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HomeMy WebLinkAbout05/05/2015 10 Yakima Air Terminal Marketing and Promotion Agreement with The Field Group, Inc.ITEM TITLE: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 10. For Meeting of: May 5, 2015 Resolution authorizing an agreement with The Field Group, Inc. and City of Yakima for marketing and promotion of Yakima Air Terminal SUBMITTED BY: Sean Hawkins, Economic Development Manager, 575-6274 SUMMARY EXPLANATION: In the fall of 2014, the City of Yakima was awarded a $290,000 Small Community Air Service Development Grant from the US Department of Department to support expansion of existing air service at the Yakima Air Terminal. The grant requires the City to match the funds with an equal match of $290,000 of their own funds over the course of two years. In December, the Yakima City Council included $270,000 of the funds in the 2015 City Budget. In April of 2015, Alaska Airlines announced the addition of a fourth daily flight from YKM to SEA beginning in October of 2015. To aid in the execution of the FLY YKM local marketing program, the City issued an RFP for marketing services on March 27 per the federal grant requirements. Two local firms applied to perform the work and the Field Group was selected by a scoring committee of five people to perform the work. City of Yakima staff and the Field Group will meet with Alaska Airlines on May 7 to begin crafting the FLY YKM marketing strategy to promote the first flight with a combination of both English and Spanish messages on radio, television and in print. Resolution: X Ordinance: Other (Specify): Contract: Contract Term: Start Date: End Date: Item Budgeted: Yes Amount: 270,000 Funding Source/Fiscal Impact: Strategic Priority: Economic Development Insurance Required? No Mail to: Phone: APPROVED FOR SUBMITTAL: RECOMMENDATION: City Manager The Council Economic Development Committee reviewed this project at its March 26, 2015 meeting and the Council members (Cawley & Coffey, Dittmar was absent) recommended it be brought to the full Council at the May 5 Council meeting for consideration. ATTACHMENTS: Description 1-11 Field Group Resolution 1-11 Field Group Agreement Upload Date 4/27/2015 4/2!/2015 Type Cover Memo Cover Memo RESOLUTION NO. R -2015- A RESOLUTION authorizing the City manager to execute and administer an agreement between The Field Group, Inc. and City of Yakima for marketing and promotion of Yakima Air Terminal. WHEREAS, the City operates a public use municipal airport ("Yakima Air Terminal") which provides public and commercial airport service from and to south central Washington; and WHEREAS, City desires to retain a qualified provider of marketing services to enhance and promote commercial airport services at the Yakima Air Terminal; and WHEREAS, City previously solicited proposals pursuant to Request for Proposal (RFP) No. 11519P for development of the Yakima Air Terminal's Air Service Marketing Plan, and the proposal submitted by The Field Group was found and determined to be the best proposal submitted by a responsive proponent; and WHEREAS, the parties have negotiated an Agreement setting forth the parties' rights and obligations with respect to the air service marketing plan; and WHEREAS, Contractor has experience and expertise regarding said services, and agrees to perform these services for the City under the terms and conditions set forth in this Agreement. WHEREAS, the City Council finds and determines that approval of such Agreement is in the best interest of residents of the City of Yakima, and will promote economic development and the general health, safety and welfare; no, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute and administer "Agreement for Marketing Services -Yakima Air Terminal," by and between the City of Yakima and The Field Group, Inc., which Agreement is attached hereto and incorporated as Exhibit "A" herein by this reference. ADOPTED BY THE CITY COUNCIL this 51h day of May, 2015. ATTEST: Micah Cawley, Mayor Sonya Claar Tee, City Clerk AGREEMENT FOR MARKETING SERVICES — YAKIMA AIR TERMINAL (The Field Group, Inc.) THIS SERVICE AGREEMENT, hereinafter "Agreement", is made and entered into by and between the City of Yakima (a Washington State municipal corporation, hereinafter the "City"), and The Field Group, Inc. (hereinafter "Contractor"). WHEREAS, City is a municipal corporation of the State of Washington, with City Hall located at 129 North 1St Street, Yakima, Washington 98901; and WHEREAS, Contractor is a corporation duly organized and existing under the laws of the State of Washington with offices at 103 North 3rd Street, Yakima, Washington 98901; and WHEREAS, the City operates a public use municipal airport ("Yakima Air Terminal") which provides public and commercial airport service from and to south central Washington; and WHEREAS, City desires to retain a qualified provider of marketing services to enhance and promote commercial airport services at the Yakima Air Terminal; and WHEREAS, City previously solicited proposals pursuant to Request for Proposal (RFP) No. 11519P for development of the Yakima Air Terminal's Air Service Marketing Plan, and the proposal submitted by The Field Group was found and determined to be the best proposal submitted by a responsive proponent; and WHEREAS, the parties have negotiated this Agreement setting forth the parties' rights and obligations with respect to the air service marketing plan; and WHEREAS, Contractor has experience and expertise regarding said services, and agrees to perform these services for the City under the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises, and agreements set forth herein, it is agreed by and between the City and the Contractor as follows: 1. Services and Compensation. The Contractor shall provide Air Service Marketing Services for the City and Yakima Air Terminal in accordance with and as described in Contractor's Response to RFP No. 11519P, hereinafter the "Proposal," which is incorporated herein by this reference, which services include, by reference in summary, research demographics/coverage areas of all traditional media, creation of media schedule, negotiation of advertising rates, placement of advertisements with media, coordination of creative, secure added value, and audit media each month for advertisement placement. Further description of services and rates of compensation for services rendered shall be as set forth below: Local Advertising Buys: Cost plus 10% Contractor will place advertisements promoting the Yakima Air Terminal air service with local and regional media, including but not limited to, newspaper, magazine, radio, Page 1 of 5 television, tourism promotion materials, and other forms of media as approved by City. The "advertising buy percentage rate" payable to Contractor by City shall be ten percent (10%) of the cost of placement of advertisement with the media. By way of illustration and for the avoidance of confusion, if media buys are purchased at a gross rate of 15%, five percent (5%) will be credited against City's monthly client invoice. The advertisements to be placed by Contractor will generally be produced and made ready for placement by third parties. In the event City and Contractor agree that Contractor shall produce any advertisement(s), the parties shall enter into a separate professional service agreement for such specific advertisement(s) using the rates for Graphic Design, Administration and travel set forth below. Such separate professional service agreement shall be appended to this Agreement for reference. Hourly Cost for Graphic Design Services: $120 Graphic design services may include social media posts/ads, event collateral, and nontraditional advertising elements. All additional graphic design services will be set forth in a separate professional services agreement negotiated prior to beginning the project with a "Not to Exceed" budget established and set forth in such agreement. Hourly Cost for Project Administration Services: $120 This service line also accounts for strategy, consultation, and account maintenance outside the scope of buying traditional media. Both the Social Media Marketing and the Project Consulting fall under this umbrella. Travel Time Hourly Rate: $60-$120 Field Group will charge $60/hour for travel time and $120/hour for meeting time upon reaching the destination for one staff member. Additional staff sent at the request of the Contractor will not be billed to the client. Additional staff attending at the request of the City will be billed according to the schedule outlined above. No more than eight hours will be billed in any one 24-hour period. Mileage will be billed to the client at the federally -approved mileage rate. Incidental Costs: Reimbursement of Actual Cost Incidental costs are those costs incurred by Contractor in the performance of the work described above, and include printing, shipping, photography, videography, product or miscellaneous purchases made by Contractor on behalf of City in the performance of the Contractor's scope of work and as authorized by City prior to Contractor incurring the cost. Request for reimbursement of costs shall be submitted with Contractor's monthly invoice and shall be supported by receipts or other documentation deemed necessary or appropriate by City. Telephone charges, computer charges, in-house reproduction charges, first class postage, and FAX charges are not included in incidental costs, but are considered included in the Schedule of Specific Hourly Billing Rates and Local Advertising Buy Rates set forth above. 2. Assignment. This Agreement, or any interest herein, or claim hereunder, shall not be assigned or transferred in whole or in part by the Contractor to any other person or entity without the prior written consent of the City. In the event that such prior written consent to an assignment is granted, then the assignee shall assume all duties, obligations, and liabilities of Contractor as stated herein. Page 2 of 5 3. Contract Documents. The City of Yakima RFP No. 11226P, the Contractor's response (to the extent consistent with the City's documents), and any addenda issued are hereby incorporated herein by this reference. 4. Integration. This written document, inclusive of the contract documents listed above, constitutes the entire agreement between the parties. No changes or additions to this Agreement shall be valid or binding upon either party unless such change or addition be in writing and executed by both parties. 5. Term. The period of this contract shall be for a period of one (1) year from its effective date. The City may, at its option, extend the contract on a year to year basis for up to four (4) additional one- year terms, provided, however, that either party may at any time during the life of this contract, or any extension thereof, terminate this contract by giving thirty (30) days notice in writing to the other party of its intention to cancel. Contract extensions shall be automatic, and shall go into effect without written confirmation, unless the City provides advance notice of the intention to not renew. 6. Non Discrimination. During the performance of this Agreement, Contractor shall not discriminate in violation of any applicable federal, state and/or local law or regulation on the basis of race, color, sex, religion, national origin, creed, age, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, political affiliation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. This provision shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the provision of services under this Agreement. 7. The Americans with Disabilities Act. With regard to the services to be performed pursuant to this Agreement, Contractor agrees to comply with the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq. (ADA) and its implementing regulations, and Washington State's anti -discrimination law as contained in RCW Chapter 49.60 and its implementing regulations. The ADA provides comprehensive civil rights to individuals with disabilities in the area of employment, public accommodations, state and local government services, and telecommunications. 8. Termination — Convenience. The City may terminate this Agreement in whole or in part whenever the City determines, in its sole discretion that such termination is in the interests of the City. Whenever the Agreement is terminated in accordance with this paragraph, the Contractor shall be entitled to payment for actual work performed at unit contract prices for completed items of work. An equitable adjustment in the Agreement price for partially completed items of work will be made, but such adjustment shall not include provision for loss of anticipated profit on deleted or uncompleted work. Termination of this Agreement by the City at any time during the term, whether for default or convenience, shall not constitute a breach of Agreement by the City. 9. Termination — Default. If the Contractor defaults by failing to perform any of the obligations of the Agreement or becomes insolvent or is declared bankrupt or commits any act of bankruptcy or insolvency or makes an assignment for the benefit of creditors, the City may, by depositing written notice to Page 3 of 5 the Contractor in the U.S. mail, postage prepaid, terminate the Agreement, and at the City's option, obtain performance of the work elsewhere. If the Agreement is terminated for default, the Contractor shall not be entitled to receive any further payments under the Agreement until all work called for has been fully performed. Any extra cost or damage to the City resulting from such default(s) shall be deducted from any money due or coming due to the Contractor. The Contractor shall bear any extra expenses incurred by the City in completing the work, including all increased costs for completing the work, and all damage sustained, or which may be sustained by the City by reason of such default. If a notice of termination for default has been issued and it is later determined for any reason that the Contractor was not in default, the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to the Termination for Public Convenience paragraph hereof. 10. Defense and Indemnity Agreement. The vendor agrees to defend, indemnify and save harmless the City, its appointed and elective officers and employees, from and against all loss or expense, including but not limited to judgments, settlements, attorney's fees and costs by reason of any and all claims and demands upon the City, its elected or appointed officials or employees for damages because of personal or bodily injury, including death at any time resulting there from, sustained by any person or persons and on account to damage to property including loss of use thereof, whether such injury to persons or damage to property is due to the negligence of the Contractor, his/her subcontractors, it successor or assigns, or its or their agent, servants, or employees, The City, its appointed or elected officers, employees or their agents, except only such injury or damage as shall have been occasioned by the sole negligence of the City, its appointed or elected officials or employees. It is further provided that no liability shall attach to the City by reason of entering into this contract, except as expressly provided herein. 11. Insurance. At all times during performance of the services, Contractor shall secure and maintain in effect insurance to protect the City and the Contractor from and against all claims, damages, losses, and expenses arising out of or resulting from the performance of this Contract. Contractor shall provide and maintain in force insurance in limits no less than that stated below, as applicable. The City reserves the rights to require higher limits should it deem it necessary in the best interest of the public. If Contractor carries higher coverage limits than the limits stated below, such higher limits shall be shown on the Certificate of Insurance and Endorsements and City shall be named as an additional insured for such higher limits. Commercial General Liability Insurance. Before this Agreement is fully executed by the parties, Contractor shall provide the City with a certificate of insurance as proof of commercial liability insurance and commercial umbrella liability insurance with a total liability limit of the limits required in the policy, subject to minimum limits of Two Million Dollars ($2,000,000.00) per occurrence combined single limit bodily injury and property damage, and Two Million Dollars ($2,000,000.00) general aggregate. The certificate shall clearly state who the provider is, the coverage amount, the policy number, and when the policy and provisions provided are in effect. Said policy shall be in effect for the duration of this Agreement. The policy shall name the City, its elected officials, officers, agents, employees, and volunteers as additional insureds. The insured shall not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice. The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. Page 4 of 5 12. Severability If any term or condition of this contract or the application thereof to any person(s) or circumstances is held invalid, such invalidity shall not affect other terms, conditions or applications which can be given effect without the invalid term, condition or application. To this end, the terms and conditions of this contract are declared severable. 13. Survival. Any provision of this Agreement that imposes an obligation after termination or expiration of this Agreement shall survive the term or expiration of this agreement and shall be binding on the parties to this Agreement. 14. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. 15. Venue. The venue for any action to enforce or interpret this Agreement shall lie in the Superior Court of Washington for Yakima County, Washington. CITY OF YAKIMA THE FIELD GROUP, INC. By: By: Tony O'Rourke, City Manager Jack Beeson, President Date: , 2015 Date: ,2015 ATTEST: By: Sonya Claar Tee Page 5 of 5