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HomeMy WebLinkAboutC29211 Amendment El Paseo BID Advertising Svcs CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE CONTRACT AMENDMENT NO. C29211 FOR FURINO GREENE CREATIVE INC. OF PALM DESERT, CALIFORNIA, IN THE AMOUNT OF $200,000 FOR ADVERTISING SERVICES AND EXPENDITURES FOR THE EL PASEO BUSINESS IMPROVEMENT DISTRICT FROM: Ruth Ann Moore, Economic Development Manager CONTRACTOR: Furino Greene Creative Inc. 74333 Highway 111, Suite 106 Palm Desert, CA 92260 DATE: June 24, 2010 CONTENTS: Contract Amendment C29211 Original Contract C29210 Recommendation By Minute Motion: 1. Approve Contract Amendment No. C29211 in the amount of$200,000($42,000 in Agency services and $158,000 in advertising and promotional expenditures);and 2. Authorize Mayor to execute said Contract Amendment. Funds have been included in the proposed Financial Plan for 2010/2011 Other Advertising, Account No. 271-4491-464-3215. Executive Summary At the June 17, 2010, meeting of the EI Paseo Business Improvement District (EPBID), the Board of Directors voted to approve recommending to the City Council a one-year extension pursuant to the provisions of the Furino Greene Creative, Inc. (FGCI)contract that represents the district as its advertising agency. The total advertising budget to be administered by FGCI is $200,000 for the period of July 1, 2010 through June 30, 2011. FGCI's retainer fee of$3,500 per month will be paid from the$200,000 budget with the remainder going for advertising and promotional expenses. The retainer fee has remained the same for the past three years. FGCI has incorporated several production and event costs into their retainer fee in order to save on the budget. Funds are collected from the businesses through a special assessment fee and do not impact the General Fund. G:uda\Ruth Ann Moorelword data\STAFF REPORTS\creative i group contrac[ammendment 10-11.doc Staff Report Approval of Contract Amendment No. C29211 (Furino Greene Creative, Inc.) June 24, 2010 Page 2 Back�round The EPBID was required last year to go out to bid for advertising services for the district, and City Council awarded the contract to Furino Greene. FGCI is responsible for overseeing the marketing and public relations plan for the EPBID, web page oversight, internal merchant communications, and event duties. At the regular EPBID board of directors meeting on June 17, 2010, the board voted to recommend a one-year extension to the City Council for the contract with FGCI. Therefore, staff recommends that City Council authorize the Mayor to execute the contract amendment with FGCI. Fiscal Analvsis Fees for this contract are collected through a special assessment to the businesses. This contract does not impact the General Fund. Su e By: Department Head �' . i R th n Moore, conomic Development Mgr. J in cCarthy, ACM for evelopment ��,��� Paul S. Gibson, Finance Director CITY COUNCILA�ION Appro : APPROVED DENiED RECEIVED OTHER MEET G DA ' ' John Wohlmuth, City Manager pYES; ' �7 '� '� NOES: °�� � ABSENT: ' '" ABSTAINs VERIFIED BY: Original on Fite with City� erk's Office G:Uda\Ruth Ann Moore\word data\STAFF REPORTS\creative i group contract ammendment 10-1 t.doc CONTRACT NO. C29211 AMENDMENT This Agreement is entered into this 1 St day of July 2010, by and befinreen the City of Palm Desert, California ("City") and Furino/Greene Creative, Inc. (Formerly known as "Creative i Group, Inc."), for services and materials related to the advertising and promotions of the EI Paseo Business Improvement District (EPBID"). RECITALS 1. The City and Furino/Greene Creative, Inc. entered into an Agreement on September 1, 2009, for services and materials related to the advertising and promotions of the EPBID; 2. Per that agreement, the City Council has the right to extend the agreement for one year up to a three year period; and 3. The EPBID Board of Directors has recommended the services to the City Council. THEREFORE, for good and valuable consideration, including,without limitation,the mutual pramises, conditions, and agreements set forth herein, the City and Furino/Greene Creative, Inc., agrees as follows: A. TERM The term of this Contract Amendment shall commence on July 1, 2010, and end on June 30, 2011. B. COMPENSATION The City's budget for advertising and publicizing the EPBID's facilities, services and events is estimated yearly at the sum of Two Hundred Thousand Dollars ($200,000). The City's liability for advertising materials and services under this Contract Amendment shall not exceed the amount budgeted therefore. The City reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by the Contract Amendment to be undertaken and furnished by Furino/Greene Creative, Inc., the City or its designee, after conferring with Furino/Greene Creative, Inc., shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid far their services, the manner of payment (lump sum ar periodic progress payments), the description and estimate of reimbursable expense, and 1 G:\rda\Ruth Ann Moorelword data\EI PaseolFurino Green Contract Amendment 10-11.doc 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 Furino/Greene Creative, Inc., as follows: (i) In addition to the flat fee of $3,500 per month to cover services, Furino/Greene Creative, Inc., will bill for production of services such as radio production, print production, website updates and revisions, monthly newsletter production at costs approved by the City or its designee, after review and approval by the EPBID Board of Directors. This fee is inclusive of the total dollar figure of the contract as stated in Section 4 of the agreement. (ii) The City retains the right to increase, decrease, or with thirty(30)days notice to suspend or cancel the service for any period at any time. (iii) Should the contract be suspended or canceled or not renewed, all advertising materials, contracts taken on behalf of the EPBID, merchant newsletters, merchant contact lists and social media account information will be turned over to the City or its designee within thirty(30) days of the notice to cancel, suspend or non-renewal of the contract. The undersigned represents that they are authorized to execute this Contract Amendment on behalf of the parties hereto on whose behalf they purport to sign. This Contract Amendment shall be deemed executed on the date first above written. CITY OF PALM DESERT FURINO/GREENE CREATIVE, INC. CINDY FINERTY, MAYOR STEPHANIE D. GREENE, CMD ATTEST: By: RACHELLE D. KLASSEN CITY CLERK Approved as to Form: DAVID J. ERWIN, CITY ATTORNEY 2 G:\rda\Ruth Ann Moorelword data\EI PaseolFurino Green Contract Amendment 10-11.doc CONTRACT NO. c292i1 AGENCY SERVICE CONTRACT 1. PARTIES: This contract is entered into this 10th day of September, 2009, by and between the CITY OF PALM DESERT, a municipal corporation, hereinafter referred to as "CITY", and FURINO GREENE CREATIVE, INC., Palm Desert, CA, hereinafter referred to as "FURINO GREENE". 2. SCOPE OF SERVICE: Subject to the terms and conditions of this contract, FURINO GREENE shall furnish and provide the services and materials as outlined in the Addendum, in accordance with the proposal presented to and accepted by the EI Paseo Business Improvement District (EPBID): (a) Prepare or cause to be prepared art work and advertisements for approval by the CITY or its designee (EPBID). In connection therewith, FURINO GREENE shall; (i) Work within the marketing plan as approved by the CITY or its designee, which plans and schedules shall include recommendations as to the media, art and copy, budgets, and coordination of such advertising with other marketing, advertising and event activities within the EPBID; (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; 1 CONTRACT NO. c2921 i (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 materials 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, 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 EPBID, as may be requested by the City or its designee. In connection therewith, FURINO GREENE 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 2 CONTRACT NO. c29211 requested publications; (ii) Perform such other services as may be necessary to print, publish, and distribute any such publications; and (iii) Evaluate and recommend payment for all expenses incurred for the preparation and distribution of any such publication subject to reimbursement in accordance with the provisions of Section 4. (c) Assist in preparation and/or execution of such public relations events as the CITY or its designee may request. In connection therewith, FURINO GREENE shall: (i) Prepare or cause to be prepared such exhibit and display materials as may be requested and approved by the CITY or its designee; (ii) Coordinate communication with the merchants for various events and attempt to elicit participation by merchants for street-wide events; (iii) Coordinate during all EPBID sanctioned events; and (iv) Evaluate and recommend payment of all expenses incurred in the preparation of exhibits and display materials subject to reimbursement in accordance with the provisions of Section 4. (a) Prepare or cause to prepare such other brochures, maps, reports, exhibits, display materials, and other printed material outlined in the Addendum as may be requested and approved by the CITY or its designee, and evaluate and recommend payment of all expenses incurred in connection therewith 3 CONTRACT NO. c29211 subject to reimbursement in accordance with the provisions of Section 4. (b) Coordinate all use of social media electronic communications including but not limited to websites, merchant email lists, Facebook and Twitter. 3. TERM: The term of this contract shall commence on September 10, 2009 and end on June 30, 2010. The CITY may, at its sole option, extend said term for an additional twelve (12) month term by notifying FURINO GREENE in writing of its selection to extend the term not less than thirty (30) days before the expiration of the initial term. Said extension shall not exceed a three-year period. 4. COMPENSATION: The CITY's budget for advertising and publicizing the EPBID's facilities, services and events is established as part of the CITY's fiscal year budget for the period of September 10, 2009 - June 30, 2010 at $200,000. The CITY's liability for advertising materials and services under this Contract shall not exceed the amount budgeted therefore. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Priorto performing any services orfurnishing any material contemplated by this Contract to be undertaken and furnished by FURINO GREENE, the CITY or its designee, after conferring with FURINO GREENE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and 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 4 CONTRACT NO. c292 i i reimburse FURINO GREENE as follows: (a) The CITY will pay FURINO GREENE a flat fee of $3,500 per month to cover advertising services in accordance with the proposal presented by FURINO GREENE as attached in the Addendum to the EPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 80 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical. (b) FURINO GREENE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FURINO GREENE will not mark up billings or receive commissions. (c) FURINO GREENE 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 of reimbursable costs and expenses. Payment and reimbursements provided for in this Section 4 will be made in due course by the City of Palm Desert. (d) FURINO GREENE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract. 5. TERMINATION: Either party may terminate this Contract 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 FURINO GREENE 5 CONTRACT NO. c292i1 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. EL PASEO BUSINESS IMPROVEMENT DISTRICT: The CITY reserves the right to designate the EPBID of the City of Palm Desert 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 Contract and will advise FURINO GREENE 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 Contract shall become the property of the CITY. FURINO GREENE specifically transfers any "right of reproduction" as defined by California Civil Code S982 and S988 to the CITY and CITY assigns. FURINO GREENE agrees to maintain adequate books and records of all completed designs, plans, reports, drawings, social media electronic communications and processes and adequate baoks 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, FURINO GREENE agrees that it shall provide the City with the aforementioned books and records. 6 CONTRACT NO. c2921 i IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective authorized officers or representatives as the date and year first above written. STEPHANIE D. GREENE, CITY OF PALM DESERT FURINO GREENE CREATIVE, INC. By By STEPHANIE D. GREENE ROBERT A. SPIEGEL ATTEST: By RACHELLE D. KLASSEN, CITY CLERK APPROVED AS TO FORM: By DAVID ERWIN, CITY ATTORNEY 7