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HomeMy WebLinkAboutMINUTES Advertising and Public Relations Committee 1971-09-29RECORD OF PROCEEDINGS Advertising and Public Relations Committee September 29, 1971 Committee: Chairman Prosser; Trustees Dannels and Petrocine Attending: Chairman Prosser; Trustees Dannels and Petrocine Also Attending: Town Administrator Dale G. Hill, Chamber of Commerce representatives; President James A. Durward and Manager Ronald J. Reiland ADVERTISING AGREEMENT: President Durward and Manager Reiland submitted the Estes Park Chamber of Commerce proposal for the 1972 advertising program. A copy of this report is attached to and made a part of these proceedings. The Advertising and Public Relations Committee reviewed and discussed this proposal at length. The Advertising and Public Relations Committee recommends the Light and Power Committee consider the inclusion of an additional $3,500.00 in the 1972 advertising budget. The Advertising and Public Relations Committee also recommends that if the Light and Power advertising budget is increased,as suggested above, the Town amend the 1972 Advertising Contract with the Chamber of Commerce using the same percentages as presented,subject to the Chamber of Commerce providing matching funds on a fifty-fifty basis for all expenditures in excess of $13,000.00. The additional $3,500.00 would be the Town's share of the matching funds. There being no further business, the meeting adjourned. i Dale G. Hill, Town Administrator OCT 11 1971 TGr',,. iF UJH=J Oi: TRLISILti TOWN OF ESTES PARK ESTES PARK, COLORADO AREA PROMOTION EXPENDITURES CHAMBER OF COMMERCE September 1, 1971 NATURE OF PROMOTION EXPENSE TOTAL AMOUNT PAID TOTAL FUNDS PAID AND AMOUNT FROM AMOUNT FROM TOWN COMMITTED BUDGET $13,000.00 PAID TOWN FUNDS COP1ffTTED COMMITTED THIS PERIOD A B C D E 1. LOCAL ADVERTISING A. Estes Park Trail 277.36 210.05 226.80 226.80 369.30 B. Mountain Gazette 48.00 48.00 C. KKEP 115.00 115.00 D. Other i.e. Nametags 1437.78 892.70 103.00 103.00 520.02 ribbons 2. REGIONAL ADVERTISING A. Denver Post 678.72 700.00 700.00 700.00 B. Rocky Mountain News C. Guest Guide 355.00 355.00 D. Colorado Magazine E. Radio and TV 20.00 20.00 F. Poster Signs 30.39 30.39 30.39 G. The Other Papers 238.36 25.00 3. NATIONAL ADVERTISING A. Major Newspaper 5576.21 3734.59 B. Travel 4. ARTWORK - PHOTOGRAPHY A. Layout and Design B. Offset and Prints C. Typesetting, Proof 126.18 126.18 D. Art E. Photography 137.73 9.65 F; Typing'& Preraring 525.98 500.00 5. BROCHURES A. Area Maps B. B. New Directory 3599.85 3599.85 C. New Brochures 1969.69 1969.69 D. Transportation 6. ADMINISTRATION A. Weather Service 84.50 B. Public Relations 176.38 7. CONVENTION 58.00 58.00 58.00 437.24 437.24 437.24 32.45 Total 15397.13 11636.10 1525.04 1525.04 2147.40 Total Paid and Committed A & C 16922.17 Total Paid and Committeed From the Town Funds B & D 13161..14 (13,000 Budget allocation has ben Balance in Town Fund Zero FROM ESTES PARK AREA CHAMBER OF COMMERCE TO ADVERTISING COMMITTEE TOWN OF ESTES PARK, COLORADO REFERENCE ADVERTISING BUDGET 1972 SECTION I PROPOSAL SECTION II ITEMIZED BREAKDOWN SECTION III ,JUSTIFICATION SECTION IV MODEL CONTRACT SECTION V OTHER CHAMBER BUDGETS SECTION VI EXISTING CONTRACT GENTLEMEN We present the following material for your consideration: 'SECTION I With the fiscal year beginning October 1, 1971, the Estes Park Area Chamber of Commerce will initiate new ideas and thoughts -particularly pertaining to advertising the town and increasing business profits for the community. The Estes Park Area Chamber of Commerce board of directors, at the recommendation of the advertising committee of the Chamber of Commerce, feels that when initiated, our advertising for the coming year will Substantially increase, the.'.business•dollar:volume in Estes Park. This increase, taking into consideration the additional sales tax revenues and utilities income it will generate, should realize for the Town of Estes Park additional revenues to compensate for an increase in the adv- ertising budget to the Chamber of Commerce. The 1971 advertising contract called for funds in the amount of *13,000.00. This was an increase of $2,000.00 over the.previous year. • It is our wish to present for your consideration a -request that this amount be increased to $20,000.00 for,the year of 1972. 1 SECTION II The Estes Park Area Chamber of Commerce proposes that the $20,000.00 be allocated for, expenditure in the following specific areas: 1. The Estes Park Area Chamber of Commerce will spend the sum of $7,500.00 for advertising designed to bring business to the community during the Summer months. Expenditures would be for national or regional advertising in magazines, newspapers, radio, etc. and would also be used for brochures, publicity releases, posters, badges and such. (see sample contract 2-A) 2. The Estes Park Area Chamber of Commerce will spend the sum Lof $7,500.00 for advertising designed to bring business to the community 4/ during the Winter months. Expenditures would be for national or regional advertising in magazines, newspapers, radio, etc. and would also be used for brochures, publicity releases, posters, badges and such. (see sample contract 2-B) 3. The Estes Park Area.. Chamber of Commerce will spend the sum of $1,500.00 in pursuit of new industry and business. The nature of this advertising would be for non -retail business which would be non-competit- ive with existing businesses. Expenditures would be for national or.region- al advertising in newspapers, magazines, trade journals, radio, etc. A portion of this expenditure would be for printing of mailings and pamphlets y 3 ► a'/2 but this portion would not exceed 35% of the total amount. Up to 12% (,•q"-°) of the $1,500.00 may be spent by the Chamber of Commerce for postage and secretarial costs incurred in replying to inquiries generated only through this specialized advertising. SECTION II CONTINUED k. The Estes Park Area Chamber of Commerce will spend the sum of $3,500.00 for the promotion of convention, seminar and other group � v gr p business. Expenditures would be for national or regional advertising .0 (with emphasis on regional) in newspapers, magazines, trade journals, radio etc. A portion of the expenditure would be for printing of mailings amd pamphlets and construction of presentation materials but this portion would not exceed 35% of the total amount. Travel expenses for miles driven would be allowed in the amount of 10 per mile provided this amount did not exceed 20% of the $3,500.00. This mileage allowance would apply onl to • travel incurred specifically for pursuit of convention or group business. No other administrative types of expenses would be dovered. The primary purpose of this aeciton of the advertising allocation would be to stabalize the economy of the Estes Park Arra by attracting groups p to our community during the "off-season" months when we are not filled to capacity. We need additional population during the slower business months to encourage more businesses to remain open, to bring in more dollars, to sell more mer- chandise, to bring in more people, to make more funds for the town to ect. etc. etc. SECTION III JUSTIFICATION FOR $7,500.00 SUMMER ADVERTISING ALLOCATION This expenditure would be for advertising spent to bring into Estes Park vacationers and tourists during our Summer months. Portions of this allocation would be spent for printing of brochures and advertising materials necessary to service the .Summer business: At this time a majority of our community businesses.are,of a seasonal nature -open only during the Summer months. In order to maintain our share of the market a continued advertising program is necessary to enjoy this same business volume. We have an obligation to our seasonal businesses to continue an advertising campaign designed to keep the visitors coming. The national economy has shown a softness. National Parks have shown a tremendous downward pressure in travel. (published figures show a majority down -Yellowstone is down over 10% 71 to 70) For this reason we must continually strive to maintain our share of the market. We have a Summer capacity and both the town income and business earnings are dependent on maintaining this "full" level of mone- tary flow. Granted the statement of "just how many more persons can you cram in here" has some merit. We cannot, however, let. ourselvesrelax on' past successes but must still be competitive to retain the status quo. SECTION III CONTINUED JUSTIFICATION FOR $7,500.00 WINTER ADVERTISING ALLOCATION. It is a fact that ,the town has a fairly stable year-round employment. Granted, there are additional persons hired to handle the increase in business but on the whole the town .has the neucleus base to handle an increase in winter volume without severe additional employment problems. (as per call to town 9/23/71 with k additional police, 3 light and power, and"several" others for streets and water maintenance etc.) The Town of Estes Park has the facilities to handle a far • greater number of persons in the Winter months than the 1616 permanent. population as per census 41gure3 (3200 area). This isevidenced by the handling of our 35,000 + summer population. The towns recent investment in future water clearly indicates the awareness of future populationpressures and shows an in- creased capability of handling larger populations. It would appear most economical and desirable to the Town of Estes Park if our area had a more stable year-round population base -either transient, permanent or semi -permanent. The town is "butting" the ceiling on income during the existing busy Summer months. If more, of the existing service capabilities were able to be utilized in the "off-season" times the town would certainly prosper financially. Add to this the new sales tax revenue potential through increased business and it would seem most profitable if we can increase our Winter months business volume. 5 SECTION III CONTINUED There are other factors to consider in justifying a Winter advertising program. There is a distinct probability that there will be year -around schools throughout the country in the near future. (5-15 years/Business Week) In fact, some 23 school districts in the United States are NOW using some form of year around schools. What will happen to Estes Park if our Summer economy is virtually ruined by not building up our Winter business to stabalize our economy in the event this takes place? A four -day work week is now a reality. Many businesses are standardizing on four ten hour days. as their employees work week. Several large companies in the Denver area are already following this pattern. This means that there will be more year-round recreation time by all. People will be looking.. for more and more things to do over long week -ends. Our conven- ient access, low prices and complete facilities are more than • comparable with any ski area in Colorado. Wouldn't many families prefer a shorter drive to stay in a first class accommodation for $12.00 per nite-rather than drive over 200 miles to stay in a comparable room for $32.00 per nite? Add to this our low tow fees and rentals and the picture is even brighter. To realize the potential existing now we had better start taking advantage of what we have to offer by pursuing Winter business. SECTION III CONTINUED After placing calls to several Chambers comparable to our own we learned that Durango and Vail are initiating new advertising programs for Winter advertising that will make even more vital our need to GET STARTED with a Winter promotion. We have more facilities open during our Winter months than most ski areas have at the time -and that is their busy time of year. the business simply because they have pursued it. They have There is one final item of serious consideration. Some of the "ski" areas are.beginning to pursue Summer business. This is not historically done. sales tax receipts, a 50% increase over and existing Winter However, Vail, according to published State has shown an increase. This June Vail showed the previous June. Their May was up over 40% reservations now coming in are over 50% of what they were a year ago at this time. If these "ski" areas, begin nibbling away at our Summer traffic we will soon feel the bite. To protect ourselves we must begin the pursuit of additional Winter business. SECTION III CONTINUED JUSTIFICATION FOR $1,500.00 NEW INDUSTRY AND BUSINESS PURSUIT There are many forms oflight industry and administrative businesses that would find Estes Park an ideal location for their facilities. Quality businesses with quality payrolls. "There is over a million dollars a day leaving New York City." These businesses are searching for areas offering lower taxes, better working conditions and more favorably priced utilities. Places where employee efficiency is high due to the pleasant working atmosphere Estes Park could be the location of another National Center for Atmospheric Research. We could have a governmental office facility such as the Department of Commerce. We could be the ideal location for an administrative office for an insurance company, an engineering firm, a commercial laundry. The persons employed by these types of firms are high calibre. They would bring in a great deal of additional revenue for existing businesses as well as the town. They would influence• even further expansion of our program for attracting additional quality► light industrial firms into our community. 8 SECTION III CONTINUED Since pursuit of new industry is not a direct benefit to our existing members -and certainly not related to attracting vac- ationers during our Summer season -the advertising would be of a different nature than advertising for tourism. Research from the Association of Commerce and Industry indicates that this form of advertising is usually restricted to larger met- ropolitan communities as small Chambers do not have. the income. necessary to support this type of advertising. If the town were to directly pursue this activity it would necessitate ad- ditional staff or time from existing employees. Therefore we ask, for your consideration, that ''aW amount of up to 12% of this $/:,500.00 allocation be spent for postage and handling of inquir- ies generated ONLY as a result of this advertising. The Chamber of Commerce has the framework to easily handle the additional ad- vertising response. In addition, this type of advertising would cost far less to administer than ads attracting individuals. The Estes Park Area Chamber of cbmmerce.feels that this advertising would result in much additional income for the town and community. It would add presteige to the Town of Estes Park and an influx -contr- olled -of this type of quality, non-competitive industry would benefit the entire community. In addition to this the advertising in journals etc. would result in additional convention inquiries. We have a quality town and should attract' hi -level business. SECTION. III CONTINUED JUSTIFICATION FOR 1 ,500.00.FOR CONVENTION AND GROUP BUSINESS Due to our existing abundance of mid -Summer traffic it is often difficult to arrange for convention or large group facilities. Therefore, of necessity, much of the convention and group business must be arranged for Spring and Fall -when our businesses are open but not full. Coincidentally, this is the best time of year to bring into our community the'additional business. Our business members would benefit by realizing profit when largely vacant. .The town would have the manpower available to service the addition- al business since the "opening and closing" of facilities would have already taken place. Estes Park is an ideal convention spot. We have the things n available to entertain groups -yet the necessary seclusion to lend a "studious" atmosphere to any meeting. If we can actively show results in pursuing group business then more and more of our bus- iness facilities will remain open -thus yielding additional business etc. We must start now, if we are to show results in '72. Groups and seminars are arranged for months -even years -in advance. If we are to realize our share of this market the present is the best time to begin pursuit of this business. 10 SECTION III CONTINUE) Certainly the fruits of this pursuit would be increased revenue for the town and community and a growth of our population that is quality oriented. ' Some communities are even now considering "no growth" policies.. However, in the Eastern slope growth is emminent. Those communi- ties that fdal to adjust and prepare for the coming influx will _un questionably suffer. They will be doomed to, social and economic problems. The best way to assure a quantitative one, is our growth being a qualitative, as well as by actively pursuing the type,of growth we feel is good for our 'community. quality credentails. We want a stable community with The Estes Park Area Chamber of Commerce feels that the advertising program: proposed will result in a balanced, productive, quality. community and better way of life for our residents. Virtually no resident could object to this advertising program. If initiated i �t2ie community and substantially add to the property values of the e A i Oat entire area. It is for this reason that we request your consideration in in- creasing the funds to the Estes Park Area Chamber of Commerce. from $13,000.00 to $20,000.00 for the fiscal year 1972. Thank you. p(tES (Octi r 11 of AGREEMENT THIS AGREEMENT, made and entered into this day , 19 ' , by and between the TOWN OF ESTES PARK, COLORADO, a Colorado municipal corporation, party of the first pert, hereafter referred to as the Town, and THE ESTES PARK AREA CHAMBER OF COMMERCE, a Colorado corporation, hereafter referred to as the Chamber, .WITNESSETH: WHEREAS, the parties have mutual interests in advertising and promoting the Town of Estes Park, and WHEREAS, the Town is willing to furnish advertising and promotion funds and WHEREAS, the Chamber is willing to furnish its services and., facilities for the placing of advertising and the promotion of the Town.of Estes Park. NOW, THEREFORE, in consideration of the premise and the covenants and agreements herein contained, it is agreed: 1. That the Town shall pay to the Chamber the sun of $ . for the calendar year of 1972, to be expended solely for advertising and promoting the Town of Estes Park as hereinafter provided, which sum shall be paid to the Chamber in the following installments: $ on February 15, 1972, $ •on April 15, 1972, $ on the 15th day of June, and $ on the 15th • day of August, October and December, 1972. 2. The Chamber shall expend the $ the Town for the following purposes: A. The Chamber shall spend the sum of $ for advertising the Sumner season. The Chamber shall use only the following media for advertising and promoting the Town of Estes Park, Colorado: newspapers, magazines, brochures, radio, television, signboards,'posters and other similar facilities; provided, however, that all expenditures except those for purchased advertising shall be limited to publicity releases, posters, badges, nametags and brochures or phanpllets. B. The Chamber shall spend the sure of $ for advertising the Winter season. The Chamber shall use only . .those media as listed in A above. The exceptions listed in A above shall also apply to' this section. C. The' Chamber shall spend the sum of $ for promotion of Estes Park as a location for new industry .and • business, The Chamber shall use only the'following media for advertising and promoting the . Town of Estes Park for the above purpose: newspapers, magazines, trade journals, radio, television, brochures and signboards; pr©vided,•however, that all expenditures except those for purchased advertising shall ..be limited to printing of railings, brochures or phanphlets. Up to 12% of the above amount may be spent by the Chamber for postage and secretarial costs incurred in replying inquiries generated through advertising for new business and industry • for the Town of Estes Park. This advertising shall be aimed at attracting non -retail types of business to the Town. funded by -3- D. Tho Chamber shall spend the sum of $ 'for promotion of convention, seminar and similar group business in the Town of Estes Park. The Chamber shall use only the following media for advertising and promoting the Town of Estes Park for the above purpose: newspapers, magazines, trade journals, radio, television, brochures a:a.signboardsi provided, however, that all expenditures except those for purchased advertising shall be limited to printing of mailings, brochures or phanphlets and only ten cents (100) per mile for driving incurred specifically in persuit of convention or group business. The maximum amount that may be spent for mileage shall be less than20% of the above amount. 3. The'Chanber nay not expend any portion of the above amount to contract with any advertising agency without first receiving the approval of the advertising committee of the Town and Chamber. The Town shall not be made a, party to any contract. between the Chamber and any advertising agency nor incur any liability thereunder. 4. The Chamber, in accordance with the provisions hereof, whall handle all of the Town's advertising: A11 of the advertising and promoting of the Town of Estes Park done by the Chamber hereunder shall be subject to the approval of the. Town. 5. The Chamber shall report to the Town's Advertising Committee, in writing, bi-monthly, beginning , 19 The report shall,advise such committee of the sums expended to date hereunder, what nedia:.have been used for such advertising and promotion and the nature thereof. 6. The ' Chamber shall spend a minimum of $ for -4- regional advertising. This regional advertising area isto consist of Colorado, the Southern portion of the state of Wyoming, the Western portion of the state of Nebraska and the Western portion of -the.state of Kansas. 7. The Chamber shall expend, during the contract year of 1972, at least one-half of all sums collected by it'from the sale of • :advertising in any of its brochures. This expendihre shall be in additionto the sun paid by the Town as herein provided. 8. This agreement shall not be assigned without the written consent of the Town of Estes Park. 9. In the event the Chamber finds itself financially unable to administer the advertisingq3rogran provided for in this. agreement it shall so notify the Town in writing and at such time shall relenquish all rights to receiving any additional • advertising funds from the Town until a meeting between the advertising committee's of both the Town and. Chamber shall take Place. and determineation of new goals can be reached.. 10. All covenants and agreements herein contained shall be binding Upon the successors.and assigns of the respective parties • hereto. • IN WITNESS WHEREOF, the parties'have set their hands the day and year first above written. TOWN OF ESTESPARK, COLORADO By , Mayor ATTEST: Town Clerk THE ESTES PARK CHAMBER OF COMMERCE By , President ATTEST: , Mana r • VAIL INCOME AND•EXPENSES FROM THE VAIL RESORT ASSOCIATION M0 MEMBERSHIP INCOME IN EXCESS 0r $40, 000. 00 INCOME FROM TOWN OF VAIL $ 5,000.00 ADVERTISING EXPENSES 65 % of income ADMI ISTRATIVE.EXPENSES 355 of income The, Vail Resort Association is'a marketing cooperative whose sole function is the promotion of the community of Vail. According .to the manager their direct funds are "a•fraction" of the direct • advertising spent by the community.when considering each businesses :individual efforts. INDIRECT ADDITIONAL INCOME IS REALIZED THROUGH C00PERATIVE ADVERTISEMENTS.: ie. THE VAIL RESORT ASSOCIATION MAY PLACE A PORTION OF AN AD ,IN A • PUBLICATION AND OTHER SPECIFIC BUSINESSES.MAY ALSO PARTICIPATE S0 THE • ADVERTISEMENT MAY WIND UP BEING.A FULL PAGE. Vail is one ski area that'is striving for.a year-round economy. They are, in effect,- an Estes Park in reverse. They are persuing a Summer business and ha ve proven successful. .They will:: continue .in this area and about 40; of their overall budget is now spent for Summer advertising. , .CITY OF D'JRANG0----CHAMBER OF COMMERCE INCOME AND-EXPENDITJRES-197O .TOTAL MEMBERSHIP 'INCOME $32, 000.00 . CITY INCOME $ 7, 000.00 COUNTY INCOME $ 2,000.00 ADDITIONAL INCOME 6,000.00 'of the additional income approximately $4,000.00 is specifically raised for Winter advertising -about half of which cones from town. TOTAL ADVERTISING EXPENSES (non -administrative) $18,400.00 Funds from town are earmarked for' direct advertising. ADi'IINISTRATIVE. EXPENSES • .OTHER EXPENSES.. • COMMENTS TS •.$24,000.00 $ 4,600.00 City now in process of undertaking further and more extensive advertising of Winter Season. Winter advertising expected to almost double this year over last.,. Major portion of, tourism for this areas skiing come from Arizona and New Mexico -some from Utah. Businessmen originally got tohether with town to give promotion push for ski area.• Around $40,000.00 was committed and collected. Existing funds are for continuation of this program. • Tourism becoming a major industry.as a result of the ski area. Businessmen pleased at outcome of results of Winter advertising. GLENWOOD SPRINGS CHAMBER OF COMMERCE INCOl'1 AND EXPENSES- 1970 MEZERSHIP INCOME • $31,000.00 INCOME FROM' CITY 4,000.00 INCOME FROM COUNTY.........$ 1,500.00 MISCELLANEOUS INCOME $ 2,000.00 ADVERTISING EXPENSES Town funds are earmarked for advertising expenses used for expenses incurred through advertising-ie. $ 6,025.00 but nay be postage etc. Glenwood Springs has nofacilities for large groups or conventions and as a result does no specific advertising or pronotionr.in,this area. The town and Chanber are persuing larger facilities. in hopes' that larger conventions can be arranged. The town has promised' additional funds (doubling of contribution) if. Chamber can actively solicit convention business. ' • No advertising expenditures for out of state. Rely on state highway to bring tourists. Advertising almost exclusively spent .for brochurbs. GRAND JUNCTION INCOME AND EXPENSES FROM CHAMBER OF COMMERCE 1970 MEMBERSHIP INCOME $40,000.00 INCOME FROM CITY ...$15,000.00 Funds fron city arc taken from sales tax earmaid for any specific purpose. The s end as e e r quir d Indirec' commitment revenue and are not Chamber of Conerce can from town that.funds P• will be increased this year. ADVERTISING EXPENSES $10,000.00 Spent for..Club'20. Virtually no newspaper advertising other. than local or some rogional. .BROCHURE EXPENDITURES..:.•.....•..:... ..:....$ 4,000.00 • COMMENTS The.manager of the Grand Junction Chamber of. Commerce stated that their expenditures were normally not of an advertising nature -since their industry is not predominately tourism. A large portion of their advertising in in the area of persuing additional business and creating markets for their agr arian • economy. It would appear that.an economy based on tourism would require. ' more advertising than industrial. or agricultural.community.