RESOLUTION NO. R-2022-023
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 SMARlnsights 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 SMARlnsights study. `01=0 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 Blake, seconded by Council Member Newton, 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: 5
NOES: 0
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Appr
,q�j.
Ed sage, Mayor
Blake, Newton, Guthrie, F
PAGE 1 OF 7
R-2022-023
Exhibit A
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:
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).
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 ®„a 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.
CITY shall pay VENDOR a fee for the services as follows:
IWill P711IVAFIN
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).
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R-2022-023
Exhibit A
FY 2018-19
During the period July 1, 2018 to June 30, 2019, CITY shall pay VENDOR a total fee 4W* 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.
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R-2022-023
Exhibit A
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:
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R-2022-023
Exhibit A
160W
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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.
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R-2022-023
Exhibit A
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 ®'r 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 PAGE 6OF7
R-2022-023
Exhibit A
R
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.
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
Signed:
Name: Gordon Jackson
Title: Director of Tourism and Events
Dated:
Signed:
Name: James R. Lewis
Title: City Manager
Dated:
ATTEST:
400
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
Attachment: Compensation Schedule
VENDOR:
TJA Advertising and Public Relations
Signed:
Name:
Title:
Dated:
Address for giving notice:
(if changed from prior agreement)
Email address for official communications:
(if changed from prior agreement)
Vendor Representative:
(if changed from prior agreement)
Name/Title:
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R-2022-023