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C7H-Execute Agreement w- Miami Herald Advertising City Events Programs And FacilCOMMISSION 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 Advertisi And Facilities. Key lntended Outcome Supported: Enhance Externaland lnternal Communication From and Within the City. Supporting Data: N/A AGENDA fiEM C7 H Item Summary/Recommendation : ln years past, departments worked individually to purchase advertising with the Miami Herald. Beginning last year, 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 Based on the agreement signed in 2014, and an additional amount for promoting the City Centennial celebrations, staff has again been 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 2015 totaling $345,000. Total spending in 2014 was approximately $267,000 in cash and $68,000 was received in in-kind. The 2015 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 in addition to centennial celebration promotions. Additionally, the City has funds allocated for recycling education, sea level rise, Washington Avenue, parking, transportation, and cultural arts events. 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 $169,000 additional in-kind advertising with the Miami Herald and therefore a much higher return on our investment (49o/o). This in-kind advertising value will be used to supplement the aforementioned marketing campaigns and to support marketing efforts for other City events, which do not have a preapproved marketing budget. The Administration recommends the of the attached Resolution. Financial lmpact Summary: Current expenditures are estimated at $345,000 and any additional expenditure will be based on appropriated budget amounts. Funding from various department budget sources Max A. Sklar, Tourism, Culture and Economic Development Department MIAMIBEACH D^rE 137 7-/ q252 I915.2015 TO: FROM: MIAMIBEACH City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISSION MEMORANDUM Mayor Philip Levine and Members the City Jimmy L. Morales, City Manager DATE: December 17,2014 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMIBEACH, FLORIDA,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 $345,000 and any additional expenditure will be based on appropriated budget amounts. ANALYS!S Each year various City departments purchase advertising from the Miami Herald. Some of this advertising, such as public notices, are 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 2015 budget. No additional funds are being requested for this contract. ln years past, departments worked individually to purchase advertising with the Miami Herald. Beginning last year, 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 Based on the agreement signed in 2014, and an additional amount for promoting the City Centennial celebrations, staff has again been working with the individual departments to see what would be best for them; media plans have been developed for all departments planning to adve(ise with the Miami Herald in FY 2015, totaling $345,000. Total spending in 2014 253 Miami Herald Advertising City Commission Meeting December 17,2014 Page 2 of 2 was approximately $267,000 in cash and $68,000 was received in in-kind. The 2015 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, in addition to centennial celebration promotions. Additionally, the City has funds allocated for recycling education, sea level rise, Washington Avenue, parking, transportation, and cultural arts events. 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 $t 69,000 additional in- kind advertising with the Miami Herald, and therefore a much higher return on our investment (49Yo). This in-kind advertising value will be used to supplement the aforementioned marketing campaigns and to support marketing efforts for other City events that do not have a preapproved 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 $345,000 in cash and $169,000 in-kind for the purpose of advertising City events, programs, and facilities' h7 JLM/I(6B|MAS/TD T:\AGENDA\20 1 4\December\TCED\Miam i Herald Advertising Memo FY201 5.doc 254 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CIry OF MIAMI BEAGH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE MIAMI HERALD FOR THE PURPOSE OF ADVERTISING C!ry EVENTS, PROGRAMS, AND FAGILITIES. 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 2015 Fiscal Year; and WHEREAS, the City will also receive approximately $169,000 additional in in-kind advertising with The Miami Herald. NOW, THEREFORE, BE !T DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE Clry 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 day of ATTEST: CITY CLERK 2014. MAYOR APPROVED AS TO FORM & ISNGUAGE & FOR E)(ECUTION ( L\L\\ Date 255