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HomeMy WebLinkAbout08/20/1991, 6 - CONSIDERATION OF RECOMMENDATIONS FROM THE PROMOTIONAL COORDINATING COMMITTEE FOR THE 1991-93 ADVERTISING CONTRACT. 1��IIII�I►►IWIIIIIIIIII�II`IhI city c MEETING /ATE: II►u�u►1 u C� or san lugs os�spo 8�2��91 GOGs COUNCIL AGENDA REPORT I TEM NUMBER: FROM: Ken Hampian, Assistant City Administrative Officer . Prepared By: Alison Lloyd, Administrative Analyst h, SUBJECT: Consideration of recommendations from the Promotional Coordinating Committee for the 1991-93 Advertising Contract. CAO RECOMMENDATIONS: 1. Consider recommendations from the Promotional Coordinating Committee and determine appropriate funding levels for the City's 1991-93 Advertising Contract. 2. Authorize the Mayor to execute a two-year contract with Si Francis & Associates once action has been taken on funding levels for the contract. DISCUSSION: Background During the July 2 , 1991 meeting, the Council considered three of the four components of the City's 1991-93 Promotional Program. Contracts were approved with the Chamber of Commerce (visitor services and promotional activities) , and the San Luis Obispo County Visitors and Conference Bureau. The final component of the program, the advertising campaign is being considered as part of this report. The purpose of the City's Advertising contract is to develop an advertising campaign that encourages overnight travel to San Luis Obispo from other parts of California. Overnight tourism has been a focal point of the campaign for many years because of its relationship to the Transient Occupancy Tax collected by the City. The City's Program has typically targeted the entire State of California, with special emphasis placed on the San Joaquin Valley and southern California. Review Process and Contract Recommendation In April, the City distributed Request For Proposals (RFPs) to thirty-two public relations and advertising firms in the county. Announcements were also placed in the Telegram Tribune advertising the availability of the RFPs. The City received three responses to the RFPs. Proposals were received from SJ Francis & Associates who has held the advertising contract for the last four years, Barnett Cox & Associates, and Pierre Rademaker Design. The PCC established an Advertising and Promotional Subcommittee composed of Sam Ellis (who served as Chair) , Jesse Norris, and Jack Gatz to perform a detailed review of the proposals. The Subcommittee reviewed the proposals and determined that all three proposers were qualified to conduct a successful advertising ��►►►nibi►I�IIIII�p�I����9�8��1 city o� san tuis o8ispo i COUNCIL AGENDA REPORT campaign. The Subcommittee presented their preliminary recommendations to the full PCC at a Public Hearing on June 12 , 1991, where each of the proposers was given an opportunity to make a presentation. The PCC evaluated the Subcommittee's recommendations and in accordance with the City's purchasing procedures ranked the proposals in the following order: 1. Pierre Rademaker Design 2. SJ Francis & Associates 3 . Barnett Cox & Associates The PCC initially recommended acceptance of the proposal from the firm of Pierre Rademaker Design. It was later determined however, that a potential conflict of interest existed and Mr. Rademaker voluntarily withdrew his firm's proposal from consideration. As a result of this action, the PCC recommended acceptance of the proposal from SJ Francis & Associates and directed staff to forward their recommendation to the City Council. SJ Francis & Associates Proposal The advertising campaign that SJ Francis and Associates (SJFA) is proposing for 1991-93 is similar to the campaign that her firm conducted during 1990-91. The proposed campaign for 1991-93 will continue to focus on print advertising and radio promotions to encourage overnight travel to San Luis Obispo from other parts of California. SJFA is also proposing to continue the "Share It With Someone Special" theme which has been used for the past three years. In addition, advertising and visitor information will contain the City's water conservation message. SJFA recognizes however, that flexibility is a key component in conducting a successful campaign and will adjust marketing strategies as needed to ensure positive results. It should also be noted that the PCC's Advertising Subcommittee will closely monitor the advertising campaign, and suggest modifications as necessary throughout the term of the contract. SJFA has requested $86, 000 for 1991-92, which is just slightly higher than the 1990-91 contract level (+ $150) . It is important to note that the 1990-91 contract included $5, 000 for regional advertising which has not been included for 1991-93 . The PCC is recommending an alternative approach for addressing regional advertising that will be discussed later in this report. If this component is taken into consideration, the requested funding level for 1991-92 would be 6% higher than the previous year's contract. SJFA has requested $97, 800 for 1992-93 , which represents a 13.7% ($11,800) increase over the requested funding level for 1991-92. Requested increases in contract funding are primarily related to rising costs of advertising rates (which traditionally increase ���Mlll�fl��llll�f�l� ����� city of sa►n lues ompo COUNCIL AGENDA REPORT between 10% and 15% annually) . In addition, the 1992-93 contract will need additional funding to cover the expenses of revising and reprinting the City's tourism brochure. The PCC is recommending that the SJFA contract be funded for a two- year period at the requested level of $86, 000 during 1991-92 and $97,800 during 1992-93 , for a total of $183 ,800. It is the PLC's opinion that the requested increases to the contract (rising advertising rates and brochure production expenses) are reasonable and justifiable. Regional Advertising As mentioned previously, the advertising contract for 1990-91 included an allocation of $5, 000 for regional advertising to encourage county residents to dine and shop in San Luis Obispo. Proposers for the 1991-93 contract were not requested to include this component in their workscope because the Chamber of Commerce is proposing to conduct a similar regional advertising campaign. The Chamber's "Shop San Luis" campaign has been designed to encourage San Luis Obispo and Santa Barbara county residents to shop in San Luis Obispo. The proposal has received support from the PCC and will be presented for the City Council's consideration in early September. Should the City Council determine that a regional advertising component be included in the advertising contract with SJFA for 1991-93 , staff would recommend that SJFA be directed to submit a proposal for the PCC' s consideration and that their recommendation be forwarded to the City Council for approval at a later date. FISCAL IMPACT: . The 1991-93 Financial Plan for the City has allocated a total of $175, 400 for advertising services. Funding for this program is derived from Transient Occupancy Tax (TOT) revenues (the City allocates 20% of the TOT revenues to cultural activities, community promotion, and economic stablility activities) . If the City Council approves the PCC's funding recommendations for the advertising contract, it will be necessary to augment the Community Promotion Program by $8, 400. Staff would recommend that those monies be taken from available funding in the Economic Stability Program, which is also derived from the 20% TOT revenue allocation. ALTERNATIVES: 1A. Fund advertising contract within budgeted levels Under this alternative, SJ Francis & Associates would receive a 3% increase as provided for in the 1991-93 Financial Plan. If the Council adopts this approach, SJFA would receive approximately $86, 000 for 1991-92 and $89, 000 for 1992-93 , for IIIB��Iu��pIIIIIII��n �U�U city of san Luis osispo Mtge COUNCIL AGENDA REPORT a total of $175, 000. This would not impact the PCC's funding recommendation for 1991-92, but would result in the loss of $8, 800 during 1992-93 . As a result of this loss of funding, reductions would be seen in print advertising, radio promotion, and brochure production. While this is a feasible alternative, it is not recommended because staff concurs with the PCC's opinion that the additional monies are necessary to maintain a strong advertising program. 1B. Reduce increase to 6% for 1992-93 Under this alternative, SJ Francis & Associates would receive the PCC recommended amount for 1991-92, but only a 6% increase for 1992-93 . A 6% increase in the second year would be consistent with the recommended 6% increase between 1990-91 and 1991-92 . If the Council adopts this approach SJFA would receive a total of $177, 160 during the two-year period ($86, 000 in 91-92; $91, 160 in 92-93) . This would result in $6, 640 less during 1992-93 than recommended. While this is a feasible alternative, it is not recommended because this "loss" of funding would impact SJFA's ability to revise and reprint the City's tourism brochure, which is estimated to cost $6, 500. 3 . AAyDrove the advertising contract for one year Under this alternative the Council would retain the current practice of approving the advertising contract for one year only. While this is a feasible alternative, it is not recommended. A two-year contract will align the advertising contract with the City's budget process, reduce the administrative paperwork, and allow the advertising contractor to develop longer term strategies for promoting San Luis Obispo. It is also important to note that the Council has already approved the Chamber of Commerce and VCB contracts for two-year periods. SJ Francis & Associates agree that multi- year contracts would be preferable to the one-year contract currently held. ATTACHMENTS: 1. Summary of Advertising Campaign 2 . SJ Francis & Associates Contract NOTE: The proposals for SJ Francis & Associates, Barnett Cox & Associates, and Pierre Rademaker Design are available for review in the Council Reading File in the City Clerk's Office. I al\adrpt i Summary of Advertising Campalgn for the City of San Luis Obispo Campaign theme: Share it with someone special * This has been the advertising slogan for the past three years 9 The slogan appears on the cover of the City's tourism brochure * Ad responses have increased from 12,000 to 15,000 since this slogan was introduced Positioning,or how we want to potential visitor to think and feel about San Luis Obispo • San Luis Obispo offers a unique blend of scenic beauty, historical richness, outdoor recreation and friendly residents Strategy • Objective: Motivate the target audience to request visitor information • Target Audience: Demographic market:Adults aged 35-65+,some college education, household income of$35,000+,married,travel by automobile Geographic market:California, then the remainder of the continental United States Psychographic market:Adults who enjoy seeking out entertainment,rather than passively waiting for"something" to entertain them. Adults interested in scenic places,sightseeing, historic sights,getting away, exploring new areas • Consumer benefit: The charms of San Luis Obispo provide a rejuvenating respite from everyday routine • Support (or believability): In print advertisements, include photography,precise copy, offer of free visitor information • Tone& Manner(personality): San Luis Obispo is friendly, unpretentious,culturally rich and proud Implementation • Create one 1/3 page color ad for magazines • Create one black&white ad for Sunset • Create newspaper ad to tie into winter radio promotions • Repeat radio promotion with Fresno station • Repeat radio promotion with Bakersfield station • Initiate radio promotion in the Los Angeles market ATTACHMENT 1 General Schedule • Place magazine ads between November and March • Schedule radio promotions for January and February • Place newspaper ads during radio promotions Budget Discussion 1991-1992 Media Placement(net rates) $63,700* Ad Production $ 5,900 Radio Promotions Coordination $ 4,750 Printing $ 1,750 Account Service $ 9,900 Subtotal $86,000 Media Placement Savings $11,243* Radio Promotions Value $20,000 Value $117,243 *Instead of accepting the 15%agency commission,SJFA will charge a monthly account fee.To calculate the gross value of media placement,multiply the net cost by 1.1765($63,700 x 1.1765=$74,943) 1992-1993 • Recommend budget of$97,800 Note:This is$8,800 more than specified in the Request for Proposals.The increase is recommended because: 1)advertising rates continue to increase between 10% and 15% per year 2)we'll need to revise and reprint the City's tourism brochure, increasing the print budget from$1,750 to $6,500 Conclusion A successful campaign will: • Maintain market share • Bring first-time visitors to the city • Increase word-of-mouth references • Increase awareness of San Luis Obispo as a pleasure destination • Enhance San Luis Obispo's positive image (p'f� PROFESSIONAL SERVICES AGREEMENT TO PROVIDE ADVERTISING SERVICES This agreement is made this day of , 1991 by and between the CITY OF SAN LUIS OBISPO, California (hereinafter referred to as "City"), and SJ FRANCIS AND ASSOCIATES OF SAN LUIS OBISPO, hereinafter referred to as "Contractor'). WITNESSETH: WHEREAS, City desires to retain certain professional services in conjunction with an advertising program as recommended by the Promotional Coordinating Committee (PCC). The services being provided ' by the Contractor under this contract are professional advertising services to facilitate and implement the specific components of the program; and WHEREAS, City desires to engage Contractor to provide these services by reason of its qualifications and experience for performing such services, and Contractor has offered to provide the requested services on the terms and in the manner set forth herein. NOW, THEREFORE, in consideration of their mutual covenants, the parties hereto agree as follows: 1. PROGRAM COORDINATION: a. CITY. The City Administrative Officer or his designated representative shall be the Program Manager representing the City for all purposes under this agreement. He shall supervise the progress and execution of this agreement. b. CONTRACTOR. Contractor shall assign a single Program Manager to have overall responsibility for the progress and execution of this agreement for Contractor. Sallie Francis is hereby designated as the Program Manager for Contractor. Should circumstances or conditions subsequent to the execution of this document require a substitute Project Manager for any reason, the Project Manager designee shall be subject to the prior written approval by City Project Manager. 2. DUTIES OF CONTRACTOR: a. Services to be furnished. Under general direction of the Program Manager, Contractor shall provide all specked services as set forth in "Exhibit A", attached hereto and incorporated herein by this reference, or as amended by the PCC. ATTACHMENT 2 ��/ b. Laws to be observed. Contractor shall: 1. Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to be performed by contractor under this agreement; 2. Keep itself fairly informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this agreement, and materials used in Contractors' performance under this agreement, or the conduct of the services under this agreement; 3. At all times observe and comply with and cause all of its employees to observe and comply with all of said laws, ordinances, decrees and orders mentioned above. 4. Immediately report to the City's Project Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders and decrees mentioned above in relation to plans, drawings, specifications, or provisions of this agreement. C. Release of reports and information. Any reports, information, data or other material given to, or prepared or assembled by, Contractor under this agreement shall be the property of City and shall not be made available to any individual or organization by Contractor, except the Chamber of Commerce and the Visitors and Conference Bureau without the prior written approval of the City's Program Manager. d. Copies of reports and information. If 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 services under this agreement, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at"Contractor's direct expense. e. Qualifications of Contractor. Contractor represents that it is qualified to furnish the services described under this agreement. . f. In addition to the Promotional Advertising Agreement, the City contracts with the Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau (VCB) for visitors and promotional services. The Contractor acknowledges the potential for duplication of efforts and costs as a result of these contracts with the City. In performing its services under this agreement, the Contractor agrees to make every reasonable effort to coordinate activities and to identify and avoid potential duplication of costs associated with the VCB and Chamber of Commerce agreements. 3. DUTIES OF THE CITY: City agrees to cooperate with Contractor in its performance of that work described in Exhibit "A", attached hereto and incorporated by this reference, or amended work plans approved by the PCC. The City Program Manager shall work closely with the PCC and will incorporate its comments, guidance and desires into the administration and execution of this contract to the degree that such is reasonable. 4. COMPENSATION: Contractor will bill City and be compensated in accordance with Exhibit "A" attached hereto and incorporated by this reference, as currently exists or may be amended. 5. TIME FOR COMPLETION OF THE WORK: Program is for a two-year period commencing July 1, 1991 and ending June 30, 1993. Contractor shall perform services in a timely manner with direction and guidance from City Project Manager and PCC. Contractor acknowledges timing is at the sole discretion of City. 6. TEMPORARY SUSPENSION: .The City Program Manager shall have the authority to suspend this agreement wholly or in part, for such period as he deems necessary due to unfavorable conditions or to the failure on the part of the Contractor to perform any provision of this agreement. Contractor will be paid the compensation due and payable to the date of temporary suspension. 7. TERMINATION: a. Right to terminate. The City retains the right to terminate this agreement for any reason by notifying Contractor in writing sixty (60) days prior to termination and by paying the compensation due and payable to the date of termination; provided, however, if this agreement is terminated for fault of Contractor, City shall be obligated to compensate Contractor only for that portion of contractor services which are of benefit to city. Said compensation is to be arrived at by mutual agreement of the City and Contractor. Should they fail to agree, then an independent arbitrator is to be appointed by mutual agreement and his decision shall be binding upon the parties. b. Return of materials. Upon such termination, Contractor shall tum over to the City immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by Contractor, and for which Contractor has received reasonable compensation, or materials given to Contractor in connection with this agreement. Such materials shall become permanent property of City. Contractor, however, shall not be liable for City's use of incomplete materials or for City's use of complete documents if used for other than the project contemplated by this agreement. 8. INSPECTION: Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of Contractor are being performed in accordance with the requirements and intentions of this agreement. All work done and all materials furnished, if any, shall be subject to the City Program Manager's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its agreements as prescribed. 9. OWNERSHIP OF MATERIALS: All original drawings, plans, documents and other materials prepared by or in possession of Contractor pursuant to this agreement shall become the permanent property of the City, and shall be delivered to the City upon demand. Photographic rights shall be established for original negatives or transparencies. 10. INDEPENDENT JUDGMENT: Failure of the City to agree with Contractor's independent findings, conclusions, or recommendations, if the same are called for under this agreement, on the basis of differences in matters of judgment shall not be construed as a failure on the part of the Contractor to meet the requirements of this agreement. 11. ASSIGNMENT: SUBCONTRACTORS: EMPLOYEES: This agreement is for the performance of professional marketing services of the Contractor and is not assignable by the Contractor without prior consent of the City in writing. The Contractor may employ other specialists to perform special services as required with prior approval by the City. 12. NOTICE: All notices hereunder shall be given in writing and mailed, postage prepaid, by Certified Mail, addressed as follows: To City: City Clerk's Office City of San Luis Obispo P. 0. Box 8100 San Luis Obispo, CA 93403-8100 To Contractor: SJ Francis & Associates 1137 Vista del Lago San Luis Obispo, CA 93405 13. INTEREST OF CONTRACTOR: Contractor covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services hereunder. Contractor further covenants that, in the performance of this agreement, no subcontractor or person having such an interest shall be employed. Contractor certifies that no one who has or will have any financial interest under this agreement is an officer or employee of the City. It is expressly agreed that, in the performance of the services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 14. INDEMNITY: Contractor hereby agrees to indemnify and save harmless City, its officers, agents and employees from: a. Any and all claims and demands which may be made against City, its officers, agents or employees by reason of any injury to or death of any person or corporation caused by an negligent act or omission of Contractor under this agreement or of Contractor's employees or agents. b. Any and all damage to or destruction of the property of City, its officers, agents or employees, occupied or used by or in the care, custody or control of Contractor, or in proximity to the site of Contractor's work, caused by any negligent act or omission of Contractor under this agreement or of Contractor's employees or agents. C. Any and all claims and demands which may be made against City, its officers, agents or employees by reason of any injury to or death of.or damage suffered or sustained by any employee or agent of Contractor under this agreement, however caused, excepting, however, any such claims and demands which are the result of the negligence or willful misconduct of City, its officers, agents, or employees. d. Any and all claims and demands which may be made against City, its officers, agents, or employees by reason of any infringement or alleged infringement of any patent rights or claims caused by the use of any apparatus, appliance, or materials furnished by Contractor under this agreement; and e. Any and all penalties imposed or damages sought on account of the violation of any law or regulation or of any term or condition of any permit, when said violation of any law or regulation or of any term or condition of any permit is due to negligence on the part of the Contractor. 15. WORKERS COMPENSATION: Contractor certifies that it is aware of the provisions of the Labor Code of the State of California, which require every employer to be insured against liability for. workers compensation or to undertake self-insurance in accordance with the provisions of that code, and it certifies that it will comply with such provisions before commencing the performance of the work of this agreement. 16. INSURANCE: Contractor shall provide proof of insurance in accordance with Insurance Requirements for Consultants as described in Exhibit "B" attached hereto and incorporated herein by reference as though fully set forth. 17. AGREEMENT BINDING: The terms, covenants, and conditions of this agreement shall apply to, and shall bind, the heirs, successors, executors, administrators, assigns, and subcontractors of both parties. 18. WAIVERS: The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement or of any provision, ordinance, or law shall not be deemed to be a waiver of any subsequent breach or violation of the same or of any other term, covenant, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this agreement or of any applicable law or ordinance. 19. COSTS AND ATTORNEY'S FEES: The prevailing parry in any action between the parties of this agreement brought to enforce the terms of this agreement or arising out of this agreement may recover its reasonable costs and attorney's fees expended in connection with such an action from the other party. 20. DISCRIMINATION: No discrimination shall be made in the employment of persons under this agreement because of race, color, national origin, ancestry, religion, sexual orientation, or sex of such person. If Contractor is found to be in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions of federal law or executive order in the performance of this agreement, it shall thereby be found in material breach of this agreement. Thereupon, City shall have the power to cancel or suspend this agreement, in whole or in part, or to deduct from the amount payable to Contractor the sum of Twenty-Five Dollars ($25) for each person for each calendar day during which such person was discriminated against, as damages for said breach of contract, or both. Only a finding of the W/ State of California Fair Employment Practices Commission or the equivalent federal agency or officer shall constitute evidence of a violation of contract under this paragraph. If Contractor is found in violation of the nondiscrimination provisions of this agreement or the applicable affirmative action guidelines pertaining to this agreement, Contractor shall be found in material breach of this agreement. Thereupon, City shall have the power to cancel or suspend this agreement, in whole or in part, or to deduct from the amount payable to the Contractor the sum of Two Hundred Fifty Dollars ($250) for each calendar day during which the Contractor is found to have been in noncompliance as damages for said breach of contract, or both. 21. AGREEMENT CONTAINS ALL UNDERSTANDINGS: This document represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral. This document may be amended only by written instrument, signed by both City and Contractor. All provisions of this agreement are expressly made conditions. This agreement shall be governed by the laws of the State of California. IN WITNESS WHEREOF, City and Contractor have executed this agreement on the day and year first above written. CITY OF SAN LUIS OBISPO SJ FRANCIS & ASSOCIATES Ron Dunin, Mayor President ATTEST: Pamela Voges, City Clerk agsjfrands -/3 EXHIBIT A The Contractor shall coordinate and implement for two years, a diverse advertising campaign for the promotion of the City of San Luis Obispo as a tourism destination. 1. The primary purpose of the campaign is to increase tourism to the City of San Luis Obispo. 2. The Contractor will provide the Promotional Coordinating Committee, hereinafter called the PCC, with monthly written reports. The reports will provide information on campaign progress and include copies of all ads, tear sheets, production expenses, bills for services, an outline of work to be completed in the next month, and other pertinent information. 3. The City Program Manager and the PCC will provide the Contractor with direction and guidance based upon the monthly review of Contractor's performance and recommendations. 4. A summary of the advertising campaign for 1991-93 is described in the attached Tourism Promotion Plan for the City of San Luis Obispo. 5. Payment to the Contractor will be made on all completed work, jobs in progress and media purchases approved by the PCC within fifteen (15) calendar days of receipt of Contractor's invoice. Requests for payment will be sent directly to the Program Manager. 6. The budget for S.J. Francis & Associates is as follows: F.Y. 1991-92 $86,000 F.Y. 1992-93 $97,800 Total Budget for F.Y. 1991-93 is $183,800. al\sjhanci EXHIBIT $ I)dSURANIICE REQUIP,EMIENTS FOR CONSULTANTS r.Cnsul.amt shell p==fe and nal-lain!or the dura,;cn of the CCntray insurance against clai."for Injuries 1C persons of damages to prepery which rnaY arise fr_^.m of in Conner iCm w4h the performance of the work hereunder by:he CznsJa:ant, his ecer:s, representatives, enpic)'ees. - 1 inimum S.roe of Insurance Coverage shall be at leasi as bread as: 1. Insurance Services C' ice Comnere:al General Liability coverage (occurrence form CG 007:). 2 Insurance Services Cance form nurnber CA 0001 (Ed. 1/b7) covering Automobile Liability, code 1 (any auto). 3. 1:'c:kit:s' Compensation insurance as required by the Stale of California and Employer's Liability Insurance. _._. _.. Mnimum Li-i•-s of Insurance Consultant shallrain a;n 1;-;:s re less .ham: 1. General Uab;iiy £1,000,000 per occurrence for bodily injury, personal injury and property damage. h Commercial General Uabiiity or ether lcrn w'rh a general acgrecate limit is used, either the general aciireczte lirn;t shall apply separately to this pre;ect/loca:lcm or the general aggregate limit shall be twice the required occurrence NmiL 2 A::onebi;e Llabiiity- S 1,000,000 per accident for bodily injury and properly damage. 3. Employer's Liability: :7,000,000 per accident for bodily injury or disease. Deductibles and Sen.-Insured Feter ions ` Any deductibles or sell-insured retentions nus be declared to and approved by the City. Al the option of the City, either: the insurer Shan reduce or eliminate such deductibles or self-insured retentions as respects the City. its cffieers,cYcials,ernployees and volunteers; or the Ccns;;%amt shall procure a bond guaranteeing payment of losses and related inver.iga:icros, claim admWstratian and defense expenses. Oder Insurance Provisions The general Lability and automobile liability policies are to contain, or be endorsed to contain,the following provisions: 1. The City, its officers, ct'cids, employees, agents and volunteers are to be covered as insureds as respe�s: LabSrty arising out of a:ivities performed by or on behalf of the Consultant; products and completed operations of the Consultant; prenises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall =main no special limitations on the scope of protection afforded to the City, hs Otficers, et!ic:d, enpicyees, agents or vclurteers. 2 For any esims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the 14S Officers,ty. ft officials,employees, agerseors and olunteers1Sha0 en excess of the insurance or SConsullant'sinsuranceeand shallnot the City,conic.me with IL 3 Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the Ci`Y, its o7icers. Officials, enpleyees, agents or volunteers. 4. The COnsulant's insurance shall appy separately to each insured against whom claim is made or suft is brought,except with respect to the Lmrs 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 eenifed mail, return receipt requested, has been given to the City. Agawtabi@fv of Insurers Insurance is to be placed with insurers with a current AM. best's rating of no less than AVIL Verification of rzmIrsoa Consuhartt shalt fumish the City with original endorsements effacing coverage required by this clause. 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 mmmences. 35 I�NCI�S I�S�SOCI��TF�S Adi enising Public Relations Graphic Design 113;Vista del Lago San Luis Obispo California 9345 805.541- &-9 Tourism Promotion Plan for the City of San Luis Obispo RECEIVI� D MAY 171991 � WW MR gins nihftc" Prepared by SJ FRANCIS & ASSOCIATES N4ay 17, 1991 G�� SUMMARY OF PROMOTIONAL CAMPAIGN FISCAL YEAR 1991-92 'Share it with someone special" has been San Luis Obispo's campaign theme for the past three years. SJFA recommends keeping this theme and using it in all advertisements. Residents of California will be the primary geographic market, followed by residents of the continental United States. Upscale adults interested in travel, scenic beauty, historic sights and relaxing recreation will be the primary lifestyle market. Print Advertisements SJFA recommends creating one 1/3 page four-color ad for placement in select magazines, one black and white 1 column x 4' ad for Sunset and one 3 cohrmn x 4' black & white ad for newspapers. Each ad will reflect the five-point strategy. Ad placement will be coordinated with the Visitor and Conference Bureau's advertising schedule. This will make full use of exposing target markets to the words "San Luis Obispo" and avoid duplication. Magazines are an excellent way to reach a spedfic audience. They provide high quality ad reproductiorL They are read in a leisurely environment They also have a longer life compared to newspapers. SJFA recommends advertising in California Magazine, Los Angeles Magazine, Sunset, •Tmvel-Holiday, Travel & Leisure, and yVestunys. Each of these publications targets our audience demographically, geographically and by lifestyle. California has become the state's leading regional magazine, celebrating its fourteenth year with a rate base of 350,000. California is devoted to covering the state's personalities, politics, restaurants, the arts, as well as featuring book and movie reviews, travel, fashion and home design. Each November it features a special editorial section on the Central Coast. Of the California subscribers, 46.1% are male; 53.9% female; 64.4% married. The median household income is $71,760; the median age is 47.01 years. Eighty-four percent attended or graduated college; 55.5% graduated from college. Los Angeles Magazine (circulation 171,940) presents itself as a sophisticated, authoritative guide to getting the most out of life in Southern California. It reports and comments on political, business and social issues; trends and provocative new ideas; emerging personalities and lifestyles, and on the people and events shaping or affecting the reader's environment. It previews or critiques restaurants, theater, entertainment, vacations and weekend trips; TV and films; sports, art, music, books, leisure activities and worthwhile events. Three issues a year of Los Angeles feature special travel sections. Los Angeles Magazine is read by an almost equal number of men and women Of the subscribers, 526% are female; 47.4% male. The median age is 421 years, and median household income is $62,500. Of their readers, 86.8% have attended college and 323% went on to graduate school. Sunset, the magazine of Western living, is published for people in the 13 western states (circulation 1,401,922). Sunset readers are interested in gardening, cooking, entertaining and traveling. Of Sunset's subscribers, 60% are female; 40% male The median household income is $41,184; median age is 43.9 years. Sixty-six percent of Sunset readers attended college. Travel-Holiday addresses the most powerful emerging audience in America--the seasoned traveler. Their readership views travel not as an occasional indulgence, but a way of life. They seek new and interesting travel experiences, but recognize that the best trip isn't always the most expensive They demand value. Travel-Holiday delivers the practical know-how to make their dreams a reality. Travel-Holiday offers several geographic regions to advertisers. Their Western region has a circulation of 159,800 in 14 western states. Travel Ho&day's reader profile shows 54.1% are male; 45.8% female. Median age is 53.8 years; 90.7016 are married. The median household income is $87,500 and 67.6% attended/graduated college. Travel & Leisure claims it is the preeminent travel magazine, edited for readers who are passionate about the subject It inspires readers, whets their appetite for travel, then guides them with specific information on how to go, where to stay, what to buy. It's the reader's trusted traveling companion. Travel & Leisure offers several geographic regions to advertisers, including the state of California (rate base of 145,000). Travel & Leisure readers have a median household income of $95,200; the median age is 48.9 years. Of the subscribers, 50.2% are male, 49.8% female; 89.8% married. They are well educated: 68.6% attended college; 46% graduated college. Westways is the magazine of the Auto Club of Southern California (dreulation 460,939). Westways states it celebrates the Southern California lifestyle with dramatic flair and style, with an emphasis on the special interests of Southern Californians, from cars to consumer electronics, from shopping to sports, from fine homes to fine fashion, from outdoor entertaining to restaurants, from music to museums to travel. Westways covets the heart of the southern California market place, from San Diego north to Los Angeles and San Luis Obispo and east to the Arizona border. Westrazys readers have a household income of $51200 (mean) and are 53 years old (mean). Of the subscribers, 583% are female; 41.70/c male; 73% are married; and 43% graduated college. Newspapers have a much shorter lead time than magazines. They allow the advertiser quick access to a geographically precise market. SJFA recommends placing ads in the Fresno Bee and the Bakersfield Californian during the six-week radio promotions. All print ads will encourage response to the Chamber of Commerce for a free brochure. Responses can be made by calling, writing, or using a Reader Response card. The Chamber staff does an excellent job of bwldng ad responses, giving us an accurate measure to evaluate advertisement and media effectiveness. Radio Promotions SJFA recommends repeating the six-week winter radio promotions with Fresno station KFRE and Bakersfield station KLLY. In the 1990-91 campaign, the KFRE and KLLY promotions increased the City's ad dollars by 29%. The stations provided more than $16,000 in exposure at no charge, in exchange for weekend trip prize packages. SJFA again proposes giving weekend trips for two to San Luis Obispo as prizes in the two radio promotions. The prizes will be for one night's lodging, dinner-for-two, and brunch or breakfast-for-two. Afternoon tea may also be included. Hotels, motels and restaurants in the city will be asked to contribute rooms and meals in exchange for promotional mention on the air. During the promotion, each radio station will broadcast facts and visitor information about San Luis Obispo (furnished by SJFA). This type of special event will focus attention on San Luis Obispo during January and February, giving the City free radio exposure to a prover market within a 3-hour drive. SJFA also recommends negotiating a three-week radio promotion with a Southern California radio station The promotion would take place in January or February, and involve prize packages of weekends-for-two. Radio promotions are very difficult to evaluate. The radio stations receive the phone calls, and we are dependent on their evaluations. Both radio stations KFRE and KLLY claim that their listeners have been very excited about the San Luis Obispo promotion. Each station said that listeners who normally don't participate in contests called uv--from their homes, from their offices and even from their cars. KFRE typically begins receiving calls in September from listeners asking if the San Luis Obispo promotion will be held again KLLY also receives inquiries from listener;. The radio promotions will be evaluated by the number of calls--and who placed the cabs--that each radio station received. The dollar value of the promotion will also contribute to the evaluation GENERAL SCHEDULE OF MEDIA PLACEMENT AND ACTIVTITE,S According to Chamber of Commerce research, occupancy rates in San Luis Obispo are lowest between November and March. The 1990 Sunset Western Travel Study found that 35% of domestic travelers required one to two months lead time for planning trips; 28.9% allowed three to six months lead time. To boost winter occupancy, SJFA suggests running the majority of print ads between October and February. The radio promotions will be run at the same time, in January and February. This takes advantage of traditionally foggy weather in the San Joaquin Valley and the post- Christmas lull in radio advertising. Here is the general schedule of promotional services: June: City Council approves promotional contract July: Agency prepares sample ads for PCC approval PCC approves ad concept Agency prepares media schedule and budget PCC approves media schedule and budget August: Agency prepares ads Agency places magazine ads for October issues September: Agency places magazine ads for November issues Agency begins negotiations for radio promotions October: Agency presents radio promotion outline to PCC for approval Agency places magazine ads for December issues November: Agency places magazine ads for January issues Agency begins contacting hotels and restaurants about participating in radio promotions December: Agency places magazine ads for February issues Agency secures hotel and restaurant participation in radio promotion Agency packages and ships promotional materials to radio stations January: Agency places magazine ads for March issues Agency places appropriate newspaper ads for January Agency supervises radio promotions February: Agency places appropriate newspaper ads for February Agency supervises radio promotions March: Agency evaluates radio promotion April: Agency evaluates ad responses to date May: Agency evaluates ad responses to date June: Agency evaluates campaign �-�0 BUDGET DISCUSSION The majority of the funds will be used to purchase ad space in magazines and newspapers. Ad space will be billed at the net cost-15% lower than the gross cost. Instead of accepting the 15% agency commission, SJFA will charge a monthly account service fee. SJFA proposes preparing • 1 four-color 1/3 page magazine ad to run in glossy magazines • 1 black & white 1 column x V ad to run in Sunset • 1 black & white 3 cohrmn x 4' ad to run in newspapers The following estimate is based on ideas presented in this proposal. All costs are approximate. Media placement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $63,700* Ad creation/production (includes duplicates for each publication) . . . $ 5,900 Radio promotions coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,750 Printing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,750 Account service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 91900 TOTAL for FY 1990-91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $86,000 *Net rates, not gross rates. To calculate the gross value of the media placement, multiply the net cost by 1.1765 ($63,700 x 1.1765 = $74,943). FISCAL YEAR 1992-93 SJFA recommends evaluating the fiscal year 1991-92 ideas presented in this proposal before making recommendations for the following fiscal year. From the past four years, we know which publications pull the most responses. We also know that the radio promotions provide valuable endorsement of San Luis Obispo as a wintertime destination (as well as alerting hoteliers and restauranteurs what the City is doing to increase tourism). However, as times change, people change. What worked well in 1989 may not be as effective in 1993. Therefore, while we propose that the general promotional outline will remain the same for fiscal year 1992-93, we request flexibility in case the results of fiscal year 1991-92 do not meet our expectations. For fiscal year 1992-93, SJFA recommends at minimrmr a 10% budget increase over the 1991-92 budget of $86,000. Ad rates for magazines have been increasing 10% to 15% each year. In order to just manrtain the City's media presence, a budget increase of 10% is vital. The City's tourism brochure will also need reprinting (and probably revising) in fiscal year 1992-93. The print budget will need to be $6,500 to allow for revisions and reprinting 25,000 brochures. SJFA recommends a budget of $97,800 for fiscal year 1992-93. CONCLUSION By determining how San Luis Obispo should be positioned and what strategy should be used, the City will have the foundation for a strategic and lasting promotional campaign. A successful campaign will • Increase awareness of San Luis Obispo as a pleasure destination • Enhance San Luis Obispo's positive image • Maintain market share of visitors • Bring first-time tourists to the city • Increase word-of-mouth references • Create goodwill between visitors and the community Sj Francis & Associates is expertly qualified to provide the services and materials presented in this outline. lbank you for considering SJ Francis & Associates. This is a proposal, not a Sim action plan, and thaefrae is open to d<xis9on. In the event that SJFA is not selected to handle touimn advertising for the City of San Luis Obispo, we respectfully request that taut and any copies of this proposal be rettmted to SJFA by June 3D, 1991.