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2010-27309 ResoRESOLUTION NO. 2010-27309 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ALL MATERIAL AND SUBSTANTIVE TERMS OF THE AGREEMENT BETWEEN THE CITY AND THE SUPERLATIVE GROUP (TSG), AS THE SUCCESSFUL PROPOSER PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 06-04/05, FOR THE IMPLEMENTATION OF PHASE II OF A MUNICIPAL MARKETING PROGRAM; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY (OR THEIR RESPECTIVE DESIGNEES) TO FINALIZE THE AGREEMENT, BASED ON THE TERMS IN THE ATTACHED TERM SHEET; AND, SHOULD THE CITY AND TSG SUCCESSFULLY NEGOTIATE AND FINALIZE SAID AGREEMENT, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT. WHEREAS, municipal marketing provides a mechanism for a municipality to generate revenues or resources through partnerships with business entities at no cost to the municipality; and WHEREAS, these partnerships provide mutual benefits to the municipality and to the business entity through the co-identification with, and promotion of, the partnership between the two brands; and WHEREAS, the City of Miami Beach has a recognized and desirable "brand" that provides a marketing opportunity for the City; and WHEREAS, certain business entities have been and would be desirous of partnering with the City in an effort to co-identify with the City's brand; and WHEREAS, on February 23, 2005, the City Commission approved the issuance of a competitive selection process to contract with an entity that specialized in municipal marketing, to assist the City in developing a municipal marketing program; and WHEREAS, on March 22, 2007, the City entered into an agreement for $39,000 (plus expenses) with The Superlative Group (TSG), for Phase I of a municipal marketing program; specifically, for the development of an Asset and Valuation Inventory, a Strategic Planning Document, and a Policy Document; and WHEREAS, TSG has completed the Phase I deliverables; and WHEREAS, the Phase I deliverables reflect potential revenue opportunities for the City, and provide for a mechanism to implement a municipal marketing program that is responsive to the City's needs, while protecting the City's unique and historic character; and WHEREAS, Phase II of the municipal marketing program involves contracting with a consultant for the solicitation, negotiation, and implementation of the program, including, without limitation, soliciting and entering into municipal marketing agreements with business entities; and WHEREAS, the Phase I Agreement with TSG allowed for the City, at its sole option, to engage TSG for Phase II of the municipal marketing program; and WHEREAS, TSG is an industry leader in the development and implementation of municipal marketing programs; and APPROVED AS TQ FORM & LANGUAGE WHEREAS, the City Administration recommends proceeding with TSG to provide the aforestated Phase II services; and WHEREAS, the City has negotiated the attached Term Sheet with TSG, which contemplates entering into an agreement with TSG for an initial term of three (3) years, with two (2) one year renewal options, at the City's discretion; and WHEREAS, TSG's compensation under the Agreement would be on a commission basis; accordingly, the City would pay TSG $49,500, as a reimbursable draw on future commissions, plus a maximum of $15,000 in other expenses, for TSG to implement Phase II of a municipal marketing program. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve all material and substantive terms of the Agreement between the City and The Superlative Group (TSG), as the successful proposer pursuant to Request For Proposals. (RFP) No. 06-04/05, for the implementation of Phase II of a municipal marketing program; authorizing the City Manager and City Attorney (or their respective designees) to finalize the Agreement, based on the terms in the attached Term Sheet; and, should the City and TSG successfully negotiate and finalize said Agreement, authorizing the Mayor and City Clerk to execute the final Agreement. PASSED AND ADOPTED THIS ~ DAY OF J ~h~yrc 10. ATTEST: CITY CLERK MAYOR T:\AGENDA\2010Uanuary 13\RegularWluni Mktg Comm reso 1 13 10.doc & FO CUTION i ~ ~ ~-~~1 ri e -~~-~- i E COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Approving All Material And Substantive Terms Of The Agreement Between The City And. The Superlative Group (TSG), As The Successful Proposer Pursuant To Request For Proposals (RFP) No. 06-04/05, For The Implementation Of Phase II Of A Municipal Marketing Program; Further Authorizing The Mayor And City Clerk To Execute The Final Agreement; Said Agreement Having An Initial Term Of Three (3) Years, With Two (2) One-Year Renewals, To Be Exercised At The City's Sole Option And Discretion. Key Intended Outcome Supported: Maximize Miami Beach as a destination brand; improve City's overall financial health/maintain overall bond rating Supporting Data (Surveys, Environmental Scan, etc Approximately 40% of retail businesses surveyed rank Miami Beach as one of the best places to do business; 61% would recommend Miami Beach as a place to do business; Issue: Should the City Commission approve the agreement with The Superlative Group for Phase II of a municipal marketing program to generate revenues for the City from sponsorship and partnership opportunities? Item Summa /Recommendation; In 2005, the City issued RFP NO. 06-04/05 for the purpose of implementing a municipal marketing program. Municipal Marketing, or corporate sponsorship, is designed to "link complimentary corporate brands for mutual benefit." For cities, this represents an opportunity to generate non-tax revenues, to provide services or goods at no cost to residents, and to provide promotional opportunity for the City that may attract residents, businesses or visitors. For business partners, the benefit is typically some form of advertising, public relations or visible recognition, with an end goal of further promoting their brand. Developing and implementing a successful municipal marketing program requires inventorying City assets, determining the sponsorship marketing value of the assets, developing sponsorship management policy, the actual marketing of the assets and negotiating sponsorship contracts. As such, the City determined that professional assistance was desirable and issued an RFP for services to be broken down into two phases: Phase I -Development of Asset Inventory/valuation, Policy Document and Strategic Plan; and Phase II -identification, marketing and negotiation of sponsorships/partnerships. The City retained the right to use the entity contracted to produce Phase I for the Phase II work. A final agreement was executed with The Superlative Group (TSG) on March 22, 2007, for Phase 1 of the program. TSG provided the three deliverables in Phase 1 to the City. The deliverables were presented to the Finance and Citywide Projects Committee, who subsequently directed staff to negotiate an agreement with TSG for Phase II work. The proposed agreement provides for a commission system. However, the City negotiated a tiered commission, as well as a "draw versus commission" in lieu of a retainer fee. The draw is reimbursed to the City from commissions earned. As negotiated, TSG would receive up to $5,500 per month for up to nine (9) months of draw versus commission. In addition, TSG would receive up to $15,000 in reimbursable expenses associated with the marketing of the sponsorship/partnership agreements. The City of Miami Beach enjoys a positive brand image that is attractive to a variety of potential sponsors. While municipal marketing programs provide revenue enhancement opportunities for the City, it is recognized that whatever municipal marketing opportunity is pursued by the City needs to be compatible with the City's goals and expectations. It is recommended that the Mayor and Commission approve the proposed resolution to proceed with Phase 2 of the municipal marketing program, and approve the proposed agreement with The Superlative Group, for the terms and conditions set forth in the attached RFP. Advlso Board Recommendation: Finance and Cit ide Projects Committee June 25, 2009, November 17, 2009 Financial Information: Source of Amount Account Funds: ~ $64,500 FY10 General Fund Operating Contingency Account # 011-9975-000356 2 O I Total $64,500 $49,500 is a recoverable draw against commission that will reimburse Acct. 011-9975-000356 Financial Impact Summary: The municipal marketing program is designed to generate revenues to the City, or provide savings through cost avoidance. The otential revenues are not known at this time, but are ex ected to exceed the consultant costs. Ci Clerk's Office Le islative Trackin Hilda M. Fernandez/Mariu Emmons Sian-Offs: Department Director ( Assistant City Manager City Manager MIAMIBEACH ""'°^ DATE ~' m MIAMIBEACH City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.aov COMMISSION MEMORANDUM ro: Mayor Matti Herrera Bower and Members of the City Co fission FROM: Jorge M. Gonzalez, City Manager DATE: January 13, 2010 sU~1ECr: A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING ALL MATERIAL AND SUBSTANTIVE TERMS OF THE AGREEMENT BETWEEN THE CITY AND THE SUPERLATIVE GROUP (TSG), AS THE SUCCESSFUL PROPOSER PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 06-04/05, FOR THE IMPLEMENTATION OF PHASE II OF A MUNICIPAL MARKETING PROGRAM; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT; SAID AGREEMENT HAVING AN INITIAL TERM OF THREE (3) YEARS, WITH TWO (2) ONE-YEAR RENEWALS, TO BE EXERCISED AT THE CITY'S SOLE OPTION AND DISCRETION. RECOMMENDATION: Approve the resolution. BACKGROUND: Municipal Marketing, or corporate sponsorship, is designed to "link complimentary corporate brands for mutual benefit."For cities, this represents an opportunity to generate non-tax revenues, to provide services or goods at no cost to residents, and to provide promotional opportunity for the City that may attract residents, businesses or visitors. For business partners, the benefit is typically some form of advertising, public relations or visible recognition, with an end goal of further promoting their brand. While the business gains financially by marketing advantage and/or customer loyalty enhancement, the advantage to the City is primarily financial. Businesses will pay the City for the ability to use or link with our City image and identity, especially as our City enjoys an excellent public image and is considered a strong "brand." Miami Beach is especially well positioned to implement this now well-established model for generating additional revenue. The suggestion that that City implement a municipal marketing program was first introduced by the Parks and Recreation Programs Blue Ribbon Citizen's Committee as a mechanism to assist in funding program costs for our Parks Department. The City established a Development Coordinator position whose primary responsibility was to identify potential advertising and sponsorship opportunities. The Development Coordinator subsequently researched current successful municipal marketing consultant practices; reviewed other local government municipal marketing programs; formed and led a City of Miami Beach municipal marketing evaluation team; interviewed several leading national municipal marketing; and determined that the City of Miami Beach had significant potential for success through a professionally structured and managed municipal marketing program. Developing and implementing a successful municipal marketing program requires inventorying City assets, determining the sponsorship marketing value of the assets, developing sponsorship management policy, the actual marketing of the assets and negotiating sponsorship contracts. As such, the City determined that professional assistance was desirable and issued an RFP for services. A competitive (RFP) process was issued in 2004 and the City received proposals from a variety of consultants proposing to assist the City of Miami Beach with the development and implementation of a Page 2 of 6 Municipal Marketing municipal marketing program pursuant to Request for Proposals (RFP) No. 66-02/03. The municipal marketing. program was intended to broadly market the City of Miami Beach and to attract revenues to the City of Miami Beach by allowing sponsoring entities to identify with the City. However, due to a bid challenge and subsequent investigation, no action was taken at that time. On February 23, 2005, the Commission approved the issuance of a second competitive process (RFP NO. 06-04/05) for the Development and Implementation of a Citywide Corporate Marketing and Sponsorship Program. Four responses were received for that competitive process, with the Commission selecting IMG, an industry leader in municipal marketing. In particular, IMG had supported municipal marketing plans in several U.S. Cities. The Commission further approved that if we were unable to negotiate an agreement with IMG, then we were authorized to negotiate with the second ranked proposer, The Superlative Group. The proposed agreement was to be divided into two phases (as described in the RFP): 1. Phase I: Conducting an inventory of existing and prospective tangible and non-tangible marketing assets; 2) Developing a comprehensive sponsorship policy; and 3) Developing a strategic plan for marketing assets. 2. Phase II: At its sole discretion, the City could elect to: • Terminate the corporate sponsorship program; or, • Continue the program with the marketing of inventoried and valued assets with the vendor that performed work outlined in Phase I, paying earned commissions to the vendor through that process; or, • Continue the program through issuance of an RFP for a new vendor to market the inventoried assets, paying earned commissions to the new vendor through that process. This Phase II work would consist of marketing the City's assets, to include developing sample rights packages for the marketplace; assisting in the evaluation and development of sponsorship RFP's; identifying corporate sponsors; preparing reports and presentations on the City's municipal marketing program, as directed by the City; assisting in contract negotiations; and providing advice in implementing/managing sponsorships. The decision to enter into Phase I I work, or to proceed to implement the sponsorship program, and with which consultant, is solely that of the City Commission. IMG proposed a fee structure that provided a monthly fee of $20,000 per month for the first 12 months of the relationship (plus approved expenses), and a 20% sales commission on all amounts generated for the City; this included a credit to the City of up to 50% of any fees received against the commissions generated if they were selected for Phase 2. After several months of discussions, the City negotiated a fee of $60,000 plus expenses. However, in February 2006, IMG notified the City that they would not be continuing their negotiations and would not execute their agreement with the City, as they were reconsidering the continued participation in municipal marketing programs at that time. Following consultation with the City Attorney's Office, and as approved by the Commission action, staff began negotiations with the second-ranked proposer, The Superlative Group, for Phase 1 of the program. A final agreement was executed effective March 22, 2007 for a contract amount of $39,000 (plus expenses) to provide the three deliverables in Phase 1. TSG is a privately held corporation headquartered in Cleveland, Ohio, with offices in Cincinnati, Detroit and Miami. This full service marketing, consulting and sales corporation was established in January, 1994, and they have a long history of working with entities to create mutually beneficial tie-ins to attractive events, places and personalities. Their clients include large corporations, professional sports teams, city and county governments, sports and entertainment properties/venues and colleges and universities. Current government partners include the Greater Cleveland RTA, Chicago Parks and Sedwick, Kansas. In consultation with the City's Development Coordinator, The Superlative Group developed a strategy for the compilation of the information for an Asset Inventory and Valuation Report, one of three deliverables in Phase I. This process entailed interviewing City Departments, conducting site visits to assess potential Page 3 of 6 Municipal Marketing sponsorship opportunities within the City and researching potential values and marketability of the assets based on comparable opportunities, and the current market. Subsequently, The Superlative Group was to complete the second and third deliverables, the Strategic Plan and the Policy Document. The Asset Inventory and Valuation Report was completed in late 2007 and required revisions and updates to reflect new opportunities. In early 2008, it was concluded that all three deliverables should be completed for presentation to the City Commission concurrently. The remaining deliverables were subsequently provided for review. The departure of the Development Coordinator (the contract administrator for this project) resulted in an unanticipated delay in completing the internal review of the documents. The deliverables were presented to the Finance and Citywide Committee at their June, 2009 meeting. It was requested that staff return with additional information, including a proposal for terms for an agreement with The Superlative Group for Phase II. Staff subsequently provided additional information to the Committee in November, and received direction to bring proposed terms of an agreement to the Commission for consideration. The three deliverables produced by TSG, and previously provided to the Commission, include the following: 1. Asset Inventory and Valuation Reaort. This report provides an explanation of the municipal marketing approach, municipal marketing opportunities, successful examples of municipal marketing and a matrix of assets identified throughout the City for potential sponsorship opportunities. The matrix provides a broad look at the types of assets owned by the City that may provide a value to a sponsor; these may be facilities, programs or events, or other intangibles. A brief description of each asset is given, as well as a description of the rights available, a value rating and an estimate of the level of difficulty in "selling" that asset. In some instances where no benchmarks may exist, it is difficult to assess a value for an asset. In other cases, sufficient information was not available at the time the report was completed to assess a value. The matrix also includes a listing of other assets or sponsorships the assets can be packaged with to maximize interest and value. In most cases, the value provided anticipates that the sponsorship includes a "package" of opportunities for the sponsor. It should be noted that although naming rights typically present the highest return, they are also typically the most difficult to negotiate, and may not be the priority of the City for aesthetic or other reasons. 2. Strategic Plan: This report uses the information from the Asset Inventory and Valuation Report to provide a recommended plan for the implementation of the municipal marketing plan. This Strategic Plan is a working plan that will incorporate the comments and suggestions of the Commission and other input, but presents the framework for the implementation of the program. 3. Policy Document: This deliverable was intended to outline the general policies to be considered in the implementation of a municipal marketing program. Much like the Strategic Plan, it is intended to provide an outline of suggested policies for the consideration of the City Commission based on typical municipal marketing programs, but reflecting our typical processes. It is expected that the document will be further amended following review and input by the Commission. It should be noted that community input and feedback is important in the implementation of the municipal marketing program, as this ensures an understanding of the program's goals and how they compliment. In unison, the three documents provide the City with documents that will assist the City in developing and implementing a municipal marketing program, and form the framework for the anticipated second phase of the program -the identification, negotiation and contracting of municipal marketing partners. CURRENT/INTERNAL CORPORATE MARKETING EFFORTS: An effective corporate marketing program involves market research and review of existing City assets to ascertain a value to the business. This "value" may be in the form of name recognition, association or access to possible "clients." The City has engaged in sponsorship efforts for events such as Sleepless municipal marketing was the agreement with Izod/PVH for the provision of uniforms for our Ocean Rescue, Pool Lifeguard, Fire Rescue and Golf Club personnel. This agreement provided uniforms at no cost to the City. In exchange, Izod was provided the ability to identify itself as "the official outfitter" of these departments, and Page 4 of 6 Municipal Marketing place their logo (with city approval of location and size) on the products they provided at no cost. No cash commitment was made by the corporation, and the marketing element of the program never fully materialized. The City is in the final year of deliverables and Izod has advised us that they will not be pursuing renewal. The identification of a replacement provider would be a priority under the municipal marketing program. PROPOSED STRUCTURE OF A MUNICIPAL MARKETING PROGRAM: Should the City Commission decide to proceed with the implementation of a municipal marketing program (Phase 2), it is proposed that an agreement with a professional municipal marketing company be considered to assist the City in identifying and pursuing municipal marketing opportunities with partners that include national and/or international brands. The City employee's responsibility is to act as contract monitor for the program. However, it is our expectation that the City employee will continue to pursue these smaller-scale municipal marketing opportunities to assist with "one-off' events (grand openings, special events, etc.), advertising off-sets (such as the pooper scooper bags), and other opportunities generated or solicited to offset programming or other City hard costs. While it is anticipated that the contracted municipal marketing company shall serve as the primary City representative in pursuing the more lucrative municipal marketing opportunities, the City occasionally receives unsolicited expressions of interest from organizations or corporations interested in partnering with the City. The City will assess the opportunity and may decide whether to pursue the partnership in-house, or whether to request the assistance of the City's municipal marketing company. In those instances when the City pursues the partnership directly, there is no payment or other consideration provided to the municipal marketing company. It is important to note that these opportunities are likely to be less lucrative than the types of opportunities typically pursued and developed by municipal marketing companies. As previously noted, the City contracted with The Superlative Group to provide the services in Phase I of the Municipal Marketing program. In light of the potential for revenues, as well as brand recognition for the City, at this time it is recommended that the City consider pursuing implementation of Phase 2 with The Superlative Group, as provided for in the RFP. Staff researched typical contractual terms for municipal marketing programs, including models for commissions on agreements secured. Terms were negotiated with The Superlative Group for Phase 2 based on research on other similar agreements. These terms, delineated in AttachmentA, include a "draw versus commission" model that provides a payment to the company during the development of potential prospects, but that is recoverable by the City from any commissions resulting from agreements with corporate entities. This "draw" model has become more common in recent years, although models with direct, fixed retainers also currently exist. The draws are intended to cover the municipal marketing staffs investment in researching and negotiating potential municipal marketing partners for the City, especially as there is no guarantee that the City will ultimately approve any municipal marketing partnership presented by them for the City's consideration. In addition, this draw covers the cost of staff assisting in the development, review, etc. process relating to any competitive process that may be used for the selection of a municipal marketing partner, as well as their assistance in negotiating terms and in assisting staff with the development of subsequent agreements. The proposed source of the draw is the General Fund Contingency, which would then be reimbursed from TSG's commissions. The attached also reflects a tiered commission model that reduces the percentage of commission that can be earned based on the value of the municipal marketing agreement. It should be noted that most typical municipal marketing agreements have a flat commission structure. The commission structure includes a percentage for new revenue opportunities, as well as for budgeted cost avoidance opportunities. Budgeted cost avoidance measures mean those items previously included in the City's annual adopted budget. This commission would be paid if and only if the City would have purchased these items from another source outside of the scope of the agreement. The City has no obligation to pay commissions where the benefits are of a non-cash nature, including but not limited to the provision of property or services to the City, when such Page 5 of 6 Municipal Marketing property or services are either not currently provided or purchased by the City. A commission is also provided for renewal terms (one renewal period). As previously noted, the City retains the right to enter into negotiations directly with any business entity that approaches the City; no commission would be paid to TSG unless their assistance is requested. A separate line item allocation is provided for reimbursable expenses. These expenses are typically travel, and TSG will follow the City's travel policies and standards utilizing a reimbursement model. This amount is capped as indicated and will be monitored by staff. TARGETED INITIATIVES/BENCHMARKS At the November Finance and Citywide Projects Committee, it was requested that TSG provide a proposed list of targeted opportunities. Attached, please find information provided by TSG last summer relating to initial opportunities they intend to pursue, which include opportunities identified in the Asset Inventory and Valuation document (Attachment B). This was a very conservative list of possible revenues, and it will be further expanded by other short- term and long-term opportunities as they are researched following contract approval, as they may present themselves, or in response to requests by the City to pursue specific expense- offset/revenue-enhancing opportunities. For example, a significant cost avoidance priority is the identification of a replacement sponsor as our official outfitter of our Ocean Rescue, Pool Lifeguards, Fire Rescue, as Izod/PVH's agreement with the City is expiring, and they have advised us they will not be renewing. Recent municipal marketing opportunities provide a sense of potential partnerships, such as San Diego's partnership with Pepsi ("Official Provider of Cold Drink Vending Machines, $6.6 million/12 yr agreement), Verizon (Official Wireless Partner, $2.5 million/10 year agreement), and General Motors (Official vehicle partner, 34 vehicles/two years); and Long Beach's partnership with Coca Cola (Official Beverage, $3 million/10 year agreement). As you may have seen in this week's Miami Herald, Florida International University just approved afive-year agreement with Pepsi as the official beverage of the University, with a value described as being a "multi-million dollar" deal (Attachment C). Similar to the San Diego and Long Beach agreements, these partnerships not only include revenues, but also other in-kind supports and benefits. NEXT STEPS Should the Committee approve the implementation of Phase 2 with The Superlative Group, and approve the proposed agreement, it is anticipated that the following steps would occur: 1) Identification of top product/sponsorshipcategorles and priorities (This includes both short-term and long- term prospects 2) Development of municipal marketing materials 3) Development of competitive processes (as may be appropriate); assistance in negotiating packages 4) Presentation of prospective municipal marketing partners for the City's consideration. Appropriate community vetting to ensure understanding of the goals of specific targeted efforts will occur as opportunities are being developed to address any concerns. TSG will assist staff in determining what, if any, City ordinances may require amendment to accomplish some of the goals or particular municipal marketing strategies. These proposed amendments would, of course, follow the typical commission review and approval process. CONCLUSION: The City of Miami Beach enjoys a positive brand image that is attractive to a variety of potential sponsors. The City has engaged in municipal marketing in a number of occasions, with the most recent example the Izod sponsorship agreement that provided free uniforms to our Ocean Rescue, Pool Lifeguards, Fire Rescue and Miami Beach Golf Club personnel, at no cost to the City. However, we believe opportunities exist to pursue sponsorship partnerships to offset existing operational costs for the City, and/or generate new Page 6 of 6 Municipal Marketing revenue. We also believe such a program can be implemented in a manner that is sensitive to concerns regarding commercialization, especially in our historic city/districts. While municipal marketing programs provide revenue enhancement opportunities for the City, it is recognized that whatever municipal marketing opportunity is pursued by the City needs to be compatible with the City's goals and expectations. There are many different opportunities for municipal marketing partnerships beyond naming rights, including opportunities that have the added benefit of assisting in the marketing of our destination. It is recommended that the Mayor and Commission approve the proposed resolution to proceed with Phase 2 of the municipal marketing program, and approve the proposed agreement with The Superlative Group, for the terms and conditions set forth in the attached, as provided for in the RFP. JMG/hmf T:~AGENDA~2010Uanuary 13U2egularWluni Mktg Comm memo 1 1310.doc ATTJ~CHMENT ~ TERM SHEET THE SUPERLATIVE GROUP, INC. TSG MUNICIPAL MARKETING AGREEMENT 1. Term Three (3) year initial term. Two 2 one 1 ear renewal o tions, at Cit 's sole discretion. 2. Fee Initial Draw: TSG would be compensated based on "draws" against commissions, up to $49,500 for the first nine (9) months of the Agreement. Draws would be paid on a monthly basis of $5,500 per month. Commission Structure: For cumulative gross revenues secured for the City during the term of the Agreement: 15% commission on $0-$250,000 in gross revenues (GR) to City 12% commission on $250,001-$500,000 in GR to City. 10% commission on $500,001-$1,000,000 in GR to City. 6% commission on $1,000,000+ in GR to City Additionally: 7% commission on Renewals (% of GR; for first renewal only) 35% commission on licensing agreements (to include monitoring) 10% Commission on budgeted cost avoidance Reimbursable expenses: capped at $15,000; subject to City approval and consistent with City policies. Additional draws and Reimbursable Expenses may be negotiated only after the City has recovered 100% of initial draw and 100% of the actual costs of any reimbursable expenses. The decision to proceed with additional draws and/or reimbursable expense allocations shall be solely at the City's discretion. Additional Services: The City may, at its option, negotiate a commission structure on a case-by-case basis should the City wish to request the assistance of TSG with any municipal marketing agreement the City currently has in place, or negotiates directly with a potential sponsor for an opportunity identified b the Cit inde endent of TSG. 3. Targeted Initiatives 1) Develop and present within 90 days of Agreement execution a list of and benchmarks corporate prospects (local, regional, national and/or international) to pursue, both short term (12 T 18 months) and long term (18-36 months), and develop a marketing and sales plan for these prospects 2) Develop, in cooperation with the City's Communications staff, marketing materials (within 90 days of Agreement execution) 3) Assist the City in the development of competitive solicitation (i.e. RFP, RFQ, ITB) for soliciting and securing corporate partnerships, as may be appropriate for each type of municipal marketing opportunity. This would include marketing the opportunity to potential partners, and assisting the City in the evaluation of proposals received. 4) Assist the City in negotiating the municipal marketing partnership agreement terms with selected partners, and in the development of the municipal marketing partnership agreement document. 5) Develop a plan for managing the fulfillment obligations for each successful munici al marketin a reement. 4. Termination For cause and for convenience. provisions TSG shall not receive any direct compensation or financial interest from any business entity AGENT solicits (or presents to CITY) to enter into an agreement with the CITY. Under no circumstances shall CITY be liable to TSG or an third art claimin b or throu h TSG for copse uential dama es or lost rofits. 5. Sales After Terms Should TSG be in negotiations with a potential sponsor during CITY contract expiration, non-renewal or in default, the CITY will be allowed to follow up on endin contacts/cor orates onsors. 6. Naming Rights and City reserves sole right of approval over all naming and sponsorship S onsorshi s o ortunities. 7. Ownership of All writings, documents or information produced by the consultant pursuant to Documents the rovision of the a reement is the exclusive ro ert of the Cit . C:\Documents and Settings\cmgrferh\Desktop\Corp Sponsorship Term Sheet 1 t 17 09.doc ~TT~CHMENT B Superlative The Superlative Group, Inc. Fernandez Hilda M 1267 West 9'h Street I Suite 200 Cleveland, Ohio 44113 . Assistant City Manager Miami Beach Phone: 216.592.9400 170o Convention Center Drive Fax: 216.592.9405 Miami Beach, Florida 33139 info@superlatiueg-•aup.com August 1g, 2009 www. superlativegroup.com Dear Hilda, Mariu Emmons has requested a general forecast for the sales phase of the Miami Beach Municipal Marketing Program. We understand that due to the downturn in the economy and the declining real estate tax base, Miami Beach needs to raise funds to maintain city services. Superlative is happy to submit the following estimate realizing that we have not officially set a list of priorities with the City. In order to calculate revenues we have taken one item from each section of the Asset Inventory and Valuation report. Each item is assigned a range of value we would expect to raise with an educated guess on the lengths of the contract based on our experience selling similar sponsorships. Price Sponsorship Range Term Average Parks and Recreation Department Athletic Fields 25-75K 5 years 45K Cultural Affairs Colony Theater Presenting to-4oK 5 years 2gK Public Works -Vehicle Inventory "Official Truck" of Miami Beach 3o-6oK 5 years 45K Parking Department Pay Stations 5-15K 3 years 1oK Other Available Inveantories Soft Drink Beverage Vending: "Official" 25- Partner looK/year to years 5~K Licensing Revenue of Branded "Official Product of South Beach" looK 3 years 1ooK Total**: ~282,ooo/annually ** Does not include % of licensed apparel on other products. In addition, we believe that we could, over the course of the next i2 months, set up a Licensing/Sponsorship in a swimsuit or sunscreen category which could be an extremely lucrative venture for Miami Beach. Please let me know your thoughts. od ck nd good selling, My es . G 1 gh r MCG/am ATTACHMENT C FLORIDA INTERNATIONAL UNIVERSITY f FIU signs 5-year Pepsi BY LUISA.YANEZ~ lyanez@Miami Herald.com Florida International University .has reached an agreement with the Pepsi Bottling .Group that will make its signature soft drink the universi- ty's official beverage. That means only Pepsi and its other products will be sold at FIU. Pepsi is replacing Coca-Cola. The new five-year agreement, renewable for up to nine years, is described as being a multimillion- dollar deal "We believe'Pepsi will be a good agreement partner of FIU for many years to come," said Assistant Vice President for Business Services Jeff Krablin, who oversaw the bidding process and helped negotiate the contract, according to a news release issued Monday by FIU. As the university's official bever- age partner, Pepsi will also sponsor ,FIU's athletic program, said Paula Hopkins, regional sales director at Pepsi. That includes Pepsi signage at all FIU athletic facilities, exclusive bev- erage marketing rights for alluniver- sity athletic programs and cross=pro- motional-opportunities on www.fius- ports.com. Another valuable element of the agreement.is Pepsi's support for the university's green initiatives. ' 'Pepsi will help to promote new energy efficient vending machines on all FIU campuses. "Environmental sustainability is something we take very seriously at FIIJ," said KrAblin. "PBG is a partner who shares .that commitment, .and we look forwazd to working with them to improve .our community."