HomeMy WebLinkAboutMinutes - City Council - unsigned - 1989-02-14 City Council, Adjourned Regular Meeting City Hall Conference Room Redding, California February 14, 1989 5:23 p.m.
A Joint Study Session with the City Council and the Tourism and
Convention Commission was held. The Adjourned Regular Meeting of
the City Council was called to order by Mayor Johannessen with
the following Council Members present: Buffum, Carter, and
Fulton. Council Member Dahl was absent.
Also present were Tourism and Convention Commissioners Gaines,
Hamblin, Jabs, and Wertz. Tourism and Convention Commission
Chairman Marshall, and Commissioners Knapp and Foust were absent.
Also present were City Manager Christofferson, Assistant City
Manager McMurry, Auditorium Director Montgomery, Director of
Finance Downing, Director of Personnel Services Bristow,
Convention and Visitors Bureau Director Heuer, Convention Manager
Ferguson, Tourism Manager Sharp, Assistant City Clerk Strohmayer,
Public Information Officer Hastings, and Secretary to the City
Council Moscatello.
STUDY SESSION - Organizational Alternatives for the Management of
Tourism Promotion and Convention Center Activities & Regional
Tourism Promotion
(A-050-060-350 & A-050-040 & A-050-500)
Mayor Johannessen noted that the purpose of tonight's study
session with the Tourism and Convention Commission is to discuss
the organizational alternatives for the management of tourism
promotion and convention center activities and regional tourism
promotion. He stated that this is a Study Session and Council
will not be making final decisions tonight.
Vice Chairman Gaines said that one of the Commission's charges
was to explore how the City could expand tourism to a regional
concept. He briefly reviewed the Commission's history on the
concept of regional tourism and stated that Mayor Johannessen and
Council Member Buffum have met with the Commission and John
Reginato from the Shasta Cascade Wonderland Association.
Commissioner Gaines conveyed that a subcommittee was formed to
make an in-depth study on a tourism marketing program. He stated
that the subcommittee recommended that the City privatize its
tourism marketing program and contract with a newly created
nonprofit corporation. Commissioner Gaines stated that the
committee modeled the proposal after an agreement between the
city of Santa Monica and a nonprofit corporation. Copies of the
agreement were submitted to Council for review. Commissioner
Gaines reviewed the subcommittee's recommendation for a tourism
marketing program in greater detail, and the Report is
incorporated herein by reference. He conveyed that the
Commission adopted the report with a five to one vote,
Commissioner Hamblin dissenting and Commissioner Foust absent.
Tourism and Convention Commission Chairman Marshall arrived.
Council Member Carter questioned where the concept of a regional
tourism commission came from. Commissioner Jabs explained that
the idea generated from a brain storming session. Chairman
Marshall noted that Redding is the gateway to Northern
California, and if the City can do something to help the northern
counties, Redding will also benefit. He added that the northern
counties are a big part of Redding's shopping dollars. Commissioner Wertz conveyed that the regional approach to tourism was advocated at tourism conferences, and he indicated that without a regional approach, marketing tourism will be doomed.
Council Member Fulton noted that Redding would be the main source
of income for promotion tourism, and it will be difficult to
procure money from other counties. Commissioner Gaines noted
that Redding does not need the income from other counties;
however, other counties should be involved and expected to
participate eventually.
Tourism and Convention Commissioner Knapp arrived.
Commissioner Wertz reiterated that everyone will profit if
tourists can be brought into the region. Information should be
available about what is happening and chances are Council will
see more tourism support.
Mayor Johannessen asked if existing organizations such as the
Shasta Cascade Wonderland Association could be used for that
purpose.
Commissioner Wertz explained that these options could be
explored, the Commission does not have all the answers. He
conveyed that these options do not necessarily have to be
explored by just the Commission.
Mayor Johannessen asked how the Commission feels about the
management of the convention facility and the reorganization of
the convention center and tourism staff.
Commissioner Gaines noted that the Commission has been thrown
into an adversarial role with staff. He stated, however, that he
believes Tourism and Visitors Bureau Director Heuer is doing an
excellent job.
Commissioner Gaines explained that the privatization model is
closer in concept to Alternative 3, not Alternative 5, from the
Assistant City Manager's Report to City Council dated February 7,
1989, which is incorporated herein by reference. He reviewed
Alternative 3 in greater detail.
In response to Council Member Buffum's inquiry, Commissioner
Hamblin explained why he does not support the subcommittee's
recommendation regarding a regional tourism marketing program.
He stated that the recommendation is premature, and he is not
convinced that other counties want more promotion and tourism.
Noting that Auditorium Director Montgomery is retiring,
Commissioner Hamblin questioned if Mr. Heuer would be able to
handle the additional duties of the convention center. With
regard to privatization, he pointed out that it is the City's
money, and he asked who will control the money and what other
kinds of financial support are available.
Council Member Carter asked what alternatives are available to
privatization.
Commissioner Hamblin noted that privatization is the correct
vehicle for regional tourism because it would be an impartial
body; however, Redding could be promoted by a Tourism Manager.
Council Member Carter asked if there should be a tourism manager
to promote Redding only within the City limits. Commissioner Hamblin stated that the promotion area issue should
be studied further. He conveyed that he is concerned about hiring a permanent City employee and then converting the position under privatization.
Mayor Johannessen pointed out that Redding already promotes the
surrounding area.
Chairman Marshall noted that if Council wishes to move forward
with the concept of regional tourism, it would then be
appropriate to contact other agencies to determine interest.
Mayor Johannessen noted that video tapes promoting a regional
view of the area have been produced. "Day trips" from the
Redding area are being promoted; thus, the videos say come to
Redding, visit the area, but stay in Redding. He suggested that
Council make a distinct difference between what is currently
being promoted and what is being suggested. Mayor Johannessen
added that what is being proposed is including other counties,
and if this is the case, he agreed that that type of program
could be privatized on a regional basis.
Mayor Johannessen questioned who will pay for privatization on a
regional basis. He stated that the Tourism and Convention
Commission should not be eliminated; however, a regional agency
could be created that all counties commit to.
Council Member Buffum acknowledged that the videos are good,
although she noted that it is a beginning attempt only. She
conveyed that vision is necessary and she supports developing a
regional tourism approach. Council Member Buffum said she has
spoken with county supervisors from other areas and all have
indicated a desire to get involved on a regional basis. She
noted that it would not be expensive, and the supervisors would
pay for their own travel expenses to the meeting.
Council Member Buffum suggested that the Tourism Commission
remain in effect and be enlarged with voting seats for other
agencies as a courtesy. She noted that Mr. Heuer could become
the Department Director and promotion could be subcontracted out
to a private party.
Mayor Johannessen noted that it is expensive to run a commission.
He stated that a new regional commission could be created instead
of the present Commission being expanded. Council Member Buffum
pointed out that the present Commission has a great deal of
knowledge that can be used.
Council Member Johannessen questioned how representation on the
Commission would be determined. Council Member Buffum said that
each County's Board of Supervisors could appoint representatives.
General discussion was held regarding the manner in which the
commission(s) could be organized with the idea that the existing
Commission stay intact with responsibility for intra-city
promotion and a separate body created to address regional
tourism.
Noting that promotion can be managed under City control, Council
Member Fulton stated that he failed to see the need for
privatization and that the City prides itself at being able to
efficiently provide essential municipal services such as
electricity and water. He noted that there is a great deal of
money involved. Council Member Carter acknowledged that there have been regional efforts. He opined that this is a new era, the area has major economic problems and the City needs to take an aggressive
approach towards tourism. Council Member Carter said the issue
is whether that approach can be done more efficiently by
government or the private sector.
Noting that the City is already promoting the area, Commissioner
Knapp pointed out that the City stands to benefit the most
financially from regional tourism. She said the Convention
Center was built with City and Federal funds to serve the entire
area, not just the City of Redding. Commissioner Knapp indicated
that incentives are built into the privatization of tourism
promotion. She noted that the private sector serves the tourist
and has the ability to respond. Commissioner Knapp stated that
Redding is the exception, not the rule. She asked Council to not
be concerned with money, the support is available.
Mayor Johannessen mentioned a study about the effective radius of
a tourist and how it stated that tourist promotion that is
approximately two hours away will bring the most benefit.
Council Member Buffum stated that the day trip concept is
outdated and was effective in the 60's. Now tourists go on
weekend trips and getaways and enjoy staying at bed and
breakfasts inns, etc.
General discussion was held regarding tourism revenue and the
occupancy bed tax.
Commissioner Hamblin noted that tourism revenue has increased
twelve to fourteen percent since last year. Commissioner Knapp
asked whether the increase in revenue was because of increased
tourism or higher motel/hotel rates. Commissioner Hamblin
conveyed that the rates are substantially higher. He explained
that an index system would be necessary to calculate an increase
or decrease accurately.
Mayor Johannessen said he would like to find out how many
hotel/motel rooms are being rented.
Mark LeBlanc, Holiday Inn, pointed out that rates are determined
by demand. He said occupancy has increased by 10% in the City.
He conveyed that new motels are being built and they are basing
their decision to build on an increase in occupancy. Mr. LeBlanc
talked about the structure of the reorganization of the tourism
and convention departments. He pointed out that Santa Monica
does not have a convention center.
Commissioner Wertz questioned if the increase in occupancy is due
to tourism or because of the I-5 corridor.
Commissioner Marshall stated that a dynamic tourism oriented
person is necessary to promote tourism, more transient occupancy
tax dollars are needed, and someone is needed to care for the
convention center. Commissioner Marshall stated that if Council
believes the regional tourism idea has merit, then it should be
explored other agencies contacted.
Council concurred with Council Member Buffum's suggestion that
the Commission contact the Board of Supervisors of the six
counties.
Commissioner Gaines noted that it is the Commissions' purpose to
show alternatives. Concerning Mr. LeBlanc's question about what criteria would be used to measure the performance of the proposed privatized
tourism marketing program, Council Member Carter responded that success can be measured over a period of time by the media, bed
tax, etc. Mayor Johannessen said that the same kind of criteria
can be used in-house.
Council Member Carter pointed out that privatization will
encourage competition because there will be others desiring the
same contract.
Mayor Johannessen stated that Council will consider the
information further and make a decision later. He thanked the
Commission for attending and stated that the study session was
very worthwhile.
ADJOURNMENT
There being no further business, at the hour of 7:00 p.m., Mayor
Johannessen declared the meeting adjourned.
APPROVED:
_________________________________
Mayor
ATTEST:
__________________________________
Assistant City Clerk
2-14-89