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HomeMy WebLinkAboutMARKT CMTE - 01/16/07 . f ALM D ES E RT PALM DESERT MARKETING COMMITTEE APPROVED MINUTES Tuesday, January 16, 2007 — 2:00 p.m. Administrative Conference Room I. CALL TO ORDER Chairwoman Bowen called the meeting to order at 2:00 p.m. II. ROLL CALL Members Present: Members Absent: Norine Bowen, Vice-Chair Emily Bird-Hrivnak Rick Darius Michael Shimer Ric Mandelbaum Sara O'Flynn, Chair Staff/Others Present: Robert Spiegel, Councilmember Richard Kelly, Mayor Pro Tempore Sheila Gilligan, Assistant City Manager Kristy Kneiding, Marketing Manager David Hermann, Management Analyst Piper Close, Full Gallop Marketing Mike Osgood, Desert Willow Lori Wimbish, Recording Secretary III. ORAL COMMUNICATIONS Kristy Kneiding introduced Gary Piotrowski the new General Manager of Desert Willow Golf Resort. IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF DECEMBER 5, 2006 Ric Mandelbaum moved, by Minute Motion, to approve the minutes of the December 5, 2006, meeting. Motion was seconded by Rick Darius and carried 4-0. APPROVED MINUTES PALM DESERT MARKETING COMMITTEE JANUARY 16,2007 V. NEW BUSINESS A. SELECTION OF COMMITTEE CHAIR AND VICE-CHAIR Norine Bowen moved to, by Minute Motion, appoint Sara O'Flynn as Chairwoman for 2007. Motion was seconded by Mr. Mandelbaum and carried 4-0. Ms. O'Flynn moved to, by Minute Motion, appoint Ms. Bowen as Vice-Chairwoman for 2007. Motion was seconded by Mr. Mandelbaum and carried 4-0. B. PSDRCVA SPOT MARKETING CO-OP REQUEST WOODY PEEK, Vice President Travel Industry Sales & Membership with the CVA addressed the Committee. Mr. Peek stated that the objective of the program was to increase the overafl long and short-term air service to Palm Springs International Airport. Both the convention and leisure sides of the CVA find it a hindrance in selling the destination when airline service declines during the summer and shoulder periods. The CVA has met with Alaska and American Ai�lines to develop partnerships to work specifically on developing air service. In the past, there was a program wherein the airlines were paid directly; however, the CVA was not recommending that approach. The CVA would buy print ads, radio time, and some magazines and newspapers to set up promotions in those markets around the time when the airline service begins to decline. The program will begin its first eight-week run for April and May in key markets that the airlines determined were important to them. The CVA contributed $200,000 from its 2007 budget to cover two markets. Those two markets would include flights from Portland and San Francisco serviced by Alaska Airlines. Alaska Airlines would run on-line promotions, discounted fares, and whatever else was needed to drive the appeal of the program. Alaska Airlines would also be giving incentives to its sales representatives for selling the Palm Springs destination and service into that airport. In order to form partnerships with the Valley cities, the CVA was asking that each city contribute $50,000 to help expand the markets. With the additional funds contributed by Valley cities the CVA could promote in the Seattle and Chicago markets. The CVA met with representatives from the Palm Springs Airport and the aforementioned destinations were at the top of the Origin 8� Destination list. Therefore, those established markets could, through promotion and strengthening, be year round markets for the Valley. Alaska Airlines were receiving new aircraft at the end of 2007, and where they decide to put those flights will be based on what the market is producing. The goal of the CVA would be to increase the yield and load factors so that Alaska Airlines would consider Palm Springs as an expansion market for the new aircraft. Mr. Peek was very happy to report that the vice-president of Alaska Airlines agreed to sit on the CVA's Advisory Council. That decision secured Alaska Airlines commitment to the program. 2 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE JANUARY 16, 2007 Upon question by Ms. Bowen, Mr. Peek responded that there was non-stop service from Portland; however, that service stops during the summer. Upon question by Mr. Mandelbaum, Mr. Peek responded that the CVA was working with established destination airlines, i.e., Alaska and American Airlines. He added that the CVA's program would educate the consumer on destination demand. Ms. Kneiding added that the CVA would run print and radio campaigns in those markets. The difference was that the airlines would not be written a check; the CVA would be controlling the message. Upon question by Ms. Bowen, Mr. Peek responded that Palm Desert was his first presentation. He said he has received a good response from the other cities and there was a certain level of interest. Although he has not received formal commitments, he feft strongfy that the CVA would secure four cities. Upon question by Ms. Bowen, Mr. Peek stated that there would be a core group of representatives from each city. That group would make the recommendation to either drop a market or shorten flights if all cities do not participate. He added that the Palm Springs Airport was committed to the program and has contributed its $50,000. Upon question by Mayor Kelly, Mr. Peek responded that cities that contribute to the promotion would be included in the packages developed for the program. Upon question by Ms. O'Flynn, Mr. Peek responded that the measure of success would be the growth of air service and load factor. It would really be based on 18 to 24 months out. Mr. Mandelbaum complemented the program and he believed it would generate long and short-term results. Ms. Bowen moved to, by Minute Motion, approve staff's recommendation to support the CVA Spot Marketing campaign in the amount of $50,000. Motion was seconded by Mr. Mandelbaum and carried 4-0. C. PALM DESERT'S ART OF FOOD 8� WINE EVENT Ms. Kneiding reported that the organizers of the 2006 Art of Food & Wine Event determined that although it was an ambitious undertaking, with predominately an all-volunteer staff, a 2007 Art of Food & Wine Event should definitely take place; however, it would need to be organized and run by a professional event planning organization. With Ms. Gilligan's guidance, the future of the event was discussed, and the decision was made to search for a professional event management company to take over the organization, marketing, sales, promotion, and sponsorships of the event. Staff would like the Committee's recommendation on hiring a professional event management company and/or any comments it may have on the subject. 3 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE JANUARY 16, 2007 Upon question by Ms. O'Flynn, Ms. Kneiding responded that the cost of the event was over $500,000 to produce, and revenues fell short about $150,000. Ms. O'Flynn believed that was a fairly common outcome with a first time event. Upon question by Councilmember Spiegel, Ms. Kneiding stated that the dates for the 2007 Art of Food 8 Wine Event would be November 9-11, 2007. Ms. Gilligan stated that the City Council approved the Veterans' Memorial, which will be placed in Freedom Park, and was hopeful that the unveiling of the artwork would be on Veterans' Day, November 11, 2007, at 11 a.m. Ms. Gilligan reported that the City was negotiating with Kemper Sports ManagemenYs Event Division. She could not give the Committee a firm money commitment, but Kemper Sports was very excited about the opportunity to work on the 2007 Art of Food 8� Wine Event and all that that entails. Kemper Sports represents Palm Desert with Desert Willow and it has earned a reputation and trust with the City. Upon question by Councilmember Spiegel, Ms. Gilligan stated that the Marriott negotiated in-kind contributions for the 2007 Art of Food & Wine Event; i.e., rooms and food. Last year the City gave $100,000 for marketing. The Marriott was excited about participating again but was also in agreement with using a professional eve�t management company. Mr. Osgood said Kemper Sports Management's Event Division was involved with the following events: Maui Invitational in Hawaii with all of the top college basketball teams, the Kemper Open, and the Boz Allen PGA Tournament. Upon question by Ms. O'Flynn, Mr. Osgood responded that Kemper would be responsible for every detail associated with the 2007 Art of Food &Wine Event. Ms. Close announced that KCET was interested in bringing chefs to the Art of Food & Wine Event. KCET ran ad airtime to the tune of $130,000 to $150,000 for the 2006 Palm Desert Art of Food & Wine Event for free. This year's promation will run in the desert, Los Angeles, Orange County, as well as nationally. Upon question by Councilmember Spiegel, Ms. Kneiding stated that she heard that the San Diego Food & Wine Festival was going to be moving to another date. Upon question by Ms. Bowen, Ms. Kneiding responded that there would be some aspects of the event that would change; however, Kemper Sports Management would have full responsibility for the event planning. She added that there would be an event on EI Paseo, a golf tournament at Desert Willow, a musical event, and more. Ms. Bowen moved to, by Minute Motion, approve staff's recommendation to support hiring Kemper Sports Management's Event Division to organize the 2007 Art of Food & Wine Event. Motion was seconded by Mr. Mandelbaum and carried 4-0. 4 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE JANUARY 16,2007 VI. OLD BUSINESS None VII. REPORT ON CITY COUNCfL ACTION (S) None VIII. REPORTS AND REMARKS A. Chair Ms. O'Flynn reported that the plans for Fashion Week EI Paseo, March 18-25, 2007, were underway. B. Committee Members Ms. Bowen gave an update on the construction at Westfield Shoppingtown Palm Desert, which would pave the way for Nordstrom's demolition and opening in spring of 2009. Mr. Darius gave an update on the McCallum Theatre's calendar. He announced that The Muses, a fundraising organization was having a "Trinkets and Treasures" sale of donated items such as jewelry, china, antiques, and art pieces on Thursday, January 18, 2007, from 10 to 3 p.m. in the lobby of the theatre. Mr. Osgood welcomed Gary Piotrowski to Desert Willow. Desert Willow will be celebrating its 10 Year Anniversary on Wednesday, January 31, 2007. The golf tournament will begin at 12 p.m. and the reception at 5 p.m. C. Staff Ms. Kneiding reported that she and Ms. Gilligan were in New York last week and met with representatives from Travel 8� Leisure Magazine, Plenty Magazine (environmentally based), Arts & Culture Magazine, and Elite Traveler Magazine. They also met with various editors and reporters, including the New York Daily News. She added that there was a lot of interest in our destination and was looking forward to good results. IX. INFORMATIONAL ITEMS 1. Visitor Information Center Activity Report Ms. Gomez gave an update on the VIP's activity report. Sales were high and the number of visitors was increasing. 5 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE JANUARY 16,2007 X. ADJOURNMENT With Committee concurrence, the meeting was adjourned at 3:45 p.m. ,I A� •Jr/',� - /"jr� UF%) Lori imbish, Recording Secretary 6