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HomeMy WebLinkAboutActive Network - 2012-09-17 (5)Council/Agency Meeting Held: Deferred/Continued to: proved ❑ Denied I ity Clerl Sign re Council Meeting Date: September 17, 2012 I Department ID Number: ED 12-34 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Bob Hall, Deputy City Manager/Economic Development Director SUBJECT: Authorize issuance of a Request for Information (RFI) for Naming Rights and Partnership Opportunities Statement of Issue: The City Council is requested to authorize the issuance of a Request for Information (RFI) to seek naming rights and partnership opportunities for the City of Huntington Beach. Financial Impact: There is no fiscal impact associated with this action. The goal of the project is to seek additional revenue which would further enhance the City's General Fund. Recommended Action: Motion to: Authorize issuance of a Request for Information (RFI) for Naming Rights and Partnership Opportunities. Alternative Action(s): Do not approve and direct staff accordingly. Item 7. - 1 HB -134- REQUEST FOR COUNCIL ACTION MEETING DATE: 9/17/2012 DEPARTMENT ID NUMBER: ED 12-34 Analysis: In March 2011, the City Council approved an Agreement with Active Network ("Active") to assist Huntington Beach in locating sponsorship opportunities for various City facilities and programs to generate additional General Fund revenue. Since that time, the City Council has approved implementation of a public recycling container program, beverage and snack vending machine installations, and the creation of a proximity marketing/free municipal Wi-Fi system. The vending program is operational, with approximately two dozen machines available to the public in various locations. The city has already received an advance commission of $50,000. Implementation of the other two programs will be completed in Fall 2012. Each of these programs share the dual purpose of not only generating revenue for the city from non-traditional sources but also providing and enhancing the quality of public services offered by the City of Huntington Beach. An objective of securing the services of Active has been to engage in a process of conducting outreach to private corporations interested in partnering with the city on a wider scale to provide financial support, in exchange for various benefits. These benefits will likely include the attachment of a company name to one or more facilities, a common practice for high -profile locations like stadiums, convention centers, and entertainment venues, but not uncommon to public facilities and attractions. Huntington Beach is uniquely positioned to offer the opportunity for private firms to lend their name to one or more of the city's prized assets, which include the Pier, Pier Plaza, beach parking lots, the Sports Complex, Shipley Nature Center, parks, libraries, and community centers. An important principle throughout this process is to ensure than any potential naming rights agreement is not just financially lucrative, but represents an investment in the Huntington Beach community, while protecting and promoting the City's image and reputation. Active, working with City staff, developed the attached Request for Information (RFI) for Naming Rights and Partnership Opportunities as a first step in soliciting interest from potential partners. Upon City Council authorization, Active will represent the City in approaching private entities that may be interested in participating in such a program. The RFI provides detail about what type of information the City would like to receive in order to begin consideration of such a partnership from any interested firm(s). Examples of criteria to be considered includes, but is not limited to, the overall vision of the firm for its partnership with the community, the financial structure and term of the agreement, exclusivity requirements, benefits to the city, and a firm's financial stability. The initial period in which to solicit interest will be 60 days following the release of the RFI. During that time, staff and Active will perform a basic review of all submissions. Only those which present the best of opportunities, in the opinion of staff and Active, will be pursued for more information. The variety of assets Huntington Beach has to offer is somewhat more unique in nature than that of a stadium or convention center. Therefore, until the opportunities can be explored the true level of financial benefits which may be generated through a naming rights partnership is not truly evident. A major asset such as the Pier or Pier Plaza may be able to generate millions of dollars of General Fund revenue within a multi -year term, while a community center or library may generate less based on the level of exposure as opposed to the Pier. The "market" value of our assets will be easier to determine once the RFI has gone into circulation. The value may also vary based upon what each interested partner HB -135- Item 7. - 2 REQUEST FOR COUNCIL ACTION MEETING DATE: 9/17/2012 DEPARTMENT ID NUMBER: ED 12-34 believes they have to offer. Issuance of the RFI does not in any way obligate the City to select any proposal; staff will present any recommendations to the Council. Many similar opportunities are being pursued throughout the nation. The New York Times published a feature article in June 2012 about how dozens of cities are looking to alternative sources of revenue, such as naming rights, advertisements, and sponsorships to generate funds for public facilities and programs to weather the economic downturn in their communities. Some examples include the AT & T Train Station in Philadelphia, where fare cards for passengers also feature the McDonald's logo, and Barclays Center in Brooklyn, formerly the Atlantic Avenue subway stop, and for which the Metropolitan Transportation Authority is being paid $4 million over 20 years. Others include antismoking advertisements run on the hose covers of fire trucks in Minneapolis, renaming of entire public transit systems, and in May 2012, the Chicago Transit Authority began their own process of seeking naming rights for 11 of their "L" train stations. The RFI will be available to any member of the public via the City's website. However, proposals will be directly submitted to Active for review and presentation to staff throughout the 60 days. If no, or an insufficient number of, proposals are received, staff may extend the time, revise the RFI further, or may return to Council for further direction. Environmental Status: Not applicable. Strategic Plan Goal: Improve long-term financial sustainability Attachment(s): Item 7. - 3 HB -136- ATTACHMENT #1 HB -137- Item 7. - 4 It On behalf of the City of Huntington Beach, I am pleased to present this Request for Information for Naming Rights & Partnership Opportunities within our community. The City has engaged Active Network to seek such partnerships, and, together, we have identified assets which we believe will be of great value to potential partners. Huntington Beach is the premier coastal destination in Orange County, attracting up to 16 million visitors each year. But we are more than just the sand and surf; those who choose to reside here enjoy a beautiful, safe environment in which to raise and educate a family; outstanding facilities and services; and a community in which businesses of every size and type can thrive. Despite the downturn in our nation's economy, the City has continued to attract new development, new businesses, and new housing opportunities, with more than 2,000 units being constructed along our Edinger Corridor, and more to come. Our city's prized assets represent an unprecedented opportunity for forward -thinking private sector organizations to take their exposure and community support to the next level through a naming rights partnership. Some assets, such as the Huntington Beach Pier & Pier Plaza, for example, receive year-round, worldwide recognition in nearly every possible medium, an attractive prospect to a partner seeking high-level exposure by associating their name with such a valuable asset. Those seeking exposure with a local or regional focus may find outstanding value by lending their name to prized community assets such as our libraries, nature center, community centers, pool, or Sports Complex, for example. Perhaps partners may also desire a variety of levels of exposure. The opportunities are open, and they are endless. Thank you for considering this opportunity. We hope you will enjoy envisioning how partnering with the City of Huntington Beach can benefit your organization and look forward to reviewing your proposal. Sincerely, Don Hansen Mayor HB -139- Item 7. - 6 • Pier & Pier Plaza 0 Beach Parking Lots • Sports Complex 0 Central & Branch Libraries • Shipley Nature Center • Community Centers o Oak View ® Central Park ® Rodgers Senior Center Item 7. - 7 HB -1.40- The City of Huntington Beach ("City"), working in partnership with Active Network, introduces a unique and unprecedented opportunity to become an exclusive Naming Rights Partner for selected City assets including the world famous Huntington Beach Pier & Pier Plaza. The City is specifically seeking focused and decisive proposals that take into consideration the type of assets and levels of exposure that such a Naming Rights program creates. The City is interested in engaging with a forward thinking organization that could play a major role in enhancing the coveted `Surf City USA' brand image as well as identifying incremental revenue sources for both the organization and the City. It is a rare occasion to be able to offer such an incredible media, marketing and branding package that has such far reaching appeal. The Pier, Pier Plaza, Sports Complex, Shipley Nature Center, and City Gym are a few of the premier assets that represent the glorified lifestyle of Southern California and Americana. 't is important to understand that the impact of such a high profile relationship with the City of Huntington Beach will need a creative visionary organization and a socially responsible organization that is committed to community values. The City of Huntington Beach is located in Southern California and is the home to approximately 200, 000 residents, and is a popular tourist destination receiving over 16 million visitors each year. The City owns and operates 3.5 miles of the West Coast's longest stretch of clean, uninterrupted beachfront. `Surf City' offers a variety of exceptional year round, recreational, cultural and entertainment opportunities. The City of Huntington Beach is home to the longest municipal pier of its type in California. Stretching more than 1, 800 feet into the Pacific Ocean, the pier is well known as a west coast surf mecca and is the focal point of Surf City USA'. HB -141- Item 7. - 8 For corporations, these naming rights and partnership opportunities can mean far more than just a traditional corporate sponsorship; these partnerships include a valuable positive association with the California lifestyle and culture. Corporations that are selected for these partnerships will not only benefit financially from providing exclusive products/services to the City's residents and visitors, but will also have the opportunity to create a cost-efficient method to advertise and market itself in the Southern California market and throughout America. Rights and entitlements could include product exclusivity, marketing, advertising, hospitality and promotional opportunities. The diverse and unique market demographic that is associated with the City of Huntington Beach is extremely valuable. The overall objective of the Naming Rights RFI is to identify business partners that will create a collaborative and creative partnership program that will enhance the organizations' marketing efforts and image while offering the City revenue to support City services provided to the public. It Sponsorship i Partnership FACTS & FIGURES Ili t r year, monologue, i dialogue. Tit, mpvie and c srciat ftshoots Civil War qqy ♦ . . The process for review of potential partner proposals will take into consideration a deep understanding of the City's brand/image and explore the maximum creative use of City's unique assets. The RFI solicitation of proposals is designed to attract competitive bids from organizations willing to invest in the Huntington Beach community while protecting and promoting the City's image and national reputation. The City of Huntington Beach reserves the right to select those for review that we believe present only the best of the opportunities. CRITERIA FOR SELECTION The City will evaluate prospective opportunities and these will be evaluated on the basis of criteria deemed most appropriate for a successful partnership. Those include but are not limited to: Financial structure of proposal Term of proposal r FYrli icivity rani iiramantc The City of Huntington 'Beach' is ��. creates. HB 143 Item 7. - 10 Please provide a short narrative (limited to 5 pages) clearly outlining your vision and approach for a creative Naming Rights public - private partnership using the City's key identified assets. Important points to include are terms of agreement, media exposure, added value of partnership, type of exclusivity necessary, and types of media, marketing applications and events needed to maximize the partnership. The proposal shall include the name, address, and telephone number of the person to whom correspondence should be directed. FINANCIAL PROPOSAL Respondents should outline their financial proposal including: payment plan, escalation factors in determining the value of the package, the exclusive services and accounts In creating Naming Rights proposals, corporations should generally consider the following attributes: A minimum term of 5 (five) years should be contemplated. Renewal options will also be considered. EXCLUSIVITY Respondent must outline the categories to be defined under this exclusive arrangement, if exclusivity is requested in Respondent's proposal. MARKETING INTIATIVES Respondent is to identify the City assets to be included in their proposal and a detailed description of the creative marketing strategy they will execute as a Naming Rights Partner. This should include unique benefits to the City. Respondent should outline how it will enhance the operations, maintenance and security of the assets with marketing support in the form of media, promotions and any community projects and expectations of any role they wish the City to play. FINANCIAL STABILITY Upon request respondent must submit sufficient documents demonstrating financial stability. Item 7. - 11 H B -144- PROSPECTIVE BENEFITS OF NAMING RIGHTS PARTNERSHIPS Everything possible will be done to assure that each facility is properly branded in the community, the region and throughout the country where acknowledgement or advertising for the facility occurs. Listed below are examples of possible benefits that could be made available to a Naming Rights Partner. A more comprehensive and detailed listing of benefits and business partnerships will be developed in conjunction with each Naming Rights Partner. These may include: ➢ Event advertising ➢ Media placement (television, radio, digital and print) ➢ Media correspondence ➢ Television broadcasts ➢ Press conferences — name/logo inclusion on podium and backdrop ➢ Facility items • Advertising/promotional literature • Name and venue on all event tickets • Website with links • Facility stationary • Facility related publications and collateral • Staff uniforms - jackets, uniform shirt, caps, etc. ➢ Exclusivity in the sponsorship area ➢ Associative Rights including the ability to utilize the facility's name and logo in your own advertising ➢ Designation Rights: "Official Product/Service" EXTERIOR MARKETING /ADVERTISING OPPORTUNITIES MAY INCLUDE: ➢ Inclusion in facility interior/exterior signage ➢ Exposure above main entrances ➢ Name and logo included on outdoor marquee or scoreboards ➢ Name and logo on traffic directional signage in the vicinity ➢ Opportunity to name street address "Company Boulevard" INTERIOR MARKETING/ADVERTISING OPPORUTNNTIES: ➢ To be determined per facility. DIGITAL MARKETING MAY INCLUDE: ➢ Name, logo and branding on City website ➢ Inclusion in electronic mailings to facility databases ➢ Inclusion in social media advertising campaigns HOSPITALITY ELEMENTS MAY INCLUDE: ➢ VIP seats to special and sporting events held at the Pier and Pier Plaza. ➢ VIP Parking PROMOTIONAL ELEMENTS MAY INCLUDE: ➢ Retail promotions ➢ On -Site giveaways ➢ Community programs ➢ Charity fundraisers ➢ Other special event sponsorships HB -145- Item 7. - 12 11619HREM The Naming Rights & Partnerships Opportunities RFI for the City of Huntington Beach is an exciting opportunity for organizations to participate and invest in one of Southern California's major attractions. The City, along with the Active Network, is exploring new and creative ways for qualified organizations to provide high quality, relevant and unique experiences for the millions of annual visitors that enjoy our parks, facilities, beaches, and weather. These Naming Rights Partnerships will offer unprecedented access for media, marketing and promotional opportunities that will be limited only by the imagination. All inquiries concerning the content of this RFI process should be directed to: Don Schulte ACTIVE Network Municipal Marketing 101 Main Street, Suite 260 Huntington Beach, CA 92648 Tel 714.374.3330 ext. 5011 Don,Schulte@A&ctfiiv,enetwork.com Item 7. - 13 HB -146-