Agenda - Council Work Session - 10/12/2010

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M CITY COUNCIL WORK SESSION Topic Report: Review City Newsletter/Marketing Contract By: Kurt Ulrich, City Administrator Background: The City has contracted with Youth First Marketing (YFM) since the November/December 2009 issue of the newsletter to sell advertising in the newsletter for a share of the revenue. Under the agreement, the City receives fifty percent of the gross advertising revenue collected. YFM receives the other fifty percent, less seven percent to be donated to Youth First, Community of promise. Discussion: The City has received $11,616 in revenue from YFM since November 2009. This equates to $2,904 per issue, offsetting approximately $5,800 per issue in printing costs, and not including postage. Advertising rates are based on a rate chart approved by the City. YFM has discussed getting City authorization for rate discounts in the past to increase sales. A discount rate chart has not been formally approved by the City, nor requested by YFM. Efforts to collect record of invoiced advertising rates from YFM have been unsuccessful (see attached information). Consequently, the City is unable to verify if we are receiving the appropriate revenue per the existing contract. The Youth First, Community of Promise (a non - profit group) board of directors, recently directed an attorney to take action against YFM, for inappropriate use of the "Youth First' name in their marketing activities. Mayor Ramsey serves on the Youth First Board on behalf of the City. The Youth First Marketing representative has made aware of the work session discussion. A copy of the current contract is attached. Staff Recommendation: It is recommended that the City Council review the current status of the relationship with Youth First Marketing and provide direction based upon the above information. Action Statement: Based upon discussion.