CC 2020-05-12_08f Amendment_Verdin Marketing_Tourism Marketing Services
MEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, ACTING CITY MANAGER
BY: JESSICA MATSON, DEPUTY CITY CLERK
SUBJECT: CONSIDERATION OF AN AMENDMENT TO THE CONSULTANT
SERVICES AGREEMENT WITH VERDIN MARKETING FOR TOURISM
MARKETING SERVICES
DATE: MAY 12, 2020
SUMMARY OF ACTION:
Approval of a First Amendment to Consultant Services Agreement with Verdin Marketing
to extend the term of the agreement by two years and increase the agreement payment
amount for continued tourism marketing services for the Arroyo Grande Tourism
Business Improvement District (AGTBID).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
An increase of $1,500 is anticipated for the Amendment to cover additional tourism
marketing costs. This increase would be reflected in the proposed FY2020-21 AGTBID
Budget.
RECOMMENDATION:
It is recommended the City Council approve and authorize the Mayor to execute the
Amendment to the Consultant Services Agreement with Verdin Marketing to extend the
term of the agreement to June 30, 2022, and increase the agreement amount to
$166,500 per year.
BACKGROUND:
The Arroyo Grande Tourism Business Improvement District (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 towards marketing activities, or the development of marketing activities. The
City has contracted with a professional marketing firm for print, web, social media, and
email marketing since the inception of the AGTBID.
Item 8.f. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AMENDMENT TO THE CONSULTANT SERVICES
AGREEMENT WITH VERDIN MARKETING FOR TOURISM MARKETING SERVICES
MAY 12, 2020
PAGE 2
On March 28, 2018, a Request for Proposals (RFP) for tourism marketing services was
issued. On June 12, 2018 City Council approved an agreement with Verdin Marketing
for an amount not to exceed $165,000 for Fiscal Year 2018-2019. During Fiscal Year
2019-2020, pursuant to the terms of the agreement, the City exercised its option to
extend the agreement with Verdin Marketing for one additional year. The current
agreement expires June 30, 2020 (Attachment 1).
ANALYSIS OF ISSUES:
Verdin Marketing has worked with Visit Arroyo Grande since 2018 and their 2019-2020
Annual Report shows significant increases in website views, social media engagement,
digital ad clicks, and e-newsletter openings. Their Annual Report also shows (Transient
Occupancy Tax) TOT increased 13.3% year-over-year (July through December).
On April 20, 2020 Verdin Marketing presented their 2019-2020 annual report to the
AGTBID Board with campaign plans for Spring 2020 and Fall 2020. The spring campaign
was paused due to the COVID-19 pandemic and its impact on tourism. Verdin Marketing
plans to re-allocate those advertising dollars to a recovery campaign after tourism
marketing can resume. If the agreement with Verdin Marketing is extended, the recovery
campaign can continue as planned. Verdin Marketing is also working with Coraggio
Group to develop a strategic plan for Arroyo Grande tourism marketing that will help
guide future promotions and events. Coraggio Group’s Insight Report shows the
feedback from their recent survey of Arroyo Grande stakeholders. (Attachment 3)
To continue the progress made, at its April 27, 2020 regular meeting, the AGTBID
Advisory Board approved a recommendation to the City Council to amend the agreement
with Verdin Marketing for tourism marketing services, extending it for a period of two
years, including an increase to Verdin’s budget in the amount of $1,500 for additional
Visit Arroyo Grande website updates. (Attachment 2)
If approved, an additional $1,500 will be included in the proposed AGTBID Budget for
Fiscal Year 2020-21.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve the First Amendment to Consultant Services Agreement with Verdin
Marketing;
2. Do not approve the First Amendment to Consultant Services Agreement with
Verdin Marketing; or
3. Provide direction to staff.
Item 8.f. - Page 2
CITY COUNCIL
CONSIDERATION OF AN AMENDMENT TO THE CONSULTANT SERVICES
AGREEMENT WITH VERDIN MARKETING FOR TOURISM MARKETING SERVICES
MAY 12, 2020
PAGE 3
ADVANTAGES:
Amending the Agreement will allow Verdin Marketing to continue the progress made to
market Arroyo Grande as a tourist destination. It will also allow the consultant to continue
work with Coraggio Group on tourism strategic planning.
DISADVANTAGES:
Additional funding expenditures of $1,500 are required to complete the task.
ENVIRONMENTAL REVIEW:
In compliance with California Environmental Quality Act (CEQA) the project is
categorically exempt per section 15061(b)(3) of the CEQA Guidelines.
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. At the time of report publication, no comments have
been received.
Attachments:
1. Current Consultant Services Agreement with Verdin Marketing
2. Verdin Marketing’s 2020-21 Proposed TBID Budget
3. Coraggio Group’s Insight Report
Item 8.f. - Page 3
FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT
This First Amendment ("First Amendment") to Consultant Services Agreement
(“CSA”) by and between the CITY OF ARROYO GRANDE (“City”) and VERDIN
MARKETING (“Consultant”) is made and entered into this 12th day of May 2020.
WHEREAS, the parties entered into a CSA dated June 12, 2018, for tourism
marketing services for the Arroyo Grande Tourism Business Improvement District
(AGTBID); and
WHEREAS, on May 29, 2019, pursuant to Section 1 of the CSA, the City extended
the term of the CSA for one (1) additional year; and
WHEREAS, the current CSA expires on June 30, 2020; and
WHEREAS, the parties desire to modify the CSA as set forth herein.
NOW THEREFORE, for valuable consideration the receipt and sufficiency of which
is acknowledged, the parties agree as follows:
1. Section 1 ("TERM") of the Agreement shall be modified in its entirety to read
as follows:
This Agreement shall be extended and remain and continue in effect until June
30, 2022, unless sooner terminated pursuant to the provisions of this
Agreement.
2. Section 5 (“PAYMENT”) of the Agreement shall be modified in its entirety to
read as follows:
Consultant shall be paid for actual work performed in accordance with
Consultant’s Proposal. However, the total compensation paid to Consultant
shall not exceed $166,500 per year.
Consultant will invoice City no more than monthly. Invoice shall be sent to the
Chamber of Commerce Executive Director. Each invoice will reference job
orders, components, specific services, media costs, production costs, fees and
material expense and sales tax where applicable. City shall mail payment to
Consultant for the net amount of uncontested invoices no later than thirty (30)
days after receipt of each invoice by the City. Any past due balances under this
Agreement shall bear interest at the rate of 1.5 percent per month (18.0
percentage rate) on unpaid balances.
3. Except as modified herein, all other terms and conditions set forth in the CSA,
as amended, shall remain unchanged.
Item 8.f. - Page 4
VERDIN MARKETING
AMENDMENT NO. 1
PAGE 2
IN WITNESS WHEREOF, CITY and CONSULTANT have executed this First
Amendment the day and year first above written.
CITY OF ARROYO GRANDE: VERDIN MARKETING:
___________________________ ______________________________
CAREN RAY RUSSOM, MAYOR MARY VERDIN, PRESIDENT
ATTEST:
__________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO FORM:
__________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.f. - Page 5
Attachment 1
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Arroyo Grande TBID - REVISED
Budget: $166,500 | Updated 4/20/20
DETAILED SPENDING Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
DESCRIPTION BUDGET JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL
Marketing Plan $5,000 2,500.00 3,000.00 5,500.00
Planning, Meetings and Reporting $12,000 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00
Creative Development $25,000 2,000.00 2,500.00 2,500.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 25,000.00
Photo/Video Assets $10,000 2,500.00 2,500.00 2,500.00 2,500.00 10,000.00
Public Relations $5,000 1,500.00 1,000.00 1,500.00 1,000.00 5,000.00
Web Updates $6,500 1,500.00 1,500.00 1,500.00 2,000.00 6,500.00
E-Newsletter $12,000 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00
Social Media $18,000 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 18,000.00
Collateral $2,000 1,000.00 1,000.00 2,000.00
Media Planning $6,000 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00
Advertising - Media Hard Costs $64,500 64,500.00 64,500.00
SUMMARY: ACTUAL TO BUDGET
BUDGET JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL
Monthly Totals $166,000 $8,500.00 $15,000.00 $12,500.00 $6,000.00 $6,000.00 $6,000.00 $9,000.00 $12,500.00 $8,500.00 $6,000.00 $6,000.00 $70,500.00 $166,500.00
Adjustments
Actual Totals $166,000 $8,500.00 $15,000.00 $12,500.00 $6,000.00 $6,000.00 $6,000.00 $9,000.00 $12,500.00 $8,500.00 $6,000.00 $6,000.00 $70,500.00 $166,500.00
No Charge/Added Value
Attachment 2
Item 8.f. - Page 72
Coraggio Group
503.493.1452 | coraggiogroup.com
Photo credit: https://www.sellingpismobeach.com
Visit Arroyo Grande
Strategic Planning Insights Report
April 6, 2020
Attachment 3
Item 8.f. - Page 73
2
Approach
Methodology
This report summarizes the data collection and outreach efforts conducted on
behalf of Visit Arroyo Grande as the organization prepares to create its 2023
Strategic Plan. The purpose of this outreach was to stakeholder perception of
the current state of tourism in Arroyo Grande and gain insights on potential
priorities for the organization’s Strategic Plan. This report was developed by
surveying Visit Arroyo Grande stakeholders on the following topics:
This report highlights key themes identified from the survey results. Each
theme is supported by survey data and relevant quotations. These themes
were developed using the following methods:
•Quantitative questions were analyzed using category means,
percentage rates and frequencies.
•Qualitative, open-ended questions were analyzed by assigning themes
influenced by response content and Coraggio’s interpretation of those
responses.
4%
43%
23%
9%
21%
Respondents
Board Member Community Member
Industry Partner/Stakeholder Lodging Owner
Restaurant/Store Owner
•Strategic Guidance
•Destination Brand
•Role Importance and
Effectiveness
•Mission and Leadership
•Tourism Drivers, Assets, and
Experiences
•Tourism Support and Enablers
Item 8.f. - Page 74
3
Key Themes
1.Arroyo Grande is a destination anchored by its food &
beverage opportunities, its access to outdoor recreation,
and its small-town charm positioned between key
metropolitans.
2.Arroyo Grande’s brand is fixed. Focus on quality of
experience is imperative.
3.Visit Arroyo Grande’s role continues to be primarily a
marketing organization purposed with driving brand
awareness through marketing leadership.
4.Events are seen as a key vehicle to driving visitation,
opportunities exist to create and promote an expanded
event portfolio.
5.Collaboration with local organizations and governments
is wanted and necessary to improve the Arroyo Grande
tourism experience; key areas include product
development, small business support, and infrastructure
investment.
6.Limited nightlife, entertainment and retail options
(downtown experiences) are barriers to growing Arroyo
Grande’s tourism economy.
7.Stakeholder and government engagement and
communication is required to generate greater
awareness and support of Visit Arroyo Grande’s efforts.
Item 8.f. - Page 75
4
Arroyo Grande: Current Brand
What THREE words do you believe describe Arroyo Grande's brand as a destination today? What makes Arroyo
Grande a unique destination today?
•Arroyo Grande is seen as a
charming, historic, small town
experience on the Central
Coast of California.
•Its access to quality wine
experiences and off the
beaten path beach
adventures are the
complimentary assets to be
leveraged.
Key Takeaways:
Item 8.f. - Page 76
5
Arroyo Grande: Future Brand
What THREE words would you use to describe Arroyo Grande's brand as a destination in the future? What would
you like Arroyo Grande's brand to be?
•The future brand of Arroyo
Grande looks much like it
does today.
•Its small-town charm,
coupled with quality wine and
access to beach experiences,
are core brand differentiators.
•With a solid brand
foundation, focus becomes
oriented towards brand
awareness.
Key Takeaways:
Item 8.f. - Page 77
6
Strategic Priorities
What do you believe are the THREE greatest strategic opportunities for Arroyo Grande as a destination?
Key Takeaways
Brand Awareness (23 respondents):Many believe the most strategic thing Visit Arroyo
Grande can do is promote the brand, as is.
Food/Wine Tourism (20 respondents):Arroyo Grande is perceived to have quality food and
wine offerings that could serve as a differentiator in its marketing efforts.
Event Marketing/Creation (15 respondents):Events are believed to be a primary tool to
attract visitors to Arroyo Grande. Promoting existing or partnering with stakeholders to create
new events could be key tools in driving awareness and visitor traffic.
Product Development & Business Support (12 respondents):Some stakeholders believe
that a more diverse set of attractions (retail, cultural, etc.) could help better position Arroyo
Grande as a travel destination. Catalyzing this effort lies in the evaluation of favorable, pro-
business regulations that better incentivize entrepreneurship.
Other (5-7 respondents):Sustainability/Stewardship, Transportation Management,
Downtown Activation
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7
Tourism Threats
Using the list below, what do you believe are the top THREE threats facing Arroyo Grande as a
destination?
•Aligning with strategic priorities, AG’s limited brand
awareness is the destination’s #1 threat.
•AG’s perceived lack of nightlife and entertainment also
presents a barrier to growth in tourism, as it is a key
monetizer and asset in any tourism market. Some
mentioned a less than ideal downtown experience as
something that may be supporting this threat.
•California’s affordable housing issues and its perceived
threat to tourism economies are felt in AG as well.
•The destination believed public infrastructure could be
a threat to tourism growth, a common issue among
road trip markets.
•California’s growth and status as America’s top
vacation destination has increased competition among
destinations within the state. Stakeholders believe this
threat could be experience in AG.
•The upcoming/arrived economic downturn is a threat to
all destinations, AG is not immune and stakeholders
are aware.
Key Takeaways
30%30%
28%
23%
21%
19%
16%
0%
5%
10%
15%
20%
25%
30%
35%
Limited Brand
Awareness
Limited
Nightlife &
Entertainment
Affordable
Housing
Insufficient
Public
Infrastructure
Increased
Competition
Economic
Downturns
Insufficient
Destination
Information &
Wayfinding
Top Tourism Threats (+10%)
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8
Arroyo Grande Tourism Offering Rating:
Using the scale below, please rate your perception of the quality of each area of Arroyo Grande's
tourism offering.
2.92
3.36 3.12 3.22
3.77
3.39
2.67
3.53
2.94
1
2
3
4
5
Rating Average Rating
•The AG tourism experience is anchored in its
Food, Wine, and Outdoor recreation
opportunities.
•Middle of the road lodging options, combined
with food & beverage and outdoor recreation
options may position AG as a viable
basecamp to explore the broader central
coast, but work is required.
•Limited nightlife, entertainment, and retail
opportunities may limit the full monetization
potential of tourists in AG.
•Attractions and events, foundational assets
that attract visitation could also use
improvement.
•Destination information is often first point of
contact with a visitor. Ensuring quality
websites and engaging content is key to
conversion.
Key Takeaways:
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9
•Support for AG tourism is middle of the road and
could use improvement across the board.
•Stakeholder and resident support are
foundational elements of a successful tourism
industry and should be a focus.
•Tourism funding could also be improved, but
often correlates to the success of local
marketing campaigns and resulting visitor traffic.
•Improving wayfinding and signage, as well as
visitor information is key in a road trip market
with many competitive alternative visitation
options.
•Government support is the destination’s main
support strength and should be leverage to
improve other support structure areas.
Key Takeaways
3.27
2.52
3.26
3.00 3.09 3.00 3.14
2.91 2.75
1
2
3
4
5
Rating Average Rating
Arroyo Grande Tourism Support Structures
Rate your perception of the quality of each area of Arroyo Grande's tourism support structure.
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10
Visit Arroyo Grande: Organizational Reputation
What THREE words do you believe best describe Visit Arroyo Grande's reputation as organization?
•Visit Arroyo Grande is a
relatively unknown entity in
the community.
•The organization is friendly,
collaborative and passionate
about what they do.
•Opportunities exists to better
establish a vision for the
destination, organize
strategically, and
communicate effectively.
Key Takeaways:
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11
Visit Arroyo Grande’s Mission
Please select your level of agreement with each statement
•Many are not aware of Visit Arroyo
Grande’s mission and purpose, yet it is
seen as critical to a thriving tourism
economy in AG.
•Opportunities exist to better position
the organization as the lead voice of
the industry and communicate a
purpose that rallies stakeholders to a
common vision.
Key Takeaways:
3.13
4.20
3.56
1
2
3
4
5
I feel I have an
understanding of Visit
Arroyo Grande's primary
mission/purpose
Visit Arroyo Grande's
mission/purpose is critical
to a thriving tourism
economy
Visit Arroyo Grande is the
lead voice for the city's
tourism industry
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12
Key Takeaways
Marketing Leadership:Visit Arroyo Grande’s main role and responsibility remains
that of a traditional DMO, to provide destination marketing leadership in order to
drive overnight stays and tax revenues
Stakeholder Collaboration and Inclusion:Continuing to collaborate with local
tourism stakeholders is also seen as a key role. Some believe expanding outreach
to include a broader set of tourism stakeholders could be warranted.
Event Promotion:Events continue to be a focal point of driving visitation. The
creation, support, and promotion of said events is believed to be an opportunity for
Visit Arroyo Grande
Advocacy:Some stakeholders would like to see Visit Arroyo Grande take a
position on the creation pro-business regulations, infrastructure investment, and
product development -all supporting areas of a viable tourism economy
Visit Arroyo Grande Roles and Responsibilities
What THREE roles or responsibilities do you believe Visit Arroyo Grande should focus on
providing to help its tourism stakeholders and support a thriving tourism industry?
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503.493.1452 | coraggiogroup.com
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