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HomeMy WebLinkAbout09/21/1993, 7 - 1993-95 PROMOTIONAL PROGRAM I`Iry�� ll�lllllll�� II MEETING DATE: cIV1 of san cups oBispo q.2j•93 COUNCIL AGENDA REPORT TEM NUMBER: FROM: Ken Hampian, Assistant City Administrative Officer Prepared By: Deb Hossli, Administrative Analyst SUBJECT: 1993-95 Promotional Program CAO RECOMMENDATIONS: 1. Approve and authorize the Mayor to execute two year contracts with the Chamber of Commerce for Visitor Services and Promotional Services in the amounts of $55,200 and $32,100 each year respectively (with no cost of living increase in 1994-95 as recommended by the PCC); 2. Approve and authorize the Mayor to execute a two year contract with the Visitors and Conference Bureau for promotional services in the amount of$54,000 each year (with no cost of living increase in 1994-95 as recommended by the PCC); 3. Approve and authorize the Mayor to execute a one year contract with Barnett, Cox & Associates for advertising services in the amount of $89,000 with the opportunity to extend for one additional year with CAO approval; and 4. Authorize the CAO to develop and execute agreements with Barnett, Cox & Associates and the International Film Festival to carry out the Enhanced Promotional Program as outlined in this report. REPORT-IN-BRIEF The Promotional Coordinating Committee (PCC) has completed its review of each component of the 1993-95 Promotional Program and has developed recommendations for the City Council's consideration. In short, the PCC is recommending that the City: ■ Continue to contract with the Chamber of Commerce for visitor center services and promotional services. ■ Continue to contract with the Visitors and Conference Bureau (VCB) for promotional services. ■ Continue to contract with Barnett, Cox & Associates (BC&A) for traditional advertising services. The advertising campaign will continue to focus on increasing off-season tourism and rely on a combination of cable and print media. ■ The additional $50,000 set aside for an Enhanced Promotional Program should be used as follows: $16,500 to implement a discount card program to enhance off- season tourism; $12,500 to develop an enhanced events calendar to promote the City; $9,500 to direct mail the events calendar to past visitors of San Luis Obispo to generate repeat visits; and $11,500 as "seed monies" to the San Luis Obispo .International Film Festival. 7—� �I���► ►�I�I�p�p� q N city of san tus osispo SiX COUNCIL AGENDA REPORT DISCUSSION: Background Each year, the City spends nearly a quarter of million dollars on a Promotional Program to promote the City as an overnight tourist destination. The Promotional Program is overseen by the PCC and carried out through four advertising and promotional services contracts. Two of the contracts are held by the Chamber of Commerce; one for visitor center services and one for promotional services. A third contract is held by the VCB and represents the City's contribution toward the marketing of the entire central coast as a tourist destination. The final contract is for advertising services and is currently held by BC&A. Funding for the Program is derived from the transient occupancy tax (TOT) commonly referred to as "the bed tax". Consistent with their charge, the PCC has used the last several months to review each component of the Promotional Program and develop recommendations for new contract funding levels for 1993-95. In addition to the four regular contracts, the PCC has developed a recommended spending plan for the $50,000 that was included in the 1993-95 Financial Plan by the City Council to fund enhancements to the Promotional Program. The purpose of this report is to provide the City Council will an overview of the PCC's recommendations for 1993-95 Promotional Program. I Review Process and Recommendations I. CHAMBER OF COMMERCE AND VCB CONTRACTS Consistent with past practices, the Chamber of Commerce and VCB were requested to submit two-year proposals to the PCC. The PCC performed a detailed evaluation of the proposals and determined that they were reasonable and continued to offer cost-effective valuable services to the City. As such, the PCC is recommending: A. Chamber of Commerce ■ Visitors Services Contract Contract Summary-Under the Visitors Services contract, the Chamber of Commerce provides a full-service visitors center that is open to the public seven days per week. The Visitors Center responds to visitor inquiries; dispenses information about San Luis Obispo; handles telephone calls from the public; responds to written requests for information about the City; and fulfills responses to requests for visitor information generated through the City's advertising contract. I Chamber of Commerce Proposal - The Chamber of Commerce submitted a two year contract proposal that provides the City with the same basic level of services we have received in the past. With respect to contract funding, the Chamber is requesting 7-Z 11111111IIIIII 11 jell city of san Luis osispo COUNCIL AGENDA REPORT $55,200 for 1993-94 (which represents the same level of funding as 1992-93) and $57,400 for 1994-95 (which represents 4% increase over 1993-94 levels to cover cost of living increases). PCC Recommendation -The PCC is recommending that the Chamber of Commerce be funded for two years at their requested level of $55,200 for 1993-94 and $57,400 for 1994-95. It the PCC's opinion that the Visitor's Services contract is an integral part of the City's Promotional Program and that the Chamber of Commerce is most qualified to provide this service. CAO Recommendation-The CAO's recommendation differs slightly from the PCC's in that the CAO does not support a 4% cost of living increase in the second year of the Visitor's Services contract (which equates to $2,200). As with most of the City's ongoing contracts, monies were not included in the 1993-95 Financial Plan to cover cost of living increases. Given the City's and the State's current and projected financial position, staff does not feel it is financially prudent to incorporate cost of living increases into contracts at this time. ■ Promotional Contract Contract Summary - Under the Promotional contract, the Chamber of Commerce works to obtain free coverage of San Luis Obispo in newspapers, magazines, radio, television, and books. This free coverage helps to promote overnight tourism to the City and is obtained through a carefully orchestrated program of news releases, I letters and personal contacts with travel writers and editors throughout the State. Chamber of Commerce Proposal- The Chamber of Commerce submitted a two year contract proposal that provides the City with the same basic level of services we have received in the past. With respect to contract funding, the Chamber is requesting $32,100 for 1993-94 (which represents the same level of funding as 1992-93) and $33,400 for 1994-95 (which represents 4% increase over 1993-94 levels to cover cost of living increases). PCC Recommendation -The PCC is recommending that the Chamber of Commerce be funded for two years at their requested level of $32,100 for 1993-94 and $33,400 for 1994-95. It the PCC's opinion that the Promotional contract is an integral part of the City's Promotional Program and that the Chamber of Commerce is most qualified to provide this service. CAO Recommendation-The CAO's recommendation differs slightly from the PCC's in that the CAO does not support a.4% cost of living increase in the second year of the Promotional contract (which equates to $1,300) for the same reasons as discussed earlier. 7--; I�� ��NIIIpIIp ��IU MY Of San WIS OBISPO Nii% COUNCIL AGENDA REPORT B. Visitors and Conference Bureau Contract Summary - Under the VCB's contract, the City's annual contribution represents our share of the effort to market the central coast as a tourist destination. The VCB plans and executes a complete marketing plan that focuses on encouraging tourism during the off-season. The VCB accomplishes this through a variety of activities including advertising and promotion, participation in travel trade shows, brochure development and distribution, publicity, market research, group conference planning services and film production development. VCB Proposal - The VCB has submitted a two year contract proposal that will provide the City with the same basic level of service as we have had in the past. With respect to funding,the VCB is requesting$67,700 for 1993-94 (which represents 3.5% of the TOT collected two years prior and 25% over 1992-93 funding levels) and $71,700 for 1994-95 (which represents 3.5% of the TOT to be collected two years prior). PCC Recommendation - The PCC is recommending that the VCB be funded in a manner similar to the Chamber of Commerce. Specifically, the PCC is recommending that the VCB receive $54,000 for 1993-94 (which represents the same level of funding as 1992-93) and $56,200 for 1993-94 (which represents a 4% increase over 1993-94 levels to accommodate cost of living increases). While the PCC continues to feel that the VCB's contract is an integral and valuable part of the City's Promotional Program, the City's current financial position precludes the group from recommending the VCB's requested funding levels. CAO Recommendation-The CAO's recommendation differs slightly from the PCC's in that the CAO does not support a 4% cost of living increase in the second year of the VCB contract (which equates to $2,200)for the same reasons as discussed earlier. II. ADVERTISING CONTRACT Background The purpose of the City's advertising contract is to develop an advertising campaign that encourages overnight travel to the City of San Luis Obispo. Overnight travel has traditionally been the focal point of the campaign because of its relationship to the local tax base - it helps to generate revenues for the City though increases in TOT and sales tax receipts. The City's program has typically relied on a combination of cable and print media and has been geared to the southern California travel market. PCC Review Process and Recommendations I In May of this year, the City Council approved the Advertising Services Request for Proposal (RFP). As set out in the RFP, the City has allocated $89,000 for a one year advertising contract (with the opportunity for a one year extension). The RFP was --el mN���Nuu1111111�p ��Ill city of San LUIS OBISpo IM COUNCIL AGENDA REPORT subsequently distributed to nearly 35 of the area's advertising, marketing and public relations firms. The RFP's were due to the City by the end of June 1993. Three proposals were received from the following agencies: Barnett, Cox & Associates. (BC&A), Marc Leunis Advertising, and Tom Jones Advertising. The PCC interviewed all three firms at a public meeting in July. Each presentation was professional and responsive to the priorities set out in the RFP. After a thorough discussion, however, the PCC unanimously ranked BC&A as the superior firm. The PCC felt that BC&A, which has held the contract for the past year, has done an excellent job for the City. They have proven themselves as a reliable, responsive and creative firm. The PCC also felt that BC&A would have a "leg up" on the other firms given their past experience with the City. It is also important to note that BC&A submitted the lowest bid for agency services. BC&A Proposal Staff, with the assistance of the PCC, has developed a contract with BC&A for the City Council's consideration. As proposed, the contract is for one year (with the option to extend for one additional year with CAO approval) and totals $89,000. Consistent with past practices, the contract is general in nature so that the advertising contractor and PCC have the flexibility to modify the campaign throughout the year as needed. The focus and objectives, however, are based on a combination of historically successful advertising approaches and the findings of the recently completed Tourism Advertising Survey. Under the proposed contract, BC&A will I develop an advertising campaign built around the following philosophies: ■ it will focus on increasing tourism during the off-season (November through April) as well as on lower demand nights. This will beaccomplished through a combination of paid advertising and special promotions to be developed throughout the year with guidance from the PCC. ■ it will target the majority of our marketing efforts on the southern California geographic region (the recently completed Tourism Advertising Survey confirmed that southern California is our top tourism market). ■ it will place emphasis on the existing customer base to encourage repeat visits to San Luis Obispo (market research professionals feel this is an extremely successful approach for increasing tourism). ■ it will emphasize the creation of partnerships with the private sector tourist oriented businesses (e.g., hotels, motels, restaurants, retail, performing arts and attractions) to enhance tourism and "stretch" the City's marketing dollar. 7r� ����i �IVlllllh��ll��ll city of San tuts OBISPO = COUNCIL AGENDA REPORT ■ it will emphasize the creation of value added marketing tools such as discount coupons or special offers to encourage tourism (the recently completed Tourism Advertising Survey confirmed that discount opportunities for accommodations, restaurants, and attractions positively influence tourist decisions to visit San Luis Obispo). The CAO concurs with the PCC's Advertising Program recommendations. III. ENHANCED PROMOTIONAL PROGRAM Background In adopting the 1993-95 Financial Plan, the City Council set aside an additional $100,000 ($50,000 each year) to fund enhancements to the Promotional Program. It was City Council's intent that the monies be targeted toward creative approaches to increasing overnight tourism during the off-season (November through April). The City Council charged the PCC with developing a spending plan for these monies. In order to respond to Council direction, the PCC solicited ideas from the City's major arts groups, marketing and advertising firms, the BIA, the VCB, the Chamber of Commerce, the Hotel & Motel Association, the Central Coast Restaurant Association, and others as to how the monies could be best used to increase tourism. In addition, the PCC placed display advertisements in two editions of the Telegram- Tribune to solicit ideas from the general public on this topic. The PCC also held a public meeting on June 24, 1993 where all interested parties could advise the Committee of their ideas for using the monies. In addition to general suggestions and comments, the PCC received sixteen formal proposals for use of a portion or all of the $50,000. The proposals ranged from creating new attractions (e.g, "Return to a 50's weekend", an International Film Festival, Octoberfest, Mozart Winter Celebration, Country Christmas, etc.) to creating a Visitor Coupon Book. PCC Recommendations After reviewing the suggestions, comments and formal proposals presented, the PCC recommends that the $50,000 be used as follows: ► $16,500 should be used to create a "Discount Card Program" to promote winter and mid-week tourism. The key findings in the recently completed Tourist Advertising Survey show that over half of the survey respondents indicated that the availability of discounts and coupons for accommodations, restaurants, and attractions influenced their decision to visit San Luis Obispo. 7-6 �I��►�►�►►�I►Illlllf�l�in�u���lll City of Sdn tins OBISPO HiiS COUNCIL AGENDA REPORT Given this information, the PCC felt that a discount card program that encourages off-season or mid-week visits to San Luis Obispo would be an excellent opportunity to partner with our local tourist industry thereby enhancing tourism and "stretching" our promotional budget. As proposed, a discount card, along with a brochure advertising the types of discounts available,would be produced. All hotels, motels, restaurants, stores and attractions would then be invited to participate by providing some type of discount that would encourage off-season or mid-week tourism (e.g., a hotel, restaurant, and arts group could get together to offer a three day winter weekend package or a local hotel could offer discount rates Sunday through Wednesday). The tourist would then merely present the card to the participating merchant to obtain the discount. The availability of the cards would be advertised through the City's regular paid advertising contract and distributed by the Chamber of Commerce in our tourist information packets. The PCC is recommending that the City contract with BC&A to carry out this project. ► $12,500 should be allocated toward creating a high quality quarterly events calendar. As proposed, the calendar would be updated quarterly, graphically pleasing, of poster size and suitable for display in all tourist businesses. A smaller version of the calendar would also be sent out with the tourist information packets distributed by the Chamber of Commerce. Based on input from our local hospitality industry, the PCC feels that the events calendar would be very well received and an excellent tool to promote our City. The PCC is recommending that the City contract with BC&A to carry out this project. ► $9,800 should be allocated toward a direct mailing of the events calendar (twice annually) to past visitors of the City. Again, in keeping with the key findings from the Tourist Advertising Survey, repeat customers are important to San Luis Obispo. Marketing research shows that it is easier to attract a visitor already familiar and charmed with San Luis Obispo than it is to initiate a new tourist to the area. Direct mailing of the events calendar can serve to trigger a repeat visit by providing timely information on events and attractions. The PCC is recommending that the City contract with BC&A to carry out this project. I ► $11,500 should be allocated as "seed monies" to the International Film Festival. The PCC felt of that the Film Festival's proposal was the most 7- 7 "'h�i ►IVIIIIIII��I� 1���1 City of San tins OBISPO =1111IN COUNCIL AGENDA .REPORT successful Santa Barbara Film Festival, the San Luis Obispo Film Festival will be an annual cultural event showcasing the history and art of film-making. The first festival is slated for three days in November (the 4th through the 7th). The City's monies will be used to offset advertising, promotion and facility rental. An article from the Santa Barbara News Press (See Attachment 6). demonstrates the success of their Festival (which has now grown into a ten day event in March) and positive impact it had on local restaurants and hotels. The CAO concurs with the PCC's Enhanced Promotional Program recommendations. FISCAL IMPACT: Adequate monies are available 1993-95 Financial Plan to fund the Promotional Program as recommended by the CAO. Should the City Council choose to fund the Promotional Program at the PCC's recommended level, a $5,700 shortfall will be created as the Committee has recommended that cost of living increases be provided to the Chamber of Commerce and VCB in the second year of their contracts. Again, the CAO does not support these increases. Given the City's current and projected financial position, staff does not feel it is financially prudent to provide cost of living increases. In addition, cost of living increases have not been incorporated into other contracts the City has entered into during this Financial Plan (e.g., the homeless shelter, ECOSLO, Grants-In-Aid for PCC and HRC, etc). ATTACHMENTS: 1 - Contracts with Chamber of Commerce (1A & 1B) 2 - Contract with VCB 3 - Contract with BC&A 4 - Copy of Advertising Services RFP 5 - International Film Festival Proposal 6 - Article from Santa Barbara News Press on Film Festival 7 - PCC Minutes City Council Office Reading File 1 - Chamber of Commerce Proposal 2 - VCB Proposal 3 - Advertising RFP responses (3A, 3B, & 3C) 4 - Enhanced Promotional Program Proposals 5 - Tourism Advertising Survey I 6 - Santa Barbara Events Calendar Example \g:prom-pcc.2 PROFESSIONAL SERVICES AGREEMENT WITH THE CHAMBER OF COMMERCE TO PROVIDE VISITORS SERVICES AND TOURIST INFORMATION ACTIVITIES This agreement is made this day of , 1993, by and between the CITY OF SAN LUIS OBISPO, California (hereinafter referred to as "City"), and the CHAMBER OF COMMERCE OF SAN LUIS OBISPO, INC., CALIFORNIA (hereinafter referred to as "Contractor"). WITNESSETH: WHEREAS, City desires to contract with the Chamber of Commerce to promote its advantages as a tourist and recreational center, disseminate visitor information, and properly respond to inquiries about activities taking place in the City; 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. 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. Dave Garth 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. 2. DUTIES OF CONTRACTOR: A. In addition to this Visitors 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 also 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 Promotional Services, the Visitors Center, and Advertising Services agreements. 7—� ATTACHMENT 1A Page 2 Chamber of Commerce Agreement B. Services to be furnished. Contractor shall provide the following services: 1. Contractor will maintain a public office within the City of San Luis Obispo at a location acceptable to the City. Contractor will maintain a fully competent staff in this office, including a manager and other necessary personnel. The manager's qualifications will include training and experience in public relations and public information. The Contractor office will provide information to visitors and business and professional people. The office will be staffed and open to the public daily during regular office hours seven (7) days per week, excepting legal holidays. 2. Contractor will maintain telephone services open to the public desiring information; .provide written responses to inquiries; and distribute appropriate 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 distribute appropriate material to other chambers, tourist agencies, and travel organizations in other communities. 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. 3. Contractor will distribute maps and promotional literature about San Luis Obispo and will conduct an information 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. 4. Contractor will also maintain a library of literature, business and telephone directories for public use. 5. Contractor will cooperate with the City's advertising services program by responding to inquiries, tabulating and reporting responses and coordinating activities and services. Contractor agrees to fulfill 11,100 advertising responses per year (10,500 mail and 600 800-number or an equivalent combination). 7-/O Page 3 Chamber of Commerce Agreement 6. In all activities, Contractor shall be a public relations agency disseminating information and creating goodwill and advancing the development of San Luis Obispo and its trading area. 7. Contractor will carry on such other duties as may be mutually agreed upon by the parties hereto to promote tourism, conferences, conventions, and related business and cultural activities in the community. D. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 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 the 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 informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this agreement, and materials used in 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, 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. Page 4 Chamber of Commerce Agreement G. 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. H. Qualifications of Contractor. Contractor represents that it is qualified to furnish the services described under this agreement. I. Use of Recycled Paper and Recycled Products. The Contractor agrees to use recycled paper and recycled products in connection with furnishing the services contained in this agreement whenever feasible. 3. DUTIES OF THE CITY: City agrees to cooperate with Contractor and to perform work described hereto and incorporated by this reference. 4. COMPENSATION: The Contractor will perform the work as described and as directed by the City's Project Manager. A. City will pay contractor the sum of$55,200 in 1993-94 and $55,200 in 1994-95 for visitor services and tourist information activities as described herein. B. Payment shall be made in a total of four installments on the following dates: September 30, 1993 - $27,600; January 30, 1994 - $27,600; July 30, 1994 - $27,600; and January 30, 1995 - $27,600. 5. TIME FOR COMPLETION OF THE WORK: Program is for a two year period commencing on September 22, 1993 and ending on June 30, 1995. 7—/.2 Page 5 Chamber of Commerce Agreement 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 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 and by paying the compensation due and payable to the date of termination; 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 o 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 Contractor: Chamber of Commerce 1039 Chorro Street San Luis Obispo, CA 93401 To City: City of San Luis Obispo P. O. Box 8100 San Luis Obispo, CA 93403-8100 Attention: Deb Hossli, Administrative Analyst 7— /.3 Page 6 Chamber of Commerce Agreement 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 the City. It is hereby expressly agreed that, in the performance of the services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 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; 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. 7-lel Page 7 Chamber of Commerce Agreement 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 judgement 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 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 insurance in accordance with Insurance Requirements for Consultants as described in Exhibit "A" attached hereto and incorporated herein by reference as though here fully set forth. 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 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. 7 Page 8 Chamber of Commerce Agreement 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 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, representatives, 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. Page 9 Chamber of Commerce Agreement IN WITNESS WHEREOF, City and Contractor have executed this agreement on the day and year first above written. CHAMBER OF COMMERCE BY Dave Garth, Executive Director CITY OF SAN LUIS OBISPO Peg Pinard, Mayor ATTEST: Diane Gladwell, City Clerk APPROVED AS TO FORM: eft forgensen, dity Attorney g:chamber.agr 7-� 7 INSURAviCE REQUIREMENTS FOR CONIL.ACTORS Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employers or subcontractors. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office fora number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,employees and volunteers;or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials,employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned ]eased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall bot affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy.required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage Contractor shall furnish the City with a7 certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 7—A0 14 EXHIBIT A PROFESSIONAL SERVICES AGREEMENT WITH THE CHAMBER OF COMMERCE TO PROVIDE PROMOTIONAL SERVICES This agreement is made this day of 1993, by and between the CITY OF SAN LUIS OBISPO, California (hereinafter referred to as "City"), and the 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 City in the various news media is an integral part of its promotion as a tourist and recreational center; and WHEREAS, the Chamber staff is qualified and the office is equipped to carry out such activities on behalf of the City. 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. Dave Garth 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. 2. DUTIES OF CONTRACTOR: A. In addition to this Promotional Services Agreement, City contracts with the San Luis Obispo Chamber of Commerce (Contractor) for visitor services and the Visitors and Conference Bureau (VCB). The City also 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 Promotional Services, ATTACHMENT 1B 7—/Q Page 2 Chamber of Commerce Agreement the Visitors Center, and Advertising Services 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 personnel qualified in public relations. Public information shall be available as necessary for the successful implementation of a promotional program. E. Chamber shall conduct a promotional and publicity program on behalf of City as outlined 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 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. Maintenance of a liaison 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, 7 zQ Page 3 Chamber of Commerce Agreement graphics, and other materials prepared on behalf of the City at each regular meeting of the PCC. Said monthly report shad include an itemized statement regarding Chamber staff hours devoted to the City's promotional program during the preceding month. D. 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. E. 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 informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this agreement, and materials used in 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, 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. F. 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. G. Qualifications of Contractor. Contractor'represents that it is qualified to furnish the services described under this agreement. H. Use of Recycled Paper and Recycled Products. The Contractor agrees to use recycled paper and recycled products in connection with furnishing the services contained int his agreement whenever feasible. 7- 2/ Page 4 Chamber of Commerce Agreement 3. DUTIES OF THE 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 furnishing said services: A. City will pay contractor the sum of$32,100 during 1993-94 and $32,100 during 1994-95 for promotional services as described herein. B. Payment shall be made in a total of four installments on the following dates: September 30, 1993 - $16,050; January 30, 1994 - $16,050; July 30, 1994 - $16,050; and January 30, 1995 - $16,050. 5. TIME FOR COMPLETION OF THE WORK: Program is for a two year period commencing on September 22, 1993 and ending on June 30, 1995. 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 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 and by paying the compensation due and payable to the date of termination; 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. 7-z z Page 5 Chamber of Commerce Agreement 8. INSPECTION Contractor shall furnish City with every reasonable opportunity for City o 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 Contractor: Chamber of Commerce 1039 Chorro Street San Luis Obispo, CA 93401 To City: City of San Luis Obispo P. O. Box 8100 San Luis Obispo, CA 93403-8100 Attention: Deb Hossli, Administrative Analyst 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 the City. It is hereby expressly agreed that, in the performance of the services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 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; 7- Z3 Page 6 Chamber of Commerce Agreement 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; 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 judgement 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 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 insurance in accordance with Insurance Requirements for Consultants as described in Exhibit "A" attached hereto and incorporated herein by reference as though here fully set forth. 7. 2 V J Page 7 Chamber of Commerce Agreement 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 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 California[Fair Employment Practices Commission or the equivalent federal agency or officer shall constitute evidence of a violation of contract under this paragraph. 7-.Z.� Page 8 Chamber of Commerce Agreement 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, representatives, 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. CHAMBER OF COMMERCE OF SAN LUIS OBISPO BY Dave Garth, Executive Director CITY OF SAN LUIS OBISPO Peg Pinard, Mayor ATTEST: Diane Gladwell, City Clerk Page 9 Chamber of Commerce Agreement APPROVED AS TO FORM: Cr ) ( Jil.r 1. !J" �•lfil�%l.✓� . feff'Jorgensen, City Attorney g:chamber2.agr 7. 17 INSUR ,,:E REQUIREMENTS FOR CON'. .ACTORS Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Minimum Scooe of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CO. 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occutrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either, the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials,employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy.required by this clause shall be endorsed to state that coverage shall not be suspended, voided,cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII. Verification of Coverage Contractor shall furnish the City with a7 certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. -The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 14728' EXHIBI_T A PROFESSIONAL SERVICES AGREEMENT WITH THE SAN LUIS OBISPO COUNTY VISITORS AND CONFERENCE BUREAU FOR PROMOTIONAL AND ADVERTISING SERVICES This agreement is made this day of , 1993, 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, 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. 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 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 Advertising Sources Agreements. ATTACHMENT 2 2Q Page 2 VCB Agreement 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, Sacramento, 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 countywide sales materials and brochures to be used in the marketing program. 5. Creation and implementation of a coordinated and planned marketing campaign, stressing the benefits of the San Luis Obispo area as a destination for visitors. 7-3a Page 3 VCB Agreement 6. Submittal of a quarterly report on the progress of the VCB to the City's Project Manager, and the Promotional Coordinating Committee (PCC). 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 informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this agreement, and materials used in 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, 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. 77-3/ Page 4 VCB Agreement K. Use of Recycled Paper and Recycled Products. The Contractor agrees to use recycled paper and recycled products in connection with furnishing the services contained int his agreement whenever feasible. 3. DUTIES OF THE CITY: City agrees to cooperate with Contractor and to perform work described hereto and incorporated by this reference. 4. COMPENSATION: The Contractor will perform the work as described and as directed by the City's Project Manager. A. City will pay contractor the sum of Fifty-Four Thousand Dollars ($54,000) for 1993-94; and Fifty-Four Thousand Dollars ($54,000) for 1994-95 for promotional services as described herein. B. Payment shall be made in a total of four installments on the following dates: September 30, 1993 - $27,000; January 30, 1994 - $27,000; July 30, 1994 - $27,000; and January 30, 1995 - $27,000. 5. TIME FOR COMPLETION OF THE WORK: Program is for a two year period commencing on September 22, 1993 and ending on June 30, 1995. Contractor shall perform services in a timely manner upon direction and guidance from City Project Manager and PCC. 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 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 susQend 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 7- 3z Page 5 VCB Agreement termination; 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 therequirements 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. OWNERSHIP OF MATERIALS: Due to 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 JUDGEMENT: 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 judgement 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: 7- 33 Page 6 VCB Agreement To Contractor: San Luis Obispo County Visitors and Conference Bureau 1041 Chorro Street, Suite E San Luis Obispo, CA 93401 To City: City of San Luis Obispo P. O. Box 8100 San Luis Obispo, CA 93403-8100 Attention: Deb Hossli, Administrative Analyst 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 hereby expressly agreed that, in the performance of the services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 14. INDEMNITY Contractor hereby agrees to indemnify and save harmless City, its officers, agents, and employees: 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; 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; 7-3t� J Page 7 VCB Agreement 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 judgement 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. 15. WORKERS COMPENSATION: Contractor certifies that it is aware of the provisions of the Labor Code of the State of California, which require every employer to be insured against liability for workers compensation or to undertake self-insurance in accordance with the provisions of that code, and it certifies that it will comply with such provisions before commencing the performance of the work of this agreement. 16. INSURANCE: Contractor shall provide proof of insurance in accordance with Insurance Requirements for Consultants as described in Exhibit "A" attached hereto and incorporated herein by reference as though here fully set forth. 17. AGREEMENT BINDING: The terms, covenants, and conditions of this agreement shall apply to, and shall bind, the heirs, successors, executors, administrators, assigns, and subcontractors of both parties. 18. WAIVERS: The waiver by either party of any breach or violation of any term, covenant, or condition 7-aur Page 8 VCB Agreement 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 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. 20. 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 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. 21. AGREEMENT CONTAINS ALL UNDERSTANDINGS: �-3;6 J Page 9 . VCB Agreement This document represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representatives, 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. COUNTY OF SAN LUIS OBISPO VISITORS AND CONFERENCE BUREAU BY Jonni Eylar, Executive Director CITY OF SAN LUIS OBISPO Peg Pinard, Mayor ATTEST: Diane Gladwell, City Clerk APPROVED AS TO FORM: Jeff Jorgen en, City Attorney g:vcb.agr INSURA,•.;E REQUIREMENTS FOR CON',__�CTORS Contractor shall procure and maintain for the,duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Minimum Scooe of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either. the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,employees and volunteers;or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City,its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall'not affect coverage provided to the.City, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy.required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 14 7-1.-214017 EXHIBIT A PROFESSIONAL SERVICES AGREEMENT WITH BARNETT, COX & ASSOCIATES TO PROVIDE ADVERTISING SERVICES This agreement, made this _ day of , 1993 by and between the CITY OF SAN LUIS OBISPO, California (hereinafter referred to as "City"), and BARNETT COX & ASSOCIATES (hereinafter referred to as "Contractor"). WITNESSETH: Whereas, City desires to retain the services of a professional advertising firm to carry out the City's advertising campaign as recommended by the Promotional Coordinating Committee (PCC); 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. Com. 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. Maggie Cox is hereby designated as the Project Manager for Contractor. Should circumstances or conditions subsequent to the execution of this agreement require a substitute 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. Services to be furnished. Under general direction of the City Program Manager, Contractor shall develop and implement an advertising campaign for the City that reflects the general parameters as outlined in "Exhibit A", attached hereto and incorporated herein by this reference, or as amended by the City Council. B. Laws to be observed by Contractor. 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. ATTACHMENT 3 Page 2 Advertising Services Agreement 2. Keep itself fully 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, 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 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 any plans, drawings, specifications, or provisions of this agreement. C. Release of reports and information. Any reports, information, data or other material given to, or prepared or assembled by, Contractor under this agreement shall be the property of City and shall not be made available to any individual or organization by Contractor, except the Chamber of Commerce and the Visitors and Conference Bureau, without the prior written approval of the City's Program Manager. D. Copies of reports and information. If City requests additional copies of reports, drawings, specifications, or any other materials 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. Oualifications of Contractor. Contractor represents that it is qualified to furnish the services described under this agreement. F. In addition to the Advertising Services Agreement, the City may contract with the Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau (VCB) for visitors and promotional services. The Contractor acknowledges the potential for duplication of efforts and costs as a result of these contracts with the City. In performing its services under this agreement, the Contractor agrees to make every reasonable effort to coordinate activities and to identify and avoid potential duplication of costs associated with the VCB and Chamber of Commerce agreements. Page 3 Advertising Services Agreement 3. DUTIES OF CITY City agrees to cooperate with Contractor in its performance of that work described in Exhibit "A", attached hereto and incorporated by this reference, or amended work plans approved by the City Council. 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 and feasible. 4. COMPENSATION Contractor will bill City and be compensated in accordance with Exhibit "A", attached hereto and incorporated by this reference, as currently exists or may be amended. 5. TIME FOR COMPLETION OF THE WORK Program is for a one year period commencing September 22, 1993 and ending June 30, 1994. With approval of the City Administrative Officer, this contract may be extended for additional year, commencing July 1, 1994 and ending June 30, 1995. Contractor shall perform services in a timely manner with direction and guidance from City Program 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 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. SUSPENSION; TERMINATION A. Right to suspend or terminate. The City and Contractor retain the right to terminate this agreement for any reason by notifying the other party in writing sixty (60) days prior to termination. The City agrees to pay the compensation due and payable to the date of termination; 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. 7- Y/ Page 4 Advertising Services Agreement 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 the 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'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. OWNERSHIP OF MATERIALS All original drawings, plans, documents and other materials prepared by, or in possession of, Contractor pursuant to this agreement shall become the permanent property of the City, and shall be delivered to the City upon demand. Photographic rights shall be established for original negatives or transparencies. 10. INDEPENDENT JUDGEMENT 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 judgement 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 advertising and 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. NOTICES All notices hereunder shall be given in writing and mailed, postage prepaid, by First Class Mail, addressed as follows: 7- �Ya Page 5 Advertising Services Agreement To Contractor: Barnett Cox & Associates 992 Monterey Street, Suite B San Luis Obispo, CA 93401 To City: City of San Luis Obispo P. O. Box 8100 San Luis Obispo, CA 93403-8100 Attention: Deb Hossli, Administrative Analyst 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 the City. It is hereby expressly agreed that, in the performance of the services hereunder, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 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 Page 6 Advertising Services Agreement 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. 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 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 insurance in accordance with Insurance Requirements for Consultants as described in Exhibit "B" attached hereto and incorporated herein by reference as though here fully set forth. 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 7• y� Page 7 Advertising Services Agreement 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 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. DISCRM NATION 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 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 UNDERSTANDWGS This document represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representatives, 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 7_45Kr Page 8 Advertising Services Agreement 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. BARNETT COX & ASSOCIATES BY President CITY OF SAN LUIS OBISPO BY Peg Pinard, Mayor ATTEST: Diane Gladwell, City Clerk APPROVED AS TO FORM: L Jeff Jorgensen, City Attorney " \dh\barnett.agr 7— e16 OBJECTIVES & GENERAL PHILOSPHY Or CITY TOURISM ADVERTISING CAMPAIGN BC&A recognizes the necessity for SLO's advertising campaign to be one that is strategically sound, collaborative with local tourist businesses' efforts, reflective of research findings about tourists to SLO, and consistent with the community's commitment to enN ironmental sensitivity. To that end, BC&A's proposal for the City of San Luis Obispo's advertising campaign embraces the following objectives and general philosophies: Increased tourist activity in SLO, including overnight stays in city hotels and motels; and patronage of city restaurants, retail stores and visitor attractions. Additionally, the advertising campaign will encourage weekend or overnight visitors to extend their stays for several days in SLO. Alarrowed target advertising to geographic areas with best tourist responsiveness. Research has shown the Southern California market to be the single most effective area for SLO to advertise for tourists. BC&A recommends the 1993-94 campaign reflect this finding by placing the bulk of its paid advertising in Southern California. Focus on existing customer base. SLO already attracts thousands of visitors, be they vacationers, business people, or educational groups. Having already seen and enjoyed San Luis Obispo, these groups can be converted into eager tourists with some direct mail and other marketing efforts. Market research professionals suggest businesses should place 75% of marketing efforts on existing customers. BC&A believes this same principle can be applied to the City's advertising/marketing programs. Creation of partnership opportunities for tourist related businesses (hotels, motels, restaurants, retail, performing arts & attractions) to participate in the advertising efforts and partner with the city in promoting increased tourism. Creation of"value-added" marketing tools for use in boosting tourism. The development of discount coupons and other special offers in association with local businesses and performing arts groups will help stimulate visitors to choose SLO, and particularly to choose SLO in the off season and on lower demand nights. Showcasing of San Luis Obispo's conzinitment to a protected environment BC&A will position SLO as a pristine, charming community in which visitors will feel welcome, secure and comfortable. The campaign will promote the community's devotion to environmental protection, including a commitment to clean air, reduced auto usage, water conservation and unspoiled hillsides. �— Sf7 EXHIBIT A BUDGET Cable TV Advertising production, placement, all attendant details $ 62,300 Print Advertising production, placement, all attendant details $ 12,500 1-800 Number $ 3,500 Agency Administrative Fees $ 10,200 account management, meetings, reports, billing, media contact, 1-800 coordination, etc. TOTAL $ 899000 �— elf 1 INSURr iCE REQUIREMENTS FOR CON'►.<ACTORS Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Minimum Scope of insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either. the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials,employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shallnot affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy.required by this clause shall be endorsed to state that coverage shall not be suspended, voided,cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice.by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII. Verification of Coverage Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. (j 7- EXHIBIT EXHIBIT B 14 REQUEST FOR PROPOSALS FOR ADV€RTISING SERVICES FOR THE CITY OF SAN LUIS OBISPO The City of San Luis Obispo has traditionally conducted an advertising campaign to promote San Luis Obispo as a visitor destination to enhance the economic well-being of City residents and businesses. The primary purpose of the campaign is to encourage overnight travel to San Luis Obispo from other parts of California. The promotional efforts are coordinated by the Promotional Coordinating Committee (PCC), a seven-member advisory body to the City Council. In addition to the advertising campaign, the City currently contracts with the San Luis Obispo Chamber of Commerce for visitor services and additional non-advertising promotional and public relations services. The City also contributes to the San Luis Obispo County Visitors and Conference Bureau. Coordination with these programs will be essential for a successful campaign. The City has found that the public interest and welfare will be served by the solicitation for advertising services to conduct a comprehensive campaign that includes direct advertising to targeted California markets, as well as alternative advertising methods, and which provides a means to clearly evaluate the effectiveness of the campaign. It is the intention of the City of San Luis Obispo on the 25th day of June 1993 by 3:00 p.m., in the City Clerk's Office, 990 Palm Street, San Luis Obispo, CA, to receive proposals for the specific advertising services described in the following paragraphs. Mailed proposals should be posted to the City of San Luis.Obispo, P. O. Box 8100, San Luis Obispo, CA 93403-8100, and be received in the City Clerk's Office by the date and hour noted above. All proposals should be clearly marked "ADVERTISING SERVICES PROPOSAL" in the lower left comer of the mailing or delivery envelope. Late proposals or oral proposals will not be considered. The City reserves the right to reject any and all proposals. Selection of any proposer for such advertising services shall be the exclusive judgement of the City Council. If the City accepts a proposal, a professional services contract will be awarded to the proposer selected by the City. The term of the advertising contract is one year (July 1993 through June 1994), with the option for the PCC to renew for a second year (July 1994 through June 1995). For purposes of this proposal, the budget for direct advertising and marketing services is considered to be Eighty-Nine Thousand Dollars ($89,000) per year. The exact amount will be determined by City Council budget adoption in June 1993. THE CONTRACTOR WILL BE RESPONSIBLE FOR THE FOLLOWING: 1. Planning,preparing and implementing an advertising campaign, on the City's behalf, subject to PCC recommendation and City Council approval. 2. Providing account services such as, but not limited to, ad concept, design and production, media buys and placement, and additional services as needed. Also,. ATTACHMENT 4 Page 2 Advertising RFP checking, paying invoices, and accounting for all such activity conducted on the City's behalf in any media. Agencies should indicate whether they intend to collect a flat fee or accept a commission. If collecting a fee, agencies are required to dedicate the commission amount to the purchase of additional advertising. 3. Designing and conducting a program to monitor effectiveness of the advertising campaign, including but not limited to advertising responses. 4. Establishing and maintaining an effective working relationship with the PCC. Liaison between the PCC and Contractor will be with the PCC Advertising Subcommittee. Scheduled meetings will be on an "as needed" basis with PCC Advertising Subcommittee and Contractor to refine and adjust campaign objectives as recommended by the PCC. 5. Providing the PCC.with timely, written monthly reports one week prior to the regular meeting on the status of all aspects of the advertising campaign, including market response results. Attending monthly PCC meetings to discuss campaign activities. 6. Planning and commissioning any research activity that the PCC/City Council may require. This includes suggestions for and methods of continuing evaluation for the effectiveness of advertising campaigns. 7. Coordinating activities of the advertising campaign with promotional services provided by the San Luis Obispo Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau. Establishing effective working relationships with staff of the organizations referenced above, and other City bodies to achieve coordinated and efficient use of all available resources, avoiding a duplication of efforts. 8. Executing a standard Agreement to Provide Professional Services, including evidence of motor vehicle insurance coverage for all vehicles operated in the course of business. A copy of the standard agreement with insurance requirements is attached. EACH PROPOSAL PACKAGE MUST CONTAIN THE FOLLOWING STATEMENTS AND INFORMATION TO BE CONSIDERED FOR SELECTION: 1. Statement of proposed workscope. The workscope should: ■ cover one fiscal year (July 1993 through June 1994, with option for PCC to renew for a second year) ■ summarize the advertising campaign Page 3 Advertising RFP ■ state the objectives of, and general approach (philosophy) toward, the advertising campaign ■ state the specific strategy for achieving the above objectives (i.e., include a general schedule of media placement and other activities) ■ include .a budget for the campaign and a fee schedule for services to be provided ■ identify the agency program manager and key personnel responsible for the campaign such as copy and design/production personnel, and any subcontractors. 2. Resume of professional experience and samples of previous work (presentation of portfolio, including work for existing clients and evidence of strategic thinking and problem solving ability will be requested of those proposers who are selected for interviews). These materials will become the property of the City of San Luis Obispo. 3. A list of three professional references, including names and telephone numbers of current clients. The filing of such statements as described above shall constitute permission by the proposer for the City to verify information contained in such statements. Additional information may be requested from the proposer. Failure to comply with any such request may disqualify a proposer from further consideration. Proposals are public documents and may be subject to review and discussion in public session of the City Council and the PCC. SELECTION PROCEDURES The PCC will review all proposals. In addition, the PCC may request interviews with each proposer. Selection of the proposal which meets the needs of the City of San Luis Obispo will be accomplished by the City Council upon recommendation by the PCC. SELECTION OF THE BEST RESPONSIBLE PROPOSALS WILL BE BASED UPON THE FOLLOWING CRITERIA: 1. Proposer's experience in advertising services, which may include services to public agencies. 2. The quality and nature of proposed programs to be implemented for advertising services. (Innovative concepts and alternative approaches, in addition to direct advertising campaigns, are desirable.) 7-f'? Page 4 Advertising RFP 3. Proposals which address the following goals: (A) increasing off-season tourism; (B) increasing tourism during lower demand. nights, and (C) creating/promoting a calendar of events that visitors can use to plan trips to the City well in advance. The PCC will review, evaluate and rank the proposals. The City Council will make the final decision to award a contract. ADVERTISING SERVICE AS INDEPENDENT CONTRACTOR: In the event the City accepts a given proposal, the successful proposer shall agree that, at all times covered by the agreement, the proposer is acting as an independent contractor, not as an employee of the City, and as such, shall not accrue or be eligible for vacation, sick leave,workers'compensation,unemployment insurance benefits,medical insurance,or other similar benefits available to City employees. Any promotional service agreement with the City to provide the services referenced shall not be assignable without prior written consent of the City. \Pcc\rfP ?— .r3 ALPHABETICAL SOLICITATION LIST FOR RFP MAILING Barnett Cox & Associates 992 Monterey Street, #B San Luis Obispo, CA 93401 Brown & Clarkson Advertising 8437 Empresa Drive, Suite D San Luis Obispo, CA 93401 Catalyst Communication Arts 2241 Boulevard Del Campo San Luis Obispo, CA 93401 Coast and County Graphic Services 3436 Sacramento Drive San Luis Obispo, CA 93401 Connections 846 Higuera Street San Luis Obispo, CA 93401 DCO Graphic Design 793 Higuera Street San Luis Obispo, CA 93401 Dealers Network Exchange Magazine 470 Price Street Pismo Beach, CA 93449 Design, ETC. 738 Higuera Street San Luis Obispo, CA 93401 Genesport Marketing SLO 11295 Los-Osos Valley Road, Suite 23 San Luis Obispo, CA 93401 Gregory Gray P.O. Box 3146 Shell Beach, CA 93448 Image Design Graphics 738 Higuera Street San Luis Obispo, CA 93401 �-sem Ipekjian Design Verbatim 1012 Pacific Street San Luis Obispo, CA 93401 Johnson Graphic Design 2275 Flora Street San Luis Obispo, CA 93401 Karlene Design P.O. Box 12238 San Luis Obispo, CA 93401 Kornreich Gleason Design 385 Higuera Street San Luis Obispo, CA 93401 Mark Leunis Advertising 23875 Ventura Blvd., Suite 203-A Calabasas, CA 91302 LK Enterprises P.O. Box 362 Cayucos, CA 93430 MBW Advertising Design P.O. Box 4828 San Luis Obispo, CA 93406 The Media Store 1464 Auto Park Way San Luis Obispo, CA 93401 Pandora & Co. 350 Mitchell Drive Los Osos, CA 93402 Pointline Media 5690 West Mall Atascadero, CA 93422 Porter Design 846 Higuera Street San Luis Obispo, CA 93401 Pierre Rademaker Design — 738 Higuera Street San Luis Obispo, CA 93401 Ricard Marketing Communications P.O. Box 318 Morro Bay, CA 93443 Rob's House of Marketing 3580 Sacramento Drive San Luis Obispo, CA 93401 Rocglo Promotions P.O. Box 619 Arroyo Grande, CA 93420 SJ. Francis & Associates 1137 Vista Lago San Luis Obispo, CA 93401 Steve Simper Stonehedge Enterprises 1445 Prefumo Canyon, 7#24 San Luis Obispo, CA 93405 Studio Works in Original Design 1331 Archer San Luis Obispo, CA 93401 Studio 101 - 3485 Sacramento Drive San Luis Obispo, CA 93401 Suggs Lombardi Advertising 520 Higuera Street San Luis Obispo, CA 93401 Swanson Design 3485 Sacramento Drive San Luis Obispo, CA 93401 Tom Jones Advertising 11555 Los Osos Valley Road San Luis Obispo, CA 93401 Wildfire Marketing Communications 846 Higuera Street, Suite 5 San Luis Obispo, CA 93401 7-Sip" PROMOTIONAL COORDINATING COMMISSION ENHANCED PROMOTIONAL PROGRAM APPLICATION l• Applicant/Sponsor: San Luis Obispo International Film Festival Contact ■ Name: Mary A. Harris or Lee Cogan ■ Telephone Number: 543-0855 or 781 -5800 , respectively II. Funding Request Amount: $ 71 ,500 . 00 Ill• Proposal Description (please include a brief description of the event/project proposed; how the City's monies will be used; party responsible for implementation; target audience; proposed event date; method the City will use to measure success; and any other pertinent information): SEE ATTACHED 7-S7 ATTACHMENT 5 ATTACM4M Applicant/Sponsor: San Luis Obispo International Film Festival III. The San Luis Obispo International Film Festival will be an annual cultural event showcasing the history and art of film- making. The showings take place over three or more days, and will include gala premiere events, classics, artist showcases and retrospectives, outdoor screenings, silent films with live musical accompaniment, and student works. Venues for the Festival's screenings will be predominantly in the downtown .San Luis Obispo area, at the Palm, Fremont, and Mission Theaters. In addition to the annual Festival, a special event to promote the Festival will be presented in early spring. The monies received from the City of San Luis Obispo will be used to promote the Festival, assist in paying for film acquisition costs, venue rental fees, and other related expenses. The Festival is a volunteer organization, hence no monies will be spent on salaries. Implementation of the Festival and related promotional events will be the responsibility of the San Luis Obispo International Film Festival (incorporation and non-profit/tax exempt status pending) . The Festival is designed to be a local, regional, statewide, and ultimately, national and international draw. Attendees will be a diverse mix of tourists, locals, film aficionados, artists, entertainment industry figures, and students of film and their families. The Inaugural Festival will be a three-day event in October, 1993 . Future Festivals will be held in either October or early November. Special promotional events will be scheduled in early spring, most likely February/March. The City will be able to measure the event's success through our ticket sales, attendance statistics, lodging and restaurant reservations, promotional tie-ins, and media coverage. Page 2 IV. Itemized Budget for Event/Project (please itemize all costs associated with sponsoring event/project): 1 . Advertising, Printing, Promotion $ 5 , 500 . 00 2 . Venue Rental 5 , 000 . 00 3. Film Acquisition 6 , 000 . 00 4. Overhead, including fund raising expenses 3 , 000 . 00 TOTAL $ 19 , 500 . 00 V. Itemized Revenue Detail for Event/Project (please itemize all sources of revenue to fund proposed event/project): 1 . Ticket Sales $ 5 , 500 . 00 2. Corporate Sponsorship 1 ,500 . 00 3. Fund Raising 1 , 000 . 00 4. City Seed Money 111500 . 00 TOTAL $19 , 500. 00 }PLEASE SEE EXHIBIT "A" FOR EXAMPLES} 7-.x"57 \pccapp MARY A. HARRIS ATTORNEY AT LAW 1043 MARSH STREET SAN LUIS OBISPO, CALIFORNIA 93401 TELEPHONE (SOS) 343-OSSS FACSIMILE 16051 543-2456 August 20, 1993 Deb Hossli Administrative Analyst City of San Luis Obispo City Hall P.O. Box 8100 San Luis Obispo, CA 93403-8100 Re: San Luis Obispo International Film Festival Dear Deb: As supplemental information to our funding proposal, I wanted to let you know that the dates for this year's first Festival have been set for November 4 through 7, 1993 . Our previous dates were found to be in conflict with the opening weekend of the San Luis Obispo County Symphony. In moving the dates, we not only avoid . that conflict, but also fall more squarely within the emphasized November through April time period. If you have any questions about our scheduling, or any other matter discussed in our proposal, please do not hesitate to contact me. Very truly yours, MARY A. S MAH:mis 7- 60 AllS 3 a yo w w,� � 2 a=ao$' / r3c8�� = �5 � �HR r+ aE�ty, 9 .c 'FE 3p�mp� C1 Q g ��•.. O o Lo E- 7 10„ 7�i 70 U O Q L v vU2 t c � rL$� 6/ pp=L(j '.i t3 � �r t� 'C 6 m 0i- .. 'J' C 67 t 0� T C ° rA"' O .� — '— y i. O J s myy W.- . g Tt C I'Dp` �rJ o uy (Cp 6r..' a y c lot E�w o o. pp a� vyl 7q ; S. pa C� ^ I' maw^-0 -.0 d 1�9 g ti� 6f 'a ,05 'U p�'rL_i6 c G m so t�pp � 5 yy � _ _ , y Woo Q m•p60� G 7Cr . rJ 7 w W•y� C1 3j t j U'OLrC w O p l9 t. C ttl EOO U U rp C:� ..�— . rp Y = O U p > m C I s E aa•�w��0u— a Q �s a r7 " a�ayz Ui� O.A9� a°� � � r ". seacv '5o ° = EO , 3 c' ta 77 ur O 1 U di bqC> L yy h U'OrV Q A U u , r� ,� , a � a ., � •�ncd C y sm es - C L 14 G A 7 L O 6i a U s a v t V V T N i r 4 r VJ =fi r i y � y•� V •', �s ownAll 42 _ O w n3•y m �L1� y�� 3 e: a1.: m3 �n , yx � ei- cm— d naa" cv = ai 3= y � _rE ► m5 v tea+ ' .L L.• m a, E >�E �. a m.?! 'cC'7yR 7 O� 9 L j �'UC a W Q d 0` �•e7 Z W y C Cx7' .0 Z 9 .J v, $ ° d — . "• v C.t+ > Vb ^ Jia c Coo a�� — '1 yy y d'ot� y H Ir, c � `a�j c o c coo 9 s U `Q �j C o Y+ p� C� T 9 G .rS > as mo ' d ei ut � g B L a, o � m -,rz fv7 = V G i a 3 w w r la y a-- w 7 N 011 O w'O U..: og a �youo o - Q m 1.� w� o'fld �' •c•__Ts3: t r7 L i L w d -Q. y' G ? 7 �:1 > 67 t7 •CS c9 30•- >. om1 o uim m.Cy �ZC � 6 uy � owm4m S 3R3aZA. � mG. UCD aw =05 ca e6 ty. ¢ �... y aw r • r U F. 'coo Rn■ G Gal nm C ATTACHMENT 6 7- (P/ ZA',-I CC7-1 IJ7fr CIT7hf ' .-- Z0d 99V SS3ad SM3N HS TT:OT26 , £0 d3S August, 1993 Notes from conversation with: Rea Lewis Assistant Administrative Director Santa Barbara International Film Festival 805/963-0023 - SB Festival 9 years old - Started as one weekend, now 10 days - Now has two, full-time paid staff - Early development was "painfully slow"; Is stressful, requires high energy leadership. - Started with attendance of about 6, 000; now 25, 000 . - Audience is 48% tourists - city supports with $15, 000 . First year supported with "founders" dollars. - Economic retail impact related to location of theatres (see newspaper article) . - Most tourists from Los Angeles and San Francisco; small percentage from around U.S. and Abroad. Some from LA stay with friends. - Good community project - requires 250 volunteers. - Other Festivals: San Francisco, Los Angeles, Palm Springs; also a film center in Ojai. - Some thoughts on Organization: - Avoid "Oscar" time which is April (want to maximize mental and physical availability of film people) . - Film Festival in SLO "has great potential" . - Emphasized importance of staff with meaningful contacts in the industry. - Promotion Hot Button - First two years they used local PR professional; now have one from LA -- more effective. Knows the right people and communication avenues that work to build "stature" of Festival. Prepared by: Kathy Smith, San Luis Obispo Promotional Coordinating Committee �- 6 2 PROMOTIONAL COORDINATING COMMITTEE REGULAR MEETING JULY 21, 1993, 5:30 P.M. PLANNING CONFERENCE ROOM MINUTES 1. CALL TO ORDER The meeting was called to order by Chairperson Jack Gatz with the following members in attendance: Pati Brown, Barbara Gregg, Jesse Norris, Bill Pyper, Laverne Schneider, and Kathy Smith. Guests in attendance were as follows: Rebecca Berner (Chamber of Commerce), Jonni Eylar (Visitors & Conference Bureau), and Dave Garth (Chamber of Commerce). 2. APPROVAL OF MINUTES FROM MAY 12 AND MAY 26, 1993 MEETINGS The minutes were approved by the Committee as submitted. 3. PUBLIC COMMENT There was no public comment. 4. CONSIDERATION OF THE PROMOTION PROGRAM Mr. Norris (Chair of the Advertising Subcommittee) provided the Committee with an overview of the Subcommittee's preliminary recommendations for each component of the coming year's promotion program (i.e., the advertising contract, the Chamber contracts, the VCB contract, and the Enhanced Promotion Program). The Committee subsequently discussed each component of the Program and arrived at the following recommendations to forward to the City Council for approval. ■ Advertising Contract The Committee heard presentations from: (1) the Barnett, Cox & Associates; (2) Tom Jones Advertising, and (3) Marc Luenis Advertising for the 1993-94 advertising contract. After discussing the advantages and disadvantages of each proposal, the Committee unanimously recommended that Barnett, Cox & Associates (BC&A's) be awarded the 1993-94 advertisisng contract (with an option to renew for one additional year). The Committee indicated that they were very pleased with BC&A's performance over the past year and felt BC&A's proposal was most responsive to the City's needs. 7- 63 ATTACHMENT 7 Page 2 ■ Chamber of Commerce Contracts A. Visitor's Center Contract Mr. Garth provided the Committee with an overview of the Chamber of Commerce's proposal for the 1993-95 visitor's center contract. He explained that the Chamber was requesting $55,200 for 1993-94 (which represents no increase in the contract over 1992-93 levels) and $57,400 for 1994-95 (which represents a 4% cost of living increase over the 1993-94 contract levels). At the request of the Committee, Mr. Garth indicated that he would be willing to negotiate the "base level" advertising responses (mail vs. 800 number responses) given the City's greater reliance on the 800 number. A motion was subsequently made to endorse the Chamber's visitors center contract proposal for 1993-95. The motion passed on a 5/2 vote with Ms. Smith and Ms. Schneider dissenting. It is important to note that Ms. Smith's and Ms. Schneider's dissenting votes did not reflect dissatisfaction with the Chamber's performance. Rather, both felt it was inappropriate to recommend cost of living increases in the second year of the contract given the state of the City's finances (and the fact the 1993-95 Financial Plan did not contain sufficient monies to fund the increase). B. Promotion Contract Mr. Garth provided the Committee with an overview of the Chamber of Commerce's proposal for the 1993-95 promotion contract. He explained that the Chamber was requesting $32,100 for 1993-94 (which represents no increase in the contract over 1992-93 levels) and $33,400 for 1994-95 (which represents a 4% cost of living increase over the 1993-94 contract levels). A motion was subsequently made to endorse the Chambers promotion contract proposal for 1993-95. The motion passed on a 5/2 vote with Ms. Smith and Ms. Schneider dissenting. It is important to note that Ms. Smith's and Ms. Schneider's dissenting votes did not reflect dissatisfaction with the Chamber's performance. Rather, both felt it was inappropriate to recommend cost of living increases in the second year of the contract given the state of the City's finances (and the fact the 1993-95 Financial Plan did not contain sufficient monies to fund the increase). Page 3 - ■ Visitors and Conference Bureau Contract Ms. Eylar provided the Committee with an overview of the VCB's proposal for the 1993-95 contract. She explained that the VCB was requesting $67,700 for 1993-94 (which represents 3.5% of the total TOT collected two years prior) and $71,700 for 1994-95 (which represents 3.5% of the TOT collected two years prior). A motion was subsequently made to recommend to the City Council that the VCB receive funding of $54,000 in 1993-94 (which represents no increase in the contract over 1992-93 levels) and $56,200 for 1994-95 (which represents a 4% cost of living increase over the 1993-94 contract levels and is consistent with the approach taken with the Chamber's contracts). The motion passed on a 5/2/1 vote with Ms. Smith and Ms. Schneider dissenting and Mr. Norris abstaining. . It is important to note that Ms. Smith's and Ms. Schneider's dissenting votes did not reflect dissatisfaction with the VCB's performance. Rather, both felt it was inappropriate to recommend cost of living increases in the second year of the contract given the state of the City's finances (and the fact the 1993-95 Financial Plan did not contain sufficient monies to fund the increase). ■ Enhanced Promotion Program Mr. Norris reported that the City received 16 applications requesting funding of over $226,000 from the Enhanced Promotional Program. He then provided the Committee with an overview of the Subcommittee's review process (which included a public meeting), the types of funding requests received, the preliminary funding recommendations for the Program, and the rationale behind the recommendations. The Subcommittee recommended that the $50,000 be allocated as follows: $38,500 added to the City's advertising contract to increase its effectiveness and $11,500 be allocated to the International Film Festival group. The Committee unanimously endorsed the Subcommittees' recommendation, but requested that the Subcommittee work to refine the specifics of how the advertising monies would be spent prior to requesting Council approval. Staff agreed to coordinate this effort. 5. CHAIRPERSON'S REPORT Chairperson Gatz provided the Committee with an overview of the Mayor's Quarterly luncheon. He also thanked the Committee for their good work with the Grants-In-Aid process. 74.r Page 4 6:. COMMITTEE LIAISON REPORTS There were ho Committee Liaison`Re.ports: 1. STAFF REPORT There was no staff report. & ADJOURN TO AUGUS 12;' 1993 the meeting was adjourned: at 8'05 p.m. ME,AG AGENDA r� DA r4 q-z/-9 ITEM #—L._ OUNCIL ❑ DIR v�� San Luis Obispo County ❑ FIFIN DIR RE CHIEF FI c�o ,iv Visitors �� Conference Burea B'�SroRavEY ❑ P�vDIFl PCLERKIORIG ❑ POLICE CHF S�P 2 V ❑ MGMTTEAM 12 REC DIR CITY COUNCII CA ❑ CAEAO F!e-E [] UTIL r t4 ,-UIS LUIS OBISPO. j' ❑ PERS DIR Why Increase Funding to the VCB? , The VCB has requested $67,700 for 1993/94 and 6% more in 1994/95. City staff has recommended that our budget for both years be kept at $54,000, the same as this year. * The $67,700 represents 3.5% of the TOT collected in 1991/92 (the agreed upon formula) when the bed tax rate was increased to 9%. Staffs and the PCC's recommendation will put the City's investment at 2.8% of the TOT for this year and less than that in 1994/95. * Our programs are measurable, returning up to 4 times the investment made by the City with the VCB. * More funding will enable the VCB to: ► Advertise longer in the off-season a monthly calendar of events in LA , San Jose, and Orange County * seen by over 2 million people each week * measured by the number of responses ► Create and distribute an arts package brochure designed to include lodging, restaurant, and performance tickets the first week of March. * Distributed to a minimum of 10,000 ad respondents * Measured by the number of packages sold * Great first step to packaging for the Performing Arts Center The VCB needs the City's full commitment to be able to continue to enhance the economic value of tourism in San Luis Obispo. 1041 Chorro Street. Suite E. San Luis Obispo, California 93401 (805) 541-8000 FAX C805) 543-1255 i It's All Here! Enchanting Hearst Castle, award-winning wineries, Incomparable beaches and -: small towns in pastoral settings. PLUS j October 1.2 The Nord,San Luis Obl" October 2.3 Harbor Festival. Morro Rey October 3 i Autumn Apex Chamber Conceit, San Luis Obispo October ] i' Apple Festival, CGn Ink Ohhpo October 9 Pioneer Days, Paso Robles October 12.11 The First Goodbye, Cal Poly October 16 Colony De Atascadem October 16 Dubussy Trio, Cal Poly October 16.17 47th Annual Cam Festival Piano Beach 1.800.634-1414 for a free brochure San Luis Obispo County v. California nays 0 Co -