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R-08-10-09-8E1 - 10/9/2008RESOLUTION NO. R -08-10-09-8E1 WHEREAS, the City of Round Rock desires to retain professional consulting services for the Convention and Visitors Bureau Marketing and Public Relations Program, and WHEREAS, Arsenal Brand, Inc. has submitted an Agreement for Professional Consulting Services to provide said services, and WHEREAS, the City Council desires to enter into said agreement with Arsenal Brand, Inc., Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Agreement for Professional Consulting Services with Arsenal Brand, Inc., a copy of same being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended RESOLVED this 9th day of October, 2008. Cnevie4Z ALAN MCGRAW, Mayor City of Round Rock, Texas SARA L. WHITE, City Secretary 0:\WDOX\RESOLUTI\R81009E1.DOC/zmc CITY OF ROUND ROCK AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES WITH ARSENAL BRAND, INC. This Agreement shall recite the contractual terms whereby the City of Round Rock engages Arsenal Brand, Inc. to perform, by way of illustration and not limitation, the following services: Development and provision of a package of professional services focusing on strategic and creative services relating to the City of Round Rock and its brand "The Sports Capital of Texas" including the following three key areas of communications support: (i) overall proactive strategic planning and development; (ii) creative development, execution and production of campaign materials; and (iii) media planning and placement as directed by City; and the development of a marketing plan that establishes business goals and objectives targeted to reach the ideal market, including components that will allow feedback and the ability to measure results; and creative execution plan that includes the following three key components: (i) broadcast promotions; (ii) interactive marketing; and (iii) print advertising. This Agreement (hereinafter referred to as the "Agreement") is made by and between the City of Round Rock, a Texas home -rule municipal corporation, whose offices are located at 221 East Main Street, Round Rock, Texas 78664-5299, (hereinafter referred to as the "City") and Arsenal Brand, Inc., whose offices are located at 701 Brazos, Suite 500, Austin, Texas 78701 (hereinafter referred to as the "Consultant"). RECITALS: WHEREAS, City has determined that there is a need for the delineated services; and WHEREAS, City desires to contract for such professional services; and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW, THEREFORE, WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 EFFECTIVE DATE, DURATION, AND TERM This Agreement shall be effective on the date this Agreement has been signed by each party hereto, and shall remain in full force and effect unless and until it expires by operation of the term indicated herein, or is terminated or extended as provided herein. 00124940 EXHIBIT nA" The initial term of this Agreement shall be until full and satisfactory completion of the work specified herein is achieved, but in no event later than the end of City's current fiscal year, that being September 30, 2009. At City's option, this Agreement may be renewed for four additional twelve (12) month periods from the expiration date of the initial term, only upon the express written agreement of both parties and only provided Consultant has performed each and every contractual obligation specified in this Agreement. City reserves the right to review the Agreement and contractual relationship at any time, and may elect to terminate same with or without cause or may elect to continue. 1.02 CONTRACT AMOUNT; AND SCOPE OF WORK DELINEATION In consideration for the professional services to be performed by Consultant, City agrees to pay Consultant a total sum not to exceed One Hundred Twenty-seven Thousand Five Hundred and No/100 Dollars ($127,500.00) in payment for services and the Scope of Work deliverables as delineated hereafter: For purposes of this Agreement Consultant has issued its Scope of Work. Such Scope of Work is attached as Exhibit "A" and incorporated herein for all purposes. This Agreement, including all exhibits, shall evidence the entire understanding and agreement between the parties and shall supersede any prior proposals, correspondence or discussions. Consultant shall satisfactorily provide all services described under the attached Scope of Work within the contract term specified in Section 1.01. Consultant's undertakings shall be limited to performing services for City and/or advising City concerning those matters on which Consultant has been specifically engaged. Consultant shall perform its services in accordance with this Agreement, in accordance with any appended exhibits, in accordance with due care, and in accordance with prevailing consulting industry standards for comparable services. 1.03 PAYMENT FOR SERVICES; SUPPLEMENTAL AGREEMENTS Payment for Reimbursable Expenses: There shall be no payment for reimbursable expenses in this Agreement. Not -to -Exceed Total: Unless subsequently changed by additional Supplemental Agreement to this Agreement, duly authorized by City Council or City Manager action, Consultant's total compensation hereunder shall not exceed $127,500.00. This amount represents the absolute limit of City's liability to Consultant hereunder unless same shall be changed by additional Supplemental Agreement, and City shall pay, strictly within the confines of the not -to -exceed sum recited herein, Consultant's professional fees for work done on behalf of City. Deductions: No deductions shall be made for Consultant's compensation on account of penalty, liquidated damages or other sums withheld from payments to Consultant. 2 Additions: No additions shall be made to Consultant's compensation based upon Project claims, whether paid by City or denied. Supplemental Agreements: The terms of this Agreement may be modified by written Supplemental Agreement hereto, duly authorized by City Council or City Manager action, if City determines that there has been a significant change in (1) the scope, complexity, or character of the services to be performed; or (2) the duration of the work. Any such Supplemental Agreement must be executed by both parties within the period specified as the term of this Agreement. Consultant shall not perform any work or incur any additional costs prior to the execution, by both parties, of such Supplemental Agreement. Consultant shall make no claim for extra work done or materials furnished unless and until there is full execution of any Supplemental Agreement, and City shall not be responsible for actions by Consultant nor for any costs incurred by Consultant relating to additional work not directly authorized by Supplemental Agreement. 1.04 TERMS OF PAYMENT Invoices: To receive payment, Consultant shall prepare and submit a series of monthly detailed invoices to City for services rendered. Each invoice for professional services shall detail the services performed, along with documentation. All payments to Consultant shall be made on the basis of the invoices submitted by Consultant and approved by City. Should additional backup material be requested by City, Consultant shall comply promptly. In this regard, should City determine it necessary, Consultant shall make all records and books relating to this Agreement available to City for inspection and auditing purposes. If City has any dispute with work performed, then City shall notify Consultant within thirty (30) days after receipt of invoice. In the event of any dispute regarding the work performed, then and in that event Consultant shall either (a) satisfactorily re -perform the disputed services or (b) provide City with an appropriate credit. Payment of Invoices: City reserves the right to correct any error that may be discovered in any invoice that may have been paid to Consultant and to adjust same to meet the requirements of this Agreement. Following approval of invoices, City shall endeavor to pay Consultant promptly, but no later than the time period required under the Texas Prompt Payment Act described in Section 1.08 herein. Under no circumstances shall Consultant be entitled to receive interest on payments which are late because of a good faith dispute between Consultant and City or because of amounts which City has a right to withhold under this Agreement or state law. City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon Consultant's net income. Offsets: City may, at its option, offset any amounts due and payable under this Agreement against any debt (including taxes) lawfully due to City from Consultant, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise and regardless of whether or not the debt due to City has been reduced to judgment by a court. 3 1.05 REQUIRED REPORTS Consultant agrees to provide City with any necessary detailed final written reports, together with all information gathered and materials developed during the course of the project. Additionally, Consultant agrees to provide City with any necessary oral presentations of such detailed final written reports, at City's designation and at no additional cost to City. 1.06 LIMITATION TO SCOPE OF WORK Consultant and City agree that the scope of services to be performed is generally enumerated in Exhibit "A." Notwithstanding anything herein to the contrary, the parties agree that City retains absolute discretion and authority for all funding decisions, such decisions to be based solely on criteria accepted by City which may be influenced by but not be dependent on Consultant's work. 1.07 NON -APPROPRIATION AND FISCAL FUNDING This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the services as determined by City's budget for the fiscal year in question. City may effect such termination by giving Consultant a written notice of termination at the end of its then current fiscal year. 1.08 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to be made by City to Consultant will be made within thirty (30) days of the date City receives goods under this Agreement, the date the performance of the services under this Agreement are completed or the date City receives a correct invoice for the goods or services, whichever is later. Consultant may charge interest on an overdue payment at the "rate in effect" on September 1 of the fiscal year in which the payment becomes overdue, in accordance with V.T.C.A., Texas Government Code, Section 2251.025(b). This Prompt Payment Policy does not apply to payments made by City in the event: (1) There is a bona fide dispute between City and Consultant, a contractor, subcontractor, or supplier about the goods delivered or the service performed that causes the payment to be late; or (2) There is a bona fide dispute between Consultant and a subcontractor or between a subcontractor and its supplier about the goods delivered or the service performed that causes the payment to be late; (3) The terms of a federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds; or (4) The invoice is not mailed to City in strict accordance with any instruction on the purchase order relating to the payment. 4 1.09 TERMINATION This Agreement may be terminated for any of the following conditions: (1) By City for reasons of its own, with or without cause, and not subject to the mutual consent of any other party, such written termination notice to be given to the other party not less than thirty (30) days prior to termination. (2) By mutual agreement and consent of the parties, such agreement to be in writing. (3) By either party for failure by the other party to perform the services set forth herein in a satisfactory manner, such termination notice to be given in writing to the other party. (4) By either party for failure by the other party to fulfill its obligations herein. (5) By satisfactory completion of all services and obligations described herein. Should City terminate this Agreement as herein provided, no fees other than fees due and payable at the time of termination shall thereafter by paid to Consultant. City shall pay Consultant for all uncontested services performed to date of notice of termination. If either party defaults in performance of this Agreement or if City terminates this Agreement for default on the part of the other party, then City shall give consideration to the actual costs incurred by Consultant in performing the work to the date of default. The cost of the work that is useable to City, the cost to City of employing another firm to complete the useable work, and other factors will affect the value to City of the work performed at the time of default. The termination of this Agreement and payment of an amount in settlement as set forth above shall extinguish all rights, duties, and obligations of City and the terminated party to fulfill contractual obligations. Termination under this section shall not relieve the terminated party of any obligations or liabilities which occurred prior to cancellation. 1.10 INDEPENDENT CONTRACTOR STATUS Consultant is an independent contractor, and is not City's employee. Consultant's employees or subcontractors are not City's employees. This Agreement does not create a partnership, employer-employee, or joint venture relationship. No party has authority to enter into contracts as agent for the other party. Consultant and City agree to the following rights consistent with an independent contractor relationship: Consultant has the right to perform services for others during the term hereof. Consultant has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed. Consultant has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement. 5 (4) Consultant or its employees or subcontractors shall perform services required hereunder, and City shall not hire, supervise, or pay assistants to help Consultant. Neither Consultant nor its employees or subcontractors shall receive training from City in skills necessary to perform services required by this Agreement. (6) City shall not require Consultant or its employees or subcontractors to devote full time to performing the services required by this Agreement. Neither Consultant nor its employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. (5) (7) 1.11 NON -SOLICITATION All parties hereto agree that they shall not directly or indirectly solicit for employment, employ, or otherwise retain staff of the other during the term of this Agreement. 1.12 CONFIDENTIALITY; AND MATERIALS OWNERSHIP Any and all programs, data, or other materials furnished by City for use by Consultant in connection with services to be performed under this Agreement, and any and all data and information gathered by Consultant, shall be held in confidence by Consultant as set forth hereunder. All parties agree to hold all confidential information in the strictest confidence and not make any use thereof other than for the performance of this Agreement. Notwithstanding the foregoing, the parties recognize and understand that City is subject to the Texas Public Information Act and its duties run in accordance therewith. Any and all materials created and developed by Consultant in connection with services performed under this Agreement, including all trademark and copyright rights, shall be the sole property of City at the expiration of this Agreement. 1.13 WARRANTIES Consultant warrants that all services performed hereunder shall be performed consistent with generally prevailing professional or industry standards, and shall be performed in a professional and workmanlike manner. Consultant shall re -perform any work not in compliance with this warranty. 1.14 INDEMNIFICATION Consultant agrees to hold harmless, exempt, and indemnify City, its officers, agents, directors, servants, representatives and employees, from and against any and all suits, actions, legal proceedings, demands, costs, expenses, losses, damages, fines, penalties, liabilities and claims of any character, type, or description, including but not limited to any and all expenses of litigation, court costs, attorneys fees and all other costs and fees incident to any work done as a result hereof. 6 City agrees to hold harmless, exempt, and indemnify Consultant, its officers, agents, directors, servants, representatives and employees, from and against any and all suits, actions, legal proceedings, demands, costs, expenses, losses, damages, fines, penalties, liabilities and claims of any character, type, or description, including but not limited to any and all expenses of litigation, court costs, attorneys fees and all other costs and fees incident to any work done as a result hereof. In no event shall either party be liable to the other for special or consequential damages, statutory or otherwise. 1.15 ASSIGNMENT AND DELEGATION The parties each hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement. Neither party may assign any rights or delegate any duties hereunder without the other's prior written approval. 1.16 LOCAL, STATE AND FEDERAL TAXES Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: (1) Withhold FICA from Consultant's payments or make FICA payments on its behalf; (2) Make state and/or federal unemployment compensation contributions on Consultant's behalf; or (3) Withhold state or federal income tax from any of Consultant's payments. If requested, City shall provide Consultant with a certificate from the Texas State Comptroller indicating that City is a non-profit corporation and not subject to State of Texas Sales and Use Tax. 1.17 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES Consultant, its consultants, agents, employees and subcontractors shall comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as amended, and all applicable rules and regulations promulgated by local, state and national boards, bureaus and agencies. Consultant shall further obtain all permits, licenses, trademarks, copyrights, and the like required in the performance of the services contracted for herein, and same shall belong solely to City at the expiration of the term of this Agreement. 1.18 FINANCIAL INTEREST PROHIBITED Consultant covenants and represents that Consultant, its officers, employees, agents, consultants and subcontractors will have no financial interest, direct or indirect, in the purchase or sale of any product, materials or equipment that will be recommended or required hereunder. 7 1.19 DESIGNATION OF CITY REPRESENTATIVE City hereby designates the following representative authorized to act in its behalf with regard to this Agreement: Nancy Yawn, Director Convention and Visitors Bureau 120 South Brown Street Round Rock, Texas 78664 Telephone: 512-218-7094 Facsimile: 512-341-3153 Email: nyawn@round-rock.tx.us 1.20 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: (1) When delivered personally to recipient's address as stated herein; or (2) Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. Notice to Consultant: Arsenal Brand, Inc. 701 Brazos, Suite 500 Austin, TX 78701 Notice to City: City of Round Rock City Manager 221 East Main Street Round Rock, TX 78664 AND TO: City Attorney's Office Stephan L. Sheets, City Attorney 309 East Main Street Round Rock, TX 78664 Nothing contained in this section shall be construed to restrict the transmission of routine communications between representatives of City and Consultant. 8 1.21 APPLICABLE LAW; ENFORCEMENT AND VENUE This Agreement shall be enforceable in Round Rock, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of Texas. 1.22 EXCLUSIVE AGREEMENT The terms and conditions of this Agreement, including any appended exhibits, constitute the entire agreement between the parties and supersede all previous communications, representations, and agreements, either written or oral, with respect to the subject matter hereof. No modifications of this Agreement will be binding on any of the parties unless acknowledged in writing by the duly authorized governing body or representative for each party. 1.23 DISPUTE RESOLUTION If a dispute arises under this Agreement, the parties agree to first try to resolve the dispute with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City shall select one mediator and Consultant shall select one mediator and those two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and Consultant hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. 1.24 ATTORNEY FEES In the event that any lawsuit is brought by one party against any of the other parties in connection with this Agreement, the prevailing party shall be entitled to seek to recover its reasonable costs and reasonable attorney fees. 1.25 FORCE MAJEURE Notwithstanding any other provisions of this Agreement to the contrary, no failure, delay or default in performance of any obligation hereunder shall constitute an event of default or a breach of this Agreement, only to the extent that such failure to perform, delay or default arises out of causes beyond control and without the fault or negligence of the party otherwise chargeable with failure, delay or default; including but not limited to acts of God, acts of public enemy, civil war, insurrection, riots, fires, floods, explosion, theft, earthquakes, natural disasters or other casualties, strikes or other labor troubles, which in any way restrict the performance under this Agreement by the parties. Consultant shall not be deemed to be in default of its obligations to City if its failure to perform or its substantial delay in performance is due to City's failure to timely provide requested information, data, documentation, or other material necessary for Consultant to perform its obligations hereunder. 9 1.26 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion of provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion of provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this Article shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 1.27 STANDARD OF CARE Consultant represents that it is specially trained, experienced and competent to perform all of the services, responsibilities and duties specified herein and that such services, responsibilities and duties shall be performed, whether by Consultant or designated subconsultants, in a manner according to generally accepted business attraction practices. 1.28 GENERAL AND MISCELLANEOUS The section numbers and headings contained herein are provided for convenience only and shall have no substantive effect on construction of this Agreement. The failure of a party to exercise any right hereunder shall not operate as a waiver of said party's right to exercise such right or any other right in the future. Time is of the essence to this Agreement. Consultant understands and agrees that any failure of Consultant to complete the services due under this Agreement within the agreed term as delineated in Section 1.01 herein will constitute a material breach of this Agreement. City agrees to provide Consultant with one (1) fully executed original of this Agreement document. This Agreement may be executed in multiple counterparts, which taken together shall be considered as one original. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates hereafter indicated. 10 CITY OF ROUND ROCK, TEXAS By: Alan McGraw, Mayor Date Signed: ATTEST: By: Sara L. White, City Secretary FOR CITY, APPROVED AS TO FORM: By: Stephan L. Sheets, City Attorney ARSENAL BRAND, INC. 411104 By: �gtr Printed ame: &nn rn&t-; Title: P Date Signed: f g (e/D6 11 Overall Arsenal is excited once again to offer its strategic and creative firepower to The Sports Capital of Texas. As a full-service advertising agency, our professional services starting December 1, 2008 through September 30, 2009 will focus on three key areas of communications support. These areas of support include: • Overall, proactive strategic planning and development • Creative development, execution and production of campaign materials • Media planning and placement as needed Strategic Development The team at Arsenal has developed a marketing plan that establishes business goals and objectives for the 2008/2009 time period. This plan will reach the most ideal target market and have components that will allow us to receive feedback and measure results. Creative Execution Based on knowledge gained from working on this account over the past two years, this document outlines our recommended approach to developing a comprehensive marketing program that most cost-effectively helps the City of Round Rock achieve its short-term and long-term goals. The plan includes the following three key components: Broadcast Promotions Interactive Marketing Print Advertising By way of illustration, the above Scope of Services deliverables will conform to the following general form and substance parameters shown on Exhibit "A-1." 1 EXHIBIT EXHIBIT "A-1" The following is a delineation of Scope of Services deliverables for the preceding fiscal year ending September 30, 2008: The season is nearly complete, but the game is far from over. Let's take a look at the play-by-play over the past ten months to prepare for future wins. First on the plate is an in-depth analysis of the previous media strategy and the big scores. This MVP (short for Most Valuable Plan) delivers a variety of measurements to evaluate player performance. Media Plan and Details See Texas First Spring (April 2008) See Texas First Fall (September 2008) Game Plan: This media buy reaches future visitors to Round Rock who have disposable income to spend in hotels, shops, restaurants and attractions. These are people who are looking to travel and are influenced by the print advertisement and Rule Book. Offensive Blitz: See Texas First Spring delivers 3,637,500 readers within the markets of Abilene, Austin, Bryan -College Station, Dallas, El Paso, Fort Worth, Houston, Killeen, Lubbock, Lufkin, Midland, Nacogdoches, Oklahoma, San Angelo, San Antonio, Tyler, and Waco. See Texas First Fall delivers 2,910,000 readers within the markets of Abilene, Austin, Bryan -College Station, Dallas, Fort Worth, Houston, Killeen, Midland, Odessa, Oklahoma, Rio Grande Valley (Brownsville, McAllen and Harlingen), San Antonio, Waco and Wichita. In addition to the print campaign, Round Rock CVB is also featured on the highly -viewed www.vacationfun.com web site that has over 1.7 unique visitors per year. On this website, the online user can download the Round Rock brochure and there is a link that takes the user directly to the www.SportsCapitalofTexas.com website. Player Statistics: We received 7,444 leads from the See Texas First Spring edition and are currently receiving leads from the See Texas First Fall edition. The leads come from readers seeing the ad in print as well as seeing it online. In addition, we received a bonus circulation for both the spring and fall editions due to the state of Texas paying for the insertion costs for extra exposure in the markets of Albuquerque, NM, Lafayette, LA, Little Rock, AR, Northwest Arkansas, Shreveport, LA and Tulsa, OK. Austin and the Hill Country (May 2008) Game Plan: This media buy reaches future travelers to Austin and surrounding areas that travel frequently and spend aggressively. Offensive Blitz: Austin and the Hill Country delivers 1,320,000 readers within the markets of Dallas, Fort Worth, Houston, Memphis, TN and Oklahoma City, OK. Player Statistics: We received 3,445 leads from this tactic. The leads come from readers seeing it in print as well as online. Also, since See Texas First Spring and Austin and the Hill Country were released at similar time periods, we receive double frequency in some of the markets. Austin Official Visitors Guide (Summer/Fall and Winter/Spring) Game Plan: This media buy reaches future visitors to Austin and surrounding areas with disposable income. Offensive Blitz: Austin Official Visitors Guide delivers 100,000 readers per edition for a total of 200,000 readers per year. These guides are directly mailed to households requesting the guide via the Austin CVB's 800# and internet requests. They are also distributed in Austin at hotel concierge desks, the Capitol Visitor Center and 12 Texas information centers and airports. Player Statistics: This media buy helped us to increase awareness of Round Rock to over 200,000 visitors as well as gain exposure in the Austin market and help continue strengthening the partnership between the two cities. Sports Events Insert (May 2008) Sports Events Double Page Spread (December 2008) Game Plan: This media buy reaches planners of sports events and competitions that travel from market to market across the U.S and are responsible for site selection. Offensive Blitz: Sports Events delivers nationally more than 16,000 readers who are sports events planners. These readers select the sites for more than 41,000 market -to -market sports events annually, generating an estimated $5.4 billion in direct spending each year. Player Statistics: Awareness of the Sports Capital of Texas was increased amongst 16,000+ decision makers. In addition to the ad, we received two full pages of advertorial that highlighted Round Rock as one of the small markets that was big on sports. This free advertorial is worth an estimated $8,000 in marketing spending. Negotiated a double page spread in December for the price of one ad and two full pages of advertorial worth and estimated $8,000 in marketing spending. Sports Travel Insert (October/November 2008) Game Plan: This media buy reaches decision makers and key influencers in general sports and alternative "niche" sports. These are people who are responsible for site selection for sporting events and travel planning for sports -related groups. Offensive Blitz: Sports Travel magazine delivers more than 16,000 readers who are sports industry decision makers. Each reader plans an average of 24 events or trips per year involving overnight stays, arranges travel for groups that average 40 persons on each trip, plans trips with an average of 2.83 nights, and books an average of 1,261 hotel room nights annually. Player Statistics: This media buy helped us to increase awareness of the Sports Capital of Texas to over 16,000 decision makers as well as gain exposure at the TEAMS 2008 USSA Annual Conference by the attendees receiving a copy of the issue. In addition to the ad, we received advertorial in the December issue that highlights sports offerings in the Southwest. This free advertorial is worth an estimated $3,000 in marketing spending. Sports Destination Management (July/August 2008 and September/October 2008) Game Plan: This media buy reaches decision makers in a multitude of disciplines, ranging from the NCAA & USOC to the American Youth Soccer Organizations who have the ability to bring their event and significant spending levels to Round Rock. Offensive Blitz: Sports Destination Management delivers more than 18,000 sports event producers and stresses the importance of the event -destination relationship. The July/August issue was the first issue of this new, highly -targeted magazine. Player Statistics: This media buy helped us to increase awareness of the Sports Capital of Texas to over 18,000 decision makers. We also received bonus advertorial space in the September/October issue, which highlighted sports destinations in the Southwest. This free advertorial is worth an estimated $3,500 in marketing spending. Also, Round Rock was able to have the largest ad presence in the magazine due to negotiating a three-page gatefold in each issue for the same price as one full page. The gatefold was strategically placed far forward and opened from the inside cover. Winning Sports Meetings and Destinations (November 2008) Game Plan: This media buy reaches all facets of the sports event -meeting and travel industry decision makers. Offensive Blitz: Winning Sports Meetings and Destinations delivers more than 45,000 readers including sports event organizers and rights holders, sports meeting planners, tour operators offering sports related tours and group travel planners nationwide. Player Statistics: This media buy helped us to increase awareness of the Sports Capital of Texas to over 45,000 decision makers as well as gain exposure in the sports event -meeting and travel industries. In addition to the objectives for all four of the above sports publications, we wanted to: • Increase the number of sports related activities and events to Round Rock. • Assist the Parks and Recreation Department in their outreach and marketing to ensure that the maximum number of sporting events are brought to the area and to continue bringing in these events as well as expanding the existing events. • Strengthen the Sports Capital of Texas image as the ultimate host city and premier destination for sporting events, particularly with youth, amateur, and recreational sporting events. The Sports Capital of Texas Website Game Plan: Strategically and creatively, we have a unique online destination that is providing great results in traffic and want to continue that momentum. We have consistently made revisions and enhancements to improve the user experience and help to increase traffic. The user experience is our guide to making changes to the site. Offensive Blitz: This year, we have continued with the website that was built last year, however we have added links of interest, a photo management tool, and are continually making user -relevant updates. Currently, our website is leads the line- up of keeping our target involved, with up-to-date and exhaustive information. Player Statistics: From December 1, 2007 to September 26, 2008, we have received 52,745 visitors with a total of 193,014 page views. Visitors are predominantly from the United States, but we have also seen significant traffic from Canada, United Kingdom and Mexico. Utility Bill Education Insert, Eco -Friendly bags and Main Street Banners Game Plan: It is important that the citizens of Round Rock know how the Convention and Visitor's Bureau improves their quality of life because they play an important role in the building of the Sports Capital of Texas brand. While the CVB is focused on telling our story to those across the state who will bring tournaments and meetings to our city, we need to encourage the community to develop ways to support the brand within Round Rock. Offensive Blitz: Interesting facts, including financial and facility benefits were conveyed along two avenues. This includes the Earth -friendly bags that were passed out at the June Round Rock Express game and the educational flyer that was inserted in the city utility bills. In the bags, an interior handout was included that visually and verbally captured the benefits of the Round Rock CVB. Also, to remind the community that they live in the Sports Capital of Texas, bright colorful banners were designed and displayed up and down Main Street. Player Statistics: 3,000 Earth -friendly bags were given out at the Round Rock Express game and 33,500 people in Round Rock received an educational flyer in their utility bill. Banners were strategically placed for all citizens to see driving down Main Street. These three efforts followed last year's humorous `Be A Fan" commercials and helped continue rallying the citizens of Round Rock. Miscellaneous CVB Hot Rates, Photo Manager, Logo Standards, Scrolling Banner for trade show, Rule Book edits and Souvenir Guide edits In addition to the above home runs that we have made this year, we have also won several awards for our work. The awards include: TAMI Awards- First and Second Place for Community Cable PSA's TACVB Awards/People's Choice- First Place for Sports Marketing, Advertising, and Video TACVB Awards/Judge's Choice- First Place for Sports Marketing, Advertising and Video DATE: October 1, 2008 SUBJECT: City Council Meeting — October 9, 2008 ITEM: 8E1. Consider a resolution authorizing the Mayor to execute an agreement with Arsenal Brand for marketing services. Department: Staff Person: Justification: Convention and Visitors Bureau Nancy Yawn, Director The Convention and Visitors Bureau is the principal organization organized as the marketing and sales arm of the City with the responsibility to increase occupancies of local lodging facilities, and to increase tourism spending in Round Rock. Funding: Cost: $127,500.00 Source of funds: Hotel Occupancy Tax Outside Resources: N/A Background Information: Arsenal Brand, L.P. was the marketing/PR firm for the last three years. This year the staff recommends utilizing the services of the same firm. Public Comment: N/A EXECUTED DOCUMENT FOLLOWS CITY OF ROUND ROCK AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES WITH ARSENAL BRAND, INC. This Agreement shall recite the contractual terms whereby the City of Round Rock engages Arsenal Brand, Inc. to perform, by way of illustration and not limitation, the following services: Development and provision of a package of professional services focusing on strategic and creative services relating to the City of Round Rock and its brand "The Sports Capital of Texas" including the following three key areas of communications support: (i) overall proactive strategic planning and development; (ii) creative development, execution and production of campaign materials; and (iii) media planning and placement as directed by City; and the development of a marketing plan that establishes business goals and objectives targeted to reach the ideal market, including components that will allow feedback and the ability to measure results; and creative execution plan that includes the following three key components: (i) broadcast promotions; (ii) interactive marketing; and (iii) print advertising. This Agreement (hereinafter referred to as the "Agreement") is made by and between the City of Round Rock, a Texas home -rule municipal corporation, whose offices are located at 221 East Main Street, Round Rock, Texas 78664-5299, (hereinafter referred to as the "City") and Arsenal Brand, Inc., whose offices are located at 701 Brazos, Suite 500, Austin, Texas 78701 (hereinafter referred to as the "Consultant"). RECITALS: WHEREAS, City has determined that there is a need for the delineated services; and WHEREAS, City desires to contract for such professional services; and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW, THEREFORE, WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 EFFECTIVE DATE, DURATION, AND TERM This Agreement shall be effective on the date this Agreement has been signed by each party hereto, and shall remain in full force and effect unless and until it expires by operation of the term indicated herein, or is terminated or extended as provided herein. 00124940 --ov-10-off-ft-1 The initial term of this Agreement shall be until full and satisfactory completion of the work specified herein is achieved, but in no event later than the end of City's current fiscal year, that being September 30, 2009. At City's option, this Agreement may be renewed for four additional twelve (12) month periods from the expiration date of the initial term, only upon the express written agreement of both parties and only provided Consultant has performed each and every contractual obligation specified in this Agreement. City reserves the right to review the Agreement and contractual relationship at any time, and may elect to terminate same with or without cause or may elect to continue. 1.02 CONTRACT AMOUNT; AND SCOPE OF WORK DELINEATION In consideration for the professional services to be performed by Consultant, City agrees to pay Consultant a total sum not to exceed One Hundred Twenty-seven Thousand Five Hundred and No/100 Dollars ($127,500.00) in payment for services and the Scope of Work deliverables as delineated hereafter: For purposes of this Agreement Consultant has issued its Scope of Work. Such Scope of Work is attached as Exhibit "A" and incorporated herein for all purposes. This Agreement, including all exhibits, shall evidence the entire understanding and agreement between the parties and shall supersede any prior proposals, correspondence or discussions. Consultant shall satisfactorily provide all services described under the attached Scope of Work within the contract term specified in Section 1.01. Consultant's undertakings shall be limited to performing services for City and/or advising City concerning those matters on which Consultant has been specifically engaged. Consultant shall perform its services in accordance with this Agreement, in accordance with any appended exhibits, in accordance with due care, and in accordance with prevailing consulting industry standards for comparable services. 1.03 PAYMENT FOR SERVICES; SUPPLEMENTAL AGREEMENTS Payment for Reimbursable Expenses: There shall be no payment for reimbursable expenses in this Agreement. Not -to -Exceed Total: Unless subsequently changed by additional Supplemental Agreement to this Agreement, duly authorized by City Council or City Manager action, Consultant's total compensation hereunder shall not exceed $127,500.00. This amount represents the absolute limit of City's liability to Consultant hereunder unless same shall be changed by additional Supplemental Agreement, and City shall pay, strictly within the confines of the not -to -exceed sum recited herein, Consultant's professional fees for work done on behalf of City. Deductions: No deductions shall be made for Consultant's compensation on account of penalty, liquidated damages or other sums withheld from payments to Consultant. 2 Additions: No additions shall be made to Consultant's compensation based upon Project claims, whether paid by City or denied. Supplemental Agreements: The terms of this Agreement may be modified by written Supplemental Agreement hereto, duly authorized by City Council or City Manager action, if City determines that there has been a significant change in (1) the scope, complexity, or character of the services to be performed; or (2) the duration of the work. Any such Supplemental Agreement must be executed by both parties within the period specified as the term of this Agreement. Consultant shall not perform any work or incur any additional costs prior to the execution, by both parties, of such Supplemental Agreement. Consultant shall make no claim for extra work done or materials furnished unless and until there is full execution of any Supplemental Agreement, and City shall not be responsible for actions by Consultant nor for any costs incurred by Consultant relating to additional work not directly authorized by Supplemental Agreement. 1.04 TERMS OF PAYMENT Invoices: To receive payment, Consultant shall prepare and submit a series of monthly detailed invoices to City for services rendered. Each invoice for professional services shall detail the services performed, along with documentation. All payments to Consultant shall be made on the basis of the invoices submitted by Consultant and approved by City. Should additional backup material be requested by City, Consultant shall comply promptly. In this regard, should City determine it necessary, Consultant shall make all records and books relating to this Agreement available to City for inspection and auditing purposes. If City has any dispute with work performed, then City shall notify Consultant within thirty (30) days after receipt of invoice. In the event of any dispute regarding the work performed, then and in that event Consultant shall either (a) satisfactorily re -perform the disputed services or (b) provide City with an appropriate credit. Payment of Invoices: City reserves the right to correct any error that may be discovered in any invoice that may have been paid to Consultant and to adjust same to meet the requirements of this Agreement. Following approval of invoices, City shall endeavor to pay Consultant promptly, but no later than the time period required under the Texas Prompt Payment Act described in Section 1.08 herein. Under no circumstances shall Consultant be entitled to receive interest on payments which are late because of a good faith dispute between Consultant and City or because of amounts which City has a right to withhold under this Agreement or state law. City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon Consultant's net income. Offsets: City may, at its option, offset any amounts due and payable under this Agreement against any debt (including taxes) lawfully due to City from Consultant, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise and regardless of whether or not the debt due to City has been reduced to judgment by a court. 3 1.05 REQUIRED REPORTS Consultant agrees to provide City with any necessary detailed final written reports, together with all information gathered and materials developed during the course of the project. Additionally, Consultant agrees to provide City with any necessary oral presentations of such detailed final written reports, at City's designation and at no additional cost to City. 1.06 LIMITATION TO SCOPE OF WORK Consultant and City agree that the scope of services to be performed is generally enumerated in Exhibit "A." Notwithstanding anything herein to the contrary, the parties agree that City retains absolute discretion and authority for all funding decisions, such decisions to be based solely on criteria accepted by City which may be influenced by but not be dependent on Consultant's work. 1.07 NON -APPROPRIATION AND FISCAL FUNDING This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the services as determined by City's budget for the fiscal year in question. City may effect such termination by giving Consultant a written notice of termination at the end of its then current fiscal year. 1.08 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to be made by City to Consultant will be made within thirty (30) days of the date City receives goods under this Agreement, the date the performance of the services under this Agreement are completed or the date City receives a correct invoice for the goods or services, whichever is later. Consultant may charge interest on an overdue payment at the "rate in effect" on September 1 of the fiscal year in which the payment becomes overdue, in accordance with V.T.C.A., Texas Government Code, Section 2251.025(b). This Prompt Payment Policy does not apply to payments made by City in the event: (1) There is a bona fide dispute between City and Consultant, a contractor, subcontractor, or supplier about the goods delivered or the service performed that causes the payment to be late; or (2) There is a bona fide dispute between Consultant and a subcontractor or between a subcontractor and its supplier about the goods delivered or the service performed that causes the payment to be late; The terms of a federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds; or (4) The invoice is not mailed to City in strict accordance with any instruction on the purchase order relating to the payment. (3) 4 1.09 TERMINATION This Agreement may be terminated for any of the following conditions: (1) By City for reasons of its own, with or without cause, and not subject to the mutual consent of any other party, such written termination notice to be given to the other party not less than thirty (30) days prior to termination. (2) By mutual agreement and consent of the parties, such agreement to be in writing. (3) By either party for failure by the other party to perform the services set forth herein in a satisfactory manner, such termination notice to be given in writing to the other party. (4) By either party for failure by the other party to fulfill its obligations herein. (5) By satisfactory completion of all services and obligations described herein. Should City terminate this Agreement as herein provided, no fees other than fees due and payable at the time of termination shall thereafter by paid to Consultant. City shall pay Consultant for all uncontested services performed to date of notice of termination. If either party defaults in performance of this Agreement or if City terminates this Agreement for default on the part of the other party, then City shall give consideration to the actual costs incurred by Consultant in performing the work to the date of default. The cost of the work that is useable to City, the cost to City of employing another firm to complete the useable work, and other factors will affect the value to City of the work performed at the time of default. The termination of this Agreement and payment of an amount in settlement as set forth above shall extinguish all rights, duties, and obligations of City and the terminated party to fulfill contractual obligations. Termination under this section shall not relieve the terminated party of any obligations or liabilities which occurred prior to cancellation. 1.10 INDEPENDENT CONTRACTOR STATUS Consultant is an independent contractor, and is not City's employee. Consultant's employees or subcontractors are not City's employees. This Agreement does not create a partnership, employer-employee, or joint venture relationship. No party has authority to enter into contracts as agent for the other party. Consultant and City agree to the following rights consistent with an independent contractor relationship: (1) Consultant has the right to perform services for others during the term hereof. (2) Consultant has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed. Consultant has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement. (3) 5 (4) Consultant or its employees or subcontractors shall perform services required hereunder, and City shall not hire, supervise, or pay assistants to help Consultant. Neither Consultant nor its employees or subcontractors shall receive training from City in skills necessary to perform services required by this Agreement. (6) City shall not require Consultant or its employees or subcontractors to devote full time to performing the services required by this Agreement. Neither Consultant nor its employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. (5) (7) 1.11 NON -SOLICITATION All parties hereto agree that they shall not directly or indirectly solicit for employment, employ, or otherwise retain staff of the other during the term of this Agreement. 1.12 CONFIDENTIALITY; AND MATERIALS OWNERSHIP Any and all programs, data, or other materials furnished by City for use by Consultant in connection with services to be performed under this Agreement, and any and all data and information gathered by Consultant, shall be held in confidence by Consultant as set forth hereunder. All parties agree to hold all confidential information in the strictest confidence and not make any use thereof other than for the performance of this Agreement. Notwithstanding the foregoing, the parties recognize and understand that City is subject to the Texas Public Information Act and its duties run in accordance therewith. Any and all materials created and developed by Consultant in connection with services performed under this Agreement, including all trademark and copyright rights, shall be the sole property of City at the expiration of this Agreement. 1.13 WARRANTIES Consultant warrants that all services performed hereunder shall be performed consistent with generally prevailing professional or industry standards, and shall be performed in a professional and workmanlike manner. Consultant shall re -perform any work not in compliance with this warranty. 1.14 INDEMNIFICATION Consultant agrees to hold harmless, exempt, and indemnify City, its officers, agents, directors, servants, representatives and employees, from and against any and all suits, actions, legal proceedings, demands, costs, expenses, losses, damages, fines, penalties, liabilities and claims of any character, type, or description, including but not limited to any and all expenses of litigation, court costs, attorneys fees and all other costs and fees incident to any work done as a result hereof. 6 City agrees to hold harmless, exempt, and indemnify Consultant, its officers, agents, directors, servants, representatives and employees, from and against any and all suits, actions, legal proceedings, demands, costs, expenses, losses, damages, fines, penalties, liabilities and claims of any character, type, or description, including but not limited to any and all expenses of litigation, court costs, attorneys fees and all other costs and fees incident to any work done as a result hereof. In no event shall either party be liable to the other for special or consequential damages, statutory or otherwise. 1.15 ASSIGNMENT AND DELEGATION The parties each hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement. Neither party may assign any rights or delegate any duties hereunder without the other's prior written approval. 1.16 LOCAL, STATE AND FEDERAL TAXES Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: (1) Withhold FICA from Consultant's payments or make FICA payments on its behalf; (2) Make state and/or federal unemployment compensation contributions on Consultant's behalf; or (3) Withhold state or federal income tax from any of Consultant's payments. If requested, City shall provide Consultant with a certificate from the Texas State Comptroller indicating that City is a non-profit corporation and not subject to State of Texas Sales and Use Tax. 1.17 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES Consultant, its consultants, agents, employees and subcontractors shall comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as amended, and all applicable rules and regulations promulgated by local, state and national boards, bureaus and agencies. Consultant shall further obtain all permits, licenses, trademarks, copyrights, and the like required in the performance of the services contracted for herein, and same shall belong solely to City at the expiration of the term of this Agreement. 1.18 FINANCIAL INTEREST PROHIBITED Consultant covenants and represents that Consultant, its officers, employees, agents, consultants and subcontractors will have no financial interest, direct or indirect, in the purchase or sale of any product, materials or equipment that will be recommended or required hereunder. 7 1.19 DESIGNATION OF CITY REPRESENTATIVE City hereby designates the following representative authorized to act in its behalf with regard to this Agreement: Nancy Yawn, Director Convention and Visitors Bureau 120 South Brown Street Round Rock, Texas 78664 Telephone: 512-218-7094 Facsimile: 512-341-3153 Email: nyawn@round-rock.tx.us 1.20 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: (1) When delivered personally to recipient's address as stated herein; or (2) Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. Notice to Consultant: Arsenal Brand, Inc. 701 Brazos, Suite 500 Austin, TX 78701 Notice to City: City of Round Rock City Manager 221 East Main Street Round Rock, TX 78664 AND TO: City Attorney's Office Stephan L. Sheets, City Attorney 309 East Main Street Round Rock, TX 78664 Nothing contained in this section shall be construed to restrict the transmission of routine communications between representatives of City and Consultant. 8 1.21 APPLICABLE LAW; ENFORCEMENT AND VENUE This Agreement shall be enforceable in Round Rock, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of Texas. 1.22 EXCLUSIVE AGREEMENT The terms and conditions of this Agreement, including any appended exhibits, constitute the entire agreement between the parties and supersede all previous communications, representations, and agreements, either written or oral, with respect to the subject matter hereof. No modifications of this Agreement will be binding on any of the parties unless acknowledged in writing by the duly authorized governing body or representative for each party. 1.23 DISPUTE RESOLUTION If a dispute arises under this Agreement, the parties agree to first try to resolve the dispute with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City shall select one mediator and Consultant shall select one mediator and those two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and Consultant hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. 1.24 ATTORNEY FEES In the event that any lawsuit is brought by one party against any of the other parties in connection with this Agreement, the prevailing party shall be entitled to seek to recover its reasonable costs and reasonable attorney fees. 1.25 FORCE MAJEURE Notwithstanding any other provisions of this Agreement to the contrary, no failure, delay or default in performance of any obligation hereunder shall constitute an event of default or a breach of this Agreement, only to the extent that such failure to perform, delay or default arises out of causes beyond control and without the fault or negligence of the party otherwise chargeable with failure, delay or default; including but not limited to acts of God, acts of public enemy, civil war, insurrection, riots, fires, floods, explosion, theft, earthquakes, natural disasters or other casualties, strikes or other labor troubles, which in any way restrict the performance under this Agreement by the parties. Consultant shall not be deemed to be in default of its obligations to City if its failure to perform or its substantial delay in performance is due to City's failure to timely provide requested information, data, documentation, or other material necessary for Consultant to perform its obligations hereunder. 9 1.26 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion of provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion of provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this Article shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 1.27 STANDARD OF CARE Consultant represents that it is specially trained, experienced and competent to perform all of the services, responsibilities and duties specified herein and that such services, responsibilities and duties shall be performed, whether by Consultant or designated subconsultants, in a manner according to generally accepted business attraction practices. 1.28 GENERAL AND MISCELLANEOUS The section numbers and headings contained herein are provided for convenience only and shall have no substantive effect on construction of this Agreement. The failure of a party to exercise any right hereunder shall not operate as a waiver of said party's right to exercise such right or any other right in the future. Time is of the essence to this Agreement. Consultant understands and agrees that any failure of Consultant to complete the services due under this Agreement within the agreed term as delineated in Section 1.01 herein will constitute a material breach of this Agreement. City agrees to provide Consultant with one (1) fully executed original of this Agreement document. This Agreement may be executed in multiple counterparts, which taken together shall be considered as one original. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates hereafter indicated. 10 CITY OF ROUND ROCK, TEXAS By: Alan McGraw, Mayor Date Signed: (0- 9 -(i w ATTEST: By: Sara L. White, City Secretary FOR CITY, • 'PROVED A. TO FORM: By: Step ,'n L. Sheets, City Attorney ARSENAL BRAND, INC. By: flAt PrintedName:p- YYt a.r� a yam; 4-fi Title: P Date Signed: f g(/c5 11 Overall Arsenal is excited once again to offer its strategic and creative firepower to The Sports Capital of Texas. As a full-service advertising agency, our professional services starting December 1, 2008 through September 30, 2009 will focus on three key areas of communications support. These areas of support include: • Overall, proactive strategic planning and development • Creative development, execution and production of campaign materials • Media planning and placement as needed Strategic Development The team at Arsenal has developed a marketing plan that establishes business goals and objectives for the 2008/2009 time period. This plan will reach the most ideal target market and have components that will allow us to receive feedback and measure results. Creative Execution Based on knowledge gained from working on this account over the past two years, this document outlines our recommended approach to developing a comprehensive marketing program that most cost-effectively helps the City of Round Rock achieve its short-term and long-term goals. The plan includes the following three key components: Broadcast Promotions Interactive Marketing Print Advertising By way of illustration, the above Scope of Services deliverables will conform to the following general form and substance parameters shown on Exhibit "A-1." EXHIBIT 1 a „An EXHIBIT "A-1" The following is a delineation of Scope of Services deliverables for the preceding fiscal year ending September 30, 2008: The season is nearly complete, but the game is far from over. Let's take a look at the play-by-play over the past ten months to prepare for future wins. First on the plate is an in-depth analysis of the previous media strategy and the big scores. This MVP (short for Most Valuable Plan) delivers a variety of measurements to evaluate player performance. Media Plan and Details See Texas First Spring (April 2008) See Texas First Fall (September 2008) Game Plan: This media buy reaches future visitors to Round Rock who have disposable income to spend in hotels, shops, restaurants and attractions. These are people who are looking to travel and are influenced by the print advertisement and Rule Book. Offensive Blitz: See Texas First Spring delivers 3,637,500 readers within the markets of Abilene, Austin, Bryan -College Station, Dallas, El Paso, Fort Worth, Houston, Killeen, Lubbock, Lufkin, Midland, Nacogdoches, Oklahoma, San Angelo, San Antonio, Tyler, and Waco. See Texas First Fall delivers 2,910,000 readers within the markets of Abilene, Austin, Bryan -College Station, Dallas, Fort Worth, Houston, Killeen, Midland, Odessa, Oklahoma, Rio Grande Valley (Brownsville, McAllen and Harlingen), San Antonio, Waco and Wichita. In addition to the print campaign, Round Rock CVB is also featured on the highly -viewed www.vacationfun.com web site that has over 1.7 unique visitors per year. On this website, the online user can download the Round Rock brochure and there is a link that takes the user directly to the www.SportsCapitalofTexas.com website. Player Statistics: We received 7,444 leads from the See Texas First Spring edition and are currently receiving leads from the See Texas First Fall edition. The leads come from readers seeing the ad in print as well as seeing it online. In addition, we received a bonus circulation for both the spring and fall editions due to the state of Texas paying for the insertion costs for extra exposure in the markets of Albuquerque, NM, Lafayette, LA, Little Rock, AR, Northwest Arkansas, Shreveport, LA and Tulsa, OK. Austin and the Hill Country (May 2008) Game Plan: This media buy reaches future travelers to Austin and surrounding areas that travel frequently and spend aggressively. Offensive Blitz: Austin and the Hill Country delivers 1,320,000 readers within the markets of Dallas, Fort Worth, Houston, Memphis, TN and Oklahoma City, OK. Player Statistics: We received 3,445 leads from this tactic. The leads come from readers seeing it in print as well as online. Also, since See Texas First Spring and Austin and the Hill Country were released at similar time periods, we receive double frequency in some of the markets. Austin Official Visitors Guide (Summer/Fall and Winter/Spring) Game Plan: This media buy reaches future visitors to Austin and surrounding areas with disposable income. Offensive Blitz: Austin Official Visitors Guide delivers 100,000 readers per edition for a total of 200,000 readers per year. These guides are directly mailed to households requesting the guide via the Austin CVB's 800# and internet requests. They are also distributed in Austin at hotel concierge desks, the Capitol Visitor Center and 12 Texas information centers and airports. Player Statistics: This media buy helped us to increase awareness of Round Rock to over 200,000 visitors as well as gain exposure in the Austin market and help continue strengthening the partnership between the two cities. Sports Events Insert (May 2008) Sports Events Double Page Spread (December 2008) Game Plan: This media buy reaches planners of sports events and competitions that travel from market to market across the U.S and are responsible for site selection. Offensive Blitz: Sports Events delivers nationally more than 16,000 readers who are sports events planners. These readers select the sites for more than 41,000 market -to -market sports events annually, generating an estimated $5.4 billion in direct spending each year. Player Statistics: Awareness of the Sports Capital of Texas was increased amongst 16,000+ decision makers. In addition to the ad, we received two full pages of advertorial that highlighted Round Rock as one of the small markets that was big on sports. This free advertorial is worth an estimated $8,000 in marketing spending. Negotiated a double page spread in December for the price of one ad and two full pages of advertorial worth and estimated $8,000 in marketing spending. Sports Travel Insert (October/November 2008) Game Plan: This media buy reaches decision makers and key influencers in general sports and alternative "niche" sports. These are people who are responsible for site selection for sporting events and travel planning for sports -related groups. Offensive Blitz: Sports Travel magazine delivers more than 16,000 readers who are sports industry decision makers. Each reader plans an average of 24 events or trips per year involving overnight stays, arranges travel for groups that average 40 persons on each trip, plans trips with an average of 2.83 nights, and books an average of 1,261 hotel room nights annually. Player Statistics: This media buy helped us to increase awareness of the Sports Capital of Texas to over 16,000 decision makers as well as gain exposure at the TEAMS 2008 USSA Annual Conference by the attendees receiving a copy of the issue. In addition to the ad, we received advertorial in the December issue that highlights sports offerings in the Southwest. This free advertorial is worth an estimated $3,000 in marketing spending. Sports Destination Management (July/August 2008 and September/October 2008) Game Plan: This media buy reaches decision makers in a multitude of disciplines, ranging from the NCAA & USOC to the American Youth Soccer Organizations who have the ability to bring their event and significant spending levels to Round Rock. Offensive Blitz: Sports Destination Management delivers more than 18,000 sports event producers and stresses the importance of the event -destination relationship. The July/August issue was the first issue of this new, highly -targeted magazine. Player Statistics: This media buy helped us to increase awareness of the Sports Capital of Texas to over 18,000 decision makers. We also received bonus advertorial space in the September/October issue, which highlighted sports destinations in the Southwest. This free advertorial is worth an estimated $3,500 in marketing spending. Also, Round Rock was able to have the largest ad presence in the magazine due to negotiating a three-page gatefold in each issue for the same price as one full page. The gatefold was strategically placed far forward and opened from the inside cover. Winning Sports Meetings and Destinations (November 2008) Game Plan: This media buy reaches all facets of the sports event -meeting and travel industry decision makers. Offensive Blitz: Winning Sports Meetings and Destinations delivers more than 45,000 readers including sports event organizers and rights holders, sports meeting planners, tour operators offering sports related tours and group travel planners nationwide. Player Statistics: This media buy helped us to increase awareness of the Sports Capital of Texas to over 45,000 decision makers as well as gain exposure in the sports event -meeting and travel industries. In addition to the objectives for all four of the above sports publications, we wanted to: • Increase the number of sports related activities and events to Round Rock. • Assist the Parks and Recreation Department in their outreach and marketing to ensure that the maximum number of sporting events are brought to the area and to continue bringing in these events as well as expanding the existing events. • Strengthen the Sports Capital of Texas image as the ultimate host city and premier destination for sporting events, particularly with youth, amateur, and recreational sporting events. The Sports Capital of Texas Website Game Plan: Strategically and creatively, we have a unique online destination that is providing great results in traffic and want to continue that momentum. We have consistently made revisions and enhancements to improve the user experience and help to increase traffic. The user experience is our guide to making changes to the site. Offensive Blitz: This year, we have continued with the website that was built last year, however we have added links of interest, a photo management tool, and are continually making user -relevant updates. Currently, our website is leads the line- up of keeping our target involved, with up-to-date and exhaustive information. Player Statistics: From December 1, 2007 to September 26, 2008, we have received 52,745 visitors with a total of 193,014 page views. Visitors are predominantly from the United States, but we have also seen significant traffic from Canada, United Kingdom and Mexico. Utility Bill Education Insert, Eco -Friendly bags and Main Street Banners Game Plan: It is important that the citizens of Round Rock know how the Convention and Visitor's Bureau improves their quality of life because they play an important role in the building of the Sports Capital of Texas brand. While the CVB is focused on telling our story to those across the state who will bring tournaments and meetings to our city, we need to encourage the community to develop ways to support the brand within Round Rock. Offensive Blitz: Interesting facts, including financial and facility benefits were conveyed along two avenues. This includes the Earth -friendly bags that were passed out at the June Round Rock Express game and the educational flyer that was inserted in the city utility bills. In the bags, an interior handout was included that visually and verbally captured the benefits of the Round Rock CVB. Also, to remind the community that they live in the Sports Capital of Texas, bright colorful banners were designed and displayed up and down Main Street. Player Statistics: 3,000 Earth -friendly bags were given out at the Round Rock Express game and 33,500 people in Round Rock received an educational flyer in their utility bill. Banners were strategically placed for all citizens to see driving down Main Street. These three efforts followed last year's humorous "Be A Fan" commercials and helped continue rallying the citizens of Round Rock. Miscellaneous CVB Hot Rates, Photo Manager, Logo Standards, Scrolling Banner for trade show, Rule Book edits and Souvenir Guide edits In addition to the above home runs that we have made this year, we have also won several awards for our work. The awards include: TAMI Awards- First and Second Place for Community Cable PSA's TACVB Awards/People's Choice- First Place for Sports Marketing, Advertising, and Video TACVB Awards/Judge's Choice- First Place for Sports Marketing, Advertising and Video