Agenda Item Wording:
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Visalia Convention and Visitors Bureau Agreement - Authorize the City Manager to negotiate and enter into a professional services agreement with the Visalia Convention and Visitors Bureau for convention sales and tourism marketing services for the 2026 calendar year up to $361,049, in addition to $189,912 for services provided without an agreement for the 2025 calendar year, for a total amount not to exceed $550,961.
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Agenda Date: 2/17/2026
Submitting Department: Administration
Prepared by:
John Lollis, Assistant City Manager, John.Lollis@visalia.gov, (559)713-4323
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to negotiate and enter into an agreement with the Visalia Convention and Visitors Bureau for January 1, 2026 - December 31, 2026 for a contracted amount of up to $361,049, in addition to $189,912 for services provided without an agreement for the 2025 calendar year, for a total amount not to exceed amount of $550,961.
Summary:
Consideration of the City’s continued agreement with the Visalia Convention and Visitors Bureau (CVB) for convention and tourism marketing services for the 2026 calendar year and services provided without an agreement for the 2025 calendar year.
Background Discussion:
The CVB has provided convention and tourism marketing services for the City since 2004. The CVB’s tourism marketing efforts have significantly increased in the past couple of years with the implementation of a Tourism Marketing District (TMD) that the CVB administers by a separate and independent Memorandum of Understanding that generates over $700,000 a year specifically for tourism marketing and destination development.
Convention sales and tourism marketing has served as the cornerstone of the scope and services identified within the agreement and is defined within Exhibit A (attached), which the City has historically considered its agreement with the CVB to be allocated sixty percent (60%) in support of convention sales and forty percent (40%) toward tourism marketing. During the 2023 calendar year, the CVB established an ad hoc committee to review and propose to the CVB Board of Directors revisions and metrics to be tracked and presented back to the City for establishment of a “return on investment” for the approximate $360,000 that has been contracted to the CVB. Due to staff changes in both organizations at that time, these discussions were discontinued and the previous contract was extended for one (1) year in 2024 based on the 2023 service requirements. The CVB reported that there were six (6) groups booked during 2024 that were CVB generated leads (1,541 new hotel room nights), nine (9) groups booked during 2025 (2,205 new room nights) and nine (9) group contracts currently proposed (28,930 new room nights).
The prior agreement with the CVB called to produce at least 7,300 (2023) new room nights through either convention or tourism confirmed sales, and to assist with at least 2,000 (2023) new room nights where the CVB was not the lead generator. In 2023, the CVB reported it produced 1,995 new room nights (27%) as the lead generator, and 3,210 new room nights in 2024 (44%), and 1,541 new room nights in 2025 (21%). The agreement for 2024 remained consistent in both reimbursement and required convention sales figures as stated for 2023. As required in the contract, the CVB provided City staff with a final 2024 year-end report in May 2025. Given the delay in the final 2024 year-end report, the consideration of an agreement for 2025 was also delayed and subject for retrospective consideration.
City staff received the enclosed correspondence from the CVB in January, requesting full funding of $361,049 retrospectively for the 2025 calendar year, and an increase to $371,830 for the 2026 calendar year to reflect a three percent (3%) increase.
City staff has expressed concern to the CVB of the continued shortfall of meeting agreement convention sales goals for the 2023 and 2024 calendar years, with the same result in the 2025 calendar year without an agreement. City staff proposes to compensate the CVB for its tourism marketing services for 2025 in the amount of $189,912 in consideration of the historical forty percent (40%) of the annual agreement amount of $361,049 ($144,420), and $45,492 for convention sales in consideration of meeting twenty-one percent (21%) of the previously established new room nights sales goal.
A one-year agreement is recommended to allow the City and CVB to adjust the revisions and metrics that will be tracked for performance, returning to the City Council at the end of 2026 for consideration of a one or two-year agreement that would cover 2027 and/or 2028. City staff has met with a designated CVB Board subcommittee and recommend the following for the 2026 calendar year only:
1. CVB to hire a dedicated, qualified convention sales position;
2. Reduce new room nights booked goal to 3,500 for 2026 only;
3. Maintain new room nights assisted booked goal of 2,000 (not a city-wide convention);
4. CVB to provide quarterly convention sales reports for coordinated City staff and CVB Board review;
5. City to pay up to $361,049 for the 2026 calendar year, paying $334,332 in March as the full-year tourism marketing payment of $144,420 and $189,912 for services provided without an agreement in 2025, making the prorated half-year convention sales payment of $18,052/month upon verifying the hire of a qualified, dedicated convention sales position, and the balance of the agreement compensation of $180,524 in July.
6. CVB not to direct City staff, but to coordinate with the City Manager, Assistant City Manager and Convention Center Manager.
Fiscal Impact:
The General Fund (Fund 001) Division 1021 has budgeted $368,300 for the current fiscal year with the same budgeted amount proposed for the upcoming 2026-27 Fiscal Year, of which $197,163 would be appropriated from next fiscal year. No changes to the City contribution amount are being proposed at this time, and the ongoing expense for the CVB agreement beyond the current fiscal year is dependent upon Council action.
Prior Council Action:
April 15, 2024: City Council approved a one (1) year agreement for 2024 with the Visalia Convention and Visitors Bureau for $361,049 (24-0145)
December 20, 2021: City Council approved a two (2) year agreement 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 with the CVB.
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 negotiate and enter into an agreement with the Visalia Convention and Visitors Bureau for January 1, 2026 - December 31, 2026 for a contracted amount of up to $361,049, in addition to $189,912 for services provided without an agreement for the 2025 calendar year, for a total amount not to exceed $550,961.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
1. Visalia Convention and Visitors Bureau Correspondence - January 15, 2026
2. Draft Professional Services Agreement (2026)
3. Agreement Exhibit A (2024)
4. Professional Services Agreement (2022 and 2023)
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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