Memo 021-2012 The Superlative Group Agreement IM MIAMI BEACH
OFFICE OF THE CITY MANAGER MEMORANDUM
`{ 021 -2012 2
TO: Commissioner Jonah Wolfson
FROM: Kathie G. Brooks, Interim City Manager
G% <
DATE: September 5, 2012 �, . _-n
SUBJECT: The Superaltive Group Agreement
Pursuant to your request, attached please find a copy of the agreement between the City
and The Superaltive Group for Municpal Marketing Services. I am also providing you with
some background on these efforts.
In 2002, the City's Parks and Recreation Programs Blue Ribbon Citizen's Committee
recommended the City pursue a mechanism to assist in funding program costs for our Parks
Department. Developing and implementing a. successful Municipal Marketing program
requires inventorying City assets, determining the, sponsorship marketing value of the .
assets, developing sponsorship management policy, the actual marketing of the assets and
negotiating sponsorship contracts. As such, the City determined that professional
assistance was desirable and issued an RFP for services.
A competitive (RFP) process was issued in 2004. The City received proposals from a variety
of consultants proposing to assist the City of Miami Beach with the development and
implementation of a Corporate Sponsorship Program. However, due to a bid challenge and
subsequent investigation`, no action was taken at that time. In 2005, a second competitive
process was issued (RFP) for the Development and Implementation of a Citywide Corporate
Marketing and Sponsorship Program. Four responses were received for that competitive
process, with the Commission selecting IMG. The Commission further approved that if we
were unable to negotiate an agreement with IMG, then we were authorized to negotiate with
the second ranked proposer, The Superlative Group.
The proposed agreement was to be divided into two phases (as described in the RFP).
1. Phase I: Conducting an inventory of existing and prospective tangible and non -
tangible marketing assets; 2) Developing a comprehensive sponsorship policy; and 3)
Developing a strategic plan for marketing assets.
2. Phase II: At its sole discretion, the City could elect to
• Terminate the corporate sponsorship program; or
• Continue the program with the marketing of inventoried and valued assets with
the vendor that performed work outlined in .Phase I, paying earned commissions
to the vendor through that process; or
• Continue the program through issuance of an RFP for a new vendor to market
the inventoried assets, paying earned commissions to the new vendor through
that process.
Negotiations with IMG were unsuccessful and and as approved by the Commission action,
staff began negotiations with the second - ranked proposer, The Superlative Group. A final
agreement was executed effective March 22, 2007 for a contract amount of $39,000 (plus
expenses) to provide the three deliverables in Phase 1.
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community.
The Superlative Group completed an Asset Inventory and Valuation Report, Strategic Plan
and Policy Document. In unison, the three documents provide the City with documents that
assist in developing and implementing a municipal marketing program.
On January 13, 2010, the City Commission adopted Resolution No. 2010 - 27309, approving
an amendment to the Agreement between the City and The Superaltive Group for the
implentation of Phase II of a municpal markeitng program. The first term of the Agreement
expires February 1, 2013. The City, at its sole option and discretion, may renew the
agreement for two (2) additional one (1) year terms.
I have attached a copy of the original agreement with the Superlative Group, as well as the
subsequent amendment for your reference. Please let me know if you have any questions.
KGB /MAS
cc: Mayor and City Commission
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community.
x010 -x7309
AMENDMENT NO. I TO THE PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, FLORIDA (CITY) AND THE
SUPERLATIVE GROUP, INC. (CONSULTANT) FOR PROFESSIONAL
SERVICES IN CORPORATE SPONSORSHIP MARKETING PURSUANT TO
REQUEST FOR PROPOSALS NO. 06-04/05
This Amendment No. 1 is made and entered this 154 day of }-C (ru,-r 2010, by
and between the CITY OF MIAMI BEACH, FLORIDA (City), a municipal
corporation having its principal office at 1700 Convention Center Drive, Miami Beach,
Florida, 33139, and THE SUPERLATIVE GROUP, INC. (Consultant), an Ohio
corporation, having its principal office at 2706 Franklin Blvd., Cleveland, Ohio, 44113.
RECITALS:
WHEREAS, on February 23, 2005, the City Commission approved the issuance
of Request for Proposals No. 06 -04/05 for the purpose of implementing a municipal
marketing program (the RFP); and
WHEREAS, on March 22, 2007, the City entered into a Professional Services
Agreement with Consultant for Phase I of a municipal marketing program, which. .
included the development of an Asset and Valuation Inventory, a Strategic Planning
Document, and a Policy Document (the Agreement); and
WHEREAS, Consultant has completed its Phase I services /deliverables; and
WHEREAS, the City and Consultant now wish to amend the Agreement in order
to proceed with, and provide the scope of services and compensation schedule for, Phase
11 of the municipal marketing program, which will address implementation of the
program (including, without limitation, soliciting and entering into municipal marketing
agreements with business entities).
NOW THEREFORE, in consideration of the mutual promises contained herein,
the City and Consultant hereby amend the Agreement as follows:
1. The foregoing recitals are true and correct and are hereby incorporated by
reference into this Amendment.
2. Section 1 of the Agreement, entitled ``Definitions," is amended to include the
following defined term:
Sponsorship Agreements: shall mean fully executed written contracts
procured by Consultant, and approved by the City, for sponsorships,
naming rights, and /or licensing agreements. Notwithstanding the
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preceding, Sponsorship Agreements shall not include contracts where the
sponsor, person or entity requesting the naming right(s), and/or licensee,
initiates the contact directly with the City, and there has been no previous
contract between Consultant and that sponsor (or person/entity requesting
the naming right(s) and /or licensee) on behalf of the City.
3. Section 2 of the Agreement, entitled "Scope of Work," is amended to include and
incorporate Exhibit "A," attached hereto, which shall define Consultant's scope of
work/services for Phase 11 of the Agreement (development and implementation of
the City's municipal marketing program). In addition to the scope of services,
Exhibit "A" also sets forth the timeline within which Consultant is required to
complete any deliverables, and /or achieve milestones /benchmarks, as required by
the City for Phase II.
4. Section 3.1 of the Agreement, entitled "Fixed Fee," is deleted in its entirety and
replaced with the following new Section 3.1, entitled "Compensation for Phase
3.1. The City hereby acknowledges that it has elected to proceed with
Consultant to provide Phase 1I services under the Agreement, as more
specifically set forth in Exhibit "A" hereto.
Accordingly, in consideration of Consultant's performance in a
satisfactory and efficient manner, as determined solely by the City
Manager or his designee, of Phase II services and work, as set forth in this
Amendment No. 1 and Exhibit "A" hereto, the City agrees to compensate
Consultant as follows:
3.1.1 Upon the parties' execution of this Amendment No. 1, and .
as agreed in the original Agreement, Consultant shall
refund to City fifty percent (50 %) of the fees (or $19,500)
'paid to Consultant for Phase I services under the
Agreement. The City shall deduct this $19,500 amount as a
reimbursable draw from commissions earned by Consultant
on the first $2 million of total gross revenues to the City
(GR) generated by Sponsorship Agreements obtained by
Consultant pursuant to this Agreement. In the event that
the commissions due Consultant during the initial term of
the Agreement do not satisfy the $19,500 owed to the City,
then the City and Consultant shall mutually agree on an
alternative method for reimbursement of the full (or
remainder of the full) amount.
3.1.2 On the Commencement Date (as defined in Section 4.4),
and thereafter at the beginning of every month for the
proceeding eight (8) months of the Term, City shall pay
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Consultant a draw against future commissions on
Sponsorship Agreements, in the amount of $5,500. The
draws shall be credited against any commissions due
Consultant. In no event shall the total amount of the draws
against commissions paid to Consultant during the first
nine (9) months of the Term, exceed $49,500.
3.1.3 Commission Structure Consultant shall be entitled to
receive a commission based upon a percentage of total
gross revenues to the City (GR) generated by Sponsorship
Agreements obtained by Consultant pursuant to this
Agreement (Commission Payment). The commission
structure shall be as follows:
(i) 15% commission on $0 — 250,000 in GR to
City;
(ii) 12% commission on $250,001 — 500,000 in GR
to City;
(iii)10% commission on $500,001 — 1,000,000 in
GR to City;
(iv)6% commission on $1,000,000+ in GR to City;
And, additionally,
(v) 7% commission on renewals (percentage of GR
for first renewal only);
(vi)45% commission on licensing agreements (to
include monitoring); and
(vii) 10% commission on budgeted cost
avoidance measures, as defined in Section 3.1.6.
3.1.4 City shall pay Consultant the Commission Payment within
sixty (60) days following receipt of revenues from
Sponsorship Agreements. Consultant shall only be entitled
to receive Commission Payments on payments actually
received by the City. If the Agreements are multi -year in
nature, and payments to the City are made annually or in
installments, then Consultant shall be paid the Commission
Payment within sixty (60) days after receipt of the annual
(or other installment) payment by City.
3.1.5 The packaging and pricing of Sponsorship Agreements
may be changed by the City from time to time, in its sole
and reasonable judgment and discretion, and Consultant
shall not receive any increase in Commission Payments as
a result of such change(s) unless (i) Consultant directly
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negotiated the change(s); and (ii) the City (through its City
Manager or his/her designee) and Consultant agree, in
writing, that Consultant is entitled to an increased
Commission Payment(s) as a result of such change(s).
3.1.6 For purposes of this Section 3.1, "budgeted cost avoidance
measures" shall mean procurement by Consultant of items
previously included in the City's approved annual
- operating budget. Consultant shall receive a Commission
Payment for such item(s) if, and only if, City would have
purchased said item(s) from another source outside the
scope of this Agreement. The Commission Payment for
said item(s) shall be based on the amount budgeted and
such payment shall be made upon delivery and acceptance
by the City of the item(s). The City shall not owe nor be
required to pay a Commission Payment if said item(s)
does /do not assist or reduce items in the City's approved
annual operating budget. Whether or not a particular item
falls within the definition of budgeted cost avoidance
measures shall be left to the sole discretion of the City
Manager or his /her designee.
3.1.7 The City shall reimburse Consultant's travel and other out
of pocket expenses for Phase II, up to a total amount not to
exceed $15,000 during the Term. The City Manager or
his/her designee must approve all expense reimbursements
in advance, in writing. The City shall not owe, nor be
required to reimburse Consultant for, any expenses that
have not been pre- approved, in writing, by the City
Manager or his /her designee.
3.1.8 All work/services performed by Consultant hereunder shall
be performed to the satisfaction of the City Manager or
his /her authorized designee. The determination by the City
Manager (or his /her authorized designee) shall be final,
binding and conclusive on all parties hereto. Final
acceptance of work product and services shall require
written approval by the City Manager or his/her designee.
Payment will only be made to Consultant following written
approval of any such final work product and /or services by
the City Manager or his /her designee. The City shall be
under no obligation to pay for any work/services performed
by Consultant which is not satisfactory to the City Manager
or his/her designee. The City Manager shall have the right
to terminate this Agreement should Consultant's work not
be satisfactory to the City Manager (or his /her authorized
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designee); provided however, that the City shall have no
obligation to terminate and may withhold payment for any
unsatisfactory work/services, (even should City not elect to
terminate).
3.19 The City shall not be obligated nor liable under this
Agreement to any party other than Consultant, for the
payment of any monies or the provision of any goods or
services.
3.2.0 Additional Services At its sole option and discretion, the
City may request Consultant to provide additional services
(and reserves the right to negotiate an additional fee and /or
separate commission structure for), subject to mutual
agreement of the parties and pursuant to a written
amendment to this Agreement, executed by the parties.
Additional services may include, without limitation, a
request by the City to Consultant for Consultant's
assistance with any existing City municipal marketing
and /or agreement(s); and assistance on sponsorship
agreements, license agreements, etc. that the City
negotiates directly with Consultant.
5. The language in Section 4.4 of the Agreement, entitled "Duration and Extent of
Agreement Term," is deleted in its entirety, and replaced with the following new
language:
The term of this Agreement shall be for an initial term of three (3) years,
commencing on the last date of execution of the Agreement by the parties hereto
(Commencement Date). At the City Manager's sole option and discretion, the
Agreement may be renewed for two (2) additional one (1) year renewal terms,
upon the same terms and conditions set forth herein, upon written notice to
Consultant, which notice shall be provided no later than thirty ' 30) days prior to
the expiration of the initial term (or the first renewal term, as the ase may be).
6. Section 4.7 of the Agreement, entitled "Termination, Suspension and Sanctions,"
is amended to include the following new Section 4.7.5, entitled "Payment
Calculation Upon Termination/Procedure(s) Upon Termination:"
4.7.5 Payment Calculation Upon Termination/Procedure(s) Upon
Termination
4.7.5.1 For Convenience by City or for Cause by Consultant
In the event the City terminates the Agreement for
convenience, or Consultant terminates the Agreement for
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cause, Consultant shall be entitled to its Commission
Payment(s) on Sponsorship Agreements executed as of the
date of termination.
4.7.5.2 For Cause by City
In the event this Agreement is terminated for cause by the
City (as a result of breach by the Consultant), any amount
owed Consultant will be calculated based solely upon the
fair value to the City provided by Consultant up to the date
of termination.
The City shall have the right, at its sole option and
discretion, to contract with another consultant to complete
(and /or continue, as the case may be) the work/services
required under this Agreement. The City shall also have
the right to offset the cost of the agreement with a new
consultant against Consultant's future or unpaid invoices
(including, without limitation, any unpaid Commission
Payments).
4.7.5.3 Within thirty (30) calendar days of the effective date of
termination of this Agreement, Consultant shall submit to
City its claims, in detail, for the monies owed by the City
for work/services performed under this Agreement through
the effective date of termination. Failure of Consultant to
submit its claims within said thirty (30) calendar days shall
negate any liability on the part of City and constitute a
waiver by Consultant of any and all right or claims to
collect monies that Consultant may rightfully be otherwise
entitled to for work/services performed under this
Agreement.
4.7.5.4 Upon the effective date of termination of this Agreement,
Consultant shall cease all work/services being performed
by Consultant (including any of its subcontractors)
pursuant to this Agreement. Should Consultant be in
negotiations with a potential sponsor at the time of
expiration or earlier termination of this Agreement, the City
will be allowed, at its discretion, to continue negotiations
and /or otherwise follow up with any such potential
sponsor(s), without any liability to Consultant (whether
financial or otherwise).
4.7.5.5 Regardless of how this Agreement is terminated,
Consultant shall affect an orderly transfer to City, or to
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such person(s) or firm(s) as the City Manager or his/her
designee may designate, at no additional cost to the City, of
all completed or partially completed documents, papers,
records, charts, reports, and any and all other materials or
information produced as a result of, or pertaining to, the
work/services rendered by Consultant, hereunder,
regardless of storage medium (collectively, the Records).
Assembly and delivery of the Records to City shall be at
Consultant's sole cost and expense. Payment of any
compensation due to Consultant shall be conditional upon
delivery of any and all Records, as required herein.
4.7.5.6 In no event shall City's action of terminating this
Agreement, whether for cause or otherwise, be deemed an
election of City's remedies, nor shall such termination
limit, in any way, at law or equity, City's right to seek
damages or otherwise pursue Consultant for any default
hereunder or other action.
4.7.5.7 UNDER NO CIRCUMSTANCES SHALL CITY BE
LIABLE TO CONSULTANT, OR TO ANY THIRD
PARTY CLAIMING BY OR THROUGH
CONSULTANT, FOR CONSEQUENTIAL DAMAGES
OR LOST PROFITS.
7. Section 4.16, entitled "Notices," shall delete the reference to the City's
Communications Office (and Jay Moore).
8. Section 4.19, entitled "Limitation of Liability," is hereby amended throughout
said section to change the dollar amount of the City's limit on its liability from
$1000 to $50,000. In addition to being capped at $50,000, the City's liability for
any cause of action for money damages due to an alleged breach by the City of
the Agreement shall also be offset by any sums actually paid to Consultant by
City through the effective date of termination of the Agreement.
9. Section 4.20,, entitled "Dispute Resolution," is hereby added as follows:
4.20 Dispute Resolution
City and Consultant agree that every effort shall be made to
resolve any dispute arising under this Agreement informally
through their designated representatives. For purposes of this
section, the City's designated representative shall be the City
Manager or his/her designee.
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If the informal efforts are unsuccessful, then either party may
request mediation by submitting a written request to the other
party. Within thirty (30) calendar days, of the request of any party,
the parties shall mutually agree on the person or alternative dispute
resolution agency to conduct the mediation. The initiating party
shall then schedule the mediation. The costs of the mediation and
fees of the mediator, if any, shall be borne equally by the parties.
Any dispute not resolved through the mediation may proceed to
litigation in a court of competent jurisdiction in Miami -Dade
County, Florida, unless the parties agree, in writing, to submit the
dispute to binding arbitration.
The duties and obligations imposed by this Agreement, and the
rights and remedies available hereunder, shall be in addition to,
and not a limitation of, any duties, obligations, rights, and remedies
otherwise imposed or available by law. No action or failure to act
by the City or Consultant shall constitute a waiver of any right or
duty afforded either of them under this Agreement, nor shall any
such action or failure to act constitute an approval of or
acquiescence in any breach thereunder, except as may be
specifically agreed to in writing.
10. Consultant's invoices for any payments due pursuant to this Agreement shall be
mailed to:
City of Miami Beach
Office of the City Manager
1700 Convention Center Drive, Miami Beach, Florida 33139
Attention: Hilda Fernandez, Assistant City Manager
11, No Further Modifications. Except as provided in this Amendment No. 1, the
Agreement remains unmodified and in full force and effect.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
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f
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their appropriate officials, as of the date first entered above.
ATTEST: CITY OF MIAMI BEACH, FLORIDA
ity Clerk a or
ATTEST: THE SUPE T E GROUP, INC.
ecretary eside
_Ashley Malone es C. Gal he
Print Name Print ame
APPROVED AS TO
FORM & LANGUAGE
d, FOR CUTION
4 ,4&c*neyl 1 Date
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EXHIBIT A
SCOPE OF SERVICES
1. Develop and present within 90 days of agreement execution a list of
corporate prospects (local, regional, national and/or international) to pursue,
both short term (12 — 18 months) and long term (18 -36 months), and develop
a priority list and marketing and sales plan for these prospects.
2. Develop, in cooperation with the City's Communications staff, marketing
materials (within 90 days of agreement execution)
3. Assist the City in the development of Request for Proposals or "Invitation for
Best Value Bids" or any such other process that assists the City in
maintaining an open and competitive process for soliciting and securing
corporate partnerships, as may be appropriate for each type of municipal
marketing opportunity. This would include marketing the opportunity to
potential partners, and assisting the City in the evaluation of proposals
received.
4. Assist the City in negotiating the municipal marketing partnership agreement
terms with selected partners, and in the development of the municipal
marketing partnership agreement document.
5. Present prospective municipal marketing partners for the City's consideration.
6. Assist City staff with any community vetting necessary to ensure an
understanding of proposed partnerships and address concerns.
7. Assist City staff, as needed, in determining what, if any, City ordinances may
require amendment to accomplish some of the goals or particular municipal
marketing strategies.
8. Develop a plan for managing the fulfillment obligations for each successful
municipal marketing agreement
9. Provide monthly reports that provide a status update on the progress in
_ achieving Item 1 above, including what phase of progress has been made
(e.g. research /identification of targets, contact made, meetings held, follow up
held, preliminary proposal drafted /discussed, etc.)
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RESOLUTION NO. 2010 -27309
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING ALL MATERIAL AND
SUBSTANTIVE TERMS OF THE AGREEMENT- BETWEEN THE CITY
AND THE SUPERLATIVE GROUP (TSG), . AS THE SUCCESSFUL
PROPOSER PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO.
06- 04105, FOR THE IMPLEMENTATION OF PHASE 11 OF A MUNICIPAL
MARKETING PROGRAM; AUTHORIZING THE CITY MANAGER AND
CITY ATTORNEY (OR THEIR RESPECTIVE DESIGNEES) TO FINALIZE
THE AGREEMENT, BASED ON THE TERMS IN THE ATTACHED TERM
SHEET; AND, SHOULD THE CITY AND TSG SUCCESSFULLY
NEGOTIATE AND FINALIZE SAID AGREEMENT, AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT.
WHEREAS, municipal marketing provides a mechanism for a municipality to generate
revenues or resources through partnerships with business entities at no cost to the
municipality; and
WHEREAS, these partnerships provide mutual benefits to the municipality and to the
business entity through the co-identification. with, and promotion of, the partnership
- between the two brands; and
WHEREAS, the City of. Miami Beach has a recognized and desirable "brand" 'that
provides a marketing opportunity for the City; and
WHEREAS, certain business entities have been and would be desirous of partnering
with the City in an.effort to co- identify with the City's brand; -and
WHEREAS, on February 23, 2005, the City Commission approved the issuance of a
competitive selection process to contract with an entity that specialized in municipal
marketing, to assist the City in developing a municipal marketing program; and
WHEREAS, on March 22, 2007, the City entered into an agreement for $39,000 (plus
expenses) with The Superlative Group (TSG), for Phase i of a municipal marketing
program; specifically, for the development of an Asset and Valuation Inventory, a
Strategic Planning Document, and a Policy Document; and
WHEREAS, TSG has completed the Phase I deliverables; and
WHEREAS, the Phase I deliverables reflect potential revenue opportunities for the City,
and provide for a mechanism to implement a municipal marketing program that is
responsive to the City's needs, while protecting the City's unique and, historic" character;
and
WHEREAS, Phase II of the municipal marketing program involves contracting with a
consultant for the solicitation, negotiation, and implementation of the program, including,
without limitation, soliciting and entering into municipal marketing agreements with
business entities; and
i
WHEREAS, the Phase I Agreement with TSG allowed for the City, at its sole option, to.
engage TSG for Phase 11 of the municipal marketing program; and
WHEREAS, TSG is an industry leader in the development and implementation of
municipal marketing programs; and
WHEREAS, the City Administration recommends proceeding with TSG to provide the
aforestated Phase 11 services; and
WHEREAS, the City has negotiated the attached Term Sheet with TSG, which
contemplates entering into, an agreement with TSG for an initial term of three (3) years,
with two (2) one year renewal options, at the City's discretion; and
WHEREAS, TSG's compensation under the Agreement would be on a commission
basis; accordingly, the City would pay TSG $49,500, as a reimbursable draw on future
commissions, plus a maximum of $15,000 in other expenses, for.TSG to implement
Phase II of a municipal marketing program.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE" CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission
hereby approve all material and substantive terms of the Agreement between the City
and The Superlative Group (TSG), as the successful proposer pursuant to Request For
Proposals (RFP) No. 06-04/05,. for the implementation of Phase it of a municipal
marketing program; authorizing the City Manager and City Attorney (or their respective
designees) to finalize the Agreement, based on the terms in the attached Term Sheet;
and, should the City and TSG successfully negotiate and finalize said Agreement,
authorizing the Mayor and City Clerk to execute the final Agreement.
PASSED AND ADOPTED THIS DAY OF J Ghky(� 10.
ATTEST:
CITY CLERK MAYOR
APPROVED AS TO
FORM & LANGUAGE -
TAAGENDAl201Wanuary 13\Regu1aAMuni Mktg comm reso 1 13 10.doc �► FO � UTI OIN
ITOM `6ate_"....`
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Approving All Material And Substantive Terms Of The
Agreement Between The City And The Superlative Group (TSG), As The Successful Proposer Pursuant To
Request For Proposals (RFP) No. 06 -04/05, For The Implementation Of Phase II Of A Municipal Marketing
Program; Further Authorizing The Mayor And City Clerk To Execute The Final Agreement; Said Agreement
Having An Initial Term Of Three (3) Years, With Two (2) One -Year Renewals, To Be Exercised At The City's Sole
Option And Discretion.
Key Intended Outcome Supported:
Maximize Miami Beach as a destination brand; improve City's overall financial health /maintain overall bond rating
Supporting Data (Surveys, Environmental Scan, etc
Approximately 40% of retail businesses surveyed rank Miami Beach as one of the best places to do business; 61%
would recommend Miami Beach as a place to do business;
Issue:
Should the City Commission approve the agreement with The Superlative Group for Phase II of a municipal marketing
p rogram to generate revenues for the City from sponsorship and partnership opportunities?
Item Summa /Recommendation:
In' 2005, the City issued .RFP NO. 06 -04/05 for the purpose of implementing a .municipal marketing program. Municipal
Marketing, or corporate sponsorship, is designed to "link complimentary corporate brands for mutual benefit." For cities, this
represents an opportunity to generate non -tax revenues, to provide services or goods at no cost to residents, and to provide
promotional opportunity for the City that may attract residents, businesses or visitors. For business partners, the benefit is
typically some form of advertising, public relations or visible recognition, with an end goal of further promoting their brand.
Developing and implementing a successful municipal marketing program requires -inventorying City assets, determining the
sponsorship marketing value of the assets, developing sponsorship management policy, the actual marketing of the assets
and negotiating sponsorship contracts. As such, the City determined that professional assistance was desirable and issued
an RFP for services to be broken down into two phases: Phase I — Development. of Asset Inventory/valuation, Policy
Document and Strategic Plan; and Phase II — identification, marketing and negotiation of sponsorships /partnerships. The City
retained the right to use the entity contracted to produce Phase I for the Phase If work. A final agreement was executed with
- The Superlative Group (TSG) on March 22, 2007, for Phase 1 of the program. TSG provided the three deliverables in Phase 1
to the City. The deliverables were presented to the Finance and Citywide Projects Committee, who subsequently directed staff
to negotiate an agreement with TSG for Phase II work. The proposed agreement provides for a commission system. However,
the 'City negotiated a tiered commission, as well as a "draw versus commission' in lieu of a retainer fee. The draw is
reimbursed to the City from commissions earned. As negotiated, TSG would receive up to $5,500 per month for up to nine (9)
months of draw versus commission. In addition, TSG would receive up to $15,000 in reimbursable expenses associated with
the marketing of the sponsorship /partnership agreements. The City of Miami Beach enjoys a positive brand image that is
attractive to a variety of potential sponsors. While municipal marketing programs provide revenue enhancement opportunities
for the City, it is recognized that whatever municipal marketing opportunity is pursued by the City needs to be compatible with
the City's goals and expectations. It is recommended that the Mayor and Commission approve the proposed resolution to
proceed with Phase . 2 of the municipal marketing program, and approve the proposed agreement with The Superlative Group,
for the terms and conditions set forth in the attached RFP.
Advisory Board Recommendation:
Finance and Citywide Projects Committee June 25, 2009, November 17, 2009
Financial Information: -
Source Amount Account
Funds: 1 $64,500 FYI General Fund Operating Contingency Account # 011- 9975 - 000356
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O I Total $64,500 $49,500 is a recoverable draw against commission that will reimburse
Acct. 011 -9975- 000356
Financial Impact Summary:"
The municipal marketing program is designed to generate revenues to the City, or provide savings through cost
avoidance. The potential revenues are not known at this time, but are expected to exceed the consultant costs.
City Clerk's Office Legislative Tracking:
Hilda M. Fernandez/Mariu Emmons
Sign-Offs: -
Department Director Assistant City Manager City Manager
MAM I B
EH AC AGENDA ITE 9 DATE 1-1
MIAMI BEACH
< City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, %v~rniamibeochf1.g0y
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Co ission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 13, 2010
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING ALL MATERIAL
AND SUBSTANTIVE TERMS OF THE AGREEMENT BETWEEN THE CITY AND THE
SUPERLATIVE GROUP (TSG), AS THE SUCCESSFUL PROPOSER PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 06- 04/05, FOR THE IMPLEMENTATION OF
PHASE II OF A MUNICIPAL MARKETING PROGRAM; FURTHER'AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT; SAID AGREEMENT
HAVING AN INITIAL TERM OF THREE (3) YEARS, WITH TWO (2) ONE -YEAR
RENEWALS, TO BE EXERCISED AT THE CITY'S SOLE OPTION AND DISCRETION.
RECOMMENDATION:
Approve the resolution.
BACKGROUND:
Municipal Marketing, or corporate, sponsorship, is designed to "link complimentary corporate brands for.
mutual benefit. "For cities, this represents an opportunity to generate non -tax revenues, to provide services or
goods at no cost to residents, and to provide promotional opportunity for the City that may attract residents,
businesses or visitors. For business partners, the benefit is typically some form of advertising, public relations
or visible recognition, with an end goal of further promoting their brand. While the.business gains f nancially
by marketing advantage .and /or customer loyalty enhancement, the advantage to the City-,is primarily
financial. Businesses will pay the City for the ability to use or link with our City image and identity, especially
as our City enjoys an excellent public image and is considered a strong "brand." Miami Beach is especially
well positioned to implement this now well - established model for generating additional revenue.
The suggestion that that City implement a municipal marketing program was first introduced by the Parks and
Recreation Programs Blue Ribbon Citizen's Committee as a mechanism to assist in funding program costs .
- for our Parks Department. The City established. a Development Coordinator position, whose primary
responsibility was to identify potential advertising and sponsorship opportunities. The Development
Coordinator subsequently researched current successful municipal marketing consultant practices; reviewed
other local government municipal marketing programs; formed and led a City of Miami Beach municipal'
` marketing evaluation team; interviewed several leading national municipal marketing; and determined that
the City of Miami Beach had significant potential for success through a professionally structured and
managed municipal marketing program.
Developing and implementing a successful municipal marketing program requires inventorying City assets,
determining the sponsorship marketing value of the assets, developing sponsorship management policy, the
actual marketing of the assets and negotiating sponsorship contracts. As such, the City determined that
.professional assistance was desirable and issued an RFP for services.
A competitive (RFP) process was issued in 2004 and the City received proposals from a variety of
consultants proposing to assist the City of Miami Beach with the development and implementation of a
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Municipal Marketing
I
municipal marketing program pursuant to Request for Proposals (RFP) No. 66- 02/03. The municipal
marketing program was intended to broadly market the City of Miami Beach and to attract revenues to the ,
City of Miami Beach by allowing sponsoring entities to identify with the City. However, due to a bid challenge
and subsequent investigation, no action was taken at that time. On February 23, 2005, the Commission .
approved the issuance of a second competitive process (RFP NO. 06- 04/05) for the Development and
Implementation of a Citywide Corporate Marketing and Sponsorship Program. Four responses were received
for that competitive process; with the Commission selecting IMG, an industry leader in municipal marketing.
In particular, IMG had supported municipal marketing plans in several U.S. Cities. The Commission further
approved that if we were unable to negotiate an agreement with IMG, then we were authorized to negotiate
with the second ranked proposer, The Superlative Group.
The proposed agreement was to be divided into two phases (as described in the RFP):
1. Phase I: Conducting an inventory of existing and prospective tangible and non - tangible marketing- assets;
2) Developing a comprehensive sponsorship policy; and 3) Developing a strategic plan for marketing
assets.
2. Phase 11: At its sole discretion, the City could elect to:
• Terminate the corporate sponsorship program; or,
• Continue the program with the marketing of inventoried and valued assets with the vendor that
performed work outlined in Phase], paying earned commissions to the vendor through that process;
or,
• Continue the program through issuance of an RFP for a new vendor to market the inventoried assets,
paying earned commissions to the new vendor through that process.
` This Phase II work would consist of marketing the City's assets, to include developing sample rights
packages for the marketplace; assisting in the evaluation and development of sponsorship RFP' s; identifying
corporate sponsors; preparing reports and presentations on the City's municipal marketing program, as
directed by the City; assisting in contract negotiations; and providing advice in implementing /managing -
sponsorships. The decision to enter into Phase II work, or to proceed to implement the sponsorship program,
and with which consultant, is solely that of the City Commission.
IMG proposed a fee structure that provided a monthly fee of $20,000 per month for the first 12 months of the
relationship (plus approved expenses), and a 20% sales commission on all amounts generated for the City;
this included a credit to the City of up to 50% of any fees received against the commissions generated if they
were selected for Phase 2. After several months of discussions, the City negotiated a fee of $60,000 plus
expenses. However, in February 2006, IMG notified the City that they would not be continuing their
negotiations and would not execute their agreement with the City, as they were reconsidering the continued
participation in municipal marketing programs at that time.
Following consultation with the City Attorney's Office, and as approved by the Commission action, staff
began negotiations with the second - ranked proposer; The Superlative Group, for Phase 1 of the program. 'A
final agreement was executed effective March 22, 2007 for a contract amount of $39,000 (plus expenses) to
provide the three deliverables in Phase 1. TSG is a privately held corporation headquartered in Cleveland,
Ohio, with offices in Cincinnati, Detroit and Miami. This full service marketing, consulting and sales
corporation was established in January, 1994, and they have a long history of working with entities to create
mutually beneficial tie -ins to attractive events, places and personalities. Their clients include large
corporations, professional sports teams, city and county governments, sports and entertainment
properties /venues and colleges and universities. Current government partners include the Greater Cleveland
RTA, Chicago Parks and Sedwick, Kansas.
In consultation with the City's Development Coordinator, The Superlative Group developed a strategy for the
compilation of the information for an Asset Inventory and Valuation Report, one of three deliverables in
Phase I. This process entailed interviewing City Departments, conducting site visits to assess potential
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Municipal Marketing
sponsorship opportunities within the City and researching potential values and marketability of the assets
based on-comparable opportunities, and the current market. Subsequently, The Superlative Group was to
complete the second and third deliverables, the. Strategic Plan and the Policy Document. The Asset
Inventory and Valuation Report was completed in late 2007 and required revisions and updates to reflect
new opportunities. In early 2008, it was concluded that all three deliverables should be completed for
presentation to the City Commission concurrently. The remaining deliverables were subsequently provided
for review. The departure of the Development Coordinator (the contract administrator for this project) resulted
in an unanticipated delay in completing the internal review of the documents. The deliverables were
presented to the Finance and Citywide Committee at their June, 2009 meeting. It was requested that staff .
return with additional information, including a proposal for terms for an agreement with The Superlative
Group for Phase II. Staff subsequently provided additional information to the Committee in November, and
received direction to bring ,proposed terms of an agreement to the Commission for consideration.
The three deliverables produced by TSG, and previously provided to the Commission, include the following:
1. Asset Inventory and Valuation Repo This report provides an explanation of the municipal marketing
approach, municipal marketing opportunities, successful examples of municipal marketing and a matrix of
assets identified throughout the City for potential sponsorship opportunities. The matrix provides a broad look
at the types of assets owned by the City that may provide a value to a sponsor; these may be facilities,
programs or events, or other intangibles. A brief description of each asset is given, as well as a description of
the rights available, a value rating and an estimate of the level of difficulty in "selling" that asset. In some
instances where no benchmarks may.exist, it is difficult to assess a value for an asset. In other cases,
sufficient information was not available at the time the report was completed to assess a value. The matrix
also includes a listing - of other assets or sponsorships the assets can be packaged with to maximize interest
and value. In most cases, the value provided anticipates that the sponsorship includes a "package" of
opportunities for the.sponsor. It should be noted that although naming rights typically present the highest
return, they are also typically the most difficult to negotiate, and may not be the priority of the City for
aesthetic or other reasons.
2. Strategic Plan: This report uses the information from the Asset Inventory and Valuation Report to provide a
recommended plan for the implementation of the municipal marketing plan. This Strategic Plan is a working
plan that will incorporate the comments and suggestions of the Commission and other input, but presents the
framework for the implementation of the program.
3. Policy Document: This deliverable was intended to outline the general policies to be considered in the
implementation of a municipal marketing program. Much like the Strategic Plan, it is intended to provide an
outline of suggested policies for the consideration of the City Commission based on typical municipal
marketing programs, but reflecting our typical processes. It is expected that the document will be further
amended following review and input by the Commission. It should be noted that community input and
feedback is important in the implementation of the municipal marketing program, as this ensures an
understanding of the program's goals and how they compliment.
In unison, the three documents provide the City with documents that will assist the City in developing and
implementing a municipal marketing program, and form the framework for the' anticipated second phase of
the program — the identification, negotiation and contracting of municipal marketing partners.
CURRENTIINTERNAL CORPORATE MARKETING EFFORTS:
An effective corporate marketing program involves market research and review of existing City assets to
ascertain a value to the business. This "value" maybe in the form of name recognition, association or access
to possible "clients." The City has engaged in sponsorship efforts for events such as Sleepless municipal
marketing was the agreement with IzodiPVH for the provision of uniforms for our Ocean Rescue, Pool
Lifeguard, Fire Rescue and Golf Club personnel. This agreement provided uniforms at no cost to the City. In
exchange, Izod was provided the ability to identify itself as "the official outfitter' of these departments, and
Page 4 of 6
Municipal Marketing
place their logo (with city approval of location and size) on the products they provided at no cost. No cash
commitment was made by the 'corporation, and the marketing element of the program never fully
materialized. The City is in the final year of deliverables and Izod has advised us that they will not be
pursuing renewal. The identification of a replacement provider would be a priority under the municipal
marketing program.
PROPOSED STRUCTURE OF A MUNICIPAL MARKETING PROGRAM:
Should the City Commission decide to proceed with the implementation of a municipal marketing program
(Phase 2), it is proposed that an agreement with a professional municipal marketing company be considered
to assist the City in identifying and pursuing municipal marketing opportunities with partners that include
national and /or international brands. The City employee's responsibility is act as contract monitor for the
program. However, it is our expectation that the City employee will continue to pursue these smaller -scale
municipal marketing opportunities to assist with "one -off' events (grand openings, special events, etc.),
advertising off -sets (such as the pooper scooper bags), and other opportunities generated or solicited to
offset programming or other City hard costs. While it is anticipated that the contracted municipal marketing
company shall serve as the primary City representative in pursuing the more lucrative municipal marketing
opportunities, the City occasionally receives unsolicited expressions of interest from organizations or
corporations interested in partnering with the City. The City will assess the opportunity and may decide
whether to pursue the partnership in- house, or whether to request the assistance of the City's municipal
marketing company. In those instances when the City pursues the partnership directly, there is no payment,
or other consideration provided to the municipal marketing company. It is important to note that these
opportunities are likely to be less lucrative than the types of opportunities typically pursued and developed by
municipal marketing companies.
As previously noted, the City contracted with The Superlative Group to provide the services in Phase I of the
Municipal Marketing program. In light of the potential for revenues, as well as brand recognition for the City,
at this time it is recommended that the City consider pursuing implementation of Phase 2 with The
Superlative Group, as provided for in the RFP.
Staff researched typical contractual terms for municipal marketing programs, including models for
commissions on agreements secured. Terms were negotiated with The Superlative Group for Phase 2 based
on research on other similar agreements. These terms, delineated in Attachment A, include a "draw versus
commission" model that provides a payment to the company during the development of potential prospects,
but that is recoverable by the City from any commissions resulting from agreements with corporate entities.
This "draw" model has become more common in recent years, although models with direct, fixed retainers .
also .currently exist. The draws are intended to cover the municipal marketing staffs investment in
researching and negotiating potential municipal marketing partners for the City, especially as there is no
guarantee that the City will ultimately approve any municipal marketing partnership presented by them for the
City's consideration. In addition, this draw covers the cost of staff assisting in the development, review, etc.
process . relating to any competitive process that may be used for the selection of a municipal marketing
partner, as well as their assistance in negotiating terms and in assisting staff with the development of
subsequent agreements. The proposed source of the draw is the General Fund Contingency, which would
then be reimbursed from TSG's commissions.
= The attached also reflects a tiered commission model that reduces the percentage of commission that can
be earned based on the value of the municipal marketing agreement. It should be noted that most typical
municipal marketing agreements have a flat commission structure. The commission structure includes a
percentage for new revenue opportunities, as well as for budgeted cost avoidance opportunities. Budgeted
cost avoidance measures mean those items previously included in the City's annual adopted budget. This
commission would be paid if and only if the City would have purchased these items from another source
outside of the scope of the agreement. The City has no obligation to pay commissions where the benefits are
of a non -cash nature, including but not limited to the provision of property.or services to the City, when such
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Municipal Marketing
property or services are either not currently provided or purchased by the City. A commission is also provided
for renewal terms (one .renewal period). As previously noted, the City retains the right to enter into
negotiations directly with any business entity that approaches the City; no commission would be paid to TSG
unless their assistance is requested. A separate line item allocation is provided for reimbursable expenses.
These expenses are typically travel, and TSG will follow the City's travel policies and standards utilizing a
reimbursement model. This amount is capped as indicated and will be monitored by staff.
TARGETED iNITIATIVESIBENCHMARKS
At the November Finance and Citywide Projects Committee, it was requested that TSG provide a proposed
list of targeted opportunities. Attached, please find information provided by TSG last summer relating to initial
opportunities they intend to pursue, which include opportunities identified in the Asset Inventory and
Valuation document (Attachment B). This was a very conservative list of possible revenues, and it will be
further expanded by other short- term and long -term opportunities as they are researched following contract
approval, as they may present themselves, or in response to requests by the City to pursue specific expense-
offset/revenue- enhancing opportunities. For example, a significant cost avoidance priority is the identification
of a replacement sponsor as our official outfitter of our Ocean Rescue, Pool Lifeguards, Fire Rescue, as
Izod /PVH's agreement with the City is expiring, and they have advised us they will not be renewing.
Recent municipal marketing opportunities provide a sense of potential partnerships, such as San Diego's
partnership with Pepsi ( "Official. Provider of Cold Drink Vending Machines, $6.6 million /12 yr agreement),
Verizon (Official Wireless Partner, $2.5 million /10 year-agreement), and General. Motors (Official vehicle
partner, 34 vehicles /two years); and Long Beach's partnership with Coca Cola (Official Beverage, $3
million /10 year agreement). As you may have seen in this week's Miami Herald, Florida International
'University just approved a five -year agreement with Pepsi as the official beverage of the University, with a
value described as being a "multi- million dollar" deal (Attachment C). Similar to the San Diego and Long
Beach agreements, these partnerships not only include revenues, but also other in -kind supports and
benefits.
NEXT STEPS
Should the Committee approve the implementation of Phase 2 with The Superlative Group, and approve the
proposed agreement, it is anticipated that the following steps would occur:
1) Identification of top product/sponsorship categories and priorities (This includes both short-term and long-
term prospects
2) Development of municipal marketing materials
3) Development of competitive processes (as may be appropriate); assistance in negotiating packages
4) Presentation of prospective, municipal marketing partners for the City's consideration.
Appropriate community vetting to ensure understanding of the goals of specific targeted efforts will occur as -
opportunities are being developed to address any concerns. TSG will assist staff in determining what, if any,
City ordinances may require amendment to accomplish some of the goals or particular municipal marketing
strategies. These proposed amendments would, of course, follow the typical commission review and
approval process.
CONCLUSION:
The City of Miami Beach enjoys a positive brand image that is attractive to a variety of potential sponsors.
The City has engaged in municipal marketing in a number of occasions, with the most recent example the
Izod sponsorship agreement that provided free uniforms to our Ocean Rescue, Pool Lifeguards, Fire Rescue
and Miami Beach Golf Club personnel, at no cost to the City. However, we believe opportunities exist to
pursue sponsorship partnerships to offset existing operational costs for the City, and /or generate new
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Municipal Marketing
revenue. We also believe such a program can be implemented in a manner that is sensitive to concerns
regarding commercialization, especially in our historic city /districts.
While municipal marketing programs provide revenue enhancement opportunities for the City,..it is
recognized that whatever municipal marketing opportunity is pursued by the City needs to be compatible with
the City's goals. and expectations. There are many different opportunities for municipal marketing
partnerships beyond naming rights, including opportunities that have the added benefit of assisting in the
marketing of our destination. It is recommended that the Mayor and Commission approve the proposed
resolution to proceed with Phase 2 of the municipal marketing program, and approve the proposed
agreement with The Superlative Group, for the terms and conditions set forth in the attached, as provided for
in the RFP.
JMG /hmf
TAAGENDA\2010\January 13U2egular\Muni Mktg Comm memo 1 .13 10.doc
ATTACHMENT A
TERM SHEET
THE SUPERLATIVE GROUP, INC. TSG MUNICIPAL MARKETING AGREEMENT
1. Term Three (3) year initial term.
Two 2 one 1 year renewal options, at City's sole discretion.
2. Fee Initial Draw: TSG would be compensated based on "draws" against
commissions, up to $49,500 for the first nine (9) months of the Agreement.
Draws would be paid on a monthly basis of $5,500 per month.
Commission Structure: For cumulative gross revenues secured for the City
during the term of the Agreement:
15% commission on $0- $250,000 in gross revenues (GR) to City
12% commission on $250,001 - $500,000 in GR to City.
10% commission on $500,00141,000,000 in GR to City.
6% commission on $1,000,000+ in GR to City
Additionally:
7% commission on Renewals (% of GR; for first renewal only)
35% commission on licensing agreements (to include monitoring)
10% Commission on budgeted cost avoidance
Reimbursable expenses: capped at $15,000; subject to City approval and
consistent with City policies.
Additional draws and Reimbursable Expenses maybe negotiated only after the
City has recovered 100% of initial draw and 100% of the actual costs of any
reimbursable expenses. The decision to proceed with additional draws and/or
reimbursable expense allocations shall be solely at the City's discretion.
Additional Services: The City may, at its option, negotiate a commission
structure on a case -by -case basis should the City wish to request the
assistance of TSG with any municipal marketing agreement the City.-currently
has in place, or negotiates directly with a potential sponsor for an opportunity
identified by the City independent of TSG.
3. Targeted Initiatives 1) Develop and present within 90 days of Agreement execution a list of
and benchmarks' corporate prospects (local, regional, national and/or international) to pursue,
both short term (12 — 18 months) and long term (18 -36 months), and develop a
marketing and sales plan for these prospects
2) Develop, in cooperation with the City's Communications staff, marketing
materials (within 90 days of Agreement execution)
3) Assist the City in the development of competitive solicitation (i.e. RFP, RFQ,
ITB) for soliciting and securing corporate partnerships, as may be appropriate
for each type of municipal marketing opportunity. This would include marketing
the opportunity to potential partners, and assisting the City in the evaluation of
proposals received.
4) Assist the City in negotiating the municipal marketing partnership agreement
terms with selected partners, and in the development of the municipal
marketing partnership agreement document.
5) Develop a plan for managing the fulfillment obligations for each successful
municipal marketing agreement.
4. Termination For cause and for convenience.
provisions TSG shall not receive any direct compensation or financial interest from any
business entity AGENT solicits (or presents to CITY) to enter into an
agreement with the CITY.
Under no circumstances shall CITY be liable to TSG or any third party claimin
by or through TSG for consequential damages or lost rofiits.
S. Sales After Terms Should TSG be in negotiations with a potential sponsor during CITY contract
expiration, non - renewal or in default, the CITY will be allowed to follow up on
p ending contacts/corporate s onsors.
6. Naming Rights and City reserves sole 'right of approval over all naming and sponsorship
Sponsorships opportunities.
7. Ownership of All writings, documents or information produced by the consultant pursuant to
Documents the provision of the agreement is the exclusive property of the City.
CADocuments and Settings \cmgrferh \Desktop \Corp Sponsorship Term Sheet 11 17 09.doc
d
ATTACHMENT B
Superlative
The Superlative Group, Inc. Hilda M. Fernandez
1267 West 91h Street I Suite 200 Assistant City Manager
Cleveland, Ohio 44113 Miami Beach
Phone: 216.592.9400 1700 Convention Center Drive
Faux: 216.592.9405 Miami Beach, Florida 33139
info @superlativegr•oup•com August 19, 2009
www.superiativegroup.corn
Dear Hilda,
Mariu Emmons has requested a general forecast for the sales phase of the Miami
Beach Municipal Marketing Program.
We understand that due to the downturn in the economy and the declining real
estate tax base, Miami Beach needs to raise funds to maintain city services.
Superlative is happy to submit the following estimate realizing that we have not
officially set a list of priorities with the City.
In order to calculate revenues we have taken one item from each section of the Asset
Inventory and Valuation report. Each item is assigned a range of value we would
expect to raise with an educated guess on the lengths of the contract based on our
experience selling similar sponsorships.
Price Sponsorship
Range Term Average
Parks and Recreation DeRartment
Athletic Fields 2 5 - 75K 5 years 45K
Cultural Affairs
Colony Theater Presenting to -4oK 5 years 25K
Public Works — Vehicle Inventory
" Official Truck" of Miami Beach 3o -6oK 5 years 45K
Parking Department
Pay Stations 5 -15K 3 years loK
Other Available Inventories
Soft Drink Beverage Vending: "Official" 25-
Partner looK /year to years 57K
Licensing Revenue of Branded "Official
Product of South Beach" looK 3 years looK
Total * *:
$282,000 /annually
** Does not include % of licensed apparel on other products.
In addition, we believe that we could, over the course of the next 12 months, set up a
Licensing /Sponsorship in a swimsuit or sunscreen category which could be an
extremely lucrative venture for Miami Beach.
Please let me know your thoughts.
Y ck nd good selling,
. G 1 gh r
m
ATTACHMENT C,
t
FLORIDA INTERNATIONAL UNIVERSITY f ' qj`,�
FEU signs 5 -year
Pepsi' agreement
BY LUISA.YANEZ• partner of FIU for many years to sity athletic programs and cross -pro-
fyanez @MiamiHerald.com come," said Assistant Vice President motional opportunities on www.fius-
Florida International University for Business Services Jeff Krablin, ports.conL
has reached an agreement with the who oversaw the bidding process Another valuable element of the
Pepsi Bottling .Group that will make and helped negotiate the contract, agreement.is Pepsi's support for the
its signature soft drink the universi- according to a news release issued university's green initiatives.
ty's official beverage. Monday by FIU. Pepsi will help to promote new
That means only Pepsi and its, As the university's official bever- energy efficient vending machines
other products will be sold at FIU. age partner, Pepsi will also sponsor on all Flu campuses.
Pepsi is replacing Coca -Cola. TIU's athletic program, said Paula "Environmental sustainability is
The new five -year agreement, Hopkins, regional sales director at something we take very seriously at
renewable for up to nine years, is Pepsi. FIU," said Krablin. "PBG'is a partner
described as being a multimillion- That includes Pepsi signage at all who shares that commitment, .and
dollar deal. FIU athletic facilities, exclusive bev- we look forward to working with
"We believe'Pepsi will be a good erage marketing rights for All univer- them to improve .our community."
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, FLORIDA
AND
THE SUPERLATIVE GROUP, INC.
FOR PHASE I PROFESSIONAL SERVICES
IN CORPORATE SPONSORSHIP MARKETING
THIS AGREEMENT made and entered into this 22 nd day of March, 2007, by and
between the CITY OF MIAMI BEACH, FLORIDA (hereinafter referred to as City), a
municipal corporation, having its principal offices at 1700 Convention Center Drive,
— Miami Beach, Florida, 33139, and THE SUPERLATIVE GROUP, INC. (hereinafter
referred to as Consultant), an Ohio corporation, having its principal office at 2706
Franklin Boulevard, Cleveland, Ohio 44113.
SECTION I
DEFINITIONS
Agreement: This Agreement between the. City and Consultant.
City Manager: The Chief Administrative Officer of the City.
Consultant: For the purposes of this Agreement, Consultant shall be deemed
to be an independent Consultant, and not an agent or employee of
the City.
Services: All services, work and actions by the Consultant performed
pursuant to or undertaken under this Agreement, as described in
Section 2.
Fee: Amount paid to the Consultant to cover the costs of the Services.
Risk Manager: The Risk Manager of the City, with offices at 1700 Convention
Center Drive, Third Floor, Miami Beach, Florida 33139, telephone
number (305) 673-7000, Ext. 6435, and fax number (305) 673 -
7023.
Proposal
Documents: "Proposal Documents" shall mean City Request for Proposals, No.
06 -04/05 for the Development and Implementation of a Citywide
Corporate Marketing and Sponsorship Program, together with all
amendments thereto by the City issued in contemplation of this
Agreement, and the Consultant's proposal in response thereto
(Proposal Documents), all of which are incorporated by reference
hereto and made a part hereof; provided, however, that in the
event of a conflict between the Proposal Documents and this
Agreement, the terms of this Agreement shall supercede and
prevail.
SECTION 2
SCOPE OF WORK
The Consultant agrees to provide the City with the following services
(collectively, the Services):
2.1 Phase I Services:
In Phase I, the Consultant will research, write and deliver to the City three
reports with the goal of enabling the City to determine whether it might profitably and
appropriately operate a Corporate Sponsorship Program. The three deliverables are:
1) Marketing Asset Inventory and Valuation A written inventory of existing and
prospective tangible and non - tangible marketing assets, including an estimate of
their potential sponsorship financial value;
2) Comprehensive Sponsorship Policy A written policy reflecting recent
municipal corporate sponsorship policy guidelines employed by cities in the U. S.
with corporate sponsorship marketing potentials similar to those of the City,of
Miami Beach.
3) Strategic Plan for Marketing Assets A written plan for maximizing the
corporate sponsorship potential of City of Miami Beach assets through
2
i
marketing of those assets.
2.2 Objective 1: Inventory and Valuation of Existing and Prospective Tangible and
Non- tangible Marketing Assets
The inventory should include, but not be limited to:
1. On -site visitations and .interviews of City department heads and other personnel,
as may be deemed necessary by the City Manager or his designee, in his or her
reasonable discretion or determination, as a planning step to understanding the
existing marketing and sponsorship activity level.
These visitations /interviews will include, but not be limited to, supervisory City
personnel responsible for:
+ Building Department
• City -owned Marinas
• Children's Affairs
• Tourism & Cultural Affairs
• Community Development
• Economic Development
• Historic Preservation
• Finance Department
• Fire Department
• Information Technology
• The Mayor and Members of the City Commission
• Office of Budget & Performance Improvement
• Parking Department
• Police Department
• Parks & Recreation Department
• Planning Department
• Procurement Division
• Sanitation Department
• City -owned visitor and convention, entertainment and cultural .facilities
including, without limitation, the Miami Beach Convention Center, the
3
Jackie Gleason Center of the Performing Arts, the Bass Museum, the
Colony Theater, the Byron Carlyle Theater, the Miami Beach Botanical
Garden.
The objective of these visitations/interviews would be to gain an understanding of
the aforestated respected City department and division goals, plans, commitments,
resources and all other data required to prepare a Sponsorship Marketing Asset
Inventory and Valuation. Such data will be consolidated into a spreadsheet format to
provide a comprehensive asset database.
With approval of and direction from the City Manager and/or his designee, the
Consultant will also visit/interview outside organizations and businesses whose
activities impinge on the overall success of the City.
These include, but are not limited to:
• Health agencies & Hospitals
• Beach Concessionaires
• Other Vending Concessionaires
• County and State Department of Transportation
• Entertainment and Cultural Facilities within the City (such as the
Wolfsonian Museum, The Bass, Museum, the Lincoln Theater, the Miami
City Ballet, New World Symphony, and the Ziff Jewish Museum)
• Miami Beach Golf Courses
• Miami Beach Tennis Facilities
• City of Miami Beach Government Access Cable TV Station
The Consultant also will review all contracts for special events (as further
outlined in the Proposal Documents.)
The Consultant will also educate City personnel and contractors and consultants
regarding the potential of the corporate sponsorship program to enhance the City of
Miami Beach brand, to strengthen the City's economic base, and to attract additional
revenue(s).
2. Examination of - any current City asset management agreements, including but not
limited to agreements for:
a. Beach Concessions;
4
b. Golf Courses;
c. Vending Machines;
d. Tennis Centers;
e. Jackie Gleason Theater of the Performing Arts; and
f. Miami Beach Convention Center.
3. Examination of City marketing materials and other information on past
sponsorship efforts, and the level of success.
4. Provide a deliverable list of practical licensing opportunities for the City of Miami
Beach.
5. Add /suggest to the City other sponsorship opportunities.
6. Organize all data - collected into a database (e.g., spreadsheet format or other
user- friendly format). Examples of data collected are as follows:
o Inventory Item Category (advertising, event, preferred vendor, capital
project, naming rights, etc.);
o Address /physical location, description, date added to the database,
utilization statistics;
o Pedestrian, vehicular, viewership or other relevant exposure data;
o Marketing opportunity available (advertising, branding, promotion, etc.);
o Rights available, date available, etc.;
o Any sales history (to whom, what price, when, etc.);
o Any known conflicts /limitations on selling;
o Contact address, phone fax and e-mail;
o Terms (length, price, options to renew);
o Rights granted;
5
o Any encumbered reversionary rights;
o Legal /policy limitations on rights;
o Suggested, pricing;
o Assessment of the value range for assets;
o Suggested /possible bundling opportunities with other assets;
o Assessment of the degree of difficulty to obtain a sponsorship
agreement; and
o Indication of priority.
2.3 Ob ective 2: Create a Comprehensive Sponsorship Policy
Write a comprehensive Corporate Sponsorship Policy tailored to the City of
Miami Beach and reflecting industry state -of- the -art "best practices." This document
will include examples of how other cities have developed similar programs and the
results achieved Consultant shall:
1) Review current sponsorship acceptance procedures.
2) Participate in and support process to match community /City
Commission Expectations, and community sensitivities to possible
sponsorship opportunities.
3) Specify the approach to be used to address the expected sponsorship
opportunities.
4) Specify how the policy would address or impact existing financial
planning and economic development for the City.
5) Submit draft policy. Present/discuss developing policy as directed by
City.
6) Identify any conflicts and /or limitations of applicable City of Miami
Beach Charter and Code provisions,( vis -a -vis implementation of a
Corporate Sponsorship Program).
2.4 Obiective 3: Develop Strategic Plan for Marketing Assets
Write a Strategic Plan for marketing of City of Miami Beach assets identified and
6
evaluated through Objectives 1 and 2 hereof. This report will include, but not be limited
to the following:
1) Prioritize the database.
2) Develop a written strategy document.
3) Assess the City's potential and recommend process /policy to earn
income from Product Licensing Agreements.
4) Assess "Partner Designation /Use of Logo" opportunities.
5) Assess "Product Category Exclusivity ".
6) Identify "Cost Reduction Opportunities" for items currently purchased
by the City of Miami Beach.
7) Assess the City's "Licensing" potential by conducting a brand review and
assessment, including an analysis of target categories and sub-
categories provision of a licensing marketing plan, if such potential is
found to exist.
SECTION 3
COMPENSATION
3.1 FIXED FEE
Consultant shall be paid a fixed fee of $39,000, for the Services as set forth in
Section 2 which Services shall be undertaken and completed in accordance with the
timelines set forth in Section 4.5 hereof. Said fixed fee of $39,000, shall be paid as
follows:
a. $26,500 upon satisfactory completion and delivery of the
Marketable Asset Database as described in Section 2.2 hereof,
including a financial valuation of enumerated assets.
b. $4,000 upon satisfactory completion and delivery.of a Corporate
Sponsorship Policy as described in Section 2.3 hereof.
C. $8,500 upon satisfactory completion and delivery of a Strategic
Marketing Plan as described in Section 2.4 hereof.
Travel expenses will be limited to a not to exceed reimbursable amount of
7
$7,500 for the entire term of this Agreement. Consultant shall provide City with receipts
and expense reports.
The.parties further acknowledge and agree that, upon satisfactory completion
and delivery of the Services, as set forth herein, the City shall have no obligation to
proceed with Consultant, and /or otherwise retain Consultant, for Phase 11 services, if
any. Accordingly, the City shall have no liability to Consultant should it decide, at its
sole discretion and election, not to proceed.
Notwithstanding the preceding paragraph, in the event City and Consultant
negotiate and enter into a separate agreement, or duly approved and executed
amendment to this Agreement, for the provision of Phase I I services, then Consultant
agrees to refund the City 50% of all fees paid to Consultant, or $19,500, said
reimbursement amount to be paid to the City from commissions earned on the first $2-
million dollars worth of sponsorship sales on behalf of the City.
3.2 INVOICING
Consultant shall submit an invoice, which includes the purchase order number
and a detailed description of the Services provided.
3.3 METHOD OF PAYMENT
Upon review of approval of Consultant's invoice by the City, payments shall be
made for Services satisfactorily rendered within thirty (30) days of the City's receipt of
same. Consultant shall mail all invoices to:
City of Miami Beach
Accounts Payable
1700 Convention Center Drive, Floor
Miami Beach, Florida 33139
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SECTION 4
GENERAL PROVISIONS
4.1 RESPONSIBILITY OF THE CONSULTANT
With respect to the performance of the Services, the Consultant shall exercise
that degree of skill, care, efficiency and diligence normally exercised by recognized
professionals with - respect to the performance of comparable services. In its
performance of the Services, the Consultant shall comply with all applicable laws,
ordinances, and regulations of the City, Miami-Dade County, State of Florida, and
Federal Government.
4.2 RESPONSIBILITY OF CITY
The City's cooperation will, at a minimum, consist of the following:
a) Designation of an individual who shall serve as the contact person
between Consultant and the City, and who shall serve as the City's
project manager for this Agreement.
b) Coordinating and providing reasonable access to relevant City personnel.
C) Coordinating and providing reasonable access to relevant City
documents, including asset management agreements, marketing
materials, and historical and financial information.
4.3 PUBLIC ENTITY CRIMES
A State of Florida Form PUR 7068, Sworn Statement under Section
287.133(3)(a) Florida Statute on Public Entity Crimes shall be filed with the City's
Procurement Division, prior to commencement of the Services herein.
4.4 DURATION AND EXTENT OF AGREEMENT TERM
The term of this Agreement shall be for a period of one-year commencing on the
last date of execution of the Agreement by the parties hereto.
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4.5 TIME OF COMPLETION
Notwithstanding the term in Section 4.4 above, the Services to be rendered by
the Consultant shall be commenced upon receipt of a written Notice to Proceed from
the City (which notice shall be issued as soon as reasonably practicable following
execution of the Agreement by the parties hereto) and, thereafter, Consultant shall
diligently prosecute and complete the Services in accordance with the Timetable below.
The City recognizes that the nature of the Consultant's information gathering
process and shall support the simultaneous preparation of all three deliverables:
a.) Objective 1: Completion and delivery within 6-months of Notice to
Proceed.
b.) Objective 2: Completion and delivery within 8-months of Notice to
Proceed,
c.) Objective 3: Completion and delivery within 10- months of Notice to
Proceed.
4.6 INDEMNIFICATION
Consultant agrees to indemnify and hold harmless the City of Miami Beach and
its officers, employees and agents, from and against any and all actions, claims,
liabilities, losses, and expenses, including, but not limited to, attorneys' fees, for
personal, economic or bodily injury, wrongful death, loss of or damage to property, at
law or in equity, which may arise or be alleged to have arisen from the negligent acts,
errors, omissions or other wrongful conduct of the Consultant, its employees, agents,
sub-consultants, or any other person or entity acting under Consultant's control, in
connection with the Consultant's performance of the Services pursuant to this
Agreement; and to that extent, the Consultant shall pay all such claims and losses and
shall pay all such costs and judgments which may issue from any lawsuit arising from
such claims and losses, and shall pay all costs and attorneys' fees expended by the
City in the defense of such claims and losses, including appeals. The parties agree that
one percent (1 %) of the total compensation to the Consultant for performance of the
Services under this Agreement is the specific consideration from the City to the
10
Consultant for the Consultant's Indemnity Agreement.
The Consultant's obligation under this Subsection shall not include the obligation
to indemnify the City of Miami Beach and its officers, employees and - agents, from and
against any actions or claims which arise or are alleged to have arisen from negligent
acts or omissions or other wrongful conduct of the City and its officers, employees and
agents. The parties each agree to give the other party prompt notice of any claim
coming to its knowledge that in any way directly or indirectly affects the other party.
4.7 TERMINATION, SUSPENSION AND SANCTIONS
4.7.1 Termination for Cause
If the Consultant shall fail to fulfill in a timely manner, or otherwise violate
any of the covenants, agreements, or stipulations material to this Agreement, the City
shall thereupon have the right to terminate this Agreement for cause. Prior to
exercising its option to terminate for cause, the City shall notify the Consultant in writing
of its violation of the particular terms of this Agreement and shall grant Consultant
seven (7) days to cure such default. If such default remains uncured after seven (7)
days, the City, upon three (3) days' notice to Consultant, may terminate this Agreement
and the City shall be fully discharged from any and all liabilities, duties and terms
arising out of /or virtue of this Agreement, except for amounts due and owing to
Consultant for work deemed by the City to have been completed satisfactorily before
the effective date of termination.
Notwithstanding the above, the Consultant shall not be relieved of liability
to the City for damages sustained by the City by any breach of the Agreement by the
Consultant. The City, at its sole option and discretion, shall additionally be entitled to
bring any and all legal /equitable actions that it deems to be in its best interest in order
to enforce the City's right and remedies against the defaulting party. The City shall be
entitled to recover all costs of such actions, including reasonable attorneys' fees.
11
4.7.2 Termination for Convenience of City
Notwithstanding Section 4.7.1, the City may also, for its convenience and
without cause, terminate at any time during the term hereof by giving written notice to
Consultant of such termination, which shall become effective seven (7) days following
receipt by the Consultant of the written termination notice. In that event, all finished or
unfinished documents and other materials, as contemplated in Section 2, shall be
properly assembled and delivered to the City, at Consultant's sole cost and expense. If
the Agreement is terminated by the City as provided in this subsection, Consultant shall
be paid for any Services satisfactorily performed, as determined by the City at its
discretion, up to the date of the termination. Provided, however, that as a condition
precedent to such payment, consultant shall have delivered any and all documents,
materials, etc. to the City as required herein.
4.7.3 Termination for lnsolvency
The City also reserves the right to terminate the Agreement in the event
the Consultant is placed either in voluntary or involuntary bankruptcy or makes an
assignment for the benefit of creditors. In such event, the right and obligations for the
parties shall be the same as provided for in Section 4.7.2.
4.7.4 Sanctions for Noncompliance with Nondiscrimination Provisions
In the event of the Consultant's noncompliance with the nondiscrimination
provisions of this Agreement, the City shall impose such sanctions as the City, Miami-
Dade County, and / or the State of Florida, as applicable, may determine to be
appropriate, including but not limited to, withholding of payments to the Consultant
under the Agreement until the Consultant complies and /or cancellation, termination or
suspension of the Agreement. In the event the City cancels or terminates the
Agreement pursuant to this Subsection the rights and obligations of the parties shall be
the same as provided in Section 4.7.2.
12
4.8 CHANGES AND ADDITIONS
Changes and additions to the Agreement shall be directed by a written
amendment signed by the duly authorized representatives of the City and Consultant.
No alteration, change, or modification of the terms of this Agreement shall be valid
unless amended in writing, signed by both parties hereto, and approved by the City.
4.9 OWNERSHIP OF DOCUMENTS
All documents prepared by the Consultant pursuant to this Agreement are
related exclusively to the Services described herein, and are intended or represented
for ownership by the City. Any reuse, distribution, or dissemination of same by
Consultant, other than to the City, shall first be approved in writing by the City.
4.10 INSURANCE REQUIREMENTS
The Consultant shall not commence any work pursuant to this Agreement
until all insurance required under this Section has been obtained and such insurance
has been approved by the City's Risk Manager. The Consultant shall maintain and
carry in full force during the term of this Agreement the following insurance:
1. Consultant General Liability in the amount of $1,000,000.
2. Consultant Professional Liability in the amount of $200,000.
3. Workers Compensation & Employers Liability as required pursuant to Florida
statute.
4. The insurance must be furnished by insurance companies authorized to do
business in the State of Florida and approved by the City's Risk Manager.
5. Original certificates of insurance for the above coverage must be submitted to
the City's Risk Manager for approval prior to any work commencing. These
certificates will be kept on file in the office of the Risk Manager, 3rd Floor, City
Hall.
6. The Consultant is solely responsible for obtaining and submitting all insurance
certificates for its sub - consultants.
All insurance policies must be issued by companies authorized to do business
under the laws of the State of Florida. The companies must be rated no less
13
than "B+" as to management and not less than "Class VI" as to strength by the
latest edition of Best's Insurance Guide, published by A.M. Best Company,
Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk
Manager. Compliance with the foregoing requirements shall not relieve the
Consultant of the liabilities and obligations under this Section or under any other
portion of this Agreement, and the City shall have the right to obtain from the
Consultant specimen copies of the insurance policies in the event that submitted,
certificates of insurance are inadequate to ascertain compliance with required
overage.
4.10.1 Endorsements
All of Consultant's certificates, above, shall contain endorsements providing that
written notice shall be given to the City .at least thirty (30) days prior to termination,
cancellation or reduction in coverage in the policy.
4.10.2 Certificates
- Unless directed by the City otherwise, the Consultant shall not commence any
services pursuant to this Agreement until the City has received and approved, in writing,
certificates of insurance showing that the requirements of this Section (in its entirety)
have been met and provided for.
4.11 ASSIGNMENT, TRANSFER OR SUBCONTRACTING
The Consultant shall not subcontract, assign, or transfer any Work under
this Agreement in whole or in part, without the prior written consent of the City.
4.12 SUB-CONTRACTORS
The Consultant shall be liable for the Consultant's services,
responsibilities and liabilities under this Agreement and the services, responsibilities
and liabilities of sub-contractors, and any other person or entity acting under the
direction or control of the Consultant. When the term "Consultant" is used in this
-Agreement, it shall be deemed to include any sub-contractors and any other person or
14
entity acting under the direction or control of Consultant. All sub - contractors must be
approved in writing by the City prior to their engagement by Consultant.
4.13 EQUAL EMPLOYMENT OPPORTUNITY
In connection with the performance of this Agreement, the Consultant
shall not discriminate against any employee or applicant for employment because of
race, color, religion, ancestry, sex, age, and national origin, place of birth, marital
status, physical handicap, or sexual orientation. The Consultant shall take affirmative
action to ensure that applicants are employed and that employees are treated during
their employment without regard, to their race, color, religion, ancestry, sex, age,
national origin, place of birth, marital status, disability, or sexual orientation.
4.14 CONFLICT OF INTEREST
The Consultant agrees to adhere to and be governed by the Metropolitan
Miami -Dade County Conflict of Interest Ordinance (No. 72 -82), as some may be
amended from time to time; and by the City of Miami Beach Charter and Code, as
some may be amended from time to time; all of which are incorporated by reference
hereto as if fully set forth herein.
The Consultant covenants that it presently has no interest and shall not
acquire any interest, direct or indirectly which should conflict in any manner or degree
with the performance of the Services. The Consultant further covenants that in the
performance of this Agreement, no person having'any such interest shall knowingly be
employed by the Consultant. No member of or delegate to the Congress of the United
States shall be admitted to any share or part of this Agreement or to any benefits
arising therefrom.
4.15 PATENT RIGHTS; COPYRIGHTS; CONFIDENTIAL FINDINGS
Any patentable result arising out of this Agreement, as well as all
information, specifications, processes, data and findings, shall be made available to the
City for public use.
15
No reports, other documents, articles or devices produced in whole or in
part under this Agreement shall be the subject of any application for copyright or patent
by or on behalf of the Consultant or its employees or sub-contractors, without the prior
written consent of the City.
4.16 NOTICES
All notices and communications in writing required or permitted hereunder
may be delivered personally to the representatives of the Consultant and the City listed
below or may be mailed by registered mail, postage prepaid (or airmailed if addressed
to an address.outside of the city of dispatch).
Until changed by notice in writing, all such notices and communications
shall be addressed as follows:
TO CONSULTANT: The Superlative Group, Inc.
Attn: Myles Gallagher, President
2706 Franklin Boulevard
Cleveland, Ohio 44113
(216) 592-9400
TO CITY: City of Miami Beach
Attn: Hilda Fernandez
Assistant City Manager
1700 Convention Center Drive
Miami Beach, Florida 33139
(305) 673-7490
With copies to:
City of Miami Beach
Communications Office
Attn: Jay Moore
1700 Convention Center Drive
16
Miami Beach, FL 33139
(305) 673-7575
Notices hereunder shall be effective:
If delivered personally, on delivery; if mailed to an address in the city of dispatch,
on the day following the date mailed; and if mailed to an address outside the city of
dispatch on the seventh day following the date mailed.
4.17 LITIGATION JURISDICTION/VENUE
This Agreement shall be enforceable in Miami-Dade County, Florida, and
if legal action is'necessary by either party with respect to the enforcement of any or all
of the terms or conditions herein, exclusive venue for the enforcement of same shall lie
in Miami-Dade County, Florida.
BY ENTERING INTO THIS AGREEMENT, CONSULTANT AND CITY
EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY
JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS
AGREEMENT.
4.18 ENTIRETY OF AGREEMENT
This writing and the Services embody the entire Agreement and understanding
between the parties hereto, and there are no other agreements and understandings,
oral or written with reference to the subject matter hereof that are not merged herein
and superceded hereby. The Services and the Proposal Documents are hereby
incorporated by reference into this Agreement.
4.19 LIMITATION OF CITY'S LIABILITY
The City desires to enter into this Agreement only if in so doing the City can
place a limit on the City's liability for any cause of action for money damages due to an
alleged breach by the City of this Agreement, so that its liability for any such breach
never exceeds the sum of $1,000. Consultant hereby expresses its willingness to enter
in I to this Agreement with Consultant's recovery from the City for any damage action for
breach of contract to be limited to a maximum amount of $1,000.
Accordingly, and notwithstanding any other term or condition of this Agreement,
17
Consultant hereby agrees that the City shall not be liable to the Consultant for damages
in an amount in excess of $1,000 for any action or claim for breach of contract arising
out of the performance or non - performance of any obligations imposed upon the City by
this Agreement Nothing contained in this paragraph or elsewhere in this Agreement is
in any way intended to be a waiver of the limitation placed upon the City's liability as set
forth in Section 768.28, Florida Statutes.
[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]
18
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their appropriate officials, as of the date first dntered above.
FOR CITY: CITY I I BEACH, FLORIDA
' .ATTEST:
By: f 0 kti a ".
City Clerk Mayor
FOR CONSULTANT SUPERLATIVE GROUP, INC.
ATTEST:
By: By .
Secretary / Signature resid n /Sign ure
Print Name / Title Print Name /Title �-
APPROVED AS TO
FORM & LANGUAGE
6; ZAON
ate
19
a
F
RESOLUTION NO. 2005-25905
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE` CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY .
MANAGER PERTAINING TO THE RANKING OF PROPOSALS PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 06-04/05, FOR THE DEVELOPMENT
AND IMPLEMENTATION OF A CITYWIDE CORPORATE MARKETING AND
SPONSORSHIP PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER'
INTO NEGOTIATIONS WITH INTERNATIONAL MERCHANDISING CORPORATION
D /B /A IMG; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO
NEGOTIATE AN AGREEMENT WITH INTERNATIONAL MERCHANDISING
CORPORATION D /B /A IMG; AUTHORIZING THE ADMINISTRATION TO
NEGOTIATE WITH THE SUPERLATIVE GROUP, INC.; AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT
UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION.
WHEREAS, a discussion was held at the January 17, 2005, Finance & Citywide Projects
Committee meeting, and . the members requested several modifications that have been
incorporated and supported the issuance of the RFP, including a model that, makes use of a
contracted broker /consultant to assist in the process. The members recommended the
issuance of the RFP to the full Commission for approval; and
WHEREAS, the City Mayor and City Commission at its February 23, 2005 meeting,
authorized the issuance of an RFP for the Development and Implementation of a Citywide
Corporate Marketing and Sponsorship Program; and
WHEREAS, on March 2,'2005, RFP No. 06 -04/05 was issued via BidNet, which in turn
contacted 72 vendors, resulting in the receipt of the following four (4) responses:
1. IMG;
2. DD Marketing;
3. Superlative
4. Sports and Sponsorships; and
WHEREAS, on April 11, 2005, the City Managervia Letterto Commission (LTC) No. 0$9-
- 2005, appointed an Evaluation Committee ( "the Committee ") consisting of the following
individuals:
1) Max Sklar, Director, Tourism and Cultural Development
2) Julio Magrisso, Assistant Director, Parks & Recreation
.3) Jorge Gomez, Director of Planning & Development
.4) Grisette Roque - Marcos, Executive Director of Miami Beach t
VCA
5) Ricky. Arriola, Resident and Member of the CAC
6) Barbara Gelber, Resident and Chair of the Parks &
Recreation Board
7) Lisa Austin, Resident and Chair of the Scott Rakow Youth
Center Advisory Board; and
WHEREAS, the Committee convened on May 3, 2005, and was provided information
. relative to the City's Cone of Silence Ordinance, the Government in the Sunshine Laws and
an overview of the project from the City's Development Coordinator, Mr. Jay Moore.
Committee Members Jorge Gomez and Grisette Roque- Marcos were unable to attend; and
WHEREAS, the Committee was provided with a 15- minute presentation followed by a
15- minute question and answer session with the following firms:
1. The Superlative Group;
2. DD Marketing; and
3. IMG; -and
WHEREAS, Sports and Sponsorships elected not to make a presentation to the
Committee due to scheduling conflicts; and
WHEREAS, the Committee deliberated and discussed the proposals submitted as well
as the pros and cons of each firm. The Committee unanimously agreed that IMG was the
best firm to implement and develop a successful corporate marketing and sponsorship
program. The Committee ranked and scored the firms as follows:-
Max Ricky Julio Lisa Barbara
Sklar Arriola Magrisso -' Austin Gelber
IMG 98(1) 96(1) 98(1) 90(1) 95(1)
Superlative Group 88 (2) 87 (2) 95 (2) 75 (2) 85 (2)
DD Marketing 70(3) 87 (2) 90(3). 25 (4) 65(3).
Sports & Sponsorships. 60 (4) 83 (4) 80(4) 70 (3) 65(3); and
WHEREAS, based on the scoring, the Committee agreed to rank the firms as follows:
1. IMG;
2. The Superlative Group;
3. DD Marketing; and
4. Sports & Sponsorship; and.
- WHEREAS, the Committee's decision to recommend IMG as the most qualified
consultant to develop and implement a corporate marketing and sponsorship program was
based on the following:
1. Creativity, contacts, and successful long -term representation of
rights holders and events.
2. Local presence and activity. IMG's Coral Gables office has been
in existence for over 20 years and has 25 full - time employees.
3. Access to companies, ideas, promotions, media, television, .
federations, academies, events, and celebrities.
4. Experience in dealing with the corporate community with annual
sales of over $500 million.
5. Experience of over 40 years in developing strategic marketing
plans and selling sponsorships.
The largest and most successful independent licensing firm in the
world with over .$5.6 billion in retail sales in clients' licensed
merchandise.
7. Maximizing revenue and cost reductions proposed opportunities,
and understanding of community sensitivities; and
WHEREAS, the'City Manager exercised his due diligence and was briefed on the
Committee's recommendation and concurs that IMG is the top- ranked firm; and
WHEREAS, it is the goal of. the City to develop mutually beneficial sponsorship
contracts that deliver revenue dollars and /or in -kind products or services to the City of Miami
_ Beach in exchange for certain advertising, marketing and /or promotional considerations
granted by the City; and .
WHEREAS, the Mayor and City Commission, retain complete control over the
sponsorship program. Throughout the process, the City.Manager brings each step -by-
step component to the City Commission for consideration and vote; and
WHEREAS, in Phase 1, IMG will.survey and analyze the City's marketable assets; will
place a value on each asset, will assist the City in writing sponsorship policy; will develop
a prioritized marketing strategy; and
WHEREAS, in Phase II, IMG or a subsequent contractor, will "package ". assets for
sale; will assist the City in the RFP process for each asset category; will assist the City in
evaluating RFP responses and then assists the City on negotiating a sponsorship
contract; and
WHEREAS, the decision to enter into Phase If work, or to proceed to implement the
sponsorship program, and which consultant is solely that of the City Commission; and
WHEREAS, the Administration will ensure that the various City stakeholders are
involved and committed to the success of this program, and be cognizant of the potential
for "over commercialization" of the City.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the City Manager accepting the
recommendation of the City Manager pertaining to the ranking of proposals pursuant to
Request for Proposals (RFP) No. 06- 04/05, for the Development and Implementation of a
Citywide Corporate Marketing and Sponsorship Program; authorizing the Administration to
enter into negotiations with International Merchandising Corporation d /b /a IMG; and
should the Administration not be able to . negotiate an agreement with International
Merchandising Corporation d /b /a IMG; authorizing the Administration to negotiate with p
The Superlative Group, Inc.; and further authorizing the Mayor and City Clerk to execute
an agreement upon completion of successful negotiations by the Administration.
PASSED AND ADOPTED this lath day of Mme_ 005.
ATTEST:
CITY CLERK Robert Parcher WAYOR David Dermer
T:IAGENDAl20051Mayl805 \Consent \corporate marketing reso..doc
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY ,
Condensed Title:
A Resolution that Accepts the City Manager's Ranking of Proposals for the Development and
Implementation of a Citywide Corporate Marketing and Sponsorship Program; Further Authorizing the
Administration to Enter Into Negotiations with International Merchandising Corporation D /B /A IMG; and
Should the Administration not be Able to Negotiate an Agreement with International Merchandising
Corporation D /B /A IMG; Authorizing the Administration to Negotiate with the Superlative Group; and
Further Authorizing the Mayor and City Clerk to Execute an Agreement Upon Completion of Successful
Negotiations by the Administration.
Issue:
Shall the City Commission Adopt the Resolution?
Item Summa /Recommendation:
The world -class resort City of Miami Beach is especially well positioned to implement this now well-
established' model for generating additional revenue. In the municipal environment, a Corporate
Sponsorship Program is integrated with existing Economic Development. In this complimentary role, it can
support and accelerate new business attraction functions.
Developing and implementing successful Corporate Sponsorship Programs is a complex business. It
requires inventorying City assets, determining the sponsorship marketing value of the assets, developing
sponsorship management policy, the actual marketing of the assets and negotiating sponsorship contracts.
As such, the City determined that professional assistance was desirable and issued an RFP for services.
After being fully briefed of the Committee's recommendation, and after reviewing the proposals and
additional information provided by the top four firms, it is the Manager's recommendation that IMG be
ranked as the number one firm. IMG's selection is based on their team's proven experience and
demonstrated ability to successfully implement and develop corporate marketing and sponsorship
programs. Additionally, IMG's local presence and activity as well as their creativity, contacts, and successful
45 -year of experience in representation of clients, developing and producing events, and understanding of
the City played a key role in their selection.
The Administration will ensure that the various City stakeholders are involved and committed to the success
of this program, and be cognizant of the potential for "over commercialization" of the City.
ADOPT THE RESOLUTION.
Advisory Board Recommendation:
A discussion was held at the January 17, 2005, Finance & Citywide Projects Committee meeting, and the
members recommended the issuance of the RFP to the full Commission for approval.
Financial Information: N/A
Source of Amount Account Approved
Funds:
2
3
4
Finance Dept. Total
City Clerk's Office Legislative Tracking:
Gus Lopez, ext. 6641.
Sign-Offs:
Departipent Director Assistant Manager City Manager
GL. RC JMG
TAAG DA\2005 \May1805 \Consen CorporateMarketingSumma .doc
AGENDA ITEM'
DATE
F
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor David Dermer and Date: May 18, 2005
Members of the City Commission
From: Jorge M. Gonzalez �-
City Manager
Subject: A RESOLUTION OF HE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER
PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO REQUEST
-FOR PROPOSALS (RFP) NO. 06- 04/05, FOR THE DEVELOPMENT AND
IMPLEMENTATION OF A CITYWIDE CORPORATE MARKETING AND
SPONSORSHIP . PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER
INTO NEGOTIATIONS WITH INTERNATIONAL MERCHANDISING CORPORATION
D /B /A IMG; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE
AN AGREEMENT WITH INTERNATIONAL MERCHANDISING CORPORATION D /B /A
IMG; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE
SUPERLATIVE GROUP, INC.; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT UPON COMPLETION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
ADMINISTRATIVE RECOMMENDATION
Adopt the Resolution.
ANALYSIS
A corporate sponsorship is the linking of complimentary corporate brands for mutual
benefit with business partners whose corporate missions are consistent -with those of
the City of Miami Beach (the "City'). For the business, benefit is typically some form of
advertising, public relations or facility naming rights. While the business gains
financially by marketing advantage and /or customer loyalty enhancement, the
advantage to the City is primarily financial. Corporations will pay the City for the ability
to use or link with our City image and identity.
These marketing programs rise from the natural partnerships between city governments
and the local, regional and national businesses they host and interact with in the daily
course of business. Corporate sponsorship programs have emerged as a financially
- viable, ethically appropriate -and aesthetically acceptable municipal financing tool.
The world -class resort City of Miami Beach is especially well positioned to implement
this now well - established model for generating additional revenue. .Nearly all the most
important characteristics advertisers are willing to pay hundreds of thousands.of dollars
to associate their products with are present here.
Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page.2 of 11
Developing and, implementing successful Corporate Sponsorship Programs is a
complex business. It requires inventorying .City assets, determining the sponsorship
marketing value of the assets, developing sponsorship management policy, the actual
marketing of the assets and negotiating sponsorship contracts. As such, the City
determined that professional assistance was desirable and issued an RFP for services.
BACKGROUND
The Parks & Recreation Programs Blue Ribbon Citizens' Committee (the "Citizens
Committee ") in its May 14, 2002 report, cited funding as a "paramount concern in
fulfilling the expectations of residents." Suggesting that.the "City needs to be more
creative and proactive in establishing multiple funding streams to 'leverage against the
General Fund and user fees," the Citizens' Committee recommended, among , other
steps, the following:
"The City should engage in an active corporate sponsorship program to raise
additional programming funds. This can 'be accomplished through the addition of full -
time marketing /development personnel..."
"The City should create and reinvest proceeds from vending contracts directly
into the Recreation Division budget without offsetting the General Fund's contribution.
In direct response to the Committee's recommendations, the Parks and Recreation
Department created and filled the position of Development Coordinator. Since
assuming his duties. on December 16, 2002, the Marketing Coordinator has:
1. Researched current successful corporate sponsorship consultant practices;
2. Reviewed other local government corporate sponsorship programs;
3. Formed and led a City of Miami Beach corporate sponsorship evaluation team;
4. Interviewed several leading national corporate sponsorship consultants; and
5. Determined that the City of Miami Beach has significant potential for success
through a professionally structured and managed corporate sponsorship
program.
In 2004, the City received proposals from a variety of consultants proposing to assist
the City of Miami Beach with the development and implementation of a Corporate
Sponsorship Program pursuant to Request for Proposals (RFP) No. 66- 02/03.
The Corporate Sponsorship Program was intended to broadly market the City of Miami
Beach and to attract revenues to the City of Miami Beach by allowing corporate
sponsoring entities to identify with the City. However, due to a bid challenge. and
subsequent investigation no action was taken.
I
Corporate Marketing and Sponsorship Program
RFP. No. 06 -04105
May 18, 2005
Page 3 of 11
. The rejection of all proposals received pursuant to the RFP was discussed at the
January 27, 2005, Finance and Citywide Projects Committee (the "Committee ") meeting
and concluded with the Committee voting to recommend to the City Commission that all
proposals received pursuant to RFP No 66 -02/03 for a Corporate Sponsorship Program
be rejected.
As a component of the same discussion the Committee expressed an interest in
continuing to discuss how the City might approach a Corporate Sponsorship Program at
a future time. At the City Commission meeting held on February 2, 2005 the proposals
submitted were rejected and the re- issuance of the Corporate Sponsorship RFP was
referred to the Finance & Citywide Projects Committee.
A discussion was held at the January 17, 2005, Finance & Citywide Projects Committee
meeting, and the members requested several modifications that have been incorporated
and supported the issuance of the RFP, including a model that makes use of a
contracted broker /consultant to assist in 'the process. The members recommended the
issuance of the RFP to the full Commission for approval.
..The Mayor . and City Commission at its February 23,'2005 meeting, authorized the
issuance of an RFP for the Development and Implementation of a Citywide Corporate
Marketing and Sponsorship Program.
RFP PROCESS
On March 2, 2005, RFP No. 06 -04/05 was issued via BidNet, which in. turn contacted 72
'vendors resulting in the receipt of the following four (4) responses:
1. IMG;
2. DD Marketing;
3. Superlative; and
4. Sports and Sponsorships.
On April 11, 2005, the City Manager via Letter to Commission (LTC) No. 089 -2005,
appointed an Evaluation Committee ( "the Committee ") consisting of the following
individuals:
1) .Max Sklar, Director, Tourism and Cultural Development
2) Julio Magrisso; Assistant Director, Parks & Recreation
3) Jorge Gomez, Director of Planning & Development
4) Grisette Roque- Marcos, Executive Director of Miami Beach VCA
: 5) Ricky Arriola, Resident and Member of the CAC
6) Barbara Gelber, Resident and Chair of the Parks & Recreation Board
7) Lisa Austin, Resident and Chair of the Scott Rakow Youth Center Advisory
Board.
Corporate Marketing and Sponsorship Program
RFP No. 06- 04105
May 18, 2005
Page 4 of 11
The Committee convened on May 3, 2005, and was provided information relative to the
City's Cone of Silence Ordinance, the Government in the Sunshine Laws and an
overview of the project from the City's Development Coordinator, Mr. Jay Moore.,
Committee Members Jorge Gomez and Grisette Roque- Marcos were unable to attend.
The Committee was provided with a 15- minute presentation followed by a 15- minute
question and answer session with the following firms:
1. The Superlative Group;
2. DD Marketing; and
3. IMG
Sports and Sponsorships elected not to make a presentation to the Committee due to
scheduling conflicts.
The Committee deliberated and discussed the proposals submitted as well as the pros
and cons of.each firm. The Committee unanimously agreed that IMG was the best firm
to implement and develop a successful corporate marketing and sponsorship program.
The Committee ranked and scored the firms as follows:
Max Ricky Julio Lisa Barbara
Slar Arriola Magrisso Austin Gelber
IMG 98(l) 96(l) 98 (1) 90 (1) 95 (1) .
The Superlative Group 88(2) 87 (2) 95 (2) 75 (2) . 85(2)
DD Marketing 70 (3) 87 (2) 90 (3) 25(4) 65 (3)
Sports & Sponsorships 60 (4) 83 (4) 80 (4) 70 (3) 65 (3)
Based on the scoring, the Committee agreed to rank the firms as follows: .
1.. IMG;
2. The Superlative Group;
3. DD Marketing;,and
-4. Sports &Sponsorship.
Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page 5 of 11
The Committee's .decision to recommend IMG as the most qualified consultant to .
develop and implement a corporate marketing and sponsorship program was based on
the following:
1. Creativity, contacts, and successful long -term representation of rights holders and
events.
-2. Local presence and activity. IMG's Coral Gables office has been in existence
over 20 years,and has 25 full -time employees.
3. Access to companies, ideas, promotions, media, television_, federations, academies,
events, and celebrities.
4. Experience in dealing with the corporate community with annual sales of over $500
million.
5: Experience of over 40 years in developing strategic marketing plans and selling
sponsorships.
6. The largest and most successful independent licensing firm in the world with over
$5.6 billion in retail sales in clients' licensed merchandise.
7: Maximizing revenue and cost reductions proposed opportunities, and understanding
of community sensitivities.
The City Manager exercised his due diligence and was briefed on the Committee's
recommendation and concurs that IMG is the top - ranked firm.
IMG's Experience .& Qualifications
• I'MG has more than 2,500 employees in 80 offices located throughout 33
countries. And for 20 years IMG has had a full time office in Miami with a staff of
25 people.
• IMG has on -point and successful experience in working with City governments
(i.e., Chicago, New York, and Cleveland) to create corporate sponsorships.
• . IMG's Senior Management Team (i.e'., Mr. Pirnie, and Mr. Annear) has_ worked
together on over 20 projects in the past 15 years.
• IMG's Project Team Leader, Doug D. Pirnie, Jr., Senior Vice President, has been
with IMG since 1976.
IMG's Phase I Leader, Tom Annear, has been with IMG for more than 10 years.
Mr. Annear is the Sr. VP of Corporate Sales, and will oversee a team of eight (8)
individuals dedicated to raising sponsorship dollars on a local, regional, and
national level.
• IMG's International VP, Dario Brignole, has been with IMG for eight years and
has extensive knowledge of the Corporate Hispanic and Latin American regions,
and has created a new U.S. Hispanic Division for IMG.
• IMG's Director of Sales & Marketing, Isabel Chattas, a Miami Beach resident,
joined IMG in 2003, and has actively been involved in developing South Florida
events including - the Sunglass Hut Swim Shows Miami and Premios Fox Sports,.
both of which .are Miami Beach -based events.
Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page 6 of 11
• IMG's Television Division is the largest independent distributor and producer of
televised sports, managing a library of more than 150,000 hours, and producing
and distributing 6,500 hours of original programming to more than 200 countries
covering more than' 200 sports.
• IMG's Golf Division has promoted 215 golf events with total prize money that
exceeds $170 million. IMG clients have dominated both the U.S. PGA Tour and
LPGA Tour, featuring such stars as Tiger Woods, Annika Sorenstam, David -
Duval, Vijay Singh, and Mark O'Meara.
IMG's Tennis Division dates back to .1968, and since that time IMG has
represented the top players in the world including Billie. Jean King, Chris Evert,
Martina Navratilova, Rod Laver, Bjorn Borg, John McEnroe, -Ivan Lendl, and the
Williams Sisters - Venus and Serena.
• IMG's experience includes a wide range of national clients. Other notable IMG
Divisions include: Academies (Tennis, Golf, Soccer and Basketball); Chinese
National Soccer League; Professional Athlete Management; Winter Sports;
Licensing; Artists; Models; Broadcasting; and Charities.
IMG's references were very positive and provided the following feedback:
United States Olympic Committee (USOC)
Jim Grice
Chief. of Sales & Marketing
USOC
One Olympic Plaza
Colorado Springs, CO 80909
IMG has also been retained for the past four years by the USOC, an agency of the US
government, to secure sponsorships. Their initial assignment was with OPUS (Olympic
'Properties of the United States), a joint venture between the 2002 Salt Lake City
Organizing Committee (SLOC) and the USOC for whom we raised over $100 million. A
portion of those funds were used for the operations of the Olympic Games in Salt Lake
City. and a portion was used by the USOC to train the US Olympic teams for the Salt
Lake and Athens (2004) Games. In addition, IMG has raised another $100 million for
the USOC to support the US Olympic Teams that will be competing in Turino (2006)
and Beijing (2008).
Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page T of 11
Carolina Stadium
Mark S. Richardson
President, Carolina Panthers
800 South Mint Street
Charlotte, NC 28202
The Muhleman Marketing division of IMG served the NFL franchise owner in Charlotte
as managing strategic consultants for the overall franchise - stadium project. This
'included building the 73,000 -seat stadium in a public - private partnership in which the
City of'Charlotte contributed the site land and the County and State of North Carolina
paid ,the costs of developing the surrounding infrastructure. IMG/ Muhleman Marketing
also designed a seat license program that raised $150 `million for construction costs
from fans for the new franchise and facility and brokered the deal for Bank of America to .
become naming rights sponsor of the facility for approximately, $140 million over 20
years.
City of Cleveland
The Rock and Roll Hall of Fame (RRHF) in Cleveland was financed through a state,
bond referendum. In 1994, IMG was retained by the City of Cleveland to raise funds to
alleviate the bond debt 18 months prior to the RRHF Grand Opening. IMG generated
over $50 million in sponsorship and promotional dollars across several major
sponsorship categories. Sponsors included AT & T; Pepsi, Ameritech,' Levi's,
Continental Airlines, Radio Shack, Thrifty Car Rental and MasterCard, among others.
Chicago Parks District
IMG was retained on a one -year, non - exclusive basis, by the Chicago Parks .District to
secure partners in a number of - product categories in order to generate additional
revenue for the District. IMG was successful in securing partnership arrangements with
Best Kosher (hot dog), credit card (Discover Card), ice cream (Breyers), salty snack
(Jay's potato chips) and the Chicago Transit Authority.
New York City
David Klasfeld
666 West 111 t ' Street
New York, NY 10025 .
After a comprehensive review process, IMG was ' selected over numerous applicants
because of their extensive experience in dealing with the corporate world and in their
: creativity and sensitivity in dealing with the political issues that such a program
generated. IMG created an overall marketing plan for the City that ultimately was
approved by all of the major city constituencies (Fire Department, Police Department,
Department of Parks; Department of Education, museums and other cultural institutions,
etc.).
- Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page 8 of 11
IMG's efforts. in this process were extraordinarily impressive - they were diligent, dogged
and professional in their efforts to pull together what was an unprecedented coalition of
agreement among such disparate stakeholders.
Greater Miami Convention & Visitors Bureau (GMCVB)
David Whitaker
Sr. VP of Marketing & Tourism
701 Brickell Avenue
Miami, FL 33131
IMG serves as GMCVB's marketing consultant, and as such provides the following
services:
• Strategic planning;
• Property review and evaluation;
Contract negotiations;
• Proprietary measurement tools;
• Budgetary management;and
• Creative services.. .
THE CITY'S APROACH
It is the goal of the City to develop mutually beneficial sponsorship contracts that deliver
revenue dollars and /or .in -kind products or services to the City of Miami Beach in
exchange for certain advertising, marketing and /or promotional considerations granted
by the City.
This project will be divided in phases as described in the RFP.
Phase I Activity:
1) Conducting an inventory of existing and prospective tangible and non - tangible
-. marketing - assets; , 2) Developing a comprehensive sponsorship policy; and 3)
Developing a strategic plan --for marketing assets. All three (3) objectives are detailed
below:
Objective 1: Inventory existing and prospective tangible and non - tangible marketing
assets
The inventory should include, but is not limited to:
1. On -site interviews of City department heads and other personnel as a planning
step to understanding the existing marketing and sponsorship activity level.
Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page 9 of 11
2. Examination of any current City asset management agreements including but not
limited to:
• Beach Concessions;
• Golf Courses;
• Vending Machines;
• Tennis Centers;
• Jackie Gleason Theater of the Performing Arts; and
• Miami -Beach Convention Center.
3. Examination of City marketing materials and other information on past
sponsorship efforts, and the level of success.
4. Provide a deliverable list of product licensing opportunities for the City of Miami
Beach.
5. Add /suggest to the City other sponsorship opportunities.
6. Organize all data collected into a database (e.g., spreadsheet format or other
user - friendly format).
7. Address /physical location, description, date added to the database, utilization
statistics;
8. Pedestrian, vehicular, viewership or other relevant exposure data;
9. Marketing opportunity available (advertising, branding, promotion, etc.);
10. Rights available, date available, etc. ;
11. Any sales history (to whom, what price, when, etc.);
12. Any known conflicts /limitations on selling;
13. Contact address, phone fax and e-mail;
14. Terms (length, price, options to renew);
15. Rights granted;
16. Any encumbered reversionary rights;
17. Legal /policy limitations on rights;
.18. pricing;
19. Assessment of the value range for assets;
20. Suggested /possible bundling opportunities with other assets;
21.Assessment of the degree of difficulty to obtain a sponsorship agreement;
Indication of priority
Objective 2: Create a Comprehensive Sponsorship Policy
1. Review current sponsorship acceptance procedures;
2. Participate in and support process to match community and City Commission
expectations and sensitivities to possible sponsorship opportunities;
3. Specify the approach to be used to match the expected sponsorship
opportunities with City Commission and community expectations;
4. Create a policy that addresses the impact of existing financial planning and
economic development;
Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page 10 of 11
5. Present and develop a policy as directed by City; and
6. Identify any conflicts and /or limitations of the City of Miami Beach regulatory
codes with regard to implementation of a corporate sponsorship program.
Objective 3: Develop Strategic Plan for Marketing Assets
1. Prioritize the database;
2. Develop a written strategy document; and
3. Assess the City's potential and recommend process /policy to earn income from
Product Licensing Agreements.
Phase II Activity
At its sole discretion, the City may:
1. Elect to terminate the corporate sponsorship program, or
2. Continue the program with the marketing of inventoried and valued assets with
the vendor that performed work outlined in Phase I, paying earned commissions
to the vendor through that process, or
3. Continue the program through issuance of an RFP for, a new vendor to market
the inventoried assets, paying earned commissions to'the new vendor through
that process.
Phase II will consist of marketing the City's assets, consisting of the following activities:
1. Develop sample rights packages for the marketplace;
2. Assist in the evaluation and development of sponsorship RFP's;
3. Prepare reports and presentations on the City's municipal marketing program,
as directed by the City;
4. Assist in contract negotiations; and
5._ Provide advice in implementing /managing sponsorships.
Process & Products
The Mayor and City Commission retain complete control over the sponsorship program.
Throughout the process, the City Manager brings each step -by -step component to the City
Commission for consideration and vote.
In Phase I, IMG will survey and analyze the City's marketable assets; will place a value on
each asset; will assist the City in writing sponsorship policy; will develop a prioritized
marketing strategy.
In Phase II, IMG or a subsequent contractor, will "package" assets for sale; will assist the
City in the RFP process for each asset category; will assist the City in evaluating RFP
responses and then assists the City on negotiating a sponsorship contract.
1
Corporate Marketing and Sponsorship Program
RFP No. 06 -04105
May 18, 2005
Page 11 of 11
The decision to enter into Phase II work, or to proceed to implement the sponsorship
program, and with which consultant is solely that of the City Commission.
IMG proposed the following fee structure, which will be subject to negotiations by the
Administration:
1. A monthly fee of $20,000 per month for the first 12 months of the relationship plus
approved expenses.
2. A 20% sales commission on all amounts generated for the City;
3. If the City chooses to retain IMG to move forward with the plan developed in Phase
I, IMG would credit the City up` to 50% of any fees received against the
commissions generated.
4. Any renewals of any partnership deals would be commissioned at 10 %.
The Administration will ensure that the various City stakeholders are involved and
committed to the success of this program, and be cognizant of the potential for `over
commercialization" of the City.
CONCLUSION
The Administration recommends that the City Commission adopt the attached resolution
that accepts the Manager's recommendation pertaining to the ranking of firms, and
authorizes the Administration to negotiate with IMG, to develop and implement a Citywide
corporate marketing and sponsorship program, and if the Administration is successful in
its negotiations, further authorizes the Mayor and City Clerk to execute a contractual
agreement.
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