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HomeMy WebLinkAbout2001-04-17 MC Regular Meeting MinutesCONVENE ROLL CALL ORAL COMMUNICATIONS CONSENT CALENDAR 04/17/01 P omo mutes on Com ttee The meeting was called to order by Chairman Rick Post at 3:00 p.m. on Tuesday, April 17, 2001. Members Present: Howard Back, Ken Katz, George Kermode, Arnold Kirschenbaum, Ric Mandelbaum, Gail Paparian, Tammy Perezchica, Rick Post, and Fred Tretta. Kajsa Thuresson-Frary arrived at 3:05 p.m. Peter Sturgeon arrived at 3:35 p.m. Members Absent: None. Others Present: Sheila Gilligan, Assistant City Manager; Donna Gomez, Manager of Visitor Information Center; Susie Harvey, Director of Chamber of Commerce; Kristy Kneiding, Public Relations Coordinator; Pat Scully, Senior Management Analyst; Gary Goodsell, Director of Marketing -Desert Willow; Piper Close, Full Gallop Marketing; Donna Jean Darby, Civic Arts Committee Liaison; and Recording Secretary Karen Russo. Guests Present: Carolyn Miller, Catherine Walker, Ruth Ann Moore, representatives from Sitewire, representatives from AOL Time Warner. None. A. REOUEST FOR APPROVAL OF MINUTE-;QF THE PROMOTION COMMITTEE MEETING OF MARCH 10, 2001. ues 04/17/01 Rec: By Minute Motion, approve Consent Calendar as presented. Motion by Member Mandelbaum to approve the Minutes as presented, seconded by Member Tretta. Discussion: Piper indicated there is a correction to New Business C, to read "A point was made that a $10,000 contingency is included in the budget under media and an additional $10,000 under collateral." Member Back made a correction on Page 2, Item A, to reflect there are "3 allowed absences". Motion unanimously carried to approve the Minutes of the March 20, 2001 meeting as corrected. B. REOUEST FOR APPROVAL OF BUS SHELTER j"/�j ADVERTISEMENT. �� Rec: By Minute Motion, ratify staff's recommendation for approval of bus shelter advertisement. Motion by Member Mandelbaum, seconded by Member Katz, to ratify staffs recommendation for approval of bus shelter advertisement. Discussion: A question was raised as to whether there was a Bus Shelter subcommittee in place, and if not, one should be established so that the Committee does not have to ratify items. Ms. Gilligan confirmed that a subcommittee was appointed, consisting of members Katz and Paparian. Chairman Post asked for the staff's recommendation. Ms. Gilligan indicated that the Committee is being asked to approve the 2 CONSENT ITEMS HELD OVER NEW BUSINESS 04/17/01 'Minutes Promotion Comm te advertisement. There has not been a need for the subcommittee to meet because the current ad campaign has been approved; i.e. Palm Desert 1s ...". The subcommittee will be asked to meet to review and approve future advertisement on an as -needed basis. Once approval is given by the subcommittee, the item would be put on the Promotion Committee agenda for approval. Motion carried unanimously. None. Chairman Post indicated the Committee has been asked to add two items to the agenda, and two separate motions are required. Proposed Item VIA-1: Sitewire Presentation Motion by Member Back, seconded by Member Kirschenbaum, to add this item to the agenda, unanimously carried. Proposed Item VIF: Subaru Television Commercial Motion by Member Kirschenbaum, seconded by Member Mandelbaum, to add this item to the agenda, unanimously carried. A. REQUEST TO SELECT ANNUAL AD CAMPAIGN FROM CONCEPTS PRESENTED BY SMITH JUNGER WELLMAN. Rec: Select and approve a concept from those presented. Mr. Sandy Wellman displayed three different concepts, with two ads per concept. 3 04/17/01 Minutes Promotion Committee. First concept: "Palm Desert, We Love It Here". Second concept is: "Palm Desert, We Like Your Style". Third concept (coop advertisement with Desert Willow): "Come Play, Come Stay". Discussion: Some members felt it would be preferable to receive information of this type in their agenda packets, to enable them to have the opportunity to review and study it prior to the meeting. Ms. Close indicated that because of the subject matter, staff felt it best to have the item presented to the Committee by Mr. Wellman. There was also discussion about the possibility of holding a special study session to discuss the proposed ad campaign, however, there was not consensus from all members to do this. Ms. Gilligan indicated that the Promotion Committee meets monthly and it is appropriate that items such as this be discussed during the meeting. Decisions cannot be made in a study session; they have to be made in an open meeting where discussion can take place and the general public can be in attendance. Chairman Post felt that study sessions can be helpful, however not every piece of business the Committee handles requires a study session. Items presented for the Committee's consideration need to be reviewed and discussed during an open meeting, and can be continued, if necessary, with the consensus of members. A question was raised as to whether different ad campaigns could be used for different events throughout the year, rather than selecting one concept. Mr. Wellman thought there was a continuity in the look and feel of all the concepts, and felt it depended on the media plan and how many opportunities were available of different types. 4 Minutes Promotion Committee 04/17/01 A question was asked of Ms. Close as to the potential for using all three during particular campaigns. Ms. Close referred to the discussion that took place during the selection of the logo and the desire of the Committee, at that time, to have a new tag line. The tag line is an element that should be consistent. Yes, different ads could conceivably be used for different publications. There is a question, however, as to how cost effective it would be to produce one ad to be used for one magazine. A comment was made concerning the photography and whether other photos could be used rather than what was presented. Ms. Close indicated that the are photographs shown are currently being used in the Vacation Planner and Relocation Guide. One member felt that the amount of money that Palm Desert will spend on a campaign is insignificant in relationship to building an identity, and it would be better to be market specific. There was discussion about limiting the agenda so that an item, such as this, could be given the appropriate amount of time for discussion and action. There was further discussion about the desirability of having a tag line. It was felt that the tag line "PD is Paradise" would fit any of the ad campaigns. Ms. Gilligan confirmed the fact that staff was asked to present a tag line(s). The experts working with the City have been given the assignment to present recommendations, and this is the opportunity for the committee to discuss what has been presented, make a decision on a tag line, or ask that additional tag lines be presented at the next meeting. If the Committee doesn't like a photo, then it should be discussed at this meeting and if there is consensus, another photo will be found. 5 04/17/01 mutes A question was raised as to whether we are able to do co-op advertising, and Ms. Gilligan indicated that yes, it is permissible and it has been done in the past, although careful consideration has to be given not to single out one particular entity. A comment was made that all the ads were very well done. One suggestion was made to make the phone number and website larger. Ms. Close thanked the committee for the comments. She indicated she was in communication with staff and did discuss the best way to present this to the Committee. Mr. Wellman presented a thorough narrative to staff before presenting concepts, and it was felt that this was the best way to present the item to the Committee. Motion by Member Perezchica to table this item to the next meeting. Ms. Close asked if a decision could be made prior to the next meeting because of ad deadlines, one being the Battle At BIGHORN. Ms. Gilligan indicated that participation in the Battle At BIGHORN would have to first be approved by Council. A comment was made that if the Committee didn't like something about the concepts presented, those opinions should be voiced now so that modifications could be made. Chairman Post restated the motion on the floor to table the item, and Member Perezchica rescinded the motion. Motion by Member Katz to choose the tag line "PD is Paradise", using a small "d" in Paradise, seconded by MemberMandelbaum. Discussion: There was consensus that the phone number should be enlarged, along with identifying the telephone number. 6 7 04/17/01 Minutes otion Committee Motion unanimously carried. Motion by Member Mandelbaum to make a decision on the golf ad to allow staff to go forward with that ad for The Battle At BIGHORN, seconded by Member Kermode. Discussion: Due to the time constraints with this one ad, it was desirable to give direction to staff so that the ad could be completed The photograph was discussed, and a request was made to use a different photograph. A question was asked whether the Visitors Center has the capability to use a second or third line so that a record could be kept of the number of calls received as a result of the ad. Motion to approve the golf ad was unanimously carried. Al. PRESENTATION BY SITEWIRE Ms. Kneiding indicated that Sitewire is one of the companies that the website committee is considering for the development of the website. Chairman Post asked for staff's recommendation. Ms. Kneiding asked the committee to consider this company as a possible vendor. Margie Traylor distributed information on Sitewire and made a visual presentation on what their company could offer. Question was asked whether Sitewire had worked with a city before, and the answer was no. Another question was raised as to how long Sitewire had been in business, and the response was 2 years. 7 n tes Promotion C s mm ee 04/17/01 B. REQUEST TO DISTRIBUTE PROMOTION COMMITTEE ROSTER. Rec: By Minute Motion, authorize staff to distribute roster to committee members. At the request of a Committee member, staff is requesting permission to distribute the Promotion Committee roster, along with e-mail addresses. Ms. Gilligan indicated that those not wishing to have their information distributed should contact Karen Russo. Motion by Katz, seconded by Member Kirschenbaum, to distribute the roster. Any member wishing to not be included should contact Karen Russo. Motion carried unanimously. C. REQUEST FOR APPROVAL OF PALM DESERT SUMMER RETAIL PROMOTION. Rec: By Minute Motion, recommend to the City Council the expenditure of $55,000 for the purpose of promoting and advertising the Cool Cash, Hot Deals summer retail program. Ms. Ruth Ann Moore explained that funds for the summer retail promotion are not taken from the Promotion Committee budget. It is set up from monies collected from the Street Fair. In the past, the summer promotion has included the Million Dollars Days Event, the Passport Savings Event, and last year there was a weekend event entitled Summer Sale Extravaganza. A sub -committee arranges this event and approves the artwork and the budget. It has been reformatted to Cool Cash, Hot Deals and is a month long event. It is advertised through The Bright Side, an advertising campaign including newspaper and radio, and this year it is also targeted towards those visiting all hotels within the City. The hotels are 8 Minutes Promotion Committee 04/17/01 asked to distribute the dollar packets to guests upon check -in. This will culminate with the weekend at BIGHORN. Motion by Member Paparian to accept the program as presented, seconded by Member Mandelbaum. Discussion: A question was asked as to whether the sub -committee a sub -committee of the Promotion Committee. The answer was no. A question was raised as to how the $55,000 compared to monies spent in the past on promoting and advertising this event. Ms. Moore responded that the amount is similar to what has been spent in the past. A question was asked as to this event impacts retail sales. Ms. Moore indicated that 150-250 merchants participate, and responses from them are both positive and negative, but some merchants have indicated their sales increased approximately 20%. There has been an overwhelming demand to bring back the Dollars. Piper is working on all the advertising, and the face on the dollar will have the new Palm Desert logo. There was a suggestion to include restaurants. Ms. Moore indicated that the request to participate is sent to every retailer in the City, including all restaurants as well as services; i.e. dry cleaners, tile companies, etc. There was a question as to the results from last year, and Ms. Moore indicated that it was a challenge measuring the results last year because of the way the program was formatted. It was a weekend sales promotion, and those shopping centers that took it to heart and worked it were very successful. However, overall results were not impressive and that is one of the reasons this year's promotion includes the Dollars. 9 Minutes Promotion Committee 04/17/01 Motion to approve summer retail promotion carried unanimously. D. REOUEST FOR SPONSORSHIP OF THE UNITED STATES TENNIS ASSOCIATION MEN'S SATELLITE TOURNAMENT AND PALM DESERT KIDS CARNIVAL. Rec: By Minute Motion, approve request in the amount of $16,500 as the City's third year ofparticipation in this event. Michael McFarlane, Director of Tennis at Shadow Mountain Resort, was present to discuss the event that the City has sponsored in the past. It has been a successful program. The City is being asked to not only sponsor the Kids Carnival which has been done in the past, but actually sponsor the event itself. It is an international tournament and it is promoted across the world and heavily promoted within the United States. Motion by Member Katz, seconded by Member Mandelbaum, to approve the request. A question was raised as to where the $16,500 comes from, and Ms. Gilligan indicated that it is taken from the Special Events budget and not the Promotion Committee budget. If the Committee determines the event has promotional value to the City and recommends approval, it then goes to Council for approval. Motion unanimously carried. E. PRESENTATION FROM AMERICA ON LINE. Ms. Kneiding indicated that Ms. Gilligan, Ms. Gomez and her met with the AOL representatives, and asked them to present the marketing opportunity to the Committee at this meeting 10 04/17/01 mutes Pro o on Committee A question was raised as to whether this was alternative to the previous presentation, and Ms. Kneiding indicated no, it is separate from the prior presentation. At a previous meeting there was concern that we were spending money creating a website and were not spending any money marketing it. AOL is providing one alternative on how to market the site. John Saul and Jason Neswick, AOL representatives, discussed key points. AOL owns the largest properties on the Internet, including Mapquest, Netscape, Compuserve, etc., that reach 80% of the entire web universe. Every 8 out of 10 people going on line are being touched by AOL. In Los Angeles, that translates to 2.5 million households; people who spend money, play golf, and travel. AOL is trackable, and that is what makes them stand out from any other form of media. Every month the City would receive a report of how many people are seeing the ad. In addition to tracking, the City would know how effective their ad is. People are targeted in Los Angeles. Because AOL is an internet service provider and people pay monthly to sign on, AOL knows where they are signing on from and they receive information pertaining to their city. A question was asked whether someone could target specific areas; i.e. Desert Willow Golf Course, and the answer was yes. Once the contract is executed, it is turned over to the account management, the experts of the industry, and they work with the City on a hands- on basis. The cost is $4,000/month for a 6-month term. 11 04/17/01 Minutes Promation Committee There was discussion as to the advantages of this program, including targeting those in the LA area and tracking the hits and results. A question was asked as to whether there was an existing site that those interested could check, and one of AOL's properties is "digitalcity.com". There was a request, and agreement, to have the actual proposal presented to the interne subcommittee for review. F. REQUEST FOR SUBARU TELEVISION COMMERCIAL Ms. Close indicated that it has recently come to their attention that the City is entitled to a 30-60 second television commercial spot in connection with its sponsorship of the Subaru Golf Tournament held at Desert Willow. Mr. Goodsell indicated it is due ASAP. There was a question as to cost. Ms. Close indicated that to produce something of decent quality on video will be approximately $25,000-$30,000. A question was asked whether parts of the in-flight video could be used, and Ms. Close indicated that is a possibility. Ms. Close requested direction from the Committee as far as a spending cap and whether we want to build a commercial that can be used for other opportunities. A suggestion was made to use the Palm Desert, Desert Willow footage, cut it to 60 seconds, and pay editing costs. Ms. Gilligan asked Mr. Goodsell what was used last year, and Mr. Goodsell will look into this. 12 CONTINUED BUSINESS 04/17/01 Minutes P " ►rotion Comm i ee Ms. Gilligan asked Ms. Close for a ballpark figure on the amount it would cost to put something together using current footage, and the response was $5,000-$10,000 for editing time. A question was asked if this could be done in conjunction with the CD Rom, and Ms. Close indicated yes, and it was desirable to do so. Ms. Close asked for a clarification on the time of the spots. Mr. Goodsell indicated Subaru is willing to take either 30 or 60 second commercials. Motion by Member Katz to authorize up to, but not more than, $10,000 to produce a 60-second commercial forSubaru, seconded by Member Mandelbaum. By vote of 6 noes to 5 ayes, motion denied. After further discussion, Ms. Gilligan asked if the item could be agendized for the May meeting to give staff the opportunity to research what was done last year. There was committee agreement to do this. A. REQUEST FROM BIGHORN FOR CITY SPONSORSHIP OF BATTLE AT BIGHORN. Rec: Consider sub -committee's recommendation of $125,000 contribution and make appropriate recommendation to the City Council. Ms. Gilligan indicated that this item was discussed by the sub- committee, consisting of Ric Mandelbaum, Gail Paparian and Peter Sturgeon. All aspects and promotional benefits to the City were 13 04/17/01 Minutes Pro otion Comm ee discussed during the meeting. It was believed that it would cost $150,000 for a 30-second commercial spot. The viewership, according to statistics gathered after the Battle at BIGHORN last year, was second only to the British Open and there was a very high rating. The subcommittee voted 2-1 to recommend $125,000; Members Mandelbaum and Sturgeon voting in favor of $125,000, and Member Paparian voting in opposition. Member Mandelbaum indicated that last year the City contributed $50,000, and Palm Desert was well represented in the promotion. The sub -committee considered a $150,000 sponsorship, which is equivalent to a full commercial spot, and since the City is not getting a full spot, but would be getting exposure during the entire event, it was felt that $125,000 was a fair amount. The money is not taken from the Promotion Committee budget. Member Mandelbaum moved to approve participation in the amount of $125,000 for The Battle At BIGHORN, seconded by Member Sturgeon. Discussion: Member Paparian spoke against giving the Battle At BIGHORN any amount. She believes from a realistic television standpoint, we will get exactly what we got last year without paying anything; they will not ignore the fact that the event takes place in Palm Desert. She feels that even though she was told the lights are on generators, this is a questionable summer as far as energy is concerned. She further feels there are other things the City should promote. Member Mandelbaum indicated the lights are on generators. This is a questionable year and many people may not want to come to the desert. Knowing this is a big weekend, this could have a favorable impact on local businesses. More people will shop, more people will dine, and he feels it is a great opportunity for the City. It is a 14 04/17/01 flutes Pro p on Comm ee chance to get exposure, and that is what the committee is all about. A question was raised as to the additional amount of money that would be needed to advertise the other events. Ms. Kneiding indicated that the City would advertise the events whether or not money is given to BIGHORN. Ms. Close indicated that there was $10,000 budgeted to promote the weekend. Member Perezchica was concerned that there may not be a real return on the investment. It's a great community service event, but for those in business, it may not increase business. Although in favor of this, she was concerned about what would happen if we spend $125,000 and there is a rolling blackout and everything blows up. She feels there is so much strife going on and so much marketing that could be done to bring business in and this is just one weekend and one event that has a huge calling and huge backing and wasn't sure if the $125,000 goes as it may with another use within the City during the summertime. Ms. Kneiding indicated that from staff's perspective, Palm Desert would get television exposure that we couldn't afford, no matter what the season, and it is fair that we pay for it. Ms. Gilligan indicated if there was a rolling blackout and the event did not occur, the City would get its money back. Member Mandelbaum said that he felt it is those that step up to the plate and don't cut back but do a little bit more that are going to really survive and thrive. He feels this is a good event for the desert and doesn't feel we could get the amount of exposure for the money anywhere else. Member Katz said that from an international marketing point of view, Palm Desert is a golf center and we are an exciting and 15 04/17/01 Minutes romotion Committee interesting destination. He feels that spending $125,000 to get the type of reach that Tiger Woods can bring to us in Sweden, Italy, Malaysia and wherever this will air, is reasonable. Viewers will be watching the event, seeing that it is Palm Desert, and possibly make a decision to come here for the holidays. After they are here, they bring others back, and it is those types of investments that pay off in the long run. He believes it is a good investment. Member Tretta asked for clarification that last year the City gave $50,000. Ms. Kneiding indicated that at the last meeting, the vignettes were shown, we have the television ratings, we know how many people saw it and heard Palm Desert 14 times. Those were part of the benefits received. Member Tretta asked what additional benefit we would receive in giving them an extra $75,000 this year as opposed to giving them $50,000, the same as last year. Ms. Gilligan said that she didn't feel we could quantify what we got for $50,000. It is a tremendously viewed, international event, and difficult to quantify. Ms. Gilligan feels that we couldn't buy that type of exposure for $150,000. Ms. Close mentioned that the foreign countries are the hardest markets for the City to reach, the most impossible, financially, and they are the people who love the summer heat the most that will come here in July -August. Member Kirschenbaum mentioned that he didn't feel we would get any more than we did last year, but it is a question of whether we should step up to the plate to pay for the value we are getting. Member Katz said there may be an added value, because last year was the first year and there is word of mouth with the number of 16 OLD BUSINESS 04/17/01 Minutes Pro otion Comm' e people who watched it. He feels that the audience that watches it this year will be greater than the audience that watched last year, although that can't be guaranteed, only predicted. Member Paparian agreed that there may be no direct quantification, but asked Ms. Gomez if she was aware if the Visitors Center got additional phone calls after the Battle At BIGHORN. Her concern was that if Tiger Woods becomes ill, there is no program. Motion on the floor to approve the $125,000 for The Battle At BIGHORN promotion, carried by a vote of 9 ayes, 2 noes. A REQUEST TO PROCEED WITH IN-FLIGHT VIDEO EDIT AND PRODUCTION OF CD ROMS. Rec: Approve the in-flight video edit and production of CD Roms. Ms. Close shared that she found out that there is a dye cut for a CD Rom similar to the outline of our logo in the shape of PD. 10,000 disks would cost $.89 each with a set up charge of $425, and $.20 for the sleeve that they would go into. A CD that size would take up to a 5 minute video, more than what we need, and all we have to do is edit the in-flight video at a cost of approximately $5,000. Motion to approve made by Member Paparian, seconded by Member Mandelbaum. A question was asked as to the cost of the postcards. Ms. Close indicated there is $8,000 in the budget. Motion carried by unanimous vote. 17 REPORTS ON CITY COUNCIL ACTION REPORTS AND REMARKS 04/17/01 nutes lion C mrni ee None. A. INFORMATIONAL ITEMS 1. Visitor Information Center Activity Report 2001. B. REVIEW AND UPDATE 1. Visitor Information Center Ms. Gomez displayed new merchandise available with the new logo. 2. Website Subcommittee Ms. Kneiding indicated that the subcommittee met and established goals and objectives for the site. 3. McCallum Theatre No report. 4. Civic Arts Committee No report. 5. Report from Chamber of Commerce No report. %% 4 18 Minutes P omo..... ion Comm.ee 04/17/01 6. Desert Willow Golf Resort Large attendance for Easter brunch. 7. Full Gallop Marketing Ms. Close mentioned the summer ad campaign is underway. They are in the process of creating a jingle package for radio commercial campaigns. SpringFest ad was in place. Member Perezchica indicated that it was difficult to read. Currently working on the 2002 calendar for the City of Palm Desert. Theme is education, and photo shoots have been started. Ms. Close showed a sample of the postcard series. 8. News Bureau Activities Ms. Kneiding mentioned that the Mother/Child sculpture will be dedicated on May 3 in Civic Center Park, 4:30 p.m. Following that is the art and essay awards for students in Council Chambers. In the process of sending out the lineup of the concert/movie series. 9. Committee Chairman Chairman Post thanked the Committee for their support at the recent Spring Awards. 19 ADJOURNMENT 04/17/01 Minutes PromotionComm' ee He acknowledged that Member Katz survived his emergency surgery and expressed pleasure in having him back with the Committee. 10. Committee Members Member Paparian asked if it would be practical to take a roll call vote. Chairman Post said that it is a member's option to call for a roll call vote on a particular measure. Member Mandelbaum thanked staff for bringing forth well thought out and extremely good proposals during today's meeting. The presentation from Sitewire was one of the best he has seen. 11. Staff No report. Chairman Post adjourned the meeting at 5:30 p.m. KAREN RUSSO Recording Secretary 20