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HomeMy WebLinkAboutReinstatement to the Palm Springs CVA Rescind Letter of WithdrawalCITY OF PALM DESERT Community Services Division Staff Report REQUEST: REQUEST FOR APPROVAL OF REINSTATEMENT OF THE CITY OF PALM DESERT'S MEMBERSHIP AS A PARTNER IN THE PALM SPRINGS DESERT RESORTS CONVENTION & VISITORS AUTHORITY (CVA) BY RESCINDING ITS LETTER OF WITHDRAWAL SUBMITTED BY: Sheila R. Gilligan, Assistant City Manager for Community Services DATE: June 22, 2006 CONTENT: 1. Palm Springs Desert Resorts CVA Research Memo dated 04/10/06 2. Letter of Withdrawal dated 11/03/05 3. Minutes of City Council Meeting of 10/27/05 RECOMMENDATION: By Minute Motion: 1) Rescind the City of Palm Desert's November 3, 2005, letter of withdrawal from membership in the Palm Springs Desert Resorts Convention & Visitors Authority (CVA); 2) direct staff to provide an update at mid -year budget review in January 2007. BACKGROUND: At a Study Session with the Palm Desert City Council on Tuesday, May 30, 2006, the attached report was presented to the Council. CVA President & CEO Jeff Beckelman and his staff were present to respond to Council questions. Staff continues to recommend that the City Council rescind its letter of withdrawal to provide the reorganized CVA the opportunity to meet its newly adopted goals and objectives. Staff continues to work with the CVA on a weekly basis through its Marketing Department and will further this participation in the next year. Staff believes that Mr. Beckelman has made a concerted effort to include not just Palm Desert but other Valley cities in the new marketing plan and website redesign. The issue of whether or not the CVA should be called the "Palm Springs Desert Resorts Convention & Visitors Authority" remains a decision for the JPA Board. As Mr. Beckelman stated, naming ideas have already been brought forward, and there will be discussion with not only the Board but the Hospitality Industry Business Council (HIBC) as well. • /-'SHEILA R. L1AN CARLOS L. ORTEGA ACM/COMMU $ tyi ri r C IL ACTION : CITY MANAGER APPRO DENIED RECE ' D OTHER t+fEETI • TE AYES :. � ►, ( NOES : �t ' ABSENT: ABSTAIN: VERIFIED BY: fiat na1_nn_ 4 A f)... le l /T 4i- 1 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 27, 2005 staff was making the contacts with the business community and with residents to generate a better response. Mayor Pro Tern Ferguson added that when he and Mayor Crites met with the Chairman of the Public Utilities Commission, they had just released $1.2 billion of Energy Efficiency money to be spent Statewide. A good portion of that money went to Southern California Edison, and they met with them to discuss how much it would cost to do a comprehensive Citywide Energy Efficiency Program in Palm Desert. He said the Energy Coalition estimated it would cost upwards of $50 million; Edison officials said they could do that without having to go back to the CPUC and asked Palm Desert to make a proposal. He added that when the Estonia Protocol was discussed with the CPUC, the Chairman advised not to show him what a rich city could do but what any city in California could do. Therefore, his goal was to carry out this program with as little Palm Desert money as possible, while committing a respectable enough amount to earn the CPUC's $50 million. Councilman Kelly cautioned that "free" money was often a powerful lure, but once you were at the point of no return, you discovered it wasn't free anymore. Mayor Crites acknowledged that point, adding that was one of the reasons the City Manager wanted the City to be in charge of the program and not someone else. Councilman Spiegel moved to, by Minute Motion, authorize the City Manager to present the proposed plan at the Aspen Accord Meeting in San Francisco. Motion was seconded by Ferguson and carried by 4-1 vote, with Benson voting NO. XI. CONTINUED BUSINESS A. REQUEST FOR CITY COUNCIL DIRECTION RELATIVE TO CONTINUED PARTICIPATION IN THE PALM SPRINGS DESERT RESORTS CONVENTION & VISITORS AUTHORITY (CVA) (Continued from the meeting of October 13, 2005). Mr. Ortega stated that at the last City Council Meeting, the City Attorney was asked to provide his opinion on the City's ability to withdraw from the CVA and what was required. He said even though staff was not asked for an opinion on the impacts if the City decided to give notice, it had provided a recommendation. He elaborated that if the City has certain concerns at this time, the 13-month withdrawal period would require the City to pay for next year's dues, but during that time, staff could also look at the CVA operations, what would occur if the City decided not to continue, and what were some of the things the City could do on its own to promote its hotels and in 17 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 27, 2005 conjunction with many things it was already doing. He offered to answer anything about the report that was provided. In answer to question, Mr. Erwin said any notice given after December 1 would be less than the 13 months required; therefore, it would not be an effective withdrawal until December 31, 2007. MR. STEVE MORRIS, Interim President and CEO of the Palm Springs Desert Resorts Convention and Visitors Authority, Rancho Mirage, CA, said he'd served in the interim capacity for the last five and a half months, which would conclude tomorrow. He noted that this was his last official meeting, with his first on his very first day here being for a similar purpose with the City of Indio. He assumed that the letter he'd authored and forwarded to the City Council had been received and read, and hoped it provided some new information about what the CVA was doing for the City of Palm Desert today. (Mayor Crites acknowledged that the letter was entered into the record.) Further, he realized that this was a longstanding conversation with the City of Palm Desert, as it was with other cities who were also members of the CVA's Joint Powers Authority, which at moments was a fragile coalition. He said part of the reason that the withdrawal penalties are designed to be as tough as they are was to mace it difficult to come and go capriciously. He agreed that without the pa,ameters of the lengthy notice and reentry requirements, the agency probably would have never worked in the first place. Additionally, he said in his experience, there is no similar organization to this one anywhere —no convention and visitors bureau/authority anywhere in the world that has nine governments, especially nine that are in such close proximity to one another —it is a unique entity and a unique place. He submitted that while it's been extremely difficult and challenging for this organization in recent months —the most challenging of his professional career, likening it to bringing a sinking ship back to safe harbor during countless meetings and hours of energy invested —the organization was in better shape today than it had ever been in its entire history. Regardless of the specific formal action to be taken by the City Council, he hoped thoughtful consideration would be given to what happens to the CVA in the coming year. He believed some good things would occur, but if they didn't, it would be another matter. He offered that there were some terrific staff members at the CVA who work very hard, are very dedicated and very capable, and with the leadership from the CVA Executive Committee and Hospitality Industry Business Council (HIBC), there were many people who cared and invested a lot of time and energy for its success. He said if the City chose to give notice, he asked for thoughtful reflection during the next 14 months before anything became a fait acommpli. He offered to answer questions. Councilmember Benson stated she felt it was ironic after 15 years that no one had come to her personally to ask what she thought about withdrawing. MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 27, 2005 She had asked the City Council for direction on three issues that she could take to her colleagues on the CVA, which she did. She thought the remaining issues would be reviewed over the next year to see if it was necessary to withdraw. She offered that many changes had been made, many good things had happened, and she knew there was support for some of the things that Palm Desert took to the CVA. She felt it was premature and not Palm Desert's way to withdraw from something and then find out why without a good case for withdrawing to begin with —it should wait to conduct the study with the community (i.e., restaurants, hotels) to find out what it wanted to do. She said the contemplated action would make Palm Desert a quitter and not a leader, which isn't the reputation that built the City. After the last 15 years, $15 million, and reaping the benefits of the CVA's efforts for the Valley, she didn't think it was all bad, with future benefits yet to come. She agreed with the Mayor's memo and that the City should look at certain things, but they shouldn't be looked at after the fact. She said rushing to this action would put a blight on the City of Palm Desert by tearing down an organization that's worked hard the past 15 years. She felt her fellow Councilmembers probably didn't care what she thought, and knew they would vote the way they wanted to, but she wanted to let them know that she no longer cared to represent the City on the CVA nor on the City's Marketing Committee, and she asked that both positions be reassigned. Councilman Kelly said he had a problem with Councilmember Benson's position, as she was at the last City Council Meeting where the issue was openly discussed. Councilmember Benson countered that there was an open discussion about things, but it was the Mayor Pro Tern who was insistent that the procedure to withdraw be brought back. She said she wasn't in favor of withdrawing now, but he wanted the information anyway. Relative to the Mayor's memo, Councilman Kelly went on to comment that he also felt very strongly about the same three items. He didn't have a problem in working with the CVA and trying to make it better, emphasizing that he felt it needed a name change and that the people who direct it should be elected officials. He wasn't opposed to the City's looking at it another year; the City could afford to do so, and if things didn't go well, the notice could be given next year. Councilmember Benson cautioned that by putting in the notice to withdraw now, Palm Desert's elected cfficials will have no say in any future changes on the CVA; none of Palm Desert's members of the HIBC can vote, nor can any of its restaurants or hotels that serve any of the committees there —Palm Desert will be rendered ineffective. However, she felt that if the City waited and it kept its seat, not giving notice, there was a good chance that it could effect some change. We] MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 27, 2005 Councilman Kelly believed no one had made up their mind yet, and this was the time to fully discuss the issue. Mayor Crites explained that the memo he sent on October 10 had three specific issues. On a more general note, the memo then said that he was interested in a recommendation to the City Council that would be in time for it to make a decision on continued membership for the CVA's next fiscal year. Councilmember Benson disagreed. Mayor Crites went on to say that he agreed with what was presented today by the CVA's Interim CEO, in that the City of Palm Desert needed to think very carefully about ultimately not being a part of the CVA. Beyond those three issues, his longtime perception was that the benefits of the CVA fell disproportionately to some members and not to the other cities. He agreed that the City needed to work very closely with the CVA over the next several months, and he didn't think it necessarily meant sitting on the elected board to do that —if the CVA was interested in Palm Desert's point of view, fine, and if not, fine too. He believed the matter of a more equitable look at how those funds are allocated and the results for Palm Desert's businesses were topics of discussion that needed to take place. He didn't feel setting in motion a year of review, which gives notice, was not indicative of Palm Desert having to withdraw. In fact, he hoped it wouldn't come to that, but the option would be available; it wouldn't be at the end of the next year without doing something now. He felt that: waiting two years would not be a judicious decision. Mayor Pro Tern Ferguson said he was somewhat taken aback that the issue of withdrawing wasn't raised in the Mayor's memo. He said since the Mayor was in New Zealand, he carried the news of that memo and has now been called a "ringleader for a renegade charge out of the CVA," has been told he doesn't know what he's doing and that he didn't have all his facts straight. After working as hard as he could to poke holes in the Mayor's logic, which is that if the JPA Bylaws require filing notice by November 30 to preserve an automatic defacto commitment of another million dollars on top of the million the City will fund it next year versus filing the notice and using the 13 months for due diligence and investigation, he felt at the end of the period the City may very well decide to stay a member of the CVA with no net loss to either entity. Conversely, he said the City may come up with answers to the Mayor's questions that say otherwise; if the City went that way, it would save a million dollars. Being asked to pledge a million dollars on the faith and hope of a guy who hasn't even gotten to work yet will meet Palm Desert's needs versus simply complying with a technical requirement of the bylaws to preserve its options during that one-year period, he didn't feel caused any harm; and the people he's spoken to just assume that the City is getting out of the CVA, which he also thought was ridiculous, because Palm Desert has always supported Valley -wide organizations. He said he probably differed 20 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 27, 2005 with his colleagues regarding use of the Palm Springs name, but maybe distinctions could be drawn between names of organizations and with advertising. He felt dedicating a full-time person to the CVA for just conventions in Palm Springs would add to the disproportionality that he's already concerned about. He thanked Mr. Morris for the numbers, recalling the last four years of working with Mike Fife, the CVA, and trying to get this information —only Valley -wide statistics were ever given. He said three years ago the City stepped it up and insisted on more information, receiving the Marshall Murdaugh audit, which said the CVA was squeaky clean but not why or how; the desire for that information predated everything that the CVA has been through, acknowledging Councilmember Benson's years of diligent service. He said it was not a vote of no confidence in the CVA, but the current numbers, showing 29,000 room nights booked in Palm Desert and nearly 58,000 in Palm Springs, reflected a 2:1 disparity, which was pretty disproportionate. He further appreciated Mr. Morris' letterthat explained why those numbers weren't as warped as they may seem —all things that the City should look at during the coming year. He'd met with members of Palm Desert's business community about what their perceived loss would be if the City simply filed notice, and today also talked with hoteliers that he hadn't talked to in years; he'd had an endless stream of phone calls. At the end of the day, he didn't know why the City couldn't do what Councilmember Benson wanted, to work as hard as it can to make the CVA successful and hope that it does, and at the same time preserve its options on future years' funding until there was better information in hand. He pointed out that nothing would preclude the City from reaffirming the CVA a year from now, not getting out, and there would be no interruption in funding, although there may be some uncertainty during that period. Historically during his tenure, he said the only time the CVA is heard from is when the City is unhappy. With its nine governments, all the associated politics that go along with that, and Palm Desert's $2 million worth of funding as a member, he suspected the CVA would probably work faster to address Palm Desert's proportionality concern if it knew it only had $1 million for now and the other $1 million was contingent upon doing so. He felt reality dictates that politics would be a little bit more compressed and focused on the proportionality concerns, perhaps the name concerns, and Palm Desert would have the opportunity to prudently decide at a future date whether or not it wanted to commit for another million dollars. It was a business decision, not personal or political, and not a swipe at Palm Springs; it was a decision based on data showing disproportionality, which he believed was worth looking at. Councilmember Benson added that the hotel report did not show other small hotels or the money coming from people staying, shopping, buying homes in Palm Desert, or any of the other residual benefits the City enjoys even with only 29,000 rooms. 21 MINUTES REGULAR PALM DESERT CITY COUNCIL MEETING OCTOBER 27, 2005 Councilman Spiegel said he hoped the same thing would happen with the CVA that happened with the Palm Springs Film Festival. Last year they came to the City for financial support and received $50,000 on the promise that they would do a lot of work to promote Palm Desert; in retrospect, almost none of that was done. He went on to say they came back to the City's Marketing Committee again this year for another $50,000, and the Committee said that didn't rnake any sense given last year's performance. The Film Festival folks then came back with a program where this year they'll be working with UCR (University of California, Riverside) with directors and writers, etc.; they'll be showing films for residents at Cinemas Palme d'Or, as well as many other benefits. He said that made this year's $50,000 request more attractive and resulted in its ultimate approval by the City Council, acknowledging it was no comparison to the million dollars being discussed here. So it was his position that if things are going in the right direction for the City of Palm Desert, and he finds that out in three months, the City's back in without losing anything. But he said this was notice that Palm Desert was currently unhappy. Mayor Pro Tern Ferguson noted that he and Councilman Kelly had been through something like this in the past couple of years with the City of Indian Wells when it filed notice of intent to withdraw from a similar Joint Powers Authority, the Cove Communities Services Commission that provided police, fire and paramedic services to three cities. He said Indian Wells had projected it would be paying a disproportionate amount for services that would basically be driven by growth in the Cities of Rancho Mirage and Palm Desert. The exercise resulted in a thorough review and renegotiation of the formula that now serves all three cities far better, and the organization is now better off for it. He wasn't seeing the downside that others were in the subject instance, other than distinguishing between a notice of intent to consider withdrawing versus actually getting out. He said people automatically assumed it was a no confidence vote, it wasn't for him. He saw a huge upside to going through the process, agreeing with Councilman Spiegel's analogy with the Film Festival. Councilman Kelly agreed. Councilman Spiegel moved to, by Minute Motion, authorize the notification for withdrawal from the Palm Springs Desert Resorts Convention and Visitors Authority. Motion was seconded by Ferguson and carried on a vote of 4-1, with Benson voting NO. Councilmember Benson reiterated the request that her current representation of the City Council on both the CVA and the City's Marketing Committee be reassigned. 22 73-51 o FRET) WARING DRIVE PALM DESERT, CALIFORNIA 92260--2 78 TEI.:76fD 346-06EE FAX:760 340--0574 iufo<t'palm-dcscrt.oE g November 3, 2005 Mr. Tom Freeman, Chairman Palm Springs Desert Resorts Convention and Visitors Authority 71-000 Highway 111 Rancho Mirage, California 92270 Dear Mr. Freeman: Subject: Official Notice of Intent to Withdraw At its regular meeting of October 27, 2005, the Palm Desert City Council considered the subject withdrawal from the Palm Springs Desert Resorts Convention and Visitors Authority and took the following action: By Minute Motion, authorized exercising its right, pursuant to the Joint Powers Agreement creating the Palm Springs Desert Resorts Convention and Visitors Authority, to issue its notice of intent to withdraw from the organization effective December 31, 2006. Staff was directed to so advise the CVA as well as its member agencies. Therefore, this letter shall serve as the City of Palm Desert's official Notice of Intent to Withdraw. Sincerely, RACHELLE D. KLASSEN, CMC CITY CLERK SRG:mpg cc: Jeff B. Beckelman, President & CEO, Palm Springs Desert Resorts CVA Clerk of the Board, County of Riverside City Clerk, City of Cathedral City City Clerk, City of Desert Hot Springs City Clerk, City of Indio City Clerk, City of Indian Wells City Clerk, City of La Quints City Clerk, City of Palm Springs C;ty Clerk, City of Ranchc Mirage CMG TY 0 F HkLk; � 0)ESEE: R.1;f' i0WOMMUNITY SERVICES INTR.OrFI* E MEMORANIDUM, TO: Sheila Gilligan, Assistant 1City Ma`;agei* FROM: Kristy Kneiding, Marketing Manager DATE: April *10, 2006 SUBJECT: Palm Springs Desert Resorts VA Research At its meeting of November 10, 2005, City Council voted to give notice for Palm Desert to withdraw from the Palm Springs Desert Resorts Convention and Visitors Authority (CVA). At that time, staff was directed to research the impact on businesses in Palm Desert. Staff set out with two main goals: IV To determine the value of the Palm Springs Desert Resorts Convention and Visitors Authority (CVA) as it relates to Palm Desert businesses; o To determine the effects on businesses should Palm Desert not continue as a partner with the CVA. Because the decision to withdraw from the CVA would impact every Palm Desert business that is a CVA member, the objective of the research plan was to communicate with Palm Desert CVA members to seek their feedback. Three main tactics were employed to qualify the objective: Meet personally with "convention" designated hotel general managers and directors of sales, the Chamber of Commerce, El Paseo Business Association, McCallum Theatre, and The Living Desert. Hotel meetings included: Desert Springs JW Marriott Resort & Spa, Courtyard and Residence Inn, Embassy Suites, Best Western, Hampton Inn, Shadow Mountain Resort, and Holiday inn :xpress. DisAbLit—e a survey to the business members o ani�ourage feedback. (Sample survey packet attached.) `r' c i�olC` a Cornri U.TIity fo:"LIn� � aliowlin`,' 'those ii" to �s"ed to ':xp; - ss their' a.nd learn mc..­e abcu'_- tr:e hi_ctoi y of Cou cil's ri:ac:sicn i cc;nside: 'v?�lti Are -wing. Several commo i then,)es were found at the hotel ri neetings: Recognize the importance of the OVA but do not directly benefit. Receive leads, but they are not appropriate for most members. Those who participate in CVA co-ops see very little, if any, return on investment. Many don't receive any leads from the ads. The trickle -down effect was substantiated in that when Desert Springs JW Marriott is full, so are other Palm Desert properties. However, there is no trickle -down room nights from the Palm Springs Convention Center or other neighboring cities. The .majority believe the name "Palrn Springs" is the most recognizable for the area and agree with its usage in the promotion of the Valley. Results Approximately 150 surveys were mailed. Eighteen surveys were returned, of which four were from organizations we met with personally. The results, as detailed below, were close to half being in support of the CVA and half not supporting the organization. The majority of responders (11) were Palm Partners, paying $395 for membership, while two were Santa Rosa members at $695, two San Jacinto at $895, and three paid "Other". Eleven of the respondents do not participate in CVA`. co-op advertising opportunities. Three do participate, and four did not answer the question. © Twelve respondents do not purchase space in CVA collateral materials, while filve said they did. `Nben asked if the CVA met "GI'. you, expectzticns„ as a mer, ber, si��_ responded "yes", nine responded "no", while one said "some", and the remaining two did not answer the cluestion i. IJ J,I�UL 'Il u�j�l .=/`:?W�V:. ll���+�•�: [•CC�, L-i•`•I ir,� `C�c:7 �k l:J •. lJ L r.^ iJ 4.1,`�,fti SP 1.a '�' III it i i' "U )ICI), IFt. �:��[.LLUL''�:[I,; • �IJ _ l!� u-,; o�U%l w���9-C: _ _., ���' 0%�i;`lJ`, „-dlv�' Il, `� y; ,ill.. Si ouid Palm Desert use its existing CVsF°: c of :'crib Ation toe-Xpand its oVifil iregion n`iairlceting ef,'cris? Fivice responded "yes', seven "no", bitic "maybe", and four had no respons;e. G With regards to supporting a Mic 'Malley CVA, five said "yes", seven "no", and six said "maybe". ® Rune respondents agreed that the Palm Springs name should be removed, six disagreed, and three responded "maybe" or had no response. When asked if Palm Desert should withdraw from the CVA, three responded "yes", six said "no", and nine were unsure or didn't answer. in addition, only eight community members attended the informational meeting at which Councilman Spiegel discussed the City's position. Of all the in -person interviews, only two were major supporters of the CVA. One "convention" hotel general manager, who previously managed a hotel in Palm Springs, is actively involved in CVA happenings. The other was the Living Desert Zoo and Gardens. That attraction benefits greatly from publicity generated by CVA. Annually, anywhere from 20 — 30 journalist and video crews visit the Living Desert, and many write about the experience, which results in national and international publicity. All those leads are generated from the CVA, with a membership cost of just $695. Desert Springs JW Marriott Resort & Spa is interested in partnering with the City of Palm Desert for promotion should the City decide to leave the CVA. Last summer the City contributed $40,000 to co-op with the Marriott in its advertising campaign, resulting in 1,056 room nights booked. This was deemed a very successful endeavor that the Marriott would be interested in repeating, possibly on a grander scale. Additionaliy, the Gardens on El Paseo and the El Paseo Business Improvement District were pleased with the amount of materials they distributed to groups brought in by the CVA but are unable to calculate how much return they received. During the interview process, orse person commented that they don't exactly know wha-t- benefits or business leads they receive from the CVA, but they are hesitant to find cut by notrenewing. gig. This isentirnent was a co[nn non one. C ondLn3O"n"f BS �. Cased on the interviews conduc`cd and star!"s invo(vernenY vriii the CVA, it is difficult to assess the value and benefits received by the City's hotels any; businesses. 'However, i" became clear than the CVA is not providing the type of quality leads that are matches for Palm Desert hotels. It appears there is a gap that exists in booking rooms at hotels that cannot service a huge convention but still rely on group sales for a large part of their customer base. As a result or information received from the interviews, it appears that Palm Desert's hotels could be successful without the assistance of the CVA, provided another organization such as the City has an active role in bringing in group business. 3. From the lack of survey results, and from discussions at the many interviews, it appears that most businesses do not rely directly on the CVA for customers and leads. That being said, however, Palm Desert restaurants and retail stores do rely on visitors to the surrounding cities (some of which are visitors booked by the CVA) to generate business. 4. Should Palm Desert's withdrawal result in the demise of a Valley -wide CVA, all City businesses would suffer, especially restaurants and retail. if the CVA continued to operate without Palm Desert's support, it appears our businesses would still benefit from the bookings in neighboring cities. 5. Regardless of whether or not Palm Desert stays a member of the CVA, the City has benefited from this research process. Both the Visitor Center and Marketing Department have imprcved relationships and gained greater insights on how to better serve the needs of our hotels, attractions, and businesses. 6. Name Recognition: At one time the City of Palm Desert rode the coattails of the Palm Springs name and destination. Now that Palm Desert has matured and become a destination in and of itself, the reliance on the Palm Springs name has dwindled, but that is not true for all cities in the Desert Resorts. Understandably, Palm Desert has different offerings than the neighboring cities and would prefer marketing only those benefits that are common amongst all cities. However, it is difficult to dispute that Palm Springs is still the recognizable name for the overall destination, regardless or tre dinere,T experience �iisitors may have it tha city. 4. ��p)r���r.�b��j�i f_j�-`77 -i`iI, i:SC ,�: ;Tlr�" '• � .r-.:1� f �,�C; J^0i mail Ll�1 i. na, }l l •:fi^ rVB ��'.-.'O Slid'.°: ITS., G. f!i�LO�;', Regarding the C_VAs use of the na; ne F* n Springs Desert Resc.rcv, Palm, (Desert b8r efi:`s frorn the exposure cf Vie area. `M Zile it is not di; rA, narne recognition, many visit -ors coming tc "` alrn Springs" uAtima'rely find, therr;selves in Palm Desert to shcp, dine, golf, etc. . he majority of vacationers do not care which city they are in — they oily care about t-he experience they are having. By educating the visitors cnce they are in Palm Desert and by providing a unique, e joyable Experience while in out.. City, the visitors are more likely to remember which city they were in and hopefully return to Palm Desert. 7. Staff does have concerns about the CVA using the website address www.lialmscrin.cysusa.com. With no mention of the "desert resorts" to support the name Palm Springs, this is a direct marketing advantage for the City of Palm Springs. Additionally, the design of that website does not accurately represent all the Desert Resort cities but directly reflects the Palm Springs image and marketing message. Recom, mendations Should Palm Desert decide to stay a member of the CVA, staff: has the following recommendations: CVA must have greater accountability for the number of rooms booked with hotels. Palm Desert wants tc see accuracy and agreement between our hotels and the CVA. A new reporting system is in place, but it has yet to be rendered accurate. Convention vs. ikon -Convention Hotels: Staff suggests taking a closer look at the definition of a convention hotel versus a non -convention hotel. Palm Desert has several hotels that are categorized as convention hotels but which truly should be non -convention based on size and meeting space. Should all Palm Desert hotels, with the exception of the Desert Springs JW Marriott Resort & Spa and Embassy Suites, be reclassified as non -convention hotels, the City would save over $100,000 in TOT that was previously paid to the CVA. It is important for Palm Desert to continue to be actively involved with the CVA, including participation in its meetings and special events, in order to understand its function and stay abreast of the iatest facts and figures generated by the organization. CD Futurs Considerations: Wouid tne CVA be open to offering a third category of ;hotel that is neither "Convention" nor "Non -Convention" but E �- cli[%@ .».��J6''JLJIj�> �:-� ��f . �r���a.� l: � ._ i��.'�C:r`.1•i'� i. somewhere in betlnJeer ? !�vrraps ti ie ' C T formule, co! id inciirde payrnent of cne percent. This would provide another target for It!le CVA sales Learn, vjiden!ng their reach 'for smaller group business. ± he rna;ori :y ;f Palm Desert hotels would berlefit from, the soiiciLaticn a, 'this 'type CT business. if Palm Desert withdre j is rneMbership from the CVA, the ��oliow!ng would r.--- to be considered: Reorganize the Marketing Department and add staff. The department would need to include a sales -oriented tourism focus that would be selling Palm Desert as its own destinatioi to meeting planners and groups. Launch a coordinated communication effort with hoteliers on how to rn.eel their needs. Arrange for regular meetings with General Managers and Sales and Marketing Directors. Significantly increase marketing dollars to undertake an aggressive image - awareness campaign. Consider additional partnership, co-op advertising with the Marriott. All of the above considerations could call for the need to significantly increase the marketing budget, increase personnel costs, and result in additional travel expenditures, etc. During this research phase, the CVA has introduced its new President, Jeff Beckelman, as well as new staff in top-level positions within the organization. They have also conducted a community meeting for marketing input, which approximately 20 people attended (not including City and CVA representatives). The new regime appears to be heading it i an exciting direction with new sales goals, tracking methods, and a new marketing plan which just received unanimous approval from the CVAG TAC Committee Since his arrival to the CVA; Mr. Beckelman has made a very noticeable effor" to communicate with staff and elected officials of all cities. His effort to better educate and communicate with his Board of Directors has been significant. ;-le has instituted a new agenda process; implemented very necessary policies and auditing practices; and has presented a well -organized budget and an excltinG ;Marketing Plan. Staff is cautiously optimistic that Mr. Beckelman is a leader who will improve the quality of the CVA whi!e at the same time expanding and accomplishing its goals. on i aril it , R� ti ivy d`iRS TC Staff vvou,d, t' ierefore, rvcorni-n ;nd vvid dr avling i s Notice tc Wiitdra-of ' o ;3,.-oJid e the new leadership su.fficient time in w"l;ch it can evoke -change. !t is noted that if he City Council was to withdraw saic notice, the sarY e opportunity wculd ce availabie in 2007 if the goais and objectives of the CVA have not been ,nia-L Palm Desert has •taken a Leadership role in its own prop o'tion, and it is recognized that resulis can only been seen and/or measured cver time. By revoking the City's Notice, the City Council wouid it effect be giving the CV.,-\ ar, extension of time in which it could provide results that Palm Desert's return on its contribution was actually proving to be more equitable and profitable. Staff also recommends the City continue its closer involvement with the CVA and its staff in an attempt to further the interests of Palm Desert while also monitoring the efforts of the CVA. Kristy Kneiding Marketing Manager 7