R-1215 - 11/27/2012 - MARKETING - Resolutions Supporting DocumentsITEM 8.1).
AGENDA ITEM
Regular Board of Trustees Meeting
of
November 27, 2012
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SUBJECT: Hotels of Oak Brook 2013 Retainer Fee for Marketing Services
FROM: David J. Niemeyer, Village Manager
BUDGET SOURCE/BUDGET IMPACT: $190,200/Hotel Tax Fund (Program 171- 73600)
RECOMMENDED MOTION: Motion to approve Resolution 2012- MRKTG- AG- EXI -R-
1215, a resolution approving and authorizing the execution of a Retainer Fee Services
Agreement for Advertising and Marketing Services by and between the Village of Oak
Brook and Point B Communications as recommended by the Oak Brook Hotel, Convention
and Visitors Committee and authorize the Village Manager to execute the proposed 2013
Hotels of Oak Brook Strategy and Marketing Plan.
Backeround/History:
At its November 14 th meeting, the Oak Brook Hotel, Convention and Visitors Committee was
presented and discussed a new 2013 marketing campaign. The Committee would like to make a
formal recommendation to accept Point B Communications for marketing the Hotels of Oak
Brook for 2013 as well as their 2013 concept plan.
The agreement provides for a monthly retainer fee of $2,100.00 to be paid to Point B
Communications for all coordination services, conference time, travel, strategic planning, media
research, marketing plan development, consultation, etc. This fee is $1,000.00 less monthly than
2011 retainer fee. These services are not insignificant given the time that is spent executing the
marketing tactics, coordinating with the marketing subcommittee, monitoring the success of
projects and responding accordingly, obtaining various approvals, etc. Costs for creative ad
production by Point B Communications are billed separately as a part of each applicable job. The
agreement with Point B Communications to execute the Hotels of Oak Brook 2013 marketing
Plan is $165,000 and the cost for the retainer fee is $25,200. Thus, the total agreement with
Point B is $190,200 for 2013. The funds for this program come from the 1% room tax on
overnight hotel stays in Oak Brook.
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A copy of the proposed 2013 Marketing Plan will be distributed at Tuesday's Board meeting and
will be discussed under the 2013 Hotel Marketing Plan Agenda Item, which is under Active
Business, and where Point B Communications will be giving their presentation.
Recommendation:
Staff recommends that the Board approve Resolution R -1215 authorizing the execution of a
Retainer Fee Services Agreement for Advertising and Marketing Services with Point B
Communications as recommended by the Oak Brook Hotel, Convention and Visitors Committee
and authorize the Village Manager to execute the proposed 2013 Hotels of Oak Brook Strategy
and Marketing Plan.
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RESOLUTION 2012 - MRKTG- AG -EX1 -R -1215
A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF
A RETAINER FEE SERVICES AGREEMENT FOR ADVERTISING AND MARKETING SERVICES
BY AND BETWEEN THE VILLAGE OF OAK BROOK AND POINT B COMMUNICATIONS
WHEREAS, the Village issued a request for proposal in September of 2012 to purchase
marketing, advertising, and promotion services to market the hotels, restaurants, entertainment venues,
and retail sales facilities in the Village ( "RFP'); and
WHEREAS, the Village received two responsive and responsible proposals in response to its
RFP and entered into a one -year contract with Point B Communications ( "Point B ") for the Village to
purchase, and Point B to provide, advertising, marketing, and promotion services to the Village
( "Agreement'); and
WHEREAS, pursuant to the Agreement, the Village must ratify a marketing and retainer fee
agreement with Point B each year during the term of the Agreement to approve each year's expenditures;
and
WHEREAS, the Village and Point B desire to execute a marketing and retainer fee agreement for
2013 ( "Marketing Agreement'), attached hereto as Exhibit A; and
WHEREAS, the President and Board of Trustees have determined that it is in the best interests of
the Village to enter into the Marketing Agreement in a final form approved by the Village Manager and the
Village Attorney;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Approval of the Agreement. The President and Board of Trustees hereby
approve the Agreement by and between the Village and Point B in a form acceptable to the Village
Manager and the Village Attorney.
Section 3: Authorization and Execution of the Agreement. The Village President and Village
Clerk shall be, and hereby are, authorized to execute the final Agreement on behalf of the Village after
review and approval of the final form of the Agreement by the Village Manager and the Village Attorney.
Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and
approval in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
Ayes:
APPROVED THIS 27'" day of November, 2012
Gopal G. Lalmalani
Village President
PASSED THIS 27'h day of November, 2012
ATTEST:
Charlotte K. Pruss
Village Clerk
EXHIBIT A
#11827320_vl
AGREEMENT FOR ADVERTISING & MARKETING
"RETAINER FEE" SERVICES
BETWEEN THE VILLAGE OF OAK BROOK AND
POINT B COMMUNICATIONS
This agreement ( "Agreement ") is made as of this 27`" day of November 2012 by and between the
Village of Oak Brook ( "Village ") and Point B Communications ( "Agency').
WHEREAS, the Village contains a large number of hotels, restaurants, entertainment venues and retail
sales facilities (collectively the "Attractions'); and
WHEREAS, the Village desires to advertise, market and promote the Attractions to the general public;
and
WHEREAS, the Village desires to engage the Agency and the Agency desires to be engaged by the
Village to advertise, market and promote the Attractions pursuant to the terms of this Agreement; and
NOW THEREFORE in consideration of the mutual covenants and conditions condtained herein and
other good and valuable consideration, the receipt of sufficiency of which are hereby acknowledged,
the Parties agree as follows:
1. The foregoing preambles are restated and incorporated herein by reference as though fully set forth
herein.
2. Monthly Retainer: The following monthly retainer fees shall apply for the Village under this
Agreement: $2,100.00 per month beginning January 1, 2013 through December 31, 2013.
3. Agency Services: The following are the services to be provided by the Agency pursuant to the
terms of this Agreement.
a. Account Management Services: The Agency shall provide a designated team of marketing
professionals ( "Account Team ") to ensure sound strategic direction and general account
management including on -going research (not including the utilization of outside research
firm), planning, strategy, consultation, monitoring of business conditions and competitive set
as well as the development of an integrated management services include continual
evaluation of marketing initiatives, preparation of a semi - annual findings report plus
modifying plans based on the findings report, as well as needs and market condition
changes. The Account Team shall also serve as the Village's primary day -to -day liaison to
the Agency for all communication and reporting from meetings, conference calls as well as
weekly and /or monthly status reports. In addition the Account Team shall provide
coordination of files and miscellaneous requests from Hotels of Oak Brook partners.
b. Analyses and Assessment: The Agency shall thoroughly familiarize itself with the Village's
products and /or services, their respective markets, competitors, business environment,
overall marketing evaluation and Village needs assessment.
c. Research and Strategic Planning: The Agency shall devote sufficient time and attention to
properly evaluate the Village's needs, determine strategic direction and to summarize and
convey findings and recommendations to the Village. The Agency shall also determine
market penetration, segment reach and distribution vehicles. This does not include the
utilization of outside research firms, if required, or requested by the Village. Advance written
approval shall be obtained from the Village before using any outside research support
resources.
d. Media Management:
Research: All media research fees for all retainer fee agreements are waived and
considered fee inclusive. Research results for all media evaluations are reported by
summary report that includes the Agency's recommendation. Media research is
available for all primary market segments and other niche markets.
2. Planning: The Agency shall develop a comprehensive annual media plan for the Village
and update the plan on an ongoing basis. All media plans shall be designed to conform
to the budget of the Village as outlined. All media selected for purchase shall be
negotiated at the lowest possible rate for each participating project.
3. Call Screening: The Agency shall accept all media calls on behalf of the Village and
report any qualified media opportunities on a regular basis.
e. Accounting: The Agency shall provide accounting services for retainer, project and media
billing and reconciliation. The Agency shall serve as a liaison between media and production
vendors for accurate billing. This includes fielding vendor inquiries and any Village billing
questions.
f. Executive Staff Consultation: The Agency's Principal and Executive Creative Director shall
provide time as necessary for planning and strategic creative development in collaboration
with the Account Team and the Village.
4. Agency of Record: The Agency shall be named the advertising agency of record for the Village. As
the agency of record, the Agency shall have the right and responsibility to execute advertising and
marketing funds established, as approved by the Village. The Agency's responsibilities include, but
are limited to, advertising, direct marketing, creative materials production, in -house marketing,
promotional signage and merchandising.
5. Confidentiality: The Agency shall not at any time, including the period following the termination of
this Agreement, reveal, use or make available to any other individual or organization confidential
information regarding the Village's customers, methods of operation, marketing plan, etc. without
the written consent of the Village.
6. Project Costs: Final costs shall be shown when the invoice is rendered. All charges for project
services shall be invoiced progressively to the Village on a monthly basis as services are rendered
for each job.
7. Requested Revisions: The Village shall be responsible for making additional payments, if any, for
changes from original job assignments as directed by the Village. However, no additional payments
shall be made for any revisions required due to an Agency error or omission.
8. Media Placement: The Agency shall execute media placement for the Village at the lowest available
net rates.
9. Project Cancellation: The Village reserves the right at any time and in its absolute discretion to
terminate the services of the Agency upon thirty (30) days prior written notice to the Agency.
10. External Costs: Out -of- pocket expenses such as printing, postage, lettershop, illustrations,
photography, shipping, color and digital outputs, messenger service, supplies and materials,
presentation boards and travel shall be billed as they are incurred. Travel expenses are defined as
mileage, ground transportation, parking, food and beverage. The Village shall be notified of any
outside services that require partial or full payment such as photography, postage, research
projects or others as required by vendor prior to the initiation of the project.
11. Ownership of Materials: All materials produced by the Agency or commissioned by the Village
under this Agreement, shall upon full payment of all outstanding charges, be the property of the
Village. At such time, the Village shall have exclusive ownership of those materials. It is understood
that work commissioned by the Agency from third party vendors including, but not limited to,
photographers and illustrators, is subject to different ownership and usage rights which shall be
determined on a case -by -case basis.
12. Term of Agreement: This Agreement shall be in effect for twelve months beginning January 1,
2013. This Agreement is subject to cancellation notice as outlined in paragraph nine (9) above.
13. Statutory Provisions: The Agency shall comply with the provisions of the Employment of Illinois
Workers on Public Works Act, 30 ILCS 570/0.01, et seq.; the Drug Free Workplace Act, 30 ILCS
590/1, et seq.; the Human Rights Act, 775 ILSC 5/1 -101, et seq.; and the Prevailing Wage Act, 820
ILCS 130/0.01, et seq.; the Veterans Preference Act, 330 ILCS 55.0.01, et seq.; but nothing herein
shall require the application of those Acts unless required by state law.
14. Litigation/Venue. All disputes between the Village and the Agency shall, at the election of either
party, be the subject of a civil suit. Venue for any such suit shall lie in the Circuit Court of DuPage
County, Illinois.
15. Notices: Any and all notices, demands, requires and other communication necessary or desirable to
be served under this Agreement shall be in writing and shall be either personally delivered or
delivered to the Party or the Party's attorney by (i) facsimile transmission, (ii) prepaid same -day or
overnight delivery service (such as Federal Express or UPS), with proof of delivery requested, or
(iii) United States registered or certified mail, return receipt requested, postage prepaid, in each
case addressed as follows:
To Village: Village of Oak Brook
Attn: Village Manager
1200 Oak Brook Road
Oak Brook, Illinois 60523
Fax: 630 - 360 -5027
To Agency: Point B Communications
750 North Orleans Suite 550
Chicago, Illinois 60654
Fax: 312- 867 -7751
Or such other address or addresses or to such other party when any party entitled to receive notice
hereunder may designate for itself from time to time in a written notice served upon the other
parties hereto in accordance herewith. Any notice sent as hereinabove provided shall be deemed to
have been received (i) on the date it is personally delivered, if delivered in person, (ii) on the date it
is electronically transmitted if delivered by facsimile transmission, (iii) on the first business day after
the date it is deposited with the overnight courier service, if delivered by overnight courier service,
or
(iv) on the third (3`") business day following the postmark date which it bears, if delivered by United
States registered or certified mail, return receipt requested, postage prepaid.
16. Miscellaneous: The provisions which follow shall apply generally to the obligations of the Parties
under this Agreement:
a. This Agreement may not be amended except pursuant to a written instrument signed by
both parties.
b. This Agreement is binding upon the successors and assigns of the Parties.
c. The waiver by either Party of any breach or violation of any provision of this Agreement shall
not be deemed to be a waiver or a continuing waiver of any subsequent breach or violation
of the same or any other provision of this Agreement.
d. Each of the Parties to this Agreement represents and warrants that it has the full right,
power, legal capacity and authority to enter into and perform its respective obligations
hereunder and that such obligations shall be binding upon such party without the
requirement of the approval or consent of any other person or entity in connection herewith.
e. This Agreement contains the entire understanding between the Parties with respect to the
subject matter herein. There are no representations, agreements, or understandings
(whether oral or written) between or among the parties relating to the subject matter of this
Agreement, which are not fully expressed herein.
f. This Agreement creates no rights, title or interest in any person or entity whatsoever
(whether under a third party beneficiary theory or otherwise) other than the Parties.
g. This Agreement may be executed in counterparts. Facsimile signatures shall be sufficient.
h. Under no circumstances shall this Agreement be construed as one of agency, partnership,
joint venture or employment between the Parties. The Parties shall each be solely
responsible for the conduct of their respective officers, employees and agents in connection
with the performance of their obligations under this Agreement.
Village of Oak Brook
By:
David Niemeyer, Village Manager
Point B Communications
By:
Robert Grusin, President