Title:
Title
Funding Agreement: Visit Sacramento Event Relocation Services
End
FileID
File ID: 2019-01344
Location
Location: District 4
Recommendation:
Recommendation
Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) transfer $500,000 from the available fund balance of the Community Center Fund (Fund 6010) to the Fiscal Year (FY) 2019/20 Convention and Cultural Services Department expenditure budget; and 2) execute a Funding Agreement between the City of Sacramento and the Sacramento Convention and Visitors Bureau dba Visit Sacramento (“Visit Sacramento”) for costs related to the relocation of events due to the Convention Center Complex Renovation and Expansion Project (M17100100).
Contact: Fran Halbakken, Project Executive, (916) 808-7194, Office of the City Manager; Matthew Voreyer, Convention Center General Manager, (916) 808-5503, Convention and Cultural Services Department
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Funding Agreement between the City of Sacramento and the Sacramento Convention and Visitors Bureau
Description/Analysis
Issue Detail: Under Resolution No. 2019-0065, City Council approved the Guaranteed Maximum Price (GMP) for the construction of the Sacramento Convention Center Renovation and Expansion Project, which requires the Convention Center to be temporarily closed beginning July 2019 and to be reopened upon the completion of the renovations, which is anticipated on or about November 1, 2020.
The Convention Center has become a destination location for organizations, businesses, and agencies holding meetings, conventions, seminars, and other similar events. During the renovation period, the various organizations that have held events at the Convention Center have to relocate and use other venues to host their events.
One of the organizations affected is the Almond Board of California, which has held its convention at the Convention Center annually since 2012. The Almond Board’s convention in 2019 is scheduled to take place in December 2019, which will be during the temporary closure of the Convention Center.
To accommodate the Almond Board, Visit Sacramento has agreed to assist in relocating the 2019 Almond Board convention to Cal Expo. Staff recommends the approval of the Funding Agreement with Visit Sacramento to help cover the costs associated with the relocation of this event in an amount up to $500,000.
Policy Considerations: This report supports the following goals and policies of the City’s General Plan:
• ERC 4.1.3. The City shall enhance the quality of existing City-owned arts and cultural resources and facilities through reinvestment, communications and marketing.
• ERC 4.1.5. The City shall support renovation and expansion of Convention Center facilities and adjacent supportive infrastructure, including hotels, to attract top-tier national and international events.
Economic Impacts: Not applicable.
Environmental Considerations: Under the California Environmental Quality Act (CEQA), continuing administrative activities, such as what is recommended in this report, does not constitute a “project”. [CEQA Guidelines section 15378(b)(2).]
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Visit Sacramento is a marketing organization, and its purposes include promoting the Sacramento region as a destination for meetings and conventions.
The Almond Board’s annual convention draws thousands of individuals who can experience the Sacramento cultural scene. By maintaining the Almond Board’s 2019 convention within the Sacramento region, it will continue to provide benefits to the local economy, including hotels, restaurants, and other tourist-driven operations. Furthermore, the Almond Board has agreed to continue to host its annual convention at the Convention Center for an additional ten years once renovations are completed.
Financial Considerations: The proposed agreement provides funding in the amount of $500,000. There is sufficient funding available in the Community Center Fund (Fund 6010) available fund balance to cover this amount.
The continuation of the Almond Board convention within the Sacramento region will help support transient occupancy tax (TOT) revenue.
Local Business Enterprise (LBE): Not applicable.