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Home My WebLink AboutC34640A - New Ad Campaign & Video-H&L PartnersREQUEST: SUBMITTED BY: CONTRACTOR: DATE: CONTENTS: Recommendation CITY OF PALM DESERT STAFF REPORT AUTHORIZE EXPENDITURE OF MARKETING FUNDS FOR A NEW AD CAMPAIGN AND MARKETING VIDEO Thomas Soule, Tourism & Marketing Manager H & L Partners March 24, 2016 H&L Partners Contract No. c34640A By Minute Motion: 1. Authorize the expenditure of $105,000.00 with H&L Partners for the creation of a new ad campaign and marketing video; and 2. Authorize the City Attorney to make non -substantive changes and the City Manager to execute the agreement on behalf of the City. Funds are currently available in Account No. 1104417-4309000, Prof — Other. Strategic Plan Obiective The creation of a new ad campaign and marketing video would impact the following Tourism & Marketing priorities as specified in the 2013-2033 Strategic Plan, Envision Palm Desert: Forward Together. • Priority 3: Attract new and developing travel/tourism markets. This priority specifically calls for the development and utilization of supporting marketing materials. The ad campaign and marketing video will help us create a new and vibrant message to attract new and expanding target markets. • Priority 4: Support the city's tourism industry through enhancement of its marketing efforts with an allocation of additional city resources. The new ad campaign and marketing video will provide a much -needed refresh of the city's advertising campaign that will greatly enhance the City's marketing efforts. Staff Report Ad Campaign & Marketing Video March 24, 2016 Page 2 of 3 Backaround At its meeting of July 9, 2015, City Council approved Contract C34640 with H&L Partners to provide marketing services for the City of Palm Desert. In addition to the specific services outlined in the contract, these services include the planning, organizing and overseeing of special projects as assigned by the City. FY 15/16 was identified as a transitional year, and funds were approved and set aside in the FY 15/16 budget for the creation of a new ad campaign and a new marketing video to enhance the City's marketing program. Ad Camoaian Industry standards show that the lifespan of an advertising campaign is not typically more than two years. The City is in its fourth year of its "Feel the Warmth" campaign and is looking to create a new and vibrant message to attract our new and expanding target markets. $20,000 was set aside in the FY 15/16 budget for this purpose. Video Production The City is missing a huge opportunity in the digital world by not having current, viable video to utilize on the many channels now available. Visual resources are able to tell the full story of Palm Desert and can be utilized in many formats including on the City's website, YouTube channels, social media, and television. The value of that visual messaging is priceless and would be well worth an investment for a piece that can be developed as a timeless representation of our community. $75,000 was set aside in the FY 15/16 budget for this purpose. Due to seasonal conditions, the optimal time to capture video and still images of Palm Desert is early spring. Accordingly, staff has worked with H&L to combine the two projects, which will allow the video to be created in a timely manner while supporting and enhancing the new ad campaign. Because of this time restraint and the need to expedite the process, the Marketing Committee has not yet had input into the process. The Committee will, however, be involved in advising and guiding the process as we move forward. While the H&L retainer agreement does provide for media planning/buying and digital creative insertions, it does not include print/video advertising creation and production management, so costs for these are included in the proposed budget. However, H&L agreed to discount their fee on this project, which allows for more funds to be devoted to the actual photo/video production (about $70k total). In addition to concepting a new ad campaign for FY16/17, H&L will deliver: • 3 print ads • 3 banner ads • 1 video (length TBD) G \Econ Development\Thomas Soule\Staff Reports\Ad Campaign and Video production docx Staff Report Ad Campaign & Marketing Video March 24, 2016 Page 3 of 3 To further maximize these funds, H&L has been instructed to take full advantage of B- roil footage already in possession of the City as a result of participation in the Greater Palm Springs CVB "Summer Chill" co-op. As described in the estimate submitted by H&L, the proposed budget is outlined below: it�';Ci1 � �� ''��`�t`s � �� s ? � �,'r'�f'�i� `�' ` �'�� $��%�� `•� r F �� ' rl j �� ,.,i, .^, �,rri „�"';,r.� %€.�,1%��,'�a��;�'. s>:��:�%��'Y�'�i �, y.�tikc:� .. �� .,, ,,,�„�v, ,,,,,, �&.�'"', r� i,�.., �. .'� ,, i.•.;z � ,�:? Account Service/Project Management $10,290 Creative Concepting and Production Management $30,345 Subtotal $40,635 Discount ($15,380) Total $25,255 Production Budget $69,745 Estimated Travel Costs, not to exceed $10,000 Total new campaign budget $105,000 Fiscal Analvsis No additional funding is required to campaign and marketing video. Funds in the approved Marketing budget for F Submitted By: ��— (� Thomas Soule Tourism & Marketing Manager Paul S. Gibson Director of Finance Approval: Q�41a�s J M. Wohlmuth, City Manager Y move forward with the creation of a new ad are available in Account No. 1104417-4309000 15/16. Martin Alvarez Director of Economic Development Z� A*� Rudy A sta Assistant City Manager G \Econ Development\Thomas Soule\Staff Reports\Ad Campaign and Video production docx CONTRACT NO. C34640A PRODUCTION AGREEMENT This Production Agreement ("Agreement") is entered into this 24th day of March, 2016, by and between the City of Palm Desert ("City") and H&L Partners (Contractor). The City and H&L Partners are sometimes collectively referred to in this Agreement as the "Parties" and individually referred to as "Party." The Agreement is made in light of the following Recitals: RECITALS WHEREAS, the CITY wishes to engage AGENCY to prepare and develop certain advertising and marketing programs for the CITY. WHEREAS, the AGENCY desires to strategize, prepare, develop, and implement such programs for the CITY. NOW, THEREFORE, in consideration of the mutual promises set forth herein, and in light of the above Recitals, which are hereby made a part of this Agreement, the Parties hereby agree as follows: AGREEMENT 1. Term The term of this Agreement shall be from the date of its execution until completion of the Services, unless earlier terminated or extended as provided herein. It is anticipated that the Services will be completed within three (3) months of the execution of this Agreement, unless otherwise indicated in Exhibit "A". Contractor shall complete the services within the term of this Agreement, and shall meet any other established schedules and deadlines. 2. Responsibilities of Contractor Contractor promises and agrees to furnish City with all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional production services necessary for the ad campaign and marketing video project ("Services"). The Services are more particularly described in Attachment "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3. Compensation. The City shall pay production fees in an amount not to exceed $105,000 as indicated in Exhibit "A". CONTRACT NO. C34640A 4. Remedies and Termination. 4.1 Remedies. The Parties agree to provide each other with written notice of nonperformance, unsatisfactory performance, or any other dispute arising from the terms of this Agreement within ten (10) days of the deficiency or dispute being identified. The Parties shall have thirty (30) days from receipt of said written notice to correct any performance deficiencies. The Parties may mutually agree to extend the thirty (30) day cure period. The Parties agree to cooperate in good faith to resolve any performance issues or dispute arising from this Agreement. Either Party in its sole and absolute discretion may waive a default that cannot be cured. 4.2Termination. In the event any dispute cannot be resolved under these procedures, each Party retains such legal and equitable remedies as it may have under the law to enforce this Agreement. If either Party defaults under this Agreement and does not timely cure such default, the non -defaulting Party may terminate this Agreement upon providing written notice of termination of this Agreement to the defaulting Party, in which case this Agreement shall terminate. 4.3Termination without cause. Either Party may terminate this Agreement upon at least ninety (90) days prior written notice to the other Party. If Palm Springs Life terminates this Agreement, pursuant to this Section 4.3, the City shall be entitled to a pro rata refund of any prepaid amounts. 5. Insurance. Without limiting Contractor's indemnification of City, and prior to commencement of the event, Contractor shall obtain, provide and maintain at its own expense during the term of this Sponsorship Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to the City. 5.1 General Liabilitv Insurance. Agency shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement. 5.2Automobile Liabilitv Insurance. Agency shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Agency arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. CONTRACT NO. C34640A 5.3 Professional Liabilitv (Errors & Omissions) Insurance. Agency shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Agency agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims -made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. 5.4 Workers' Compensation Insurance. Agency shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). Agency shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, agents, employees and volunteers. 6. Other Provisions Or Requirements. 6.1Insurance for Subcontractors. All subcontractors shall be included as additional insureds under the Contractor's policies, or the Contractor shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the subcontractors' policies. 6.2 Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of the event. 6.3Duration of Coverage. Contractor shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, his/her agents, representatives, employees or subcontractors. CONTRACT NO. C34640A 6AAcceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 6.5 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City of Palm Desert and shall require similar written express waivers and insurance clauses from each of its subcontractors. 6.6 Primary and Non -Contributing Insurance. All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions. 6.7Additional Insured Status. General liability, Automobile Liability, and if applicable, Pollution Liability, policies shall provide, or be endorsed to provide, that the City of Palm Desert and its officers, officials, employees, and agents shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess liability policies. 6.8Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the event. 7. Indemnification. Palm Springs Life shall indemnify, defend, and hold harmless the City of Palm Desert, its officers, employees, and agents from any and all losses, costs, expenses, claims, liabilities, actions, or damages, including liability for injuries to any person or persons or damage to property arising at any time during and/or arising out of or in any way connected with Contractor's activities under the terms of this agreement, unless solely caused by the gross negligence or willful misconduct of the City of Palm Desert, its officers, employees, or agents. 7.1 Force Majeure. Any delay or failure in the performance by either party hereunder shall be excused if and to the extent caused by occurrence of a Force Majeure. Force Majeure shall mean a cause or event that is beyond the reasonable control of the party claiming Force Majeure. Force Majeure CONTRACT NO. C34640A includes but not limited to, acts of God, fires, floods, rain, heavy wind, earthquake, explosions, riots wars, sabotage, terrorism, vandalism, accident, restraint of government, governmental act, injunctions, destruction of site and other like events. In the event City has advanced funds for the sponsorship to the extent not utilized directly for the event any unused portion shall be returned. 8. Notices. Whenever it shall be necessary for either Party to serve notice on the other regarding this Agreement, such notice shall be served either in person, by certified mail, return receipt requested to the addresses below. City: City of Palm Desert Palm Desert Civic Center 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Manager H&L Partners: H&L Partners 30 Maryland Plaza St. Louis, MO 63108 ATTN: Mark Schaeffer Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 9. Leaal Costs. In the event of any legal action between the City and Palm Springs Life arising out of the obligations of the Parties pursuant to this agreement, the prevailing Party will be entitled to payment of its costs and expenses, including its reasonable attorneys' fees. 10. Bindina Effect. Successors. Neither Party shall assign or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the other Party, which may be given in such Party's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees or transferees shall acquire no right or interest by reason of such attempted assignment or transfer. This Agreement shall bind and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns and all of the Parties thereto shall be jointly and severally liable hereunder. CONTRACT NO. C34640A 11. Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument which shall be binding upon the Parties notwithstanding that the Parties may not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. 12. Further Assurances. Whenever requested to do so by the other Party, each Party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and any documents that are necessary, expedient, or proper to complete anything contemplated by this Agreement. In addition, each Party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Agreement. 13. Modifications. All modifications to this Agreement must be in writing and signed by the Parties. 14.Third-Partv Riahts. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies. 15. Governina Law; Choice of Venue. This Agreement shall be governed and construed in accordance with California law, including the Fair Political Practices Act of 1974. Venue shall be Riverside County. 16. Severability. If any provision of this Agreement becomes or is declared by a court to be illegal, unenforceable or void, that clause will be omitted and the remainder of the Agreement will continue in full force and effect. Such holding shall in no way affect the validity or enforceability of this Agreement. 17. Entire Aareement. This Agreement is the entire agreement between the Parties and supersedes any prior or contemporaneous representations, understandings or agreements, whether written or oral. CONTRACT NO. C34640A 18. Waiver of Jury Trial. The Parties specifically waive any right to trial by jury in any court with respect to any contractual, tortious or statutory claim, counterclaim or cross claim against the other arising out of or connected in any way to this Agreement because the Parties hereto, both of whom are represented by counsel, believe that the complex commercial and professional aspects of their dealing with one another make a jury determination neither desirable nor appropriate. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first hereinabove written. CITY OF PALM DESERT Robert A. Spiegel, Mayor ATTEST: Rachelle D. Klassen, City Clerk H&LPARTNERS Mark Schaeffer Approved As To Form: Robert Hargreaves, City Attorney G:\Econ Development\Thomas Soule\HWPRODUCTION AGREEMENT Ad Campaign.doc CONTRACT NO. C34640A 353 SACRAMENTO STREET K4 Lo TWENTY-FIRST FLOOR SAN FRANCISCO, CA 94111 415.434.8500 PARTNERS EXHIBIT "A" Estimate City of Palm Desert Donna Gomez 73510 Fred Waring Drive Palm Desert, CA 92260 USA Estimate: 7832 - 3 - 1 Date: 3/15/2016 Page: 1/1 Estimate: 007832 FY16-17 New Print Digtial Campaign Job: 012713 FY16-17 New Print Digtial Campaign Component:03 TRAVEL Component:03 TRAVEL Quote: 01 Revision: 0 Production of new campaign photography and video. Travel related to production of new campaign. Descriotion: Amount: Outside Vendor Costs 10,000.00 Total: $10, 000.00 This estimate is subject to a "+/-" 10% contingency. Client approval constitutes payment obligation. Agency Client Approval Authorization: Approved By: Date: 3/15/2016 Date: Purchase Order: Page 1 CONTRACT NO. C34640A Fk4Li'*) PARTNERS City of Palm Desert Donna Gomez 73510 Fred Waring Drive Palm Desert, CA 92260 USA 353SACRAMENTO STREET TWENTY-FIRST FLOOR SAN FRANCISCO, CA 94111 415.434.8500 EXHIBIT "A" Estimate Estimate: 7832 - 2 - 1 Date: 3/15/2016 Page: 1/1 Estimate: 007832 FY16-17 New Print Digtial Campaign Job: 012713 FY16-17 New Print Digtial Campaign Component: 02 FY16-17 New Print+ Digital Component: 01 FY16-17 New Print+ Digital Campaign Campaign Quote: 01 Revision: 0 Estimate covers agency services for new creative campaign. Agency services include general account services, project management, art direction, copy writing and supervision of production (photoshoot, video). DeSCriDtion: Amount: Account Service 6,313.75 Creative 18,941.25 Total: $25,255.00 This estimate is subject to a "+/-" 10% contingency. Client approval constitutes payment obligation. Agency Client Approval Authorization: Approved By: Date: 3/15/2016 Date: Purchase Order: Page 2 CONTRACT NO. C34640A K4 L016 PARTNERS City of Palm Desert Donna Gomez 73510 Fred Waring Drive Palm Desert, CA 92260 USA 353 SACRAMENTO STREET TWENTY-FIRST FLOOR SAN FRANCISCO, CA 94111 415.434.8500 EXHIBIT "A" Estimate Estimate: 7832 - 1 - 1 Date: 3/15/2016 Page: 1/1 Estimate: 007832 FY16-17 New Print Digtial Campaign Job: 012713 FY16-17 New Print Digtial Campaign Component:01 PRODUCTION Component:02 PRODUCTION Quote: 01 Revision: 0 Production of new campaign photography and video. Descriution: Amount: Production 69,745.00 Total: $69,745.00 This estimate is subject to a "+/-" 10% contingency. Client approval constitutes payment obligation. Agency Client Approval Authorization: Approved By: Date: 3/15/2016 Date: Purchase Order: Page 3