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Home My WebLink About1998-06-08 City Council (32)TO: City of Palo Alto City Manager’s Report 7 HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:UTILITIES AGENDA DATE: SUBJECT: JUNE 8, 1998 CMR:266:98 APPROVAL OF AMENDMENT NO. 2 TO AMEND CONTRACT #$7095293 WITH ADDISON OLIAN, INC. TO PROVIDE ADVERTISING, MARKETING AND PUBLIC RELATIONS TO UTILITY MARKETING SERVICES AND PUBLIC RELATIONS RECOMMENDATION Staff recommends that Council: Approve and authorize the Mayor to execute Amendment No. 2 to Contract $7095293 with Addison Olian, Inc. for the remainder of FY 1997-98 and the first six months of FY 1998-99 in the amount of $25,000, for a total contract amount of $86,000, and extend the contract until December 31, 1998. DISCUSSION Project Description The City of Palo Alto Utilities Department (CPAU) disseminates information to customers about current programs, technical resources and industry trends through a variety of media, including advertisements, case studies, newsletters, bill inserts, press releases, public event displays, fact sheets and program packets. During this calendar year’s transition period of energy industry restructuring, the need for additional communications expertise has become heightened. There is an urgency to inform customers of the changes, promote community awareness of CPAU as a viable competitor in the new marketplace, position CPAU to be a preferred energy provider, and develop strategies to market CPAU to existing and potential commodity customers, the community, and to its competitors during the transition to a fully competitive energy marketplace. Addison Olian, Inc., is currently retained by CPAU for the above services. To date, staff has been satisfied with the quality of work, timeliness of project completion, and expertise CMR:266:98 Page 1 of 3 provided by the vendor. Deliverables from this contract include, but are not limited to: media interview training for senior managers; development of three key messages and position statements about CPAU response to industry restructuring; creation of a one year strategic public relations plan; creative exploration, design and implementation of a three-month advertising and direct mail campaign to build brand awareness of CPAU; initial design of a multiple page brochure on customer choice in Palo Alto; development of a five piece media kit which provides background, history and philosophy of CPAU, in addition to a fact sheet on frequently asked questions about deregulation; and the concept development and script ideas for the Deregulation Information Phone Line. Many of the materials developed have been successful: the media kit generated coverage on CPAU and industry restructuring; the phone line has received a consistent level of interest; and the newspaper advertising campaign, developed with Addison Olian, Inc. to build brand awareness, has received special recognition from the local advertising community. Additional funds are needed to maintain a steady level of community outreach through December 1998. In order for brand awareness to be effective, the messages developed and disseminated in last 12 months need to be reinforced. The additional funds requested will be used primarily to maintain brand awareness and continue to educate all customer classes about the restructuring changes in the electric and gas industries, and the impacts to each customer segment. In FY 1998-99, staff plans to solicit bids from advertising firms in order to establish a long term advertising, marketing and public relations services contract that will further enhance the preliminary brand awareness, public relations and marketing activities conducted this year. Bid Process Staff sent a Request for Proposal to 10 advertising firms on March 21, 1997. The proposal period was 18 days in order to provide quick turnaround to begin preparing for deregulation. A selection team consisting of staff from CPAU and Purchasing Division of the Administrative Services Department reviewed the proposals.. Six firms were invited to participate in interviews on April 15 and 16, 1997. The team carefully evaluated each firm’s qualifications and submittal in response to the RFP using the following criteria: samples submitted, description of how samples represent company and goals, suitability of style with CPAU, quality of work, ability to communicate, qualifications, experience, public relations experience, references, and cost. Each criteria was ranked on a scale of 1 to 10 (1 being poor, 10 being excellent). All of the criteria rankings were then added to rate each firm. Addison Olian, Inc., Was selected for its extensive advertising, marketing communications and public relations experience. Its experience with integrating strategic planning, goals and creative concepts was also an important factor in its selection. CPAU has been very satisfied with the quality of work to date by Addison Olian, Inc. Having CMR:266:98 Page 2 of 3 conducted a Request for Proposal (RFP) process in Api~ 1997 and having knowledge of the services available, staff recommends that a continuance of the existing contract until December 1998 would provide the maintenance level of existing advertising, marketing and public relations activities needed. Adding funds and extending the term of the existing contract will provide uninterrupted outreach activities until staff conducts another RFP process during the fall of 1998 in order to retain a vendor on a longer term basis. RESOURCE IMPACT Funds for the project are included in the FY 1997-98 Utilities Operating Budget. This project was presented as a consultant contract to the Finance Committee and the Policy and Services Committee. It was not selected as a project for further review. POLICY IMPLICATION The approval of this contract is consistent with existing City policies. ENVIRONMENTAL ASSESSMENT These services do not constitute a project for the purposes of the California Environmental Quality Act. ATTACHMENTS Attachment A: Amendment 2 to Contract with Addison Olian, Inc. (# $7095293) PREPARED BY:Sherilyn Hill, Marketing Representative Linda Clerkson, Public Relations Manager DEPARTMENT HEAD REVIEW: Director of Utilities CITY MANAGER APPROVAL:~~/~....t ~ a ~) Assistant City Manager CMR:266:98 Page 3 of 3 , ~TTACHMENT A AMENDMENT NO. TWO TO CONTRACT NO. $7095293 BETWEEN THE CITY OF PALO ALTO AND ADDISON OLIAN, INC. This Amendment No.Two to Contract No. $7095293 ("Contract") is entered into , by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California (~CITY"), and ADDISON OLIAN, INC., a California corporation, located at 2024 Broadway, Redwood City, CA 94063 ("CONTRACTOR"). RE C I TALS: WHEREAS, the Contract was entered into between the parties for the provision of advertising, marketing and public relations consulting services; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION i. The section entitled ~COMPENSATION" is hereby amended to read as follows: "COMPENSATION for the full performance of this Agreement: CITY shall pay CONTRACTOR on a project-by-project basis not to exceed $86,000." .SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. 980601 syn 0071456 IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. ATTEST :CITY OF PALO ALTO City Clerk Mayor APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Assistant City Manager ADDISON OLIAN, INC. By: Its: Taxpayer I.D. No. 94-2789236 Director of Utilities Director of Administrative Services Purchasing/Insurance Review 2 980601 sy,’10071456 CERTIFICATE OF ACKNOWLEDGMENT Civil Code § 1189) STATE OF COUNTY OF ) )) On notary public , before me, the undersigned, a in and for said County, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized ~capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature of Notary Public 980601 syn 0071456 3