HomeMy WebLinkAbout07/18/1989, 1 - CONSIDERATION OF THE PROMOTIONAL COORDINATING COMMITTEE'S FUNDING RECOMMENDATIONS FOR CITY PROMOTIO IoNI���I�►�NIIIIIIIIIIIlulll f ME ING DATE:
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aINGN� COIJNCIL AGEN®A REPORT ITEM NUMBER:
FROM: Bob Van Sickel, CAO Intern
Via Nancy Knofler, SACAO
SUBJECT: Consideration of the Promotional Coordinating Committee's
funding recommendations for City promotional services.
CAO RECOMMENDATION:
Approve the recommendations of the Promotional
Coordinating Committee, and authorize staff to develop
and execute contracts with each of the funded agencies.
BACKGROUND:
ADVERTISING SERVICES CONTRACT (Attachment "A") : The Promotional
Coordinating Committee (PCC) began its advertising services contract
renewal process by notifying local agencies of the opportunity to bid
for these services. During March 1989, City staff mailed announcements
to forty-nine advertising and public relations companies, and notices
were printed in the Telegram-Tribune.
Thirteen agencies responded by picking up application packets at City
Hall. Yet, as of the closing application deadline of April 28, 1989,
the PCC had received only one completed proposal. This was submitted
by S.J. Francis and Associates, the current holder of this contract.
Staff contacted several agencies that had voiced a previous desire to
submit bids, in order to ascertain some reasons for the low level of
positive responses.
Some of those contacted simply felt that their agency was not
sufficiently equipped to provide the City with the desired program, and
some merely failed to complete the bid by the deadline. Others
perceived the current contract holder, S.J. Francis and Associates, as
having an advantage in the process which they felt would be difficult
to overcome. The general impression of staff is that there are simply
very few "full service" advertising agencies locally, and that the City
may wish to make more of an effort to encourage out-of-the-area firms
to bid on future contracts.
To date, the PCC has been satisfied with the performance of S.J.
Francis and Associates. Reporting is consistently submitted on time,
and in-person monthly reports are given to the PCC. S.J. Francis and
Associates has worked well with the Chamber of Commerce and the VCB to
avoid duplications of service. Upon reviewing this agency's proposal
for the coming year, the PCC voted unanimously to recommend selection
of S.J. Francis and Associates as City Advertising firm for FY
1989-90. The cost of this contract would not exceed $73 , 500, which
constitutes a 5% cost of living increase over last year' s expenditure.
This is the funding amount approved by the City Council at its joint
meeting with the PCC in January, 1989 .
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city Of San LUIS OBISPO
WRIZe COUNCIL AGENDA REPORT
VISITOR'S AND CONFERENCE BUREAU CONTRACT (Attachment "B") : The VCB is
proposing to continue the same program that they have provided for the
past two years. The only substantive difference is that the VCB, as of
July 1, became an independent agency and is no longer part of the SLO
Chamber of Commerce.
The VCB continues to seek funding from other regional cities, as well
as from the County of SLO. Prospects appear good that the County and
the Cities of Morro Bay and Pismo Beach will provide funding to the VCB
in the coming year. The VCB has requested that each governmental
entity grant a funding amount which is equal to 3 .5% of that entity's
bed tax revenues. For the City of San Luis Obispo, that would
constitute $40, 180. This is the amount that the VCB is requesting for
the coming year.
The City Council has previously approved a prospective funding level of
$35,700, which constitutes a 5% cost-of-living increase over last
year's contract amount.
At its June meeting, the PCC unanimously voted to recommend the higher
figure of $40, 180 to the City Council. Though the staff recommendation
to the PCC, at that time was for the previously-approved Council amount,
the Committee believes that the City should maintain the 3 . 5% figure
for this year, as opposed to a simple cost-of-living increase.
CHAMBER OF COMMERCE CONTRACTS (Attachment "C") : The City maintains two ;
contracts with the San Luis Obispo Chamber of Commerce -- one contract
for the Chamber Visitor's Center and one contract for City promotional
services. The Chamber is not proposing any changes to its promotional
agreement. They are planning the same scope of activities as last year
for this program.
For the Visitor's Center program, however, the Chamber states that they
lost $39, 000 last year. Their costs have "skyrocketed, " yet the City
continues to allow for only 5% cost-of-living increase each year.
Accordingly, the Chamber is requesting that they be allowed to
discontinue the toll-free telephone number at the Center. They
estimate that only about 2% of their inquiries come in on this line,
which they say is not cost effective. They do not expect to lose a
large number of inquiries by disconnecting this number. The Chamber
says that they would be willing to maintain the 800 number, but are
unable to do so given the City's current funding levels.
The PCC has voted unanimously to recommend approving the Chamber of
Commerce contracts as submitted, including the deletion of the toll
free telephone number. The total amount of the two contracts would not
exceed $72, 000.
FISCAL IMPACT•
On January 23, 1989, the City Council approved prospective funding
levels for the coming year's advertising and promotional contracts.
The Council approved tentative funding levels of $72 , 000 for the
Chamber of Commerce Visitor's Center and promotional services; $35,700
for the Visitor's and Conference Bureau; and $73 , 500 for a professional
advertising services contract. Again, these figures constitute a 5%
increase over last year's figures.
��� ►rN�IVhI���IJJp ��� city of san tins oBispo
MftZe COUNCIL AGENDA REPORT
The PCC recommendations for the Chamber of. Commerce and the Advertising
services contracts correspond to the above figures. However, the PCC
is recommending $40, 180 for the VCB, an amount which is $4, 480 higher
then the Council has authorized.
If the. City Council approves the recommendations as submitted, then the
above monies would be expended from the general fund.
ALTERNATIVES•
1. Accept the recommendations of the PCC, and direct staff to
develop contracts with each of the funded agencies, for total funding
package of $185, 680.
2 . Approve funding only at the previously earmarked levels, and
direct staff to develop and execute contracts for a total of $181, 200.
3 . Approve funding for the Chamber of Commerce and VCB contracts,
but choose to either deny awarding the advertising services contract to
S.J. Francis and Associates and/or to again put this contract out for
bid.
4. Return the recommendations to the PCC for further study and
investigation, based upon the Council's particular comments and
concerns.
5. Review the recommendations of the PCC, and make adjustments
regarding funding levels and services provided for each of the
contracts. The Council may thus alter the recommendations without
further review of the PCC.
In considering the PCC recommendation to award the VCB a higher amount
($40, 180) , based upon the 113 . 5% of bed tax" formula, the Council may
wish to address the issue of equity between the four promotional
contracts. Awarding only one agency an increase of more than 5% may
set a precedent which effectively negates this 5% across-the-board
option. Additionally, the Council may wish to consider whether
significantly increasing tourism promotion during a time of severe
water shortages is desirable..
RECOMMENDATION.
Approve the recommendations of the Promotional Coordinating Committee,
and direct staff to develop and execute contracts with each funded
agency.
ATTACHMENTS:
eso utioffs
A: A S.J. Francis and Associates Proposal and Draft Contract
B: A Visitor's and Conference Bureau Proposal and Draft Contract
C: n Chamber of Commerce Proposal and Draft Contracts (2)
pccII.:pccontrc
rwv/233une89
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RESOLUTION NO. (1989 Series)
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL
APPROVING AN AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
SJ FRANCIS AND ASSOCIATES FOR THE CONTINUATION OF PROFESSIONAL
SERVICES ON BEHALF OF THE CITY OF SAN LUIS OBISPO
WHEREAS, City desires to retain certain professional services in
conjunction with an advertising 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 required
services on the terms and in the manner set forth herein.
NOW, THEREFORE, BE IT RESOLVED that the services agreement
(Exhibit A) is hereby approved; and
BE IT FURTHER RESOLVED that the Mayor is authorized to execute the
agreement. When the agreement is executed, the City Clerk shall furnish
a copy of this resolution and a copy of the executed agreement to
Sallie Francis, President, SJ Francis and Associates.
On the motion of Councilmember seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
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The foregoing resolution was passed and adopted this day of
1989.
MAYOR RUN DUNIN
ATTEST:
CITY CLERK PAMELA VOGES
APPROVED:
City A inistra ive Officer
ty At ey
F1 ce Director
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EXHIBIT "A"
PROFESSIONAL SERVICES AGREEMENT
TO PROVIDE ADVERTISING SERVICES
This agreement is made this day of 1989, by and
between the CITY OF SAN LUIS OBISPO, California (hereinafter referred
to as "City") , and SJ FRANCIS & 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 supervis
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.
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2. DUTIES OF CONTRACTOR:
a. Services to be furnished. Under general direction of the
Program Manager,Contractor shall provide all specified
services as set forth in "Exhibit 1" , attached hereto and
incorporated herein by this reference, or as amended by the
PCC.
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, amd 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 provision 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 vCB without the prior written approval of the City' s
Program Manager.
d. Copies of reports and information. If City requests
additional copies of reports, dr9wings, 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 iF-
qualified to furnish the services described under this
agreement.
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In addition to the Promotional Advertising Agreement, the City
contracts with the Chamber- of Commerce and the VCB for
visitors and conference 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 Visitors and Promotion
agreements.
3 . DUTIES OF THE CITY:
City agrees to cooperate with Contractor in its performance of
that work described in Exhibit 11111 , 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 "i" attached hereto and incorporated by this reference, as
currently exists or may be amended.
5. TIME FOR COMPLETION OF THE WORK:
Program is for the period July 1, 1989 to June 30 , 1990 .
Contractor shall perform services in a timely manner upon
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. Richt 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
turn 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 transparancies.
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 Pamela Voges, City Clerk
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, Ca.
93403-8100 / 9
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To Contractor: . . . . . . . . . ... . . . . . . . . SJ Francis & Associates
1137 Vista del Lago
San Luis Obispo, 93401
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 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 any 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
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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 comprehensive general
liability insurance in the amount of ($500, 000) .
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 of 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 k
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 party 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) fi )
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 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 supercedes 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.
EXHIBIT 1
The Contractor shall coordinate and implement the year-round
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 off-season
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's Program Manager will give the Contractor direction
based upon monthly review of Contractor' s performance and
recommendations.
4 . The specific advertising campaign shall be as listed in the
attached proposed City of San Luis Obispo Promotional
Campaign, unless modified by the PCC.
5. Payment to the Contractor will be made on all completed work,
jobs in progress and media purchases approved by the PCC.
within 15 calendar days of receipt of Contractor' s invoice.
Requests for payment can be included in the monthly report to
the PCC, sent directly to the PCC, or sent directly to the
Program Manager.
SJ Francis & Associates proposes the following budget for promoting
tourism to San Luis Obispo:
Media Budget $58 , 000
Ad production (1 4C ad, 2 B/W ads, 1 postcard) $ 5, 000
Radio Promotions coordination $ 41000
Printing $ 2 , 000
Direct Mail Expenses* $ 4 , 500
TOTAL for FY 1989-90 $73 , 500
* Includes printing postcard, list preparation, handling and postage.
Does not include computer or software purchases.
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IN WITNESS WHEREOF, City and Contractor have executed this
agreement on the day and year first above written.
SJ FRANCIS & ASSOCIATES
By
President
CITY OF SAN LUIS OBISPO
By
Mayor Ron Dunin
ATTEST:
Pamela Voges, City Clerk
Tourism Promotion Plan
for the
City of San Luis Obispo
Prepared by
SJ FRANCIS & ASSOCIATES
April 28, 1989
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INTRODUCTION
SJ Francis & Associates is pleased to present the City of San Luis Obispo with a
proposal to increase tourism to the City.
Accompanying this proposal are samples of work, background information on the
agency and professional references.
When you decide on an advertising agency, it will be to your benefit to select an
innovative Firm familiar with travel promotion, government agencies and the special qualities
of San Luis Obispo. It is also important that you work with a firm that has experience in
creative thinking, ad planning and production, media buying, publicity and promotions.
SJ Francis & Associates meets these requirements.
OBJECTIVES AND PHILOSOPHICAL APPROACH
One of the first decisions in a promotional campaign is positioning. How do we want
the potential visitor to think about San Luis Obispo? How do we want him (or her) to fee!
about our city?
When we position San Luis Obispo, we place it in a certain way in the prospect's
mind. This is accomplished through a positioning statement. A positioning statement should
• Define what San Luis Obispo offers visitors
• Set the city apart
• State a meaningful benefit to our target market
• Establish a distinctive personality
A sample positioning statement for the city is:
San Luis Obispo is a friendly university city. It mixes small-town pride
and gusto with metropolitan appreciation for scenic beauty and cultural
expression. San Luis Obispo refreshes the visitor with its beautiful setting,
gentle recreation and friendly residents. -- \
The visitor can make eye contact with strangers, feel secure asking
them questions and abandon any pretentiousness necessary in city life.
Tourists can explore historical and cultural landmarks, shop in an old-
fashioned downtown, enjoy diverse dining and partake in unusual
festivities and events. Plus, visitors can use San Luis Obispo as their
base for seeing other county attractions, including Hearst Castle,
beaches and wineries.
Once we agree on how to position the city, the next step is to set the strategy. SJFA
recommends defining these five points to create a strategy statement for promoting tourism:
1. The objective—What we want the promotional campaign to accomplish. Is it to
motivate people to send for the free brochure? Increase awareness of San Luis Obispo as a
destination? Bring people directly to San Luis Obispo to spend at least one night? Entice
visitors to stay longer? By defining what is to be accomplished, we can plan how to
accomplish it..
2. The target market—Pinpointing who the most likely visitors are. This leads to
selecting appropriate magazines and newspapers for advertising placement.
The Chamber of Commerce has found that approximately 50% of San Luis Obispo
visitors are from Southern California, 30% are from the San Joaquin Valley and 20% are from
the Bay Area. The Bay Area is the fastest growing group of visitors.
Research conducted for the California Department of Commerce shows that
Californians who travel 100 miles or more for pleasure trips within the state are
• Slightly older than the general population (median age 48.1 years vs. 45.5 years)
• More highly educated (68.8% had at least some college vs. 61.8%)
• Have a higher household income (median $41,100 vs. $34,300)
• Own their homes (73.5% vs. 64.9%)
• Are employed in professional/technical or managerial occupations (34.3% vs. 24.0%)
It is vital to consider the target.markets' lifestyles in addition to their demographics.
Designing a promotional campaign targeted towards affluent adults aged 35-55+ who live in
southern California,-the San Joaquin Valley and the Bay Area, hold professional jobs, and are
interested in what San Luis Obispo offers will bring results.
3. The consumer benefit—Make it a meaningful benefit. This is pulled straight
from the positioning statement. Highlight the benefit in all promotions.
4. The support to make the benefit believable—Give facts, use testimonials, show
photographs. Be precise.
5. The tone and manner—Let the personality show. San Luis Obispo is friendly,
fun-loving, unpretentious, culturally rich and proud. Express it.
Finally, stick with the strategy. Once the basic nature of the promotional campaign is
decided, has been tested andperfected, stay with it. Virginia's tourism campaign "Virginia is
for lovers" endured for 14 years and through three governors, was dropped for something
new—then brought back. It still brings results.
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SUMMARY OF PROMOTIONAL CAMPAIGN j
SJFA proposes coordinating a mixture of advertising, radio promotion and direct mail
to lure the traveler to San Luis Obispo.
Advertisements
SJFA recommends creating a 1/3 page (1 magazine column) four-color ad for
placement in select magazines. The ad would reflect the five-point strategy.
Compared with black and white and two-color ads, four-color ads have pulled
extremely well in the past two years. More than 12,000 ad responses were received from the
1987-88 campaign and 10,000 responses are expected from the 1988-89 campaign. (There
were approximately 1200 responses from the two-color ad campaign of 1986-87.)
Ads would be placed in key travel magazines, regional and city publications and
Sunset. Ad placement will be coordinated with the Visitor and Conference Bureau's ad
placements. 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 specific audience. They provide high
quality ad reproduction. They are read in a leisurely environment. They also have a longer life
compared to newspapers. However, 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 different newspapers at key times in the off season.
If, for instance, the San Joaquin Valley is trapped in winter fog, that provides the perfect
opportunity for advertising sunny, warm San Luis Obispo. Or, when southern California is
smothered by Indian Summer smog, the City can advertise bright, blue skies and sweet ocean
breezes.
The tiny 1-column by V newspaper ads have pulled very well. SJFA suggests running
additional 1 x 1" ads and testing them against 1 x 2" ads.
All print ads will encourage response to the Chamber, whether by calling the 800
number, writing for information or using a Reader Response card. The Chamber staff does an
excellent job of tracking ad responses, giving us an accurate measure of ad effectiveness.
A sample media selection and budget is included.
Radio Promotion
SJFA recommends repeating and expanding the winter radio promotion. In the 1988-
89 campaign, the KFRE promotion increased the City's ad dollars by 49%. The City gained.
more than $26,000 in exposure through this one promotion.
SJFA proposes giving weekend trips for two to San Luis Obispo as prizes in two radio
promotions. One station would broadcast from Fresno, the second from Bakersfield.
During the promotion, the radio station would broadcast facts and trivia about San
Luis Obispo furnished by SJFA. This exposure would be free. The prizes would be for one,
night's lodging, dinner-for-two one evening, Sunday Brunch for two and perhaps a small
basket filled with San Luis Obispo products. Hotels, motels and restaurants in the city would
donate rooms and meals in exchange for promotional mention on the radio.
This type of special event would focus attention on San Luis Obispo during the off
season and give the City free radio exposure to a.large number of people just a 2 1/2-hour
drive away. Effectiveness would be partially measured by the amount of air time San Luis
Obispo received and the number of phone calls to the 800 number.
Direct Mail
At the end of the current ad campaign, the city will have invested $52,500 (FY 1988-
89 media budget) to acquire names and addresses of 10,000 people who responded to City
advertisements. These 10,000 people specifically requested visitor information about San
Luis Obispo. They were promptly mailed the city brochure and a "Thanks for your request"
note.
SJFA proposes making additional use of these valuable names by employing direct
mail. Mailing a picture postcard with an appropriate message to each ad respondent could be
that extra touch that converts an ad response to a visit—or a repeat visit.
An example is a postcard with a color photo of the farmer's market. The message on
the back could be:
Everyone loves San Luis Obispo's lively Farmer's Market.
Held downtown every Thursday evening, the fun begins at
6:00 p.m. Call the San Luis.Obispo Chamber of Commerce at
805/543-1323 for a free Farmer's Market brochure.
Start your weekend with us one day early!
Come to San Luis Obispo on a Thursday and
- enjoy our weekly Farmer's Market. You can
dine on barbecued beef ribs, chicken or even
l-�D
oysters, enjoy juggling acts and select farm
-fresh fruits and veggies. Spend the rest of your
weekend exploring the Mission, Victorian
neighborhoods and nearby beaches; wineries
or Hearst Castle. Call us today for a free, fun
brochure on Farmer's Market!
Postcards would be mailed a few months after the initial ad response. Postcards could
promote an annual event, a seasonal occurrence ("The whales are migrating!" "The wild
flowers are blooming!") or a special benefit ("Summer time crowds are gone—have the City
to yourself!").
A response mechanism will be built in to the postcard to give us a way to measure
effectiveness.
Market Research
At present, we do not know how many of the people who respond to the ad campaign
actually come to San Luis Obispo. We also lack specific lifestyle information about our target
markets in southern California, the San Joaquin Valley and the Bay Area.
The City needs to pinpoint who comes to San Luis Obispo and why. This further
understanding of our target markets and the attractions San Luis Obispo holds for them will --
make tourism advertising much more effective.
SJFA recommends commissioning a market research study to learn more about
current and potential San Luis Obispo tourists. Good market research requires research
professionals and money. SJFA recommends that the City increase the proposed ad budget
by at least 25% to finance professional market research.
This investment should be viewed over a 10-year period. Accurate market research
that is used wisely can make the City much more competitive in tourism promotion.
Additional Suggestions
SJFA suggests that the City initiate additional attractions and activities that would
benefit tourists and residents. San Luis Obispo competes head-on with Santa Barbara,
Monterey and cities within our county for tourists. The City must consider the future and
what visitors and residents will want and enjoy.
Walking tours are popular and would be relatively simple to create.
Staging a wintertime "SLO Gourmet Fair" featuring locally created food and beverage
products would appeal to residents as well as visitors.
1
Establishing a botanical garden with a daytime conference center is thinking very big,
but it may be feasible. Visitors and residents would frequent the garden. The conference
center could be used for weddings, dances, large private parties and, naturally, meetings in a
garden setting.
San Luis Obispo offers visitors many attractions and activities now, but must
anticipate future tastes and needs to stay competitive.
` 1
GENERAL SCHEDULE j
According to Chamber of Commerce research, occupancy rates in San Luis Obispo are
lowest between November and March. SJFA suggests running the majority of print ads
between September and May.
The two radio promotions would be run at the same time, in January and February.
This takes advantage of traditionally yucky weather in the San Joaquin Valley and the post-
Christmas slow advertising season.
Direct mail postcards would be mailed to ad respondents one to two months after their
request for visitor information.
BUDGET DISCUSSION
The majority of the funds would be used to purchase ad space in magazines and
newspapers. A sample media plan is attached.
SJFA proposes preparing
• 1 four-color 1/3 page magazine ad to run in glossy magazines
• 1 black & white I column x 4" ad for Sunset
• 2 black & white 1 column x I" ads for newspapers
• 1 6" x 4" postcard with message for direct mail
The following estimate is based on ideas presented in this proposal. All costs are
approximate.
Media budget $58,000
Ad production (1 4C ad, 2 B/W ads, 1 postcard) $ 5,000
Radio Promotions coordination $ 4,000
Printing $ 2,000
Direct Mail expenses* $4,500
TOTAL for FY 1989-90 $73,500
*Includes printing postcard, list preparation, handling and postage. Does not include computer
or software purchase.
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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
• Establish or enhance San Luis Obispo's image
• Maintain market share of visitors
• Bring first-time tourists to the city
• Increase the possibility for 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. Thank you for considering SJ Francis & Associates.
This is a proposal, not a firm action plan, and therefore is open to discussion. In the event that
SJFA is not selected to handle tourism advertising for the City of San Luis Obispo, we
request that this and any copies of this proposal be returned to SJFA by June 16, 1989.
PROJECT MANAGER
SJ Francis & Associates is owned by Sallie J. Francis. Sallie has lived and worked in
San Luis Obispo for 17 years. A journalism graduate of Cal Poly, Sallie has worked in the
advertising and public relations profession since 1976.
SJ Francis & Associates contracts with several talented freelance professionals for
photography, radio and TV production, graphic design and other services.
Creativity is not a function of size and small is not necessarily limiting. SJ Francis &
Associates has the talent, innovation, desire and experience to handle the promotional
campaign for the City of San Luis Obispo.
SALLIE J. FRANCIS
Experience
Sallie brings more than 16 years of advertising and public relations experience to SJ
Francis & Associates. A resident of San Luis Obispo County since 1972, Sallie offers
proven experience in the advertising profession and tourism promotion.
Sallie has worked as a media buyer for an advertising agency, promotional coordinator
for the San Luis Obispo Chamber of Commerce, promotions manager for a resort in the
Bahamas and manager of the County RideShare Program. She managed public relations
and promotions for a hotel management company and was a full partner in another
advertising agency before forming SJ Francis & Associates.
Sallie has vast experience in promotional planning, media selection and ad placement.
She has produced effective newspaper, magazine, radio and TV advertisements and
public service announcements in addition to numerous brochures and newsletters.
Sallie is also highly skilled at special event production. While managing the San Luis
Obispo County RideShare Program, she initiated and coordinated the first California
state-wide RideShare Awareness Week. She also created an out-of-town radio
tourism promotion that boosted a client's ad budget by 49%.
Memberships
Public Relations Society of America
Promotional Coordinating Committee, City of San Luis Obispo, 1986-87
San Luis Obispo Chamber of Commerce
�� 7
C, SJ FRANCIS & ASSOCIATES
SJ Francis & Associates offers you a full range of promotional capabilities.
We work with you to achieve your objectives. We combine your thorough knowledge
of your business with our advertising expertise. The result is promotional work that sets you
apart from your competition and brings results.
• Structure
As a small agency, we place high emphasis on client service. You have direct access
to top talent working on your account. We are flexible and able to quickly respond to fast
-breaking changes.
Creativity
A creative approach has impact. It grabs the attention of your audience so they can
receive your message. However, we do not believe in creativity for its own sake. We balance
information about your business, the marketplace and the community with creative thinking.
This assures you of a campaign that stands out from your competition.
Cost-Consciousness
1 Successful advertising must be cost effective. We are as prudent with your money as
we are with our own.
• Professional Contacts
After working in this profession for many years, we have developed an extensive
network of relationships. Media contacts, appropriate suppliers, freelance talent and resource
people are available to us and, therefore, your account.
• Philosophy
We believe that a client and its advertising agency enter into a partnership. We see
things through your eyes, yet offer objectivity. We strive to anticipate rather than wait to
react.. And we're never satisfied with "good enough."
PROFESSIONAL REFERENCES —
David Garth
Chamber of Commerce
543-1323
Dodie Williams
Business Improvement Association
541-0286
Paul Kuzniar
The KuzniatGroup
213/396-6115
John Wallo
Engineering Dept. of San Luis Obispo County
595-5258
C:
RESOLUTION NO. (1989 Series)
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL
APPROVING AN AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE
COUNTY OF SAN LUIS OBISPO VISITORS AND CONFERENCE BUREAU
WHEREAS, City desires to support a coordinated marketing program
for San Luis Obispo as a visitors and conferencing locale; and
WHEREAS, the coordination and development of enhanced visitors and
conferencing trade is an appropriate adjunct to the proper promotion of
the City; 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 required
services on the terms and in the manner set forth herein.
NOW, THEREFORE, BE IT RESOLVED that the services agreement
(Exhibit A) is hereby approved; and
BE IT FURTHER RESOLVED that the Mayor is authorized to execute
said agreement at such time as the County authorizes participation at
the requested prorata level.. When the agreement is executed, the City
Clerk shall furnish a copy of this resolution and a copy of the
executed agreement to Jonni .Eylar, Director, County of San Luis Obispo
Visitors and Conference Bureau.
On the motion of Councilmember ,seconded by
and on the following roll call vote: '
AYES:
NOES:
ABSENT:
�-�3a
The foregoing resolution was passed and adopted this day of ,
1989.
MAYOR RON DUNIN
ATTEST:
CITY CLERK PAMELA VOTES
APPROVED:
ity AdmkinistraElve Officer
t
Atto e
Financ erector
EXHIBIT "A"
PROFESSIONAL SERVICES AGREEMENT
TO OPERATE A VISITORS AND CONFERENCE BUREAU
This agreement is made this day of , 1989, by and between
the CITY OF SAN LUIS OBISPO,. California (hereinafter referred to as
"City") , and the County of San Luis Obispo Visitors and Conference
Bureau (hereinafter referred to as "Contractor") .
WITNESSETH:
WHEREAS, City desires to support a coordinated marketing program
for San Luis Obispo as a visitors and conferencing locale; and
WHEREAS, the coordination and development of enhanced visitors and
conferencing trade is an appropriate adjunct to the proper promotion of
the City; and
WHEREAS, City desires to maintain and enhance its market share in
an increasingly competitive environment; 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 Project 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 Project Manager
to have overall responsibility for the progress and execution
of this agreement for Contractor. Jonni Eylar is hereby
designated as the Project 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.
i
2. DUTIES OF CONTRACTOR:
a. In addition to this Visitors and Conference Bureau (VCB)
Agreement, City contracts with the San Luis Obispo Chamber of
Commerce for visitors and promotional services. The City
separately contracts with an independent agency to provide
promotional advertising services. The VCB 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 VCB agrees to make every reasonable
effort to coordinate activities and to identify and avoid
duplication of costs associated with the Promotional Services,
the Visitors Center, and Promotional Advertising Agreements.
b. Services to be furnished. Contractor shall provide all
specified services as set forth and incorporated herein by
this reference.
C. VCB will maintain an office suitable for the conduct of a
visitors and conference bureau. This office shall be open
during normal office hours to facilitate contact with
conference representatives.
d. VCB staff shall include personnel qualified in visitors and
conference bureau administration.
e. VCB shall conduct a visitors and conference bureau on behalf
of City as outlined here below or as may be modified from time
to time by mutual agreement between the City and the VCB.
f. The program conducted by the VCB shall include, but not be
limited to the following:
1. Development of direct sales efforts to attract group
business and conferences. Major markets would include Los
Angeles, San Francisco, Bakersfield and Fresno.
2 . Attendance and representation of San Luis Obispo County at
major travel and sales shows during the contract time period.
3 . Coordination of scheduling for potential conferences with
individual properties in San Luis Obispo County.
4 . Development of new, coordinated county wide sales materials
and brochures to be used in the marketing program.
5. Creation and implementation of a coordinated and planned
/-33
C marketing campaign, stressing the benefits of the San Luis
Obispo area as a destination for visitors.
6. Submittal of a quarterly report on the progress of the vCB
to the City's Proiect Manager, and the Promotional
Coordinating Committee.
g. All services provided by the Contractor listed within this
agreement are in addition and beyond those of any and all
other contracts currently held between the City and the
Contractor.
h. 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, amd 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 provision of
this agreement.
i. 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.
j . Qualifications of Contractor. Contractor represents that it is
qualified to furnish the services described under this
agreement.
3 . DUTIES OF THE CITY:
City agrees to cooperate with Contractor and to perform work
described hereto and incorated by this reference. The City
Project 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
/-3y
such is reasonable.
4 . COMPENSATION•
The Contractor will perform the work as described and as directed
by the City's Project Manager.
a. City will pay the Contractor the sum of $40, 180 (forty
thousand, one hundred eighty dollars) for office space,
staffing, and expenses, to be paid in two installments,
$20, 090 (twenty thousand, ninety dollars ) on August 1, 1989,
and $20, 090 (twenty thousand, ninety dollars) on January 1,
1990.
5. TIME FOR COMPLETION OF THE WORK:
Program is for the period July 1, 1989 to June 30, 1990.
Contractor shall perform services in a timely manner upon
direction and guidance from City Project Manager and PCC.
Contractor acknowledges timing is at the sole discretion of
City.
6. TEMPORARY SUSPENSION:
The City Project Manager shall. have the authority to suspend
this agreement wholly or in part, for such period as he deemr-
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 . SUSPENSION; TERMINATION•
a. Right to suspend or terminate The. City retains the right to
terminate this agreement for any reason by notifying
Contractor in writing sixty (60) days prior to termination a
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 t,
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.
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 Project 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:
Because of several cities' involvement with the Visitors and
Conference Bureau, all materials, photos,. drawings, and other
original materials shall remain the property of the Bureau.
The City shall have free, reasonable and timely access to use
of these materials.
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 Pamela Voges, City Clerk
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, Ca.
93403-8100
To Contractor: San Luis Obispo County
Visitors and Conference Buret:
1041 Chorro Street, Suite E
San Luis Obispo, CA 93401
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 al r
times be deemed an independent contractor and not an agent or
employee of 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 any 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 th(
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 comprehensive general
liability insurance in the amount of ($500, 000) .
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 of 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 party 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 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
x-38
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 supercedes 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..
F COUNTY OF SAN LUIS OBISPO
VISITORS ' AND CONFERENCE BUREAU
By
President
CITY OF SAN LUIS OBISPO
By
Mayor Ron Dunin
ATTEST:
Pamela Voges, City Clerk
y
San Luis Obispo County
Visitors & Conference Bureau
1989/90 Tourism Promotion Agreement
SCOPE OF SERVICES:
The San Luis Obispo County Visitors & Conference Bureau (VCB)
plans and executes a complete marketing plan which includes
advertising and promotions, participation at travel trade shows,
brochure development, publicity, assistance with group and
conference planners, and market research.
Advertising: The VCB' s advertising campaign consists of black &
:j-j7ite ads which run in major general interest and/or travel
oriented magazines in California and newspapers in our major
in-state markets (see attached media schedule) .
Promotions: The VCB conducts familiarization tours with travel
agents, tour operators, film producers, and travel writers.
Promotional events also include monthly visitor recognition
awards.
l
Trade Shows: The VCB attends trade shows targeted to travel
agents, tour operators, corporate and association meeting
planners, and general consumers. The VCB will continue its
membership with the Central Coast Marketing Council (CCMC) which
further augments our trade show schedule.
Brochure: The VCB has produced three brochures, the 4/color
"Jewel of the Central Coast" , the 2/color accommodations guide
and the 2/color member directory. Production will be limited
to the reprinting of the accommodations guide and member
directory. Distribution will continue through McClellan
Corporation, at all trade shows, and to all ad respondents.
Publicity: Monthly newsletters will continue to be produced and
sent to businesses throughout the county. Press releases and
press kits are produced and sent to travel writers in our
markets. Our association with the State Office of Tourism
produces many travel writer visits for the county which the VCB
coordinates.
Group Business: The VCB's focus has been in the solicitation of
corporate meetings as well as association business. In addition
to group sales, VCB conference services range from site and
activity referrals to assistance with registration and special
tours of the county.
Market Research: The VCB is continually requesting information
regarding occupancy rates, origin of visitors, and group business
from its members. Though not everyone is cooperative, more and
more members are providing the information requested. Economic
research is compiled by the California Department of Commerce.
1041 Chorro Srreer. Suite E. San Luis Obispo. California 93401 (505) 541-5000
C °
1989/90 Program Highlights: The focus for the 1989/90 season is
much more results oriented than ever before. In advertising,
newspapers have been cut back significantly because more
responses are generated from the magazine ad placements. The
possibility for duplication is decreased as many of the other
cities in the county advertise in the same newspapers. The VCB
will produce its first 4/color ad for an annual publication
produced by the Office of Tourism and for a special advertorial
section in California Magazine. In trade shows, the focus is
heavily tour operator oriented because the VCB can show tangible
results from its attendance.
In addition to advertising and sales, the VCB will put a greater
emphasis on publicity both inside and outside the county. Until
this year, efforts to attract travel editors to the county have
been limited to our contacts with the State Office of Tourism.
More press releases will be generated from the VCB and more of a
concerted effort to invite writers will take place. On the
local scene, the VCB will concentrate on obtaining more media.
coverage for its accomplishments and other pertinent subjects.
The overall budget total is projected to increase by 6% and the
promotional budget will increase by 23% over the 1988/89 year.
This signifies that the administrative costs of the VCB are
remaining constant or decreasing in some cases, allowing more of
the budget to be spent on the marketing programs.
The VCB was started three years ago as a division of the San Luis
Obispo Chamber of Commerce. The management and personnel support
has been invaluable in establishing the VCB as a viable tourism
promotion and economic development organization. As of July,
1989, with the Chamber board's blessings, the VCB will become an
independent, non-profit organization. The VCB will remain in the
same offices and contract with the Chamber for rent and services.
The Steering Committee will become the VCB Board of Directors and
will have final responsibility for the finances and policies of
the organization.
Duplication of Efforts: The VCB coordinates its promotional
programs with at least six different agencies in order to
eliminate any duplication of efforts. The VCB's media and trade
show schedules are determined in April and May for the following
fiscal year. By attending meetings of promotional agencies,
making them aware of the VCB' s proposed plans, duplication can be
eliminated before their plans are developed. In addition, the
VCB Steering Committee includes representatives from other
promotional organizations in the county who inform staff of the
desired direction to take.
/4-1
i
SAN LUIS OBISPO COUNTY VISITORS & CONFERENCE BUREAU
PROPOSED
1989/90 PROMOTIONAL BUDGET
PROPOSED ACTUAL
ADVERTISING/PROMOTION 1989/90 1988/89
Magazine Space Charges $ 23 ,700. 00 $ 20, 650. 00
Newspaper Space Charges 71500. 00 22 , 000. 00
Advertising Production 21000 . 00 720. 00
Publicity 41500. 00 0. 00
Direct Mail/Film Commission 41500. 00 0. 00
Ad Response 81967 . 00* 41500. 00*
51, 167. 00 47, 870. 00
BROCHURES :
Brochure Printing $ 10, 000 . 00 $ 81000. 00
Brochure Distribution 5, 000 . 00 41750. 00
Brochure Production 1, 000-. 00 700. 00
16, 000. 00 13 , 450. 00
TRADE SHOWS:
Trade Show Registration $ 11,200. 00 $ 41300. 00
Trade Show Travel 51500 . 00 21800. 00
Association Memberships 3 , 000. 00 2 , 000. 00
19, 700. 00 91100. 00
TOTAL PROMOTIONAL BUDGET $ 86, 867 . 00 $ 70,420. 00
(+23 . 3$)
TOTAL BUDGET $195, 375 . 00 $183 , 710. 00
(+6. 3%)
*Ad response includes portion of contract labor total and payroll
taxes.
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CL i:i
RESOLUTION NO:. (1989 Series)
CG
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL,
APPROVING AN AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE CHAMBER of COMMERCE of SAN LUIS OBISPO, INC.
FOR CHAMBER TO CONTINUE TO PERFORM PROMOTIONAL SERVICES ON BEHALF OF
THE CITY OF SAN LUIS OBISPO
BE IT RESOLVED by the San Luis Obispo City Council as follows:
SECTION 1. That certain agreement attached hereto, marked
Exhibit "A" and incorporated herein by reference, between the City of
San Luis Obispo and is hereby approved and the Mayor is authorized to
execute the same.
SECTION 2. The City Clerk shall furnish a copy of this
resolution and a copy of the executed agreement. approved by it to:
Dave Garth, Executive Manager of the Chamber of Commerce; San Luis
Obispo Finance Director; and the President of the Chamber of Commerce.
On motion of , seconded by
C and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of ,
1989 .
MAYOR, RON DUNIN
ATTEST
CITY CLERK, PAM VOGES
Approved:
City Ad rnstrative Office
City Atto ey
Finan _ hector
n
EXHIBIT ^A"
PROFESSIONAL SERVICES AGREEMENT
TO PROVIDE VISITORS SERVICES AND
TOURIST .INFORMATION ACTIVITIES
This agreement, made this day of 1989 by
and between the CITY OF SAN LUIS OBISPO, California (hereinafter
referred to as "City") , and CHAMBER OF COMMERCE OF SAN LUIS
OBISPO, INC_. , CALIFORNIA, (hereinafter referred. to as
"Contractor") .
WITNESSETH:
WHEREAS, City desires to promote its advantages as a.
tourist and recreational center; and
WHEREAS, arranging and obtaining favorable coverage about
the community in the various news mdeia likely to be read by
potential visitors to the city is an integral part of its
promotion as a tourist and recreational center; and
WHEREAS, the coordination and development of cultural and
recreational events is a necessary adjunct to the proper
promotion of the city; and
WHEREAS, the Chamber staff is qualified and the office is
equipped to carry out such activities on behalf of the City; and
WHEREAS, the provisions of the Government Code of the State
of California authorize the expenditure of public funds by
municipal corporations as therein and herein provided.
NOW, THEREFORE, in consideration of their mutual covenants,
the parties hereto agree as follows:
1. PROGRAM COORDINATION
a. Cit The City Administrative officer or his
�gnated representative, shall. be the Project Manager
representing the City for all purposes under this
agree ment. He shall supervise the progress and
execution of this agreement.
Cb. Contractor. Contractor shall assign a single Project
Manager to have overall responsibility for the progress
and execution of this agreement for Contractor. Dave
Garth is hereby designated as the Project Manager for
Contractor. Shoul-d circumstances or conditions subse-
quent to- the execution of this agreement require a sub-
stitute Project Manager for any reason, the Project
Manager designee shall be subject to the prior written
acceptance and approval by City Project Manager.
2 . DUTIES OF CONTRACTOR:
a. In addition to the Promotional Services Contract,
City contracts with the San Luis Obispo Chamber of
Commerce (Contractor) for promotional services and the
Visitors and Conference Bureau (VCB) . The City
separately contracts with an independent agency to
provide advertising 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
duplication of costs associated with the VCB, the
Promotional Services and Advertising Agreements.
b. Services to be furnished. Contractor shall provide all
specified services as set forth and incorporated herein
by this reference.
C. Chamber will maintain an office suitable for the
conduct of a promotional program. This office shall be
open during normal business hours to facilitate contact
with the news media representatives and to disseminate
news releases and promotional information in a
professional manner to various media.
d. Chamber staff shall include personel qualified in
public relations. Public information shall be available
as necessary to the successful implementation of a
promotional program.
e. Chamber shall conduct a promotional and publicity
program on behalf of City as outlined here below or as
may be modified from time to time by mutual agreement
between the City and the Chamber.
f. The program to be conducted by the Chamber shall
r� .
include, but not be limited to the following:
(1) The writing, production and distribution of news
releases, feature stories, photographs and
illustrations, radio and television news materials,
informational fliers, graphics, and such personal
contacts with the media as may be necessary for the
general promotion of the City of San Luis Obispo as a
tourist destination.
(2) Maintaining a file of clippings, news releases,
artwork, and other promotional material produced by the
Chamber on behalf-of the City pursuant. to this contract
which shall be available to the City or .its designated
agents for use in promotional programs at the sole
discretion of the City.
(3) Representation at meetings of the PCC, and at the
direction of the Chairman of the PCC, the meetings of
other City commissions and the City Council.
(4) Maintainance of a liason with groups and
individuals in the community who express an interest in
producing information and/or programs which support the
promotional activities of the City of San Luis Obispo.
(5) The Chamber shall submit a monthly written report -
of promotional services rendered including copies of
press releases, feature stories, photographs and
illustrations, radio and television news materials,
fliers, graphics, and other materials prepared on
behalf of the City at each regular meeting of the PCC.
Said monthly report shall include an itemized statement
regarding Chamber staff hours devoted to the City ' s
promotional program during the preceding month.
g. All services provided by the Contractor listed within
this agreement are in addition and beyond those of any
and all other contracts currently held between City and
Contractor.
h. 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 fully informed of all existing and pro-
posed federal, state and local laws, ordinances, regu-
lations, orders, and decrees which may affect those en-
gaged or employed under this agreement, any materials
used in Contractor's 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, regulations, orders, and decrees men-
tioned 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 de-
crees mentioned above in relation to any plans, draw-
ings, specifications, or provisions of this agreement.
i. Copies of reiRorts and information. If City requests ad-
itiona -copies ot reports, cirawings, 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 du-
plicating of such copies at. Contractor's direct ex-
pense.
j . Qualifications of Contractor. Contractor represents
that it is qualified to furnish the services described
under this agreement.
3 . DUTIES OF CITY:
City agrees to cooperate with Contractor and to perform work
described hereto and incorporated by this reference.
4. COMPENSATION:
City shall pay to Contractor the following sums for furnish-
ing said services:
a. A flat rate of Twenty Six Thousand, Five Hundred
Dollars ($26,500) per year of office space, staff, and
expenses.
b. Payment shall be made in two equal installments of
$13 , 250.00 on August 1, 1989 and January 1, 1990.
5. TIME FOR COMPLETION OF THE WORK:
Program is for the period July 1, 1989 to June 30, 1990.
6. TEMPORARY SUSPENSION:
The City Project 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 provi-
sion of this agreement. Contractor will be paid the compen-
sation due and payable to the date of temporary suspension.
7 . SUSPENSION; TERMINATION:
a. Right to suspend or 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
theCity and Contractor and 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.
8 . INSPECTION: -\
Contractor shall furnish City with every reasonable /1
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' s Project Manager' s inspection and approval. The
inspection of such work shall not relieve Contractor of any
of its obligations to fulfill its agreement as prescribed.
9. NOTICE:
All notices hereunder shall be given in writing and mailed,
postage prepaid, by Certified Mail, addressed as follows:
To City: Pamela Voges, City Clerk
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403-8100
To Contractor: Chamber of Commerce
of San Luis Obispo
1041 Chorro Street, Suite E
San Luis Obispo, CA 93401
C10. 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. 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 City.
11. INDEMNITY:
Contractor hereby agrees to indemnify and save harmless
City, its officers, agents, and employees:
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 any 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.
Contractor, at its own costs, expense, and risk, shall
defend any and all suits, actions, or other legal
proceedings that may be brought against or for
employees on any such claim or demand of such third
persons, or to enforce any such penalty, and pay and
satisfy any- judgment or decree that may be rendered
against City, its officers, agents, or employees in any
such suit, action or other legal proceeding, when same
were due to negligence of the Contractor.
12 . 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 liablity
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. _
13 . INSURANCE•
Contractor shall provide proof of comprehensive general
liability insurance in the amount of ($500, 000) .
14 . 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.
15 . 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 of 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.
16. COSTS AND ATTORNEY'S FEES:
The prevailing party in any action between the parties to
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.
17 . DISCRIMINATION:
No discrimination shall be made in the employment of persons
under this agreement because of the race, color, national
origin, ancestry, religion, sexual orientation, or sex of
such person..
If Contractor is found 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 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 the 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 Two Hundred Fifty
Dollars ($250) for each calendar day during which Contractor
is found to have been in such noncompliance as damages for
said breach of contract, or both.
18. 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.
r
IN WITNESS WHEREOF, City and Contractor have executed this
agreement on the day and year first above written.
CHAMBER OF COMMERCE OF SAN LUIS OBISPO
By
President
By
Corporate Secretary
CITY OF SAN LUIS OBISPO
By
Mayor Ron Duni.n
ATTEST:
Pamela Voges, City Clerk
lw:vcbcont
6-30-89
RESOLUTION NO. (1989 Series)
A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL,
APPROVING AN AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE CHAMBER OF COMMERCE OF SAN LUIS OBISPO, INC.
FOR CHAMBER TO CONTINUE TO PERFORM CERTAIN VISITOR AND TOURIST
INFORMATION ACTIVITIES FROM A CHAMBER OPERATED VISITORS ' CENTER
BE IT RESOLVED by the San Luis Obispo City Council as follows:
SECTION 1. That certain agreement attached hereto, marked
Exhibit "A" and incorporated herein by reference, between the City of
San Luis Obispo and is hereby approved and the Mayor is authorized to
execute the same.
SECTION 2 . The City Clerk shall furnish a copy of this
resolution and a copy of the executed agreement approved by it to:
Dave Garth, Executive Manager of the Chamber of Commerce; San Luis
Obispo Finance Director; and the President of the Chamber of Commerce.
On motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of ,
1989.
ATTEST MAYOR, RON DUNIN
CITY CLERK, PAM VOGES
Approved: \
City Adikinistrativ Office
City A y
Finance rector
EXHIBIT "A"
PROFESSIONAL SERVICES .AGREEMENT
TO PROVIDE VISITORS SERVICES AND
TOURIST INFORMATION ACTIVITIES
This agreement, made this day of 1989 by
and. between the CITY OF SAN LUIS OBISPO, California (hereinafter
referred to as "City") , and CHAMBER OF COMMERCE OF SAN LUIS
OBISPO, INC.. , CALIFORNIA, (hereinafter referred to as
"Contractor") .
WITNESSETH:
WHEREAS, City desires to continue to promote its advantages
as a tourist and recreational center, disseminate visitor
information relative thereto, and properly respond to inquiries
about various activities of City and its possibilities; and
WHEREAS, City desires Contractor to continue to perform
certain visitor and tourist information services for City which
City believes will be of great advantage and benefit to the City
and its citizens, residents, property owners and taxpayers
thereof, and will promote the general welfare; and
WHEREAS, Contractor is organized for and equipped to carry
on such informational activities on behalf of City, and is in a
position to accomplish such aims and purposes of City in an
efficient and economical manner; and
WHEREAS, the provisions of the Government Code of the State
of California authorize the expenditure of public funds by a
municipal corporation as therein and herein provided.
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 desig-
nated representative, shall be the Project Manager re-
presenting the City for all purposes under this agree-
ment. He shall supervise the progress and execution of
this agreement.
b. Contractor. Contractor shall assign a single Project
Manager to have overall responsibility for the progress
and execution of this agreement for Contractor. Dave
Garth is hereby designated as the Project Manager for
Contractor. Should circumstances or conditions subse-
quent to the execution of this agreement require a sub-
stitute Project Manager for any reason, the Project
Manager designee shall be subject to the prior written
acceptance and approval by City Project Manager.
2 . DUTIES OF CONTRACTOR:
a. In addition to the Visitor Services Agreement, City
contracts with the San Luis Obispo Chamber of Commerce
(Contractor) for promotional services and the Visitors
and Conference Bureau (VCB) . The City separately con- -
tracts with an independent agency to provide
advertising 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 duplication of
costs associated with the VCB, the Promotional
Services, and Advertising Agreements. .
b. Services to be furnished. Contractor shall provide all
specified services as set forth and incorporated herein
by this reference.
C. Chamber will maintain a public office within the City
of San Luis Obispo at a location acceptable to the City
Council. Contractor will maintain a fully competent
staff in this office including a manager with necessary
secretarial assistance. The Contractor office will pro-
vide information to visitors and to business and pro-
fessional people. The office will be staffed and open
to the public daily during regular office hours seven
(1) days per week, excepting legal holidays.
l
�-s9
1 I
V
Contractor will also maintain telephone services open
to the public desiring information, will provide writ-
ten responses to inquiries, and will distribute appro-
priate printed material. The information program will
include distribution of such material to local agencies
and businesses for dissemination to their customers and
tourists. The Contractor shall. also distribute appro-
priate material to other chambers, tourist agencies,
and travel organizations in other communites. Except
for material which is furnished to the Contractor by
the City, the Contractor shall be permitted to charge
reasonable fees for material which it distributes.
1) Contractor will employ a manager and other neces-
sary personnel. The manager's qualifications will in-
clude training and experience in public relations and
public information.
2) Contractor will distribute maps and promotional lit-
erature about San Luis Obispo and will conduct an in-
formation program including maintaining files on the
community' s economic data, recreational facilities and
events, general business conditions, historic points of
interest, and cultural activities. This program will be
directed toward visitors and others who have interest
in the community.
3) Contractor will also maintain a library of litera-
ture, business and telephone directories for public
use.
4) Contractor will cooperate with the City's promotion-
al advertising program by responding to inquiries, tab-
ulating and reporting responses and coordinating acti-
vities and services.
5) In all activities, Contractor shall be a public re-
lations agency disseminating information and creating
goodwill and advancing the development of San Luis
Obispo and its trading area. Contractor furthermore
agrees to cooperate in ascertaining the most favorable
long-range activities for the community.
6) Contractor- will carry on such other duties as may
mutually agreed upon by the parties hereto to promote
tourism, conferences, conventions, and related business
and cultural activities in the community.
1
d. Notwithstanding any other representations, oral or
written, between the parties, including any and all a-
gents 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.
e. All services provided by the Contractor listed within
this agreement are in addition and beyond those of any
and all other contracts currently held between the City
and Contractor.
f. 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 fully informed of all existing and pro-
posed federal, state and. local laws, ordinances, regu-
lations, orders, and decrees which may affect those en-
gaged or employed under this agreement, any materials
used in Contractor's 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, regulations, orders, and decrees men-
tioned above.
4) ImmediatelI report to the City's Project Manager in
writing any discrepancy or inconsistency it discovers
in said laws, ordinances, regulations, orders, and de-
crees mentioned above in relation to any plans, draw-
ings, specifications, or provisions of this agreement.
g. Copies of reports and information. If City requests ad-
ditional 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 du-
plicating of such copies at Contractor's direct ex-
i
pense.
h. Qualifications of Contractor. Contractor represents
that it is qualified to furnish the services described
under this agreement.
3 . DUTIES OF CITY:
City agrees to cooperate with Contractor and to perform work
described hereto and incorporated .by this reference.
4. COMPENSATION:
City shall. pay to Contractor the following sums for furnish-
ing said services:
a. Commencing July 1, 1989, and continuing for one (1)
year, City shall pay Contractor the sum of Forty Five
Thousand Five Hundred Dollars ($45,500.00) per year payable
in two 'installments of Twenty Two Thousand Seven Hundred and
Fifty Dollars ($22,750.00) on August 1, 1989 and January 1,
1990.
5. TIME FOR COMPLETION OF THE WORK:
Program is for the period July 1, 1989 to June 30, 1990.
6 . TEMPORARY SUSPENSION:
The City Project 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 provi-
sion of this agreement. Contractor will be paid the compen-
sation due and payable to the date of temporary suspension.
7 . SUSPENSION; TERMINATION:
a. Right to_ suspend or 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 and 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.
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's Project Manager's inspection and approval. The
inspection of such work shall not relieve Contractor of any
of its obligations to fulfill its agreement as prescribed.
9. NOTICE•
All notices hereunder shall be given in writing and mailed,
postage prepaid, by Certified Mail, addressed as follows:
To City: Pamela Voges, City Clerk
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403-8100
To Contractor: Chamber of Commerce
of San Luis Obispo
1041 Chorro Street, Suite E
San Luis Obispo, CA 93401
10. 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 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 City.
11. INDEMNITY•
Contractor hereby agrees to indemnify and save harmless
City, its officers, agents, and employees:
1-63
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 any 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.
Contractor, at its own costs, expense., and risk, shall
defend any and all suits, actions, or other legal
proceedings that may be brought against or for
employees on any such claim or demand of such third
persons, or to enforce any such penalty, and pay and
satisfy any judgment or decree that may be rendered
against City, its officers, agents, or employees in any
such suit, action or other legal proceeding, when same
were due to negligence of the Contractor.
12 . WORKERS COMPENSATION:
Contractor certifies that it is aware of the provisions of
the Labor Code of the State of California, which require
/ Zo
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.
13 . INSURANCE:
-Contractor shall provide proof of comprehensive general
liability insurance in the amount of ($500,000) .
14 . 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.
15. 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 of 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.
16 . COSTS AND ATTORNEY 'S FEES:
The prevailing party in any action between the parties to
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.
17 . DISCRIMINATION:
No discrimination shall be made in the employment of persons
under this agreement because of the race, color, national
origin, ancestry, religion, sexual orientation, or sex of
/_ /
such person.
If Contractor is found 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 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 the 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 Two Hundred Fifty
Dollars ($250) for each calendar day during which Contractor
is found to have been in such noncompliance as damages for
said breach of contract, or both.
- 18 . 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.
1 -LG
i
IN WITNESS WHEREOF, City and Contractor have executed this
agreement on the day and year first above written.
CHAMBER OF COMMERCE OF SAN LUIS OBISPO
By
President
By
Corporate Secretary
CITY OF SAN LUIS OBISPO
By
Mayor Ron Dunin
ATTEST:
Pamela Voges, City Clerk
lw:vcbcont
6-30-89
r
San Luis Obispo Chamber of Commerce
.Annual City Report 1988-89
Contract Proposal 1989-90
�O
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San Luis Obispo Chamber of Commerce
1988-89 Annual Report To The City
1988-89
Visitors Contract
During 1988-89, the Visitors Center continued to perform as a central resource
for visitors desiring information on San Luis Obispo's many sights, activities and
accomodations.
110,816 visitors came into our center during the year, compared to 105,256
visitors last year. This represents a 5.3% increase. The larger increase appears in the
20% increase in phone inquiries with 53,731 calls logged this year, as opposed to last
year's 44,737.
The refined public relations and advertising program brought in a record 13,020
ad responses. This represents a 47% increase over last year's 8,829 responses.
Each response continues to be answered in a prompt and courteous manner by the
Visitors Center staff.
The Visitors Center continues to promoted the City's attractions through our
calendar of events, through ticket sales of local events and award-winning literature,
distributed by a strong, knowledgeable and friendly staff.
In the coming year, it is expected that mail ad responses will climb modestly by
approximately 10% due to an insignificant increase in the City advertising budget.
Phone inquiries, however, will probably continue to increase more rapidly. We predict
a 25% increase over last year in keeping with the current trend.
This Visitors Center staff will continue to disseminate information to the City's
many visitors and potential visitors effectively, professionally and always with a smile.
V
Promotional Contract
Another successful year concludes for the Chamber-City promotional program.
San Luis Obispo has gained exposure in many new media representing a variety of
interests and tastes. Based on the advertising rates of the various media, equivalent
paid exposure would soar well beyond the million dollar mark.
Focusing on the quality values and traditions San Luis Obispo has to offer,
some 22 press releases informed local, state and national media of the many
activities and event staking place in San Luis Obispo this year. In..addition, releases
emphasized year-round historic sights, natural scenery, recreation, dining, shopping
and entertainment, all of which attract over two million visitors to the San Luis Obispo
area.
Coverage during the 1988-89 year spanned the local to national media and the
newspaper to radio ranks. By far the most notable achievement was the consistency
of San Luis Obispo area activities spotlighted for Sunset readers. Eight articles
C) appeared in a nine month period.
Travel guides such as Frommers 1988 Dollarwise Guide To Californiaand
California Travel Parks Association Guidecontinue to list San Luis Obispo as an all-
around desirable destination. Frommers, a well recognized guide, devoted nearly
nine pages to San Luis Obispo in its 1988 edition.
Locally, the Telegram-Tribune, Five Cities Time-Press-Recorder; San Luis
Revue and numerous other print and electronic media featured many of the City's
events featured in the City press releases. Mardi Gras, Halloween and Christmas
events obtained especially heavy coverage.
On a larger scale, Forbes magazine featured an article on the top U.S.
entrepreneurs. San Luis Obispo businessmen Greg Hind of Hind Sportswear and
Gus Blythe of SecondWind claimed two spots in this prestigious story.
"W', a trendy women's fashion publication featured a lengthy article entitled
"California's Middle Kingdom" which prominently mentioned San Luis Obispo.
Four-color photo editorials such as A Day In The Life Of California and the
coffee-table picture book Christmas In America featured San Luis Obispo's natural
beauty in full detail. And our own local award-winning four-color production, the San
/` r0
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Luis Obispo Visitors Guide continues to gain recognition for the City's many colorful
sights. San Mateo, Highland and Dana Point publications featured articles on the
Visitors Guide, as well as both the Los Angeles Times and the Los Angeles Herald.
Westways published their 80th anniversary issue in 1989. In it appeared a
three page spread on none other than San Luis Obispo and Farmers Market.
Featured prominently were several photos of the Market. Coverage in Westways
represented a direct hit to an SLO target market of automobile travelers.
Our world is becoming ever smaller, and longer range travel more prominent..
Visitors travel long distances and come from far-away places to see San Luis Obispo.
Germany and Japan are but two of the foreign countries which featured San Luis in
their media.
The Chamber will continue to direct its efforts toward a wide variety of media,
ensuring broad coverage of San Luis Obispo's many facets.
110,816 Visitors Seek Center In 88-89
3 Year Comparison
115000
110000 -
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10000
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05000 100000
1986-87 1987-88 1988-89
YEAR
Phone Inquiries Increase By 20% In 88-89
3 Year Comparison
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50000
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Q 45000 - � '-
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040000 a °� , ,x ❑ #of Phone Inquiries
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25000
86-87 87-88 87-89
Year
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Ad Responses Increase By 47% Over 87-88
3 Year Comparison
20000
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Cr10000 - #of Ad Responses
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86-87 87-88 88-89
Year
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San Luis Obispo Chamber of Commerce
Proposals For 1989-90 Fiscal Year
Visitors Contract
This year, the Chamber will finish the year losing about$39,000. Last year, we
lost$9,000. Neither our Board nor our reserves can tolerate any additional losses.
In analysing why we are losing money, we find the Visitors Contract a major
cause. Because we are on a fixed contract, we are responsible for answering all ad
responses and information request, yet we have no control over how many responses
there will be. In just the past three years, the number of ad responses has gone from
4,353 in 1986-87 to 13,020 in 1988-89, a 199%increase. Yet, our contract has only
been increased less than 50% during that time. A small cost-of-living increase of 5%
which has been approved is certinly not enough to offset our increased costs.
We propose to continue the contract as is except for one important change: we
propose eliminating the 800 number. Less than 7% of our responses came in on the J
800 line this year, not nearly enough to substantiate the tremendous cost of
maintaining the number.
Even though the 800 line was installed for ad responses, it is very difficult not to
answer questions and get involved in lengthy conversations. The incoming call costs
us 51 cents per minute and each call averages over four minutes, costing over $2.00
for just the telephone time. Add in the costs of labor at about $1.50 and the cost of
materials and postage involved in each response and the cost of one 800 line call
totals $4.41. We feel that most of the people responding on the 800 line are serious
enough about visiting San Luis Obispo that they would use either the mail or a toll line
to request information.
In support of this, very few visitors centers offer toll-free lines. In California, it is
estimated that less than 1% of all centers offer this service.
With this change, we can continue our excellend service with just a 5% increase
in our contract.
Some new services have been mentioned by the advertising agency and
various committee members. We are willing to provide many other services not
included in our contracts (such as research and computer services) but these ^
I
C,t
additional services would necessarily involve additional costs.
Promotional Contract
We feel that the current promotional campaign is well-refined and therefore
propose that it continue in its current direction.
During the course of the fiscal year 1989-90, we would like to pursue a great
diversity of media whose audiences' interests would jive with San Luis Obispo's
offerings. Continued releases and coverage of the many events in San Luis Obispo is
a primary goal, as is gaining exposure for San Luis Obispo's natural beauty and wide
variety of recreation sites, fine dining, shopping and accomodations.
A continued advertising program emphasizing San Luis Obispo's quality of life
and natural attractions in combination with a strong public relations program will
continue to help San Luis Obispo capture its share of the tourism market.