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HomeMy WebLinkAboutC37061 Extension of Advertising Service for El Paseo Parking Business Improvement District (EPPBID)STAFF REPORT CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT MEETING DATE: July 11, 2019 PREPARED BY: Thomas Soule, Tourism & Marketing Manager REQUEST: Extend by one year the contract between the City of Palm Desert and FG Creative, Inc. to provide Advertising Services for the El Paseo Parking & Business Improvement District Recommendation By Minute Motion that the City Council: 1. Approve a one year extension of Contract No. C37060 to FG Creative, Inc. to provide advertising services for the El Paseo Parking & Business Improvement District; and 2. Authorize the City Attorney to make non -substantive changes to the contract and the Mayor to execute the agreement on behalf of the City. Funds are available in Account No. 2714491-4321500. Committee/Commission Recommendation At its regular meeting on June 20, 2019, the El Paseo Parking & Business Improvement District (EPPBID) Board of Directors recommended to the City Council that the contract with FG Creative to represent the district as its advertising agency be renewed for one year. Backqround Analvsis After a competitive selection process and with the full support of the EPPBID Board, the City Council approved a one-year contract with FG Creative for FY 18/19 to provide advertising services for the EPPBID. The contract allows the City the unilateral option, at is sole discretion, to renew the agreement automatically for up to two additional one-year terms. This would be the first one-year extension of the agreement. The original contract provides FG Creative a monthly retainer of $2,000, which includes, but is not limited to, the following services: • Develop an annual budget that includes a comprehensive, strategic and diversified media plan. • Negotiate, schedule and maintain media buys. • Develop an annual branding campaign and create all graphic assets as needed to fulfill the media plan. July 11, 2019 —Staff Report Renew EPPBID Marketing Contract with FG Creative Page 2of2 • Organize and manage two merchant meetings per year. • Manage public relations efforts on behalf of the EPPBID. Hard costs associated with online advertising placement and other media buys are not included in the monthly retainer and are accounted for in Exhibit "C" of the original contract. The total amount of the contract for FY 2019-20 is $245,000. Based on the recommendation of the EPPBID Board, staff recommends renewal of the contract with FG Creative for advertising services for a one-year period, from July 1, 2019, to June 30, 2020. Fiscal Analvsis The cost of the subject contract and media buys are funded through the EPPBID annual assessments collected from district members and there is no impact to the City's General Fund. Funds are available in Account No. 2714491-4321500. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER Robert W. Martin Alvarez Hargreaves Director of Economic �aWet Moore Lauri Aylaian City Attorney Development Director of Finance City Manager VENDOR: Stephanie D. Greene FG Creative, Inc. 74-020 Alessandro, Suite E Palm Desert, CA 92260 ATTACHMENT: Contract C37061 Contract No. C37061 CITY OF PALM DESERT EXTENSION TO PROFESSIONAL CONSULTANT SERVICES AGREEMENT MARKETING SERVICES CONTRACT No. C37060 This FIRST EXTENSION ("Extension") to the Ideapeddler Professional Consultant Services Agreement for Marketing Services No. C37060 is made as of June 27, 2019, ("Effective Date") by and between the CITY OF PALM DESERT, a municipal corporation, organized under the laws of the State of California, having a principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, (the "Authority") and FG Creative, Inc., a corporation in California with its principal place of business at 74-020 Allesandro, Suite E, Palm Desert, CA 92260 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." RECITALS A. The City of Palm Desert is a municipal corporation, organized under the laws of the State of California. B. The Consultant is engaged in the business of providing professional marketing consulting services to public clients, and has represented to the City that the Contractor is experienced and competent in said business. C. The City and Consultant desire to enter into this Extension to the Agreement. D. The Parties entered into that certain Professional Consultant Services Agreement for Marketing Services Contract No. C37060, by and between the City of Palm Desert and FG Creative, Inc., dated May 24, 2018 ("Contract"). NOW, THEREFORE, the Parties agree to amend the Contract as follows: 1. Term. The parties agree that the term ("Term") of the Contract shall be extended, for an additional twelve (12) month term beginning July 1, 2019, and ending June 30, 2020 or to such later date as may be agreed in writing between parties. The Contract allows for an option of an extension based on Contractor's performance and mutual agreement, this Extension is the first Contract extension. Any additional extensions will be contemplated based on performance. 2. Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" to this Extension of the Contract, which is attached hereto and incorporated herein by reference. The total compensation shall not exceed $245,000, without authorization of the City Council or City Manager, as applicable, per the Palm Desert Municipal Code. Contract No. C37061 All other terms of the Contract to remain unchanged and in full force and effect. IN WITNESS THEREOF, the Parties have executed this first Extension on the date first above written. CITY OF PALM DESERT am Attest: Susan Marie Weber Mayor Rachelle D. Klassen City Clerk Approved as to Form: Best Best & Krieger LLP City Attorney FG CREATIVE, INC. LM Stephanie Greene CEO Contract No. C37061 EXHIBIT "C" COMPENSATION The CITY's budget for advertising and publicizing the EPBID's facilities, services and events is established as part of the CITY's fiscal year budget for the period of July 1, 2019 - June 30, 2020 at $250,000. The CITY's liability for advertising materials and services under this Contract shall not exceed the contracted amount of $245,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows: (a) The CITY will pay FG CREATIVE a flat fee of $2,000 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical. (b) FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions. (c) FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this Section 4 will be made in due course by the City of Palm Desert. (d) FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract.