HomeMy WebLinkAboutCSD-16-024 - Municipal Sponsorship Policy and Asset Inventory
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: May 30, 2016
SUBMITTED BY: Paul Pickard, Manager, The Aud & Arenas, 519-741-2200 ext.
5262
PREPARED BY: Dylan Matthews, Policy and Program Advisor,Office of Strategic
Partnership, 519-741-2200 ext. 5269
WARD(S) INVOLVED: All
DATE OF REPORT: May 11, 2016
REPORT NO.: CSD-16-024
SUBJECT: MUNICIPAL SPONSORSHIP POLICY & ASSET INVENTORY
___________________________________________________________________
RECOMMENDATION:
That the Municipal Sponsorship Policy attached to CSD-16-024 be approved; and
further,
That the Municipal Sponsorship Asset Inventory attached to CSD-16-024be
approved for future sponsorship opportunities.
BACKGROUND:
Glossary of Terms:
beneficial contractual agreement between the City
and an external company, organization, association or individual where the City
leverages a municipally owned asset to receive financial support in exchange for
recognition, exposure, activation opportunities, and/or other marketing benefits for
the third party.
means the sale to an external company, organization, association or
individual of advertising space on a municipal asset for the purposes of influencing,
educating or informing the public.
Naming Rightsform of sponsorship; naming rights are opportunities for a
or City entire complex (e.g. Activa
Sportsplex) for an extended term.
publications, websites or events, owned and operated by the City.This includes
enterprises.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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means a program that oversees the coordination of
Office of Strategic Partnerships.
On December 10, 2013, City Council considered the Municipal Sponsorship Strategy
CSD-13-105and approved several recommendations regarding the development of a
Municipal Partnership Program which included:
a) Developing a comprehensive Municipal Sponsorship and Corporate Advertising
Policy which will guide future decisions regarding the solicitation, management
and termination of sponsorships.
b) Consulting with the public and the local business community on the initial
inventory of municipal assets and partner benefits of a Municipal Sponsorship
Program to test the concept of a Municipal Partnership Program and refine (if
necessary) the initial inventory of municipal assets and partner benefits.
On March 3rd, 2014, City Council approved CSD-14-012, which included approval of a
new policy I-211 Municipal Advertising Policy and revisions to policy I-212 Municipal
Website Policy.
In June of 2014, a public survey was launched with regards to the concept of
sponsorship of City of Kitchener assets.
Additional Advertising and Sponsorship Achievements to Date Include:
Awarding a contract in 2015 to install digital advertising screens and hand
sanitizer units within four community centres to Creative Display Technolgies.
Agreement with Your Neighborhood Credit Union to be title sponsor of two
events as part of the Neighborhood Strategy.
Awarding a contract in 2016 to sell advertising inventory within the Sport Division
to Cosmos Sports (e.g. Rink boards, golf course signage).
Developed a partnership with Boston Pizza in 2015 to create the Boston Pizza
Fan Services Office-Ottawa Street and East Ave locations at The Aud.
Developed a partnership with Gibsons Finest to
Club Lounge & Restaurant at The Aud.
Partnership with Canadian Tire to sponsor Cruising on King.
Installed smartphone charging stations located in the Ottawa Street Lobby of The
Aud through a 2015 partnership opportunity with Telus.
In April 2016, the Office of Strategic Partnerships was created and introduced to the
corporation. This unit will provide support and advice to staff across the corporation and
is responsible for establishing a variety of policies, guidelines, training and materials to
selling sponsorship and advertising opportunities.
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REPORT:
In order to create an environment in which staff can effectively and responsibly pursue
sponsorship opportunities for the City of Kitchener, a sponsorship policy should first be
in place that provides guidelines, principles, conditions and parameters in which staff
Developing an approved asset inventory will provide the basis for which staff can move
forward with developing sponsorship proposals and agreements. The potential
revenues the City can generate are directly correlated to the assets that the City can
leverage in a sponsorship agreement.
Staff Recommendation #1:
Municipal Sponsorship Policy (Appendix A)
The Municipal Sponsorship Policy is intended to accomplish two goals:
1) Clearly define the parameters for future sponsorship agreements of municipal
assets that are acceptable to the City to safeguard City assets and protect the
2) Create an environment that encourages sponsorship agreements on municipal
assets for revenue generation that is open to ideas from potential partners and
that provides ease to quickly respond to new opportunities as they arise.
The proposed Municipal Sponsorship Policy, which was developed, based on best
practices in the industry and direction from the City of Kitchener 2013 Municipal
Sponsorship Strategy, provides clear parameters for future contractual agreements for
sponsorships on municipal assets that include but not limited to naming rights, event
sponsorship, and program/community initiatives and service sponsorship opportunities.
The policy outlines the delegation of authority for approving sponsorship agreements as
follows:
City Council approval is required for any agreement that is:
in excess of $125,000 for the term of the agreement;
in excess of 10 years in duration;
naming rights for an entire complex;
or does not satisfy the provisions of this policy.
for the
term of the agreement, subject to the satisfaction of the City Solicitor. This amount is
Purchasing Bylaw.
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Other parameters outlined in the policy include definitions, scope, principles and
conditions, sponsorship criteria, third-party agreements, solicitation, and allocation of
funding.
Staff Recommendation #2:
Approved SponsorshipAsset Inventory (Appendix B)
Purpose:
Municipal Assets are facilities, vehicles, equipment, programs, services, publications,
websites or events, owned and operated by the City.This includes assets owned and
aster inventory
on stream and others are removed from the inventory for administrative, operational or
policy reasons. In addition, the function of the inventory will evolve as the city increases
the level of sophistication of its sponsorship coordination efforts.
Over the long-
important planning tool. By identifying and cataloguing assets, staff will easily be able to
see the scope of approved opportunities available, mix and match benefits (where
required) that respond to specific prospect needs, and determine the value of these
packaged benefits.
Once the initial asset inventory is approval by City Council it would be reviewed and
updated by the Corporate Municipal Partnership Steering Committee of staff on an
annual basis. City Council will be advised of any changes made on a yearly basis.
Benefits:
A preapproved asset inventory will allow staff to respond quickly to potential partnership
opportunities for sponsorship and minimize the risk of losing a partner due to delays in
the approval process. In conjunction with the parameters specified in the sponsorship
policy, staff will have the tools required to develop marketing materials, proposals, and
ultimately execute on sponsorship agreements.
Development of Asset Inventory:
master inventory of all potential City of Kitchener assets that could be leveraged for
sponsorship agreements with corporate partners; either as stand-alone opportunities or
bundled packages. A draft asset inventory was included in the Municipal Sponsorship
Strategy (CSD-13-105).
A municipal asset inventory was created and vetted by City staff and the Municipal
Partnership Steering Committee that included: naming rights, events, programs,
community initiatives and other.
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As directed by Council, the asset list was provided to the general public and the
business community to gather feedback with regards to approval of engaging in
sponsorship for each item.
Feedback:
On June 16, 2014, citizens and business owners in the City of Kitchener were invited to
comment on the potential sponsorship of various assets owned by the City of Kitchener.
City staff promoted the survey via radio appearances and social media.
The survey closed at midnight July 31 2014 with 938 visits; however only 132 surveys
were completed (based on total population - 0.06% response rate).
Staff also consulted with the Chair of the Kitchener Waterloo Chamber of Commerce to
discuss the potential partnership program from the standpoint of the business
community.
Through discussion with Ian McLean, President & CEO of the Greater Kitchener-
Waterloo Chamber of Commerce, the Kitchener Business Community would be
accepting of a Partnership Program, provided it is implemented strategically with local
Mayor and Council, who would front face and openly support the involvement of
corporations in the initiative.
dollars are allocated towards the enhancement of facilities, programs, and services,
rather than funding core services that are supported by tax based revenue. Partnerships
should be promoted and celebrated, with the opportunity for companies to do
activations in City of Kitchener facilities and through City social media outlets and
publications. The City will need to be flexible in negotiations, by having a pre-approved
list of assets and partner marketing benefits to offer, and the ability to be creative in
developing relationships. The City should also ensure that businesses are approached
in a coordinated effort, with both internal and external parties to avoid the issue of
Categorization:
Staff then examined feedback from the public and the local business community about
the priority to be assigned to each item in the inventory. Assets were categorized by
staff into High, Medium, and Low priority based on feedback from the general public,
marketability, and revenue potential. The attached Appendix B identifies the asset
inventory and has categorized the inventory into high, medium, and low priority for
sponsorship opportunities.
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High Priority AssetMedium Priority AssetLow Priority Asset
Approval from public Approvalfrom public 50-Approval from public
>65%65%<50%
Proactively marketed Given revenue potential Assets that that would
assets andthe low survey not actively be marketed
response rate these
Include/highlight these Staff will respond to
assets were designated
assets in marketing inquiries if they are
as secondary priority for
materials to potential received
active marketing
partners
Seek council agreement
Include in asset prior to proceeding with
bundlingany of these assets
Proactively meet with
City staff responsible for
these assets to provide
guidance
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Strategic Priority:Efficient City Services
Strategy: 5.4 - Ensure the responsible stewardship of public funds within a supportive
policy framework.
Strategic Action: #19 Municipal Partnership Program
FINANCIAL IMPLICATIONS:
There are no financial implications related to the creation of a Municipal Sponsorship
Policy and approval of the asset inventory for future sponsorship opportunities.
COMMUNITY ENGAGEMENT:
CONSULT As directed by Council, the general public and business community were
consulted to gather feedback on acceptance of sponsorship of municipally owned
assets by means of a survey initiated June 16 through July 31, 2014.
INFORM with the agenda in
advance of the council / committee meeting.
ACKNOWLEDGED BY:
Michael May, Deputy CAO
ATTACHMENTS:
APPENDIX: A Municipal Sponsorship Policy
APPENDIX: B City of Kitchener Sponsorship Asset Inventory
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COUNCIL POLICY RESOLUTION
POLICY NUMBER:DATE:
TBDMAY11, 2016
POLICY TYPE:
TBD
SUBJECT:
MUNICIPAL SPONSORSHIPPOLICY
POLICY STATEMENT
The City welcomes and encourages sponsorships on a variety of municipal
assets, as a way of generating non-tax revenue for the municipality that assists in
the provision of City programs and services.
All sponsorship activity will comply with the parameters outlined in this policy;
shall be consistent with the City ; shall not compromise or
contradict any City by-law or policy; reflect negatively on the City,
and; will not compromise or contradict any laws, bylaws or policies of Canada,
Ontario, or the City.
All sponsorship agreements shall be established in a manner that ensures
access and fairness, and results in the optimal balance of benefits to the City and
its community.
PURPOSE
To establish parameters for future sponsorship agreements on municipal assets
that will safeguard the City
environment that encourages increased revenue generation through
sponsorship. The Municipal Partnership Program strives to utilize sponsorship as
a means of generating new revenue for The City of Kitchener. The program is
coordinated and administered by the Office of Strategic Partnership.
DEFINITIONS
For the purposes of this policy:
means a mutually beneficial contractual agreement between
the City and an external company, organization, association or individual
where the City leverages a municipally owned asset to receive financial or in-
kind support in exchange for recognition, exposure, activation opportunities,
and/or other marketing benefits for the external party.
Naming Rightsform of sponsorship; naming rights are
or City entire
complex (e.g. Activa Sportsplex) for an extended term.
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POLICY NUMBER:TBD
POLICY TYPE: TBD
SUBJECT:MUNICIPAL SPONSORSHIP POLICY
publications, websites or events, owned and operated by the City.This
includes assets owned and operated by the City
Municipal Partnership Program means a program that oversees
coordination of sponsorship and advertising of the City
administered through the Office of Strategic Partnerships.
the City of Kitchener,
including but not limited to parkland, open space, recreational and leisure
facilities, meeting rooms, operations facilities and administrative office
buildings.
located within the boundaries of one location in The City of Kitchener.
The Citythe City of Kitchener and all of its
Enterprises.
-
services rather than cash.
hird-party Companyacompany or agency that has the right to
negotiate sponsorship agreementson behalf of The Cityof Kitchener.
s
Municipal Partnership Program.
SCOPE:
This policy applies to sponsorship in the form of contractual agreements with an
external company, organization, association or individual on all municipal assets,
including, but not limited to:
Naming Rights on approved City properties, facilities and equipment;
Sponsorship of approved City run programs/initiatives and services;
Sponsorship of approved City run events.
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POLICY NUMBER:TBD
POLICY TYPE: TBD
SUBJECT:MUNICIPAL SPONSORSHIP POLICY
POLICY CONTENT:
Principles and Conditions:
The following principles and conditions will apply to all sponsorship agreements:
1) Sponsorship revenue should not be used to fund core programs and
services;
2) A portion of the revenue generated through future sponsorships should be
allocated towards establishing and/or improving the sponsored program,
service, facility or enterprise;
3) The contributions of municipal sponsorship partners should be
acknowledged by the City in a public manner on a regular basis;
4) Sponsorship recruitment should match a prospective partner with the
audience/participant interests to ensure there is a good fit between the
partner and the audience/participant;
5)
marketing-based objectives and not philanthropic or charitable in nature;
6) The products, services and brand of sponsorship partners should not
reflect negatively on the municipality;
7) The City should not enter into any sponsorship agreements including
naming rights with companies that are a direct competitor of the
municipality or its enterprises;
8) The City will not enter into any sponsorship agreements with a company
whom the City is in, or is entering into, litigation;
9) Sponsorships will not cause a specific City employee or a member of
council to receive any product, service or assets for personal gain or use;
10) There shall be no actual or implied obligation to purchase product or
services of the sponsor.
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POLICY NUMBER:TBD
POLICY TYPE: TBD
SUBJECT:MUNICIPAL SPONSORSHIP POLICY
Sponsorship Criteria:
The City will not accept sponsorship from companies whose reputation, products,
services or message could prove detrimental or reflect negatively on the City
public image and/or whose business is derived from:
pornography;
the support of or involvement in the production, distribution and sale of
weapons and other life-threatening products, or;
the sale of tobacco.
Sponsorship shall not:
condone any form of personal discrimination, including that based upon race,
national origin, religion, sex or age;
appear in a realistic manner to exploit, condone nor incite violence, nor
appear to condone, encourage or exhibit obvious indifference to unlawful
behaviour;
demean, denigrate or disparage any identifiable person, group or persons,
organization, profession, product or service or attempt to bring them into any
public contempt or ridicule, or;
undermine human dignity, display obvious indifference to or encourage,
gratuitously and without merit, conduct or attitudes that offend the standards
of public decency among a significant segment of a population.
In addition, the City will not accept any form of sponsorship that disparages a
City program, service, facility, event or employee.
Sponsorship with an advertising component:
Any sponsorship agreement that includes advertising elements in City publication
advertising, online advertising, interior/exterior signage advertising, and/or other
advertising opportunities must adhere to all of the requirements outlined in City of
I-211 Municipal AdvertisingI-212 Municipal Website
Kitchener Policy , and .
Solicitation of Sponsorship Opportunities:
Sponsorship opportunities will arise from; unsolicited proposals, direct
solicitation, or a competitive process.
In order to expedite partnership development, a competitive process is not
required when soliciting sponsorship opportunities. While there is no obligation to
test the market, in order to maximize the contribution, it is expected that several
prospective sponsors will be approached when circumstances warrant.
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POLICY NUMBER:TBD
POLICY TYPE: TBD
SUBJECT:MUNICIPAL SPONSORSHIP POLICY
The City reserves the right to reject any and all sponsorship opportunities.
As part of due diligence, staff authorized to approve sponsorship proposals must
ensure that all relevant by-laws and policies are adhered to, appropriate
consultation takes place with relevant stakeholders and approval authorities are
respected. Where necessary, a risk/benefit analysis of the opportunity shall be
conducted which may include proof of insurance and indemnification, an ethical
scan, a police check and any required permit approvals or inspections.
Delegation of Authority:
City Council approval is required for any agreement that is:
in excess of $125,000 for the term of the agreement;
in excess of 10 years in duration;
naming rights for an entire complex;
or does not satisfy the provisions of this policy.
The CAO or DCAO may enter into agreements for amounts up to $125,000 for
the term of the agreement, subject to the satisfaction of the City Solicitor.
Third-Party Sponsorship Agreements:
In cases where the City has engaged the services of a Third-party company to
assist in the sale of sponsorship of municipal assets, the following process will be
applied when a disagreement arises between the third-party company and a
potential partner:
Potential partners shall deal with the Third-party Company directly and the
Third-party Company shall interpret this policy. If there is disagreement
between the Third-Party Company and a potential partner on policy
interpretation, the matter may be referred to City staff for consideration.
A contract must be signed with the Third-Party Company before the matter
will be considered by the City. In cases where the content of an agreement is
the City
City staff charged with the responsibility of interpreting and implementing the
City Sponsorship policy may overrule decisions made by the Third-party
Company.
Should a change in policy be requested or a question of policy interpretation be
raised by potential partners,the City may become involved, at its discretion. The
City continues to be the sole and final arbiter in all matters relating to City
Sponsorship acceptance.
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POLICY NUMBER:TBD
POLICY TYPE: TBD
SUBJECT:MUNICIPAL SPONSORSHIP POLICY
The Third-party Company agrees that sponsorship is to be accepted based on all
current or future policies of acceptable sponsorship andthe City shall not be held
responsible for any loss of sponsorship business as a result of any changes it
shall make in its policy regarding the acceptability of certain types of
sponsorship.
Use of Sponsorship Funding:
Revenue generated from new sponsorship agreements will be used in one or
more of the following areas:
1) Improving the sponsored program and/or audience experience;
2) Direct servicing costs of any sponsorship arrangement (e.g. the preparation
of partner/facility signage, official announcement events, changing names on
publications, etc.) and program implementation costs (e.g. staff, overhead,
admin expenses, or marketing);
3) Administrative costs associated with the Office of Strategic Partnerships;
4) Deposited to a reserve account for future investments in the community.
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