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HomeMy WebLinkAbout2005-25828 Reso RESOLUTION NO. 2005-25828 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF THE REQUEST FOR PROPOSALS (RFP) FOR THE DEVELOPMENT AND IMPLEMENTATION OF A CITYWIDE CORPORATE MARKETING AND SPONSORSHIP PROGRAM. WHEREAS, the May 14, 2002 report by the Parks & Recreation Programs Blue Ribbon Citizens' Committee cited funding as a "paramount concern in fulfilling the expectations of residents"; and WHEREAS, the Committee recommended that the "City needs to be more creative and proactive in establishing multiple funding streams to leverage against the General Fund and user fees"; and WHEREAS, the Committee further recommended the City should engage in an active corporate sponsorship program to raise additional programming funds; and WHEREAS, in 2004, the City received proposals from a variety of consultants proposing to assist the City of Miami Beach with the development and implementation of a Corporate Sponsorship Program pursuant to Request for Proposals (RFP) No. 66-02/03; and WHEREAS, the Corporate Sponsorship Program was intended to broadly market the City of Miami Beach and to attract revenues to the City of Miami Beach by allowing corporate sponsoring entities to identify with the City however, due to a bid challenge and subsequent investigation no action was taken; and WHEREAS, at the City Commission meeting held on February 2, 2005 the proposals submitted were rejected and the re-issuance of the Corporate Sponsorship RFP was referred to the Finance & Citywide Projects Committee; and WHEREAS, following the discussion of the Finance & Citywide Projects Committee the members supported the issuance of the RFP as proposed and recommended it to the full Commission for approval. NOW, THEREFORE, BE IT DULY RESOLVED BYTHE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission, upon the recommendation of the Administration, herein approve the issuance of the Request for Proposals (RFP) for the development and implementation of a citywide corporate marketing and sponsorship program. PASSED AND ADOPTED this 23rd day of ,2005. MAYOR ~u: t p(k~ CITY CLERK F:\$ALL\Previous\KEVIN\Commission 2005\Feb. 23\Commission Resolution.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 2-.- '7-02 Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ~ Condensed Title: A resolution authorizing the issuance of the request for proposals (RFP) for the development and implementation of a citywide corporate marketing and sponsorship program. Issue: Shall the City retain a consultant to assist in the development and implementation of a corporate marketing and sponsorship program? Item Summary/Recommendation: The May 14, 2002, report by the Parks & Recreation Programs Blue Ribbon Citizens' Committee cited funding as a "paramount concern in fulfilling the expectations of residents." Suggesting that the "City needs to be more creative and proactive in establishing multiple funding streams to leverage against the General Fund and user fees," the Committee recommended that the City should engage in an active corporate sponsorship program to raise additional programming funds and create and reinvest proceeds from vending contracts directly into the Recreation Division budget without offsetting the General Fund's contribution." In response the Administration and the Parks and Recreation Department prepared and issued an RFP for the development and implementation of a citywide corporate marketing and sponsorship program. In 2004, the City received proposals from a variety of consultants proposing to assist the City of Miami Beach with the development and implementation of a Corporate Sponsorship Program pursuant to Request for Proposals (RFP) No. 66-02/03. However, due to a bid challenge and subsequent investigation no action was taken. At the City Commission meeting held on February 2, 2005, the proposals submitted were rejected and the re-issuance of the Corporate Sponsorship RFP was referred to the Finance & Citywide Projects Committee. A discussion was held at the January 17, 2005, Finance & Citywide Projects Committee meeting and the members requested several modifications that have been incorporated and supported the issuance of the RFP using the broker model and recommended it to the full Commission for approval. Advisory Board Recommendation: I Financial Information: Source of Funds: D Finance Dept. City Clerk's Office LegiSlative TraCking: I GL T:\AGENDA\2005\Feb2305\Regular\Sponsorship AGENDA ITEM DATE A7C- --- J. -023 -O.J CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM To: Mayor David Dermer and Members of the City Commission Date: February 23, 2005 From: Jorge M. Gonzalez City Manager Subject: A RESOLUTION F THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF THE REQUEST FOR PROPOSALS (RFP) FOR THE DEVELOPMENT AND IMPLEMENTATION OF A CITYWIDE CORPORATE MARKETING AND SPONSORSHIP PROGRAM. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The May 14, 2002 report by the Parks & Recreation Programs Blue Ribbon Citizens' Committee cited funding as a "paramount concern in fulfilling the expectations of residents." Suggesting that the "City needs to be more creative and proactive in establishing multiple funding streams to leverage against the General Fund and user fees," the Committee recommended, among other steps, the following: · "The City should engage in an active corporate sponsorship program to raise additional programming funds..." In direct response to the Committee's recommendations, the Parks and Recreation Department created and filled the position of Development Coordinator. Subsequently, the Development Coordinator has: - Researched current successful corporate sponsorship consultant practices. - Reviewed other local government corporate sponsorship programs. - Interviewed several leading national corporate sponsorship consultants. - Determined that the City of Miami Beach has significant potential for success through a professionally structured and managed corporate sponsorship program. In 2004, the City received proposals from a variety of consultants proposing to assist the City of Miami Beach with the development and implementation of a Corporate Sponsorship Program pursuant to Request for Proposals (RFP) No. 66-02/03. Commission Memorandum February 23, 2005 Corporate Marketing and Sponsorship RFP Page 2 The Corporate Sponsorship Program was intended to broadly market the City of Miami Beach and to attract revenues to the City of Miami Beach by allowing corporate sponsoring entities to identify with the City. However, due to a bid challenge and subsequent investigation no action was taken. The rejection of all proposals received pursuant to the RFP was discussed at the January 27, 2005, Finance and Citywide Projects Committee (the "Committee") meeting and concluded with the Committee voting to recommend to the City Commission that all proposals received pursuant to RFP No. 66-02/03 for a Corporate Sponsorship Program be rejected. As a component of the same discussion the Committee expressed an interest in continuing to discuss how the City might approach a Corporate Sponsorship Program at a future time. At the City Commission meeting held on February 2, 2005 the proposals submitted were rejected and the re-issuance of the Corporate Sponsorship RFP was referred to the Finance & Citywide Projects Committee. Corporate Sponsorship Proaram Overview Premise The foundation of a Municipal Corporate Sponsorship program is the exchange of City- owned marketing opportunities for corporate advertising dollars. A new program to the City, it will present the City Commission and our community with a series of decisions regarding the nature and extent of advertising with which it is comfortable. Throughout this process, we will strive to keep the City Commission and community apprized of the "real world" requirements of a Corporate Sponsorship program so that the Commission may weigh them against its expectations and understanding of the program. Our goal is that there are no "surprises." Additional information related to Corporate Marketing and Sponsorships was also presented to the Committee. The following is a summary of this information; Non-Traditional Revenue American businesses - eager to reach new audiences - are expected to spend $12-billion on corporate sponsorships this year. The sponsorship segment is growing faster than spending on advertising or sales promotion. Corporations invested nearly $275-million in city government sponsorships last year, up 24% over 2003. That is projected to grow to $531-million by 2007. Corporate sponsorships are a way for cities to raise revenues from non-traditional sources. Miami Beach, properly marketed, can be an exceptionally attractive venue for corporate sponsorship managers looking to link their brands with a world-class city. Commission Memorandum February 23, 2005 Corporate Marketing and Sponsorship RFP Page 3 Top 2004 sponsorship spenders included: . Pepsi $ 270-million . Nike $ 185-million . Visa International $ 105-million . Nextel Communications $ 65-million . Reebok International $ 30-million . Sony Corporation $ 28-million Some of the agreements: . New York City's 5-year, $166-million agreement with Snapple Beverages · Nextel's 12-year, $50-million agreement with Las Vegas Monorail Company · GM supplies $340,000 worth vehicles annually for San Diego lifeguards · City-themed affinity bank cards that pay the cities $20 for each activated card and 10-cents for each $100 spent by the card holder. · San Diego signed a 12-year Pepsi agreement with a $1.5-million up front payment and 40% royalty on product sold. Cities large and small are doing sponsorship deals. They include Cleveland, Los Angeles, Orlando, New Orleans, Philadelphia, Asheville (North Carolina). Process & Products The Mayor and City Commission retain complete control over the sponsorship program. Throughout the process, the City Manager brings each step-by-step component to the City Commission for consideration and vote. Developing and selling mutually beneficial City-corporation sponsorships is a complex and sophisticated business. To assure that the public's interests are best served and protected, and that the city is maximizing its revenue generating potential, most cities employ sponsorship consultants (brokers). The broker surveys and analyzes the City's marketable assets, places a value on each asset, assists the City in writing sponsorship policy, develops a prioritized marketing strategy, "packages" assets for sale, assists the City in the RFP process for each asset category, assists the City in evaluating RFP responses and then assists the City on negotiating a sponsorship contract. The consultant typically derives its income from a negotiated percentage of the value of each closed sponsorship. In some cases, the consultant assists in and collects a smaller fee for sponsorship renewals. Commission Memorandum February 23, 2005 Corporate Marketing and Sponsorship RFP Page 4 Phase I Activitv Corporate Sponsorship - Consultant (Broker) Model . Consultant performs Marketing Asset Inventory - (Deliverable document to the City) Detailed list of City's marketable physical assets. . Consultant "Values" Assets - (Deliverable document to the City) What sponsors could be expected to pay for each asset. · Consultant Develops Sponsorship Policy With City - (Deliverable document to the City) · Consultant Prioritizes Assets, Prepares Prioritized Assets for Market ("Packaging") - (Deliverable document to the City) Best matches of prioritized City assets with interests of potential sponsors. Phase II Activitv · Consultant Assists City in Preparation of RFP for Prioritized Asset Categories Assets are marketed through an RFP process in categories, e.g., sports clothing sponsor, bottled water sponsor, charge/debit card sponsor, juice sponsor. . Consultant Assists City in Evaluation of RFP Responses · Consultant Assists City in Negotiating Sponsorship Contract . Consultant Assists City in Managing Contract · Consultant Receives Fee For Services Typically a percentage of the total sponsorship contract value. Prior to the February 17, 2005, Finance & Citywide Projects Committee meeting the Administration reviewed the previously issued RFP and recommended a number of refinements for the committee to consider to more accurately define the City's expectations from a Corporate Sponsorship program, to help proposers respond to our RFP with greater specificity and to yield a program that is better tailored to the City of Miami Beach's unique marketing potential. The committee discussion and action supported: · Evaluation criteria to include proposers must state how effectively the proposal maximizes the sponsorship return to the City, while being sensitive to the community and Commission preferences and priorities. · Recommend to the full Commission that proposers must have a have a minimum of 3-years experience in corporate sponsorship representation and that government experience be given additional consideration in the evaluation process. Commission Memorandum February 23, 2005 Corporate Marketing and Sponsorship RFP Page 5 · Supported a two phase process in which a vendor will be selected through the RFP procedure to complete an asset inventory in Phase I. At the conclusion of Phase I, the Commission will make the decision to complete the Phase II program implementation and whether to continue with the same vendor that completed the Phase I inventory. · Supported the inclusion in the Market Asset Inventory of all existing City management agreements to properly reserve marketing rights for the City to all its physical assets. · Supported the identification of any potential conflicts and/or limitations of City regulatory codes vis-a-vis creating the most effective sponsorship program. · Supported the assessment of the City's income potential for future Product Licensing Agreements. At the conclusion of the discussion the members supported the issuance of the RFP as amended using the broker model and recommended it to the full Commission for approval. Conclusion The Administration supports the recommendation of the Finance & Citywide Projects Committee and the resolution authorizing the issuance of the Corporate Marketing and Sponsorship RFP as proposed. JMG\RCM\KS T:\AGENDA\2005\Feb2305\Consent\Commission Memo_Sponsorship RFP Issuance _2-05.doc SECTION II - SCOPE OF SERVICES It is the goal of the City to develop mutually beneficial sponsorship contracts that deliver revenue dollars and/or in-kind products or services to the City of Miami Beach in exchange for certain advertising, marketing and/or promotional considerations granted by the City. This project will be divided in phases with Phase I to include but not be limited to the following objectives: Corporate Sponsorship - Consultant (Broker) Model · Consultant performs Marketing Asset Inventory - (Deliverable document to the City) Detailed list of City's marketable physical assets. · Consultant "Values" Assets - (Deliverable document to the City) What sponsors could be expected to pay for each asset. · Consultant Develops Sponsorship Policy With City - (Deliverable document to the City) · Consultant Prioritizes Assets, Prepares Prioritized Assets for Market ("Packaging") - (Deliverable document to the City) Best matches of prioritized City assets with interests of potential sponsors. 1) Conducting an inventory existing and prospective marketing assets; 2) Developing a comprehensive sponsorship policy; and 3) Developing a strategic plan for marketing assets. All three (3) objectives are detailed below: Obiective 1: Inventory existing and prospective marketing Assets The inventory should include, but is not limited to: 1 . On-site interviews of City department heads and other personnel as a planning step to understanding the existing marketing and sponsorship activity level. 2. Examination of any current City management agreements including but not limited to: a. Beach Concessions; 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 product licensing opportunities for the City of Miami Beach. 5. Add/suggest to the City other sponsorship opportunities. 6. Organize all data collected into a database (e.g., spreadsheet format or other user-friendly format). Examples of data collected are as follows: a. Inventory Item Category (Advertising, Event, Preferred Vendor, Capital Project, Naming Rights, etc.); b. Address/physical location, description, date added to the database, utilization statistics; c. Pedestrian, vehicular, viewership or other relevant exposure data; d. Marketing opportunity available (advertising, branding, promotion, etc.); e. Rights available, date available, etc. ; f. Any sales history (to whom, what price, when, etc.); g. Any known conflicts/limitations on selling; h. Contact address, phone fax and e-mail; i. Terms (length, price, options to renew); j. Rights granted; k. Any encumbered reversionary rights; I. Legal/policy limitations on rights; m. Suggested pricing; n. Assessment of the value range for assets; o. Suggested/possible bundling opportunities with other assets; p. Assessment of the degree of difficulty to obtain a sale; q. Indication of priority Obiective 2: Create a Comprehensive Sponsorship Policy 1) Review current sponsorship acceptance procedures. 2) Participate and support process to match community/commissions with sensitivity to existing sentiment of the Community and City Government. 3) Include both financial and economic development factors. 4) Submit draft policy. Present/discuss developing policy as directed by City. 5) Identify any conflicts and/or limitations of the City of Miami Beach regulatory codes vis-a-vis implementation of a corporate sponsorship program. Objective 3: Develop Strategic Plan for Marketing Assets 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. Phase II Activity Phase II will include the Market Assets, consisting of the following activities: · Consultant Assists City in Preparation of RFP for Prioritized Asset Categories Assets are marketed through an RFP process in categories, e.g., sports clothing sponsor, bottled water sponsor, charge/debit card sponsor, juice sponsor. · Consultant Assists City in Evaluation of RFP Responses · Consultant Assists City in Negotiating Sponsorship Contract · Consultant Assists City in Managing Contract · Consultant Receives Fee For Services Typically a percentage of the total sponsorship contract value. 1) Develop sample rights packages for the marketplace; 2) Assist in the evaluation and development of sponsorship RFP's; 3) Prepare reports and presentations on the City's municipal marketing program, as directed by the City; 4) Assist in contract negotiations; and 5) OProvide advice in implementing/managing sponsorships. Minimum ExperiencelQualifications' Reauirements: Prospective firms or principals as defined below must meet the following minimum experience requirements/qualifications in order to receive consideration: Three (3) years experience and successful performance in developing and implementing a corporate marketing and/or sponsorship program. Definitions The term "firm" shall mean a corporation, partnership, business trust or any legal entity other than a natural person. The term "principals" shall mean individuals with the ownership, directly or indirectly, of ten percent or more of the outstanding capital stock in any corporation or a direct or indirect interest of ten percent or more in a firm, or a corporate officer (Le. President, Vice President, Secretary, and Treasurer). SECTION III - PROPOSAL FORMAT The following items are required to be submitted as part of your Proposal. If any items are omitted, Proposer must submit the omitted information within five (5) calendar days upon request from the City, or the Proposal shall be deemed non- responsive. 1. Table of Contents Outline in sequential order the major areas of the proposal, including enclosures. All pages must be consecutively numbered and correspond to the table of contents. 2. Proposal Points to Address: Proposer must respond to all minimum requirements listed below. Proposals which do not contain such documentation may be deemed non-responsive. · Executive Summary/Introduction Letter relative to the experience and qualifications of the firm. · Respondents must provide documentation which demonstrates their ability to satisfy all of the RFP requirements. · Client references. List state or local government client references (name, title, company, address, telephone, e-mail and fax number). · Experience, qualifications, performance and overall national stature of the firm, and experience and specifically as it relates to representing state or local government agencies. · Experience and qualifications of the proposer's project team and resumes outlining experience and education record of individuals who would be instrumental in conducting the Marketing Asset Inventory, writing the Sponsorship Policy, developing a Strategic Plan for marketing the City's assets and in activating the Strategic Plan. Specifically, provide the following information: a. Project Team Leader. b. Project Team Members and the responsibility of each member. c. Has your proposed team ever worked together? If so, on how many projects, or for how long? d. Office location of team members? . Please provide your methodology/approach in developing the following deliverables for the City of Miami Beach: a. A Marketing Asset Inventory; b. A Strategic Plan for implementing the Marketing Asset Inventory; and c. A Policy/Guideline for implementing and executing a corporate sponsorship program. . Please provide success measurements for sponsorship programs prepared by your firm and implemented by one of your clients. . What is your approach/methodology in developing product licensing/marketing opportunities for the City of Miami Beach? . Provide evidence (back-up documentation) of at least 3 years successful experience your firm or its principals have had in working with private sector, or state or local government agencies in the Corporate Sponsorship field; include partner relationships, values of contracts, terms of contracts etc. . How would you utilize you corporate relationships to generate additional funding and/or generate additional tourism? . Describe your approach/philosophy regarding how the City can maximize return from a Corporate Sponsorship program that is sensitive to the culture, aesthetics, beauty, taste and tourism- based economy of our vibrant, tropical, historic community. . Describe your approach to ensuring that the City's corporate sponsorship program is a financially viable and aesthetically acceptable municipal financing tool. . Discuss how you plan to maximize the revenue that is returned to the City. · The extent to which the proposal integrates and supports related major City goals for Economic Development, Tourism, Cultural Affairs and Parks & Recreation. · Stated vision and outcomes for a City of Miami Beach corporate sponsorship program. . Amount of time proposer actually intends to spend in the City of Miami Beach researching, interviewing and preparing the deliverables, and more generally, in "servicing the account." 3. Acknowledgment of Addenda (IF REQUIRED BY ADDENDUM) and Proposer Information forms; and 4. Proposal documents listed in Section VII that must be completed and returned to the City. 5. Fees and/or Fee Structure: Fees and/or Fee Structure are required to be submitted with your proposal. Fees and/or your fee structure will be negotiated with the top-ranked firm, and if the Administration is unsuccessful in negotiating with the top-ranked firm, negotiations will commence with the second-ranked firm. SECTION IV - EVALUATION CRITERIA The procedure for proposal evaluation and selection is as follows: 1. Request for Proposals issued. 2. Receipt of proposals. 3. Opening and listing of all proposals received. 4. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each proposal in accordance with the requirements of this RFP. If further information is desired, proposers may be requested to make additional written submissions or oral presentations to the Evaluation Committee. 5. The Evaluation Committee shall recommend to the City Manager the proposal or proposals acceptance of which the Evaluation Committee deems to be in the best interest of the City. The Evaluation Committee shall base its recommendations on the following weighted factors: a) Experience and Qualifications of the Firm: Experience and qualifications of the firm in successfully developing and implementing corporate marketing and/or sponsorship programs. Firms with experience in providing state or local governmental entities to include but not limited to Universities, Colleges, municipalities, or school districts, may receive a higher score than those firms whose experience is solely with the private sector. Maximum: 35 points b) Experience and Qualifications of Project Team: Experience and qualifications of the proposer's project team members who will be instrumental in conducting the Marketing Asset Inventory, writing the Sponsorship Policy, developing a Strategic Plan for marketing the City's assets and in activating the Strategic Plan. Maximum: 35 points c) Approach/philosophy regarding how the City can maximize return from a Corporate Sponsorship program that is sensitive to the culture, aesthetics, beauty, taste and tourism-based economy of our vibrant, tropical, historic community. Maximum: 30 points. 6. After considering the recommendation(s) of the Evaluation Committee, the City Manager shall recommend to the City Commission the proposal or proposals acceptance of which the City Manager deems to be in the best interest of the City. 7. The City Commission shall consider the City Manager's recommendation(s) in light of the recommendation(s) and evaluation of the Evaluation Committee and, if appropriate, approve the City Manager's recommendation(s). The City Commission may reject City Manager's recommendation(s) and select another proposal or proposals. In any case, City Commission shall select the proposal or proposals acceptance of which the City Commission deems to be in the best interest of the City. The City Commission may also reject all proposals. 8. Negotiations between the selected proposer and the City Manager take place to arrive at a contract. If the City Commission has so directed, the City Manager may proceed to negotiate a contract with a proposer other than the top-ranked proposer if the negotiations with the top-ranked proposer fail to produce a mutually acceptable contract within a reasonable period of time. 9. A proposed contract or contracts are presented to the City Commission for approval, modification and approval, or rejection. 10. If and when a contract or contracts acceptable to the respective parties is approved by the City Commission, the Mayor and City Clerk sign the contract(s) after the selected proposer(s) has (or have) done so. Important Note: By submitting a proposal, all proposers shall be deemed to understand and agree that no property interest or legal right of any kind shall be created at any point during the aforesaid evaluation/selection process until and unless a contract has been agreed to and signed by both parties.