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C'q�'�°��,P CITY COUNCIL STAFF REPORT
DATE: JULY 30, 2008 CONSENT CALENDAR
SUBJECT: APPROVE AN ADVERTISING CONTRACT ADDENDUM TO CITY
AGREEMENT NO. 5109 WITH THE DESERT SUN MODIFYING AND
EXTENDING THE AGREEMENT TO JULY 31, 2009
FROM: David H. Ready, City Manager
BY: City Clerks Department
SUMMARY
The City Council will consider the approval of a contract addendum for advertising with
The Desert Sun extending the Agreement to July 31, 2009, and modifying the contract
to include a Palm Springs Sun Newsletter and Online Advertising, while reducing the
current advertising rates.
RECOMMENDATION:
1. Approve the Advertising Contract Addendum with The Desert Sun to extend the
Agreement to July 31, 2009 and modifying terms of the Agreement.
2. Authorize the City Manager to execute the Advertising Contract Addendum.
STAFF ANALYSIS:
Various City Departments use the The Desert Sun for advertising. The bulk of the
advertising is legal advertising required by law, as such the City has no other legal
advertising choice, as The Desert Sun is the only adjudicated publication that qualifies
for legal advertising in the City.
Staff has been working with The Desert Sun to reduce the current advertising rates.
Additionally, the Addendum provides for two new services: 1) On-line advertising for
the Palm Springs Section Sponsorship Leader Board; and 2) City of Palm Springs
Newsletter distributed three times per year in the Palm Springs Sun.
The reduced rates require an annual revenue commitment of $60,000. Additionally,
staff has negotiated that should the City exceed the revenue commitment to over
'7 E n
ITEM NO. �,
City Council Staff Report
July 30, 2008 -- Page 2
Desert Sun Advertising
$75,000, the City will received a five percent (5%) rebate of the incremental advertising
dollars, over the $75,000 in the form of a credit on future advertising.
In fiscal year 2006 07 the City expended approximately $70,000 with the The Desert
Sun in advertising and approximately $85,000 in fiscal year 2007-08. While advertising
costs are not entirely predictable, the annual revenue commitment for this contact year,
is well within the City's reach, and should advertising requests continue at last year's
level, the City will be able to take advantage of the new rebate program now contained
in the agreement.
FISCAL IMPACT:
The Addendum requires an annual revenue commitment of the City in the amount of
$60,000, fiscal year 2008-09 funds are budgeted in various Departments that utilize
display advertising, classified advertising, and legal advertising.
MES THOMPSON, CITY CLERK DAVID H. REA NAGER
Attachments:
Advertising Contract Addendum
000m
Thebesert5un
thedesertsun . com
This Advertising contract addendum is entered into by the City of Palm Springs
and The Desert Sun as of August 1, 2008. This addendum is effective August 1,
2008 through July 31, 2009.
The following current City of Palm Springs [CIT009] accounts are included in this
contract: 200236, 200584, 200786,203016, 211319, 212040, 212271, 212656,
213887, 214072.
This Advertising contract addendum becomes Paragraph 24 of the Advertising
Contract between the City of Palm Springs and The Desert Sun.
Paragraph 1 of the Advertising Contract is amended to read:
1. The Advertiser shall purchase a minimum of$60,000 per year at the rates and
discounts as indicated below: [Rates are based on a $60,000 annual revenue
commitment.] For services not listed, the rate shall be set forth at the rates
indicated on the Company's (net, gross) rate schedule which is incorporated
herein by reference and made part of this Agreement, subject to the rate revision
provision of paragraph 4 below. The Advertiser acknowledges receipt of a copy
of Company's rate schedule. In the event that any terms or conditions of the rate
schedule conflict with the terms of the Agreement, the terms of the Agreement
shall govern.
Display Advertising Rates
Monday-Thursday $36.75/ inch
Friday-Sunday $44.50/ inch
Regular rate card discounts apply.
Color
Courtesy Color Rates for any ad sized over 63 column inches or larger
Full color $800/ ad
Two color $550/ ad
One color $450/ ad
Courtesy Color Rates for any ad size less than 63 column inches
Full color $14/ inch
Two color $11/ inch
One color $ 8/ inch
1- DOWS
Online Advertising
Palm Springs Section Sponsorship Leader Board (728x90 pixels) $75/ month
This advertising position targets viewers searching for information on the Palm
Springs page of mydesert.com with an estimated 5,000 impressions per month
Legal Advertising Rates 820 / line
Classified Advertising Rates
Recruitment Line Rate $3 / line
30 day CareerBuilder.com Job Posting must be purchased in conjunction with
each recruitment ad for $226
Classified Public Notice Line Rate 750 / line
Palm Springs Sun Newsletter
The Palm Springs Sun covers both non-subscribers and Desert Sun home
delivery subscribers each week on Friday. A total of 20,000 copies are delivered.
4 page spread, including Full color
3 issues per year $3000/ issue
Over run option: 5000 copies $750
Production fee $300/ issue
Includes 4 hours of production. Articles, photos and all other information would
be provided by City of Palm Springs.
Additional production time $75/ hour
Deadline for each issue would be 10 business days prior to publication
REBATE INCENTIVE
If City of Palm Springs meets or exceeds annual revenue of$75,000, The Desert
Sun will rebate back to City of Palm Springs 5% of incremental advertising
dollars over $75,000. Such rebate will be in the form of a credit for advertising on
the following month's invoice.
TERMS AND CONDITIONS
1) No other discounts apply.
2) If, at contract expiration, City of Palm Springs has spent fewer than
$60,000, City of Palm Springs will be re-billed at applicable rate card
rates, or for the difference between what was spent and the 1000" contract
level, whichever is less.
-2-
Paragraph 2 of the Advertising Contract is amended to read:
2. The terms of the Agreement shall be for a period of one (1) year commencing
on August 1, 2008 through July 31, 2009.
ACCEPTED
CITY or PALM SPRINGS THE DESERT SUN
David H. Ready, City Manager Advertising Director
ATTEST:
Sherri Maurer, Controller
James Thompson, City Clerk
Rich Ramraff, Publisher
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