HomeMy WebLinkAboutC31981 - FY 2013-14 - Advrtsing Svcs for EPBID CITY OF PALM DESERT
STAFF REPORT
REQUEST: APPROVE CONTRACT AMENDMENT NO. C31981 FOR FG
CREATIVE, INC OF PALM DESERT, CALIFORNIA, IN THE AMOUNT
OF $242,500 FOR ADVERTISING SERVICES AND EXPENDITURES
FOR THE EL PASEO BUSINESS IMPROVEMENT DISTRICT
FROM: Ruth Ann Moore, Economic Development Manager
CONTRACTOR: Stephanie D. Greene
FG Creative, Inc.
74-020 Alessandro, Suite E
Palm Desert, CA 92260
DATE: June 13, 2013
CONTENTS: Contract Amendment C31981
Original Contract C31980
Recommendation
By Minute Motion:
1. Approve Contract Amendment No. C31981 in the amount of$242,500($45,000 in
Agency services and $197,500 in advertising and promotional expenditures);and
2. Authorize Mayor to execute said contract amendment.
Funds have been included in the proposed Financial Plan for 2013/2014 Other
Advertising, Account No. 271-4491-464-3215. This expenditure is not part of the
General Fund.
Executive Summary
At the April 18, 2013, 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 FG Creative, Inc. (FGCI)contract that represents the district
as its advertising agency.At the May 16,2013 EPBID board meeting,the directors during final
review of the 13/14 fiscal budget voted to increase FGCI's monthly retainer from $3,500 to
$3,750. This is the first increase to the retainer in six years.
The total budget to be administered by FGCI is$242,500 for the period of July 1,2013 through
June 3Q, 2014. FGCI's retainer fee of$3,750 per month will be paid from the$242,500 budget
with the remainder going for advertising and promotional expenses.
Funds are collected from the businesses through a special assessment fee and do not impact
the General Fund.
G:UdaU2uth Mn Moorelword datalSTAFF REPORTS�FG Contrad Extention Ammendment 6-13-13.doc
Staff Report
Approval of Contract Amendment No. C31981 (FG Creative, Inc.)
June 13, 2013
Page 2
Backqround
In 2012, the EPBID was required to go out to bid for advertising services for the district, and
City Council awarded the contract to FGCI. The agency is responsible for overseeing the
marketing and public relations plan for the EPBID, web page oversight, internal merchant
communications, event duties and meeting agenda creation and distribution. A provision in the
contract allows for two yearly extensions of the contract. This will be the first yearly extension.
Fiscal Analysis
Fees for this contract are collected through a special assessment of the businesses. This
contract does not impact the General Fund.
Subm' Department Head
(
th A n Moore, conomic Development Ma in Alvarez, Direc or of Economic
Manager Director
crr�rcotnrcn�ox �
APPROVED l'fF,NT�;U
RECENED OTHER
I S. Gibson, Finance Director
MEET G DA ' �
AYE /�/
A ro NOES:
� ABSEN'P: ?
ABSTAIN:
VERIFIED BY:
n M. Wohlmuth, City Manager Original on Fite with Ci lerk's Office
G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\FG Contract Extention Ammendment 6-13-13.doc
CONTRACT NO. C31981
AMENDMENT
This agreement is entered into this 1 S�day of July 2013, by and between the City of
Palm Desert, California ("City") and FG Creative, Inc., for services and materials related to
the advertising and promotions of the EI Paseo Business Improvement District (EPBID").
RECITALS
1. The City and FG Creative, Inc. entered into an Agreement on July 1, 2012,
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 promises, conditions, and agreements set forth herein, the City and FG Creative,
Inc., agrees as follows:
A. TERM
The term of this Contract Amendment shall commence on July 1, 2013, and
end on June 30, 2014.
B. COMPENSATION
The amount for advertising and publicizing the EPBID's facilities, services
and events is a sum of Two Hundred Forty Two Thousand Five Hundred Dollars
($242,500). 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 FG Creative, Inc., the City or
its designee, after conferring with FG Creative, Inc., 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 reimburse Furino/Greene Creative, Inc., as follows:
1
G:\rda\Ruth Ann Moore\word data\EI Paseo\Furino Green Contract Amendment(1)13-14.doc
(i) In addition to the flat fee of$3,750 per month to cover services, FG 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 FG CREATIVE, INC.
JAN C. HARNIK, 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 Moore\word data\EI Paseo\Furino Green Contract Amendment(1)13-14.doc
r �
1 �
� CONTRACT NO. c319so
AGENCY SERViCE CONTRACT
1. PARTIES: This contract is entered into this 28th day of June, 2012, by and
between the CITY OF PALM DESERT, a municipal corporation, hereinafter
referred to as "CITY", and FG CREATIVE, INC., Palm besert, CA, formally known
as "FURINO GREENE CREATIVE, INC".
2. SCOPE OF SERVICE: Subject to the terms and conditions of this contract, FG
CREATIVE 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, FG
CREATNE 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 rt�edia, 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;
G1rdaUtuth Mn Moorelword datnlS'fAFF REPORTS{FG Croative 2012-2013 Contractdocx �
,
`
CONTRACT NO. c3i98o
(iii) Create, design, and supervise the production ofi advertising to be
published in newspapers, periodicals, magazines, trade journals,
radio, television, internet and other media;
(iv� Check insertion of approved advertising and atherwise verify proper
delivery and distribution thereof;
(v) Maintain a permanent file of all art work and advertising materials
(including meeting minutes), 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 f�r all expenses incurred for art
work, advertisements and for the placement and publishing thereof
in newspapers, periodicals, magazines, trade journals, radio,
television, internet and other media subject to reimbursement in
accordance with the provisions of Seetion 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, FG
CREATIVE 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
G:UdaVRuth Mn Moorelword deta�STAFF REPORT5IFG Creative 2012-2013 Contractdocx�
CONTRACT NO. �3i9so
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, FG CREATIVE
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 communicatian 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
G.kdaVtutb Ann Moorelvrord datalSTARF REPOR'IS�FG Creetive 207Y2013 Conttnd.docx�
r
CONTRACT NO. c3198o
subject to reimbursement in accordance with the provisions af 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 July 1, 2012 and end on June
30, 2013. The CITY may, at its sole option, extend said term for an additional
twelve (12) month term by notifying FG CREATIVE 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 parfi of the CITY's fiscal year
budget for the period of July 1, 2012 - June 30, 2013 at $210,000. 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. Prior to pertorming any services or furnishing any
material contemplated by this Contract to be undertaken and fumished by FG
CREATIVE, the ClTY or its designee, after conferring with FG CREATIVE, 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 ta the
limitations and provisions set forth in this section, the CITY shail compensate and
G:1rdelRuth Ann Maordword datalSTAFF REPORTSIFG Creative 2012-2013 Contraet docrz q
•r
. �
i
�
� ,
COI�TRACT NO. �31980
reimburse FG CREATIVE as follows
(a) The CITY wiil pay FG CREATIVE a flat fee of $3,500 per month to cover
advertising services in accordance with the proposal presented by FG
CREATIVE as attached in the Addendum to the EPBID and/or any marketing
mutually agreed ta by the parties hereto. The fee covers not less than 80
hours per month; such services include, but are nofi limited to, meetings,
account planning and service, production management, media planning and
buying, and clerical.
(b) FG CREATIVE will purchase media at the lowest rate available. All billings will
be submitted at net costs for payment by the CITY. FG CREATIVE will not
mark up billings or receive commissions.
(c) FG CREATIVE shali 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) FG CREATIVE 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 Cantract 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 FG CREATIVE for
G kdolRuth Ann Moorclword datalSTAFF REAORTSIFG Creetive 2012-2013 ContraU docx�
�
' .
CONTRACT NO. c3i9so
services rendered or materials furnished or contracted for as of the date of
notification by either party of the electian to terminate, shall continue in accardance
with the terms herein.
6. EL PASEO BUSINESS IMPROVEMENT DISTRICT: The CITY reserues the right
to designate the EPBID of the City of Palm Desert or any other committee or
individual as its representative for any parfi of the review and approval retained by
the CITY under any provisions of this Contract and will advise FG CREATIVE of
such designation and such designation shall continue until modified by the CITY.
7. OWNER OF WfJRK: All art work, adver�isement of any form, exhibi# and display
mafierials or ofiher printed material, logos, designs, drawings, and models prepared
or performed under this Contract shall become the property of the CITY. FG
CREATIVE specifically transfers any "right of reproduction" as defined by
Califomia Civil Code S982 and S988 to the CITY and CITY assigns.
FG CREATIVE agrees to maintain adequate books and records of all completed
designs, plans, reports, drawings, social media electronic communications and
processes and 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 earli�er termination of this Agreement.
Within five (5) days of any expiration or earlier termination of this Agreement, FG
CREATIVE agrees that it shall provide the City with the aforementioned books and
records.
G 1rdelRuth Ann Mooro\word data{STAFF REPORTSIFG Creadve 2012-20I3 ContraU.dowc`
V
C�MTRACT NO. c31980
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their respective autharized officers or representatives as the date and year first above
written.
STEPHANIE D. GREENE, CITY OF PALM DESERT
FG CREATIVE, IMC,
�_, ,� .�
� -� � ��; ����. � B .����'��' �
y
E HANIE D. GR " NE ROBERT A. SPI GEL or
ATTEST:
By
R CHELLE D. KLASSEN, CITY CLE K
' APPRQ1f�D AS TO FORM: �
� ,
,
,''�
�,r j
. �-• �/7�� /.9 �
y «
DAVID J. WiN, CITY ATTORNEY
G�.UdalRuth Ann Miwre\word duta�STAFF REPOATSIEG Creative 2012-2013 ContreU.docx�