HomeMy WebLinkAboutCR 15-15 City °ie - Report to
Executive Committee
PICKERING
Report Number: CR 15-15
Date: September 14, 2015
From: Marisa Carpino
Director, Culture & Recreation
Subject: Marketing Partnership and Advertising Policy
- File: A-1440
Recommendation:
1. That Council approve the Marketing Partnership and Advertising Policy; and
2. That appropriate City of Pickering officials be authorized to take the necessary
action to implement this Policy.
Executive Summary: City of Pickering staff have prepared a Marketing
Partnership and Advertising Policy that identifies a process to solicit, evaluate and make
determinations regarding marketing partnership and advertising opportunities that
safeguard the corporate values, images, assets and interests while increasing the
opportunities for revenue generation.
More specifically, the Policy establishes the principles and conditions under which the
City will pursue and enter into marketing partnerships and advertising agreements and
sets out the responsibilities and delegated authorities to ensure consistency with the
City's vision and core values.
The Policy applies to the following types of marketing partnerships and advertising
opportunities over a specific period of time:
1. Program and special event marketing partnerships
2. Naming/renaming of City,property, buildings, and structures
3. Branding of City assets
4. Pouring rights
5. Paid advertising on City property, at City events, and in City publications
The Policy is particularly beneficial to the City as it establishes a comprehensive and
coordinated staff approach to more effectively build community partnerships, maximize
city resources, enhance visitor experiences and minimize tax payer dollars.
The purpose of this report is to seek Council's approval of the Marketing Partnership
and Advertising Policy. .
CR 15-15 September 14, 2015
Subject: Marketing Partnership and Advertising Policy Page 2
Financial Implications: The City's existing Marketing Partnership &Advertising
Program generates approximately $50,000 in revenues and $10,000 in in-kind
contributions annually. These partnerships are most often branding and activation
opportunities at City events, services and programs such as Canada Day, Tree Lighting,
Artfest, Sustainable Pickering Days, and Environmental Discovery Days.
In addition, the Culture & Recreation Leisure Guide generates approximately $19,000
annually in advertising revenues. As per Council Resolution #247/14, the City also has
an Advertising Licence Agreement which generates approximately $33,000 annually
primarily through arena advertising. In total, the City of Pickering generates over
$100,000 annually in advertising and sponsorship revenues.
The annual cost to operate the City's existing Marketing Partnership &Advertising
Program is approximately $50,000 in staff resources and miscellaneous program
materials, which are reflected in the approved 2015 Current Budget. Culture &
Recreation Department staff (and City Development, Library staff to a lesser degree)
incorporate the operation of the Marketing Partnership &Advertising Program within
their existing work portfolio, so funds for a single dedicated staff person are currently not
incurred.
Within the existing program framework, the City of Pickering has not yet captured
revenue opportunities with respect to naming rights. These assets include five arenas
at the Pickering Recreation Complex and Don Beer Arena, with associated change
rooms and meeting rooms; indoor pools at the Pickering Recreation Complex and
Dunbarton Indoor Pool; and, a variety of facility assets such as the Pickering Recreation
Complex which includes the fitness room(s), weight rooms, squash, tennis and
racquetball courts, children's program room, meeting rooms, art room and banquet hall.
Other assets available for consideration also include City Parks and Trails, Sports
Fields, Benches and Plantings and City events such as Adopt-a-Park, Pickering Blooms
and National Youth Week.
In this way, the City has many assets still available with the potential to increase
revenue. The estimated value of the available marketing partnership and advertising
opportunities (based on the City's assets) is approximately $825,000 annually. With
current advertising and sponsorships sales of approximately $100,000 annually, the City
is currently earning 8% of potential revenues. With the support of a dedicated staff
person and the implementation of this policy, staff project to earn 20% of potential
revenues (or $165,000) by the year 2017.
CORP0227-07/01 revised
CR 15-15 September 14, 2015
Subject: Marketing Partnership and Advertising Policy Page 3
The cost to operate the Marketing Partnership & Advertising Program within the
proposed Policy is approximately $55,000 in 2016 and approximately $100,000 annually
thereafter. These costs are primarily for one dedicated staff person to work full time,
effective July 1, 2016, and for Marketing Partnership &Advertising Program costs such
as program brochures and sponsors recognition events.
Financial commitments to operate the Marketing Partnership &Advertising Program
fully, as outlined in this Policy, will be brought back to Council for their information and
consideration in the 2016 budget year.
Discussion: City of Pickering staff have been pursuing marketing and
advertising opportunities within our community for the past several years. These
opportunities most often involve branding and activation opportunities at various City of
Pickering events, programs and services such as Canada Day, Artfest, Celebrate
Winter, Sustainable Pickering Days, and Environmental Discovery Days. The effort of
staff results in approximately $50,000 in revenues and $10,000 in in-kind contributions
annually.
City of Pickering generates additional advertising revenues through the Culture &
Recreation Leisure Guide (approximately $19,000 annually) and through an existing
Advertising Licence Agreement for primarily arena advertising (approximately $33,000
annually). These partnerships have proven to be quite effective in building community
partnerships, maximizing City resources, enhancing visitor experiences and minimizing
reliance on tax payer dollars.
As part of Pickering's Bicentennial Celebrations in 2011, City staff developed a
comprehensive Sponsorship Program that was coordinated through the Culture &
Recreation Department. This program was extremely successful in generating over
$130,000 in revenues and in-kind contributions, which offset all costs associated with
the Bicentennial Celebration activities. This experience highlighted to staff the potential
of such a comprehensive and coordinated approach.
As a result, City staff began to investigate the opportunity to develop a corporate wide
Marketing & Advertising Program much like other municipalities which includes Naming
Rights. During this review, staff found various challenges with the City's current
Marketing Partnership and Advertising process which limits revenue potential such as:
• A lack of a coordinated approach to solicit potential marketing partnerships and
advertisers.
• A lack of a comprehensive and coordinated corporate strategy to maximize
revenues.
• A lack of a centralized database to record, track, analyze and report on
marketing partnerships and advertising activities resulting in donor fatigue due to
multiple departments contacting the same sponsors.
CORP0227-07/01 revised
CR 15-15 September 14, 2015
Subject: Marketing Partnership and Advertising Policy Page 4
• A lack of a comprehensive asset inventory to market opportunities.
• A lack of consistent valuations of similar marketing partnerships and advertising
opportunities from one program to another.
• A lack of information sharing regarding successes and lessons learned across
departments.
As such, City staff have worked collaboratively to develop the City's first ever Marketing
Partnership and Advertising Policy. The purpose of the Policy is to identify a process to
evaluate and make determinations regarding marketing partnership and advertising
opportunities that safeguard the corporate values, assets and interests while increasing
the opportunities for revenue generation. More specifically, the Policy establishes the
principles and conditions under which the City will pursue and enter into marketing
partnerships and advertising agreements, and sets out the responsibilities and
delegated authorities to ensure consistency with the City's vision and core values.
The Policy applies to the following types of marketing partnership and advertising
opportunities, over a specific period of time:
1. Program and special event marketing partnerships
2. Naming/renaming of City property, buildings, and structures
3. Branding of City assets
4. Pouring rights
5. Paid advertising on City property, at City events, and in City publications
As a result, the purpose of this report is to seek Council's approval of the Marketing
Partnership and Advertising Policy. The Marketing Partnership &Advertising Program
will not be fully implemented until mid-year of 2016, pending 2016 budget approval for
associated costs.
Attachments:
1. Marketing Partnership and Advertising Policy.
CORP0227-07/01 revised
CR 15-15 September 14, 2015
Subject: Marketing Partnership and Advertising Policy Page 5
Prepared/Approved/Endorsed By: Approved/Endorsed By:
•
Marisa Carpino Ri and Holborn
Director, Culture & Recreation 'rector, Engineering & Public Works
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Di -ctor City Development
Paul :ig '•�ni
Direc •r, Coro orate Services & City Solicitor
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Fire Chief
Cathy Grant
Chief Executive Officer, Pickering Public
Library
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Recommended for the consideration
of Pickering City Council
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Tony Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07/01 revised
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• ATTACHMENT#. TO REPORT# OR (6-
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City Policy
PICKERIN
Policy Title: Marketing Partnership and Advertising Policy Policy Number
ADM 150
Reference Date Originated (m/d/y) Date Revised (m Idly) Pages
FIN 030 . July 30, 2015 7
FIN 040
Approval: Chief Administrative Officer Point of Contact
Director, Culture & Recreation
Policy Objective
The Corporation of the City of Pickering welcomes and encourages marketing partnerships and
advertising to assist in the provision of City programs, services, events, projects and facilities.
This policy provides guidelines to maximize revenue opportunities while safeguarding the City's
vision, mission, values, interests, and public image.
Index
01 Purpose
02 Scope
03 Application
04 Definitions •
05 Principles and Conditions
06 Administrative Requirements and Authorities Solicitation and Allocation Marketing
Partnerships and Advertising
07 Delegation of Authority
•
01 Purpose
The purpose of this policy is to establish a process to evaluate and make
determinations regarding marketing partnership and advertising opportunities in a
manner that safeguards the City's corporate values, image, assets and interests while
increasing the opportunities to neutralize costs and/or generate revenue. This policy
does not pertain to funding received from other levels of government through formal
grant programs.
02 Scope
This policy applies to all relationships between the City and businesses, organizations,
and individuals that contribute either financially or in-kind to City programs, services,
events, projects, or facilities in return for recognition, public acknowledgement or other
promotional considerations subject to a specific period of time. This policy applies to
the following:
• program and special event marketing partnerships
• naming/renaming of City properties, buildings and structures
• branding of City assets
• pouring rights
• paid advertising on City property, at City events, and in City publications
03 Application
This policy applies to all City employees. This policy does not apply to the City's
elected officials.
•
04 Definitions
04.01 Advertising — denotes the sale or lease of advertising or signage space
on City-owned property. Unlike marketing partnership, it involves the
use of public advertising contracted at pre-determined rates for a set
period of time. Advertising does not imply any reciprocal partnership
arrangement since the advertiser is not entitled to any additional
benefits beyond access to the space.
04.02 Marketing Partnership — is a mutually beneficial business arrangement
wherein an external party, whether for profit or otherwise, provides cash
and/or in-kind services to the City in return for commercial advantage.
This payback may take the form of publicity, promotional consideration,
merchandise activation opportunities, etc. Because of these marketing
benefits, a marketing partnership does not qualify for a tax receipt.
Policy Title: Marketing Partnership and Advertising Policy Page 2 of 7
Policy Number: ADM 150
04.03 Donations — is a gift or contribution of cash, goods or service given
voluntarily toward an event, project, program or corporate asset as a
philanthropic act. Donations do not constitute a business relationship
since no reciprocal consideration is sought. Refer to the City's Financial
Control Policy FIN 030 for rules that govern donations.
04.04 In-Kind Contributions — are non-monetary donations in the form of
either goods or services rather than cash. The City is not required to
provide marketing partnership benefits for in-kind contributions. In-kind
contributions do not qualify for a tax receipt.
04.05 Naming Rights — are a type of marketing partnership in which an
external company, organization, enterprise, association or individual
purchases the exclusive right to name an asset or venue (e.g. a library
building, sports facility or part of a facility, an ice pad in a multi-pad
facility, etc.) for a fixed period of time. Usually naming rights are
considered in a commercial context, which is that the naming right is
sold or exchanged for significant cash and/or other considerations under
a long-term arrangement. This arrangement is documented in a written
agreement signed by the interested parties and has a specified end date
to the contractual obligations.
04.06 Properties — refer to City assets. These include, but are not limited to
events, services, programs, activities, real property, facilities, intellectual
property, parks, features (e.g. rooms, ice pads, etc.) and other assets,
but not including streets.
04.07 Pouring Rights — are a type of marketing partnership in which a
corporation, an organization or an individual purchases the exclusive
right to supply beverages at a City facility in exchange for cash and/or
other considerations over a long-term agreement.
•
05 Principles and Conditions
General Requirements
05.01 Marketing partnerships and advertising must comply with federal and
provincial statutes, municipal by-laws and the standards set out by the
Canadian Advertising Standards Council.
05.02 Marketing partnerships and advertising opportunities will be considered
and determined based on, but not limited to, the following criteria:
• The value of the product, service and cash provided to the City;
• The relationship is mutually beneficial to both parties;
Policy Title: Marketing Partnership and Advertising Policy Page 3 of 7
Policy Number: ADM 150
• The opportunity enhances the development, awareness and
sustainability of one or more City programs, services or facilities; and
• The opportunity optimizes revenue opportunities and results in a net
financial benefit to the City.
05.03 The following conditions apply when establishing marketing partnerships
and advertising relationships:
• The City will maintain control over the planning and delivery of
marketing partnership activities;
• Agreements shall not in any way invoke future consideration, influence,
or be perceived to influence the day-to-day business of the City;
• Advertising devices must not impact the quality and integrity of the
City's properties, buildings, streetscape, and provide no added risks to
safety;
• The advertisement of a product or service does not act as the City's
endorsement of any one product or service over another; and
• The marketing partnership and advertising opportunity should be
appropriate to the target audience.
Restrictions for Marketing Partnerships &Advertising
05.04 The City will not solicit or accept marketing partnership or advertising
from companies whose reputation could prove detrimental to the City's
public image and/or whose main business is derived from:
• The sale of tobacco;
• Pornography; and
• The support of, or involvement in the production, distribution, and sale
of weapons and other life-threatening products. •
05.05 The City will not allow marketing partnerships or advertising, either
directly or through third party arrangements, that:
• Violate any City policy;
• Convey a negative religious message that might be deemed prejudicial
to religious groups;
Policy Title: Marketing Partnership and Advertising Policy Page 4 of 7
Policy Number: ADM 150
• Promote alcohol and other addictive substances, at venues geared
primarily to children;
• Present demeaning or derogatory portrayals of individuals or groups or
contain anything, which in light of generally prevailing community
standards, is likely to cause deep or widespread offence; or
• Is in direct competition with City of Pickering services, programs or
initiatives.
05.06 The City reserves the right to reject any unsolicited marketing partnership
or advertising that have been offered to the City and to refuse to enter
into agreements for any marketing partnership or advertising that
originally may have been openly solicited by the City.
05.07 The City may, at its discretion, bring any proposals to Council for their
approval even if they do not meet the guidelines of this policy.
06 Administrative Requirements and Authorities Solicitation and Allocation
Marketing Partnerships and Advertising
06.01 Marketing partnership activities and advertising should continue to be the
result of direct solicitation by the City to marketing partners and
advertisers.
06.02 As a general rule, the following marketing partnership and advertising
opportunities should be competed:
• O pp ortunities that will offer a significant corporate profile;
• Agreements of a lengthy duration (over 5 years); and
• Agreements that allow for exclusive benefits and recognition.
06.03 Non-competitive arrangements may be considered for the following
opportunities when:
• An unlimited number of marketing partners and advertisers are being
sought;
• It is a unique, innovative or experimental marketing partnership
opportunity;
• Only one suitable marketing partner can be identified;
• The value of the marketing partnership or advertising opportunity is
less than $50,000;
Policy Title: Marketing Partnership and Advertising Policy Page 5 of 7
Policy Number: ADM 150
• The value of an in-kind media marketing partnership is less than
$100,000; and
• The need is justified in a business case, approved by the Chief
Administrative Officer and Division Head, Finance & Treasurer.
06.04 Unsolicited marketing partnerships and advertising received by the City
will be reviewed and evaluated by the relevant program staff as per the
provisions of this policy.
06.05 The selection of a preferred supplier will be consistent with the City's
procurement policy. There will be no requirement to obtain quotes or
undertake a proposal and staff can initiate opportunities without the
requirement to test the market further.
06.06 All marketing partnerships and advertising shall be evaluated on an
annual basis to determine continued benefit. The term of all agreements
shall not exceed ten years, unless authorized by City Council.
06.07 The City reserves the rights to terminate an existing marketing
partnership or advertising agreement should conditions arise that make it
no longer in the best interests of the City. Accordingly, the City reserves
the absolute right to order the immediate removal of advertising on its
property at any time.
07 Delegation of Authority
City staff is authorized to enter into marketing partnerships and advertising that do not
exceed the following pre-authorized limits. Agreements that exceed these pre-
authorized limits will require City Council approval.
07.01 Supervisors: Supervisors are responsible for approving all agreements
with a total contract value of up to $15,000 provided they satisfy all
provisions of this policy.
07.02 Managers: Managers are responsible for approving all agreements with
a total contract value of up to $30,000 provided they satisfy all provisions
of this policy.
07.03 Directors: Directors are responsible for approving all agreements with a
total contract value of up to $100,000 provided they satisfy all provisions
of this policy.
07.04 Chief Administrative Officer and the Division Head, Finance &
Treasurer: The Chief Administrative Officer and the Division Head,
Finance & Treasurer are responsible for approving all agreements with a
Policy Title: Marketing Partnership and Advertising Policy Page 6 of 7
Policy Number: ADM 150
total contract value of over $125,000 and/or with a financial expenditure
required by the City to fulfill the sponsorship request of over $5,000.
07.05 City Council: City Council approval is required for any contract that does
not satisfy the provision of this policy and for opportunities involving the
naming/renaming of City property, buildings and structures for a specific
period of time. City Council approval is required for all proposals that
include billboard advertising.
Please refer to all associated Procedures and Standard Operating Procedures, if applicable, for
detailed processes regarding this Policy.
Policy Title: Marketing Partnership and Advertising Policy Page 7 of 7
Policy Number: ADM 150