Customer Advisory Council

Customer Advisory Council

January 31 – February 1, 2008

San Francisco Customer Advisory Council – Meeting Minutes – February 2008– Confidential

Council Members (in attendance)

Trina ArmstrongAmerican Society for Cell Biology

Linda BaysariCaliforniaBuildingIndustry Association

Christine CastleCisco Systems

Nancy ElderAmerican Society for Microbiology

Cele FogartySmithBucklin

Jack FritzAmerican College of Emergency Physicians

Roger FurnessAudio Engineering Society

Sandra LaPedisRSA Security

Jodi MorrisonOracle Corporation

Cathy NashAmerican Psychiatric Association

Chris NemchekNational Association for Specialty Food Trade

Janet SkorepaAmerican Urological Association

Nancy ToddAmerican Chemical Society

Johnnie WhiteCardiovascular Research Foundation

Council Members (unable to attend)

Katie FergusonAmericanAcademy of Allergy, Asthma & Immunology

Gia GarunchioSemiconductor Equipment and Materials International

Kathy KellettApple

Julie McGrathThe Endocrine Society

Bobbie TurnerAmerican College of Physicians

Jason WareAmerican Heart Association

Chris WehkingAmerican Society of Plastic Surgeons

Local Partners (in attendance)

Joe D’Alessandro San Francisco CVB

Leonard HoopsSan Francisco CVB

Scott BaublitzHilton San Francisco

Michael DunneHilton San Francisco

Murat Eskicioglu Moscone Center

Kathryn Horton San Francisco CVB

Tamra HowesSan Francisco Marriott

Dan KelleherSan Francisco Marriott

Melody LendaroMoscone Center

Lysa LewinSan Francisco CVB

Deidre LewisSan Francisco CVB

Herb MyersWells Fargo Bank

Kenley MoySan Francisco CVB

David NadelmanGrand Hyatt San Francisco

John NoguchiCity & County of San Francisco

Leonie PatrickSan Francisco CVB

Wendy RamirezSan Francisco CVB

Bob SauterMoscone Center

Dick ShaffMosconeCenter

Kuldip SinghKimpton Hotels

Roxy StoneGrand Hyatt San Francisco

Guest Speakers

Abby AustinUnited Airlines

Patricia BreslinHotel Council of San Francisco

Vicki Hennessy City of San Francisco Division of Emergency Services

Heather HoellYerba Buena Alliance

Captain Dan

McDonaghSan Francisco Police Department

Facilitator

David KlimanThe Kliman Group

San Francisco Customer Advisory Council – Meeting Minutes – February 2008– Confidential

SAN FRANCISCO CUSTOMER ADVISORY COUNCIL

MEETING MINUTES

January 31 - February 1, 2008

Confidential

Thursday, January 31, 2008

Council members and San Francisco hosts made introductions.

President’s Comments – Joe D’Alessandro

Joe welcomed the Council and asked them to speak honestly and openly on behalf of the meetings and convention industry as well as their respective organizations.

Hotel occupancy & average daily rate summary provided by PKF Consulting

200020022004200520062007 Forecast

81%64%73%76%78%80%

$175 $130$145$157$167$183

2007 was a very good year defined by healthy growth in both occupancy and demand. The forecast for group and leisure business for 2008 is strong.

The InterContinental Hotel will open in early March 2008; many other hotels are undergoing significant renovations and product improvements.

Construction of the Central Subway line running on a North South axis through San Francisco will complement existing BART and MUNI lines. Stops will include ATT Park, Moscone Center, Union Square, Chinatown and North Beach. There will be limited surface street disruption due to the use of new boring machinery. The system is expected to open in 2013.

The City’s streetscapes are improving; Community Benefit Districts (CBD) are helping fuel these changes. The CBDs are funded by property owners’ self assessment and offer cleaning and security services. The entire downtown area will see the impact of CBD’s work in the next 2 years; significant changes are already apparent in many areas including Union Square. Heather Hoell will talk in more depth later today regarding the CBD in development for Yerba Buena Gardens.

A Community Court system will go into effect in Summer 2008 which will have a positive impact on quality of life street issues; Joe called this another step in the right direction for improving visitors’ and residents’ experience in San Francisco.

Table Talk – Customer Advisory Council

Council members were asked to discuss key issues within their organizations; the following outlines those issues:

Christine Castle – Cisco Systems

While the high tech sector continues to boom economically, the overall national economic downturn is creating some doubt within Cisco regarding the wisdom of some meeting expenditures. Typically, meetings are booked with short term notice, but marketplace doubts are making it harder to make even some short term commitments. Developing and maintaining strong destination partnerships is a struggle in some cities.

Jack Fritz - American College of Emergency Physicians

Government grants have generatednew training and education meetings; content drives meetings and conventions. “Diversion” of ambulances is a key issue for the association (emergency patients being involuntarily redirected)

Janet Skorepa - American Urological Association

An aging population fuels demand for specialty medical professionals. International attendees make up 50% of annual meeting attendees creating need for outreach programs and products for non U.S. attendees and members. U.S. entry visa problems are widespread and time consuming for association staff and visitors.

Cathy Nash - American Psychiatric Association

Association has 38,000 members; coming to San Francisco in 2009, 2013 and then every 4 years thereafter. San Francisco is “easy to work with” and increases attendance by several thousand people. Less sponsorship from Pharma companies results in less supported events and less exhibitors. Finding alternative revenue sources is a key issue. Non US members make up 50% of attendees; Cathy works with the State Department to help smooth the visa application process; her contact’s information is found in the recommendations and action items report at the end of these minutes.

Nancy Elder - American Society for Microbiology

Association membership is comprised of researchers and medical doctors; membership experiencing flat growth. Nancy and her 20 person multi- generational team manage 2 annual meetings attracting about 13,000 attendees each. The Fall meeting is 90% non members and focuseson marketing to, and providing value to younger attendees; repacking sessions generate post meeting revenues stream. ASM is using “Base Camp” software to communicate with suppliers. Current key issues include producing first meeting in China, attracting volunteers, developing streamlined educational tracks and co-location of Fall 2008 meeting with Infectious Diseases Association.

Chris Nemcheck - National Association for the Specialty Food Trade

Specialty foods (defined as not mass produced foods) are experiencing “tremendous growth” in public awareness and expenditures; $37 billion in US consumption in 2007. Association has no direct competition, but there are many smaller shows (seafood, kosher, organic etc.). Key issues include making the shows more relevant, finding new ways to network and connect attendees, developing ways to bring members closer to consumers. Shows have aggressive growth goals, attendees from 73 countries exhibit at the New York show. Physical deteriorization of Javits Center has caused the show to seek alternative venues.

Cele Fogarty – SmithBucklin

SmithBucklin represents more than 200 clients. Key issues include meeting clients’ demand for strategic initiatives, best practices, revenue diversification and finding destinations which offer value. Strong demand for “more for less”; second tier cities are increasingly attractive;cities like NY have become out of reach due to high cost. Partnership with MCI Group offers increased global services. SmithBucklin has created an Innovation Center to develop new products which integratewith customers’ long term business goals. New SmithBucklin research reports can be found on

Roger Furness – Audio Engineering Society

Virtual meetings are attracting younger members; however, face to face events remain important. Key issues include creating memorable event and providing easy access to best practices in an affordable manner. Seeing a decrease in exhibitors due to digitalization, many big name recording studios are no longer in business. Younger members are especially cost conscious.

Johnnie White – Cardiovascular Research Foundation

Biggest issue is documenting proper use of funds; experiencing more audits due to regulatory environment; also seeing a general slowdown with sponsors taking a “cautionary” approach to funding. 42% of attendees at annual meeting come from Asia/Pacific and India. Producing more online conferences beaming direct feeds of medical procedures; finding HD equipment is sometimes a challenge. There is an overall strong focus on education; first time production of meeting in India.

Linda Baysari – California Building Industry Association

Abnormal contracting in the housing market is major challenge; 50% less housing starts in 2007. Second tier areas are still in a “freefall”; first tier areas have hit “rock bottom”. Forecasting hotel and convention center requirements in this market is also a challenge. Find ways to use educational content to attract attendees is a key focus as is hiring people to generate educational content.

Trina Armstrong – American Society for Cell Biology

Her group is rate conscious and seeks “walkable” cities for her annual meeting which attracts 10,000 attendees and uses 3,000 rooms on peak night. Limited NIH funding has decreased attendance, however more student members are joining. Sponsorship participation is down. Strong focus on improving annual meeting’s educational content and style to ensure meeting remains compelling for attendees. Younger demographic profile demands new learning approaches. While exhibitor base remains stable, getting traffic from poster sessions to the trade show floor is problematic. U.S. visa application process remains a problem for many international attendees. Effective partnership between a CVB and Convention Center is critical to the successful outcome of a major meeting. Sees exhibitors hoarding rooms and releasing them at the last minute; impacts attrition. Attracting leadership and committee volunteers has become harder. Environmental sustainability leadership has become a mandatory component of meetings’ logistical and communications protocol. Now producing smaller international meetings every 2 years; 2009 in Kyoto is next.

Sandra LePedis - RSA Security

Online communities offer great growth potential.Organization is also experiencing strong overall growth, 2007 meeting grew 20% over 2006; 2008 meeting is tracking 30% growth. Moved their Annual meeting to April from February. Economy impacts all aspects of the organization. Annual meeting is open to entire industry including competitors; RSA is a non member organization. Strong focus on educating exhibitors; all sessions are recorded and packaged for post-event sale.

Nancy Todd – American Chemical Society

Focus on growth, training and retention. Upcoming annual meeting in New Orleans is co-locating first time. Some Board members are unsure of New Orleans readiness to host the meeting; meetings team is 100% confident of the city’s readiness to host the meeting.

Environmental sustainability has been instutionalized as a normal course of action for all meetings.

Action Items - Report of Progress since August 2007 meeting – David Kliman

ACTION ITEMS AND RECOMMENDATIONS FROM AUGUST 2007

Action since August 2007 shown in bold italic print

Develop Post Event Economic Impact Reports similar to those produced by San Diego – Modified report is under development
Develop and distribute inventory of San Francisco’s Green Meeting Best Practices – Green website will be online in early 2008; will include meeting and civic sustainability information
Invite Martha Cohen; Mayors Office of Economic Development to future Council meetings – Joe and John to provide update during the February 2008 meeting
Engage Crisis and Emergency Preparedness Subcommittee: members: Trina Armstrong, Linda Baysari, Sandra Toms LaPedis and Nancy Todd in the development of a Citywide plan to address crisis situations – SFCVB met with City Emergency Planning officers in October 2007 regarding initial steps; and committee will be engaged once more progress is made. Laura Phillips to address the Council in February 2008 meeting
Create a universal transit pass similar to the product offered in Munich - Translink Pass under development; expected roll out in mid 2008
Moscone security videotapes should be held longer than 7 days to enhance security reviews –Moscone security video tapes are held for a minimum of 28 days
BAGS needs to improve communication standards to ensure clients receive information well before their show; not the week prior – BAGS will be in contact with clients well in advance of their event; Event Managers will also monitor communications between BAGS and clients.
Dick Shaff to follow up regarding Moscone’s paging systems to ensure it is fully functional in all areas of the Center –The paging system is fully functional in all areas of the facilities.
Recommend replacing Moscone’s outdoor marquis with flat surfaces which can be themed with customized banners – New enclosures to cover the ‘over the door’ marquees at Moscone North and South have been ordered and will be installed in March 2008. They are the same design as the marquees at Moscone West.
Do a more effective job in communicating changes in Moscone’s fees, rules and procedures Recommend distributing a well laid out, easy to read quarterly customer newsletter highlighting key changes, developments, contract and permit issues etc. All changes in policies or procedures will be communicated well in advance with all clients.
Keep Council advised regarding the development of large venues such as Cruise Ship terminal suitable for networking events – Ongoing communication with the Council
Copy Alumni members of the Advisory Council on meeting minutes and other important updates - Ongoing
Survey Council regarding possibility of next meeting taking place in Seattle on Wednesday, January 16, 2008 immediately following PCMA Annual meeting; Council members who don’t normally attend PCMA would be provided airline tickets etc. as required. After feedback from the Council, this idea has been shelved; the next meeting dates are January 30 to February 1, 2008 in San Francisco.

Hotel Council of San Francisco – Patricia Breslin

The Hotel Council of San Francisco is a non-profit organization, representing all segments of the City's lodging industry. An industry representative Board of Directors governs the Hotel Council. It represents the interests of more than 65 member hotels in San Francisco on a variety of government and public affairs issues. The Council believes strongly in the importance of educating the public and increasing awareness about the hospitality industry which is the largest industry and the second largest employer in San Francisco.

The Hotel Council is committed to involving its members in community initiatives and philanthropic efforts. In addition, it organizes philanthropic events that support scholarships for hospitality management students attending Bay Area colleges and universities.

United Airlines – Abby Austin

Abby is responsible for North American meetings and convention market. offers products and services for organizations and meeting attendees. New flat seat international business class and redesigned first class products are being rolled out on United’s wide bodied fleet, completion by year end 2009. Star Alliance serves 860 airports worldwide. United is offering many new nonstop flights to SFO from Asia. Lost baggage is down 40% in 2007.

Moscone Center – John Noguchi and Dick Shaff

John reviewed capital improvement plans (provided as an Excel attachment to these minutes)and outlined budget planning process; final 2008 – 2009 fiscal year budget will be approved in late May. John expressed cautious optimism regarding potential for implementation of capital improvements as recommended by the Council.

Hot water is now available in all bathrooms. There are temporary problems with hot water in the East Mezzanine and South East Foyer lobby water mixing values which will be correctedvery soon.

BAGS offers a new service which allows clients to pre-enroll using an assigned password; this will significantly reduce check-in time.

Free Wi-Fi will be offered in all Moscone public spaces beginning in April 2008. Service will provide 256kbandwidth up and down and will support 100 concurrent users by area. Areas are: North Upper lobby, South Upper lobby, West all three lobbies, North Lower lobby, South Lower Lobby and Concourse area.

Digital display report was reviewed; the Council was asked to provide feedback via email to David Kliman.

All disposal service wear used at Moscone is now bio-degradable. The challenge is to effectively communicate to end users how to use proper recycle containers.

Options are being developed to address providing drinking water in all meeting rooms; plastic containers are now banned within the City of San Francisco.

SMG’s contract to manage Moscone Center expires in 2009 and the Council was asked to provide feedback regarding recommendation regarding how the contract process should be managed. The Council stressed its extremely strong satisfaction with SMG’s performance (“SMG is fantastic” stated one member) and feels continuity of SMG as the Moscone management and service provider is very valuable. The Council recommended that a due diligence process be undertaken to validate the competitive marketplace. Council underscored its concerns regarding the urgent need to replace airwalls, HVAC and other systems at Moscone Center. The Council expressed its understanding these maintenance needs arefunded by the City, not SMG.

Moscone Potential Expansion – Dan Kelleher

The key expansion issue regarding Moscone Center is the need for contiguous space. The current plan is to open up the space between North and South Halls. This could provide between 500,000 to 550,000 square feet of contiguous space depending on the design. The space displaced would be rebuilt on top of the Esplanade Ballroom along with additional meeting space. The Council agreed the proposal has strong merit and should be pursued.

Yerba Buena Alliance – Heather Hoell

The Alliance 11 hotels, 12 galleries, 11 museums and numerous other assets such as Westfield Shopping Center and a 5.5 acre garden. A new Community Benefit District (CBD) is under development which will enhance the area by providing additional safety and security, cleaning, greening and branding activities.