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HomeMy WebLinkAboutC23411 Advertising ServicesCITY OF PALM DESERT COMMUNITY SERVICES STAFF REPORT REQUEST: Award Contract No. to Full Gallop Marketing Communications in the amount of $90,000 for Advertising Services. DATE: June 22, 2006 CONTENT: Contract Recommendation: By Minute Motion, concur with the Marketing Committee's recommendation and award Contract No. to Full Gallop Marketing Communications in the amount of $90,000 for Advertising Services for fiscal year 2006/07 and authorize the Mayor to execute the agreement on behalf of the City. Executive Summary: Last year the Marketing Committee reviewed RFQs and went through an interview process with four agencies. Full Gallop Marketing was selected as the agency of record. The RFQ process is only required once every five years, as stated in Resolution number 03-49. Therefore, this year, the Marketing Committee unanimously agreed to recommend contract approval with Full Gallop Marketing, without the need for another RFQ process. The financial arrangement with Full Gallop Marketing has been mutually beneficial. While most agencies (including our former agencies) charge a monthly retainer, mark up invoices from vendors, and collect commissions on media buys, Full Gallop Marketing only charges a monthly retainer based on the scope of the approved contract. This has resulted in a significant amount of savings to the City. For example, with a proposed media budget of $445,000, there is a savings of $66,850 passed back to the City, stretching our advertising dollars to great lengths. Because of Marketing's increased media budget in fiscal year 2006/07 and the increase in time to administer such a budget, staff is proposing an increase in retainer of $350 per month, just under a five -percent increase. Staff Report Full Gallop Marketing Page 2 Discussion: Piper Close of Full Gallop Marketing continues to be instrumental in establishing and building the City's image through advertising, promotion, and the creation of collateral materials. Ms. Close provides the City of Palm Desert with a creative expertise that is unmatched in the Valley. Her understanding of all the City has to offer and implementation of marketing strategies has gained Palm Desert regional and national exposure that continues to build Palm Desert's reputation as an upscale, active resort destination like no other. Staff concurs with the Marketing Committee's recommendation and requests that the contract be awarded to Full Gallop Marketing Communications. Submitted By: Kristy Knkiding Sheila R. Gilli an Marketing Manager Assistant City Ma Approval: Carlos L. Ortpfa Paul Gibson City Manager Director of Finance CITY COUNCIL �TI©N: APPROVED DENIED RECEIVED OTHER M$gTI DATE -0 • �2 AYMS : C o-le S D l) l�srn-t NOES: NUne. ABSENT: ABSTAIN: - ---- VERIFIED BY:�— Original on File witPf City Clerk's Ck fjcf-: CONTRACT NO. ADVERTISING COORDINATOR SERVICES AGREEMENT 1. Parties: This Agency Service Agreement ("Agreement") is entered into this 301h day of June, 2006, by and between the CITY OF PALM DESERT, a municipal corporation, hereinafter referred to as "CITY", and FULL GALLOP MARKETING COMMUNICATIONS, hereinafter referred to as "FULL GALLOP." 2. Scope of Services: Subject to the terms and conditions of this Agreement, FULL GALLOP shall furnish and provide the following services and materials, including but not limited to those services outlined in the proposal presented to and accepted by the Palm Desert Marketing Committee: a) Prepare or cause to be prepared art work and advertisements for approval by the CITY or its designee. In connection therewith, FULL GALLOP shall: i) Work within the approved marketing plan and schedule as set forth by the Marketing Committee for the period between June 30, 2006, and June 30, 2007, for approval by the CITY or its designee, which plan and schedule shall include recommendations as to the media, art and copy appeals, budgets and coordination of such advertising with other marketing and advertising activities within the City of Palm Desert; \1 \:. u.l,II't-'uw, nu.:: Iill„dl,•p VI, "Iill „JI,•I,u „•W, 0:uw, u-"p.l ADVERTISING COORDINATOR SERVICES AGREEMENT CONTRACT NO. ii) Prepare cost estimates and furnish the same to the CITY, or its designee, for their approval, enter into contracts for space or time in media for approved advertisement, and forward copy and instruction for placement; iii) Create, design, and supervise the production of advertising to be published in newspapers, periodicals, magazines, tradejournals, and other media; iv) Check insertion of approved advertising and otherwise verify proper delivery and distribution thereof; v) Maintain a permanent file of all art work and advertising materials, which shall be the property of the CITY and shall be made available to the CITY for use by it without additional cost or charge; and vi) Evaluate and recommend payment for all expenses incurred for art work and advertisements and for the placement and publishing thereof in newspapers, periodicals, magazines, trade journals, and other media subject to reimbursement in accordance with the provisions of Section 4 11 \:.ml, II't- '0- hm, :: I ill„JI.•p \•I, \np" I ill „JI.•pu, .vn n0 :uw, u- "p.l 2 ADVERTISING COORDINATOR SERVICES AGREEMENT CONTRACT NO. b) Prepare, publish, and distribute or cause to be prepared, published, and distributed such publications containing matter publicizing Palm Desert facilities and services (including but not limited to collateral materials, brochures, website design, and special projects) as may be requested by the CITY or its designee. In connection therewith, FULL GALLOP shall: i) Furnish or cause to be furnished all required research, writing, editing, type specification, typesetting, photography, layout, illustration, assembly, and all other details connected with any such requested projects; ii) Perform such other services as may be necessary to print, publish, and distribute any such projects; and iii) Evaluate and recommend payment for all expenses incurred for the preparation and distribution of any such projects in accordance with Section 4. C. Assist in the promotion of such public relations events as the CITY or its designee may request. In connection therewith, FULL GALLOP shall: i) Prepare or cause to be prepared such exhibit and display materials as may be requested and approved in writing by the CITY or its designee; and 11 I't-'u- 'ITI, :I ill„JI.•p VI, \n p.. I illvn n0 :uw, u-"p.l _) ADVERTISING COORDINATOR SERVICES AGREEMENT CONTRACT NO. ii) Evaluate and recommend payment of all expenses incurred in the preparation of exhibits and display materials in accordance with Section 4 3) Term: The term of this contract shall commence on June 30, 2006, and end on June 30, 2007. 4) Compensation: The amount budgeted for advertising and publicizing the City of Palm Desert's facilities, services, events, and for the production of collateral materials is established as part of the City's fiscal year budget for the period of July 1, 2006, to June 30, 2007. The CITY's liability for advertising materials and services under this contract shall not exceed the amount budgeted. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising services. Prior to performing any services or furnishing any material contemplated by this contract to be undertaken and furnished by FULL GALLOP, the CITY or its designee, after conferring with FULL GALLOP, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for these services, the manner of payment, the description of the estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this Section, the CITY shall compensate and reimburse FULL GALLOP as follows: \1 \:.ml, II't-'0- hm, ,, I ill„JI.•p \•I, \np.. I ill „JI.•pu, .vn n0 :uw, u- "p.l 4 ADVERTISING COORDINATOR SERVICES AGREEMENT CONTRACT NO. a) The CITY will pay FULL GALLOP a flat fee of seven thousand five hundred dollars ($7,500) per month to cover advertising services and other projects, including but not limited to collateral materials, brochures, website design, and special projects (in accordance with the proposal presented by FULL GALLOP to the Marketing Committee and/or any marketing mutually agreed to by the parities hereto). Such services include but are not limited to meetings, account planning and service, production management, media planning and buying, secretarial and clerical. The parties estimate that FULL GALLOP will provide an average of approximately 160 hours per month of services; the actual number of hours provided in a given month may be more or less than 160. b) Any work outside the scope contained in this agreement will be billed at one hundred twenty five dollars ($125) per hour or on an agreed upon project fee by the departments requesting the service. c) FULL GALLOP will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FULL GALLOP will not markup billings or receive commissions. d) FULL GALLOP shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation or reimbursable \1 \:.ml, It.iu '0- 'm.:: Iill, JL•p VI, \n p.. I ill „JI.•pu, -W, n0 :uw, u-"p.l 5 ADVERTISING COORDINATOR SERVICES AGREEMENT CONTRACT NO. costs and expenses. Payment and reimbursement will be made in due course of payment by the CITY. e) FULL GALLOP shall keep full and accurate books of accounts and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Agreement. 5) Termination: Either party may terminate this Agreement at any time by giving the other party thirty (30) days written notice of its intent to terminate, provided, however, the CITY's obligation to compensate and reimburse FULL GALLOP for services rendered or materials furnished or contracted for as of the date of notification by either party of the election to terminate, shall continue in accordance with the terms herein. 6) Marketina Committee: The CITY reserves the right to designate the Marketing Committee of the CITY or any other committee or individual as its representative for any part of the review and approval retained by the CITY under any provisions of this Agreement and will advise FULL GALLOP of such designation, and such designation shall continue until modified by the CITY. 7) Owner of Work: All art work, advertisement of any form, exhibit and display materials or other printed material, logos, designs, drawings, and models prepared or performed under this Agreement shall be the property of the CITY. FULL GALLOP specifically transfers any "right of reproduction" as defined by California 11 \v.i•I, II't-'0- hm, ,, I ill„JI.•p \•I, \np.. I ill „JI.•pu, .vn n0 :uw, u- "p.l 6 ADVERTISING COORDINATOR SERVICES AGREEMENT CONTRACT NO. Civil Code S982 and S988 to the CITY and its assigns. FULL GALLOP also agrees to maintain adequate books and records of all works in progress throughout the duration of this Agreement. Said books and records shall be and remain the property of the CITY upon the expiration or earlier termination of this Agreement. Within five (5) days of any expiration or earlier termination of this Agreement, FULL GALLOP agrees that it shall provide the CITY with the aforementioned books and records. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective authorized officers or representatives as of the date and year first above written. FULL GALLOP MARKETING COMMUNICATIONS in Printed Name: (SIGNATURE MUST BE NOTARIZED) 11\:.ml,II'T.'0w,hm,::lnll,,,II.•pVI, \np"1'11„JI.•pn, ,•un n0 :uw, u-"p.1 7 CITY OF PALM DESERT A Municipal Corporation By: Date: ATTEST: By: City Clerk