City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 21, 2023 FROM: GENERAL SERVICES DEPARTMENT WARDS: ALL
SUBJECT: FIRST AMENDMENT TO MANAGEMENT AND OPERATIONS AGREEMENT WITH RAINCROSS HOSPITALITY CORPORATION FOR THE RIVERSIDE CONVENTION & VISITORS BUREAU AND RIVERSIDE SPORTS COMMISSION TO EXTEND FOR ONE ADDITIONAL FIVE-YEAR TERM TO JUNE 30, 2028, FOR A BASE CONTRACT AMOUNT AS OF FY 2022/23 OF $1,775,668 FOR THE RIVERSIDE CONVENTION AND VISITORS BUREAU AND $206,397 FOR THE RIVERSIDE SPORTS COMMISSION ISSUE:
Approve the First Amendment to the Management and Operations Agreement with Raincross Hospitality Corporation for the Riverside Convention & Visitors Bureau and Riverside Sports Commission to extend for one additional five-year term to 2028.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to the Management and Operations Agreement with Raincross Hospitality Corporation for the Riverside Convention & Visitors Bureau and Riverside Sports Commission to extend for one additional five-year term to June 30, 2028, for a base contract amount as of FY 2022/23 of $1,775,668 for the Riverside Convention & Visitors Bureau, and $206,397 base contract amount for the Riverside Sports Commission; and Authorize the City Manager, or designee, to execute the First Amendment to the Management and Operations Agreement with Raincross Hospitality Corporation for the Riverside Convention & Visitors Bureau and Riverside Sports Commission, including making minor and non-substantive changes.
BACKGROUND:
In 1996, the City began contracting with Entrepreneurial Hospitality Corporation (EHC) to operate both the Convention Center and the Riverside Convention and Visitors Bureau (RCVB). The RCVB focuses on attracting convention and visitor business to Riverside, both at the Convention Center and at many other venues in the city, including but not limited to hotel meeting rooms, sports venues, and the Riverside Municipal Auditorium.
In 2009, the City issued a Request for Proposals (RFP) for management and operation of the Riverside Convention Center and RCVB. EHC was the sole proposer and on November 25, 2009, the City Council approved a Management and Operations Agreement that encompassed both the Convention Center and the RCVB. This Agreement was for five years with one five-year option to renew.
In August 2012, the City Council approved the assignment of the EHC contract to Raincross Hospitality Corporation (RHC), a local company formed by Ted Weggeland, the principal executive at EHC with responsibility for the Convention Center and RCVB since 1996. RHC maintained the primary staff who had successfully operated the Convention Center and RCVB prior to the assignment. The City Council also approved the First Amendment to the Management and Operations Agreement engaging RHC to temporarily operate convention center services from the Riverside Municipal Auditorium during the $45 million renovation and expansion of the Riverside Convention Center. The First Amendment also created and provided funding for the Riverside Sports Commission (RSC) as a function of the RCVB. Lastly, the First Amendment extended the term of the RHC agreement through June 2022 and required that a new, Internal Revenue Services (IRS)-compliant management agreement be negotiated for operation of the Convention Center upon reopening.
In August 2013, the City Council approved a separate agreement for the Management and Operation of the RCVB and RSC as it was necessary to separate the RCVB operation and management from the Qualified Management Agreement for the Convention Center, due to IRS rules. The RCVB is a separate business unit from the Convention Center and a standalone agreement provides more clarity and ease of administration. The term of this agreement is from July 1, 2013, to June 30, 2023, with option to extend for an additional five years.
DISCUSSION:
Riverside Convention & Visitors Bureau (RCVB) Scope of Services The RCVB markets and promotes Riverside as a premier destination for conventions and meetings. The RCVB’s Scope of Services is as follows:
Develop an Annual Sales and Marketing Plan.
Hire and manage sales, marketing, administrative staff necessary to achieve the objective of the RCVB.
Maintain the RCVB’s “Bring it Home!” campaign.
Develop promotional materials to support efforts to promote convention sales and business lead generation consistent with the RHC’s marketing plan.
Disseminate information to prospective meeting and convention groups at tradeshows; during Familiarization Tours; in local, regional, state, and national publications; through an interactive RCVB website and social media; in collateral materials, direct mail; and utilizing other sales and marketing platforms as may be consistent with the RHC’s sales and marketing plan.
Attend appropriate tradeshows to sell and market Riverside as a premier convention city.
Create monthly calendar of events at the Convention Center and share the events calendar with the City on a monthly basis.
Cooperate with the City, Riverside Downtown Partnership, Arlington Business Partnership, hotels, Greater Riverside Chambers of Commerce, and other appropriate organizations regarding distribution of destination and tourist information to City visitors.
Develop an annual limited economic analysis.
Submit quarterly performance reports to include a summary of marketing metrics, leads generated, ads placed and social media growth.
For the fiscal year ending June 30, 2023, the base management fee including CPI increase is $1,775,668.
Riverside Sports Commission (RSC) Scope of Services
The RSC promotes Riverside as a destination for athletic events. RSC’s scope of services includes:
Develop a sales and marketing plan and budget and submit to the City annually prior to the end of March of each year of the contract.
Hire and manage sales, marketing, and administrative staff necessary to achieve the objective of the sales and marketing plan.
Develop promotional materials to generate leads consistent with the RSC marketing plan.
Appropriately assist those sports groups that have committed to compete in Riverside to meet their objectives in order to earn repeat business.
Disseminate information to athletic competition organizations at industry tradeshows, during Familiarization Tours; in local, regional, state, and national publications; through an interactive RSC website and social media; in collateral materials, direct mail; and utilizing other sales and marketing platforms as may be consistent with the RSC sales and marketing plan.
Attend appropriate tradeshows to sell and market Riverside as a premier city for athletic competitions.
Through the “Bring it Home!” Campaign, work closely with local athletic organizations to secure event leads.
Public Relations: Utilize social media to drive attendance and direct participants and visitors to Riverside’s retail establishments and restaurants; develop strategic partnerships to help ensure event success; and establish/enhance relations with local news media to insure public awareness of events.
Assist local athletic organizations in submitting RFPs; securing bid fees and athletic venues; coordinate with local stakeholders; customize communication pieces to provide the best opportunity for booking success; as appropriate, assist in event planning and production, including coordinating site inspections, securing necessary event permits, planning and managing event transportation and parking; and securing and deploying event volunteers; coordinate welcome materials for participants, and event programs for participants and visitors, including competition site maps and directions to restaurant and retail establishments.
Coordinate with athletic organizations and retail establishments to promote economic activity.
In collaboration with the City, encourage the development of athletic venues in order to attract athletic competitions; conduct venue feasibility analysis.
Create and maintain a monthly calendar of events to be shared with the City on a monthly basis.
For the Fiscal Year ending June 30, 2023, the base management fee including CPI increase is $206,397.
First Amendment to the Management and Operations Agreement The current Management and Operations Agreement between the City and RHC for management of the RCVB and RSC expires on June 30, 2023. The proposed First Amendment to this agreement includes the following key provisions:
Five Year Extension. The management term is being extended by five years to June 30, 2028, as noted in Section II, TERM of the amendment.
Consumer Price Index. Updates the Consumer Price Index to include Riverside-San Bernardino-Ontario, CA as its own Core Based Statistical Area, as noted in section III, COMPENSATION.
Quarterly Hotel Partner Meetings. Updates Scope of Services to require RHC to hold quarterly hotel partner meetings, as noted in Section IV, SCOPE OF SERVICES.
City Two-Year Budget. Updates the budget procedure by requiring the City to provide a projected two-year budget preparation schedule to RHC on or before December of alternate years, and requiring RHC to comply with the timelines set forth in the schedule, as noted in Section V, PAYMENT OF EXPENSES; DAY-TO-DAY OPERATIONS.
All other terms and conditions of the Agreement remain in effect.
STRATEGIC PLAN ALIGNMENT:
This report aligns with Strategic Priority No. 5: High Performing Government and No. Goal 5.4: Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.
Community Trust – Raincross Hospitality Corporation, the City’s partner in managing the Riverside Convention and Visitors Bureau and Riverside Sports Commission, was selected through a Request for Proposals process and approved by City Council, ensuring public transparency.
Equity – Conventions, meetings and sporting events draw visitors to Riverside and generate transient occupancy tax and sales tax revenues to help fund equitable public services for Riverside residents.
Fiscal Responsibility – The Riverside Convention and Visitors Bureau and Riverside Sports Commission provide a tangible economic benefit to the City by attracting business for local hotels, restaurants and retail establishments.
Innovation – Conventions, meetings and sporting events build social capital for the City.
Sustainability & Resiliency – Raincross Hospitality Corporation has extensive experience and proven success in the management of the Riverside Convention & Visitors Bureau and Sports Commission, helping to ensure that Riverside continues to benefit economically as destination for conferences, meetings, and sporting events.
FISCAL IMPACT:
The total fiscal impact for FY 2022/23 is $1,982,065. Funds to cover the contract costs are budgeted and available in the Convention Center Fund, Riverside Convention Visitors Bureau account 2250100-459973 in the amount of $1,775,668, and Riverside Sports Commission account 2250100-459973 in the amount of $206,397.
Prepared by: Carl Carey, General Services Director
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer Approved by: Kris Martinez, Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Amendment
First Amendment – RCVB an RSC ● Page 2