HomeMy WebLinkAboutItem H March 8, 1999
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Nancy L. Beard, Director of Parks, Recreation &
Community Services
SUBJECT: Review of the Orange Coast Marketing Coalition Agreement
BACKROUND:
In August of 1997, City Council approved an agreement with the Orange Coast Marketing
Coalition allowing the City to participate in a joint marketing venture developed to raise
additional revenue and to offset operating costs.
Prior to this agreement, the City benefited from limited sponsorships including the
lifeguards' use of wave runners donated by Long Beach Yamaha and Seedoo. Due to
limited staff resources and lack of effective networking, it was not known whether
additional opportunities of benefit to the city may exist. The Orange County Marketing
Coalition is made up of all the Orange County beach Cities, including the State and
County managed beaches. The benefits of the contract negotiations deal specifically with
the beach locations. Together all the Orange County entities provide a greater potential
for marketing opportunities. By allowing staff to participate in the Orange Coast
Marketing Coalition, the Seal Beach City Council retained discretion to consider, on a
case by case basis whether it wishes to participate in any or all proposals offered to the
City.
Two agreements have been reached at this time. One agreement is with Chevrolet. In
exchange for being known as the "Official Marine Safety Vehicle Sponsor for the Orange
Coast Beaches", the City of Seal Beach received five lifeguard vehicles. The agreement
term is for two years with a two-year extension. The value to the City in the first two
years is $38,000. If the City accepts the two-year extension, keeping the vehicles for the
four-year period, the savings amounts to $78,720.
The second agreement was for the beach area trash receptacles. The city received 125
cans valued at $35.00 new- net worth $4,375. The receptacles are sponsored by the
Adopt a Highway Maintenance Cooperation. In addition to the donation of the cans the
City receives a payment in the first year of the contract of$2,000. Total value to the City
in the first year is $6,373.
Each of the trashcans advertising artwork is reviewed by the City Council prior to their
being placed on the beach. The current advertiser, the LA TIMES, was reviewed by
Council as were the two previous advertisers, Mountain Dew and Gotcha. //
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Orange County Marketing Coalition
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However, with the Gotcha and Mountain Dew ads, Council and public were able to view
actual samples displayed in Council Chambers. With the Los Angeles Times campaign,
only black photocopies on 8 1/2 x 11 were provided. Additionally, the ad content was not
fully disclosed, as the black letters and numbers for subscription services did not appear.
City Council will, in the future, have the benefit of seeing actual refuse can samples.
As per the agreement, Council may at their discretion refuse an advertisement which is
injurious or harmful to its business, its reputation or public image or prone to impair the
confidence of patrons of Orange Coast Beaches. If that situation takes place the
contractor, Adopt a Highway Cooperation, has the right to meet with the City to resolve
any disagreement. The first year term ends July 1, 1999.
OPTIONS:
1) Direct staff to ensure actual refuse can samples, with proposed advertising, be
displayed prior to consideration of requests. Allow current ad contact to run out.
2) Refund revenues received and return refuse containers immediately.
3) Request Adopt-A-Highway cooperation for Seal Beach advertiser's approval to
remove ad material prior to completion of contract period. In the event this fails, option 1
or 2 above is taken.
FISCAL IMPACT:
There is no fiscal impact to the current budget. The value to the city in this current fiscal
year as a result of the trash can advertising is $6,373. The value to the City with the
vehicle contract is $78,872 over the next four years.
By Nancy L. Beard, Director
Parks, Recreation& Community Services
NOTED • I APPROVED:
Keith ' . Till, City Ma' ager