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Home My WebLink AboutMINUTES Advertising and Public Relations Committee 1977-12-22BRADFORD PUBLISHING CO., DENVER RECORD OF PROCEEDINGS Advertising and Public Relations Committee ✓December 22, 1977 Committee: Attending: Also Attending: Absent: FINANCIAL REPORT Chairman Wagner, Trustee Dannels and Houston. Chairman Wagner, Trustee Dannels Mayor Tregent, Town Administrator Hill, Chamber of Commerce President Ranglos, Chamber member Greg Rosner and Chamber Manager Carney. Trustee Houston The attached financial report marked as exhibit number 1, is attached to and made a part of these proceedings by reference. The Committee recommends the Board of Trustees approve this report. 1978 ADVERTISING AGREEMENT The attached 1978 advertising agreement between the Town of Estes Park and the Estes Park Chamber of Commerce marked as exhibit number 2 is attached to and made a part of these proceedings by reference. The Committee recommends the Board of Trustees approve this contract. BASE FOR DETERMINING FUTURE ADVERTISING FUNDS The Chamber of Commerce submitted a proposal to use a fixed percentage of the gross sales tax collections as a method of determining the annual amount of advertising funds that will be placed in future contracts. Copies of this proposal are attached as exhibits numbers 3 and 4. The Committee decided to take this suggestion under advisement. There being no further business, the meeting adjourned. Dale G. Hill, Town Administrator THE ESTES PARK CHAMBER OP COMMERCE SCHEDULE OF EXPENSES For the years ended September 30, 1977 and 1976 1977 1 ?7t, Advertising Directory $ 25,814 $ 24,475 Flood 2,154 20,693 " Magazine 4,151 9,201 Newspaper 18,1.36 'i 18,709 Printing brochures 11,105 3,574 Radio and television 1,110 510 Supplies and maps 2,475 3,150 ✓ Travel shows 279 4,105 Miscellaneous 7,319 0 1,500 Awards and trophies 1,071 930 Depreciation 3,045 Employee benefits 1,641 1,461 Equipment rental 2,175 1,729 Insurance 671 402 Miscellaneous 835 2,079 Office supplies 3,847 4,507 Postage 4,577 4,602 Professional fees 1,400 950 Public relations 971 2,361 Repairs and maintenance 1,433 1,403 Rodeo and horse show - 858 Salaries 54,478 44,317 Spring Banquet 3,370 3,374 Taxes -payroll 4,366 4,007 Telephone 3,542 4,034 Travel 1,779 1,119 Utilities 3,163 1,171 Total expenses $ 164 , 907 y 165 , 221. EXHIBIT NO. 1 See accompanying notes to financial statements. -5- 41* AGREEMENT THIS AGREEMENT, made and entered into this day of by and between the TOWN OF ESTES PARK, COLORADO, a Colorado municipal corporation, party of the first part, 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 sum of $35,000 for the calendar year of 1978, 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: $5,000 on the 15th day of January, 1978; $10,000 on the 15th day of March, 1978; $5,000 on the 15th day of April, 1978; $5,000 on the 15th day of May, 1978; $5,000 on the 15th day of June, 1978; $5,000 on the 15th day of July, 1978. 2. The Chamber shall spend the sum of $35,000 funded by the Town for the following purposes: A. Spring and summer radio, newspaper, brochures, B. Spring and summer national magazine, C. Fall advertising (radio, newspaper), D. Winter advertising (radio, newspaper, brochures), E. Travel shows (brochures, booth, rental space only). -1- ii XI III3IT NO. 2 3. The Chamber shall be responsible for the financial administering of the 1978 advertising program including such itemized costs as labor, postage, telephone, and other incurred costs. Town funds are to be allocated for DIRECT ADVERTISING and TRAVEL SHOWS only. 4. The Chamber may 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 of Estes Park and the Chamber. The Town shall not be made a party to any contract between the Chamber and any advertising agency nor incur any liability thereunder. 5. The Chamber, in accordance with the provisions hereof, shall handle the Town's promotional advertising. 6. The Chamber shall report to the Town's Advertising Committee, in writing, quarterly, beginning March 31, 1978. The reports shall advise such committee of the sums expended to date hereunder. 7. This agreement shall not be assigned without the written consent of the Town of Estes Park. 8. In the event the Chamber finds itself financially unable to administer the advertising program provided for in this agreement, it shall so notify the Town in writing and at such time shall relinquish all rights to receiving any additional advertising funds from the Town. No further funds shall be paid hereunder unless this agreement is amended by the parties to provide for chances herein. 9. 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. ATTEST: Town Clerk Town of Estes Park ATTEST: Executive Director Estes Park Area Chamber of Commerce Mayor Town of Estes Park l'resi dent Estes Park Area Chamber of Commerce EXHIBIT NO. 2 CITY CONTRACT PROPOSAL: To base City advertising funding on Retail Sales REASONS: City income based on Retail Sales. City advertising funding should be based on results. Chamber income at a high participation rate, thereby, limiting expansion. "ore effective advertising means higher operating costs at Chamber and high Retail Sales Tax contribution to the City. PPOPOSAL: To base 1978 City advertising funding ($35,000.00) on 1976 Retail Sales Tax ($572,647) with "results oriented funding" beginning in January 1979. PrASoNS: Year end figures will always be available with this time schedule. PROPOSAL: City advertising funding monies are to be spent on direct advertising costs such as: brochures, newspapers, magazines, radio, TV, news releases, postage and other items related to direct advertising generally promoting Estes Park. Budget figures are to be furnished to the Town twelve (12) months in advance of expenditures to allow for Tow' budget arrangements. FORMULA: 1976 RST $572,647 x .061119 1978 City Adv. Funds $35,000.00 1977 RST $xxx,xxx 6% 1979 City Adv. Funds $ xx xxx EXHIBIT NO. 3 CITY CONTRACT FACTS -- 1. RETAIL SALES %INCREASE 1974 - $ 28,462,241 1975 - 30,982,931 8.9 % 1976 - 34,345,363 10.9 % 2. ADVERTISING, C/C %INCREASE 1974 - $ 25,263 1975 - 47,400 87.6 % 1976 - 104,777 121.0 % 3. !1AIL INi1IIIRY'RESPONSE %INCREASE 1976 - 6,294 1977 - 10,249 62.8 % 4. SU"1'1ER VISITOR COUNT %INCREASE 1975 - 64,519 1976 - 75,407 1977 - 127,179 5. CITY ADVERTISING FUND $35,000.09 6. CITY CHIMER '1EIBIRSHIP S 1,000.09 7. RETAIL SALES vs. CITY ADVERTISING FUNDING 1974 1975 1976 .1229 % .1129 .1019 % 16.9 % 68.7 % 8. CITY SP.LES TAX COLLECTED vs. CITY ADVERTISING FUNDING 1976 6.1119 % EXHIBIT no. 4