Tourism Marketing Agreement
Adopt a Resolution authorizing the City Manager to enter into agreements with TJA Advertising & Public Relations, Inc. for the three-year period of July 1, 2022, through June 30, 2025, for the provision of promotion and marketing service for the City of Pismo Beach Conference & Visitors Bureau and the Pismo Beach Lodging Business Improvement District (LBID).
Background
Current contract ends
June 30, 2022
Background
•A Request for Proposals was created along with a scoring criteria sheet. •February 25, 2022, the RFP was sent to a total of 14 agencies as well as shared on Travel Vertical’s website. •March 25, 2022, Four proposals were submitted to the Management Services Department. •April 7, 2022, the CVB Marketing Selection Subcommittee met to review and score proposals.
Background
•April 13, 2022, top two advertising agencies were invited to present their proposals.
•April 20, 2022, staff presented the recommendation from the Marketing Selection Committee. The CVB/LBID
Advisory Board voted unanimously to recommend TJA
Advertising Inc.
•Today, staff is presenting the CVB/LBID Advisory Board unanimous recommendation.
Recommended Agency
TJA Advertising & Public
Relations
New Marketing Improvements
•A state-of-the-art website as the principal fulfillment tool for all marketing. •A branding graphic design refresh.
•Production of new, short videos for social media posting. •Stewardship and Education program.
•Stay Vacation (“staycation”) campaign with the goal of turning same-day visitors into overnight stays. •Event promotion marketing to attract off season events creating multiple night midweek, offseason overnight stays.
Fiscal Impact
LBID Fund -Contract Amount
•Lodging Business Improvement District (LBID) Fund Agreement •FY 2023 agreement amount represents 5% greater than FY 2022 amount + $100,000
•$100,000 is part of $350K Council direction on April 5, 2022 to spend LBID funds for marketing
LBID Fund FY 2020 FY 2021 (5%)*FY 2022 (5%)FY 2023 (5%) FY 2023
Proposed
LBID Fund TJA Agreement 968,912$ 1,017,358$ 1,068,225$ 1,121,637$ Add $100,000 in FY 2023 100,000
968,912$ 1,017,358$ 1,068,225$ 1,221,637$ 1,222,000$ * FY 2021 is for calculation purposes only and does not represent the actual TJA agreement amount.
LBID Fund –Agreement and Budget
•Lodging Business Improvement District (LBID) Fund Agreement •LBID Fund FY 2023 Budget Adjustment
LBID Fund
FY 2023
Adopted
Budget
FY 2023
Proposed
Budget
FY 2023 Budget
Adjustment
Advertising & Promotion $ 884,900 $ 1,109,050 $ 224,150 Professional Services 83,850 112,950 29,100
Total LBID Fund $ 968,750 $ 1,222,000 $ 253,250
LBID Fund FY 2023 FY 2024 FY 2025 3-Year Total
Hourly Rate $ 469,000 $ 492,450 $ 517,073 $ 1,478,523 Media 640,050 672,052 705,654 2,017,756
15% Commissions 112,950 118,598 124,528 356,076
Total LBID Fund $ 1,222,000 $ 1,283,100 $ 1,347,255 $ 3,852,355
General Fund -Contract Amount
•$222,954 per year in past 5 years.
•FY 2022 Amount reduced by $110,900 for a total $112,054 •Council direction on April 5, 2022 to support a Pismo Beach Stewardship and Education program, Stay Vacation campaign, and potential support of research for an employee shuttle service •FY 2023 through FY 2025 is $223,000 per year
General Fund –Agreement and Budget
•General Fund Agreement
•General Fund FY 2023 Budget Adjustment
General Fund FY 2023 FY 2024 FY 2025 3-Year Total
Hourly Rate $ 103,000 $ 103,000 $ 103,000 $ 309,000 Media 102,000 102,000 102,000 306,000
15% Commissions 18,000 18,000 18,000 54,000
Total General Fund $ 223,000 $ 223,000 $ 223,000 $ 669,000 General Fund
FY 2023
Adopted
Budget
FY 2023
Proposed
Budget
FY 2023 Budget
Adjustment
Advertising & Promotion $ 201,047 $ 205,000 $ 3,953 Professional Services 21,907 18,000 (3,907)
Total General Fund $ 222,954 $ 223,000 $ 46
Recommendation
Adopt a Resolution authorizing the City Manager to enter into agreements with TJA Advertising & Public Relations, Inc. for the three- year period of July 1, 2022, through June 30, 2025, for the provision of promotion and marketing service for the City of Pismo Beach Conference & Visitors Bureau and the Pismo Beach Lodging Business Improvement District (LBID).
QUESTIONS?