sr-061411-3cCity Council Meeting: June 14, 2011
Agenda Item: ~- CJ
To: Mayor and City Council
From: Barbara Stinchfield, Director of Community & Cultural Services
Subject: Contract Modification for Extension of 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. 2141 with Hospitality
Atelier for FY11-12 in an amount not to exceed $45,625, with an option to renew the
agreement for FY12-13, in an amount not to exceed $46,856, for a total contract
amount of $162,356 for business development and marketing services associated with
private events at the Annenberg Community Beach House.
Executive Summary
The Annenberg Community Beach House (the Beach House), currently in its second
year of business as an event venue, has successfully used the expertise of a business
development and marketing consultant and proposes to continue the relationship with
the current consultant, Hospitality Atelier, requesting a contract modification to extend
Hospitality Atelier's current agreement for FY11-12 in the amount of $45,625. The
modification will enable Hospitality Atelier to continue to fine-tune, capitalize on, and
further expand activities to support sales and promote the Beach House as a site for
meetings, social events and as a location for film, TV and photo shoots.
Background
Cn July 22, 2009 in anticipation of the opening of the Annenberg Community Beach
House, the City entered into a professional services agreement with Hospitality Atelier.
for business ,development and marketing services for private events for an eight-month
contract period. The original contract was for $69,540 and included initial activities
associated with marketing the site for private events both online and in print, as well as
developing partnerships with local hotels and the Convention and Visitors Bureau. On
Januant 26. 2010 Council approved a first modification of the original contract in the
amount of $59,600 for athree-month contract period, increasing the total original
1
contract to $129,100. This contract expired on June 30, 2010. Anew agreement with
Hospitality Atelier for FYi d-11 in the amount of $69,875 was executed.
Discussion
On April 17, 2009, the City issued a Request for Proposals (RFP) on PlanetBids for
business development and marketing services for 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 and
Cultural Services and Housing and Economic Qevelopment, six shortlisted firms were
interviewed. Hospitality Atelier was selected based upon their qualifications in
launching sales and marketing operations for high profile properties in the hospitality
arena references, and scope of services. Hospitality Atelier is currently providing
services and a high level of expertise. Assisting the Beach House event staff, the
consultant has contributed to a significant increase in event-related revenue in FY 10-11
which represents an approximate 57% increase over the prior year. Extending the
agreement for FY 11-12 will enable Hospitality Atelier to continue its strong relationship
with the Beach House team and build upan its services to date. Specific areas of focus
will be proactive sales and marketing strategies to business segments including Beach
House catering partners, destination management companies, teambuilding
businesses, the local business community and targeted sales to hotels in the area that
do not benefit from having oceanfront property. Additional services will include an
analysis of online marketing efforts to date and development of recommendations
designed to enhance social media marketing efforts, enriching the partnership with the
Convention and Visitors Bureau, and, capitalizing on the increased booking. of the
Beach House as a location for film, TV and print shoots by cross marketing to general
Beach House and industry audiences integrating search engine optimization as well as
pay-per-performance ads on industry sites. The term shall commence on the execution
date; and shall terminate upon the completion of the services specified in the scope, or
June 30, 2012, with an additional one year renewal option not to exceed $46,856.
2
Financial impacts & Budget Actions
The contract modification to be awarded to Hospitality Atelier is $45,625. The total
contract amount will not exceed $162,356. Funds in the amount of $92,481 are
included in the proposed FY11-13 ($45,625 for FY11-12 and $46,856 for FY12-13)
budget in account 24523.555060.
Prepared by: Nan Friedman, Manager, Annenberg Community Beach House
Approved:
Forwrarded to Council:
Barbara Stinchfield
Director of Community & Cultural
Services
~,
'-~~' ~~~
Rod Gould
City Manager
3
Reference Contract No.
9379 (CCS)