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HomeMy WebLinkAboutC31970 - Media-Buying Services Fiscal Year 2012 - 2013CITY OF PALM DESERT STAFF REPORT REQUEST: AWARD CONTRACT NO. c31970 TO JNS ADVERTISING FOR MEDIA BUYING SERVICES IN AN AMOUNT NOT -TO - EXCEED $250,000 FOR FISCAL YEAR 2012/13 SUBMITTED BY: Donna Gomez, Tourism & Marketing Manager CONTRACTOR: JNS Media Specialists 79-690 Amalfi Drive La Quinta, CA 92253 DATE: June 28, 2012 CONTENT: Proposed Contract Recommendation By Minute Motion: 1. Concur with the Marketing Committee's recommendation and award Contract No. c31970 to JNS Media Specialists in an amount not - to -exceed $250,000 for media buying and related services for Fiscal Year 2012/2013; and 2. Authorize the City Manager to execute the media buying agreement on behalf of the City. Executive Summary JNS Media Specialists have been providing media buying services for the City of Palm Desert since January 2011. This service has allowed the City to secure competitive advertising rates and to negotiate with the media for added value (such as free radio, print, e-mail blasts, banner ads, advertorial, promotional mentions, etc). JNS Media Specialists (JNS) conducts offline media research, analysis, purchasing, placement, and one -stop billing. The majority of media outlets extend an "agency discount/commission" for agencies placing advertising. Purchasing media in-house would not qualify the City for an agency discount, and the City would be paying published rate card prices with little or no added valued. Staff Report Contract No. C31970 Extension of Contract for Media Buying Services June 28, 2012 Page 2of3 By contracting with JNS, the City of Palm Desert does not pay a retainer or an hourly fee for their services. As compensation, JNS receives the agency discount directly from the media; a discount the City would not be eligible for if media were placed in-house. The existing agreement with JNS, due to expire June 30, 2012, allows for renewal of the agreement for one additional one-year period at the option of the City under the same terms and conditions and at the same rates. No changes are being proposed to this agreement. Palm Desert's total media advertising budget is approximately $460,000. Of that amount, JNS would be responsible for placing up to $250,000 worth of media primarily in the area of print and radio. The remaining media dollars are split between online and cooperative advertising efforts and would not be included within this contract. Background JNS is a well -established company in the desert area and is currently working with the Palm Springs Desert Resort Communities Convention and Visitors Authority (CVA), City of Indian Wells, Palm Springs Bureau of Tourism, and the BNP Paribas Open. The foremost benefit of working with JNS, versus purchasing advertising in-house, is that they offer bulk buying power. Because they purchase a significant amount of media, they maintain relationships that allow them to buy advertisements at a cost lower than the published rate. Additionally, they are able to negotiate added value, such as promotions, free ads, advertorial, and inclusion in e-newsletters, among others. Working with JNS allows Palm Desert to coordinate directly with the CVAs media plan and develop its own plan that complements and reinforces their efforts while avoiding duplicative advertising. Fiscal Analysis Approval of this contract would extend Palm Desert's media dollars through bulk purchasing and additional no -cost benefits. Should the City negotiate individually with the vendors for the same services, costs could increase by as much as $50,000. Denial of the contract would increase the cost the City pays for scheduled media buys and result in a significant increase in staff time, due to the time-consuming nature of media placement. Staff Report Contract No. C31970 Extension of Contract for Media Buying Services June 28, 2012 Page 3 of 3 Funds are included in the FY 2012/13 marketing budget, Acct No 110-4417-414-3221. Submitted By: Donna Gomez, Tourism & Marketing Man Paul S. Gibson, Director of Finance Approved: City Manager Department Head: M.-An Alvarez Director of Economic Development CITY COMCILAC,'�'fON APPROVED ✓✓ DENTED RECEIVED OTHER .VWAN/I IUl� Original on File with City Ckrk's Office Contract No. C31970 MEDIA BUYING AGREEMENT This Media Buying Agreement ("Agreement") is entered into this day of , 2012, by and between the City of Palm Desert ("City") and JNS Media Specialists ("Agency"). The City and Agency are sometimes collectively referred to in this Agreement as the "Parties" and individually referred to as "Party." AGREEMENT 1. Term. The term of this Agreement shall become effective for Fiscal Year 2012-2013 from July 1, 2012 until June 30, 2013, and may be renewed for one additional one-year period at the option of the City under the same terms and conditions and at the same rates. In all cases, the Agreement renewals shall be approved annually by the City Council and sufficient appropriations shall have been made for the particular fiscal year for which the renewal is sought. 2. Scope of Services: 2.1 Services to be rendered by Agency pursuant to this Agreement shall be performed in coordination with City staff. The Agency will submit to City in writing for approval of all media recommendations including advertising plans, media schedules, and cost estimates prior to buying and placing advertisements. 2.2 City will specify criteria and approve each advertisement and media placement and will not be limited in placing advertisements independently outside of this Agreement. 2.3 Agency will provide the following services: (a) Media Planning: media strategies and analysis, target audience analysis and research; product demographic research and circulation analysis; client consultation; reach and frequency estimates (size of audience reached by plan); special event/promotional strategies; PSA and partnership opportunities; return on investment (ROI) analysis. (b) Negotiating, Scheduling, and Maintaining Media Buys: Ratings analysis; spot rotation analysis; added value (contracted and tracked); invoice audits which match spot time, dates, costs, and commercial numbers with original buy schedule; tear sheets required before payment on print advertising; make goods/credits (negotiated if media ran incorrectly); post -buy analysis/estimate. Media will be purchased at the lowest rate available. Any added value received from media purchases, including, but not limited to bonus advertising, e-blasts, promotional and online Contract No. C31970 opportunities, and advertorial, will be passed on to the City at no additional cost. (c) Media Administrative Services: record keeping; flowcharts; budget recaps; billing; processing payment; maintaining media buy schedules; buy confirmations; tracking make goods and credits; trafficking of creative materials. (d) Options: For any other services not specified in this Agreement, for which the City Manager or designee has provided advance written approval, the City will pay the agreed upon Agency commission. Agency shall provide documentation to the City supporting all expenses incurred in furnishing these other services. 3. Confidentiality. Any information provided by the City to the Agency for use under this Agreement shall be deemed confidential. 4. Compensation. The amount budgeted for advertising and media buys is established as part of the City's Fiscal Year 2012-2013 budget. The City's liability for advertising services under this contract shall not exceed the amount budgeted. The City reserves the right, at any time during the term or any extensions thereof, to adjust the amount budgeted for media buying services. The Agency shall receive the media's agency discount, a commission of 15% of each commissionable media buy, which covers all costs associated with performing services listed in Section 2, Scope of Services. 5. Billing. Agency shall provide to the City a monthly invoice detailing Agency, commission as paid by the media, and media charges and expenses, credits or additional charges such as credits for missed spots or additional color or production charges from the media. Following verification of advertising placement and billing from the media vendor, the Agency will, if needed, issue adjustment billing to the City to reflect any credits or additional charges. Agency shall submit a verified statement of media charges and credits for services before the 10th day of each month. All such records shall be subject to audits by the city auditor or by an independent auditor from a reputable firm of certified public accountants. The total amount of this Agreement shall not exceed Two Hundred and Fifty Thousand Dollars ($250,000) without an amendment approved by the City Council. 5.1 Agency is authorized to act as City's agent with regard to the purchase of media hereunder. All purchases of media to carry the Client advertising, materials, services, and rights on behalf of Client will be made by Agency, as agent for the City. As Agency is acting as an agent for a disclosed principal, all such purchases will be made for the City under the principle of sequential liability, where Agency will be held liable for payments to media vendors and other suppliers only to the extent Agency has been paid by the G:\rda\Donna\Staff Reports\2012\JNS Media Buying AGT FY12-13 Agreement.doc 2 Contract No. C31970 City for such purchases. For amounts owing but not paid to Agency, the City agrees that it will be held solely liable. Agency has the right to confirm with media vendors and other suppliers that they expressly agree to payment on such terms. 6. Ownership Rights. All documents and any other materials provided by the City are the sole property of the City. 7. Indemnification. Agency agrees to indemnify, defend and hold harmless the City, its officials, officers, employees, agents and consultants on account of any and all claims for damages because of (i) personal injury, sickness or death of any person, injury, damage or destruction to property in connection with its performance of its obligations pursuant to this Agreement, (ii) any breach by Agency of any representation, warranty or covenant of this Agreement, or (iii) any violation by Agency of any applicable local or state laws, ordinances, rules, regulations or lawful orders bearing on the performance of any obligations under this Agreement. This indemnification is intended to be as broad as possible and as broad as allowed by law. Only in the instance of damage caused solely and exclusively by the negligence and/or malfeasance of the City or its employees or agents will the indemnification not apply. This indemnification includes but is not limited to indemnifying for reasonable attorneys' fees, costs and other related expenses, including expert witness fees incurred by the City directly, through its carriers or for its agents and/employees. 8. Insurance. 8.1 Time for Compliance. Agency shall not commence services under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Agency shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. 8.2 Minimum Requirements. Agency shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by Agency, its agents, representatives, employees or subcontractors. Agency shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage: (a) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (A) Genera/ G:\rda\Donna\Staff Reports\2012UNS Media Buying AGT FY12-13 Agreement.doc 3 Contract No. C31970 Liability: Insurance Services Office Commercial General Liability Coverage (occurrence form CG 0001); (b) Minimum Limits of Insurance. Agency shall maintain limits of no less than: (A) General Liability. $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; 8.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Agency shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies: (a) General Liability. The general liability policy shall be endorsed to state that: (A) the City and its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services performed by or on behalf of Agency, including materials, parts or equipment furnished in connection with such work; and (B) the insurance coverage shall be primary insurance with respect to the City and its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Agency's scheduled underlying coverage. Any insurance or self- insurance maintained by the City and its directors, officials, officers, employees, agents and volunteers shall be excess of Agency's insurance and shall not be called upon to contribute with it. (b) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City and its directors, officials, officers, employees, agents and volunteers. 8.4 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. Such insurance shall not contain any special G:\rda\Donna\Staff Reports\2012\JNS Media Buying AGT FY12-13 Agreement.doc 4 Contract No. C31970 limitations on the scope of protection afforded to the City and its directors, officials, officers, employees, agents and volunteers. 8.5 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. 8.6 Verification of Coverage. Agency shall furnish City with original certificates of insurance and endorsements affecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by the City before work commences. 9. Independent Contractor. For purposes of this Agreement, the Parties are independent contractors and not partners nor is a joint venture being created. Each Party retains the right to perform similar or different services for others or enter into similar agreements with third parties during the term of this Agreement. Any additional personnel performing the services under this Agreement on behalf of Agency shall also not be employees of the City and shall at all times be under Agency's exclusive direction and control. Agency shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Agency shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and worker's compensation insurance. 10. Notices. Whenever it shall be necessary for either Party to serve notice on the other regarding this Agreement, such notice shall be served either in person, by certified mail, return receipt requested to the addresses below. City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Manager Agency: JNS Media Specialists 79-690 Amalfi Drive La Quinta, CA 92253 Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. G:\rda\Donna\StaffReports\2012UNS Media Buying AGT FYI 2-13 Agreement.doe 5 Contract No. C31970 11. Legal Costs. In the event of any legal action between the City and Agency arising out of the obligations of the Parties pursuant to this Agreement, the prevailing Party will be entitled to payment of its costs and expenses, including its reasonable attorneys' fees. 12. Binding Effect; Successors. Neither Party shall assign or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the other Party, which may be given in such Party's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees or transferees shall acquire no right or interest by reason of such attempted assignment or transfer. This Agreement shall bind and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns and all of the Parties thereto shall be jointly and severally liable hereunder. 13. Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument which shall be binding upon the Parties notwithstanding that the Parties may not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. 14. Further Assurances. Whenever requested to do so by the other Party, each Party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and any documents that are necessary, expedient, or proper to complete anything contemplated by this Agreement. In addition, each Party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Agreement. 15. Modifications. All modifications to this Agreement must be in writing and signed by the Parties. Cancelation of media must adhere to the following schedule: Print: 30 days notice prior to placement; Television: 10 days notice prior to placement; Radio: 7 days notice prior to placement; and Electronic: Immediate cancelation. 16. Third -Party Rights. Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies. 17. Governing Law; Choice of Venue. This Agreement shall be governed and construed in accordance with California law, including the Fair Political Practices Act of 1974. Venue shall be Riverside County. 18. Severability. If any provision of this Agreement becomes or is declared by a court to be illegal, unenforceable or void, that clause will be omitted and the remainder of the Agreement will continue in full force and effect. Such holding shall in no way affect the validity or enforceability of this Agreement. G:\rda\Donna\StaffReports\2012\JNS Media Buying AGT FY12-13 Agreement.doc 6 Contract No. C31970 19. Entire Agreement. This Agreement is the entire agreement between the Parties and supersedes any prior or contemporaneous representations, understandings or agreements, whether written or oral. 20. Waiver of Jury Trial. The Parties specifically waive any right to trial by jury in any court with respect to any contractual, tortious or statutory claim, counterclaim or crossclaim against the other arising out of or connected in any way to this Agreement because the Parties hereto, both of whom are represented by counsel, believe that the complex commercial and professional aspects of their dealing with one another make a jury determination neither desirable nor appropriate. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first hereinabove written. City of Palm Desert: Robert Spiegel, Mayor Rachelle Klassen, City Clerk Agency: President G:\rda\Donna\StaffReports\2012\JNS Media Buying AGT FY12-13 Agreement.doc 7