Item 4JM E M O R A N D U M
June 12, 2018
To: Shana Yelverton, City Manager
From: Alison Ortowski, Assistant City Manager
Subject: Item 4J: Approve contract spending with Cubic Creative, Inc. in
an amount over $50,000 but not to exceed $78,500.
Action
Requested: Approve contract spending with Cubic Creative, Inc. in an
amount over $50,000 but not to exceed $78,500.
Background
Information: The City currently contracts with Cubic Creative to provide
digital advertising management and related creative services
for our tourism marketing efforts. Under this contract, Cubic
creates and places digital and print advertising targeted to
the visitor audience. The purpose of this item is to expand
this service to cover marketing services related to the
opening of Champions Club at the Marq Southlake.
Under this expanded service, Cubic would create and
implement a digital and print media campaign that would
target Southlake residents and business owners. The goal
would be to drive pre-sales of Champions Club
memberships and promote facility brand awareness. Media
placements would be primarily focused on digital ads using
geographic, demographic and behavioral targeting. Once
this additional spending is authorized, staff will work with
Cubic to identify and approve specific media placements.
Financial
Considerations: Currently, the City contracts with Cubic Creative for $50,000
budgeted out of the Hotel Occupancy Tax Fund. This
request is to allow expenditures of $28,500 that has been
budgeted in the FY 2018 Community Enhancement and
Development Corporation (CEDC) for marketing purposes.
Strategic Link: C3 Provide attractive and unique spaces for the enjoyment
of personal interests
Citizen Input/
Board Review: The allocation of marketing funds was recommended for
funding to the City Council by the CEDC Board in the FY
2018 CEDC Champions Club budget.
Legal Review: N/A
Honorable Mayor and City Council
Item 4J: Approve contract spending with Cubic Creative, Inc. in an amount over
$50,000 but not to exceed $78,500.
Page 2 of 2
Alternatives: Staff creates advertising and digital placements.
Supporting
Documents: Cubic Creative Southlake Champions Club: Media,
Reporting and Creative Execution & Account Service Quote
Staff
Recommendation: Approve contract spending with Cubic Creative, Inc. in an
amount over $50,000 but not to exceed $78,500.
Southlake Champions Club | Media, Reporting,
Creative Execution & Account Service
Prepared For
Alison Ortowski
City of Southlake
Created By
Account Service Team
Cubic, Inc.
(918) 587-7888
accountservice@cubiccreative.com
http://www.cubiccreative.com
Quote
Services
Name/Description Price Qty Subtotal
Champions Club | Media, Reporting, Creative
Execution & Account Service
$13,500.00 /
Fixed
$13,500.00
Ongoing services of media buying, management, reporting and account
management, as well as creative execution on client approved media plan.
Services include:
- Copywriting and creative execution to fulfill media buy
- Ongoing strategy and account management
- Planning, negotiation, trafficking, and reporting of media
Two rounds of client revisions to each deliverable are included. Hard costs such as
printing, stock photography, media buy, etc. are not included. Deliverables are
subject to change based on client needs and approved media plan.
Subtotal:$13,500.00
Products
Name/Description Price Qty Subtotal
Proposed Champions Club Media Budget $15,000.00 1
$15,000.00
Goal: Drive pre-sales of Champions Club Memberships
Primary target audience: Southlake residents and business owners
Timeframe: July - Sept 2018
Additional details:
- All ads will drive to experiencechampionsclub.com
- Success will be measured by impressions served, CTR, email opens, and
engagement
- Media placements will be primarily focused on digital ads using geographic,
demographic, and behavioral targeting. Specific media placements will be identified
in planning and subject to client approval.
Subtotal:$15,000.00
Total cost:$28,500.00
Standard Terms
CUBIC STANDARD TERMS
Estimate Expiration - Cubic will honor this estimated price for up to 90 days from the date of
this quote. Cubic reserves the right to adjust the pricing and scope of work if the quote is
approved after 90 days. If the price is adjusted or scope modified, the client will have 15 days to
review and approve the adjusted quote.
Estimates - If this document is used for an estimate or assignment confirmation, the fees and
expenses shown are estimates only. Final fees and expenses shall be shown when invoice is
rendered. The client’s approval shall be obtained for any increases in fees or expenses that
exceed the original estimate by 10% or more.
Payment Schedule - Payment is due as each milestone is delivered to the client. A timeline and
payment schedule, if available, is included in Appendix B. Invoices are normally sent and dated
the last day of the month that the milestone is delivered. Invoices are "Due on Receipt” and must
be paid within thirty (30) days of the date of the invoice unless other arrangements have been
made. Interest on past due accounts will accrue at the rate of 18% annually. We accept VISA,
MasterCard, Discover Card, and AMEX. The following convenience fees will apply: 3% for VISA,
MasterCard, Discover Card and 3.5% for AMEX. The grant of any license or right of copyright is
conditioned on receipt of full payment.
Media Billing - Due to varying media vendor payment terms and in order to take advantage of
all available cash discounts, rebates or vendor add-ons, Cubic will invoice clients based on the
following schedule for contracted and pre-planned media. The client agrees that all media will
be invoiced separately from all other Cubic services.
Initial Invoice - When new schedules are started, the initial bill will include costs
associated with the current month’s media runs plus the next two months. For example, if
in January the client agrees to a media plan that starts in January, Cubic will immediately
send an invoice to the client that will cover costs for the media plan in January, February
and March. This only applies to the initial billing. However, if in January the client agrees
to a media plan that doesn’t start until March, Cubic will send an invoice at the end of
January to the client that will cover costs for March media only.
Follow-on Invoices - After the initial invoice has been sent, Cubic will send invoices at the
end of each month that covers contracted and pre-planned media from the approved
media plan for the 2nd month following the month of the invoice. For example, the March
31st invoice will cover costs for May media only from the approved media plan. The April
30th invoice will cover costs for June media, and so on, until the approved media plan is
complete.
Unplanned Media Invoices - If the client requests a new media placement that will run
during the current or following month, Cubic will immediately send an invoice to cover the
costs of the unplanned media placement. Payment will be due upon receipt.
Special Situations - There are some situations and vendor requirements that may require
client payment prior to placing media with a vendor. In these cases, Cubic reserves the
right to request payment from the client prior to scheduling the media run. In these cases,
Cubic will not schedule the media until payment is received.
This policy allows for Cubic and the client to stay in good standing with our media vendors.
Otherwise, late payment fees and/or cancellation fees will be the responsibility of the client.
Third-party Fees - Quoted prices in this scope of work include all of Cubic's services plus any
third-party costs indicated in the quote. While we do not anticipate any costs outside those in
the quote, items not included are photography (stock or custom), travel, photocopies, file
storage/devices, express mail, other courier services, third-party fees, etc., unless specifically
indicated as a line item in this quote. All work outside of this scope will require an approved
estimate before work begins.
Expenses - The client shall reimburse Cubic for pre-approved expenses arising from this
assignment, including the payment of any sales taxes due on this assignment.
Stock Photography and Video - In cases where the client does not have access to original
photography or video or is not contracted with Cubic for photography or video services, Cubic
may use stock photography or video as placeholders in order to present design concepts. If the
client decides to use the stock photography in a finished work, whether online or offline, the
client agrees to pay Cubic $75 for each image used in digital final files and $150 for printed final
files. Stock video costs will be quoted separately. Fees for these images and/or videos will be in
addition to the fees in this quote.
Fonts - Cubic is licensed to use a number of different fonts in its completed works. However,
Cubic cannot transfer the license of these fonts to its clients. If the client would like to use any
font that was used in a finished work, the client agrees to purchase the font for its own use. The
client may purchase the font directly or Cubic may purchase the font and bill for it separately.
Changes - Any proposed change(s) to this scope of services will result in a new quote. The
specifications of the changes will include: Any new implementation milestones and/or delivery
dates resulting from such proposed change(s); and Any cost increase or decrease (if any)
resulting from such proposed change(s). Any change(s) contained in the new quote shall not be
binding on the parties until approved in writing by both parties. Once approved, the change(s)
shall be considered incorporated into the scope of services under this agreement and the client
shall be responsible for making additional payments for those approved change(s). However, no
additional payment shall be made for changes required to conform to the original assignment
description.
Ownership and Return of Artwork - Upon the final release and full payment, the client retains
all rights, title, interest, and ownership of all approved final artwork, in any media, including but
not limited to digital files. Stock image rights only apply to this project designed and developed
by Cubic and are not transferrable to other media or future versions.
Delays & Holds - If the client delays the project timeline by more than 2 business days, Cubic
reserves the right to modify the timeline of deliverables, but will employ its best efforts to stick
with the original timelines. Due to other client timelines, modifications to timelines, if necessary,
may not be directly related to the specific number of days of the client delay. In these cases,
Cubic will notify the client of the new timeline.
If the client places a project on hold, Cubic will invoice for the work completed based on the
deliverables already made plus the percentage of work completed on the current deliverable. If
the client opts to restart the project, Cubic will deliver an updated timeline to the client with a
proposed restart date.
Termination - Notwithstanding the provisions regarding the term of this agreement set forth
herein, and in addition to the parties' rights of termination specifically provided elsewhere in this
agreement, the following shall apply:
The client may terminate this agreement upon thirty (30) days' prior written notice to
Cubic; provided, however, upon any such termination the client must pay Cubic all
amounts accrued and owing, through the date of such termination, under the terminated
agreement plus a cancellation fee of 10% of the total cost associated with this quote.
Cubic will immediately invoice for the work completed based on the deliverables already
made plus the percentage of work completed on the current deliverable plus a cancellation
fee equal to 10% of the total cost associated with this quote. In the event of the
termination of the agreement as allowed hereunder, any fees to be paid under the
agreement shall be prorated for the applicable percentage of work completed by Cubic
prior to termination or paid at such rate as specified in the agreement, prorated through
the date of termination; and
In the event that one party breaches any material obligation under this agreement, the
other party may terminate this agreement by providing thirty (30) days' written notice of
termination to the breaching party. The right of Cubic and the client to terminate in any
such case shall be in addition to any other rights and remedies each party may have at law
or in equity. Any subsequent breach shall be subject to immediate termination, to be
effective upon written notice; and
In the event that the client requests to cancel a media plan, Cubic will make every attempt
to cancel the contracted media runs with the media vendors. However, in many cases,
contracted media placements cannot be cancelled per vendor agreements. In these cases,
the client will be responsible to pay all invoices related to media placements that cannot
be cancelled regardless of the date of any such placement.
Ownership of all copyrights and any original artwork not paid for as a result of the
termination shall be retained by Cubic.
Disputes & Default of Payment - The parties shall attempt to resolve all disputes arising out of
this quote in a spirit of cooperation and with a problem-solving mindset, without formal
proceedings. Any dispute which cannot be so resolved, shall be subject to binding arbitration
upon the written demand of either party pursuant to the Commercial Arbitration Rules of the
American Arbitration Association. Arbitration shall take place in Tulsa, OK. Should any legal
action permissible under this quote be instituted to enforce the terms and conditions of this
quote, in particular the right to collect money due on unpaid invoices, the prevailing party shall
be entitled to recover reasonable attorney's fees and expenses incurred at both the trial and
appellate levels.
Governing Law - The interpretation and enforcement of this scope of services shall be governed
according to the laws of the State of Oklahoma and the federal laws of the United States of
America applicable therein. The client hereby consents to the District Court for Tulsa County,
Oklahoma as having exclusive jurisdiction for any action arising out of or relating to the client's
use of Cubic's services. In any such action, the prevailing party will be entitled to recover all legal
expenses incurred in connection with the action, including but not limited to its costs, both
taxable and non-taxable, and reasonable attorney's fees. These terms will survive any
termination of this quote.
Signed by:
City of Southlake Date