City Council Meeting:June 14, 2011

Agenda Item: 3-C

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 Atelierís 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.



On 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 $69,500 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 January 26, 2010 Council approved a first modification of the original contract in the amount of $59,600 for a three-month contract period, increasing the total original contract to $129,100. This contract expired on June 30, 2010.A new agreement with Hospitality Atelier for FY10-11 in the amount of $69,875 was executed.



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 Development, 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 upon 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.

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




Forwarded to Council:







Barbara Stinchfield

Director of Community & Cultural Services


Rod Gould

City Manager