Agenda 07/22/2008 Item #10JAgenda Item No. 10J
July 22, 2008
Page 1 of 10
EXECUTIVE SUMMARY
Recommend Approval of Change Order #1 in the amount of $700,000
on Contract 06 -4007 with Paradise Advertising & Marketing, Inc for
additional billing over $2,000,000.
OBJECTIVE: To increase the marketing dollars available for expenditure during the
slow summer and in the case of a declared emergency.
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. 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 at gross, reflecting a commission of
15% payable to Paradise Advertising and Marketing, Inc. The approved FY 08 Tourism
Department budget for marketing and advertising is $2,400,000, so additional
expenditures covered by this action were pre- authorized in the FY 08 budget.
Paradise has billed $808,243 to date for media and production with another $1,191,757
committed but not yet billed by Media Insertion Orders for a total paid or committed of
$2,000,000. They are projecting the expenditure of an additional $125,000 in media and
$75,000 in production for a total or $200,000 in the balance of the fiscal year ending
September 30, 2008. By County Resolution 2007 -278, Paradise is also authorized to
spend up to $500,000 in emergency advertising and promotion, if needed. If all these
additional funds are spent, a total of $700,000 would be billed to Collier County at gross
reflecting the standard 15% commission.
ADVISORY COMMITTEE RECOMMENDATIONS: The TDC recommended approval
of the Change Order on an 8 -0 vote at the June 23, 2008 Meeting.
COUNTY ATTORNEY FINDING: This item has been reviewed and approved by the
County Attorney's Office and is legally sufficient for Board action. - CMG
FISCAL IMPACT: The additional $200,000 is available in the approved FY 08
marketing and promotion budget in Fund 184 and the $500,000 of Emergency
Advertising is available in Fund 196.
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management
Plan related to this action.
RECOMMENDATION: That the Board of County Commissioners approves Change
Order #1 for $700,000 on Contract 06 -4007 with Paradise Advertising and Marketing for
additional expenditures of $200,000 for media and production costs and up to $500,000
in emergency advertising, if needed, for a total authorized expenditure of $700,000 at
Agenda Item No. 10J
July 22, 2008
Page 2 of 10
gross reflecting the standard agency commission of 15% and authorizes the Chairman
to execute the Change Order.
PREPARED BY: Jack Wert, Tourism Director
Page 1 of 1
Agenda Item No. IOJ
July 22, 2008
Page 3 of 10
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 10J
Item Summary: This item to be heard at 11:00 a.m. Recommend Approval of Change Order #1 in the amount
of $700,000 on Contract 06 -4007 with Paradise Advertising & Marketing: Inc for additional
billing over $2,000,000. (Jack Wert, Tourism Director)
Meeting Date: 7/22/2008 9:00:00 AM
Prepared By
Jack Wert
Tourism Director
Date
County Manager's Office
Tourism
7/9/2008 12:17:00 PM
Approved By
Lyn Wood
Purchasing Agent
Date
Administrative Services
Purchasing
7/9/2008 2:14 PM
Approved By
Jack Wert
Tourism Director
Date
County Manager's Office
Tourism
7/912008 2:67 PM
Approved By
Kelsey Ward
Contract Administration Manager
Date
Administrative Services
Purchasing
7/9/2008 4:05 PM
Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
711012008 8:18 AM
Approved By
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
7/10/2008 3:27 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
7111/2008 12:03 PM
file: / /C:\AgendaTest \Export\ 11 I - July %2022, %202008\ 10. %2000UNTY %20MANAGER %... 7/15/2008
Agenda Item No. 10J
July 22, 2008
CONTRACT/WORK ORDER MODIFICATION /'
CHECKLIST FORM
PROJECT NAME: Tourism Marketing Services PROJECT n/a
BID /RFP M 06-4007 MOD #: 2 PO#: 4500085806 WORK ORDER M Na
DEPARTMENT: Tourism CONTRACTORIFIRM NAME: Paradise Advertising and Marketing
Original Contract Amount: $ 2,350,000
(Starting Point)
Current BCC Approved Amount: $ 2.420A00
(Last Total Amount Approved by the BCC)
Current Contract Amount: $ 2.420.000
(Including All Changes Prior To This Modification)
Change Amount: S 700.000
Revised Contract/Work Order Amount: $ 3.120.000
(Including This Change Order)
Cumulative Dollar Value of Changes to
this Contract/Work Order: $ 770.000
Date of Last BCC Approval 9118.2007 Agenda Item # 16F3
Percentage of the change over /under current contract amount 29
Formula: (Revised Amount / Last BCC approved amount) -1
CURRENT COMPLETION DATE (S): ORIGINAL: CURRENT:
Describe the change(s): Additional marketing expenditures of up to $700,000 to be broken down as follows:
Media Costs: up to $125,000
Production Costs (online, print, collateral): up to $75,000
Emergency advertising and promotion: up to $500,000
Total: $700,000 - To be billed at gross (plus 15% commission)
Specify the reasons for the change(s) r 1. Planned or Elective r 2. Unforeseen Conditions t^ 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:
We need to spend marketing dollars this summer to increase visitation during the economic slowdown
This change was requested by: rlContractor /Consultant rl Owner rl Using Department C CDES
CDesign Professional FIRegulatory Agency (Specify) rOther (Specify)
CONTRACT SPECIALIST PARTICIPATION IN NEGOTIATIONS: r Yes r No
This form is to be signed and �and dated.
APPROVED BY: \
Proj-eMVanager /
REVIEWED BY:
Con" t Specialist
Revised 11.19.2007
Date: ( 8
Date: T —
CHANGE ORDER
CHANGE ORDER NO.
TO: Paradise Advertising and Marketing
150 Second Avenue North #800
St. Petersburg, FL 33701
DATE: 6/25/2008
PROJECT NAME: Tourism Marketing Services
PROJECT NO.:
Under our AGREEMENT dated October 10. 2006
Agenda Item No. 10J
July 22, 2008
Page 5 of 10
CONTRACT NO. 06 -4007
BCC Date: 10 /10 /2006
Agenda Item: 1 OG
You hereby are authorized and directed to make the following change(s) in accordance with terns and
conditions of the Agreement:
Additional marketing expenditures of up to $700,000 to be broken down as follows:
Media Costs: up to $125,000
Production Costs (online, print, collateral): up to $75,000
Emergency advertising and promotion: up to $500,000
Total: $700,000 — To be billed at gross (plus 15% commission)
FOR THE (Additive) Sum of: _ Seven hundred seventy thousand dollars
Original Agreement Amount $ 2 350 000
Sum of Previous Changes $ 70,000
This Change Order adds $ 700,000
Present Agreement Amount $ 3,120,000
The time for completion shall be increased by 0 calendar days due to this Change Order.
Accordingly, the Contract Time is now calendar days. The substantial completion date
is and the final completion date is . 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.
Accepted:
CONTRACTOR:
Paradise Advertiaing and Marketing
M
Cedar Hames, President
ATTEST:
Dwight E. Brock, Clerk
M.
Approved As To Form
and Legal Sufficiency:
Print Name:
Assistant County Attorney
,2008
FM
Agenda Item No. 10J
July 22, 2008
Page 6 of 10
OWNER:
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
Tom Henning, Chairman
0
9
Agenda Item No. 10J
July 22, 2008
FIRST AMENDMENT Page 7 of 10
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 [I,fdl>C.r- , 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, broadcast 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 billed at gross, reflecting 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
and public relations services, up to Six Thousand Dollars ($6,000.00) in staff time on an
annual basis. Additionally, the Contractor will make publicity and public relations- services - - --j
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. ,
0
• Agenda Item No. 10J
July 22, 2008
Page 8 of 10
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 first written
above.
BOARD OF COUNTY COMMISSIONERS
SCI& Clerk
a{yX%% tlY YU ON
*12"twt X9 3.
Approved as to form and
legal sufficiency:
LL d.
Heidi Ashton -Cicko
Assistant County Attorney
WITNESSES:
(1)
signature
Printed/
AV 1'y y« 'ed aSh 1
me
(2)
sygnatu
OY'd"-4-1
Printed/Typed Name
CP MD 1- A.c.d 2007 Pemdes Advertising& Marketing, Inc.
COLLIER COUNTY, FLORIDA
CONTRACTOR:
PARADISE ADVERTISING AND MARKET
INC.
By: 46il
CEDAR H ,_ S, President
Agenda Item No. 10J
July 22, 2008
RESOLUTION NO. 2007- 278 Page 9 of 10
RESOLUTION OF THE COLLIER COUNTY BOARD OF COUNTY
COMMISSIONERS AUTHORIZING USE OF EMERGENCY
ADVERTISING FUNDS.
WHEREAS, the Board of County Commissioners of Collier County sets aside tourist
development tax funds for Disaster Recovery Advertising in accordance with Ordinance No. 92 -60,
as amended; and
WHEREAS, the Board of County Commissioners desires to authorize staff to use up to
$5001000 annually from Fund 196 for Disaster Recovery Advertising on an as- needed basis.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: the Tourism Director is
authorized, after approval by the County Manager and the Chairman of the Tourist Development
Council, to use funds up to $500,000 annually for Disaster Recovery Advertising in accordance
with this Resolution; and
BE IT FURTHER RESOLVED, the Board of County Commissioners finds that
circumstances or events in or near Collier County which warrant the immediate use of Disaster
Recovery Funds include, but are not limited to: unusual weather events such as a hurricane, tropical
storm or tropical depression; and wildfires or series of brushfires; and
BE IT FURTHER RESOLVED, the Board of County Commissioners further finds that no
funds may be used until the Board of County Commissioners declares a state of emergency; and
BE IT FURTHER RESOLVED, this authorization is for the duration of the County's
contract with Paradise Advertising and Marketing, which contract shall expire on September 30,
2008, unless renewed annually for up to a maximum of two (2) additional years.
This Resolution adopted this -'4s7y) day of September, 2007 after motion, second and
majority vote favoring same.
DATIX�
A�S,I {
DV4,Hf E. BROOK. ;Clerk
gig p tw
gig all
Approved as to form and
legal sufficiency:
eidi Ashto��
Assistant County Attorney
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CMM 2W7Re Wuth =Em gmcyAdvvpsingFunds
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
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