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HomeMy WebLinkAbout07/19/1995, 1 - 1995-97 PROMOTIONAL PROGRAM Q����I�RgI�IIIIIIIIII100 II "7 r MEETING DATE: �1c� or San WIS OBIspo JulY 19 1995 COUNCIL AGENDA REPORT ITEM NU ER: FROM: Ken Hampian, Assistant City Administrative Officer Prepared by: Sue Baasch, Administrative Analyst c, SUBJECT: 1995-97 Promotional Program PCC RECOMMENDATION 1. Approve and authorize the Mayor to execute two-year contracts with the Chamber of Commerce for (1) Visitor Services and (2) Promotional Services in the amounts of $58,030 and $33,344 each year respectively (with no cost of living increase in 1996-97, 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$81,700 for 1995-96 and $81,700 for 1996-97; 3. Approve and authorize the Mayor to-execute a two year contract with the firm of Barnett, Cox, and Kornreich for advertising services in the amount of$91,200 for 1995- 96 and $94,000 for 1996-97. CAO RECOMMENDATION Staff supports the PCC recommendations, with the following two exceptions: ■ Approved compensation for the Chamber contracts should be within the projected increases included in the 1995-97 Financial Plan, which would reduce the total requested funding for the two contracts combined from $182,748 to $181,700 over the two years, a difference of $1,048. ■ Approved compensation for the VCB contract should be within the projected increases included in the 1995-97 Financial Plan, which is $55,300 in 1995-96 and $57,000 in 1996-97, or $112,300 over the two year period. REPORT-IN-BRIEF The Promotional Coordinating Committee (PCC) has completed its review of each component of the 1995-97 Promotional program and has developed recommendations for the City Council's consideration. The PCC recommends the City: ■ Continue to contract with the Chamber of Commerce for visitor center and promotional services. ��►►►�►��iliu��lllllll►►►► l���lll city Of San L.AISOBISPO EMS COUNCIL AGENDA REPORT 1995-97 Promotional Program Page 2 ■ Continue to contract with the Visitors and Conference Bureau (VCB) for promotional services, but at a significantly higher level than in the past. ■ Continue to contract with Barnett, Cox and Kornreich (BC&K) 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. DISCUSSION Background Each year, the City spends nearly a quarter of million dollars on a variety of services to promote the City as an overnight tourist destination. Funding for the promotional program is derived from the transient occupancy tax (TOT) commonly referred to as the "bed tax". The City's promotional program is overseen by the PCC and traditionally 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. This contract is the result of a detailed selection process, usually performed every two years. The recommended contractor is Barnett, Cox and Kornreich. 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 1995-97. The 1995-97 Financial Plan recently adopted by the Council provides 2.5% and 3.0% cost of living increases in each year for their contracts. The purpose of this report is to provide the City Council with an overview of the PCC's recommendations for the 1995-97 promotional program. In the cases where the CAO's recommendation differs, an explanation of those differences is also provided. The proposals presented by each organization are available in the City Clerk's office for public and City Council review. Review Process and Recommendations I. CHAMBER OF COMIWERCE CONTRACTS Consistent with past practice, the Chamber of Commerce was requested to submit a two-year proposal to the PCC. The PCC performed a detailed evaluation of the Chamber's written proposal to provide visitor center and promotional services. Following an oral presentation, the I ���►►►�►�i���lllllfllll�i1° ����U city Of San tuts OBISPO COUNCIL AGENDA REPORT 1995-97 Promotional Program Page 3 PCC unanimously recommended that Council continue to contract with the Chamber for said services as they continued to offer cost-effective and valuable benefit to the City. Summary of scope of services Under the proposed contracts, the Chamber of Commerce provides two types of services: (1) a full-service visitors' center, open to the public seven days per week; and (2) promotional services. ■ 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. ■ Chamber promotional services include working to obtaining 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, letters and personal contacts with travel writers and editors throughout the State. Chamber of Commerce Proposal - During the oral presentation of the Chamber's 1995-97 proposal, Executive Director David Garth provided an overview of the diverse activities necessary to an effective and coordinated promotional program. The Chamber's proposal is to continue to provide the same services through the 1995-97 Financial Plan period at a compensation of $58,030 per year for the Visitor's Center services and $33,344 for the promotional services. This differs from the Financial Plan's 2.5% and 3.0% annual cost of living adjustments by front-loading one 4.67% increase in 1995-96, with no increase in year two. The Visitor's Center contract would include fulfillment of 2,000 mail responses and 3,000 toll- free telephone responses. (Additional responses would be charged to the City at a rate of$.85 per mail response and $1.25 per toll-free telephone response.) PCC Recommendation - The PCC is recommending that the Chamber of Commerce be funded at the requested level of $58,030 each year for visitors services and $33,344 each year for promotional services. It is the PCC's opinion that these activities are an integral and valuable part of the City's promotional program and that the Chamber is most qualified to provide these services. CAO Recommendation - The CAO's recommendation differs slightly from the PCC's. The CAO can support the front-loading of the Chamber contract compensation to year one with no -3 ���ii�►�►�IIu111IIIIII I� City Of San LAS OBI SPO COUNCIL AGENDA REPORT 1995-97 Promotional Program Page 4 change in year two, but the total dollars over the two year contract should not exceed the cost- of-living projections used in the development of the City's 1995-97 Financial Plan--2.5% for 1995-96 and 3.0% in 1996-97. Over two years the Financial Plan includes $181,700 for the Chamber contracts. The Chamber's request is for$182,748, an additional$1,048. Staff would recommend that the Chamber select the manner in which the contract dollars are adjusted. 1995-96 1996-97 Total PCC recommendation: ■ Visitors Center services $58,030 $58,030 ■ Promotional services 33.344 33.344 $91,374 $91,374 $1829748 CAO recommendation: ■ Visitors Center services $58,030 $58,030 ■ Promotional services 32.820 32.820 $90,850 $90,850 $1819700 H. VISITORS AND CONFERENCE BUREAU Consistent with past practices, the VCB was requested to submit a two-year proposal to the PCC. As with the Chamber contract, the PCC determined that the proposal continued to offer valuable services to the City. Summary of Scope of Services The VCB's contract represents the City's annual contribution to the City's 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 Proper - When presenting the 1995-97 VCB promotional funding request to the PCC, the VCB Executive Director, Joni Biaggini, explained that the VCB requested funding based on a percentage (3.5%) of the transient occupancy tax (TOT) collected two years prior to the year being funded. For the 1995-97 renewal of its contract with the City, the VCB requested $81,700 per year. According to Ms. Biaggini, this would fund one full-time person for city- wide conferences and services, an activity supporting the new Performing Arts Center. In addition, the VCB requested $5,000 to perform a visitor survey. �������n►►►I►IIIIIIIIIII�1° �IIJIII city of San L"IS OBISp0 is COUNCIL AGENDA REPORT 1995-97 Promotional Program Page 5 PCC Recommendation - The PCC is recommending that the VCB be funded at the requested level of$81,700 per year for 1995-96 and 1996-97. It is the PCC's opinion that although this represents a large increase over the previous two-years' funding, it is 3.5% of the TOT from two years ago, a funding level informally agreed to by participating cities when the VCB was formed in 1986. The PCC marketing subcommittee felt that as the County seat, the City of San Luis Obispo should show leadership in this area by funding the VCB at the full 3.5% of the TOT. It was the opinion of the subcommittee that the City of San Luis Obispo should work with other cities on the central coast for the benefit of all. The PCC did not at this time recommend funding the request for $5,000 for a visitor survey. 1995-96 1996-97 Total PCC recommendation: ■ VCB Contract $81,700 $81,700 $163,400 CAO Recommendation - The CAO's recommendation differs from the PCC's. Staff recommends the 1995-97 VCB funding be consistent with the 2.5% and 3.0% cost-of-living adjustment provided to the other promotional contractors. The 1995-97 Financial Plan includes $112,300 to fund the VCB contract over the two years. The VCB is requesting $81,700 each year, or $163,400 over the two year period. While the VCB states 3.5% of the TOT is the appropriate level of funding and consistent with the level of funding from other member Cities, it is staffs position that the City is currently spending more than this amount for promotion. The City currently has a policy of allocating 20% of the TOT to "cultural, community promotion and economic development activities". In the past, the City has easily reached this target. The projected 1995-96 TOT is $2,450,000, and 20% of that amount is $490,000. The 1995-97 Financial Plan includes more than $360,000 for community promotion (the Chamber contract, VCB, advertising services, the "expanded marketing program", and grants-in-aid to support cultural activities). In addition, the City has invested about$6 million in the construction of the Performing Arts Center and is paying about $80,000 and $40,000 per year toward annual operating expenses over the next two years. In addition, about $130,000 is allocated annually to the Economic Development Program. The City will also be making an investment of over $400,000 in the County Historical Museum. Thus, the City easily achieves its 20% policy level. The expenses listed above reflects only the direct cash investment. Hundreds of thousands of dollars are invested annually through in-kind support to dozens of special events which help fill the City's hotel and motel rooms (such as Thursday Night's Farmers' Market, Mardi Gras, the Criterium). The City also provides facilities virtually free of charge to such groups as the Children's Museum, Little Theatre and Arts Center. While these events and facilities have a greater impact on City hotels and restaurants than those located outside our City boundaries, many of these events also create important regional benefits. ��ul�►�►►►Illlllllllllp► �Ulli city of sank-.,IS OBISPO COUNCIL AGENDA REPORT 1995-97 Promotional Program. Page 6 Accordingly, the CAO's recommendation for 1995-97 VCB funding is based on the standard cost of living adjustment, as follows: 1995-96 1996-97 Total CAO recommendation: ■ VCB Contract $55,300 $57,000 $112,300 The visitor survey idea should be referred back to the VCB for consideration from the $50,000 dedicated annually to support programs which advance tourism (e.g. Film Festival, Decemberfest, the Highway 101 sign). Recently the UCSB Economic Forecast program has submitted a proposal to the VCB to complete a visitor survey. The proposal seems to have significant potential and should be thoroughly reviewed by the PCC and City Council at a later date. III. ADVERTISING CONTRACT The purpose of the City's advertising contract is to develop an advertising campaign to encourage 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 through 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 In April of this year, the City Council approved the Advertising Services Request for Proposal (RFP) without an "exclusivity" requirement to limit firms, bidding on the project to agree to provide no other marketing services for other cities in the County. As explained in the RFP, the City has allocated $91,200 and $94,000 for advertising services in 1995-96 and 1996-97, respectively. The RFP was subsequently distributed to numerous area advertising, marketing and public relations firms. Three proposals were received in response to the City's RFP. They were from Innovative Advertising, Tom Jones Advertising, and Barnett, Cox, and Kornreich. The PCC's marketing subcommittee met to review and ranking of the written proposals. They requested that all firms be invited to give an oral presentation for the full PCC at their June 14, 1995 meeting. Following the oral presentations, the PCC discussed thoroughly the perceived strengths of the written proposals and oral presentations. Key issues in the discussion included prior and depth of experience in marketing services, especially to public agencies; consistency and professionalism of representation; creativity and positiveness in approach. In conclusion, I �-G ����i�►�►►���IIIIIIII!{�1° ���lh city Of san i.Js OBIsPO NMI COUNCIL AGENDA REPORT 1995-97 Promotional Program Page 7 the PCC felt that the firm of Barnett, Cox and Kornreich had provided excellent service to the City under the prior contract, and that the firm's proposal, consistent with prior service, was responsive and creative. Barnett. Cox and Kornreich's Proposal As requested, the proposal is for two years, funded at $91,200 in 1995-96 and $94,000 in 1996- 97. Consistent with prior practice the contract is general in nature so that the advertising contractor and PCC have the flexibility to modify the campaign throughout the term, as needed. The focus and objectives are based on a combination of historically successful advertising approaches. In its proposal, Barnett, Cox and Kornreich stated its objective was to showcase San Luis Obispo to potential visitors in specified target markets through the use of paid advertising and to do so in such a way that consumers are moved to make visits (ideally for numerous room nights) to San Luis Obispo. Advertising undertaken for the City of San Luis Obispo will reflect the community's commitment to a pristine environment. The specific marketing goals are to increase the City's TOT; to increase/extend overnight visits to the City; and to increase the City's tourism business during traditionally "soft" months. The proposed advertising services will be guided by key principles: ■ Reliance on research. ■ Maximum budget for advertising placement. ■ Exploration and implementation of cooperative opportunities with local attractions. ■ Improvement and enhancement of creative materials (print ads, TV commercials, Accommodations Guide, and color brochure). CAO's recommendation The CAO concurs with the PCC's recommendation. IV. ECOSLO CONTRACT Normally, the annual ECOSLO contract would be presented to Council at the same time as the promotional contracts. However, based on the change in contract emphasis approved with the Financial Plan, staff needs more time to draft the new contract. The new contract is to emphasize community outreach and education on a broad range of environmental issues, instead of the.solid waste and recycling focus of the past (sold waste and recycling issues are now to be handled mostly at the regional level or through the City's new Utilities Conservation Office). The agreement will be drafted with the input of ECOSLO's new Executive Director, who begins /- 7 ������i�u►�IIIIIIIBP1° ��U��l city of San t,..,s OBISPO COUNCIL AGENDA REPORT 1995-97 Promotional Program Page 8 work on July 17th. Therefore, the ECOSLO contract will be to Council in either August or early September. ECOSLO staff concurs with the timing. FISCAL BIPACT: Adequate budget is available in the 1995-97 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, an additional $1,048 for the Chamber and $51,100 for the VCB over the two year period will need to be appropriated. ATTACEUWTNTS: 1 Chamber of Commerce.Contract - Visitor Services and Tourist Information Activities 2 Chamber of Commerce Contract - Promotional Services 3 VCB Contract 4 Barnett, Cox and Kornreich Contract City Council Office Reading File 1 Chamber of Commerce Proposal 2 VCB Proposal 3 Advertising RFP Proposals 4 PCC Minutes �—O ATTACHMENT 1 AGREEMENT TO PROVIDE VISITOR AND TOURIST INFORMATION ACTIVITIES THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and CHAMBER OF COMMERCE OF SAN LUIS OBISPO, INC., CALIFORNIA, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, City desires to 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 taldng place in the City; and WHEREAS, Contractor is qualified for and the office is equipped to carry out such activities on behalf of the 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 promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until June 30, 1997. 2. INCORPORATION BY REFERENCE. Contractor's proposal dated April 17, 1995, is hereby incorporated into and made a part of this Agreement. 3. PROGRAM COORDINATION. A. CITY. The City Administrative Officer or the designated representative shall be the Project Manager representing the City for all purposes under this agreement. B. CONTRACTOR. Contractor shall assign a single Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor. Dave Garth is hereby designated as the Project Manager for the 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. Chamber of Commerce Visitor Services Agreement -Page 1 �- 9 4. CITY'S OBLIGATIONS. For providing services as specified in Exhibit A to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: 1995-96 1996-97 ■ Visitor's Service/Tourist Information Activities $58,030 $58,030 Payment shall be made in four installments, as follows: ■ September 1, 1995 $292015 ■ January 30, 1996 29,015 ■ July 30, 1996 29,015 ■ January 30, 1997 29.015 $116,060 5. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as described in Exhibit A attached hereto and incorporated into this Agreement. The City contracts with the Contractor and the Visitors and Conference Bureau (VCB) for promotional services. The City also contracts with an independent agency to provide advertising services. 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 association with the Promotional Services, VCB, and Advertising services agreements. 6. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Council. 7. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 8. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. Chamber of Commerce Visitor Services Agreement - Page 2 9. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo P.O. Box 8100 San Luis Obispo, CA 93403 Contractor Chamber of Commerce 1039 Chorro Street San Luis Obispo, CA 93401 Attn: Dave Garth 10. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST:, CITY OF SAN LUIS OBISPO, A Municipal Corporation By: Diane Gladwell, City Clerk Allen Settle, Mayor APPROVED AS TO FORM: CHAMBER OF COMMERCE By: ff G.) rge en, ty Attorney Dave Garth, Executive Director Chamber of Commerce Visitor Services Agreement -Page 3 EXHIBIT A SCOPE OF WORK - Visitors Services and Tourist Information Activities 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's office will provide information to visitors, businesses 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, and a bulletin board 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 5,000 advertising responses per year (2,000 mail and 3,000 toll-free telephone responses). 6. In all activities, Contractor shall be a public relations agency disseminating information and creating good will 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. Chamber of Commerce Visitor Services Agreement - Page 4 �_ / EXHIBIT B GENERAL TERMS AND CONDITIONS CONTRACT REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages, and amounts specified in Exhibit C to this contract within 10(ten)calendar days after notice of contract award as a precondition to contract execution. CONTRACT PERFORMANCE 2. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state,county, city,and special district laws, ordinances, and regulations. 3. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 4. Payment of Taxes. The contract prices shall include full compensation for all taxes which the Contractor is required to pay. 5. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 6. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 7. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 8. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 9. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as-it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 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. Chamber of Commerce Visitor Services Agreement - Page 5 1-13 10. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the services provided by the Contractor. 11. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials famished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 12. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 13. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 14. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees,agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 15. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 16. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform; which notice must give the Contractor a 10 (ten)calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties,obligations,responsibilities,or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination,minus any offset from such payment representing the City's damages from such breach. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. 17. 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 Chamber of Commerce Visitor Services Agreement - Page 6 / 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. 18. Costs and Attorneys 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. 19. Recycled Products. A ten percent preference, not to exceed one thousand dollars per contract, will be given to recycled products. The fitness and quality of the recycled product must be at least equal to unrecycled products as determined by the City. The preference percentage shall be based on the lowest price quoted by the supplier or suppliers offering nonrecycled products. Price preferences may be offered in excess of the ten percent ceiling established in this section if it can be shown that purchase of a recycled product or material will result in greater long-term savings to the City. 20. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 21. Copies of Reports and Information. If the 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 work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. Chamber of Commerce Visitor Services Agreement - Page 7 / /� EXHIBIT C INSURANCE REQUIREMENTS: CONTRACTORS The 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, its agents, representatives, employees or subcontractors. Minimtun 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 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 Coveraee. 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. ATTACHMENT 2 AGREEMENT TO PROVIDE PROMOTIONAL SERVICES THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and CHAMBER OF COMMERCE OF SAN LUIS OBISPO, INC., CALIFORNIA, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, City desires to contract with the Chamber of Commerce 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, Contractor is qualified for and the office is equipped to carry out such activities on behalf of the 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 promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until June 30, 1997. 2. INCORPORATION BY REFERENCE. Contractor's proposal dated April 17, 1995, is hereby incorporated into and made a part of this Agreement. 3. PROGRAM COORDINATION. A. CITY. The City Administrative Officer or the designated representative shall be the Project Manager representing the City for all purposes under this agreement. B. CONTRACTOR. Contractor shall assign a single Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor. Dave Garth is hereby designated as the Project Manager for the 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. Chamber of Commerce Promotional Services Agreement -Page 1 4. CITY'S OBLIGATIONS. For providing services as specified in Exhibit A to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: 1995-96 1996-97 ■ Promotional Services $32,820 $32,820 Payment shall be made in four installments, as follows: ■ September 1, 1995 $16,410 ■ January 30, 1996 169410 ■ July 30, 1996 16,410 ■ January 30, 1997 16.410 $65,640 5. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as described in Exhibit A attached hereto and incorporated into this Agreement. The City contracts with the Contractor and the Visitors and Conference Bureau (VCB) for promotional services. The City also contracts with an independent agency to provide advertising services. 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 association with the Visitor Center Services, VCB, and Advertising services agreements. 6. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Council. 7. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 8. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. Chamber of Commerce Promotional Services Agreement - Page 2 9. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo P.O. Box 8100 San Luis Obispo, CA 93403 Contractor Chamber of Commerce 1039 Chorro Street San Luis Obispo, CA 93401 Attn: Dave Garth 10. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: , CITY OF SAN LUIS OBISPO, A.Municipal Corporation By: Diane Gladwell, City Clerk Allen Settle, Mayor APPROVED AS TO FORM: CHAMBER OF COMMERCE (ae& By: leg G Jor sen ity Attorney Dave Garth, Executive Director Chamber of Commerce Promotional Services Agreement -Page 3 EXHIBIT A SCOPE OF WORK - Promotional Services 1. Contractor 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. 2. Contractor shall include personnel qualified in public relations. Public information shall be available as necessary for the successful implementation of a promotional program. 3. Contractor 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 Contractor. 4. The program to be conducted by the Contractor shall include, but not be limited to the following: a. Writing, producing and distributing 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. b. 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. C. Providing 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. d. Maintaining 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. e. Submitting a monthly written report of promotional services rendered including copies of press releases, feature stories, photographs, and illustrations, radio and television news materials, fliers, graphics, and other materials prepared on behalf of the City at each regular meeting of the PCC. Said monthly report shall include an itemized statement regarding Contractor staff hours devoted to the City's promotional program during the preceding month. Chamber of Commerce Promotional Services Agreement -Page 4 EXHIBIT B GENERAL TERMS AND CONDITIONS CONTRACT REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages, and amounts specified in Exhibit C to this contract within 10(ten)calendar days after notice of contract award as a precondition to contract execution. CONTRACT PERFORMANCE 2. Ability to Perform. The Contractor wan-ants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county,city,and special district laws, ordinances, and regulations. 3. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 4. Payment of Taxes. The contract prices shall include full compensation for all taxes which the Contractor is required to pay. 5. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 6. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 7. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 8. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 9. Contractor Non-Discrimination. In the performance of this work, the.Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 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. Tbereupon, 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 fording 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. Chamber of Commerce Promotional Services Agreement -Page 5 I— a 10. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the services provided by the Contractor. 11. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 12. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 13. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 14. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify,protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 15. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest,or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 16. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform; which notice must give the Contractor a 10 (ten)calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties,obligations,responsibilities,or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination,minus any offset from such payment representing the City's damages from such breach. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. 17. 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 Chamber of Commerce Promotional Services Agreement -Page 6 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. 18. Costs and Attorneys 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. 19. Recycled Products. A ten percent preference, not to exceed one thousand dollars per contract, will be given to recycled products. The fitness and quality of the recycled product must be at least equal to unrecycled products as determined by the City. The preference percentage shall be based on the lowest price quoted by the supplier or suppliers offering nonrecycled products. Price preferences may be offered in excess of the ten percent ceiling established in this section if it can be shown that purchase of a recycled product or material will result in greater long-term savings to the City. 20. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 21. Copies of Reports and Wormation. If the 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 work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. Chamber of Commerce Promotional Services Agreement -Page 7 EXHIBIT C INSURANCE REQUIk%EMENTS: CONTRACTORS The 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, its agents, representatives, employees or subcontractors. Minimtmt 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 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 Coverae. 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. � 4/ ATTACHMENT 3 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, 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 promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and t-ntered, as first written above, until June 30, 1997. 2. INCORPORATION BY REFERENCE. Contractor's proposal, "1995-97 Funding Request", is hereby incorporated into and made a part of this Agreement. 3. PROGRAM COORDINATION. A. CITY. The City Administrative Officer or the designated representative shall be the Project Manager representing the City for all purposes under this agreement. B. CONTRACTOR. Contractor shall assign a single Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor. Jonni Biaggini is hereby designated as the Project Manager for the 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. 4. CITY'S OBLIGATIONS. For providing services as specified in Exhibit A to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: 1995-96 1996-97 ■ Promotional and Advertising Services $55,300 $572000 Visitors and Conference Bureau Agreement - Page 1 i Payment shall be made in four installments, as follows: ■ September 1, 1995 $ 279650 ■ January 30, 1996 27,650 ■ July 30, 1996 28,500 ■ January 30, 1997 28.500 $112,300 5. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as described in Exhibit A attached hereto and incorporated into this Agreement. The 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 Contractor agrees to make every reasonable effort to coordinate activities and to identify and avoid duplication of costs association with the Chamber of Commerce and marketing/advertising services agreements. 6. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Council. 7. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 8. 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. 9. ASSIGNMENT AND SUBCONTRACTORS. This agreement is for the performance of professional marketing services of the Contractor and is not assignable by the Contractor without prior written consent of the City. The Contractor may employ other specialists to perform special services as required with prior approval by the City. 10. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. Visitors and Conference Bureau Agreement - Page 2 /—C2Y 11. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo P.O. Box 8100 San Luis Obispo, CA 93403 Contractor County of San Luis Obispo Visitors and Conference Bureau 1041 Chorro Street San Luis Obispo, CA 93401 Attn: Jonni Biaggini 12. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WIEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: Diane Gladwell, City Clerk Allen Settle, Mayor APPROVED AS TO FORM: VISITORS AND CONFERENCE BUREAU By: e y . Jo ens , City Attorney Jonni Biaggini, Executive Director Visitors and Conference Bureau Agreement - Page 3 /—t27 EXHIBIT A SCOPE OF WORK 1. Contractor will maintain an office suitable for the conduct of a visitors and conference bureau. This office shall be open during normal business hours to facilitate contact with conference representatives. 2. Contractor shall include personnel qualified in visitors and conference bureau administration. 3. Contractor shall conduct a visitors and conference bureau on behalf of City as outlined below or as may be modified from time to time by mutual agreement between the City and the Contractor. 4. The program to be conducted by the Contractor shall include, but not be limited to the following: a. Developing direct sales efforts to attract group business and conferences. Major markets would include Los Angeles, San Francisco, Sacramento, Bakersfield and Fresno. b. . Attending and representing San Luis Obispo County at major travel and sales shows during the contract time period. C. Coordinating sheduling for potential conferences with individual properties in San Luis Obispo County. d. Developing new, coordinated countywide sales materials and brochures to be used in the marketing program. e. Creating and implementing a coordinated and planned marketing campaign, stressing the benefits of the San Luis Obispo area as a destination for visitors. f. Submitting a quarterly report on the progress of the VCB to the City's Project Manager, and the Promotional Coordinating Committee (PCC). Visitors and Conference Bureau Agreement - Page 4 EXHIBIT B GENERAL TERMS AND CONDITIONS CONTRACT REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages, and amounts specified in Exhibit C to this contract within 10(ten)calendar days after notice of contract award as a precondition to contract execution. 2. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate prior to execution of the contract. Additional information regarding the City's business tax program may be obtained by calling (805)781-7134. CONTRACT PERFORMANCE 3. Ability to Perforin. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county,city, and special district laws,ordinances, and regulations. 4. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5. Payment of Taxes. The contract prices shall include full compensation for all taxes which the Contractor is required to pay. 6. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings,barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 10. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation,or religion of such persons. 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 pad, 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 Visitors and Conference Bureau Agreement -Page 5 /�g 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. 11. Payment Term. The City's payment tetras are 30 days from the receipt of an original invoice and acceptance by the City of the services provided by the Contractor. 12.- Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 13. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 14. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 15. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees,agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided,however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 16. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 17. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform; which notice must give the Contractor a 10(ten)calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations,responsibilities,or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination,minus any offset from such payment representing the City's damages from such breach. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. Visitors and Conference Bureau Agreement - Page 6 /-30 18. Waivers. The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement or of any provision,ordinance, or law shall not be deemed to be a waiver of any subsequent breach of violation of the same or of any other term, covenant, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this agreement or of any applicable law or ordinance. 19. Costs and Attorneys 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 foes expended in connection with such an action from the other party. 20. Recycled Products. A ten percent preference, not to exceed one thousand dollars per contract, will be given to recycled products. The fitness and quality of the recycled product must be at least equal to unrecycled products as determined by the City. The preference percentage shall be based on the lowest price quoted by the supplier or suppliers offering nonrecycled products. Price preferences may be offered in excess of the ten percent ceiling established in this section if it can be shown that purchase of a recycled product or material will result in greater long-term savings to the City. 21. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 22. Copies of Reports and Information. If the 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 work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of"such copies at the Contractor's direct expense. Visitors and Conference Bureau Agreement - Page 7 EXHIBIT C INSURANCE REQUIREMENTS: CONTRACTORS The 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, its agents, representatives, employees or subcontractors. Minimum Scone 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]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 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. Acceotability 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. /-3Z ATTACHMENT 4 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and the BARNETT, COX AND ASSOCIATES, INC. (D.B.A. as BARNETT, COX AND KORNREICH), 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 promises, obligations, and covenants,hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until June 30, 1997. 2. INCORPORATION BY REFERENCE. Contractor's proposal for marketing services dated May 12, 1995 is hereby incorporated into and made a part of this Agreement. 3. PROGRAM COORDINATION. A. CITY. The City Administrative Officer or the designated representative shall be the Project Manager representing the City for all purposes under this agreement. B. CONTRACTOR. Contractor shall assign a single Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor. Maggie Cox is hereby designated as the Project Manager for the 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. 4. CITY'S OBLIGATIONS. For providing services as specified in Exhibit A to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: Barnett, Cox and Kornreich Agreement - Page 1 1- 33 1995-96 1996-97 ■ Marketing and Advertising Services $917200 $94,000 5. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as described in Exhibit A attached hereto and incorporated into this Agreement. The City contracts with the San Luis Obispo Chamber of Commerce and 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 duplication of costs associated with the Chamber of Commerce and VCB agreements. 6. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Council. 7. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor., not as an agent or employee 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. 8. ASSIGNMENT AND SUBCONTRACTORS. This agreement is for the performance of professional marketing services of the Contractor and is not assignable by the Contractor without prior written consent of the City. The Contractor may employ other specialists to perform special services as required with prior approval by the City. 9. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 10. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo P.O. Box 8100 San Luis Obispo, CA 93403 Barnett, Cox and Kornreich Agreement - Page 2 1-34Y Contractor Barnett, Cox and Kornreich 979 Osos Street, Suite F San Luis Obispo, CA 93401 Attn: Maggie Cox 11. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: Diane Gladwell, City Clerk Allen Settle, Mayor APPROVED AS TO FORM: BARNETT, COX AND KORNREICH <�WIZ4 0 xja�� By: eff G Ior s City Attorney Maggie Cox, President Barnett, Cox and Kornreich Agreement -Page 3 � -3s EXHIBIT A SCOPE OF WORK - Promotional and Advertising Services Contractor will be responsible for the following: 1. Planning, preparing and implementing a marketing campaign, on the City's behalf, subject to PCC recommendation and City Council approval. 2. Proving account services such as, but not limited to, ad concept, design and production, media buys and placement, and additional services as needed. Also, checking, paying invoices, and accounting for all such activity conducted on the City's behalf in any media. Agencies should indicate whether they intend to collect a flat fee or accept a commission. If collecting a fee, agencies are required to dedicate the commission amount to the purchase of additional advertising. 3. Designing and conducting a program to monitor effectiveness of the marketing campaign. 4. Establishing and maintaining an effective working relationship with the PCC. Liaison between the PCC and Contractor will be with the PCC Marketing subcommittee. Scheduled meetings will be on an "as-needed" basis with PCC Marketing Subcommittee and Contractor to refine and adjust campaign objectives as recommended by the PCC. 5. Providing the PCC with timely, written monthly reports one week prior to the regular meeting on the status of all aspects of the marketing campaign. Attending monthly PCC meetings to discuss campaign activities. 6. Planning and commissioning any research activity that the PCC/City Council may require. This includes suggestions for and methods of continuing evaluation for the effectiveness of marketing campaigns. 7. Coordinating activities of the marketing campaign with promotional services provided by the San Luis Obispo Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau. Establishing effective working relationships with staff of the organizations referenced above, and other City bodies to achieve coordinated and efficient use of all available resources, avoiding a duplication of efforts. Barnett, Cox and Kornreich Agreement - Page 4 /-34 EXHIBIT B GENERAL TERMS AND CONDITIONS CONTRACT REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages, and amounts specified in Exhibit C to this contract within 10(ten)calendar days after notice of contract award as a precondition to contract execution. 2. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate prior to execution of the contract. Additional information regarding the City's business tax program may be obtained by calling(805)781-7134. CONTRACT PERFORMANCE 3. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county,city, and special district laws, ordinances, and regulations. 4. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5. Payment of Taxes. The contract prices shall include full compensation for all taxes which the Contractor is required to pay. 6. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, famish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 10. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 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 fording of Barnett, Cox and Kornreich Agreement - Page 5 /- 37 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. 11. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the services provided by the Contractor. 12. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 13. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 14. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 15. Bold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees,agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 16. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 17. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform; which notice must give the Contractor a 10 (ten)calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter,neither party shall have any further duties,obligations,responsibilities,or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination,minus any offset from such payment representing the City's damages from such breach. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. Barnett, Cox and Kornreich Agreement - Page 6 /-38 18. Waives. The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement or of any provision,ordinance,or law shall not be deemed to be a waiver of any subsequent breach of violation of the same or of any other term, covenant, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this agreement or of any applicable law or ordinance. 19. Costs and Attorneys 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. Recycled Products. A ten percent preference, not to exceed one thousand dollars per contract, will be given to recycled products. The fitness and quality of the recycled product must be at least equal to unrecycled products as determined by the City. The preference percentage shall be based on the lowest price quoted by the supplier or suppliers offering nonrecycled products. Price preferences may be offered in excess of the ten percent ceiling established in this.section if it can be shown that purchase of a recycled product or material will result in greater long-term savings to the City. 21. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 22. Copies of Reports and Information. If the 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 work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. Barnett, Cox and Kornreich Agreement - Page 7 a EXHIBIT C INSURANCE REQUIREMENTS: CONTRACTORS The 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, its 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 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. S. 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. /-y0 07/18/1995 13:13 8052364707 PASO ROBLES INN PAGE 05 DATE I G/ -�,S AGENDA � ITEM # July is,19% San Luis Obispo city Coumcil Attention: Honorable Allen Settle Cot"Govenunent center San Luis Obispo, CA 93408 Dear Honorable Allen Settle, The San Luis Obispo Visitor 8r Conference Bureau is requesting the dollar amount Of$W,700 amore each year for the next two years This will put the level of f coding back up to 3.5%of the TOT.conslstent with the other cities that are funding the Visitors&Conference Bureau The additional f WhV will enable the VCB to strengthen our efforts towards generating leads for conferences,motorcoach gpoups and film productiorx With the Performing Arts Center about to open,it is imperative that the&cility is booked to its f idlest extent That will mean coordination of city wide conferences for housing, ttanq*ft`tion and services,as well as generating new business leads for the Center. Thank you for your attentions to this matter. We will look forward to a positive response from the Council. Sincerely, Pamela Lyon Y00( ;N DDRIR Visitors&CorAmence Bureau A� 13 FIRE CHIEF L6�t� Board of Directors �T MEr ❑ PINDIR "LERKRIa ❑ POLICE CHF ❑'MGMT TEAM ❑ REC DIR ❑ C ILE O UTIL DIR 1 t _ ❑ PERS DIR RECEIVED JUL 18 IM CITY COUNCIL SAN 1 111*na'cGn. 1%A E37118/1995 12_13 8055470593 MAC GARAGE y FETING AGEWE 03 E�/�S ITEM # S A N 0 V B A E R / Marketing and Comunicatians July 17, 1995 The Honorable Allen Settle 690 Palm Street San Luis Obispo, CA 93401 Dear Allen, As you know, construction on the new Performing Arts Center on Cal Ply campus is well underway and as completion nears, it is imperative that this facility be utilized to its fullest. The San Luis Obispo County Visitors and Conference Bureau (VCB) has already begun working closely with Center management on generating leads for conferences and motor coach groups, a time-consuming but essential contribution toward the goal of a "booked house". In order to devote adequate staff time to.this effort as well as other tourism promotion activities, the VCB is requesting a funding increase of $27,700 from the City of San Luis Obispo. As a VCB Board member and "arts activist' who intends to spend more enjoyable occasions at the Performing Arts Center, I urge you to support this request and vote yes for the increased VCB funding for the next two years. Thank you for considering the VCB funding request and your past support. Sincerely, ❑ DIR AO R Sandy BaerN DIR O ❑ FIRE CHIEF COATTDM13 ❑ PW DIR R ❑ MGMT TEAM ❑ POLICE CHF ❑ C R D F 13REC DIR I e� ❑ UTIL DIR ❑ PERS DIR RECEIVED '. JUL 18. 1995 CITY COUNCIL SAN I Isle nalcon. o%A 957 Labelle Lane San Luis Obispo.CA 93AC: i To: 805 544-3247 / 805`J IF l7 Fa::805 547- 593 SENT BY:WINGS WEST AIRLINES + 7-19-95 8:10 ay nus '161 '11ua14 I AYE ING �9- ITEM AGENDA#� AmerlcanhyO AmericanAlrllne8' July 19, 1995 Iff/COUNCIL ❑,_,/CIDIR IBJ CAO qQ FMACAO ❑ FHonorable Allen Settle IYATTORNEY ❑ PMayor of San Luis Obispo I(CLERK(ORIG ❑ P990 Palm Street ❑ MGMrTEAM ❑ RSan Luis Obispo, CA 93401 ° °FILE ❑ P❑ P VIA TELEFAX 781-7109 Dear Mayor Settle, Tonight you will consider the issue of funding for the San Luis Obispo County Visitors and Conference Bureau. As president of the VCB, I deeply regret that I am unable to attend in person, but I will take this opportunity to urge you to support the Promotional Coordinating Committee's full funding recommendation. As you make what I know are very tough decisions, please remember that tourism is in all our interests. It is a great engine of economic vitality. It is our county's number-one industry. Your vote for the PCC's full recommendation will show that San Luis Obispo recognizes the need for a steady and properly funded effort to win its share of tourism dollars. Join with the VCB as it looks toward the future of tourism in our area, Where do we want to go and how will we get there? With your support of this truly cooperative effort, San Luis Obispo County can be both a "Special Place" and a prosperous place. Thank you very much. Sincerely, Michael Rader RECEIVED Director, Sales and Marketing JUL 19 199) MRI CITY COUNCIL SAN 1 i ue naican. NIA Operated By Wings West Alrllnos,Inc. 1 AeroAsta Place•.Su11B A•P.A Bn*all A•Ston 1 oda Mian.. r.A MAFA.sa 4s.ronr■A4.4 w4 A.MAW/DARA IF Ad ASSA JUL 19 '95 10:35AM STERLING HOTELS P.2/6 j ;STE L' TE ING HOING ►G€N11 �_ July 19, 1995 9 COUNCIL ❑ CDD DIR W"CAO FEIN DIR a The Honorable Allen Settle' t�/'ACAO ❑ FIRE CHIEF 890 Palm Street ' , � , LI�ATTORNEY ❑ PW DIR San Luis Obispo, CA 93401 OYCLERIGORIG. ❑ POLICE CHF ❑ MGMT TEAM ❑ REC DIR ❑ R FILE ❑ UTIL DIR Re: Funding for SLA County VCB ❑ PERS DIR Dear Mayor Sptfles: I am writing on behalf of Sterling Hotels Corporation and its officers who .hold positions on the Boards of Directors ­of 'the County Visitors & Conference Bureau,(myself), the Chamber of Commerce, (Bob Griffin)- and - the Business Improvement • Association, , (Terry Westrope) to request - 'your favorable consideration of the VCB's 995 /96 funding .allocation representing 3.5% of the anticipated. TOT collection. As we operate hotels in both neighboring counties, we have observed the' market share shift. that •has• occurred as a result of the increased funding for tourism development in both Monterey and Santa Barbara counties. As' tourists respond favorably , to the advertising they see" from our neighbors, and in the absence of visibility from San' Luis Obispo, our economy is, negatively impacted. Our two competitor counties have recognized the importance of advertising ' and promotions . in luring tourists away from ' :other.. destinations. Unfortunately, their successes come largely from• our • market share, among those looking for an attractive, -coastal,- relatively: close-by resort destination. Funding our VCB at 3.5% of TOT is not 'going to .level the playing field,' but it lielps to at least keep us in the 'game. Our city''§ investment in tourism • has payed back a significant return over the past nine years. I truly believe that any increase in the funding to the VCB will be returned more' than ten-fold to the City in the form,of increased TOT and sales tax, being paid with money tiew to the city and the county. Although your . choices are. difficult,, I . you will decide to make this important investment in -the economy. of San Luis ,Obispo., Sincerely, S3PUTiG HOTELS CORPORATION . RECOVER " • JUL 1 '9 1995 VterCITY COUNCIL SAN 1 IIIC nQICPn. f;A Vice President - Operations 4115 BROAD-STREET',SUITE B-1,SAN LUIS OBISPO,CALIFORNIA 93401 (805),546-9388 'FAX(805)546-9741 ►'$TING AGENDA 6 E I ITEM # S A N D Y B A E R / Marketing and Comunications ccOuuNCIL ❑ CD July 17, 1995 V-19P N DIR FELERKWOFUG ❑ FIR HIEF NEY 7ROtC DIR The Honorable Allen Settle ICECHF 890 Palm Street ❑ MGMTTEAM DIR ❑ C DILE ❑ U nL DIR San Luis Obispo, CA 93401 ❑ PERS DIR Dear Allen, As you know, construction on the new Performing Arts Center on Cal Ply campus is well underway and as completion nears, it is imperative that this facility be utilized to its fullest. The San Luis Obispo County Visitors and Conference Bureau (VCB) has already begun working closely with Center management on generating leads for conferences and motor coach groups, a time-consuming but essential contribution toward the goal of a "booked house". In order to devote adequate staff time to this effort as well as other tourism promotion activities, the VCB is requesting a funding increase of $27,700 from the City of San Luis Obispo. As a VCB Board member and "arts activist" who intends to spend more enjoyable occasions at the Performing Arts Center, I urge you to support this request and vote yes for the increased VCB funding for the next two years. Thank you for considering the VCB funding request and your past support. Sincerely, RECEIVED sz � JUL 19 199b Sandy Baer RAN clrY couNCIL I I uc nod CIn nA 957 Lobelia Lane San Luis Obispo,CA 93401 Tel: 805 544-3247 / 805 547-0517 Fax:805 547-0593 RE_ `.EIVE® DATE'�eG=GENDA JUL 1 199S IT # CITY COUNCIL RICHARD SCHMIDT SAN I nye nalcan. RA 112 Broad Street,San Luis Obispo, CA 93405 (805) 544-4247 July 17, 1995 IL o c IR in RpmN DIR 0 FIRE Re: Promotional Program Expenditures: $531,348 for tourism �Ey ❑ PW D RHIEF �'CLERK/ORIG ❑ POLICE CHF City Council ❑ MGWr TEAM ❑ REC DIR City of San Luis Obispo ❑ c PZAD FI ❑ UTIL DIR ) ❑ PERS DIR Dear Council Members: SIle Q QS ek I believe this half million dollar welfare program for the tourist industry to be excessive, given the city's alleged fiscal strains, and offensive to taxpayer-residents who are continually being told the city doesn't have sufficient funds for this or that. Why does the city continue to pump more and more money into this welfare program for a pet industry? Don't we live in an era wherein private enterprise is glorified for its ability to stand on its own? Why does that alleged bastion of private enterprise, the Chamber of Commerce, approach the city council year after year with its hand extended for a handout? Have they no shame?' When the city began pumping money into tourism, the amounts were -- by today's standards -- rather modest. But each year this welfare program grew. Why? Is this right? Is it just? We are kicking unwed mothers off the welfare rolls on grounds they are undeserving. Are well-off motel and restaurant owners more deserving of public welfare than mothers trying to feed and clothe their children? Apparently so, at least in San Luis Obispo. Some observations about this half million dollar welfare program for the rich: 1. No other industry group that I can think of expects public agencies to pick up the tab for their advertising. If this advertising is so essential and worthwhile, why don't they invest their own funds in it? Why should their advertising be paid for by the taxpayers? Perhaps they don't think this an essential and worthwhile investment? 2. To date, by my rough calculations, if these proposed welfare-to-tourism-operator handouts are approved, the cumulative total of such tourism welfare payments by this city will be more than $3.8 million. How many acres of greenbelt open space could have been purchased with that huge amount of money? How many parks could have been established? What other opportunities for improving the quality of life for local residents have gone unmet because of this constant and continually-escalating drain on our tax dollars? What have local residents (not motel and restaurant owners, but plain, ordinary residents) received in return for these huge handouts? 3. Because we have established this welfare program, we now have organizations that exist ' Note also:the Chamber has never been punished for transforming its tourist information center, largely paid for by the city's taxpayers through the tourism welfare program, into a political campaign headquarters for the state "water"project— a clear violation of state law. by sucking their sustenance from the public tit. Why do we, as taxpayers, need them? Why doesn't the industry support its own outreach organizations if such organizations are really essential and worthwhile? Every other industry I can think of supports its own p.r. organizations. 4. Let's spin an analogy. Let's say I run the gas company. You levy a use tax on the gas I sell. I come to the city and say: "You collect tax on the gas I deliver to your citizens, so I think you should spend some of that tax money encouraging your citizens to use more of my gas so my sales will go up. When my sales go up, you can collect more tax." If I came in and made that argument, you'd laugh out loud (I hope). You'd tell me that's a ridiculous idea. You'd tell me that taxes belong to the public, not to the company that collects them -- that you, not I, will decide how they are to be used. Yet this analogy replicates the rationale used for giving away public tax funds (remember -- they belong to all the people of San Luis Obispo.0 for this tourism welfare program. The rationale's logic is as lame as the program itself. 5. What should promotional funds be spent for, if there is to be a presumption that they ought to be linked, somehow, to strengthening our tourism base? How about open space preservation?There's direct nexus. People come to SLO notbecause we have wonderful shopping and cultural and athletic and developed recreational opportunities or luxurious resorts. They come here for what we don't have -- a defined urban area that doesn't sprawl on forever, farm fields not covered by big boxes and discount malls, mountains not littered with roads and houses, views not interrupted by too much built junk, air that's not too polluted, streams that don't catch on fire, etc. After Outside magazine has finally made a national point of this fact, does the Council still not understand? How ironic that the mouth-watering picture of the hiker at the top of San Luis Mountain with the city spread out in an emerald valley below should appear in Outside just after the "owner" of that mountain (someone's arrogant enough to presume that he can possess as his own one of the earth's mountains?) has attempted to shut off all access to the location of that photograph! Outside trumpets passive and wonderful recreational opportunities that no longer exist! San Luis Obispo's chief tourist asset is its surrounding open space, nearly every bit of which is privately owned and subject to private whim, including development in the county. Nothing could be more fragile in its status, yet nothing could be more essential to our continued renown as a tourist mecca. Without our surrounding open space, we become just one more dumb little California city like every other dumb little California city. Using $3.8 million worth of public promotional funds to protect this timeless tourism asset would be a much wiser tourism investment than handing cut money year after year to an ungrateful, crabby bunch of spoiled tourism flacks. I implore you: Say tonight that enough is enough. Start weaning tourism from this welfare today, and instead start investing our bed tax funds in protecting the perpetual capital of our tourism industry -- our beautiful surrounding fields and hills -- the things that made the Outside writeup and photos possible. Sincerely, Richard Schmidt Tourist Promotion, Page 2