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HomeMy WebLinkAbout05/01/2007, C5 - ISSUANCE OF REQUEST FOR PROPOSALS (REP) FOR TOURISM ADVERTISING CONTRACTOR FOR THE COMMUNITY PROMOT cM.e u�Dve ouncil ltm Numbd j aGEnaa REpom CITY OF SAN LUIS OBISPO FROM: Shelly Stanwyck,Assistant CAO Prepared By: Brigitte Elke,Principal Administrative Analyst SUBJECT: ISSUANCE OF REQUEST FOR PROPOSALS (RFP)FOR TOURISM ADVERTISING CONTRACTOR FOR THE COMMUNITY PROMOTIONS PROGRAM(SPECIFICATION NO.90697) CAO RECOMMENDATION As recommended by the Promotional Coordinating Committee (PCC) issue a RFP.for Tourism Advertising Services for the Community Promotions Program (Specification No. 90697) and return to Council with recommended advertising contractor and contract on July 5, 2007. DISCUSSION Background Increasing the City's Transient Occupancy Tax (TOT) by means of tourism promotion is one of the major components of the Downtown Improvement work program included in the 2007-09 Financial Plan. The 2005-07 Major City Goal for economic development stipulated the encouragement and promotion of projects and programs that will increase sales and transient occupancy tax. The City's Community Promotions Program is a comprehensive program designed to support these goals and includes the PCC's oversight of the development of a tourism advertising and promotional campaign. The City applies a diversified approach to best achieve the program's defined objectives. In the past, the City has awarded four separate contracts focusing on providing visitors center services, public relations, direct marketing and regional advertising services. Historically, the advertising contract has been filled through the RFP process. Barnett, Cox and Associates hold the current contract that will expire June 30, 2007. In its March meeting, the PCC assigned an ad hoc committee to revise the RFP document to reflect current work scope expectations based on updated marketing goals and objectives. The PCC had met previously at its annual retreat on January 24, 2007 to initiate the revision of the current marketing plan (established in 2003) and define the target audience, goals and objectives for the City's marketing efforts. The ad hoc committee convened on April 5, 2007 to prepare a new RFP document for approval by the PCC. During its monthly meeting on April 11, 2007, the PCC reviewed the proposed RFP document. The committee voted unanimously to recommend to Council that the attached RFP for Community Promotion Advertising Services be issued as presented. (Attachment 1 —PCC Minutes).. Summary of the Workscope The RFP lists the specific advertising services sought by the City. Implementing the goals and objectives of an adopted Tourism Marketing Plan is a critical function of the City's Promotional cs i RFP for Community Promotions Advertising Services Program. In addition to the typical services provided by an advertising contractor, such as preparing and implementing an advertising campaign, the RFP requires the use and integration of the adopted tourism logo, tagline, and dedicated tourism website www.visitslo.org. It also encourages cooperative advertising opportunities with the County Visitors and Conference Bureau, the San Luis Obispo Cultural and Arts Community and provision for "fulfillment" materials requested by potential visitors. Next Steps Once the RFP is issued, potential contractors will have several weeks to respond. The PCC will conduct interviews and make its selection on June 13, 2007. Staff anticipates Council will consider the PCC's recommended contractor for approval at its July 3, 2007 meeting. FISCAL IMPACT Due to the need to bring forth the RFP during the budget process for the 2007-09 Financial Plan to maintain a consistent promotional program, staff has based the contract budget on the amounts granted in the 2003-05 and 2005-07 budgets. The second year (2008-09) budget was adjusted to reflect increases in media cost. The RFP therefore shows contract amounts of$174,000 for 2007-08 and $178,000 for 2008-09 respectively. However, staff is presently developing Council recommendations for the 2007-09 financial plan and may recommend increased amounts for this program. If such recommendations are made and approved by Council, the contract will be drafted accordingly- ALTERNATIVES Deny or defer the RFP. Council could choose to deny or defer the PLC's recommendation to issue this RFP. Staff does not recommend doing so at this time. It is expected that by continuing to contract with an advertising agency, the City will realize the benefits of significant revenues in the form of TOT. Without an advertising contractor, the City would most likely see further declines to a revenue source it is consistently seeking to enhance._ Attachments 1. Promotional Coordinating Committee Meeting Minutes of April 11, 2007. 2. Workscope from the RFP (the complete RFP is available in the Council Reading File) ��-z AnACHMEW 9 Promotional Coordinating Committee Minutes Wednesday, April 11, 2007 5:30 pm City Hall Council Hearing Room 990 Palm Street CALL TO ORDER: Staff, Brigitte Elke 5:35 pm PRESENT: Nicklas, J. Conner, T. Conner, Kinney STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst Due to the absence of the Chair, the committee voted on an interim for n meeting, since the Vice-Chair had left the PCC at the endfaf-herterm limit March 31, 2007.. ACTION: Moved by J. Conner Conner to elect Debbie Nicklas as the interim Chair for the April P e ing., M carried 4:0 City Clerk, Audrey Hooper, swore in the newly-eleete embers of the PCC: Rob Sexton and Cathie Babb. Both signe i is tea and received the City pin. PUBLIC COMMENT There was no public cornmervc CONSENT AGENDA ACTION: Moved by J._Corm �/T. Conner to approve the consent agenda as presented. M9tio c rried 6:0. BUSINESS ITEMS 1. Election of Vice-Chair ACTION: Moved by J. Conner/T. Conner cebbie Nickl �asiceChair for the upcoming year. Motierrcarried 6:0. 2. Review RFP documents for advertising contract as submitted by ad-hoc committee and recommendation to Council The committee reviewed the document as presented by the ad-hoc committee. Brigitte Elke reiterated the RFP process and proposed time table. Debbie Nicklas highlighted the changes the ad-committee made in order to improve and clarify the work scope requested. She further explained the elected definition of "destination" and the main target audience. Terry Conner had an addition in the description of the work and suggested a different order of the tasks listed. ACTION: Moved by J. Conner/T. Conner to recommend the RFP to Council as amended during discussion. Motion carried 6:0 SUBCOMMITTEE REPORTS 1. Grants In Aid The Grants in Aid subcommittee will have their first a ion meeting on April 26, at 4:00 PM at City Hall. 2. Marketing Subcommitte The Marketin committee continued work on the Marketing Plan. The committee decided to lead plan with a mission statement, in addition to defining the new positioning e coned. PCC LIAISON REPORTS N� ' orts were given. ATTACHh M2 DESCRIPTION OF WORK The City of San Luis Obispo has traditionally conducted an annual advertising 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 and stays in San Luis Obispo from other parts of California. The promotional efforts are coordinated by Principal Administrative Analyst and guided by the Promotional Coordinating Committee (PCC), a seven- member advisory body to the City Council. In addition to the advertising 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 for promotion through countywide cooperative initiatives. Coordination with these programs will be essential fora successful campaign. The City has found that the public interest and welfare will be best served by the solicitation of marketing services to conduct a comprehensive campaign that includes direct advertising to target California markets, as well as alternative advertising,methods, and which provides a means to clearly evaluate the effectiveness of the campaign. For the purposes of this proposal, the budget for direct advertising and marketing services is considered to be a minimum of$174,000 in 2007-08 and$178,000 in 2008-09. This proposed budget should include funding for a high quality promotional document to be used as part of the City's advertising "fulfillment" package, as well as the cost of "fulfillment" services required to respond to advertising requests. Currently the Chamber of Commerce Visitors Guide is used for this purpose. A. Description of Work 1. Implementing the goals and objectives outlined in the City's 2003 Tourism Marketing Plan (available online at www.slocity.oreleconomicdevelopment). This plan is currently being updated, but target audience and the overall objective of promoting San Luis Obispo as a travel destination (defined as hotel stays for 2 nights plus)have not been changed. 2. Establishing and maintaining an effective working relationship with the PCC and the PCC Marketing Subcommittee. Scheduled meetings will normally be on a monthly basis with the PCC and its Marketing Subcommittee and Contractor should provide input, refine, and adjust campaign objectives as recommended by the PCC and any Marketing Plan changes for Community Promotions as adopted by Council. 3. Planning, developing and implementing an advertising campaign on the City's behalf that meet the criteria of reaching the_defined target audience considering traditional and new media opportunities. All campaigns are subject to PCC review and approval prior to implementation. Explore cooperative advertising opportunities, in particular those with the San Luis Obispo County Visitors and Conference Bureau, San Luis Obispo Vintners, Cal Poly, the Downtown Association, and the Arts Community. Provide additional advertising and consumer relations services as needed. Work with the Marketing Subcommittee to generate new ideas and approaches to advertising. Provide advertising budget management. Pay placed advertising invoices and account for all such activity conducted on the City's behalf in monthly billing materials. 3 �— .� 4. Incorporate the City's tourism logo, tag line and visitors' website wwtiD.visitslo.com into all promotional efforts. 5. Providing account services such as, but not limited to, ad 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. 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 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. Explore creative direct marketing opportunities in defined feeder markets and provide "direct marketing" services to consumers through various advertising and promotion efforts. Develop targeted themes to attract consumers to the region. Coordinate themes with the Promotional Coordinating Committee (PCC)Marketing Subcommittee and the PR contractor. Pursue targeted niche opportunities as identified by the contractor and the PCC Marketing Subcommittee. Evaluate creative focus for success and adjust accordingly. Use local events and amenities identified by contractor and PCC Marketing Subcommittee in consumer oriented email, electronic newsletters, and other web-based promotional opportunities. 6. Providing the PCC with timely, written reports, one week prior to the regular monthly meeting, on the status of all aspects of the advertising campaign. Personally present a quarterly report on past activities and continuation of plan. The reports should encompass: - 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. 7. Planning and commissioning any research activity that the PCC or City Council may require, including suggestions for and methods of continuing evaluation of the effectiveness of advertising campaigns. 8. Coordinating activities of the advertising campaign and use of the Community Promotions brand with services provided by the San Luis Obispo Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau, establish an 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 duplication of efforts. 9. Providing advertising "fulfillment" services in response to requests for material arising out of the City's advertising program. At the discretion of the proposer, advertising "fulfillment" may be subcontracted to another party such as a "fulfillment house" or the Chamber of Commerce. Focus consumers to the website, visitslo.com, for fulfillment as well as for the continued development of the electronic database. A 4 C. J'� — ZIP