Memo-Facillities Division Advertising And Naming Rights
.. .
. Hopkins Pavilion
Memo
To: Honorable Mayor and Members of the City Council
From: Don Olson, Pavilion Manager
Date: October 13, 2000
Re: Facilities Division Advertising and Naming Rights
Attached you will find a report outlining an advertising program for the Facilities
Division. Facilities staff has reviewed and presented the program to the Public Works
Director. Staff now feels it appropriate to present the advertising program to Council
for discussion and direction as to whether the city would like to move forward with the
. concept of a facilities wide advertising program and the possible sale of naming rights
to city owned facilities.
.
. Page 1
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. Facilities Division Advertising Program
Overview
In 1996 the Pavilion received Park Board approval to lease advertising space on the
ice resurfacer and around the scoreboard. Now with the creation of the Facilities
Division, staff proposes an expanded advertising program to include: an increase in
advertising space available at the Pavilion, the lease of advertising space at the
Overpass Skate Park, and approval for the sale of naming rights to the Overpass
Skate Park, the theater in the Center for the Arts, the Hopkins Pavilion, and the
naming of rooms at the Hopkins Activity Center,
Also as part of this program is the installation and city use of a community events
sign to replace the Pavilion's Excelsior Blvd. sign. The community events sign would
consist of the city logo, an electronic sign for announcements and community events,
and an advertising display portion, The sign would be available for use by the city,
schools, organizations, and the public.
The Facilities Division has been working with Rich Feneis of Feneis Enterprises. Inc.,
a sign development and consulting firm in the development of an advertising program
for the City of Hopkins Facilities Division.
. Detailed Information
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Pavilion
Scoreboard: current Iv offered 2-4'x9' spaces and 6-3'x8' spaces
surrounding the scoreboard
Ice Resurfacer: currentlv offered 2-2'x7' spaces on the sides of the ice
resurfacer
Dasher Boards: proposed 3'x7' spaces on the arena dasher boards
Wall/Garage Doors: proposed 3'x8' ad panels on walls and garage doors
Metro Board: proposed that a metro map/informational board be
installed in arena lobby with saleable ad space and
public service announcements
The revenue from the lease of advertising space at the Pavilion has the potential to
exceed $15,OOO/per year.
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. Page 2
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. Overpass Skate Park
Sign Board Advertising: proposed 2'x4' and 4'xB' ad panels located in visible
areas at the Skate Park
The revenue from the lease of advertising space at the Skate Park has the potential
to exceed $5,000/per year.
~mll::Rljlit#
The individual or corporate naming of the theater in the Hopkins Center for the Arts
suggested to be sold for $250,000 payable over ten years at $25,000 per year,
Naming of the Skate Park for $100,000 payable over ten years at $10,000 per year,
The naming rights to the Pavilion for $250,000 over ten years and the possible
naming of rooms at the Hopkins Activity Center,
{gemlgnll:[ll'n
Siqn costslrevenues
. Purchase and installation of a community events sign by Feneis Enterprises1
Inc.
Feneis Enterprises shall pay the following:
. Feneis Enterprises purchases and installs the sign. The sign then is donated
to the city.
. All costs, taxes, and expenses necessary to establish, solicit, and maintain the
advertisement/display portion
The city shall pay the following:
. Insurance coverage on the sign
. Maintenance and repair to all components except the electronic portion
. A maintenance agreement of $200.00 per month entered into by the city with
Feneis for the maintenance of the electronic portion of the sign
. The city provides a primary power supply and a phone to the base of the sign
. All electrical bills incurred as a result of the sign
. . Restoration or landscaping of the site after the sign is installed
. Page 3
. Revenues
. Feneis retains all rights to sell, rent, lease or otherwise transfer advertising
rights to the advertisement/display portion of the sign for a period of fifteen
years. At the end of the fifteen-year period, Feneis shall retain exclusive
option to sell such to sell said advertising for the city for a commission of
fifteen percent.
. The city has all rights to fees charged for sign use for example: a $10.00 set
up fee and $5.00 per day for sign usage charged to the Raspberry Festival for
an announcement about the Grand Day Parade or a monthly fee of $100.00
charged to the school district for a specified amount of use during that month.
(Attached is a list of possible uses for the sign)
The siqn is described as follows:
. Overall dimension is twenty five feet (25') in height from grade to top of the
sign; and sixteen feet (16') in length
. The portion of the sign containing the City of Hopkins logo consists of 2" thick
material with pictorial details painted per the city logo
. . The portion of the sign available for the city's use for displaying community
events or announcements measures four feet six inches (4'6") in height by
eleven feet-six inches (11 '6") in length
. The advertising/display portion of the sign measures four feet (4') in height by
sixteen feet (16') in length
Primary Issues to Consider
Should the current advertising program be expanded to include other facilities?
The goal of any city owned and operated facility is to provide the best possible
service at the lowest cost to the taxpayer, As facility managers we are always looking
for new sources and opportunities that create revenue, which can help maintain and
operate our facilities and increase the services or programs offered, The lease of
advertising space is a source of revenue that can be generated at little or no cost to
the facility, the city, and the taxpayer.
The lease of advertising space is becoming normal operating procedure at sports
and recreation facilities and is a part of the financial plans for most facilities being
. built now. Most of the ice arenas in the metro area lease advertising space of some
kind,
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Should the naming rights of city facilities be sold?
The city has honored individuals and organizations for their contributions and support
(financial or otherwise) in the past by naming a park, street, or a room in a facility
after that individual or organization.
The revenues created by the naming of city facilities would help each facility make
improvements, cover operational expenses, or be able to expand the services
offered at the facility at no cost to the public.
Should a community sign be constructed on Excelsior Blvd?
The City of Hopkins has a very active community, an events sign would give the city,
schools, civic organizations, and individuals a place to communicate to all the
residents and guests that travel through Hopkins everyday,
The concept of an electronic sign is not a new idea, The Hopkins Jaycees supported
the idea several years ago, but the sign concept was abandoned due to the high cost
. of purchasing the sign, The plan outlined in this report puts the cost of the sign at a
$200 monthly maintenance agreement.
Attachments
. List of possible uses for a community events sign
. Examples of other cities event signs
.
. Page 5
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. SIGN USAGE
CITY USE SCHOOL USE
Activity Center High School Hockey Games
Classes
Clubs and Meeting Information
Events COMMUNITY EVENTS
Farmers Market
Center for the Arts Heritage Days
Concerts Mainstreet Days
Events Raspberry Festival
Softball Tournaments
Depot Coffeehouse Youth Hockey Tournaments
Events Jaycees Egg Hunt
Information - hours, location, etc,
PUBLIC USE
Pavilion Non-Profit Organization Activities
Dry Floor, Turf and Ice Rental Information Anniversaries
Ice In Date Birthdays
Indoor Soccer Confirmations
Lacrosse Engagements
. Open Skate Graduations
Roller Hockey
Public Works
BrushlYard waste Drop Off Site Info
Bulk Drop Off Dates
Free Leaf Pick up Dates
Free Brush Pick up Dates
Holiday Refuse Route Info
Hydrant Flushing Dates
Snow Emergencies
Street Sweeping Info
Citywide
Citizen's Academy
Employment Opportunities
Home Remodeling Show
Open House
Public Meetings
.
, SARTELL COllflOONITY
.
EVENTS SIGNS
.
ST. JOSEPH
WITY EVENTS ~~IGNS
"'~i~}:~~J
.
. 2001 BUDGET - DEPARTMENT REQUESTS
. Initial Requests
Attached to this report is a summary of requests for the year 2001 budget. The initial requests were
approximately $300,000 over our established limlt for the 2001 budget. The largest areas oflncrease
over preliminary estimates were capital outlay requests and salaries. Finance underestimated capital
outlay requests by $200,000. This included eliminating the fire station roof and exhaust system from the
preliminary budget. Salaries were underestimated at $75,000. The only explanation for this is additional
contract settlements since the estimate and addltional overtime and part-time requests. Departments were
requested to reduce needs for the year 2001 by postponing projects, eliminating programs or reducing
line items. After this process is complete we will be at the maximum established budget for the year
2001. This maximum does include a small contingency amount for the unresolved salary and benefits
agreement for the year 2000 and 2001.
Program budgeting is in effect. We wi 11 hand out a listing of programs with affiliated revenues. Weare
requesting departments to provide each program's activities and objectives.
POLICE
The police department currently reflects an increase over last years' budget of9.8%. The police
department is broken down into thirteen programs. The police administration program is accounted for
. separately but is allocated to the direct service programs on a prorated basis. The programs with brief
descriptions of their activities are as follows:
. Property Room Management - public service officer managing evidence ceased property,
. Patrol- police officers, public service officers, sergeants and detectives, enforcing the law,
. Heat Team Special force team for high-risk entries and operations.
. Reserves - Working with pollee volunteers to assist regular officers in civic events, community
outreach, ect. . .
. Investigations -- Follows through on criminal cases to closure.
. Metro Drug Task Force Works with other agencies to investigate drug related crimes in metro area,
. Pawn Shop Management - Records pawnshop activities and coordinates the disposition ofrecovered
stolen property.
. Police Outreach - Conununity a'vvareness and school programs
. Chemical Health Commission - Liaison for commlssion
. Police Counter Act - Drug prevention program for grade school.
. Public Safety Answering Point Answering police calls for service (911)
. Reception and Records Checking - walk in customer service and checking records for police
officers,
. Systems and Records Management - Maintain police computer and records systems.
Year 2000 major objectives for the Police department were:
../ Promote 2-3 sergeants due to retirements and other personnel changes.
,/" Alter sergeants and patrol officiers work schedule to facilitate "Team Policing".
. ../ Conduct officer hiring process.
../ Keep filing of propelty current to within one week.
. ,/ Keep computerized entTY based of aU inventoried property.
../ Add at least one additional Heat Team member.
../ Bring complement of Police Reserves up to 25.
,/ Rotate four new officiers through investigations intemships.
,/ Increase utilization of Reserves on minor investigations follow up.
,/ Continue participation in the Metro Drug Task Force,
,/ Expose other officiers to task force operations utilizing task force overtime funds.
,/ Conduct one random inventory and compliance check at each pawn shop.
,/ Finalize research on feasibility of joining metro wide automated pawn shop system.
,/ Increase bike safety education program.
,/ Reduce false alarms through awareness program.
,/ Conduct one joint town meeting with school district regarding alcohol, tobacco and other drug
prevention.
,/ Continue support of district "4R" Youth - Reduce the Use campaign.
,/ Continue to work with City Council on liquor issues/licensing/training for tabacco and liquor
retailers.
../ Increase parental awareness of crime prevention program.
../ Increase parental cooperation in assisting children with required homework assignments for
crime prevention.
../ Iimplement new dispatch, reception and Tecords employee work schedule.
../ Plan, prepare and order new computer aided dispatching (CAD) system.
../ Implement new Records Management System (RMS).
../ Functionally integrate PSCC into the new Records Manangement System.
../ Install new windows NT -based computer network.
.
FIRE
The fire department cun'ently reflects a 2.9% decrease over last yeaTS' budget. The decrease is
associated with the reduced capital outlay requests for 2001. The fire department is broken down into
three programs, The programs with brief descriptions for their activities are as foHows:
. Emergency Medical - responds to emergency medical calls.
. Fire Prevention provides public fire education, provides member education and training drills.
. Fire Suppression - responds to aH emergency calls for fire, hazardous materials and specialized
rescue situations.
Year 2000 major objectives for the Fire department were:
../ Refine the office mentoring process to assure qualified candidates for fire chief in 2003.
./ Refine the Tecruiting process started in 1999 and establish a list of ten quality people.
./ Develop a long range plan (3 and 5 year) for City Manager dealing with fire department daytime
response to emergencies.
../ Redo the standard operating guidelines,
.
.
. EMERGENCY PREPAREDNESS
The emergency preparedness department currently reflects a 6,6% increase over last years budget
Emergency preparedness provides a program of public safety that includes an effective siren warning
system that is audible at all locations within the City of Hopkins.
Vear 2000 major objectives for the Emergency Preparedness department were:
./' Table top exercise, prepare for full scale exercise,
./' Full scale exercise, EOe activation.
./' Maintian City's emergency plan.
./' Upgrade City's emergency operations center.
FINANCE
The finance department shows an increase over last years' budget of 11.9%. This is attributed to the
increase in equipment allocation costs from the replacement plan for future computer system needs. The
finance department is broken down into nine programs. The programs with brief descriptions of their
activities are as follows:
. Benefit Administration - provides employees with benefit information, reconciles all benefit
accounts and establishes reliable and cost effective plans for the city and its' employees.
. Budget prepare levy, provide all budget forms and information for departments, provide input
. into long and short range planning process.
. Cash Management - invest city funds according to policy, forecast cash flow needs, establish 20
year cash flow projection for each fund.
. Debt Management - issue bonds according to project needs and city ability, maintain
manageable debt level and ensures compliance.
. General Accounting - process accounts payable and cash receipts, reconcile accounts, provide
monthly financial statements and analysis.
. Payroll - processes bi-weekly payrolL maintians payroll changes, file all payroll reports
. Risk Management ensure adequate insurance coverage at affordable price for the dty, file
reports and maintian claims records.
. Tax Increment Financing Administration - financial reporting and compliance for each district
. Utility Billing - customer service, process monthly utility bills, maintain utility billing system,
and schedule utility service changes.
Debt Management, TfF Administration and Utility Billing are reimbursed entirely from other funds.
Year 2000 major objectives for the Finance department were:
./' Utilization of Govern software system.
./' Create twenty year cash flow projection for all funds.
./' Apply for Government Finance Officers' Budget Award.
./' Prepare annual Tax Increment reports.
./' Apply for Government Finance Officers' Comprehensive Annual Financial Report Award.
. ./' Implement job sharing for finance activities.
. ADMINISTRA TlVE SERVICES
The administrative services department shows a decrease over last years' budget of 5 .6%. This decrease
is a direct result of increasing the amount charged to the enterprise funds for administrative services. The
administrative services department is broken down into seven programs. The programs with brief
descriptions of their activities are as follows:
. Administration - direct and control the administration of City affairs, provide guidance with
charter, policies, laws and resolutions.
. Legislation - keep abreast oflegislative activity.
. Agenda - establish agenda for monthly council meetings and work sessions.
. Personnel- negotiates labor contracts, maintains personnel records, all personnel reporting
requirements and procedures.
. Information Services - establish and maintain city computer network system, plan for individual
and citywide computer needs,
. Capital Improvement Planning - annually forecast five-year capital improvements for the city.
. Wellness provide and support wellness activities for city employees.
Year 2000 major objectives for the Administrative Services department were:
,/ Completion of Visioning process.
../ Formation ofa City of Hopkins Strategic Plan.
,/ Hiring a Police Chief.
. ../ Adoption of a Technology Plan.
COUNCIL
The council department shows an increase over last years' budget of 1.3%, The council department is
broken down into two programs. The programs with brief descriptions of their activities are as follows:
. City Council - establish city code. goals and objectives through input from citizens, city staff,
and other interested parties. Control city finances through policies and budget approval.
. Health and Welfare - provide funding of social organizations within the city.
.
.
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