Item 9CCITY OF
SOUTHLAKE
MEMORANDUM
September 12, 2012
To: Shana Yelverton, City Manager
From: Chris Tribble, Director of Community Services
Subject: Consider Approval of City Sponsorship Policy
Action
Requested: City Council approval of the City Sponsorship Policy
Background
Information: Interest in sponsorships is increasing as an extremely effective
method to boost visibility and enhance public sponsor recognition.
Corporate sponsorships for events and community programs have
been a successful tool for the Community Services Department in
assisting with offsetting City costs for events.
In June 2011 staff presented a Sponsorships White Paper to City
Council and discussed the need for a Sponsorship Policy at the
June 2011 Retreat where the Council directed staff to begin work
on the policy.
Having sponsorship success with the Stars & Stripes, Home for the
Holidays and Southlake Tailgate events, staff began researching
how other cities handle sponsorships not only for events, but also
for naming rights, title sponsorships, cash sponsorships, and in-
kind sponsorships to provide an additional revenue stream to
sustain and enhance City programs, events, services and facilities.
The City anticipates continued growth of sponsorship opportunities
as City programs and facilities are expanded. The City has received
interest from local, regional and national corporations, businesses,
civic groups, individuals, non - profit organizations and service clubs
interested in sponsorships in return for naming rights, title
sponsorships, cash sponsorships and in -kind sponsorships. These
types of sponsorships have the potential to provide a revenue
source to sustain and enhance the parks & recreation system,
community facilities, events, programs and services. To capture
and enhance sponsorship opportunities, the proposed City
Sponsorship Policy has been developed to provide specific
guidelines for developing and managing sponsorships.
City of Southlake Values:
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork
Shana Yelverton, City Manager
Meeting Date — September 18, 2012
Page 2 of 3
On May 1, 2012, staff presented an overview of the proposed City
Sponsorship Policy for feedback from the City Council. In addition,
staff has received feedback from the City Council- appointed
committee of Mayor Pro Tern Brandon Bledsoe, Deputy Mayor Pro
Tern Pamela Muller, and Council Member Carolyn Morris on the
proposed policy.
A copy of the proposed Policy is attached to this memo for your
review. An overview of specific provisions of the Policy will be
provided at the meeting.
Adoption of the City Sponsorship Policy will result in a
comprehensive guideline for the City to develop and manage
sponsorships for City parks, facilities, events, programs and
services.
Financial
Considerations: Approval of the City Sponsorship Policy has no financial impact on
the current FY 2012 Budget or the Proposed FY 2013 Budget.
Revenues generated by sponsorships are proposed to be
deposited into a City special revenue fund for sponsorships.
Allocation of sponsorship funds are proposed to be allocated during
the City's annual budget approval process by the City Council.
Strategic Link: This item is linked to the City's Strategy May related to the Focus
Areas of Quality Development, Partnerships and Volunteerism, and
Performance Management and Service Delivery. The item also
delivers on the Corporate Objectives to Promote Opportunities for
Partnerships and Volunteer Involvement, to Collaborate with Select
Partners to Implement Service Solutions, and to Adhere to
Financial Management Principles and Budget.
Citizen Input/
Board Review: June 2011
June 2011 Retreat
May — Aug 2012
September 18, 2012
Legal Review: City Attorney to revie
Sponsorship White Paper
City Council Discussion & Feedback
City Council Work Session and City
Council Appointed Work Group
City Council Consideration for Adoption
, w prior to consideration by City Council
Alternatives: City Council alternatives may include the following:
• Approve Policy as presented
• Approve Policy with input as desired
City of Southlake Values:
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork
Shana Yelverton, City Manager
Meeting Date — September 18, 2012
Page 3 of 3
• Decision not to approve the Policy
Supporting
Documents: Proposed City Sponsorship Policy
Recommendation: City Council approval of the City Sponsorship Policy
City of Southlake Values:
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork
City of Southlake
Policies and Procedures
Policy: Sponsorship Policy
Source: City Council
Category: Community Services Department
Purpose
The purpose of the policy is to provide specific guidelines for developing and managing
sponsorships for City parks, facilities, events, programs and services.
Policv Statement
It is the policy of the Southlake Community Services Department to actively pursue
sponsorships for City parks, facilities, programs, services, and events from individuals,
foundations, corporations, nonprofit organizations, service clubs, and other entities in order to
enhance and sustain Southlake's parks and recreation system, community facilities, community
programs, community services, and community events. All such sponsorships shall comply with
the guidelines established by this policy. The City Council, at its discretion, may grant variances
to this policy.
In reciprocation for the sponsorship, it is the policy of the Southlake Community Services
Department to provide sponsors appropriate acknowledgement of their contributions. All such
recognition must adhere to the aesthetic values established within the Southlake 2030 Parks,
Recreation & Open Space / Community Facilities Master Plan, and by the Southlake City
Council.
III. Authority
The City will maintain authority, management, operation and control over the planning and
execution of sponsorship activities.
IV. Community Services Department Responsibility
The Community Services Department is responsible for marketing City sponsorship
opportunities, and for soliciting, negotiating and administering all sponsorships and agreements.
Staff approving sponsorship proposals must ensure that all relevant by -laws and policies are
adhered to, appropriate consultation and approval authorities are respected, and where
applicable that insurance, indemnification, ethical scans, business good standing status, and
permits have been obtained. The Department shall also maintain a log of all sponsorship
contributions, as per the guidelines established by the City's Finance Director, and issue a
written acknowledgement of the agreement to each sponsor.
V. Guidelines for Establishing Sponsorship Relationships
All proposed sponsorship relationships will be considered on an individual, case -by -case basis,
and should be consistent with the City's Mission, Values and /or Strategic Plan.
A. The following criterion form the basis of the City's consideration when establishing
sponsorship relationships:
1. Is the mission of the sponsor organization consistent with the City's Mission, Values
and /or Strategic Plan?
2. Are the products, services and marketing goals of the potential sponsor compatible
with the City's Mission, Values, policies and ordinances?
3. Does the sponsorship enhance the City's community facilities, community programs,
community events, community services, and /or the parks and recreation system?
4. Are the tangible and intangible benefits balanced for both the sponsor and the City?
5. Are the conditions of the sponsorship consistent with the standards, aesthetic values,
and visual integrity of City property and expectations of users?
6. Does the sponsorship commit the City to additional responsibilities, legal liability,
operations and maintenance costs?
7. Does the sponsorship create a conflict of interest for the City?
8. Does the sponsorship in any way invoke future consideration, influence, or perceive
to influence the day -to -day operations of the City?
9. Is the sponsorship opportunity appropriate to the target audience?
10. Will the results of the sponsorship relationship deliver a positive and desirable image
for the City?
B. Additional considerations when establishing sponsorship relationships include:
1. Agreements shall not limit the City's ability to seek other sponsors.
2. The sponsorship cannot be made conditional on the City's performance
3. The evaluation of the potential sponsor shall include, but not be limited to the
individual's or the organization's: values and principles; products and services
offered; record of environmental stewardship and social responsibility; rationale for
its interest in partnering with the City; expectations; and ability, timeliness, and
readiness to enter into an agreement.
4. Ineligible sponsorships include, but are not limited to any potential sponsor whose
primary products or services are substantially derived from the sale of alcohol, drugs,
tobacco, gambling, firearms, or sexually explicit or inappropriate materials.
5. The City will not solicit nor accept sponsorship from individuals, foundations,
corporations, nonprofit organizations, service clubs, or other entities whose
reputation could prove detrimental to the city's public image. The City will not allow
advertising, either directly or through third party arrangements, which 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 offense. The City may, at its discretion, bring any proposals to City
Council for their approval even if they do not meet the guidelines of this Policy. The
City Council may also consider any proposal or direct staff to pursue any
opportunities for sponsorship that do not strictly adhere to this Policy.
C. The City retains the right to accept or reject any sponsorship submitted for approval. If the
proposal is rejected, a notification of refusal will be sent outlining the reasons.
VI. Types of Sponsorships
Sponsorships are negotiated and tailored to each event, program, facility, or service. A
hierarchy of benefits is associated with the different types of sponsorships, often providing more
branding and visibility with the higher levels of support. Each type of sponsorship will have
specific levels detailing the value of the sponsorship.
A. Naming Rights Sponsorship
A type of sponsorship in which an individual, foundation, corporation, nonprofit organization,
service club, or other entity purchases the exclusive right to name an asset, or venue (i.e.,
athletic field, sports complex, parks and recreation amenity, or community facility) for a fixed
period of time. Usually naming rights are considered in a commercial context, in which the
naming right is sold or exchanged for significant cash and /or other considerations under a
long -term arrangement. This arrangement is usually documented in a written agreement
signed by the interested parties and has a specified end date to the contractual obligations.
The following specific guidelines shall be applied when entering into a naming rights
agreement for city- owned, city- operated assets, such as an athletic field, athletic complex,
parks and recreation amenity, playground, pavilion, gymnasium or community facility.
The proposed naming rights purchaser must support the image, values and
corporate objectives of the City of Southlake and the Southlake community.
2. The City shall not relinquish to the purchaser any aspect of the City's right to manage
and control the asset or facility.
3. Signage, branding, publicity and advertising shall conform to all applicable City
policies, ordinances and plans.
4. Staff will forward a report with recommendations to the City Council regarding the
naming rights opportunity.
5. The name should advise the purpose of the facility.
6. The name should consider historical and community significance.
7. The sponsor shall have ongoing responsibilities to adhere to the standards set forth
herein and the agreement shall have termination provisions in the event of the failure
to comply.
8. Costs for promotion of the renaming of a facility shall be incorporated into the naming
rights agreement and not the City's annual operating budget.
9. Names that are similar to existing parks, properties or facilities within the City should
not be considered in order to minimize confusion.
B. Events, Programs and Services Sponsorships
1. Title Sponsorship
A type of sponsorship in which an individual, foundation, corporation, nonprofit
organization, service club, or other entity purchases the exclusive right to be named
as the Title Sponsor of an event, program or service.
The following guidelines shall be applied when entering into a title sponsorship
agreement for City events, programs and services:
i. Recognition as Title Sponsor for a specific event, program or service
ii. Mention in media releases and promotional material as Title Sponsor for the
event, program or service
iii. Title Sponsor signage /display at the event or program location for a period
not to exceed the length of the event
iv. Recognition as Title Sponsor on event/program website
V. Category /product exclusivity for the event, program or service
vi. Other possible benefits as negotiated
2. Cash Sponsorship
A type of sponsorship in which an individual, foundation, corporation, nonprofit
organization, service club, or other entity provides cash in support of a City event,
program or service.
The following guidelines shall be applied when entering into a cash sponsorship
agreement for City events, programs and services:
i. Recognition as a Sponsor for a specific event, program or service
ii. Appropriate mention in media releases and promotional material as a
Sponsor for the event, program or service
iii. Appropriate Sponsor signage /display at the event or program location for a
period not to exceed the length of the event
iv. Appropriate recognition on event /program website as a Sponsor for the
event, program or service
V. Other possible benefits as negotiated
3. In -Kind Sponsorship
A type of sponsorship in which an individual, foundation, corporation, nonprofit
organization, service club or other entity provides a good or service in exchange for
sponsorship recognition of a City event, program or service. There is no monetary
exchange within this agreement. Firms agree to provide a good or service in
exchange for sponsorship recognition.
The following guidelines shall be applied when entering into an in -kind sponsorship
agreement for City events, programs and services:
Recognition as a Sponsor for a specific event, program or service
ii. Appropriate mention in media releases and promotional material as a
Sponsor for the event, program or service
iii. Appropriate Sponsor signage /display at the event or program location for a
period not to exceed the length of the event
iv. Appropriate recognition on event /program website as a Sponsor for the
event, program or service
V. Other possible benefits as negotiated
VII. Procedures for Establishing Sponsorship Relationships
Sponsorship relationships are established primarily through initiation by the City informally or
formally via a Request for Sponsors process, or through initiation by a potential sponsor.
Interested sponsors are encouraged to contact the Community Services Department at any time
to discuss potential sponsorship opportunities. A completed Sponsorship application must be
submitted along with a letter detailing the specifics of the proposed sponsorship.
Additionally, sponsorship relationships for a specific park, facility, project, program, service or
event may be initiated by organizations that the City partners with via Community Services
Agreements or Facilities Utilization Agreements; however, they must be turned over to the City
for processing and negotiating once initiated. At no time shall the organization speak on behalf
of, or negotiate on behalf of the City. A 10% finder's fee may be given to the organization as
compensation for their part in initiating the relationship.
VIII. Approvals
A. The City Council will approve all sponsorships related to:
1. Sponsorships that exceed $50,000
2. Naming Rights
3. Agreements that exceed three (3) years
B. The City Manager will approve all sponsorships related to:
1. Sponsorships valued between $5,001 - $49,999
2. Community Facilities
3. Capital Projects
4. Service Delivery
C. The Director of Community Services will approve all sponsorships related to:
1. Sponsorships up to $5,000
2. Community Events
3. Community Programs
4. Parks and Recreation System
D. If the application is approved, the applicant will be contacted by the Director of Community
Services, or his /her designee, to confirm the terms of sponsorship. The Community
Services Department will work closely with successful applicants to ensure the sponsorship
payment process progresses smoothly.
E. A Letter of Understanding will be sent to the successful applicant setting out agreed terms,
and the process of fulfilling the sponsorship agreement will begin.
IX. Sponsorship Payment
A. Long -Term Agreements ( >1 Year):
1. The City requires a 50% deposit on all long -term agreements. This deposit must be
submitted with the signed Sponsorship Agreement.
2. The remaining 50% for year one payment should be paid within thirty (30) days of
execution of the agreement.
3. For each year after, 100% of the annual payment should be received on the
anniversary date of the establishment of the agreement.
B. Short Term Agreements ( <1 Year):
1. The City requires full payment with the submittal of the Sponsorship Agreement.
X. Revenue Allocation
All revenues received from Naming Rights Sponsorships will be deposited into the City's special
revenue fund for sponsorships. The City Council, as part of the City's annual budget process
will determine how funds collected for Naming Rights sponsorships will be allocated.
All revenues received from Events, Programs and Services Sponsorships will be deposited into
the City's special revenue fund for sponsorships. The Community Services Department will
utilize funds collected for Events, Programs and Services Sponsorships to offset City Events,
Programs and Services expenses as they occur.
XI. Recognition of Sponsors
Sponsorship recognition messages may identify the sponsor but should not promote or endorse
the individual, foundation, corporation, nonprofit organization, service club or its products or
services. Statements shall not advocate, contain price information or an indication of
associated savings or value, request a response or contain comparative or qualitative
descriptions of products, services or organizations. Ordinarily, only the following content will be
deemed appropriate:
A. Legally recognized name of the sponsor
B. Sponsor's organizational logo and slogan if it identifies rather than promotes the
organization or its products and services
C. Sponsor's product or service line, described in brief, generic, objective terms - generally,
only one product or service line may be identified
D. Brief contact information for the sponsor's organization, such as phone number, address or
website, and must be stated in a manner that avoids an implication of urging the reader to
action
The City will not make any statements that directly or indirectly advocate or endorse a sponsor's
organization, products or services.
XI 1. Termination of Sponsorships
A. The City of Southlake reserves the right to accept or reject any sponsorship proposal
submitted for approval, and while every intention is to accept and fulfill all sponsorship
agreements, the City reserves the right not to fulfill the agreement if found to be in the best
interests of the City.
B. The Sponsor reserves the right to withdraw the sponsorship proposal at any time during the
approval process.
C. The Sponsor may also withdraw from the agreement within thirty (30) days of execution of
the agreement. However, no refund will be given on any funds received by the City prior to
receipt of the notification of withdrawal.