HomeMy WebLinkAbout2014-03-11; City Council; 21519; Approval Agreement Strategic ADivsory Group Tourism Consulting ServicesCITY OF CARLSBAD - AGENDA BILL 1
AB# 21,519 APPROVAL OF A PROFESSIONAL SERVICES
AGREEMENT WITH STRATEGIC ADVISORY GROUP
FOR TOURISM CONSULTING SERVICES
DEPT.DIRECTOR .
MTG. 3/11/14
APPROVAL OF A PROFESSIONAL SERVICES
AGREEMENT WITH STRATEGIC ADVISORY GROUP
FOR TOURISM CONSULTING SERVICES
CITY ATTORNEY ' Jf^ ^
DEPT. CED
APPROVAL OF A PROFESSIONAL SERVICES
AGREEMENT WITH STRATEGIC ADVISORY GROUP
FOR TOURISM CONSULTING SERVICES CITY MANAGER /
RECOMMENDED ACTION:
That the City Council ADOPT City Council Resolution No. 2014-035 to approve the professional
services agreement with Strategic Advisory Group for tourism consulting services in an amount not to
exceed $86,250 and authorizing the Administrative Services Director to appropriate and distribute said
funds.
ITEM EXPLANATION:
On August 20, 2013, City Council approved issuing a Request for Proposal (RFP) for tourism consulting
services to analyze the tourism market in Carlsbad, including the reasons behind seasonal swings in
occupancy. City staff released the RFP and met with the Carlsbad Tourism Business Improvement
District (CTBID) regarding partnering on this effort. At their December 4, 2013 board meeting the CTBID
voted to reimburse the city for half of the cost of study. The RFP solicited in-depth, technical expertise
to better understand how Carlsbad's tourism industry compares with similar destination cities, analyze
occupancy rates by room type, tourism marketing spending return on investment and other relevant
data, and provide strategic recommendations to improve Carlsbad's existing tourism industry.
Ten (10) proposals were received and ranked by a selection committee that included three CTBID board
members and four city staff with economic development and/or tourism experience. Proposals were
evaluated based on proposed services and methodology, overall response to request, price, related
experience of the firm and project team and client reference information. Based on best value criteria
the selection committee chose Strategic Advisory Group as the consultant to lead this effort. Their
team has extensive experience In helping both municipalities and tourism organizations create strategic
action plans and identify opportunities in the tourism market.
The tourism industry is a strong economic driver in the City of Carlsbad. Transient Occupancy Taxes
(TOT) provide 12 percent of the city's general fund revenue, in addition to sales and property tax
revenue generated by the industry. Carlsbad attracts more than 3.5 million visitors each year, and there
are over 1,500 businesses that serve these visitors, providing jobs for over 11,000 employees.
Occupancy rates in Carlsbad are extremely variable over the course of a year, with occupancies above
80 percent in the peak summer months and falling to below 50 percent during the winter. Given
Carlsbad's year-round good weather and attractions such as the beach, LEGOLAND California, golf
courses, and great shopping options, we have the opportunity to improve our occupancy rates in the
off-season.
DEPARTMENT CONTACT: Christina Vincent, 760-602-2712, christina.vincent@carlsbadca.Eov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED X CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
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The scope of services will include the following tasks:
• Perform a comprehensive economic analysts of Carlsbad's tourism industry
• Conduct a comparative analysis of Carlsbad's tourism industry and other similar destinations
• Conduct a review of Carlsbad's tourism assets
• Recommend actions and strategy to improve and prepare for future opportunities.
This agreement includes project deliverables, timelines and milestones including periodic reporting and
presentations to the project team. It provides for a one year term.
FISCAL IMPACT:
Strategic Advisory Group and the city have negotiated a budget not to exceed $86,250 to perform the
consulting services outlined in the Professional Services Agreement. This amount includes $75,000 for
consulting services and $11,250 for reimbursable expenses (travel, etc.). The CTBID has voted to fund
half of the study, and will reimburse the city up to $43,125. Economic Development staff would manage
the project on behalf of the city. Staff recommends that the funds for this comprehensive tourism study
come from the City Council Contingency Fund.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment,
or a reasonably foreseeable indirect physical change in the environment, and therefore does not
require environmental review.
EXHIBITS:
1. City Council Resolution No. 2014-035
2. Professional Services Agreement with Strategic Advisory Group.
EXHIBIT 1
1 RESOLUTION NO. 2014-035
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WHEREAS, the City Council has established a strategic goal of.business retention
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A PROFESSIONAL SERVICES AGREEMENT
WITH STRATEGIC ADVISORY GROUP AND AUTHORIZING THE
4 ADMINISTRATIVE SERVICES DIRECTOR TO APPROPRIATE AND
DISTRIBUTE FUNDS.
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y and expansion and the tourism industry is a major economic driver in the city providing more
than 12 percent of the city's general fund revenue in addition to the sales and property tax
^ generated bythe industry; and
WHEREAS, in partnership with the city's hotel properties, both the city and the
Carlsbad Tourism Business Improvement District recognize the need for a comprehensive
review of the tourism industry and have collaborated to split the total.cost of the said tourism
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14 study; and
15 WHEREAS, the city requires technical and in-depth expertise in tourism profiling,
comparative market analysis, and a strategic action plan to successfully address low annual
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occupancy rates in the winter months and recommendations to, improve future opportunities;
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and
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2Q WHEREAS, a request for proposals for professional services was issued in August
21 2013 and on October 21, 2013 a total often (10) proposals were received; and
22 WHEREAS, the city's goal to retain and grow existing businesses in partnership
23 with the Tourism Business Improvement District, with three Board members participating on
the selection committee, rated Strategic Advisory Group as the top professional services
provider for the tourism consulting services because they were considered most experienced.
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1 had the greatest analytical capacity to complete the work and presented an approach that best
addressed city's goals and objectives.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
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California, as follows that:
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. 1. The above recitations are true and correct.
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7 2. That the professional services agreement with Strategic Advisory Group is
hereby approved.
3. That the City Manager is hereby authorized and directed to execute the
professional services agreement with Strategic Advisory Group for said tourism consulting
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services.
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j-^ 4. That the Administrative Services Director is hereby authorized to
14 appropriate $86,250 from council contingency and distribute said funds to community and
15 economic development, for payment to vendor and contract administration as set forth within
the professional services agreement.
5. That the Carlsbad Tourism Business Improvement District will reimburse
the council contingency fund for 50% of all funds expended for paid tourism consulting services.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 11^^ day of March, 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood and Blackburn.
None.
ABSENT: None.
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MATT HALL, Mayor
ATTEST:
SHELLEY COLLINS, Assistant City Clerk
(SEAL)
%7 • '.v^""
AGREEMENT FOR CITY OF CARLSBAD TOURISM INDUSTRY STUDY
STRATEGIC ADVISORY GROUP
THIS AGREEMENT is made and entered into as of the day of
2014, by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and Strategic
Advisory Group, a limited liability company ("Contractor"),
RECITALS
A. City requires the professional services of a research consultant that is
experienced in conducting in depth, comprehensive analysis and strategic action plan of the
tourism industry.
B. Contractor has the necessary experience in providing professional services and
advice related to tourism and action plan development and implementation.
C. Contractor has submitted a proposal to City and has affirmed its willingness and
ability to perform such work.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those services (the
"Services") that are defined in attached Exhibit "A", which is incorporated by this reference in
accordance with this Agreement's terms and conditions.
2. STANDARD OF PERFORMANCE
While performing the Services, Contractor will exercise the reasonable professional care and
skill customarily exercised by reputable members of Contractor's profession practicing in the
Metropolitan Southern California Area, and will use reasonable diligence and best judgment
while exercising its professional skill and expertise.
3. TERM
The term of this Agreement will be effective for a period of one (1) year from the date first above
written. The City Manager may amend the Agreement to extend it for an additional one-year
period or parts thereof in an amount not to exceed seventy five thousand dollars ($75,000) for
professional fees. In addition, up to eleven thousand two hundred and fifty dollars ($11,250) for
reimbursable expenses (travel, etc) for a total contract maximum of eighty six thousand two
hundred and fifty dollars ($86,250) per year, or as prorated for a lesser agreement period.
Extensions will be based upon a satisfactory review of Contractor's performance, City needs,
and appropriation of funds by the City Council. The parties will prepare a wntten amendment
indicating the effective date and length ofthe extended Agreement.
4. TIME IS OF THE ESSENCE
Time is of the essence for each and every provision of this Agreement.
5 COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement term will be
eighty six thousand two hundred and fifty dollars ($86,250). No other compensation for the
Services will be allowed except for items covered by subsequent amendments to this
Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has
accepted the work and/or Services specified in Exhibit "A".
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6. STATUS OF CONTRACTOR
Contractor will perform the Services in Contractor's own way as an independent contractor and
in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be
under control of City only as to the result to be accomplished, but will consult with City as
necessary. The persons used by Contractor to provide services under this Agreement will not
be considered employees of City for any purposes.
The payment made to Contractor pursuant to the Agreement will be the full and complete
compensation to which Contractor is entitled. City will not make any federal or state tax
withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be
required to pay any workers* compensation insurance or unemployment contributions on behalf
of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within
thirty (30) days for any tax, retirement contribution, social security, overtime payment,
unemployment payment or workers' compensation payment which City may be required to
make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work
done under this Agreement, At the City's election. City may deduct the indemnification amount
from any balance owing to Contractor.
7. SUBCONTRACTING
Contractor will not subcontract any portion of the Services without prior written approval df City.
If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the
acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly
employed by the subcontractor, as Contractor is for the acts and omissions of persons directly
employed by Contractor. Nothing contained in this Agreement will create any contractual
relationship between any subcontractor of Contractor and City. Contractor will be responsible for
payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of
a subcontractor by the terms of this Agreement applicable to Contractor's work unless
specifically noted to the contrary in the subcontract and approved in writing by City.
8. OTHER CONTRACTORS
The City reserves the right to employ other Contractors in connection with the Services.
9. INDEMNIFICATION
Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees
and volunteers from and against all claims, damages, losses and expenses including attorney's
fees arising out of the performance of the work described herein caused by any negligence,
recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or
indirectly employed by any of them or anyone for whose acts any of them may be liable.
The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or
makes to or on behalf of an injured employee under the City's self-administered workers'
compensation is included as a loss, expense or cost for the purposes of this section, and that
this section will survive the expiration or early termination of this Agreement.
10. INSURANCE ^ ^
Contractor will obtain and maintain for the duration of the Agreement and any and all
amendments, insurance against claims for injuries to persons or damage to property which may
arise out of or in connection with performance of the services by Contractor or Contractors
agents representatives, employees or subcontractors. The insurance will be obtained from an
insurance carrier admitted and authorized to do business in the State of California,^ me
insurance carrier is required to have a current Best's Key Rating of not less than A-:Vll UK
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with a surplus line insurer on the State of California's List of Eligible Surplus Line Insurers
(LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X".
10.1 Coverages and Limits.
Contractor will maintain the types of coverages and minimum limits indicated below, unless Risk
Manager or City Manager approves a lower amount. These minimum amounts of coverage will
not constitute any limitations or cap on Contractor's indemnification obligations under this
Agreement. City, its officers, agents and employees make no representation that the limits of
the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to
protect Contractor. If Contractor believes that any required insurance coverage is inadequate.
Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at
Contractor's sole expense.
10.1.1 Commercial General Liabilitv Insurance. $1,000,000 combined single-limit
per occurrence for bodily injury, personal injury and property damage. If the submitted policies
contain aggregate limits, general aggregate limits will apply separately to the work under this
Agreement or the generai aggregate will be twice the required per occurrence limit.
10.1.2 Automobile Liabilitv. (if the use of an automobile is involved for
Contractor's work for City). $1,000,000 combined single-limit per accident for bodily injury and
property damage.
10.1.3 Workers' Compensation and Emplover's Liabilitv. Workers' Compensation
limits as required by the California Labor Code. Workers' Compensation will not be required if
Contractor has no employees and provides, to City's satisfaction, a declaration stating this.
10.1.4 Professional Liabilitv. Errors and omissions liability appropriate to
Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be
maintained for a period of five years following the date of completion of the work.
tv's in
I I If box is checked. Professional Liability
City's ir^itials Contractor's Initials Insurance requirement is waived.
10.2. Additional Provisions. Contractor will ensure that the policies of insurance required under
this Agreement contain, or are endorsed to contain, the following provisions:
10.2.1 The City will be named as an additional insured on Commercial General
Liability which shall provide primary coverage to the City.
10.2.2 Contractor will obtain occurrence coverage, excluding Professional
Liability, which will be written as claims-made coverage.
10 2 3 This insurance will be in force during the life of the Agreement and any
extensions of it and will not be canceled without thirty (30) days prior written notice to City sent
by certified mail pursuant to the Notice provisions of this Agreement.
10 3 Providino Certificates of Insurance and Endorsements. Prior to City's execution of this
Agreement, Contractor will furnish certificates of insurance and endorsements to City.
10 4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance
coverages then City will have the option to declare Contractor in breach, or may purchase
replacement insurance or pay the premiums that are due on existing policies in order to
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maintain the required coverages. Contractor is responsible for any payments made by City to
obtain or maintain insurance and City may collect these payments from Contractor or deduct the
amount paid from any sums due Contractor under this Agreement.
10.5 Submission of Insurance Policies. City reserves the right to require, at anytime, complete
and certified copies of any or all required insurance policies and endorsements.
11. BUSINESS LICENSE
Contractor will obtain and maintain a City of Carlsbad Business License for the term of the
Agreement, as may be amended from time-to-time.
12. ACCOUNTING RECORDS
Contractor will maintain complete and accurate records with respect to costs incurred under this
Agreement. All records will be clearly identifiable. Contractor will allow a representative of City
during normal business hours to examine, audit, and make transcripts or copies of records and
any other documents created pursuant to this Agreement. Contractor will allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of
three (3) years from the date of final payment under this Agreement.
13. OWNERSHIP OF DOCUMENTS
All work product produced by Contractor or its agents, employees, and subcontractors pursuant
to this Agreement is the property of City. In the event this Agreement is terminated, all work
product produced by Contractor or its agents, employees and subcontractors pursuant to this
Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy
of the work product for Contractor's records.
14. COPYRIGHTS
Contractor agrees that all copyrights that arise from the services will be vested in City and
Contractor relinquishes all claims to the copyrights in favor of City.
15. NOTICES
The name ofthe persons who are authorized to give written notices or to receive written notice
on behalf of City and on behalf of Contractor under this Agreement.
For City For Contractor
Name Christina Vincent Name Dan Fenton ,
Title Economic Development Mgr. Title Principal
Department CED Address 3848 Saint Annes Court
City of Carlsbad Duluth, Georgia 30096
Address 1635 Faraday Ave. Phone No. 831-298-7215
Carlsbad, CA 92008 Email dan@strategicadvisorygroup.net
Phone No. 760-602-2712
Each party will notify the other immediately of any changes of address that would require any
notice or delivery to be directed to another address.
16. CONFLICT OF INTEREST
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Contractor shall file a Conflict of Interest .Statement with the City Clerk in accordance with the
requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report
investments or interests in all four categories.
17. GENERAL COMPLIANCE WITH LAWS
Contractor will keep fully informed of federal, state and local laws and ordinances and
regulations which in any manner affect those employed by Contractor, or in any way affect the
performance of the Services by Contractor. Contractor will at all times observe and comply with
these laws, ordinances, and regulations and will be responsible for the compliance of
Contractor's services with all applicable laws, ordinances and regulations.
Contractor will be aware of the requirements ofthe Immigration Reform and Control Act of 1986
and will comply with those requirements, including, but not limited to, verifying the eligibility for
employment of all agents, employees, subcontractors and consultants whose services are
required by this Agreement.
18. DISCRIMINATION AND HARASSMENT PROHIBITED
Contractor will comply with all applicable local, state and federal laws and regulations prohibiting
discrimination and harassment.
19. DISPUTE RESOLUTION
If a dispute should arise regarding the performance ofthe Services the following procedure will
be used to resolve any questions of fact or interpretation not otherwise settled by agreement
between the parties. Representatives of Contractor or City will reduce such questions, and their
respective views, to writing. A copy of such documented dispute will be fonwarded to both
parties involved along with recommended methods of resolution, which would be of benefit to
both parties. The representative receiving the letter will reply to the letter along with a
recommended method of resolution within ten (10) business days. If the, resolution thus
obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded
to the City Manager. The City Manager will consider the facts and solutions recommended by
each party and may then opt to direct a solution to the problem. In such cases, the action of the
City Manager will be binding upon the parties involved, although nothing in this procedure will
prohibit the parties from seeking remedies available to them at law.
20. TERMINATION
In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may
terminate this Agreement for nonperformance by notifying Contractor by certified mail of the
termination. If City decides to abandon or indefinitely postpone the work or services
contemplated by this Agreement, City may terminate this Agreement upon written notice to
Contractor. Upon notification of termination. Contractor has five (5) business days to deliver any
documents owned by City and all work in progress to City address contained in this Agreement.
City will make a determination of fact based upon the work product delivered to City and of the
percentage of work that Contractor has performed which is usable and of worth to City in having
the Agreement completed. Based upon that finding City will determine the final payment of the
Agreement.
Either party upon tendering thirty (30) days written notice to the other party may terminate this
Agreement In this event and upon request of City, Contractor will assemble the work product
and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for
work performed to the termination date; however, the total will not exceed the lump sum fee
payable under this Agreement. City will make the final determination as to the portions of tasks
completed and the compensation to be made.
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21. COVENANTS AGAINST CONTINGENT FEES
Contractor warrants that Contractor has not employed or retained any company or person, other
than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that
Contractor has not paid or agreed to pay any company or person, other than a bona fide
employee, any fee, commission, percentage, brokerage fee. gift, or any other consideration
contingent upon, or resulting from, the award or making of this Agreement. For breach or
violation of this warranty. City will have the right to annul this Agreement without liability, or, in
its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full
amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.
22. CLAIMS AND LAWSUITS
By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must
be asserted as part of the Agreement process as set forth in this Agreement and not in
anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false
claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal
prosecution. Contractor acknowledges that California Government Code sections 12650 et seg..
the False Claims Act applies to this Agreement and,, provides for civil penalties where a person
knowingly submits a false claim to a public entity. These provisions include false claims made
with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of
information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to
recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a
false claim may subject Contractor to an administrative debarment proceeding as the result of
which Contractor may be prevented to act as a Contractor on any public work or improvement
for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction
is grounds for City to terminate this Agreement.
23. JURISDICTIONS AND VENUE
Any action at law or in equity brought by either of the parties for the purpose of enforcing a right
or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the
County of San Diego. State of California, and the parties waive all provisions of law providing for
a change of venue in these proceedings to any other county.
24. SUCCESSORS AND ASSIGNS
It is mutually understood and agreed that this Agreement will be binding upon City and
Contractor and their respective successors. Neither this Agreement or any part of it nor any
monies due or to become due under it may be assigned by Contractor without the prior consent
of City, which shall not be unreasonably withheld.
25. ENTIRE AGREEMENT , , ^ u ,
This Agreement together with any other written document referred to or contemplated by it.
along with the purchase order for this Agreement and its provisions, embody the entire
Agreement and understanding between the parties relating to the subject matter of it. In case of
conflict the terms of the Agreement supersede the purchase order. Neither this Agreement nor
any of'its provisions may be amended, modified, waived or discharged except in a wntmg
signed by both parties.
26. AUTHORITY ^ . ^ . ... ,
The individuals executing this Agreement and the instruments referenced in it on behalf ot
Contractor each represent and warrant that they have the legal power, right and actual authority
to bind Contractor to the terms and conditions of this Agreement.
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CONTRACTOR
Strategic Advi
CITY OF CARLSBAD, a municipal
corporation of the State of California
n<athy Dodson; Interim City Manager
Dan Fenton, Principal
(print name/title)
ATTEST:
By:
(sign here) BARBARA LESON
City Clerk
(print name/title)
If required by City, proper notarial acknowledgment of execution by contractor must be
attached. If a corporation. Agreement must be signed by one corporate officer from each of the
following two groups.
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
CELIAA. BREWER, City Attorney
BY:
A/sistant City Attorney
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EXHIBIT "A"
SCOPE OF SERVICES
TASK 1: Analysis
Immersion
SAG will take a deep dive into the market surrounding Carlsbad in order to conduct research
and analyze the environment. The tourism landscape in Carlsbad will be the key focus of the
analysis. SAG will look outside the traditional research points in order to serve the City with the
best information. SAG will conduct external comparison research and analysis as well as
internal Carlsbad-focused research, which will ultimately contribute to the Strategic Action Plan
and recommendations for the City. SAG will review all relevant past research studies and
marketing plans in the immersion phase.
Community Outreach
SAG will get involved with the community and stakeholders' from Carlsbad immediately to
become entrenched in the hospitality and tourism space in the City. SAG takes great pride in
working with the community and is committed to being a part of this process with the people
who the work will ultimately affect. SAG will meet and talk to any and all parties from Carlsbad
who have a vested interest in the Tourism Industry Study. The SAG team will measure the
brand recognition in the regional Carlsbad area and will make brand awareness an integral part
of the tourism analysis for the final report to the Carlsbad City Council. SAG will take a full
spectrum approach to this Tourism Industry Study for the City of Carlsbad.
External Analysis and Benchmarking
Creating a viable comparison set will be the foundation for thoroughly evaluating the City of
Carlsbad's impact on tourism and the best recommendations to improve the City's standing in
the tourism and hospitality landscape. SAG will research similar destinations in California and
will work with the City to determine the key competitive set. As described the City of Carlsbad is
competing with cities such as San Diego, Santa Monica, Santa Barbara, Anaheim. SAG will
look above and beyond these suggested cities to find additional comparisons for evaluation.
Criteria evaluated with the City of Carlsbad will drive this additional research and analysis. SAG
will investigate the avenues through which these cities channel their tourism dollars and other
resources and how those investments have benefitted such destinations. The comparison
analysis that SAG will conduct on behalf of the City of Carlsbad will also include the following
components:
1. Hotel occupancy rate and TOT Revenue
2. Number of hotel rooms by category per visitor and TOT revenue
3. Tourism marketing spending by category
4. Return on investment in tourism marketing spending
5. Market segmentation
6. Room rate by type
SAG will look at more than just what the comparable cities have to offer, but also how they are
pacing in terms of dollars spent and ROI, the ADR and average occupied rooms per season as
well as annually SAG will also review tourism funding approaches in the competitive
destinations as well as review the current practices in creating new tourism funding sources.
The cities that SAG would compare would give valuable insight to their approach in how they
are retaining such numbers. Using the information gathered SAG will also explore how the
comparable cities are leveraging their assets in a way that makes them more attractive. That
information will be a key factor in the Strategic Action Plan.
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Internal Tourism Analysis
SAG's analysis of the City of Carlsbad and its presence in the tourism industry will help the City
adjust for new opportunities and prepare to best capture those opportunities. SAG's research in
this component will provide an important foundation for the development of the City's future
approach. This drill down will include analysis of how the City utilizes its assets i.e. the large
percentage of public lands for hiking and other recreational purposes. How the City positions
itself as a destination and which of its events drive business to the bottom line of the tourism
industry. SAG will provide the analysis to prescribe the next steps for Carlsbad when it comes
to visitors and spending. Along with these additional points of focus for SAG's research, the firm
will evaluate the following criteria:
1. Analysis of potential increases in occupancy, TOT and revenue
2. Potential return on investment of tourism marketing spending
3. Segmentation analysis - spending and stay duration by segment
4. Hotel mix analysis - by property type
5. Qualitative report on successful marketing programs of destination cities in California
6. Organizational analysis of Carlsbad's tourism funding structure with comparative
report on other organizational examples and performance metrics. Analysis will
include revenue streams that fund tourism as well as tourism expenditures.
SAG's research will breakdown the industry in order to formulate a baseline for the City's
expenditure versus its ability to convert. SAG will focus on areas that arise out of the research
and how Carlsbad's internal structure within tourism can be improved.
SAG will also work with the City of Carlsbad to determine the best approach for validating the
target leisure markets that will produce the highest return in the future. SAG will conduct a
PRIZM study as well as a visitor profile study to validate the demographics and characteristics
of the markets that should be the highest priorities in the future.
SAG will focus on the opportunities Carlsbad is currently using as a tourism platform and how
those events are trending. Events such as the annual marathon, triathlon, Legoland events and
holiday celebrations will all be a focus of SAG's analysis. The results which emerge from
studying those events and how they are positioned to attract, retain visitors and ultimately how
those visitors spend their money in the City will be a driving force behind the Strategic Action
Plan.
Complimentary to the internal research of Carlsbad and the expenditures of the City focused on
tourism, SAG will analyze successful marketing programs of other destination cities and report
to Carlsbad on how that operation functions as a tool for hospitality and tourism industries. The
marketing campaigns of other destinations will be important to review because the messaging of
the destinations are key in consumer selection.
TASK 2: Strategic Action Plan
Based on the research and analysis ofthe comparison destinations and the intemal review of
Carlsbad's hospitality and tourism operation SAG will prepare a Strategic Action Plan for the
City The Strategic Action Plan will focus on areas of opportunities and potential growth
markets for the City of Carisbad to concentrate its attention. SAG will provide recommendations
for the Carlsbad based on the previous analysis in order to bolster the City's performance as a
destination city in California.
The SAG team will include avenues of funding and additional areas of revenue for the City of
Carlsbad to draw from for the hospitality and tourism industry. SAG's focus on improving
City Attorney Approved Version 1/30/13
Carlsbad's performance in the tourism rharketplace will provide the City with insight into
financial tactics.
SAG will create a Strategic Action Plan to bring measureable results to the City of Carlsbad. In
conjunction with the comparative research SAG will also speak to stakeholders throughout the
City to ensure a well-rounded approach is taken to provide the best insight to the Strategic
Action Plan. These conversations will be valuable in creating recommendations that the
hospitality and tourism community will support and implement. The Strategic Action Plan will
have recommendations formulated after researching and speaking to involved entities to bring
about untapped revenue streams or markets of growth.
TASK 3: Presentation and Reports
Presentation and Reporting
SAG will prepare all presentations and reports for the City of Carlsbad as outlined. SAG's first
focus will be the report on the research and analysis on the City's internal tourism industry and
how that industry is tracking. The reports will be comprehensive in terms of evaluation of
potential occupancy increases, TOT, spending, ROI on marketing spending, segmentation
analysis, visitor spending and duration of stay, and hotel mix analysis.
In addition to those report components, SAG will evaluate the potential ofthe visitor market and
Carlsbad tourism potential. SAG will also review the brand recognition for the City of Carlsbad
as a whole.
Prepare Draft Report
SAG will create a draft report on the Tourism Industry Study on behalf of the City of Carlsbad
and compile these reports appropriately and disseminate to the City's internal staff. The internal
staff will receive the report first to review the results of the study as a draft.
Prepare Final Report
SAG will include input after the draft review and creates final report along with a presentation of
the results with graphic illustrations highlighting significant findings.
Strategic Action Plan
Along with presenting the report to the City of Carlsbad, SAG will also provide the detailed
Strategic Action Plan. The Strategic Action Plan will provide recommendations for the City as
described previously.
Timeline
The proposed program will take ten months to complete and will include up to five scheduled
visits to Carlsbad.
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10
"EXHIBIT "B"
INCREMENTAL PAYMENT SCHEDULE
The Contractor will be paid a maximum of seventy five thousand dollars ($75,000) for all work
necessary to carry out the requirements of this agreement as noted in section 3 of the recitals.
The Contractor shall be paid within 30 days for work accomplished, in response to invoice, and
invoices are expected to be received monthly for professional fees for documented fixed
program expenses. The final 10% percent will be paid, not to exceed the maximum amount
provided in this agreement, upon acceptance ofthe work and services to be provided in Exhibit
A, and within 30 days after receipt of invoice.
In addition. Contractor may receive up to a up to eleven thousand two hundred and fifty dollars
($11,250) for reimbursable expenses which shall include transportation, lodging, meals and
incidental expenses such as tips. The City will not reimburse the cost of alcoholic beverages.
Reimbursement for tips will not be made in excess of 20%. All reimbursable expenses shall be
documented with detailed receipts accompanying the invoice.
City Attorney Approved Version 1/30/13
State of:
All Purpose Acknowledgement
County of: ^/mf/^
)re me On this //^ day of feJ^KUXUnj ,3Dl^ befoi
'fJij^y'i^ L ( , a Notary Public, personally appeared
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personally known to me or proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which theperson(s) acted, executed'this instrument.
Witness my hand and seal:
Primed Name
My coniniission expires
• EVA GRACfc HYGRELL^
. . (iotaryjPubiic •
My_:Ciimm. Expires •
(Seal)
DESCRIPTION OF ATTACHED DOCUMENT:
Title or Type of Document: PrO-ff^Sf(^inCcf S^ViC^ A^^t.^.,tY^4^
Document Date: re.b. llMN Number of Pages: _//__
Signers other than named above: ^
/7