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Home My WebLink About2008-10-28 Support Documentation Town Council Special Meeting f, VAIL TOWN COUNCIL SPECIAL MEETING AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 3:00 P.M., TUESDAY, OCTOBER 28, 2008 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at-what time Council will consider-an item. 1. Chris Jamot ITEM/TOPIC: Winter 2008/2009 Marketing Strategies (45 minutes) Kelli McDonald ACTION REQUESTED OF COUNCIL: Listen to presentation and provide comments and direction to staff. BACKGROUND RATIONALE:. The Vail Local Marketing District AdvisoryCouncil and Vail. Resorts have met to discuss the need for additional marketing and promotions for the upcoming ski season. STAFF RECOMMENDATION: :Staff recommends implementation of the marketing strategy as presented. If additional funding is needed, it will be included in., the final .2008 supplemental appropriation and the 2009 budget proposal. 2. Judy Camp ITEM/TOPIC: Update on 2009 Budget Proposal (10 minutes) ACTION REQUESTED OF COUNCIL: None - information only. BACKGROUND RATIONALE: In the October 21"` work session, Council gave direction to staff regarding reductions in the 2009 draft budget proposal. - Council accepted staff recommended reductions except for $2,800 for fire resident mattresses and $150,000 reduction in Council contributions. - Council directed no reductions in- the Commission on Special Events and Channel 5-TV, which is a contractual obligation; all other Council contributions are to be reduced by 10%. - The Capital Projects Fund is to retain a fund balance of at least $3.0 million. - Defer $3.2 million of projects in the'Real Estate Transfer Tax (RETT) Fund. These items have been included in the budget proposal that will be presented to Council for approval upon first reading on November 4. Staff will also continue to monitor the Vail economy and its impact on the town's finances and provide monthly reporting to Council. STAFF RECOMMENDATION: None - information only. 3. Stan Zemler ITEMITOPIC: Jump-Start Phase II of Vail's Renewal (10 minutes) ACTION REQUESTED OF COUNCIL: Listen to an update on the status of projects underway and provide comments and/or direction. Four Seasons - Ritz Carlton Residences - Solaris - EverVail North Day Lot Timber Ridge - LionsHead Parking Structure - Others - Fogata; Fairmount (Evergreen), Timberline (Roost) BACKGROUND RATIONALE: The importance of continuing Vail's renewal beyond projects to be completed in 2009 was discussed at the October 21 work session. This agenda itern provides an update on projects in the pipeline. STAFF RECOMMENDATION: None - information only. 4. Stan Zemler ITEMITOPIC: Additional Areas for Focus for Economic Development. (30 minutes) ACTION REQUESTED OF COUNCIL: Listen to staff recommendations and provide comments and direction. BACKGROUND RATIONALE: Three additional areas of focus were identified in the October 21 "t work session - conference center funds, parking, and the hospital. STAFF RECOMMENDATIONS: Conference Center Funds - a. Direct the Town Manager to form.an advisory committee to evaluate opportunities for use of Conference Center funds. The committee would act in an advisory capacity to the Town Manager and would include representatives from: Town Council; Vail Economic Advisory Council (VEAC); the general public; the Brain Bank and various stakeholders. b. The advisory committee will be charged with development. and implementation of a process to collect input and ideas on how to use the conference center funds. c. The advisory committee will report to the Town -Manager and Council on a regular basis and-make a fnal recommendation to Council by March 1, 2009 in support of the Council 'goal of ' having an initiative on the ballot for November 2009 election. d. Formation of the committee will begin immediately. Parking Plan - a. Form a subcommittee of Council to work with Staff to focus on long term parking in conjunction with the Ford Park Master Plan. b. Evaluate TOV future parking strategies including EverVail, LionsHead parking structure and Ford Park. Consider winter and summer parking demands. In consideration of Ford Park, all existing amenities must be retained.. c. Report back to Council on a regular basis and make a final recommendation by March 1, 2009. d. Formation of the subcommittee will begin immediately. Hospital a. On October 21, Mayor Dick Cleveland and Councilman Mark Gordon were appointed as a Council subcommittee to work to keep Vail Valley Medical Center (VVMC) in, Vail. b. The subcommittee will engage the hospital in a dialogue about their future in Vail and monitor progress of the hospital's strategic planning. c. Report back to Council on an as-needed basis. 5. ITEM/TOPIC: Adjournment. NOTE UPCOMING MEETING START TIME BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT TBD, TUESDAY, NOVEMBER 18, 2008 IN THE VAIL TOWN COUNCIL CHAMBERS. «RQ`: ?. e9 ' '? _..' ,• 9K „° .. ,!rib ? ^ ^/''. /? ? - p Q? U?/`?+ - ??}? - pot `3 f s ? °J. ? ??, ?.?b C ? .F Yi h ? '" , q? ° .JO ^ ; an a . "• ' •y' ?? o "' u ? g'y?j T .. "? •!x a ?'. 3 ? f ?. S ? .1a ??yy + ? "?"&s;ta n11C:5?•. o"E'.S'.v?. w)'., ?.?.1.4?+sS+???t789. R_??'+'<? 1' q? ?'r £ '.Y Tw. " finA<' - ..d9???$?yy ?y?.r,- ^.1. "Rw'Pr4 , .i, I IM??; ' Y- r.,?,q?? :n?• 1`a a""':r i":.. p; z.trs.:.. _-..-., ylo VAIL Uke nothing J 1 2 OVAI L Like nothing on earth: TMOFFVAI f 3 V VAi L Like nothing on earth: 7MC.FVAM 'OVAIL Like nothingon earth: 4 y f Q?VAI L Like nothing on earth: 5 5 ""'NAIL Like nothingon earth:. TMCFVA " (;l 1 7 'NAIL Like nothing on earthf. TDWNff99II," 'OVA(L Like nothing on earth" 10W,ffo4II.' - MEMORANDUM October 28, 2008 To: Vail Town Council Stan Zemler Pam Brandmeyer Judy Camp From: Sally Lorton Re: September Sales Tax On the reverse side please fmd the latest sales. tax worksheet. I estimate I'll collect another $9,800.00 in September sales tax to bring September collections to $836,137.00. If so, we will be down 7.95% or $72,181.00 from September 2007 and down 10.31% or $96,100.00 Ii..?u budget. Town of Vail. Sales Tax Worksheet /012812008 % chenye 46 Chl ' 2008 8w[gst rrdvn !tom Month 19197 law 19199 2000 1001 7002 .1003 2004 2005 2006 2007 Budget P.oowtiam - VA*=* 2007 Budget u ? h -??? AL .. - ?, .,.. ` ?, .. mad ht{?a 'I!'." , ? '4". -35;.'stf A•a>' , A January 2,052,569 2.115.369 2.066459 2,034,529 2,210,547 2,073,481 1,997,091 1,225,841 ?,275,967 2.597.;985 2.783,,306 2,857,079 21972,026 114,947 6.78% 4.02% February 2,089,673 2.153,121 2,021,486 2,223,670 2,366 3_1 2,281 833 2,111,163 2,362,825 2.429,377 1527130 2718,643 2,790.702 3.066,617 275,915 12.80% 9.89% March 2,580,992 2,368,077 2,415.209 2 545,573 2.568,871 2,699,664 2,372,943 2,344,178 2,785,101 2,852,954 2,986,446 3,165,608 1322,201 156,593 11.24% 4.95% Apra 874,427 1.107,,334 952,843 926,771 1.043,431 870,875 871,468 992,157 915,554 1,280,324 1,330,740 1,266,006 1,097680 (168,3261 -17.51% -13.30% May 329,783 382,718 370864 388,121 448,234 414,248 428,919 411,595 458,770 449;283 545,874 560.317 623,675 63,358 14.25% 11-31% June 630,366 633.400 692,811 721,774 751,439 657,707 742,755 732 113 834. 913 8(15 a62 953017 978,2281 918,183 (60,078) -3.66% _ -6.14% July 1,043,637 1.107,882 1,130,883 1,235,470 IA57,867 1,044,966 1,075;532 1,128,51.4. 1,166:183 1.255,243 1.265,781 1.299143 1.394„627 95,484 10.18% 7.35% !!Must 1,073.430 1,183.926 1050,004 1,038,516 1.124,275 1,084318 1,029446 994,446 993,985 1,055,614 1,162.746 1.193,,373 . 1,342.977 149,604 15.50% 12.54% 5:,, ,:. qr 637.831 735,608 806.600 817 313 747,766 713;574 679,208 757,033 795;807 832,549 908,318 932,237 826,337 (105,900) -9.03% -11.36% - ?- • ?A 1 2 it Total 11,312,708 11.787,425 11,507,152 11,931,737 12,418 761 11,840,666 11 308,524 11,948,701 12,655,657 13,6561444 14;654,871 15,042 725 16 564, 323 521.598 &21% 3.47% ,>, A. L" a ? 77 g "IN '. October 472,636- 51%531 53R '204 547,201 486,570 4A4,426 608,n9: 532537 688,173 614,396 688.518. 704,751 November 707,166 656;598 582,260 691,445 571,783 642,293 691,269 623,646 713,1.17 799,582 747,877 790;261 December 2,254,709 2,070;834 1.883.,805. 2,062:205 1 933,940 2,139,417 2,17.1;098 2,362 096 2:549,032 2.7.71,158 2,821 871 2,882.263 ; Pal, Ad& ` Total 14,747,419 15,030,386 14,509,421 15,232,588 15,411,044 15,106,801 14,578,983 16466,979 16,483,979 17,841,680 18,913,138 19400.000 ¢? dp, W-A . r, TOWx?I? ' VAI L Like nothing on earth." 1 - Vail Economic Advisory Council Meeting - Tuesday, October 14th Town Council Work Session - Tuesday, October 21St - Lodging Community Brainstorm - Wednesday October 22nd - VLMDAC Meeting - Thursday, October 231d - VLMDAC sub-committee meeting - Monday October 27th T?I?TYAb ' e/VAIL Like nothing on earth: 2 WMar?(BUng Rrabggosa Vail Mountain Destination Effort - Raising brand awareness of Vail Mountain and driving booking is the local marketing team's main responsibility. They do this through the Ski magazines, certain lifestyle publications, significant web and other digital promotions, and direct marketing - At the same time, via the web, email channels, and VBCR promotions, Vail Mountain is also tactically supporting current lodging and other related offers: Baggage Bailout - Ski Free/Stay Free - Holidays On Us (Rock Resorts) 7MCHA I. dVAOL Like nothing oneard 3 l oCflw 200 WOO MgFh00ng ftabg00 Multi-Resort Destination Effort • Vail Resorts' current marketing efforts are comprehensively focused on Epic Pass sales • At the same time, a domestic and international effort is in place to sell full vacation packages at all the resort properties including and especially Vail • Snow.Com and a host of other digital initiatives support the same objective ,ONAI L Like nothing on earth: 4 Front Ranae Marketina Effort • Comprehensive Colorado Pass marketing aggressively targets the Front Range customer • Large scale special events such as Snow Daze, CarniVail and Spring Back to Vail also target Front Range traffic • On-going, email and other digital communications targets the large Vail Resorts database 5 'vVAIL Like nothing on earth: 5 Whbv 200 WOg MarhMhg &7sbgWO • Despite this strong marketing effort, the economic back drop is such that leading indicators suggest an overall shortfall of 08/09 bookings to date • The data also suggests though that interest remains strong in Vail, but closure is not following suit • People appear to be waiting either for an economic upturn or for a compelling offer or significant event (i.e. Snow!!HM) • The team is therefore recommending adopting the 'Business Now' strategy to implement and fund immediate impact initiatives • The partnership of the Town of Vail and Vail Mountain is quickly coalescing around this urgent initiative Goal: For this season, to maintain the same level of overnight stays as 2007/2008 10AN?6AlL ' VAIL Like nothing on earth: 6 ?o? ? 00oD0? G o o Plan v pe b Ma 'Buda Pricritv rC" Loyal Customers j n r• !CM- 100k:pixea. -i0-VailR"n ?(E oO OT- with Co-op element) ' tFront.Rangs -Mew CI , _ . srs C _ _ ' j, ' S2DOK 3 I . - ML J Online t = "so,_1/a 11 llllin Dgstlnatton New Customeis Aldlne Chennele - . _ -y . - -?m - Vail "Win .IEmell _ ' f' Destlnatlon Paokaao ORering a+Wk _. "- , - - _ ° 'National Med!a-(WSJ. U6A Tdday at al) snow Oaze Ticket !Event Enhanoemertt . _ _ . i .• ... ? :: -> _ , -craw Daze '?MOre atleM ? ?FieadllrrgBend More Evwds r• 'Total eudp6t ... - ? - „ 3 7OWlIi?9Ab ' VAI L Like nothing on earth' 7 WoMar 2009§09 0W0 Rswmm(enOdoofl • Staff recommends approval of the marketing strategy as presented • A request for funding will be presented to the Council on November 4th • Staff would work with the VLMDAC going forward with implementation 1YJ1PNtFI 'OVAIL Like nothing on earth' 8 ,?' i' MEMORANDUM EXHIBIT A To: Town Council From: Kelli McDonald Kathleen Halloran Date: November 18, 2008 Subiect: Amended 2008 VLMD Budaet ?,rdc. • ?4 Ute.d. ?y'b?w.?: lo• 6 Ce . ?v;br,? etu Background On November4, Economic Development Manager Kelli McDonald and Finance Director Judy Camp reviewed a funding request for implementation of the recently proposed winter marketing strategy to supplement Vail Mountain's current marketing efforts. Staff recommended Council support the winter marketing program at $550,000 as an economic stimulus funded by the Town's General Fund, with implementation by the Vail Local Marketing District. Council approved the staff recommendation. Suoolemental aoDronriation to VLMD 2008 budoet The $550;000 expenditures are recommended to be allocated as follows: • $150,000 to loyal customers • $200,000 to front range new customers ® $150,000 to destination customers • $50,000 to event enhancement Funds will be spent to impact this ski season beginning no later than December 1. Vail Local Marketing District 2008 Budget 2008 2008 . 2007 Original Amended 2nd Proposed Actual Budget Budget Supplemental Amended _ Income 310 - Lodging Tax 2,063,915 2,075,000 2,075,000 2,075,000 313 Other Income: Transfer from Gen'I Fund 3,837 550,000 550,000 399 • Interest Income 11,053 6,500 6,500 6,500 Total Income 2,078,805 2,081,500 2,081,500 550,000 2,631,500 _ Expense 6301 - Destination 6301.01. Advertising 158,790 235,000 285,000 150,000 435,000 Total 6301 • Destination 158,790 235,000 285,000 150,000 435,000 6302 • Front Range 6302.06 • Advertising 305,556 244,500 269,560 200,000 469,500 6302.07 -.Partnerships 201,691 240,000 240,000 240,000 Total 6302 - Front Range 507,247 484,500 509,500 200,000 709,500 6303. Groups ,and Meetings 6303.01 • Advertising 65,000 85,940 85,940 85,946 6303.03 • Marketing Services 43,000 54,500 54,500 54,500 6303.04. Travel/Tradeshows 123,000 101,500 101,500 101,500 . 6308.05 - Memberships 2,000 5,000 5,000 5,000 6303.11 • Familiarization Trips 26,500 25,000 42,500 42,500 6303.15• Public Relations 10,000 15,000 15;000 15,000 6303.17 - Direct Sales 12,000 12,000 12,000 12,000 Total 6303 • Groups and Meetings 281,433 298,940 316,440 - 316,440 6304. Public Relations Expenses 107,628 116,000 170,000 170,000 6305• Fulfillment 636 4,000 4,000 4,000 6308 • Photography 57,014 55,000 55,000 55,000 6307 • Research 27,918 19,500 19,500 19,500 6310 • Admin Miscellaneous 5,097 10,000 10,000 10,000 6311 • Database Mgmt & Direct Mail 1,370 6,000 6,000 150,000 156,000 6314 - Collateral 23,688 9,000 9,000 9,000 6315 • Web & Email Marketing 57,213 75,000 75,000 75,000 6316• Events 53,000 53,000 . 153,000 50,000 203,000. 6317 • Cross Sell 3,393 6318 • Asset Marketing 148,000 148,000 148,000 6400 • Contingency 7,092 37,500 16,682 16,682 7000! Professional Fees - 7001 • Legal and Accounting 21,097 18,000 20,000 20,000 7003 • Advertising Agent Fees 57,614 62,000 62,000 62,000 7004 • Media Agency Fees 20,000 20,000 20,000 20,006 7007'- Marketing Coordination-WP/TOV 115,000 125,000 125,000 125,000 7008: PR -. Professional Fees 90,000 100,000 103,500 103,500 7009 • Web Site . 80,261 95,000 95,000 95,000 7010! Strategic Advisory Fees 43,712 97,000 115,818 115,818, 7011 • Partnership 97,500 120,678 120,678 120,678 7012 • Air Service 20,000 20,000 20,000 20,000 7013 • Concierge Program 28,000 23,000 23,000 23,000 7014. TOV Loan Repayment 37,000 - - Professional Fees Total 7000 610,184 680,678 704,996 704,996 Total Expense - 1,901,703 2,232,118 2,482,118 550,000 3,032,118 Net Income 177,102 (150,618) (400,618) - (400,618) Beginning Fund Balance 825,792 825,792 1,002,894 1,002,894 Ending Fund Balance' 1,002,894 675,174 602,276 602,276 `Includes TOV Capital Contribution - Percent of Fund Balance to Revenue 48% 320A 29% 23% Exhibit A RESOLUTION NO-24 Series of 2008 A RESOLUTION APPROVINGTHE AMENDED 2008 BUDGET FOR THE VAIL LOCAL' MARKETING DISTRICT, AND AUTHORIZING rn. EXPENDITURES OF SAID APPROPRIATIONS AS SET FORTH HEREIN; AND SETTING FORTH DETAILS IN REGARD THERETO: WHEREAS, the Town of Vail (the "Town"), in the ,County of Eagle and State .of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town* Charter (the "Charter"); and WHEREAS, the members of the Town Council of the Town (the "Council") have been duly elected and qualified; and WHEREAS, contingencies have arisen during the fiscal year 2008. which could not have been reasonably foreseen or, anticipated by the Vail Local Marketing District Board at the time it enacted.Resolution No. 24, Series 2007,'adopting..the 2008 Budget for the Vail Local Marketing District (the "VLMD") of Vail, Colorado; and WHEREAS; in accordance with CRS section 29-1-106.a notice of budget hearing has been published; and WHEREAS, notice of this public hearing to consider the adoption. of the amended VLMD budget was published in the VAIL DAILY on the 10th day of November,.2008. NOW ari-LREFORE, LET IT BE RESOLVED by the Town Council of the Town of Vail, Colorado, as follows: Section 1. The Council approves the amended budget of the VLMD for the .2008 budget, and appropriates an additional $550,000 for marketing related expenditures attached hereto as Exhibit A. Section 2. The Council hereby finds, determines and declares that this . Resolution is necessary and' proper. for the health, safety and welfare of the'Town and the inhabitants thereof. Section 3. This Resolution shall be effective immediately upon adoption. INTRODUCED, READ, Ar r COVED AND ADOr ar.D This 18'h day of November, 2008. Attested: Lorelei Donaldson, Town Clerk Resolution No. 24, Series 2008 Signed: Dick Cleveland, Town Mayor r