1997-0902_CHAMBER OF COMMERCE, SJC_D5_Agenda Report AGENDA ITEM September 2, 1997 TO: George Scarborough, City Manager FROM: Mechelle Lawrence, Economic Development Administrator SUBJECT: Extension of existing contract and Memorandum of Understanding between the City and Chamber of Commerce for providing Visitor Related Services during Fiscal Year 97-98. RECOMMENDATION: Extend the existing contract and Memorandum of Understanding between the City and Chamber of Commerce for carrying out visitor services during Fiscal Year 97-98. SITUATION: A. Summary: In October 1996 the City Council approved a contract and Memorandum of Understanding between the City and Chamber of Commerce which funded $25,000 for visitors services in fiscal year 1996-1997. At that time a series of goals was also endorsed by the City Council. Because the past year marked significant accomplishments in the areas of visitor services, it is recommended that the existing contract be extended for a second year. The cost for these services has been budgeted again at $25,000. Therefore, the City Council is requested to extend the existing contract and Memorandum of Understanding between the City and Chamber of Commerce for carrying out visitor services during Fiscal Year 97-98. B. Background: While the Chamber of Commerce has received funding from the City for carrying out visitor related services during recent years these past two years mark significant accomplishments in terms of bringing new visitors to San Juan Capistrano, especially via railway. During the past year the Chamber of Commerce's services included responding to nearly 1,000 calls each month, assisting scores of group tours, organizing special events, providing support in the form of welcome groups, participating in the yearly Los Rios Street Festival, organizing a Summer Beach Train and free shuttle, facilitating the Restaurant Association's group ad in the Beach Train Survival Guide, assisting with the development of a Restaurant Brochure, and distributing the Walking Tour Brochure and Downtown Visitors Guide. In addition, the Chamber has also developed active subcommittees contributing new ideas and direct support with visitor services. These subcommittees include the Hospitality and Tourism Committee, Economic Development Committee, and the Special Events Committee. During last year's approval of the Memorandum of Understanding, the City Council also endorsed a list of goals to be undertaken by the Chamber of Commerce which was developed by representatives from the Mission, Chamber, and City staff. These goals and activities are recapped as follows: FOR CITY COUNCIL AGE: .1„- Zs AGENDA ITEM -2- September 2, 1997 Visitor Bureau Goals/Activities (as endorsed by the City Council on October 1, 1997): Goal#1: Enhance San Juan Capistrano's response to demands for visitor related information. This goal calls out five different activities including responding to phone inquiries, providing written information as needed, ensuring that the same information/materials are being provided by the Chamber and Mission, coordinating the construction of a visitor's information kiosk, and developing a unified community calendar to be distributed to target groups, individuals and organizations. Goal#2: Enhance San Juan Capistrano's identity as a local, one-day destination to southern California and primarily, Orange County/San Diego travelers. This goal calls for the Chamber to coordinate with Amtrack, and other rail lines, to develop San Juan Capistrano's recognition as a great one day destination, providing Saturday morning visitor information, market the City to convention groups, work with travel writers and coordinate articles with Orange County and San Diego travel publications, and assist tour buses with information on lunching and shopping locations near the Mission. Goal#3: Extend the average stay of Mission visitors to include visits to other destinations in downtown area. This goal has three separate activities with the Chamber assuming lead role in two areas: 1) working with merchants to stock information racks about City amenities and retail information, and 2) involving the merchants in the stockpiling of a future visitor's information kiosk with coupons etc. The third goal relies on the City to work with the Chamber of Commerce to encourage downtown merchants to extend their hours of operation (especially during the summer months) into the evening. Goal#4: Extend San Juan Capistrano's identity as a place to visit throughout California. This goal relies on implementing four activities (with the Chamber and Mission working together) to gain media coverage in larger, state wide publications, working with airline publications, coordinating on going exhibits at the O.C. Airport, and working with City merchants to identify locations that can accommodate large meeting groups. Goal#5: Extend San Juan Capistrano's overnight (hotel) market by increasing occupancy levels from 50% to 60%. This goal is perhaps the most difficult to achieve due to the fact that there are other "market" factors that influence hotel occupancy levels. However, as much as can be done at a local, direct level, seven specific activities can help improve the recognition that there are hotels in the community available for overnight travelers. Essentially this goal relies on promoting the hotels and working directly with tour groups, restaurants, and property owners to make sure that continuous correct information is made available. All of these goals identify that the Chamber of Commerce is to assume the lead role in carrying out the AGENDA ITEM -3- September 2, 1997 activities toward its implementation. However, because the issues at hand involve City permits or support, or utilizing Mission resources, the goals mention the involvement of all three entities where appropriate. C. Memorandum of Understanding: The Memorandum of Understanding (MOU) provided as an attachment is essentially a contract between the City and the San Juan Capistrano Chamber of Commerce. Under this agreement, the Chamber of Commerce agrees to provide visitor related services in accordance with the City Council's goals and objectives stated for a Visitor's Bureau. The City will rely upon the Chamber of Commerce to work with these organizations (ie. the Mission, City, etc.) to provide an effective response to visitor demand for services. The Memorandum of Understanding will be in effect for this fiscal year (1997-1998) only. In addition, as a condition for funding the Chamber's services, the MOU requires the Chamber of Commerce to submit a monthly report outlining the following information: 1. Number of visitor related phone calls handled for the entire time period with an estimated breakdown on monthly basis. 2. Number of special events involved in for the time period to attract visitors to the community. 3. Number of tour groups assisted. 4. Summary of tourism activities and general services provided during the stated time period. A final report is required to be provided to City staff by May 30, 1998. In addition, the Chamber of Commerce's report may include information about any additional unforeseen events or activities taken by the organization toward meeting the goals and objectives for the Visitor's Bureau objectives. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: None. FINANCIAL CONSIDERATIONS: The allocation of$25,000 for Visitor Related Services was included in the 1997-1998 fiscal year budget. PUBLIC NOTIFICATION: This item does not require a public hearing notice; however, copies of this report were sent to the Chamber of Commerce, Mission San Juan Capistrano, and hotel operators. ALTERNATE ACTIONS: AGENDA ITEM -4- September 2, 1997 1. Extend the existing contract and Memorandum of Understanding between the City and Chamber of Commerce for carrying out visitor services during Fiscal Year 97-98; or, 2. Do not extend the existing contract and Memorandum of Understanding between the City and Chamber of Commerce for carrying out visitor services during Fiscal Year 97-98; or, 3. Continue the item and direct staff to return with further information on specified issues. RECOMMENDATION: Extend the existing contract and Memorandum of Understanding between the City and Chamber of Commerce for carrying out visitor services during Fiscal Year 97-98. ' 's,-ctfull% s . �'tted, Mechelle Lawrence Economic Development Administrator ml Attachment: 1. Memorandum of Understanding with Attachment "A"- Visitor's Bureau Objectives & Goals FY 96-97 C:\MECHELLE\ED\COC\97FUND.CC