HomeMy WebLinkAbout7/6/2016 - STAFF REPORTS - 2.F. AO�pPLAI Sb
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Cq<�FORN�P CITY COUNCIL STAFF REPORT
DATE: JULY 6, 2016 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 4 TO THE CONSULTING SERVICES
AGREEMENT WITH SYMBLAZE INC. OF WEST HOLLYWOOD TO
PROVIDE ONGOING SUPPORT AND MARKETING SERVICES FOR
THE PALM SPRINGS BUZZ TROLLEY SERVICE PROGRAM OVER
THE NEXT TWELVE MONTHS IN THE AMOUNT OF $3,784 PER
MONTH INCREASING THE CONTRACT BY $45,408 WITH A TOTAL
CONTRACT AMOUNT NOT TO EXCEED $184,365
FROM: David H. Ready, City Manager
BY: Community and Economic Development Department
SUMMARY
Approve Amendment No. 4 to the Consulting Services Agreement with Symblaze Inc.
for implementation of the Palm Springs BUZZ marketing including production of
promotional materials and ongoing support for marketing and promotion for the Trolley.
The ongoing support services include continuing outreach and liaison with community
stakeholders and riders, social media and other multimedia activities to promote the
brand and working with the City to implement revenue generating activities to help fund
the service.
RECOMMENDATION:
1. Approve Amendment No. 4 to Agreement No. 6552 with Symblaze, Inc. for twelve
additional months of ongoing support services at an amount of $45,408 and a
revised total contract amount of$184,365.
2. Authorize the City Manager or his designee to execute all necessary documents.
STAFF ANALYSIS:
The City entered into an agreement with Symblaze, Inc. for the development, marketing,
branding and other related services for the Palm Springs BUZZ trolley in June 2014.
On February 18, 2015, the City Council approved an amendment of the contract to
provide for six months of post launch professional services in the amount of $5,454 per
month plus reimbursable expenses for ongoing support services.
!17-M NO. _ ��
City Council Staff Report
July 6, 2016-- Page 2
Palm Springs BUZZ Marketing and Promotion-Symblaze
On November 4, 2015, the City Council approved amendment of the contract to provide
for twelve months of additional ongoing support services in the amount of $4,284 per
month.
Staff recommends that the City Council approve an extension of the ongoing support
services for an additional twelve months at a monthly rate of$3,784 per month.
Symblaze has been a highly instrumental partner with the City in creating the BUZZ
brand as a uniquely Palm Springs experience that is enjoyed by residents and tourists
alike. The focus over the next twelve months will be a continuation of the management
of really important components such as the brand, social media, the eNewsletter, the
Website, the print materials, the app, the Perks program, the prizes, the customer
experience, all design, and responding to questions, compliments and complaints; with
the addition of a new service area aimed at a new key objective: revenue generating
activities. Now that the service is successfully operating well into its second full year,
the focus will be shifted from management of in-market advertising to revenue
generating opportunities.
FISCAL IMPACT:
The ongoing services and marketing for the 2016-17 season, under Amendment No. 4
of the Consultant Services Agreement, will be over a period of 12 months and will
increase the contract by $45,408, for a total contract value to date of$184,365.
Diana R. Shay, R6development Coordinator Lauri Aylaian, Director
Community and Economic Development
David H. Ready, Ci g r
Attachments:
Amendment No. 4 to Consultant Services Agreement with Symblaze Inc. for Branding,
Marketing, Promoting and Ongoing Support Services
02
AMENDMENT NO.4 TO CONSULTING SERVICES AGREEMENT
Branding, Marketing and Consulting
This Amendment No. 4 to the Consulting Services Agreement ("Amendment') is made and
entered into this day of 2016, by and between the City of Palm
Springs, California, a California Charter City ("City"), and Symblaze, Inc., a California
Corporation, ("Consultant').
RECITALS
A. City requires the services of a marketing/branding firm, to assist in developing
the brand concept, imagery, marketing and promotion for the proposed trolley ("Project').
B. Consultant has submitted to City a proposal to provide services to provide
Branding, Marketing and Consulting services to City under the terms of this Agreement.
C. Based on its experience, education, training, and reputation, Consultant is
qualified and desires to provide the necessary services to City for the Project.
D. City and Consultant entered into Agreement for Phases 2 and 3 Branding Services on
June 9, 2014 for services in the amount of$15,040.
E. On December 2, 2014, Amendment No. 1 to the Agreement added Phase 4 Marketing
and Promotional Services in the amount of$39,785.
F. On February 18, 2015, the City Council approved Amendment No. 2 to the Agreement
for ongoing marketing and promotional support services in the amount of$32,724 for a six month period
from February 19, 2015 through August 2015.
G. On November 4, 2015, the City Council approved Amendment No. 3 to the Agreement
for ongoing marketing and promotional support services in the amount of $51,408 for a twelve month
period effective September 1, 2015 through August 31, 2016.
H. City and Consultant wish to continue marketing and promotional support services over an
additional twelve months at a monthly rate of$3,784 per month, effective September 1, 2016 through
August 31, 2017, in an amount not to exceed$45,408.
I. City and Consultant desire to modify the Scope of ServicesANork as described in
Exhibit "B" to this Amendment.
In consideration of these promises and mutual agreements, City agrees to retain and
does hereby retain Consultant and Consultant agrees to provide services to the City as
follows:
AGREEMENT
In consideration of the promises and covenants contained in this Amendment and other
good and valuable consideration, the City and the Consultant agree:
03
SECTION 1. Section 3.1 of the Agreement is hereby amended as follows:
Consultant shall be compensated and reimbursed for the services rendered under this
Agreement in accordance with the schedule of fees set forth in Exhibit "A"-Schedule of
Services and Expenses. The total amount of Compensation under this amendment is $45,408
and total amount of Contract shall not exceed $184,365.
SECTION 2. Sections 10.2 and 10.3 of the Agreement are hereby amended as follows:
10.2 Conflict of Interest. Consultant acknowledges that no officer or employee of the
City has or shall have any direct or indirect financial interest in this Agreement nor shall
Contractor enter into any agreement of any kind with any such officer or employee during the
term of this Agreement and for one year thereafter. Contractor warrants that Contractor has
not paid or given, and will not pay or give, any third party any money or other consideration in
exchange for obtaining this Agreement.
10.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its
heirs, executors, assigns, and all persons claiming under or through them, that there shall be
no discrimination or segregation in the performance of or in connection with this Agreement
regarding any person or group of persons on account of race, color, creed, religion, sex,
marital status, disability, sexual orientation, gender identity, gender expression, national origin,
physical or mental disability, medical condition, or ancestry.
SECTION 3. Exhibit "A" to the Agreement is amended to read as provided in Exhibits
"A" and "B" to this Amendment.
SECTION 4. City and Consultant agree that the terms of the Agreement, shall remain
unchanged and in full force and effect, except as specifically provided in this Amendment.
[SIGNATURES ON FOLLOWING PAGE]
04
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready,
City Manager
APPROVED AS TO FORM: ATTEST:
By: By:
Douglas C. Holland, James Thompson,
City Attorney City Clerk
"CONSULTANT"
SYMBLAZE, INC.
Attention: Josh Morgerman
8997 '/z Keith Avenue
West Hollywood, CA 90069
Date: By:
Josh Morgerman
EVP & Co-founder
Date:
Michael Horton
CEO & Co-founder
Check one: _Individual _Partnership _Corporation
Corporations require two notarized signatures: One signature must be from Chairman of
Board, President, or any Vice President. The second signature must be from the Secretary,
Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer.
09
Exhibit A
Schedule of Contracted Services and Expenses through Amendment#4
Branding Services Phases 2 and 3 $15,040
(Original Agreement June 9, 2014)
Promotional services Phase 4 including $39,785
development and design of marketing
materials and plan (Amendment No. 1
October 1, 2014)
Post Launch-Marketing Implementation $32,724
and Ongoing Support for six months
commencing on February 19, 2015
(Amendment No. 2)
Continuing Marketing Implementation $51,408
and Ongoing Support for twelve
months commencing on September 1,
2015 through August 31, 2016
(Amendment No. 3)
Continuing Marketing Implementation $45,408
and Ongoing Support for twelve
months commencing on September 1,
2016 through August 31, 2017
(Amendment No. 4)
TOTAL Contract Value $184,365
06
Exhibit B
Scope of Services
Contained in Section 2, entitled "Ongoing Support from SMBLT, a part of the
Ongoing Services & Marketing for the 2016-17 Season
Statement of Work-Sym la Inc. dated June 20, 2016
(A ache
07
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California l
County of 1}
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capacitKiies), and that by hislher/their sigrra06ie(s) on The
instrument the person(s), or the entity upon behalf of
which the person(s)acted,executed the Instrumertt.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
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Description of Atted Documerit
Title or'lype of Document: _
Document Date: Number of Pages:
Signer(s)Other Than Named Above:
Capecity(les)ClaMted by Signer(s)
Signer's Name: Signer's Name:
Individual G individual
Corporate Officer—Titie(s): ❑Corporate Officer—Titie(s):
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08
symblaze
Palm Springs BUZZ:
Ongoing Services & Marketing
for the 2016-17 Season
Statement of Work
client City of Palm Springs
Project(s) Palm Springs BUZZ: Promotional &Advertising Services
author J. Morgerman, M. Horton, &Team
created 20 June 2016 version 1.0
09
symbla:e
Contents
1. INTRO....................................................................................................................................................1
2. ONGOING SUPPORT FROM SMBLZ....................................................................................................2
2.1 Social Media &Outreach..........................................................................................................2
2.2 entail Campaign: Creation, Execution, &Management...........................................................3
2.3 Revenue-Generating Activities................................................................................................3
3. TERMS OF ENGAGEMENT...... .........._........... .................................. ................................................5
3.1 Timeframe.................................................................................................................................5
3.2 Pricing Summary......................................................................................................................5
3.3 PaymentTerrns.........................................................................................................................5
4. ASSUMPTIONS...---.............................................................................................................................. 6
5. CONCLUSION.......................................................................................................................................7
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1 . Intro
The amazingness continues! O
The Palm Springs BUZZ has become a City institution, delighting residents and tourists alike. It's now a truly
integral part of the unique Palm Springs experience. And residents couldn't imagine the city without it.
This past year's goal was to sustain and grow the buzz around the BUZZ (no pun intended)—to build it into a
beloved brand and a Palm Springs institution.
A year later we can say: mission accomplished! In fact,just a few weeks ago--over Memorial Day Weekend—
we smashed all previous ridership records! It's up and up.
Our challenge now?
Continue to grow the brand while also developing revenue streams.
So, we still want to do all these things:
• Continually increase ridership.
• Keep people talking about it around town.
• Immortalize it as a defining part of the Palm Springs experience (like the trolleys in San Francisco or
the trolleys in New Orleans)
• Keep residents&visitors informed Re: route changes, special days of operation, etc.
• Sustain the magical aura of the brand.
• Delight.
But now we've added one other central objective:
• Design, develop,and execute creative revenue-producing tactics.
Given this, we've adjusted our service offering from last year's.
The main change?
We've replaced the previous Section 2.3 (Management of In-Market Advertising)with a new one: Revenue-
Generating Activities. We think this makes sense since the brand (and ridership) have continued to increase
despite minimal advertising over the past year. We just don't think paid advertising is mission-critical right now.
This Statement of Work explains our complete gameplan over the next
fiscal year.
Read on...
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2. Ongoing Support from SMBLZ
As we head into season, ongoing supervisory and promotional services will help sustain ridership and positive
word-of-mouth!
The following mix of services reflects our learnings from the last six months. You'll see that some services are
reduced or deemphasized, whereas new ones are added. This revised mix more closely maps to the brand's
needs as we've experienced firsthand in managing it since launch.
2.1 Social Media & Outreach
Our ongoing,weekly services entail not just promotional work, but also brand advocacy and light supervision and
quality-assurance—not to mention a steady stream of cool, targeted multimedia activities.
Regular Services
• Daily. Real-time promotional/management work(3 hours per week)via social media, including:
o Posting colorful, engaging content to promote the brand.
o Hosting small contests with quick prizes.
o Spotlighting participating businesses.
o Reporting news—i.e., new services, special events, special hours, etc.
o Advising riders Re: unforeseen problems—i.e., delays, service interruptions, re-routings, etc.
O Responding to riders&fans in real-time—Re: questions, complaints, lost items, etc.
• Bi-weekly (every other week)
O Liaising with community stakeholders&riders—including fielding feedback/concems
(onboard & around town), compiling this feedback, and reporting back to City weekly(up to 2
hours every other week).
o Working with City on strategy &improvements (up to 2 hours every other week).
• Monthly. Community& stakeholder outreach, including:
O Managing entire Perk Program—including:
• Procuring, managing, mapping, &communicating perks.
• Updating &maintaining user database.
• Producing new Perk Cards.
o Managing Big Prize Program—including:
• Procuring, managing, awarding, &announcing prizes.
• Note: Procuring these big prizes is labor-intensive—involving in-person
meetings with Main Street business owners to pitch the program and persuade
them to get involved&donate the prizes!
D Maintaining/updating Website (as needed).
O Training Brand Ambassadors.
D Community&trade-group outreach.
Regular Deliverables
• A torrent of witty,engaging social-media posting. O
• Photos—on-the-fly smartphone photos.
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• Designed collateral such as colorful memes, new route maps, other simple/moderate pieces (up to 3
per month, including updates of existing pieces).
2.2 eMail Campaign: Creation, Execution, & Management
eMail marketing (eMM) is a potent tool for segmenting audiences and delivering highly-targeted messages and
getting results.
We envision a solution with attractive, eye-catching design. For brand consistency, it will match the look-and-
feel of other BUZZ collateral. From a content standpoint, we'll organize a flexible template that's consistent
month-to-month while also having the flexibility to serve up a wide array of news and messaging.
We propose continuing with 1 eMail newsletter(eNewsletter) per month, near the beginning of the month, to:
• Report news.
• Advise Re: service changes or upgrades (i.e., route additions, special hours, etc.).
• Share exciting new perks and/or prizes.
• Spotlight local businesses (which participate in the Perk or Big Prize Programs).
• Answer FAQs.
• Keep the brand on everyone's radar!
We'll continue to send out eMail blasts that correctly appear on all commonly-used recipient platforms and
browsers.
Services
• Integration of all member data into eMail platform.
• Conceptualization, design,content strategy& HTML production of the eMail template.
• Copywriting &editing for blasts related to:
• Deployment of the eNewsletter.
• Monitoring for issues like heavy bounce rate, unsubscribes, etc.
2.3 Revenue-Generating Activities
The biggest BUZZgoal of the coming fiscal year? Generating revenue!
The BUZZ has become an intrinsic and much-beloved part of life in Palm Springs. Tourists love it; residents
expect it.
But the BUZZ costs money to run. And now that the program has traction—and the brand is well-established—it's
a good time to start enlisting the community's support.
Given this, we'll devote efforts this fiscal year to the generation of revenue. Tasks will include:
• Designing creative programs for generating revenue.
• Proposing these programs to City staff and the Council Subcommittee.
• Developing and executing the approved programs with City stakeholders (including businesses, trade
groups, and even residents).
Some of the first program proposals include:
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• Auctioning stop names to local businesses.
• Collection box.
• Donation drive—with accompanying campaign.
• Onboard advertising.
• Hotel outreach.
• Selling branded merchandise("schwag").
• Raffle contests.
We'll be fleshing exploring and assessing the feasibility of these ideas and others in the coming weeks—and
ones deemed feasible will be developed fully and put into action.
We'll spend between 8 and 12 hours per month on these efforts, with a status update at least once per month
(or more frequently, as we make progress).
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3. Terms of Engagement
3.1 Timeframe
This proposal assumes a 12-month term.
At the beginning of the engagement, we'll create a plan for the entire period, anticipating holidays and other
occasions for amplifying BUZZ exposure.
3.2 Pricing Summary
Monthly prices for the services are as follows:
• Social Media & Outreach: $3,150/month
• eMail Campaign: $1,020/month
• Management of In-Market Advertising: $1,235/month
These services total$5,405 per month, for a total of$64,860 for the year.
However, assuming a commitment of 12 months, SMBLZ is pleased to offer the entire package of services for
$3,784 per month, for a total of$45,408 for the complete 12-month period. This represents a substantial (30%)
discount.
We're pleased to give this discount as a show of appreciation for continued collaboration with the City of Palm
Springs—and because we believe in the merits of this popular and much beloved City program.
3.3 Payment Terms
Ongoing support would be billed monthly, at the end of each month. Invoices are Net 30.
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4. Assumptions
The following assumptions are meant to clarify and quantify the scope of required services as understood at this
time. If any assumption changes or is incorrect, then the timeframe and/or budget described above may also
change. It is assumed that:
• Project scope and requirements do not change significantly from the scope and requirements described
in this proposal.
• SMBLZ has necessary and timely access to necessary City personnel and information.
• SMBLZ receives timely, consolidated creative feedback and sign-off from one City resource at key project
milestones according to a mutually agreed-upon schedule to be set at commencement of services.
• The City of Palm Springs is responsible for all legal clearances—including trademarking.
• The City of Palm Springs is responsible for production (e.g., print management, installations, etc.)as well
as all media purchases.
• The eMail marketing program will have no more than 5,000 recipients.
• The pricing in this proposal includes agency labor fees only. Unless specifically noted otherwise, it
does not include:
o Cost of any hardware or software.
o Cost of stock media assets (like stock photography, video or music).
o Printing or print management. (This proposal covers the creation of the print files but not the
actual printing or the management of the printing process. SMBLZ would be pleased to offer
those services for an additional fee.)
O Travel expenses.
o Any other casts other than agency creative, management, &development fees as detailed in this
proposal.
No such additional costs will be incurred without prior written authorization from City, and when
appropriately incurred invoiced on a consolidated monthly basis.
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5. Conclusion
SMBLZ is excited at the opportunity to continue the magic of the BUZZ—and to start efforts toward making it one
day self-sustaining!
If you have any questions, or would like additional information, please contact:
Josh Morgerman
EVP/Co-founder
SMBLZ
mob:
USA/+1 310 866 8400
Europe/ +420 777 722 448
eMail: josh.morgerman@symblaze.com
Thank you for considering us. We look forward to working with you on this!
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