Agenda Item Wording:
title
Visalia Convention and Visitors Bureau Agreement - Authorize the City Manager to enter into a Professional Services Agreement with the Visalia Convention and Visitors Bureau for convention sales and tourism marketing services for the 2024 calendar year in the amount of $361,049.
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Deadline for Action: 4/15/2024
Submitting Department: Administration
Contact Name and Phone Number:
John Lollis, Assistant City Manager, john.lollis@visalia.city, 713-4323
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to enter into an agreement with the Visalia Convention and Visitors Bureau (CVB) for January 1, 2024 - December 31, 2024 for a contracted amount of $361,049.
Background Discussion:
The Convention and Visitor Bureau (CVB) has provided convention and tourism marketing services for the City since 2004. While still recovering to pre-COVID statistics, the CVB’s efforts have been increased in the past few years with the implementation of a Tourism Marketing District (TMD) that generates over $600,000 a year for tourism marketing. The CVB reports that there were thirteen (13) conventions booked during 2023, and 2024 thus far has twenty (20), with currently seven convention contracts pending.
Sales and marketing has served as the cornerstone of the scope and services identified within the agreement and is defined within Exhibit A (attached). During the 2023 calendar year, the CVB established an ad hoc committee to review and propose to the CVB board revisions and metrics to be tracked and presented back to the City for establishment of a return on the approximately $360,000 that is contributed to the CVB. Due to staff changes in both organizations, these discussions are continuing, so the previous contract is being extended for one year based on the 2023 service requirements.
The prior Agreement with the CVB called to produce at least 6,900 (2022) and 7,300 (2023) new room nights through either convention or tourism confirmed sales. In 2022, the CVB indicates it produced 4,510 new room nights (65%), and 1,955 new room nights in 2024 (27%). The proposed draft agreement remains consistent in both reimbursement and required convention sales figures as spelled out for 2023. As required in the contract, the CVB has provided City Staff with a 2023 year-end report.
A one-year agreement is recommended to allow the City and CVB to fine tune the revisions and metrics that will be tracked for performance, returning to the City Council at the end of 2024 for consideration of a one or two-year agreement that would cover 2025 and/or 2026.
Fiscal Impact:
The General Fund (Fund 001) Division 1051 currently budgets $361,049 for the current fiscal year. No changes to the City contribution amount are being proposed at this time.
Prior Council Action:
December 20, 2021
City Council approved two single year contracts for 2022 and 2023 with the Visalia Convention and Visitors Bureau for $347,163 and $361,049 respectively.
Alternatives:
1. Do not enter into an agreement.
2. Direct staff to renegotiate the agreement with different parameters.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to enter into an agreement with the Visalia Convention and Visitor Bureau for the 2024 calendar year in the amount of $361,049.
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Environmental Assessment Status:
N/A
CEQA Review:
N/A
Attachments:
1. Draft Agreement Exhibit A