HomeMy WebLinkAbout08 Drctn - Marketing Svcs for FY 21-22STAFF REPORT
CITY OF PALM DESERT
ECONOMIC DEVELOPMENT DEPARTMENT
MEETING DATE: February 11, 2021
PREPARED BY: Thomas Soule, Tourism & Marketing Manager
REQUEST: Seek direction on extending by one year the City of Palm Desert
contracts with Ideapeddler (Contract No. C37180) and CV
Strategies (Contract No. C37060) to provide marketing services
for Fiscal Year 2021 /22.
Recommendation
By Minute Motion that the City Council, authorize staff to move forward with developing
one-year renewal contracts with Ideapeddler and CV Strategies to provide marketing
services for Fiscal Year 2021/2022.
Strategic Plan Objective
The City's Media Plan supports the following specific objectives from the City's Strategic
Plan:
• Tourism & Marketing Priority No. 3—Attract new and developing travel/tourism
markets; and
• Tourism & Marketing Priority No. 4—Support the City's tourism industry through
enhancement of its marketing efforts with an allocation of additional City resources,
the development of partnerships, and coordination of existing efforts.
Board/Committee Input
At its regular meeting on January 21, 2021, the El Paseo Parking & Business
Improvement District (EPPBID) Board unanimously voted to recommend the
authorization to extend the City's contract with CV Strategies on their behalf. And at its
regular meeting on February 2, 2021, the Marketing Committee enthusiastically and
unanimously voted to recommend Council to authorize the extension of Ideapeddler's
contract with the City for marketing services.
Background Analysis
February 11, 2021 — Staff Report
Ideapeddler & CV Strategies Contract Extension Authorization
Page 2of3
The City engages the services of two agencies for marketing services: Ideapeddler for
tourism, and CV Strategies to assist with marketing the EPPBID. Both contracts were
awarded after extensive competitive selection processes and were initially authorized for
one year, with two possible one-year extensions.
As of Fiscal Year 20/21, both contracts have run their course of extensions. Traditionally,
the City would seek proposals this spring in alignment with the City's preference to provide
fair and transparent opportunities for businesses to bid on the City's business while
ensuring that we're getting competitive pricing for the services rendered.
This year, however, has been far from traditional. The key focus for the City's marketing
programs has been to continuously pivot with the ever -shifting landscape due to COVID-
19. Palm Desert hotels, retail, and restaurants are also struggling to stay afloat as they
adapt to a variety of changing health orders and restrictions. In a local economy that relies
heavily on the high season to sustain the lean summer months, this will be the second
year of unreliability.
The specifics of a well -crafted media plan are fine-tuned based on past performance data
and market research, as well as a solid working knowledge of the advertising campaign
currently in market. Onboarding a new agency in July would introduce a steep learning
curve exactly at the moment when the media plan needs to be working its hardest. Our
businesses will be especially vulnerable in the summer this year, which is traditionally a
slow business season. This is vastly different from any other year, when the agency would
have the time to come up to speed in the build up to the fall. This year the plan needs to
already be in motion before the summer hits.
In that context, the coming spring and summer months may be the most important
transitional phase of the pandemic yet, as the region hopefully begins an upward
trajectory through the different tiers set by the State. The end of this Fiscal Year (June
30, 2021) falls right in the midst of this period, and right at the beginning of the most critical
summer season, our businesses have faced in years.
To switch creative agencies at this extraordinary moment would deprive the City's
marketing of its momentum with the current plan, thus eliminating important opportunities
to help Palm Desert businesses during the vulnerable months of July, August, and
September. It's difficult, if not impossible, to create a media action plan if we're not sure
whether the contract will end in the middle of the effort.
Therefore, staff requests authorization from Council to potentially extend both contracts
under Palm Desert Municipal Code section 3.30.160.1, which allows the exception to
procurement methods in situations where Council finds that such an exception would be
in the best interest of the City, or the public health, safety, and welfare. Staff has conferred
with the City Attorney to determine that Council is authorized to take this action. Approval
of this recommendation would not automatically extend the contracts. If authorized to do
February 11, 2021
Ideapeddler & CV
Page 3 of 3
— Staff Report
Strategies Contract Extension Authorization
so, staff would bring each contract back to the City Council for individual approval as part
of the ongoing budget process for FY 21/22.
Staff realizes that such a request is extraordinary, and would not make the request without
strong reasons and the support of marketing professionals in the community. Given the
current circumstances, however, staff recommends authorizing the possible extension of
the contracts with Ideapeddler and CV Strategies for marketing services for a one-year
period, Fiscal Year 2021/22.
Fiscal Analysis
No fiscal impact is created by this request. The original contract with Ideapeddler provided
a monthly retainer of $4,792.26, based on a percentage of the approved media budget of
$409,000. The CV Strategies retainer comes from the EPPBID budget and does not affect
the City's budget. The contracts in question will be brought back to Council at the
appropriate time for full consideration, including any future fiscal impact.
LEGAL REVIEW
DEPT. REVIEW
FINANCIAL
REVIEW
ASSISTANT
CITY MANAGER
R.H.
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N/A
-Andy Firestine
Robert W.
Martin Alvarez
Janet M. Moore
Andy Firestine
Hargreaves
Director of
Director of Finance
Assistant City
City Attorney
Economic
Manager
Development
Interim City Manager/Executive Director, Randy Bynder:
Randy Bynder
CITY COUNCIL ION
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Original on File with City
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