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Agenda Item
ASR
Control 23-000382 |
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MEETING
DATE: |
05/09/23 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Thomas
A. Miller (714) 834-6019 |
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Elizabeth
Guillen-Merchant (714) 834-6836 |
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Subject: County of Orange Official OC Brand
Merchandising and Marketing Plan
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement(s) and Resolution(s) |
Public
Hearing |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: See Financial
Impact |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: Yes |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 6/4/1996, #16 |
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RECOMMENDED
ACTION(S):
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1. |
Conduct Public Hearing pursuant to
Government Code section 26110. |
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2. |
Adopt the Resolution for the Official OC
Brand Merchandising and Marketing Plan to pursue merchandising partnerships
and sponsorships with nonprofit organizations, private sector organizations
and businesses in support of programs and events administered by the County
of Orange. |
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3. |
Find that the programs described in the
Official OC Brand Merchandising and Marketing Plan meet the social needs of
the population of the County of Orange as described in the attached
Resolution. |
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4. |
Find that the use of County of Orange
resources, as described in the attached Resolution, is appropriate and
authorized to carry out these programs and activities as set forth therein. |
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5. |
Authorize the Chief Real Estate Officer
or designee to carry out all programs and activities described in the
Official OC Brand Merchandising and Marketing Plan and pursue merchandising,
marketing, sponsorships and fundraising partnerships with nonprofit
organizations, private sector organizations and businesses in support of
programs and events consistent with the attached marketing plan, and to
execute agreements and other documents consistent with the plan and other
approvals herein. |
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6. |
Direct the Chief Real Estate Officer or
designee to return to the Board of Supervisors with any proposed agreements
pursuant to the attached merchandising business plan pursuant to Government
Code section 26110 and Section 2-5-127 of the County of Orange Codified
Ordinances. |
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7. |
Approve the Trademark License Agreement
with 10th Hole Associates, Inc. and delegate authority
to the Chief Real Estate Officer or designee to execute the agreement in
substantially the form attached, with minor modifications that do not
increase the cost or liability to the County of Orange, with approval of
County Counsel, which will permit the County of Orange to license its logos
and brands, and to approve amendments thereto for licensing of additional
marks or logos that do not increase the cost or liability to the County of
Orange. |
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8. |
Authorize the County Procurement Officer
or Deputized designee to execute Amendment #3 to Agreement MA-017-22011209
with Kurtis Schureman DBA Caveman Crayon, for graphic design services, in an
amount not to exceed $500,000. |
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9. |
Authorize the County Procurement Officer
or Deputized designee, to procure and issue any contracts for trademark
valuation, marketing and communications, creation and maintenance of
ecommerce website, product design, and/or manufacturing services in support
of the Official OC Brand Merchandising and Marketing Plan and to execute
contracts with companies for a three-year term, renewable for an additional
two-year term, consistent with the Contract Policy Manual. |
SUMMARY:
Adoption of the Official OC Brand
Merchandising and Marketing Plan will provide opportunities to pursue
merchandising, marketing, sponsorships and revenue partnerships with private
sector organizations, businesses, and non-profit organizations to support programs
and events administered by the County of Orange, including the Trademark
License Agreement with 10th Hole Associates, Inc.
which will permit the sale of County branded merchandise at Salt Creek Beach.
BACKGROUND
INFORMATION:
The Board of Supervisors (Board)
adopted the Orange County Marketing Ordinance (Ord. No. 96-3969) on June 4,
1996, thereby allowing for revenue generation from the County’s real and
intellectual property. The Marketing
Ordinance requires a Board-approved plan to outline how County of Orange
(County) departments or agencies should engage in such activities. The Orange County Marketing Ordinance
contemplates the creation of detailed plans of how the County of Orange, or any
department or agency thereof can market its intellectual property, including
for private commercial use, and publicize acknowledgment of a sponsor's
financial assistance.
The County has a strong brand
identity with positive associations to build upon with its Official OC Brand of
goods and merchandise. Retailers throughout Orange County generate
approximately $52 Billion in annual sales. With a population over therr
million, Orange County is a brand focused and fashion-forward community. This is, in essence, an untapped market for
officially branded County of Orange apparel and goods. The County
has the opportunity to not only expand its brand reach on-line but also
through partnerships with manufacturers and retailers, through licensing and
other agreements.
The County Executive Office Real
Estate Department (CEO-RE) has developed and will continue to develop certain
marks, logos and slogans that are identified with the County and its
departments that can be used for merchandising, promotion and revenue
generation herein referred to as the “Official OC Brand.” Official OC Brand branded apparel,
merchandise and goods will create a positive association with the County of
Orange and promote positive connotations of the County with residents and
visitors alike. This will increase public awareness of the County as an
entity apart from the governmental structure, focusing on the benefits of the
County of Orange as a place to live, work and play. This will also assist
in educating the community in general about the County, its mission, assets and
services while providing high quality, stylish merchandise and goods for sale
to the general public, including County employees.
The Official OC Brand Merchandising
and Marketing Plan (Plan) defines how CEO-RE in conjunction with County
agencies, such as OC Parks, OC Public Libraries, John Wayne Airport, County
Executive Office, etc., can incorporate the initiative with their respective
programs to further market, fundraise, increase community education and pursue
financial and in-kind sponsorships with nonprofit organizations, private sector
organizations and businesses. The Plan provides a framework for the creation of
original trademarkable logos, marks and slogans that will be used to design and
produce merchandise and goods to generate revenue to support the County’s
various public missions and create a stream of revenue to support these
programs and social needs of the County and its residents.
The
purpose of the Plan is to communicate the County of Orange merchandising
vision, strategies, and action priorities to help expand brand awareness for
the Official OC Brand, which in turn will generate goodwill and a positive,
authentic brand identity. The Plan allows CEO-RE to develop marks, logos,
design concepts and slogans which will then be trademarked or protected by
common-law usage. In turn, the intellectual property will be utilized to
produce merchandise and used in licensing arrangements and collaborative
cross-branding partnerships with established vendors, with an emphasis on
utilizing Orange County vendors if possible. The Plan provides a
framework for the creation of original trademarkable logos, marks and slogans
that will be used to design and produce merchandise, products and goods to
generate revenue to support the County’s various public missions and create a
stream of revenue to support the programs and social needs of the County and
its residents. The revenue derived from these efforts will be used to
support programs related to the specific departments for which the logos, marks
and slogans will be developed and will provide additional revenue to the County
General Fund for general Orange County merchandise. Attachment B- Official OC
Brand Merchandising and Marketing Plan has been made available to the Clerk of
the Board due to file size limitations.
CEO-RE,
in cooperation with OC Parks, initiated a pilot program this past spring and
produced branded merchandise for the OC Zoo and the County, which was sold
on-site at the Orange County Zoo. This
merchandise included t-shirts, hats, water bottles and stickers. The initial pilot program was successful and
has resulted in the creation of the Plan to formalize the program going
forward. The Plan contemplates a variety
of merchandising opportunities, from the creation of merchandise by the County
with direct sales to consumers, to licensing collaborations with private
companies, where those companies would produce and sell County branded merchandise and goods. With the approval of the Plan, CEO-RE will be
authorized to utilize County funds and allocate merchandise for promotional
activities including giveaways, donations and informational purposes that raise
awareness of the Official OC Brand and in turn generate interest in the County
of Orange itself, as well as County of Orange merchandise and goods.
CEO-RE, with support from County
Counsel, has also negotiated a Trademark License Agreement with 10th Hole Associates, Inc. who is the County’s
concessionaire at Salt Creek Beach.
Under this agreement, the County will produce the merchandise, which
will be purchased from the County for sale by the concessionaire at Young’s
Beach Shack at Salt Creek Beach at the amounts set forth in the agreement
attached hereto. This will generate
additional profits for OC Parks, through percentage rent under the lease, and
also from a share of the merchandise sales themselves, which will be shared
between CEO-RE, to fund the program, and OC Parks.
In addition, CEO-RE in coordination
with CEO Procurement is intending to release an Request for Proposal to procure
trademark valuation, product design and manufacturing services in support of
the Plan. This will allow the CEO-RE to
produce branded merchandise consistent with the Plan for sale or promotion
through an approved Trademark License Agreement, like the one with 10th Hole Associates, Inc. addressed in this staff
report. Based on the response to the RFP
process, the County Procurement Officer may execute more than one contract with
manufacturing companies so that we are able to cover the range of the proposed
merchandise. In addition, CEO-RE intends
to coordinate with CEO Procurement to secure additional services for a company
that would build and host a publicly accessible ecommerce website on which
consumers can order County officially branded merchandise, which would be
manufactured and shipped directly to the consumer.
CEO-RE previously entered into
Agreement MA-017-22011209 with Kurtis Schureman DBA Caveman Crayon, for graphic
design services. Caveman Crayon has
created all of the marks, logos and slogans that have been used to produce
County of Orange branded merchandise and goods to this point. Proposed Amendment #2 adds capacity to the
contract to allow Caveman Crayon to continue to provide graphic design services
under the Plan inclusive of internal County of Orange branding needs for
departments and programs. As work under
the Plan continues, CEO-RE will annually revisit the need for additional
graphic design services to assist with the Plan.
CEO Real Estate will return to the Board
prior to establishing sponsorships for approval or entering into agreements not
otherwise approved by the agenda item.
Government Code section 26110 and the Resolution approving the Orange
County Marketing Ordinance require that the Plan be reviewed by the Board
annually. CEO-RE will report back to the
Board on the status of the Plan and performance of contracts at that time, so
the Board can adopt the findings of the annual review by resolution.
The
proposed agreement and amendment are Sole Source. Caveman Crayon has demonstrated
through the current contract, their expertise designing logos and marks for
County merchandise. Having worked with the County this past year, they have
become familiar with the County’s current merchandising program and have been
integral in its establishment to date. To bring in a new vendor at this stage
would cause a creative workflow disruption as well as adversely affect the
program’s current efforts and timing. There would also be the added cost in
both time and money to bring a new vendor up to speed.
FINANCIAL
IMPACT:
The Official OC Brand Merchandising
Business Plan is intended to facilitate financial and in-kind partnerships and
allow for fundraising activities to support the core services of the County and
its programs. CEO Real Estate will
return to the Board prior to establishing sponsorships for approval. Revenue
generated will be tracked and utilized based on the requirements of each
program and be reported to the Board annually.
Existing staff will be used to conduct marketing activities as defined
in the Official OC Brand Merchandising Business Plan as part of their regular
job responsibilities.
To
establish an effective initiative, funding will be required for initial
endeavor expenditures. To this end, $350,000 in expenses is requested from Real
Estate Budget Control 035. The initial capital costs are perceived as follows:
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Initial Capital Cost Sources: |
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Staff Time for
RFP and Solicitation |
$10,000 |
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Initial
Marketing / E-Commerce & Graphic Design Fees |
$200,000 |
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Initial Pop-Up /
Manufacturing and Advertising |
$140,000 |
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Total Initial Startup Costs: |
$350,000 |
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A- Ordinance No. 96-3969
Attachment B - Official OC Brand Merchandising and Marketing Plan
Attachment C - Official OC Brand Merchandising and Marketing Plan Resolution
Attachment D - Government Code Section 26110
Attachment E - County of Orange Codified Ordinance 2-5-127
Attachment F –Trademark License Agreement with 10th Hole Associates, Inc.