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Home My WebLink About2014-04-01 Agenda and Support Documentation Town Council VLMDVAIL TOWN COUNCIL SPECIAL MEETING AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 1:00 P.M., APRIL 1, 2014 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. Public comments on work session item may be solicited by the Town Council 1. ITEM/TOPIC: Vail Local Marketing District 2014 Supplemental Budget Request (20 min. ) PRESENTER(S): John Dawsey ACTION REQUESTED OF COUNCIL: Vail Local Marketing District Advisory Council recommends that the Vail Local Marketing District listen to the presentation and approve the requested supplemental budge of $97,000. BACKGROUND: The Vail Local Marketing District (VLMD) approved the 2014 Operating Plan and Budget on September 17, 2013 and the Town Council approved on October 1, 2013. The Vail Local Marketing District Advisory Council has been presented with two new opportunities - primary consumer research conducted on a national scale and a billboard campaign on I-70 targeting Westbound traffic. The $97,000 supplemental request would be allocated from the VLMD fund balance, still leaving 43% which is well above the recommended 25%. 2. ITEM/TOPIC: Adjournment (1:20 p.m.) 4/1/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: April 1, 2014 ITEM/TOPIC: Vail Local Marketing District 2014 Supplemental Budget Request PRESENTER(S): John Dawsey ACTION REQUESTED OF COUNCIL: Vail Local Marketing District Advisory Council recommends that the Vail Local Marketing District listen to the presentation and approve the requested supplemental budge of $97,000. BACKGROUND: The Vail Local Marketing District (VLMD) approved the 2014 Operating Plan and Budget on September 17, 2013 and the Town Council approved on October 1, 2013. The Vail Local Marketing District Advisory Council has been presented with two new opportunities - primary consumer research conducted on a national scale and a billboard campaign on I-70 targeting Westbound traffic. The $97,000 supplemental request would be allocated from the VLMD fund balance, still leaving 43% which is well above the recommended 25%. ATTACHMENTS: Memorandum and Supporting Documentation 4/1/2014 To: Vail Local Marketing District From: Vail Local Marketing District Advisory Council Date: April 1, 2014 Subject: Vail Local Marketing District 2014 Supplemental Budget Request I. BACKGROUND The Vail Local Marketing District (VLMD) approved the 2014 Operating and Plan and Budget on September 17, 2013 and the Vail Town Council approved on October 1, 2013. The mission of the Vail Local Marketing District is to market and promote Vail to attract overnight destination guests primarily during the May – October time frame, creating economic vitality by increasing both the visitor base and sales tax revenues. The marketing objectives outlined in the 2014 VLMD operating plan are: Continue the momentum and build on the powerful leadership position of the year-round Vail brand in order to:  Increase May – October occupancy  Increase sales tax revenue  Increase group occupancy  Optimize visitor mix  Increase net promoter score  Increase Vail brand awareness II. RESEARCH AND BILLBOARD OPPORTUNITIES Research The Vail Local Marketing District Advisory Council has been presented with an opportunity from creative agency Goodness Manufacturing to conduct primary quantitative consumer research for Vail summer marketing. The research will be aimed at identifying high opportunity target customer groups, messaging topics that are most likely to inspire those customers to convert to purchase, as well as insights into events/activities that drive destination travelers to visit Vail. This research will be conducted on a national scale with emphasis on key feeder markets. 1 - 1 - 1 4/1/2014 Town of Vail Page 2 The findings from this research will help inform future decisions regarding creative, messaging and media placement to both gain efficiency and increase conversion of guests from VLMD advertising efforts. Results will be presented at the May 20, 2014 special meeting of the VLMD. Billboards The additional opportunity presented is to reach incremental Destination and Front Range overnight visitors with the goal of increasing market share through a Front Range billboard presence. This targeted high-profile billboard placement along I-70 heading Westbound will generate incremental impressions of 3,340,261. The creative message will be event focused and change out 3 – 4 times over the course of June – August with the goal of driving overnight visitation during our peak event time period. III. BUDGET DETAIL The request for a supplemental allocation of $97,000 is recommended to be spent as follows:  Research: $70,000  Billboards: $27,000 This supplemental amount will be allocated from the VLMD fund balance, still leaving 43% which is well above the recommended 25% fund balance. IV. ACTION REQUESTED OF VAIL LOCAL MARKETING DISTRICT Vail Local Marketing District Advisory Council recommends that the Vail Local Marketing District listen to the presentation and approve the requested supplemental budget of $97,000. ATTACHMENTS VLMD Supplemental Budget 1 - 1 - 2 4/1/2014 Vail Local Marketing District 2014 Proposed Amended Operating Plan 20132013Variance20141st 2014 AmendedActualFav / (Unfav)BudgetSupplementalProposed Income 310 · Lodging Tax 2,200,000 2,619,172 419,172 2,600,000 2,600,000 399 · Interest Income 1,200 316 (884) 2,000 2,000 Total Income 2,201,200 2,619,488 418,288 2,602,000 - 2,602,000 Expense 6301 · Destination 806,500 749,324 57,176 954,342 954,342 6302 · Front Range 405,000 416,945 (11,945) 380,000 27000407,000 6303 · Groups and Meetings 537,500 447,799 89,701 570,000 570,000 6304 · Public Relations Expenses 92,000 104,899 (12,899) 92,000 92,000 6306 · Photography / Video 111,500 100,000 11,500 105,000 105,000 6307 · Research 110,725 114,275 (3,550) 70,158 70,000 140,158 6308 · Web Site 45,000 45,000 - 45,000 45,000 6310 · Admin Miscellaneous 7,500 4,203 3,297 7,500 7,500 6315 · Email Marketing 4,000 4,000 - 4,000 4,000 6320 · Branding 102,000 76,819 25,181 110,000 110,000 6400 · Contingency - - - 7000 · Professional Fees - 7001 · Legal and Accounting 20,000 20,000 - 22,000 22,000 7003 · Advertising Agent Fees 50,000 37,500 12,500 50,000 50,000 7007 · Marketing Coordination-TOV 85,000 85,000 - 90,000 90,000 7007 · Marketing Coordination-VVP 40,000 40,000 - 40,000 40,000 7008 . Professional Fees 110,000 100,833 9,167 110,000 110,000 7011 · Partnership Fees 7015 · Ft Range Promotion Fees 30,000 42,500 (12,500) 30,000 30,000 Total 7000 · Professional Fees 335,000 325,833 9,167 342,000 - 342,000 9000 · Special Event Funding 9000.01 · Pro-Cycling Challenge 100,000 100,000 - 100,000 100,000 9000.02 · New Iconic Event Marketing 15,000 12,560 2,440 20,000 20,000 Total 9000 · Special Events115,000 112,560 115,000 120,000 - 120,000 Total Expense 2,671,725 2,501,656 282,629 2,800,000 97,000 2,897,000 Net Income(470,525) 117,832 588,357 (198,000) (97,000) (295,000) Beginning Fund Balance 1,295,688 1,295,688 1,144,570 1,413,520 Ending Fund Balance825,163 1,413,520 946,570 1,118,520 %age Fund Balance (25% required)37%54%36%43% 1 - 1 - 3 4/1/2014 RESOLUTION NO. 1, SERIES 2014 VAIL LOCAL MARKETING DISTRICT A RESOLUTION AMENDING A BUDGET AND MAKING APPROPRIATIONS TO PAY THE COSTS, EXPENSES AND LIABILITIES OF THE VAIL LOCAL MARKETING DISTRICT, FOR ITS FISCAL YEAR JANUARY 1, 2014 THROUGH DECEMBER 31, 2014. WHEREAS, the Vail Local Marketing District board received and approved the operating plan and budget for the fiscal year 2014 on September 17, 2013; and WHEREAS, in accordance with C.R.S. §29-1-106 a notice of budget hearing has been published; and WHEREAS, notice of this public hearing to consider the adoption of the proposed Vail Local Marketing District budget was published in the VAIL DAILY on the 26th day of March, 2013; and NOW THEREFORE, LET IT BE RESOLVED by the Vail Local Marketing District of Vail, Colorado, as follows: The Vail Local Marketing District Board adopts the submitted budget for marketing related expenditures beginning on the first day of January, 2014, and ending on the 31st day of December, 2014. Attested: Signed: _______________________________ ___________________________________ Jenn Bruno, Secretary Andrew P. Daly, Chairman 1 - 1 - 4 4/1/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: April 1, 2014 ITEM/TOPIC: Adjournment (1:20 p.m.) 4/1/2014