HomeMy WebLinkAboutcclc.ag.121901 COMMERCIAL CORE & LODGING COMMISSION
REGULAR MEETING
SISTER CITY ROOM - CITY HALL
December 19, 2001
8:30 am I. Roll call and approval of December 5th, 2001 minutes.
II. Commissioner comment
III. Bill Tomcich- events in Aspen
9:00 IV. Wagner Park- fire pit.
V. Information: Visitor Benefit Tax - information
VI. Adjourn
RESOLUTION NO. 89- SERIES OF 2001
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
APPROVING THE 2001-2002 MARKETING PLAN AND BUDGET FOR THE CITY OF
ASPEN TOURISM PROMOTION FUND AND EXTENDING THE TERM OF THE
AGREEMENT REGARDING THE TOURISM PROMOTION FUND THROUGH
DECEMBER 31, 2002.
WHEREAS, on March 26. 2001 the Aspen City Council approved an Agreement
between the City, the Aspen Lodging Association (ALA), and the Aspen Chamber Resort
Association (ACRA) relating to the expenditure of a portion of the receipts of the recently
imposed 1.0% visitor benefit tax; and
WHEREAS, the Agreement reqmres ACRA to submit to the City a detailed annual
marketing program and expense budget, along with a review of the previous year's program
(except for the first year); and
WHEREAS, the term of the Agreement may be extended by mutual agreement of the
parties upon the submission by ACRA of the annual marketing plan and budget and the approval
of the same by the City Council: and
WHEREAS, the City Council desires to approve the proposed marketing plan and budget
and thereby extend the term of the Agreement through December 31. 2002.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
That the 2001-2002 marketing plan and budget appended hereto as Exhibit A is hereby
approved and the term of the Agreement is hereby extended to December 31, 2002.
RESOLVED. APPROVED, AND ADOPTED this 10th day of September, 2001. by the
City Council for the City of Aspen,, Colorado.
Hot~n~at~/Kla ayor
I, Kathryn S. Koch, duly appointed and acting City ~l~lrerk~dlo"TV[ce~;fy that the foregoing is
a true and accurate copy of that resolution adopted by the City Council of the City of Aspen,
Colorado. at a meeting held September 10, 2001.
athryn S. IC/~ch. City Clerk
ASPEN
~*~- ~,~,~*~- ~,~ ~ September 10, 2001
i~' ~ ,~;~. Mayor ~anderud and members of the Aspen City Council:
~ We appreciate the opporm~y ~o presen~ this marketing plan and
:~ ~~ proposed budge~ for Aspen's ~ourism promotion fund. As you ~ow,
c H A M B E ~ ~he Aspen Chamber gesor~ Association was contracted by ~he Cigy.
R ~ S o R T of Aspen ~o administer ~he marketing ~nds res~ting ~om
~o~ ~" passage of the lod~ng [~.
42~ s~,, ~-,,,~ ~ In ~his pac~e~, you wi~ find ~he comprehensive, bound marketing
plan ~hag is a resul~ of eight months of work by ~he AC~'s
~p~ co~, a~n M~keting Advisory Committee and P~CO, ~he marketing firm
...... ~,~,~,.~o~,~ ~ You also w~ find a brief ore.Jew of the plan wi~h b~le~ points; the
de~ailed propose~ budge~ for 2001-2002; and a summation of
feedback we have received ~om the community.
We're available a~ any time ~o answer questions, an~ we look
forward ~o meeting with you on ~on~ay, Sept. 10.
~is~ine Nolen
Presiden~ and ~EO
Aspen Chamber gesort Association
PRACO. LTD.
Public
PRACO
Advertising
2001-2002 ASPEN MARKETING PLAN
5500 DTC P~r~ay~ Campaign Goals
· Increase hotel occupancy & expenditures for trial visitors
Suite 200
· Provide realistic ROI
~,~ie..ooc:. co ao:~l · Re-energize Aspen brand to trial visitors
· Leverage marketing investment through co-ops
303-689-0704
Campaign Obiectives
Fax 303-850-7820 · Generate measurable direct contacts
· Generate $2,400,000 in new lodging revenue oy year 2 of campaign
· Provide short-term ROI of $6 to $1
· Provide long-term ROI 0f$18 to $1
Member AA2~
Strategy #1: Research
· Brand Repor¢
· Asoen Ski Co. Co-op Quantitative Survey
· Creative Testing
· ACRA Quantitative Survey
Strategy #2: Package Development
· 52 Packages per year
· Developeo oy ACRT
· Target "hot deal" travel sections in top 100 national newspapers
· Additional efforts in Los Angeles & Dallas
· Trackable and measurable
Strategy #3: Community Relations
· lwo-way communication program to educate, inform, and elicit feedback on
the ACRA marketing efforts
Strategy #4: "Booster Shots" - lwo Direct Marketing Campaigns
· Regional focus in LA & Dallas/Ft. Worth winter & summer)
· MNI Magazines- 6 ~ublications
· Bloomberg.com
· NPR Radio sponsorsn ~s
· Direct mail cam ;aign with American Express - series of 3 postcards
· Trackable and measurame
Strategy #5: Campaign Site
· Adjunct to ACRT site
· Address barriers
· Promote & list packages
· Links to booking function or 800#
· Links to a variety of Aspen sites
· Trackable and measurable
ASPEN CHAMBER RESORT ASSOCIATION
2001-2002 MARKETING PLAN:
COMMUNITY COMMENTS AND
MOST FREQUENTLY ASKED QUESTIONS
At the request of the city manager's office, we've compiled a brief report on
the questions and comments the community offered in response to a review of
the marketing plan.
Background: Once the research had been completed and the marketing plan
began To take shape, ACRA and its contracted agency, PRACO, met with a
variety of community groups to discuss strategies and tactics. These groups
included.the ACRA's 20-member Marketing Advisory Committee: the Aspen
Lodging Association; PR Connections. which is the group composed of local
public relations managers; the Aspen Skiing Company staff and its agency
representatives: the Snowmass Village Resort Association staff and its
agency representatives; the ACRA Board of Directors; and the community at
large.
It must be noted that the general reaction, even from some of the most
opinionated, experienced folks in our community, was very positive. The
goals, objectives and strategies of the campaign were affirmed and the
research and thoughtfulness that had led us to this point were acknowledged.
We then proceeded to more specific feedback:
How does this tie in to the Skiing Company's and Snowmass's
marketing plans? Thanks to thorough communication between our
marketing staffs and our agencies, we have all identified some very
consistent audiences we think are ripe for trial. Skico. of course, goes after
the skier/snowboarder audience and segments it from there; Snowmass, not
surprisingly, will strongly target families; and ACRA has identified by
lifestyle--affluent, active, metropolitan-area adults who love adventure-
based vacations. We are working hard to dovetail our efforts, not duplicate
them.' SVRA and ACRA are employing two agencies with a strong fraternal
relationship, and we are talking about cooperative advertising in the fall of
2002.
Why is Aspen Central Reservations the call to action? We sent out
requests for proposals to virtually every local travel agent. ACRT's proposal
was selected by a subcommittee of the Marketing Advisory Committee. ACRT
has a sophisticated on-line booking system, tools for measunng results of our
campaign, and is a community-based reservations agency serving the Aspen
and Snowmass communities exclusively.
Another Web site? Don't we have enough in this community? We don't
consider aspeneffect.com another Web site. It's a portal that we need to 1)
break down barriers to visiting and booking Aspen; 2) drive business'to the
sites to which it seamlessly connects: aspensnowmass.com; stayaspen.com;
aspenchamber.org; etc. and 3) you'll hear us say this again and again--we've
got to have a tool to track the results of this campaign.
Why are Los Angeles and Dallas the focuses of the "booster shot"
campaigns? First, it's impor~an~ to remember that the package
promotions--to the top 100 newspapers with package sections and travel
Web sites--and other elements of the Chamber's marketing efforts are
nationwide. The booster campaigns were limited to cwo markets because of
the advertising costs. Los Angeles came to the top of everyone's list; research
has shown that we have a very strong California audience, with room for
growth. Dallas was selected as the second city because: it is also a lucrative
market for Aspen; we needed a market that would work for both summer and
winter, and those folks who. are not die-hard skiers in the East and Midwest
are not as likely to take a winter Rocky Mountain vacation; and Dallas is a
less expensrve buy than. say, Chicago or New York. (As an aside, our research
showed that access was not the detractor we thought it might be. In other
words, we believe the absence of direct flights from Dallas is outweighed by
the positive points of this market.)
We understand public relations is a big part of the effort, but
promoting a package a week? Isn't that just inundat'ing editors with
information they don't want? The major goal of the marketing effort is to
drive business m the lodging sector, so offering vehicles that encourage our
audiences to book is critical. And these are not stories we're pitching to
editorial staffs; these are attractive packages, activity-based, that we're
sending to publications that like to list such packages in special sections.
How does the creative address campaign strategies? Aren't we just
selling sex? As one might expect, the display advertising graphics and copy
received the most comment. (Although a relatively limited portion of the
overall marketing plan, they are the most visible reflection of it.) It is
somewhat challenging to respond to this in a brief such as this, without
reiterating ~he research findings and strategies that logically led us to this
point. But in short, we believe that to achieve success, we need to do more
than list the attributes of the resort. We also need ~o do more than deny that
we are expensive, exclusive, and inaccessible. These strategies have been
employed in the past, and are not driving incremental new business.
We have to hit our targeted audience where they live, and they've told us the
element that distinguishes a successful experience for them is how they feel
on vacation. This group could essentially go anywhere: they make vacation
decisions based on how intense and sensuous they know their experiences
will be.
We also know that the most attractive photos and the best copy are useless if
no one is looking at them. If we are going to employ display advertising at all,
it has to draw attention or We've wasted our limited resources.
~.SPEN CHAMBER KESORT ASSOCIATION
2001-2002 ~ING PLAN
PROPOSED BUDGET
PRESENTED TO ASPEN CITY COUNCIL
SEPT. 10, 2001
INCOME
Lodging tax revenue $ 440,000
Co-op funds $ 140,000
TOTAL INCOME $ 580~000
EXPENSE
Advertising - media buys $ 168,000
*Committee expense S 1,500
Contract labor
'administration 5 8,500
research $ 48,000
marketing plan S 1,500
package development $ 12,000
campaign site S 28,500
*Legal a~d accounting S 10,000
Postage and printing - direct n/ail $ 156,000
Professional fees
production//~raphic design $ 26,000
agency
research $ 12,000
marketing plan $ 18,500
package development $ 38,000
campaign site $ 6,500
community relations $ 15,000
Travel $ 10,000
Contingency $ 20,000
TOTAL EXPENSE $ 580,000
Chamber reimbursement
ORDINANCE NO. 45
Series of 2000
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
.~vlENDING TITLE 23 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN TO
IMPOSE A NEW 1.0% VISITOR BENEFIT TAX; TO ESTABLISH A TOURISM
PROMOTION FUND FOR DEPOSIT OF SAID TAX RECEIPTS; TO PROVIDE FOR THE
RESTRICTED EXPENDITURE OF SAID TAX RECEIPTS: AND TO ESTABLISH
PENALTIES FOR VIOLATIONS THEREOF.
WHEREAS, the City of Aspen is a world renowned tourist destination; and
WHEREAS, the' continuation of a healthy tourism industry is essential for the economic
well-being of the City of Aspen and the general welfare of its citizem and such an industry
requires a continuing investment in the planning, promotion, and development of the City of
Aspen as a world renowned travel destination; and
WHEREAS, the City Council has determined that it should be the policy of the City to
guide a sustainable and coordinated tourism industry in the City of Aspen; and
WHEREAS, the City Council has determined that such an effort should be financed, in
part, by the imposition of a Visitor Benefit tax upon the leasing or renting of rooms or other
accommodations in commercial lodging accommodations by short term visitors and guests; and
WHEREAS, the City Council has determined that it is in the best interests of the citizens
of the City of Aspen for the City to participate fully in the organization and operation of a
Regional Transportation Authority and to contribute financially to that effort; and
WHEREAS, the City Council has determined that tourists and guests of the City of Aspen
should be required to help defray the costs of transportation services offered within the City of
Aspen; and
WHEREAS. the ballot language as approved by the voters of the City of Aspen at the
November 7, 2000, election specifies that marketing funds shall be managed by a professional
marketing entity such as the ACRA; and
WHEREAS. an additional revenue source for the City of Aspen would (a) permit the City
to fully participate financially in the newly created Roaring Fork Transportation Authority; (b)
ensure that currem local transportation services are maintained at their current levels; and, (c)
provide requisite financial resources for additional and unproved transportation services within
the City of Aspen: and
WHEREAS, the City Council has determined that 50% of all revenues generated by the
Visitor Benefit tax shall be used to enable the City to meet its financial obligations to the Roaring
Fork Regional Transportation Authority or other similar transportation services provider, and
50% of all revenues generated shall be used for marketing and promotional efforts for the City's
tourism industry; and
WHEREAS. Article X, Section 20, of the Colorado Constitution, and Section 12.1 of the
Aspen HCme Rule Charter, require the City Council m obtain voter approval in advance of the
imposition of any new taxes.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
ASPEN, COLORADO:
Section 1.
That Title 23 of the City of Aspen Municipal Code be amended to add a new Chapter 23.50 to
read as follows:
Chapter 23.50
Visitor Benefit Tax
23.50.010 Legislative Intent.
The City Council declares that the enactment of a 1.0% Visitor Benefit Tax and the
expenditure of the receipts of such a tax for the promotion of tourism and transportation
services within the Roaring Fork Valley will serve a public purpose, will promote the health.
safety, prosperity, security, and general welfare of the inhabitants and visitors of the City of
Aspen. It is the intent of the City Council to impose a tax upon the leasing or renting of rooms
or other accommodations in commercial lodging accommodations by transient persons. The
person to whom the accommodations are rented shall pay the tax and the person from whom
the accommodations are rented shall be required to collect the tax.
23.50.020 Definitions.
As used in this chapter, unless the context requires otherwise, the following words and phrases
shall have the following meanings:
(A) "Accommodation" means the providing of a room, space, lodging service, or
other accommodations at a taxable premise to any person who, for consideration, uses
or possesses such room, space, [odging servtce or other accommodation for a total
continuous duration of less than thirty (30) consecutive calendar days.
(B) "Fund" means the Tourism Promotion Fund defined in Section 23.50.050, of
this Municipal Code.
(C) "Purchaser" means any natural person, or legal entity acting through a natural
person, to who accommodations are provided.
(D) "Rent" means the consideration received, or compensation charged, for the
providing of accommodations.
(E) "Taxable premises" means any hotel, apartment-hotel, motel, guest home,
condominium, townhouse, townhome, lodge, motor lodge, trailer court, campground,
or bed and breakfast establishment.
(F) "Tourism" means the guidance, management, promotion, encouragement, or
accommodation of tourists.
(G) "Vendor" means any natural person or business entity that provides
accommodations for rent at a taxable premise.
23.50.030 Imposition of tax.
There is hereby imposed a visitor benefit tax of one percent (1.0%) upon the rent paid
or charged for accommodations provided by a vendor to a purchaser at a taxable premise.
23.50.040 Receipts, disposition.
All monies collected or remitted in accordance with this chapter shall be credited to the
separate fund created by section 23.50.050 of this Municipal Code. and shall be kept separate
and distinct from the General Fund or any other separate funds maintained by the City.
23.50.050 Tourism Promotion Fund.
A. There is hereby created a special separate fund to be known as the City of
Aspen Tourism Promotion Fund. Said fund shall be separate and distinct from any other funds
or accoums used or maintained by the city for any other purposes. The monies of said fund
shall be expended only for the purposes set forth herein and no others.
B. The fund shall consist of:
(1) all monies deposited or transferred thereto in accordance with section
23.50.040 of this chapter;
(2) contributions of money, property, or services received for use in
carrying out the purposes of the fund from any person, corporation, or
association; and
(3) all monies otherwise made available to the fund from whatever source.
C. Any monies not appropriated shall remain in the fund and shall not be
transferred to or revert to the General Fund of the city at the end of any fiscal year. Any
interest earned on the investment or deposit of monies of the fund shall remain in the fund and
shall not be credited ro the General Fund of the city.
D. Fifty percent (50%) of all monies in the fund shall be dedicated to transportation
services as described below and fifty percent (50%) of all monies in the fund shall be dedicated
for tourism promotion activities as described below. Ail appropriations of monies from the
fund shall be made by the City Council and only in accordance with the above-described
dedication of those funds.
E. Funds dedicated to transportation service in accordance with Section
23.50.050(E) shall be appropriated by the City Council only for the following purposes:
1. To pay for regional transportation services as provided by the Roaring
Fork Regional Transportation Authority or the Roaring Fork
Transportation Agency;
2. To contribute to local public transportation services within the City of
Aspen and its immediate environs;or
3. To defray administrative and clerical costs of collecting and
administering the tax. provided such expenditures do not exceed the
actual costs of such administrative and clerical costs.
F. Funds dedicated to tourism promotion ~n accordance with Section 23.50.050(E)
shall be appropriated by the City Council to a professional marketing entity such as the Aspen
chamber Resort Association upon the submission and approval of a budget prepared by the
Aspen Chamber Resort Association, or other similar organization, only for the following
purposes:
1. planning and implementing the advertisement, promotion, and
development of tourism in the City of Aspen;
2. tourism advertising, written and graphic materials, and cooperative and
matching promotional materials:
3. gathering and disseminating information on the tourist industries and
attractions of the City of Aspen;
4. purchasing such equipment, materials, and supplies as shall be
necessary, to be used solely for tourist promotion;
5. contracting for those services and materials as may be incidental,
necessary, and appropriate to the accomplishment of the purposes of the
fund. including but not limited to, administrative, secretarial, clerical, or
professional services deemed necessary;
6. attracting conferences, conventions, and meetings of a commercial,
cultural, educational, or social nature to the City of Aspen;
7 attracting sport'mg events and social and cultural events sponsored by
non-profit organizations:
8. defraying administrative and clerical costs of collecting and
administering the tax, provided such expenses do not exceed the actual
costs of such administrative and clerical costs.
23.50.060 Administration.
The administration of this chapter is hereby vested in the finance director. The finance
director shall prescribe forms and adm'mistrative procedures for the ascertainment, assessment,
and collection of the tax not inconsistent with this chapter, and for the enforcemem of this
chapter. This Chapter 23.50 shall be administered in accordance with Chapters 23.04 through
23.28 of this title, m the extent that they do not conflict with the provisions of this Chapter.
23.50.070 Civil action for recovery tax due.
The city shall have the right to recover all sums due under the terms of this chapter by
judgment and execution thereon in a civil action in any court of competem jurisdiction. Such
remedies shall be cumulative with all other remedies provided herein for the enforcement of
this chapter.
23.50.080 Violation; penalty.
Failure to comply with the terms of this chapter by payment of taxes, filing of a return
and otherwise complying with the terms of this chapter shall constitute an offense m violation
thereof, punishable, upon conviction, by a fine. imprisonment, or both a fine and
imprisonment, as set forth in section 1.04.080 of this Municipal Code.
Section 2.
The effective date of this ordinance and the unposition of the tax referenced herein shall
be January 1, 2001; provided, however, that a majority of the electors of the City of Aspen
voting thereon, at the November 7, 2000, municipal election, approve the imposition of an
increase in sales taxes as contemplated by this ordinance.
Section 3.
This ordinance shall not have any effect on existing litigation and shall nor operate as an
abatement of any action or proceeding now pending under or by virtue of the ordinances amended as
herein provided, and the same shall be construed and concluded under such prior ordinances.
Section 4.
If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason
held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and shall not affect the validity of the remaining portions
hereof.
6
A public hearing on the ordinance shall be held on the 23rd day of _October 2000, in the City Council
Chambers, Aspen City Hall, Aspen, Colorado,
INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the
City of Aspen on the 25th day of September, 2000.
[ Rachel E. Richard~ Mayor ~-~
ATTEST:
FINALLY adopted, passed and approved this 23rd day of October 2000.
Rachel E. Richards, ~vlayor
ATTEST:
Kathryn S~'~ch, City Clerk/c/' -~7 '~/~
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