HomeMy WebLinkAbout1993-09-21; City Council; 12399; COMMUNITY PROMOTION AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CARLSBAD CHAMBER OF COMMERCE0 : CG Lk. 2
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WY OF CARLSBAD - AGWA BILL ,
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CITY COMMUNITY PROMOTION AGREEMENT BETWEEN
THE CITY OF CARLSBAD AND THE CARLSBAD
AB# fq3f9 TITLE:
MTG.
DEPT.
RECOMMENDED ACTION:
9/21/93
FIN CHAMBER OF COMMERCE CITY
-& Adopt Resolution No. - 4 3 authorizing the Mayor to execute Agreement between the C
and Carlsbad Chamber of Commerce.
ITEM EXPLANATION:
The City's 1993-94 Operating Budget, adopted by the City Council on June 15, 19
contains an allocation of $205,000 for community promotion. This represents a decre
of $10,000, or approximately 5% from the 1992-93 contribution. Staff has worked with
Carlsbad Chamber of Commerce to update the Agreement for the provision of commu
promotion services for the 1993-94 fiscal year. The 1992-93 Agreement was alterec reflect updated 1993-94 compensation figures and no other changes have been made.
The Agreement covers the period from October 1, 1993 through September 30, 1994
is similar to those entered into over the past three years. The table below compares
financial details that have been contained in the Agreements over the past three year
well as those for the forthcoming 1993-94 year. As can be seen, the $118,000 alloc: for Administrative and Operation Costs will remain at the same level in 1993-94 as in two previous years. Program expenses total $87,000 for 1993-94, down $10,000 or I from the 1992-93 budget.
The component figures total $205,000 and reflect the amount designated in the C current 1993-94 budget. The CCVB has presented a budget proposal which includc $225,000 City contribution which would increase their 1993-94 budget by $10,000 approximately 5% over the 1992-93 contribution. Council may wish to change the amc
of funds contributed by the City to the C(=vB. The unrestricted program category wouh
altered should the option to either increase or decrease the total contribution amoun
exercised. This would affect the multi media advertising segment of the promotion prop
CITY CONTRIBUTIONS TO THE CCVB
1990-91 THROUGH 1993-94
1990-91 1991-92 1992-93 1993-94
Admin/Operation Costs (Annual) 95,000 118,000 11 8,000 118,000
Programs:
Unrestricted Program Funds 75,000 82,000 72,000 62,000
Matching Program Funds 55,000 25,000 25,000 25,000
Total Programs 130,000 107,000 97,000 87,000
Total City Contribution $225,000 $225,000 $21 5,000 $205,000
Local Community Promotion* $9,500 $5,000 $7,000 $7,000
* From the amount alloted for Unrestrlcted Program Funds (S62,COO). the
Agreement indicates that this amount be spent on Local Community Promotion.
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a 0 PAGE TWO OF crENDA BILL NO. /a! 3 9 '3
The CCVB has executed this agreement. It is recommended that the City Council review 1
revised agreement and authorize the Mayor to sign by adopting the attached resolutioi
FISCAL IMPACT
Funds totaling $205,000 were appropriated at the time the 1993-94 budget was adopted
June 15, 1993. The City is presently developing a revised budget for 1993-94 wh
includes spending cuts of $1.3 million in the General Fund. Section 17 of the agreem
gives the Council the ability to terminate or reduce funding levels to the CCVB in the ev
of City revenue reductions.
On the other hand, if Council wishes to increase the 11993-94 funding level, st
recommends that the funds be transferred from the Council Contingency account. T
account currently has a balance of $600,000; though the effect on the account from I upcoming budget revision is unknown at this time.
EXHIBlTS
1.
Ab3 Resolution No. q3 authorizing the Mayor to execute an Agreement between 1
City of Carlsbad and the Carlsbad Chamber of Commerce.
Exhibit A - Agreement between the City of Carlsbad and the Carlsbad Chamber
Commerce to promote tourism and provide services to visitors to the City
Carlsbad.
Attachment A - Table showing how City of Carlsbad funds will be allocated witf
the CCVB budget.
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RESOLUTION NO. 9 3 - 2 6 3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO
EXECUTE AN AGREEMENT WITH THE CARLSBAD CHAMBER
OF COMMERCE TO PROVIDE PROFESSIONAL SERVICES
RELATED TO THE PROMOTION OF THE CITY OF CARLSBAD
WHEREAS, the City Council of the City of Carlsbad has determined thz
it is in the best interest of the City to promote tourism and provide services t
visitors to the City; and
WHEREAS, the City Council has further determined that the Carlsba
Chamber of Commerce and its subdivision, the Carlsbad Convention and Visit01
Bureau, possess the necessary skills to provide these services to the City (
Carlsbad; and
WEI, the Carlsbad Chamber of Commerce has agreed to pro&
these services under the terms and conditions of the agreement attached hereti
NOW, THEREFORE BE IT RESOLVED by the City Council of the City I
Carlsbad, California as follows:
1. That the above recitations are true and correct.
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2. That the Mayor is hereby authorized to execute the attachec
agreement, Exhibit Pr, between the City of Carlsbad and the Carlsbad Chambe
of Commerce to provide professional services related to the promotion of the Cit
of Carlsbad.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Cit
day of Council of the City of Carlsbad, California, held on the 2 1 st
SEPTEMBER, 1993, by the following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finni:
NOES: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk)
(SEAL)
A c@ EMENT BETWEEN THE ClTy OF &SBAD
AND THE CARLSBAD CHAMBER OF COMMERCE
TO PROVIDE PROFESSIONAL SERVICES
RELATED TO THE PROMOTION OF THE CITY OF CARLSBAD
EXI-IIBI?
Tt IIS AGREEMENT, made and entered into as of the 23rd day of SEPTEHBER, 19
and effective from October 1, 1993 to September 30, 1994, by and between the CITY
CARLSBAD, a municipal corporation, hereinafter referred to as "City," and the CARLSE
CHAMBER OF COMMERCE, hereinafter referred to as "Chamber".
REClTAL!3
City requires the services necessary for the promotion of the City of Carlsbad; ai
The Chamber possess the necessary skills and qualifications to provide the sen
required by the City.
NOW, THEREFORE, in consideration of these recitals and- the mutual cover
contained herein, the City and Chamber agree as follows:
1. EMPLOYMENT OF SERVICES
The City agrees to engage and the Chamber agrees to perform the services desc
below:
A. Establish, identify, research and develop a strong Identification Pro
for the City of Carlsbad and the Carlsbad Convention and Visitors Bu
Position Carlsbad as a prime destination in Southern California throu;
integrated media and promotional campaign;
Generate awareness of Carlsbad in those geographic regions of the C
States which provide the largest number of visitors to "Southern Cali]
each year;
Increase the awareness of Carlsbad among the members of the
industry including travel agents, corporate travel agents and tour plal
B.
C.
D.
E. Increase the awareness and interest in Carlsbad among visitors to tf
Diego and Los Angeles areas;
F. Esrabll a, a strong public relations caagn designed to provi
e heightened visibility by providing information on Carlsbad in loc
regional and national publications and media;
Operate the Visitor Information Center in the AT&SF Depot seven days I
week except New Year’s Day, Easter, Thanksgiving and Christmas Day
assist visitors to Carlsbad;
Create a division of the Chamber to perform the above functions to
known as the Carlsbad Convention and Visitois Bureau (CCVB);
G.
H.
I. Provide separate accounting for all [ransaclions related to [he operatior
the CCVB; and
J. Develop private funding for advertising co-op programs, cen
reservations fees and other participatory fees to support a full-ti
aggressive touisrn marketing program.
2. COMPENSATION
For the services described above the City will compensate the Chamber in an amc
not to exceed $205,000 to be paid as described below:
A. The total budget for the Chamber shall be $240,000 as show
Attachment A. The City will compensate the Chamber up to $205,00
described below:
Administrative and Operation Costs $118,000
Pro grams 87,000
Total City Contribution $205,000
Payments for administrative and operation costs shall be made tc
Chamber in equal monthly installments by the 15th of each month fo
12 months beginning October 1992 and ending September 1994.
monthly payment will be $9,833.33.
Payments for programs will be released to the Chamber up to a maxi
of $87,000. The disbursement of these funds are broken down intc
categories as follows:
Unrestricted program funds $ 62,000
Matching Program funds 25.000
Total Program Funds $ 87,000
B.
C.
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Unre @ ,cred program funds will be release !B the Chamber as needed
rhe maximum of $62,000. Funds will be released following the Cit receipt of a statement designating which programs funds will be appl
to. Within the unrestricted category, $7,000 is to be spent by
Chamber for local Community Promotion. The Chamber will provide
City a list of community events and activities to which these funds will
applied during the first quarter of this contract. The remaining $SS,C
can be utilized for programs as selected by the Chamber.
Restricted program funds, not to exceed $25,000, will be released to
Chamber on a dollar for dollar basis as matching funds, in the fom cash, are received by the Chamber. Payment: of the program expenses
te released at any time, upon receipt of a list from the Chamber indica
where matching funds came from.
3, INFORMATION AND REPORTS
The Chamber shall provide the City Council with quarterly reports of the activi
the Chamber and CCVB funded under this Agreement. These reports shall be 1
available for the three month periods ended December, March, June and Septe
each year.
4. BUDGET REOUESTS
The Chamber shall submit a budget request in the form required by the City Fin
Management Director by April 30 each year.
5. BUDGET ADOPTION AND CONTROL
The budget for the Chamber for the year ending 9/30/94 shall be as shc
Attachment A attached hereto. The Chamber shall spend funds in accordance wj
plan and shall report as required in Section 4 of this Agreement using the cat
of expense shown in said budget. Transfers may be made from account to acci
a cumulative amount of up to $2,500 without prior approval from the City C
Transfers in excess of this amount shall be submitted to the Council for appr
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R e 6. RECORDS AND I PECTION
The Chamber shall maintain full and accurate records with respect to all mal
covered under this Agreement. The City shall have free access at all times to :
records, and the right to examine and audit the same and to make transc
therefrom, and to inspect all program data, documents, proceedings, and activit
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7. ACCOMP1,ISHMENT OF PROJECT
The Chamber shall commence, carry on, and complete the project with all practic
dispatch, in a sound, economical, and efficient manner in accordance with
provisions thereof and all applicable laws.
8. MATTERS TO BE DISREGARDED
The titles of the several sections, subsections, and paragraphs set forth in this cor
are inserted for convenience of reference only and shall be disregarded in const
or interpreting any of the provisions of this contract.
9. COMPLETENESS OF CONTRACT
This Agreement and any additional or supplementary document or docu1
incorporated herein by specific reference contain all the terms and conditions a
upon by the parties hereto, and no other agreements, oral or otherwise, regardir
subject matter of this contract or any part thereof shall have any validity or bin
of the parties hereto.
10. CITY NOT OBLIGATED TO THIRD PARTIES
The City shall not be obligated or liable hereunder to any party other ths
Chamber.
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11. WHEN RICFITS a REMEDIES NOT WANED 0
[n no event shall the making by the City of any payment to [he Chamber constiru
or be construed as a waiver by the City of any breach of covenant, or any defai
which may then exist, on the part of the Chamber, and the making of any su
payment by the City while any such breach or default shall exist in no way impair
prejudice any right or remedy available to the City in respect to such breach
default.
12. PERSONNEL
The Chamber represents that it has, or will secure at its own expense, all person
required in performing the services under this Agreement. All of the services requii
hereunder will be performed by the Chamber or under its supervision, and
personnel engaged in the work shall be qualified to perform such services.
13. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be suffici
if sent by the parties in the United States mail, postage paid, to the address no
below:
City of Carlsbad
Attn: Finance Director Visitors Bureau
1200 Carlsbad Village Drive Attn: Steve Link
Carlsbad, CA 92008
Carlsbad Chamber of Commerce
5411 Avenida Encinas, Suite 100
Carlsbad, CA 92008
14. NONDlSCRIMINATION CLAUSE
The Chamber shall comply with applicable State and Federal laws regarc
nondiscrimination.
15. OWNERSHIP OF DOCUMENTS
All plans, studies, sketches, drawings, reports and other work products as he
required are the property of the City, whether the work for which they are mad
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expected or not. e ln rhe event this contract is term @ ted, all documents, plan
specifications, drawings, reports and studies shall be delivered forthwith to the Cit
Chamber shall have the right to make one copy of the plans for its records.
16. FAILURE TO PERFORM WORK
In the event of the Chamber's failure to prosecute, deliver or perform the work
provided for in this agreement, the City may suspend or terminate this Agreement i
nonperformance by notifylng the Chamber by certified mail of the suspension
termination of the Agreement. In the event of such suspension or termination, i
Chamber, thereupon, has thirty (30) working days to deliver all documents owned
the City and a11 work in progress as described in Section 15 to the City Finant
Management Director. The City Financial Management Director shall makc
determination of fact based upon the documents delivered to City of the work wk
the Chamber has performed that is usable and of worth to the City in having
Agreement completed, Based upon [he determination as to the portions of tI
completed, the appropriate amount of funding shall be reported to the City Coui
the Council shall determine the portion of payment of the final payment of
Agreement. In no case shall the final payment exceed the guaranteed total maxin
17. TERMINATION OR REDUCTION OF CONTRACT FOR FINANCIAL REASONS
The City reserves the right to terminate or reduce the funding levels outlined ii
agreement in the event of City revenue reductions. Recommended reductions w
reported to the City Council who shall determine the modified funding level.
18. DiSPUTES
If a dispute should arise regarding the performance of work under this Agreemer
foIIowing procedure shall be used to resolve any questions of fact or interpretah
otherwise settled by agreement between parties. Such questions, if they beco
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identified as a par c of a dispute among persons operati @ under the provisions of rh
Agreement, shall be reduced to writing by the principal of the Chamber or the Cir
Financial Management Director. A copy of such documented dispute shall 1
forwarded to both parties involved along with recommended methods of resolutic
which would be of benefit to both parties. The City Financial Management Direct
or principal receiving the letter shalI reply to the letter along with a recommend
method of resolution within ten (10) calendar days. If the resolution thus obtain
is unsatisfactory to the aggrieved party, a letter outlining the dispute shall
forwarded to the City Council for their resolution through the office of the (
Manager. The City Council may then opt to consider the directed solution to
problem. In such cases, the action of the City Council shall be binding upon
parties involved, although nothing in this procedure shall prohibit the parties seek
remedies available to them at law.
19. STATUS OF THE CHAMBER
The Chamber shall perform the services provided for herein in ChambeJs own wa
an independent contractor and in pursuit of Chamber‘s independent calling, and
as an employee of the City. Chamber shall be under control of the City only as t(
result to be accomplished and the personnel assigned to the project, but shall co
with the City as provided for in the request for proposal.
The Chamber is an independent contractor of the City. The payment made t’
Chamber pursuant to this Agreement shall be the full and complete compensati
which the Chamber is entitled pursuant this Agreement. The City shall not mak
federal or state tax withholdings on behalf of the Chamber. The City shall n
required to pay any workers’ compensation insurance on behalf of the Chambei
Chamber agrees to indemnify the City for any tax, retirement contribution, so
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I security, overtime payment, workers’ compensation payment which [he City may 1
required to make on behalf of Chamber payment which the City may be required
make on behalf of Chamber or any employee of Chamber for work done under \\
Agreement.
The Chamber shall be aware of the requirements of the Immigration Reform a
Control Act of 1985 (8 USC Sec. 1101 - 1525) and shall comply with thc
requirements, including, but not limited to, verifying the eligibility for employment
all agents, employees, sub-contractors and Chambers that are included in I
Agreement.
20. ASSIGNMENT OF AGREEMENT
The Chamber or CCVB shall not assign this Agreement or any part of it or any mo
due under it without the prior written consent of the City.
21. PROHTRITED INTEREST
No official of the City who is authorized in such capacity on behalf of the Cit
negotiate, make, accept or approve or take part in negotiating, making, acceptin
approving of any contract or subcontract in connection with the execution of
Agreement shall become directly or indirectly interested personally in this Agree1
or any part thereof. No officer or employee of the City who is authorized in SL
capacity on behalf of the City to exercise any executive, supervisory or other sii
functions in connection with the performance of this Agreement shall become dir
or indirectly interested personally in this Agreement or any part thereof.
22. ENTIRE AGREEMENT
This Agreement is the entire Agreement between the parties and supersedes all
oral or written memoranda, understands or agreement or conversation wit1
officer, agent or employee of the City either before, during or after the execut
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this Agreement shall affect or modify any of the terms or obligations contained in th
Agreement, nor shal such additional payment whatsoever under the tern o€ th
Agreement. No amendments or alleralions to this Agreement shall be effective unle
evidenced by writing and executed by all parties to this Agreement.
IN WITNESS WHEREOF, the City and the Chamber have executed this Agreement as oft
date first written above.
AlTEST:
WBL
Aletha L. Rautenkranz, City Clerk
Carlsbad Chamber of Cornme
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* ATTACHMENT 0 0
CARLSBAD CONVENTION AND VISITORS BUREAU BUDGET
10/01/93 TO 09/30/94
TOTAL CITY
BUDGET PAYMENT
Multi Media Advertising" $56,000 $53,000
Advertisements will be placed in magazines and newspapers
that reach our target market. These include: Motorland,
Wes tways, Golden State, L.A. Magazine, California Travel
Guide, San Diegan, L.A. Times, Phoenix Gazette, Arizona
Rcpublic and Orange County Register. Other multi media
opportunities will be evaluated. These include radio,
television, billboards, and listings on computer networks.
Trade Shows and Blitzes 12,000 11,000
10/93 Group Leaders of America - Phoenix, A2
10/93 Travelage West Show - Palm Springs, CA
10/93 San Diego Mixer Plus Trade Show - San Diego, CA
01/94 Seattle Sales Blitz & Travel Show - Seattle, WA
02/94 Orange County Travel Show - Costa Mesa, CA
02/94 Metro Phoenix World Travel Show - Phoenix, AZ
03/94 American Airlines Vacation Supermarket - Dallas, TX
03/94 So. Arizona World Travel Show - Tucson, A2
04/94 L.A. Travel Show - Los Angeles, CA
04/94 Nat'l Travel Exchange Trade Show - Silicon Valley, CA
09/94 State Sales Mission - British Columbia
Additional trade shows and blitzes will be scheduled as a
cooperative venture with Oceanside and Escondido.
Tourism Video 1,500 500
Fnm Trips 5,500 4,500
Print Brochures 12,500 11,000
Advertisinn Specialtv Items 500 -0.
05/94 ASTA's 94 Western Regional Trade Show
Promotion for Community Events 9.000 7.00C
Total Programs 97,000 87,00(
Administrative and Operations Expenses"* 143,000 11 8.00(
TOTAL $240,000 $205,00(
15% Commission on all paid advertising will be allocated to cover Administrative
Administrative and Operations Expenses shall include $3,000 for annual audit
property taxes on the AT&SF Depot property. The Chamber will promptly pay all in
to these expenses when due.
L ... '* '*
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