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HomeMy WebLinkAboutC-3482 - Letter Agreement (for Consulting and Advertising Services for City Mailing Program Related to Airport Settlement Agreement)MI T I A MSNALLY TEMPLE ASSOCIATES, INC. September 25, 2001 Mr. Homer L. Bludau City Manager City of Newport Beach 3300 Newport Blvd., P. 0. Newport Beach, California LETTER OF AGREEMENT Dear Mr. Bludau: Box 1768 92658 -8915 This letter is to confirm that the City of Newport Beach has retained McNally Temple Associates, Inc. (MTA) to provide consulting and advertising services for facilitating all aspects of the corridor city mailing program as outlined in Addendum A. This agreement is to become effective September 25, 2001, and continue through March 31, 2002. Our agreement may be canceled by either party upon receipt of fifteen days written notice. We will be paid a fee of $33,000 for our consulting services, payable as follows: $5,500 on October 1, 2001; $5,500 on November 1, 2001; $5,500 on December 1, 2001; $5,500 on January 1, 2002; $5,500 on February 1, 2002; $5,500 on March 1, 2002. At the discretion of the City of Newport Beach, other cities participating in the program have the option to contribute financially by making payments directly to MTA for a portion of the fees associated with this effort. The amount paid would be deducted from the fees owed by the City of Newport Beach. Our above mentioned fee covers consulting services only, and does not include our services for the creation or production of advertising material. In addition to our fee, we will be reimbursed separately for out -of- pocket expenses, including, but not limited to, necessary long- distance travel, meals and lodging, long distance telephone charges, photocopying, messenger and delivery services and postage. Automobile travel outside of Orange County will be billed at 31 -cents per mile. With your written approval on a per project basis, we may also contract with vendors for goods and services such as printing, artwork, photography and audio /video production. The cost of such production will include a 15 percent commission of gross for us, computed by multiplying the net cost of the goods or services by .1765. This commission will cover copywriting, 1817 Capflel Avenue Sacramen10 r.A I 95814 I I II III III 11 11th 1 !III. 111 1, %-k W 1111 1.111Y11'1111 111! 1.11111 McNally Temple Assoft, Inc. CITY OF NEWPORT BEW LETTER OF AGREEMENT September 25, 2001 Page 2 of 2 creative direction and production management. We will also retain any media commissions earned on advertising placed by us. All advertising production costs will be estimated in advance. Production costs are subject to California's 7.50 percent sales tax. Our consulting fee will be due and payable, as outlined above, while out -of- pocket expenses will be billed at the end of each month on a separate invoice. Approved advertising production expenses and applicable sales taxes will be billed separately. A service charge of 1.5 percent per month (18 percent per annum) will be added to all invoices thirty days past due. We mutually agree that in the event arbitration arises out of this agreement, that jurisdiction and venue shall be Sacramento County, California and that the laws of the State of California shall govern this agreement. Any controversy between MTA and the City of Newport Beach involving the construction or application of any of the terms, provisions, or conditions of the Agreement shall, on the written request of either party, be submitted to arbitration. Arbitration shall comply with and be governed by the provisions of the American Arbitration Association and conducted in Sacramento, California. The cost of arbitration, including award of attorney's fees, shall be borne by the losing party or in such proportions as the arbitrators decide If this is your understanding of our agreement, please sign and return this letter to us. A copy has been included for your records. We rpok forward to working with you. -FY'e'sident � f Richard Temple Vice President I approve the foregoing: X '"�� ��'� Date ,ZO.P/ Homer L. Bluda , City Manager or 0 ©0lU October 1, 2001 ADDENDUM A MSNALLY TEMPLE ASSOCIATES, INC. TO: Homer L. Bludau FR: McNally Temple Associates, Inc. RE: John Wayne Airport Initial Settlement Education Effort We have assisted with two mailings to residents in Newport Beach educating them about the Airport Settlement Agreement and the need to modify and extend the agreement. The second mailing included a response device that generated more than 1800 return post cards or 7.5 percent. The original survey results and these returns suggest that the Airport Settlement Agreement is something local residents believe is important and critical to their property values and quality of life. With the county well into completing the Environmental Impact Assessment, contemplating actions later this fall and with a vote on the EIR early next year, we recommend expanding the education effort in three ways. 1. Expand the effort to all residents in the flight corridor to broaden our reach into key parts of the county. We recommend three mailings to residents in the JWA flight corridor with all three including postage paid response devices. Our goal would be to develop a list of 20,000 residents who are motivated to learn more about this issue. 2. Regularly communicate with those residents who return a response device to educate them about the EIR and need to modify the original Agreement. 3. Maintain the database of those residents in the flight corridor who return a response devise to facilitate future communication with them. 1017 Capitol AvenueSacramenIn CA I 95014 1 1 11111 �I'l i 1111111 I' 11111 I'll Ii 1 ,I I W III. II•111 wield" 1.11111 McNally Temple Associ Inc. Clty of Newport Beachtdendum A Page 2 of 5 Targeting This broader approach into the John Wayne Airport flight corridor is important to educating residents in key parts of the county. We would target our messages appropriately for Newport Beach and the other cities in the flight corridor. Noted below are the zip codes we plan to target in order to reach residents impacted by the flight corridor. They are organized into three target groups — Newport Beach, Tier One and Tier Two. Newport Beach (Estimated Count 27,904) 92657 Newport Beach /Newport Coast 92658 Newport Beach 92659 Newport Beach 92660 Newport Beach 92661 Newport Beach 92662 Newport Beach 92663 Newport Beach 92625 Corona del Mar Corridor Cities (Estimated Count — 129,985) 92626 Costa Mesa 92627 Costa Mesa 92628 Costa Mesa 92705 East Santa Ana/Cowan Heights 92707 South Santa Ana 92710 Tustin 92780 Tustin 92782 Tustin 92807 Anaheim Hills 92808 Anaheim Hills 92861 Villa Park 92862 Orange 92866 Orange 92867 Orange 92868 Orange McNally Temple Associ nc. City of Newport Beach — endum A Page 3 of 5 92869 Orange 92886 Yorba Linda 92887 Yorba Linda Frequency Regular communication with those residents who return a response device is critical to keeping them informed about the EIR, Settlement Agreement and pending county actions. Frequency of communication is important to making sure certain messages break and that local residents are knowledgeable about these critical issues. We recommend communicating with this group of concerned residents monthly or more often should developments in the county require greater frequency. In so doing, these residents will understand the importance of the Airport Settlement Agreement, EIR and pending county actions. Key Messages The original survey results suggest that the most important element of the education effort must be to inform residents that an Airport Settlement Agreement exists and what it does — especially limiting flights, hours of operation, flight operations and aircraft dimensions. Once residents know of the agreement, they tend to support it quite strongly. We should also explain what could happen when the Airport Settlement Agreement expires — likely more noise, more flights, longer operating hours, bigger planes and greater traffic congestion near and around the airport. These will all tend to affect property values and the quality of life for most residents. We can do this first by calling to the attention of residents the number of planes that fly over their homes already and suggesting that they do not want more. Finally, we should explain that the corridor cities are working to extend the Airport Settlement Agreement. The communication should include a call to action, like completing a response devise for more information. McNally Temple Associ Inc. City of Newport Beach 3Wdendum A Page 4 of 5 • For those residents who have already returned a response device, we recommend varying the text of each mailing to not include another response device when communicating with them. For example, the next communication with those who returned the response device included in the second mailing to Newport Beach residents, could thank them for returning the response device and give them an update on the city's actions. Schedule We recommend the schedule below for the three mailings to residents living in the flight corridor and for regular updates to those who return response devices. We have noted important dates in the county's EIR process and final board action on February 26, 2002. Week of October 15 Corridor city manager letter with response device Week of October 15 Newport Beach thank you letter to respondents and update letter to all others Week of October 25 City manager thank you letter to corridor city respondents and update letter to all others with second response device Week of October 25 Brochure /newsletter format to Newport Beach Week of October 31 Corridor city manager thank you letter to respondents to piece #2 and update to all others October 29, 2002 EIR Released Week of November 5 Update One — EIR Release Week of December 3 Update Two — EIR Process Update Week of January 14 Update Three — New Year Update/Timeline Week of February 4 Update Four — EIR Update Week of February 11 Update Five — EIR Update McNally Temple Assoc Inc. Clty of Newport Beach — ddendum A Page 5 of 5 February 20, 2002 February 26, 2002 Week of March 4 Preliminary Budget • Publish Final EIR Certify Final EIR Update Six — EIR Action Report We have prepared a preliminary budget to execute the strategy included in this plan. It includes all anticipated expenses i.e., agency fees, administrative expenses, copywriting, graphic design, production expenses postage and data base management. It includes an agency fee of $5,000 per month through February of 2002. Agency fees $ 30,000 Administration 3,000 Direct Mail Corridor Cities 222,000 Return Postage 10,000 Updates 60,000 Total $ 318,000