PISMO BEACH COUNCIL AGENDA REPORT

Transcription

1 PISMO BEACH COUNCIL AGENDA REPORT SUBJECT/TITLE: AUTHORIZATION TO ENTER INTO AGREEMENT WITH VISIT SAN LUIS OBISPO COUNTY. RECOMMENDATION: Approve by resolution: 1. Agreement with Visit San Luis Obispo County in the amount of $137,161 to provide Regional Marketing Services for FY for the City of Pismo Beach and all Pismo Beach lodging properties. 2. The expense of $97,161 from the FY LBID budget, and $40,000 from the FY CVB budget to fund. EXECUTIVE SUMMARY: The existing agreement to provide regional marketing services with Visit San Luis Obispo County (Visit SLOC), formerly the San Luis Obispo County Visitors & Conference Bureau (SLO County VCB) expires on June 30, At the March 20, 2013, meeting, the Pismo Beach Conference & Visitors Bureau (PB CVB) / Pismo Beach Lodging Business Improvement District (PB LBID) Board unanimously recommended full funding of Visit SLOC at the requested amount of $137,161, with $40,000 of the total coming from the CVB budget and the balance, $97,161 coming from the LBID budget. This year, Visit SLOC again used a countywide funding formula based on 0.002% of FY Taxable Rents, which resulted in a contract amount of $137,161. The primary obligations of Visit SLOC under the agreement are to: provide lodging statistics for all members; include all Pismo Beach lodging properties including RV Parks and vacation rentals, with no priority for lodging listings; provide a list of lodging benefits under Proposition 26; ask SAVOR attendees what city they re staying in; allow Pismo Beach area wineries the first right of refusal to participate in the SAVOR dinner in Pismo Beach; and consideration of a banner rotating between the BIDs. The City of Pismo Beach can look forward to additional promotional opportunities, such as the Sunset SAVOR the Central Coast main event, Sunset on the Sand in Pismo Beach dinner event, several Familiarization Trips, trade show leads, travel articles and press releases from Visit SLOC efforts. The City will continue to closely monitor the work of Visit SLOC to ensure benefits to the City s lodging businesses. Additionally, the City will work with Visit SLOC towards refining the dues structure for future funding requests from Visit SLOC. Page 1

2 FISCAL IMPACT: Proposed Agreement of $137,161 for FY , $97,161 allocated from the PB LBID budget and $40,000 allocated from the PB CVB budget. OPTIONS: 1. Authorize the Visit SLO County Agreement 2. Provide Staff with other recommended direction ATTACHMENTS: 1. Resolution 2. Visit SLO County Regional Marketing Services Agreement FY Visit SLO County Funding Request Letter 4. PB CVB / LBID Board Meeting Minutes of March 20, 2013 Prepared by: Suzen Brasile, Executive Director Meeting Date: June 18, 2013 City Manager Approval: Page 2

3 RESOLUTION NO. R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH ALLOCATING $97,161 FROM THE FY LBID BUDGET AND $40,000 FROM THE FY CVB BUDGET TO FUND AND APPROVE AN AGREEMENT WITH VISIT SAN LUIS OBISPO COUNTY FOR REGIONAL MARKETING SERVICES. WHEREAS, Visit San Luis Obispo County is promoting the City of Pismo Beach as part of a countywide membership; and WHEREAS, the City of Pismo Beach can look forward to additional promotional opportunities from the partnership with Visit San Luis Obispo County; and WHEREAS, Visit San Luis Obispo County requested $137,161 from the City of Pismo Beach for regional marketing services during the timeframe of July 1, 2013 through June 30, 2014; and WHEREAS, the Pismo Beach CVB / LBID Advisory Board unanimously recommended full funding of Visit San Luis Obispo County at the requested amount of $137,161, based on the countywide funding formula of 0.002% of FY Taxable Rents. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes an agreement for regional marketing services with Visit San Luis Obispo County in the amount of $137,161, with $97,161 to be allocated from the FY LBID Budget and $40,000 from the FY CVB Budget, and directs the city manager to execute the agreement on behalf of the City 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 day of 2013, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Council Members: Council Members: Council Members: Council Members: Approved: Attest: Shelly Higginbotham Mayor Elaina Cano, CMC City Clerk Page 3

4 AGREEMENT TO PROVIDE REGIONAL MARKETING SERVICES THIS AGREEMENT is made and entered into with the City of Pismo Beach on this day of by and between the CITY OF PISMO BEACH, a municipal corporation, hereinafter referred to as City, and VISIT SAN LUIS OBISPO COUNTY, a nonprofit corporation, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, the Pismo Beach Conference & Visitors Bureau (PB CVB) and Pismo Beach Lodging Business Improvement District (PB LBID) Board recommended that the City contract with the Contractor to promote San Luis Obispo County and the City s advantages as a destination for tourists seeking to visit this region of California; and WHEREAS, the Contractor is qualified for and is equipped to carry out such activities on behalf of the City and its Pismo Beach Lodging BID, 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 July 1, 2013 through June 30, REPRESENTATION FOR PROGRAM COORDINATION City. The City Manager or his designated representative shall be the Project Manager representing the City for all purposes under this agreement Contractor. Contractor shall assign a single Project Manager to have overall responsibility for the progress and execution of this agreement for the Contractor. Stacie Jacob, Executive Director of Contractor, is hereby designated as the Project Manager. 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. 3. CITY'S OBLIGATIONS. In consideration of Contractor providing services as specified in Exhibit A to this Agreement. The City agrees to pay to Contractor one payment, in the amount of not to exceed One Hundred Thirty-Seven Thousand, One Hundred Sixty-One Dollars ($137,161). p. 1 Page 4

5 4. CONTRACTOR'S OBLIGATIONS Exhibit A - Scope of Work. For and in consideration of the payments and agreements to be made and performed by the City, the Contractor agrees to provide services as described in Exhibit A attached hereto and incorporated into this Agreement Tourism Marketing Goals. Contractor agrees to assist the City in achieving the major objectives set forth in the Contractor Marketing Plan, with special emphasis on fulfilling the PB CVB/LBID Board s prioritized items provided to the Contractor as follows: 1. Membership inclusion of all Pismo Beach lodging properties, including RV Parks and vacation rentals, with no priority for lodging listings 2. Providing monthly lodging statistics and website reports showing all referrals to Pismo Beach lodging entities and providing a list of benefits specific to lodging businesses within the City of Pismo Beach 3. Asking Sunset SAVOR the Central Coast attendees what city they re staying in and allowing Pismo Beach area wineries the first right of refusal to participate in the Sunset on the Sand in Pismo Beach dinner 4. Focus on a short term lodging marketing plan, with attention to the drive markets (i.e. markets within reasonable driving distance from Pismo Beach) 5. The Contractor will act as an umbrella for information and a referral portal for City in all areas of lodging marketing, including website 6. Offering City cooperative advertising opportunities with return on investment (ROI) statistics 7. Arranging familiarization trips (FAMs) held during the off-season (October-May) and establishment of a FAM Criteria Form 8. Distribute quality sales leads to City 9. Provide City a snapshot of monthly information generated by Contractor from its activities 10. Information on Communication Strategy 11. Develop a sustainable funding model for Contractor for future years 12. Consideration of a website banner rotating between the BIDs 13. Support the San Luis Obispo County Regional Airport & Parks In recognition of the Proposition 26 funding restrictions for a significant portion of the funds payable to Contractor under this agreement, Contractor will prioritize its Marketing Plan to maximize on the greatest areas of impact for the lodging industry within the City of Pismo Beach. p. 2 Page 5

6 4.3. Coordination of Efforts with other Contractors. In addition to Contractor, the City has service agreements for its tourism promotions efforts with TJA Advertising & Public Relations for tourism marketing, electronic information services and public relations. Contractor acknowledges the potential for duplication of efforts as a result of these agreements with the City and agrees to coordinate efforts and collaborate with TJA Advertising & Public Relations as directed by the PB CVB / LBID Board. Contractor s website and other marketing efforts shall focus on directing lodging business to the City visitor information website at 5. GENERAL TERMS AND CONDITIONS. Contractor shall meet all general terms and conditions as specified in Exhibit B. 6. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Exhibit C. 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. 7. 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 or the City Manager up to the authority granted to the City Manager by Council. 8. 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. 9. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: p. 3 Page 6

7 City Contractor City of Pismo Beach Attn: Elaina Cano, City Clerk 760 Mattie Road Pismo Beach, CA Visit San Luis Obispo County Attn: Stacie Jacob, Executive Director 811 El Capitan Way, Suite 200 San Luis Obispo, CA 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. 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. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF PISMO BEACH, A Municipal Corporation Elaina Cano, City Clerk By James Lewis, City Manager APPROVED AS TO FORM: CONTRACTOR Dave Fleishman, City Attorney By Stacie Jacob, Executive Director Visit San Luis Obispo County p. 4 Page 7

8 EXHIBIT A SCOPE OF WORK FOR REGIONAL MARKETING SERVICES 1. Create and implement promotional campaigns in coordination with the Marketing Goals and Objectives. 2. When promoting the City of Pismo Beach utilize the City and PB CVB / LBID tourism brand, Pismo Beach, Classic California or Pismo Beach, Your Wine & Waves Destination. 3. Provide visitor information that suits the needs of conference attendees and potential visitors in order to promote the variety of activities in Pismo Beach. 4. Create and implement a coordinated marketing campaign for the San Luis Obispo County Region (see comment under Additional Stipulations) 4.1. Coordinate efforts with the City s Advertising Agency to pursue mutually beneficial opportunities and to avoid overlapping marketing efforts Market the region as a destination with the Contractor as the umbrella Develop appropriate materials to accomplish marketing campaign including website, web links, monthly contests, e-newsletter, magazine advertisements, etc. benefiting the City Include the City in all special events and promotions as outlined in the Contractor s marketing plan (i.e. Restaurant Month, Wine Month, etc.) Include the City in all and every PR release, FAM Tours, special events, tradeshows, etc. as further defined in Contractor s marketing plan for (see comment under Additional Stipulations) Produce print and electronic visitors guides and pursue a visual depiction encompassing all the cities and county attractions on the front page Attend various statewide and local media oriented trade shows. Attend several leisure/group meeting trade shows representing the City as appropriate. 5. Maintain electronic information services through a visitor-oriented website and other electronic media Create a portal website that immediately guides people looking for Pismo Beach to Respond to all tourism information requests including telephone calls and s Serve as contact for potential visitors as well as a referral agency to local resources Continue to add City special events to Contractor s website and highlight the cultural offerings during the various months All electronic newsletters and communications will include City events, activities, and amenities. p. 5 Page 8

9 6. Develop group business and conferences Focus efforts to increase conference, retreat, government, and travel industry business through targeted sales efforts emphasizing mid-week and off-season business Represent the City and region by attending major consumer travel and sales shows that directly impact the target market Work with individual prospects to coordinate conferences. 7. Serve as the film commission for the County of San Luis Obispo. Serve as the liaison for filming activities in the region and in the City. Assist in the coordination of film activities in the City in compliance with City ordinances pertaining to filming. 8. Provide written reports on activities monthly to the City via Board representative, Suzen Brasile. At a minimum the reports shall include: 8.1. Summary of activities & achievements relating to the work scope as outlined in Exhibit A Summary of Contractor s monthly website information, statistics, and links to Summary of public relations efforts with travel writers, editors, radio journalists and television producers including press releases, contacts and media placements. Discussion of any travel writer trips hosted or planned Summary of advertising placements, including actual leads, as well as impressions Summary on Meeting/Group Sales and Film Commission achievements A discussion of City specific public relations and advertising efforts The Contractor s year-to-date profit & loss statement including a year over year comparison. 9. Once a quarter, present the City s CVB / LBID Board with a detailed oral report highlighting achievements as compared to the work scope and elaborate on upcoming plans and events. Work with Board representative, Suzen Brasile to schedule. Include the presentation of promotional materials as outlined in the Contractor s marketing plan. Additional Stipulations: 1. The Contractor s website shall be designed to be a true portal linking to each individual jurisdiction paying into Visit SLOC. 2. Consistent with the Proposition 26 funding restrictions for a significant portion of the funds payable to Contractor under this agreement, Contractor will prioritize its Marketing Plan to maximize on the greatest areas of impact for the lodging industry within the City of Pismo Beach. 3. Sunset SAVOR the Central Coast shall be maintained in the nature of a selfsustaining public-sector enterprise fund. Contractor s marketing efforts on behalf of City shall not be reduced, should a financial loss occur for the SAVOR event. p. 6 Page 9

10 4. Should Contractor wish to extend this Agreement, such request shall be submitted to City in March Any extension request will be dealt with according to regular Board proceedings and the pre-approved budget schedule as set by the City s Finance Department with adequate time allowed for the City CVB / LBID Board to hear the request in writing and in person. p. 7 Page 10

11 EXHIBIT B GENERAL TERMS AND CONDITIONS 1. Business License & Tax. Contractor must have a valid City of San Luis Obispo business license and tax certificate prior to execution of the contract. 2. Ability to Perform. 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. Contractor shall keep itself fully informed of, and shall observe and comply with, all applicable state and federal laws and County and City of Pismo Beach 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 Contractor is required to pay. 5. Permits and Licenses. Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 6. Safety Provisions. 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 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. Preservation of City Property. Contractor shall provide, and install, suitable safeguards approved by the City, to protect City property from injury or damage. If City property is injured or damaged as a result of Contractor's operations, it shall be replaced or restored at Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 9. Immigration Act of 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. p. 8 Page 11

12 10. Contractor Non-Discrimination. In the performance of this work, Contractor agrees that it will not engage in, nor permit such sub-contractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, religion or any other protected classification of such persons. 11. Work Delays. Should Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. 12. 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 Contractor (Net 30). 13. Inspection. Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of 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. 14. 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. 15. Interests of Contractor. 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. Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. 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, Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 16. Hold Harmless and Indemnification. 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 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 Contractor, and its agents, officers or employees, in p. 9 Page 12

13 performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that 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. 17. Contract Assignment. 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. 18. Termination. If, during the term of the contract, the City determines that Contractor is not faithfully abiding by any term or condition contained herein, the City may notify Contractor in writing of such defect or failure to perform; which notice must give Contractor a thirty (30) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If Contractor has not performed the work or cured the deficiency within the thirty 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 Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract. In said event, 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. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall work scope. 19. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of 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. 20. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by Contractor as part of the work or services under these specifications shall be the property of City, and shall not be made available to any individual or organization by Contractor without the prior written approval of the City. p. 10 Page 13

14 21. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what Contractor is required to furnish in limited quantities as part of the work or services under these specifications, Contractor shall provide such additional copies as are requested, and City shall compensate Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 22. Attendance at Meetings and Hearings. As part of the work scope, and included in the contract price, is attendance by the Contractor to public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing work scope tasks. p. 11 Page 14

15 EXHIBIT C INSURANCE Insurance. 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 Contractor, its agents, representatives, employees, or sub-contractors. a. Minimum scope of insurance. Coverage shall be at least as broad as: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Errors and Omissions Liability insurance as appropriate to Contractor s profession. b. Minimum limits of insurance. Contractor shall maintain limits no less than: 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. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Errors and Omissions Liability: $1,000,000 per occurrence. c. Deductibles and self-insured retentions. Any deductibles or selfinsured 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 Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other insurance provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: Agenda Item: p. 6.L 12 Page 15

16 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 Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. For any claims related to this project, 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 Contractor's insurance and shall not contribute with it. 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. 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. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled 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. In the event the insurance policy cannot be amended to provide notice to City, Contractor shall provide to City a copy of any such notice received by Contractor, within twenty-four (24) hours after Contractor receives the notice. e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII. f. Verification of coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. 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. Agenda Item: p. 6.L 13 Page 16

17 February 20, 2013 City of Pismo Beach Attn: Suzen Brasile 760 Mattie Road Pismo Beach, CA Dear Ms. Brasile, Visit San Luis Obispo County (Visit SLOC), the new name of your countywide tourismmarketing agency continues its work to achieve results for its partner destinations and individual hospitality members. Our focus on key practice areas -- county brand management, website/digital marketing, public relations, group sales and film commission to name a few -- is in cooperation with you, our partners, to position San Luis Obispo County as the choice destination for leisure, business and group travel. As we are mid-way through our calendar year to produce the results we set to achieve, we realize you are evaluating your budgets for FY: This letter is a formal request for your continued financial support. The Visit San Luis Obispo County Board of Directors has again adopted a funding model based on taxable rents. We are requesting 2/10 of a percent (.002) of each area s taxable rents. The definition of taxable rents is the area s cumulative revenue subject to transient tax (TOT). This model is a fair and equitable plan for all municipalities involved, which allow us to provide the services and support countywide that works in cooperation with your programs raising the awareness for San Luis Obispo County SLOCVCB Funding Formula Jurisdiction Taxable Rents TOT Rate % FY Atascadero 6,381,110 12, Arroyo Grande 6,299,610 12, City of SLO 52,498, , Grover Beach 2,721,410 5, Morro Bay 20,260,380 40, Paso Robles 32,222,990 64, Pismo Beach 68,580, , Total City Funding 188,964, ,929 Visit San Luis Obispo County Presenting Sunset SAVOR the Central Coast Sept , El Capitan Way, Suite 200 San Luis Obispo, CA T: F: Page 17

18 In addition, if your city chooses to pay your entire lodging dues Visit SLOC will offer you a 25% discount on your total dues payment for FY: New this year is an opportunity to bring your restaurants into this membership discount. If you choose either of these membership offers, please let us know and we can work out details with you. The attached one-pager provides you a summary of the key programs executed on behalf of your countywide bureau, Visit San Luis Obispo County. Tourism is the largest industry in our county and working together we can continue to keep the industry strong and growing. Thank you for your partnership and dedication to growing tourism in San Luis Obispo County. We look forward to continuing the collaboration to achieve great results for the region. Regards, Stacie Jacob, Executive Director Visit San Luis Obispo County Presenting Sunset SAVOR the Central Coast Sept , El Capitan Way, Suite 200 San Luis Obispo, CA T: F: Page 18

19 MINUTES CITY OF PISMO BEACH CVB/LBID Board Meeting Wednesday, March 20, 2013, 3:00pm City Council Chamber 760 Mattie Road, Pismo Beach, CA Attachment 4 ROLL CALL Chair Jackson called the meeting to order at 3:00pm. Boardmembers Present: Councilmembers Present: Chamber of Commerce: Staff Present: Vendors: Chair Gordon Jackson, Vice Chair Chantal Lavoux-Guy, Chuck Davison, Chet Hogoboom, Jamie Wallace Councilmember Erik Howell, City Council Liaison Peter Candela, Chamber of Commerce CEO Suzen Brasile, CVB Executive Director Courtney Winters, CVB Administrative Assistant Jim Lewis, City Manager Dave Fleishman, City Attorney Nadia Feeser, Administrative Services Director John Sorgenfrei, TJA Advertising & Public Relations Rick Turton, Pacific Leisure Marketing OPENING BOARD COMMENTS PUBLIC COMMENTS Brooke Mattingley, Wine, Waves & Beyond Event Coordinator, thanked the Board for its continuous support of the event and presented the new Longboard Surf Contest Overall Winner plaque. ITEM: 1. APPROVAL OF MINUTES FOR FEBRUARY 20, 2013 Motion: Boardmember Davison moved to approve the Minutes with Vice Chair Lavoux-Guy s amendment to list the PBHA Board names under Business Item B: Visit San Luis Obispo County FY Funding Request, as discussed by John Fairweather, seconded by Boardmember Wallace. Motion passed, ITEM: 2. BUSINESS ITEMS Chair Jackson introduced City Manager Jim Lewis to the Board. Mr. Lewis stated he is very supportive of hospitality and thanked the Board for their hard work. His three goals are to 1) make good progress to fulfill City Council goals, 2) commit to cost effective City government that s responsive and continues to deliver good customer service, and 3) enhance quality of life for residents and visitors daily. A. LBID ANNUAL REPORT Nadia Feeser, Administrative Services Director, presented the LBID Annual Report. Under Proposition 26, the renewed LBID has limited the scope for which the LBID funds can be used. Improvements and activities to be provided in FY include completing the website design, expanding social media activities, putting more emphasis on lodging packages, adding a Travel Professional area and increasing the budget for advertising opportunities for LBID Media. She presented both a conservative estimate for FY assuming only what has been formally approved by Council and the FY Projected Actuals with an estimated $258,048 Fund Balance that would be carried over to FY This amount still includes the $120,000 as the allocation of those funds has not yet been approved by Council. The FY Proposed Budget shows an estimated $440,212 surplus, with potential changes if Council approves the $120,000, the funding of Visit SLO County and/or funding of Sunset SAVOR the Central Coast. Page 19

20 Attachment 4 B. PROPOSITION 26 UPDATE Dave Fleishman, City Attorney, discussed the unique situation the sunset clause presented and the new requirements of readopting the LBID under Proposition 26. The LBID funds have been limited to benefit those being assessed so as to not be perceived as a special tax as defined under Proposition 26. The City is currently working on a way to track this benefit using reasonable association between expenditures and benefits. The burden falls on the public agency to prove this. If the expenditures only benefit larger lodging properties, it could be argued that it s a special tax if it doesn t benefit the smaller properties. If the City is able to show a reasonable relationship between the expenditures and those being assessed for that money it should be legally safe. He suggested if the Board recommends funding any particular entity the entity should provide some indication that the funds will benefit the lodging properties within the City of Pismo Beach. C. SAVOR SUBCOMMITTEE RECOMMENDATION Boardmember Hogoboom and Boardmember Wallace reported on the subcommittee meeting with the VCB staff noting the committee requests for Sunset involvement, to pursue the possibility of featuring a Celebrity Chef, to create a WOW factor to draw higher attendance and benefit the hotels since the Awards are no longer part of the dinner, to increase local wine involvement to further the Wine & Waves brand. The subcommittee recommended the beach location, pending City approval. Stacie Jacob, Visit San Luis Obispo County Executive Director, announced the event name Sunset on the Sand in Pismo Beach was approved by Sunset. She added Sunset Editors Kitty Morgan and Sara Schneider will be in attendance, a specialty cocktail will be prepared in the Sunset Test Kitchen and available at the dinner, Celebrity Chef contracts are in negotiations, and a Friday Adventure Tour will also help leverage the Wine & Waves experience. Motion: Boardmember Wallace stated the subcommittee recommends moving forward with funding Sunset SAVOR the Central Coast as stated at $60,000, seconded by Vice Chair Lavoux-Guy. Motion passed D. BUDGET SUBCOMMITTEE RECOMMENDATION Ms. Brasile and Mr. Sorgenfrei reviewed the subcommittee meeting notes, stating there are two separate budgets for CVB and LBID funds, with some repetition on both budgets to leverage the brand and with editorial to accompany ad placement. The website will continue to be enhanced and dog friendly initiatives will be pursued. The current booking agent, Jack Rabbit, will be reevaluated by the Website Subcommittee. The City Expenses line item will need to be updated based on the figures presented by Ms. Feeser. Motion: Boardmember Hogoboom moved to recommend that City Council adopt the City of Pismo Beach Budget and LBID Budget as presented, seconded by Boardmember Davison. Motion passed E. VOTE ON VISIT SLO COUNTY MEMBERSHIP FUNDING Ms. Brasile stated the primary items asked of the County were to: provide monthly lodging statistics for all members, include all Pismo Beach lodging properties including RV Parks and vacation rentals, no priority for lodging listings, provide a list of lodging benefit under Proposition 26, ask SAVOR attendees what city they re staying in, allow 4-6 Pismo Beach area wineries the first right of refusal to participate in the dinner, and possibly a banner rotating between the BIDs on the VCB website. The funding request of $137,161 will include all Pismo Beach lodging memberships as well. Chair Jackson said the only barrier to fairness for all lodging properties is the enhanced listings on Jack Rabbit. Ms. Jacob is actively working on this issue with Jack Rabbit as they develop the new website. She clarified a majority of wines for the SAVOR dinner would come from Edna Valley, but a specific number had not been discussed and asked the CVB to provide a template for website reporting. Ms. Brasile added the need for something in writing from Sunset before presenting this request to City Council and will formally request this from Ms. Jacob in writing as well. Chair Jackson said the subcommittee discussed one-year versus two-year funding options. Ms. Brasile would like to fund for two years, as she discussed this request with Mr. Lewis and believes we could propose this two-year funding request to City Council. Chair Jackson believes a two-year commitment would make it easier on the County, however they would need to come back to the CVB next year if LBID funds increase, then this whole process would begin again. He asked Ms. Jacob if she would be open to placing a two year cap at this year s requested amount. Page 20

21 Attachment 4 Ms. Jacob appreciates the two year opportunity, but recommends adopting the Taxable Rents Funding Model annually, which would account for increases or decreases as revenues fluctuate. This is challenging as numbers can change based on success/failure. Ms. Brasile added the County and Chamber requests are both in Outside Requests that need to be presented yearly per our City Budget process this year. Boardmember Davison recommended anticipating this yearly request by assembling a subcommittee to meet in November and prepare questions for the February meeting to expedite the process. Boardmember Wallace suggested including a placeholder for an estimated amount in the future. Mr. Sorgenfrei suggested placing the LBID Annual Report on the CVB/LBID Board Agenda a month earlier. Note: The Board did not ask to have these agendized. Motion: Vice Chair Lavoux-Guy moved to recommend approval of funding of Visit SLO County at the full funding request of $137, to include all lodging, with $40,000 paid through the City Budget and the remaining $97,161 paid through the LBID Budget, seconded by Boardmember Wallace. Board Discussion: Boardmember Wallace stated that Pismo Beach is the lion s share of funding and this funding decision was not taken lightly at the subcommittee level. As the City Attorney stated, there are risks with Proposition 26 that need to be taken seriously and the reporting mechanism is important. He recommended Visit SLO County provide a Pismo Beach specific report for every CVB/LBID Monthly Board Meeting to show what the city has received. He believes it is valuable to have all lodging members represented as Pismo Beach has a unique community with vacation rentals and RV Parks included in this process. He would like to see more of these representatives attend the CVB/LBID Meetings. It is important with the website to give all lodging the opportunity to have a presence. If they don t have a booking engine, at least give them a website so people can reach out to them. That will help facilitate this whole process. He is excited to recommend full funding. Boardmember Hogoboom echoed the importance of being all inclusive with vacation rentals and RV Parks and the importance of not appearing to favor bigger groups. Mr. Sorgenfrei added it might be helpful to hold another mixer for all lodging properties in Pismo Beach, especially for Vacation Rentals and RV Parks, to give an overview of how the LBID funds are being spent and to provide an introduction of what the CVB is planning to do this year with an opportunity for questions. A similar mixer was held when the LBID was formed. Motion passed F. VOTE ON SUNSET SAVOR THE CENTRAL COAST 2013 FUNDING Boardmember Wallace moved to accept the SAVOR Subcommittee recommendation to fund SAVOR the Central Coast at $60,000 with $40,000 from LBID funds and $20,000 from CVB funds, seconded by Vice Chair Lavoux-Guy. Motion passed G. CVB MONTHLY REPORT Ms. Brasile stated CVB staff returned from the CalTravel conference today where international visitors and family travel were key themes. Ms. Brasile has been nominated to the CalTravel Board of Directors and is celebrating her 15 th anniversary with the City of Pismo Beach this week. H. VISIT SLO COUNTY MONTHLY UPDATE Ms. Brasile noted the Visit SLO County website is in the process of being redesigned. Ms. Jacob added the redesigned website will be a true portal site that is mobile-ready, the Board approved a working budget for SAVOR, the new Visitor Guide is now complete and circulation increased by 5,000 for a total of 45,000 guides, a FAM of 8 Film Scouts recently toured the County and a SAVOR sign was displayed at the Oscars. I. PISMO BEACH HOSPITALITY ASSOCIATION UPDATE John Fairweather, PBHA Representative, listed the attendees present for the February PBHA meeting where the Visit SLO County membership funding was discussed. Those in attendance included: Jay Jamison, John Fairweather, Brett Gibbs, Mike Casola, John King, Chet Hogoboom, Terence Concannon, John Sorgenfrei, Gordon Jackson, Chantal Lavoux-Guy, Noreen Martin, Karen Fyfe, Roger Wightman, Jamie Wallace, Peter Candela, Stacie Jacob and Faith Wells. He noted PBHA voted unanimously in favor of the Visit SLO County full funding model of 0.002%. He announced PBHA will work with Mr. Sorgenfrei to prepare for the Page 21

22 Attachment 4 Mixer on April 25 and introduced the new PBHA Chairman, Terence Concannon, Director of Sales & Marketing at the Dolphin Bay Resort & Spa. Mr. Concannon stated for the record how much he appreciated Mr. Fairweather s service as PBHA Chair. J. VISITOR INFORMATION CENTER REPORT Peter Candela, Chamber of Commerce CEO, attended the Chamber Joint Meeting with City Council where Council approved their funding requests. The Visitor Information Center will now be open on Sundays with extended hours during the week. VIC Staff is conducting site visits at all hotels. The new VIC hotel booking program has received 90 bookings in 35 days. K. MARKETING REPORT Mr. Sorgenfrei highlighted the recent AARP article featuring Pismo Beach, which could have cost $20,000 to purchase that exposure. He noted Ash Mehta is helping to secure wine for the Scottsdale Culinary Festival and will be pouring at the event as well Year in Review & Website Report Mr. Turton reviewed the 2012 website statistics, noting an 11% increase in visitors over 2011 and included a breakdown of total hotel rooms, RV spaces and vacation rental companies. The Board appreciated receiving the report. Vice Chair Lavoux-Guy asked for a breakdown of the number of units of vacation rentals, not just the companies as most have more than one rental. The CVB staff will provide that breakdown. L. UPDATE CVB SUBCOMMITTEE MEMBERS Boardmember Davison will join Vice Chair Lavoux-Guy on the Website Subcommittee and replace Chair Jackson on the Website Packaging Subcommittee. The SAVOR Subcommittee will remain the same. M. SURFING GOATS Ms. Brasile expressed her interest in featuring the Surfing Goats in the Main Event booth at SAVOR. This item will be discussed further with the SAVOR Subcommittee. ITEM: 3. CVB / LBID BOARD & CVB EXECUTIVE DIRECTOR CLOSING COMMENTS Ms. Brasile announced the City Manager has asked Council to meet with the CVB/LBID Board during the May 16 Meeting. The Chair will open and close the Joint Meeting then reopen the regular CVB/LBID Board Meeting. The LBID Annual Report and Additional LBID Funds will be on the April 2 City Council Agenda. Boardmember Davison asked what the CVB plans to do with the County Research Report findings. Chair Jackson requested that this item be added to the April Agenda for further discussion. Ms. Brasile will resend the report findings to the CVB/LBID Board. ADJOURNMENT 5:17pm Minutes prepared by Courtney Winters, reviewed by Suzen Brasile Page 22