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sr-012610-1a~® ~;~YOf; City Council Report Santa Monica City Council Meeting: January 26, 2010 Agenda Item: 1-_ ~ To: Mayor and City Council From: Barbara Stinchfield, Director of Community & Cultural Services Subject: Contract Modification for Business Development and Marketing Services at the Annenberg Community Beach House Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a modification to Professional Services Agreement No. 1844 with Hospitality Atelier in an amount not to exceed $59,600 for a total contract amount of $129,100 for business development and marketing services associated with private events at the Annenberg Community Beach House through June 30, 2010. Executive Summary The City entered into a professional services agreement with Hospitality Atelier for business development and marketing services for private events at the Annenberg Community Beach House. The original contract amount was for $69,500 and included initial activities associated with marketing the site for private events both on-line and in print as well as developing partnerships with local hotels and the Convention and Visitors Bureau. The expanded scope of work will build upon these initial business development efforts to promote the site for meetings and film and television shoots. Discussion On April 17, 2009 the City issued a Request for Proposals (RFP) on PlanetBids for business development and marketing services for the private events at the Beach House. Nine proposals were received at the close of the RFP process. Following review of the proposals by an interdepartmental team with representatives from Community & Cultural Services and Housing and Economic Development, six shortlisted firms were interviewed and Hospitality Atelier was selected based upon their qualifications, references and scope of services and the city entered into a professional services agreement with Hospitality Atelier. To date the consultant has provided expertise in refinement of the Beach House booking guidelines including pricing strategies, staffing guidelines, and catering parameters and has initiated business 1 development activities through both online marketing and forming partnerships with the Conventions and Visitors Bureau, the Annenberg Foundation, local hoteliers and meeting planners to promote the Beach Club for private meeting use. Hospitality Atelier has also provided input and direction for the creation of collateral materials for private event sales. Hospitality Atelier's services to date have been of high quality including working closely with City Staff and the CVB to host a Beach House Showcase for local hoteliers this past fall to promote the Beach House as a venue for their clients, launching on-line marketing for private events with an evaluation component and securing several recent photo shoots at the site. Increasing and extending the contract will enable Hospitality Atelier to build upon its work to date, including but not limited to proactive marketing and sales with focus on the corporate and business sectors through continued development of Internet marketing strategies and ongoing detailed analysis to optimize their effectiveness, analysis of the pacing of bookings including development of recommendations for targeted business development for certain key sectors, specialized business development trainings and weekly technical assistance for Beach House events staff as well as marketing the site for film and television shoots which is an area of business development that has not been marketed to date. Financial Impacts & Budget Actions Funds in the amount of $59,600 are available in account 24523.555060. Prepared by: Karen Ginsberg, Assistant Director Barbara Stinchfield Director of Community &Cultural Services 2 Approved: Forwarded to Council: Reference Contract No. 9169 (CCS)