Approve Termination of Ramsey Resident Advertising Sales Contract

The City entered into an Agreement with Youth First on October 1, 2009, for the purpose of providing sales services for the selling of print advertising in the City's Newsletter known as the Ramsey Resident.  On March 15, 2011, the City entered into a new Agreement with Scott Robinson and Deano Majkrzak dba Wheels of Thunder where Wheels of Thunder assumed the terms and conditions of the Youth First Agreement.  Scott Robinson has since been operating under the business name of Universal Apparel.  As the City's communication efforts have evolved in recent years, staff has discussed the efforts to bring advertising sales in house to the staff level.  One large factor in this discussion has been the reality of our Communications Coordinator recreating the advertisement images for the businesses.  In addition, the City has received regular repeat businesses purchasing advertising opportunities.  Staff believes efforts can be assumed as part of normal duties to continue the relationship with the regular businesses choosing to advertise in the Ramsey Resident, while working to expand the outreach to new businesses.

Currently, the revenue is being shared between the City and Universal Apparel.  As proposed by staff, by bringing advertising sales to normal staff duties, we believe the customer service to our businesses will increase by providing more direct communication while creating the ads for them.  It would further allow us to provide a more consistent pricing structure, which would include a discounted rate when a business chooses to purchase six consecutive ads.  Additionally, the city would retain all revenue collected through the sales, thus increasing our revenue and helping offset the cost of publishing six Ramsey Resident Newsletters annually.

The Ramsey Resident is annually budgeted for through the general expenditure and revenue funds.  Terminating the Agreement with Universal Apparel would not significantly change normal staff duties associated with publishing the newsletter.  It would, however, increase the City's revenue generated through advertisement sales even if the number of ads stays consistent with historical utilization by businesses.

Staff recommends terminating the Agreement between the City of Ramsey and Universal Apparel.  Staff further recommends conducting advertisement sales through normal staff duties.

Motion to Terminate the Ramsey Resident Advertising Sales Agreement subject to 30 days written notice per section 9 of the agreement.