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HomeMy WebLinkAboutReso 1979-9762Form No. 342 Rev._ 2/76 RESOLUTION N0. 9762 RESOLUTION OF THE CITY COUNCIL OF'~~'€iE" Ci`TY OF CHULA VISTA, APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BENEDICT COMMUNICATIONS FOR PROVISION OF TRANSIT MARKETING SERVICES FOR FY 1979-f30 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby res lve as follows: NOW, THEREFORE, BE IT RESOLVED that that certain agrQement bet en THE CITY OF CHULA VISTA, a municipal corporation, and BEN DICT COMMUNICATIONS, for provision of transit marketing services for FY 1979-80 dat d the whi h is ful y set Visa be, agr ement 4th day of September 19 79 , a copy of attached hereto and incorporated herein, the same as though forth herein be, and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula and he is hereby authorized and directed to execute said f.or and on behalf of the City of Chula Vista. Presented by ~G i~~Z~ W. Ro ens, Adm nistrator Development Services Approved as to form by Geo e D. Lindberg, City A rney ADOPTED AND APPROVED by the CITY COUNCIL of the CITY OF CHULA VIS A, CALIFORNIA, this 4th day of September , 19 79 , by AYE Councilmen Hyde, McCandliss, Scott, Gillow, Cox NAY S: Councilmen None ABS NT : Councilmen None Mayor of the City of C ul Vista ATTE v S TA7 COUD CITS of C truE not City Cler E OF CALIFORNIA) ~I'Y OF SAN DIEGO) ss . OF CHULA VISTA) I, City Clerk of the .City hula Vista, California, DO HEREBY CERTIFY that the above is a full, and correct copy of Resolution No. and that the same has been amended or repealed. DATED City Clerk AGREEMENT This agreement is entered into on this 4th day of September, 1.979, by and between the City of Chula Vista, hereinafter referred to as "City" and Benedict Communications, hereinafter referred to as "Ag ency," and will terminate on June 30, 1980. PURPOSE The City desires to formalize and define the services provided by the Agency in order that responsibility and control may be properly delegated in the best interests of Agency and City. STATEMENT OF RESPODISIBILITIES City shall pay to Agency a $1,000 minimum retainer fee to administer this contract for the last ten (10) months of FY 1979-80. A representative of the Agency should be available on a daily basis for consultation on marketing, promotional, and public relations projects including the development of a Comprehensive Marketing Program (CMP). Consultation on design and production of route maps, schedules, and other public informational aids. Assistance in obtaining cost estimates and comparative benefits of various a]_ternatives in promotional projects and media buys . Purchase of media on behalf of the City with prior approval by the City. Media buys will be purchased by the Agency at the "Agency Rate" with commissions norm al ].y paid by the media going to the Agency. This is not to be construed as permission for the Agency to obligate the City to a binding media term contract. Agency will assist the City as a public relations liaison in obtaining community acceptance, press coverage, and support by local businesses. The City shall adhere to the Agency rate schedule or estimate of costs listed below for the following services performed by the Agency and not covered by the monthly retainer: 1. all media billed through Agency at the "Agency Rate" of 15g of gross bil]_ing s to City; /~ ~` v " `• ~, 2. all production on graphics to be billed out at $40.00 per hour for creativity and $22.00 per hour for production for all ads used in promotion of Chula Vista Transit; 3. typesetting will be charged out at $30.00 per hour; 4. photostats will be billed at competitive advertising rates; 5. consultation on all projects, when needed, will be billed out at $30.00 per hour; 6. City shall pay Agency a retainer fee of $100 per month to be credited against consultation fees, unless no work is provided, in which case the $100 retainer cumulates and is credited against succeeding months' fees. Total costs of Ag ency's services for FY 19?9-80 shall not exceed $18,000. OBLIGATIONS OF AGENCY Agency will assist the City in the design of a detailed Comprehensive Marketing Program (CMP) which will define activities to promote Chula Vista Transit (CVT), establish a timetable for implementation of these activities, list media resources to be utilized and estimate individual. activity and total CMP costs. Agency will provide a written outline of any proposed promotion campaign listing media buys intended for the project before obligating the City. Agency will identify invoices submitted to the City by the project to which the invoice pertains. Copies of invoices paid by the Agency on the City's behalf will be attached to the Agency .invoice. Agency will allow the City re-use of art work for which the City has previously paid the Agency. OBLIGATIONS OF CITY City shall not make any commissionable media buys without prior concurrence from Agency. ~~ (~~ v~ City shall inform the Agency of any changes or additions to the final CMP which would affect the Agency and/or City's operation. ~~ V ~, ` City will pay to Agency within fifteen (15) wor}cing days after receipt of invoice from Agency for services provided for the previous month. LIMITATION OF OBLIGATIONS It is mutually understood and agreed that this agreement does not obligate the City to assign all marketing, promotional, and public relations activities to the Agency nor obligate or limit the Agency in relation to other accounts or projects the Agency may become involved in. ASSIGNMENT OF CONTRACT Upon acceptance 'oy the South Coast Organization Operating Transit (SCOOT) Board of Directors, this contract will be assigned over by the City of Chula Vista to SCOOT. TERM OF AGREEMENT This agreement constitutes a working agreement between the City and Agency. The agreement will terminate on June 30, 1380, or may be terminated by either party with sixty (50) days written notice prior to that date. ~I.J~C ` Mayor Ji B nedict, President City of Chula Vista Benedict Communications September 4, 1979 Date Date ATTEST: 2'ity Clerk City of Chula Vista Appro d as to form,- ~~~~ ~~/- .2ity Attorney City of Chula Vista -3- Agenda Item 13 9/4/79 August 20, 1979 File DP005 To: W. J. Robens, Development Services Administrator From: Jack A. Bloom, Transit Coordinator Cam..-~ Subject: Award of Marketing Services Contract The Council approved in May of this year, during the FY 1979-80 budget sessions, $18,500 for marketing Chula Vista Transit. At that time we discussed the crucial need of marketing Chula Vista Transit in order to increase ridership and this need has become more apparent since then due to the combination of high gasoline costs and other auto related inf]_ated costs. Staff also reported that the $18,500 figure for CV'P marketing was about double that budgeted for FY 1978-79 but a good deal below most transit operators' ex penditure on marketing (i.e. 1.5~ of CVT's total budget vs. ~a transit industry standard of 3~-4~) . I believe that it is quite important to both inform the public of CVT's operations as well as to promote our local bus service (including regional coordination) as well. Both present and potential riders need to be informed of new service and capital improvements, fare changes, etc. The fact that more people are riding transit now makes informational advertising (i.e. ads informing people "how to ride the bus") just as important as promotional advertising. We also discussed at the FY 1980 budget sessions that one of the primary reasons for contracting with a professional advertising firm was the lack of adequate manpower to spend time on this important but time consuming task. In July, 1979, I sent out informal bids to contract with an experienced advertising firm to market Chula Vista Transit. Only two firms in the San Diego region were found to have experience in provision of marketing services to transit operators: Wilson Frank Co. of San Diego and Benedict Communications of Del Mar. RECO}~IMENDATION I recommend awarding the contract, effective September 4, 1979, and terminating on June 30, 1980, to Benedict Communications based on the following justifications: 1. Benedict offered a lower minimum monthly retainer fee to administer the contract ($100 vs. $?_50) than did Wilson Frank. ~~ W. J. Robens -2- August 20, 1979 2. Benedict's and Wilson Frank's actual costs of provision of marketing services were approximately the same. Thus my recommendation to award the contract to Benedict is primarily based upon recent actual performance of similar work in the transit field. Benedict has extensive knowledge of marketing transit due to his contracts to provide outside bus advertising with six Southern California transit operators. Benedict also currently maintains an excellent working relationship with North County Transit District (NCTD) vis-a-vis the provision of marketing services to them over the last few years. Benedict's accomplishments in terms of his firm's services and the estimated impact on NCTD ridership are listed below. San Diego Transit (SDTC) contracted with Wilson Frank to provide marketing services for more than five years, ending in mid-1978. The SDTC Marketing Manager stated that Wilson Frank had performed well but the SDTC Board had decided to have most of their marketing services provided in-house. Wilson Frank stated that they have not provided marketing services to SDTC or any other transit operator over the past couple of years. DISCUSSION From my investigations it appears that Benedict Communications has done an excellent job in informing North County residents of NCTD operations as well as promoting this bus service. Some of Benedict's accomplishments for NCTD include the following: 1. As reported by NCTD°s Manager of Marketing and Planning, NCTD ridership in 1979 increased 2.5~-30~ over that of 1977 and 1978 without major service improvements, fIe believed this was largely due to increased awareness of the system as well as the creation of a positive image which were largely the results of Benedict's marketing services. 2. Benedict's NCTD informational ads were reported to have done much to effect a 35o ridership increase on NCTD since the recent energy crises. 3. NCTD's Director of Planning and Marketing also stated that Benedict was of great assistance in getting media contracts and in achieving maximum media exposure and thus name recognition. This ha.s the effect of NCTD reaching an ever expanding audience for the limited dollars it spends on marketing its system. 'V W. J. Robens -3- August 20, 1979 4. Benedict's specific promotions (e.g. "Ride On" button campaigns, sponsorship of "Run Your Bus Off" half marathon, and "Take NCTD to the Beach" ads) have often resulted in 30~-.!~O o one day ridership gains, as reported by NCTD staff. Thus I believe that Benedict Communications has done a more tYlan adequate job of mar?ceting NCTD and has the capability to promote CVT in a manner which is anticipated to result in similar ridership gains. Under this contract, the City will pay a retainer fee of $1,000 to Benedict for administering this contract for the last 10 months of FY 1979--80. This retainer fee will be credited against all consultation fees charged. Benedict will provide the following services to the City: 1. Development of a Comprehensive Marketing Program for FY 1980. a. Define activities to promote CVT. b. Assist City in establishing an estimated monthly marketing budget, within the transit marketing budget previously approved by Council. 2. Provide consulting services to staff as regards: a. CVT marketing, promotional, and public relations projects; b. Design and production of route maps, schedules, and other informational aids; 3. Obtaining cost estimates and comparative benefits of various alternatives in promotional projects and media buys. 4. Purchase of media buys on behalf of City. The proposed contract states that the total cost of Agency's services for FY 1979-80 cannot exceed $18,000 which is the amount currently remaining in the transit marketing account. All invoices for appropriate marketing expenditures from Benedict will be subject to prior approval by the Transit Coordinator. It will be my role to handle all public relations activities associated with promotion of CVT such as speaking bE~fore various groups/agencies and organizing forums to discuss the benefits of transit throughout the community. I also will primarily be responsible for placement of most public service ad s/announcements with appropriate media in the `~ W. J. Robens -4- August 20, 1979 South Bay, as well as prepare all CVT route maps and the system map. As stated in this agreement, the contract will be assigned over to SCOOT, which is allowed to enter into appropriate contracts to provide transit related services. JAB:nr