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Item 9CTitle of Presentation Technical Services Chris Tribble 733 City Slides Microsoft Office PowerPoint On-screen Show (4:3) City of Southlake September 18, 2012 Approve Sponsorship Policy Purpose Policy Background Review of Proposed Sponsorship Policy City Council Consideration Current Potential Sponsorship Considerations Sponsorship Success w/Stars & Stripes and Tailgate Current significant interest in sponsorships in return for Naming Rights Title Sponsorships Cash Sponsorships In-Kind Sponsorships Potential revenue stream to sustain & enhance Parks & Recreation System Community Facilities Events & Programs Services Sponsorship Policy Background Sponsorships White Paper June 2011 Council discussion June Retreat Council Work Session May 2012 Council Work Group July/August(Bledsoe, Muller & Morris) I. Purpose The purpose of the policy is to provide specific guidelines for developing and managing sponsorships for City parks, facilities, events, programs and services. II. Policy Statement Establishes policy for City to actively pursue sponsorships to enhance and sustain Southlake’s Parks & Recreation System Community Facilities Programs Events Services By developing sponsor relationships Individuals Foundations Corporations Non-profit organizations Service clubs Other entities II. Policy Statement Establishes that in reciprocation for the Sponsorship, a Sponsor will be provided with appropriate acknowledgment of their contribution All such recognition must adhere to City’s aesthetic values established within the Southlake 2030 Parks, Recreation & Open Space / Community Facilities Master Plan and by the City Council III. Authority Establishes that the City will maintain authority, operation and control over the planning and execution of all sponsorship activities IV. CS Dept Responsibility Establishes responsibilities of the CS Dept for marketing sponsorship opportunities, and for soliciting, negotiating and administering all sponsorships and agreements V. Guidelines for Establishing Sponsorship Relationships All proposed sponsorship relationships will be considered on an individual, case-by-case basis Details how potential sponsorships will be evaluated: Is the mission of the sponsor organization consistent w/the City’s Mission, Values and/or Strategy Map? Are the products, services and marketing goals of the potential sponsor compatible with the City’s Mission, Values, Comprehensive Plans, policies and ordinances? Does the sponsorship enhance the City’s community facilities, parks & recreation system, programs, events and services? Are the tangible and intangible benefits balanced for both the City and the sponsor? V. Guidelines for Establishing Sponsorship Relationships Are the conditions consistent w/standards, aesthetic values, and visual integrity of City property and the expectations of the users? Does it commit the City to additional operations & maintenance costs and responsibilities, or legal liability? Does it create a conflict of interest for the City? Does it in any way invoke future consideration, influence, or perceive to influence day-to-day operations of the City? Is the sponsorship appropriate to the target audience? Will the results of the relationship deliver a positive and desirable outcome and image for the City? V. Guidelines for Establishing Sponsorship Relationships Additional considerations: Agreement shall not limit City’s ability to seek other sponsors Sponsorship cannot be made conditional on the City’s performance Ineligible sponsors include those whose primary products or services are substantially derived from the sale of alcohol, drugs, tobacco, gambling, firearms, or inappropriate materials City will not solicit nor accept a sponsorship that could prove detrimental to the City’s public image V. Guidelines for Establishing Sponsorship Relationships Additional considerations: The evaluation of the potential sponsor shall include, but not be limited to the sponsor’s: Values and principles Products and services offered Record of environmental stewardship Social responsibility Rationale for it’s interest in partnering w/the City Expectations Ability and readiness to enter into agreement The City reserves the right to accept or reject any sponsorship submitted for approval VI. Types of Sponsorships Naming Rights Exclusive right to name a City-owned, City-operated asset Athletic Field Athletic Complex Parks and Recreation Amenity (ex. pavilion, playground) Community Facility Component of a Community Facility (ex. gymnasium) Involves significant cash and/or other considerations under a long-term agreement Sponsor must support image, values and corporate objectives of the City and community VI. Types of Sponsorships Naming Rights City shall not relinquish right to manage/control asset Signage, branding and publicity shall conform to applicable policies, ordinances and plans Sponsor shall have ongoing responsibilities to adhere to the standards set forth in agreement, and the agreement shall have termination provisions in the event of the failure to comply Costs for promotion of the renaming of the facility shall be incorporated into the agreement City Council will determine and approve name of asset VI. Types of Sponsorships Events, Programs & Services Sponsorships 1. Title Sponsorships Sponsor purchases the exclusive right to be named as the Title Sponsor for a specific event, program or service Mentioned as Title Sponsor in media releases, promotional materials and on event/program website Will receive category/product exclusivity Appropriate signage and display for duration of the event, program, or service VI. Types of Sponsorships Events, Programs & Services Sponsorships 2. Cash Sponsorships Sponsor provides cash for a specific event, program or service in exchange for Sponsor recognition Mentioned as Sponsor in in media releases, promotional materials and on event/program website Appropriate signage and display for duration of the event, program, or service VI. Types of Sponsorships Events, Programs & Services Sponsorships 3. In-Kind Sponsorships Sponsor provides a good or service for a specific event, program or service in exchange for Sponsor recognition No monetary exchange Mentioned as Sponsor in media releases, promotional materials and on event/program website Appropriate signage and display for duration of the event, program, or service VII. Procedures for Establishing Sponsorship Relationships Sponsorships are established primarily through: Initiation by the City Initiation by a Potential Sponsor Interested sponsors are encouraged to contact CS Dept Complete a sponsorship application Submit details of proposed sponsorship in writing for evaluation VII. Procedures for Establishing Sponsorship Relationships Additionally, organizations that the City partners with through Community Services Agreements or Facilities Utilization Agreements may also initiate potential sponsorship opportunities Once initiated, the potential sponsorship opportunity must be turned over to the City to process and negotiate At no time shall another organization speak on behalf of, or negotiate on behalf of the City Organizations initiating an approved sponsorship may receive a finder’s fee (10%) VIII. Approvals City Council will approve all sponsorships related to: Sponsorships that exceed $50,000; or Naming Rights; or Agreements that exceed (3) years in length of term. City Manager will approve all sponsorships related to: Sponsorships valued between $5,001 - $49,999; or Service Delivery; provided that City Council approval is not required. Community Services Director will approve sponsorships related to: Sponsorships up to $5,000; and Community Events and Programs; provided that City Manager nor City Manager approval is not required. IX. Sponsorship Payment Long-Term Agreements (>1 year) City requires 50% deposit of the 1st annual payment on all long-term agreements Deposit must be submitted with signed agreement Remaining 50% for Year 1 is due within 30 days of execution of agreement For each year after 100% of annual payment is due on anniversary date of agreement Short-Term Agreements (<1 year) Full payment must be submitted with signed agreement X. Revenue Allocation Naming Rights Sponsor Revenues: 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 annual budget process, will determine how the funds collected will be allocated Events, Programs & Services Revenues: All revenues received from Events, Programs & Services Sponsorships will be deposited into the City’s special revenue fund for Sponsorships The Community Services Department will utilize funds collected to offset City Events, Programs & Services expenses as they occur XI. Sponsor Recognition Recognition should identify and acknowledge the Sponsor Legally recognized name of the Sponsor Sponsor’s organizational logo and slogan if it identifies rather than promotes the organization or its products or services Sponsor’s product or service line, described in brief, generic, objective terms Brief contact information such as phone, address and/or website Shall not promote or endorse the Sponsor or it’s products or services Shall not directly or indirectly advocate or endorse the Sponsor’s organization, products or services XII. Termination of Sponsorships City reserves the right to accept or reject any sponsorship proposal submitted for approval City reserves the right to terminate the agreement at any time if, in the City’s sole discretion, continuation of the sponsorship is determined not to be in the best interests of the City Sponsor reserves the right to withdraw the proposal at any time during approval process Sponsor may also withdraw from the agreement within 30 days of execution of agreement. However, no refund will be given on any funds received by the City prior to receipt of the notification of withdrawal. Questions?