HomeMy WebLinkAboutC23412 Extension FY 2007-08 Advrtising Svcs �''�� CITY OF PALM DESERT
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Staff Report
REQUEST: CONSIDERATION OF EXTENSION OF CONTRACT WITH FULL
GALLOP MARKETING COMMUNICATIONS (CONTRACT NO.
C23412) FOR ADVERTISING SERVICES IN THE AMOUNT OF
$96,300 FOR FISCAL YEAR 2007/08 AND AUTHORIZATION TO
SEEK BIDS IN JANUARY 2008 FOR ADVERTISING SERVICES
FOR FISCAL YEAR 2008/09
SUBMITTED BY: Sheila R. Giliigan, ACM/Community Services
DATE: June 28, 2007
CONTENTS 1. Advertising Coordinator Services Contract
2. Minutes of Marketing Committee Meeting of Apri{ 17, 2007
3. Minutes of Marketing Committee Meeting of May 23, 2007
Recommendation:
By Minute Motion, concur with the recommendation of the Marketing Committee and:
1) Approve a one-year extension of Contract No. C23412 with Full Gallop Marketing
Communications for advertising services for Fiscal Year 2007/08 in the amount of$96,300
and authorize the Mayor to execute the contract on behalf of the City; 2) direct staff to
begin the bid process in January 2008 for advertising services for Fiscal Year 2008/09.
Executive Summarv:
If approved, the existing contract with Full Galtop Marketing Communications for
advertising services would be extended for a one-year period of time, with the condition
that the City seek proposals for advertising services for Fiscal Year 2008/09.
Discussion:
Full Gallop Marketing Communications ("Full Gaflop") has provided contract advertising
services to the City since the year 2000 when the first contract was awarded under the
Marketing Department. The agency was subsequently awarded a bid in 2005 when the
bidding process was last completed. The current contract provides for one-year extensions
pending Marketing Committee recommendation and City Council approvat. The resolution
establishing the Marketing Committee mandates that bids will be sought no less than every
five years or as otherwise recommended.
CITY COUNCIL STAFF REPORT JUNE 28, 2007
RE: CONSIDERATION OF EXTENSION OF CONTRACT WITH FULL GALLOP
MARKETING COMMUNICATIONS (CONTRACT NO. C223412) FOR
ADVERTISING SERVICES IN THE AMOUNT OF $96,300 FOR FISCAL YEAR
2007/08 AND AUTHORIZATION TO SEEK BIDS IN JANUARY 2008 FOR
ADVERTISING SERVICES FOR FISCAL YEAR 2008/09
As part of the marketing/public relations budget, the Marketing Committee reviewed a
request from Full Gallop for a 13% increase in retainer. The justification from Full Gallop
was that the City had increased its media buys and related services, mainly due to
advancement of its branding program. While the Committee acknowledged the success
of Full Gallop, it felt such an increase necessitated a call for bids to ensure that the City
was within industry standards for services. Such bids may well prove that the City is
actually below market standards; however,the Committee did not believe it could make an
educated decision on such an increase until the review process is completed.
Because the bidding process takes several months,the Committee recommended that the
City Council approve a one-year extension of the Full Gallop contract, including a 7°10
increase in the retainer,with a specific condition that the City go out to bid in January 2008
to determine what the industry standard is and whether the City is in line with this standard.
As further discussion, it should be noted that the Marketing Committee is very supportive
of the programs that have been completed by Full Gallop. Ms. Piper Close, the owner of
Full Gallop, has offered unique approaches to marketing and has provided creative
direction and vision to allow the City to develop a brand and message that is recognizable
and has the ability to be expanded. In its recommendation, the Committee strongly urged
Full Gallop to be a participant in the bidding process next year.
In conclusion, staff concurs with the recommendation of the Marketing Committee to
extend the existing contract with Full Gallop for a one-year period and to seek bids for
these services for Fiscal Year 2008/09. It is important that the City stay above current
m`�r�ceting stand ds in,prder to maintain its edge in promoting Palm Desert.
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, SHE LA R. ILLI AN
ACM/Community Service
Approval:
CARLOS L. ��CIL TION: PAUL S. GIBSON
City Manage�PROVED � DENIEDFinance Director/City Treasurer
EtECEIVED OTHER
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APPROVED MINUTES
PALM DESERT MARKETING COMMITTEE APRIL 17, 2007
Ms. Close believed that the campaign was simple enough that it was going to
be able to be reduced to small page ads and it will still work nicely in full-page
ads.
Ms. Bird-Hrivnak moved, by Minute Motion, to approve the proposed "Plan to be
Spontaneous" campaign for 2007/08. Motion was seconded by Rick Darius and carried 4-0.
E. FULL GALLOP MARKETING ADVERTISING CONTRACT
Upon question by Ms. Bowen, Ms. Close responded that she does not keep track
of the amount of hours that she works for the City.
� Upon inquiry by Ms. Gilligan, Ms. Close stated that the work she performed for
Ruth Ann Moore was separate from her retainer regarding the Marketing budget.
I
I� Upon inquiry from Councilmember Spiegel, Ms. Gilligan responded that the City
used to go out to bid every three years for the Marketing budget. When the
� Marketing Committee was reformed it was changed to no longer than five years.
�
� Upon question by Ms. Gilligan, Ms. Kneiding responded that in fiscal year
j 2007/OS it would be three years since the City went to bid. The bid for Marketing
will go out again no later than 2010.
Ms. Close gave the Committee an overview of her contract with the City.
Upon question by Ms. Bowen, Ms. Kneiding responded that budget for fiscal year
2007/08 was complete. She added that the payment history noted in the staff
report was not the total marketing budget. She believed the marketing budget
was at $1.1 almost $1.2 million. The numbers provided were the ones with which
Ms. Close based her proposal.
Upon question by Councilmember Spiegel, Ms. Close responded that she was on
a monthly retainer at Desert Willow with Kemper Sports. The retainer increased
last year for the first time.
Ms. Bowen suggested that the City go out to bid again. She added that they
might find that Ms. Close was underestimating the cost of her services. She also
felt that it was time to see what other agencies were charging for their services.
Norine Bowen moved, by Minute Motion, to recommend that the City go out to bid for the
2007/08 Advertising Contract. Motion was seconded by Mr. Shimer and carried 4-0.
A discussion ensued following the adoption of the motion regarding an inquiry by
Councilmember Spiegel as to the timing for a bid process. As a result of that
inquiry, staff was asked to come back to the Committee with a report and
recommendation at the May 15, 2007, meeting.
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APPROVED MINUTES
PALM DESERT MARKETING COMMITTEE MAY 23, 2007
VI. OLD BUSINESS
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A. FULL GALLOP MARKETING ADVERTISING CONTRACT
Ms. Gilligan discussed the City's marketing background and subsequent contract
for Full Gallop Marketing. Marketing's budget has increased 122% over the
years, including media buys, and the proposed budget for fiscal year 2007/08
' was $1.172 million. She distributed the 2007/08 proposed budget to the
; Committee and gave an overview of that document. She also distributed copies
of Full Gallop Marketing's Advertising contract and made reference to the scope
! of responsibilities listed in that contract.
l
j A discussion ensued regarding Full Gallop's Advertising contract and any
additional projects assigned to Ms. Close outside of that contract. To date, the
fees paid to Ms. Close for those independent projects was $50,000. Ms.
Kneiding responded to a question by Mr. Morcus regarding any outstanding
monies owed to Mr. Close from independent projects was around $10,000.
Upon question by Mr. Morcus, Ms. Gilligan stated that she had never met anyone
as organized as Ms. Close. When the City requests a project from her she
• comes back with the timeline, the cost, and a deadline, which she has always
adhered to.
Michael Shimer moved, by Minute Motion, to approve the Full Gallop Marketing Contract
with a 7% increase, and direct staff to return to the Marketing Committee with a
recommendation for an RFP that includes a draft contract outlining specific responsibilities.
Motion was seconded by Emily Bird-Hrivnak and carried 5-0.
VII. REPORTS FROM CITY COUNCIL LIAISONS
Councilmember Spiegel announced that the Coachella Valley Park and
Recreation District was awarded the First Tee Program. First Tee was a
program ran by the PGA for children who would not have the opportunity to play
golf. Children will be bused from Coachella, Indio, Palm Springs, and Palm
Desert to the Palm Desert Golf course for classes on ever aspect of the game.
It was a really good thing.
Councilmember Spiegel announced that Norine Bowen would be recognized by
the City Council at its June 14, 2007 meeting at 4 p.m. Marketing Committee
members were invited to attend.
VIII. REPORTS AND REMARKS
A. Chair
None
B. Committee Members
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CONTRACT NO. C23412
ADVERTISING COORDINATOR SERVICES
AGREEMENT
1. Parties: This Agency Service Agreement("AgreemenY') is entered into this 30th 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. Sco�e 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;
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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,trade journals, 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.
b) Prepare, publish, and distribute or cause to be prepared, published, and
distributed such publications containing matter publicizing Palm Desert
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ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO.
facilities and services (including but not limited to collateral materials,
brochures,website design, and specia!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
ii) Evaluate and recommend payment of all expenses incurred in
the preparation of exhibits and display materials in accordance
with Section 4.
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ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO.
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. Priorto performing any services orfurnishing 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:
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
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ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO.
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 monthlyforthe previous month's activities.
Each invoice shall contain, in reasonable detail, the projects and services
worked on and rendered with supporting documentation or reimbursable
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.
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ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO.
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) Marketing 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
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
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ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO.
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 yearfirst above
written.
FULL GALLOP MARKETING CITY OF PALM DESERT
COMMUNICATIONS A Municipal Corporation
By: BY�
Printed Name: Date:
(SIGNATURE MUST BE NOTARIZED) ATTEST:
By:
City Clerk
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