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Resolution 2018-30577 RESOLUTION NO. 2018-30577 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS SEPTEMBER 14, 2018 MEETING, AND APPROVING AND AUTHORIZING THE CITY ADMINISTRATION TO EXPLORE AND, IF APPLICABLE, DEVELOP THE FOLLOWING ADDITIONAL ALTERNATIVE REVENUE STREAMS: (1) LARGE-SCALE SPONSORSHIPS, SPECIFICALLY FOR NAMING OPPORTUNITIES FOR CERTAIN CITY-OWNED FACILITIES, INCLUDING THE NAMING RIGHTS TO THE MIAMI BEACH CONVENTION CENTER; AND (2) ADVERTISING ON THE REAR EXTERIOR SIDE OF THE CITY'S FLEET MANAGEMENT BUILDING ON TERMINAL ISLAND. WHEREAS, at the July 13, 2018 Finance and Citywide Projects Committee (the "Committee") budget briefing meeting, multiple options were presented to the Committee as alternative ways to generate revenue for the City of Miami Beach (the"City"); and WHEREAS, the City Administration has met internally, as well as with industry professionals, to discuss various potential revenue streams, including associated challenges and opportunities; and WHEREAS, at the September 14, 2018 Committee meeting, the City's Marketing and Communications Department presented each option in further detail; and WHEREAS, following the Committee's review and analysis of potential revenue streams, the Committee recommended that the City's Marketing and Communications Department move forward with exploring the following potential alternative revenue streams: (1) advertising on the City's trolleys; (2) large-scale sponsorships, specifically for naming opportunities for certain City- owned facilities, including naming rights to the Miami Beach Convention Center; and (3) advertising on the rear exterior side of the City's Fleet Management building on Terminal Island; and WHEREAS, on September 26, 2018, the City Commission adopted Resolution No. 2018- 30518, accepting the recommendation of the Committee at its September 14, 2018 meeting, and approving and authorizing the City Administration to obtain advertising services for the City's trolleys from the City of Miami trolley advertising contract with Outfront Media; and WHEREAS, the Mayor and City Commission also directed City staff to further develop proposals for the remaining alternative revenue streams recommended by the Committee, and present such proposals to the City Commission; and WHEREAS, many local governments across the country sell naming rights for public facilities, including parks and convention centers, to generate alternative revenue; and WHEREAS, the City may generate revenue by entering into large-scale sponsorship agreements (specifically, for naming rights) for the newly-renovated and expanded Miami Beach Convention Center; and WHEREAS, the City of Miami Beach Fleet Management facility, located at 140 MacArthur Causeway, on Terminal Island, can accommodate advertising signage on the rear exterior side of the building, which signage would be seen by cruise ship passengers and boaters entering and exiting the Port of Miami through Government Cut; and WHEREAS, 5.3 million passengers enter and exit the Port of Miami each year; and WHEREAS, the City of Miami Beach could generate significant alternative revenue by selling advertising on the rear exterior side of the Fleet Management facility; and WHEREAS, the Mayor and City Commission now desire to direct the City Administration to explore and, if applicable, develop the following additional alternative revenue streams: (1) large-scale sponsorships, specifically for naming opportunities for certain City-owned facilities, including the naming rights to the Miami Beach Convention Center; and (2) advertising on the rear exterior side of the City's Fleet Management building on Terminal Island. 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 Finance and Citywide Projects Committee at its September 14, 2018 meeting, and approve and authorize the City Administration to take the following actions relating to the alternative revenue streams described in this Resolution: (1) prepare a Request for Letters of Interest for large-scale sponsorships, specifically for naming opportunities for certain City-owned facilities, including the naming rights to the Miami Beach Convention Center; and (2) explore the possible sale of advertising on the rear side of the City's Fleet Management building on Terminal Island. PASSED and ADOPTED this 17th day of October, 2018.01 ATTEST: q3°/1e Dan Gelber Rafael / ado Mayor City Clerk vsr� to BE,q"4t, r ay • •• El •STO cl=t41 •r & - GUAGE ,%' �� kAtt0 O' XECUTION t* we Tfrai ED (1)/. 08 /Pb to rney 1\x_. Resolutions-R7 V MIAMI BEACH COMMISSION MEMORANDUM TO. Honorable Mayor and Members of the City Commission FROM. Jimmy L.Morales,City Manager DATE. October I?,2018 SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA.ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS SEPTEMBER 14, 2018 MEETING, AND APPROVING AND AUTHORIZING THE CITY ADMINISTRATION TO EXPLORE AND, IF APPLICABLE, DEVELOP THE FOLLOWING ADDITIONAL ALTERNATIVE REVENUE STREAMS'. (1) LARGE-SCALE SPONSORSHIPS, SPECIFICALLY FOR NAMING OPPORTUNITIES FOR CERTAIN CITY-OWNED FACILITIES, INCLUDING THE NAMING RIGHTS TO THE MIAMI BEACH CONVENTION CENTER,AND(2)ADVERTISING ON THE REAR EXTERIOR SIDE OF THE CITY'S FLEET MANAGEMENT BUILDING ON TERMINAL ISLAND. RECOMMENDATION Administration recommends accepting the recommendation of the Finance and Citywide Projects Committee. ANALYSIS At the July 13, 2018 Finance and Citywide Projects Committee Budget Briefing Meeting, multiple options were presented as alternative ways to provide revenue to the City. The options included Advertising on the extenor of trolleys,large-scale sponsorships throughout the City such as park naming rights and naming rights to the Miami Beach Convention Center and advertising on the back side of the fleet-management building. Each of these items present both positive and potential negative implications and as such, staff has since met to discuss the (tens in detail. Discussions included potential legal,planning and historic preservation implications. Each option is expanded further below. On September 26,2018,the City Commission adopted Resolution No.2018-30518,accepting the recommendation of the Finance Commttee at its September 14,2018 meeting.and approving and authorizing the City Administration to obtain advertising services for the City's trolleys from the City of Miarri trolley advertising contract with Oubront Media. The Mayor and City Comnssion also directed City staff to bring the remaining alternative revenue streams recommended by the Committee to the next full City Commission meeting for further discussion. SPONSORSHIPS THROUGHOUT THE CITY,INCLUDING MIAMI BEACH CONVENTION CENTER NAMING RIGHTS In 2007 the City hired a consultant to do a thorough assessment and inventory of all possible sponsorships throughout the City as well as possible revenue amounts for each item. After the completion of the assessment,the consultant was retained to begin the sales of these sponsorships,in addition to the sponsorship sales that were managed by The city's development coordinator. The consultant focused on larger sponsorships and brought in the current contract between the City and Coca-Cola while the development coordinator focused on individual event sponsorships and advertising in MB Magaane. The Coca-Cola contract currently generates$325,000 per year in cash as well as$60,000 in in-kind revenue and 450 cases of free product per year. The free product is used for city events such as the Veterans Day Parade, Fire on the Fourth as well as donated to outside events such as Aft Deco Weekend. The contract was originally signed for a total of 10 years and will be up for renewal option in 2022. The contract expired with the sponsorship consultant,was not renewed and the City's development coordinator continued selling advertising and sponsorships for the City. Since the inventory was completed,the internal sponsorship and advertising coordinator has drastically increased the total alternative revenue being generated for the City-with totals of both cash and in-kind now reaching$1 Million per year. Some of the Items included in this total are event sponsorships such as Fire on the Fourth, Veterans Day Parade, Family Service Day, Parks and Recreation sponsorships and advertising sold in the MB Magazine. Many large parks and convention centers throughout the country utilize naming rights revenue to provide alternative revenue. The following chart shows some arenas and convention centers that have previously garnered naming rights revenue for their facilities. The newly renovated Convention Center would be a candidate for such option.Two articles regarding the topic have also been attached for your reference. Naming Rights Holder-Industry Estimated Naming Righs Value— Convention Center Sector . Narring Rights Temp Over the total term of contract TD made a capital contribution for Convention Center TO Convention Center(Greenville,SC) improvements in 2011.The i Deal has expired and TD has has staled they will not renew Bank Unknown improvements cost$22M Was 15 years;Lapsed in Delta Center(Miwaukee-now known as the Wisconsin 2013,no renewal,no Center) Airline replacement $9.25M Huntington(Bank)Convention Center of Cleveland Bank 20 years $10M Telecommunications/ Cox Convention Center(Oklahoma City) Internet 7 years $1]M Duke Energy Center(Cincinnati) Electric Utility Until 2032 $9-12M Hy-Vee Et tibit Hall(Des Moines) Grocery Chain 10 years $8M Community Choice Credit Union Convention Center(Des Mnmpm Rani, to vParc et"SM Page 1350 of 1637 Mass Mutual Center Springfield) Insurance 5 years $5M CHI Health Center Omaha Formerly CenturyLink Center I (Omaha,Nebraska) Health Care 20 years(former was 15) $23 fi(former deal was$1405M) Staff met to discuss the possibilities of naming rights and what may need to be done to allow this. During the discussion,it was mentioned that,per the current City Code, the naming of the MBCC may have to go to referendum. All possible sponsorships would have to be presented to Commission for final approval prior to contracts being finalized. Administration could create a Request for Letters of Interest through the Procurement department to obtain a contractor to begin to pursue these types of sponsorships. The agreement with the previous contractor has been attached for your review as a possible format for a contract roving forward- EXTERIOR ADVERTISING ON THE BACK OF THE FLEET BUILDING The City of Miami Beach fleet building provides a great location to place signage that would only be seen by cruise ship passengers as well as boaters in the area that enter and exit the Port of Miami. The Port of Miami has appronrmtely 53 million passengers each year. Murals of this size have potential to sell for more than$20,000 per month or$240,000 per year. Staff is exploring the opportunity of working with a company that currently sells this type of advertising in other municipalities for the possibility of allowing them to include this sign in their catalog of possible signage in the area. CONCLUSION On September 14,2018 staff presented this information to the Finance and Citywide Projects Committee and it was recommended that the City's Marketing and Communications Department move forward with large-scale sponsorships throughout the City and the sale of advertising on the back of the fleet building. KEY INTENDED OUTCOMES SUPPORTED Madmize The Miami Beach Brand As A World Class Destination legislative Tracking Marketing and Communications Sponsor Commissioner Ricky Amide ATTACHMENTS' Description o Article I • Article o The Superlative Group Agreement 2007 o The Superlathe Group Amendment 1 2010 o Resolution Page 1351 of 1637 10/8/2018 Naming Rights I The Convention Center Advisor The Convention Center ADVISOR • About Tagged: Naming Rights July 30,2015 Starting;pfd Expanding Advertising and Sponsorships as a Revenue Stream Wiry Is this a Good Idea? I have often been confused why more convention centers do not actively engage in an advertising and sponsorship program as a revenue stream.Perhaps it's viewed as a business more appropriate for others;sports and entertainment venues are the logical setting for advertising and sponsorships,not convention centers.Sports stadiums and arenas and their tenant teams—football,baseball,basketball,hockey,etc all have a loyal fan base and fans are very emotionally connected.Television and radio erage aintegral parts of the sports experience.These things don't exist at convention centers and convention center management may not feel it's worth the effort. I also believe there's reluctance by some convention center management to use ad space and media that were once exclusive domain of event managers and then, charge fees and commissions for features that were once free. My belief is that if convention centers who feel this way would conduct a thoughtful evaluation of the benefits and risks,they may change their minds. Benefits A well crafted ad and sponsorship program: • Contributes a level of legitimacy with respect to the convention center being a place of business,where new products and services are rolled out and demonstrated in a setting where comparisons can be made,where deals arc done,where technical and scientific information exchanged,and where like minded professionals can network and socialite. • Strengthens the business relationships with others in the city hospitality sector.Restaurants,hotels,nightclubs,shopping districts,and other cultural and entertainment venues are likely advertising and sponsorship candidates.Having the relationship solidified by an advertising agreement helps achieve that.The character of the relationship would be different;it won't be casual or shallow anymore,it will now be business. • Can become a reliable revenue source which may waver rap and down with the vagaries of the economy but can grow in stable and growth years.there are a few convention centers where an advertising and sponsorship program has contributed between S I—2 million to the bottom line annually. Risks • Know that many times brands are judged by the company they keep;remember this,it will come up again.Many times an advertiser or sponsor's business issues,such as product problems,legal issues,and financial problems become your problems.This is especially true if it's a naming rights sponsor. Choose potential advertisers and sponsors wisely.Understand that advertisers and especially sponsors may view the convention center similarly. Convention centers are accountable to them for bad publicity and for routine items such as signage and website maintenance,or for the overall condition of the facility,Sponsors too will always he interested in their return on investment and review the returns periodically. • An overly aggressive ad and sponsorship program can pose some problems with your rade show and association meeting clients;too much signage by advertisers takes away from space available for an event's trade dress signage and decoration and their own sponsor advertising,inflexible terms regarding advertising and product exclusivity by sponsors may interfere with an events'exhibitors or their sponsorship sales.Also,critics may argue that over- commercialization with garish signage and endless brand messaging detracts from the convention center's mission.It's best o exercise good taste and a sense of propety here. • An advertising and sponsorship program is very:visible to others and potential event clients.An ineffective and feeble program where advertisers and sponsors are few detracts from the center's reputation.Jr,alter evaluation,you do not believe you can achieve revenue goals and visibility then perhaps you should forego the effort. Taking Stock—What Is Your Inventory of Advertising Possibilities and Media' Exterior— • The Center's location—Is it located by and in view of major traffic thoroughfares?Ifso,call the municipality and obtain a daily traffic count.Pedestrian counts may also be available. • The Center's Architecture—Normally the entrance is a piece of landmark architecture.The curtain walls are high,there is usually an array of light or flag poles along the entrance drive,and the adjacent sidewalks are wide.All are possibilities for banners and signage. • Fixed Static or LED Signage(usually located by the center's entrance)—These signs normally announce the event(s)in-house,but have fixed signage possibilities as part of the sign structure or in the case of an LED sign,use possibilities due to the technology. Page 1352 of 1637 file///H'./Tonya%20Dan iels/commission%20items/Naming%20Rights%20_%20The%20Convention%20Cenler%20Advisoreo20Article.html 1/8 10/8/2018 Naming Rights I The Convention Center Advisor Interior • Center entrance,atrium,lobbies and concourses-All have high curtain walls and space frame features for banner hanging • Well trafficked corridors-Recommend a limited number of high quality back-lit signage • Center video screens-large video screens are best located in the expansive entranceways,atriums and lobbies where the scale fits the selling.Smaller video screens are e appropriately located along well trafficked corridors.retail retail areas.taxi/sluttle bus waiting areas and food courts_The screens are normally of a network,complete with a control room,equipment room and the capability of running different messaging true-programmed)liar each screen. Columns in atrium and lobbies Public stair risers-Normally temporary and done with 3M product with adhesive back Escalator side panels and railings Taut cables over escalator wells for banner hanging Displays adjacent to Information and Concierge Stations Ads and wraps at water coolers and phone/tablet charging stations Food Court table tops-Using the same adhesive backed 3M product Digital/Print- • he convention center's website-Banner ads,column and button ads on the most popular pages(event schedule,public transportation and driving directions and map).A restaurant directory as well as one for hotels,nightclubs and other attractions should be part of the webs ite.Some convention center websites do an excellent job of posting these directories.View the San Diego Convention Center's restaurant directory: hop!/ww w.visitsan di ego.cont/attendees/rest au ran l.s.cfn The center's mobile app The center's WiFi Portal(opening page) B logs,newsletters,annual reports,direct mail pieces The center's social media(Facehook page,Twitter Feeds,Instagra n,Yoti Jute,etc.) Exhibitor Manuals and Order Forms Oth o- • Opportunities to publicly display product-A luxury car in the center's atrium is a good example • Collateral reading material and brochures at concierge/infornatimn desks • Portable cups and napkins in the food corns Reserving Inventory Exclusively for Events How much inventory should he reserved for them?The short answer is-any place public that has height and visibility (exterior,curtain walls,light poles,etc.).A well organized center will publish a guide with diagrams showing locations and standards for sign and banner hanging. Charging Event Management Fees for Advertising Outside of Their Licensed Space-This is an excellent revenue source,at times comprising half of the center's ad and sponsorship revenue.Most event managers already use most available locations.Besides their own trade dress and directional(funnels,in many instances they use these locations to sell advertising to their event sponsors,normally in the form of large fabric banners,stair risers,free standing displays,etc.'fen years ago most convention centers permitted events to sell ads to exhibitors using all the aforementioned media and signage without paying location fees to the convention center.I am pleased to see that many convention centers have ceased this practice and now charge fees and commissions.Convention centers which still offer this for free should be well advised to stop the practice.As controversial as it may seem,the architectural prominence and visibility that was created by public investment and the value it creates for such things as advertising banners gives convention centers clear entitlement to reasonable fees.Use of public areas fur the sale of advertising to others is normally not part of the event manager's license agreement.Fees should he a percentage of fees collected by the event managers from their client(.say 15%).In the ease of public space banners,the percentage arrangement is sometimes not satisfactory.For convention centers,its much easier to audit and collect based on size.Exterior banners should be charged a higher rate(say 20%).Ads for other media,such as the Center's Wifi hotspot'Splash"page,use of the Center's monitors,food court table tops,etc.should be negotiated at market prices. What's the Difference between Sponsorships and Advertising A corporate sponsorship is a form of marketing where companies connect their name,brand,and products and services to a venue for long term in order to enhance their brand,solidify and expand their markets,showcase their products and achieve future profits.It should not be confined with advertising which is direct and overt and contractually a shorter tent.In sponsorships.advertising through signage is inclusive,just one element in a sponsorship plan.A well designed sponsorship generates a stronger and more subtle message.It tends to be more qualitative and has loftier goals than just customer exposure and sales.It is a marketing platform where a company can identify with the best aspects of its partner,where a company can build credibility,prestige and,create a more permanent,lasting bond with Who Are the Potential Spnncn qy It's useful to first separate potential sponsors from ad hoc advertisers.Sponsors should be companies that have a tangible connection and can be easily integrated into a convention center's core business and culture.There are however more subjective considerations.I here has to be the proper feet and fit.It's difficult to define but it comes down to whether the corporate image is one that complements the convention center,the city and vice versa.While the company should obviously be prosperous,they also need to have a certain brand reputation for reliability and quality,and a high corporate standard for civic responsibility. Certain industries seem to fit as ideal sponsorship candidates.They are;an airline with a regional or national huh at the city's airport,a major credit card company,a regional bank which has a solid customer and investment base in and around the city,a utility,a major technology/telecommunications company(preferably one that designs and manufactures,and operates equipment),a media company(preferably local newspaper or TV station),a luxury car company and a long standing major employer for the region.If your convention center is large and busy,then a soft drink sponsor,with exclusivity for advertising and product sales(pouring rights),also makes sense. Some sponsorship marketing consultants,such as Jim Andrews from ESP Properties in Chicago(wwwsponsorship.com)favor technology companies above others. His view is that these companies are in a growth mode,spend heavily on marketing and are generally open to venue sponsorships often seeking these opportunities out, particularly sports and entertainmentvenues.Another consultant,Hugh Wakeham from WAM Associates in Toronto(www.wankety) believes similarly but also sees regional banks and utilities as excellent candidates. He described an interesting case study of naming rights where a utility company Encreare has naming rights to the convention enter at Exhibition Place in Toronto.Enereare uses this sponsorship to demonstrate and promote Green technologies.On site for instance,windmills generate electricity and electricity,hot water/steam and chilled water are generated by a gas fired Tri-Generation power plant. Sponsors will of course require something more than company name and brand exposure through signage. It is useful to have a list of other things that a sponsor could benefit from such as;exposure on your digital media(website,newsletters,blogs,twitter feeds and WiFi portal,etc.),free passes and parking to popular events that they can distribute to employees and clients,free use of public space to sRage daSairpfelErpiiduct,credits for rent,parking and F&B for an event like a corporate fde:///H:/Tonya%20Daniels/commission o20items/Naming%20Rights%20_%20Th¢%20Convention%20Centerh20Advisor°u20Article.himl 2/8 10/8/2018 Naming Rights I The Convention Center Advisor sales or board meeting You may have to be creative here. As mentioned earlier sponsors pay close attention to their return on investment.There are items the convention center can track on their own such as product sales on site if applicable and hyperlink openings and page views.It is very likely that a sponsor nmv ask and possibly ssbly tie the result to renewal and fee negotiations.In my time at the lavits Center it was common for our sold drink sponsor,Coke,to conduct a business review and focus on cases sold per year.The Director of Marketing and Communications at Shaw Centre in Ottawa,Sylvie Carbonneau,described how their luxury car sponsor,Porsche/Audi,tracked sales based on their car displays at the centre. For convention centers a successful sponsorship consists of cash and/or a capital contribution(which could be cash or in-kind-telecommunications/intemet equipment for example),sonic accommodation for day to day operations(airline ticket credits for business travel or discounted utilities),cooperative marketing when these opportunities come up and a long contract term 3 to 5 years with renewal options. Whi Are the Potential Advertisers? A qt ick list should show the categories below and be accompanied by a map denoting walking time from the convention center and headquarter hotel(normally 15-20 min test Restaurants-These can be categorized by p pe of restaurant,ratings of same.price point and distance from major hotels and the convention center Howls Parking Lots and Garages Shopping Nightclubs Attractions Professional Sports Venues Concert Venues Theaters Cultural Attractions(art galleries,museums,historical sites) Beer Wine Oth r advertisers could be car rental companies,an office and hardware retail outlet,exhibit service companies general decorating companies,exhibit appointed con ractors,AN companies,computer/technical supply retail outlets.Advertisers,especially in categories where there are many like restaurants,are typically put in ws to read directories which accessible through the center's website,mobile app and Win portal.In my experience,advertisers normally didn't track ROI closely.As ith sponsorships,the convention center should track hyperlink openings and page views because it is likely that an advertiser may ask and possibly lie the result to renewal and fee negotiations. A Sample Pro Forma For the example below: • Sponsor revenue is based on the Javits Center experience and informal conversations with other convention centers in my consulting business. • Advertising revenue is based on my time at the lavits Center and price schedules from convention centers published on the intemet.The number of restaurants, parking lots,hotels and attractions is bused on those published on the Davis 1..I.awrence Convention Center(Pittsburgh)website • Revenue obtained from fees for commercial advertising sold by event managers in public areas and video/digital media is estimated based on the J avits Center experience.Assume that the center's occupancy in this example is high,say 60-65%.It was then estimated that 15 events would sell exhibitor advertising in public areas of the convention center; 10 events x $50,000 in sales=$500,000 5 events x $75,000 in sales - $375,000 $375.000 x 15%fee = $56,250 $375,000 x 15%lee - $56,250 $75,000-$56,250-$131 2250(estimated total) EVVrill MEV "`"111.."ten basun eromr auto-4naw oa.a"NU" �ry wrvnroe 57500-MOM] 366.250-soma ac on (mew.m wm' 'im MOO-113.750 i50 ummuewvnMnnns nmuumr Sym-item SW50-P.o00 nrw+•eeaav/rn roti tomme-sso.m 059.303-02.50O *Venue obligation includes: On-site signage.possibly on-site retail On sire video time large and small screens Product exclusivity,possibly advertising exclusivity(w/qualifications) Website Ad Social media exposure(Facebook, Twitter Ins/agrmn, YouTube) Mobile APP Ad Rent,F&B.Parking Credits Free passes to public events Cost if above- Sales Comm 5% -Credits(lost revenue)-55000 Page 1354 of 1637 11e///H-/Tonya%20Daniels/commission%20items/Naming%20Rights%20_%20The%20Convention%20Center%20Advisor%20Artiole html 3/8 10/8/2018 Naming Rights I The Convention Center Advisor ADVERTISER NUEARER Winn.FEE ANNIJA5 REVENUE u.t,.ano lm 5 5150 400 s98mo-17:200 160.2%-11340+ Pandrip leis to 1540500 $11200-TODDSIO➢ -14+0] x4015 v Swam S1E000-23400 Si}m-1410 NIghtcrubs 25 $w-700 S25000-35 c - 527400-30500 • .uun.lmu.e.mr.pa, 25 5150 450 111,540-12,500 1527°-32,x52 Hoot shwdq 1 .%vin •hab.M 55E00-7.500NSm-brm A will,hand S1y0-S,ob 52150-4500 • rte oami.m Ssa,tta-ls,ttv $9000-23E50 fled I x003 Sok 200-u,em 457,40-ns,970 " i.4ntie obligation includes N'ebshe Direclnry Social media exposure( acebook. Twitter Instagrom, You Tube,etc l Advertising exclusivity(Pr beer and wine Mobile APP Directory Willi portal directory Cone fege/r J nna ion Booth(Evian and Menu Catalog On site video time large and smallscreens-not included in 6 ma fee schedule above,pricing should he at premium levels Cost pi-above -Saler Gomm-10% REVENUE SOURCE ANNUAL a EVENUE Sponsorships $410000-55O 0 $359,500-492$00 Ad erasing S18E200-260, ] $1672500-2$5,970 -banners, 5131,250 5131,250 ns,sig• a'spray and r le/dig Ml usage Mos 5727.450-942,050 5454x50-459,7x0 How to Get Started-Logical Next Steps Assuming you have already weighed the benefits and risks and reviewed the market size for sponsors and advertisers,these are logical next steps: I.Obtain price schedules from other convention centers that have an active advertising and sponsorship program in place. 2.Build your own pricing model 3.Build a pro forma statement 4 Determine who will do all the administration and sales work.Understand that the sales work is hard work;developing marketing material,making cold calls. making site visits,and price negotiations.Add to that having patience;it will take more than a year to build revenue.Options arc;outsourcing,Integrating the responsibility into existing sales force or add to staff with a new hire 5.Obtain board approval in the form of a policy statement This is important for two reasons;board members are a good resource for potential sponsors and advertisers and obtaining advertisers and sponsors may be regulated by government procurement procedures which really do not apply to this business function, board approval may help avoid this. 6.groin the city government,obtain traffic counts and pedestrian counts for adjacent streets and sidewalks.From your website administrator obtain interne(traffic statistics,Invest in a survey to develop a demographic profile of attendees who normally come to events at convention centen l'ypically they are business men and women between the age of 30 45 with a higher than average annual income. 7.Develop marketing material.'F he link below from the Shaw Centre in Ottawa is a good example: hop:/hvww.shave-centre eon/np-contenV¢pload'R465/12/SHAW-152787e Advertising Possibilities EN.pdf S.Develop a face to face marketing message and a sales plan.'The marketing message should be one of optimism,one that emphasizes positive changes such as an expansion or renovation,or an investment in video screens and digital technology,or the organizing ofa staff to administer and look after the needs of sponsors. Persuade them of your resolve;show them that there is a parity of commitment,that the convention center has"skin in the game". 9.Begin work and monitor progress All About Convention Center Naming Rights Establishing Naming Rights Value It's easy to be lured into believing that naming rights as a financial bonus for convention centers.Decision makers may be influenced by media reporting and tend to overlook that only the global level deals are reported.They hear about deals like the Barclay Center(Brooklyn Arena-Brooklyn Net home w/18,000 seats)valued at $200M over 20 years or the American Airlines Center(Home of NBA's Dallas Matricks)for S 195M for 30 years.In these instances they must realize that he team's market area is significant with a fan base which is loyal and reliable and stretches to anywhere television and radio can reach.Still,it's hard novo think about the possibilities and 1 believe,beyond the blockbuster deals,at some point linear thinking takes over.They see their hometown arena achieve a significant naming rights deal in a small market area and they start thinking and believing their convention center can do likewise.As an example,the Chesapeake Energy Center in Oklahoma Page 1355 of 1637 fide:/I/H:/fonya%20Danielslcommission%20items/Naming%2ORighis%20_%20The%20Convention%20Center%20Advisor%20Article html 4/8 10/8/2018 Naming Rights I The Convention Center Advisor City(home the NBA's Thunder WI]er,000 seats)obtained a naming rights deal of$36M for 12 years.The Cox Convention Center across town has 100,000 sq.ft.of exhibit space and a 15.000 seat arena(w/minor league hockey and an arena football team)and obtained a naming rights deal valued at$13M for 7 years,nothing linear about that.Linear thinking doesn't work when comparing naming rights values to major league sports. Linear thinking doesn't appear to work when comparing the values of existing naming rights deals for convention centers either.If you study the table below you will see that it Is wen difficult to see any sense using valuation methods(cost,income or mrket valuation)when it comes to establishing a convention center's naming rights value.The comparisons are too few,the market sizes and the venue sizes too diverse to see patterns.Additionally some relatively small markets have achieved surprising value;the I IV-Vee Exhibition I tall in Iles Moines is a good example(88million with a term of 10 years). From the current number of naming rights deals(14)the following characteristics are evident; • Naming rights deals were dosed during or after new,expanded or major various took place. • The core market areas for most companies holding naming rights are regional.One reason to pursue naming rights is to maintain and solidify the markets they already have.For those who are not historically regional,their eye is on expansion to new regional markets.This was the case for naming rights deals in Niagara Falls,CA Scottahank Convention Centre and Ottawa CA-the Shaw Centre. • Most arc for2ndmarkets in the US.I am convinced that convention centers in 2nd tier markets in the US are the best naming rights candidates. • Proportionally Canadian convention centres are more likely to pursue and successfully close on naming rights in 1"and 2„4 tier markets than the US • The financial sector(banks,finance companies and insurance)have the highest percentage at 57%,technology companies next at 22%.then utility companics at 14%.At one point an airline held naming rights but that contract has lapsed. • About 40%of the naming rights holders were acquired by other companies during the naming rights term.Expect name changes. r�uuaw wamum µw 1 m. =u ur•m ver e..WM .r. ..... NAP trieren.weir. MO. rabi TrogymIty • ,IeNtneon4reet 101,9 51.01 What's in a Name? For a convention center,I think there's a whole lot in a name It may sound trivial and shallow but the sound and the emotional response of a name can result in a name that can be so inappropriate,awkward and some say hideous that it is cause for public embarrassment and ridicule.There are many examples;The KFC VUM!Center in Louisville,Whataburger Field in Corpus Christi,Smoothie King Center in New Orleans and the Bargain Booze Stadium in the UK. Fortunately none of these venues convention center.One convention center in Iles Moines had a naming rights deal with the final name being the Veteran's Memorial Community Choice Credit WuonConvention Center.In my opinion the name is an awkward mouthful.Common sense prevailed in this instance and the exterior sign remained The Veterans Memorial with the longer version seen less prominently in the interior of the facility. The Inherent Difficulties for 1st Tier US City Convention Centers Pursuing Naming Rights The success rate shows and I am convinced that convention centers in 2nd and ant tier markets in the U.S are the best naming rights candidates.Not long after new sanagement took over the operation of the Javits Center in 1996,a private conversation regarding Javits progress took place where 1 was present_By chance the ubject of naming rights came up.Business at the center was turning favorable rapidly and the idea of naming rights seemed a natural.The conversation ended but no subsequent actions were discussed or planned.Within days,a bill was introduced in the NV State legislature prohibiting any attempt for a name change to the Jacob K. Javits Convention Center 1 am certain no one at the meeting talked about it and clearly the draft of that legislation was prepared long before our meeting took place.So !learned how these matters evolve.1 believe wise and experienced convention center managers at 1st tier convention centers know in advance the likely outcome if naming rights are aggressively pursued. If the center bears the name of a beloved and respected political leader,alive or dead,the effort will be mired in controversy. Potential naming rights sponsors will steer clear of the controversy and convention center leadership will be happy to oblige.If the center only bears the city's name it is possible that the potential deal value will drive an action plan.Expect pride of place advocates to object to a name change.If that doesn't discourage the effort, government procurement procedures pose another impediment.Acquiring naming rights is not on any company's annual marketing budget Candidates for naming rights have to be courted and persuaded:a process that does not fit into the typical RFP process. This process needs to be conducted quietly whereas the RPP process is blatantly public and gives cause for a company to decline to bid.Conviytiglbecilen4nhle lm seek out the services of a marketing consultant,one who has closed file:///R/fonya%20Daniels/commission%20items/Naming%20Righis%20-%20The%20Cotvention%20Center%20Advisor%20Artide.html 5/8 10/8/2018 Naming Rights I The Convention Center Advisor ling rights deals before and understands the language and nuances of naming rights valuation.In my experience and in all the research I conducted,none of the naming rights deals closed by following n traditional RPP process and most sought the help ofa marketing consultant. Recommendation-An Alternate Idea to Full Facility Naming Rights There are some excellent examples of convention centers where portions of the centers arc ofthred for naming rights.The David L.Lawrence Convention Center in Pittsburgh sold rights to its 34.000 sq.ft.ballroom to Dollar Bank for$1M and a term of 5 years.The Dollar Bank graciously named the ballroom'The Spirit of Pittsburgh"and installed several displays depicting the history of Pittsburgh throughout the center.At the Colorado Convention Center in Denver naming rights to its 5.000 seat concert theater were sold to Bellco for$1.25M at a term of 5 years.There are discrete and iconic architectural spaces that have naming rights potential in convention centers;an elegantly designed ballroom,an outside terrace or garden used for special events,an architecturally prominent lobby,a new meeting room suite or technologically advanced boardroom.Convention centers which are wen large and subdivided into separate buildings offer unique opportunities Er naming rights.Imagine the for principal building of McCormick Place(the Nosh,Saudi,West and 1"akeside Center)bearing corporate names.The tradition and integrity of the McCormick Place name stays in place and an excellent ieveoue prospect is exploited.I see similar possibilities at the Orange County Convention Center.the Vancouver Convention and Exhibition Centre and the Moscone Center Advertisements Written by'limarare leave a comment Posted in Keeping Crack of 13psineks.Sales&Marketing,Uncategorized Tagged with Advertising S§L9.Canadian Convention Centres,Colorado Convention Center, Community Choice Credit Union Convention Center,convention center, Convention Centres,Corporate Sponsorship,David I Iawrence Convent ion Center,Dollar Bank,Duke Er,ery Center,Ilnercare,I nerearc Convention Centre,FSP Clobal,I lv-vee,lavits Center,Linear I Fink inv. Mcconnick Place,Naming RighL1,Swliahank Convention Centre.Shaw Cents,SEAM Associates Search For: !Search Recent Posts . ,. _,M e,.In the US"Convention Centers Are Not Designed to Blake a Profit"-A Contrarian Vi eel • Union labor in CS Convention Centers- How to Negotiate a Collective Bargainine Agreement(CBA)that Fit he C my n i a . r 3 :'nee:Model • A Primer on lter :11MM Association Conferences and EY ems-Who"They What Countries and Cities They Select aEvent I=lions and,How Do The)_ Conduct Business • Starting and Expanding Advertising and Sponsorships as a Revenue Stream • Service Profit Centers at Convention Centers-Electric Services-I low to Evaluate Current Business and Improve Revenues and Profit Categories [Mercy Management Facility Manages Keeping Track of Business Sales&Marketing Telecommunications&Internet Services 1hhr salmi Recent Comments nhmegranc on Consumer Shows-A Fresh Vicw... Inmomcovila2o I5 on Consumer Shows-A Fresh View... mincgono on Sales and Marketing-Mat . {•. 2 Jill Dirket on ales and Marketing-Ma.- SM Vi Ar liives March 2017 Decanbe4o16 September 7016 lay 2016 May ENO Apfi12016 Bebrnary 2016 Januar 7016 December'0I5 Follow Blog via Email Enter your email address to follow this blog and receive notifications of new posts by email. Join 28 other followers Page 1357 of 1637 file:///H/Tonya%20Daniels/commission%20items/Naming%20Rights%20_%20The%20Convention%20Cenler%20Advisor%20Article.html 6/8 10/8/2018 Naming Rights The Convention Center Advisor Enter your email address Lollow�. Rlogroll • 11111M Citi Email to Subscribe to our Mailing List Concentadvisor(Nrmail.com Create a tree website or Nog at Word press.com. • WI-Follow The Convention Culler Advisor o• IX CuSWm ize W▪ Follow • gig„ p O Login o R&porl this content o byg suhscriy. ns o Cniiapse this bar • w+Follow • The Convention Center Adv lsgg o %Customize ° +Follmn o Sign p • LS6j1 o Report this content o Manage subscriptions o Collapse this bar Page 1358 of 1637 file:///H/Tonya%20Daniels/commission%20items/Naming%20Righis%20_%20The%20Gonvention%20Center°/o20Advisor%20Article.html 7/8 10/8/2018 Naming Rights I The Convention Center Advisor Page 1359 of 1637 tile:///1 :/Tonga%20Daniels/commission%20items/Naming%20Righis%20_%20The%20Convention%20Center%20Advisor%20Article.html 8/8 10/8/20188 Omaha convention center could get a new name AP ry �p I {3 �CL.t i, .�i {r 103 t� S�.'` en e. P( t �, is p. vA. yt Jan. 18, 2018 OMAHA,Neb. (AP) Officials at a convention center in Omaha hope to sell the facility's naming rights for top dollar. SI A The current 15-year,$14 million naming rights contract for the https//ww CenturyLink Center will expire in the fall,the Omaha World- Herald reported . RELATED TOPICS Omaha More from The Metropolitan Entertainment and Convention Authority North America voted Wednesday to hire a consultant to create a new naming rights contract that could go to a new sponsor. The authority hopes to get at least$10 million for the naming rights for an undetermined number of years. That money is used to help fund upkeep and upgrades,said Kristyna Engdahl,MECA spokeswoman. CenturyLink officials said they're interested in keeping the company's name on the complex. "We've been known in the greater Omaha area by our CenturyLink Center Omaha sponsorship for the last 14 years. Omaha is an important market for CenturyLink and we would welcome the opportunity to continue our relationship,"said Rachel Woodward,a spokeswoman for the company. While the convention authority has had a good working relationship with CenturyLink,officials wanted to explore other options, Engdahl said. Page 1360 of 1637 haps'.//www.apnews.com/ado30c45f68a4a71 b461ac1e34f/4976 1/5 10/8/2018 Omaha convention center could get a new name The authority has contracted with Professional Sports Partners to create a new agreement. It will pay the company$to,000 for at least six months and an additional 3 percent of the gross naming rights deal if the company secures a naming rights agreement. The arena and convention center opened in 2.003. Qwest had a 15-year agreement with the city,but the complex was renamed in Zen after CenturyLink acquired Qwest.When the naming rights first were discussed in the early 2000s,Mutual of Omaha, ConAgra and Cox Communications were all likely candidates. Naming rights for an arena will likely attract a business that values being philanthropic,said Phani Tej Adidam,professor of marketing and entrepreneurship at the University of Nebraska at Omaha. "It's like giving back,"he said. "They want to show they're a good citizen." Information from: Omaha World-Herald, http://www.omaha.corn Bette Midler apologizes after her... NEW YORK (AP) —Bette Midler is apologizing for... 3 days ago Ad Content Forget Your 401k if you Own a Home (Do This) Page 1361 of 1637 https://www.apnews.cam/adc30c45168a4a71 b461ac1e34f74976 2/5 10/8/2018 Omaha convention center could get a new name Promoted:Morning Finance I LendingTree Quotes Worlds First Surviving Septuplets. Look At Them 20 Years Later Promoted:DailyChoices Here's What Makes An Azure Free Account So... Promoted:Microsoft Azure We Tried HelloFresh: Here's What Happened Promoted:Popdust for HelloFresh Limousine crash ranks among... A limousine carrying 38 people crashed over the ... 15 hours ago Melanie Trump loses footing with elephan... NAIROBI,Kenya (AP) — Melania Trump briefly lo... 3 days ago Ad Content How You Can Help Your Dog Be Healthier By Trying This CSO T36ia1637 https://www.apnews.com/adc30c45f68a4a71b461ade34f74976 3/5 10/8/2018 Omaha convention center could get a new name You Can Stop Your Hair Loss For Only $5. What Real Men Are Saying Prmmnredr Nims Woman Hears Crying Baby Coming From Dog's Litter, Looks In And Calls 911 Prmmnred-The 11w?Tule Texas congresswoman fire... AUSTIN,Texas (AP) —A Houston Democratic ... 3 days ago Wisconsin woman struggles after... WHITEWATER,Wis. (AP) —After two sprays of... 2 days ago AP NEWS THE ASSOCIATED PRESS MORE FROM AP FOLLOW AP About About Us AF ¢S63 of 1637 https.//www.apnews.com/adc30c45f68a4a71b461ac1 e34f74976 4/5 10/8/2018 Omaha convention center could get a new name Terms and Conditions Products and Services Al'Archives , ® Sa 0 Privacy Media Center AP Video Hub Company Contact Us Careers All contents®copyright 2018 Associated Press.All rights reserved. Page 1364 of 1637 https/Avww.apnews.comtadc30c45f6aa4a]t b461 act e34f74916 5/5 02OOj— 21-90 s/ Os- lR '7f-/ 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 22ntl 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 1 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. Page 1365 of 1637 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 Page 1366 of 1637 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 Page 1367 of 1637 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; Page 1168 of 1637 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; Page 1369 of 1637 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 Objective 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 Objective 3: Develop Strategic Plan for Marketing Assets Write a Strategic Plan for marketing of City of Miami Beach assets identified and Page 1*70 of 1637 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 Page 1371 of 1637 $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 II 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 II 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, 3'" Floor Miami Beach, Florida 33139 Page 1§72 of 1637 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. Page 9373 of 1637 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 Page ,Q74 of 1637 Consultant for the Consultants 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 by 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. Page 1175 of 1637 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 Insolvency 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 Consultants 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. Page 1376 of 1637 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. 7The companies must be rated no less Page i 77 of 1637 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 Page 1 i78 of 1637 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. Page 113579 of 1637 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 Page 1'80 of 1637 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 JURISDICTIONNENUE 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 into 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, Page H81 of 1637 • 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 anyway 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] Page 1382 of 1637 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their appropriate officials, as of the date first entered above. FOR CITY: CITY O4IAl BEACH, FLORIDA ATTEST: By: frA iaittit-i^- City ClerkPr Mayor FOR CONSULTANT: SUPERLATIVE GROUP, INC. ATTEST: .. '' By: By: 11. 4,10 A4G�� , Secretary/ Signature � / Sign. ure 4 :rtic4affillillty tffg-/7 2esrn4r Print Name/ Title Print Name /Title APPROVED AS TO FORM&LANGUAGE tFOR EXEA.TION ad LID1/34/1/7 t1► Page 19 383 of 1637 ,010-0173oy AMENDMENT NO. 1 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 /51 day of tC6rk'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 II 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 Page 1384 of 1637 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 II 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 II": 3.1. The City hereby acknowledges that it has elected to proceed with Consultant to provide Phase II 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 (OR) 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 2 Page 1385 of 1637 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)l0% commission on $500,001 — 1,000,000 in OR to City; (iv)6% commission on$1,000,000+ in GR to City; And, additionally, (v) 7% commission on renewals (percentage of OR 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 3 Page 1386 of 1637 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 4 Page 1387 of 1637 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 case 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 5 Page 1388 of 1637 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 6 Page 1389 of 1637 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. 7 Page 1390 of 1637 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] 8 Page 1391 of 1637 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 AA(Pak Cia, SillitilA) (lf1Ty Clerk r a ATTEST: THE SUPE' T GROUP,INC. lilts b ecretary Ashley Malone Print Name Prin r APPROVED AS TO FORM&LANGUAGE &FOR CUTION i *TO tit/ Date Page 134 of 1637 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.) Page 1391316 1637