Item 5 Staff Report Accept Report on Economic Development ProposalsDATE:
TO:
FROM:
SUBJECT:
MEETING DATE: 6/17/96
ITEM NO.
COUNCIL AGENDA REPORT
JUNE 12, 1996
MAYOR AND TOWN COUNCIL
TOWN MANAGER
ACCEPT REPORT ON ECONOMIC DEVELOPMENT PROPOSALS
RECOMMENDATION:
Accept report on economic development proposals.
BACKGROUND:
In submitting the proposed budget to Council, I mentioned that two economic development proposals had been received
and that I understood a third was forthcoming. To date, I have not received the third proposal. The two that I have
received are (a) PRELIMINARY MARKETING PLAN FOR A CONFERENCE AND VISITORS BUREAU from
Katherine and Gary Ehlert of Profit Source, and (b) TOWN OF LOS GATOS ECONOMIC DEVELOPMENT
PROPOSAL presented by the Town of Los Gatos Chamber of Commerce, Robin Tole, Chair.
The Profit Source proposal aims at increasing Transient Occupancy Tax revenues by generating more conferences. The
cost of the program would be $80,000.
The Chamber proposal involves three areas: tourist management; marketing strategic plan; and economic development,
expansion, and retention. The cost of this proposal is $100,000 with the Chamber committing to raise $25,000.
The problem with funding these proposals is that, while they may prove to be a good investment, the Town would have
to cut some existing program or reserve in order to make the investment. Another approach would be for the Chamber
or the Ehlerts to do the work without the assurance of funding in exchange for a percentage of the revenue increase.
For example, any percentage over the current year's collection in Transient Occupancy Tax could be shared by the Town
and the contractor. This, of course, makes the assumption that the contractor's efforts generated the increase over the
current year.
Assuming these proposals are of value to Town businesses, it seems reasonable that these businesses would be willing
to share in their costs. The degree to which businesses are willing to share the cost will indicate their confidence in the
proposals.
ENVIRONMENTAL ASSESSMENTS:
Is not a project defined under CEQA, and no further action is required.
PREPARED BY: DAVID W. KNAPP
Town Manager
DWK:pm
MGR102 A:\CNCLRPTS 17-1.WP
Reviewed by: Atto�ance
Revised: 6/12/96 5:09 pm
Reformatted: 10/23/95
Profit Source
71 Broadway
Los Gatos, CA 95030
May 3, 1996
Mr. David Knapp
Town Manager
Town of Los Gatos
P.O. Bo:: 949
Los Gatos, CA 95031
Dear David:
We are submitting a preliminary marketing plan, budget and
support documents for your consideration for a Conference and
Visitors Bureau with the goal of being included in your proposed
operating budget as part of the economic development for the Town
of Los Gatos.
Profit Source, with the staff. of Katherine Fox Ehlert, CMP and
Gary Ehlert, brings over 30 years of experience in destination
marketing, hospitality marketing & operations, community
involvement, government liason and meeting and event planning.
We hope you and the Town of Los Gatos will go forward with this
revenue producing program and we will receive a favorable
response to our proposal.
We look forward to working with you in successfully promoting the
Town of Los Gatos.
Katherine Fox Ehlert, CMP
Gary Ehlert
Profit Source
ATTACHMENT I
PRELIMINARY MARKETING PLAN
May 3, 1996
MARKETS TO BE TARGETED
1. Utilizing the San Jose Convention & Visitors Bureau and the Santa Clara Convention and
Bureau Annual Convention Calendar, solicit scheduled convention contacts for pre and post
convention trips to Los Gatos. - weekend and midweek business potential
2. Solicit small corporate ( 100 ppl. or less) meetings and conferences from Sillicon Valley
High Tech Companies. - Management retreats for weekend business.
3. Solicit state and regional associations for quarterly board meetings (usually 20 - 50 ppl.) -
weekend business ie:
a. Antiques
b. Historical
c. Architectural
d. Arts
f. etcetera
4. Identify and solicit specific SMERF ( sports, military, educational, religious, and fraternal)
organi zations for weekend and holiday period business.
• a. Sports ie. bicycle groups, softball tournaments, tennis groups
b. Social ie. family reunions
c. Military ie. reunions
d. Educational ie. seminars, conclaves
e. Religious ie. retreats, marriage encounters
f . Fraternal ie. small regional meetings, Elks, Moose, Lions, Rotarians. Kiwanis etc
LOS GATOS MARKETING & PROMOTION BUDGET
ADMINISTRATION
Contract (Sales & Administration) $50,000
OPERATING EXPENSES
Telephone
Postage
Printing
Letterhead
Envelopes
Labels
Business Cards
Web Page Development
MEMBERSHIP/DUES
$3,600
$4,000
$1,000
$100
Total $8,700
Northern CA Meeting Planners Intl. $285
Northern CA Society of Association Execs. $135
California Society of Association Execs. $165
San Jose Convention & Visitors Bureau $331
San Francisco Convention & Visitors Bureau $1,000
Western Assoc. of CVB's $700
National Tour Association $1,000
American Bus Association $395
Total $ 4,011
MONTHLY MEETINGS
Northern CA Meeting Planners International
Northern CA Society of Association Executives
California Society of Association Executives
Total $1,064
TRAVEL (local & tradeshows) Total $7,200
(2)
BROCHURE DEVELOPMENT & PRINTING
Village Printers, Inc
Los Gatos, CA
10,000 4/4 8 1/2x 16flat
fold to 8 1/2 x 4 gatefold
Layout/Design/Separations
12 4color Pictures to be Provided (Quote)
Per 10,000 reorder $2,178
TRADESHOWS
American Bus Association 12/96 Portland
National Tour Associaton 6/96 Monterey
Western Conference of Association Execs.
Western Association of CVB's 11/96 Portland
San Jose Convis Expo 3/97
SFCVB Mayfair 5/97
Ca Society of Assoc Execs 12/96 Sacramento
N. CA Society of Assoc Execs 11/96 SF
N. CA Meeting Planners International
Total $4,000
$925
$975
$700
$700
$500
$400
$575
$500
$500
Total $5,075
TOTAL BUDGET $80,000
KATHERINE FOX EHLERT, CMP
71 Broadway
Los Gatos, CA 95030
(408) 354-9257
OBJECTIVE
Sales & Marketing, Public Relations, Advertising, Management
SUMMARY OF QUALIFICATIONS
Over 15 years experience in Sales, Marketing & Management.
* Sales, Marketing, Budgeting, Forecasting
* Budget Responsibility to $11 Million
* Develop and Establish New Accounts & Territories
* National Media Campaigns
* Design and Produce Advertising and Brochures
* Supervise and Train Personnel
* Operational Expertise in Hospitality Industry
* Tradeshow Production: New York, Chicago, San Francisco,
Boston, Los Angeles and Dallas
* Contract Negotiations
PROFESSIONAL HISTORY
Director of Client Services
Keynote Speakers, Inc. Palo Alto, CA.
Regional Sales Manager
Dream Inn(164 rms.), Santa Cruz, CA.
Sheraton Inn Central (225 rms.) San Diego, CA.
Director of Conventions
Sonoma County Convention & Visitors Bureau, Santa
Rosa, CA.
3/95 - CURRENT
1994 - 1995
1988 - 1992
Page 2
Director of Sales & Marketing
Red Lion Hotel (505 rms.), San Jose, CA.
Sheraton Hotel & Conference Center (327 rms.),
Concord, CA.
Sales Manager
1986 - 1988
1983 - 1986
Ramada Hotel Fishermans Wharf (231 rms.), San
Francisco, CA. 1982 -1983
Parker House Hotel (500 rms,), Boston, MA.
Director of Catering
Dunfey Hotel (270 rms.), San Mateo, CA.
Restaurant Manager
Hyatt Regency Hotel (943 rms.), Dallas, TX.
Owner/Manager
Barnyard Dinner Theatre, Carmel, CA.
PROFESSIONAL EDUCATION
1981 - 1982
1979 - 1981
1978 - 1979
1976 - 1978
Certified Meeting Professional - Convention Liaison Counsel,
Washington, D.C.; Travel Agent/Sabre Reservations Certificate - De
Anza College; Interpersonal Management Skills & Professional
Selling Skills II - Xerox Corporation
EDUCATION
California State University - Chico, CA.: Bachelor of Arts
Theatre Arts & Anthropology with Honors.
Gary W. Ehlert
71 Broadway
Los Gatos, CA 95030 USA
(408.354.9257 Phone) (408.395.6926 Fax)
22 Years Experience in Association Management
Executive Manager of a 501(c)(6), Tax Exempt, Trade Association Representing over 100
Contracting Firms in Silicon Valley and surrounding counties in Northern California (SMACNA-
Sheet Metal Air Conditioning Contractors National Association, Silicon Valley Chapter)
DUTIES INCLUDED:
* Extensive Lobbying At City, County, State And Federal Levels.
* Administrated Labor Relations And Human Resource Matters For Over 2,000 Workers.
* Established Community Leadership Position Through Outreach For Industry
Representation.
*Administration Of Association Offices With Over a $2 Million Dollar Budget.
*Created And Administered An Off Shore Workers Compensation Insurance Program For
Over 40 Contracting Firms With Premiums Exceeding $4 Million Annually.
* Administration & Production Of Meetings, Conferences, Conventions & Trade Shows.
SUMMARY OF QUALIFICATIONS
LEGISLATIVE
Extensive And Frequent interaction With Local, State & Federal Elected Officials And
Regulatory Agencies.
Aggressively Pursued Industry Needs On Associations State & National Legislative & PAC
Commiffees. Personally Produced Industry Legislation.
LABOR RELATIONS
Chief Spokesman In The Following Areas:
Contract Negotiations With Sheet Metal & Manufacturing Unions.
Arbitrator Of Over 100 Grievances Annually.
Trustee For Over 22 Years On Six, Taff -Hartley Trusts Affecting Over 6,000 Workers
Chairman/ Co -Chairman Of A $600 Million Pension Trust Fund For 9 Years
Created Health Care and Pension Trusts for over 2,000 Participants.
Created & Negotiated National Drug & Alcohol Program & Testing Procedures
Effecting Over 60,000 Workers In The Unionized Sheet Metal Industry.
Created Construction Loan Programs Using Union Fund Monies To Further
Employment In The Sheet Metal Industry.
Created Management Coverage in Union Sheet Metal Health Care Programs.
ASSOCIATION ADMINISTRATION
Budget Development And Implementation Of Over $2 Million Annually.
Produced Trade Shows With Over 80 Exhibitors Each Show.
Produced Out Of State Conventions With Over 200 Participants.
Produced Industry Media Information For Public Awareness And Safety.
Created A Series Of Annual Educational Programs For Association Managers.
Chief Liaison Representing Industry Practices With State And National Affiliates,
Architects, Engineers, Contractors, Professional Organizations, Municipalities,
State & Governmental Organizations.
Supervised Member Services, Travel, Meetings And Conferences.
COMMUNITY AFFILIATIONS- PAST AND PRESENT
San Jose Symphony(Board); Opera San Jose(Special Events); San Jose Shelter
Foundation (President- Coordination Of Goods And Services For Homeless Shelters);
Friends Of The Guadalupe River Park (President- Final Review Authority Along A 25 Mile
Corridor, Including Construction in Downtown San Jose); Outreach And Escort (Board -
Transportation For The Physically Disadvantaged); San Jose Hospital Foundation (Board/
Special Event Chair); California Trolley And Steam Engine Corporation (Board/ Special
Event Chair); San Jose Visitors And Convention Bureau (Board); San Jose Transportation
Task Force (Developed A Regional Transportation Plan For San Jose Through The Year
2010); And, San Jose Business Climate Task Force ( Streamlined The Construction Permit
And Planning Process).
PROFESSIONAL AFFILIATIONS
American Society Of Association Executives
Northern California Society Of Association Executives
Meeting Professionals International
AWARDS
Only Recipient Of The Northern California Society Of Association Executives
"Association Of Excellence Award" (June 1995).
Received Mayoral Proclamations (1975, 1982) For Community Leadership
Received County Board Of Supervisors Leadership Proclamation (1976)
Received CAL State Assembly Community Leadership Proclamation (1984)
Received CAL State Senate Rules Outstanding Citizen Proclamation (1989)
Received Emergency Housing Consortiums Special Community Award (1995)
First Local Manager to Chair a SMACNA (National) Task Force (1986)
First Local Manager to Chair a SMACNA (National) Committee (1987)
Only Manager to Receive a SMACNA (National) Committee Of The Year Award (1991)
First Manager to Receive a SMACNA (National) Legislative Excellence Award (1978)
SAc: RAMENTO ADDRESS
ROOM 5100
ST AT CAPITOL. 95814
AREA CODE (9161 445-9740
DISTRICT OFFICE
1O0 PASEO DE SAN ANTONIO. SUITE 209
•.AN J0'9 C A IP11:1
AREA CODE (408) 286-8318
STATE SENATOR
ALFRED E. ALQUIST
THIRTEENTH SENATORIAL DISTRICT
REPRESENTING
SANTA CLARA COUNTY
IN THE
December 18, 1995
To Whom It May Concern:
COMMITTEES
BUDGET AND FISCAL REVIEW
CI IAISMAN
APPROPRIATIONS
• CONSTITUTIONAL AMENDMENTS
ENERGY AND PUBLIC UTILITIES
GOVFRNMFNTAI. ORGANIZATION
',I NA I1 '•)II, I ((i1AM11 ILL ON
CALIFORNIA S WINE INDUSTRY
JOINT LEGISLATIVE
BUDGE T C' )MMITTEE
CHAIRMAN
This letter expresses my unequivocal recommendation of
Mr. Gary W. Ehlert both as an individual of outstanding character
and as a highly experienced and effective business leader.
It has been my pleasure to know Mr. Ehlert as a friend and a
respected community leader for over twenty years. In that time, I
have come to rely on his ability to marshal community support for
worthwhile public programs and to bring people of diverse cultural
and philosophical backgrounds together. Gary is an individual
people turn to when they need something done and done right.
Gary has twenty-two years of experience in association
management. This experience began when he was the General Manager
of Ehlert Sheet Metal, Inc. and culminated in his tenure as the
Executive Manager of the Santa Clara District of Sheet Metal, Air
Conditioning Contractors National Association (SMACNA) from 1973
forward. His effective administrative and legislative skills were
indispensable to SMACNA when dealing with public policy matters
affecting the industry at the local, state, and federal levels.
Gary's leadership is not relegated solely to the field of
business. He is an accomplished individual in the realm of
charitable and community -based organizations, too. He has served on
the Board of Directors of the San Jose Symphony, the San Jose
Shelter Foundation, the San Jose Visitors and Convention Bureau,
and the San Jose Hospital, just to name a few. People in the Santa
Clara Valley know that when Gary Ehlert's name is associated with a
project, it is a first-rate affair.
It is my hope that you will agree with my estimation of Gary
and his abilities, and that you will come to regard Gary Ehlert as
an asset to your organization.
Sincerely,
ALFRED E. ASnUIST
AEA:mv
05'13,'96 08:44 FAX 415 3625152
ECN MES
May 13, 1996
Mr. David Knapp, Town Manager
Town of Los Gatos
P.O. Box 949
Los Gatos, CA 95031
Dear Mr. Knapp:
As the former Executive Director of the Sonoma County Convention & Visitors Bureau, I
would like to highly recommend Katherine Fox Ehlert, CMP to direct the hosp;tality
marketing and promotion services for the Town of Los Gatos.
Ms. Ehlert served Sonoma County as Director of Conventions from 1988 to 1991,
aggressively marketing the area directly to corporations, associations and all group trave'
throughout California as well as the contiguous United States. Her efforts contributed
considerably to the occupancy of all our member hotels, inns and bed & breakfasts, as
shown by our increased transient occupancy taxes.
Her excellent work ethic, high energy and ability to produce results would be a valuable
asset to any town marketing program.
/Sine=rely,
�P • t Ross
Regional Manager
PR/dg
1A),44itiloS
(garden Iiiit
Home Away From Home
BUSINESS TRIPS
TRAINING
Full Apartments
Executive Suites
Near Fry's Electronics
Hwy17&Hwy 85
CNN & ESPN
Featuring 6 Dlnings
Within 100 Steps
Free Athletic Club
Aerobic Classes
Fax Service
Business Support
Direct Dial
Voice Mail System
RELOCATION
WEDDING PARTIES
GUESTS & VISITORS
Cozy Rooms
&
Kitchenettes
15 Minutes to Airport
Clean & Neat Rooms
With Air Purifiers
16-Channel Color Sony
Private Movie Players
HBO & Disney Movies
Free In -Room
Microwave & Retng
Beverage & Snacks
Quiet Garden Settings
WEEKEND GETAWAY
46 East Main Street
(Next Block to City Hall)
Los Gatos, CA. 95092
TEL: (408) 354-6448
V-M: (408) 354-6447
RES: (800) 888-8248
FAX: (408) 354-5911
April 25, 1996
Mr. Gary Ehlert
71 Broadway
Los Gatos, CA 95030
Dear Gary,
I support your idea and efforts to promote the hospitality business in
Los Gatos.
We have been here in Los Gatos since 1982. We like the town and
especially the people in Los Gatos. Los Gatos has much to offer to the
people who come to the South Bay Area, but it is still a hidden treasure
to most of the world.
A good example was the Soccer World -Cup event that took place
almost two years ago. Since then, Los Gatos has enjoyed economic
benefits from all the publicity stemmed from this event.
Los Gatos can use one fiill-service hotel of the size that can bring in
small conventions. Until this can be realized, hospitality business in
Los Gatos will remain in the shadow of San Jose and Santa Clara.
Another good example is our loss of Oakland Raiders' Summer
Training Camp to Napa Valley.
I have been in the hospitality industry for more than ten years, and 1 am
also a hospitality investment consultant. If it is the wish of the Town of
Los Gatos to look into hospitality developments, I will be happy to
contribute my efforts for the Town and our community.
Sincerely yours,
Tom Chang, URI, C}IA
We Are Closer To You Now
Than Ever Betoret
PROFIT SOURCE
A MANAGEMENT CONSULTING GROUP
April25, 1996
The Town of Los Gatos
Town Council
Town Manager
The undersigned properties greatly encourage the town to pursue a
Visitors and Convention marketing program to help increase our
occupancy. We would work with the Town to oversee this programs
direction and results. We also support the work that Profit Source has
done to bring this idea to your at en ion.
4Spn
Lodge at Villa Felice
_. „.ideply ..6:7, i g zji"..elf
Los . , Lodge Los Gatos net
&21.4.4_ i.4./..12
Toll house Village Inn
71 BROADWAY, LOS GATOS, CA.95030, USA 408.395.3036 408.395.6926FX
TOWN OF LOS GATOS
Economic Development Proposal
Presented by Town of Los Gatos Chamber of Commerce
Robin Tole, Chair
(408) 358-6753
May 15, 1996
MAY 15 1996
ATTACHMENT 2
Tourism Management: $30,000
As we know, many day and overnight visitors have already been attracted to the beauty of Los Gatos. At times,
downtown Los Gatos is at capacity for parking and sidewalk space. We intend to manage tourism by focus mar-
keting to encourage visitors during off-peak times and to market the other desirable shopping and eating areas
in Los Gatos.
Part I
Invite visitors through a tasteful brochure depicting the charm and elegance of the
Los Gatos community in its entirety. "Experience Los Gatos" brochure would be
available for distribution through local visitor destination spots, through the San Jose
International Airport Visitor Center, through the San Jose Metropolitan Chamber of
Commerce lobby and for specific targeted marketing.
Cost: Design and Print 20,000 brochures: $15,000
Part II
Targeted marketing to small businesses and organizations desiring an appropriate
setting for planning conferences. Market to the vital convention and tourist trade of
our surrounding areas to offer primary and overflow facilities. Continue servicing
visitor information calls and requests (approximately 300/month)
Cost: Management and Marketing: $15,000
Economic Development, Expansion, Retention: $40,000
Two Smart Teams made up from the public and private sectors will identify and work to attract mutually
beneficial business to Los Gatos. The team will work with existing business owners and managers to identify
obstacles to expansion, such as signage, parking, zoning and business permits. A major goal will be to work
and create an atmosphere encouraging local agencies to build collaborative projects to stimulate the local
economy through business retention and expansion efforts.
A set of criteria will be developed to determine the impact of this program on the Town of Los Gatos. This is a
critical aspect of the project and it is the responsibility of the program management to develop a tool to mea-
sure the return on investment.
Specific tactics will include:
Troubleshooting
Create a "911" for businesses (a single point of contact to be used to strengthen
individual business).
Red Flag Program
Develop a network of financial, supplier, service, real-estate and others who can
provide early warning of changes pending in business in general and in any one
specific business.
Advocacy
Address local and regional issues impacting the business community.
Cheerleader
Advance the benefits of Los Gatos for business investment and job creation.
Cost: Program development, management and consultants: $40,000
($15,000 form proposal, $25,000 from public/private money and
in -kind funding)
Town of fik
Los Gatos 111 Chamber of Commerce
An Affiliate of the San Jose Metropolitan Chamber of Commerce
An Affiliate of the San Jose Metropolitan Chamber of Commerce
BOARD OF DIRECTORS
Mr. Donald E. Callahan, CPA
Callahan, Pascuzzi & Co.
209 Highland Terrace
Los Gatos, CA 95030
309-3309
Ms. Margo A. Culcasi
San Jose National Bank
One N. Market Street
San Jose, CA 95113
947-7562
Mr. Jeffrey S. Froshman, CPA
Froshman & Billings
16615 Lark Avenue, #102
Los Gatos, CA 95030
358-8181
Ms. Sue Heller, M.S.
Partner In Fitness
35 Fillmer Avenue
Los Gatos, CA 95032
356-0101
Mr. Kurt Lemons
Upstream Flyfishing
54 N. Santa Cruz Avenue
Los Gatos, CA 95030
354-4935
Ms. Maureen McCarthy
Pacific Gas & Electric Company
10900 No. Blaney Avenue
Cupertino, CA 95014
725-2054
Mr. Kent Cooper
Cooper & Co.
718 University Avenue
Los Gatos, CA 95030
395-2771
Mr. Jon Fine
Santa Clara Land Title Co.
314 Los Gatos/Saratoga Road
Los Gatos, CA 95030
395-7077
Mr. Truman L. Gates
Community Hospital of Los Gatos
815 Pollard Road
Los Gatos, CA 95030
866-4002
Ms. Teri Hope
Los Gatos Coffee Roasting Cafe
101 W. Main Street
Los Gatos, CA 95030
354-1155
Ms. Betty Mannix
Bank of the West
308 N. Santa Cruz Avenue
Los Gatos, CA 95030
354-6161
Ms. Diane McNutt
McNutt & Company Inc.
27 Jackson Street
Los Gatos, CA 95032
354-1242
the
JLiousE
/O L, L HL
`HOTE L
MAY I J996
April 29, 1996
Mr. David Knapp
Town Manager
Town of Los Gatos
P. O. Box 949
Los Gatos. Ca. 95031
Dear David:
1 spoke with Gary Eh.lert last week in reference to the proposal that he and his wife made to
the Town Council recently. Gary said that the council had referred this to your office for review.
We support the concept to establish a "Visitors Bureau" which will handle all of the marketing
and promotion of Los Gatos including the new brochure that we have discussed. The funding of
this program could be from the Transient Occupancy Tax ("TOT"). There is a great potential to
increase the business in the Los Gatos Hotels, expecially on the week -ends and the increased
"TOT" revenue would probally pay most of the expense.
Please contact me if you have any questions.
Sincerely,
‚/4
Dan Ponder
General Manager
c Gary Ehlert
ATTACHMENT 3
140 S. Santa Cruz Ave. • Los Gatos, CA 95030 • (408) 395-7070 • FAX (408) 395-3730