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RFD- 3405 Business Items   Item #   10. a.    
Regular Council Meeting Agenda
Meeting Date: 10/09/2018  
Title:    Policy CP-1003-18 - City Sponsorship Policy - Walker
Department: Economic & Business Development  
Strategic Vision Element: Where People Choose to Grow a Business - A strong, diversified regional business centre Related Goal: Spruce Grove has a robust, growing economic base that generates balanced revenues to support the City’s high standards for services and programs.

Information
Request for Decision Summary
 
This report is intended to formalize a City sponsorship policy for purposes of greater transparency and increased revenue generation potential for the City.   
Proposed Motion
That Policy CP-1003-17 – City Sponsorship Policy be approved as presented. 
Background/Analysis
The City began recognizing the revenue potential associated with sponsorships in 2009.  Before that time, sponsorship was more of an ad hoc process and largely event focused.  Since that time, the City has taken a more proactive position on sponsorships and has rapidly expanded the number and types of sponsor agreements. 

The City is now actively involved in four broad types of sponsorship agreements, as follows:
  • Facility Naming Rights which includes Border Paving Athletic Centre (BPAC), Rotary Playscape, and the Ken Morrison/EPC Capital Spray Park in Jubilee Park
  • Other Facility Recognition which relates to naming of internal features of a facility such as the ATCO and Melcor Turf Fields at Fuhr Sports Park and the Qualico Kidzone and Zender and Jen-Col Multi-Purpose Rooms as BPAC
  • Exclusivity Agreements that include the Coca Cola Beverage Agreement and Big Sky Media's Digital Billboards
  • City-Initiated Events such as Canada Day
When preparing to solicit Facility Naming Rights sponsorship opportunities, the City prepares an Asset Valuation to determine the value of the naming rights for the facility, and then uses an open, competitive bid process to invite offers.  Subsequent to a review of the offers submitted, a recommendation goes to City Council for approval of the prospective naming rights sponsor.  While our internal processes are reasonably well defined, it has reached the point that a formal City policy would be valuable in terms of both increasing transparency and raising the profile of sponsorship opportunities. 

A draft City Sponsorship Policy is included as an attachment and is being submitted to City Council for approval.
Options/Alternatives
The recruitment of sponsorships already brings substantial revenue and other benefits to the City and community groups.  Similar to other municipalities, we use sponsorships of facilities and events as a revenue source, which in their absence, would have to be offset by taxes.   
Consultation/Engagement
This policy has been developed as a collaboration between Economic & Business Development and Community & Protective Services. 
Implementation/Communication
Economic Development is responsible for coordinating the overall sponsorship program for the City and has the lead role in recruiting and managing Facility Naming Rights, Other Facility Recognition Features and Exclusivity Agreement sponsorships.  Community & Protective Services has the lead role in recruiting and managing City-initiated Event sponsorship and sponsorships in support of Horizon Stage. 
Impacts
The City sponsorship program has generated substantial revenue for the City and provided other community benefits.  Since 2009 the City has entered into 40 sponsorship agreements specific to Facility Naming Rights, Other Facility Recognition Sponsorships, and Exclusivity Agreements.  These sponsorships represent a total of $2.14 million in revenue and $1.3 million as in-kind contributions (time on the digital billboard displays for community groups).  In 2018, we expect to receive $160,000 in revenue and $145,600 as in-kind contributions.  This does not include any potential revenue associated with the naming rights for the library and art gallery.

Attachments
Sponsorship Policy CP-1003-17
Sponsorship Policy Presentation

City Council and Committee of the Whole agendas and minutes are posted on the City of Spruce Grove website for information purposes only. These agendas may be changed at the discretion of Council by the addition or deletion of items. Anyone reviewing the draft agenda should do so on the understanding that it is subject to change by Council.

All attachments are in PDF format, and require the Adobe Acrobat Reader plug-in for viewing.

Audio from the most recent City Council and Committee of the Whole meetings are available via podcast on the City of Spruce Grove website.



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