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CC 2018-05-22_10b AGTBID Annual Assessment MEMORANDUM TO: CITY COUNCIL FROM: JIM BERGMAN, CITY MANAGER BY: JESSICA MATSON, DEPUTY CITY CLERK SUBJECT: ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) DATE: MAY 22, 2018 SUMMARY OF ACTION: Levying an annual assessment for Fiscal Year 2018-19 to defray the costs of services, activities and programs promoting tourism for the benefit of lodging businesses within the Arroyo Grande Tourism Business Improvement District (AGTBID), and approval of the FY 2018-19 budget for the AGTBID. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Based on the anticipated year-end results for 2017-18, the assessment expected to be collected totals approximately $195,000. The AGTBID budget provides $3,000 to the City to cover the City’s administrative costs associated with collecting and disbursing the assessment. The City has also budgeted $5,000 to contribute toward the tourism efforts. Therefore, it results in a net cost of $2,000 to the City. RECOMMENDATION: It is recommended the City Council: 1) Hold a public hearing to receive testimony regarding the City Council’s intention to continue the AGTBID and levy an annual assessment for fiscal year 2018-19; 2) Determine whether a legally sufficient number of protests have been made; 3) If a legally sufficient protest is not made, adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2018-19 fiscal year; and 4) Adopt a Resolution approving the FY 2018-19 budget for the AGTBID. BACKGROUND: In May 2013, the City Council adopted an Ordinance establishing the AGTBID. The AGTBID was formed under the Parking and Business Improvement Law of 1989, Sections 36500 et seq. of the Streets and Highways Code and incorporated into the Arroyo Grande Municipal Code (AGMC) in Title 3, Chapter 3.46. Item 10.b. - Page 1 CITY COUNCIL ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) MAY 22, 2018 PAGE 2 The purpose of forming the AGTBID was to provide revenue to defray the costs of services, activities and programs promoting lodging businesses in the AGTBID through the promotion of scenic, recreational, cultural and other attractions in the AGTBID as a tourist destination. An assessment is levied on all lodging businesses within the AGTBID boundaries and is based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies. In December 2014, the City Council adopted an Ordinance amending Chapter 3.46 of the Arroyo Grande Municipal Code to provide that the same exemptions that apply to the Transient Occupancy Tax apply to AGTBID assessments and amended the definition of "lodging" to include vacation rentals and homestays. In accordance with the provisions in the Streets and Highways Code and AGMC Section 3.46.100, the City Council appointed an Advisory Board. Pursuant to Streets and Highways Code Section 36533, the Advisory Board is to prepare an annual report, which is to be submitted to the City Council for its review and approval. Accordingly, the AGTBID Advisory Board submitted the annual report (Attachment 1) to the City Council for consideration at its April 10, 2018 meeting, which was approved. AGMC Section 3.46.060 also provides that the assessments for the AGTBID are to be reviewed annually by the City Council based upon the annual report of the Advisory Board, and after approval of the annual report, the City Council is to follow the hearing process outlined in Streets and Highways Code Section 36534 for the annual assessment for the upcoming fiscal year. Section 36534 provides for the adoption of a Resolution of Intention to levy an annual assessment for that fiscal year. The Resolution also set a public hearing date in order to receive any written or oral protests against the continuation of the AGTBID as required by the applicable statute. Accordingly, on April 10, 2018, the City Council adopted a Resolution setting a public hearing for May 22, 2018. Additionally, the AGTBID Advisory Board has reviewed a preliminary budget for FY 2018-19 based on activity during FY 2017-18. Due to the absence of a marketing firm, the AGTBID currently has an estimated fund balance of $275,000. The preliminary budget includes a request for additional funding from the Arroyo Grande Grover Beach Chamber of Commerce (Chamber of Commerce) to administer the AGTBID and coordinate marketing efforts with the new marketing firm, once selected. ANALYSIS OF ISSUES: The AGTBID has been in effect for almost five years. A tourism website and other marketing efforts have been developed and implemented. In January 2018, the City Council combined the Tourism Marketing Committee, which was coordinated by the Chamber of Commerce, and the AGTBID Advisory Board, increasing the number of members from three (3) to nine (9). AGTBID efforts are approved by the AGTBID Item 10.b. - Page 2 CITY COUNCIL ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) MAY 22, 2018 PAGE 3 Advisory Board. The Chamber of Commerce is responsible for administering the program, with minimal assistance from City staff. The AGTBID Advisory Board recommends extending the assessment and continuing the program. The AGTBID Board issued a Request for Proposals for tourism marketing services on March 28, 2018 requesting a fresh perspective and innovative ideas given the current economic climate and needs of Arroyo Grande’s tourism market. It is anticipated an agreement will be presented to the City Council for consideration and approval in June 2018 with the selected firm commencing work July 1, 2018. Today’s public hearing will allow lodging businesses subject to the assessment an opportunity to submit comments, voice concerns, and protest the assessment. As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the City Council has the ability to continue the AGTBID at this public hearing, unless written protests are received from lodging businesses that pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the AGTBID for at least one year. If the required number of written protests is not received, Streets and Highways Code Section 36535 provides that at the conclusion of the hearing, a Resolution confirming the Advisory Board’s report may be adopted. The statute further provides that adoption of the Resolution constitutes the levy of the assessment for the fiscal year. A Resolution has been prepared for City Council consideration and adoption if there is no legally sufficient protest. The AGTBID Advisory Board also recommends approval of the FY 2018-19 budget for the AGTBID, which is included in the attached Resolution. The Budget incorporates additional funding requested by the Chamber of Commerce (Attachment 2) for costs associated with administering and managing the TBID. The current Agreement with the Chamber of Commerce is included as Attachment 3. Should the City Council approve the FY 2018-19 budget for the AGTBID, an updated agreement would be brought to City Council for consideration at a future meeting. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2018-19 fiscal year and adopt a Resolution approving the AGTBID FY 2018-19 budget; 2. Adopt a Resolution confirming the Advisory Board’s report and levying an annual assessment for the AGTBID for the 2018-19 fiscal year; make modifications to the budget and adopt a Resolution approving the AGTBID budget for FY 18-19; or 3. Provide other direction to staff. Item 10.b. - Page 3 CITY COUNCIL ANNUAL PUBLIC HEARING FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT (AGTBID) MAY 22, 2018 PAGE 4 ADVANTAGES: The recommendations will enable the City to extend the AGTBID, which provides a mechanism to generate funding to promote lodging stays and tourism in the City, which increases transient occupancy tax revenue and supports local businesses. DISADVANTAGES: No disadvantages with levying the assessment for another year are identified. Approving the FY 2018-19 budget, including the additional funding request from the Chamber of Commerce, will reduce the amount of funding for other potential marketing services. ENVIRONMENTAL REVIEW: No environmental review is required for this item. 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. Annual Report 2. Request for Additional Funding from Chamber of Commerce 3. Current Agreement with the Chamber of Commerce, dated July 1, 2013 Item 10.b. - Page 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE 2018-19 FISCAL YEAR WHEREAS the Parking and Business Improvement Area Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is the promotion of tourism; and WHEREAS the Arroyo Grande Tourism Business Improvement District was established in May, 2013 and incorporated into the Arroyo Grande Municipal Code in Chapter 3.46; and WHEREAS in accordance with the requirements of Streets and Highways Code Section 36530 and Arroyo Grande Municipal Code Section 3.46.100, the City Council appointed an Advisory Board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS the Arroyo Grande Municipal Code and the Parking and Business Improvement Area Law of 1989 requires the Advisory Board to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS the Advisory Board annual report was considered and approved by the Arroyo Grande City Council at its April 10, 2018 meeting; and WHEREAS, in accordance with the procedures contained in Streets and Highways Code Section 36534, on May 10, 2018 the City Council adopted a Resolution of Intention to levy an annual assessment for the Arroyo Grande Tourism Business Improvement District for the 2018-19 fiscal year and set a public hearing for May 22, 2018 to consider the annual assessment and hear any oral or written protests; and WHEREAS, the City Council held a duly noticed Public Hearing on May 22, 2018 to allow for protests, as required by Streets and Highway Code Section 36524, and, sufficient written protests were not received from lodging businesses in the District which pay fifty percent or more of the assessment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande as follows: SECTION 1. The City Council hereby continues the established Arroyo Grande Tourism Business Improvement District in accordance with Arroyo Grande Item 10.b. - Page 5 RESOLUTION NO. PAGE 2 Municipal Code Chapter 3.46 and California Streets and Highways Code Sections 36500 et seq. (Parking and Business Improvement Area Law of 1989) and levies assessments for fiscal year 2018-19 as further contained herein. SECTION 2. The report of the Arroyo Grande Tourism Business Improvement District Advisory Board is hereby confirmed. SECTION 3. The location and boundaries of the Arroyo Grande Tourism Business Improvement District are the boundaries of the City of Arroyo Grande. SECTION 4. The assessment levied by the Arroyo Grande Tourism Business Improvement District shall be used for activities and programs promoting lodging businesses in the District through the promotion of scenic, recreational, cultural and other attractions in the District as a tourist destination, and as further set forth in Arroyo Grande Municipal Code Section 3.46.030. SECTION 5. The assessment will be levied and allocated by the City of Arroyo Grande. SECTION 6. The assessment is to be levied on all “lodging”, as that term is defined in Arroyo Grande Municipal Code Section 3.46.020. SECTION 7. The assessment for fiscal year 2018-19 shall be levied on all lodging businesses within the AGTBID boundaries and shall be based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies. The assessment shall be collected quarterly, based on two percent of the rent charged by the operator per occupied room per night in revenues for the previous quarter. SECTION 8. New lodging businesses shall not be exempt from immediate assessment. 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 22nd day of May, 2018. Item 10.b. - Page 6 RESOLUTION NO. PAGE 3 ___________________________________ JIM HILL, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _____________________________________ JAMES A. BERGMAN, CITY MANAGER APPROVED AS TO FORM: ___________________________________ HEATHER WHITHAM, CITY ATTORNEY Item 10.b. - Page 7 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2018-19 BUDGET FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, on February 26, 2013, the City Council adopted Resolution No. 4516 establishing the Arroyo Grande Tourism Business Improvement District (“AGTBID”) Advisory Board (“Advisory Board”); and WHEREAS, on May 14, 2013, the City Council adopted Ordinance No. 651 establishing the AGTBID; and WHEREAS, the purpose of the Advisory Board is to consult with and advise the City Council on those matters dealing with the method and basis of levying assessments within the AGTBID; expenditures of revenues derived from such assessments; and programs, services, improvements, and activities intended to promote lodging establishments within the District; and WHEREAS, on March 26, 2018, the Advisory Board approved the FY 17-18 AGTBID Annual Report; and WHEREAS, on April 10, 2018, the City Council approved the Advisory Board’s Annual Report and adopted a Resolution of Intention to levy and collect assessments for the 2018- 19 fiscal year and to set the date for a public hearing for May 22, 2018; and WHEREAS, on May 22, 2018, the City Council adopted a Resolution confirming the Advisory Board’s Annual Report and levying an annual assessment for the AGTBID for the 2017-18 fiscal year; and WHEREAS, the FY 18-19 budget recommendations are based upon City revenue projections and will fund a work plan that meets the objectives, goals and responsibilities of the AGTBID. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. The recitals set forth herein are true and correct. 2. The City Council hereby adopts the FY 2018-19 budget for the Arroyo Grande Tourism Business Improvement District attached hereto as Exhibit A. On motion by Council Member _________, seconded by Council Member _______, and on the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 22nd day of May, 2018. Item 10.b. - Page 8 RESOLUTION NO. PAGE 2 ___________________________________ JIM HILL, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _________________________________ JAMES A. BERGMAN, CITY MANAGER APPROVED AS TO FORM: ___________________________________ HEATHER WHITHAM, CITY ATTORNEY Item 10.b. - Page 9 Preliminary FY 2018‐19 AGTBID Budget Estimated Fund Balance for FY 2017‐18 is $275,000 Revenue Source Amount TBID Assessments 200,900$             Interest 800$  Chamber contribution 5,000  City contribution 5,000  Total Revenue 211,700$             Activity Amount Amount Advertising 67,000$               Consultant Services 32,000                 500$  Miscellaneous 10,000                 5,000  Sub‐total Advertising 109,000$            5,500$                  Services & Supplies Website Maintenance 7,000$                 55,000$               City ‐ administrative 3,000 10,000                  Chamber ‐ Contract admin. *30,000                 65,000$               Misc. contractual services 13,000                  Supplies 2,500  Sub‐total Services & Supplies 55,500$              235,000$             *Requesting an Increase CCTC Total Expenditures Misc Sub‐total Public Relations Events Sponsorships Public Relations Sub‐total Membership & Subs. REVENUES Membership & Subscriptions Activity EXPENDITURES EXHIBIT A Item 10.b. - Page 10 Arroyo Grande Tourism Business Improvement District 2017-2018 Annual Report Presented to the Arroyo Grande City Council by the Arroyo Grande Tourism Business Improvement District (AGTBID) Advisory Board & Arroyo Grande-Grover Beach Chamber of Commerce OVERVIEW During 2017, the AGTBID continued efforts to position Arroyo Grande as a premier tourist destination through social media, search engine optimization, paid advertising, video marketing, and improved website design and content. The efforts detailed below reflect work completed by marketing firm RG Pacific, Inc., through October 2017. The agreement with RG Pacific, Inc., has since expired per City Council direction. Additionally, staff turnover at the Chamber of Commerce delayed the Request for Proposals (RFP) process for a new marketing firm. In March 2018, the AGTBID issued a RFP for tourism marketing services to commence on July 1, 2018. AGTBID 2017 HIGHLIGHTS Online Media & Advertising •Promoted Arroyo Grande Village Summer Concert Series •Promoted Wine Month Giveaways •Promoted Beer Feast Festival •Promoted Arroyo Grande Harvest Festival •Created and sent out Newsletter about giveaways and events including Wine Month, Harvest Festival, Triathlon, and other events. •Expanded social media efforts to include videos Expenditures: To date, $30,000 has been spent on this effort. Results: The website received over 400,000 impressions. Social Media platforms have over 6,000 likes. Website Updates & Maintenance •Launched new Vacation Rentals page •Set up pages for Beer Feast Festival and Wine Month Giveaways Expenditures: To date, $2,846 has been spent on this effort. Results: The website is currently second in Search Engine Optimization (SEO) search for Arroyo Grande hotels behind TripAdvisor and passing Hotels.com. Promotions •Hotel stay for one winner •Gift Card for use in Arroyo Grande •6 Passes to Jazz Jubilee provided by organizers of Jubilee by the Sea Festival Expenditures: To date, $422 has been spent on this effort. ATTACHMENT 1 Item 10.b. - Page 11 Page 2 Video Marketing • Promotion of videos for the Arroyo Grande Farmer’s Market and Wine Tasting • Production of two videos focused on a Girlfriend’s Getaway including restaurants and sports programs Expenditures: To date, $1,500 has been spent on this effort. Results: Average of 4,000 views per month. Partnership with Jubilee by the Sea Festival For the first time, AGTBID partnered with organizers of the Jubilee By the Sea Festival to expand entertainment into Arroyo Grande. Jubilee by the Sea/Pismo Jazz Jubilee is a successful 4-day event destination that brings in Traditional Jazz lovers from all over. For the last 40 years, the festival has had a significant positive financial impact on the 5-Cities area. Historically, the festival has been held in five venues located in Pismo Beach. In 2017, organizers also utilized two venues in Arroyo Grande; the South County Regional Center and the Arroyo Grande Woman’s Club. Expenditures: Online Advertisement $1,500 Event Sponsorship $12,000 ESTIMATED COSTS FOR FY 2017-18 Below is the AGTBID budget activity through February 28, 2018. Revenues are projected to generate approximately $389,000 during the year. Budget Projected Actual Variance (Projected less Budget) Sources Fund Balance $ 184,238 $ 184,238 $ - Revenues TBID Assessments 195,000 194,100 (900) Contribution from AGGB Chamber 5,000 5,000 - Contribution from City General Fund 5,000 5,000 - Interest Earnings - 850 850 Total Sources $ 389,238 $ 389,188 $ (50) Item 10.b. - Page 12 Page 3 ESTIMATED COSTS FOR FY 2017-18 (CONTINUED) As of February 28, 2018, actual expenses are 32% of budget due to the vacancy of a marketing firm. The AGTBID is expecting to have a marketing firm selected and in place by July 1, 2018. Budget Projected Actual Variance (Projected less Budget) Uses Advertising Advertising 67,000 32,088 (34,912) Consultant Services 32,000 1,500 (30,500) Misc Advertising 10,000 (10,000) Supplies & Services Website Maintenance 7,000 2,845 (4,155) City - administrative 3,000 3,000 - Chamber - Contract administration 17,000 20,000 3,000 Misc. contractual services 13,000 (13,000) Misc. Supplies 2,500 (2,500) Membership & Subscriptions CCTC 500 425 (75) Misc 5,000 (5,000) - Public Relations Sponsorships 55,000 12,000 (43,000) Events 10,000 (10,000) Total Uses $ 222,000 $ 71,858 $ (150,142) Net Sources less Uses $ 167,238 $ 312,330 $ 145,092 Item 10.b. - Page 13 Page 4 PLANS FOR NEXT YEAR Request for Proposals (RFP) for Tourism Marketing Services The AGTBID issued an RFP for tourism marketing services in March 2018 and it is anticipated the City Council will award a contract to the successful firm in June 2018. The selected marketing firm is expected to commence work effective July 1, 2018. The scope of work included: • Development and implementation of a variety of promotional, publicity and advertising programs, and informational materials; • Development of an online strategy and reporting method; and • Responsibility for all aspects of the Visit Arroyo Grande website, content management system (CMS) and related hosting. Visit SLO Cal Co-Op For 2018-2019, the AGTBID has a unique opportunity to utilize a partnership with Visit SLO Cal to promote tourism activities through its existing marketing channels and communications strategies. Visit SLO Cal is a successful, established tourism organization with active marketing campaigns promoting tourism throughout the County of San Luis Obispo. Visit SLO Cal has offered the AGTBID an opportunity to join their marketing efforts to increase awareness of and travel to Arroyo Grande. Through this co-op, the AGTBID will be able to reach more potential tourists to visit and stay in Arroyo Grande. Item 10.b. - Page 14 Jocelyn Brennan | President | CEO | Arroyo Grande & Grover Beach Chamber of Commerce jocelyn@aggbchamber.com | C: (805) 748-7630 | O: (805) 489-1488 |aggbchamber.com In 2011, the City of Arroyo Grande formed a Tourism Business Improvement District (AGTBID). The AGTBID Board of Directors operates as a destination marketing organization under the name of Visit Arroyo Grande. Spearheaded by Arroyo Grande hoteliers, Visit Arroyo Grande is comprised of nine (9) hotels and seven (7) vacation rental/home stays. It is governed by a Board of Directors representing the diverse make-up of the Arroyo Grande hospitality industry. The purpose of the AGTBID is to promote the scenic, recreational, cultural and other attractions in the district (the City of Arroyo Grande) as a tourist destination for the benefit of lodging operators. The Arroyo Grande & Grover Beach Chamber of Commerce currently administers the Arroyo Grande Tourism Business Improvement District. This is an important role as the members who serve the board are volunteers, and the AGTBID administrator provides all support services needed for board meetings, committee meetings, local fund applications and any organizational leadership needed to complete the mission of the AGTBID successfully. Additionally, due to Brown Act requirements, the administrator is the key point of communication with the Board, its individual members, committee members and the public at large. In 2018 the AGTBID has taken on a more proactive role to more successfully market Arroyo Grande. As the TBID has become more proactive and engaged the Chambers role in administering the TBID has been impacted. The Chamber is requesting increased funding from the TBID in order to ensure a successful transition of the new marketing firm selected. The Chamber is requesting $30,000 annually to administer the Arroyo Grande Tourism Business Improvement District. This is a $12,500 increase. The increased funding will be used for a dedicated person at the Chamber to administer the daily functions of AGTBID, manage the AGTBID Board, manage Social Media platforms for Visit Arroyo Grande and to work directly with marketing firm. See scope of work. Recent Activities: January 2018 The TBID Board increased its membership from three to nine members and began to meet monthly including two additional special meetings. The Chamber began participating in the Arroyo Grande seat on the Visit SLO Cal Tourism Marketing Board. This includes attending monthly meetings and the annual meeting. ATTACHMENT 2 Item 10.b. - Page 15 Jocelyn Brennan | President | CEO | Arroyo Grande & Grover Beach Chamber of Commerce jocelyn@aggbchamber.com | C: (805) 748-7630 | O: (805) 489-1488 |aggbchamber.com February 2018 The Vice President of Marketing for Visit SLO Cal spoke to the Arroyo Grande TBID. For 2018-2019, the AGTBID has a unique opportunity to utilize a partnership with Visit SLO Cal to promote tourism activities through its existing marketing channels and communications strategies. Visit SLO Cal is a successful, established tourism organization with active marketing campaigns promoting tourism throughout the County of San Luis Obispo. Visit SLO Cal has offered the AGTBID an opportunity to join their marketing efforts to increase awareness of and travel to Arroyo Grande. Through this co-op, the AGTBID will be able to reach more potential tourists to visit and stay in Arroyo Grande. The TBID Board attended Brown Act training. March 2018 The Chamber co-hosted with the San Luis Obispo County Film Commission, filmmakers and location scouts on a tour of Arroyo Grande. The TBID issued a Request for Proposals (RFP) for tourism marketing services, it is anticipated the City Council will award a contract to the successful firm in June 12, 2018. The selected marketing firm is expected to commence work effective July 1, 2018. April 2018 The Chamber began working with Cal Poly’s Experiential Marketing Department to promote Arroyo Grande. The TBID formed an Ad Hoc Subcommittee to review 13 proposals submitted. May 2018 AGTBID Board members submit Form 700. Four of the top candidates selected will present to the TBID. The TBID will select the top candidates as a recommendation to the Arroyo Grande City Council. Services for Arroyo Grande Tourism Business Improvement District (AGTBID) Administration Scope of Work • Attend AGTBID monthly meetings • Communicate upcoming agenda items with AGTBID Board Members and Marketing Firm • Ensure AGTBID Board quorum for future meetings • Provide draft agenda and supporting documents for AGTBID meetings to City Clerk Item 10.b. - Page 16 Jocelyn Brennan | President | CEO | Arroyo Grande & Grover Beach Chamber of Commerce jocelyn@aggbchamber.com | C: (805) 748-7630 | O: (805) 489-1488 |aggbchamber.com • Provide draft minutes of AGTBID meetings to City Clerk • Provide copies of the agenda for the AGTBID Board members • Ensure compliance with Brown Act • Ensure compliance of the Public Records Act • Host AGTBID meetings and post agenda for public at meeting location 72 hours in advance • Ensure TBID Board Members 700 Forms are current • Ensure AGTBID is complaint with the city’s conflict of interest policy • Attend all subcommittee meetings • Schedule and attend all Special AGTBID meetings • Provide draft agenda and minutes related to any AGTBID Special Meetings • Outreach to lodging owners in the AGTBID District • Schedule annual election of Chair and Vice Chair • Work to fill any board vacancies • Attend monthly Visit SLO Cal Tourism Marketing monthly meetings • Attend Central Coast Tourism Council meetings • Communicate with TBID Board on ongoing tourism training and educational opportunities • Communicate with TBID Board and Marketing Firm on event sponsorship opportunities • Oversee/Supervise monthly financials • Process monthly TBID invoices for TBID fund expenditures • Provide community calendar events to Marketing Firm for tourism marketing purposes • Provide photos and other content to Marketing Firm for website and social media purposes • Attend travel tradeshows and events as directed by the AGTBID and in collaboration with the Marketing Firm • Ensure quarterly reporting by Marketing Firm to lodging owners and City Council Item 10.b. - Page 17 Jocelyn Brennan | President | CEO | Arroyo Grande & Grover Beach Chamber of Commerce jocelyn@aggbchamber.com | C: (805) 748-7630 | O: (805) 489-1488 |aggbchamber.com • Communicate with city council liaison to the AGTBID • Attend City Council meetings to answer questions when AGTBID items are included on the agenda • Oversee generation of the AGTBID Annual Report Item 10.b. - Page 18 AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT, is made and effective as of ILL. 2013, between the Arroyo Grande & Grover Beach Chamber of Comm: ("Chamber"), and the CITY OF ARROYO GRANDE, a Municipal Corporation ("City . In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on er, i. . 2013 and shall remain and continue in effect until terminated pursuant • i - previsions of this Agreement. 2. SERVICES Chamber shall perform the tasks described and comply with all terms and provisions set forth in Exhibit "A", attached hereto'and" incorporated herein by this reference. 3. PERFORMANCE Chamber shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Chamber shall employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Chamber hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION City's City Manager shall represent City in all matters pertaining to the administration of this Agreement. Chamber's Executive Director shall represent Chamber in all matters pertaining to the administration of this Agreement. 5. PAYMENT The City agrees to pay the Chamber in accordance with the payment rates and terms set forth in Exhibit "B", attached hereto and incorporated herein by this reference. 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Chamber at least ten (10) days prior written notice. Upon receipt of said notice, the Chamber shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. Page 1 ATTACHMENT 3 Item 10.b. - Page 19 b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Chamber the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Chamber will submit an invoice to the City pursuant to Section 5. 7. TERMINATION ON OCCURRENCE OF STATED EVENTS This Agreement shall terminate automatically on the occurrence of any of the following events: a) Bankruptcy or insolvency of any party; b) Sale of Chamber's business; or c) Assignment of this Agreement by Chamber without the consent of City. d) End of the Agreement term specified in Section.1. 8. DEFAULT OF CONSULTANT a) The Chamber's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Chamber is in default for cause under the terms of this Agreement, City shall have no obligation of duty to continue compensating Chamber for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Chamber. If such failure by the Chamber to make progress in the performance of work.hereunder arises out of causes beyond the Chamber's control, and without fault or negligence of the Chamber, it shall not be considered a default. b) If the City Manager or his/her delegate determines that the Chamber is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Chamber a written-notice of the default. The Chamber shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Chamber fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 9. LAWS TO BE OBSERVED. Chamber shall: a) Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to be performed by Chamber under this Agreement; b) Keep itself fully informed of all existing and' proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Agreement, any . materials used in Chamber's Page 2 Item 10.b. - Page 20 performance under this Agreement, or the conduct of the services under this Agreement; c) At all times observe and comply with, and cause all of its employees to observe and comply with all of said laws, ordinances, regulations, orders, and decrees mentioned above; d) Immediately report to the City's Contract Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications, or provisions of this Agreement. e) The City, and its officers, agents and ern' ployees, shall not be liable at law or in equity occasioned by failure of the Chamber to comply with this Section. 10. OWNERSHIP OF DOCUMENTS a) Chamber shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Chamber shall maintain adequate records of services provided in sufficient detail to permif an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Chamber shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City.to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings; and activities _related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Chamber. With respect to computer files, Chamber shall make available to the City, at the Chamber's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 11. INDEMNIFICATION FOR PROFESSIONAL' _ LIABILITY. Notwithstanding anything herein to the contrary, to the fullest extent permitted by law for all design professional services arising under this Agreement, Chamber shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents from and against any and all losses, liabilities, damages, costs and expenses, including Page 3 Item 10.b. - Page 21 attorney's fees and costs which arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Chamber. 12. INSURANCE Chamber shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "C" attached hereto and incorporated herein as though set forth in full. 13. INDEPENDENT CONSULTANT a) Chamber is and shall at all times remain as to the City a wholly independent Chamber. The personnel performing the services under this Agreement on behalf of Chamber shall at all times be under Chamber's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Chamber or any of Chamber's officers, employees, or agents, except as set forth in this Agreement. Chamber shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Chamber shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. b) No employee benefits shall be available to Chamber in connection with performance of this Agreement. Except for the fees paid to Chamber as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Chamber for performing services hereunder for City. City shall not be liable for compensation or indemnification to Chamber for injury or sickness arising out of performing services hereunder. 14. UNDUE INFLUENCE Chamber declares and warrants that no undue influence or pressure was or is used against or in concert with any officer or employee'of the City of Arroyo Grande in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Arroyo Grande will receive compensation, directly or indirectly, from Chamber, or from any officer, employee or agent of Chamber, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 15. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, Page 4 Item 10.b. - Page 22 in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement. 16. RELEASE OF INFORMATION/CONFLICTS OF INTEREST a) All information gained by Chamber in performance of this Agreement shall be considered confidential and shall not be released by Chamber without City's prior written authorization. Chamber, its officers, employees, agents, or subContractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Chamber gives City notice of such court order or subpoena. b) Chamber shall promptly notify City should Chamber, its officers, employees, agents, or subContractors be served with any summons, complaint, subpoena, notice of deposition, request for docurherits, interrogatories,' bequest for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Chamber and/or be present at any deposition, hearing, or similar proceeding. Chamber agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Chamber. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. c) Chamber covenants that neither he/she nor any officer or principal of their firm have any interest in, or shall acquire any interest, directly or.indirectly, which will conflict in any manner or degree with the performance of their services hereunder. Chamber further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an office, employee, agent, or subContractor. Chamber further covenants that Chamber has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area and further covenants and agrees that Chamber and/or its subContractors shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City or the study area prior to the completion of the work under this Agreement. 17. NOTICES Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Page 5 Item 10.b. - Page 23 Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: To City: City of Arroyo Grande Steven Adams City Manager 300 E. Branch Street Arroyo Grande, CA 93420 To Chamber: Arroyo Grande & Grover Beach Chamber of Commerce Judith Bean Executive Director 800 W. Branch Street Arroyo Grande, CA 93420 18. ASSIGNMENT The Chamber shall not assign the performance of this Agreement, nor any part thereof, without the prior written consent of the City. 19. GOVERNING LAW The City and Chamber understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the superior or federal district court with jurisdiction over the City of Arroyo Grande. 20. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 21. TIME City and Chamber agree that time is of the essence in this Agreement. Page 6 Item 10.b. - Page 24 22. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL Chamber is bound by the contents of the City's Request for Proposal, Exhibit "D", attached hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Chamber, Exhibit "E", attached hereto and incorporated herein by this reference. In the event of conflict, the requirements of City's Request for Proposals and this Agreement shall take precedence over those contained in the Chambers proposals. 23. CONSTRUCTION The parties agree that each has had an opportunity to have their counsel review this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. The captions of the sections are for convenience and reference only, and are not intended to be construed to define or limit the provisions to which they rage? 24. AMENDMENTS Amendments to this Agreement shall be in writing and shall be made only with the mutual written consent of all of the parties to this Agreement. 25. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Chamber warrants and represents that he/she has the authority to execute this Agreement on behalf of the Chamber and has the authority to bind Chamber to the performance of its obligations hereunder. Page 7 Item 10.b. - Page 25 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF ARROYO GRANDE CHAMBER OF COMMERCE By: By l , t r% Steven Adams, City Manager IF Its: Jw4A CLy.. Attest:Title) C ' n.Kelly tmore, City Cie im Approved As To Form: Tim y J. Ca i ttorney L . Page 8 Item 10.b. - Page 26 EXHIBIT A SCOPE OF WORK The Chamber will: 1. Coordinate Arroyo Grande Tourism Business Improvement District (AGTBID) Advisory Board and Tourism and Marketing Committee meetings, as well as requests from other organizations; 2. Develop a specific marketing plan for TBID Advisory Board approval and make changes to add new components as directed by the TBID Advisory Board; 3. Provide written recommendations to the TBID Advisory Board and coordinate outside presentations; 4. Manage marketing consultants and contractors to ensure timelines and deliverables are met; 5. Manage social media postings and website updates; 6. Monitor and provide data gathered through digital marketing to the TBID Advisory Board; 7. Handle all tourism inquiries, including website, phone and walk-in; 8. Manage fulfillment of any contracts funded by the TBID; 9. Coordinate payments for services; 10. Participate in tourism industry specific meetings as Arroyo Grande's representative, including, but not limited to, CCTC, VCB, tradeshows, and seminars; 11. Provide and edit submitted content for social media and website and coordinate webinars for training other contributors; and 12. Provide "vistarroyogrande" urls for use by the TBID. Page 9 Item 10.b. - Page 27 EXHIBIT B PAYMENT SCHEDULE City shall pay Chamber a total annual sum of thirteen thousand dollars ($13,000.00) for services set forth in Exhibit B, Scope of Work. Chamber shall invoice City on a quarterly basis for a total of four equal payments of three thousand, two hundred and fifty dollars ($3,250.00). if?1 ann. t t"',- Page 10 Item 10.b. - Page 28 EXHIBIT C INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of the Work, Chamber will maintain insurance in conformance with the requirements set forth below. Chamber will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Chamber agrees to amend, supplement or endorse the existing coverage to do so. Chamber acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City. wSt. Chamber shall provide the following types and amounts of insurance: Commercial General. Liabilrty`'}iiiarance using insurance Services Office "Commercial General Liability" policy fronitiG'0.0 01 or the exact equivalent. Defense costs must be hpaidinadditiontolimits. Thereall be no cross liability exclusion for claims or suits by one insured against another:'i imits are subject to review but in no event less than 1,000,000 per occurrence. Business Auto Coverage on1180 Business Auto Coverage from CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. if Chamber owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Chamber or Chamber's employees will use personal autos in any way on this project, Chamber shall provide evidence of personal auto liability coverage for each such persop., Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease. Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state lCalifornia and with an A.M. Bests rating of A- or better and a minimum financial size VII. General conditions pertaining to provision of insurance coverage by Chamber. Chamber and City agree to the following with respect to insurance provided by Chamber: 1. Chamber agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials employees Page 11 Item 10.b. - Page 29 and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Chamber also agrees to require all Chambers, and subContractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Chamber, or Chamber's employees, or agents, from waiving the right of subrogation prior to a loss. Chamber agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Chambers and subContractors to do likewise. 3. All insurance coverage and limits provided by Chamber and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the applicatiori`of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any'liriting endorsement of any kind that has not been first submitted to City and approved'o _ n in writing. Char. 5. No liability policy'Shab contain any provision or definition that would serve to eliminate so-called "third pa`r'ty'action over" claims, including any exclusion for bodily injury to an employee of the insured or of any Chamber or subcontractor. 6. All coverage typesind limits required are subject to approval, modification and additional requirements by.the City, as the need arises. Chamber shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Chamber's general liability policy, shall be delivered to City at or prior to the execution of this.Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Chamber or deducted frdm sums due Chamber, at City option. 8. Certificate(s) are"to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Chamber agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Chamber or any subContractor, is intended to Page 12 Item 10.b. - Page 30 apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City. 10. Chamber agrees ;to ensure that subContractors, and any other party involved with the project who-is brought onto or involved in the project by Chamber, provide the same minimum insurance coverage required of Chamber. Chamber agrees to monitor and review all such..coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Chamber agrees that upon request, all'agreements with subContractors and others engaged in the project will be submitted to City for review. 11. Chamber agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Chamber, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Chamber's existing coverage includes a deductible or self-insured.neten'tion, the deductible or self-insured retention must be declared to the City. At the time"ttie City shall review options with the Chamber, which may include reduction or eliriiination of the deductible or self-insured retention, substitution of other coverage;,or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Chamber ninety (90) days advance written notice...of:such change. If such change results in substantial additional cost to the Chamber, the City will negotiate additional compensation proportional to the increase benefit to City. 13. For purposes of.applying insurance coverage only, this Agreement will be deemed to have been executed..immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Chamber acknowledges and agrees that any actual or alleged failure on the part of City to inform Chamber of non-compliance with any insurance requirements in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other.regard. 15. Chamber will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is ,not effective until City executes a written statement to that effect. 16. Chamber shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Page 13 Item 10.b. - Page 31 Chamber's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Chamber under this agreement. Chamber expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage nor 44-Il`y provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any paityor insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct 1 '1 from any other provision in this'agreement and are intended by the parties here to be interpreted as such. lop-- 20, The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions-of this Section. 21. Chamber agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Chamber for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City.foc payment of premiums or other amounts with respect thereto. 22. Chamber agrees`to provide immediate notice to City of any claim or loss against Chamber arising out a the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. orr Page 14 Item 10.b. - Page 32