12.B Report Tourism Study and Funding; TJA Amendment 5 2022-04-05

PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.B
SUBJECT/TITLE:

TOURISM STUDY RESULTS AND FUNDING; AMENDMENT #5 TO ADVERTISING

AGREEMENT WITH TJA ADVERTISING AND PUBLIC RELATIONS
RECOMMENDATION:

1.Receive a presentation from staff on the results of tourism research obtained as directed by the City Council;

2.Adopt a Resolution authorizing the City Manager to execute Amendment #5 to the TJA Advertising & Public Relations LBID Advertising Agreement in the amount of $43,355 and appropriating related budget adjustments to pay for the visitors research study in Fiscal Year 2022;

3.Consider the CVB/LBID Advisory Board recommendation to spend an additional $350,000 per year to increase the LBID annual marketing budgets starting in Fiscal Year 2023;

4.Consider the CVB/LBID Advisory Board recommendation to spend $110,900 per year from the CVB General Fund available marketing budget for advertising for stewardship and staycation marketing starting in Fiscal Year 2023.

BACKGROUND:

At its August 17, 2021 meeting, the City Council reviewed the City’s current marketing contracts with TJA Advertising and Public Relations (TJA) and authorized amendments for both the General Fund marketing contract and Lodging Business Improvement District (LBID) fund contract. As part of that action, the TJA Advertising agreement (using General Fund dollars) was reduced by $110,900. This amount was left budgeted, but its use was delayed until consensus was reached on the best way to use these funds. In addition, the City Council directed the scheduling of a joint meeting of the City’s CVB/LBID Advisory Board and the Council to review and evaluate the use of the City’s CVB/LBID funding, including the use of some of the available fund balance in the LBID Fund for future marketing and/or other uses.

On September 29, 2021, a Special Joint meeting of the City Council and CVB/LBID Board was held. Staff prepared a presentation that outlined the following:
History of the LBID in Pismo Beach
LBID legal rules and requirements
Financial report on the LBID-CVB budget and unallocated fund balances Comparative information on spending in other markets
What’s at stake when Destinations stop marketing: San Diego case study Pismo Beach/Monthly Market Performance
Who’s Coming and From Where: Visitation to Pismo Beach During the meeting, the City Council and CVB/LBID Board agreed that $300,000 of LBID revenue should be held in reserve as a special opportunity or emergency fund balance in

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the event that LBID assessment revenues did not come in as projected. The CVB/LBID Board also recommended that the majority of the LBID funds collected be spent on marketing the City to increase overnight stays.

At the conclusion of the meeting, staff was directed to pursue a visitor research study answering the questions below, which would be returned to the CVB/LBID Board for its recommendation, and then be provided to the City Council for consideration and action.

The study focused on the following:

1. Where do overnight and same-day visitors to Pismo Beach come from that are creating capacity issues during peak season?

2. How can a tourist be motivated to stay longer?

3. What can overnight visitors be offered to give them a higher quality experience?

4. How can same-day visitors be motivated to stay overnight, and ideally for multiple nights?

5. How can their enjoyment of their visit be enhanced, e.g., through service additions or infrastructure improvements?

6. Where are people coming from that stay multiple nights?

Staff was also directed by the City Council to obtain a recommendation from the CVB/LBID Board on the following considerations, based on the results of the study:

 Should the LBID Fund available fund balance in excess of $300,000 be used toward marketing, or for other purposes?
 If the funds should be used for marketing, how should they be targeted? Should these funds be used for additional marketing in the markets identified in the research study as the most viable to increase overnight stays and not day-tripping?  If the funds should be used for other purposes, how should the funds be used for?  How should the $110,900 set aside CVB General Funds be spent?  How should the research that was not budgeted be paid?

Research Firm Selection and Methodology
The City’s contract marketing firm, TJA Advertising, was tasked by staff with obtaining the services of a research company that would be able to provide the research to answer the questions as directed. SMARInsights was selected to do the study. SMARInsights performs visitation studies for Visit California, Visit SLO CAL and through a cooperative agreement with Visit SLO CAL for Pismo Beach. SMARInsights was selected because they performed research for the Equity Diversity and Inclusivity study and to be expedient and consistent. As a result of direction from the City Council, staff directed TJA to perform this work, which was subcontracted to SMARInsights at a cost to TJA of $43,355, which necessitates an amendment to the contract with TJA (Attachment 1.A) for reimbursement. A Resolution (Attachment 1) has been prepared which, if adopted, will authorize the City Manager to execute contract Amendment #5.

SMARInsights analyzes mobile location data as a fast and cost-efficient approach to determine the demographic composition of visitors to Pismo Beach. Mobile location data is generated by mobile devices accessing applications that track the location of the

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device. This is often from apps that depend on location data, such as weather and maps.

The data represents a device that serves as a proxy for a person. The City does not collect personal data as part of this process.

In viewing mobile location data, the consultant utilized “geofenced” points of interest, such as the Pier, as a tool for defining the characteristics of the people who are in the destination during the time periods of interest.

The research study included three separate studies: the equity, diversity, and inclusivity (EDI) visitor profile, the attendee origin analysis, and the market analysis and visitor profile study. These three studies are provided as Attachments 2, 3, and 4.

Research Summary
The following list summarizes the key findings of the research:

 The Pismo Beach destination received high ratings for its visitor experience. The people who are visiting know and like what the area has to offer.  The attributes that were evaluated by SMARInsights included lodging, dining, attractions, events, shopping, and cleanliness. Each correlated with the likelihood to return to the area for a future visit. None of these aspects of the destination are currently barriers to repeat visitation, but strengthening them would move people from “somewhat” likely to “very” likely to return.
 Pismo Beach/Shell Beach has relatively high levels of familiarity among diverse travelers, especially in California markets.
 The activities and experiences described in the statements motivate similar levels of likelihood to visit Pismo Beach from California and the locations where air services fly into San Luis Obispo Airport (“fly markets”).  Fresno and Los Angeles contribute the largest share of visitors during every season. Fresno and Bakersfield contribute the largest share of weekend visitors, while Santa Barbara has the highest share of mid-week visitation. San Francisco also represents a strong market for overnight stays and delivers the highest level of visitor by income with them staying in the higher priced lodging properties.  Nine out of 10 visitors rated the trip experience to Pismo Beach as “very good” or “excellent,” and younger visitors gave the highest ratings.  Pismo Beach’s brand position as a “classic beach town” is aligned with the research that shows what motivates visitors to come to Pismo Beach (“motivators”). Pismo Beach ranked very high in all the study markets for fun, family-friendly, relaxing, small-town feel, and open spaces.  Pismo Beach is seen as a relaxing, beautiful, and fun beach destination and is differentiated as a family-friendly, affordable place with a small-town feel. The activity of wine tasting in the nearby region ranked with the Los Angeles and San Francisco markets most.
 Los Angeles travelers rate Pismo Beach higher than any other market.

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Top Take-aways from the SMARInsights Study

 Pismo Beach enjoys high levels of visitor satisfaction and strong potential among non-visitors.
 The brand is on target with what differentiates the destination from its competition and motivates travel: its small-town and family-friendly vibe.  Fresno and Bakersfield represent a fair amount of same-day visitors, especially during the summer months, but Fresno is also contributing the largest share of overnight visits.
 Marketing efforts should continue to be focused on Los Angeles, San Francisco and Santa Barbara/Thousand Oaks, Westlake Village, as these markets have high levels of awareness, strong destination ratings, and favorable potential for high- quality overnight visitation.
 Additional markets within California: Sacramento should be evaluated for media efficiencies. Fly markets of Seattle, Portland, and San Diego could offer new opportunities for overnight growth in Pismo Beach visitation and would encourage overnight stays instead of day tripping due to the distance of travel by car or air.

At the conclusion of the March 16, 2022 CVB/LBID Board meeting, the questions discussed during the joint CVB/LBID and City Council meeting were answered by the research.

 Where do overnight and same day visitors to Pismo Beach come from that are creating capacity issues during peak season?

July 2020
Daytrip Overnight
Fresno 36% 26%
Los Angeles 14% 18%
Bakersfield 18% 13%
San Francisco 7% 10%
Santa Barbara 9% 7%
Sacramento 4% 9%

 How can a tourist be motivated to stay longer?

People enjoy the beach, spending time with family, relaxing and dining. The main motivators of Pismo Beach visitors were escaping the stress and pressures of everyday life to relax and enjoy special moments with family and loved ones. The most likely markets to stay overnight were Fresno, Southern California, and San Francisco.

Also, new markets of Sacramento and “fly markets” of Seattle Portland, and San Diego were viewed as potential new markets to market due to their likelihood to stay in Pismo Beach.

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Focusing on all the things that can be done in Pismo Beach, as well as things that can be done in the rest of the county, provides the motivation for guest to stay longer. This would include the wineries and Hearst Castle, and could be accomplished by participating in cooperative marketing with Visit SLO CAL. Overnight guests would stay in Pismo Beach and explore all the things the county has to offer.

 What can overnight visitors be offered to give them a higher quality experience?

Pismo Beach received high ratings for its visitor experience. Attributes evaluated (lodging, meals, shopping, and cleanliness) are equally related with the likelihood to return to the area for a future visit. None of these aspects of Pismo Beach created barriers to repeat visitation. Strengthening them would move people from “somewhat” likely to return to “very” likely to return.

 How can same day visitors be motivated to stay overnight, and ideally for multiple nights?

The majority of same day visitors are within the two-hour drive market or are travelers who stop for the day on their way to another destination. During the high season, the lodging facilities are full at high rates. There will always be people who are within the two-hour drive radius who cannot afford to stay in Pismo Beach hotels, but want to come to Pismo Beach.

Marketing during the off-season will focus on staying for multiple nights, enjoying the many activities that Pismo Beach, as well as what the rest of the county has to offer.

Marketing will focus on spending time with family and loved ones, taking the opportunity to relax and enjoy the beach, wineries and local dining.

 How can visitors’ enjoyment of their visit be enhanced, e.g, through service additions or infrastructure improvements?

Pismo Beach rates highly for infrastructure and service. Currently these items do not create a barrier to guests visiting or their willingness to repeat. The size of Pismo Beach limits its ability to offer a large variety of facilities and services. This is the reason why educating visitors about other places to visit throughout the county (cross- visitation) is an important goal. Cross-visitation maps are being produced listing the time it takes to get to different parts of the county. It is important to let the overnight guest know that within 45 minutes they can reach all parts of San Luis Obispo County.

 Where are people coming from that stay multiple nights?

Research shows that travelers that come to Pismo Beach by air or who travel over 4- hour drive time by car have a propensity for multiple night visits. The high price of gas and air travel to drive or fly to Pismo Beach encourages overnight guests to stay multiple nights and to explore the entire area of San Luis Obispo County, including Pismo Beach. New fly markets like Seattle, Portland, and San Diego along with the 4- hour drive market of Sacramento are opportunity areas where additional marketing

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could be spent. These markets would require development to encourage multiple night stays that can travel year-round.

Recommendations by the CVB/LBID Advisory Board
On March 16, 2022, the above findings were presented to the CVB/LBID Advisory Board.

The Board discussed ideas for new budget and media allocations utilizing both the $350,000 accumulated LBID Fund available fund balance for marketing, and the CVB General Fund $110,900 available budget. The staff recommendations below are based on the input received from both the CVB/LBID Advisory Board at its March meeting and feedback received from the March Pismo Beach Hospitality Association (PBHA) meeting, as well as the above findings from the SMARInsights study.

CVB/LBID Advisory Board Recommendations for LBID Fund

Total additional spending $350,000 in FY 2022:

Budget $150,000 ($75,000 in Northern and $75,000 in Southern California): Increase spending in the drive markets of Northern California and Southern California and continue to develop new digital and advertising that resembles the publications’ editorial content but is paid for by us and intended to promote Pismo Beach, campaigns with proven top media outlets with targeted email, social media, and retargeting. Some of those media partners are Los Angeles Times, Trip Advisor, SF Gate, Bay Area News Group, Ventura Star, Google, Facebook and Instagram targeted ads. Continue to work with platforms such as AdTheorent. In addition, the City would take advantage of co-op programs from Visit SLO CAL and Visit California that are in these markets.

Budget $150,000 ($50,000 in each of three specified markets): Target new markets that offer the highest likelihood of visiting Pismo Beach soon and booking overnight stays, with emphasis on mid-week and off-season travel. These markets are Sacramento, Portland, and Seattle. The same media strategy would be carried out for these markets, with the addition of regional print and digital publications. The possibility of in-market opportunities would be explored as well, with the events and travel shows.

Budget $50,000 (To be utilized for research and to promote a future event): Explore the possibility of adding new events which would encourage longer-term stays, such as the recent ISA Para Surfing event. Possibilities for new events could include NCAA Volleyball tournaments, presently held in Alabama. Other ideas are a National Sandcastle building contest, bringing in participant from across the country to complete for a cash prize.

Tourism destinations offering similar experiences include San Diego, Galveston, and Treasure Island, Florida. Expand the present Jazz Festival with high-caliber artists and combine wine and food.

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CVB/LBID Advisory Board Recommendations for General Fund

Total additional General Fund spending $110,900 in FY 2022:

Suggested uses are for a new Pismo Beach Stewardship and Education Program. This program creates opportunities to practice stewardship in Pismo Beach. It involves both how visitors’ and residents' personal impact and involvement can sustain and improve the area for generations to come. This program will be available to all and can be accessed in person or virtually through the Pismo Beach CVB’s website and social media channels (e.g., podcasts, TikTok, Pinterest, Instagram, downloadable activities, etc.), which will communicate information generated by this program on regularly planned activities, events, volunteer opportunities, and news.

Stay Vacation campaign to run in San Luis Obispo and Santa Barbara Counties to promote special lodging packages to turn some day-trippers into overnight guests.

At its March 16, 2022 meeting, the CVB/LBID Advisory Board also asked the Tourism & Events Director to research shuttle service from Santa Maria to Pismo Beach to provide employee transportation to Pismo Beach. This research is ongoing. Contact has been made with the San Luis Obispo Council of Governments (SLOCOG), a potential partner agency. At the time of this report this request is still in process.

General Fund CVB Budget for Promotion of Tourism

Municipal Code Section 3.26.030 Authorized uses states the following:

The purpose of forming the PBLBID as a business improvement area under the Law is to provide revenue to defray the costs of services, activities and programs promoting the operators of lodging operations in the PBLBID. It is the intent of this chapter to provide a supplemental source of funding for the promotion of lodging operations in the PBLBID and it is not intended to supplant any other existing sources of revenues that may be used by the city for the promotion of tourism.

The General Fund CVB budget has remained flat for the past five years. The City made a commitment to the lodging community when the LBID was formed that the LBID would provide a supplemental source of funding and that the City would not supplant the City’s existing source of revenues that may be used by the City for the promotion of tourism.

Conclusion and Recommendation
Staff recommends that the City Council:

1. Receive a presentation from staff on the results of tourism research obtained as directed by the City Council;

2. Adopt a Resolution authorizing the City Manager to execute Amendment #5 to the TJA Advertising & Public Relations LBID Advertising Agreement by $43,355 and appropriating related budget adjustments to pay for the visitors' research study in Fiscal Year 2022;

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3. Consider the CVB/LBID Advisory Board recommendation to spend an additional $350,000 per year to increase the LBID annual marketing budgets starting in Fiscal Year 2023;

4. Consider the CVB/LBID Advisory Board recommendation to spend $110,900 per year from the CVB General Fund available marketing budget for advertising for stewardship and staycation marketing starting in Fiscal Year 2023.

FISCAL IMPACT:

The FY 2022 proposed adjustments are in the LBID Fund and include increasing the advertising and promotions account budget by $37,700 and the professional services account budget by $5,655, for a total increase of $43,355 to support the SMARInsights study. This increase is offset by deappropriating $43,355 in the contributions account.

The net fiscal impact to the LBID Fund is $0.

Depending on the Council’s direction with respect to items 3 and 4 of staff’s recommendation, staff will return to Council to appropriate any corresponding funding in the Fiscal Year 2023 marketing budgets. This will help determine the level of funding in the marketing contract for the term beginning in Fiscal Year 2023.

ALTERNATIVES:

1. Provide staff with other direction.

ATTACHMENTS:

1. Resolution

1.A. Exhibit A to Resolution: Amendment #5 to TJA LBID Advertising Agreement

2. EDI Study Results

3. Origin Study Results

4. Market Analysis & Visitor Profile Results
Submitted by: Meeting Date: April 5, 2022
Gordon Jackson, Director of Tourism and Events
City Manager Approval:

12.B-8Council Agenda 4-5-2022

RESOLUTION NO. R-2022-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #5

TO THE TJA ADVERTISING & PUBLIC RELATIONS LBID ADVERTISING AGREEMENT IN THE AMOUNT OF $43,355 AND APPROPRIATING RELATED

BUDGET ADJUSTMENTS TO PAY FOR THE VISITORS RESEARCH STUDY IN FISCAL YEAR 2022

WHEREAS, on August 17, 2021, the City Council directed staff to schedule a joint meeting of the CVB/LBID Advisory Board and City Council to review and evaluate the use of the City’s CVB/LBID funding; and

WHEREAS, on September 29, 2021, a special Joint Meeting of the CVB/LBID Board and City Council was held, at which time the City Council directed staff to obtain a visitor research study to be returned to the CVB/LBID Board, for the Board’s recommendation to the Council on the study’s findings; and

WHEREAS, staff tasked TJA Advertising with performing the visitor research study; for which TJA Advertising subcontracted with SMARInsights at a cost to TJA of $43,355; and

WHEREAS, a contract amendment with TJA Advertising is now necessary in order to reimburse TJA Advertising for the cost of the SMARInsights study.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager execute Amendment #5 (Exhibit A) to the agreement with TJA Advertising and Public Relations for LBID-funded advertising, including an increase of $43,355 in Fiscal Year 2022 to pay for the visitor research study.

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $37,700 in the LBID Fund advertising and promotions account budget and $5,655 in the professional services account budget, and deappropriates $43,355 in the LBID Fund contributions account in FY 2022.

UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of April 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:

________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Attachment 1

12.B-9Council Agenda 4-5-2022

AMENDMENT # 5
to the
JULY 1, 2017 AGREEMENT BETWEEN THE CITY OF PISMO BEACH

AND TJA ADVERTISING & PUBLIC RELATIONS

FOR PROFESSIONAL SERVICES FOR ADVERTISING AND PROMOTION FOR THE

PISMO BEACH LODGING BUSINESS IMPROVEMENT DISTRICT

Pursuant to the July 1, 2017 Agreement for Professional Services for Advertising and Promotion For the Pismo Beach Lodging Business Improvement District (“Agreement”) between the City of Pismo Beach, hereinafter referred to as “City,” and TJA Advertising & Public Relations, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:

1. Compensation for the additional services shall not exceed the amount of one million two hundred seventy-two thousand nine hundred fifty-five dollars ($1,272,955), without prior written approval of the City.

2. The revised fee under the July 1, 2017 contract, accounting for this addendum, is four million eight hundred thirty thousand nine hundred five dollars ($4,830,905).

3. Section III. Compensation of the July 1, 2017 agreement is revised to read as follows:

III. COMPENSATION

A. VENDOR’s Fee

For services rendered pursuant to this AGREEMENT, VENDOR will be paid in accordance with the Compensation Schedule attached hereto as Exhibit B. However, in no event will the total amount of money paid the VENDOR, for services initially contemplated by this AGREEMENT, exceed the sum of four million eight hundred thirty thousand nine hundred five dollars ($4,830,905) unless otherwise first approved in writing by CITY. Should this AGREEMENT be extended pursuant to Section II, the VENDOR’s fee may be adjusted upon the written agreement of the parties.

1. CITY shall pay VENDOR a fee for the services as follows:

FY 2017-18
During the period July 1, 2017 to June 30, 2018, CITY shall pay VENDOR a total fee not to exceed $72,975.00, which fee shall be based on fifteen percent (15%) of the City’s approved Lodging Business Improvement District (LBID) media placement expense budget of four hundred eighty-six thousand five hundred dollars ($486,500.00).

During the period July 1, 2017 to June 30, 2018, the approved media placement expense budget ($486,500.00) shall be paid to VENDOR on an expense reimbursement basis for media purchases and placement upon submission of invoices and supporting documentation as deemed necessary by CITY. In the event the actual media expenses incurred are less than the previously approved budget, CITY shall pay VENDOR the actually incurred media expense and a fee equal to 15% of the actually incurred advertising expense, which may result in a total amount less than seventy-two thousand nine hundred seventy-five dollars ($72,975.00).

Attachment 1.A

12.B-10Council Agenda 4-5-2022

FY 2018-19
During the period July 1, 2018 to June 30, 2019, CITY shall pay VENDOR a total fee not to exceed $74,767, which fee shall be based on fifteen percent (15%) of the City’s approved Lodging Business Improvement District (LBID) media placement expense budget of $498,445.

During the period July 1, 2018 to June 30, 2019, the approved media placement expense budget ($498,445) shall be paid to VENDOR on an expense reimbursement basis for media purchases and placement upon submission of invoices and supporting documentation as deemed necessary by CITY. In the event the actual media expenses incurred are less than the previously approved budget, CITY shall pay VENDOR the actually incurred media expense and a fee equal to 15% of the actually incurred advertising expense, which may result in a total amount less than $74,767.

FY 2019-20
During the period July 1, 2019 to June 30, 2020, CITY shall pay VENDOR a total fee not to exceed $83,850, which fee shall be based on fifteen percent (15%) of the City’s approved Lodging Business Improvement District (LBID) media placement expense budget of $559,000.

During the period July 1, 2019 to June 30, 2020, the approved media placement expense budget ($559,000) shall be paid to VENDOR on an expense reimbursement basis for media purchases and placement upon submission of invoices and supporting documentation as deemed necessary by CITY. In the event the actual media expenses incurred are less than the previously approved budget, CITY shall pay VENDOR the actually incurred media expense and a fee equal to 15% of the actually incurred advertising expense, which may result in a total amount less than $83,850.

July 1, 2020 – September 30, 2020
During the period July 1, 2020 to September 30, 2020, CITY shall pay VENDOR a total fee not to exceed $2,220.00, which fee shall be based on fifteen percent (15%) of the City’s approved Lodging Business Improvement District (LBID) media placement expense budget of $14,800.

During the period July 1, 2020 to September 30, 2020, the approved media placement expense budget ($14,800.00) shall be paid to VENDOR on an expense reimbursement basis for media purchases and placement upon submission of invoices and supporting documentation as deemed necessary by CITY. In the event the actual media expenses incurred are less than the previously approved budget, CITY shall pay VENDOR the actually incurred media expense and a fee equal to 15% of the actually incurred advertising expense, which may result in a total amount less than $2,220.00.

October 1,2020 – June 30, 2021
During the period October 1, 2020 to June 30, 2021, CITY shall pay VENDOR a total fee not to exceed $45,658.00, which fee shall be based on fifteen percent (15%) of the City’s approved Lodging Business Improvement District (LBID) media placement expense budget of $304,390.

Attachment 1.A

12.B-11Council Agenda 4-5-2022

During the period October 1, 2020 to June 30, 20210, the approved media placement expense budget ($304,390.00) shall be paid to VENDOR on an expense reimbursement basis for media purchases and placement upon submission of invoices and supporting documentation as deemed necessary by CITY. In the event the actual media expenses incurred are less than the previously approved budget, CITY shall pay VENDOR the actually incurred media expense and a fee equal to 15% of the actually incurred advertising expense, which may result in a total amount less than $45,658.00.

FY 2021-22
During the period July 1, 2021 to June 30, 2022, CITY shall pay VENDOR a total fee not to exceed $114,855.00, which fee shall be based on fifteen percent (15%) of the City’s approved Lodging Business Improvement District (LBID) media placement expense budget of seven hundred sixty-five thousand seven hundred dollars ($765,700.00). The specific authorized expenditures within the media expense budget are set forth in Exhibit B, attached hereto, and incorporated herein by this reference.

During the period July 1, 2021 to June 30, 2022, the approved media placement expense budget ($765,700.00) shall be paid to VENDOR on an expense reimbursement basis for media purchases and placement upon submission of invoices and supporting documentation as deemed necessary by CITY. In the event the actual media expenses incurred are less than the previously approved budget, CITY shall pay VENDOR the actually incurred media expense and a fee equal to 15% of the actually incurred advertising expense, which may result in a total amount less than one hundred fourteen thousand eight hundred fifty-five dollars ($114,855.00)

2. In addition to the fee payable under subsection (1), CITY shall also pay VENDOR as follows:

FY 2017-18
During the period July 1, 2017 to June 30, 2018, CITY shall pay VENDOR a fee not to exceed $285,400 for services set forth in Exhibit C: CITY shall pay VENDOR this fee at the rate of $95.00 per hour for the services set forth in Exhibit C, allocated as follows:

i. $20,000 for artwork and production services
ii. $27,000 for Cooperative Media County TMD, Visit California iii. $14,400 for Jackrabbit website maintenance
iv. $45,000 for public relations services
v. $50,000 for social media development services
vi. $45,000 for video production services
vii. $84,000 for website development / maintenance services

In no instance shall CITY be obligated to pay VENDOR a total fee under this subsection and subsection (a) greater than two hundred eighty-five thousand four hundred dollars ($285,400) per year for the services set forth in Exhibit C.

FY 2018-19
During the period July 1, 2018 to June 30, 2019, CITY shall pay VENDOR a fee not to exceed $395,700.00 for services set forth in Exhibit C: CITY shall pay VENDOR this fee at the rate of $95.00 per hour for the services set forth in Exhibit C, allocated as follows:

Attachment 1.A

12.B-12Council Agenda 4-5-2022

i. $20,000 for artwork and production services
ii. $25,000 for video impressions and #mypismobeach
iii. $14,400 for Jackrabbit website maintenance
iv. $45,000 for public relations services
v. $50,000 for social media development services
vi. $45,000 for video production services
vii. $172,300 for Simple View setup, design, & production viii. $24,000 for Simple View/Pac Leisure maintenance services

In no instance shall CITY be obligated to pay VENDOR a total fee under this subsection and subsection (a) greater than $395,700 for the services set forth in Exhibit C.

FY 2019-20
During the period July 1, 2019 to June 30, 2020, CITY shall pay VENDOR a fee not to exceed $325,900 for services set forth in Exhibit C: CITY shall pay VENDOR this fee at the rate of $95.00 per hour for the services set forth in Exhibit C, allocated as follows:

i. $23,500 for artwork and production services
ii. $14,400 for Jackrabbit website maintenance
iii. $45,000 for public relations services
iv. $60,000 for social media development services
v. $25,000 for #mypismobeach (video impressions)
vi. $50,000 for video production services
vii. $84,000 for Simple View setup, design, & production viii. $24,000 for Simple View/Pac Leisure maintenance services

In no instance shall CITY be obligated to pay VENDOR a total fee under this subsection and subsection (a) greater than $325,900 for the services set forth in Exhibit C.

July 1, 2020 – September 30, 2020
During the period July 1, 2020 to September 30, 2020, CITY shall pay VENDOR a fee not to exceed $31,300 for services set forth in Exhibit C. CITY shall pay VENDOR this fee at the rate of $95.00 per hour for the services set forth in Exhibit C, allocated as follows:

1. $2,000 for artwork and production services

2. $1,300 for Jackrabbit website maintenance

3. $4,500 for public relations services

4. $6,000 for social media development services

5. $8,000 for website content, event design, photography

6. $7,500 for Simple View setup, design, & production

7. $2,000 for Simple View/Pac Leisure maintenance services

In no instance shall CITY be obligated to pay VENDOR a total fee under this subsection and subsection (a) greater than $31,300 for the services set forth in Exhibit C.

Attachment 1.A

12.B-13Council Agenda 4-5-2022

October 1, 2020 – June 30, 2021
During the period October 1, 2020 to June 30, 2021, CITY shall pay VENDOR a fee not to exceed $420,400 for services set forth in Exhibit C. CITY shall pay VENDOR this fee at the rate of $95.00 per hour for the services set forth in Exhibit C, allocated as follows:

1. $70,000 for Facebook, Instagram and You Tube ads

2. $14,400 for Jackrabbit website maintenance

3. $70,000 for public relations services

4. $30,000 for video for events and social media ads

5. $80,000 for social media development services

6. $28,000 for artwork and production services

7. $60,000 for website content, event design, photography

8. $44,000 for Simple View setup, design, & production

9. $24,000 for Simple View/Pac Leisure maintenance services

July 1, 2021 – June 30, 2022
During the period July 1, 2021 to June 30, 2022, CITY shall pay VENDOR a fee not to exceed $392,400 for services set forth in Exhibit C. CITY shall pay VENDOR this fee at the rate of $95.00 per hour for the services set forth in Exhibit C, allocated as follows:

1. $25,000 for Artwork and TV Production Yearly

2. $20,000 for Los Angeles Magazine Food and Wine Show

3. $75,000 for Video for Website & YouTube

4. $14,400 for Jackrabbit

5. $70,000 for Public Relations

6. $80,000 for social media development

7. $84,000 for website maintenance and development

8. $24,000 for Simple View/Pac Leisure maintenance services

In no instance shall CITY be obligated to pay VENDOR a total fee under this subsection and subsection (a) greater than $392,400 for the services set forth in Exhibit C.

3. The total not-to-exceed contract amount over the term of the contract is $4,830,905, consisting of $2,628,835 for media advertising, $1,851,100 fee for the $95/hour services, and $394,325 based on 15% of the City’s LBID media expense budget.

4. VENDOR may use sub-contractors in carrying out some of these services and a portion of the above costs will consist not only of time, but hard costs, expenses and payments to subcontractors associated with these efforts.

These costs are included in the amounts stated above and VENDOR shall not be entitled to additional compensation due to the use of sub-contractors. These services shall be approved first by the CVB Executive Director prior to any work by VENDOR being performed.

B. Schedule of Payment

VENDOR will submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as Attachment 1.A

12.B-14Council Agenda 4-5-2022

practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the CITY disputes any of VENDOR’s fees it shall give written notice to VENDOR within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this AGREEMENT shall be made within forty-five (45) days of receipt of an invoice therefor.

6. All other provisions of the Agreement for Professional Services for Advertising and Promotion For the Pismo Beach Lodging Business Improvement District between City and Vendor shall remain in full force and effect.

CITY:

City of Pismo Beach, a Municipal Corporation