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Home My WebLink AboutSR - C23412 - Xtnsn - FY 07-08 Advrtising Svcs �''�� CITY OF PALM DESERT -,,,��, n, �fro-�_.:.1;.� /`� ;�f �; `' Community Services Division �`� ,. 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. ,� ;, / � ,� � �, � , 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 � ('��":CIN Ut�.TE . e�.°.��5: � � � l.LL y �,a�k.;5: �F3�EI�1`T'. �3STAZYv: �RSFIED BY• '1..�.�.5....'1 ..... r_-�� 7 .. ._.. n:a.-- ^� ---�_� _ r.rr: .,. 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. 4 APPROVED MINUTES PALM DESERT MARKETING COMMITTEE MAY 23, 2007 VI. OLD BUSINESS � 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 3