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HomeMy WebLinkAbout2005-25905 Reso RESOLUTION NO. 2005- 25905 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 06-04/05, FOR THE DEVELOPMENT AND IMPLEMENTATION OF A CITYWIDE CORPORATE MARKETING AND SPONSORSHIP PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH INTERNATIONAL MERCHANDISING CORPORATION D/B/A IMG; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN AGREEMENT WITH INTERNATIONAL MERCHANDISING CORPORATION D/B/A IMG; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SUPERLATIVE GROUP, INC.; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, 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, including a model that makes use of a contracted broker/consultant to assist in the process. The members recommended the issuance of the RFP to the full Commission for approval; and WHEREAS, the City Mayor and City Commission at its February 23, 2005 meeting, authorized the issuance of an RFP for the Development and Implementation of a Citywide Corporate Marketing and Sponsorship Program; and WHEREAS, on March 2, 2005, RFP No. 06-04/05 was issued via Bid Net, which in turn contacted 72 vendors, resulting in the receipt of the following four (4) responses: 1. IMG; 2. DD Marketing; 3. Superlative 4. Sports and Sponsorships; and WHEREAS, on April 11 ,2005, the City Manager via Letter to Commission (LTC) No. 089- 2005, appointed an Evaluation Committee ("the Committee") consisting of the following individuals: 1) Max Sklar, Director, Tourism and Cultural Development 2) Julio Magrisso, Assistant Director, Parks & Recreation 3) Jorge Gomez, Director of Planning & Development 4) Grisette Roque-Marcos, Executive Director of Miami Beach VCA 5) Ricky Arriola, Resident and Member of the CAC 6) Barbara Gelber, Resident and Chair of the Parks & Recreation Board 7) Lisa Austin, Resident and Chair of the Scott Rakow Youth Center Advisory Board; and WHEREAS, the Committee convened on May 3,2005, and was provided information relative to the City's Cone of Silence Ordinance, the Government in the Sunshine Laws and an overview of the project from the City's Development Coordinator, Mr. Jay Moore. Committee Members Jorge Gomez and Grisette Roque-Marcos were unable to attend; and WHEREAS, the Committee was provided with a 15-minute presentation followed by a 15-minute question and answer session with the following firms: 1. The Superlative Group; 2. DD Marketing; and 3. IMG; and WHEREAS, Sports and Sponsorships elected not to make a presentation to the Committee due to scheduling conflicts; and WHEREAS, the Committee deliberated and discussed the proposals submitted as well as the pros and cons of each firm. The Committee unanimously agreed that IMG was the best firm to implement and develop a successful corporate marketing and sponsorship program. The Committee ranked and scored the firms as follows: Max Ricky Julio Lisa Barbara Sklar Arriola Magrisso Austin Gelber IMG 98 (1) 96 (1) 98 (1 ) 90 (1 ) 95 (1 ) Superlative Group 88 (2) 87 (2) 95 (2) 75 (2) 85 (2) DD Marketing 70 (3) 87 (2) 90 (3) 25 (4) 65 (3) Sports & Sponsorships 60 (4) 83 (4) 80 (4) 70 (3) 65(3); and WHEREAS, based on the scoring, the Committee agreed to rank the firms as follows: 1. IMG; 2. The Superlative Group; 3. DD Marketing; and 4. Sports & Sponsorship; and WHEREAS, the Committee's decision to recommend IMG as the most qualified consultant to develop and implement a corporate marketing and sponsorship program was based on the following: 1. Creativity, contacts, and successful long-term representation of rights holders and events. 2. Local presence and activity. IMG's Coral Gables office has been in existence for over 20 years and has 25 full-time employees. 3. Access to companies, ideas, promotions, media, television, federations, academies, events, and celebrities. 4. Experience in dealing with the corporate community with annual sales of over $500 million. 5. Experience of over 40 years in developing strategic marketing plans and selling sponsorships. 6. The largest and most successful independent licensing firm in the world with over $5.6 billion in retail sales in clients' licensed merchandise. 7. Maximizing revenue and cost reductions proposed opportunities, and understanding of community sensitivities; and WHEREAS, the City Manager exercised his due diligence and was briefed on the Committee's recommendation and concurs that IMG is the top-ranked firm; and WHEREAS, 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; and WHEREAS, 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; and WHEREAS, in Phase I, IMG will survey and analyze the City's marketable assets; will place a value on each asset; will assist the City in writing sponsorship policy; will develop a prioritized marketing strategy; and WHEREAS, in Phase II, IMG or a subsequent contractor, will "package" assets for sale; will assist the City in the RFP process for each asset category; will assist the City in evaluating RFP responses and then assists the City on negotiating a sponsorship contract; and WHEREAS, the decision to enter into Phase II work, or to proceed to implement the sponsorship program, and which consultant is solely that of the City Commission; and WHEREAS, the Administration will ensure that the various City stakeholders are involved and committed to the success of this program, and be cognizant of the potential for "over commercialization" of the City. 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 City Manager accepting the recommendation of the City Manager pertaining to the ranking of proposals pursuant to Request for Proposals (RFP) No. 06-04/05, for the Development and Implementation of a Citywide Corporate Marketing and Sponsorship Program; authorizing the Administration to enter into negotiations with International Merchandising Corporation d/b/a IMG; and should the Administration not be able to negotiate an agreement with International Merchandising Corporation d/b/a IMG; authorizing the Administration to negotiate with The Superlative Group, Inc.; and further authorizing the Mayor and City Clerk to execute an agreement upon completion of successful negotiations by the Administration. e I PASSED AND ADOPTED this 18th day of May ,005. _I A~t p~ Ii! CITY CLERK Robert Parcher 'A YOR David Dermer T:\AGENDA \2005\May1805\Consent\corporate marketing reso. .doc l l CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m ~ . Condensed Title: A Resolution that Accepts the City Manager's Ranking of Proposals for the Development and Implementation of a Citywide Corporate Marketing and Sponsorship Program; Further Authorizing the Administration to Enter Into Negotiations with International Merchandising Corporation D/B/A IMG; and Should the Administration not be Able to Negotiate an Agreement with International Merchandising Corporation D/B/A IMG; Authorizing the Administration to Negotiate with the Superlative Group; and Further Authorizing the Mayor and City Clerk to Execute an Agreement Upon Completion of Successful Negotiations by the Administration. Issue: I Shall the City Commission Adopt the Resolution? Item Summary/Recommendation: The world-class resort City of Miami Beach is especially well positioned to implement this now well- established model for generating additional revenue. In the municipal environment, a Corporate Sponsorship Program is integrated with existing Economic Development. In this complimentary role, it can support and accelerate new business attraction functions. Developing and implementing successful Corporate Sponsorship Programs is a complex business. It 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. After being fully briefed of the Committee's recommendation, and after reviewing the proposals and additional information provided by the top four firms, it is the Manager's recommendation that IMG be ranked as the number one firm. IMG's selection is based on their team's proven experience and demonstrated ability to successfully implement and develop corporate marketing and sponsorship programs. Additionally, IMG's local presence and activity as well as their creativity, contacts, and successful 45-year of experience in representation of clients. developing and producing events, and understanding of the City played a key role in their selection. The Administration will ensure that the various City stakeholders are involved and committed to the success of this program, and be cognizant of the potential for "over commercialization" of the City. ADOPT THE RESOLUTION. Adviso Board Recommendation: A discussion was held at the January 17, 2005. Finance & Citywide Projects Committee meeting, and the members recommended the issuance of the RFP to the full Commission for a roval. Financial Information: N/A Source of Amount Account Approved Funds: 1 D 2 3 4 Finance Dept. Total islative Trackin . y Manager City Manager JMG CorporateMarketingSu mma AGENDA ITEM DATE R1H 5'-I~~\ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Date: May 18, 2005 Members of the City commiSSiO~ Jorge M. Gonzalez a ~ (5 City Manager A RESOLUTION OF HE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 06-04/05, FOR THE DEVELOPMENT AND IMPLEMENTATION OF A CITYWIDE CORPORATE MARKETING AND SPONSORSHIP PROGRAM; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH INTERNATIONAL MERCHANDISING CORPORATION D/B/A IMG; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN AGREEMENT WITH INTERNATIONAL MERCHANDISING CORPORATION DIBIA IMG; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SUPERLATIVE GROUP, INC.; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. ADMINISTRATIVE RECOMMENDATION Adopt the Resolution. ANALYSIS A corporate sponsorship is the linking of complimentary corporate brands for mutual benefit with business partners whose corporate missions are consistent with those of the City of Miami Beach (the "City"). For the business, benefit is typically some form of advertising, public relations or facility naming rights. While the business gains financially by marketing advantage and/or customer loyalty enhancement, the advantage to the City is primarily financial. Corporations will pay the City for the ability to use or link with our City image and identity. These marketing programs rise from the natural partnerships between city governments and the local, regional and national businesses they host and interact with in the daily course of business. Corporate sponsorship programs have emerged as a financially viable, ethically appropriate and aesthetically acceptable municipal financing tool. The world-class resort City of Miami Beach is especially well positioned to implement this now well-established model for generating additional revenue. Nearly all the most important characteristics advertisers are willing to pay hundreds of thousands of dollars to associate their products with are present here. Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 2 of 11 Developing and implementing successful Corporate Sponsorship Programs is a complex business. It 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. BACKGROUND The Parks & Recreation Programs Blue Ribbon Citizens' Committee (the "Citizens Committee") in its May 14, 2002 report, 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 Citizens' Committee recommended, among other steps, the following: "The City should engage in an active corporate sponsorship program to raise additional programming funds. This can be accomplished through the addition of ful/- time marketing/development personnel..." "The City should create and reinvest proceeds from vending contracts directly into the Recreation Division budget without offsetting the General Fund's contribution." In direct response to the Committee's recommendations, the Parks and Recreation Department created and filled the position of Development Coordinator. Since assuming his duties on December 16, 2002, the Marketing Coordinator has: 1. Researched current successful corporate sponsorship consultant practices; 2. Reviewed other local government corporate sponsorship programs; 3. Formed and led a City of Miami Beach corporate sponsorship evaluation team; 4. Interviewed several leading national corporate sponsorship consultants; and 5. 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. 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. Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 3 of 11 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. 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, including a model that makes use of a contracted broker/consultant to assist in the process. The members recommended the issuance of the RFP to the full Commission for approval. The Mayor and City Commission at its February 23, 2005 meeting, authorized the issuance of an RFP for the Development and Implementation of a Citywide Corporate Marketing and Sponsorship Program. RFP PROCESS On March 2,2005, RFP No. 06-04/05 was issued via BidNet, which in turn contacted 72 vendors, resulting in the receipt of the following four (4) responses: 1. IMG; 2. DD Marketing; 3. Superlative; and 4. Sports and Sponsorships. On April 11, 2005, the City Manager via Letter to Commission (LTC) No. 089-2005, appointed an Evaluation Committee ("the Committee") consisting of the following individuals: 1) Max Sklar, Director, Tourism and Cultural Development 2) Julio Magrisso, Assistant Director, Parks & Recreation 3) Jorge Gomez, Director of Planning & Development 4) Grisette Roque-Marcos, Executive Director of Miami Beach VCA 5) Ricky Arriola, Resident and Member of the CAC 6) Barbara Gelber, Resident and Chair of the Parks & Recreation Board 7) Lisa Austin, Resident and Chair of the Scott Rakow Youth Center Advisory Board. Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 4 of 11 The Committee convened on May 3, 2005, and was provided information relative to the City's Cone of Silence Ordinance, the Government in the Sunshine Laws and an overview of the project from the City's Development Coordinator, Mr. Jay Moore. Committee Members Jorge Gomez and Grisette Roque-Marcos were unable to attend. The Committee was provided with a 15-minute presentation followed by a 15-minute question and answer session with the following firms: 1. The Superlative Group; 2. DD Marketing; and 3. IMG Sports and Sponsorships elected not to make a presentation to the Committee due to scheduling conflicts. The Committee deliberated and discussed the proposals submitted as well as the pros and cons of each firm. The Committee unanimously agreed that IMG was the best firm to implement and develop a successful corporate marketing and sponsorship program. The Committee ranked and scored the firms as follows: Max Ricky Julio Lisa Barbara Slar Arriola Magrisso Austin Gelber IMG 98 (1) 96 (1 ) 98 (1 ) 90 (1 ) 95 (1 ) The Superlative Group 88 (2) 87 (2) 95 (2) 75 (2) 85 (2) DD Marketing 70 (3) 87 (2) 90 (3) 25 (4) 65 (3) Sports & Sponsorships 60 (4) 83 (4) 80 (4) 70 (3) 65 (3) Based on the scoring, the Committee agreed to rank the firms as follows: 1. IMG; 2. The Superlative Group; 3. DD Marketing; and 4. Sports & Sponsorship. Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 5 of 11 The Committee's decision to recommend IMG as the most qualified consultant to develop and implement a corporate marketing and sponsorship program was based on the following: 1. Creativity, contacts, and successful long-term representation of rights holders and events. 2. Local presence and activity. IMG's Coral Gables office has been in existence for over 20 years and has 25 full-time employees. 3. Access to companies, ideas, promotions, media, television, federations, academies, events, and celebrities. 4. Experience in dealing with the corporate community with annual sales of over $500 million. 5. Experience of over 40 years in developing strategic marketing plans and selling sponsorships. 6. The largest and most successful independent licensing firm in the world with over $5.6 billion in retail sales in clients' licensed merchandise. 7. Maximizing revenue and cost reductions proposed opportunities, and understanding of community sensitivities. The City Manager exercised his due diligence and was briefed on the Committee's recommendation and concurs that IMG is the top-ranked firm. IMG's Experience & Qualifications · IMG has more than 2,500 employees in 80 offices located throughout 33 countries. And for 20 years IMG has had a full time office in Miami with a staff of 25' people. . IMG has on-point and successful experience in working with City governments (Le., Chicago, New York, and Cleveland) to create corporate sponsorships. · IMG's Senior Management Team (Le., Mr. Pirnie, and Mr. Annear) has worked together on over 20 projects in the past 15 years. · IMG's Project Team Leader, Doug D. Pirnie, Jr., Senior Vice President, has been with IMG since 1976. IMG's Phase I Leader, Tom Annear, has been with IMG for more than 10 years. Mr. Annear is the Sr. VP of Corporate Sales, and will oversee a team of eight (8) individuals dedicated to raising sponsorship dollars on a local, regional, and national level. · IMG's International VP, Dario Brignole, has been with IMG for eight years and has extensive knowledge of the Corporate Hispanic and Latin American regions, and has created a new U.S. Hispanic Division for IMG. · IMG's Director of Sales & Marketing, Isabel Chattas, a Miami Beach resident, joined IMG in 2003, and has actively been involved in developing South Florida events including the Sung lass Hut Swim Shows Miami and Premios Fox Sports, both of which are Miami Beach-based events. Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 6 of 11 . IMG's Television Division is the largest independent distributor and producer of televised sports, managing a library of more than 150,000 hours, and producing and distributing 6,500 hours of original programming to more than 200 countries covering more than 200 sports. . IMG's Golf Division has promoted 215 golf events with total prize money that exceeds $170 million. IMG clients have dominated both the U.S. PGA Tour and LPGA Tour, featuring such stars as Tiger Woods, Annika Sorenstam, David Duval, Vijay Singh, and Mark O'Meara. . IMG's Tennis Division dates back to 1968, and since that time IMG has represented the top players in the world including Billie Jean King, Chris Evert, Martina Navratilova, Rod Laver, Bjorn Borg, John McEnroe, Ivan Lendl, and the Williams Sisters - Venus and Serena. . IMG's experience includes a wide range of national clients. Other notable IMG Divisions include: Academies (Tennis, Golf, Soccer and Basketball); Chinese National Soccer League; Professional Athlete Management; Winter Sports; Licensing; Artists; Models; Broadcasting; and Charities. IMG's references were very positive and provided the following feedback: United States Olympic Committee (USOC) Jim Grice Chief of Sales & Marketing USOC One Olympic Plaza Colorado Springs, CO 80909 IMG has also been retained for the past four years by the USOC, an agency of the US government, to secure sponsorships. Their initial assignment was with OPUS (Olympic Properties of the United States), a joint venture between the 2002 Salt Lake City Organizing Committee (SLOC) and the USOC for whom we raised over $100 million. A portion of those funds were used for the operations of the Olympic Games in Salt Lake City and a portion was used by the USOC to train the US Olympic teams for the Salt Lake and Athens (2004) Games. In addition, IMG has raised another $100 million for the USOC to support the US Olympic Teams that will be competing in Turino (2006) and Beijing (2008). Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 7 of 11 Carolina Stadium Mark S. Richardson President, Carolina Panthers 800 South Mint Street Charlotte, NC 28202 The Muhleman Marketing division of IMG served the NFL franchise owner in Charlotte as managing strategic consultants for the overall franchise-stadium project. This included building the 73,000-seat stadium in a public-private partnership in which the City of Charlotte contributed the site land and the County and State of North Carolina paid the costs of developing the surrounding infrastructure. IMG/ Muhleman Marketing also designed a seat license program that raised $150 million for construction costs from fans for the new franchise and facility and brokered the deal for Bank of America to become naming rights sponsor of the facility for approximately $140 million over 20 years. City of Cleveland The Rock and Roll Hall of Fame (RRHF) in Cleveland was financed through a state bond referendum. In 1994, IMG was retained by the City of Cleveland to raise funds to alleviate the bond debt 18 months prior to the RRHF Grand Opening. IMG generated over $50 million in sponsorship and promotional dollars across several major sponsorship categories. Sponsors included AT & T, Pepsi, Ameritech, Levi's, Continental Airlines, Radio Shack, Thrifty Car Rental and MasterCard, among others. Chicago Parks District IMG was retained on a one-year, non-exclusive basis, by the Chicago Parks District to secure partners in a number of product categories in order to generate additional revenue for the District. IMG was successful in securing partnership arrangements with Best Kosher (hot dog), credit card (Discover Card), ice cream (Breyers), salty snack (Jay's potato chips) and the Chicago Transit Authority. New York City David Klasfeld 666 West 111 th Street New York, NY 10025 After a comprehensive review process, IMG was selected over numerous applicants because of their extensive experience in dealing with the corporate world and in their creativity and sensitivity in dealing with the political issues that such a program generated. IMG created an overall marketing plan for the City that ultimately was approved by all of the major city constituencies (Fire Department, Police Department, Department of Parks, Department of Education, museums and other cultural institutions, etc.). Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 8 of 11 IMG's efforts in this process were extraordinarily impressive - they were diligent, dogged and professional in their efforts to pull together what was an unprecedented coalition of agreement among such disparate stakeholders. Greater Miami Convention & Visitors Bureau (GMCVB) David Whitaker Sr. VP of Marketing & Tourism 701 Brickell Avenue Miami, FL 33131 IMG serves as GMCVB's marketing consultant, and as such provides the following services: . Strategic planning; . Property review and evaluation; . Contract negotiations; . Proprietary measurement tools; . Budgetary management;and . Creative services. THE CITY'S APROACH 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 as described in the RFP. Phase I Activity: 1) 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. All three (3) objectives are detailed below: Obiective 1: Inventory existing and prospective tangible and non-tangible 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. Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 9 of 11 2. Examination of any current City asset management agreements including but not limited to: . Beach Concessions; . Golf Courses; . Vending Machines; . Tennis Centers; . Jackie Gleason Theater of the Performing Arts; and . 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). 7. Address/physical location, description, date added to the database, utilization statistics; 8. Pedestrian, vehicular, viewership or other relevant exposure data; 9. Marketing opportunity available (advertising, branding, promotion, etc.); 10. Rights available, date available, etc. ; 11.Any sales history (to whom, what price, when, etc.); 12.Any known conflicts/limitations on selling; 13. Contact address, phone fax and e-mail; 14. Terms (length, price, options to renew); 15. Rights granted; 16. Any encumbered reversionary rights; 17. Legal/policy limitations on rights; 18. Suggested pricing; 19.Assessment of the value range for assets; 20. Suggested/possible bundling opportunities with other assets; 21.Assessment of the degree of difficulty to obtain a sponsorship agreement; Indication of priority Obiective 2: Create a Comprehensive Sponsorship Policy 1. Review current sponsorship acceptance procedures; 2. Participate in and support process to match community and City Commission expectations and sensitivities to possible sponsorship opportunities; 3. Specify the approach to be used to match the expected sponsorship opportunities with City Commission and community expectations; 4. Create a policy that addresses the impact of existing financial planning and economic development; Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 10 of 11 5. 6. Present and develop a policy as directed by City; and Identify any conflicts and/or limitations of the City of Miami Beach regulatory codes with regard to implementation of a corporate sponsorship program. Obiective 3: Develop Strategic Plan for Marketing Assets 1. Prioritize the database; 2. Develop a written strategy document; and 3. Assess the City's potential and recommend process/policy to earn income from Product Licensing Agreements. Phase II Activity At its sole discretion, the City may: 1. Elect to terminate the corporate sponsorship program, or 2. 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 3. 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. Phase II will consist of marketing the City's assets, consisting of the following activities: 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. Provide advice in implementing/managing sponsorships. 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. In Phase I, IMG will survey and analyze the City's marketable assets; will place a value on each asset; will assist the City in writing sponsorship policy; will develop a prioritized marketing strategy. In Phase II, IMG or a subsequent contractor, will "package" assets for sale; will assist the City in the RFP process for each asset category; will assist the City in evaluating RFP responses and then assists the City on negotiating a sponsorship contract. Corporate Marketing and Sponsorship Program RFP No. 06-04/05 May 18, 2005 Page 11 of 11 The decision to enter into Phase II work, or to proceed to implement the sponsorship program, and with which consultant is solely that of the City Commission. IMG proposed the following fee structure, which will be subject to negotiations by the Administration: 1. A monthly fee of $20,000 per month for the first 12 months of the relationship plus approved expenses. 2. A 20% sales commission on all amounts generated for the City; 3. If the City chooses to retain IMG to move forward with the plan developed in Phase I, IMG would credit the City up to 50% of any fees received against the commissions generated. 4. Any renewals of any partnership deals would be commissioned at 10%. The Administration will ensure that the various City stakeholders are involved and committed to the success of this program, and be cognizant of the potential for "over commercialization" of the City. CONCLUSION The Administration recommends that the City Commission adopt the attached resolution that accepts the Manager's recommendation pertaining to the ranking of firms, and authorizes the Administration to negotiate with IMG, to develop and implement a Citywide corporate marketing and sponsorship program, and if the Administration is successful in its negotiations, further authorizes the Mayor and City Clerk to execute a contractual agreement.