HomeMy WebLinkAboutFCS-13-078 - E13-037 Consultant Services - Municipal Sponsorship Strategy
REPORT TO:Committee of the Whole
DATE OF MEETING:
2013-04-29
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200
ext. 7214
PREPARED BY:
Larry Gordon, Director of Supply Services, 519-741-2200
ext. 7214
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2013-04-23
REPORT NO.: FCS-13-078
SUBJECT:
E13-037 Consultant Services – Municipal Sponsorship
Strategy
RECOMMENDATION:
That Expression of Interest E13-037 Consultant Services – Municipal Sponsorship Strategy, be
Centre of Excellence for Public Sector Marketing, Ottawa, Ontario,
awarded to at their
estimated fee of $50,250., plus H.S.T. of $6,532.50., for a total of $56,782.50, based on a
satisfactory contract being negotiated and an upset fee being established.
BACKGROUND:
The City of Kitchener currently owns and operates a wide variety of “assets” (e.g. physical
buildings, programs, special events) that could be leveraged through sponsorships to generate
revenue for the municipality. However, generating these funds would require a comprehensive,
coordinated and proactive approach to identifying, evaluating, packaging and selling these
sponsorship opportunities.
Currently the City has no formal strategy or policy regarding sponsorships. As such, there is no
coordinated approach to proactively identifying and selling these opportunities. Nor are there
any corporate-wide processes or guidelines in place to plan, implement, monitor and control
sponsor agreements. The City’s historic ad hoc approach to selling sponsorships has not
maximized this potential source of revenue.
To that end, in April 2012, Council approved a recommendation from report CSD-12-058 –
Corporate Sponsorship of Recreation and Leisure Facilities, that staff be directed to proceed
with the development of a corporate sponsorship strategy.
The concept of coordinated and proactive municipal sponsorship strategies is relatively new
within Ontario. In order to ensure the City’s sponsorship strategy is as effective as possible, staff
are recommending that the City engage a consultant with specific experience and expertise in
this field. Given this is not work the City has traditionally done, staff do not have the in-house
expertise required. Utilizing an outside expert in this field will ensure: the City’s assets are
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valued appropriately and packaged according to their specific benefit; revenue estimates are
verified, realistic and achievable; risks are appropriately assessed; and a roll-out strategy and
resourcing model is provided that is based on experiences in other municipalities, all within a
timeframe that takes the 2014 budget process into account. Without this external expertise staff
would require a much longer timeframe within which to complete this work and with less
certainty of a successful outcome.
REPORT:
In accordance with Chapter 170 of the Municipal Code pertaining to the Selection of
Professional Services/Consultants, a Consultant’s Review Committee was established
consisting of D. Matthews, Business Analyst, J. Dueck, Supervisor of Sales and Business
Development, Enterprise, M. May, Deputy C.A.O., Community Services, K. Woodcock,
Manager, Service Coordination and Improvements, and L. Gordon, Director of Supply Services.
Expressions of interest were advertised publicly on the City of Kitchener website and on the
internet through the Ontario Public Buyers Association Electronic Tendering Information System
relative to this project. Documents were downloaded by twenty-five (25) interested parties, and
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by the closing date of Monday April 15, 2013, seven (7) responses had been received.
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The review committee met on Tuesday April 16, 2013 to review the submissions and elected to
award the project to Centre of Excellence for Public Sector Marketing, Ottawa, Ontario.
A listing of the responding parties follows for your reference:
Centre of Excellence for Public Sector Marketing Ottawa ON
The Goldie Company Toronto ON
Legends Sales and Marketing Plano TX
Overlap Associates Inc. Kitchener ON
Partnership Group – Sponsorship Specialists Calgary AB
The Superlative Group St. Catharines ON
XMC Sports and Entertainment Toronto ON
The committee rated consultants on the following criteria:
Qualifications and expertise in: Strategic marketing plan development specifically for
municipalities; Asset inventory and valuation methodology; Community stakeholder,
Council, Staff, and Project team consultation and facilitation
Sponsorship Policy Development
Pricing and related costs
Proposed Approach and Methodology
Alignment with City of Kitchener Strategic Plan:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy framework.
The City of Kitchener’s purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
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Financial Implications:
Expression of InterestE13-037
Deliver a Municipal Sponsorship Strategy
The net cost for this expression of interest (A), is fair and reasonable for a project of this
scope and the upset limit is within the budget allowance (B) provided within the budget.
Funding for this project is included within the approved capital budget. The estimated
surplus (D) will remain within the account to fund future phases of the project.
Financial Summary for Expression of Interest E13-037
Municipal Sponsorship Strategy
Internal Order 59500058
As at April 22, 2013
Estimated Cost
Expression of Interest E13-037 costs, including HST 56,782.50
less: HST rebate on tender (5,648.10)
Net Cost Being Awarded 51,134.40 A
Projected Costs -
Estimated Cost 51,134.40 C
Budget for this Phase of Work
55,000.00 B
Estimated Surplus/(Deficit) (B - C) 3,865.60 D
Surplus to be retained for use in later phases of work.
Community Engagement:
The development of a sponsorship strategy will include a public consultation component.
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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