HomeMy WebLinkAbout09/15/2009, C3 - REGIONAL MARKETING CONTRACT FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT fi
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CITYOF SAN LUIS O B I S P O
FROM: Shelly Stanwyck, Assistant City Administrative Officer
Prepared By: Brigitte Elke, Principal Administrative Analyst
SUBJECT: REGIONAL MARKETING CONTRACT FOR THE TOURISM
BUSINESS IMPROVEMENT DISTRICT
RECOMMENDATION
1. As recommended by the Tourism Business Improvement District Board, award a contract
for Regional Marketing Services to the San Luis Obispo County Visitors & Conference
Bureau.
2. Authorize the Mayor to execute the contract.
DISCUSSION
Background
In June 2008 Council established the Tourism Business Improvement District (TBID) in the City
of San Luis Obispo and appointed an advisory board to advise Council on the use of the
assessment funding. The use of the funds is defined in Municipal Code Section 12.42.030 as
follows:
"...to provide revenue to defray the costs ofservices, 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. "
Prior to the establishment of the TBID, tourism promotion had been administered through the
City's Community Promotions program under the Promotional Coordinating Committee (PCC).
As part of its efforts, the PCC had contracted over the past years for tourism marketing, Public
Relations (PR), and regional advertising.
In 2009, in order to better define the roles of the two advisory bodies, the City's promotional
strategy was divided into the two categories traditionally addressed in tourism marketing:
external and internal marketing. The TBID Board would concentrate its efforts on external
marketing to bring overnight tourists to San Luis Obispo. The PCC would focus on internal
marketing and concentrate its efforts on beautification, City events promotion, entertainment, and
shopping/dining in San Luis Obispo. This approach was adopted by the City Council with the
2009-11 Financial Plan.
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Council Agenda Report—TBID RFP for Marketing Services
Page 2
destination for tourists seeking to visit the Central Coast. The committee held that the City's
tourist amenities become more attractive when marketed as the central location for all county-
wide destinations. The SLOVCB was and continues to be in a unique position to accomplish this
aim in an efficient and economical manner for the City.
However, given the new division of responsibilities between the two advisory bodies, the
activities of the SLOVCB were considered closer related to the aim of the outward looking
TBID.
TBID Review and Recommendation
At its August 12, 2009 regular board meeting, the TBID board had scheduled a review of the
SLOVCB's proposal to the TBID for regional marketing services. John Summer, the SLOVCB's
new Executive Director, presented the SLOVCB's marketing program to the TBID Board and
elaborated on the benefits to the TBID's constituency. The Board continued the item to the
August 26`h Special meeting in order to review the presented material and consider the request.
On August 26, 2009 the TBID Board held a special meeting and considered the SLOVCB's
proposal. After brief discussion, the Board voted unanimously to support the funding request of
$95,000(Attachment 2—Draft Minutes).
The SLOVBC is uniquely positioned to execute regional marketing as its core mission is to
position, brand and promote San Luis Obispo County as a choice destination for regional,
national and global visitors. All incorporated cities, as well as the County's unincorporated areas
partner with the SLOVCB for regional marketing services which makes its approach and services
efficient and economically feasible. In this instance it is appropriate to enter into an exclusive
contract with the SLOVCB.
Under the proposed contract, specific services to be provided by the SLOVCB for regional
marketing include: the development and implementation of promotional campaigns in
coordination with the City's TBID marketing goals and objectives, provision of information that
suits the needs of visitors and conference attendees; maintenance of electronic information
services; developing group business and attend tourism related conferences; create and
implement a coordinated marketing campaign for the San Luis Obispo County region; acting as
the city- and countywide film commission; and disseminating and promoting the City's brand
image for community promotions.
In previous years, the City had contributed $73,368 to the SLOVCB based on a fair share
formula. The current amount recommended by the TBID Board includes the same-fair share
portion as well as the membership amount due for all of the City's hoteliers.
Notably by fully funding the SLOVCB in 2009-10, it has agreed that all members of the
organization, regardless of industry, will receive a 25% discount on their membership dues. In
total there are 64 members in San Luis Obispo that will benefit from this discount.
Council Agenda Report—TBID RFP for Marketing Services
Page 3
FISCAL IMPACT
According to the City's Financial Plan, the TBID is estimated to raise $837,000 for tourism
marketing and promotion in 2009-10. Thus far there is contractual commitment with Level
Studios in the amount of$500,000, leaving sufficient funding for the contract with the SLOVCB
for$95,000.
ATTACHMENTS
1. Agreement
2. Draft TBID Board Minutes–Special Meeting August 26, 2009
3. Draft TBID Board Minutes–Regular Meeting August 12, 2009
Council Reading File
SLOVCB Marketing Plan for 2009-10
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ATTACHMENT 1
AGREEMENT TO PROVIDE REGIONAL MARKETING SERVICES
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this
day of , 2009 by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation, hereinafter referred to as City, and; the SAN LUIS OBISPO COUNTY VISITORS
AND CONFERENCE BUREAU, a nonprofit corporation, hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, the City Tourism Business Improvement District board recommended to
partner with the Contractor to promote San Luis Obispo County and the City's advantages as a
destination for tourists seeking to visit this region of California; and
WHEREAS, Contractor is qualified for and is equipped to cavy out such activities on
behalf of the City and its Tourism Business Improvement District, and is in a position to
accomplish such aims and purposes of the City in an efficient and economical manner;
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 July 1, 2009 until June 30,
2010
2. INCORPORATION BY REFERENCE. Exhibit A.
3. REPRESENTATION FOR PROGRAM COORDINATION.
3.1 City. The City Manager or his designated representative shall be the Project
Manager representing the City for all purposes under this agreement.
3.2 Contractor. Contractor shall assign a single Project Manager to have overall
responsibility for the progress and execution of this agreement for the Contractor. John
Summer, Executive Director of Contractor is hereby designated as the Project Manager.
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 the City Project Manager.
4. CITY'S OBLIGATIONS. For providing services as specified in Exhibit A to this
Agreement, and upon receipt of Contractor's monthly contractor report; City agrees to pay to
Contractor ten (10) monthly installment payments, in the amount of Nine Thousand five
hundred ($9,500), for a total of Ninety Five Thousand Dollars ($95,000) for 2009-10.
5. CONTRACTOR'S OBLIGATIONS.
5. 1. Scope of Work - Exhibit A. For and in consideration of the payments and
agreements to be made and performed by City, Contractor agrees to provide services as
described in Exhibit A attached hereto and incorporated into this Agreement.
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VCB Regional Marketing Contract 2008-09
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ATTACHMENT 1
5.2. Tourism Marketing Goals. Contractor agrees to assist the City in achieving
the major objectives set forth in the 2009-10 Tourism Business Improvement District Marketing
Goals.
5.3. Coordination of Efforts with other Contractors. In addition to Contractor,
the City through the Tourism Business Improvement District has service agreements for its
tourism promotions efforts with Level Studios and the San Luis Obispo Chamber of Commerce
for tourism marketing, electronic information services, and public relations. Contractor
acknowledges the potential for duplication of efforts as a result of these agreements with the
City and agrees to coordinate efforts and collaborate with these entities as directed by the
Tourism Business Improvement.District.Board.
5.4 Promotion of City Lodging Properties. City acknowledges that Contractor
is a membership based organization. Contractor agrees during its promotion of City and
fulfillment of the terms of this contract that it shall promote all City of San Luis Obispo lodging
properties and include them as full members of the organization without any additional dues to
the properties. In addition, contractor agrees to extend a 25% discount on all membership dues
for any and every type of members located within the City of San Luis Obispo. Contractor
acknowledges that this promotional effort will require a link on Contractor's website to all the
lodging properties and the Tourism Business Improvement District website
http://sincerelycalifomia.com.
6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms
and conditions as specified in Exhibit B.
7. INSURANCE. The Contractor shall procure and maintain for the duration of the
contract insurance which meets the requirements of Exhibit C. As evidence of this insurance,
the Contractor shall provide the City with a Certificate of Insurance and an Endorsement
naming the City as an "Additional Insured".
8. 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 or the City Manager up to the authority granted to the City Manager by Council.
9. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or
written, between the parties, including any and all agents or representatives thereof, Contractor
at all times covered by the terms of this agreement is acting as a free and independent
contractor, not as an agent of the City. Any and all supervision and direction by any City
official, department or body shall be only that necessary to provide broad general outlines, and
Contractor will use its own initiative and discretion in performing the details of work herein.
10. 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.
11. 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:
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VCB Regional Marketing Contract 2009-10
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ATTACHMENT 1
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Contractor San Luis Obispo County Visitors & Conference Bureau
811 EI Capitan Way, Suite 200
San Luis Obispo, CA 93401
Attn: John Summer
12. 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
Elaina Cano, Interim City Clerk David F. Romero, Mayor
APPROVED AS TO FORM: CONTRACTOR
By:
nat n Lowell, City Attorney John Summer, Executive Director
San Luis Obispo County VCB
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ATTACHMENT
EXHIBIT A
SCOPE OF WORK FOR REGIONAL MARKETING SERVICES
1. Create and implement promotional campaigns in coordination with the City's Tourism
Business Improvement District Marketing Goals and Objectives.
2. When promoting the City of San Luis Obispo utilize the Tourism Business Improvement
District Brand, San Luis Obispo— Sincerely California!
3. Provide visitor information that suits the needs of conference attendees and potential
visitors in order to promote the variety of activities in San Luis Obispo. Include information
that pursues the goal of the City of San Luis Obispo being the destination for vacation
stays for two days or longer.
4. Maintain electronic information services through a visitor oriented website and other
electronic media.
4.1. Respond to high volumes of information requests including telephone calls and
emails.
4.2. Serve as contact for potential visitors as well as a referral agency to local resources.
4.3. Continue to add City of San Luis Obispo special events to VCB website and highlight
the cultural offerings during the various months.
4.4. All electronic newsletters and communications will include San Luis Obispo events,
activities, and amenities.
5. Develop group business and conferences.
5.1. Focus efforts to increase conference, retreat, government, and travel industry
business through targeted sales efforts emphasizing mid-week and off-season
business.
5.2. Represent the City and region by attending major consumer travel and sales shows
that directly impact the target market.
5.3. Work with individual prospects to coordinate conferences.
5.4. Promote the use of the Performing Arts Center, Damon Garcia Sports Fields, and
other major facilities in the City of San Luis Obispo for use for major events.
6. Create and implement a coordinated marketing campaign for the San Luis Obispo County
Region.
6.1. Coordinate efforts with the City's Advertising Agency and the Chamber of Commerce
to pursue mutually beneficial opportunities and to avoid overlapping marketing
efforts.
6.2. Market the region as a destination.
6.3. Develop appropriate materials to accomplish marketing campaign including website,
weblinks, monthly contests, e-newsletter, magazine advertisements, etc. benefiting
the City of San Luis Obispo.
VCB Regional Marketing Contract 2009-10
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ATTACHMENT 1
6.4. Include the City of San Luis Obispo in all special events and promotions as outline in
the VCB's marketing plan (i.e. Restaurant Month, Wine Month, etc.)
6.5. Include the City of San Luis Obispo in all and every PR release, Fam Tours, special
events, tradeshows, etc. as further define in Contractor's marketing plan for 2009-
10.
6.6. Produce electronic and in print visitors' guides and pursue a visual depiction
encompassing all the cities and county's attraction on the front page.
6.7. Attend various statewide and local media oriented trade shows in California or
locally. Attend several leisure/group meeting trade shows representing the City as
appropriate.
7. Serve as the film commission for the County of San Luis Obispo. Serve as the liaison for
filming activities in the region and in the City. Assist in the coordination of film activities in
the City in compliance with City ordinances pertaining to filming.
8. Provide written reports on activities monthly (by noon on the first Wednesday of the
Month) to the City of San Luis Obispo's Administration Department to be included in the
Tourism Business Improvement District Board's monthly meeting packet. At a minimum
the reports shall include:
8.1. Summary of activities & achievements relating to the work scope as outlined in
Appendix A
8.2. Summary of monthly VCB website information and statistics.
8.3. Summary of public relations efforts with travel writers, editors, radio journalists and
television producers including press releases, contacts and media placements.
Discussion of any travel writer trips hosted or planned.
8.4. Summary of advertising placements.
8.5. Summary on Meeting/Group Sales and Film Commission achievements.
8.6. A discussion of City specific public relations and advertising efforts.
8.7. The VCB's year-to-date profit & loss statement including a year over year
comparison.
9. Once a quarter, present the Tourism Business Improvement District Board with a detailed
oral report highlighting achievements as compared to the work scope and elaborate on
upcoming plans and events. Include the presentation of promotional materials as outlined
in the VCB's marketing plan.
VCB Regional Marketing Contract 2009-10
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ATTACHMENT I
GENERAL TERMS AND CONDITIONS
1. Business License & Tax. Contractor must have a valid City of San Luis Obispo business license and
tax certificate prior to 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. 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.
3. Laws to be Observed. 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 its performance of the work.
4. Payment of Taxes. The contract prices shall include full compensation for all taxes which Contractor
is required to pay.
5. Permits and Licenses. Contractor shall procure all permits and licenses, pay all charges and fees, and
give all notices necessary.
6. Safety Provisions. Contractor 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 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.
8. Preservation of City Property. 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 Contractor's operations, it shall be replaced or restored at Contractor's expense. The facilities
shall be replaced or restored to a condition as good as when the Contractor began work.
9. Immigration Act of 1986. Contractor warrants on behalf of itself and all sub-contractors 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. Contractor Non-Discrimination. In the performance of this work, Contractor agrees that it will not
engage in, nor permit such sub-contractors 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 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.
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ATTACHMENT S
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 services provided by Contractor(Net 30).
13. 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 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.
14. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any payment
to Contractor.
15. Interests of Contractor. 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. Contractor further covenants that,,in the performance of this work,
no sub-contractor or person having such an interest shall be employed. 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, Contractor shall at
all times be deemed an independent contractor and not an agent or employee of the City.
16. Bold Harmless and Indemnification. Contractor agrees to defend, indemnify,protect 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
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 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 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.
17. Contract Assignment. 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.
18. Termination. If, during the term of the contract, the City determines that Contractor is not faithfully
abiding by any term or condition contained herein, the City may notify Contractor in writing of such
defect or failure to perform; which notice must give Contractor a 10 (ten) calendar day notice of time
thereafter in which to perform said work or cure the deficiency.
If 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 Contractor to said effect. Thereafter, neither party shall have any
further duties, obligations, responsibilities, or rights under the contract.
In said event, 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 Contractor as may be set forth in the Agreement payment schedule;
compensation for any other work, services or goods performed or provided by Contractor shall be based
solely on the City's assessment of the value of the work-in-progress in completing the overall
workscope.
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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 Contractor 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 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.
20. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by 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 Contractor
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 Contractor is required to fimrnish in limited
quantities as part of the work or services under these specifications, Contractor shall provide such
additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of
such copies at the Contractor's direct expense.
22. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is
attendance by the Contractor to public meetings to present and discuss its findings and
recommendations. Contractor shall attend as many "working" meetings with staff as necessary in
performing workscope tasks.
VCB Regional Marketing Contract 2009-10
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ATTACHMENT 1
Exhibit C
INSURANCE
Insurance. 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 Contractor, its agents, representatives, employees, or sub-
contractors.
a. Minimum scope of insurance. Coverage shall be at least as broad as:
• Insurance Services Office Commercial General Liability coverage (occurrence
form CG 0001).
• Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, code 1 (any auto).
• Workers' Compensation insurance as required by the State of California and
Employer's Liability Insurance.
• Errors and Omissions Liability insurance as appropriate to Contractor's
profession.
b. Minimum limits of insurance. Contractor shall maintain limits no less than:
• 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.
• Automobile Liability: $1,000,000 per accident for bodily injury and property
damage.
• Employer's Liability: $1,000,000 per accident for bodily injury or disease.
• Errors and Omissions Liability: $1,000,000 per occurrence.
C. 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 Contractor shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and
defense expenses.
d. Other insurance provisions. The general liability and automobile liability policies are to
contain, or be endorsed to contain,the following provisions:
• 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 Contractor; products and completed operations of Contractor;
premises owned, occupied or used by Contractor; or automobiles owned, leased,
hired or borrowed by Contractor. The coverage shall contain no special
limitations on the scope of protection afforded to the City, its officers, official,
employees,agents or volunteers.
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• For any claims related to this project, 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 Contractor's
insurance and shall not contribute with it.
• 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.
• 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.
• 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.
e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than A:VII.
f. 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.
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I
Tourism Business Improvement District Board ATTACHMENT 2
Minutes
Wednesday, August 26, 2009 —Special Meeting
2:00 pm
Community Room
City Council Chamber
CALL TO ORDER: Chair John Conner DRAFT
PRESENT: Billing, Wallace, Koper, Mueller
STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst
PUBLIC COMMENT
There was no public comment.
BUSINESS ITEMS
1. LEVEL STUDIOS
Doug Klein and Ryan Allshouse were available to answer questions regarding the proposed
media plan. Doug reiterated that the current media plan is concentrating on destination travel
versus lifestyle. He also mentioned d that they are in contact with other organizations placing
tourism related media buys in order to avoid duplication, but utilize these buys to negotiate
better terms.
ACTION: Moved Wallace/Billing to approve the media plan as presented
Motion carried 4:0
2. SLO VCB FUNDING
John Summer, Executive Director of the VCB reiterated the benefits the current VCB
marketing plan offer VCB members and contributors and also addressed the issue the
current membership structure presents. He presented a new funding model that would
include the City's entire lodging industry and extend all benefits to the TBID's constituency.
He requested a contribution from the TBID for 2009-10 of$95,000.
ACTION: Moved Koper/Mueller to approve the requested contribution for 2009-10 in the
amount of$95,000 Motion carried 3:0
Board members Billing and Wallace abstain from discussion and vote due to a conflict of
interest.
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3. ANNUAL TBID REPORT AFACHMGN 2
Staff had prepared a summary of the 2008-09 activities for the board and needed direction on
the 2009-10 proposed activities.
After discussion, the board defined the following activities for 2009-10:
Proposed Activities for 2009-10
1. Continue marketing efforts to promote the TBID brand and drive traffic to
http://sincerelycalifomia.com to generate bookings for San Luis Obispo hoteliers.
This will be achieved through the contract with the TBID's advertising agency Level
Studios. The contract goes through June 30, 2010.
2. Contract with the San Luis Obispo County Visitors and Conference Bureau for regional
marketing and PR efforts to supplement the San Luis Obispo City efforts and
maximize outreach to potential visitors.
3. Establish a process for grant funding to efficiently and effectively evaluate the many
funding requests the board receives.
4. Evaluate the benefit of participating in tourism related tradeshows and if deemed
important, develop the needed marketing material to participate and promote San Luis
Obispo — Sincerely, California
5. Engage in efforts to attract two major events to San Luis Obispo and evaluate needed
funding to do so.
6. Solicit proposals for merchandise to further promote the TBID's brand "San Luis
Obispo — Sincerely, California"
7. Establish a working relationship with the San Luis Obispo Vintners to jointly promote
the San Luis Obispo wine region and fully integrate their two main events into the
TBID's tourism outreach efforts.
ACTION: Moved Wallace/Koper to approve the annual report including the 2009-10
activities as discussed. Motion carried 4:0
Board member Mueller abstained.
The meeting adjourned at 3:05 p.m.
R71RCHMENT3
Tourism Business Improvement District Board
Minutes
Wednesday, August 12, 2009
2:00 pm
Community Room
City Council Chamber
DRAFT
CALL TO ORDER: Chair John Conner
PRESENT: Wallace, Koper, Mueller
STAFF PRESENT: Brigitte Elke, Principal Administrative Analyst
PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
ACTION: Moved Wallace/Koper to approve the consent agenda as presented.
Motion carried 4:0
BUSINESS ITEMS
1. SLO COUNTY AIRPORT—continued from 7/8/09
Phil `Acri reiterated the current proposal before the board a proposal requested a $25,000
contribution for marketing expenditures in case a airline or service to a new destination
can be secured for San Luis Obispo.
ACTION: Moved Wallace per to approve a $25,000 contribution contingent on new
service_q, ew airline being secured and the financed marketing efforts
b i the San Luis Obispo TBID and all its members.
Motion carried 3:0
B member Mueller abstained.
2. LEVEL STUDIOS
Ryan AllIthe
e and Doug Klein presented the recommen a plan to the board. They
reiteratedesearch findings and evalua ead to their recommendation. Once the
plan is ad, they will st iation with the various media outlets to achieve the most
aggressico or value adds.
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� J ATTACHMENT 3
In order to have ample time to review the extensive material presented, the board decided to
call a special meeting during the week of August 24— 28, 2009 to approve the plagd e
direction to the agency. Staff is to coordinate date and time.
The agency asked the board for approval to buy the UR sanluisobispovacatiion.com
and www.sanluisobispovacation.net in order to a City name reference in the URL. The
URLs will all redirect to www.sincerel c ' nia.com in order to maintain consistent branding.
However, it is assumed that 5-i 11 potential travelers will likely search by city name. The two
proposed URLs will se exposure to all potential visitors.
ACTI Moved Wallace/Koper to approve the two proposed URLs
— Motion carried 4:0
3. PR CONTRACT—conti or 7 8/09
Given that Level S s suggested contracting with the PR firm "On the Horizon", the item
was c indefinitely.
4. SLO COUNTY VISITORS & CONFERENCE BUREAU (SLOVCB)
The SLOVCB's new Executive Director John Summer together with the SLOVCB's board
president Stacie Jacobs presented the organization's marketing plan for 2009-10 and
reiterated the new direction of the SLOVCB. They also addressed the funding request that
was presented to the City of San Luis Obispo for participation in the SLOVCB.
After discussion, the board continued the item to the special meeting to be scheduled
between August 24 and 28, 2009.
The meeting adjourned at 4:30 p.m.
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council memoizan6um
City of an,tuis osispo, aamnistuation
DATE: September 9, 2009
TO: City Council
FROM: Ken Hampian, City Administrative Officer
Prepared by: Brigitte Elke, Principal Administrative Analyst
SUBJECT: CONSENT AGENDA ITEM 3 - REGIONAL MARKETING CONTRACT FOR
THE TOURISM BUSINESS IMPROVEMENT DISTRICT
Staff was made aware that parts of the first paragraph on page 2 of the Council Agenda Report for
Consent Agenda Item 3 were missing in the agenda package.
Attached please find the complete report including the missing language on page 2 of the report.
RED FILE NtmD Copy
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CITY OF SAN LUIS O B I S P O
FROM: Shelly Stanwyck, Assistant City Administrative Officer
Prepared By: Brigitte Elke, Principal Administrative Analyst
SUBJECT: REGIONAL MARKETING CONTRACT FOR THE TOURISM
BUSINESS IMPROVEMENT DISTRICT
RECOMMENDATION
1. As recommended by the Tourism Business Improvement District Board, award a contract
for Regional Marketing Services to the San Luis Obispo County Visitors & Conference
Bureau.
2. Authorize the Mayor to execute the contract.
DISCUSSION
Background
In June 2008 Council established the Tourism Business Improvement District (TBID) in the City
of San Luis Obispo and appointed an advisory board to advise Council on the use of the
assessment funding. The use of the funds is defined in Municipal Code Section 12.42.030 as
follows:
"...to provide revenue to defray the costs ofservices, 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. "
Prior to the establishment of the TBID, tourism promotion had been administered through the
City's Community Promotions program under the Promotional Coordinating Committee (PCC).
As part of its efforts, the PCC had contracted over the past years for tourism marketing, Public
Relations (PR), and regional advertising.
In 2009, in order to better define the roles of the two advisory bodies, the City's promotional
strategy was divided into the two categories traditionally addressed in tourism marketing:
external and internal marketing. The TBID Board would concentrate its efforts on external
marketing to bring overnight tourists to San Luis Obispo. The PCC would focus on internal
marketing and concentrate its efforts on beautification, City events promotion, entertainment, and
shopping/dining in San Luis Obispo. This approach was adopted by the City Council with the
2009-11 Financial Plan.
r
Council Agenda Report—TBID RFP for Marketing Services
Page 2
Regional Marketing Services
For many years, the PCC had contracted with the San Luis Obispo County Visitors and
Conference Bureau (SLOVCB) to promote the advantages of San Luis Obispo County as a
destination for tourists seeking to visit the Central Coast. The committee held that the City's
tourist amenities become more attractive when marketed as the central location for all county-
wide destinations. The SLOVCB was and continues to be in a unique position to accomplish this
aim in an efficient and economical manner for the City.
However, given the new division of responsibilities between the two advisory bodies, the
activities of the SLOVCB were considered closer related to the aim of the outward looking
TBID.
TBID Review and Recommendation
At its August 12, 2009 regular board meeting, the TBID board had scheduled a review of the
SLOVCB's proposal to the TBID for regional marketing services. John Summer, the SLOVCB's
new Executive Director, presented the SLOVCB's marketing program to the TBID Board and
elaborated on the benefits to the TBID's constituency. The Board continued the item to the
August 26`x' Special meeting in order to review the presented material and consider the request. .
On August 26, 2009 the TBID Board held a special meeting and considered the SLOVCB's
proposal. After brief discussion, the Board voted unanimously to support the funding request of
$95,000(Attachment 2—Draft Minutes).
The SLOVBC is uniquely positioned to execute regional marketing as its core mission is to
position, brand and promote San Luis Obispo County as a choice destination for regional,
national and global visitors. All incorporated cities, as well as the County's unincorporated areas
partner with the SLOVCB for regional marketing services which makes its approach and services
efficient and economically feasible. In this instance it is appropriate to enter into an exclusive
contract with the SLOVCB.
Under the proposed contract, specific services to be provided by the SLOVCB for regional
marketing include: the development and implementation of promotional campaigns in
coordination with the City's TBID marketing goals and objectives, provision of information that
suits the needs of visitors and conference attendees; maintenance of electronic information
services; developing group business and attend tourism related conferences; create and
implement a coordinated marketing campaign for the San Luis Obispo County region; acting as
the city- and countywide film commission; and disseminating and promoting the City's brand
image for community promotions.
In previous years, the City had contributed $73,368 to the SLOVCB based on a fair share
formula. The current amount recommended by the TBID Board includes the same fair share
portion as well as the membership amount due for all of the City's hoteliers.
1 "
Council Agenda Report—TBID RFP for Marketing Services
Page 3
Notably by fully funding the SLOVCB in 2009-10, it has agreed that all members of the
organization, regardless of industry, will receive a 25% discount on their membership dues. In
total there are 64 members in San Luis Obispo that will benefit from this discount.
FISCAL IMPACT
According to the City's Financial Plan, the TBID is estimated to raise $837,000 for tourism
marketing and promotion in 2009-10. Thus far there is contractual commitment with Level
Studios in the amount of$500,000, leaving sufficient funding for the contract with the SLOVCB
for$95,000.
ATTACHMENTS
1. Agreement
2. Draft TBID Board Minutes—Special Meeting August 26, 2009
3. Draft TBID Board Minutes—Regular Meeting August 12, 2009
Council Reading File
SLOVCB Marketing Plan for 2009-10