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Agenda 11/08/2011 Item #16F2�1 EXECUTIVE SUMMARY n 11/8/2011 Item 16.F.2. Recommendation to approve the recognition of Carry Forward in Tourism Promotion Fund 184 fora Fall and enhanced Winter Marketing Plan and authorize the Chairman to sign Change Order #2 to Contract #10 -b541 with Paradise Advertising and Marketing, Inc. In the amount of $350,000 for this purpose and authorize all necessary budget amendments. OBJECTIVE: Recognize funds carried forward in Tourism Promotion Fund 184 from FY 11 for use in FY 12 marketing efforts. CONSIDERATIONS: The Tourist Development Council (TDC) requested that staff prepare an agenda item for consideration by the Board of County Commissioners to recognize additional carry forward funds in Tourism Promotion Fund (184) and appropriate $350,000 to provide a fall marketing campaign and enhancements to the first quarter 2012 Northern US campaign. The carry forward amount is due in part to additional FY 11 tourist tax revenue over forecast and proceeds from a legal settlement with online travel company sales of hotel rooms. The approximate expenditures for the $350,000 will be allocated along these guidelines: Up to $155,000 for a Fall television, digital and social media campaign in the Florida markets of Miami /Ft. Lauderdale, Palm Beach and Orlando. Up to $195,000 to enhance the existing television, digital and social media advertising and promotion campaign in New York and Chicago, and for a. new advertising and promotion campaign in Boston, Philadelphia and Washington D.C. FISCAL IMPACT: Additional unbudgeted carry forward in the amount of $350,000 is available in Tourism Promotion Fund (184). The positive variance is attributable to TDC proceeds from the OTC law suit and greater Tourist Tax revenue than anticipated in FY 11. A budget amendment will be required increasing carry forward and increasing the promotion and marketing budget. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management plan with this action. LEGAL CONSIDERATION: This item has been reviewed by the County Attorney's Office, is legally sufficient, and requires majority vote. — CMG ADVISORY BOARD RECOMMENDATION: The Tourist Development Council unanimously (9-0) recommended this action on October 24, 2011. Packet Page -1262- 11/8/2011 Item 16. F.2. RECOMMENDATION: That the Board of County Commissioners approve the recognition of Carry Forward in Tourism Promotion Fund 184 for a Fall and enhanced Winter Marketing Plan and authorize the Chairman to sign Change Order #2 to Contract #10 -5541 with Paradise Advertising and Marketing, Inc. in the amount of $350,000 for this purpose and authorize all necessary budget amendments. SUBMITTED BY: Jack Wert, Tourism Director Packet Page -1263- COLLIER COUNTY Board of County Commissioners Item Number: 16.F.2. 11/8/2011 Item 16. F.2. Item Summary: Recommendation to approve the recognition of Carry Forward in Tourism Promotion Fund 184 for a Fall and enhanced Winter Marketing Plan and authorize the Chairman to sign Change Order #2 to Contract #10 -5541 with Paradise Advertising and Marketing, Inc. in the amount of $350,000 for this purpose and authorize all necessary budget amendments. Meeting Date: 11/8/2011 Prepared By Name: GreenKelly Title: Tourist Development Tax Coordinator,Tourism 10/26/2011 3:34:30 PM Submitted by Title: Director - Tourism,Tourism Name: WertJack 10/26/2011 3:34:32 PM Approved By Name: WertJack Title: Director - Tourism,Tourism Date: 10/26/20114:58:21 PM Name: WoodLyn Title: Contracts Specialist,Purchasing & General Services Date: 10/27/20118:29:26 AM Name: CarnellSteve Title: Director - Purchasing /General Services,Purchasing Date: 10/27/2011 2:26:28 PM Name: GreeneColleen Title: Assistant County Attorney,County Attorney Packet Page -1264- Date: 10/27/20113:14:44 PM Name: KlatzkowJeff Title: County Attorney, Date: 10/28/2011 1:46:42 PM Name: FinnEd Date: 11/1/20112:57:46 PM Name: IsacksonMark 11/8/2011 Item 16.F.2. Title: Director -Corp Financial and Mgmt Svs,CMO Date: 11/1 /2011 3:18:24 PM Packet Page -1265- C;OMr Comity Aitmstl Sevices Dmsicn /00"\. Purchasing ® Contract Change Request 11/8/2011 Item 16.17.2. Purchasing Department Change Modification Form ❑ Work Order Modification Contract #: 10- Mod #: 2 PO/Work Order #: Project Name: 5541 $3,100,000 4500132032 Tourism Marketing Services Project #: n/a Project Manager: Department: Contractor /Firm Name: Paradise Dollar Amount of this Change Jack Wert Tourism Advertising and Marketing, Inc. Original Contract/Work Order Amount $2,'300,000 3/22 " /.1 f, Original BCC Approval Date; Item # 10B Current BCC Approved Amount $3,100,000 7/26111 Last BCC Approval Date; Item # 10D Current Contract/Work Order Amount $3,1"001'000 9/3012012 SAP Contract Expiration Date (Master) Dollar Amount of this Change $350 000:00: 50.00% Total Change from Original Amount Revised Contract/Work Order Total $3,450,000.00 Enhanced marketing opportunities 11.29% Change from Current BCC Approved Amount Cumulative Changes $1,150,000.00 f2. Provide detailed rationale for the requested change: Funding for a fall marketing campaign was unanimously 11.29% Change from Current Amount Completion Date, Description of the Task(s) Change,, and Rationale for the Change- Original notice to proceed Last approved completion date: n/a Revised completion date (includes this completion date: n/a change): n/a Number of days added (if Explain why additional days are needed (detailed /specific): extension, must attach current insurance certificate(s) from SIRE n/a or obtain from vendor Add new task(s) Change task(s) Delete task(s) Other (specify): Enhanced marketing opportunities Provide a detailed and specific explanation of the requested change(s) to the task(s): Add to contract up to $350,000 to provide a new fall 2011 marketing and advertising campaign in Florida and an enhanced marketing campaign in New York and Chicago and a new campaign in Boston, Washington DC and Philadelphia. f2. Provide detailed rationale for the requested change: Funding for a fall marketing campaign was unanimously recommended (9 -0) to the Board of County Commissioners by the Tourist Development Council on October 24, 2011. 3. Provide explanation why change was not anticipated in original scope of work: Additional funding for an enhanced Fall marketing campaign and new northern markets was not approved or anticipated at the time the current agreement with Paradise Advertising and Marketing, Inc. was renewed. 4. Describe the impact if this change is not processed: Processing of this Change Order will allow recognition of FY 11 carryforward funds to provide a Fall marketing campaign to promote the destination in advance of the planned winter I campaign and to enhance the first quarter 2012 campaign. If these funds are not recognized for current fiscal year expenditures, our destination will lose the ability to influence early first quarter 2012 travel plans resulting in lost market I share to competing Florida destinations. Type of Change /Modification ❑ 1. Planned Elective ® 2. Unforeseen conditions /circumstance ( ❑ 3. Quantity or price adjustment ❑ 4. Correction of error(s) 5. Value added I ❑ 6. Schedule adjustment Change Requested By ❑ Contractor /Consultant 1 0 Owner I Z Using Department Desi n Professional ! Re ulato A enc s eci ❑ Other s eci ): irchasing Professional Participated in Negotiation of Change / Modification: ❑ Yes ® No Packet Page -1266- Revised: 7127111 1 Date: 1 i 11/8/2011 Item 16.F.2. I Name and Title: Jack Wert, Tourism Director I I Reviewed by: Date: &'�' / f Procurement Strategist's Name: ' :% - I It r I Revised: 7/27/11 2 Packet Page -1267- v CHANGE ORDER. CHANGE ORDER NO.') TO: Paradise Advertising and Marketing. Inc. 150 Second Ave. N.. Suite 800 St. Petersburg. FL 33701 DATE: l Ot24i2011 PROTECT NAME: Tourism Marketing Services Under our AGREEMENT dated March 22.2011 11/8/2011 Item 16. F.2. - CONTRACT NO. 10 -5541 BCC Date: 3/22 /2011 Agenda Item: 10B You hereby are authorized and directed to make the following change(s) in accordance with terms and conditions of the Agreement: Up to $350,000 to provide a fall marketing campaign and enhancements to the 2012 first quarter Northern US winter campaign- as follows: • Up to $155,000 for a Fall television, digital and social media campaign in the Florida markets of Miami /Ft. Lauderdale, Palm Beach and Orlando. • Up to $195,000 to enhance the existing television, digital and social media advertising and promotion. campaign in New York and Chicago, and for a new advertising and promotion campaign in Boston, Philadelphia and Washington D.C. FOR THE (Additive) Sum of. $350.000; Three hundred fifty thousand dollars. Original Agreement Amount $2.300.000 Sum of Previous Changes $ 800.000 This Change Order add $ 350.000 Present Agreement Amount $3.450.000 Packet Page -1268- 11/8/2011 Item 16. F.2. The time for completion shall be increased or decreased by n/a calendar days due to this Change Order. Accordingly, the Contract Time is now n,a calendar days. The substantial completion date is n`a and the final completion date is n /a.. Your acceptance of this Change Order shall constitute a modification to our Agreement and will be performed subject to all the same terms and conditions as contained in our Agreement indicated above, as fully as if the same were repeated in this acceptance. The adjustment, if any, to the Agreement shall constitute a full and. final settlement of any and all claims of the Contractor arising out of or related to the change set forth herein, including claims for impact and delay costs. Date: ATTEST: BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY FLORJDA Dwight E. Brock, Clerk BY: _ BY: Fred W. Coyle, Chairman CONTRACTOR: Paradise Advertising and Marketing, Inc. No Cedar Hames. President Approved As To Form d egal Sufficiency: Assistant Countv Attorney Packet Page -1269-