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2014-28458 Reso RESOLUTION NO. 201428458 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE MIAMI HERALD FOR THE PURPOSE OF ADVERTISING CITY EVENTS, PROGRAMS, AND FACILITIES. WHEREAS, the City is required by law to place public hearing notices in the newspaper; and WHEREAS, other City departments purchase advertising from the Miami Hearald to promote various events, programs, and facilities; and WHEREAS, the Administration recommends approval of an agreement with The Miami Herald for the 2014 Fiscal Year; and WHEREAS, the City will also receive approximately $67,120 additional in in-kind advertising with The Miami Herald. 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 approve and authorize the Mayor and City Clerk to execute an agreement with The Miami Herald for the purpose of advertising City events, programs, and facilities. PASSED and ADOPTED this l Skiday of ar , 2014. ..13 ATTEST: `a�'''' a :INCORP ORATED: R CI#YY CLERIC T:\AGENDA\2014\January\Miami Herald Advertising Reso.doc APPROVED AS TO FORM&LANGUAGE &FOR EXECUTION City Attorne n_ Date I COMMISSION ITEM SUMMARY Condensed Title: A Resolution Approving And Authorizing The Mayor And City Clerk To Execute An Agreement With The Miami Herald For The Purpose Of Advertising City Events, Programs, And Facilities. Key Intended Outcome Supported: Improve the City's overall financial health and maintain overall bond rating Supporting Data: N/A Item Summa /Recommendation: Each year various City departments purchase advertising from the Miami Herald. Some of this advertising, such as public notices, is required by law while others are to promote public events, programs,and facilities. In the past,each department has worked individually to purchase advertising with the Miami Herald. During an analysis of marketing spending, City staff identified that the City could negotiate better rates and additional cash and in-kind advertising if the City was to sign one large contract with the Miami Herald, instead of each department purchasing advertising independently, leveraging the City's buying power. Over the last couple months staff completed an analysis on all media spending by the entire City. Staff also met with the media department at Miami-Dade County for feedback as they recently centralized all media purchasing as well. Working with the individual departments to see what would be best for them; media plans have been developed for all departments planning to advertise with the Miami Herald in FY 2014 totaling$257,500. This budgeted amount is slightly higher than prior years because the City Clerk's Office is spending more for advertising this year due to the election. Additionally, the City has funds allocated for recycling education, sea level rise, Washington Avenue, and parking. By organizing and bundling these media buys the City is able to receive a higher return on our investment, and therefore reach a broader market while maximizing City monies. Organizing all purchases into one contract, the City will receive approximately $67,000 additional in-kind advertising with the Miami Herald and therefore a much higher return on our investment (26%). This in-kind advertising value will be used to supplement the aforementioned marketing campaigns and to support marketing efforts for Alton Road/West Avenue,which do not have a pre0approved marketing budget. The Administration recommends the adoption of the attached Resolution. I Financial Information: Source of Amount Account Approved Funds: (4 Total $257,500 Funding from various OBPI department budget sources Financial Impact Summary: Current expenditures are estimated at $257,500 and any additional expenditure will be based on appropriated budget amounts. City Clerk's Office Legislative Tracking: Max A. Sklar, Tourism, Culture and Economic Development Department Sign-Offs: partme t Director Assistant 'ty Manager City M ager MIAMIBEACH AGENDA ITEM C� DATE � y MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members f the City ommission FROM: Jimmy L. Morales, City Manager DATE: January 15, 2014 SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,APPROV G AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE MIAMI HERALD FOR THE PURPOSE OF ADVERTISING CITY EVENTS, PROGRAMS, AND FACILITIES. ADMINISTRATION RECOMMENDATION Adopt the resolution. FUNDING Purchases will be expended from the corresponding city department expense accounts, which were previously approved budget items for the purchase of .marketing and advertising. Current expenditures are estimated at $257,500 and any additional expenditure will be based on appropriated budget amounts. ANALYSIS Each year various City departments purchase advertising from the Miami Herald. Some of this advertising, such as public notices, is required by law while others are to promote public events, programs, and facilities. During the budget process, the individual budget items were approved in each department's budget and are already in the 2014 budget. No additional funds.are being requested for this contract. In the past, each department has worked individually to purchase advertising with the Miami Herald. During an analysis of marketing spending, City staff identified that the City could negotiate better rates and additional cash and in-kind advertising if the City was to sign one large contract with the Miami Herald, instead of each department purchasing advertising independently, leveraging the City's buying power. Media companies commonly work with organizations for preferred pricing when purchasing higher volumes as opposed to one ad at a time. When working with media buys, and working in larger amounts at once,you are also more apt to be able to negotiate sponsorships and in-kind media options Over the last couple months staff completed an analysis on all media spending by the entire City. Staff also met with the media department at Miami-Dade County for feedback as they recently centralized all media purchasing as well. Working with the individual departments to see what would be best for them; media plans have been developed for all departments planning to advertise with the Miami Herald in FY 2014 totaling $257,500. This budgeted amount is slightly higher than prior years because the City Clerk's Office is spending more for advertising this year due to the election. Additionally, the City has funds allocated for recycling education, sea level rise, Washington Avenue, and parking. By organizing and Miami Herald Advertising City Commission Meeting January 15, 2014 Page 2 of 2 bundling these media buys the City is able to receive a higher return on our investment, and therefore reach a broader market while maximizing City monies. Organizing all purchases into one contract, the City will receive approximately$67,000 additional in-kind advertising with the Miami Herald and therefore a much higher return on our investment(26%). This in- kind advertising value will be used to supplement the aforementioned marketing campaigns and to support marketing efforts for Alton Road/West Avenue, which do not have a pre0approved marketing budget. CONCLUSION Staff worked diligently to organize all City advertising purchases and negotiate a contract with the Miami Herald. The Administration recommends the adoption of the attached Resolution authorizing an agreement with the Miami Herald in the amount of$257,500 in cash and$67,120 in-kind for the purpose of advertising City events, programs,and facilities. JLM/ / D T:\AGENDA\2014\January\Miami Herald Advertising Memo.doc