HomeMy WebLinkAboutCS 30-18--C1·(y o/--p] (KER 1 NG From: Marisa Carpino Director, Community Services Subject: Quotation No. Q-24-2018 -Advertising in City of Pickering Arenas -File: A-1440 . Recommendation: Report to Council Report Number: CS 30-18 Date: October 1, 2018 1. That Quotation No. Q-24-2018, for advertising in City of Pickering Arenas, submitted by BoardView Advertising Inc. be accepted; 2. That the Mayor and City Clerk be authorized to execute the Licence Agreement pursuant to which BoardView Advertising Inc. will be permitted to install and maintain advertising devices in City Arenas, in the form included as Attachment 1, subject to such revisions as are acceptable to the Director, Community Services and the Director, Corporate Services & City Solicitor; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The Licence Agreement permitting BoardView Advertising Inc. to install and maintain advertising in the Pickering Recreation Complex Arena and Don Beer Arena expired on June 30, 2018. As a result, the City of Pickering issued Quotation No. Q-24-2018 on the City's website inviting prospective proponents to submit proposals for advertising at City Arenas. The Arena Advertising Licence Agreement is for a three year term with an option in favour of the City to extend the agreement on the same terms and conditions for two, one year optional terms. Two proposals were received by the deadline of August 28, 2018. BoardView Advertising Inc. is the highest scoring proponent of Quotation Q-24-2018 with guaranteed revenues of $165,000.00 (plus HST) paid to the City of Pickering over the three year term. In conjunction with staff's review of the company's previous work experiences and references, the Community Services Department recommends that Quotation No. Q-24-2018 submitted by BoardView Advertising Inc. be accepted and the Licence Agreement be initiated with BoardView Advertising Inc. for advertising at City Arenas for the period of November 1, 2018 to October 31, 2021.
cs 30-2018 Subject: Quotation No. Q-24-2018 October 1, 2018 Page 2 Financial Implications: The revenue to be generated from the Licence Agreement with BoardView Advertising Inc. is guaranteed to be a minimum of $55,000.00 per year (plus HST) for a total of $165,000.00 (plus HST) over the three year term. The total advertising revenue collected by the City of Pickering from the recently expired Arena Advertising Licence Agreement was $33,000 (plus HST) per year for a total of $99,000.00 (plus HST) over the three year term. This new advertising agreement represents a 67 percent increase in Arena advertising revenues. Discussion: The Licence Agreement for Advertising at City Facilities expired on June 30, 2018. For this reason, the City of Pickering prepared and posted Quotation No. Q-24-2018 on the City's website on August 8, 2018 inviting prospective proponents to submit proposals by the deadline of August 28, 2018. The Arena Advertising Licence Agreement is for a three year term from November 1, 2018 to October 31, 2021 (inclusive) with an option in favour of the City to extend the Licence Agreement on the same terms and conditions for two, one year optional terms. Under the terms of the Licence Agreement, BoardView Advertising Inc. is to install and maintain advertising devices at the Pickering Recreation Complex Arena and Don Beer Arena at no cost to the City of Pickering. These advertising devices may include framed advertising, rink board signs, illuminated displays, restroom partition and whiteboards with advertising panels. The City of Pickering reserves the right of refusal on all advertising and retains the right to fill empty spaces with City/sponsor advertising. Award to the highest ranking proponent, BoardView Advertising Inc., will be conditional upon receiving the City's Health & Safety form, Clearance Certificate issued by Workplace Safety & Insurance Board and the Certificate of Insurance as deemed acceptable to Manager, Budgets & Internal Audit. The Community Services Department recommends Quotation Q-24-2018 submitted by BoardView Advertising Inc. be accepted and the Licence Agreement be initiated with BoardView Advertising Inc. for advertising at City Arenas for the three year period of November 1, 2018 to October 31, 2021 inclusive. Attachments: 1. Draft Licence Agreement 2. Supply & Services Memorandum dated September 17, 2018
f cs 30-2018 Subject: Quotation No. Q-24-2018 Prepared By: Marisa Carpino Director, Community Services :me Recommended for the consideration of Pickering City Council Tony P evedel, P.Eng. Chie ~dministrative Officer October 1, 2018 Page 3 Approved/Endorsed By: Ray~s Manager, Supply & Services .~ ~ Stan Karwowski, M ~ Director, Finance & Treasurer
A. ACHMENT#j_TOREPORT#~.?;O-t'0 Appendix A -Form of Agreement Sample only This Licence Agreement made as of November 1, 2018. Between: xxxxxxxxxxxxx (the "Company") -and-The Corporation of the City of Pickering (the "City") WHEREAS the City has agreed to allow the Company to licence certain areas of the City's Recreation Complex and Don Beer Arena for advertising purposes; Now Therefore the City and the Company agree as follows: Interpretation 1. In this Licence, "Arenas" means those portions of the Pickering Recreation Complex at 1867 Valley Farm Road, Pickering (Delaney and O'Brien Arenas) and the Don Beer Arena at 940 Dillingham Road, Pickering (Pads 1, 2 and 3) used for ice skating and ice hockey purposes, whether or not they are actually being used for those purposes at any time; "Arena Boards" means the playing surface side of the boards surrounding the Arenas; "Advertising Devices" means the wall advertising panels, display cases and panels in designated locations at the Don Beer Arena and the Pickering Recreation Complex Arena; and "Term" means the term of this Licence Agreement as set out in Section 4. 2. The headings of articles are for convenience of reference only and are not intended to limit, enlarge or otherwise affect their meanings.
3. Unless otherwise specified, references in this Agreement to Sections and Schedules are to Sections and Schedules in this Agreement. Term 4. The term of this Licence shall be three (3) years commencing on November 1, 2018 and ending on October 31, 2021, with two Option Years November 1, 2021 -October 31, 2022 and November 1, 2022 -October 31, 2023. Licence Fees 5. The Company shall pay to the City, plus applicable H.S.T., set out in (a) below: (a) Minimum Yearly Sum Licence Year Year 1 (Nov. 1, 2018 -Oct. 31, 2019) Year 2 (Nov. 1, 2019 -Oct. 31, 2020) Year 3 (Nov. 1, 2020 -Oct. 31, 2021) Option Year 1 (Nov. 1, 2021 -Oct. 31, 2022) Option Year 1 (Nov. 1, 2022 -Oct. 31, 2023) Minimum Fee $ ____ _ $ ____ _ $ ____ _ $ __ _ $ ____ _ 6. The Company shall pay the City without any deduction, set-off or abatement except as expressly provided under this Licence, _100% of the Minimum Yearly Sum set out in Section 5(a) in equal monthly installments on the 1st day of each month of the Term commencing November 1, 2018. Year End Statements 7. The Company shall within thirty (30) days after the end of each year of the Term provide the City with a statement for the previous year's total gross billings as well as providing a statement of accuracy by a firm of Chartered Accountants. Any adjustment in the amount of the licence fee payable by the Company under Section 5 shall be made on or before the 30th day of November of the next year of the Term, and in the case of the year 2021 on or before the 31st day of October 2021. Such documentation shall be kept confidential by the City and will be returned to the Company upon request. Examination of Statements 8. The City shall, at its discretion, have the right at all reasonable times to examine the Company's statements of total gross billings.
Use, Repair, Maintenance and Alterations 9. The Company shall pay for capital costs and all costs of installing and maintaining the proposed new media devices at the locations described in Schedule "A". 10. The Company shall use all Advertising Devises and areas only for the purpose of erecting and maintaining advertisements at the new media locations described in Schedule "A" Sections 1 -and at the following existing locations: Item 1 -Framed Advertising The City of Pickering reserves right of refusal on all advertising. Vendor to provide monthly inventory of all booked spaces. City to retain rights to fill any empty spaces with City/Sponsor Advertising. Facility Qty Size Location Pickering Recreation 6 4' x4' Throughout lobby and arena Complex Arena seating areas Pickering Recreation 14 4' X 8' Throughout lobby and arena Complex Arena seating areas Pickering Recreation 6 4' x4' Throughout lobby and arena Complex Arena seatinQ areas Pickering Recreation 14 4' X 8' Throughout lobby and arena Complex Arena seating areas Total Item 2 -Split Screen Monitor Advertising (City Schedules and Advertising) Size/Style* Vendor to provide recommendations. The City of Pickering reserves right of refusal on all advertising City Revenue/month/ location $ $ $ $ $ Vendor to provide monthly inventory of all booked spaces. City to retain rights to fill any empty spaces with City/Sponsor Advertising City Facility Qty Location Size/Style Revenue/month/ location Pickering Recreation 2 Main Entrance on way $ Complex Arena into rinks Don Beer Arena 3 Outside each ice pad $ Total $
Item 3 -Replacement/Addition of Advertising Board Size/Style* Vendor to provide recommendations. City of Pickering reserves right of refusal on all advertising Vendor to provide monthly inventory of all booked spaces. City to retain rights to fill any empty spaces with City/Sponsor Advertising. City Facility Qty Size/Style Revenue/month/ location Pickering Recreation Complex 1 $ Arena (replacement) . Don Beer Arena 1 $ (replacement) Total $ Item 4 -Dasher Boards City of Pickering reserves right of refusal on all advertising Vendor to provide monthly inventory of all booked spaces. City to retain rights to fill any empty spaces with City/Sponsor Advertising. Facility Qty City Revenue/month/location Pickering Recreation Complex Delaney Rink 20 $ Pickering Recreation Complex O'Brien Rink 15 $ Don Beer Arena -Arena 1 15 $ Don Beer Arena -Arena 2 15 $ Don Beer Arena -Arena 3 15 $ Total I $
Item 5 -Arenas -Illuminated Display Size/Style -Vendor to provide recommendations. City of Pickering reserves right of refusal on all advertising Vendor to provide monthly inventory of all booked spaces. City to retain rights to fill any empty spaces with City/Sponsor Advertising. City Facility Qty Size/Style Revenue/month/ location Pickering Recreation Complex 2 on east wall $ Delaney Rink 2 on west wall Pickering Recreation Complex 1 east wall $ O'Brien Rink Don Beer Arena 1 each end of $ Arena 1 pad Don Beer Arena 1 each end of $ Arena 2 pad Don Beer Arena 1 each end of $ Arena 3· pad Total $ Item 6 -Restroom Partition Advertising City of Pickering reserves right of refusal on all advertising Vendor to provide monthly inventory of all booked spaces. City to retain rights to fill any empty spaces with City/Sponsor Advertising. City Facility Qty Revenue/month/ location Pickering Recreation Complex Arena 38 $ Don Beer Arena 45 $ Total $ It 7 Ch em -ange R oom Wh"t b d 1 e oar s City Facility Qty Revenue/month/ location Pickering Recreation Complex 12 $ Arena Don Beer Arena 18 $ Arena 1-2-3 Dressing Rooms Total $
11. The Company shall, at no cost to the City, supply all labour, materials, tools, equipment, appliances, travel and freight to perform the services required to implement its right to advertise. 12. Advertisements placed on the Arena Boards shall be made of a water-resistant substance capable of withstanding the normal wear and tear associated with such Arena Boards, without tearing or being damaged in such a manner as to adversely affect the surface of the Arena Boards. 13. The Company shall place all advertisements at its own cost and at time or times and in a manner or manners satisfactory to the City. 14. All advertisements on the Arena Boards and the Advertising Devices identified in Section 10 other than Item 2 shall be supplied and installed by the Company and shall remain the property of the Company despite the fact that they may be affixed to City property. The proposed new advertising devices described in Schedule 'A' shall remain the property of the Company despite the fact that they may be affixed to City property. 15. The Company shall be responsible for the maintenance of the Advertising Devices including the replacement of electric bulbs and tubes and will attend to any damage done to such devices within 48 hours of the City notifying the Company of such damage. The City shall inform the Company of any damage to the Advertising Devices immediately following acknowledgement of such damage. All of the foregoing to be done at no cost to the City. The City shall supply, install and maintain all required electrical service, including all conduit and cable to all the advertising devices at no cost to the Company. 16. The Advertising Devices identified as Item 4 in Section 10 shall be supplied by the City at no cost to the Company. Such Advertising Devices shall remain the property of the City and be maintained by the City, including the replacement of tubes and bulbs, despite any right or obligation respecting granted to or imposed upon the Company under this Agreement. 17. All advertisements placed on Advertising Devices owned by the City shall be made of "Lexan" or a material of similar weight and properties. The City reserves the right to reject any material it deems to be unsatisfactory and the Company shall replace with an approved alternative. 18. Notwithstanding Section 17, the Company shall not install Advertising Devices in places where, in the City's opinion, they cannot be conveniently or safely installed. 19. The Company shall keep in good repair and maintain at all times the advertising and Advertising Devices so that same shall not constitute a
hazard. The Company shall ensure that all such repairs meet all applicable requirements of municipal and government authorities. 20. The Company shall not construct, build, erect or install any improvements or fixtures on any City property without the prior written approval of the City. 21. The Company will make one space available to the City in each advertising device bi-annually for such publicity as the City from time to time desires, relative to its undertaking or other matters of public interest and place such advertisements at the Company's own cost. 22. No advertisement on either the Arena Boards or Advertising Devices shall advertise, promote or mention in any way, (a) cigarettes, cigars or any tobacco product; (b) liquor, wine, beer or any other alcoholic beverage; (c) soft drinks, fruit drinks, potable waters, flavoured milks or any other non-alcoholic beverage, including any syrup and preparation from which they may be made, except those which from time to time are manufactured and sold or distributed and sold by Coca-Cola Ltd.; (d) fitness clubs, health and wellness facilities and/or competitive services with prior consent from the City; (e) refer to matters of questionable taste in reference to its content or presentation; (f) offensive and/or racial matters; (g) the endorsing or advocacy of, or opposition to, a political point of view, policy or actions, and/or any advertising which tends to disparage a candidate, party or cause; or (h) religious advertising which promotes a specific ideology, ethnic, point of view, policy or action, which, in the opinion of the City might be deemed prejudicial to other religious groups or offensive to uses of City property; 23. An advertisement can advertise, promote or mention, (a) a name of any politicc:;1I party and/or advocating the candidacy of an individual provided the content is in keeping with all ·guidelines and that the message centers on the candidate's name, and party affiliation, the office being sought, election date or other such information pertinent to the election, whether municipal, federal or provincial;
(b) information to the public informing them of the specifics relating to a meeting, gathering or event if the information is confined to subject, name of speaker, location, date and time of event; and (c) information related to religious matters designed to promote a specific meeting, gathering or event, if the information is confined to subject, name of speaker, location, date and time of event. 24. The Company acknowledges that the City is guided by the Canadian Code of Advertising Standards, however, the City is the sole and final arbiter in all matters relating to the advertising in or on City property. The City may refuse or order removal of any message at any time, at its discretion. 25. Any advertisement placed in and/or on the Arena Boards or Advertising Devices shall be of moral and reputable character and the Company shall forthwith remove any advertisement that the City, in the reasonable exercise of its discretion, desires removed. Indemnity 26. The Company shall indemnify and save harmless from any and all manner of actions, causes of actions, suits, damages, losses, costs, claims and demands of any nature whatsoever arising during the term of this Agreement out of: (a) any actual or alleged libelous or obscene advertisement or notice or any actual or alleged copyrighted matter in any advertisement notice; (b) any injury or death to any person resulting from the work herein described; (c) any liability which might arise from any breach of the municipal, provincial or federal regulations, ordinances, by-laws and laws; (d) any debts or obligations contracted by the Company or its employees in conjunction with the performance of this Agreement; (e) the placing and/or removal of any advertisements on the City property; or (f) any claim being made by any person against the City in connection with the advertising. 27. The obligations of the Company to indemnify the City under the provisions of Section 26 with respect to liability by reason of any matter arising during the Term shall survive any termination of this Licence. Nothing in this Section shall create or extend any right for the benefit of any third party.
Insurance 28. The Company shall, throughout the Term, at its sole cost and expense, take out and keep in force and effect the following insurance: (a) Comprehensive liability insurance of not less than five million ($5,000,000) per occurrence which shall include contractual liability coverage for liability including claims that might be brought against the City by any employee of the Company or any sub-contractor; (b) Automobile liability insurance of not less than two million ($2,000,000) per occurrence in respect of each owned or leased license vehicle for liability including claims that might be brought against the City by any employee of the Company or any sub-contractor; and (c) Advertiser's liability insurance which shall include contractual liability coverage for liability including claims arising out of libel, slander, unauthorized use of ideas or other materials and invasion of privacy. 29. The policy shall include The Corporation of the City of Pickering as an additional insured in respect of all operations performed by or on behalf of the Company. 30. The policy shall not be altered, cancelled or allowed to expire or lapse, without thirty (30) days prior written notice to the City. 31. The Company shall provide a Certificate of Insurance to the City upon request and if the City is not provided with a copy of the policy or a renewal thereof during the Term, at least thirty (30) days prior to its expiration date, then the City may arrange for the required coverage at the expense of the Company, which may be recovered from amounts owed to the Company. Assignment 32. The Company shall not assign or sub-licence all or any portion of this Licence Agreement without the City's consent. Default 33. If the Company is in default of any payment to the City and such default has continued for a period of thirty (30) days following written notice to the Company, the City may elect to terminate this Licence Agreement and remove all advertising from the Arena Boards and/or the Advertising Devices without further notice to the Company. Notice 34. All notices, demands, requests, objections and payments which may be or are required to be made or given pursuant to this Licence Agreement shall
be sufficiently given if served personally upon the party or any executive officer of the party for whom it is intended, or mailed, prepaid and registered, and in the case of the City, addressed to it at: The Corporation of the City of Pickering Attention City Clerk Pickering Civic Complex One The Esplanade Pickering, Ontario L 1V 6K7 and in the case of the Company: xxxxxxxxxxx or at such other address as the parties may from time to time advise by notice in writing. The date of receipt of any such notice, demand or request shall be deemed to be the date of delivery if such notice, demand or request is served personally or, on the second business day next following the date of such mailing if mailed as aforesaid. Miscellaneous 35. Upon the expiry of the Term, the Company agrees to remove all advertisements placed by it within thirty (30) days. If such advertisements are not so removed, the City may do so charging the Company with all reasonable expenses for so doing. 36. No term, covenant or condition of this Licence Agreement shall be deemed to have been waived unless such waiver is in writing. 37. The Licence Agreement shall enure to the benefit of and be binding upon the City and the Company and their respective successors and permitted assigns. Conflict of Interest 38. The Company acknowledges that neither it, nor its principle officers, staff or its contractors have actual or potential conflicts of interest that would preclude the Company from entering into this Licence. The Company shall notify the City in writing in the event that a specific task creates an actual or potential conflict of interest that may preclude involvement on a particular component of this Licence.
In Witness Whereof the parties have signed this Licence Agreement. XXXXXXXX. Name: Title: -----------------Ti tie: The Corporation of the City of Pickering David Ryan, Mayor Debbie Shields, Clerk Name:
AT ACHMENT# a TO REPORT# lb 3o~ \e Memo To: Marisa Carpino September 17, 2018 Director, Community Services From: Ray Rodrigues Manager, Supply & Services Copy: Administrative Assistant, Community Services Subject: Quotation No. Q-24-2018 Advertising in City of Pickering Arena's Closing Date: Tuesday, August 28, 2018 at 12:00 Noon. File: F-5300-001 A summary of the Stage II and Ill evaluation results for each quotation is attached for review. BoardView Advertising Inc. is the top ranked respondent with a submitted price of $165,000.00 (HST Excluded). In accordance with Appendix D -Request for Quotations Particulars, Item B: Material Disclosures, the following documents will be requested from BoardView Advertising Inc. (a) A copy of the City's Health and Safety Policy form currently dated and signed; (b) A copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; and (c) The City's certificate of insurance or approved alternative form shall be completed by the bidder's agent, broker or insurer. Please advise if Supply & Services is to proceed with this task. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. In accordance with Purchasing Policy, Item 06.12, revenue generating proposals for services are subject to the approval of Council prior to the Manager awarding the contract. Subject to receipt of approvals on Health & Safety and insurance documents, please provide your recommendation in report form. After receiving Council's approval, an approved "on-line" requisition will be required to proceed. Please direct all enquiries to Supply & Services. Respondents will be advised in due course. If you require further information or assistance, do not hesitate to contact me or a member of Supply & Services. RR/rr Attachments (1)