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HomeMy WebLinkAboutADM 150 Marketing Partnership and Advertising Policyoo/ DICKERING Policy Procedure Title: Marketing Partnership and Advertising Policy Policy Number ADM 150 Reference FIN 030 FIN 040 Resolution #80/15 Resolution #207/16 Date Originated (mIdly) July 30, 2015 Date Revised (mIdly) December 2017 Pages 6 Approval: Chief Ainistr, t`V- Officer Point of Contact Manager, Business Development & Public Affairs 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 01.01 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 02.01 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 03.01 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. 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. Donations of services do not qualify for tax receipts. 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. Policy Title: Marketing Partnership and Advertising Policy Page 2 of 6 Policy Number: ADM 150 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; • 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; Policy Title: Marketing Partnership and Advertising Policy Page 3 of 6 Policy Number: ADM 150 • 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; • 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. Policy Title: Marketing Partnership and Advertising Policy Page 4 of 6 Policy Number: ADM 150 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. All agreements are subject to final review with the respective Supervisor, Manager, Division Head/Director in consultation with the Coordinator, Marketing Partnerships. 07.01 Manager, Business Development & Public Affairs: is 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 Division Head, Corporate Communications & Public Relations is 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 Director, Finance & Treasurer: The Chief Administrative Officer and the Director, Finance & Treasurer are responsible for approving all agreements with a total contract value of over $100,000 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 6 of 6 Policy Number: ADM 150 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: • Opportunities 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; • 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 Director, 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. Policy Title: Marketing Partnership and Advertising Policy Page 5 of 6 Policy Number: ADM 150