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HomeMy WebLinkAbout07/01/1997, 3 - 1997-99 PROMOTIONAL PROGRAM council j apenaa nEpom h=Numbw C I T Y OF SAN LUIS O B i S P 0 FROM: John Dunn,City Administrative 0r r Prepared By: Ken Hampian,Assistant to the CityAdministrative Officer Wendy George,Assistant to the City Administrative Officer vfy SUBJECT: 1997-99 Promotional Program PROMOTIONAL COORDINATING COMMITTEE (PCC)RECOMMENDATION Increase total finding appropriated to the City's Community Promotion Program by $69,100 over the two-year 1997-99 Financial Plan period,with specific recommendations as follows: 1. Approve and authorize the Mayor to execute a two-year contract with the Visitors and Conference Bureau (VCB) for promotional services in the amount of$84,100 for 1997-98 and$87,500 for 1998-99,based on annual cost-of-living increases of 3%. 2. Maintain a$50,000 Enhanced Promotional Fund for each fiscal year. 3. Approve and authorize the Mayor to execute two-year contracts with the Chamber of Commerce for (1) Visitor Services in the amount of$72,268 annually, which includes an $11,700 increase over COLA to keep the Visitors Center open until 8:00 p.m. on Thursday, Friday and Saturday nights; and(2)Promotional Services in the amount of$35,359 for each year which includes a$250 increase to cover the computer server contract for the Tourism Events Calendar, 4. Approve and authorize the Mayor to execute a two-year contract with Barnett, Cox & Associates (BC&A) for advertising services in the amount of$121,600 for 1997-98 and 121,700 for 1998-99, increasing the contracts over COLA by $24,800 and $22,000 respectively. CAO RECOMMENDATION Maintain the amount budgeted in the 1997-99 Financial Plan for Community Promotions of $661,100,but reallocate those fiords among various components of the program as follows: 1. Return the Visitors and Conference Bureau contract to its more historic base level, as adjusted by COLA's for the intervening years, and approve a VCB contract in the amounts of$58,700 for 1997-98 and$60,400 for 1998-99. 2. Reduce Enhanced Promotional Funds to $50,000 total for the two fiscal years, with all funding allocated in the first year and carried over to the second as appropriate. Council Agenda Report-1997-99 Promotional Program Page 2 3. Reallocate the savings from Recommendations 1 and 2 to: (A) support the recommended increase in service hours at the Visitors Center, and (B) increase direct City advertising services beyond the PLC's recommendation,with contracts with BC&A in the amounts of $136,250 for 1997-98 and$140,450 for 1998-99. REPORT-IN-BRIEF The recommendations outlined above set forth the core decisions before the Council. To summarize the background and "fundamentals", in 1996-97 the VCB asked the PCC to establish its annual allocation at 3.5% of the TOT. The PCC agreed with this approach, and forwarded a recommendation to the City Council to increase VCB finding by approximately$25,000 annually. City staff recommended against such"earmarking", and instead recommended that Council follow the same approach applied to other promotional contracts: adjusting the base by COLA. However, staff fir Cher suggested that if$25,000 were to be added to the Community Promotions Program, it should instead be invested in the City's direct advertising contract, as opposed to increasing the VCB allocation. The Council was ultimately persuaded by the PCC's and VCB's arguments to support the higher VCB amount, and the contract was increased to a new, significantly higher base level. Since that time, some debate has been underway within the PCC and in the community relative to how the City's "promotional budget pie" should be divided. Attached are papers prepared by the Chamber of Commerce and the VCB which illustrate the differing perspectives on this matter, which are substantial- This discussion intensified as the City proceeded into 1997-99 goal-setting and as a result of finding suggestions associated with the youth athletic field project Earlier this year, the PCC had preliminarily recommended retaining the 3.5% earmarking of TOT for the VCB, along with increasing other promotional efforts. However, before this recommendation could be forwarded to the City Council, after discussing and ultimately rejecting the use of promotional fiords toward the athletic fields project, the Council asked the PCC to reconsider how the existing Community Promotion fiords were being allocated. Although the PCC considered various reallocation options within the existing budget, they have ultimately recommended a higher level of overall promotional finding. However, they have also modified their preliminary recommendation to discontinue the VCB's 3.5%relationship to TOT, and instead are recommending a COLA adjustment to the VCB's present base level contract The staff's recommendation is to return to the earlier, `pre-3.5%"VCB base level, adjusted by cost of living for the intervening year;. Staff is also recommending reducing the Enhanced Promotional Fund in order to provide permanent support to pilot programs started through the fund (longer Visitor Center hours; improved fiiifillment packets). A portion of the funds saved through these adjustments is also recommended by staff to be reinvested in the City's advertising contract,which is recommended for award to Barnett,Cox&Associates.. �i "2 Council Agenda Report-1997-99 Promotional Program Page 3 DISCUSSION Background Each year the City spends more than $300,000 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 these contracts are held by the Chamber of Commerce, one for visitor center services and one for promotional services. A third contract is with 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 City advertising services. This contract is the result of a formal selection process performed every two years. The recommended contractor is Barnett, Cox&Associates. Consistent with Council direction, the PCC has used the last several months to review each component of the promotional program and develop recommendations for new contract finding levels for 1997-99. This report will provide the City Council with an overview of the PCC's recommendations for the 1997-99 promotional program. In the cases where the CAD's recommendations differ, an explanation of those differences is also provided The proposals presented by each contractor are available in the Council reading file. Review Process and Recommendations I. Va" ftors and Conference Bureau(VCB) Summary of Scope of Services The VCB's contract represents the City's annual contribution to the countywide governmental agencies' effort to market the central coast as a tourist destination. The VCB plans and executes a complete marketing plan that focuses on encouraging tourism during the off-season. The VCB accomplishes this through a variety of activities including advertising and promotion, participation in travel trade shows, brochure development and distribution, publicity, market research, group conference planning services and film production development. VCB Proposal-When presenting the 1997-99 VCB promotional funding request to the PCC, VCB executive Director Jonm Biaggim 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 1997-99 renewal of its contract with the City, the VCB requested $91,700 per year. Ms. Biaggini suggested that with the additional funding the VCB would like to increase special season advertising to m-state markets; add new meeting planning shows which focus on m-state association, corporate and incentive travel groups; include a direct sales component to the trade 3�� Council Agenda Report-1997-99 Promotional Program Page 4 show schedule; adequately service conference and group needs and increase efforts to attract film business to the area PCC Recommendation - The PCC initially recommended that the VCB be fimded at the requested level of$91,700 per year for the next two fiscal years. However, upon direction from Council, the PCC reconsidered this recommendation and suggested, instead, that the VCB be finded at the level of$84,100 for 1997-98 and $87,500 for 1998-99. These new funding levels represent annual COLA increases of 3%per year over the 1996-97 funding level,rather than a percentage of TOT as proposed by the VCB. The PCC then recommended that the difference between its original recommended funding based on the TOT and the final recommended funding based on COLA be applied to the City's advertising contract in the amount of$7,600 for 1997-98 and$4,200 for 1998- 99. The PCC also recommended that language be added to the VCB contract which more explicitly delineated the City's expectations of work to be performed. CAO Recommendation-At the time of awarding the 1995-97 VCB contract, consistent with how the other promotional contracts were being handled, staff recommended funding the contract based on annual COLA's over the prior year. The Council instead chose to fund the contract at the PCC recommended level of 3.5% of the TOT, a two-year total increase of $51,500 over the staff recommendation. Staff still believes that its initial recommendations for the 1995-97 contract were appropriate for the following reasons: • Formula finding is not an appropriate way to determine the size of a contract Instead, contract levels should be based on a thorough review of the services to be provided. In addition, in an era when cities have less and less flexibility and"homerule"capabilities,the City should avoid creating"earmarking"or formula based decisions. • Consistent with the staff position of two year; ago, while regional marketing is important and should continue to be supported, further investing in direct City marketing should be a greater priority. The PCC's current recommendation, while no longer based on a formula, sustains the higher level of investment in regional advertising. • A reduction in regional advertising would free up money to be reallocated to marketing strategies which directly impact bringing tourists to the City of San Luis Obispo, such as longer hours at the visitors center,a better advertising fulfillment piece and increased City advertising. • The City's current contribution to the VCB averages out to $43.00 per hotel/motel room in the City. The average for other cities contributing to the VCB is $29.00 per room. The staff recommended funding level would bring the City's contribution down to $31.00 per room, which is more in line with the countywide average. There are several other arguments set forth in the attached paper prepared by the Chamber of Commerce, which recommends reducing the regional investment to $30,000 annually. Also attached is a paper prepared by the VCB rebutting some of the arguments. In the final analysis, staff continues to believe that its recommendation of two years ago offers a reasonable middle- s�� Council Agenda Report-1997-99 Promotional Program Page 5 ground, and allows for added investment in other promotional areas that have proven successful over the last two years. Therefore, as outlined in the following table, staff recommends funding the VCB contract at $58,700 in 1997-98 and $60,400 in 1998-99, based on the staff recommended amounts for 1996-97 plus annual COLA's of 3%. 1997-98 1998-99 Total PCC Recommendation $84,100 $87,500 $171,600 Staff Recommendation $58,700 $60,400 $119,100 H. Enhanced Promotional Fundine Several years ago, when the Council increased the Transient Occupancy Tax (TOT) from 9% to 10%, it also created an Enhanced Promotional Fund to be used to finance innovative promotional ideas and provide seed money for new special events. Annually,the PCC makes recommendations to the City Council on how this fiord should be spent. PCC Recommendation The PCC recommends that this fimd remain at$50,000 per fiscal year,the same level as in the past four years. Staff Recommendation Staff recommends that the Enhanced Promotional fund be reduced to $50,000 total for the two fiscal years of the Financial Plan, with the full amount being allocated in the first year. The remainder of the funding would be reallocated, along with savings from the VCB contract, to the Chamber of Commerce to allow the visitors center to remain open longer year-round, and to the Barnett, Cox & Associates contract for advertising fulfillment and increased media advertising. Staff believes that this reallocation makes sense for several reasons. First, for the past two years the PCC has recommended using Enhanced Promotional Funds to pilot the use of Chamber Visitors Guides for the City's advertising fulfillment packet. The pilot program proved to be extremely successful. Increasing the marketing contract will incorporate the use of these guides as a regular part of our program, and not as a continuing "pilot" program requiring annual review. Second, Enhanced Promotional Funds were also used to pilot extended hours at the Visitors Center on Thursday, Friday and Saturday nights. Due to the success of the program (see Exhibit 1), the PCC wishes to continue these extended hours on a year-round basis. Staff feels that permanently shifting Enhanced Promotional Funds to the Chamber's visitors center contract is the appropriate way to cover the additional expense. Third, much of the fiord is usually transferred to the advertising contract each year for specific advertising projects. Because each transfer must be approved by Council, the process is often Council Agenda Report-1997-99 Promotional Program Page 6 cumbersome and prevents quickly taking advantage of marketing opportunities. By permanently reallocating some Enhanced Promotional Funds to the marketing contract,the City can benefit from increased direct promotion in a more timely way. Fourth, if all added activities generated by the Enhanced Promotional Fund are automatically transferred to the General Fund for ongoing support, the net effect will be an increase of the overall promotional budget. The intention of the Fund was to take advantage of unique one-time promotional opportunities or to explore ways to use the exiting promotional budget more effectively,not to become a vehicle for increasing the promotional budget. Finally, by retaining $50,000 in the Enhanced Promotional Fund and allocating it all in the first year of the Financial Plan, the PCC still has money available to grant for unique, unanticipated promotional opportunities or as"seed money"for special events. 1997-98 1998-99 Total PCC Recommendation $50,000 $50,000 $100,000 Staff Recommendation $50,000 $0 $ 50,000 IIl. Chamber of Commerce Contracts Summary of Scone of Services Under the proposed contract, the Chamber of Commerce provides two type of services: (1) a full- service Visitors Center, open to the public seven days per week, and (2) promotional services designed to obtain free coverage of San Luis Obispo in newspapers, magazines, radio, television and books. Chamber of Commerce Proposals - The Visitor Center proposal continues the same services as in the past, but includes an increase of$11,700 per year to keep the Center open until 8:00 p.m. on Thursday, Friday and Saturday nights all year. The trial period for later hours has been extremely successfirl, with an average of 48 visitors each night between 5-8 p.m., and the Chamber of Commerce would like to see this change implemented year round. The contract also includes a component related to advertising fulfillment, which shall be directed by the PCC. The annual cost of the contract for the next two fiscal years would be$72,268 for a total of$144,536 over the Fiscal Plan period. With regard to the promotional services, the Chamber proposes to provide the same services as in the past,with the addition of maintaining a new tourism web site and a data base calendar of events which is linked to the web site. The cost for these services for the next two fiscal years would be $35,359 each year for a total of$70,718 over the 1997-99 Financial Plan period. This amount includes a front loaded 4.5% COLA (as opposed to two 3% increases) plus a $250 annual charge for half the expense of the new file server service which links the calendar data base to the web site. The Chamber of Commerce also proposed several one-time promotional expenses that were instead 3-� Council Agenda Report-1997-99 Promotional Program Page 7 approved by Council on June 17"for funding through 1996-97 Enhanced Promotional Funds (e.g. improved tourism web site, slides sets for media responses and software to link the tourism calendar to the web site). PCC Recommendation - The PCC is recommending that the Chamber of Commerce be fimded at the requested level of$72,268 per year for visitors services and$35,359 each year for promotional services. The PCC believes that the core services are an integral part of the City's promotional program, and that the additional funding for Visitor Center hours is very justified based on the success of the trial program. CAO Recommendation- Staff supports the PCC's recommendations,except that the funding above what is presently in the Financial Plan for the added hours should come from the reallocation of promotional fiords,rather than from the additional General Fund allocation as recommended by the PCC. 1997-98 1998-99 Total Staff and PCC Recommendations: • Chamber Promotional Contract $35,359 $35,359 $ 70,718 • Visitors Center Contract $72,268 $72,268 $144,536 N Adverdsine 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. 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 In April of this year the City Council approved the Advertising Services Request for Proposals (RFP). As explained in the RFP, suggested allocations of$114,000 and $117,500 were made for advertising services for 1997-98 and 1998-99 respectively. These amounts were based on the current contract plus annual 3% COLA's, with additional funding to allow for the purchase of the Chamber of Commerce Visitors Guide to be used as part of the advertising fulfillment package. The RFP was subsequently distributed to numerous area advertising,marketing and public relations firms. Two proposals were received in response to the City's RFP. They were from MMIR Associates and Barnett Cox&Associates. The PCC requested that both firms be invited to give an oral presentation at its May 14, 1997, meeting. Following the oral presentations,the PCC discussed the perceived strengths of the written proposals and oral presentations. Key issues in the discussion included depth of experience in marketing services, especially to public agencies; consistency and professionalism of representation; and creativity and positiveness in approach. In conclusion, the PCC felt that the firm of Barnett, Cox & Associates had provided excellent service to the City under the prior contract and that the firm's proposal,consistent with past service,was responsive and creative. Council Agenda Report-1997-99 Promotional Program Page 8 Barnett Cox&Associates Proposal As requested, the proposal is for two years, funded at $114,000 for 1997-98 and 117,500 for 1998- 99. Bamett, Cox & Associate's stated objective was to foster overnight and extended visits by tourists to San Luis Obispo, especially in the traditional "soft' months. This objective is to be achieved through a combination of paid advertising, coordination with public relations and marketing efforts underway with the Chamber of Commerce and VCB and special promotional programs with area attractions such as the Edna Valley Vintners Association, Mozart Festival, Hearst Castle and others. The key principles that will guide the advertising program are: • Utilization of research • Maximum budget for advertising placement • Exploration and implementation of cooperative opportunities with local attractions • Coordination with the VCB,Chamber of Commerce,hotels and motels • Co-op advertising to extend advertising reach • Possible innovative ideas such as "reselling" the City to past visitors, direct mail through American Express or a promotion in conjunction with a Central Valley radio station Consistent with prior practice, the contract is also general in nature so that the advertising contractor and PCC have the flexibility to modify the campaign throughout the term,as needed. PCC's Recommendation The PCC recommended that the advertising contract be awarded to Barnett Cox &Associates and that it include funding to cover the cost of using the Chamber's Visitors Guide as a marketing fulfillment piece. It also recommended that the differences in the amounts of the PCC's preliminary VCB recommendation and the final VCB recommendation ($7,600 for 1997-98 and $4,200 for 1998-99) be reallocated to the advertising contract, resulting in proposed contracts of $121,600 for 1997-98 and$121,700 in 1998-99. CAO's Recommendation As discussed earlier in this report, staff recommends increasing the total amount of the contract to $136,250 for 1997-98 and $140,450 for 1998-99 by reallocating funds previously assigned to the VCB contract and the Enhanced Promotional Funds. In addition to supporting the improved fulfillment packet, the funding will support additional direct City advertising either in our traditional regions or in potential new markets. 1997-98 1998-99 Total PCC Recommendation $121,600 $121,700 $243,300 CAO Recommendation $136,250 $140,450 $276,700 J- Council Agenda Report-1997-99 Promotional Program Page 9 FISCAL BRACT The amount currently budgeted in the 1997-99 Financial Plan for promotion comes to a two year total of$661,100 which is based on the 1996-97 funding level plus annual COLA's of 3%. The staff proposed allocation is equal to this two year total. To summarize,the proposed staff and PCC allocations are as follows: PCC RECOMMENDATION Contract 1997-98 1998-99 Total Visitors and Conference Bureau $ 84,100 $ 87,500 $171,600 Enhanced Promotional Funds 50,000 50,000 100,000 Chamber Promotional 35,359 35,359 70,718 Chamber Visitors Center 72,268 72,268 144,536 Bamett,Cox&Associates 121,600 121,700 243,300 Total $363,327 $366,827 $7309154 CAO RECOMMENDATION Contract 1997-98 1998-99 Total Visitors and Conference Bureau $ 58,700 $ 60,400 $119,100 Enhanced Promotional Funds 50,000 0 50,000 Chamber Promotional 35,359 35,359 70,718 Chamber Visitors Center 72,268 72,268 144,536 Barnett,Cox&Associates 136,250 140,450 276,700 Total $3529577 $3089477 $6619054 If the Council prefers the PCC recommendation, an additional $69,100 will need to be appropriated to the 1997-99 Financial Plan. Funding is currently available in the Plan to support the staff recommendation. ALTERNATIVES In addition to the two alternatives proposed by the PCC and the sta$ there are two other funding allocations which have been proposed: 1) The Chamber of Commerce has prepared a plan to re-focus City promotional spending which recommends decreasing the VCB's funding to$30,000 per year, increasing the City advertising agency contract by $35,000 and budgeting more funds to handle additional advertising fulfillment responses. (See Exhibit 2). Staff does not recommend reducing the VCB's funding to this level as it believes that the VCB does perform valuable fimctions in the area of Council Agenda Report-1997-99 Promotional Program Page 10 conference and tour sales,trade show promotions, the film commission and regional promotion which are a necessary part of the City's full promotional program. 2) The VCB has requested that it be funded at $91,700 per year based on a formula of 3.5% of TOT. The VCB justifies that level of fimding based past history and the fact that it believes TOT is a good reflection of the VCB's success. (See Exhibit 3). Staff disagrees with the VCB's position on formula fimding, as explained earlier. Additionally,while TOT increases are a reflection of more tourists,it is difficult to pinpoint the actual reasons for any increases. They are likely to be a result of both the economy and the fill gamut of promotional activities undertaken by the City. Attachments Agreement with the Visitors and Conference Bureau Agreements with the Chamber of Commerce Agreement with Barnett Cox and Associates Exhibit 1 -Report on Extended Visitor Center Hours Exhibit 2-Chamber Reallocation Plan Exhibit 3 -VCB Response to Chamber Plan �ld San Luis Obispo Chamber of Commerce Visitors Center— Extended hours The Visitors Center continues to see steady usage during the evening hours.Since April 3 when extended hours began,the Visitors Center staff has helped 1,442 people who have stopped in after the traditional 5 p.m.closing time.In addition,staff has helped an estimated 100-150 people who telephoned for assistance during those extended hours. Finding lodging remains the highest priority among visitors helped during the evening hours. Secondary information includes dining,Hearst Castle information and tickets,followed by general tourist information The breakdown is as follows.This number reflects only visitors who physically enter the Visitors Center between 5 p.m.and 8 p.m.on the given dates. Additional visitors and potential visitors were also helped by telephone answered by staff throughout the extended hours(approx. 10-15 calls per night). Date visitors visitors Date visitors Visitors 5-8 PML before 5 p.m. 5-8 p.m. before 5 p.m. April 3 43 295 May 8 41 186 April 4 27 244 May 9 30 234 . April 5 36 255 May 10 94 195 April 10 33 240 May 15 37 173 April 11 72 248 May 16 58 168 April 12 33 160 May 17 42 161 April 17 54 195 May 22 58 205 April 18 42 214 May 23 89 215 April 19 44 201 1 May 24 65 250 April 24 58 217 May 29 53 216 April 25 89 260 May 30 21 191 April 26 82 222 May 31 1 39 202 May 1 45 191 June 5 31 245 May 2 19 242 June 6 26 173 May 3 42 . 1 172 June 7 39 219 San Luis Obispo Chamber of Commerce Plan to Re-focus City Promotional Spending The goal: Increase tourism to San Luis Obispo by more effective spending of City Promotional Funds. The problem: • Over recent years, there has been a major SLO Promotional Spending Shift shift in the way San Luis Obispo City More SLO City money spent to promote county promotional funds are spent: the . percentage of the budget used to promote the county (through the VCB) has grown significantly, while the percentage of the `:�...:. budget toused promote the city (through the City's ad agency and the Chamber) has dramatically declined. 4 • The VCB, which is paid by the City to 1987-89 promote the entire county as a tourism 1995-97 destination, has different promotional Q city oriented(to ad agency and Chamber) goals than the City. oounty oriented(to VCB) • This may have contributed to San Luis source. City of SLO Finance Dept. Obispo tourism growing slower than most other areas of the county. Our solution: • Shift the City's city/county promotional funding mix back to traditional proportions. Spend more to advertise the San Luis Obispo area. • Reduce VCB funding to $30,000 per year (from $86,700) saving$56,700. Encourage the VCB to use remaining City funds more efficiently and more accountably. • Increase city-oriented advertising by increasing the City advertising agency contract by$35,000. • Budget some funds to handle additional ad responses. Exki lo;+ 2 San Luis Obispo Chamber of Commerce Plan to Re-focus City Promotional Spending,3/97,page 2 Why cut the VCB? I. San Luis Obispo is unique: the city's tourism marketing needs are different from the rest of the county. • In San Luis Obispo, 88% of our tourists come from California, with almost 50% from Southern California, and less than 2% from other countries. The VCB has a secondary marketing emphasis on Canada and Western Europe, places national and Western U.S. ads, and attends trade shows in other regions and countries. This is all largely wasted effort for us. SLO (city) Tourist Origins • Chamber and UCSB research indicates a that San Luis Obispo largely does not share tourists with the rest of the county; a majority of our tourists do not visit other 0 parts of the county. Only about 20%go to +E ++x Hearst Castle, for instance. Yet the VCB ads feature beach-goers and Castle visitors, with nothing about San Luis Obispo. so cd ® c wftl cat Nm Cal. omen s • The VCB advertising has rarely focused on ® Omer cow"es San Luis Obispo's unique attributes and character. Their 1996-97 theme "Explore a source:SPA CofC Motel survey, 12/96 real castle...or build one in the sand" does little for San Luis Obispo. According to the VCB marketing plan, their one display ad for this year, "...depicts a beautiful beach with a sand castle in the foreground and a smaller photograph of Hearst Castle in the top right corner of the ad. The sub-copy discusses Hearst Castle, over 42 premier wineries, and miles of beaches." Any reference to San Luis Obispo attractions is completely absent. • For many years, the Chamber has promoted the entire county, primarily as a way to add attractiveness and diversity to our tourism image. We always tie the county features to San Luis Obispo's tourism image, which the VCB cannot do. II. Much of what the VCB does duplicates what the City is already paying for. • Much of the VCB promotional money is spent on public relations. The City has had a contract with the Chamber for city-oriented public relations efforts with travel writers, editors, and travel programs on radio and TV. Often, the VCB works with the same travel writers as we do, and sends news releases and other materials to the same publications. Unlike the VCB, the Chamber tries to have the stories focus on the San Luis Obispo area, which is much more effective for San Luis Obispo tourism. The VCB assisted stories often end up featuring Hearst Castle, the north county wineries, or the beaches, even when the writer initially had most interest in San Luis Obispo. Much of the City money spent on VCB public relations actually works against the city. J-/3 San Luis Obispo Chamber of Commerce Plan to Refocus City Promotional Spending,3/97,page 3 • The City has a productive and cost effective advertising program in place. Why should the City pay the VCB for ads which don't focus (or even mention) San Luis Obispo, when that same money could buy ads which feature San Luis Obispo's unique attractions and build a strong tourism image for our city? • The VCB strategic plan calls for two Visitor's Centers near the county borders. This duplicates and negates the Chamber's Visitors Center efforts, of which the city funds about one-third. We feel that if a tourist stops at a VCB visitors center upon entering the county, they're unlikely to stop at any other visitors center in our county during their trip. Anything which diverts the 130,000 tourist per year who visit the Chamber's San Luis Obispo Visitors Center will hurt local tourism. Often, a visit to our Visitors Center is VCB spending on ads, brochures, PR the only way we can lure travelers off Declining while SLO pays more the highway to see San Luis Obispo's attractions. $120,000 M. The City's increased payments to $100,000 the VCB have not bought $80,000 additional services, or additional $60,000 : focus on San Luis Obispo. $40,000 $20,000 • VCB fund requests have been based on $0 a percentage of the city TOT, not 94-95 budget 95-96 budget 96-97 budget justified on the basis of additional services or added program costs. Q Brochures Publicity/PR Ad placements • Total VCB advertising has actually decreased in recent years. Source:VCB 1996-97 Promotional Budget • At the same time, the VCB's overhead has increased significantly. VCB Government Funding N. The City of San Luis Obispo's City of SLO Eeeaao . VCB payment is out of proportion to the other cities. • While the City pays $86,700 to the a�os+s,oao VCB, Pismo Beach, which has more ccs ne,000amsu tourism, pays nothing. Morro Bay pays AG$D only $33,332. San Luis Obispo has nio$° Gmar$ZOW been making up the difference for cities MB SM'= like Pismo and Arroyo Grande. City of SLO ® County of SLO Pismo Beach Morro Bay • The City of San Luis Obispo is the ® Grover Beach Arroyo Grande VCB's largest contributor, and pays Atascadero E] Paso Robles almost $30,000 more than all of the Source.-VCB 1996-97 Budget San Luis Obispo Chamber of Commerce Plan to Re-focus City Promotional Spending,3197,page 4 VCB private sector members combined, and $30,000 more than all the other cities combined! V. Much of the VCFs work is simply ineffective for San Luis Obispo. • Our major conference facilities report virtually no benefit from the VCB's conference sales efforts. • Only a small amount of publicity received about San Luis Obispo is the direct result of VCB efforts. • San Luis Obispo's tourism is lagging behind those cities Tourism Growth, Nearby Cities which focus their promotional efforts on their own area. Per cent over previous year, 1996 dollars 20% Why fund the VCB $30,000? 15% - __ -_- _......_- • Keeps the City participating in 10% - ---- — --- - county wide promotion, which 5% - ... -. .. . has some benefit. 00 • This amount is more in o _._.......__. ... _..._.. _..__. ---__---. proportion to the benefit -5% _ . .._..._... ...._._._._._ .._._......_..._._ _.. ._ _.-_._.. ----- : . - - - ------ - -- -received. - ---- - -- - ----.77- -10% __.. -- .... ..... .. .. .__ .... .... _..._. ..- -- -- ._.. ..__._._ ._.- • This amount is more 1990 1991 1992 1993 1994 1995 1996 consistent with what the other major cities contribute. SLO Pismo Advantages of our plan Morro Bay County uninc. • More money spent to promote source:ucsB Economic Forecast San Luis Obispo directly, without the dilution of promoting all areas of City of SLO Promotional Spending the county. We have much to promote and we $100,000 don't need to be the second class step child of $50,0W the beach areas. $60.000 -- -..-- - - - • More promotional results for less money by $4000° ,__,.. 1, spending more on needed advertising $20.000 ............. placements, and.less on production and -- organizational overhead. '87 '88 '89 W 191 192 '93 194 195 196 • A total `lean and mean" promotional program vcs with more spent'on proven, successful local —— vis Ctr.(Chamber) programs with full accountability. ........ PmmoIPR(Chamber) — — adverhsmg(BC&A) Rev.ApriL 1997 Source: City of SLO 3/.5 Summary • While City payments to VCB have been increasing much faster than any other promotional expenditure, what services have increased or added? ■ No additional VCB-paid advertising...it's been declining dramatically. ■ No additional advertising focus on San Luis Obispo...it's down to zero. (Don't let the VCB's co-op ads confuse the issue; these are paid for 100% by the advertisers, not by the VCB.) ■ No additional trade shows or group sales efforts. ■ Yes, additional overhead and public relations...that doesn't help us. • It's not a question of whether or not VCB activity has any value to us. (It does.) • It is a question of how can San Luis Obispo spend its promotional money most effectively. What we think should happen • At least one-third of all VCB activities (advertising, fam tours, PR, etc.) should feature San Luis Obispo. • Future VCB fund requests should be based on additional services or additional costs, not on arbitrary formulas. • If VCB funds are lowered, these funds should be added to the City Advertising Contract. What is the VCB? Created in 1986 by the San Luis Obispo Chamber of Commerce in response to an anticipated 35% increase in the number of lodging rooms during the .1986/87 year. Its purpose was to increase tourism to the area through promotion, advertising, and direct sales. As stated in the .San Luis Obispo County Visitors & Conference Bureau Organizational Plan, "marketing San Luis Obispo County as a package could be the key to a much greater share of the travel market." "The County has a tremendous amount to offer.• beaches, lakes, Hearst Castle, missions...but the cold hard facts are that none of the communities individually have enough to offer as a true destination." SLO Chamber of Commerce, VCB Organizational 4 Plan, 1986 What does the VCB Do? Provide a full-fledged tourism destination marketing plan as outlined in the Organisational Plan. More than just advertising, the VCB's efforts include direct sales through trade show participation, publicity, special promotions via co-op advertising, familiarization tours, and direct mail programs. All of which requires professional and talented personnel to carry out the plan efficiently and effectively. Focused on the off-summer season, the VCB's promotion efforts include conference and group business, filming business, and individuals in our primary and secondary markets. How is the VCB Funded? Pooling the resources of the county both in attractions as well as financially is the strength of the VCB. The Organizational Plan proposed a funding formula that was accepted by the governmental agencies reflecting 3.5% of the TOT collected in each municipality (other CVB's throughout the state receive as much as 25% to 50% of their TOT coIlections). The main reason for basing the formula on a percentage of TOT was that every municipality would benefit equally from the countywide tourism promotion. efforts. 17 Issue #1 The City of San Luis Obispo spends a greater percentage promoting the county through the VCB instead of the city through the Chamber and ad agency. Reality The proposed PCC budget for 1997/99 has dedicated only 24% ($91,700) of the total for VCB funding. The remaining 76% ($296,400) is split between the Chamber and the city's advertising agency. PCC Funding Allocations Proposed 1997/99 Budget Enhanced Promo (12.92°/x) Chamber/promo (9.14%) A ChamberNIC (18.73%) Adv. Contract(35.52°k) z VCB (23.69%) The amount the City allocates to the VCB has four times as much power when added to the rest of the VCB's budget. A$340,000 budget can and does make a significant impact on this city. In 1994/95 the city had an ROI of 11 times from the VCB's programs. •A? c Issue #2 The City of San Luis Obispo's tourism is growing significantly slower than other areas of the county. Reality ! Tourism is growing! Everywhere. The reason it's growing is different in each area. For example, Pismo Beach enjoyed an increase in TOT revenues of$310,515 in 1995/96 over the previous year. 40% of the increase can be directly attributed to the SeaVenture coming back into service in January 1995 at a much higher occupancy and average daily rate. Take away the SeaVenture's influence and Pismo Beach's increase is about the same as the City of SLO's. In the North Coast, Hearst Castle enjoyed a TOT Increases by Percent 14%increase in the number of visitors over FY 1995196 over 1994195 the previous year which in tum helps us all. Part of the area's increases are also due to . ao% increased room rates. 20% ox ®SLO Courdy ®SLO MY ®Pismo Beach >.Morro Bay ®POW Robles ®Arroyo Grande MAmscadero ®Gra-wBeach 1995/96 TOT Totals s�,000.oao sz000 000 $1.0w.ow SLO TOT Monthly Increase ®SLoC4)U* ®n0CKr ®pismos"ch ®MWS as00% ®Paso Roma. ®ArroyoGrarMeEMA�dero G=eeaeh 20.00%, ,soa% i San Luis Obispo is growing solidly, s.00x with higher occupancy and average darly rates iW 111 ° ,,,M,, MY October throughout the city. 1.996 TOT revenues also indicate an extraordinary rate of growth for ®,Oscerr,s9s ! the city. Issue #3 The VCB's secondary emphasis on Canada and Western Europe is largely wasted effort on the City of San Luis Obispo, as are the national and Western U.S. ads that the VCB places and the trade shows in other regions and countries. Reality The primary efforts (98%) of the VCB's marketing campaign focuses on California,with Southern California taking priority over other parts of the state. All of the VCB's newspaper ads are placed in four markets in the state(Los Angeles,Fresno,Bakersfield, and San Jose) and the r7 consumer and meeting planning shows in which the VCB participates take place in-state. The VCB's magazine advertising program also focuses on in-state publications with only one distributed in the Western U.S. The Zip Code Survey which the VCB has conducted for several years, indicates that the visitor staying in San Luis Obispo comes from not only California but the states of Arizona, Texas, Nevada, New York and Oregon. In addition, San Luis Obispo enjoys playing host to a number of intemational visitors, primarily coming from the U.K, Germany and Canada. These findings also correspond with the recent UCSBNCB visitor survey. Top Origins National Advertising does work for San Luis Visitors to SLO outside of California Obispo. The VCB coordinated a cooperative UCSBNCB.V for Study ad campaign with American Express and Washington Travel & Leisure Magazine last year. It was Arizona a two page spread with a circulation of Nevada 390,000 in 10 cities nationwide. It also New York feared a direct mail campaign to 50,000 AE U,K cardholders in Los Angeles. Over the sic Germany month life of the program, an additional 54.38 million was spent by AE cardmembers in San Luis Obispo County and over 18,000 leads (ad responses)were generated. If the VCB tried to duplicate the program alone, it would cost$119,000. Six SLID businesses were featured in the ad, benefiting from the credit card sales. VCB Budget Allocations Includes Salaries $220.000 Administrative expenses and operations ® ' have remained constant while marketing expenses have $no,000 increased to total 63%of our budget $120,000 Wro 570.000 opwarms S20.DDD L 7595198 199GF97 3-OW Issue#4 Chamber and UCSB research indicates that San Luis Obispo does not share tourists with the rest of the county., Reality If sharing means that the visitor to San Luis Obispo goes to other parts of the county while they are here, UCSB research indicates exactly that activity. In fact, the San.Luis Obispo visitor visits an average of 3 other cities in the county. This is also supported by the kind of activities in which they participate. The UCSB/VCB Visitor Study indicates that 23%went wine tasting and 11% went birdwatching in addition to those who went to Hearst Castle. The 1993 VCB Activity Survey said that while 32% of the visitors to San Luis Obispo stayed in the city to eat, shop and play, 13%went to Morro Bay, 12%to Pismo Beach, and 12%went to San Simeon and Cambria for the same activities. Issue #5 VCB ads feature Hearst Castle and the beaches and don't even mention San Luis Obispo. Reality This is the first year since 1986/87 that the VCB has featured the image of Hearst Castle in its display ads, Prior to this year, the newspaper ads featured various special events by city with no photography. While response was okay and the ads appeared to be"politically correct"in featuring all funding cities, the VCB marketing committee felt we could do better. With so much competition in advertising destinations, the VCB had to go with the images that would attract the most attention. Hearst Castle is this county's most famous icon and every town benefits from it. We feature the beach in our ads because research from CalTour(California Office of Tourism)indicates that more people go to the beach while on vacation than any other activity. This includes California residents! The proof is in the pudding. Our ads this year are getting more responses than in previous years using the same publications. The VCB's campaigns are constantly being revised. If something doesn't appear to be pulling responses,the ad-or trade show is deleted. Such was the case in the Fresno Bee and Bakersfield Californian. While many of our members enjoy a lot of business from the Valley, the VCB was not receiving the ad responses desired. Instead of pulling our presence altogether from the market, the VCB employed a co-operative ad campaign whereby the members place ads at a reduced rate, the VCB submits editorial and a banner, and a much larger ad is featured at no cost to the VCB. Direct advertising expenditures have been reduced, but the exposure of the county has been increased to the point where if we actually purchased the ' co-op space, it would double our advertising expenses. CALTOUR Destination Index 1995 Top 10 Acth ities Volume by California Residents Beach/uaterfront 28 M. ap. Touring by car or bus 23 Theme/amusement park 20 Hrk&b0ce 22 Parks:National,State 21 Visit historic site 17 Cultural:museum,play 17 Festival,craft fair 13 Watch sports events 12 Camping 11 1A Times research also supports the idea that sunbathing and swimming are the number one activities for vacationers. Issue. #6 VCB PR duplicates Chamber's efforts and only a small amount is due to the VCB. Reality The PR business is a very large nut to crack, and to think that one organization can do it all is not dealing in reality. The VCB has been able to attract a variety of travel writers to San Luis Obispo County that the Chamber has not been in contact with. This year alone,the VCB has hosted two major travel writer groups, one from San Francisco and the other from a variety of places in the country. Each trip included San Luis Obispo as part of their itinerary and the VCB requested the expertise of the Chamber to assist with both groups. Individual travel writers are also assisted, and depending on their interests are steered to the appropriate area. Are we duplicating the Chamber's efforts? No, San Luis Obispo can never get enough publicity. 1995196 Publicity for the City of San-Luis Obispo Print 902.5 eoh�a nukes Television (2 miac Fnmur30mias xRoM 32=hmus Paid Advertising equivalent 52649775 Issue # 7 VCB Visitor Centers will divert tourists away from the Chamber's visitor center, "the only way in which the Chamber can lure travelers off the freeway to see the city's attractions." Reality The highway visitor center program that the VCB feels will encourage the drive-through visitor to stop will only enhance the number of visitors to the city, not detract. If the traveler has a compelling reason to get off the freeway, such as seeing a"Welcome Center" sign with easy ` access, in a comforting environment, we are more likely to encourage the traveler to stop in one of our many destinations. If the traveler continues to drive through the county without stopping, no one benefits. The highway"Welcome Center"program could be a cooperative effortwith all the Chambers in the county, sort of satellite offices extending services. If bringing visitors to the city's businesses and attractions is truly the interest of the Chamber, then an idea like this should at least be discussed instead of automatically disregarded. Issue # 8 The City's payment to the VCB is out of proportion to other cities. The City should cut the VCB funding to $30,000. 1996/97 VCB Government Funding j GB(51,500. ATA00 Reality PR(515,870.00 s(55,526.00 MB(534,174.00 CICO mo ox O) All of the public sector funders of the VCB in 1996/97 pay 3.5% of their TOT or better. It has i not always been this way, even with the city of San Luis Obispo. s<o ,,�,� ii Public Sector Funding Based on Percent of TOT 5.OD% Reducing the funding 4.00% amount to $30,000 would 3.00% set the VCB and all that 7-00% has been accomplished 1.00 back 10 years. what little 0.0D-A-' would be gained by the 8687 87/88 88189.89/90 9091 91/92 92!93 93194 94/95 95!96 9697 ON.moco ®g0 ®PB MB ®ATAS M PR ®OB Chamber's proposal would be totally overshadowed by a reduction in the VCB's ability to maintain its very successful programs. WASBE, this city's largest international conference, will bring up to 3,000 people to this city's businesses. The VCB is beginning to plan for this huge undertaking and reducing our resources will only impair our ability to cavy out our requirements. Private Sector support for the VCB is stronger than ever, but should not be confused with public sector support. Members receive very tangible benefits, tools with which to increase business, and as every membership organization knows, if a member is not happy,they will drop. Issue #9 Much of the VCB's work is simply ineffective for San Luis Obispo as evidenced by the city's major conference facilities reporting virtually no benefit from the VCB's sales efforts. Reality The VCB is a referral agency. We provide the same leads to all of our members from which they book business. Having said that, in 1995/96 the VCB generated leads or assisted with conference groups to not only the Embassy Suites but also Madonna Inn, Quality Suites and Super 8. These twelve groups had an economic impact of S383,234.R So far this FY, VCB leads have generated bookings with an estimated impact of 527,529. Members benefiting were the Embassy Suites, the Forum, Travelodge and SLO Vet's Hall. As the county's official Film Liaison OfTice,the VCB's Film Commission is responsible for referring members, finding locations, and coordinating permits. Fuming is another type of group business, and a very lucrative one at that. One commercial shoot this year brought the city and its businesses 540,000 in expenditures. The Film Commission's Film Services Directory cover photo features the Fremont Theater and the Trolley,which is the main fulfillment piece to the industry. *based on a Me nrsis7 vQ pa=aQ ft an 1AcvB standard F 3-All Issue #10 The City has much to promote. We don't need to be the second-class step child of the beach areas. Reality Just as the 1986 Organizational Plan stated,we all need each other. Morro Bay can't survive without the variety of activities in the county, the Missions, our wineries, the shopping, Farmer's Market... neither can San Luis Obispo live without the beaches and Hearst Castle. We're not saying that everyone in San.Luis Obispo goes to the Castle,just one out of every five. And if the beaches weren't so important to the city, why does Embassy Suites use the phrase"every ` room with an ocean view" in their advertising? Or the Chamber feature Port San Luis Lighthouse on the cover of the Visitors Guide? No, it's not the only reason people come to San Luis Obispo, but it may be just the reason to keep them here longer. Isn't that what it's all about? Summary ♦ No additional advertising...it's been declining dramatically. Advertising expenses have remained constant,co-op advertising has doubled our exposure. ♦ No additional advertising focus on San Luis Obispo...its down to zero. Every ad features the attributes of this county from which the city benefits. ♦ No additional trade shows or group sales efforts. Group sales efforts were increased to full time only one year ago. Two additional meeting planning shows and one more tour operator show have been added to schedule. ♦ Yes, additional overhead and public relations...that doesn't help us. The same services contracted with the Chamber now Bost the VCB$45.91 per square foot less. Tourism promotion is very labor intensive. To meet the demands of the industry,staffing has increased from'3 FT employees to 4.717T. service and benefit levels have increased as evidenced by our membership numbers. This area needs all the help it can get with Public Relations...not only externally . but internally as well The VCB has been ardent in its efforts to educate the residents and the elected officials on the benefits of tourism...something that will help all of us in the long rum Real Focus Our target should be more visitors, not each other. Instead of internal bickering, we should all be focusing our efforts on the big picture. We shouldn't be content with just splitting the current pie, but making the pie bigger. That means getting more of the TOT to be used for its intended purpose...tourism promotion! Only 14% of the City's TOT now goes to tourism promotion when the formula for the PCC used to include 20% of the TOT, 15% of business licenses and 2% of sales tax. Our need to promote hasn't decreased, nor has the competition from other destinations. Proposed for next year is a co-operative advertising program for the Los Angeles market totaling $250,000, all in print advertising. Funding for this program would come from the public sector, an addition to the VCB's annual fee for funding. The City has been asked to contribute $65,000, for which ''/.th of the ads will.feature a city attraction while the overall theme of the campaign remains constant. Similar to a campaign that Monterey is currently running in Los Angeles, not only can they account for over 40,000 ad responses but reservations were made as well, generating$841,000 in room revenues. San Luis Obispo can certainly benefit from this kind of cooperative campaign, but only if we work together to achieve the goals. a AGREEMENT TO PROVIDE VISITORS AND CONFERENCE 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; 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 teras 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 of this Agreement is made and entered, as first written above,until June 30, 1999. 2. INCORPORATION BY REFERENCE. Contractors proposal, "1997/99 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 the City Project Manager. 4. CITY'S OBLIGATIONS. For providing services as specified in Attachment 1 to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: 1997-98 1998-99 Visitor's ServicelTourist Information Activities $58,700 $60,400 Payment shall be made in four installments,as follows: • September 1, 1997 $29,350 • January 31, 1998 $29,350 • July 31, 1998 $30,200 • January 31, 1999 $30,200 $119,100 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 Attachment 1 attached hereto and incorporated into this Agreement. The City contracts with the Contractor and the San Luis Obispo Chamber of Commerce 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 associated with the Chamber of Commerce and advertising services agreements. 6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Attachment 2. 7. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Attachment 3. As evidence of this inswance, the Contractor shall provide the City with a Certificate of Insurance and an Endorsement naming the City as an"Additional Insured". 8. AMENDMENTS. Any amendment, modification, or variation from the tenors of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City. 9. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 10. INDEPENDENT, JUDGMENT. Failure of the City to agree with Contractor's independent findings, conclusions or recommendations, if the same are called for under this agreement, on the basis of differences in matters of judgment shall not be construed as a failure on the part of the Contractor to meet the requirements of this agreement. J'J8 11. 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. 12. 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. 13. 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 990 Palm Street San Luis Obispo,CA 93401 Contractor County of San Luis Obispo Visitors and Conference Bureau 1037 Mill Street San Luis Obispo,CA 93401 Attn: Jonni Biaggini 14. 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 City Clerk Allen Settle,Mayor APPROVED AS TO FORM: CONTRACTOR By: n City Att mey Jonni Biaggini,Executive Director A Z2 J-47 ATTACHMENT 1 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 employ 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. A new focus will target corporate and incentive groups. b) Attending and representing San Luis Obispo County at those major travel and sales shows that directly impact our targeted market areas during the contract time period. c) Coordinating scheduling for potential conferences with individual properties in San Luis Obispo County, with particular emphasis on use of the Performing Arts Center. d) Developing new, coordinated countywide sales materials and brochures to be used in the marketing program,with care being taken not to duplicate materials developed by the San Luis Obispo Chamber of Commerce or the City's advertising firm. e) Creating and implementing a coordinated and planned marketing campaign, stressing the benefits of the San Luis Obispo area as a destination for visitors, including a new focused campaign for the months of November,December and January. f) Submitting monthly reports on the progress of the VCB to the City's Project manager and the Promotional Coordinating Committee(PCC). Reports will contain information on countywide activities and a breakdown indicating those items which specifically benefit the City of San Luis Obispo. g) Assuring the success of the World Association of Symphonic Bands and Ensembles (WASBE) conference in 1999 without additional financial support from the City. h) Acting as the county Film Commission to attract film business to the area. ATTACHMENT.2 GENERAL TERMS AND CONDITIONS CONTRACT REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the fora coverages and amounts specified in Attachment 3 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 Fait 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. 10. Payment Terms. The City's payment tenors 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 tern 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 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. is. 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 uarecycled 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. ATTACHMENT 3 INSURANCE REQUIREMENTS: CONTRACTORS The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to ,jersons 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. ether Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed contain, the following provisions: i. 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. -Accentahility of Insurers. Insurance is to be placed with insurers with a current A.M.Best's rating of no less than ANII. Verification of Covera e. 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. —abcontractors. Contractor shall include all subcontractors as insured under its policies or shall famish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. �a7� 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; the CHAMBER OF COMMERCE OF SAN LUIS OBISPO, INC., CALIFORNIA, hereinafter referred to as Contractor. WITNESSETH: WHEREAS,the 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 cavy 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 of this Agreement is made and entered,as fust written above,until June 30, 1999. 2. INCORPORATION BY REFERENCE. Pages 16-20 of Contractor's proposal dated March 12, 1997(Attachment A). 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 the City Project Manager. 4. CTI'Y'S OBLIGATIONS. For providing services as specified in Attachment 1 to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: .�•3b 1997-98 1998-99 Promotional Services $35,359 $35,359 Payment shall be made in four installments,as follows: e September 1, 1997 $17,679 • January 30, 1998 $17,680 • July 31, 1998 $17,679 • January 31, 1999 $17,680 $70,718 Payment includes $250 annually as partial payment of a compute file server service for the Weblink software. 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 Attachment 1, excluding Options 1-4, attached hereto and incorporated into this Agreement. Contractor also agrees to contract for computer file server service for the Weblink softare. 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 and with the Contractor for Visitor Center 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 associated with the Visitor Center services,VCB and advertising services agreements. 6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Attachment 2. 7. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Attachment 3. As evidence of this insurance, the Contractor shall provide the City with a Certificate of Insurance and an Endorsement naming the City as an"Additional Insured". 8. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City. 9. INDEPENDENT CONTRACTOR Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. ,�-3� 10. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 11. NOTICE. All written notices to the parties hereto shall be sent by United States mail,postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor Chamber of Commerce 1039 Chorro Street San Luis Obispo, CA 93401 Attn: Dave Garth 12. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, .the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By City Clerk Allen Settle,Mayor APPROVED AS TO FORM: CONTRACTOR (e r,A" a -OU- rlv,.o By: City Attmey Dave Garth,President/CEO 3-3� ATTACHMENT 1 PROMOTIONAL PROGRAM CONTRACT PROPOSAL The Chamber's existing contract provides the city with the following services: 9 Research and write news releases Each year the Chamber sends out at least 16 news releases about city events and attractions. The Chamber works with various groups to gather information and develop a release that will generate maximum media interest. Slides and/or brochures are sometimes sent out with a release if appropriate. The Chamber handles copying the releases,stuffing,labeling, sorting and mailing the releases to a media list that includes local contacts and also contacts throughout the state and across the country. 0 Maintain accurate media information Getting the information about San Luis Obispo into the hands of the right people is an important part of fulfilling this contract. The Chamber maintains a comprehensive computer mailing list of more than 300 media outlets throughout the state and beyond including newspapers,magazines,radio and TV stations and networks, as well as freelance travel writers. It is updated monthly as new contacts are made and is reviewed periodically for accuracy. • Handle media requests . This includes,but is not limited to,sending media packets, developing and writing articles, arranging accommodations for visiting travel writers,updating guidebook listings,arranging interviews,researching historical data.The Chamber maintains media information files on a variety of local events and attractions and has a very extensive library of 35mm color slides plus black and white photographs available for media use. San Luis Obispo Chamber of Commerce Contract Review and Proposal Page 21 Q • $olicit editorial spaceltime on behalf of the City This.involves personal contact and varies greatly depending on the type of media and situation It can include personal letters,phone calls,meeting with travel writers or the development of special projects to solicit coverage of San Luis Obispo,its events and attractions. • Keep records and report the Promotional Coordinating Committee The Chamber keeps track of its press contacts and maintains a clip file for the city. It also reports its efforts monthly to the Promotional Coordinating Committee. San Luis Obispo Chamber of Commerce Contract Review and Proposal Page 22 PROPOSED PROMOTIONAL PROGRAM CONTRACT For more than six years,the City has either maintained the promotional program contract at either a flat rate with infrequent increases to reflect cost of living. Maintaining status quo in funding while costs continue to increase does little to help the City's promotional program grow. As a result, the Chamber proposes a basic service contract with three.options for additional service: Basic service—$35,109 per year This basic contract for 1996-97, 97-98 reflects a 3 percent per year increase. This plan will allow the program to continue sending basic releases and providing basic service. This includes use of a professional staff,comprehensive computer system, a data base of media contacts developed over 20 years and a reputation for handling their requests' in a professional and timely manner. It also includes the basic maintenance of a visitor information site on the World Wide Web, maintenance of the Community Calendar of Events on the World Wide Web, and$250 per year to help defray the cost of the Internet server connection necessary to operate the calendar link. Option 1—SIide Sets— $1,200 in year one The use of pre-written,specialty stories by print media is a growing trend. Many large members of the media will run feature stories complete with photographs if the material is provided them free of charge. An additional$1,200 in year one,would allow the City to expand its promotions program to include such stories, complete with slides,written for and submitted to key media. The additional cost merely covers slide duplication costs. There is no additional charge for additional staff time,postage, supplies and other goods and services this extended program would require. Option 2—Familiarization Tours—$3,000 per year This alternative, the City could further expand its promotion program to include familiarization tours. Familiarization tours for qualified,working members of the media are among the most cost-effective methods of gaining non-.commercial coverage of San Luis Obispo. Option 3—World Wide Web—$1,500 in year.one Although the Chamber currently maintains basic visitor information on its homepage,. service of those pages and further development of those pages could be augmented. WWW servicewould include a considerable upgrade of information currently San Lui4 Obispo Chamber of Commerce Contract Review and Proposal Page 23 available online and additional online promotional-efforts. Option 4 Weblink Software-$2,000 in year one The Chamber currently maintains a community calendar of events of particular interest or impact on tourists. A$4,000 software has recently become available which would allow the Chamber'to download that information to the World Wide Web several times each week. The Chamber proposes that the City pay half of the cost of the software. The Chamber will cover the rest of the software cost, any hardware upgrade costs, and will update the calendar daily and download the new calendar to the World Wide Web several times weekly. San Luis Obispo Chamber of Commerce Contract Review and Proposal Page 24 J491 ATTACHMENT 2 GENERAL TERMS AND CONDITIONS CONTRACT REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form coverages and amounts specified in Attachment 3 to this contract within 10(ten)calendar days after notice of contract award.As a precondition to contract execution. CONTRACT PERFORM&NCE 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 cavy 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 Tweaty-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. 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 offices 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 tern 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 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 terns 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 uarecycled 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. INSURANCE REQUIREMENTS: CONTRACTORS ATTACHMENT 3 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: L 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 ANLL 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. ,3-�G AGREEMENT TO PROVIDE ADVERTISING 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;BARNETT, COX& ASSOCIATES,hereinafter referred to as Contractor. WITNESSETH: WHEREAS, City desires to retain the services of a professional advertising firm to carry out the City's advertising campaign as recommended by the Promotional Coordinating Committee(PCC); and WHEREAS, City desires to engage Contractor to provide these services by reason of its qualifications and experience in 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 of this Agreement is made and entered,as first written above,until June 30, 1999. 2. INCORPORATION BY REFERENCE. Contractor's proposal for marketing services dated April 25, 1997, 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 circumstance or conditions subsequent to the execution of this document require a substitute Project Manager for any reason, the Project Manager designee shall be subject to the prior written approval by the City Project Manager. 4. CITY'S OBLIGATIONS. For providing services as specified in Attachment 1 to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: 1997-98 1998-99 Marketing and Advertising Services $136,250 $140,450 3-�1 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 Attachment 1 attached hereto and incorporated into this Agreement. The City contracts with the San Luis Obispo Chamber of Commerce and the San Luis Obispo County Visitors and Conference Bureau (VCB) for promotional 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 associated with the Chamber of Commerce and VCB agreements. 6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Attachment 2. 7. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Attachment 3. As evidence of this insurance, the Contractor shall provide the City with a Certificate of Insurance and an Endorsement naming the City as an"Additional Insured". 8. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City. 9. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 10. 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. 11. 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. 12. 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 990 Palm Street San Luis Obispo, CA 93401 Contractor Barnett, Cox&Associates 979 Osos Street,Suite F San Luis Obispo,CA 93401 Attn: Maggie Cox 13. 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 City Clerk Allen Settle,Mayor APPROVED AS TO FORM: CONTRACTOR Clw,ctti, g eea By: 0 City Atforney Maggie Cox,President ATTACHMENT 1 Scope of 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. Providing 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 the 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 or City Council may require,including 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. 3-So ATTACHMENT ? .ENERAL TERMS AND CONDITIONS CONTRACT REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form coverages and amounts specified.in Attachment 3 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 cant' 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. 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 becarise 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. J-S/ 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 povided by the Contractor.' 11. Inspection. The Contractor shall famish 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 requir X=ts. 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 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 tenors 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. ATTACHMENT 3 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 Autom auto). obile Liability, code 1 (any 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 volunteer;. 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 Iiability. 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. •Accentability of Insurers. Insurance is to be placed with insurers with a current A.M.Best's rating of no less than ANII. . Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 3-sy 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; the CHAMBER OF COMMERCE OF SAN LUIS OBISPO, INC., CALIFORNIA, hereinafter referred to as Contractor. WITNESSETH: WHEREAS,the 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 WIiEREAS, 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 the City in an efficient and economical manner, NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained,the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date of this Agreement is made and entered,as first written above,until June 30, 1999. 2. INCORPORATION BY REFERENCE. Pages 16-20 of Contractor's proposal dated March 12, 1997(Attachment A). 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 the City Project Manager. 4. CITY'S OBLIGATIONS. For providing services as specified in Attachment 1 to this Agreement, City agrees to cooperate with Contractor and Contractor shall receive compensation as follows: 1997-98 1998-99 Visitor's ServiceJTourist Information Activities $72,268 $72,268 Payment shall be made in four installments,as follows: • September 1, 1997 $36,134 • January30, 1998 $36,134 • July 31, 1998 $36,134 • January 31, 1999 $36,134 $144,536 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 Attachment 1 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 associated with the Promotional Services, VCB and advertising services agreements. 6. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Attachment 2. 7. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Attachment 3. As evidence of this insurance, the Contractor shall provide the City with a Certificate of Insurance and an Endorsement naming the City as an"Additional Insured". 8. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City. 9. INDEPENDENT CONTRACTOR Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. 10. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, 3�b nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 11. NOTICE. All written notices to the parties hereto shall be sent by United States mail,postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Contractor Chamber of Commerce 1039 Chorro Street San Luis Obispo,CA 93401 Attn: Dave Garth 12. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By City Clerk Allen Settle,Mayor APPROVED AS TO FORM: CONTRACTOR " a- �2mm►Lo By: City Attdmey Dave Garth,President/CEO 3�� ATTACHMENT 1 CONTRACT PROPOSALS 1995-96,1996-97 VISITORS CENTER CONTRACT PROPOSAL The Chamber's existing contract with the city provides for the following services: • Maintain a public office in a centralized location for visitor information. This includes providing a center open to the public seven days a week, and includes rent,utilities, copying and other equipment. The Chamber.Visitor Center at 1039 Chorro Street is ideally situated in the heart of downtown San Luis Obispo just a few buildings down from Mission San Luis Obispo de Tolosa. In April 1997, the Center is slated to begin remaining open until 8 p.m. Thursday through Saturday at the City's request. • Provide a high Ievel of personal service to visitors. This is one of the most time-consuming functions of the Visitor Center but one of the most important. It requires a trained staff of one full-time and five part-time employees to handle the flow of visitors to the Center and field a variety of questions about the area and two part-time employees who fulfill the City Ad Campaign The Chamber must cover salaries,payroll taxes and also health and disability insurance for these employees. • Dispense information about San Luis Obispo. This includes tourist information such as city and county maps,hotel/motel directories. and Visitors Guides and also brochures and pamphlets on city events and attractions. The Center is also a source of general statistics about the community and maintains a library of community and economic data,information on area nonprofit groups and business and phone directories for public use. San Luis Obispo Chamber of Commerce Contract Review and Proposal Page 16 p J�SO • Handle telephone calls from the public. The Visitor Center serves as a key contact and referral agency for both residents and potential visitors from throughout the world and handles calls on four incoming lines. The Chamber provides a trained staff that is available to field these phone calls. • Respond to written requests for information about the city. This includes response by mail to those requesting visitor and other general iiiformation about the city including economic profiles, event calendars and business data. • Fulfill responses to requests generated by the city's advertising campaign. The Chamber sends out information in response to inquiries generated by the City's Advertising Agency. The advertising agency provides the brochures and the Chamber provides the envelopes, stuffs,labels,sorts and pays for the postage for those ad responses. • Report on Visitor Center activities to the Promotional Coordinating Committee. The Chamber staff keeps track of the number of visitors to the Center,records advertising responses,records materials distributed to groups and individuals, and provides that information monthly to the City's Advertising Agency and the Promotional Coordinating Committee. San Luis Obispo Chamber of Commerce Contract Review and Proposal Page 17 `q �J [ PROPOSED VISITOR CENTER CONTRACT The Chamber proposes continuing the Visitors Center Contract for 1995-96 and 1996-97 with services as outlined above at an amount of$72,268 per year. This rate represents a 3 percent increase each year and$11,700 per year to operate the Center nine additional hours per week as previously requested by the City. The Chamber's expense of running the center,including labor,has increased at a rate of 5.1 percent per year,but received its first increase in four years in 1995. This contract amount includes$5,450 applied to the fulfillment response in any quantity as directed by the Promotional Coordinating Committee.Any additional responses would be charged to the city at rates specified per the Fulfillment Cost Schedule (attached). San Luis Obispo Chamber of Commerce Contract Review and Proposal Page IS �6° Fulfillment Cost Schedule (Year 1) The variables: I. How did we get the inquiry? Mail, mail with label supplied (bingo card), telephone (800 number or Chamber number) 2. Which packet are we going to send? (1 oz., or 10 oz. with Visitors Guide) 3. Whose material are we using in the packet? (City or Chamber supplied) 3. How are we able to ship the packet? (First class mail, 3rd-class mail, Bulk rate, Bulk rate with 3-5 digit sort) .-I oz. Packet, all City supplied material except envelope 1 oz. Packet, Telephone Response (800 or Chamber direct) Regular Bulk Bulk 3-5 digit sort Postage .32 .26 .21 Envelope .06 .06 .06 Labor .90 .90 .90 Total 1.28 1.22 1.17 1 oz. Packet, Mail Response :without label, Regular Bulk Bulk 3-5 digit sort Postage .32 .26 .21 Envelope .06 .06 .06 Labor .76 .76 .76 Total 1.14 1.08 1.03 1 oz. Packet, Mail Reponse with label (bingo card) Regular Bulk Bulk 3-5 digit sort Postage .32 26 .21 Envelope .06 .06 .06 Labor .66 .66 66 Total 104 .98. 93 San Luis Obispo Chamber oCCommcrce contract Review and Proposal Page 19 3-6/ 10 Oz.Packet with Chamber supplied Visitors Guide 10 oz. Packet, Telephone Response, 800 or Chamber direct) Regular Bulk Bulk 3-5 digit sort Postage 2.16 .79 .51 Envelope . .12 .12 12 Labor .94 .94 .94 Visitors Guide 1.49 1.49 1.49 Total 4.71 3.34 3.06 10 oz. Packet, Mail Response without label Regular Bulk Bulk 3-5 digit sort Postage 2.16 .79 .51 Envelope .12 .12 .12 Labor .80 .80 .80 Visitors Guide 11.49 1.49 1.49 Total 4.57 3.20 2.92 10 oz. Packet, Mail Response with label Regular. Bulk Bulk 3-5 digit sort Postage 2.16 .79 .51 Envelope .12 12 12 Labor .70 .70 .70 Visitors Guide 1.49 1.49 1.49 Total 4.47 3.10 2.82 San Luis Obispo Chamber orcommeree Contract Review and Proposal Page 20 ATTACHMENT 2 YENERAL TERMS AND CONDITIONS CONTRACT REQUI11Fb1ENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form coverages and amounts specified in Attachment 3 to this contract within 10(ten)calendar days after notice of contract award. As a precondition to contact 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 cavy 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. 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. 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 of 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 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 famish 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. ATTACHMENT 3 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. Tbe'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 ANTI. 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. . 3-66 ""EETINI AGENDA _,ATE 7'�' ITEM # San Luis Obispo Chamber of Commerce `IJ 1039 Chorro Street • San Luis Obispo, California 93401-3278 (805) 781.2777 • FAX (805) 543-1255 June 27,1997 e-mail: slo-chamber@slonet.org David E. Garth, President/CEO Mayor Allen Settle City of San Luis Obispo uNCIL ❑ CDD DIR ❑ FIN DIR 990 Palm Street ❑'/►CA ❑ FIRE CHIEF San Luis Obispo,CA 93401 piaORNEY ❑ PW DIR CLERKIORIG ❑ POLICE CHF ❑ MGMT TEAM ❑ REC DIR Re: 1997-1999 Promotional Program ❑ ❑ UTIL DIR ❑ O PERS DIR Dear Mayor Settle: On behalf of the Board of Directors of the San Luis Obispo Chamber of Commerce,I wanted to convey our support for City Staff's recommendations regarding the 1997- 1999 Promotional Program. As you are aware,the Chamber very strongly supports the City's existing Promotional . Program. However,over the past year,Chamber leadership has felt that the City's promotional funds could be spent more effectively. By directly marketing the City of San Luis Obispo,rather than the San Luis Obispo region,the unique attributes and character of our City will be better promoted. Direct promotion of the City will result in increased visitation,increased overnight stays,and increased TOT. We agree with the CAO's recommendations to you regarding the reallocation of the Promotional Program funds among the various program components. The proposed investments in the direct marketing of the City is the best way to get a "bang" for San Luis Obispo's "bucks". Additionally, it will bring the City's investment in regional advertising more on par with the other cities in our area. We urge you to support the GAO's well thought out and reasoned recommendations regarding the 1997-1999 Promotional Program. Sincerely, Robert L. Griffin Chairman of the Board DECEIVED TM VEMs cc: Bill Roalman Dave Romero J U N [ 7 1997 Kathy Smith Dodie Williams SLO CITY COUNCIL ACCREDITED John Dunn .wu•or cow uu S 8057722599 07/01/97 08: 13 P.01 MEETING �_ AGENDA ROADSIERS -ITEM # i July 1, 1997 To whom it may concern, As 1 read today's T-T, I am a bit dismayed at the recommendation of the city stair to cut funding of the VCB. Base on what? As a member of a non profit organization that host an event yearly In San Luis Obispo, (24 consecutive years running) I find this to be a slap in the face of a dedicated group. Dedicated to what,you ask? For starters,PROMOTING OUR CITYI For twenty-four years we have worked to promote our beautiful city and county,each year bringing in up to 600 participants for our local event,and several thousand spectators, requiring hundreds of hotel rooms, meals, gas,etc. Through the years several participants have moved here and even opened business here(tax dollars). We do this with no city or county funding. Each year we go through the steps to promote and Involve the community in this event, each year when we approach the San Luis Obispo Chamber of Commerce,we're told that "sorry,but we can't afford to give you any visitor's guides,If you would like to have some of the past year's guides,we'll give you them.' This is not acceptable,as marry of the businesses included quite possibly have gone out of business,events listed are not current, etc. When we approach the VCB,the tone is quite different,as they readily came forward with the latest guides, brochures,and even followup calls to see how they were used and once even setup a welcome table at our registration booth. I have found Joni Biaggini and her staff to be very professional in their dealings with visitors and local groups such as ours. It Is my hope that the city council takes a long,hard look at who is actually In the trenches' promoting our fair city,and realize that the VCB and the BIA are the real workhorses on the street. g Sy er A note:l have been a resident of SLO county since'49,San Luis Obispo city proper since '68,have owned several businesses and have been a member of both the Chamber of Commerce and the BIA UNCIL O CDD DIR AO O FIN DIR DECEIVED AO ❑ FIRE CHIEF /rr ORNEY ❑ PW DIR ErCLERKIORIG ❑ POLICE CHF ,I 111. 0 1 1997 13 1I AM O REC DIR � O UTIL DIR SLO CITY COUNCIL ° O PERS DIR