Previous responses to this agenda item included below, January 2021:
Consider approval of Resolution 2020-267R, approving a renewal of the agreement with the San Marcos Area Chamber of Commerce in the estimated annual amount of $28,760; authorizing the City Manager or his designee to execute the agreement on behalf of the City; and declaring an effective date.
Questions from Mayor Hughson
Exhibit B is totally confusing. I see an original amount of $26,100.00, which I don't know the reference point because according to the PPT, at the Chamber, we were spending $28,764 (2,397 * 12). Please confirm if this is the current amount or not.
According to the PPT we were spending $20,500 prior to moving to the Chamber building.
What were we getting for $26,100 in Exhibit B - and were we ever paying that amount?
Previous Increase- What is that $24,000.00 for? Why is it an increase? And why is it shown as "previous?" - Previous to what?
This Increase in Contract Amount - what is that $28,760.00 for?
And the total of $78,860?
Exhibit B ‘Authorization of Change in Service” - is the Contract change form – we are using the same contract number 219-038, therefore, a contract change form is necessary.
Original contract Amount: $26,100 – is the
FY2019 ‘Contracted services for the CVB’
Previous Increases in Contract Amount: $24,000 – is the
FY2020 ‘Contracted services for the CVB’
This Increase in Contract Amount: $28.760 – is
FY2021 request
$24,000 = $2,000 monthly fee for contracted services
$2,100 = $175 average annual monthly postage of bulk mailings (CVB staff use the Chamber postage machine to process and personally deliver that day to the post office.
FY2020 did not include the $2,100 since there were still funds available in the contract for use in FY2020.
FY2017 – MOU with Chamber - $24,000 annual total ($2,000 monthly fee for contracted services)
FY2018 – MOU with Chamber - $24,000 annual total ($2,000 monthly fee for contracted services)
What have we been paying per year since 2016 - amount? $20,500 (or less to start, ending with $20,500?) This can be yes or no. If yes, no details are needed.
Main Street Annual building and parking expenses (317 N. LBJ Drive)
August 1, 2017 – July 31, 2018 $19,900 (monthly lease of $1,300 per month plus parking, etc.)
August 1, 2018 – July 31, 2019 $19,900 (monthly lease of $1,300 per month plus parking, etc.)
August 1, 2019 – July 31, 2020 $20,500 (monthly lease of $1,350 per month plus parking, etc.)
CVB hasn't moved - they've been in the tourist center for years. It was MAIN ST that moved. This should be in the presentation for the March 2020 line. Or is there something I don't know yet? The SERVICES are for the CVB.
Correct, Main Street staff began looking for a new location due to the expiration of the lease (July 31, 2020)
On the Costs slide, I see $10,847 + $23,673 + $5,760 which equals $40,280. They aren't charging us for parking, so $10,847 + $23,673 = $34,520. And where is the storage space listed? Or is that an additional charge that isn't shown here?
- Although parking is included in the overall cost, $5,760 was calculated for parking of eight spaces at $60 per month. The $5760 is deducted from the $34,520 = $28,760
- Additional storage (non-Office space) is included in the shared space.
- PLUS, there are apples and oranges here. There is the FACILITY charge, where Main St moved from retail space to the Chamber. And Eco Dev moved from City Hall to the Chamber. The SERVICES are a different item and those cannot be charged by the square foot. Yes, for kitchen, lobby, etc. and storage, No, for administrative services, which I know the Chamber provides. So what is the fee for administrative services? Those are valuable and we need to pay for that. Have we been paying them? What amount?
- The cost of administrative services is included in the shared building costs. Chamber receptionist serves all staff members in the building.
- Main Street was using the same office space prior to Scott’s inclusion. Main Street shuffled staff – two members share one office space instead of having individual office space.
- In previous years, the total amount of tourism promotional services, administrative services, building use and storage space totaled to $2000 per month. The chamber continued to serve as a visitor center distributing the CVB promotional materials and brochures for all attractions including non-chamber members.
The total of the Costs page is $34,500, yet the last line states $28,760 is the annual cost and that is what is on the ARF.
- Chamber understands the Council concerns, therefore, researched current comparable downtown lease space available. Recalculated the cost per square foot using four downtown spaces currently available $23, $22, $18 and $20.28 = Average $20.82 (two of the four properties included triple net added costs and Do Not include utilities, property expenses or building services).
- Rate used in the first presentation was $21.71 sf/yr.
The attached workbook would have been so helpful...need to know a, b, and c costs. – See attachment response.
| Cost to City | FY19 | FY20 | FY21 |
| Main St offices (3) | $ 15,600.00 | $ 16,200.00 | $ 7,849.00 |
| Eco Dev Mgr (1) | city facility | city facility | $ 2,998.00 |
| Main St shared space (Kitchen, lobby, restrooms, etc.) | | | $ 17,134.00 |
| Eco Dev Mgr shared space (Kitchen, lobby, restrooms, etc.) | | | $ 6,539.00 |
| Storage | $ 1,800.00 | $ 1,800.00 | included in overall cost |
| Parking | $ 2,500.00 | $ 2,500.00 | included in overall cost |
| CVB Admin/Building/Promo/Storage | $ 24,000.00 | $ 24,000.00 | included in overall cost |
| Bulk postage costs | $ 2,100.00 | funds available from FY 19 | Not included in contract |
| Shared Admin Services | | | included in overall cost |
| TOTALs | $ 46,000.00 | $ 44,500.00 | $ 34,520.00 |
| Deduct parking | | | $ (5,760.00) |
| | | $ 28,760.00 |
What was the reasoning for the increase from the amount we were provided when Main St and Eco Dev moved in originally, - office and storage space - to the amount originally proposed when this appeared on our agenda a month or so ago?
- The original July memo: $24,000 of CVB Funds (continuing the current contract) plus $12,000 of Main Street funds for a total of $36,000. (This amount did not include the $2,100 of estimated postage.
- Since CVB had the larger budget, the Chamber would continue to offer administrative services to the CVB and by serving at a Tourist Information Center by providing CVB promotional materials and all attraction brochures.
- $24,000 CVB – HOT funds; $12,000 Main Street – general funds
- Your concern of using more HOT funds is appreciated; staff has been directed to seek general funds dollars to pay for the ED portion of rent for FY22 should ED staff not relocate to possible reshuffling of office space after the completion of the Public Services complex.
Is there anything we are paying for, to anyone else, for space or services that would be related to the day-to-day operations? Not the web services, advertising or anything else. Just office space, storage space, shared space, and/or daily services.
- For Main Street or CVB: No, there are no additional expenses.
Main St move to Chamber of Commerce costs.xlsx
