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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 '~/~ JPW-I 1/28/00-G:\j ohn\word\ords\visitor-benefit-tax.doc 7 ~