|
||||
|
Date
|
February 25, 2008
|
||
|
Agenda
Item No. 34 Roll
Call No. 08- Communication No. 08-090
Submitted by: Donald
M. Tripp, Parks
and Recreation Director |
||||
AGENDA HEADING:
Approval of
sponsorship agreement amendment with Toyota of Des Moines to support park and
recreation
programs.
SYNOPSIS:
Approval
of amendment to the Toyota of Des Moines Sponsorship Agreement allowing for an
increase in the cash and Value-in-Kind (VIK) for support of various Park and
Recreation Department programs in return for expanded market exposure for
FISCAL IMPACT:
Amount: $58,500
(Revenue)
The amendment
reflects a cash revenue increase of $15,000 and a provision of six (6)
additional hybrid vehicles through free one-year leases valued at $43,500
(VIK), for a total financial value increase of $58,500. Total value of the amended agreement will be
$141,000, including $64,500 cash revenue and use of twelve truck/hybrid
vehicles through free one-year leases, valued at $76,500, which replace
existing fleet vehicles and reduce expense of mileage reimbursement to Park and
Recreation Department employees.
Intemark, Inc.
will receive 10% commission for securing and negotiating the amendment ($5,850)
and the Toyota of Des Moines Sponsorship Agreement ($8,250), a total of
$14,100.
The City’s net
financial benefit from the amendment is $52,650 ($126,900 for the resulting
overall agreement).
Funding Source: 2008 Operating Budget, Park and Recreation
Department, page 224, Marketing GE001 PKS011200.
ADDITIONAL INFORMATION:
On October 24,
2005 by Roll Call Number 05-2598, the
City Council approved an agreement with Intemark, Inc. (
On
April 23, 2007 by Roll Call Number 07-821, the Des Moines City Council entered
into a Sponsorship Agreement with Charles Gabus Motors, Inc. d/b/a Toyota of
Des Moines with a total annual value of
$82,500, with a one-year renewal option.
The total value reflected a 60/40 split of cash ($49,500) and VIK
($33,000 free lease value of six hybrid/truck vehicles to replace existing Park
and Recreation Department fleet vehicles).
The Park and Recreation Department worked through the disposition of the
existing vehicle inventory with the City’s Fleet Management Team, which
reallocated and/or disposed of vehicles according to the overall fleet needs of
the City.
In return for this partnership, Toyota of Des Moines
receives: “Presenting Sponsor” status for the Nitefall on the River concert
series; rights to showcase vehicles at various Park and Recreation Department
special events and athletic tournaments; on-site banners at the James W. Cownie
Baseball and Soccer Complexes, a static message at the spring and fall Free
Flicks movie series; and opportunities to display vehicles at various park
locations throughout the term of the agreement.
Additionally, a special decal (design approved by the City Manager) is
placed on the free leased vehicles in recognition of this partnership.
The
amendment to the Toyota of Des Moines Sponsorship Agreement provides
“Presenting Sponsor” status of
The Toyota
of Des Moines Sponsorship Agreement
allows the Park and Recreation Department to enhance existing programs and save
money in the following ways:
- Heightened talent credentials (with associated
higher costs) of entertainment booked for Nitefall concerts.
- Contribution to marketing expenses of Park and
Recreation Department programs and services.
- Reduced fleet maintenance costs due to the new
free leased vehicles.
This amendment
to the agreement provides for six additional hybrids that will be used to
further temporarily reduce the City’s fleet maintenance costs. One of these hybrids will be used by multiple
members of recreation staff as a pooled vehicle, thus saving mileage
reimbursement payments now being made to these employees in return for use of
their personal vehicles for work purposes.
The use of this vehicle will also contribute to recognition and
additional exposure of Toyota of Des Moines, as it will be on-site during
evenings and weekends when tournament play occurs at department athletic
facilities (
The remaining
five hybrids being added through the amendment shall be used to reduce/enhance
the City’s fleet operations by assigning: two hybrids to the Park and
Recreation Department to replace two existing fleet vehicles; two hybrids to
the Fleet Services for use in other areas within the City; and one hybrid to
support Blank Park Zoo operations. For
the latter, Toyota of Des Moines will receive marketing value associated with
sponsorship of the Zoo’s Rosie the Elephant exhibit. Vehicles may be reassigned
from time to time if the need should arise.
Upon approval of
this amendment by the City Council, a staff member assigned to each of the
vehicles will need to sign a Vehicle Agreement with
PREVIOUS COUNCIL ACTION(S):
Date: April 23, 2007
Roll Call No. 07-821
Action: Sponsorship
Agreement with Toyota of Des Moines to support Park and Recreation
Programs. (Council
Communication No. 07-227) Moved by Coleman to adopt. Motion Carried 7-0.
Date: October 24, 2005
Roll Call Number:
05-2598
Action: Sponsorship Marketing Agreement with
Intemark, Inc. (Minneapolis, MN) to secure partnerships of cash and “in kind”
to support park and recreation programs and facilities. (Council
Communication No. 05-587) Moved by Hensley to adopt. Motion Carried 7-0.
BOARD/COMMISSION ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Renewal of new
or amended Sponsorship Agreement.