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HomeMy WebLinkAboutS26 - Survey of Potential Water Taxi PatronsAgenda Item No. S26 April 27, 2010 April 27, 2010 meeting TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Summer Water Taxi Exploratory Committee Michael McNamara, Chairman SUBJECT: SUMMER 2010 SURVEY OF POTENTIAL WATER TAXI PATRONS. ISSUE: Should the City Council consider appropriating up to $12,500 toward a professional consultant to conduct a summertime survey of potential water taxi patrons if the Water Taxi Committee is able to raise $12,500 or more as a matching challenge grant as part of a Public Private project expected to cost $25,000? RECOMMENDATION: The City Council authorize the expenditure of up to $12,500 for the Water Taxi Committee to contract with a professional marketing person or firm to conduct and coordinate the summer 2010 survey of potential water taxi patrons at an expected cost of approximately $25,000 upon the condition that the Committee is able to match the council's funds with contributions from non city sources of $12,500. Backeround At your meeting of February 9, 2010 the City Council voted to defer distribution of an RFP for the 2010 summer season water taxi and to allow the Committee to work with interested parties to structure and find subsidized funding to conduct a survey in summer 2010 for possible distribution of an RFP in time for the summer 2011 season. The committee and staff have contacted sources for alternative opportunities to conduct a survey at "lower cost" or "no cost. These included piggy backing a few questions on the City's proposed services survey or the "Visit Newport Beach" survey. It also included student run programs from Cal State Fullerton and the University of California, Irvine. All of these options alone had some problems. The school programs were primarily scheduled to begin in September and finish in December. These surveys would completely miss the summer tourists of July and August that appeared to be the prime months for a water taxi and clearly a major target for our survey. The piggy backing on the City's survey or the Visit Newport Beach survey presented their own problems. With each of these surveys we would be limited to two or three questions thus negating our ability to understand the support and demand information from the survey. Although these no cost alternatives would not work as stand alone surveys, they might be helpful if combined and coordinated with a professional survey. We also had a presentation by a professional market researcher with a background in the Marina Del Rey Water Taxi survey and the 2007 Newport Convention and Visitors survey of tourists. She discussed the nuances of the survey process and what was required to obtain statistically valid results. Those who heard the presentation were convinced we needed a professional marketing person to conduct an intercept study combined with a more conventional survey to obtain the kind of information needed to measure the support and demand for a water taxi service. In addition her ability to coordinate with the piggy back surveys would enhance the usefulness of the entire survey process. Therefore our action on April 14, 2010 was to vote unanimously to offer a challenge to the City Council in the tradition of a public/ private undertaking to raise $12,500 of the projected cost if the Council will do likewise. We view the potential economic impact of a viable water taxi system on Newport Beach Harbor businesses to be substantial. We believe the multiplier effect of $12,500 (yours and ours) would almost certainly be positive. On behalf of the Water taxi Committee I ask that you consider our challenge as soon as possible to allow us to retain a consultant and conduct a summer 2010 survey. The formal action of our committee is shown below. John Robinson made a motion that the Committee request a matching "Challenge Grant" from the City Council for an amount up to $12,500 if the Committee is successful in raising $12,500 or more from private donors for the purpose of employing a professional firm to create, administer, and analyze a demand and use survey. John Corrough seconded the motion, and it was approved unanimously by the Committee. Discussion of the motion included the Committee's submittal of the request in the form of a letter to City Council. The letter should include information on the potential economic multiplier effect of a public water taxi service and be presented in time for hearing of budget requests. Sincerely, Michael McNamara Chairman Summer Water Taxi Exploratory Committee