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HomeMy WebLinkAboutCC 2026-05-26_09e Award Contract TBIDItem 9.e. MEMORANDUM TO: City Council FROM: Sheridan Bohlken, Director of Recreation Services SUBJECT: Award Contract for Tourism Marketing Services for Fiscal Year 2026 - 29 DATE: May 26, 2026 RECOMMENDATION: 1) Adopt a Resolution authorizing the City Manager to execute a three-year Professional Services Agreement with Commune Communication for Marketing Services for the Arroyo Grande Tourism and Business Improvement District (AGTBID); and 2) Find that approval of the Marketing Services Professional Services Agreement is exempt from CEQA on the basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on th e environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The Fiscal Year (FY) 2026–27 AGTBID Proposed Budget includes approximately $222,500 for Marketing Services within the Advertising category, in a ddition to related tourism promotion expenditures, including cooperative advertising, travel and trade shows, influencers, photo/video assets, and promotional initiatives supporting overnight visitation and destination marketing efforts. The annual professional services agreement for marketing services is anticipated at approximately $200,000 annually, with a City Council-approved not-to-exceed amount of $250,000 per FY, inclusive of professional fees, media buys, production expenses, and related campaign c osts. The proposed three-year agreement term for FY 2026-29 will be incorporated into future annual AGTBID budget development and remains subject to annual budget appropriation by the City Council. Funding for these services is derived from AGTBID assess ment revenues collected from lodging businesses within the district. The FY 2026 -27 Proposed AGTBID Budget anticipates approximately $298,700 in assessment revenue and total proposed expenditures of approximately $504,350, including destination marketing, tourism promotion, public relations, and district improvement activities. Page 53 of 466 Item 9.e. City Council Award Contract for Tourism Marketing Services for Fiscal Year 2026-29 May 26, 2026 Page 2 BACKGROUND: The AGTBID was formed in 2013 to support tourism promotion and lodging-based economic development through assessment revenues collected from Arroyo Grande lodging partners. The AGTBID operates as the City’s destination marketing organization under the Visit Arroyo Grande brand. The district’s primary purpose remains focused on increasing overnight visitation, supporting occupancy, enhancing tourism demand, and strengthening Arroyo Grande’s position as a visitor destination. Professional marketing services are currently provided under contract through FY 2025 - 26. In preparation for the next contract cycle, the AGTBID Advisory Board initiated a formal Request for Proposals (RFP) process for Marketing, Communications, Website Management, and Social Media Services for FY 2026-29. On December 11, 2025, the AGTBID Advisory Board identified an Ad-hoc Committee to assist with RFP development, proposal evaluation, consultant interviews, and recommendation of a marketing services provider. The RFP process resulted in thirty - nine (39) proposals submitted from firms throughout California and the United States. Following review of proposals, the Ad-hoc Committee identified the following three finalist agencies for interviews:  Commune Communication  Volt Studios  Percepture Finalist interviews focused on each agency’s strategic approach to destination marketing, measurable overnight visitation strategies, data tracking capabilities, stakeholder collaboration, and overall compatibility with AGTBID goals and priorities. On May 14, 2026, the AGTBID Advisory Board considered the recommendation of the Ad-hoc Committee and recommended that the City Council award the Marketing Services contract to Commune Communication. ANALYSIS OF ISSUES: Based on the review process, the Ad-hoc Committee determined that Commune Communication demonstrated the strongest overall combination of destination -specific knowledge, measurable tourism performance outcomes, strategic continuity, and implementation readiness. Commune Communication currently serves as the AGTBID marketing agency and has developed an established understanding of Arroyo Grande’s tourism objectives, brand identity, stakeholder relationships, and regional t ourism partnerships. Their proposal emphasized continued use of data-driven marketing strategies, location visitation reporting, feeder market targeting, lodging-focused campaigns, and collaboration with hotels, businesses, and event organizers to support overnight visitation. Page 54 of 466 Item 9.e. City Council Award Contract for Tourism Marketing Services for Fiscal Year 2026-29 May 26, 2026 Page 3 The Committee also recognized the benefit of maintaining continuity with an agency already familiar with existing campaigns, reporting systems, website infrastructure, and AGTBID operational goals. Continued partnership is anticipated to minimize transition time while allowing ongoing marketing initiatives to continue without interruption. The proposed agreement term would begin July 1, 2026, for a three -year period, subject to annual budget appropriation and City Council approval. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Staff’s recommendation; 2. Direct staff to pursue negotiations with an alternate finalist agency; or 3. Reject all proposals and direct staff to reissue the RFP. ADVANTAGES: Awarding the contract to Commune Communication supports continuity of existing tourism marketing initiatives while maintaining an agency already familiar with Arroyo Grande, AGTBID operations, stakeholder relationships, and regional tourism dynamics. The proposed approach continues emphasis on measurable tourism performance, overnight visitation strategies, and data -driven marketing efforts while minimizing transition delays associated with onboarding a new agency. DISADVANTAGES: Selection of the current marketing agency may limit opportunities for an entirely new marketing direction or alternative strategic approach that could be introduced by another firm. Additionally, tourism and advertising trends continue to evolve rapidly, requiring continued adaptability throughout the contract term to ensure marketing efforts remain effective and competitive. ENVIRONMENTAL REVIEW: Approval of the three-year agreement is not a project subject to the California Environmental Quality Act (CEQA) because it has no poten tial to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378). PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. ATTACHMENTS: 1. Resolution Exhibit A - Professional Services Agreement with Commune Communication Page 55 of 466 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO EXECUTE A THREE-YEAR PROFESSIONAL SERVICES AGREEMENT WITH COMMUNE COMMUNICATION FOR MARKETING SERVICES FOR THE ARROYO GRANDE TOURISM AND BUSINESS IMPROVEMENT DISTRICT WHEREAS, staff issued a formal Request for Proposals for Arroyo Grande Tourism Business Improvement District (AGTBID) Marketing Services on March 1, 2026, which closed on April 17, 2026, and received thirty-nine (39) responses; and WHEREAS, on May 14, 2026, the AGTBID Advisory Board reviewed the recommendation of the Ad-hoc Committee and recommended that the City Council approve a three-year agreement with Commune Communication for AGTBID Marketing Services; and WHEREAS, the City previously entered into an agreement with Commune Communication for professional marketing services for the AGTBID, which is scheduled to expire on June 30, 2026; WHEREAS, the agreement includes an annual amount not-to-exceed $250,000 per fiscal year inclusive of professional services, media buys, production expenses, and related campaign costs, subject to annual budget appropriation by the City Council; and WHEREAS, approval of the three-year agreement is not a project subject to the California Environmental Quality Act (CEQA) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378); and WHEREAS, the three-year agreement term for FY 2026-29 will be incorporated into future annual AGTBID budget development and remains subject to annual budget appropriation by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, that: 1. The recitals set forth herein are true, correct and incorporated herein by this reference. 2. The City Manager is authorized to execute the Professional Services Agreement (Exhibit A) with Commune Communication to provide AGTBID marketing services for a three-year term, subject to annual budget appropriation as to form, in substantially final form, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney. Page 56 of 466 RESOLUTION NO. PAGE 2 On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 26th day of May, 2026. Page 57 of 466 RESOLUTION NO. PAGE 3 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: MATTHEW DOWNING, CITY MANAGER APPROVED AS TO FORM: ISAAC ROSEN, CITY ATTORNEY Page 58 of 466 RESOLUTION NO. PAGE 4 EXHIBIT A PROFESSIONAL SERVICES AGREEMENT Page 59 of 466 -1- PROFESSIONAL SERVICES AGREEMENT FY 2026-29 1. PARTIES AND DATE. This Agreement is made and entered into this 26th day of May, 2026, by and between the City of Arroyo Grande, a municipal corporation organized under the laws of the State of California with its principal place of business at 300 E. Branch Street, Arroyo Grande, California 93420, County of San Luis Obispo, State of California ("City") and Commune Communication, a California Corporation (partnership based), with its principal place of business at 245 E Third Street Long Beach, CA 90802 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. RECITALS. 2.1 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing marketing services to public clients, is licensed in the State of California, and is familiar with the plans of City. 2.2 Project. City desires to engage Consultant to render such professional services for the marketing services for the Arroyo Grande Tourism Business Improvement District (AGTBID) project ("Project") as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional marketing consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.2 Term. The term of this Agreement shall be from July 1, 2026 to June 30, 2029, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services. 3.3 Compensation. 3.3.1 Compensation. Consultant shall receive compensation, including Page 60 of 466 -2- authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed two hundred and fifty thousand dollars ($250,000) per fiscal year, and shall not exceed seven hundred and fifty thousand dollars ($750,000) over the Term, without written approval of the City Council or City Manager, as applicable. The annual professional services agreement for marketing services is anticipated at approximately $200,000 annually, with a City Council-approved not-to-exceed amount of $250,000 per fiscal year inclusive of professional fees, media buys, production expenses, and related campaign costs. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City or included in Exhibit "C" of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City. 3.4 Responsibilities of Consultant. 3.4.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.4.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner and in accordance with the Schedule of Services set forth in Exhibit "B" attached Page 61 of 466 -3- hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.4.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.4.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: • Ryan La Rosa - Co-Founder, COO • James Whale - Co-Founder, CEO • Richardson Reigart - EVP, Strategy • Jenn Skelaney - Account Manager • Michael Ziman - Creative Director • Array Amano - Art Director • Candice Wong - Graphic Designer • Josh Slone - Web Developer 3.4.5 City's Representative. The City hereby designates Matthew Downing, City Manager, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 3.4.6 Consultant's Representative. Consultant hereby designates Ryan La Rosa, Co-Founder, COO, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, andprocedures and for the satisfactory coordination of all portions of the Services under this Agreement. Page 62 of 466 -4- 3.4.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times. 3.4.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.4.9 Period of Performance. 3.4.9.1 Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above ("Performance Time"). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits "A" or "B" attached hereto, or which may be separately agreed upon in writing by the City and Consultant ("Performance Milestones"). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. 3.4.9.2 Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party's performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, "orders of governmental authorities," includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. 3.4.9.3 Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party Page 63 of 466 -5- describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.4.10 Laws and Regulations; Employee/Labor Certification. 3.4.10.1 Compliance with Laws. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. 3.4.10.2 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub- subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. 3.4.10.3 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.4.10.4 Air Quality. To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement. 3.4.10.5 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City's ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. City may seek Page 64 of 466 -6- damages from Consultant for delay in completing the Services caused by Consultant's failure to comply with the laws, regulations and policies described in this Section, or any other relevant water quality law, regulation, or policy. 3.4.10.6 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.4.11 Insurance. 3.4.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Agreement for cause. 3.4.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so. 3.4.11.2.1 Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. 3.4.11.2.2 Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. 3.4.11.3 Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. 3.4.11.4 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies: 3.4.11.4.1 Commercial General Liability: (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement. Additional Page 65 of 466 -7- Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. 3.4.11.4.2 Automobile Liability. (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. 3.4.11.4.3 Professional Liability (Errors & Omissions): (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non- payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must "pay on behalf of' the insured and include a provision establishing the insurer's duty to defend. 3.4.11.4.4 Workers' Compensation: (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers. 3.4.11.5 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions. 3.4.11.6 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. 3.4.11.7 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention. 3.4.11.8 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed Page 66 of 466 -8- by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. 3.4.11.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. 3.4.11.10 Enforcement of Agreement Provisions (non estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder. 3.4.11.11 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. 3.4.11.12 Additional Insurance Provisions 3.4.11.12.1 The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and oblig ations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. 3.4.11.12.2 If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. 3.4.11.12.3 The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. 3.4.11.12.4 Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. 3.4.11.12.5 The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant's indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. Page 67 of 466 -9- 3.4.11.12.6 Consultant shall report to the City, in addition to Consultant's insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement. 3.4.11.13 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant's subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant's compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City. 3.5 Labor Code Requirements. 3.5.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.5.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations ("DIR"). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. 3.5.3 Compliance Monitoring. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant's sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any Page 68 of 466 -10- subconsultant that affect Consultant's performance of services, including any delay, shall be Consultant's sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant. 3.5.4 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.6 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.6.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.7 Indemnification. 3.7.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City's choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney's fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers. Page 69 of 466 -11- 3.7.2 If Consultant's obligation to defend, indemnify, and/or hold harmless arises out of Consultant's performance as a "design professional" (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant's indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant's liability for such claim, including the cost to defend, shall not exceed the Consultant's proportionate percentage of fault. 3.8 General Provisions. 3.8.1 Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.8.2 Independent Contractors and Subcontracting. 3.8.2.1 Use of Consultants. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California Labor Code Section 2750.3 and Dynamex Operations West. Inc. v. Superior Court, 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant ("Subcontractor(s)") unless approved by the City as set forth in Section 3.7.2.2 below. Consultant represents and warrants that all personnel who perform the Services on Consultant's behalf are Consultant's employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders. 3.8.2.2 Prior Approval Required. Consultant shall not use any Subcontractor to provide the Services, or any portion of the work required by this Agreement, without prior written approval of City. In the event that City authorizes Consultant to use a Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all provisions of the Agreement, including a restriction on the Subcontractor's use of further independent contractors, subcontractors or subconsultants without the City's prior written consent. Page 70 of 466 -12- 3.8.3 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: City: Commune Communication 245 E Third Street Long Beach, CA 90802 ATTN: Ryan La Rosa City of Arroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 ATTN: Matthew Downing, City Manager Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.8.4 Ownership of Materials and Confidentiality. 3.8.4.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City's express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Page 71 of 466 -13- Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.8.4.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. 3.8.4.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City's sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant's seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. 3.8.4.4 Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.8.4.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.8.5 Cooperation: Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. Page 72 of 466 -14- 3.8.6 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. 3.8.7 Attorneys' Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys' fees and all costs of such action. 3.8.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Luis Obispo County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City. 3.8.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.8.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.8.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.8.12 Assignment or Transfer. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.8.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. Page 73 of 466 -15- 3.8.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.8.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.8.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.8.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.8.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gif t or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City's Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.8.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.8.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.8.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE] Page 74 of 466 -16- SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF ARROYO GRANDE AND COMMUNE COMMUNICATION IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF ARROYO GRANDE COMMUNE COMMUNICATION Approved By: [If Corporation, TWO SIGNATURES, President OR Vice President AND Secretary OR Treasurer REQUIRED] Matthew J. Downing, City Manager Approved as to Form: Best Best & Krieger LLP Isaac Rosen, City Attorney Attested By: By: Its: Co-Founder, COO Printed Name: Ryan La Rosa By: Its: Co-Founder, CEO Printed Name: James Whale Jessica Matson, City Clerk By: Its: Printed Name:_ Page 75 of 466 30 EXHIBIT “A” SCOPE OF SERVICES 1. Scope of Services Proposers shall distinguish between proposal-stage expectations and post-award contractual obligations. The proposal should demonstrate the firm’s ability to deliver detailed strategy in the first contract year while presenting a scalable long-term vision appropriate for a three-year partnership. 1.1 Core Services (Required) A. Strategic Marketing & Advertising • Destination marketing strategy • One-year implementation plan with 1–3 year outlook • Creative campaigns supporting overnight stays • Integrated media mix (digital, print, video, radio, outdoor, online, direct marketing, etc. • Data Tracking, Measurement, and Reporting • KPIs and ROI measurement • Recurring reporting aligned with AGTBID meetings • Media and platforms used to track, analyze, and respond to brand/reputation monitoring B. Website Audit, Management, and Optimization The firm will take responsibility for all aspects of the Visit Arroyo Grande website, content management system (CMS), and related hosting. The scope of services should include, but is not limited to, all software, hardware, administrator and end-user training, hosting, SEO programming, and other services required to implement and support the website and should include: • Website audit and recommendations • Competitive positioning and tourism trends • ADA compliance, privacy, email capture • Strategic changes and implementation plan to separate Arroyo Grande as a destination from competitors  Measurable tracking mechanism for visits to site  Include a privacy policy  Be capable of capturing email addresses  Include additional tools as appropriate in recommendation C. Social Media & Digital Presence • Platform management and reporting • Creative assets • Copy and graphic examples 1.2 Optional / Add-On Services (if deemed appropriate) • Blog content development • Email newsletter development and analytics  Other tools/services as deemed appropriate Page 76 of 466 31 EXHIBIT “B” SCHEDULE OF SERVICES PROJECT SCHEDULE With a clear strategy, an active creative campaign, a tuned media system, and established relationships across the City, AGTBID, and local business communities, Commune starts the new fiscal years already in motion. The project schedule is organized to reflect where time and resources have the greatest impact on visitation and ToT performance. Key activities include: 1. Planning & Meetings: Monthly check-ins with City staff, bi-monthly AGTBID meetings, quarterly presentations, and bi-annual City Council meetings ensure alignment at every level, providing consistent visibility into performance and strategic direction. 2. Strategy & Media: Ongoing campaign management, performance analysis, location visitation reporting, and regular strategic optimization recommendations drive media efficiency and efficacy. Performance updates are delivered across the fiscal year, culminating in a comprehensive annual report, ensuring that media investment is aligned with what is actually driving visits to lodging partners in Arroyo Grande. • Location Visitation Reporting: Campaign exposure is continuously connected to real-world visits and overnight stays in Arroyo Grande through our proprietary location visitation reporting capability. This provides an ongoing view of which markets, channels, and audiences are translating to actual visits to Arroyo Grande hotels. • Ongoing Campaign Management: Active oversight of all paid media channels, including investment pacing, audience targeting, and creative performance. Adjustments are made in real time as insights emerge. • Bi-Monthly performance updates and Optimization Recommendations: Formal reporting delivered to the AGTBID on a bi-monthly basis, covering visitation trends, cost per visit, channel performance, audience behavior, and specific recommendations for optimization. • Annual Marketing Report: A comprehensive review of annual performance including all location visitation reporting data, ToT context, campaign analysis, and strategic direction for the upcoming fiscal year. 3. Creative Development: Ongoing social media production, quarterly SEO blog content, quarterly e-newsletter development, and ad creative updates ensure that campaigns remain fresh and responsive to performance data. Creative assets are reviewed regularly and updated based on engagement and conversion signals. • Paid + Organic Asset Development: Creative assets are continually reviewed and updated, informed by engagement rates, click-through performance, location visitation reporting, and conversion data. New assets are introduced on a rolling basis, ensuring consistency and preventing creative fatigue. 4. Website Maintenance & Content Updates: Monthly maintenance keeps the Visit Arroyo Grande website fast, accurate, functional, and compliant with evolving ADA standards. Page 77 of 466 32 The core of this schedule is a commitment to ongoing optimization with location visitation reporting, media management, and strategic analysis built into every month. Content updates ensure that the site reflects current events, travel deals, and local offerings, supporting conversions to lodging partner Book Now buttons and every stage of the visitor journey. 5. Co-op Partnerships: Regional partnerships with Visit SLO CAL, Visit California, and the Central Coast Tourism Council are built into the schedule at key seasonal windows. Content submissions, magazine placements, visitor guide contributions, and co-op programs extend Arroyo Grande’s reach into audiences already in a travel-planning mindset. The South County Chamber of Commerce Visitor Guide and co-op opportunities are also incorporated throughout the schedule. 6. Contingency: Time is reserved for production, content capture, and special initiatives allowing for flexibility while not exceeding budget constraints. This includes new photo and video content for campaigns, opportunities tied to seasonal events, and emerging needs that arise throughout the year. The schedule below is designed to maximize that continuity while building on what the data has shown to be working. Ensuring our media investment is always aligned with data about actual visits, creative is updated before it fatigues, and that audience targeting reflects current behaviors. Proposed Project Details Interval Planning & Meetings City Meetings Monthly AGTBID Meetings Bi-Monthly Quarterly Planning Quarterly City Council Meetings Bi-Annually Fiscal Planning Annually Page 78 of 466 33 Proposed Project Details Interval Strategy & Media [Planning, Management, Optimizations, Reporting & Insights] Media Management Ongoing Strategic Insights & Recommenda-tions Ongoing Media Optimizations + Testing Ongoing Location Visitation Reporting Bi-Monthly Performance Updates Bi-Monthly Annual Report Development Annually Creative Development [Paid Media Assets, Social Media, Blog & E-Newslet-ter] Campaign Development Ongoing Social Media Development Ongoing E-Newsletter Development Quarterly SEO Blog Development Quarterly Website [Maintenance & Content Updates] Content Updates Ongoing Maintenance Monthly Co-Op Partnerships Visit SLO CAL Ongoing Visit California Quarterly Central Coast California Tourism Quarterly South County Chamber of Com-merce Bi-Annually Contingency [Photography, Videogra-phy & Special Projects] Photo/Video Assets Bi-Annually Merchandise Annually Page 79 of 466 34 EXHIBIT “C” COMPENSATION Hourly Rates for Proposed Team Members: The following table outlines Year 1 proposed rates. All future years to be negotiated or outlined in line with contract demands and based on factors including inflation. Budget Allocation: Agency time and paid media are allocated to ensure the investment flows directly into the market, consistent with our approach in prior years. Time allocations are planned across the engagement, with hours tracked and the budget managed transparently throughout the engagement. Page 80 of 466 35 Time allocations are planned across the engagement, with hours tracked and the budget managed transparently throughout the engagement. Agency production hours are allocated across project categories per fiscal year. Project Categories Agency Production Hours Per Fiscal Year Planning & Meetings 24 Strategy & Media [Planning, Management, Optimizations, Report-ing & Insights] 60 Creative Development [Paid Media Assets, Social Media, Blog & E-News-letter] 112 Website [Maintenance & Content Updates] 36 Co-Op Partnerships 20 Contingency [Photography, Videography & Special Projects] 248 Total 500 Page 81 of 466