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CC 2018-06-12_11b Proposals_AGTBID Tourism Marketing ServicesMEMORANDUM TO: CITY COUNCIL FROM: JIM BERGMAN, CITY MANAGER BY: JESSICA MATSON, EXECUTIVE ASSISTANT/DEPUTY CITY CLERK SUBJECT: CONSIDERATION OF PROPOSALS FOR TOURISM MARKETING SERVICES, SELECTION OF A MARKETING FIRM, AND APPROVAL OF AN AGREEMENT FOR CONSULTANT SERVICES DATE: JUNE 12, 2018 SUMMARY OF ACTION: Review and selection of a marketing firm and approval of an agreement for tourism marketing services for the Arroyo Grande Tourism Business Improvement District. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The cost of the agreement for tourism marketing services is not to exceed $165,000 and will be paid from the Fiscal Year 2018-19 AGTBID budget. The AGTBID currently has a fund balance of over $275,000 and FY 2018-19 revenues are expected to generate $195,000 to support marketing efforts. The agreement will continue to be managed by the Arroyo Grande-Grover Beach Chamber of Commerce. There will be minimal impact on City staff related to preparation and posting of the monthly AGTBID agenda, as well as processing payments for AGTBID activity. RECOMMENDATION: It is recommended the City Council: 1) Review proposals received from Catalyst Marketing Company 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 $165,000 in a form approved by the City Attorney. BACKGROUND: The AGTBID was formed in 2013 to provide revenue to defray the costs of services, activities and programs promoting lodging businesses in the City through the promotion of scenic, recreational, cultural and other attractions. The approved AGTBID budget allocates a certain amount of funding toward marketing activities or the development of marketing activities. The City has contracted with a professional firm for print, web, social media and email marketing since inception of the AGTBID. The AGTBID Advisory Board has requested a fresh perspective and innovative ideas given the current economic climate and needs of Arroyo Grande’s tourism market. Item 11.b. - Page 1 CITY COUNCIL CONSIDERATION OF PROPOSALS FOR TOURISM MARKETING SERVICES, SELECTION OF A MARKETING FIRM, AND APPROVAL OF AN AGREEMENT FOR CONSULTANT SERVICES JUNE 12, 2018 PAGE 2 On March 28, 2018, a Request for Proposals (RFP) for tourism marketing services was issued and thirteen (13) responses were received by the filing deadline. The AGTBID Advisory Board created a subcommittee to review the proposals and four (4) were selected for review by the full Board. After receiving presentations from the four firms, the Board recommended two (2) firms, Catalyst Marketing Company and Verdin Marketing, for consideration by the City Council. ANALYSIS OF ISSUES: The City is seeking professional full-service integrated marketing, digital marketing, communications, and online media, website, and website maintenance services to aid in promoting lodging businesses within the AGTBID through the marketing of scenic, recreational, cultural and other attractions in Arroyo Grande as a tourist destination. The proposed scope of work includes: - 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. With this scope of work in mind, Catalyst Marketing Company proposed a total budget of $165,000 and Verdin Marketing proposed a total budget of $195,000. During Verdin Marketing’s presentation to the AGTBID Advisory Board, they presented a revised budget of $165,000. The intention of the marketing program is to increase tourism to the area, which in turn will increase lodging occupancy in the City. The proposed agreement for tourism marketing services would be for a one-year period with the City’s option to extend the agreement for an additional year upon mutual consent of the parties. Representatives from Catalyst Marketing Company and Verdin Marketing will provide a brief presentation of their proposals and be available to answer questions from Council. ALTERNATIVES: The following alternatives are presented for the City Council's consideration: 1. Review proposals from Catalyst Marketing Company and Verdin Marketing, select a firm and authorize the City Manager to execute an agreement in an amount not to exceed $165,000; or 2. Provide other direction to staff. Item 11.b. - Page 2 CITY COUNCIL CONSIDERATION OF PROPOSALS FOR TOURISM MARKETING SERVICES, SELECTION OF A MARKETING FIRM, AND APPROVAL OF AN AGREEMENT FOR CONSULTANT SERVICES JUNE 12, 2018 PAGE 3 ADVANTAGES: Selection of a marketing firm will enable the AGTBID Board to continue moving forward in the process for implementing a comprehensive tourism marketing program, which will help increase local hotel stays, accomplish the goals of the AGTBID, improve the local economy, and demonstrate results to the lodging businesses. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: At the time the report was prepared, there were two letters received regarding the selection of a marketing firm for the AGTBID. (Attachment 3). The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Catalyst Marketing Executive Summary 2. Verdin Marketing Executive Summary 3. Correspondence Item 11.b. - Page 3 REQUEST FOR PROPOSAL MARKETING COMMUNICATIONS, WEBSITE MANAGEMENT & SOCIAL MEDIA PRESENTED BY ATTACHMENT 1 Item 11.b. - Page 4 Fresno · Costa Mesa · Honolulu | teamcatalyst.com April 30, 2018 Ms. Jocelyn Brennan AGGB Chamber of Commerce 800A W. Branch Street Arroyo Grande, CA 93420 Dear Jocelyn, Thank you for the opportunity to respond to your Proposal Request, and to share Catalyst’s travel and tourism experience and expertise. Today’s travel and tourism marketing has changed as you well know. Today’s traveler is considerably more well-informed, tech-savvy and searching for a deeper, richer experience. They have more options, are bombarded with travel messages constantly, and have become smart. It takes a whole new marketing approach to reach and persuade them. We think Arroyo Grande is among the most unique and charming destinations in California with excellent potential for growth. Our proposal reflects this optimism and outlines our strategy, our unique approach to targeting, sophisticated media targeting and budget management. Our digital and traditional media plan and our social media discussions present not only our thinking about these media in today’s environment but offer key insights into the Arroyo Grande potential traveler. Our proposal presents our thoughts on promotional partnerships, co-op efforts to engage merchants, add value to visitors, and offers new ideas for targeting social media beyond traditional organic posts. We demonstrate how we can create and integrate a multi-faceted campaign in today’s highly competitive environment across key media channels. We have assigned our most experienced team of travel professionals to the Arroyo Grande account, managed by agency veteran, Vern Crow. Vern and his seasoned account team will bring decades of vital destination and travel experience to bear for Arroyo Grande. Catalyst is presenting a different approach to your budget which will stretch the Arroyo Grande dollar further. We are recommending a modest all-inclusive fee agreement, that will allow the agency to present most all services outlined in your RFP without fluctuations in fee, as pass along hard-cost buyouts, exclusive of media, to Arroyo Grande at net (no markups). With exciting creative and a media plan already well underway, we’ll be able to hit the ground running. We look forward to the next steps, including an in-person presentation to expand on our creative ideas and capabilities. Please let us know if you need any additional information. Sincerely, Mark Astone CEO Catalyst Marketing Company 1466 Van Ness Avenue, Fresno, CA 93721 559-906-9960 mastone@teamcatalyst.com i Item 11.b. - Page 5 PROPOSAL FOR MARKETING, COMMUNICATIONS, WEBSITE MANAGEMENT AND SOCIAL MEDIAPRESENTED TO THE CITY OF ARROYO GRANDE, CAApril 30, 2018ATTACHMENT 2Item 11.b. - Page 6 3© 2018 by VerdinCOOKIE CUTTER STRATEGIES DON’T DIFFERENTIATE DESTINATIONS.Destination marketing is all about the right message to the right person at the right time. And that happens through customized strategy and dedicated effort.At Verdin, we thrive on the challenge of identifying the unique and essential elements of a destination, and sharing them in a way that meets the desires of its target audiences.Based on the Central Coast of California, Verdin is a full-service marketing agency established in 2003 that has grown to a national-award winning firm of 14 employees with clients throughout the state of California. As founder and president of the firm, I personally have more than 27 years’ experience in marketing and communications.We’re a crackerjack team that’s dedicated to elevating clients to the next level. Verdin is active with Visit California, Central Coast Tourism Council, Visit San Luis Obispo County, the Public Relations Society of America and the American Institute of Graphic Arts. We value the process of learning and exploring new ideas, and of giving back however we can. We’re also DBE (Disadvantaged Business Enterprise) certified through the Department of Transportation.Tourism is one of our two key industries, and we love tracking the twists, turns and trends of destination marketing. On page 22, you’ll find the proprietary approach that helps us develop tailored strategies for our destination clients.We would love to be your branding partner, working with you to tell the unique story of Arroyo Grande. Thank you for this opportunity.Sincerely, Mary Verdin President & Chief Strategy Officer mary@verdinmarketing.comVerdin Marketing Ink Co. DBE Firm No. 42625 3580 Sacramento Dr. #110 San Luis Obispo, CA 93401 (805) 541-9005+Item 11.b. - Page 7 1 From: montisa1@ Sent: Wednesday, June 6, 2018 4:20 PM To: Jim Bergman Subject: Letter of Support - Verdin Marketing Dear Mr. Bergman,   As a lifelong resident, I care deeply about my community.  I was very pleased to hear that Verdin Marketing  was a finalist in the RFP process to work with the Arroyo Grande TBID.  Unfortunately, I am unable to attend  the City Council meeting on June 12th, but wanted to send a letter of support for Verdin Marketing.    As the Vice President of Philanthropy for Arroyo Grande Community Hospital, I have had the pleasure of  working with Verdin Marketing for the past five years.  Verdin Marketing is an extremely responsive,  professional and highly creative agency.  I am currently contracted with them to assist with the strategic  marketing needed to complete a $6.5 million dollar philanthropic campaign.  I would highly recommend their  services.   Please share this letter of support with the Mayor and City Council Members before and at the meeting.    Thank you,   Montisa Phelan Lopez  Arroyo Grande, Ca 93420  The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email or phone and delete the message. Please note that email correspondence with the City of Arroyo Grande, along with attachments, may be subject to the California Public Records Act, and therefore may be subject to disclosure unless otherwise exempt by law. ATTACHMENT 3 Item 11.b. - Page 8 June 7, 2018 Honorable Mayor Hill and Arroyo Grande City Council Members: It is my pleasure to personally endorse Verdin as a destination-marketing partner and recommend that you award the AGTBID contract to them at your meeting on June 12, 2018. Before we worked with Verdin, the brand position of Visit Atascadero was not an accurate representation of what was special about our town, and did not resonate with either locals or visitors. We engaged in strategic planning with the Coraggio Group to identify our goals and outline a plan. At that time we hired Verdin as our marketing partner. I had first met the Verdin team when I chaired a SLOCOG committee for their rebrand. I was very impressed with their ability to work with a diverse group with strong opinions, and have continued to be impressed with their collaboration to position Visit Atascadero in a way that is both accurate and effective. The Verdin team understands that different stakeholders have different priorities, and they navigate this dynamic very thoughtfully. The Visit Atascadero brand represents our town – it’s friendly, charming and nostalgic. Verdin knows how to extract unique aspects of this brand message so that it resonates with both locals and those outside of SLO County. The strategic nature of this positioning meets the goals of City Council as well as our TBID. In our first year working with Verdin, we saw a 38% year over year increase in TOT, compared to an average of 5.85% for the rest of SLO County. This does include the opening of one new hotel property, but even taking that into consideration Atascadero far out-performed the other areas of the county. The numbers continue to climb and last year we achieved a 7.66% increase in TOT last year, compared to the county average of 2.67%. Along with earning several prestigious marketing awards, Visit Atascadero was just named 2018 Tourism Champion by Visit SLO CAL, a tremendous honor for a small town that used to be seen as a bedroom community. The team members at Verdin are good listeners, responsive and, because they are local, they have a deeper understanding of Atascadero as a destination and how we fit together with the region as a whole. Verdin is a team that will champion your destination and goals, and I could not recommend them more highly. Please contact me with any questions. Sincerely, Tom O’Malley Proprietor, Portola Inn Member & Former Chair, Atascadero TBID Item 11.b. - Page 9 THIS PAGE INTENTIONALLY LEFT BLANK Item 11.b. - Page 10