HomeMy WebLinkAbout04/18/1995, C-2 - MARKETING SERVICES REQUEST FOR PROPOSAL 111111111] jjll �7 MEETING DATE:
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ITEM NUMBER:/f
COUNCIL AGENDA REPORT
FROM: Ken Hampian, Assistant City Administrative Officer
Prepared By: Deb Hossli, Administration-
SUBJECT: Marketing Services Request for Proposal
CAO RECOMMENDATION: Approve and authorize the distribution of the marketing services
request for proposal as presented by the Promotional Coordinating Committee.
DISCUSSION:
The Promotional Coordinating Committee (PCC) has prepared the 1995/97 Marketing Services
Program request for proposal (RFP) for the Council's consideration (See Attachment 1). As the
Council is aware, the marketing services contract represents an important component of the
City's Promotional Program. The purpose of the contract is to attract overnight tourism to the
City during the off-season (November through March) using a combination of paid advertising
and promotional programs. The efforts of the marketing contractor are then augmented by
contracts with the Chamber of Commerce and Visitors and Conference Bureau.
Consistent with past approaches, the RFP is very simple and straight forward. Interested
applicants will be given three weeks to prepare a marketing campaign to promote the City. All
RFD's received by the City will be reviewed and ranked by the PCC. Once this process is
complete, the PCC will forward a recommendation to the City Council as to who the contract
should be awarded to. This should take place by early June. It is important to note that the
only change to the 1995/97 RFP is the term of the contract. For the past several years, the City
has entered into one year contracts for marketing services that include an option to.extend for
one additional year. Since we have always extended the contract into the second year, the PCC
felt it was more practical to make the contract a straight two year term.
The only other issue that came up in discussing the RFP was whether there is a need to add an
exclusivity clause to the contract. By adding an exclusivity clause, the contractor who ultimately
accepted the marketing contract would be precluded from accepting promotional contracts from
other cities in the region. The exclusivity clause became an issue during the past year when the
City's current marketing contractor Barnett, Cox & Kornreich (BC&K) accepted a similar
contract with the City of Pismo Beach. While BC&K worked hard to assure the City that this
would not create any problems, some PCC members still had concerns over the potential for
conflict of interest issues to arise. It is important to note that BC&K has since chosen to
discontinue their relationship with the City of Pismo Beach.
After discussing the advantages and disadvantages of an exclusivity clause, the PCC concluded
it was not necessary. The PCC feels that because the City's marketing strategies are openly
shared with other cities (via the Visitors and Conference Bureau) and are part of the public
record, there is no need to require the City's marketing contractor to work solely for the City.
What is important to the PCC is that the firm ultimately selected to carry out the contract is
creative, resourceful and capable.
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AMle�& COUNCIL.AGENDA REPORT
FISCAL Il"ACT;
The RFP has been prepared using dollar amounts that are tentatively expected to be included in
the 1995/97 Proposed Financial Plan; $91,200 and $94,000 respectively. This represents a
increase of 2.5% in the first year and 3% in the second year of the Financial Plan to
accommodate cost-of-living adjustments. The exact amount of the contract, however, will not
be determined until the Council adopts the Financial Plan in June. This is made clear in the
RFP.
It is.also important to note that the PCC has forwarded recommendations to the CAO requesting
that the marketing services contract be increased by 10% (as opposed to the 2.5% and 3%
tentatively included in the Proposed Financial Plan). The Committee feels this is necessary to
insure that the marketing contract keeps pace with increases in advertising costs. In addition,
the PCC would like an additional $40,000 ($20,000 each year) to pilot a marketing campaign
in the Bay Area over the next two years. These requests will be considered as part of the
1995/97 Financial Plan internal review process and appropriate recommendations will be
forwarded to the Council when the budget is taken up in June. Then, if the Council ultimately
chooses to provide additional funding to the PCC for marketing, the contract can be easily
amended at that time.
ATTACffi1IENTS:
1 - Marketing RFP
REQUEST FOR PROPOSALS FOR MARKETING SERVICES
FOR THE CITY OF.SAN LUIS OBISPO
The City of San Luis Obispo has traditionally conducted a marketing campaign to promote San
Luis Obispo as a visitor destination to enhance the economic well-being of City residents and
businesses. The primary purpose of the campaign is to encourage overnight travel to San Luis
Obispo from other parts of California. The promotional efforts are coordinated by the
Promotional Coordinating Committee (PCC), a seven-member advisory body to the City
Council. In addition to the marketing campaign, the City currently contracts with the San Luis
Obispo Chamber of Commerce for visitor services and additional non-advertising promotional
and public relations services. The City also contributes to the San Luis Obispo County Visitors
and Conference Bureau. Coordination with these programs will be essential for a successful
campaign.
The City has found that the public interest and welfare will be served by the solicitation for
marketing services to conduct a comprehensive campaign that includes direct advertising to
targeted California markets, as well as alternative advertising methods, and which provides a
means to clearly evaluate the effectiveness of the campaign.
It is the intention of the City of San Luis Obispo on the 12th day of May 1995 by 5:00 p.m.,
in the City Clerk's Office, 990 Palm Street, San Luis Obispo, CA, to receive proposals for the
specific marketing services described in the following paragraphs. Mailed proposals should be
posted to the City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA 93401-3249, and
be received in the City Clerk's Office by the date and hour noted above. All proposals should
be clearly marked "MARKETING SERVICES PROPOSAL" in the lower left corner of the
mailing or delivery envelope. Late proposals or oral proposals will not be considered.
The City reserves the right to reject any and all proposals. Selection of any proposer for such
marketing services shall be the exclusive judgement of the City Council. If the City accepts a
proposal, a professional services contract will be awarded to the proposer selected by the City.
The term of the marketing contract is two years running from July 1995 through June 1997.
For•purposes of this proposal, the budget for direct advertising and marketing services is
considered to be $91,200 in 1995/96 and $94,000 in 1996/97. The exact amounts will be
determined by the City Council when the Financial Plan is adopted in June 1995.
THE CONTRACTOR WILL BE RESPONSIBLE FOR THE FOLLOWING:
1. Planning, preparing and implementing an marketing campaign, on the City's behalf,
subject to PCC recommendation and City Council approval.
2. Providing account services such as, but not limited to, ad concept, design and
production, media buys and placement, and additional services as needed. Also,
checking, paying invoices, and accounting for all such activity conducted on the City's
behalf in any media. Agencies should indicate whether they intend to collect a flat
ATTACHMENT 1
A-2 3
fee-or accept a commission. If collecting a fee, agencies are required to dedicate the
commission amount to the purchase of additional advertising.
3. Designing and conducting a program to monitor effectiveness of the marketing campaign.
4. Establishing and maintaining an effective working relationship with the PCC. Liaison
between the PCC and Contractor will be with the PCC Marketing Subcommittee. .
Scheduled meetings will be on an "as needed" basis with PCC Marketing Subcommittee
and Contractor to refine and adjust campaign objectives as recommended by the PCC.
5. Providing the PCC with timely, written monthly reports one week prior to the regular
meeting on the status of all aspects of the marketing campaign. Attending monthly PCC
meetings to discuss campaign activities.
6. Planning and commissioning any research activity that the PCC/City Council may
require. This includes suggestions for and methods of continuing evaluation for the
effectiveness of marketing campaigns.
7. Coordinating activities of the marketing campaign with promotional services provided by
the San Luis Obispo Chamber of Commerce and the San Luis Obispo County Visitors
and Conference Bureau. Establishing effective working relationships with staff of the
organizations referenced above, and other City bodies to achieve coordinated and
efficient use of all available resources, avoiding a duplication of efforts.
8. Executing a standard Agreement to Provide Professional Services, including evidence of
motor vehicle insurance coverage for all vehicles operated in the course of business. A
copy of the standard agreement with insurance requirements is attached.
EACH PROPOSAL PACKAGE MUST CONTAIN THE FOLLOWING STATEMENTS AND
INFORMATION TO BE CONSIDERED FOR SELECTION:
1. Statement of proposed workscope. The workscope should:
■ cover two fiscal years (July 1995 through June 1997)
■ summarize the marketing campaign
■ state the objectives of, and general approach (philosophy) toward, the marketing
campaign
■ state the specific strategy for achieving the above objectives (i.e., include a
general schedule of media placement and other activities)
■ include a budget for the 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
ev
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.
The filing of such statements as described above shall constitute permission by the proposer for
the City to verify information contained in such statements. Additional information may be
requested from the proposer. Failure to comply with any such request may disqualify a proposer
from further consideration. Proposals are public documents and may be subject to review and
discussion in public session of the City Council and the PCC.
SELECTION PROCEDURES
The PCC will review all proposals. In addition, the PCC may request interviews with each
proposer. Selection of the proposal which meets the needs of the City of San Luis Obispo will
be accomplished by the City Council upon recommendation by the PCC.
SELECTION OF THE BEST RESPONSIBLE PROPOSALS WILL BE BASED UPON THE
FOLLOWING CRITERIA:
1. Proposer's experience in marketing services, which may include services to public
agencies.
2. The quality and nature of proposed programs to be implemented for marketing services.
(Innovative concepts and alternative approaches, in addition to direct advertising
campaigns, are desirable.)
The PCC will review, evaluate and rank the proposals. The City Council will make the final
decision to award a contract.
MARKETING SERVICE AS INDEPENDENT CONTRACTOR:
In the event the City accepts a given proposal, the successful proposer shall agree that, at all
times covered by the agreement, the proposer is acting as an independent contractor, not as an
employee of the City, and as such, shall not accrue or be eligible for vacation, sick leave,
workers' compensation, unemployment insurance benefits, medical insurance, or other similar
benefits available to City employees. Any promotional service agreement with the City to
provide the services referenced shall not be assignable without prior written consent of the City.
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