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� � CITY OF PALM DESERT
COMMUNITY SERVICES
STAFF REPORT
REQUEST: Award Contract No. c23413 to Full Gallop Marketing
Communications in the amount of $96,300 for Advertising Seniices.
DATE: June 26, 2008
CONTENT: Advertising Coordinator Services Contract
April Marketing Committee Meeting Minutes
Full Gallop Activity Report
Recommendation:
By Minute Motion: 1) Concur with the Marketing Committee's recommendation and
award Contract No. c234i3 to Full Gallop Marketing Communications in the
amount of $96,300 for Advertising Services for Fiscal Year 2008/09; 2) authorize the
Mayor to execute the agreement on behalf of the City.
Executive Summary:
As stated in Resolution No. 03-49 for the creation of this Committee, every five years, or
as otherwise recommended, the Marketing Committee will be responsible for
participating in the review process of all interested advertising agencies. That formal
process was conducted in 2005, and the Committee unanimously approved Full Gallop
Marketing — Piper Close.
Last year this Committee voiced some concerns about the costs associated with the
contract, as a significant increase in retainer was proposed. Staff negotiated with Ms.
Close and concluded that $8,025/month was a reasonable fee and it was agreed upon
by both parties.
Staff feels that the issue of the retainer fee has been resolved and the quantity and
quality of work produced by Ms. Close continues to be top notch. She constantly seeks
new and unique opportunities for partnerships and has strategic media buying skills that
increase Palm Desert's requests for information. Attached is a report provided by Full
Gallop Marketing, summarizing projects and activities conducted in the last year.
This year, the Marketing Committee unanimously voted for a one-year extension of the
contract with Full Gallop Marketing at the same retainer as last year. Staff is currently
working on an RFP to be prepared to go to bid for next year's services.
Full Gallop Marketing Contract -- Page 2
Background:
Last year, Ms. Close presented a new ad campaign that was unanimously approved by
the Committee. Subsequently, the campaign has been running in local and regional
publications, placed on bus shelters, airport pillars, and translated into a new Vacation
Guide for distribution by the Visitor Center.
The City of Palm Desert continues to realize significant savings by its contract with Full
Gallop Marketing. The agreement is based strictly on a monthly retainer, regardless of
the type of work being conducted. This contract does not include agency commissions
for media buys or services. Last year Palm Desert saved more than $90,000 in media
buys alone because it did not pay the standard 15% commission. This resulted in the
City being able to stretch its media buying power by that amount. The City also realized
an additional $28,000 in savings by not paying traditional mark ups of services such as
photography, production, and printing.
In addition to the activities conducted through the Marketing Department, Ms. Close
also has become an integral part of marketing other City departments' programs. Of
significance this last year has been the Set To Save Energy Program. Full Gallop
Marketing was responsible for establishing the program's identity, creating and placing
radio and television commercials, and developing brochures and collateral pieces to
support the Program.
Other departments looking to Full Gallop Marketing for assistance and expertise include
the Redevelopment Agency, Public Art, Public Works, and Special Projects (Recycling).
Ms. Close's creation of Recycle Binney and the continuation of the creative
commercials, brochures, and Binney related items have brought the City's recycling
program to a higher level and is the most recognized in the area.
The unique relationship established between Full Gallop Marketing and the City of Palm
Desert results in a significant cost savings to the City each year, yields a high quality
product, and expands our well-established brand. Staff recommends a one-year
renewal of Full Gallop Marketing's contract at the same $8,025/month retainer as was
approved last year.
�� �� �
Submitted By: � �
� � .
Kristy Kne' ing Sheila R. G Iligan
Marketing Manager Assistant City Manage
Approval:
��� L
Carlos L. O ga Paul Gibson
City Manag r Director of Finance
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 26, 2008
XIV. NEW BUSINESS
G. REQUEST FOR EXTENSION OF CONTRACT WITH FULL GALLOP
MARKETING COMMUNICATIONS IN THE AMOUNT OF $96,300 FOR
ADVERTISING SERVICES - FISCAL YEAR 2008-2009 (CONTRACT
NO. C23413).
Rec: By Minute Motion: 1) Concur with the Marketing Committee's
recommendation and extend the subject contract with Full Gallop
Marketing Communications in the amount of $96,300 for
FY 2008-2009; 2) authorize the Mayor to execute the agreement on
behalf of the City — funds are available in Account
No. 110-4417-414-3215.
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f'ALM DESERT
PALM DESERT MARKETING COMMITTEE
APPROVED MINUTES
Tuesday, April 22, 2008 — 2:00 p.m.
Administrative Conference Room
I. CALL TO ORDER
Sara O'Flynn called the meeting to order at 2:09 p.m.
II. ROLL CALL
Members Present: Members Absent:
Melissa Allensworth Theresa Maggio
Emily Bird-Hrivnak, Vice Chair
Sara O'Flynn, Chair
Lee Morcus
Michael Shimer
Brent Wise
Staff/Others Present:
Robert Spiegel, Mayor Pro Tem
Sheila Gilligan, ACM, Community Services
Kristy Kneiding, Marketing Manager
Donna Gomez, Visitor Center Manager
David Hermann, Management Analyst
Piper Close, Full Gallop Marketing
Michael Osgood, Desert Willow
Lori Wimbish, Recording Secretary
III. ORAL COMMUNICATIONS
None
IV. CONSENT CALENDAR
A. MINUTES OF THE MEETING OF MARCH 18, 2008.
Melissa Allensworth moved, by Minute Motion, to approve the minutes of the March 18,
2008, meeting. Motion was seconded by Emily Bird-Hrivnak and carried 5-0. Michael Shimer
abstained as he was not in attendance at the March 18, 2008, meeting.
V. NEW BUSINESS
None
APPROVED MINUTES
PALM DESERT MARKETING COMMITTEE APRIL 22, 2008
VI. CONTINUED BUSINESS
A. FULL GALLOP MARKETING ADVERTISING CONTRACT
Piper Close excused herself from the meeting.
Kristy Kneiding gave a synopsis of the staff report. She said all services in Full
Gallop Marketing's contract were inclusive. The cost savings to the City by not
paying media commissions was significant. Attached to the staff report was a list
of projects that Ms. Close was involved with in fiscal year 2007/2008.
Ms. Bird-Hrivnak stated that Ms. Close does an outstanding job and to change
direction at this point would be challenging. She was supportive of approving
staff's recommendation to renew Full Gallop Marketing's contract for one year.
Ms. O'Flynn was comfortable moving fon�vard with Full Gallop Marketing.
Upon question by Ms. O'Flynn, Ms. Bird-Hrivnak responded that her comments
were an official motion to approve the renewal of Full Gallop Marketing's
contract.
Ms. Allensworth added that the inclusion of inedia and creative services in Full
Gallop's contract was significant. Traditionally, media and creative services
would bid independently, and not be included in an agency's contract.
Ms. Bird-Hrivnak moved, by Minute Motion, to approve staff's recommendation of a one-
year renewal of Full Gallop Marketing's contract at $8,025/month retainer as was approved last
year. Motion was seconded by Ms. O'Flynn and carried 6-0.
A discussion ensued regarding future marketing ideas.
VII. OLD BUSINESS
None
VIII. REPORTS FROM CITY COUNCIL LtAISONS
A. City Council
Mayor Pro Tem Spiegel gave a report on CVA activities.
IX. REPORTS AND REMARKS
A. Chair
Ms. O'Flynn inquired of Ms. Kneiding as to whether she could obtain budget
information from Paim Springs Life with regard to Fashion Week. Ms. Kneiding
asked Ms. O'Flynn to outline the information she would like from Palm Springs
Life and she would pass that request on to the appropriate party.
2
APPROVED MINUTES
PALM DESERT MARKETING COMMITTEE APRIL 22, 2008
B. Committee Members
Ms. Bird-Hrivnak reported that the Desert Springs Marriott Spa made the Conde'
Nast Hot List. They were the only Marriott property, outside of Hawaii, that made
the list.
Nancy J. Friedman PR Agency organized a FAM trip to explore Palm Desert and
focus on outdoor activities. The four writers wrote for a variety of fitness and
travel publications.
Ms. Allensworth reported that subscription sales for the McCallum's 2008/2009
season, was its biggest opening week ever in the 20-year history of the Theatre.
The McCallum was ranked No. 20 in ticket sales throughout the world in the
category of perForming art centers.
Brent Wise reported that the Red Hat ladies would be lunching at Westfield
Shoppingtown on Friday, April 25.
Lee Morcus provided his view on the state of the economy.
Mr. Morcus announced that the Chop House will host the Art of Food & Wine
host committee meeting on Thursday, Aprii 24, 2008, at 4:30 p.m.
C. Staff
Ms. Kneiding reported that she and Ms. Bird-Hrivnak attended a media tour with
the Nancy J. Friedman Agency in Los Angeles. She gave an overview of the trip.
Ms. Kneiding informed the Committee about an E-Marketing Conference she
attended in San Francisco. Coco-Cola's Global Interactive Marketing Director
was one of the keynote speakers. She described how Coco-Cola was looking
beyond website advertising and looking forward at mobile-to-mobile marketing.
Michael Osgood announced that Desert Willow has an opening for the position of
"Director of Catering Sales." The candidate must be personable and able to sell
weddings and special events. If any Committee member knows of anyone
looking for that kind of a position, please refer them to Desert Willow.
He announced that the City of Palm Desert won back the Cal State Charity Golf
Tournament cup.
X. INFORMATIONAL ITEMS
1. Tourism Lead Report: 3�d Quarter, 2007-2008
2. Visitor Information Center Activity Report— March 2008
Donna Gomez reported that the number of visitors to the center was up
over last year; however, sales were slightly lower, consistent with the
current economy. The main purpose and goal of the Visitor Center was
to serve visitors and promote local businesses.
3
APPROVED MINUTES
PALM DESERT MARKETING COMMITTEE APRIL 22, 2008
Products related to the Art of Food & Wine Festival were going to be
available at the Visitor Center to help promote the event.
David Hermann added that the Visitor Center will promote a featured item
each month in the City's BrightSide newsletter.
XI. ADJOURNMENT
With Committee concurrence, the meeting was adjourned at 4 p.m.
Lori Wimbish, Recording Secretary
4
CONTRACT NO. C23413
ADVERTISING COORDINATOR SERVICES
AGREEMENT
1. Parties: This Agency Service Agreement("Agreement") is entered into this 30th day
of June, 2008, 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, 2008, and
June 30, 2009, 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. C23413
ii) Prepare cost estimates and furnish the same to the CITY, or its
designee, for their approval, and enter into contracts for space or time
in media for approved advertisement;
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 information promoting Palm Desert facilities and services
(including but not limited to collateral materials, brochures, website, and
2
ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO. C23413
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, 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.
3
ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO. C23413
3) Term: The term of this contract shall commence on June 30, 2008, and end on
June 30, 2009.
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, 2008, to June 30, 2009. 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:
a) The CITY will pay FULL GALLOP a flat fee of eight thousand twenty-five
dollars ($8,025) per month to cover advertising services and other projects,
including but not limited to collateral materials, brochures, online marketing,
and special projects. Such services include but are not limited to meetings,
4
ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO. C23413
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 80 hours per month of services; the
actual number of hours provided in a given month may be more or less than
80.
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 at the beginning of the month. Each
invoice shall contain, in reasonable detail, the projects and services worked
on and rendered with supporting documentation or reimbursable costs and
expenses for the previous month's activities. 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
ADVERTISING COORDINATOR SERVICES
AGREEMENT CONTRACT NO. C23413
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. C23413
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 CITY OF PALM DESERT
COMMUNICATIONS A Municipal Corporation
By: By:
Printed Name: Date:
(SIGNATURE MUST BE NOTARIZED) ATTEST:
By:
City Clerk
7
Full Gallop Marketing
City of Palm Desert 2007-08 Project Summary
New Campaign
Conceptualized a new ad campaign: "Plan To be Spontaneous" to
represent Palm Desert in all media advertising.
Wrote headline and sub headline, researched images, and provided
creative direction to the designer for completion of print and outdoor ads.
Managed the sizing and placement of the ads.
Television Advertising
Developed a script for a :30 television commercial to reflect the new
campaign — "Plan To Be Spontaneous".
Provided creative direction to the production company to complete the
spot.
Media Plan
Developed a media placement strategy and plan for the fiscal year.
Distributed all ads to the media, including the "Your Trip Starts Here"
campaign for the Visitor Center.
Researched and bought media in new markets for print ads and television
commercials including Chicago, Portland, and Seattle. Extensively
researched ad placement in Vancouver, Canada and will consider it for the
next fiscal year.
Collateral
Annual Calendar — Our Community, Our Environment, Our Responsibility
Developed the theme for the calendar to play out as a resource for energy
conservation and other environmental issues spotlighting 12 areas that
illustrate how the City sets an example.
Coordinated photo shoots to compliment the theme and to add to the
City's photo library. Wrote captions and tips to accompany the photos and
provided creative direction to the graphic artist.
Vacation Guide and Envelope
Coordinated the production and printing of the Vacation Guide.
Worked with a writer and designer to develop the piece which reflects the
new "Plan to Be Spontaneous" campaign.
Maps
Working on the completion of the updates for the three maps distributed
at the Visitor Center including hiking, biking, and shopping.
Events
Music & Movie Madness
Worked on the re-branding of the Summer of Fun concert and movie
series: Created a new look for the ads. Bought media for print and radio,
produced the giveaway fans promoting the event schedule.
Created and placed advertising for the following events:
Fourth of July
Veterans' Day/sculpture dedication
Art & Essay Contest (April)
Athena Awards
Visitor Center
Created ads and developed a holiday advertising schedule for print and radio.
Advertised the Wreath Lighting event.
Developed a Palm Desert postcard to sell at the Center.
Oversaw the creation and placement of miscellaneous ads:
Pacific Life Open
Man About Town
Riverside SherifF's program
Shelter From the Storm
Fashion Week
Bob Hope Chrysler Classic
Polo Balloon Festival
Chamber of Commerce publications
The fol%wing activities were conducted outside the Marketing Budget.
Art In Public Places
Developed a Media Plan
Created a brochure for the Public Art Forum
Created and produced Docent Tour rack card
Set To Save Energy Program
Created newspaper ads, and television and radio commercials.
Provided creative direction on the Set To Save brochure. Coordinated printing
and mailing of the piece.
Oversaw production of two new Recycle Binney commercials relating to energy:
HVAC and Refrigerator recycling.
Developed a media plan and placed the media.
Created a logo for the Solar Saves program.
Bright Idea Expo
Created the event name and logo design. Provided creative direction for
newspaper advertisements, tab on, radio ads, and the English and Spanish flier.
Also placed the media for the event.
Recycling
Coordinated design and production of a Neighborhood Clean-up insert for the
BrightSide newsletter in English and Spanish.
Created an Annual Recycling brochure in English and Spanish.
Coordinated production of a Recycle Binney magnet and brochure. (Currently in
production)
Redevelopment
Coordinated revisions for the Shopper Hopper brochure route map.
Desert Willow Golf Resort
Oversaw the production of updating collateral materials: scorecards, rate cards,
survey cards, brochures, menus, and online components.
Organized and completed two photo shoots and updated ads to include new
images.
Developed and implemented the media plan.