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ITEM 3.12 Newsletter PublisherRequest for eo TY ofCity Council ActionOt�c' MINNESOTA V DEPARTMENT INFORMATION ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Administration Lori Johnson, City Administrator October 24, 2016 PRESENTER(s): REVIEWED BY: ITEM #: Consent Andy MacArthur, City Attorney 3.12 AGENDA ITEM DETAILS RECOMMENDATION: Recommend approval of the contract with Prime Advertising to publish the City newsletter as discussed at the August 29, 2016, Council meeting. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes I No BACKGROUND/JUSTIFICATION: At the August 29, 2016, budget worksession, the Council discussed an option to enhance the City newsletter while reducing the cost of publication by $3,800 per year. The Council agreed to engage Prime Advertising to publish the newsletter beginning with the Spring 2017 edition. The Council further requested that Prime Advertising representatives attend the October 28 Council and business community meeting. (That meeting was subsequently delayed until a new city administrator is on board.) Additionally, the Council reduced the draft budget by the $3,800 savings. The attached contract with Prime Advertising has been reviewed and approved by the City Attorney. It includes a 90-day termination clause allowing the Council to terminate the contract for any reason. The contract is the same as the contract proposed at the August 29, 2016, meeting. In order to meet the Spring 2017 issue timeline, Prime Advertising needs to begin working with businesses and staff now hence the need to execute the contract as soon as possible. SUPPORTING DOCUMENTS: Xo ATTACHED ❑ NONE • Contract Between the City of Otsego and Prime Advertising & Design, Inc. for the Publication of the City of Otsego View Newsletter • August 29, 2016, Council Minutes POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to approve the Contract Between the City of Otsego and Prime Advertising & Design, Inc. for the Publication of the City of Otsego View Newsletter. BUDGET INFORMATION FUNDING BUDGETED: X o YES The full cost is included in the draft 2017 budget. If this contract is not approved, the ° No 2017 budget must be increased by $3,800 to cover the savinjzs this contract provides. PRIME ADVERTISING & DESIGN, INC. & THE CITY OF OTSEGO OTSEGO VIEW NEWSLETTER Prime's Deliverables: PRIMC- s • Collaborate with City staff to develop informative, insightful and entertaining content. Prime will develop an editorial menu and provide a minimum of one (1) original piece of content authored by Prime Staff. Prime will also provide photography services via staff photographer to supplement City photography. All content will be proofed and approved by the City of Otsego. • An enhanced / redesign of the newsletter, including expansion to 16 pages and upgrading to a four- color process allowing for best use of high -resolution images and vibrant design. • Advertising sales to businesses in and around the Otsego community. • Printing of 6,200, 16-page, 4-color newsletters. • Direct mailing of up to 6,000 newsletters to all homes, apartments and businesses in Otsego. • Conversion from print into a digital edition format for use on City website. The `turn -page' digital edition includes links to websites and emails of all advertisers, as well as relevant content. City of Otseszo Deliverables: The City shall pay a comprehensive, all-inclusive, per issue publishing fee of $4,250. This includes all services outlined under Prime Deliverables including editorial, design, production, printing and mailing. • Editorial support to Prime staff in developing timely and relevant content and photography. • Editing, proofing and approval of newsletter content. 6450 WedDvood Road North, Suite 100 • Maple Grove, MN 55311 • P/763.551.3700 • F/763.551.3701 • PrimeAdvedisin&com 6 MyPrimeGuide.com PRIME novicensn�o a ocs�oH CONTRACT BETWEEN THE CITY OF OTSEGO AND PRIME ADVERTISING & DESIGN, INC. FOR THE PUBLICATION OF THE CITY OF OTSEGO VIEW NEWSLETTER This agreement made and entered into this day of 2016, by and between the CITY OF OTSEGO, a municipal corporation, hereinafter referred to as "City" and PRIME ADVERTISING & DESIGN, INC., a corporation doing business at 6450 Wedgwood Road North, Suite 100, Maple Grove, Minnesota, 55369, hereinafter referred to as "Prime." The parties wish to reduce to writing the terms and conditions regulating the production and distribution of said newsletter. Based upon mutual considerations contained herein, the parties agree as follows: Purpose of Newsletter The Otsego View promotes a positive image of the City and is a key vehicle to deliver timely, up-to-date City news and information within the community. An enhanced version of the View will be valuable in promoting the economic development for the city, businesses and residents. The View is also an important marketing tool for local businesses, allowing them an efficient vehicle to reach every home, apartment and business in the community. Size The newsletter shall be a sixteen (16) page, magazine -style publication. Printed on White 70# Matte — 4/4 Full Color, Two Sides with Bleeds, fmished size will be 8.25" x 10.75", Collated, Saddle Stitched. Prime reserves the right to increase or decrease the number of pages based on content and participation with notification to the City. Advertising Prime shall be solely responsible for and may sell space to advertisers on such terms, conditions and at such prices as Prime determines. Prime shall follow the Advertising Guidelines in Exhibit A of this contract. In its contracts with advertisers, the contracts shall clearly state that the City is not a party to the contract and that the advertiser's sole source of recourse is against Prime. Prime will indemnify and hold harmless the City for any and all claims of any kind or nature arising out of the advertisers' content within any publication of said newsletter. Advertising shall be limited to 6 pages or 38% percent of the newsletter space. Advertisements will be limited to a 1/2, 1/4 and 1/8-page ads. On one page there may be no more than 1/2 of the page dedicated to advertising (either two 1/4-page ads, four 1/8-page ads or one 1/2-page ad). Publication Dates The newsletter shall be published on a schedule to be determined. Prime shall provide the City with a production schedule based on the City's requested mailing dates. Every reasonable effort will be made by both parties to meet said schedule. By December 31 st of each year, Prime shall provide the City with upcoming year's production schedule. 6450 Wedgwood RoadNortll, Suite 100 • Maple Grove, MN 55311 • P/763.551.3700 • F/763.551,3701 • NmeAdvertising.com • MyNimeGuide.com PRIMC- ADYGFTISIND G DCSIDN Publication Working with the City of Otsego, Prime will develop a content schedule and editorial menu and provide original content as outlined in this agreement authored by Prime staff. All content will be proofed and approved by the City of Otsego. Each publication shall contain a disclaimer statement, approved by the City, to the effect that the advertisers offset the costs of the publication and that Prime, not the City, is in total control of the advertising content of the publication. Prime will also receive approval from the City for any special insertions to the newsletter unless the insertion items are at the City's request. Production The City shall be responsible for providing Prime with any electronic copies of articles they would like included, as well as any photos (either electronic or actual) to be published. Prime may also provide photos and/or stock art in the design/layout of the newsletter with final approval of the City. Prime warrants it has rights to the photos and/or stock art it provides and will indemnify and hold harmless the City from any and all claims arising for copyright infringement relating to the use of said photos and/or stock art in the design/layout of the newsletter. Prime shall be responsible, subject to this agreement, for all aspects of production of the newsletter including, but not limited to, design, layout, printing and post -production delivery of all newsletters. Ownership/Copyriaht The City shall own the copyright of the newsletter, provided that each party shall retain ownership rights, including copyright, of their respective independent contributions to the newsletter. As owner of the copyright of the newsletter, the City shall have the right to reproduce and distribute all or part of the newsletter for any purpose. Distribution Prime, through the U.S. mail, shall distribute the newsletter. Prime is responsible for receiving routes and count information from the area post offices and ensuring that all newsletters to be mailed are delivered to the Otsego Post Office. The newsletter shall be distributed to each residential unit, including apartments, townhouses and condominiums, and to each business located within the geographic confines of the City of Otsego, except for Post Office Boxes. One hundred (100) additional copies of each edition shall be delivered to the City at no charge. Prime shall provide the City with a digital edition of the newsletter for posting on the City website. Charges The City shall pay a per issue comprehensive publishing fee of $4,250. This includes all services outlined under Prime Deliverables including editorial, design, production, printing and mailing. Additional charges will apply to the City when an item(s) are inserted in the newsletter at the City's request. Cost will depend on the size and weight of item inserted. Cost of insertion items weighing more than 1/2 ounce will be handled on a case -by -case basis. Prime shall not insert any item without prior review and approval by the City. 6450 Wedgwood Road North, Suite 100 • Maple Grove, MN 55311 • P/763.551.3700 • F/763.551.3701 • PrimeAdvertising.com 0 klyPrimeGuide.com PRIMC- AOVEHTIStNO G OESION Term The initial term of this agreement will be for three years (2017 - 2019) for 12 issues of the quarterly publication of the City of Otsego newsletter. Ninety days prior to December 31, 2019, the terms of this agreement will be reviewed, and a longer -term contract may be agreed and executed by both parties. Termination Each party shall retain the right to terminate this agreement by giving ninety -days written notice to the other party of such termination. Independent Contractor Indemnification It is understood and agreed that Prime is an independent contractor and is not an employee of the City. As such, Prime agrees to indemnify, save and hold harmless the City from any and all claims of every kind and nature which may arise out of the advertising content of any Newsletter and Prime's performance of this contract. In turn, the City agrees to indemnify, save and hold harmless Prime for any and all claims of every kind and nature which may arise from the article content of any said newsletter publication and the City's performance of this contract. Any disputes arising out of this agreement shall be decided according to the laws of the State of Minnesota and venued in a Minnesota court of competent jurisdiction. In witness whereof the parties hereto have entered into this agreement as of the day and year first above written. CITY OF OTSEGO PRIME ADVERTISING & DESIGN, INC. City/Organization Contra for VV"- By By President/CEO Its Its Mark J. Murray Printed Name Printed Name Date Date 6450 Wedgwood Road North, Suite 100 0 Maple Grove, MN 55311 • P/763.551.3700 • F/763.551.3701 • PiimeAdveitising.com • MyP imeGuide.com PRIMC- ADVERTISIND G DESION PRIME ADVERTISING GUIDELINES — Exhibit A Advertising Content: In its agreements with advertisers, the agreements shall clearly indemnify and hold harmless the "City" for any and all claims of any kind or nature arising out of the advertiser's display advertising content. Prime shall obtain family friendly commercial messages and/or advertisements consistent with the following guidelines. Any commercial message or advertisement which contains any of the following characteristics or which is of the type or category listed shall be and hereby are expressly prohibited: 1. Promotion of the sale or consumption of tobacco products or depiction of the use of tobacco products. 2. Promotion in any form of illegal drugs, illegal drug use or illegal drug materials or characterizations which suggest or depict the promotion or glorification of any such products, activities or materials. 3. Promotion for the use or sale of firearms, explosives or other weapons, or the depiction, suggestion or glorification of violence or acts of a violent nature. 4. Advertisements containing material that demeans or disparages an individual or group of individuals on the basis of race, color, religion, national origin, ancestry, gender, age, disability, ethnicity, marital or parental status, military discharge status, source of income, or sexual orientation. 5. Commentary, advocacy or promotion of issues, candidates, campaigns or organizations of a social, political, religious, or rhetorical nature. 6. Depiction in any form of nudity or semi -nudity, profanity, obscenity, or lewdness or characterizations which suggest, depict or promote any such element or sexually oriented products, activities or materials. 7. Use of language or descriptive material which taken in form and context is deemed to be unsuitable for and contrary to community standards or standards of appropriateness for governmental or family audience. 8. Use of words, language, representations or descriptive material of any kind having more than one meaning or connotation, one of which would otherwise be prohibited under these guidelines. All advertising shall conform to guidelines above and must be approved by the "City" before production. The City approval process will require Prime to submit a proof of all proposed advertisements to the City, including content, size and proposed placement. The City retains absolute discretion to reject any proposed advertisement and Prime shall have no claim for damages or other loss related to any such denial and shall further defend and indemnity the City from any claims by advertisers related in anyway to the City's rejection of a proposed advertisement. 6450 Wedgwood Road Noodi,Suite 100 • Maple Grove, MN 55311 • P/763.551.3700 • Fn63.551.3701 • PiimeAdveitising.com • NlyPrinieGuide.com RRIMC- ADVEPTISINO i DESIDN Proposed Advertising Rates % Page, 4-Color $349 %4 Page, 4-Color $489 Y Page, 4-Color $759 6450 Wedgwood RoadNorth, Suite 100 • Maple Grove, MN 55311 • P/763.551.3700 • 17/763.551.3701 • PiimeAdvertising.com • MyPrimeGnidexom SPECIAL CITY" COUNCIL MEETING OTSEGO PRAIRIE CENTER AUGUST 29, 2016 *6:00 PM Call to Order. Mayor Jessica Stockamp called the meeting to order at 6:23 PM. Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner, Doug Schroeder and Jason Warehime, Absent: Councilmember Tom Darkenwald. Staff. Lori Johnson, City Administrator; Adam Flaherty, Finance Director; Daniel Licht, City Planner; Ron Wagner, City Engineer and Tami Loff, City Clerk. 1. 2017 Budget Discussion. City Administrator Johnson reviewed the draft General Fund budgets as followed. City Council: The City Council concurred to reduce WCAT to $1,000 and to move this line item to contracted services. City Administrator Johnson stated the need to have the city code codified. She received a proposal from the League of Minnesota Cities in the amount of $25,000. She recommended that the Council do an RFP if they agree to codify the code. The City Council concurred to have City staff conduct additional research and report to the Council at a future meeting. City Administrator Johnson stated if codification is approved, funding could be allocated from the 2017 Council Contingency or the project could be delayed until 2018. Administration: City Administrator Johnson reviewed the Administration budget in detail. She - reviewed an option to reduce the newsletter budget by $3,800 by using Prime Advertising. This would give the city a quarterly eight page colored newsletter with articles provided by the city and advertising for local businesses. The City Council reviewed samples of Champlin and Maple Grove newsletters. The City Council concurred and recommended inviting Prime Advertising to the October 29 Otsego businesses meet and greet. Elections: City Clerk Loff reviewed the request by Wright County to upgrade the city election tabulator machines to DS200 by the 2018 elections. The current estimated cost of each tabulator is around $6,700. She further reviewed the option to possibly purchase used refurbished machines at $1,000 off that price. City Clerk Loff is also recommending looking at adding an additional precinct in 2018. The City Council agreed as presented. This item will be reviewed further during the CIP discussion. Assessing: The City Council agreed to reduce the building permit charge from $50 to $25 when the fee schedule is approved to eliminate the GIS component and to be consistent with the County fee. Finance: Finance Director Flaherty reviewed the finance budget which included a proposal from KDV for auditing services. Finance Director Flaherty is recommending a three year contract with KDV. The City Council agreed the with finance budget as presented. Finance Director Flaherty will bring back proposal from KDV to a future consent agenda for approval.