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101397 EDA Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #10 October 13, 1997 Agenda #10 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Pat La Vine Norby Commissioner Gerald Otten 1. Call to Order 2. Roll Call 3. Approval of Minutes of September 22, 1997 4. Resolution Approving Proposal by the McNulty Group, Ltd. d/b/a/Planet Publications, Inc. to Produce 1997-98 City of New Hope Resident Guide/ Business Directory (Improvement Project No. 609) 5. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes September 22, 1997 Meeting #9 CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 7:51 p.m, ROLL CALL Present: Enck, Cassen, Collier, Norby Otten Staff Present: Sondrall, Donahue, Leone, McDonald, Olson, Desautels APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Norby, to approve the EDA minutes of September 8, 1997. Voting in favor: All. Motion carried. IMP. PROJECT 609 President Enck introduced for discussion Item 4, Discussion Regarding Item 4 Resident Guide and Business Directory PromOtion (Improvement Project No. 609). Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, explained that the City has been working with local businesses to develop a cooperative business promotion as an alternative to the Shop Neighborly New Hope Campaign. The project is a combined resident and business guide which would be distributed city-wide. Ms. Jacquie Desautels, Management Intern, illustrated a sample publication from the cities of Plymouth and St. Louis Park. She reviewed the components of the directory as well as proposed costs. The total cost of the project is approximately $30,000 with the City contributing 50% and the business community contributing the other 50% through the purchase of advertisements. After several questions, the Council granted concept approval. Ms. Desautels advised the EDA of staff's intentions to finalize the details and present a contract to the EDA at a future meeting. ADJOURNMENT Motion was made by Commissioner Collier, seconded by Commissioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:20 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA September 22, 1997 Page 1 ~ EDA Originating Department Approved for Agenda ED~genda Section City Manager 10-13-97 Kirk McDonald Item No. ]57: Management Assistant By: 4 RESOLUTION APPROVING PROPOSAL BY THE MCNULTY GROUP, LTD. d/b/a/ PLANET PUBLICATIONS TO PRODUCE 1997-98 CITY OF NEW HOPE RESIDENT GUIDE/BUSINESS DIRECTORY (IMPROVEMENT PROJECT NO. 609) The enclosed resolution approves the proposal submitted by Planet Publications to produce a 1997/98 City of New Hope Resident Guide/Business Directory. Susan McNulty from Planet Publications will be present at the meeting to answer any questions that the EDA may have and several New Hope business owners may also be present. The EDA gave general concept approval to this project at the September 22 EDA meeting. The idea for the promotion is the development of a New Hope Resident Guide and Business Directory, which effectively combines two projects into one. City staff have long wanted to publish a guide for residents informing them of City services so that a variety of City information could be provided under one cover. The business community feels that some type of quality business directory listing businesses with the potential for advertisements would be beneficial. The result will be a quality city/business publication that would provide information on the City and also serve as a business directory by indexing local retail businesses and their location on a fold-out map and through advertisements. Many cities are currently utilizing this concept and the vendor that the committee would like to hire for the guide/directory, Planet Publications, has published similar city/business guides in Plymouth and St. Louis Park. The idea was presented to and approved by the businesses serving on a sub-committee earlier this fall. The total cost for the project is approximately $30,000, with the City contributing about one-half of that amount and the business community contributing the other one-half through the purchase of advertisements. There are adequate funds budgeted in the 1997/98 EDA budget to cover this expense. (cont'd.) Review: Administration: Finance: RFA-O01 ~ Request for Action Page 2 10-13-97 The major components of the contract are described in detail in the attached written EDA report dated September 22. These include: 1. Every New Hope retail/commercial/service business will be contacted regarding placing an advertisement or being listed. The original ad rates were reduced to encourage greater business participation. Businesses that purchase an advertisement will be listed at no charge; businesses that do not want to advertise will have the option to purchase a listing for $45.00 2. A four-color, fold-out map of the City will be stitched in the center of the book and will identify City facilities, parks, schools, churches, streets and shopping centers. An "Index of Advertisers" will be placed on the back of the map and will list every advertiser by name, address, phone number, and a map reference location. 3. The City will send out an initial letter to all businesses advertising the promotion, coordinate a kick-off event and provide a listing of all businesses to Planet Publications. Planet Publications will sell all advertising, coordinate ad layout with businesses, and collect fees for ads and listings from businesses. 4. A total of 20,000 initial copies will be produced with delivery to every New Hope residence and distributed to businesses. 5. The guide/directory will be published the first part of 1998. 6. The size of the guide/directory will depend on the number of ads sold. It is anticipated that the book will be 64 pages with an ad to edit ratio of 50-50. 7. The cost to the City is directly related to the number of ads sold. It is anticipated that the fee after ad sales will be approximately $9,.000. Additional costs for telemarketing, cover design, map design, art direction for map and copy editing will bring the total City costs to approximately $14,000. The contribution from businesses from ad sales is estimated at $17,000. Also attached is a detailed memo regarding issues on this project that the EDA requested staff to further investigate after the September EDA meeting. Please review this in detail, as it is an attempt to answer all of the questions raised at that meeting. Staff recommend approval of the resolution approving the proposal submitted by Planet Publications. t EDA issues Regarding Resident GUidetBusiness: Directo Pro.sat : I 1. Telemarketer Fee VVhile the subcommittee felt it was ~mportant to list all businesses in New Hope, particularly non-traditional advertisers such as professionals, we did not think that they should be listed without a financial contribution. We were also insistent that Planet Publications contact every business (commercial, retail, professional) in New Hope before soliciting ads from surrounding cities. The exception to that rule is businesses in other cities whose service is not located in New Hope such as hotels, grocery stores, garbage haulers, and so forth. The publisher, initially, expressed opposition to the idea of charging a nominal fee to be listed for two reasons. First, if a business could advertise for $35 and receive a listing with name, address, phone number, and call-out reference on the map, what would be the incentive to purchase a full or half page ad for $300 or more? Second, the publisher would make little, if any, profit on listings because of the lack of commission incentives for her sales team, cost of invoicing, data entry, and so forth. Planet Publications, however, came back to the subcommittee with the option of hiring a telemarketer for a fee of $2,000. This fee includes contacting all businesses on the list, administration, invoice development, postage, entry of business listing in their database, sorting and downloading to their art direction program, copyediting, litho, printing and any collections. The $2,000 fee will remain even if the City of New Hope determines NOT to sell listings. This fee will be applied to the added task of contacting every business in the city. Listing revenues will remain as part of the publisher's revenues. The listing price was increased to $45, instead of $35, and Planet Publications will set a COD policy for the listings in order to eliminate the need for collections. The subcommittee felt that this was an acceptable solution and compromise and asked that this option be part of Planet Publication's proposal. 2. Distribution Although not visible in the pro forma, the costs of distribution are also part of the Planet Publications' proposal. The individual charge is $0.14 per booklet which amounts to $1,400 for the delivery of 10,000 pieces. A delivery service vendor, selected by Planet Publications, will deliver the Resident Guides door-to-door during the first part of February. The Resident Guides will be inserted into a protective plastic bag to protect them from the elements. 3. Map Quote from the Lawrence Group We meet with Carey Charboneau of The Lawrence Group as suggested by Commissioner Cassen. They responded with a bid of $2,400. Staff recommends that we stay with the original proposal of $640 from Bonestroo and the $400 fee from Planet Publications for art direction 4. Art Direction for Map The additional art direction fee of $400 is for the back side of the map. Included on the back side of the map is the index of all the businesses who advertised or purchased a listing, their name, address, phone number, website (if applicable), and call-out reference on the map. The Page 1 subcommittee felt that a useful map of the city would benefit both the residents and would serve as an additional selling feature to potential advertisers. 5, Engineering Consultant's Fee For Map The subcommittee felt that revisions to the Zoning District Map, provided to the City by the city's engineering consultant, would be the best option for the map. The current zoning map already lists all city parks (green), lakes (blue), schools, and churches. The engineering consultant will remove all the zoning districts, except commercial, identity all shopping centers, and highlight the schools and churches. Additionally, he will insert a grid over the map so that advertisers can be easily identified (eg. "A-2"). The cost for these services is $640. 6. Advertising Sales Guarantee Although it's not possible to receive a guarantee on total ad sales, Planet Publications has provided us with historical sales figures for the cities of Plymouth and St. Louis Park. We feel that it is realistic to align ourselves with St. Louis Park's sales experience. However, we need to take into account the additional efforts by the City to promote the booklet. These efforts include sending out an introductory letter to all businesses and sponsoring a "kick off'. 1995 t996: ! 1997 St. Louis Park $13,500 $15,000 $18,000 Plymouth n/a n/a $18,000 7. Cover Design City staff, in particular, felt that it was very important to have the city's graphic designer consultant involved with the cover design. Scott Shore (Lure Design, Minneapolis) designs most of the city's publications including the City Report, Business Link, Park and Recreation Booklets, News and Views, and so forth. By including Scott, we hope to achieve consistency in our publications. Scott's fee is budgeted at $1,000 and will vary with the type of design and amount of design samples we request. (See attached) We contacted Planet Publications for a cover design price and were told that it will range anywhere from $500 to $1,000 depending on the elements used in the cover such as photos, illustrations, etc. There are essentially no cost savings with either option. Staff would prefer to work with Scott Shore for the reasons listed above. 8. The City of Plymouth's Experience We contacted Helen LaFave, Communications Coordinator with the City of Plymouth, to learn of their experience. Helen said that she has received five phone calls from residents thanking her (and the city) for putting all city information in one useful resource. Internally, city staff is also very excited about the publication. She was reluctant to have the piece delivered door-to-door, but there were no problems or complaints. She felt that Susan McNulty, publisher, and her staff, were very accommodating with her requests. She was not involved with business participation like the City of New Hope, but did not receive any complaints regarding sales tactics or ad prices by Planet Publications. She stated that the project was a tremendous undertaking, but overall a very positive and rewarding experience. The City of Plymouth will publish their Resident Guide every other year and she would like to work with Planet Publications again. Page 2 9. Payment Terms Planet Publications has agreed to the following payment terms: $2,000 down payment (for telemarketer fee) and the balance upon completion of the project. 10. Copy editing Fee The Management Intern will be responsible for drafting all city edit for all departments. However, we felt that a professional copy editor should review the edit. A copy editor reviews text for more than just grammar and spelling errors. A major function of professional copy editing is to make sure that the language is clear and precise. It is important that the text flows properly and that the target, or intended, audience can read the publication with ease. The copy editing fee is $600. 11. Ad rates The ad rates reflect a 20% reduction from theoriginal proposed rates. This was done at the request of the City. Members of the Business Promotion Committee felt that the revised ad rates were fair. 12. Project History/Background For the past two years, the City of New Hope partnered with local businesses in an annual event called "Shop New Hope". The purpose of this event was to increase local business activity and patronage by promoting resident awareness of local businesses. Shop New Hope, in conjunction with Duk Duk Daze, was a success in terms of generating excitement, but it did very little to satisfy the goal of increased business activity once the promotional events ended. After several meetings this Spring, the Business Promotion committee decided to take a different approach. A subcommittee consisting of two business leaders, Jim Brinkman and Brian Minette, and three City staff members, Kirk McDonald, Pam Sylvester, and Jacquie Desautels, was charged with formalizing a plan and reporting back to the full committee. Ideas that surfaced during the initial meetings consisted primarily of promotional booklets, such as a coupon booklet, to be delivered to every New Hope residence via direct mail. The booklet was to include a map of New Hope and have a center pull-out section of coupons. Meanwhile, City staff was looking at publishing a Resident Guide for the City of New Hope which would describe city services including park and recreation, public works, police and fire departments. The city requested RFPs from five different printers (Greenhaven Printing, Sexton Printing, England Press, Olympic Printing, and Wallace Carlson) along with Scott Shore for graphic design and layout. The business promotion committee project was sent out for bid to three companies (Loco Expo, W Design, and Associated Lithographers). Two chose not to bid and the other, W Design, submitted a bid for $54,000. After the bids came in on both projects, the committee decided that the premises of both projects could be combined easily and efficiently into one project. The subcommittee met with three different companies who produce Resident Guides. They were FocusNews (Roseville), Planet Publications (Golden Valley), and the Sun Post (New Hope/Golden Valley). We requested proposals from all three vendors, but did not receive one from the SunPost. We did not choose the lowest bidder, FocusNews, for several reasons. We liked the fact that Planet Publications would be handling the delivery. More importantly, however, the quality of Planet Publications past work far surpassed that o~f FocusNews. Planet Publications could offer the city a completely unique and tailored product and FocusNews could not. We wanted something that would reflect well not only on the city, but on local businesses as well. Page 3 The result is a sharp turn from a promotional, coupon-type book to a city/business publication partially sponsored with local business advertising. The Resident Guide and Business Directory will detail city history and provide information on local government and elected officials. It will also serve as a local business directory by indexing businesses and their location on a fold- out map and through advertisements. Staff also met with Prime Advertising. This meeting was in response to the Council's request for additional proposals.. They publish Community Resource and Business Guides for several cities including Brooklyn Park, Maple Grove, Hopkins, and Brooklyn Center. The subcommittee reviewed their Hopkins publication last summer but did not feel that it presented the look and direction that we wanted. After our meeting on Monday, October 6, we again felt that what Prime Advertising had to offer was not exactly what we were trying to achieve with the Resident Guide and Business Directory. In addition, their proposed ad rates were much higher than what we received from Planet Publications. Page 4 CITY OF NEW HOPE EDA RESOLUTION NO. 97- RESOLUTION APPROVING PROPOSAL BY THE MCNULTY GROUP, LTD. d/b/a PLANET PUBLICATIONS TO PRODUCT 1997/98 CITY OF NEW HOPE RESIDENT GUIDE/BUSINESS DIRECTORY (IMPROVEMENT PROJECT NO. 609) WHEREAS, the City of New Hope Economic Development Authority desires to cooperate with New Hope businesses to educate residents about City services and business services that are available in the City; and WHEREAS, after soliciting proposals from a number of companies and interviewing each company, the EDA finds that Planet Publications is the firm that is best able to produce the product desired by the City; and WHEREAS, Planet Publications has submitted the attached proposal which outlines the responsibilities and obligations of both Planet Publications and the City of New Hope for publication of said Resident Guide/Business Directory. NOW, THEREFORE, BE IT RESOLVED, by the New Hope Economic Development Authority that the proposal submitted by Planet Publications for the production of the Resident Guide/Business Directory is hereby approved. Adopted by the Economic Development Authority of the City of New Hope, Hennepin County, Minnesota, this 13th day of October, 1997. President Attest: Executive Director 1997-98 City of New Hope Resident's Guide Proposal PLANET PUBLICATIONS RESPONSIBILITIES and OBLIGATIONS Planet Publications takes full responsibility and guarantees New Hope its publishing expertise in order to administrate, develop, design, print, and distribute the City of New Hope's Residents Guide. 1) Planet Publications will develop a production schedule and timeline to highlight all responsibilities and timelines. 2) Planet Publications will assist New Hope in its editorial efforts to create copy in conversion-ready materials, develop the proper flow of edit, sorts, and indexes. A design meeting will take place in order to review all editorial and art direction. 3) All advertising for the guidebook will be sold, invoiced, and collected by Planet Publications. 4) Planet Publications will staff the project with a qualified sales representative(s) with the expertise to ensure a successful advertising campaign. 5) Planet Publications shall be fully responsible for hiring, training, directing, and supervising its staff. 6) Planet Publications shall produce all promotional materials necessary for ad sales. These promotional materials will be approved by The City of New Hope. 7) Planet Publications will adhere to timelines and deadlines set forth by both parties. 8) Planet Publications will be responsible for all litho preparation, manufacturing, and distribution of a portion of the guidebook. This includes litho preparation of both ads and edit, all presswork, and a professional distribution of approximately 10,000 copies in plastic bags. The distribution price per piece is $.14. If Planet Publications distributes more or less than the 10,000 quantity, the cost or savings will be passed on to the City of New Hope. 9) The City of New Hope will provide a vendor and local business list to Planet Publications for use in selling ads. 10) Planet Publications may not represent to potential advertisers that favoritism will be shown by the City of New Hope to advertisers in the guidebook. And, in addition, Planet Publications will not engage in "high pressure" sales tactics. 11) Advertisers will be informed in the ratecard that a disclaimer will appear in the guidebook that will state the following: "Advertiser participation in this guidebook does not constitute endorsement of any company or product by the City of New Hope." 12) Planet Publications will not solicit or accept ads for pornographic/adult materials, firearms, lottery or qambling s~les, political advertisinc], or special interest group issue/ads. New Hope will view each ad in its final stage in order to. aDorove context and content. The City of New Hope Resident's Guide REVISED 9/12/97 Page 1 13) Planet Publications will provide a list of all sold advertisements to New Hope every two weeks or when requested. 14) The City of New Hope will provide to Planet PublicationJ the cover on disk, the four page center spread map on laser paper in layers, each layer ~epresenting a color or screen of a color for the printer to shoot and strip, and a distribution list to assist the delivery. 15~ Listings containing a business name, street address, and phone number will be sold and input by our telemarketer-sales persons. These listings will be at no charge to the display advertisers and sold for $45.00 to each listee. Planet Publications will set a COD policy for the listinqs in order to eliminate the need for collections. 16) The telemarketing fee of $2000.00 plus all listing revenue includes contacting all businesses on the list, administration, invoic~ dev(~lopment, postage, entry of business listing into our database, sorting and downloading to our art direction program, copyediting, litho, printing and any collections. NOTE* The $2000.00 fee will remain even if the City of New Hope determines NOT to sell listinqs. This fee will be applied to the added task of contad:ing every business (200 approx~ in the city of New Hope. Listing revenues will remain as part of the publisher's revenue~ 17) Planet Publications will sell ads ONLY to New Hobe business until we exhaust all possibility of contacts in the City of New Hope. The only ads we will sell outside of the New HoPe list are to companies or organizations that do not have competitors in New Hope (i.e. Grocery stores). Publication Date: January 1998 Press Run: 20,000 Page Size: 6 X 9 Binding: Saddle-stitched Text: Black plus one PMS. 50# offset paper stock Cover: 8 pt coated one side cover stock 4 color PROCESS on front cover plus a flood gloss Photos: Up to 10 black and white photos provided by the City of New Hope Text Design: All text pages to printer as camera-ready keylines. Distribution: 10,000 publications to your specific residential guidelines. 10,000 delivered to the City of New Hope Total Page Count: 48 or 64 plus cover depending on ad sales. Ad / Edit Ratio 50 % edit / 50 % ads-listings or based on final sales and edit provided. The City of New Hope Resident's Guide REVISED 9/12/97 Page 2 CITY OF NEW HOPE RESPONSIBILITIES 1) New Hope will supply editorial, photography, front cover art on disk,' and keylined layers for map for center spread. All editorial is to be provided on disk (Microsoft Word or similar program) with a hard copy for instructions to the art director. As part of this edit, New Hope can provide masthead information, disclaimers, organization of edit sections, and other necessary introductory editorial. Planet Publications will provide its information for the masthead and an Index of Advertisers. 2) A meeting to review this information will take place befOre the disk goes into production. All editorial must be 90% of final format. New Hope will receive two drafts to make editorial changes during the edit/art direction process. 3) The City of New Hope will provide one contact person for overall coordination of all activities relating to the guidebook. 4) The City of New Hope will approve all copy and layout for the guidebook and all information on rate cards for mailings. 5) The City of New Hope will provide announcements of the guidebook in the city's newsletters. 6) The City of New Hope will copy edit and verify all editorial information for accuracy of content. Planet Publications' copy editor will do a final edit for context. 7) The City of New Hope will provide to Planet Publications a copy of all final changes necessary to develop the guidebook on the date determined by the production schedule. Any editorial changes that are made by New Hope after the disk has gone to Planet Publication's litho vendor or printer will result in alteration charges. 8) The CitY of New Hope will adhere to all pre-developed production schedules in order to keep production costs at a minimum and to properly interface client and publisher duties as outlined throughout the contract. 9) The City of New Hope will develop a distribution list and map to ensure the proper circulation of the guidebook. PROPOSED AD RATES Size Black only Add'l edit color Add'l 4 color ~rocess Back Cover $900.00 n/a $300.00 Inside Front Cover $800.00 n/a $300.00 Inside Back Cover $800.00 n/a $300.00 Full Page $700.00 $75.00 n/a Half Page $400.00 $75.00 n/a One Third Page $300.00 $75.00 n/a One Sixth Page $235.00 $75.00 n/a The City of New Hope Resident's Guide REVISED 9/12/97 Page 3 FEE STRUCTURE for 20M pressrun Total Page Count Display Ad Sales Revenue New Hope Fee . 48 text/4 page cover 0 $20,500.00 48 text/4 page cover $1,000.00 $19,500.00 48 text/4 page cover $2,000.00 $18,500.00 48 text/4 page cover $3,000'.00 $17,500.00 48 text/4 page cover $4,000.00 $16,500.00 48 text/4 page cover $5,000.00 $15,500.00 48 text/4 page cover $6,000.00 $15,000.00 48 text/4 page cover $7,000.00 $14,500.00 48 text/4 page cover $8,000.00 $14,000.00 48 text/4 page cover $9,000.00 $13,500.00 48 text/4 page cover $10,000.00 $13,000.00 48 text/4 page cover $11,000.00 $12,500.00 48 text/4 page cover $12,000.00 $12,000.00 48 text/4 page cover $13,000.00 $11,500.00 48 text/4 page cover $14,000.00 $11,000.00 48 text/4 page cover $15,000.00 $10,500.00 48 text/4 page cover $16,000.00 $10,000.00 64 text/4 page cover $17,000.00 $9,100.00 64 text/4 page cover $18,000.00 $8,500.00 64 text/4 page cover $19,000.00 $7,800.00 64 text/4 page cover $20,000.00 $7,100.00 64 text/4 page cover $21,000.00 $6,000.00 64 text/4 page cover $22,000.00 $5,300.00 64 text/4 page cover $23,000.00 $4,500.00 64 text/4 page cover $24,000.00 $3,800.00 64 text/4 page cover $25,000.00 $2,500.00 64 text/4 page cover $26,000.00 $2,000.00 64 text/4 page cover $27,000.00 $1,100.00 64 text/4 page cover $28,000.00 $500.00 64 text/4 page cover $29,000.00 $00.00 Sales Revenue Definition: The sales revenue is defined by the collected amount of net dollars AFTER any discounts. NOTE* Planet does not plan to offer discounts but in order to define the above chart dollar figures, this issue must be addressed. The sales revenue DOES NOT include any production rates that are charged to produce ads. It DOES 'include all color sold. Any listings revenue is NOT included in the above chart. The proceeds of all listings sold will remain with the publisher. The $45.00 listing price is built on a break-even level that will pay for commissions, administration, data-base management, collections, etc. CONTRACT ADDITIONS Telemarketing Fee $2000.00 (see above) Additional Pressrun of 48 page book: 5,000 $1,800:00 plus MN State Sales Tax 10,000 $3,200.00 plus MN State SaLes Tax The City of New Hope Resident's Guide REVISED 9/12/97 Page 4 18/82/1997 17:39 6125467889 P~NET PUBS SMCNULTY PAGE 81 ' Ad ,itional Pressrun of 64 page book: 5,000 $2,200.00 plus MN State Sales Tax 10,000 $3,800.00 plus MN State Sales Tax Prc~vided to Planet as 4 layer~ for the map side and on disk in correct order for the("B side") location detail an~! nformation side. Printed Black plus two PMS over Black plus one PMS. Map equals 8 additional 6 X 9 pages--- 9;~( 24 flat. Same paper stock as text pages of guide. Map stitched into guide as a roll-fold. SEE SAMPE ENCLOSED. Price includes additional administration time. ~ditional cost A for Map Printing, 20,000 $3,400.00 plus MN State Sale5 Tax Lit~o, and administration 25,000 $3,700.00 plus MN State 5ales Tax ! 30,000 $4,100.00 plus MN State Sates Tax A~lditional Art Direction for "B side" of Map $400,00 C~pywriter to review first draft arid make r~ommended changes in context and content of edit. $600.00 /~'-_A~ Direction fQr front~ cover: $500.00 for the art direction plus any cc~t~ associated with obtainin_~ and ,_ s~annino Photos (sca~s are $10.00-$75.00 each deoendine on color~ (photo PUr{;ha~es can run from $50.00 ) and-.a'nv costs, ass°Ciate, d With illustrati°rt needs~ ' ' ' P~vment Terms: $2000.00 down, rest of 0aymerlt from ~chedule due on delivery of publications, I- TiS Agreement is made and entered on this ~day ~f __...__by The City of New Hope and The McNulty Group, Ltd.( a Minnesota ¢ f)rporetlon) d.b.a, Planet PublicationS. Whereas The City of New Hope desires a publishing relationship for a publication (hereinafter V,; ~own as the 'Guidebook'): and whereas Planet Publications, having sold and published such publications; hereby the parties agree re, the following terms; A, Nothing herein contained shell be construed to create a partnership or joint venture between Planet Publications end The City of New H Bi This Agreement shall not be a~signed to any other publisher by Planet Publications without the ex~e~secl written consent of the City of I~e.w Hope. Subject to the foregoing, this Agreement shall bind and insure to the benefit of the parties and their respective successors and apigns, l.' For the giving, serving, or delivery of any notice, statement or other instruction, such notice shall be deemed to have been duly given, s~rved and delivered, i~' mailed t3y United States Certified Malt, postage prepaid, and addressed to the party emltled to receive the same. [~. If both oarties are satisfied wi~ the business ~o business reiatJonshin and the end results of the oublication I~anet Pub_lications will be_pffered the ~aertunity to bid and nubllsh the auide for the City of New H_ms_e for two additiol~al aahllr~tio~q IS WITNESS THEREOF, The following undersigned agree to this proposal; ihe McNulty G~oap, LTD ........... l.b.a. Planet Publications ;200 Circle Down leiden Valley, MN 55416 Te ',JdC ~,2~ ly, Ce,r~e~ Co. )ate--/---/-- Fax #(/'J· FaX # ' The City of New Hef~e Reaident'e Guide J~YJ~ Page Resident Guide and Business Directory Presented to the New Hope EDA September 22, 199~'~ TABLE OF CONTENTS Project Background I Major Contract. Components 2 1 City Support Letter and Kickoff 2 2 AdVertising Rates 2 3 Map/Index of Advertisers 2 4 Listing Fee 3 5 Additional Press Run 3 6 Subsequent Publication Costs 3 7 Production Schedule 3 8 Name of Book 4 9 Time Line 4 10 Previous Spending 4 11 Bottom Line 5 Project Background For the past two years, the City of New Hope partnered with local businesses in an annual event called "Shop New Hope". The purpose of this event was to increase local business activity and patronage by promoting resident awareness of local businesses. Shop New Hope, in conjunction with Duk Duk Daze, was a success in terms of generating excitement, but it did very little to satisfy the goal of increased business activity once the promotional events ended. After several meetings this Spring, the Business Promotion committee decided to take a different approach. A subcommittee consisting of two business leaders, Jim Brinkman and Brian Minette, and three City staff members, Kirk McDonald, Para Sylvester, and Jacquie Desautels, was charged with formalizing a plan and reporting back to the full committee. Ideas that surfaced during the initial meetings consisted primarily of promotional booklets, such as a coupon booklet, to be delivered to every New Hope residence via direct mail. The booklet was to include a map of New Hope and have a center pull-out section of coupons. Meanwhile, City staff was looking at publishing a Resident Guide for the City of New Hope which would describe city services including park and recreation, public works, police and fire departments. After initial bids came in on both projects, the committee decided that the premises of both projects could be combined easily and efficiently into one project. The result is a city/business publication that details city history, provides information on local government and elected officials and also serves as a business directory for the City by indexing local businesses and their location on a fold-out map and through their advertisements. Once the focus was realigned in mid-July, the subcommittee met with three different publication agencies. The SunPost, FocusNews, and Planet Publications made presentations and all had something slightly different to offer. We did not seek formal RFPs because no one could deliver exactly the same product as specified. Considerations such as art design, delivery, size and costs of ads were ail elements that received careful consideration as we reviewed the bids. The SunPost, at the last minute, decided not to bid so the decision narrowed to FocusNews and Planet Publications. Strictly in terms of cost, FocusNews was the lower bid. Because their Resident Guides are essentially "cookie cutter" templates that they run on their newspaper press, they are able to provide the booklet for free and recapture all costs through advertising sales. The only costs the City would incur are staff time, the cover design (optional) and door-to-door delivery since their normal medium of delivery is through their newspaper. However, the final product is one which lacks a polished, high quality appeal. Everything from paper weight to art design suggests a lesser quality despite the effort and time commitments from City staff and local business leaders. Although the Planet Publications bid was higher, it is essential to bear in mind that we were not comparing like proposals. At this point, the committee had to take a step back from comparative, financial considerations and examine less tangible considerations such as the overall goal, aesthetic appeal, and public response. Moreover, the City made significant financial contributions in previous years. Compared to those outlays, the Planet Publications proposal is a reasonable contribution (see page 6). Even more important, however, is the fact that the City will have a resident guide that can be of use to every New Hope resident and also to prospective residents. Additionally, local businesses will have a high quality forum in which to advertise that targets their primary clientele base for an extended pedod of time due to the long shelf life of this publication. For these reasons, the subcommittee opted for the Planet Publications' proposal. Page 1 Major Contract Components 1 City Support Letter and Kickoff The City will send a letter to all businesses in New Hope describing the Resident Guide project and asking for their support through advertising dollars. A schedule of ad rates, provided by Planet Publications, will be included as part of the letter. The mailing list will then be provided to Planet Publications for the purpose of soliciting advertisements. Therefore, no approach to any business should be a "cold call" and will hopefully generate increased enthusiasm and a greater willingness to participate in the Resident Guide. Given this effort by the City, Planet Publications will seek advertisements or listings from every New Hope business, including professional practices. The City will list all churches, schools, and school district information as part of the City edit. These organizations, however, may place an ad if they so choose. The City and local businesses will participate in a "kick off" once the Council approves the contract. Planet Publications representative, Susan McNulty will be in attendance along with her sales representative. 2 Advertising Rates PROPOSED AD RATES Size Black Only Add? edit color Add? 4 color process (text pages only) (cover pages only) Back Cover $900.00 n/a $300.00 Inside Front Cover $800.00 $300.00 Inside Back Cover $800.00 $300.00 Full Page $700.00 $75.00 Half Page $400.00 $75.00 Two Third Page not a good size for any digest sized publication One Third Page $300.00 $75.00 One Sixth Page $235.00 $75.00 *The ad rates reflect a 20% reduction from the original proposal by Planet Publications. The pro forma was adjusted so that the additional costs were shifted to the City's fee. 3 Map/Index of Advertisers The City will insert a 4-color, fold-out map that is stitched in the center of the booklet. The City will work with its consulting engineer to revise the existing zoning district map by including a grid, shopping center references, as well as park and lake detail. An "Index of Advertisers" will be on the back side of the map and will list every advertiser, regardless of the size of ad purchased, their name, address, and phone number along with a location reference on the map (Example: "Universal Color''. ........ "B-4"). Page 2 4 Listing Fee Businesses that do not want to advertise will have the option to purchase a "listing only" for $45. The listing would also include the location reference on the map. Planet Publications agreed to sell listings based on the following conditions: · Planet publications will hire a telemarketer for a fee of $2,000. This fee includes contacting all businesses on the list, administration, invoice development, postage, entry of business listing in their database, sorting and downloading to our art direction program, copyediting, litho, printing and any collections. The $2,000 fee will remain even if the City of New Hope determines NOT to sell listings. This fee will be applied to the added task of contacting every business in the city. Listing revenues will remain as part of the publisher's revenues. · The price is increased to $45, instead of $35, and Planet Publications will set a COD policy for the listings in order to eliminate the need for collections. 5 Additional Press Run We are confident that a press run of 20,000 will be sufficient, but if demand exceeds our supply, additional pcess run costs are as follows: Quantity Price 48 page book 5,000 $1,800 plus MN Sales Tax 48 page book 10,000 $3,200 plus MN Sales Tax 64 page book 5,000 $2,200 plus MN Sales Tax 64 page book 10,000 $3,800 plus MN Sales Tax Map 20,000 $3,400 plus MN Sales Tax 25,000 $3,700 plus MN Sales Tax 30,000 $4,100 plus MN Sales Tax 6 Subsequent Publication Costs The City looked into possible cost savings of the Resident Guide with Planet Publications in future years since the edit will require only minor modification. The publisher said that it would be easier to answer this question once the project is complete. Her initial reaction, however, is that there would be some cost savings to the City, but in the neighborhood of 10%. She said that the edit is actually a very small portion of the total costs. The expenses that will not diminish are pdnting costs, advertising sales, and art design and these constitute the majodty of the expense. As for the City, having the initial edit complete will yield tremendous cost savings in future years. 7 Production Schedule Since this is the first time all City information will be integrated into one source, we are committed to producing a thorough effort. The Management Intern will ser~e as the primary copy writer and contact for the project. All department heads will need to review relevant information and the Business Promotion Committee will also have the opportunity to review the final edit before it goes Page 3 to press. Therefore, the production schedule that Planet Publications and the City agree to must take these members and their schedules into consideration and the deadlines must be flexible. Planet Publications will hire a copyeditor to review the first draft and make recommended changes in context and content of edit. The fee for this service is $600. 8 Name of Book The City and local businesses have agreed upon the following title for this publication: "The City of New Hope Resident Guide and Business Directory" 9 Time Line The time line for project and contract approval will follow this schedule: · Full Committee approval on 9/15. · City staff will present idea to the City Council on 9/22 to seek concept approval and a motion to continue with project and finalize all necessary contracts. · City staff will present contract to City Council on 10/13 and seek approval. · The City anticipates a publication date of January 1998. 10 Previous Spending 199S The EDA expressed support for the "Shop New Hope" promotion and unofficially committed approximately $32,000 in EDA funds to support the program. The agreement between Key Group Advertising and the City called for a payment of $49,486.00, with $15,750. O0 of that amount being contributed by business sponsorships and $33,73S.00 being paid by the City. 1996 The EDA approved the concept of conducting another "Shop New Hope" promotion in 1996. The agreement between the City and Key Group Advertising calls for a payment of $46,000 by the City. It was anticipated that at/east half ($23,000) of the total budget amount would be contributed by business sponsorships and that no more than $23,000 would be paid for with.EDA funds. Page 4 11 Bottom Line Total Page Count Display Ad New Hope Fee* Sales Revenue* 74'~"~ ~'~,'~'"/'"4"'~'a"~'~"~'~'~,'~ ~' ............................................ '~'~ i ............. .................................................................................. '~'<'o'~'~:'~'~ ............. i 4. ~...t.~.x..t...<.~..?..~.g.~..?.~ ............................................................................................... i48 text / 4 page cover $2 O00.OOi $18,500.001 i~:~"~;~B?~;"~'~;~"~;~'~'~ .............................. '~:'6'~:'a'~ ............. '~'~'~i'~'6~:'~'~i i48 text / 4 page cover $4.000.00i $16 500.00i i48 text / 4 page cover $5 O00.OOi $15,500.00i i~i"~'T~i"l~'~i~",~'F ............................. '~i'~'~6:'6'6! ............. i48 text / 4 page cover $7 000.001 $14,500.001 i48 text / 4 page cover $8.000.00i $14,000.001 148 text / 4 page cover $9000.001 $13,500.001 i48 text / 4 page cover Si 0 000.001 Si 3,000.00i ............................................................................48 text / 4 page cover $.! 1,00.0.;0..0! ........ .$..!..2.:..5...0...0.:..0...0.!. i48 text/4 page cover $12,000.00i $12,000.00j i..4.~..!~.<.4...~?.~. .......................... .~.!..~:.O..~.~:O..~L ............. .~.!.~.:.~..%0..~j ..............................................................................48 text / 4 page cover ..$..,1.4., .0..0..0.:..0...0.! ............. ..$..!..!.~..0...0...0.....0...0.] ~48 text / 4 page cover $15,000.00i $10,500.00! i48 text / 4 page cover $16,000.00i $10,000.00i i~..~.~/..~.~.?~.~..~ ........................ .~.~5~.~.~:.~.~.! ................ ..*.~:.!~:.~.~j ~64 text / 4 page cover $18,000.00j $8,500.00j 164 text/4 page cover $19,000.00 $7,800.00 i64 text/4 page cover $20,000.00i $7,100.00i i64 text / 4 page cover $21,000.OOi $6,000.00i i64 text / 4 page cover $22,000.001 $5,300.00 i64 text / 4 page cover $23,000.001 $4,500.00i 164 text / 4 page cover $24,000.00i $3,800.00i i64 text / 4 page cover $25,000.001 $2,500.001 i64 text / 4 page cover $26,000.00i $2,000.001 i64 text / 4 page cover $27,000.00i $1,100.00 i~..t.~..x!...L.,....~.~...~?~. .......................... ~,~,~.:,~o. o.:o. o....' .................... ~.,~,~,o.:0.,,o.. 164 text 14 page cover $29,000.00j $O.OOj *Sales Revenue Definition (as defined in proposal): The sales revenue is defined by the collected amount of net dollars AFTER any discounts. NOTE* Planet does not plan to offer discounts but in order to define the above chart dollar figures, the issue must be addressed. The sales revenue DOES NOT include any production rates that are charged to produce ads. It DOES include all color sold. Any listings revenue is NOT included in the above chart. The proceeds of all listings sold will remain with the publisher. The $45.00 listing price is built on a break-even level that will pay for commissions, administration, database management, collections, etc. Page 5 Cost Sharing. City Contribution: 1. Fee after ad sales $ 9,10000 (Based on estimated sales of $17, 000) 2. Telemarketing fee $ 2,000.00 3. Cover design $1,000.00 4. Map design fee by City Engineer $ 640.00 3. Art direction for map $ 400.00 4. Copyediting $ 600.00 5. Additional printing costs (if any) $ 5. City staff time $ Total $13,740.00+ Businesses' Contribution: 1. Display Ad Sales Revenue (estimated) $17,000.00 2. Business leaders' time commitment $ Total $17,000.00+ Page 6