10.1. SR 11-04-2019 X11 +Request for Action
River
To Item Number
Mayor and City Council 10.1
Agenda Section Meeting Date Prepared by
Work Session November 4, 2019 Michael Hecker, Parks and Recreation Director
Item Description Reviewed by
Multipurpose Facility Advertising and Naming Cal Portner, City Administrator
Rights Consultant Contracts Reviewed by
Action Requested
Review and discussion of a proposal for sponsorship program development of the multipurpose facility.
Background/Discussion
At the October 21 work session, City Council discussed professional services naming rights for the
multipurpose facility. Council direction was for staff to create a scope of services for a consultant to
provide professional insights and a plan to pursue advertising and naming rights.
Staff provided John Staley an outline for scope of work. Mr. Staley was able to provide a Phase I scope of
work for his services to identify sponsorship assets of the parks and recreation department. This includes
evaluating those assets,identifying and evaluating packaging strategies and then developing a sponsor
proposal format and forming a marketing strategy. A Phase II proposal is to guide the sales of the
sponsorship assets that were identified in Phase I of the sponsorship program development.
Staff is recommending proceeding with the consulting services Phase I proposal from Staley Consulting.
A process to set up and develop a formal request for proposals could take up to six weeks and this type
of consulting work is unique. Staley Consulting has a proven track record of obtaining millions in naming
opportunities for parks and recreation facilities.
Financial Impact
The total cost for Phase I proposal is to compensate Staley Consulting is $48,000. A phase II proposal
cost depends on the options chosen.
Attachments
■ Staley Consulting Services Phase I Proposal Contract
■ Staley Consulting Services Phase II Proposal Contract
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAMIRE1
PROPOSAL FOR SPONSORSHIP PROGRAM
DEVELOPMENT
CONSULTING SERVICE
PHASE I
Purpose
In 2018, the community of Elk River chose to make a major investment in the quality-of-life for
their community through a sales tax referendum. They approved a dedicated tax to provide
$35,000,000 in park and facility improvements.
The funds will be used to make improvements in existing facilities and to build new ones
including a multi-purpose facility containing ice rinks, dryland recreation space, meeting rooms
and a senior citizen center. In addition, a baseball park will be upgraded, trails extended and
various ancillary facilities such as picnic shelters, etc. will be added or upgraded.
It is the wish of the council to provide an even greater amount of value-added services for the
citizens, without increasing taxes any further, through the use of the public-private partnership
tool of offering sponsorships.
The additional funding will provide further facility and program offerings that customers will
greatly value. Dryland hockey training for youth and pickle ball courts for seniors are examples
of the extended program offerings.
Scope of Work
The project is to establish an ongoing program for generating revenue through sales of
sponsorships for sections of park and recreation facilities, as well as, other naming assets such
as programs, publications, etc.
The consultant will work with staff to identify sponsorship assets of the department, evaluate
those assets relative to their sales value, identify and evaluate packaging strategies, research
prospects, construct a sponsor proposal format, form a marketing strategy, and establish a
sponsor appreciation process.
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Description of Work
The Consultant
I. Conduct a thorough briefing with staff of the project development and planned programming
for the new and upgraded facilities.
2. Conduct a brief assessment of the business community, as well as, park department
stakeholders by interviewing five to eight leaders.
3. With staff, identify assets that can be offered for naming.
4. Evaluate the sponsorship value of each of the assets by:
• Subcontract with a specialty firm that has expertise in determining the on-site
impressions and sponsorship value of a sample of the identified assets.
• Compare the on-site impressions and value of the assets of the Elk River Facility
calculated by subcontracted specialist to those of benchmark facilities around the
region.
5. Develop an advertising package:
• Determine if it is best to sell each logo placement individually or bundle the assets into
packages.
• If so, determine the packages for sponsors at incremental amounts like $10,000,
$25,000, $50,000.
6. Construct a prospect list of likely organizations, businesses, individuals, nonprofits, etc.:
• Research prospective companies who typically are interested in sponsorships of public
facilities and programs.
• Review community input from forums, requests made to officials, from interviews with
business associations, etc. to get leads of priority prospects.
7. Construct a proposal:
• It should be professionally designed and of high quality.
• It would highlight impressions, the type of people who will attend events, the
marketing opportunities at the events and programming, likely presents of the press,
rated sponsorship value, etc.
• Be flexible enough that it can be tailored to each individual prospect being solicited by
focusing on their particular interest and need.
Methodology:
1. The Consultant will be available at all times, 24/7 via cell phone for consulting.
2. The Consultant will be available to meet with individuals and groups or to assist with other
duties.
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Elk River Park and Recreation Department
1. Work with the consultant on all the above stated phases and tasks:
• Provide relevant requested information.
• Provide insight into planning relative the use of the facility, knowledge of the
community, and in particular, user groups and stakeholders.
2. Provide consultant office space when in the community working on this project.
3. Provide compensation to the Consultant outlined below.
Relationship of Parties
The parties intend that an Independent Contractor— Elk River Parks and Recreation
Department relationship will be created by this contract. Elk River Parks and Recreation is only
interested in the results to be achieved. The Elk River Parks and Recreation and the Contractor
agree that the quality, pace, and success of the project is based upon both parties meeting the
aforementioned expectations. Contractor is not to be considered an agent or employee of Elk
River Parks and Recreation Department.
As the parties have entered into an Independent Contractor relationship, it is the responsibility
of the Contractor to report all income and pay all taxes required by federal and state
authorities.
Elk River Parks and Recreation will designate one official representative (CEO), and one back-
up, of their body to communicate to the Contractor the ongoing wishes, needs, concerns and
meeting arrangements for the project. The Contractor will send all his communication to both
individuals.
Compensation
Based upon the scope of this proposal, a structured flat rate basis would be $48,000. The
proposed payout structure would be:
• $20,000 Upon signing
• $15,000 April 1, 2020
• $13,000 August 1, 2020 (Conclusion of this contract)
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Project Expenses
The Elk River Parks and Recreation would cover:
1. The mileage expenses for the trips to Elk River, or other locations relevant to the
project, by Staley Consulting.
2. Room and meal expenses, when necessary for Staley Consulting.
3. Compensation to Staley Consulting for any other out-of-scope expenses incurred.
4. The expenses for professional marketing services, to create professionally designed
promotional booklets, pamphlets, folders, etc. and printing costs. The Elk River
Parks and Recreation will be made aware of these expenses prior to receiving any
invoices.
Duration
This contract shall remain in effect until August 1, 2020.
Respectfully Submitted:
Staley Consulting
JOHN STALEY, Owner Signature Date
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PROPOSAL FOR SPONSORSHIP PROGRAM
DEVELOPMENT
CONSULTING SERVICE
PHASE II
Purpose
To provide a consulting service to guide the sales of the Elk River Parks and Recreation
Department Sponsorship assets that were identified in the sponsorship planning process
conducted in Phase I of the sponsorship program development.
Scope of Work
Options:
1. Determine the scope of work and mechanics of implementation for a second contract once
Phase I is completed. More information will be available at that time relative to the goals
desired, time table, expectation for sales, etc.
2. Create a Consultant contract around the perspective of the Consultant training and coaching
designated staff of the Park and Recreation Department for a 17 month period; August 2020
through December 2021. The Consultant would visit the department twice a month to assess
the progress, provide specific advice in approaching certain prospects, as well as, closing
specific prospects and make actual calls along with staff. This approach is based on:
• The anticipation that a staff member would be assigned the responsibility of sponsor
relations along with other similar duties to public relations for the department,
scheduling meeting rooms, etc.
• A goal of selling 70% of the assets by December 31, 2021. This follows the assumption
that once 70% of the assets are sold, the popularity of the program in the community
will attract the remaining 30% in sales.
• Consultant fee would be $2,000/month.
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3. Create a Consultant contract around the perspective of the Consultant making direct sales
visits of priority prospects for a period of 17 months. This approach is based on:
• A goal of selling 70% of the assets by December 31, 2021. This follows the assumption
that once 70% of the assets are sold, the popularity of the program community will
attract the remaining 30% in sales.
• Consultant fee would be a base flat fee of$1,500/month plus an incentive commission
based on the following graduated level of sales:
8%when reaching $100,000 in sales
5%for amounts above $100,000 in sales
2%for amounts above $999,999
• Level of sales would be the calculated as:
• Annual amount of payment times the years of the sponsorship contract for
each sponsor.
• Distribution would take place upon reaching 70% sales of assets (as determined
on August 1, 2020), or on the accumulated sales at the end of the contract,
December 31, 2021.
Description of Work
The Consultant
I. Throughout any of the above contract scenarios the Consultant would assess and make
recommendations for adjustments of new information (such as prospect reaction and
adjustments will be necessary to fit the market place as it evolves):
• Evaluate the sponsorship value of each of the assets.
• The advertising package.
• The prospect list of likely organizations, businesses, individuals, nonprofits, etc.
• Continual research of prospective companies who typically are interested in
sponsorships of public facilities and programs.
• Continual review of community input from forums to assess sponsorship related trends,
requests made to officials, from interviews with business associations, etc. to get leads
of priority prospects.
2. Recommend adjustment to the core proposal.
3. The Consultant will be available at all times, 24/7 via cell phone for consulting.
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Elk River Park and Recreation Department
1 . Work with the Consultant on all the above stated phases and tasks:
• Provide relevant requested information.
• Provide insight into planning relative the use of the facility, knowledge of the
community, and in particular, user groups and stakeholders.
2. Provide Consultant office space when in the community working on this project.
3. Provide compensation to the Consultant, as determined
Compensation
As determined by which project scope option is selected.
Project Expenses
The Elk River Parks and Recreation would cover:
1. The mileage expenses for the trips to Elk River, or other locations relevant to the
project, by Staley Consulting.
2. Room and meal expenses, when necessary for Staley Consulting.
3. Compensation to Staley Consulting for any other out-of-scope expenses incurred.
4. The expenses for professional marketing services, to create professionally designed
promotional booklets, pamphlets, folders, etc. and printing costs. The Elk River
Parks and Recreation will be made aware of these expenses prior to receiving any
invoices.
Duration
This contract shall begin August 1, 2020 and extend through December 31, 2021.
Respectfully Submitted:
Staley Consulting
JOHN STALEY, Owner Signature Date
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