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HomeMy WebLinkAboutC35870 - City-Run Banner Program on El PaseoCONTRACT NO. C35870 CITY OF PALM DESERT ECONOMIC DEVELOPMENT STAFF REPORT REQUEST: AUTHORIZE EXPENDITURE OF MARKETING FUNDS FOR A CITY -RUN BANNER PROGRAM ON EL PASEO SUBMITTED BY: Thomas Soule, Tourism & Marketing Manager DATE: November 10, 2016 Recommendation By Minute Motion that the City Council: 1. Authorize expenditure of marketing funds for a City -run banner program on El Paseo and appropriate $12,000 from Unobligated General Fund Reserves to Marketing Account No. 1104417-4321900; and 2. Authorize the City Manager to execute any agreements on behalf of the City. Strategic Plan Obiective The implementation of a banner program on El Paseo would impact the following Tourism & Marketing priorities as specified in the 2013-2033 Strategic Plan, Envision Palm Desert: Forward Together: • Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. Utilizing the banners on El Paseo to promote City events such as Fashion Week and First Weekend will help potentially reach and develop new audiences. • Priority 4: Support the City's tourism industry through enhancement of its marketing efforts with an allocation of additional city resources. Working with our tourism partners to promote events through the El Paseo banner program will help support the City's overall tourism marketing efforts by creating a new touchpoint with which to reach visitors once they are already here. Background The El Paseo Business Improvement District Board (EPBID) has traditionally operated a banner program on El Paseo to provide holiday decor and to generally promote businesses on the street. Staff Report El Paseo Banner Program November 10, 2016 Page 2of3 Several sets of banners have been used in the past, including flag banners (for Fourth of July and other patriotic holidays), holiday/winter banners and general business category banners. Certain not -for -profit events on the street have also been allowed to put up banners, including Paint El Paseo Pink. While the banners are durable and reusable, they do wear out after a few years of repeated use and need to be periodically replaced. This year, several sets of banners are in need of replacement. A full set of banners comprises 56 banners, which cost approximately $55 each to produce. During its budget process, the EPBID board grappled with how best to use its limited funds in light of this extra expense. Although its budget has remained at the same funding level for the past several years, the board has had to deal with the rising costs of its marketing program and must execute their marketing program with an increasingly smaller margin. This year, the board decided that replacing the banners was not the best and most efficient use of its resources, and voted to discontinue its support of the banner program. Staff respects this decision, and at the same time sees this as an opportunity for the City to reinvigorate the banner program as an additional marketing channel to promote City events such as Fashion Week and First Weekend, while continuing the tradition of installing holiday-themed banners at key times of the year. Discussion The El Paseo Shopping District attracts local residents and valley visitors alike throughout the year. Banners displayed on the street are a prime avenue for promoting events that would be of interest to them, while helping to create and extend a special sense of place that is part of the El Paseo brand. Staff feels that a City -run banner program on the street would afford the opportunity to enhance its marketing program, by promoting events that would be of interest to tourists and local residents who visit the street, including events that take place on El Paseo. Staff also sees an opportunity to invite its tourism partners such as The Living Desert, the McCallum Theatre or the Palm Springs Art Museum in Palm Desert to display banners that would help achieve this goal. Proposed guidelines: The banner program will primarily be utilized by the City for its traditional categories and City -sponsored events, including holidays, flag banners, First Weekend and Fashion Week. In addition, when the City does not have an interest, this program will be open to events that take place on the street (such as Paint El Paseo Pink), as well as to the City's tourism partners, such as The Living Desert and The Palm Springs Art Museum in Palm Desert. Non -City banners would be paid for by these outside organizations. Currently, the banners are changed out eight times annually, a rotation that would continue on a similar schedule: ( AE-11 Soule\Slall Rrpurls\I I I'aseo li4nr r Program I Y 16 17 Jucr Staff Report El Paseo Banner Program November 10, 2016 Page 3 of 3 • September Paint El Paseo Pink • October TBD • November Holiday banners installed • January TBD/First Weekend • March Fashion Week • April First Weekend • May Flag Banners and Flags • July TBD As mentioned above, the Flag banners need to be replaced. In addition, Fashion Week and First Weekend banners would need to be produced. At an estimated cost of $55 per banner, and including tax, staff estimates that the entire project for this fiscal year could be accomplished for $12,000. Fiscal Analvsis The fiscal impact to the City's General Fund is an additional $12,000 to fund a City -run banner program on El Paseo. Staff recommends that the City take on the banner program as an opportunity to promote its events and those of its tourism partners and to enhance the El Paseo experience for all of its visitors. Submitted By: Thomas Soule Tourism & Marketing Manager Reviewed: `J t Moore Director of Finance Approval: Lauri Aylaian City Manager Department d: Martin Alvarez Director of Economic Development �sf Rudy A osta Assistant City Manager (, Tom l4•%elupmeni\Thuma+ Souk•\titan Rrpon.\Ll Pa.—) Banner Prueram IY 1617 duet