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CC 2022-06-14_11a TBID Marketing Contract_PP Presentation Consideration of Proposals for Tourism Marketing Services for the Arroyo Grande Tourism Business Improvement District, Selection of a Marketing Firm, and Approval of an Agreement for Consultant Services 6/14/2022 1 Arroyo Grande Tourism Business Improvement District (TBID) formed in 2013 Purpose: To provide revenue to defray the costs of services, activities, and programs promoting lodging businesses in the TBID through the promotion of scenic, recreational, cultural and other attractions in the TBID as a tourist destination Funded through a 2% tax on transient occupancy rentals (e.g. hotels, motels, vacation rentals) Process dictated by the Parking and Improvement Law of 1989, the Streets and Highways Code, and the Arroyo Grande Municipal Code 6/14/2022 Background 2 June 2018 - Contract approved with Verdin Marketing to provide tourism marketing services to the TBID Selected following presentations to the City Council on June 12, 2018 Will expire on June 30, 2022 Current costs – not to exceed $166,500 RFP issued in April 2022 for tourism marketing services for the TBID Five firms submitted proposals 6/14/2022 Background 3 May 23, 2022 - TBID Advisory Board reviewed proposals Selected two firms to interview – Madison Strategies & Kassandra Maher Marketing Verdin Marketing May 31, 2022 – TBID Advisory Board conducted interviews of the two selected firms Did not reach a majority decision to recommend one of the firms for approval by the City Council 6/14/2022 Background 4 Fiscal Year 2022-23 Budget Proposed for adoption as Item 8.g. Allocates $225,000 for marketing services (of $293,000 total operating budget) Increase of $58,500 above FY2021-22 budget for marketing services for $18,500 to improve the Visit Arroyo Grande website; $5,000 for photos/video assets; $20,500 for advertising hard costs; and $14,500 for consultant services Revised Scopes of Work and Cost Estimates from the two firms provided to reflect increased budget for FY 2022-23 6/14/2022 Background 5 1) Review proposals received from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing for AGTBID tourism marketing services; 2) Select a marketing firm; and 3) Authorize the City Manager to enter into an Agreement for Consultant Services in an amount not to exceed the approved budget amount in a form approved by the City Attorney. 6/14/2022 Recommended Action 6 Flip a coin to determine which firm will present first Hear presentations from each firm Provide each firm with additional time for a rebuttal/response Council questions of the two firms Public Comment Deliberations Action 6/14/2022 Recommended Process 7