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HomeMy WebLinkAboutInformational Report - Updates to the El Paseo Courtesy Cart PgrmCITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT MEETING DATE: August 22, 2019 PREPARED BY: Deborah S. Glickman, Business Advocate PSG-` REQUEST: Receive and File Update on the Proposed Updates to the El Paseo Courtesy Cart Program, and Provide Direction on an Advertising Program for the Palm Desert Courtesy Carts Recommendation By Minute Motion: 1. Receive and File report on the El Paseo Courtesy Cart Program. 2. Provide direction to staff pursuant to an advertising program for the El Paseo Courtesy Carts. Funds are available in the FY 2019/2020 budget Account Number 1104416- 4368100, Courtesy Carts. Strateqic Plan The approval of the El Paseo Courtesy Cart program aligns with the City's Envision Palm Desert Strategic Plan in the following areas: • Economic Development Priority 4: Expand and raise awareness of business - friendly services in order to retain and attract business. • Transportation Priority 3: De-emphasize the use of single/low occupancy vehicles and optimize multiple modes of travel. Committee Recommendation On August 6, 2019, staff made a presentation on the proposed advertising plan to the Marketing Committee and received minimal feedback. Staff will present the advertising plan to the El Paseo Parking and Business Improvement District (BID) at its regularly scheduled meeting on August 15, 2019, and will orally report on the BID's response at the City Council meeting. August 22, 2019 — Staff Report El Paseo Courtesy Cart Update Page 2 of 4 Executive Summary This report is an update to City Council on actions taken on the Courtesy Cart program since its June 13, 2019 meeting. Staff is also seeking feedback on next steps for the Courtesy Cart advertising program. Discussion At its June 13, 2019 meeting, the City Council directed staff to return to it to present an update on the following Courtesy Cart items: • The development of an application (app) that allows users to track cart locations in realtime. • Cart identification signage for the Courtesy Carts • An onboard advertising program Since the meeting, staff has done the following. Courtesv Cart Application Staff is in the final stages of development of a Memorandum of Understanding (MOU) between the Sunline Transit Authority (Sunline) and the City for Sunline to provide cart tracking capabilities via its myStop® app, which is provided by Avail. Sunline will be responsible for acquiring, installing, and maintaining all app-related GPS hardware and software for the carts. The total cost for the app for two (2) Courtesy Carts is $7,482 for the length of the MOU, which runs through May 2022. The MOU will be signed on behalf of the City by the City Manager, as it is below the approved City Manager's signatory threshold. The app will be added to marketing materials for El Paseo, and be installed prior to the carts beginning circulation in October 2019. Courtesv Cart Sianage Staff issued a Request for Bids for signage for the Courtesy Carts. The request was sent directly to nine (9) companies and was posted in accordance with the procurement policy. Staff received one (1) bid for the project, which was from Ace Golf Cart Repairs. The cost to fabricate and install illuminated signage for all three (3) carts is $5,335. The signage design is currently under review, and it will be installed prior to the carts beginning circulation in October 2019. Courtesv Cart Advertising Program Staff has been exploring creating an advertising program for the El Paseo Courtesy Carts. As such, staff issued a request for bids to add audio/visual components to the two (2) Courtesy Carts that are regularly driven. The request was sent to six (6) companies and was posted in accordance with the City's procurement policy. Staff August 22, 2019 — Staff Report El Paseo Courtesy Cart Update Page 3 of 4 received one (1) bid for the purchase and installation of the equipment. The bid was from Ace Golf Cart Repairs, in the amount of $10,200.00 for the two (2) Courtesy Carts. Proposed equipment for each of the carts includes audio equipment that can play two (2) mounted displays, DVD and USB capabilities to play video advertisements, four (4) speakers, wiring, receivers, and all other necessary equipment. Additionally, staff has developed an advertising policy (see attached) for the program. The policy establishes as its goal, to provide and sell advertisement space on monitors located in the Courtesy Carts to assist El Paseo businesses and the City with their marketing efforts. Under the program, advertising would be restricted to businesses affiliated with the El Paseo Parking and Business Improvement District and other organizations upon approval from the City Manager or her designee. Potential other organizations that would participate include non -profits such as The Living Desert and the McCallum Theatre. Advertising would also be restricted to the promotion of a business and its goods and services. Material relating to political, religious, or other controversial subject matters would be prohibited. The City's legal counsel has reviewed and approved the advertising policy. Economic Development staff has consulted with the City's Tourism and Marketing Manager, who anticipates that the national corporate stores on El Paseo would not budget for marketing on a local program such as this one. Traditionally, national brands market on a larger scale than is offered by the Courtesy Cart program. The Tourism and Marketing Manager also believes that the trend for the smaller, independently owned businesses is to market regionally rather than marketing to potential customers who are already on El Paseo. Therefore, staff anticipates that if the program is implemented, then the majority of the advertising on the carts would market the City and its events. Advertisements on the carts could be in both video and static format (i.e. slideshow presentations). The cost to the advertiser would be dependent on the type of ad they purchase, how often it is run, if it is a video or static, and if the advertiser has an existing ad. If the program is implemented, staff would work to ensure that all ads are of the quality expected of the City of Palm Desert and El Paseo brands. August 22, 2019 — Staff Report El Paseo Courtesy Cart Update Page 4 of 4 Staff estimates that the City's first -year costs for the program would include the following costs for a total of $14,000, and is unsure if that amount could be recuperated through ad revenue. • $10,000 for audio/visual equipment • $3,000 for advertising program software • $1,000 for creation of a media kit • TBD — Staff time to implement the program Staff believes that the benefits of a Courtesy Cart advertising program would be to allow the City, El Paseo businesses, and Palm Desert non-profit organizations an opportunity to advertise to a well -qualified audience of more than 35,000 riders annually. Staff also believes that some of the challenges of such a program would be in recuperating the City's costs by soliciting and securing businesses to pay for the creation of the ads as well as the fee to the City to run the ads. Staff is seeking direction from the City Council as to whether or not to move forward with an advertising program for the Courtesy Carts. Fiscal Analvsis Funds for the Courtesy Cart upgrades are available in the FY 2019/2020 budget in the Courtesy Cart Account Number 110 14416-4368100 in the amount of $27,000 for the following expenses: • $7,500 - App • $5,500 — Cart signage • $10,000 —Cart audio/visual components • $4,000 - Advertising software and media kit LEGAL REVIEW N/A Robert W. Hargreaves City Attorney ATTACHMENTS: DEPT. REVIEW Martin Alvarez Director of Economic Development FIN4N I R IEW CITY MANAGER Jan t Moore Lauri Aylaian Dir t r of Finance City Manager El Paseo Courtesy Cart Advertising Policy EL PASEO COURTESY CART PROGRAM ADVERTSING POLICY PURPOSE The City of Palm Desert desires to provide and sell advertising space on its El Paseo Courtesy Carts to assist El Paseo businesses and the City with their marketing efforts. This policy is intended to establish general guidelines for advertising by entities on the Courtesy Carts. The City recognizes that the proper operation of democratic government requires the public to have confidence in the integrity and impartiality of its government. As such advertising agreements are maintained by the City as a non-public forum and regulated by the City. The City reserves the right to exercise full discretion and editorial control over the placement, content, appearance, and wording of advertising affiliations and messages in accordance with the terms of this policy. SCOPE This policy applies to all advertising agreements entered into by the City with individuals and entities for the Courtesy Cart program. The decision to allow an advertisement discretionary and shall be considered on a case -by -case basis. The City is under no obligation to approve any requested sponsorship. The City reserves the right to deviate from the policy and criteria contained herein when it believes it is in its best interest to do so. DEFINITIONS For the purpose of this policy, the following definitions apply: • Advertising denotes the sale or lease of advertising on the City -owned Courtesy Carts. It involves the use of public advertising contracted at pre- determined rates for a set period of time. Advertising does not imply any reciprocal partnership arrangement since the advertiser is not entitled to any additional benefits beyond access to the space. Because of these marketing benefits, an advertisement does not qualify for a tax receipt. GENERAL • This policy supplements existing City policies and guidelines. However, in the event of a conflict between this policy and other City protocols involving advertising, this policy will prevail. • City staff is free to solicit, accept and negotiate advertising for the Courtesy Carts, subject to this policy. • Potential advertisers must not be canvassed in a manner that uses or implies coercion. Prospective advertisers that decline solicitations for contributions shall not be penalized. EL PASEO COURTESY CART PROGRAM ADVERTSING POLICY • City staff is not required to seek out competing bids when the advertising opportunity is initiated by a third party. • Benefits to the advertisers are limited to those expressly stated in the advertisement agreement. • The City does not endorse the products, services, or ideas of any advertisers. • All advertising relationships shall be confirmed by contract. • Since advertisements are only intended to supplement direct City funding and to enhance the Courtesy Cart program, the division's normal funding must not be displaced by the advertising arrangement. • In order to expedite partnership development, a formal competitive process is not required when soliciting advertising opportunities. While there is no obligation to test the market, in order to maximize the contribution, it is expected that several prospective advertisers will be approached when circumstances warrant. • Advertisers are solely responsible for obtaining any necessary permission to use photographs, trademarks, trade names, copyrighted material or any other legally protected property. POLICY It is Palm Desert's policy that its Courtesy Carts are not public forums for political discourse or expressive activity. Courtesy Cart program advertising spaces (physical or digital) are not intended to provide a forum for all types of advertisements, but only the limited advertisements accepted under the policy. All advertising shall be subject to this uniform viewpoint neutral policy. PERMITTED ADVERTISING In permitting limited advertising, Palm Desert seeks only to supplement income that funds its operations and promotes El Paseo businesses. Palm Desert does not desire to have its Courtesy Cart passengers subject to advertisements containing controversial material relating to political, religious, or other issues about which public opinion can be widely divergent. To realize the maximum benefit from the sale of space, all advertising programs must be managed in a manner that will generate as much revenue as practicable while ensuring that the advertising does not discourage use of Courtesy Cart services, does not diminish EL PASEO COURTESY CART PROGRAM ADVERTSING POLICY Palm Desert's reputation, and is consistent with the goal of providing safe and efficient transportation along El Paseo. 1. Advertising on the Courtesy Cars is restricted to member businesses of the El Paseo Parking and Business Improvement District and other organizations dependent on approval from the City Manager and her/his designee. 2. Commercial advertising has the sole purpose of promoting a business or to sell products, goods or services. It does not include advertising that both promotes a business or offers to sell products, goods or services, and also conveys a political or religious message, or can be construed as issue advocacy, or which expresses an opinion or position. 3. Operations advertising is permitted. This is defined as advertising that promotes Palm Desert, its services, programs, and events. 4. City of Palm Desert advertising is permitted. This is defined as advertising that promotes programs and events of the City of Palm Desert. 5. Entering into barter agreements are permitted if the City Manager or City Council determines that it is beneficial to the City. 6. The City Manager designees will determine the appropriate fee schedule for advertising on the Courtesy Carts. 7. Customers requesting advertisement orders will need to provide payment upfront — before each advertising period begins. Approval of advertising on the Courtesy Carts does not relieve the entity or individual advertiser from also complying with all other applicable City, state, and federal laws and regulations. EXCLUDED ADVERTISING In limiting advertising options, Palm Desert seeks to maintain a professional advertising environment that will maximize advertising revenue and minimize interference with or disruption to its Courtesy Cart service. Palm Desert further seeks to maintain an image of neutrality on political, religious, and other issues that are not the subject of commercial advertising and may instead be the subject of public debate and concern. Finally, Palm Desert's goal is to provide opportunities for on -street advertising for El Paseo businesses as well as to continue to build and retain ridership on its Courtesy Carts. Subject thereto, a proposed advertisement will be excluded if Palm Desert, in its sole discretion, determines it: EL PASEO COURTESY CART PROGRAM ADVERTSING POLICY 1. Contains defamatory, libelous, or obscene matter. 2. Is false, misleading, or deceptive. 3. Supports or opposes any labor organization or any action by, on behalf of, or against any labor organization. 4. Relates to or promotes any illegal activity. 5. Contains implicit or explicit sexual references, pictures or text, or includes material harmful to minors. 6. Depicts or promotes the sale of alcohol, cannabis, tobacco products, any illegal products, service, or entity and/or firearms. However, this prohibition shall not prohibit advertising that includes the name of a restaurant/establishment that is open to minors. 7. Depicts or advocates violence. 8. Includes language or images that are obscene, vulgar, or profane. 9. Demeans, degrades, or has the effect of promoting discrimination against any group or individual on the basis of race, color, religion, national origin, age, sex, disability, ancestry, or sexual orientation. 10. Political advertising of any form is not permitted. 11.Opposes the nomination or election of a candidate for public office, the investigation prosecution or recall of a public official, or the passage of a levy or bond issue. 12. Constitutes an unauthorized endorsement defined as advertising that implies or declares that Palm Desert endorses a product, service, viewpoint, event, or program. This definition does not include advertising for a service, event or program for which Palm Desert is an official sponsor, co-sponsor, or participant. 13. Constitutes a religious advertisement defined as advertising that contains a direct or indirect reference to religion, a deity or which includes reference to the existence, non-existence, or other characteristics of a deity or any religious creed, denomination, belief, tenant, cause, or issue related to opposing or questions any religion. This includes text, symbols, images commonly associated with any religion or deity or any religious creed, denomination, belief, tenant, cause or issue relating to, opposing or questioning any religion. EL PASEO COURTESY CART PROGRAM ADVERTSING POLICY 14.Advertising that encourages a person to refrain from using Palm Desert's Courtesy Cart services or visiting or living in Palm Desert. 15.Advertising that explicitly and directly promotes or encourages the use or means to transportation in direct competition with public transit. 16. The City reserves the right to decline any advertising that appears to be in direct competition with services/products offered by El Paseo businesses. 17.Additional guidelines may be provided by the responsible City department as needed for the specific advertising opportunity. ADMINISTRATION AND ENFORCEMENT OF POLICY Approval of advertisements shall be made within the sole discretion of the City. All sponsorships shall be memorialized in a written agreement approved by the appropriate authority as set -out herein. The City Manager or her/his designee has the authority to seek and negotiate all advertising agreements with individuals and entities. Review by the City Manager: The City Council designates the City Manager to administer the Advertising Policy. This delegation is with the power of re -designation to appropriate staff. The City Manager or her/his designee shall review all advertisement content and determine whether it complies with this policy. If the City Manager or her/his designee determines that the advertisement does not comply, written notification of same shall be provided to the advertiser with a copy of this policy. On an as -needed basis, the City Manager or her/his designee may refer any controversial proposed ad content to the City Council for approval or rejection with a majority vote. The City Council may override any decision by the City Manager on advertising content with a majority vote. A formal competitive process is not required when soliciting advertising opportunities. While there is no obligation to test the market, in order to maximize the advertisements, it is expected that several prospective advertisers will be approached when circumstances warrant.