BACKGROUND:
Putting on large special events requires experience, expense, a lot of time to plan, and a sizable staff to execute the day-of event. Historically, the City has relied upon the Greater Coachella Valley Chamber of Commerce (GCVCC or Chamber) to handle virtually all aspects of the State of the City address (SOC) and business awards ceremony.
Given the complexity of the SOC event, GCVCC needs six months to plan. In previously years, the City has elected to hold our SOC in the month of May. If the SOC is to be held in May 2023, GCVCC needs to begin planning the SOC in December 2022.
The GCVCC service provider agreement has historically covered the cost of GCVCC organizing and managing the SOC. Staff, GCVCC, and the City Council sub-committee are still in the process of creating the 2023 City/GCVCC service provider agreement. In a best-case scenario, the 2023 service provider agreement will be ready for Council review in mid-January 2023 which does not give the Chamber sufficient time to plan and presell the SOC event.
Since there is no GCVCC service provider agreement in place, this agenda item will serve as the City/GCVCC fee agreement for the Chamber to organize and manage the May 2023 SOC.
DISCUSSION:
Based on the costs outlined below, GCVCC is requesting a $19,500 contribution from the City to cover a portion of total program costs estimated at $32,664.53. Below is an outline of projected program costs, best-case revenues, and potential profit for the Chamber if best-case revenues are achieved.
PROGRAM EXPENSES
Item Subtotal Total Cost
Audio Visual $9,500.00
Meals $14,992.50
Table Centerpieces $1,522.50
Linen Rentals $1,550.00
$27,565.00
GCVCC Staffing Costs 18.5% $5,099.53
Total Facility, Equipment, & GCVCC Staffing Costs $32,664.53 Cost Per Attendee: 225
Attendees
$145.18
per person
POTENTIAL REVENUE
Ticket sales (GCVCC Members) 100 at $79.00/ticket $7,900 Ticket sales (non-GCVCC Members) 125 @ $99.00/ticket $12,375 Total ticket sales $20,275
Potential Sponsorships $3,000
Business Expo Booth Profit
(Ten booths are available)
$50.00 per booth $500.00
Best-Case Potential
Revenue
$23,775.00
City Sponsorship $19,500
Total Best-Case Potential
Revenue
$43,275.00
Best Case Potential
GCVCC Profit
$10,610.47
General Information
In 2022, the Cathedral City State of the City address attracted almost 225 attendees.
For purposes of this analysis, staff assumed 100 GCVCC members at $79.00/ticket and 125 non-members at $99.00/ticket would attend. Below is a list of what Valley cities charged for their respective states of the city in 2022:
GCVCC-run State of the City Programs in 2022
By City GCVCC Member/
Non-member
Per Person
Ticket Price
City of Cathedral City
GCVCC Member $79.00
Not a GCVCC member $99.00
City of Desert Hot Springs
GCVCC Member $65.00
Not a GCVCC member $85.00
City of Indio
GCVCC Member $99.00
Not a GCVCC member $110.00
City of Coachella
GCVCC Member $69.00
Not a GCVCC member $89.00
Average Ticket Price $86.75
Median Ticket Price $87.00
The 2020-2021 City/GCVCC contract under-allocated a $10,000 City contribution to cover the State of the City. GCVCC reports losing approximately 15% on the 2022 Cathedral City event.
FISCAL IMPACT:
The proposed $19,500 contribution for the 2023 State of the City would be charged to the Economic Development Department budget.