6/8/2023
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RiversideCA.gov
FIRST AMENDMENT TO AGREEMENT WITH RAINCROSS HOSPITALITY CORPORATION FOR MANAGEMENT OF THE RIVERSIDE CONVENTION AND VISITORS BUREAU AND RIVERSIDE SPORTS COMMISSIONCity CouncilJune 20, 2023General Services Department RiversideCA.gov2
There are two (2) operating agreements with RaincrossHospitality Corporation:1. The main operating agreement for management of the Convention Center, which expires on June 30, 2028; and2. A separate agreement for management of the Riverside Convention and Visitors Bureau (Visitors Bureau)and Riverside Sports Commission (Sports Commission), which expires on June 30, 2023.BACKGROUND 6/8/2023
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The Visitors Bureau markets and promotes Riverside as a premier destination for conventions and meetings.The Sports Commission markets and promotes Riverside as a destination for athletic events.1. Visitors Bureau base annual compensation of $1,100,000, subject to annual CPI increases.2. Sports Commission base annual compensation of $150,000, subject to annual CPI increases. VISITORS BUREAU AND SPORTS COMMISSION RiversideCA.gov4
•Number of Solicitation Calls and Emails•Room Nights Booked: –FY 23/24 Goal: 28,350•Convention Center Revenue Contribution: –Goal generate 50% of total revenue•Conversions/Lead-to-Contact: % of leads that convert to a signed contract•Site Inspections•Average Daily Rate Increase (Hotels)VISITORS BUREAU KEY PERFORMANCE INDICATORS 6/8/2023
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•Additional metrics requested by the Financial Performance and Budget Committee:–No. of Bookings specific to alternate venues, including the Fox, Riverside Municipal Auditorium and the Cheech–Develop metrics to capture visitor spending, perhaps with coupons or incentives to drive visitor business to Riverside restaurants, bars, retail shops and entertainment venues.–Reporting on diversity of groups and organizations requesting bookings, and how booking decisions are made.VISITORS BUREAU FUTURE PERFORMANCE INDICATORS RiversideCA.gov6
•Number of Solicitation Calls and Emails•Room Nights Booked: –FY 23/24 Goal: 7,700•Conversions/Lead-to-Contact: % of leads that convert to a signed contract•Site Inspections•Average Daily Rate Increase (Hotels)SPORTS COMMISSION KEY PERFORMANCE INDICATORS 6/8/2023
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“Explore Riverside” website launching mid-2023:–Tourism information for meeting planners and visitors.–Convention Center–Downtown Hotels–Restaurants–Nightlife–Arts and Culture SceneENHANCED MARKETING LAUNCH RiversideCA.gov8
The proposed First Amendment to this Agreement includes the following key provisions:1. Five Year Extension. The management term is being extended to June 30, 2028, to synch with the expiration date of the Convention Center Agreement, as noted in Section II, TERM of the amendment.2. 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.FIRST AMENDMENT TO AGREEMENT 6/8/2023
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Key provisions (continued):3. Quarterly Hotel Partner Meetings. Updates Scope of Services to require Raincross to hold quarterly hotel partner meetings, as noted in Section IV, SCOPE OF SERVICES.4. City Two-Year Budget. Updates the budget procedure by requiring the City to provide a projected two-year budget preparation schedule to Raincross on or before December of alternate years and requiring Raincross to comply with the timelines set forth in the schedule, as noted in Section V, PAYMENT OF EXPENSES, DAY-TO-DAY OPERATIONS.FIRST AMENDMENT TO AGREEMENT RiversideCA.gov10
Visitors Center: $9,144,850 based on hotel room nights, Convention Center revenue and estimated $64 per day* spend by visitors (22,088) for meals, transportation/gas, retail/shopping, bars/nightclubs, and other entertainment.Sports Commission: $3,290,880 based on hotel room nights, Convention Center revenue, and estimated $64 per day*spend by visitors (14,176) for meals, transportation/gas, retail/shopping, bars/nightclubs, and other entertainment.FY 2022-23 Q1 – Q3 ESTIMATED ECONOMIC IMPACT* $64 per day is based on the California State per diem rate for meals and incidentals. 6/8/2023
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FY 22/23 AND FY/23/24 MANAGEMENT FEES VISITORS BUREAU AND SPORTS COMMISSION AGREEMENTFiscal Year Business Division Account Number AmountFY 2022/23 Sports Commission 2250100-459973 $206,397Visitors Bureau 2250100-459974 $1,775,668FY 2022/23: $1,982,065FY 2023/24 Sports Commission 2250100-459973 $215,808Visitors Bureau 2250100-459974 $1,856,638FY 2023/24: $2,072,446 RiversideCA.gov12
Fiscal Year Convention Center Agreement*Visitors Bureau and Sports Commission Agreement**Total21-22 $5,176,105.22 $1,801,173.00 $6,977,278.2220-21 $5,384,164.84 $1,739,255.52 $7,123,420.3619-20 $4,501,414.34 $1,698,276.00 $6,199,690.3418-19 $3,420,342.40 $1,651,184.28 $5,071,526.6817-18 $3,289,504,64$1,591,840.44$4,881,345.08Totals: $21,771,531.44 $8,481,729.24 $30,253,260.68COMBINED FISCAL IMPACT FOR BOTH AGREEMENTS **For the Visitors Bureau and Sports Commission, the management fee is the only general fund impact. *Convention Center totals include debt service est. at $3 mil annually, plus management fee, incentive bonus, and agency account replenishment. 6/8/2023
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Strategic Priority 5: High Performing GovernmentGoal 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.Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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That the City Council:1. 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 5-year term to 2028, update the CPI and other clarifying issues for a base contract amount of $1,100,000 plus an annual CPI increase for the Visitors Bureau, and $150,000 base contract amount plus an annual CPI increase for the Sports Commission; andRECOMMENDATIONS 6/8/2023
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Continued:2. Authorize the City Manager or his 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.RECOMMENDATIONS