Agenda 04/13/2010 Item #16F 6
EXECUTIVE SUMMARY
Agenda Item No. 16F6
April 13, 2010
Page 1 of 11
Recommendation to approve Change Order #4 on Contract 06-4007 with Paradise
Advertising and Marketing, Inc. for up to $1,875,000 in additional billing at gross in
accordance with their agreement with Collier County and authorize the Chairman to
execute the Change Order.
OBJECTIVE: Approve Change Order #4 for additional expenditures of up to $1,875,000 with
Paradise Advertising and Marketing, Inc. above the agreed $2,000,000 level at gross rate.
CONSIDERATIONS: The First Amendment of the agreement with Paradise Advertising and
Marketing, Inc. dated October 9, 2007 (attached) indicates a monthly service fee in the amount
of$25,000 ($300,000 annually). This service fee covers the standard agency commission of 15%
on all media and production costs for regular and emergency advertising up to an aggregate of
$2,000,000 annually. The agreement further stipulates that media or production billing for
regular and emergency advertising over an aggregate of $2 million annually will be added by
change order and will be billed by Paradise Advertising and Marketing, Inc. at gross, reflecting a
commission of 15%.
On December I, 2009, the Board of County Commissioners unanimously approved (5-0, Item
16F4) additional tourism promotion funding from beach renourishment reserves. (Executive
Summary attached). These additional funds were to be added to previously approved emergency
advertising funds and prior year carry forward funds to assist the Convention & Visitors Bureau
(CVB) to expand and extend their destination marketing, research and promotional efforts to a
more year-round effort.
This Change Order action is part of that approval of additional tourist tax funding, a portion of
which was allocated to Paradise Advertising and Marketing, Inc for advertising purposes. Those
additional funds will exceed the contract amount of $2,000,000 by the requested $1,875,000.
ADVISORY COMMITTEE RECOMMENDATIONS: The TDC recommended approval of
the additional billing in a 5-0 vote at the March 15, 2010 meeting.
FISCAL IMPACT: $1,750,000 has been transferred via budget amendments from Emergency
Advertising Fund 196 and Beach Reserves Funds 195 and l83 respectively. The remaining
$125,000 was recognized carry forward in Fund [84.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office
and is legally sufficient for Board action. - CMG
RECOMMENDATION: That the Board of County Commissioners approves Change Order #4
on Contract 06-4007 with Paradise Advertising and Marketing, Inc. for up to $1,875,000 in
additional billing at gross reflecting the standard agency commission of 15% and authorizes the
Chairman to execute the Change Order.
PREPARED BY: Jack Wert, Tourism Director
Item Number:
Item Summary:
Meeting Date:
Agenda Item No. 16F6
April 13. 2010
Page 2 of 11
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16F6
Recommendation to approve Change Order #4 on Contract 06-4007 with Paradise
Advertising and Marketing, inc. for up to $1,875,000 in additional billing at gross in
accordance with their agreement with Collier County and authorize the Chairman to execute
the Change Order.
4/13/20109:00:00 AM
Date
Prepared By
Jack Wert
Tourism
Director. Tourism
Tourism
4/1/20103:13:52 PM
Date
Approved By
Lyn Wood
Administrative Services
Division
Contracts Specialist
Purchasing & General Services
4/1120104:35 PM
Date
Approved By
Colleen Greene
County Attorney
Assistant County Attorney
County Attorney
4/1120104:35 PM
Date
/"- Approved By
Jack Wert
Tourism
Director - Tourism
Tourism
4/2/20108:14 AM
Date
Approved By
Steve Carnell
Administrative Services
Division
Director - Purchasing/General Services
Purchasing & General Services
4/2/20108:35 AM
Date
Approved By
OMS Coordinator
County Manager's Office
Office of Management & Budget
4/2/2010 9:22 AM
Date
Approved By
Jeff Klatzkow
County Attorney
4/5/2010 9:56 AM
Date
Approved By
Leo E. Ochs, Jr.
County Managers Office
County Manager
County Managers Office
4/6/201010:16 AM
t2d~~ii~~
/3~~ ~~3//C:;
CONTRACTIWORK ORDER MODIFICATION
CHECKLIST FORM
PROJECT NAME: Tourism Marketing Services
MOD#:~PO#: 4500112116
PROJECT#: nla
WORK ORDER #:
BIDIRFP #: 0604007
DEPARTMENT: Tourism
CONTRACTOR/FIRM NAME: Paradise Advertisino and Marketlno
Original Contract Amount:
$ _2,350,000
(Starting Paint)
Current BCC Approved Amount:
$_ 4.656,836
(Last Total Amount Approved by the BCC)
Current Contract Amount:
$_ 4,656,836
(Including All Changes Prior To This Modification)
Change Amount:
$_ 1,875,000
$ 6.531.836
(i;;cluding This Change Order)
Revised ContractIWork Order Amount:
Cumulative Dollar Value of Changes to
this ContractlWork Order:
$_4,181.836
Dale of Last BCC Approval 7128/09
Agenda Item # _16F11
Percentage of the change over/under current contract amount
Fonnula: (Revised Amount I Last BCC approved amount)-l
40
%
CURRENT COMPLETION DATE (S): ORIGINAL:
CURRENT:
oncaine
This change order will: IZI Add a new Task for $1,875 000 0 Incr.ase Task Number _by$
Other
Describe the change(s):
Additional expenditures of up to $1,875,000 to fund the tourism department year round marketing campaign
using Emergency Advertising and special reserve funds at gross amount as recommended by the Tourist
Development Council and approved by the Board of County Commissioners on 12/1/09.
Specify the reasons for the change(s) r. 1. Planned or Elective r 2. Unforeseen Conditions r 3. Quantity
Adjustments r 4. Correction of Errors (Plans, Specifications or Scope of Work) r 5. Value Added
r 6. Schedule Adjustments Note: One or more may be checked, depending on the nature of the change(s).
Identify all negative impacts to the project if this change order were not processed: FWAllle ..e ..~~~o~~I~1he
year round marketing campaign as recommended by the TOC and approved by the BCCu./'-rH.<L d.. /1.-d,t 0' ~ (!'puL..
This change was requested by: Plcontractor/Consultant rl Owner rl Using Department C CDES
CDesign Professional r1Regulatory Agency (Specify)
r Other (Specify)
CONTRACT SPECIALIST PARTICIPATION IN NEGOTIATIONS:
rYes
P No
Revised 6 18 09
I
This form is to be signed and dated.
,...---.,-- .-----4.
APPROVED BY;::... "C"~A'~ --:::-'"'""" \-
Project Manager
"'''''''D oY ~ m f(, J~
Con ct, pecial(st
Agenda Item No. 16F6
April 13, 2010
Page 4 of 11
Date:
1./ I/I/{;J
.
Date:
flIICJ
Revised 6 18 09
Agendi3"lfem NO. I bt-b
April 13, 2010
Page 5 of 11
CHANGE ORDER
CHANGE ORDER NO.
4
CONTRACT NO. 06-4007
BCC Date: 10/10/06
Agenda Item: lOG
TO: Paradise Advertisin2 and Marketin2
150 Second Avenue North #800
St. Petersbun!. FL 33701
DATE: 3/29/1 0
PROJECT NAME:
Tourism Marketin2 Services
PROJECT NO.:
Under our AGREEMENT dated
October 10,
, 2Q..QL.
You hereby are authorized and directed to make the following change(s) in accordance with terms and
conditions of the Agreement: Additional expenditures of up to $1,875,000 to fund the year round tourism
marketing campaign at the gross amount.
FOR THE (Additive) Sum of:
($ 1 875.000
One million ei2ht hundred seventy five thousand dollars
)
Original Agreement Amount
$
$
$
2.306836
2.350000
Sum of Previous Changes
This Change Order add
1.875.000
Present Agreement Amount
$
6.531 836
The time for completion shall be increased by _0_ calendar days due to this Change Order.
Accordingly, the Contract Time is now _nla_ calendar days. The substantial completion date is
_nla and the final completion date is _nla_. Your acceptance of this Change Order
shall constitute a modification to onr 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 adjnstment, 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.
i
~ Accepted:
L/ / / , 20 10.
CONTRACTOR:
Paradise Advertising and Marketing
By: C.-J. ~~ ~~ ,,_
Cedar Hames, President
A TrEST:
Dwight E. Brock, Clerk
BY:
Approved As To Form
~~Legal Sufficiency:
0~'J
mtName: to\\~6v(,tV\L
Assistant County Attorney
Agenda Item No. 16F6
April 13, 2010
Page 6 of 11
OWNER:
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY FLORIDA
By:
Fred Coyle, Chairman
.
.
Agenda Item No. 16F6
April 13, 2010
Page 7 of 11
FIRST AMENDMENT
2006 TOURISM MARKETING SERVICES AGREEMENT (CONTRACT #06-4007)
BETWEEN COLLIER COUNTY AND PARADISE ADVERTISING AND MARKETING,
INC.
This First Amendment to the 2006 Tourism Marketing Services Agreement, made this ~
day of Cl:..hlbt/ , 2007, (hereinafter referred to as "First Amendment"), is entered into by
and between the Board of County Commissioners of Collier County, Florida (hereinafter referred to
as "COUNTY"), and Paradise Advertising and Marketing, Inc. (hereinafter referred to as
"CONTRACTOR").
WITNESSETH:
WHEREAS, the COUNTY and CONTRACTOR entered into a 2006 Tourism Agreement
dated October 10, 2006 (the "Agreement") with CONTRACTOR; and
WHEREAS, the COUNTY and CONTRACTOR desire to further amend the terms of the
Agreement.
NOW, THEREFORE, in consideration of valuable consideration and the premises and
mutual covenants hereinafter set forth, the parties agree as follows:
1. Section 4 of said Agreement is hereby deleted in its entirety and the following
paragraph is inserted in its place:
AGENCY FEE.
For regular and emergency advertising, the County agrees to pay the Contractor a fee of
Twenty-Five Thousand Dollars ($25,000.00) per month based upon a total annual fee of
Three Hundred Thousand Dollars ($300,000.00) as consideration for all professional time
devoted to account administration, client meetings, strategic planning, media planning,
media negotiation, media placement, broadca.<;t traffic and billing. All media and production
costs for regular and emergency advertising, including but not limited to, creative and
outside vendor costs up to an aggregate of Two Million Dollars ($2,000,000.00) annually
will be billed to the County at net, so that the County receives any available agency
discount. Media or production billing for regular and emergency advertising over an
aggregate of Two Million Dollars ($2,000,000.00) annually will be added by change order
and will be hilled at gross, rellecting a commission of fifteen percent (15%) payable to
Contractor. The Contractor fee will be billed on the first day of each month beginning
October 1, 2006.
The County Museum advertising budget is One Hundred Twenty Thousand Dollars
($120,000.00) and will be billed at gross, reflecting a Contractor commission of fifteen
percent (15%).
All charges for advertising, production, photography, on-line production design, printing,
direct mail, audiovisual production services, marketing research and museum promotional
activity will be estimated by the Contractor and authorized in writing by the Tourism
Director or his designee and billed on a project basis. Out-of-pocket expenses will be billed
at net.
The Contractor agrees, if requested by the County, to provide emergency pro bono publicity
a.t19 public rel~Jions services, up to Six Thousand Dollars ($6.000.00) in staff time on an
annual basis. Additionally, the Contractor \viII make publicity and public relations"services
over and above the emergency budget available on an as-needed basis, estimated in advance
on an estimate form and submitted to the Tourism Director, or his designee, for prior written
approval before expenses are incurred.
.
.
Agenda Item No. 16F6
April 13, 2010
Page 8 of 11
IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by
their duly authorized officers and their official seals, hereto affixed the day and year fust written
above.
.;.~,~JIP.'l1 '2.<>:>1
DAWlJ'~ J
AtSt;-." "" '<-
D <1tlfti. il~c;g, Clerk
: ~ : ').:,j }
..... . ~ l \~ .-
(' .~
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By: A~ ~/
JAMlfs COLETTA, Chairman
Approved as to fonn and
legal sufficiency:
Heidi 4i6ckf--LK D
Assistant County Attorney
WITNESSES:
(l)i..,....A\L(j I,) Jh~
signature
..4s~ \~ ~\jj(N-
Printedn'y 6:1 ame '
CONTRACTOR:
PARADISE ADVERTISING AND MARKET
INC.
(2)(~'t~
s;fnatu
r.w:;, -
'-.-{.j j",,,
Printedffyped Name
-y.,,~&-'::-,
By: L~p'~ -7-k,/kJ"-4-
CEDAR S, President
CP:TDC\l- Amend 2007 Pllnldisc Advertising & Marketing, Inc.
Agenda Item No. 16F6
April 13, 2010
Page 9 of 11
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners approves a Budget
Amendment in the amount of $1,000,000 pursuant to Ordinance 2009-58
increasing the adopted budget for tourism promotion, advertising and marketing
as appropriated within Fund (184).
OBJECTIVE: Increase the adopted budget for tourism marketing, promotion and
advertising consistent with previous action by the Board of County
Commissioners.
CONSIDERATIONS: The Board of County Commissioners discussed on
October 27,2009 and approved on November 10, 2009 - pursuant to Ordinance
2009-58 - the transfer of $1,000,000 from Fund (195) catastrophe and beach
renourisment reserves to tourism marketing and promotion Fund (184). This
movement of funds ;s for one year and is intended to support promotion and
advertising during this current economic downturn. The following table provides a
description of the adopted and amended operating appropriations as proposed
for FY 201 0 within Tourism promotion advertising Fund (184).
Appropriation Object FY 2010 Adopted FY 2010 Amended Variance
Code Description Budget Budget - Proposed
Other Contractual - $6,000 $6,000 $0
Tourism Research
Other Contractual $1,416,200 $1,641,200 $225,000
Services - Contracts for
public relations, local
media, research,
oversees media
consulting and various
marketing support
expenses
Out of County Travel $95,300 $95,300 $0
Postage and Freight $2,000 $2,000 $0
Insurance General $16,700 $16,700 $0
Printing $25,000 $25,000 $0
Marketing and $2,173,000 $2,948,000 $775,000
Promotion - Paid
Advertising and
Production including
.. .Paradise Advertising,
Press Release
Distributions, Individual
and Group FAMS, Video
Releases
Dues and Memberships $158,800 $158,800 $0
Total $3,893,000 $4,893,000 $1,000,000
Agenda Item No. 16F6
April 13, 2010
Page 10 of 11
New Fall Southeast Florida Leisure Campaign
. Markets: Miami/Ft. Lauderdale and West Palm Beach
Timing: November 2009
. Spot Television: Early Morning "Roadblock" across ABC, CBS, NBC &
Fox Networks
. Monday - Wednesday; 1 commercial per hour airing from 5-9 am
. Cable Television Monday - Wednesday; 6 PM to Midnight Primetime
Enhanced Winter Leisure Campaign
Addition of Philadelphia
Enhanced schedule in Chicago
Enhanced schedule in New York
TOTAL Enhanced Media
Timing: January - March, 2010
Media: Early Morning "Roadblock" across ABC, CBS, NBC and FOX
Cable television to add primetime timeframe for additional reach
Online marketing on weather-related channels to add continuity of
message delivery
Digital Marketing to include social, mobile, interactive digital media
TOTAL MARKETING AND PROMOTION ENHANCEMENTS $775,000
$117,000
$275,000
$187,500
$195,500
$658,000
· Additional Marketing Projects To Include:
. Visitor Center Coordinator Position
(Chamber Employee split funded with Tourism)$ 50,000
Consolidated Visitor Guide
(Destination Guide combining Chambers
and CVB publications
. Sales Familiarization Tours & Events
. PR Media Event in New York
. Consumer & IntI. Website Enhancements
Enhanced ROI Research Studies
TOTAL ADDITIONAL PROJECTS
$ 50,000
$ 25,000
$ 25,000
$ 50,000
$ 25.000
$225,000
FISCAL IMPACT: A budget amendment in the amount of $1,000,000 will be
necessary to move funds from Fund (195) Beach Renourishment/Pass
Maintenance reserves to the appropriate object codes within Tourism Promotion
and Advertising Fund (184).
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth
Management Plan with this action.
LEGAL CONSIDERATIONS: This item has been reviewed by the County
Attorney's Office and is legally sufficient for Board action. - CMG
Agenda Item No. 16F6
April 13, 2010
Page 11 of 11
RECOMMENDATION: That the Board of County Commissioners approves a
budget amendment in the amount of $1,000,000 transferring funds from Fund
(195) Beach Renourishment/Pass Maintenance reserves to the appropriate
object codes within Tourism Promotion and Advertising Fund (184).
SUBMITTED BY: Jack Wert, Tourism Director