A. SELECTION OF CHAIR AND VICE -CHAIR FOR 2017 Thomas Soule reported that Rolf Hoehn is willing to serve again as Chair and is agreeable if anyone else would like to serve. Ms. Maggio also expressed that she is willing to let someone else serve as Vice -Chair. Jeffrey Norman nominated Rolf Hoehn as Chair and Theresa Maggio as Vice Chair. Ray Rodriguez stated that Rolf has done a great job as Chair. This is a great opportunity to develop and stretch people and for mentorship. He suggested that Rolf could step aside and Theresa could be Chair if she is willing, and a newer member could be Vice -Chair. Ms. Maggio said she would rather not be Chair. Mayor Harnik agreed with giving opportunities to other members to develop and offer ideas. Mr. Norman recommended that someone serve as Chair for a few years, and then the Vice -Chair would move up. Ms. Maggio expressed that she would like Rolf to remain as Chair. Jeffrey Norman moved, by Minute Motion, to select Rolf Hoehn as Chair and Theresa Maggio as Vice -Chair for 2017. The motion was seconded by Mahasti Islami and carried by a 7-0-4 vote. (AYES: Forrer, Islami, Maggio, Martin, Norman, Rodriguez, and Wagner; NOES: None; ABSENT: Amick, Nation, Scott and Hoehn) 2 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE March 7, 2017 B. PRESENTATION OF PRELIMINARY MARKETING BUDGET AND RELATED WHITE PAPER Referring to the budget and white paper included in the agenda packet, Mr. Soule noted that the overall budget for next year is the same as this year. For clarity the hotel co-op program in the amount of $200,000 is now a single line item. The white paper has been reviewed by the City Manager but has not yet gone to the City Council. It discusses two things that would be different from the current year budget. With the extra video that was shot for the new ad campaign, he would like to create three 15-second marketing videos in line with the new ad campaign; specific for the pool, for golf, and for hiking. The videos would be targeted to people interested in these areas. The second is for media monitoring. It can be set up for specific key words and would monitor online, traditional and television. Mr. Soule and David Hermann currently use Google Alerts to monitor activity. Responding to a question, Barbara Blythe said she would absolutely be able to take advantage of the monitoring. Right now she tracks a few keywords and schedules media with Hootsuite. Jeffrey Norman moved, by Minute Motion, to accept and approve the Preliminary Marketing Budget and White Paper as presented. The motion was seconded by Jerry Martin and carried by a 7-0-4 vote. (AYES: Forrer, Islami, Maggio, Martin, Norman, Rodriguez, and Wagner; NOES: None; ABSENT: Amick, Nation, Scott and Hoehn) C. UPDATE ON COOPERATIVE HOTEL INCENTIVE PROGRAM Mr. Soule wanted the Committee to have an update on this program and how effective it has been this year. This program is open to every hotel in the City. Up to this point, the JW Marriott is the only one that has partnered with the City. Barb Wagner went on to say that as she is targeting marketing segments and goes head -to -head with another city, the group is offered funds to help offset costs. Also, during slow times, or "need" times, she has worked with the City to help fill those dates by providing incentives. Mr. Soule explained that one of the criteria for receiving funds is that it is to be used during a "need" period, such as during the summer, and for business that is not on the books. He distributed a graph and a STAR report that show how the program affected hotel occupancy the past year at the JW Marriott. Ms. Wagner gave a brief overview on how to read the STAR report. For August 2016 the resort was able to increase their fair share by 26%. The revenue per available room was 125% more that the comp set. The resort had two back-to- back groups that were booked in partnership with the City program. Both 3 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE March 7, 2017 groups were over 2,000 rooms. Using this program, revenue per available room grew 32% compared to August 2015. One of the resort's "need" times are the days leading up to Halloween. The resort worked with the City to book a high tech group out of Boston during these dates. Total occupancy was 87% compared to 67.5% in the market, average daily rate was $237 compared to $195 in the market, and provided $206.37 revenue per available room compared to $131.34 in the market. During this week their fair share was at 157%. When groups come during this time period the resort is getting more than their fair share, filling rooms, and bringing visitors and funds to the City. In response to Mr. Rodriguez' question, Ms. Wagner said the funds are used as a closing tool when going head -to -head with another property and to proactively go after certain groups to entice them to come. The resort gives extreme concessions for business in August, and the extra City funds are the icing on the cake that says "the City wants you here." Further responding, Mr. Soule said one of the groups in August received $10,000. ROI is always checked, and the minimum ROI is 25%. Some groups garner a much higher ROI. Previous incentives were transportation that was provided from Los Angeles, and $5 per booked room with a $10,000 cap. Incentives are offered on a case -by -case basis on what the team thinks would help make the sale. Ms. Wagner added that the investment is very measurable. Mr. Soule went on to say that the number one issue for the CVB is airlift capability and is a big part of its Destination Plan for the whole valley. Additionally, the CVB is able to give Ms. Wagner a cost analysis for group travel. Referring to the graph previously distributed, it shows the yearly hotel occupancy by month for the whole city. The graph shows higher year -over -year occupancy starting in July of 2016. With Committee concurrence and support the Report on the Cooperative Hotel Incentive Program was received and filed. VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. REPORTS FROM CITY COUNCIL LIAISONS A. City Council 4 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE March 7, 2017 Councilmember Gina Nestande reported what occurred at the March 2nd Short - Term Rental Committee meeting. It was the first meeting of this committee and was an opportunity for people to express their opinions. Mayor Harnik noted that Swing `N Hops was received very well and had a great turnout. The City is looking at how many events it already has and how the City can partner with them to help grow those events. X. REPORTS AND REMARKS A. Chair Vice -Chair Maggio reported that Bighorn BAM just celebrated its 10th anniversary gala and it has already raised $800,000 for the year, even without a clubhouse at the resort. The Kate Laver Invitational tennis event was just held, raising $775,000 for special needs children and families. Harold Matzner, who will be honored next month in Washington D.C. with the Horatio Alger Award, had a scholarship event on March 1. There are 45 new members at Bighorn since January of last year. B. Committee Members Jerry Martin distributed a flyer for the "Classic Cars Under the Stars" event, scheduled for April 1st at Desert Willow. His interview for Eye on the Desert aired last week. Other than rainouts, there has been fantastic turnout this year for El Paseo Cruise Night. Because of Fashion Week, Cruise Night will be at Cuistot restaurant on March 17th. Since November Franchesca Forrer has been supporting the San Diego centers, so she has been managing five centers. Through early fall she will be co -managing and will therefore be spending some of her time in San Diego. Westfield Palm Desert will be doing its own spin on Fashion Week by having a Realway vs. Runway Fashion Show on March 26th for everybody age five and up, hosted by Mayor Harnik and sponsored by KMIR. Local eleven -year -old blogger Vandy Jaidenn, boasting 88,000 followers on Instagram and 370,000 followers on musical.Iy!, will be a judge. A new art series launching in April will include graffiti and craft beer in the grand entrance. In Ray Rodriguez' opinion the area is overbuilt with restaurants and we have reached a saturation point. Restaurateurs are saying this is a really good season for the stronger, long-term restaurants, but the majority will continue to struggle. The State of the City luncheon put on by the Palm Desert Chamber has grown and developed over the years. With more sponsors and citizen participation it should mature to a 500-600 attendee event. Mayor Harnik and City staff did a great job with the presentation. Barb Wagner pointed out that the JW Marriott resort was sold in January to the Kam Sang Company, who is excited about investing in the building. They want 5 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE March 7, 2017 to invest first in the guest rooms. This is the third week for new General Manager, Tom Tabler, who came from the Renaissance Indian Wells. Time and Temperature is a new chef's innovation kitchen for private events. Mahasti Islami reported that Trina Turk opened a pop-up shop at The Gardens last week that will be open through April. Other recent store openings are J. Jill and Johnny Was. The Concert Series is in its sixth week. Fashion Week and Food & Wine are coming up, starting March 18th, so the parking deck will be closed on March 12th to start the build out. Ruth Ann Moore noted that Brooke Williamson, who was the winner of Top Chef last week, will be at the Food & Wine event. Ms. Forrer commended Mahasti Islami, stating that the reason Trina Turk is here is a result of her efforts. Jeffrey Norman stated that a successful eight performance run of the Ten Tenors just ended. They have sold out 29 shows at the McCallum since 2011. On the first day of ticket sales for Open Call, 2,000 of the 4,000 that need to be sold were purchased. Open Call will be from April 13 to 15 and will have participants aged 8 through 83. Upcoming is a 5 night run of Chicago, which is the longest running American musical in the history of Broadway. Announcement of the new season will be on April 4th, the McCallum's 30th anniversary season. Unlike other performing arts venues, the McCallum only sells about 27% of the tickets online. The annual giving campaign was just relaunched. Over $5M is raised philanthropically. The education program is a $1M+ program in 27 different schools. Last year there were 2,312 classroom workshops in theater, dance, music and the visual arts. C. Staff Thomas Soule reported that he went to the Visit California Outlook Summit in Santa Barbara last week. It was a wonderful opportunity to interact with his counterparts from other municipalities and areas of California. Their focus in the coming year will be international travel. They are concerned that the perception of the U.S. outside of our country is unwelcoming and unfriendly. He made new connections with the CVB at the summit. He was also happy to report that the new ad campaign has won an Addy Award. The awards ceremony will be this coming Saturday. Martin Alvarez shared that Desert Willow has had one of the best Februarys ever. March is looking strong as well. Up for consideration at the next City Council meeting will be a request for a First Weekend event on Sunday, May 7th, the "Palm Desert Resident Appreciation Day" for Desert Willow's 20th anniversary. The event will include a concert, free golf for a limited number of residents and other activities. On April 13th the Council will be seeing the revised designs and programs for the Quicksilver Resort. The project is 70 acres within the Desert Willow property and includes a large resort hotel, a couple of boutique hotels, 112 timeshare units and some resort commercial opportunities. The proposal is a complete master plan. 6 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE March 7, 2017 Barbara Blythe said an effective new way of reaching people where they are is to have a tent at events. Her team spoke with 381 people at Swing 'N Hops and 832 people at the Wildflower Festival. A rack card has been designed and printed for First Weekend and Palm Desert Visitor Services. Barbara is looking forward to going again to the Social Media and Marketing World Conference in San Diego. It was very beneficial last year. Ruth Ann Moore explained that one of the City Manager's goals is to update the Economic Development Strategic Plan. Ms. Moore did this about five years ago, which springboarded into Envision Palm Desert. It's time to update the strategic plan for what is going to happen with retail and growth of the universities. A subset will be to focus on an urban development plan for El Paseo. Ms. Moore will be reaching out for people to work on focus groups. Last time she did it by herself, but this time there will be a consultant involved. XI. INFORMATIONAL ITEMS A. Visitor Services Reports There were no questions or comments. With Committee concurrence, the Visitor Services Reports were received and filed. XII. NEXT MEETING DATE — JUNE 6, 2017 XII. ADJOURNMENT With Committee concurrence, the meeting was adjourned at 4:12 p.m. Jane Stanley, Recorng Secretary 7