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HomeMy WebLinkAbout2013-11-19; City Council; 21428; Adoption Council Policy Corporate PartnershipsCITY OF CARLSBAD - AGENDA BILL AB# 21.428 ADOPTION OF PROPOSED CITY COUNCIL DEPF. DIRECTOR MTG. 11-19-13 POLICY ON CORPORATE MARKETING CITY ATTY. < DEPT. CM PARTNERSHIPS CITY MGR. RECOMMENDED ACTION; That the City Council ADOPT resolution No, 2013-269 APPROVING a new City Council Policy Statement on Corporate Marketing Partnerships. ITEM EXPLANATION; "Corporate marketing partnerships" is an umbrella term to describe a vanety of programs that enable corporate entities to support city programs, events and services while generating exposure for their brands among city audiences. Marketing partnerships have been common in the corporate and non profit sectors for many years. In the public sector, transit agencies have an established practice of marketing partnerships as well. More recently, the concept has gained popularity among municipalities. On July 16, 2013, city staff presented a proposed corporate marketing partnerships program to the City Council for consideration. Although several potential program components were identified, city staff recommend starting with two. A master vending contract would consolidate all vending contracts on city property with one company and a "proud partner" program, which would enable corporate entities to enter into vanous sponsorship agreements with the city. While such programs present opportunities to generate revenue that can be used to support city services and facilities, they present a number of legal and policy issues that should be clearly defined and addressed prior to implementation. At the July 16, 2013 workshop, the City Council directed staff to develop a corporate marketing partnership policy as a next step. The proposed policy addresses issues related to the law and community aesthetics that could anse from such partnerships while allowing adequate flexibility to negotiate mutually beneficial partnership arrangements. Specifically, the policy provides guidance on design, critena for selecting partners, allowable business categories, how partners would be recognized and how the program would be administered. The policy also allows for additional guidelines and design critena to be included in specific requests for proposals, depending on the nature ofthe proposed sponsorship and city assets involved. DEPARTMENT CONTACT: Kristina Ray, city communications manager, 760-434-2957 or kristina.ray@carlsbadca.gov FOR CLERK USE. COUNCIL AaiON: APPROVED • CONTINUED TO DATE SPECIFIC DENIED • CONTINUED TO DATE UNKNOWN CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • REPORT RECEIVED • Subject item to be continued to date to be determined with a new Agenda Bill and new Resolution. FISCAL IMPACT; Active Network, a consultant with nationwide expenence developing and implementing corporate marketing partnership programs, has evaluated City of CaHsbad assets, such as special events, programs and public facilities, and estimated that the City of Carlsbad could expect to generate between $375,000 to $750,000 in new, ongoing annual revenue within three years of launching such a program. This estimate is the net revenue. It is assumed that the city would hire a consultant to develop the programs and assist with negotiating partnership arrangements, working on a commission only basis. City staff would administer the contracts using existing staff resources. The revenue figures are based on the number of people who could be reached and the estimated value of that advertising "reach" in the sponsorship marketplace. Actual revenues would be determined following the successful completion of each program's request for proposals process and the subsequent contracts negotiated by staff and approved by the City Council. ENVIRONMENTAL IMPACT; Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS; 1. City Council Resolution No. 2013-269 (proposed Corporate Marketing Partnership Policy) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 li 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2013-269 A RESOLUTION BY THE CITY COUNCIL O^HE CITY OF CARLSBAD ADOPTING A CITY Cq/kc\L POLICY STATEMENT ON CORPORATE MARKETING PARTNERSHIPS. WHEREAS, the City of Carlsbad has ayfong commitment to providingyfervices in a way that provides the best value to taxMyers; and WHEREAS, entering into mutyelly beneficial partnership agj^ements with corporate entities would provide a /few soyfC^oi revenue^to enh^e city services, facilities and programs; and WHEREAS, a coordii^ed program t^eveloJ^arkerfig partnerships would provide new opportunitie^ro partner with_the busina^ commynity; and WHEREAS, corporate m/rketing pi^nership ^grams have been used effectively for man^ears by IjjoseVp^ie non-|Tofit and/ansit areas, and more recently by municipalitie^to generate n3^ revenu^-te^royide/nportant public services; and NOW,/HEREFORE, BE I\RESOLVED thaft the City Council Policy Statement No. on/;orporate1W*4§ting Part^rships is /dopted as show on "Exhibit 1" to this resoluti( 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of Jhe City Council ofthe City of CaHsbad on the dayof , 2013, by the following vote to wit: AYES: NOES: ABSENT ^ Policy No. 79 <^W^ CITY OF Date Issued: 11/19/13 CARLSBAD T^fTT Resolution No. Cancellation Date: Supersedes No. Council Policy Statement Category: CORPORATE MARKETING PARTNERSHIPS Specific Subject: Policy for Corporate Marketing Partnerships Utilizing City-Owned Assets PURPOSE: The City of Carlsbad has developed a Policy for Corporate Marketing Partnerships utilizing city-owned assets ("CMP" or "Policy") to maximize the revenue-generating capacity of City Assets in order raise revenue for operating and capital needs to enhance the municipal services and facilities it is able to offer to its residents, visitors and businesses. BACKGROUND: "Corporate marketing partnerships" is an umbrella term to describe a variety of programs that enable corporate entities to support city programs, events and services while generating exposure for their brands among city audiences. Staff presented a proposed corporate marketing partnerships program to City Council for its consideration on July 16, 2013. City Council directed staff to develop the corporate marketing partnership policy. POLICY: I. CMP General Policy Provisions A. The Policy contained herein will provide guidelines for allowing certain marketing opportunities (e.g. sponsorship recognition and/or commercial advertising) provided pursuant to CMP Agreements that will enable the City to generate revenue to enhance services and facilities. B. This Policy is not applicable to gifts, grants, or unsolicited donations for which no benefits are requested by the donor and where no business relationship exists pursuant to a CMP Agreement as defined herein. D. This Policy is not applicable to the naming of City facilities outside of a CMP Agreement as defined herein. E. This Policy is not applicable to events authorized by a Special Events Permit issued by the City of Carlsbad to individuals or entities not otherwise involved in the CMP Program. Page 1 of 10 3 PolicyNo. 79 F. Conditions upon which assets have been endowed or bequeathed to the City must be adhered to at all times. G. No external LED signs are permitted as part ofthe CMP Program. H. No CMP Agreement shall impair or diminish the authority of the City and its responsibilities with respect to any municipal facility or event that is the subject of said agreement. I. This Policy shall be incorporated into any new CMP Agreement entered into between the City and an interested party, including a party selected pursuant to a Request for Proposals ("RFP") as defined herein. J. Not all City events, facilities, or programs will be included in the CMP Program. It will be left to the discretion of the City manager and applicable Department Director or Directors as to whether a specific City event, facility, or program will be included in the CMP Program. K. Notwithstanding the establishment of this CMP Policy, the City will continue to permit community partners to establish independent Sponsorship recognition programs in conjunction with designated capital improvement projects (e.g. enhancements and restorations) in City parks and facilities. Such programs shall remain subject to City approval (including any applicable Commission approval(s)) on a project-by-project basis and shall be documented in conjunction with the execution of an applicable project license, lease, or cooperation agreement. The City's approval of such a program in connection with one or more projects in a park or facility does not preclude the inclusion of other Assets in the same park in a particular RFP pursuant to this CMP Policy. L This Policy shall be effective immediately, but it shall not be enforced so as to impair the obligations of any agreement in effect at the time of its approval. II. Definitions. For the purpose of this CMP Policy, the following definitions shall apply: "Advertising" means visual communication from an identified source that directs the public's attention to a particular product, service, program, or idea, which may include the City's own messages. For purposes ofthe CMP Policy, all third-party (i.e. Non-City) advertising on or for City Assets is limited to Commercial Advertising as defined herein. "City Assets" are items of tangible and intangible value owned by the City, including, but not limited to, facilities, vehicles, programs, activities, events, contracts, purchases, and proposed capital improvements. City Assets, currently identified by the City, acting as a proprietor, for potential Sponsorship or Commercial Advertising opportunities associated with the CMP Program are enumerated in this Policy. Additional details regarding available City Assets will be listed in an applicable RFP. Page 2 of 10 if Policy No. 79 "Commercial Advertising" is visual communication that directs the public's attention to a particular business, product or service or other commercial activity and/or proposes a commercial transaction. The Commercial Advertising must contain only expressions or identification of a product or service related to the economic interests of the advertiser and its audience. "Corporate Marketing Partnership" means a mutually beneficial business arrangement between the City and a Person, wherein the Person provides cash, in-kind goods or services and/or other resources to the City in exchange for an agreed upon set of rights and entitlements regarding use of specified City Assets for Commercial Advertising and/or Sponsorship arrangement. "Design Critena Standards" are a set of design guidelines relating to the appearance of Advertising and/or Sponsorship opportunities available for City Assets designated in this Policy and/or an applicable RFP. Design Criteria Standards will specify size, placement/location, and aesthetic limitations for CMP opportunities in accordance with this Policy and applicable law. Some Design Criteria Standards are described in this Policy; others may be included in a specific RFP. Design Criteria Standards will be described in each CMP Agreement and subject to the approval ofthe City Council. "In-kind Contnbution" means a gift other than cash or real property that would serve a useful purpose in the provision of City services. Examples of in-kind contributions include equipment, materials, products, or services. "CMP Agreement" is a written contractual relationship with a Person for a specified term, which clearly indicates the contribution, the contribution value, and the obligations of the Person in consideration for Partnership or Sponsorship recognition as determined by the City and/or for Commercial Advertising access and/or use of clearly identified City Assets and any resulting obligations of the City. All CMP Agreements shall be for a defined period of time having regard to the value ofthe Advertising/Sponsorship and, where applicable, the life ofthe affected Asset. All CMP Agreements are subject to the provisions of this Policy and will be subject to approval of the City Council. A CMP Agreement may address one or more City Assets. "CMP Program" or "Program" refers to the implementation ofthis Policy. "Person" means any individual, firm, association, organization, partnership, business trust, corporation, or company. "Sponsorship" means a mutually beneficial business arrangement and/or Partnership between the City and a Person wherein the Person provides financial support and/or in-kind contributions or other accepted resources to underwrite or benefit a specific City Asset or to assist the City in raising revenue for operating and capital needs in return for a benefit, which can include sponsorship recognition as further defined in this Policy. Sponsorship may also grant a sponsor with a limited right to associate the sponsor's name, products, or services with the City or a City asset subject to the guidelines and requirements ofthis Policy. III. Sponsorships Page 3 of 10 7 Policy No. 79 A. Purpose Pursuant to this CMP Policy, the City may decide to seek sponsorships for designated operating or capital expenditures, including programs, projects, events, facilities, and activities. The City retains sole discretion to choose those sponsors with whom it will associate itself. The City does not intend to permit and will not permit this Policy or any sponsor recognition provided for herein to become a public forum. By adopting this Policy, the City is acting as a proprietor and not as a regulator. The City is engaged in government speech when it accepts Sponsorships and when it chooses to provide sponsor recognition. The purpose ofthis Policy is NOT to communicate views of sponsors; rather it is to: 1) generate revenue to enhance City's programs, activities, events, services, facilities and capital improvements for City property; 2) to acknowledge such funding; and 3) to provide identification of its sponsors to the public. B. Sponsorship Guidelines 1. The City reserves the right to accept or reject any and all potential Sponsorship offers made in response to an RFP issued pursuant to this Policy. 2. Decisions to accept or reject proposed Sponsorships will not be made on the basis of the sex, race, color, religion, ancestry, national origin, disability, medical condition, marital status, or sexual orientation ofthe proposed Sponsor. 3. By accepting a Sponsorship or by entering into a CMP Agreement, the City does not limit its ability to accept any other Sponsorship or to enter into CMP Agreements with similar sponsors. 4. Persons entering into CMP Agreements with the City pursuant to this Policy shall not be given preferential treatment outside of the acknowledgements otherwise permitted pursuant to this Policy and the relevant CMP Agreement. Sponsors will not receive extra consideration with respect to any City procurement, any regulatory activities of the City, or other City business by providing a Sponsorship. No City employee or City official is authorized to offer any such extra consideration to a sponsor. 5. Pursuant to any applicable CMP Agreement, the City reserves the right to terminate any Sponsorship should conditions arise during the life of that Sponsorship that result in the Sponsorship conflicting with this Policy or the Sponsorship no longer being in the best interests of the City. Final approval of decisions to terminate a Sponsorship shall be made by the Communications Manager. 6. All Sponsorship opportunities must be compatible with relevant departmental operations. Sponsorship recognition shall not interfere with the city operations, operation of equipment, the provision of services or worker safety. 7. This Policy seeks to provide a benefit to all residents and businesses of the City and visitors thereto without diminishing the image of City services, facilities and programs. Page 4 of 10 Policy No. 79 8. The City reserves the right to decline to offer particular City Assets for Sponsorship opportunities and to revise this Policy as deemed necessary so as to add or remove City Assets from the available CMP pool as further defined herein. 9. If the proposed CMP Agreement includes naming rights to or in a park or facility, the Communications Manager shall inform and consult with the Director with jurisdiction over the subject park or facility on the appropriateness of the proposal. If necessary, the Communications Manager may consult a qualified third party to assist with determining the value of such naming rights. C. Sponsor Recognition 1. The City's recognition of any sponsor is provided to convey its appreciation for the sponsor's support of City operating and capital expenditures (such as programs, projects, events, facilities, and/or activities). 2. Any accepted Sponsorships will be acknowledged with recognition or marketing opportunities commensurate with the relative value ofthe Sponsorship to the City. The City will determine on a case-by-case basis what Sponsorship recognition is appropriate for a particular opportunity. 3. The City retains all editorial control of details regarding sponsor recognition, including the placement and/or display ofthe sponsor's name and/or other identifying symbol (such as the sponsor's logo) on promotional materials or other City Assets if permitted by applicable law and consistent with the Design Criteria Standards. A sponsor will have no design/content approval rights, other than to approve the use of its logo/intellectual property if deemed permissible by the City and applicable law. 4. Sponsorship recognition shall only be placed on City Assets after final execution of a CMP Agreement, which shall set forth any agreed-upon Sponsorship recognition. 5. Potential Sponsorship opportunities may include recognition of the sponsor in City news releases, promotional/printed materials, onsite promotion and recognition on one or more City Assets, booth space at a City special event, and/or naming rights. All such Sponsorship recognition shall be consistent with this Policy and any applicable Design Criteria Standards developed in conjunction with this Policy. 6. Sponsorship recognition messages may identify the sponsor, but the City will not endorse any product or service of its sponsors. 7. The form of any on-site sponsor recognition shall be of appropriate size and color, shall not detract from surroundings or any interpretive messages, and shall be subject to review by city Boards and Commission where applicable and must conform to the Design Criteria Standards developed in conjunction with this Policy. 8. All CMP Agreements shall be subject to legislative approval of City Council. IV. Commercial Advertising Page 5 of 10 PolicyNo. 79 Purpose This Section of the CMP Policy provides the framework for Commercial Advertising. This Policy is intended to include objective standards (as set forth herein), which are to be incorporated into any applicable RFP by the City without respect to viewpoint. It is the City's further declared intent that the Commercial Advertising portion of the CMP Program and designated City Assets defined in this Policy are nonpublic forums that are not intended or open for dissemination, debate, or discussion of public issues whatsoever. Limiting Advertising in accordance with this Policy, Inter alia, allows the City to: 1. Avoid non-commercial proselytizing of a "captive audience" of the public in attendance at a City facility or program; 2. Maintain a position of neutrality on political, religious and other debatable noncommercial subjects and issues; 3. Limit the likelihood of potential vandalism and destruction on City property; 4. Prevent potential violations of the Establishment Clause; 5. Prevent potential election campaign law violations; 6. Acknowledge the constitutional prohibition on viewpoint-related discrimination regarding Commercial Advertising in nonpublic forums; 7. Maximize income potential from advertisers, weighed against the likelihood that commercial advertisers would be dissuaded from using the same forum used by persons wishing to communicate non-commercial messages. B. Guidelines for Commercial Advertising: 1. Only Commercial Advertising (as defined herein) will be allowed on City Assets designated in this Policy except the Advertising of City sponsored or co-sponsored events or City services. The only City Assets available for Commercial Advertising are the non-public forums designated herein and/or in an applicable RFP. 2. Non-commercial advertisements that add an offer to purchase some item to the otherwise non-commercial message are not permitted pursuant to this Policy and will not be deemed to convert the advertisement to commercial speech. 3. No moving or animated parts will be permitted in Advertising. 4. Commercial Advertising shall only be placed on designated City Assets after final execution of a CMP Agreement. Page 6 of 10 0 PolicyNo. 79 5. The City reserves the right to require that Commercial Advertising include a disclaimer stating that the Advertising is not sponsored by the City and/or does not necessarily reflect the views of the City and does not constitute endorsement or recommendation by the City. 6. All Commercial Advertising must clearly identify a "Person" paying for the Advertising or causing the Advertising to be placed on a City Asset. Website addresses and/or phone numbers by themselves are insufficient to satisfy this requirement. C. Prohibited Advertising In order to increase its ability to earn revenue from certain categories of advertisers, and to ensure that its assets and resources do not promote the use of certain adult and/or regulated items to juveniles and others, the City will further prohibit Advertising on City Assets relating to the following categories of products and/or companies. 1. Advertising for illegal products, services or activities will not be permitted. 2. No political speech will be permitted, including but not limited to Advertising by political candidates for public office, by political organizations or concerning ballot issues. No Advertising regarding religious, philosophical, or other beliefs will be permitted. 3. Advertising that violates any federal, state or local law will not be accepted. 4. Advertising that is false, misleading, defamatory, or deceptive will not be permitted. 5. No obscenity will be permitted. For purposes of this Commercial Advertising Policy, "obscenity" shall include "obscene materials" as defined in state law. Penal Code 311 ("obscene matter"). 6. Advertising that is profane, vulgar, abusive, and/or otherwise presents a clear- and-present danger of causing a riot or other imminent threat to public safety will not be permitted. 7. Advertising that infringes on any copyright, trade or service mark, slogan, title, publicity right, or Visual Artists Rights Act of 1990 (VARA), 17 U.S.C.§106A will not be permitted. 8. Advertising that duplicates or mimics the identity or programs of the City (without City involvement) will not be permitted. 9. Advertising on City Assets relating to the following categories of products and/or companies whose business is substantially derived from the sale or manufacture of: alcohol, tobacco, firearms, weapons, and/or sexually oriented businesses will not be permitted. For purposes ofthis Policy, a "Sexually Oriented Business" shall be defined as a business having a business establishment or concern that as a regular and substantial course of conduct offers, sells or distributes "adult oriented material" or "sexually oriented merchandise," or that offers Page 7 of 10 Policy No. 79 to its patrons materials, products, merchandise, services or entertainment characterized by an emphasis on matters depicting, describing, or relating to "specified sexual activities" or "specified anatomical areas" but not including those uses or activities which are preempted by state law. Examples of Sexually Oriented Businesses include: adult retail stores; adult live entertainment; adult cabarets; adult motel or adult hotels; adult motion picture theaters; or nude model studios. 10. Advertising that contains websites or telephone numbers that direct viewers to websites or access to materials that otherwise violates this Policy or applicable law will not be permitted. 11. Advertising that includes words such as "STOP," "DANGER" or "WARNING" in bold letters or otherwise in a way that it may cause distractions to drivers along the public right of way will not be permitted. 12. Any Advertising that, if posted by itself or in combination with other Advertising, would cause the affected City Asset or CMP Program to become a public or designated public forum will not be permitted. Additional limitations are set forth in Section V below discussing specific City Assets and/or may be included in any Design Criteria Standards that are implemented in conjunction with this Policy. V. City Assets Available for CMP Opportunities and Additional Specified Limitations A. City Owned Vehicles 1. Where Sponsorship or Commercial Advertising is permitted for City-owned vehicles, the vehicle must still be identifiable as a City of Carlsbad vehicle. B. City Mailings 1. Use of Commercial Advertising or Sponsorship recognition in mailings or other City distributions must comply with federal, state, and local law and the standards for Sponsorship underthe CMP. C. City Buildings and Parks 1. Sponsorship recognition is permitted only for specified City-owned buildings and parks as determined in the applicable RFP. 2. No Sponsorship or Commercial Advertising is permitted on the exterior of City Hall or other City buildings accommodating City Departments, Police, Fire or EMS Stations and/or Facilities, or Historic Landmarks as defined in CMC Chapter 22.02. Page 8 of 10 Policy No. 79 3. The City will have final discretion over the ratio of the sponsor's name in comparison to the City's name, with the City's name/existing reference to the City Asset being prominent and proportionate to the size ofthe building or structure. 4. Static Commercial Advertising and/or Sponsorship recognition is permitted inside City-owned buildings only in those non-public forum areas specified by an applicable RFP. a. No Commercial Advertising or Sponsorship recognition shall be permitted inside the City Council Offices, or in any room, City Council chambers, and/or quasi-judicial chambers in which hearings are heard. b. No Commercial Advertising or Sponsorship recognition will be permitted on windows or in window wells. 5. Permitted locations for vending machines or other distribution of food/beverages will be included in an applicable RFP. 6. Temporary Sponsorships and/or temporary Commercial Advertising is permitted on waste or recycle receptacles or on banners. Booths dispensing products or literature will also be permitted. D. Street Furniture The City has a vested interest in the traffic safety and aesthetics relating to its streetscape, including those City Assets and/or public street furniture over which the City has contractual supervision. Sponsorship recognition and/or Commercial Advertising are permitted on the City owned and/or City contractually supervised street furniture in conformance with any applicable CMP Design Criteria Standards and/or other criteria as specified in an applicable RFP. E. City Programs/Events Department Directors shall have the discretion to determine whether a specific City program or event will be included in the CMP. VI. Responsibilities of Communications Manager for CMP All CMP Program activities will be coordinated by the Communications Manager. The Communications Manager will be responsible for all of the following: 1. Conducting a citywide effort to publicize this Policy and the CMP Program. 2. Recommending appropriate marketing opportunities. 3. Assisting in the creation and implementation of specific Design Criteria Standards beyond what is included in this Policy. City Council will review and approve any additional Design Criteria Standards as part of the approval of each CMP Agreement. Page 9 of 10 PolicyNo. 79 4. Reviewing and assisting in the development of CMP Agreements. 5. Working with a consultant, as applicable, to enter into CMP Agreements. 6. Providing assistance and guidance to City departments regarding the application and implementation ofthis Policy. 7. Assisting appropriate departments with administration and monitoring of agreements developed through the Program. 8. Maintaining a list of all CMP Agreements. 9. Providing an annual report to the City Council on all CMP agreements. Page 10 of 10 \ i