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HomeMy WebLinkAboutRes 2019-73 - Policy on Third-Party SponsorshipsSTAFF REPORT CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT MEETING DATE: September 12, 2019 PREPARED BY: Vanessa Mager, Management Analyst REQUEST: Adopting a Resolution of the City Council of the City of Palm Desert, California, Adopting a Policy on Third Party Sponsorships of City Produced Events (Exhibit "A") Recommendation Waive further reading and adopt Resolution No.2019-73 ; Third Party Sponsorships of City Produced Events. Strategic Plan Obiective Approval of this Resolution would help address the following priorities as specified in the 2013-2033 Strategic Plan, Envision Palm Desert - Forward Together. - Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. - Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year round destination. Background Analvsis Sponsorships can be an important tool to enhance and improve events for Palm Desert residents and visitors, as they can offset the raising costs of producing events, helping to maximize taxpayers' money. Sponsorships also provide opportunities for community involvement by local businesses that desire to support City events. The City of Palm Desert currently engages in two sponsorships of City produced events, wherein a third party provides cash to the City in for return signage, publicity and other marketing benefits. Examples include: Independence Day Celebration (sponsored by City of Indian Wells) and Concerts in the Park (sponsored by Desert Recreation District). While the City welcomes opportunities to partner with external parties for the benefit of residents, guidelines are required to establish standards and processes. The attached policy is, based on models from other communities. It would establish a more formalized sponsorships process including, general sponsorship guidelines, eligibility and restrictions, and the approval process. Approval of this resolution will help September 12, 2019 - Staff Report Adopting a Policy on Third Party Sponsorships Of City Produced Events Page 2 of 2 ensure that the City can continue to partner with local businesses, cities, and individuals in a fair, transparent, and consistent process. Fiscal Analvsis Currently, event sponsorships generate $12,500 annually for City produced events. It is anticipated that, with a more defined and clearly articulated policy, sponsorships will continue to grow. LEGAL REVIEW DEPARTMENT DEPARTMENT FINANCIAL ASSISTANT CITY Approved as to REVIEW REVIEW REVIEW MANAGER Form �LD� ` N/A Vm Thomas Soule Martin Alvarez Janet M. Robert W. Tourism and Director of Moore Andy Firestine Hargreaves Marketing Economic Director of Assistant City City Attorney Manager Development Finance Manager City Manager, Lauri Aylaian: APPLICANT: None ATTACHMENTS: 1. Resolution 2019-73 2. Policy on Third Party Sponsorships of City Produced Events RESOLUTION NO. 2019-73 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A POLICY ON THIRD PARTY SPONSORSHIPS OF CITY PRODUCED EVENTS WHEREAS, the City Council of the City of Palm Desert seeks to establish general guidelines through which the City will enter into sponsorship agreements with entities and individuals for City produced events; and WHEREAS, the City Council of the City of Palm Desert recognizes sponsorships as an important tool to enhance and improve events for Palm Desert residents and visitors; and WHEREAS, the City Council of the City of Palm Desert identifies sponsorships as a means of offsetting the costs of producing events, helping to maximize taxpayers' money; and WHEREAS, the City Council of the City of Palm Desert understands that sponsorships can also provide opportunities for community involvement by local businesses that desire to support and be associated with City events; and WHEREAS, the decision to grant a sponsorship is optional and shall be considered on a case -by -case basis. WHEREAS, the City Council of the City of Palm Desert, California, is the final approval body for all sponsorship of City produced events; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: Section 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following guidelines for Sponsorship of City Produced Events. Section 2. Adoption of Policv on Third Partv Sponsorships of Citv Produced Events. The City Council hereby adopts the Policy for Third Party Sponsorships of City Produced Events attached hereto as Exhibit "A". Page 1 of 2 RESOLUTION NO. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council held on this 12th day of September 2019, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: SUSAN MARIE WEBER, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 2of7 RESOLUTION NO. 2019- Exhibit "A" POLICY ON CITY EVENTS SPONSORSHIP PURPOSE This policy establishes general guidelines through which the City will enter into sponsorship agreements with entities and individuals for City produced events. Sponsorships are an important tool to enhance and improve events for Palm Desert residents and visitors. Sponsorships can also provide opportunities for community involvement by local businesses that desire to support and be associated with City events. In addition, sponsorships offset the costs of producing events, helping to maximize taxpayers' money. Sponsorships for City produced events are maintained by the City as a non-public forum and regulated by the City. The City reserves the right to exercise full discretion over the placement, content, appearance, and wording of sponsorship affiliations and messages in accordance with the terms of this policy. II. SCOPE This policy applies to all sponsorship agreements the City enters into with individuals and entities for City produced events. This policy does not apply to naming rights or advertising space made available by the City for paid advertisements. Nor does this policy apply to City sponsorship support of external events where the City provides funds to an outside organization. The decision to grant a sponsorship is optional and shall be considered on a case -by -case basis. The City is under no obligation to approve a requested sponsorship. The City Council and City Manager reserve the right to deviate from the policy and criteria contained herein when they believe it is the City's best interest to do so. III. DEFIITIONS For the purpose of this policy, the following definitions apply: Advertising indicates the sale or lease of advertising or signage space on City owned property. Unlike sponsorship, it involves the use of public advertising contracted at pre -determined rates for a set period of time. Advertising does not imply any mutual partnership arrangement since the advertiser is not entitled to any additional benefits beyond access to the space. Naming rights are a type of sponsorship in which an external partner receives the exclusive right to name a City event. The naming right is sold or exchanged for cash or other valuable consideration. Page 3 of 7 RESOLUTION NO. 2019- Sponsorship is a mutually beneficial business arrangement wherein an external party, whether for profit or otherwise, provides cash and/or in -kind services to the City in return for commercial advantage. This payback may take the form of publicity, promotional consideration, merchandising opportunities, etc. Because of these marketing benefits, a sponsorship does not qualify for a tax receipt. IV. GENERAL • This policy supplements existing City policies and guidelines. However, in the event of conflict between this policy and other City policies, the existing policy will prevail. • City staff is free to solicit, accept and negotiate sponsorships, subject to this policy. • Sponsorship funding may only be accepted to supplement City Council -approved initiatives. Sponsorships must be for purposes consistent with a sponsored event and must be considered to be in the public interest. • The City shall retain ownership and control over any sponsored property. • Benefits to the sponsor are limited to those expressly stated in the sponsorship agreement. • City staff is not required to seek out competing bids when the sponsorship opportunity is initiated by a third party. The City will not endorse the products, services, or ideas of any sponsor. • All sponsorship relationships shall be confirmed by contract. • Since sponsorships are only intended to supplement direct City funding and to enhance City initiatives or properties, the City Produced Sponsorship funding must not be displaced by the sponsorship arrangement. • In order to expedite partnership development, a formal competitive process is not required when soliciting sponsorship opportunities. While there is no obligation to test the market, in order to maximize the contribution, it is expected that several prospective sponsors will be approached when circumstances warrant. • City staff is encouraged to bring forward recurring sponsorships through the budget process. However, for new sponsorships, the City Manager (or his/her designee) may, without prior City Council approval, approve and enter into agreements where: Page 4of7 RESOLUTION NO. 2019- o The total value of the sponsorship does not exceed $50,000 per year, which aligns with the financial signatory authority of the City Manager. o Cumulative sponsorships from a particular third party for the same purpose do not exceed $50,000 in a given fiscal year; o The sponsorship does not involve naming rights; and o The sponsorship complies with this policy. V. SPONSORSHIP CRITERIA The City shall consider, but is not limited to, the following criteria, if applicable, when evaluating a sponsorship proposal. In all cases the City shall have the ability to accept or deny the proposal. • The compatibility of the entity or individual's mission, products and promotional goals with the City's community vision, mission, values, ordinances, and policies; • The compatibility and appropriateness of the entity or individual's mission, products, and promotional goals with the City event to be sponsored; • The compatibility of the entity or individual's proposal with the standards, aesthetic values, and visual integrity of City events and expectations of attendees. • The entity or individual's past record of involvement in the community and City events. • The timeliness or readiness of the entity or individual to enter an agreement; • The actual value, in cash or in kind goods or services, of the proposal in relation to the benefit of the entity or individual and the City; • The City's operating and maintenance costs, including staff time or other additional responsibilities associated with the proposal; • The inclusion of conditions that would limit the City's ability to enter into agreements with other sponsors or to carry out its functions fully and impartially; • The potential for public perception of partiality, impropriety, or implied relationship between the City and the individual or entity other than for the limited purpose of the sponsorship. • All sponsorship agreements must be arranged for a fixed term. Page 5of7 RESOLUTION NO. 2019- VI. SPONSORSHIP ELIGIBILITY & RESTRICTIONS • City staff shall decline sponsorship proposals from parties that are disqualified from doing business with the City. • The City reserves the right to decline any sponsorship that appears to be in direct competition with services/products offered in or by the City of Palm Desert. • To protect the privacy of Palm Desert residents, sponsors are not to have access to personal information held by the City. • Sponsors are prohibited from implying that their products, services, or ideas are sanctioned by the City. • There shall be no actual or implied obligation to purchase the products or services of the sponsor. • Entities or individuals involved in the advocacy or endorsement of political or campaigns. • Additional guidelines may be provided by the responsible City department as needed for the specific sponsorship opportunity. VII. SPONSORSHIP LETTER OF INTENT A Sponsorship letters of intent can be submitted by individuals or entities responding to sponsorship opportunities posted on the City's website and/or selected methods deemed appropriate by the City. The City may also consider sponsorship proposals initiated and submitted by individuals or entities, but is not obligated to do so. Notwithstanding the foregoing, the City shall not accept applications for sponsorships within the period thirty (30) days prior to the subject event, unless otherwise specifically authorized by the City Manager or his/her designee. VIII. APPROVAL OF SONSORSHIPS Approval of sponsorships shall be made within the sole discretion of the City. All sponsorships must be in a written agreement, approved by the appropriate authority as set -out herein. The City Manager or designee has the authority to seek and negotiate all sponsorships with individuals and entities. The City reserves the right to approve or reject messages or advertisements utilized in association with the sponsorship and the content, wording, appearance, or copy thereof for any reason whatsoever and shall not be liable for subsequent damages. The City shall reject all proposed messages or advertisements that contain any one or more of the following: • Advocacy or endorsement of political candidates or campaigns; Page 6of7 RESOLUTION NO. 2019- • Depiction in any form of nudity or semi -nudity, profanity, obscenity, or lewdness or characterizations that suggest, depict, or promote any such element or sexually oriented products, activities, or materials; • Promotion for the use or sale of firearms, explosives or other weapons, or the depiction, 'suggestion or glorification of violence or acts of a violent nature; • Promotion or depiction of discrimination or the use of hate speech against any individual, group, company or organization; • Implication of endorsement by the City or City employees; • Content which is false, misleading, deceptive or which otherwise relates to an illegal activity; or • Language or descriptive material which, taken in form and context, is deemed to be contrary to community standards. • Sponsors are solely responsible for obtaining any necessary permission to use photographs, trademarks, trade names, copyrighted material or any other legally protected property. Approval of a sponsorship does not relieve the sponsoring entity or individual from complying with all other applicable City, state and federal laws and regulations IX. ADMINISTRATION AND ENFORECEMENT OF POLICY Review by the City Manager: • The City Council designates the City Manager to administer the Sponsorship Policy. This delegation is with the power of re -designation to appropriate staff. • The City Manager or her/his designee shall review all Sponsorship letters of intent and determine compliance with this policy. • If the City Manager or her/his designee determines that the proposed sponsorship does not comply, written notification of same shall be provided to the entity or individual with a copy of this policy. • On an as needed basis, the City Manager or her/his designee may refer any controversial proposed sponsorship to the City Council for approval or rejection with a majority vote. • The City Council may override any decision by the City Manager on sponsorship with a majority vote. Page 7of7