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HomeMy WebLinkAbout05-06-2014 C4 Marketing Services Contract for TBIDCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Michael Codron, Assistant City Manager Prepared By: Lee Johnson, Economic Development Manager Molly Cano, Tourism Manager SUBJECT: MARKETING SERVICES CONTRACT FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1. As recommended by the Tourism Business Improvement District (TBID) Board, award the contract (Specification No. 91275) for tourism marketing services to BCA/StudioGood. 2. Authorize the Mayor to sign the contract. DISCUSSION Background On December 10, 2013, Council approved the release of a Request for Proposal (RFP) for marketing services as recommended by the TBID Board. The RFP asked the submitting bidders to consider the following components: 1. Establishment of a City of San Luis Obispo Tourism Marketing Plan 2. Execution of the Marketing Plan The deadline for submittals was set for January 31, 2014 and 8 proposals were received. The RFP further defined the schedule for review, finalist interviews and evaluation of the agencies to be completed by March 12, 2014. Evaluation Process and Finalist Presentations The TBID Board reviewed the initial submissions from the applicants between February 1 and February 10. Each board member individually ranked the proposals. These rankings were compared and discussed at the February 12 regular meeting (Attachment 3- February 12 Board Meeting minutes). The TBID Board decided to invite the top 5 candidates to present to the Board during the week of March 3. At the conclusion of the final presentation on March 6, the TBID Board discussed the presentations and narrowed the selection down to two companies Verdin Marketing and BCA/StudioGood (Attachment 4- March 6 Special Meeting minutes- Draft). The top two companies were invited back to present to the TBID Board on March 11. Each company presented to the Board and then addressed specific comments and questions from the Board members. In addition to the TBID Board’s evaluation of the respondent agencies, the submitted information had been made available to all hoteliers throughout the process. 05/06/14 C4 C4 - 1 TBID Marketing Services Contract Page 2 Recommended Proposal After the deliberation and input from those present at the meeting the Board voted unanimously to recommend BCA/StudioGood as the marketing firm for the TBID until June 2016 (Attachment 5- March 11 Special Meeting minutes- Draft). The Board reaffirmed its original decision at the April 9 Board meeting after reviewing the memorandum of agreement between BCA and StudioGood (Attachment 6- April 9 Board Meeting minutes- Draft). BCA and StudioGood are both local companies that have combined their unique skill sets to best serve the TBID. Proposed Agreement The proposed agreement (Attachment 1- Agreement) assigns the establishment of a City of San Luis Obispo tourism marketing plan and the execution of the marketing plan. The agreement covers the period from July 1, 2014 through June 30, 2016. The agreement can be extended twice for an additional two years. The agreement as also modified slightly from the original agreement to include updated language regarding termination. The new language is highlighted in the agreement. FISCAL IMPACT Since the inception of the TBID, the marketing services contract has accounted for 50% or more the overall TBID program budget. In FY 2014-15, if approved, the contract is for $650,000 which is 55% of the projected TBID budget for that year. Based on the 2013-15 Financial Plan, the TBID budget is projected at $1,181,100 resulting in $531,100 for all other TBID investments during the 2014-15 fiscal year. In FY 2015-16, if approved, the contract is for $700,000 which is 56% of the projected budget for that year. Based on the 2013-18 Five-Year Fiscal Forecast, the TBID budget is projected at $1,245,000 or 20% of the projected TOT. ALTERNATIVES The Council could decide not to award the contract. This is not recommended as the TBID Board has conducted a very thorough evaluation of the potential firms. ATTACHMENTS 1. Agreement with BCA/StudioGood 2. Exhibit A- General terms and conditions 3. TBID February 12 Board Meeting minutes 4. TBID March 6 Special Meeting minutes- Draft 5. TBID March 11 Special Meeting minutes- Draft 6. TBID April 9 Board Meeting minutes- Draft 7. Council Agenda report for the Marketing Services RFP December 10, 2013 8. Marketing Services Request for Proposal AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE A copy of the BCA/StudioGood materials are available in the Council reading file. T:\COUNCIL AGENDA REPORTS\2014\2014-05-06\MARKETING SERVICES CONTRACT FOR TBID (CODRON-CANO)\CAR- MARKETING SERVICES CONTRACT FOR TBID.DOCX C4 - 2 Attachment 1 1 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and BCA/StudioGood , hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, on December 16, 2013 City requested proposals for Marketing services for the City of San Luis Obispo lodging industry per Specification No. 91275; WHEREAS, pursuant to said request, Contractor submitted a proposal which was accepted by City for said services; NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date of this Agreement is made and entered, as first written above, until June 30, 2016. By mutual agreement of both parties, the term of this Agreement may be extended twice for an additional two years. 2. INCORPORATION BY REFERENCE. City Specification No. 91275 and Contractor's proposal dated January 31, 2014 are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefore compensation in a total sum not to exceed $650,000 for 2014-15 and $700,000 for 2015- 16. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as described in Exhibit A attached hereto and incorporated into this Agreement. 5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City. C4 - 3 Attachment 1 2 6. TERMINATION. If, at any time during the term of the contract, the City determines that the project is not feasible due to funding shortages or unforeseen circumstances, the City reserves the right to terminate the contract. Consultant will be paid compensation due and payable to the date of termination. 7. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 8. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Contractor [ ] [ ] [ ] [ ] 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: City Clerk Jan Howell Marx, Mayor APPROVED AS TO FORM: CONTRACTOR By: City Attorney C4 - 4 City of San Luis Obispo – General Terms and Conditions Attachment 2 - Exhibit A 1 1. Business Tax. The Consultant must have a valid City of San Luis Obispo business tax certificate before execution of the contract. Additional information regarding the City's business tax program may be obtained by calling (805) 781-7134. 2. Ability to Perform. The Consultant warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 3. Laws to be Observed. The Consultant shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 4. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Consultant is required to pay. 5. Permits and Licenses. The Consultant shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 6. Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 7. Public and Employee Safety. Whenever the Consultant's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 8. Preservation of City Property. The Consultant shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Consultant's operations, it shall be replaced or restored at the Consultant's expense. The facilities shall be replaced or restored to a condition as good as when the Consultant began work. 9. Immigration Act of 1986. The Consultant warrants on behalf of itself and all sub-consultants engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 10. Consultant Non-Discrimination. In the performance of this work, the Consultant agrees that it will not engage in, nor permit such sub- consultants as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 11. Work Delays. Should the Consultant be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Consultant. C4 - 5 City of San Luis Obispo – General Terms and Conditions Attachment 2 - Exhibit A 2 12. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Consultant (Net 30). 13. Inspection. The Consultant shall furnish City with every reasonable opportunity for City to ascertain that the services of the Consultant are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Consultant of any of its obligations to fulfill its contract requirements. 14. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Consultant in preparing its invoices to City as a condition precedent to any payment to Consultant. 15. Interests of Consultant. The Consultant covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Consultant further covenants that, in the performance of this work, no sub-consultant or person having such an interest shall be employed. The Consultant certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Consultant shall at all times be deemed an independent Consultant and not an agent or employee of the City. 16. Indemnification for Professional Liability. To the fullest extent permitted by law, the Consultant shall indemnify, protect, defend and hold harmless the City and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all losses, liabilities, damages, costs and expenses, including attorney’s fees and cost which arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 17. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 18. Termination. If, during the term of the contract, the City determines that the Consultant is not faithfully abiding by any term or condition contained herein, the City may notify the Consultant in writing of such defect or failure to perform. This notice must give the Consultant a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Consultant has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Consultant to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Consultant's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Consultant shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Consultant as may be set forth in the Proposal; compensation for any other work, services or goods performed or provided by the Consultant shall C4 - 6 City of San Luis Obispo – General Terms and Conditions Attachment 2 - Exhibit A 3 be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in excess of the compensation quoted in its proposal. 19. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Consultant as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 20. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Consultant as part of the work or services under these specifications shall be the property of City and shall not be made available to any individual or organization by the Consultant without the prior written approval of the City. 21. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Consultant is required to furnish in limited quantities as part of the work or services under these specifications, the Consultant shall provide such additional copies as are requested, and City shall compensate the Consultant for the costs of duplicating of such copies at the Consultant's direct expense. 22. Required Deliverable Products. The Consultant will be required to provide: 2 hard copies of the draft or electronic copy (Adobe Acrobat format) 2 hard copies of the final project report, and 1 electronic copy (Acrobat Adobe format) of the final report. City staff will review any documents or materials provided by the Consultant and, where necessary, the Consultant will be required to respond to staff comments and make such changes as deemed appropriate. Computer files must be on 3½", high-density, write-protected diskettes or CD’s formatted for use on IBM-compatible systems. Each diskette must be clearly labeled and have a printed copy of the directory. Alternatively, files may be emailed to the City. 23. Amendments. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Engineer of the City. 24. Complete Agreement. These Purchase Order Conditions and Consultants proposal shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto. C4 - 7 City of San Luis Obispo – General Terms and Conditions Attachment 2 - Exhibit A 4 25. Insurance Requirements. The Consultant shall provide proof of insurance in the form, coverages and amounts specified in these conditions as a precondition to contract execution. The Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or sub-consultants. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 20 10 Prior to 1993 or CG 20 10 07 04 with CG 20 37 10 01 or the exact equivalent as determined by the City). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 3. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. C4 - 8 City of San Luis Obispo – General Terms and Conditions Attachment 2 - Exhibit A 5 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Consultant shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. C4 - 9 Attachment 3 Tourism Business Improvement District Meeting Minutes Wednesday, February 12, 2014 10 am Embassy Suites CALL TO ORDER: Chair Clint Pearce PRESENT: Pearce, Wilkins, Patel, Hutton, Walker STAFF PRESENT: Molly Cano, Tourism Manager; Lee Johnson, Economic Development Manager Call to Order at 10:04 am Public Comment: Mark Landon of Nature Corps thanked the Board for their support. He announced that the $10,000 per month google grant has created new traffic to the new Nature Corps website. The first voluntour group is booked for Valentine’s Day weekend. The group consists of 13 participants that will be staying in a mix of lodging properties throughout San Luis Obispo. Matt Wilkins announced that on February 27th the Seacrest in Pismo Beach would be hosting a new Central Coast Chapter mixer for HSMAI. CONSENT AGENDA ACTION: Moved by Patel/Wilkins to approve the consent agenda. Motion carried 5:0 PRESENTATIONS 1. COUNTYWIDE TMD UPDATE Stacie Jacob of Visit San Luis Obispo County updated the Board on the status of the Countywide TMD (Tourism Marketing District) and the developments since the January 16, 2014 TBID Special Meeting. Jacob updated the Board on the process. During the February timeframe would be the parameter determination, and then from February-March would be the document development with Civitas, April would be the document revision, May-June would be the petition collection, and August would begin the hearing process with the cities and county. Jacob noted that the taskforce had been working on the governance of the proposed TMD. The taskforce has recommended that the assessment rate be 1% and the Board be structured with 15 members of assessed business only. In addition there would be a marketing committee that would recommend the marketing direction to the Board. SLO TBID would be able to appoint one representative to the Board. The implementation of the TMD would also ensure no additional annual funding requests would be sought from the individual TBIDs. Kimberly Walker will be participating in the TMD taskforce as the TBID representative. DRAFT C4 - 10 Tourism Board Improvement District Minutes Page 2 BUSINESS ITEMS 1. VISIT SAN LUIS OBISPO COUNTY & SAVOR 2014 Stacie Jacob of Visit San Luis Obispo County presented the following items for the Board’s consideration: quarterly report, funding request for 18 month term, and SAVOR 2014 sponsorship opportunities. The quarterly report included information on 2014 restaurant month, group sales accomplishments, public relations activities, and the film commission. Jacob presented the annual funding request of $111, 638 for 2014/15. She also requested that the Board consider the 6 month intent to fund for the beginning of the 2015/16 fiscal year depending on the formation of the TMD. This funding request would include the membership fees for all San Luis Obispo lodging properties. Finally Jacob presented the SAVOR 2014 sponsorship opportunity. The sponsorship of $40,000 would include the design of the bag, hotel marketing tools, transportation to Hearst castle event and the main event, booth in the Central Coast Pavilion, and SAVOR digital media package. Board Chair Pearce left the room for the discussion. The Board discussed the SAVOR sponsorship package. There was no public comment on the topic. ACTION: Moved by Patel/ Wilkins to sponsor SAVOR 2014 at the $40,000 level for the bag and the additional sponsorship items. Motion carried 4:0 Abstained: Pearce 2. ONLINE RESERVATION SYSTEM REVIEW The Board received a comparison report from Rosetta on online reservation systems for the continued consideration of an online booking tool for SanLuisObispoVacations.com. Rosetta has researched various options to increase the functionality of the hotel section of the TBID website to allow for fully functional availability search and bookings on the TBID website without leaving to go to a lodgings website. The goal is to increase the value of the TBID site and increase the number of bookings. Rosetta explained that based on their research on systems; there were no compatible and direct comparisons systems to Helium. Helium is a unique product that would be customized to the TBID’s needs. Other alternates for booking engines included OTAs or availability engines. The three types of systems were compared on a number of factors from implementation time and costs to maintenance and support. Helium’s approach is to be a specialized engine allowing search and bookings for lodgings. Helium will customize integrations into each of the lodgings PMSs. For those that do not have a PMS, the Helium system will provide a login for the lodgings to update their information and inventory. The complete Helium system is not yet available and therefore there is no data available on how well it will perform. Overall, Rosetta presented that there is not an out-of-box (OOB) solution today; all would require some integration points and support in order to bring online as well as continued support, especially through the initial launching phase. The Board discussed the various options and agreed that Helium as a customizable solution would be the best solution for the TBID properties at this time. OTA’s are costly for properties due to discounted rates and commissions and availability engines wouldn’t offer the solution for integration the TBID is interested in pursuing. The Board also reported that based on the feedback from the liaison property outreach, the hotels are most comfortable with the Helium model as a solution. C4 - 11 Tourism Board Improvement District Minutes Page 3 ACTION: Moved by Patel/ Wilkins to explore contract development with Helium beginning with a 10% ($13,500) down payment as the start of the contract, and for the Board to review contract terms & conditions at a later meeting. Motion carried 5:0 3. 2014-15 BUDGET TASK FORCE ASSIGNMENT The board assigned a taskforce to establish a recommendation for 2014-15 budget allocations. The taskforce includes: Dean Hutton, Nipool Patel, Kimberly Walker, and Michael Adams as the constituent member. 4. SILVERADO BUS WRAP ADVERTISING OPPORTUNITY Staff presented an advertising opportunity with Silverado Stages for the Board’s consideration. The opportunity was to wrap a Silverado bus with San Luis Obispo images. The cost was $3400 for the bus wrap plus an additional $6,000 in design work from Rosetta. ACTION: Moved by Patel/ Wilkins to revisit the opportunity next fiscal year if the opportunity was available. Motion carried 5:0 5. TBID MARKETING SERVICES PROPOSAL REVIEW The Board reviewed the evaluation results of the Marketing Services proposals and determined which agencies would be invited for an interview with the Board. The Board determined to invite the top 5 scoring agencies for the interview. ACTION: Moved by Wilkins/Patel to not invite the three lowest scoring agencies in for an interview including: Asterix, Glougo, and Mental Marketing. Motion carried 5:0 ACTION: Moved by Walker/Patel to invite the top scoring 5 agencies to interview with the Board including: Agency Lead, BCA & Studio Good, Verdin, Catalyst, GumCo. Motion carried 5:0 The Board also discussed having Rosetta involved in the agency interviews with the Board as an advisory role. COMMITTEE COMMUNICATION HOTELIER UPDATE None. PCC UPDATE Clint Pearce reviewed the minutes with the Board of the PCC’s January 8 meeting. TOURISM PROGRAM UPDATE Molly Cano presented the Tourism Program update: Brochure update- - Bit behind schedule C4 - 12 Tourism Board Improvement District Minutes Page 4 - Draft is being finalized for review - Will have by the SD tradeshow Strategic Plan taskforce update - Task force will be contacted next week to meet Visit California Outlook Forum update - Great program: focused breakout sessions. Day 1 Marketing Day 2 International - New developments: community.visitcalifornia.com o The Community is the first of its kind for our industry and aligns perfectly with our "always on" digital strategy. It has been designed for you to network with colleagues to exchange business ideas, discover new partnership opportunities and celebrate all that you do as part of California's travel industry. o Our goal at Visit California is to provide you with the tools and resources to help you grow your business while connecting with the industry at large. We believe the Community will be an effective platform to help you achieve success. It originates from a survey of California's travel industry where 75 percent of respondents urged Visit California to create an online forum that would allow partners and organizations to stay connected and network. - Dream Big campaign: California Competitiveness - Noreen Martin was elected CFO for Visit California Tradeshow updates - Bay Area show: 630 entries compared to 600 in 2013 - LA show: 981 entries compared to 630 in 2013 Meeting adjourned at 12:15 pm C4 - 13 Attachment 4 Tourism Business Improvement District Special Meeting Minutes March 5, 2014 1:00 pm Courtyard by Marriott CALL TO ORDER: Chair Clint Pearce PRESENT: Pearce, Wilkins, Patel, Patranella, Walker, Hutton STAFF PRESENT: Molly Cano, Tourism Manager; Lee Johnson, Economic Development Manager Call to order at 1:08 pm BUSINESS ITEMS 1. MARKETING SERVICES FINALIST INTERVIEWS The Board received the proposal presentations from the final marketing agency finalist, Verdin. Following the presentation the Board had a question and answer session with the agency. Following both presentations the Board discussed all five final agencies for Board feedback. As a result of the discussion the Board decided to extend a second interview to two agency teams: Verdin and BCA & Studio Good. The second interview requested: “Given the information that you already have received, including your assumptions regarding ShareSLO, SLOVacations.com, and Sincerely California, how would your agency take our brand to the next level? This may include strategic tactics and creative execution.” The special Board meeting would be scheduled for Tuesday, March 11 from 10am - 12pm at the Apple Farm. Meeting adjourned at 3:38 pm DRAFT C4 - 14 Attachment 5 Tourism Business Improvement District Special Meeting Minutes March 11, 2014 10:00 am Apple Farm CALL TO ORDER: Chair Clint Pearce PRESENT: Pearce, Wilkins, Patel, Patranella, Walker, Hutton STAFF PRESENT: Molly Cano, Tourism Manager; Lee Johnson, Economic Development Manager Call to order at 1:08 pm BUSINESS ITEMS 1. MARKETING SERVICES FINALIST INTERVIEWS The Board received the 2nd presentations from the marketing agency finalists, Verdin and BCA & StudioGood. Following each presentation the Board had a question and answer session with the agency. After the final presentation, the Board discussed the evaluation of each agency for the consideration of the contract recommendation. After detailed evaluation, the Board reached consensus regarding the marketing agency and decided to move forward with BCA & StudioGood. ACTION: Moved by Walker/Patel to recommend BCA and Studio Good for the 2014-16 marketing service contract with the SLO TBID and to begin drafting the contract terms and work scope for the Board’s review and approval. Motion carried 6:0 Meeting adjourned at 12:09 pm DRAFT C4 - 15 Attachment 6 Tourism Business Improvement District Meeting Minutes Wednesday, April 9, 2014 10 am at City Hall CALL TO ORDER: Chair Nipool Patel PRESENT: Patel, Pearce, Hutton, Walker, Westrope STAFF PRESENT: Lee Johnson, Economic Development Manager Call to Order at 10:00 am Public Comment: Sara Pontecchi of Smart shuttle introduced her company. She highlighted the airport shuttle, event transportation and other services. CONSENT AGENDA ACTION: Moved by Hutton/Walker to approve the consent agenda. Motion carried 5:0 PRESENTATIONS 1. CHAMBER QUARTERLY UPDATE Representatives from the Chamber presented the quarterly report for all activities performed by the Chamber. They shared quarterly highlights including visits to all TBID properties, distribution of 16,000 tear off maps to TBID hotels, the events promoted as well as the data on the phone line and hotel availability tracker. BUSINESS ITEMS 1. SELECT REPRESENTATIVE TO THE PCC The board members nominated Clint Pearce as the PCC representative from the TBID. ACTION: Moved by Westrope/ Hutton to appoint Clint Pearce to be the TBID representative to the PCC. Motion carried 5:0 2. 2014-2015 BUDGET TASK FORCE UPDATE The Board received a report from the budget task force. The Board directed staff to bring the budget recommendation back to the May meeting for approval. DRAFT C4 - 16 Tourism Board Improvement District Minutes Page 2 Page 2 of 2 3. MARKETING AGENCY CONTRACT REVIEW The Board reviewed the MOA between BCA and StudioGood and reaffirmed their recommendation to the City Council. ACTION: Moved by Westrope/ Hutton to recommend to the City council to award the contract (Specification No. 91275) for tourism marketing services to BCA/StudioGood. Motion carried 5:0 4. SAVOR BAG DESIGN CONSIDERATION Rosetta presented the creative design concept for the for the SAVOR 2014 bag for the Board’s review and approval. The Board provided feedback that they wanted to use the green gussets and change one picture. 5. COUNTY WIDE TOURISM MARKETING DISTRICT PRESENTATION Stacie Jacob of Visit San Luis Obispo County updated the Board on the status of the Countywide TMD (Tourism Marketing District). Jacobs mentioned that the draft district management plan was being further reviewed and updated information would be available after the TMD taskforce meeting and the VSLOC Board meeting during the week of April 14. The Board discussed possibly providing a recommendation to the City Council during the upcoming study session. The TBID was not in a position to make a recommendation and also agreed that the TMD process had not progressed sufficiently to be presented to City Council in a study session. During public comment it was highlighted by John Conner that the City Council required that the TBID secure 2/3 of the hoteliers’ signatures to move ahead. Council person Kathy Smith highlighted concerns about the amount of bureaucracy being created with the current plans. (Board member Pearce left the room for the discussion) ACTION: The Board directed staff to provide an updated liaison list. The Board agreed to use the list to contact their respective hotels and perform an informal straw poll. The results are to be reported back to staff by April 21st. COMMITTEE COMMUNICATION HOTELIER UPDATE Nothing to report. PCC UPDATE Clint Pearce reviewed the minutes with the Board of the PCC’s February meeting. TOURISM PROGRAM UPDATE Lee Johnson reported that things were moving along and that Molly Cano the Tourism manager was expected to return from maternity leave at the end of April. Meeting adjourned at 11:38 am C4 - 17 Attachment 7 FROM: Michael Codron, Assistant City Administrative Officer Prepared By: Molly Cano, Tourism Manager SUBJECT: REQUEST FOR PROPOSAL FOR MARKETING SERVICES FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT. RECOMMENDATION As recommended by the Tourism Business Improvement District (TBID) Board, release Request for Proposal (RFP) Specification No. 91275 for tourism marketing services. DISCUSSION Background In June 2008 Council adopted Ordinance 1517 establishing a tourism business improvement district (TBID) as requested by the local lodging industry. The assessment became effective on October 1, 2008 and the use of funds was defined in Section 12.42.030 as follow: “This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination.” Subsequently in March 2009 the City Council, as recommended by the Tourism Business Improvement District Board, awarded the TBID Marketing Services contract to Level Studios, now Rosetta. The initial contract allowed for the inaugural contract term from March 2009-June 2010 with two additional two-year extensions at the Board’s recommendation through June 2014. In July 2014, the current contract extension will be exhausted. RFP Discussion At the September 11, 2013 meeting, the TBID Board began the discussion about the RFP process. The Board discussed the importance of the all commissioners’ input in the review and selection of the contractors however, the Board agreed to create a taskforce to develop the RFP document taking into consideration the new Strategic Plan document approved by the TBID Board. (Attachment 1- September 2013 Board Minutes) Meeting Date Item Number 12/10/13 C4 - 18 Council Agenda Report—TBID RFP for Marketing Services Page 2 During the November meeting, the TBID Board reviewed the RFP in-depth as presented by the taskforce. The RFP requests for the development of a guiding marketing plan taking into account the current foundation created since 2008-09 as well as the execution of that plan. (Attachment 2- November 2013 Board Minutes) The Board subsequently approved the attached RFP document, requesting companies to submit proposals with a two-phase approach. The proposals sought should therefore provide the following components: 1. Establishment of a City of San Luis Obispo Tourism Marketing Plan 2. Execution of the Marketing Plan The initial contract term would commence in July 2014- June 2016 with the opportunity for two additional two-year contract extensions based on the recommendation of the TBID Board. FISCAL IMPACT Since the inception of the TBID, the marketing services contract has accounted for 50% or more the overall TBID program budget. In FY 2014-15 the contract is budgeted for $650,000 which is 55% of the projected TBID budget for that year. Based on the 2013-15 Financial Plan, the TBID budget is projected at $1,181,100 resulting in $531,100 for all other TBID investments during the 2014-15 fiscal year. In FY 2015-16 the contract is budgeted for $700,000 which is 56% of the projected budget for that year. Based on the 2013-18 Five-Year Fiscal Forecast, the TBID budget is projected at $1,245,000 or 20% of the projected TOT. ALTERNATIVES Deny or defer approval to advertise. The City Council may choose to deny or defer the approval to issue this RFP for marketing services. Staff does not recommend this option as the existing marketing contract will expire on June 30, 2013 without the ability to extend the term. ATTACHMENTS 1. TBID Board Minutes (September 11, 2013) 2. Draft TBID Board Minutes (November 13, 2013) 3. Request for Proposal – Specification No. 91275 ..\RFP for contracted Marketing Services for TBID (Codron-Cano) C4 - 19 A ttachment 8 1 Notice Requesting Proposals for MARKETING SERVICES for the City of San Luis Obispo Tourism Business Improvement District Administration Specification No. 91275 The City of San Luis Obispo is requesting proposals for marketing services for tourism promotion for 2014-16 fiscal years, pursuant to Specification No. 91275. All proposals must be received by the Finance and IT Department by 3:00 p.m., Friday, January 31, 2014 when they will be opened publicly in the City Hall Council Hearing Room, Room 9, 990 Palm Street, San Luis Obispo, CA. Proposals received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the Finance & IT Department, 990 Palm Street, San Luis Obispo, CA 93401, in a sealed envelope plainly marked with the proposal title, specification number, proposer’s name, and time and date of the proposal opening. Proposals shall be submitted using the forms provided in the specification package. A pre-proposal conference will be held via conference call on Thursday, January 8, 2014 at 11:00 a.m. to answer any questions that the prospective proposers may have regarding the City’s request for proposal. If you are interested in participating in the conference call, please contact Molly Cano at mcano@slocity.org for the call information. Proposal packages may be obtained on the City’s website at www.slocity.org under Bids & Proposals. Additional information may be obtained by contacting Molly Cano, Tourism Manager, at (805) 781-7165. C4 - 20 A ttachment 8 2 TABLE OF CONTENTS A. Description of Work 3 B. General Terms and Conditions 6 Proposal Requirements Contract Award and Execution Contract Performance C. Special Terms and Conditions 10 Proposal Content Proposal Evaluation and Selection Proposal Review and Award Schedule Contract Term Contract Invoices Submittal of References Statement of Contract Disqualifications Ownership of Materials Release of Reports and Information Copies of Reports and Information D. Agreement 12 E. Insurance Requirements 14 F. Proposal Submittal Forms 15 References Statement of Disqualifications Proposal Submittal Form C4 - 21 A ttachment 8 3 DESCRIPTION OF WORK In October 2008, the San Luis Obispo City Council established a Tourism Business Improvement District (TBID) and appointed an advisory board staffed by hoteliers to make recommendations to Council regarding the use of the assessment funds. The board’s primary focus is to promote San Luis Obispo as a visitor destination to enhance the economic well being of the lodging industry. The primary purpose of the marketing efforts is to encourage overnight travel to and stays in San Luis Obispo from other parts of California. Over the past 5 years since its inception, the TBID as an organization has been successful in developing the San Luis Obispo brand and growing overnight stays. The board is requesting proposals from marketing firms/ agencies to conduct the organization’s overall marketing and branding efforts. Responding firms should have experience in marketing travel destinations and/or lifestyle brands. The contracted agency will be responsible for creating, managing, and executing a comprehensive annual plan to support the TBID’s branding, marketing, advertising, and digital initiatives. For the purposes of this proposal, the budget for the development of a Marketing Plan and its execution in fiscal years 2014-16, is considered to be up to $650,000 in fiscal year 2014-15 and up to $700,000 in fiscal year for 2015-16. However, the City and the TBID Board are seeking proposals for a marketing plan and reserve the option to contract for the actual execution of the plan with a separate entity. The proposal should therefore be structured into two phases and/or components: 1. Establishment of Marketing Plan 2. Execution of Marketing Plan In order to allow for varied agency models to participate in this RFP process, there are a few options to approach the RFP response including: • An individual agency may provide a response for the entire scope of services. • One agency may provide a response for the scope of the services achieved through contracting work from alternate agencies. These proposals will need to identify the contracting agencies and the work product they will produce. • Multiple agencies may collaborate to present a single proposal that includes the full scope of work. These proposals will need to demonstrate previous projects that have required similar collaboration and a clear definition of how communication will maximize the partnership of these companies. A. Description of Work 1. Establish a comprehensive Marketing Plan, taking into full consideration the TBID’ s recently published five-year strategic clarity summary (available online). The Marketing Plan should include but be not limited to the following program components: • Target Audience & Approach: Define the target audience in accordance with the strategic clarity summary and establish the approach to successfully inspire travel to San Luis Obispo. • Overall Brand Management: Discuss the approach to management and further C4 - 22 A ttachment 8 4 development of the TBID brand platform including Sincerely, California and ShareSLO. ShareSLO.com brand management would also include the program management and evolution of the Street Team and other ShareSLO components. This area would also include representation, coordination, and general support for consumer and industry tradeshows, conferences, and events. • Digital Assets including the management, oversight, hosting, content development/management, and enhancements to SanLuisObispoVacations.com and ShareSLO.com. The program should include an overall social media strategy including community blog portal of ShareSLO.com, as well as the approach and promotion of the monthly targeted e-Newsletters. Note: The current technical architecture for SanLuisObispoVacations.com and ShareSLO.com is WordPress and the e-Newsletter is distributed through Campaign Monitor. Hosting of these sites would be the responsibility of the agency. • Media/Advertising Planning & Purchasing: In support of the target markets, the marketing plan should contain a comprehensive media and advertising plan. This plan should include: online, print, broadcast, social, and co-operative opportunities. The strategy should also include: Event Marketing (for City sponsored event partnerships), integration of strategic partnerships in marketing plan, Email Marketing, media plan/buys/research/optimization, analytics and reporting, SEM/SEO, and content development. • Public Relations/Communication Coordination: Public Relations management plan is not currently required for this proposal; however the proposer is encouraged to provide a provision for services and description of approach. Note: While, Public Relations is not currently included in this plan due to the contract partnership though the City with the SLO Chamber of Commerce, the proposer must be willing to cooperatively work with the said contractor to coordinate the media commutations with the overall marketing plan, as needed. • Industry/Event Partnerships: Define the approach to leverage the TBID relationships and investments with strategic industry partners (ex. Visit California), local business and organization (ex. local restaurants) and local special events (ex. SAVOR the Central Coast) in connection with the strategic clarity summary. 2. Implement the strategies as outlined in the Marketing Plan by utilizing the full marketing mix as it pertains to tourism related marketing. Planning, developing and implementing promotional tools on the City and TBID’s behalf that meet the criteria of reaching the defined target audience considering traditional and new media opportunities. All campaigns are subject to TBID Board review and approval prior to implementation. 3. Explore cooperative marketing opportunities with strategic partners the Visit San Luis Obispo County, SLO Wine Association, Chamber of Commerce, Cal Poly, the Downtown Association, the Arts Community, etc. 4. Establish and maintain an effective working relationship with the TBID Board and Tourism Manager. Scheduled meetings will normally be on a weekly basis with the Tourism Manager and monthly basis with the TBID Board. Contractor should provide input, refine, and adjust marketing objectives and strategies as recommended by the TBID Board and adopted by Council. C4 - 23 A ttachment 8 5 5. Provide budget management. Pay invoices and account for all such activity conducted on the City and TBID’s behalf in monthly billing materials. 6. Provide account services such as, but not limited to, marketing concept, design and production, media buys and placement, account budget and additional services as needed. Provide status reports on the account budget including standing to date monthly reports. The agency should indicate whether they intend to collect a flat fee or accept a commission. If contracted with a flat fee, agencies are required to dedicate the commission amount to the purchase of additional advertising. 8. Provide the TBID Board with timely, written reports, one week prior to the regular monthly meeting, which is held the second Wednesday of each month at 10 am, on the status of all aspects of the marketing campaign. Personally present a monthly report on past activities and continuation of plan. The reports should encompass: - Summary of all marketing activities in the reporting period. - Summary of advertising placed during the reporting period. - Summary of direct consumer marketing placed during the reporting period. - Summary of results and responses to materials during the reporting period. - Examples of materials distributed during the reporting period including proof of advertising. - Summary of strategic alliances supported during the reporting period. - Website statistics and interpretation. - ShareSLO program activities within the reporting period. 9. Planning and commissioning any research activity that the TBID Board and City Council may require, including suggestions for and methods of continuing evaluation of the effectiveness of the commissioned marketing campaign. 10. Coordinating activities of the marketing campaign with the TBID Board and establish effective working relationships with its members and assigned staff to achieve coordinated and efficient use of all available resources thus avoiding duplication of efforts with other city promotional efforts. 11. Provide advertising "fulfillment" services in response to requests for material arising out of the TBID’s marketing program. EACH PROPOSAL PACKAGE MUST INCLUDE THE FOLLOWING STATEMENTS AND INFORMATION TO BE CONSIDERED FOR SELECTION: 1. Statement of the proposed workscope. The workscope should: • Cover both fiscal years. • Show cost for each individual component of the proposal. • Outline implementation of proposed marketing strategies. C4 - 24 A ttachment 8 6 • State the general approach (philosophy) toward marketing the City and its lodging industry as a leisure, corporate, and group travel destination. • State the general strategies for achieving the above approach. • Include a budget for a comprehensive marketing campaign and a fee schedule for services to be provided. • Identify the agency program manager and key personnel responsible for the campaign, such as copy and design/production personnel, and any subcontractors. 2. Resume of professional experience and samples of previous work (presentation of portfolio, including work for existing clients and evidence of strategic thinking and problem solving ability will be requested of those proposers who are selected for interviews). These materials will become the property of the City of San Luis Obispo. 3. A list of three professional references, including names and telephone numbers of current clients. C4 - 25 A ttachment 8 7 B. GENERAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (proposer) shall meet all of the terms, and conditions of the Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope which shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, specification number, name of proposer, and date and time of proposal opening. No FAX submittals will be accepted. 3. Proposal Withdrawal and Opening. A proposer may withdraw the proposal, without prejudice, prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for withdrawal, in which event the proposal will be returned to the proposer unopened. No proposal received after the time specified or at any place other than that stated in the "Notice Requesting Proposals" will be considered. All proposals will be opened and declared publicly. Proposers or their representatives are invited to be present at the opening of the proposals. 4. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except an alternative proposal when specifically requested. 5. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However, any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 6. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the "special terms and conditions" in Section C of the specifications for proposal evaluation and contract award criteria. 7. Competency and Responsibility of Proposer. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposers. Proposers will provide, in a timely manner, any and all information which the City deems necessary to make such a decision. C4 - 26 A ttachment 8 8 8. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. 9. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverage, and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 10. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license & tax certificate prior to execution of the contract. Additional information regarding the City's business license & tax program can be obtained by calling (805)781-7134. CONTRACT PERFORMANCE 11. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 12. Laws to be observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during performance of the work. 13. Payment of Taxes. The contract prices shall include full compensation for all taxes which the Contractor is required to pay. 14. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 15. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 16. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 17. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged as a result of the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. C4 - 27 A ttachment 8 9 18. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 19. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 20. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages which may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 21. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor (Net 30). 22. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 23. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing invoices to City as a condition precedent to any payment to Contractor. 24. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 25. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect C4 - 28 A ttachment 8 10 and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 26. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 27. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform; which notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. C4 - 29 A ttachment 8 11 D. SPECIAL TERMS AND CONDITIONS 1. Proposal Content. Your proposal must include the following information: Submittal Forms a. Proposal Submittal Form. b. References from at least three firms for whom you have provided similar services. c. Statement of Contract Disqualifications. General Information d. Description of your approach to completing the work. e. Experience of your firm in performing similar services. f. Warranties or guarantees that you would provide to the City regarding your performance in completing the work. g. Resumes of the individuals that would be assigned to this project. h. Hourly billing rates for staff to be assigned to this project, if appropriate. i. Proposed compensation and payment schedule. j. Any other information that would assist us in making this contract award decision. Proposal Length and Copies k. Proposals should not exceed 40 pages, including attachments and supplemental materials. l. 10 (ten) copies of the proposal must be submitted. 2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee based on the following criteria: a. Understanding of the work required by the City and the TBID Board. b. Quality and nature of proposed programs to be implemented for marketing services. (Innovative concepts and alternative approaches are desirable.) c. Proposer’s experience in marketing services, which may include services to tourism agencies. d. Recent experience in successfully performing similar services. e. Proposed approach in completing the work. f. References. g. Background and related experience of the specific individuals to be assigned to this project. h. Proposed compensation. As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City and the TBID. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. C4 - 30 A ttachment 8 12 3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: Issue RFP 12/16/13 Pre-proposal conference 1/9 Receive proposals 1/31 Complete proposal evaluation 2/3-14 Conduct finalist interviews 2/24-3/7 TBID Contract Recommendation 3/12 City Council Award contract 5/6 Execute contract 5/30 4. Contract Term. The services identified in these specifications will be used by the City between July 1, 2014 and June 30, 2016. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal. Upon the mutual agreement of both parties, the contract may be extended for up to an additional two, two-year terms. 5. Contractor Invoices. The Contractor shall deliver a monthly invoice to the City, with attached copies of work order forms and/or detail invoices. Invoices have to be accompanied by proof of copy for all print advertising. 6. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package. 7. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package. 8. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 9. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the property of City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City. 10. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. C4 - 31 A ttachment 8 13 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [ ], hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, on December 16, 2013 City requested proposals for Marketing services for the City of San Luis Obispo lodging industry per Specification No. 91275; WHEREAS, pursuant to said request, Contractor submitted a proposal which was accepted by City for said services; NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date of this Agreement is made and entered, as first written above, until June 30, 2016. By mutual agreement of both parties, the term of this Agreement may be extended twice for an additional two years. 2. INCORPORATION BY REFERENCE. City Specification No. 91275 and Contractor's proposal dated [ ], are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefore compensation in a total sum not to exceed [$650,000 for 2014-15 and [$700,000] for 2015-16. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as described in Exhibit A attached hereto and incorporated into this Agreement. 5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City. 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated C4 - 32 A ttachment 8 14 herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Contractor [ ] [ ] [ ] [ ] 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: City Clerk Jan Howell Marx, Mayor APPROVED AS TO FORM: CONTRACTOR By: City Attorney C4 - 33 A ttachment 8 15 INSURANCE REQUIREMENTS: Consultant Services The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees, or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. C4 - 34 A ttachment 8 16 REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name: . Describe fully the last three contracts performed by your firm which demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 2 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 3 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome C4 - 35 A ttachment 8 17 STATEMENT OF PROPOSER'S PAST CONTRACT DISQUALIFICATIONS The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances. 1. Do you have any disqualification as described in the above paragraph to declare? Yes No 2. If yes, explain the circumstances. Executed on at I declare, under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. _________________________________________ Signature of Authorized Proposer Representative C4 - 36 A ttachment 8 18 PROPOSAL SUBMITTAL FORM The undersigned declares that she or he has carefully examined Specification No. 91275, which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: Description of Activity 2014-15 2015-16 TOTAL $ $  Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date C4 - 37 A ttachment 8 19 C4 - 38