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HomeMy WebLinkAboutAgenda - 03-19-2019 8-e - Marketing Communications Management Agreement with Clean Design, Inc. 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 19, 2019 Action Agenda Item No. 8-e SUBJECT: Marketing Communications Management Agreement with Clean Design, Inc. DEPARTMENT: Economic Development/Visitors Bureau ATTACHMENT(S): INFORMATION CONTACT: Proposed March 1, 2019 through June Laurie Paolicelli, 919-245-4322 30, 2022 Agreement between the Chapel Hill/Orange County Visitors Bureau and Marketing Agency, Clean Design, Inc. PURPOSE: To approve a professional services agreement for tourism marketing and advertising with Clean Design, Inc. of Raleigh, NC. BACKGROUND: The Visitors Bureau has maintained an advertising agency contract for twenty years to accomplish media buying and online campaign work for Orange County with the goal of growing demand for tourism and conferences which strengthens economic impact. Orange County's tourism industry is anticipated to grow 8% this fiscal year. The Visitors Bureau initiated a request for proposals (RFP) process on November 29, 2018 and seven marketing and advertising agencies responded. Of those, two agencies were interviewed by a sub-committee of the Visitors Bureau Advisory Board. That sub-committee included Board Chair Anthony Carey, Board Vice-Chair Rosemary Waldorf, Board Member Jeff Stickler, Orange County Commissioner and Visitors Bureau Finance Chair Penny Rich, and Laurie Paolicelli, Executive Director of the Visitors Bureau. Clean Design presented a recommended draft strategy rooted in its thorough review of all research, along with a strategy for mixed media in key markets and examples of how the firm was able to increase tourism through immersive technologies while working with VisitBoone.com; VisitWilmington.com; and VisitCharlottesville.com. Clean Design has been acting as the bureau's ad agency under a 90 day contract since December 1, 2018. Clean Design's experience in travel, commitment to reviewing research and creative strategies before the meeting, along with its proximity in Raleigh made it the sub-committee's top choice. Clean Design noted that the firm did not submit a proposal to the Visitor's Bureau during an RFP process two years ago and acknowledged that misstep. The representatives shared that the company had worked hard on the 2018 RRFP to stand out and deliver, and it was accepted and appreciated by the sub-committee. 2 The 40-month agreement entails the following costs: • $240,000 for March 1, 2019 through June 30, 2019; and • $500,000 per fiscal year for a total of$1.5 million for July 1, 2019 through June 30, 2022. This contract encompasses tourism and conference marketing campaigns aimed at event and conference decision makers who book hotels and meetings as well as sporting and bridal events. The campaign will seek to grow tourism segments including the LGBT market, event attendees, and mid-week and weekend travelers. The campaign will focus online and in print; targeting North Carolina, Virginia, South Carolina and Florida. Marketing tactics include website, App, social media platforms and advertising in magazine and on television and through video on social media platforms. The contract also includes new video, photography and market research to gage changing views of the Orange County area. In keeping withv isitors bureau best practices, the annual $1.5 million advertising campaign represents approximately one-third of the Visitors Bureau's annual budget. FINANCIAL IMPACT: The costs associated with the proposed contract with Clean Design are as follows: • $240,000 in fiscal year 2018-19 • $500,000 in fiscal year 2019-20 • $500,000 in fiscal year 2020-21 • $500,000 in fiscal year 2021-22 SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. Tourism is a clean and green industry that fuels the economy leading to the economic self- sufficiency of Orange County residents. RECOMMENDATION(S): The Manager recommends the Board approve and authorize the Chair to sign the proposed agreement, with the cost for the current year being funded out of the 2018-19 Visitors Bureau budget, and the necessary funds being included in the next three years Visitors Bureau budgets. 3 [Departmental Use Only] TITLE FY NORTH CAROLINA SERVICES AGREEMENT OVER $90,000.00 RFP/RFQ ORANGE COUNTY This Services Agreement (hereinafter "Agreement"), made and entered into this 1st day of March, 2019, ("Effective Date") by and between Orange County, North Carolina a political subdivision of the State of North Carolina (hereinafter, the "County") andClean Design, Inc., a North Carolina S Corporation having an address of 6601 Six Forks Road, Suite 400, Raleigh,NC 27615, (hereinafter, the "Provider"). WITNESSETH: That the County and Provider, for the consideration herein named, do hereby agree as follows: 1. Services a. Scope of Work. i) This Services Agreement ("Agreement") is for professional services to be rendered by Provider to County with respect to (insert type of project): Marketing and Communications Management ii) By executing this Agreement, the Provider represents and agrees that Provider is qualified to perform and fully capable of performing and providing the services required or necessary under this Agreement in a fully competent, professional and timely manner. iii) Time is of the essence with respect to this Agreement. iv) The services to be performed under this Agreement consist of Basic Services, as described and designated in Section 3 hereof. Compensation to the Provider for Basic Services under this Agreement shall be as set forth herein. 2. Responsibilities of the Provider a. Services to be provided. The Provider shall provide the County with all services required in Section 3 to satisfactorily complete the Project within the time limitations set forth herein and in accordance with the highest professional standards. b. Standard of Care. i) The Provider shall exercise reasonable care and diligence in performing services under this Agreement in accordance with the highest generally accepted standards of this type of Provider practice throughout the United States and in accordance Revised 12/18 1 4 with applicable federal, state and local laws and regulations applicable to the performance of these services. Provider is solely responsible for the professional quality, accuracy and timely completion and/or submission of all work related to the Basic Services. ii) Provider shall be responsible for all errors or omissions of its agents, contractors, employees, or assigns in the performance of the Agreement. Provider shall correct any and all errors, omissions, discrepancies, ambiguities, mistakes or conflicts at no additional cost to the County. iii) The Provider shall not, except as otherwise provided for in this Agreement, subcontract the performance of any work under this Agreement without prior written permission of the County. No permission for subcontracting shall create, between the County and the subcontractor, any contract or any other relationship. iv) Provider is an independent contractor of County. Any and all employees of the Provider engaged by the Provider in the performance of any work or services required of the Provider under this Agreement, shall be considered employees or agents of the Provider only and not of the County, and any and all claims that may or might arise under any workers compensation or other law or contract on behalf of said employees while so engaged shall be the sole obligation and responsibility of the Provider. v) If activities related to the performance of this Agreement require specific licenses, certifications, or related credentials Provider represents that it and/or its employees, agents and subcontractors engaged in such activities possess such licenses, certifications, or credentials and that such licenses certifications, or credentials are current, active, and not in a state of suspension or revocation. 3. Basic Services a. Basic Services. i) The Provider shall perform as Basic Services the work and services described herein and as specified in the County's Request for Proposals or Request for Qualifications (the "REP") "REP Number 5256 for "Advertising Campaign and Media Placement On-Line Strategy" issued November 29, 2018, and the Provider's proposal, which are fully incorporated and integrated herein by reference together with Attachments Exhibit 1 and 2 (designate all attachments). In the event a term or condition in any document or attachment conflicts with a term or condition of this Agreement the term or condition in this Agreement shall control. Should such conflict arise the priority of documents shall be as follows: This Agreement, the County's RFP together with attachments, Provider's Proposal together with attachments. ii) The Basic Services will be performed by the Provider in accordance with the following schedule: (Insert task list and milestone dates) Task Milestone Date Revised 12/18 2 5 1. Campaign concepting including reviews and approvals March-April 2019 2. Agency/partner visitor profile research and new campaign production including video/photography development for campaign launch April-June 2019 3. Brand strategy development and implementation, media planning and buying, creative development and execution July 2019 - June 2022 iii) Should County reasonably determine that Provider has not met the Milestone Dates established in Section 3(a)(ii), County shall notify Provider of the failure to meet the Milestone Date. The County, at its discretion may provide the Provider seven (7) days to cure the breach. County may withhold the accompanying payment without penalty until such time as Provider cures the breach. In the alternative, upon Provider's failure to meet any Milestone Date the County may modify the Milestone Date schedule. Should Provider or its representatives fail to cure the breach within seven (7) days, or fail to reasonably agree to such modified schedule, County may immediately terminate this Agreement in writing, without penalty or incurring further obligation to Provider. This section shall not be interpreted to limit the definition of breach to the failure to meet Milestone Dates. 4. Duration of Services a. Term. The term of this Agreement shall be from March 1, 2019 to June 30, 2022. b. Scheduling of Services i) The Provider shall schedule and perform its activities in a timely manner so as to meet the Milestone Dates listed in Section 3. ii) Should the County determine that the Provider is behind schedule, it may require the Provider to expedite and accelerate its efforts, including providing additional resources and working overtime, as necessary, to perform its services in accordance with the approved project schedule at no additional cost to the County. iii) The Commencement Date for the Provider's Basic Services shall be March 1, 2019. 5. Compensation a. Compensation for Basic Services. Compensation for Basic Services shall include all compensation due the Provider from the County for all services under this Agreement. The maximum amount payable for Basic Services is Two Hundred and Forty Thousand Dollars ($240,000.00) for the period of March 2019 - June 30, 2019. Thereafter the maximum amount payable each fiscal year (July 1 -June 30) shall not exceed Five Hundred Thousand Dollars ($500,000.00). In the event the amount stated on an invoice is disputed by the County, the County may withhold payment of all or a portion of the amount stated on an invoice until the parties resolve the dispute. Payment for Basic Services shall become due and payable in direct proportion to satisfactory services performed and work accomplished. Payments will be made as percentages of the whole as Project milestones as set out in Section 3(a)(ii) are achieved. (For example, if there Revised 12/18 3 6 are 10 Project Tasks with Milestone Dates then Provider may invoice for the first 10% of the whole upon County's acknowledgement of the satisfactory completion of Task one. Upon the County's acknowledgement that the second Task has been satisfactorily completed Provider may invoice for the next 10%of the whole.) b. Additional Services. County shall not be responsible for costs related to any services in addition to the Basic Services performed by Provider unless County requests such additional services in writing and such additional services are evidenced by a written amendment to this Agreement. 6. Responsibilities of the County a. Cooperation and Coordination. The County has designated (Laurie Paolicelli) to act as the County's representative with respect to the Project and shall have the authority to render decisions within guidelines established by the County Manager and/or the County Board of Commissioners and shall be available during working hours as often as may be reasonably required to render decisions and to furnish information. 7. Insurance a. General Requirements. Provider shall obtain, at its sole expense, Commercial General Liability Insurance, Automobile Insurance, Workers' Compensation Insurance, and any additional insurance as may be required by County's Risk Manager as such insurance requirements are described in the Orange County Risk Transfer Policy and Orange County Minimum Insurance Coverage Requirements (each document is incorporated herein by reference and may be viewed at http://www.orangecountVnc.gov/departments/purchasing division/contracts.php.) If County's Risk Manager determines additional insurance coverage is required such additional insurance shall consist of N/A (if no additional insurance required mark N/A as being not applicable). Provider shall not commence work until such insurance is in effect and certification thereof has been received by the County's Risk Manager. 8. Indemnity a. Indemnity. The Provider agrees, without limitation, to defend, indemnify and hold harmless the County from all loss, liability, claims or expense, including attorney's fees, arising out of or related to the Project and arising from property damage or bodily injury including death to any person or persons caused in whole or in part by the negligence or misconduct of the Provider except to the extent same are caused by the negligence or willful misconduct of the County. It is the intent of this provision to require the Provider to indemnify the County to the fullest extent permitted under North Carolina law. 9. Amendments to the Agreement a. Changes in Basic Services. Changes in the Basic Services and entitlement to additional compensation or a change in duration of this Agreement shall be made by a written Amendment to this Agreement executed by the County and the Provider. The Provider shall proceed to perform the Services required by the Amendment only after receiving a fully executed Amendment from the County. Revised 12/18 4 7 10. Termination a. Termination for Convenience of the County. This Agreement may be terminated without cause by the County and for its convenience upon seven (7) days prior written notice to the Provider. b. Other Termination. The Provider may terminate this Agreement based upon the County's material breach of this Agreement; provided, the County has not taken all reasonable actions to remedy the breach. The Provider shall give the County seven (7) days' prior written notice of its intent to terminate this Agreement for cause. c. Compensation After Termination. i) In the event of termination, the Provider shall be paid that portion of the fees and expenses that it has earned to the date of termination, less any costs or expenses incurred or anticipated to be incurred by the County due to errors or omissions of the Provider. ii) Should this Agreement be terminated, the Provider shall deliver to the County within seven (7) days, at no additional cost, all deliverables including any electronic data or files relating to the Project. d. Waiver. The payment of any sums by the County under this Agreement or the failure of the County to require compliance by the Provider with any provisions of this Agreement or the waiver by the County of any breach of this Agreement shall not constitute a waiver of any claim for damages by the County for any breach of this Agreement or a waiver of any other required compliance with this Agreement. e. Suspension. County may suspend the Basic Services and this Agreement at any time for County's convenience and without penalty to County upon three (3) days' notice to Provider. Upon any suspension by County, Provider shall discontinue the Basic Services and shall not resume the Basic Services until notified to proceed by County. 11. Additional Provisions a. Limitation and Assigm-nent. The County and the Provider each bind themselves, their successors, assigns and legal representatives to the terms of this Agreement. Neither the County nor the Provider shall assign or transfer its interest in this Agreement without the written consent of the other. b. Governing Law. This Agreement and the duties, responsibilities, obligations and rights of respective parties hereunder shall be governed by the laws of the State of North Carolina. c. Compliance with Laws. Provider shall at all times remain in compliance with all applicable local, state, and federal laws, rules, and regulations including but not limited to all state and federal anti-discrimination laws, policies, rules, and regulations and the Orange County Non-Discrimination Policy and Orange County Living Wage Policy (each policy is incorporated herein by reference and may be viewed at Revised 12/18 5 8 hqp://www.oran eg counl nc. og v/departments/purchasing division/contracts.php.) Any violation of this requirement is a breach of this Agreement and County may immediately terminate this Agreement without further obligation on the part of the County. This paragraph is not intended to limit and does not limit the definition of breach to discrimination. By executing this Agreement Provider affirms that Provider and any subcontractors of Provider are and shall remain in compliance with Article 2 of Chapter 64 of the North Carolina General Statutes. By executing this Agreement Provider certifies that Provider has not been identified, and has not utilized the services of any agent or subcontractor identified, on the list created by the State Treasurer pursuant to G.S. 147-86.58. By executing this Agreement Provider certifies that Provider has not been identified, and has not utilized the services of any agent or subcontractor identified, on the list created by the State Treasurer pursuant to G.S. 147-86.81. d. Dispute Resolution. Any and all suits or actions to enforce, interpret or seek damages with respect to any provision of, or the performance or non-performance of, this Agreement shall be brought in the General Court of Justice of North Carolina sitting in Orange County, North Carolina. It is agreed by the parties that no other court shall have jurisdiction or venue with respect to such suits or actions. Binding arbitration may not be initiated by either Party, however, the Parties may agree to nonbinding mediation of any dispute prior to the bringing of a suit or action. e. Entire Agreement. This Agreement, together with the RFP and its attachments and the Proposal and its attachments, represents the entire and integrated agreement between the County and the Provider and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both parties. Modifications may be evidenced by facsimile signatures. f. Severability. If any provision of this Agreement is held as a matter of law to be unenforceable, the remainder of this Agreement shall be valid and binding upon the Parties. g. Ownership of Work Product. Should Provider's performance of this Agreement generate documents, items or things that are specific to this Project such documents, items or things shall become the property of the County and may be used on any other project without additional compensation to the Provider. The use of the documents, items or things by the County or by any person or entity for any purpose other than the Project as set forth in this Agreement shall be at the full risk of the County. h. Non-Appropriation. Provider acknowledges that County is a governmental entity, and the validity of this Agreement is based upon the availability of public funding under the authority of its statutory mandate. In the event that public funds are unavailable and not appropriated for the performance of County's obligations under this Agreement, then this Agreement shall automatically expire without penalty to County immediately upon written notice to Provider of the unavailability and non-appropriation of public funds. It is expressly agreed that County shall not activate this non-appropriation provision for its convenience or to circumvent the requirements of this Agreement, but only as an emergency fiscal measure during a Revised 12/18 6 9 substantial fiscal crisis. In the event of a change in the County's statutory authority, mandate and/or mandated functions, by state and/or federal legislative or regulatory action, which adversely affects County's authority to continue its obligations under this Agreement, then this Agreement shall automatically terminate without penalty to County upon written notice to Provider of such limitation or change in County's legal authority. i. Signatures. This Agreement together with any amendments or modifications may be executed electronically. All electronic signatures affixed hereto evidence the consent of the Parties to utilize electronic signatures and the intent of the Parties to comply with Article I IA and Article 40 of North Carolina General Statute Chapter 66. j. Notices. Any notice required by this Agreement shall be in writing and delivered by certified or registered mail, return receipt requested to the following: Orange County Provider's Name &Address Attention: Laurie Paolicelli Clean Design, Inc. P.O. Box 8181 6601 Six Forks Rd., Ste 400 Hillsborough,NC 27278 Raleigh,NC 27615 IN WITNESS WHEREOF, the Parties, by and through their authorized agents, have hereunder set their hands and seal, all as of the day and year first above written. ORANGE COUNTY: PROVIDER: By: By: Chair, Board of County Commissioner Natalie Perkins Holden, CEO Printed Name and Title Revised 12/18 7 Exhibit 110 clean ....................................................................................................... client: Chapel Hill /Orange County Visitors Bureau project: March 1 -June 30, 2019 "Bridge" SOW date: 2/18/19 Project Description Clean will work with the Client from March 1, 2019, to June 30, 2019, to complete the deliverables described below. The overall budget will be used to compensate Clean for working to complete those deliverables, along with payment of hard costs including asset production and research needed for campaign launch. Exact costs will be shared before the start of each project/deliverable and approved by the Client in advance. This scope of work includes these deliverables/tasks: o Presentation development, including strategy light, creative concepts, and media approach o Team to present completed work from the 90-day project to the board of directors on March 20, 2019 o Once creative direction is approved, the team will execute new campaign assets against the approved media approach, which could include: ■ Photography planning, shoot, and post-production ■ Video(s) planning, shoot, and post-production ■ Potential digital animation for rich media o Paid media plan development and management prior to launch o Experiential/non-traditional media plan development prior to launch o Strategy visitor profile research (Spring 2019) These deliverables will be executed by Clean and will require ongoing time/hours from the following teams to execute: o Account management and oversight o Media strategy and planning o Brand strategy o Creative development and direction o Production planning and on-site support o Project management o Finance- monthly media billing and agency fees Estimated Cost $240,000 total a: 6601 Six Forks Road, Suite 400, Raleigh, NC 27615 p:919.544.2193 w:cleaninc.com 11 clean ............................................................................................................. Project Terms Fee Assumptions Estimated fees are based on the scope of work and assumptions as described in this proposal and are valid for 60 days. These estimates may be revised upward or downward based on final discussions of scope and deliverables between the Client and the Agency prior to contract execution. Assuming no deviations, the final invoice will be issued at or within +/- 10%of this estimate. Estimated fees are for Clean professional services only, unless otherwise noted. All outside costs and expenses will be separately estimated and billed at actual costs. No production or outside services will be contracted for the Client unless the services have been previously authorized by the Client. Examples of these outside costs could include photography, research, imagery, hosting, SEM/SEO charges, Agency travel, etc. These costs will be billed monthly as incurred, or as needed prior to contracting with outside parties. Outside purchases made on behalf of the Client will require advanced payment prior to the supplier engagement. Fees assume two rounds of revisions for each deliverable requiring Client review, feedback, and approvals. The Client will provide a single point of contact to provide review, feedback, and approvals. Final files become the property of the Client upon receipt of final payment of all outstanding invoices. Final files may include camera-ready output, negative film, reels, and press plates, where applicable. Electronic files of Client projects are also owned by the Client but will remain in the Agency's custody for the contract period. If a project is canceled, the Client is responsible for the greater of 50 percent of the estimated project cost or the total percentage of work completed. Billing Terms—Project Fees Over$10,000 Client engagements or projects exceeding $10,000 require a 50 percent deposit due upon receipt of invoice. Based on the original project timeline, the balance of the fees will be invoiced in equal installments at the beginning of each month and are due within 15 days of invoice. OTHER The client agrees to allow Clean to publicize the new relationship and overall project scope, including on its website, through social media and in external press releases, within 30 days of the new Client signing the contract. The client will be allowed to review and approve final press releases prior to release. This estimate is based on the information and activities detailed above. Deviations from the parameters specified in the description will be reflected in a proposal amendment and/or the final invoice, either of which may exceed the total amount of this proposal. a: 6601 Six Forks Road, Suite 400, Raleigh, NC 27615 p:919.544.2193 w:cleaninc.com 12 clean ............................................................................................................. Approved by Date Laurie Paolicelli, Executive Director, Chapel Hill/Orange County Visitors Bureau Natalie Perkins Holden, CEO, Clean Inc. a: 6601 Six Forks Road, Suite 400, Raleigh, NC 27615 p:919.544.2193 w:cleaninc.com Exhibit 2 13 < •� clean ............................................................................................................. Agency of Record Contract Scope of Services Chapel Hill/Orange County CVB July 1, 2019—June 30, 2022 This contract confirms that Chapel Hill/Orange County Visitors Bureau, hereinafter referred to as Client, has hired Clean, Inc. of 6601 Six Forks Road, Suite 400, in Raleigh, North Carolina, hereinafter referred to as Agency, as its Agency of Record. 1. Agency of Record As the Client's Agency of Record partner, the Agency has been retained to execute and/or oversee the research, planning, public relations (as needed), and creative work for destination marketing services needed to promote the Client. Under this Agency of Record contract, the Agency has authority to purchase media and outside services on the Client's behalf and based on approval of written estimates by the Client and receive standard agency compensation. 2. Summary of Services The Agency will provide a range of services associated with the strategies and plans presented to the Chapel Hill/Orange County Visitors Bureau and included below for the period of July 1, 2019—June 30, 2022, with the possibility to renew if all parties are in agreement. A summary of the overall scope of services is as follows. These services are recommended based on past work and experiences. New executions and services may be added and existing may be removed should strategy, creative, or other circumstances direct that change may be needed. Should the scope of services shift, a separate scope of work document or change order will be sent to the Client to cover additional costs. The following accounts for a scope of services associated with a dedicated brand team who will work on your account from each department: Account Management and Oversight • Account management and direction for all work and agreed-upon deliverables, which may include: strategy, paid media across all channels, creative development, and production. • Account team will be responsible for managing/coordinating the following activities: o Main day-to-day point of contact to manage the account and funnel all communications/requests from the Client to the internal brand team and departments. 14 clean ............................................................................................................. o Scheduling and attendance of Client meetings, and presentations as needed when requested by the Client and the board of directors. o Development of presentations as needed for marketing committee/board meetings. o Generation and weekly updates of status reports and regular status calls as needed; monitoring of timelines and priorities. o Review and sharing of all strategy and creative work with the Client. o Development of schedules for review and approval of creative against media buys; sharing of schedules for each with the Client; planning of workflow. o Coordination and submission of all paid media on a timely basis with the media and project management team. o Work that coordinates with media and creative teams the specific ad run dates, images, CTAs, and messaging for all varied paid media buys. o Management and tracking of monthly billing/budget: generation and reconciliation of project and account invoices. o Prompt notification of the Client if we are going over on scope/agreed upon hours. o Monitoring and funneling with the larger team the agreed-upon review/analysis of the existing media plan, results/reporting, and metrics. Paid Media Planning and Management • Overall and ongoing strategic media recommendations and approach, including allocation with select partners/vendors. • Research, planning, negotiation, placement, and management of both traditional and non-traditional media. • Coordination with all third parties on external media buys unless separately arranged by the Client (ex: radio stations, talent,TV stations, print media, online media, event sponsorship details, etc.) • Purchasing and billing of media on behalf of the Client. • Includes related added-value programs, and any traffic related to that same media • Deployment of appropriate methods for measuring the impact of executed media strategies and tactics.This includes ongoing review and analysis of campaign against goals with agreed-upon reporting frequency. Strategy Development and Implementation • Development and identification of a strategic framework each year on behalf of the destination; to be revisited as needed. • Ongoing monitoring of work and reviews to ensure creative and idea execution are delivering against approved/recommended strategic direction. 15 clean ............................................................................................................. • Recommendations on additional research that may be needed, whether qualitative or quantitative. Creative Development and Direction • Develop a results-driven creative campaign, including a comprehensive destination brand and messaging for the Chapel Hill/Orange County area. • Provide campaign direction, creative concepts, and development against all paid media plan deliverables. • Provide traditional/non-traditional big ideas based on the strategic direction and brand positioning. • Align copy and visuals to recent photography and other campaign elements, including audience and target viewership of selected advertising medium. • Standardize all campaign elements and create continuity and consistency for the brand. • Design team and mechanical artists to resize all advertising and creative elements to specifications for media placements and vendors. • Provide management of the production of various creative concepts and delivery to media vehicles as required, along with support from account and project management. • Should any new production costs be requested or needed(ex:new photography, video, experiential), they will be scoped separately as additional costs, then presented and approved by the Client in advance. Project Management: • Create, follow, and monitor project timelines for each deliverable. Includes creative concepts work to creative deliverables against the full media plan. • Ensure work is shared with the Client and delivered on time. • Build to specifications and guidelines listed within the approved media plan for each partner/vendor. • Examine/check all files for quality control and assurance; prepare all final files for external use. • Along with media team, monitor traffic of all creative final files once approved by the Client through account team, and send to media vendors. 3. Standards of Quality The Client agrees to work with the Agency toward a common goal of creative professional advertising projects that maintain a high level of quality. To ensure this, the Client agrees that the Agency will handle the planning and creative work on all advertising projects, as well as coordination and follow-through. This includes media placement, outside vendor purchase, and billing. 16 clean ............................................................................................................. 4. Approval and Estimates for Work Performed The Agency will submit all advertising plans and campaigns, copy, layouts, artwork, storyboards, scripts, and media schedules to the Client for approval, along with written estimates when requested. All outside costs such as photography, illustrations, printing, video production, etc., will be separately estimated and approved by the Client. No advertising or outside services will be contracted for the Client unless the services have been previously authorized by the Client. The Client may request changes or cancellations, or stop any work in progress, provided such requests are within the Agency's contractual obligations. Where changes or cancellations are requested on previously approved work, the Client will reimburse the Agency for any charges or expenses not covered. 5. Compensation and Payment Terms The Agency will pay a monthly fee as determined in Exhibit A, which will be reviewed after each contract year. Invoices are submitted at the beginning of each month and are due in net 30 days. In addition to the monthly fee, the Agency will separately bill the Client each month for that month's media placements. The media invoices will include a 15% commission. These invoices are due net 30 days so that media obligations are met as incurred. Interest at prevailing rates will be charged on accounts past due 30 days. 6. Ownership, Custody, and Control of Property The Client will own all rights to all versions of advertising projects that have been invoiced and paid for. This includes camera-ready output, negative film, reels, and press plates, where applicable. Electronic files of Client projects are also owned by the Client but will remain in the Agency's custody for the contract period. 7. Confidentiality The Agency shall maintain the confidentiality of all information designated by the Client as being secret or confidential. 8. Liability Indemnification: We agree to exercise our best judgement in the preparation and placement of all advertising and publicity for the Client, with a view to avoiding claims, suits, or proceedings being made or instituted against the Client or the Agency. It is mutually agreed, however, that to the extent allowed by applicable law, the Client will indemnify 17 clean ............................................................................................................. the Agency against any loss the Agency may incur as the result of any claims, suits, or proceedings made or brought against the Agency based upon any advertising or publicly that the Agency prepared for the Client and that the Client approved before its publication or broadcast. The Client will also indemnify the Agency to the extent allowed by applicable law against any loss the Agency may sustain as a result of any claim, suit, or proceeding made or brought against the Agency based upon any advertising element (i.e., photographs, artwork, etc.) that is furnished by the Client and that allegedly violates the personal or property rights of any person or corporate entity if the Client approved in writing the use of said advertising element before its publication or broadcast. The Agency shall not be held liable for failure of media or suppliers to meet their obligations. The Agency shall not be liable for delay, or omission, or error, in any advertisement in the absence of willful fault or neglect. Nothing in this agreement shall be deemed to require the Agency to undertake any campaign or prepare any advertising or publicity that in the Agency's judgement is misleading, libelous, unlawful, indecent, or otherwise prejudicial to the Agency or the Client's interest. 9. Term and Termination This Agency of Record contract shall begin July 1, 2019 and be eligible to continue for three years until terminated by either party giving ninety (90) days' advance notice in writing. The contract may also be terminated sooner, providing that all invoices for completed work and/or work in progress at the time of termination are paid in full. In the event of termination, the Client will be responsible for expenses and charges approved prior to termination, including media ordered and production ordered. 10. Assignment This Agreement is not assignable by the Agency without the express written permission of the Client. 11. Governing Law The Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina, and the exclusive venue for any claim or dispute shall be the Courts located in Chapel Hill, Orange County, North Carolina. 12. E-Verify The Agency will ensure its compliance with Title IV, Subtitle A, of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, Pub. L. 104-208, 110 Stat. 3009. The Agency will provide all documentation that may be requested by the Client, including but 18 clean ............................................................................................................. not limited to completion of Form 1-9 for Employment Eligibility Verification, affidavits of compliance with this act, and such other documentation as the Client may request from time to time.The Agency shall not knowingly hire for employment, employ, or continue to employ an unauthorized alien. OTHER The Client agrees to allow Clean to publicize the new relationship and overall project scope, including on its website,through social media and in external press releases, within 30 days of the new Client signing the contract. The Client will be allowed to review and approve final press releases prior to release. This estimate is based on the information and activities detailed above. Deviations from the parameters specified in the description will be reflected in a proposal amendment and/or the final invoice, either of which may exceed the total amount of this proposal. Please sign two (2) copies of this Agency of Record Contract. Return one copy to the Agency as soon as possible and retain the other for your files. By: Laurie Paolicelli, Executive Director, Chapel Hill/Orange County Visitors Bureau By: Natalie Perkins Holden, CEO, Clean Inc. 19 < •� clean ............................................................................................................. [Exhibit A: Compensation] For FY19-20, the Client has a total budget of$500,000, including Agency and media fee. Paid Media/ Fee ■ $368,000 paid media spend • Includes standard 15%commission to Clean for Agency time associated with planning and completing the buy ■ $132,000 =total Agency fee • The Agency fee was calculated based on a blended rate of$165/hour. Annual hours are 800,therefore 66 hours/month. Clean will track hours and provide monthly reports. Unused hours roll over to the next month. The hours will be reconciled at the end of each quarter, and a more formal update will be provided to the Client. Each year, the hours will be reviewed to ensure that the Client and the Agency are making the best use of the resources available.The Agency fee will be budgeted for a cost-of-living increase each year. • As noted in section 1 scope of services, should any new production costs be requested or needed (example: new photography, video, experiential/non-traditional media), those costs will be scoped separately as additional costs, then presented and approved by the Client in advance. A�® CERTIFICATE OF LIABILITY INSURANCE D (MMIDD/YYYY) 02/28/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Donna Franklin NAME: Sentinel Risk Advisors aCC Ext: (919)926-4623 AIX No): (919)926-4664 4700 Six Forks Road E-MAIL drranklin@sentinelra.com ADDRESS: Suite 200 INSURER(S)AFFORDING COVERAGE NAIC# Raleigh NC 27609 INSURERA: AMCO Insurance Co. 19100 INSURED INSURER B: Accident Fund Insurance Co 10166 Clean Design Inc. INSURER C: 6601 Six Forks Rd,Ste 400 INSURER D: INSURER E: Raleigh NC 27615 INSURER F: COVERAGES CERTIFICATE NUMBER: CL1922806713 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCEADDLSUBR POLICY EFF POLICY EXP LTR INSD WVD POLICY NUMBER MM/DD/YYYY MM/DD/YYYY LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR PRIM SES Ea oNcE ence $ 300,000 MED EXP(Any one person) $ 5,000 A ACP BOPD 3037084777 03/26/2019 03/26/2020 PERSONAL&ADV INJURY $ 1,000,000 MOTHER LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY ❑ PRO ❑ LOC PRODUCTS-COMP/OPAGG $ 2,000,000 JECT: Hired Non Owned Auto $ included AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ Ea accident ANYAUTO BODILY INJURY(Per person) $ A OWNED SCHEDULED ACP BOPD 3037084777 03/26/2019 03/26/2020 BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident X UMBRELLA LIAB OCCUR EACH OCCURRENCE $ 2,000,000 A EXCESS LAB CLAIMS-MADE ACP BOPD 3037084777 03/26/2019 03/26/2020 AGGREGATE $ 2,000,000 DED I X1 RETENTION $ 0 $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY STATUTE ER YIN 500,000 ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT $ B OFFICER/MEMBER EXCLUDED? NIA WCV 6120677 01/01/2019 01/01/2020 (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 500,000 If yes,describe under 500,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ BPP Limit $1,174,000 A Property ACP BOPD 3037084777 03/26/2019 03/26/2020 Deductible $1,000 DESCRIPTION OF OPERATIONS I LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,NOTICE WILL BE DELIVERED IN Orange County ACCORDANCE WITH THE POLICY PROVISIONS. P O Box 8181 AUTHORIZED REPRESENTATIVE Hillsborough NC 27278 @ 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD