city of kingston report to council · 2019-12-01 · the multiplex's proposed operational...

COUNCIL MEETINGO 4 JAN 2 3 '07

CITY OF KINGSTON

REPORT TO COUNCIL

Report No.: 07-062

TO:

FROM:

RESOURCE STAFF:

DATE OF MEETING:

SUBJECT:

Mayor & Council

Cynthia Beach, P.Eng., Commissioner, Sustainability & Growth Group

Lanie Hurdle, Director of Project Development

2006-01-23

Kingston Regional Sports and Entertainment Centre and Multiplex Community Centre - Naming Rights Process

EXECUTIVE SUMMARY:

Both the Kingston Regional Sports and Entertainment Centre and the Multiplex Community Centre are currently under construction. The Sports and Entertainment Centre included revenues from naming rights in its yearly business plan. The Multiplex's proposed operational budget also included revenues fi-om advertising and sponsorship.

A valuation of naming rights and sponsorship for both the Sports and Entertainment Centre and the Multiplex was recently completed by Wakeham and Associates Marketing Inc.

In collaboration with Arcturus/SMG and based on the report submitted by Wakeham and Associates, staff developed a process to ensure the award of naming rights for both facilities. Through its management contract with the City, Arcturus/SMG will retain the services of Wakeham & Associates to complete the naming rights negotiation process. The' City's naming of corporate assets policy was followed in the development of the naming right process.

In order to maintain a competitive process, the estimated values provided in the Wakeham and Associates report are not included in this report to Council. Detailed values will be provided when the naming rights are awarded by Council.

RECOMMENDATION: That Council direct staff to obtain competitive proposals for the commercial naming rights for the Multiplex Community Centre;

And that Council direct staff to implement the proposed process to award naming rights for both the Kingston Regional Sports and Entertainment Centre and the Multiplex Community Centre;

And That Council provide a direction on any other naming rights guidelines such as company names related to other locations; 7 4

REPORT TO COUNCIL.

Commissioner Beach, Growth & Sustainability

Commissioner Segsworth, Public Works & Emergency Services

Commissioner Hunt, Finance & Corporate Performance

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c.A< -./-

COUNCIL MEETINGO 4 :JAM 3 3 '07 Report No.: 07-062

AUTHORIZING SIGNATURES:

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CONSULTATION WITH THE FOLLOWING COMMISSIONERS:

- 2 c. Commissioner Thurston, Community Development Services

Commissioner Leger, Corporate Services

Jim Keech, President, Utilities Kingston

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(N/rrr indicates consultation not required)

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C O u ~ C f L MEETING0 4 ,JhtN 2 3 ’07 APPENDICES TO REPORT #07-062

January 23,2007 - -

OPTIONS/DISCUSSION:

Wakeham and Associates Marketing Inc. Report

Both, the Sports and Entertainment Centre and the Multiplex have included advertising and sponsorship revenues in their proposed operational budgets. It should be noted that these operational budgets are part of the facilities’ business plans. The Sports and Entertainment Centre’s business plan included a net minimum of $150,000 per year from naming rights revenue. The Multiplex had a minimum of $50,000 per year in advertising revenue in its business plan. The Multiplex business plan did not provide specific policy direction regarding commercial naming rights.

Wakeham and Associates recently produced reports which provide:

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Review of corporate sponsorship naming opportunity; Review of additional sponsorship opportunities; Inventory the assets accruable to a potential naming sponsor and value the applicable tangible and intangible assets; Recommendations for ways that the sponsorship opportunity might be packaged and priced, with a view toward targeted industries; The types of additional marketing benefits that could be developed that might be attractive for sponsors; Suggestions regarding allocation of resources and; Strategic direction for sponsorship initiatives.

The report defined naming rights as a package of tangible and intangible assets purchased by a company. These assets include but are not limited to:

1. PR campaign and media kits; 2. Hospitality opportunities for corporate partners to hold client hosted events; 3. Signage - External and internal, and perhaps way-finding signage; 4. Printed collateral material (brochures, programs, rack flyers, tickets, direct mail,

newsletters, etc.); 5. Advertising; 6 . Display signage; 7. Education program literature and tool kits; 8. Web site that allows for links to corporate sponsors’ sites; 9. Merchandise that can feature corporate sponsor branding and; 10. Rights to use logo and marks for communicatiodpromotion purposes.

These assets and their values will vary depending on negotiations and companies involved in the process. The recommendation report to award the naming rights will include details on assets and their values.

The report also makes a number of recommendations on processes and strategic directions for other advertising and sponsorship. It should be noted that most sponsorship and advertising initiatives for the Sports and Entertainment Centre, other than naming rights, will be managed by ArcturudSMG. City staff will be responsible for the sale of sponsorships within the Multiplex.

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APPENDICES TO REPORT #07-062 January 23,2007

- - Proposed Process

In the past months, City staff have been approached by various local companies that are interested in bidding for the naming rights of the Sports and Entertainment Centre. In order to implement an open and transparent process as well as a competitive process that will secure the highest revenue, staff are proposing the following steps for both the Sports and Entertainment Centre and the Multiplex:

1. Issue a public expression of interest, providing local companies with a time frame of two weeks to submit their proposals to purchase naming rights. The expression of interest document will be prepared by Wakeham and Associates to ensure that it meets sponsorship and advertising industry standards .

2. Any proposals received from local companies will be forwarded to Wakeham and Associates for review. These proposals will be reviewed based on specific criteria developed by Wakeham and Associates. The list of criteria will be provided to Council for information prior to the awarding of naming rights.

3. Should any of the proposals meet criteria, Wakeham and Associates will then contact the companies and initiate negotiations. At the same time, Wakeham and Associates will approach some of its contacts to identify any potential interest in the national market.

4. Once negotiations are completed, Wakeham and Associates will submit a detailed report with a recommended company for the City's approval that includes information on the other candidates. The detailed report will be presented to Council for discussion with the final recommendation being made in public along with the financial analysis.

The purpose of this process is to obtain the highest value with an affordable package of assets and to ensure that the selected company is acceptable as per the naming right policy. Wakeham and Associates is already familiar with this policy and its limitations. Through this process, local and national companies will have the same opportunities and will be reviewed based on the same criteria.

It is expected that this process would take at least a few months which means that Council could be in a position to award the naming rights to a company for both facilities in April 2007.

Naming; Rights Guidelines

The City naming rights policy provides guidelines on the process to be followed and the types of companies that can purchase naming rights of corporate assets. In order to provide clear direction to Wakeham and Associates and maximize the negotiation process, it is critical to identify any other guidelines that the City may want to impose on the naming rights. Some guidelines may not apply to both facilities.

An example of these guidelines is the investment of $4M from the Province into the Sports and Entertainment Centre to promote health. Wakeham and Associates will be provided with some direction in regards to this contribution.

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COUNCIL MEETlNGO 4 . IdM ? ? '07 APPENDICES TO REPORT #07-062

January 23,2007 - -

Council needs to consider and provide direction on the possibility of selling naming rights to a company that has name related to another location, i.e. Toronto Dominion Bank and London Life. Wakeham and Associates' report does include the possibility of selling naming rights to these types of financial institutions. Council has to identify any similar guidelines in order for staff to provide these directions to Wakeham and Associates prior to negotiations.

It is also important for Council to understand that direct competitors of the naming rights purchaser may have limited ability to purchase advertising within the same facility except for specific provisions with the Kingston Frontenacs. Any similar conditions will be identified in the final agreement and brought forward to Council prior to final approval.

It is also possible for a company to be the purchaser of naming rights of both the Sports and Entertainment Centre and the Multiplex. This packaging of assets could help leverage more value for the naming rights. Revenue applicable to the Multiplex naming rights will be allocated to its operation budget.

If Council does not direct staff to pursue commercial naming rights for these facilities, an alternate naming process would be brought forward at a future time. A full analysis would have to be co,mpleted with respect to costs and opportunities of these other options. Alternates to commercial naming rights include:

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the naming of the facility to recognize accomplishments of individuals form the community; naming in recognition of a one time donation without associated commercial rights.

Kingston Frontenacs & Sports and Entertainment Centre

In May 2006, Council approved a license agreement with the Kingston Frontenacs. This agreement establishes a partnership between both parties in the operations of the Sports and Entertainment Centre.

As per the agreement, the Frontenacs will have the ability to submit the name of a company interested in purchasing naming rights within the proposed open process. Any companies brought forward by the Kingston Frontenacs will be reviewed by Wakeham and Associates based on the selection criteria. As described in the process, Wakeham and Associates will contact all companies with the potential of purchasing naming rights, including any companies submitted by the Frontenacs.

As per section 7c. of the license agreement with the Frontenacs, the City shall provide a 15% commission to the Frontenacs should the Frontenacs introduce the company that will purchase the naming rights, as approved by Council.

The license agreement states that the City shall share revenues with the Frontenacs for advertising and sponsorship, except for the naming rights of the entire facility, as per Section 7b. Staff will report back to Council on any required sharing of revenues of naming rights.

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COUNCIL MEETING0 4 ,.IAN 2 3 ‘07 APPENDICES TO REPORT #07-062

January 23,2007 - -

Fees and Costs

Wakeham and Associates has an established fee of 15% of the naming rights purchasing price. This fee is based on the assumption that the successful company will be one of Wakeham and Associates’ contacts. It is anticipated that Wakeham would receive a reduced fee should the successful company be submitted through the expression of interest process. In both cases, Wakeham will be the negotiation agent.

In the case of the Sports and Entertainment Centre, the commission to the Frontenacs would apply only if the company is successful and would then be added to the Wakeham’s fee.

There are costs that should be funded through the naming rights revenues. Costs to be factored in are Wakeham’s fee and possibly the Frontenacs’s commission; required signage at 401 or other locations within the City and; possibility marquee signage. Wakeham will receive a list of costs that are to be covered by revenues to take into consideration during the negotiation phase.

In Wakeham’s report, it is also mentioned that there could be some incremental expenditures that may be required to effectively fulfill the sponsorship commitments. These commitments will be part of the naming rights package assets and will be presented to Council prior to the approval of naming rights.

EXISTING POLICY/BY LAW:

City of Kingston Naming Rights of Corporate Assets Policy

NOTICE PROVISIONS:

There are no notice provisions required for this report.

ACCESSIBILITY CONSIDERATIONS:

There are no accessibility considerations

FINANCIAL CONSIDERATIONS:

The business plan for the Sports and Entertainment Centre includes $150,000 in revenues from naming rights with an escalation for inflation. Commission fees and other signage cost are to be covered by the revenues of naming rights.

The Multiplex business plan did not specifically allocate revenue for naming rights but carries a total revenue of $75,000 for advertising revenue.

CONTACTS:

Lanie Hurdle, Director of Project Development, Sustainability and Growth, (61 3) 546-4291 ext. 123 1.

OTHER CITY OF KINGSTON STAFF CONSULTED:

COUNCk MEETINGO 4 , IAN 2 3 '07 APPENDICES TO REPORT #07-062

January 23,2007 - -

Alan McLeod, Senior Legal Counsel, Legal Services

Others Consulted Kingston Frontenacs ArcturuslSMG

EXHIBITS ATTACHED:

Exhibit A - Wakeham and Associates Marketing Inc. Report Exhibit B - City of Kingston Naming of Corporate Assets Policy

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Kingston Regionul Sports & Entertainment Centre

An Assessment of Sponsorship Marketing Opportunities

Prepared by: Wakeham & Associates Marketing, Inc.

January 2007

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TABLE OF CONTENTS

I .O INTRODUCTION 3 1 .I Purpose of this Report 5 1.2 Terms 7 1.3 Sponsorship vs. Donations vs. Promotions 8 1.4 Methodology 9

2.1 The Centre’s Corporate Development Activity 2.2 Sector Analysis 12

2.0 SITUATIONAL ANALYSIS 10 11

2.3 Successful Programs Conducted by Other Organizations 13 2.4 The Sports & Entertainment Marketplace 15 2.5 Marketplace Trends 16 2.6 Challenges & Issues 17

3.0 ASSESSING THE CENTRE’S VALUE IN THE MARKETPLACE 18 3.1 Sponsorship Asset Inventory 18 3.2 Brand Positioning 19 3.3 Corporate Sponsor Contribution 20 3.4 Business Opportunities 21 3.5 Asset Inventory & Evaluation 21

4.0 SPONSORSHIP STRATEGY 22 4.1 Overall Strateaic Focus 22 4.2 Creative Packiging Strategies 4.3 Identifying Sales Priorities

28 29

4.4 Proposed Industry Sectors & Corresponding Benefits 30 5.0 CONCLUSION 33

B. Official Designation Valuation C. Summary

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Kingston Regional Sports & Entertainment Centre, December 2006 Page 2 of 32 82

1 .O INTRODUCTION

Wakeham & Associates Marketing, Inc. (WAM) has been retained by The Corporation of the City of Kingston to provide a comprehensive assessment of the sponsorship marketing opportunities inherent to the planned Kingston Regional Sports & Entertainment Centre (The Centre).

It is important to note at the outset that the City of Kingston intends to undertake a fundraising campaign that will complement the revenues generated through sponsorship marketing initiatives. The sponsorship marketing initiatives recommended and outlined this report will not conflict with these fundraising initiatives. The objectives of the fundraising campaign are $2 MILLION, PER THE BUSINESS PLAN. The city has also received a grant of $4 million from the Province of Ontario and may receive additional funding from the Federal Government. This report does not deal with donations, philanthropic gifts, grants or government contributions to the project. Instead, it focuses strictly on the sponsorship marketing opportunities associated with the project.

As a full-service sponsorship marketing agency, WAM’s perspective moves beyond the traditional “contributions/donations” or philanthropic areas of corporate and private giving. As such, we identify - and seek - corporate alliances that are based on true partnering, thereby expanding the marketing value of both the brand and programs of a property, while enhancing the value of the brand and marketing initiatives of the sponsoring partner(s).

In a highly competitive sponsorship marketing environment, a qualified analysis must be made of a property such as The Centre in order to ensure that the sponsorship sales campaign has the maximum impact in attracting corporate alliances. Once the sponsorship sales team has the attention of a corporate target, the corporation must be:

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Convinced of the distinction of the property in a sea of excellent opportunities;

Comfortable with the operational component of the new center and its relations with its lead tenant;

Impressed by quantitative information as well as qualitative information;

Assured that the property provides exceptional return on investment and is flexible enough to meet specific marketing and general business objectives; and

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= Confident that price points are realistic and highly qualified.

This document is the summary of a strategic analysis of the tangible and intangible assets of The Centre, with a focus on the naming opportunity, and a review of the opportunities and challenges for a successful sponsorship marketing campaign.

It is critical to understand the current sponsorship marketing environment in order to ensure The Centre’s sponsorship sales strategy is informed by a full understanding of the sales context in order to have every opportunity of success:

. Corporations are challenged by consumer information overload and advertising clutter Consumers more than ever are tuning out advertising.

= Consumers no longer believe what corporations say about themselves through advertising. Corporations have to engage the consumer and convince them that not only do they have a viable product or service, but that the corporation itself stands for honesty and integrity. Corporations now do this by showing they are good corporate citizens through the support of community initiatives.

Kingston Regional Sports & Entertainment Centre, December 2006 Page 3 of 32 Q X U J

9 As the result of stiff competition in all business sectors, where price and quality of product and services are generally equal, the challenge for corporations is how to distinguish themselves in the marketplace. Never before has the task of building a relationship with the consumer and garnering consumer loyalty been so critical. Sponsorship marketing is the single area that has emerged from the marketing portfolio to effectively meet the criteria of appealing to a consumer in a context where they are enjoying themselves and creating a relationship-building opportunity for a sponsor.

. Sponsorship budgets in Canada are generally static, whereas the number of organizations requesting sponsorship support continues to grow. Corporations are no longer simply supporting arts and sports, but are now participating in education, health, social services and other programs traditionally supported through public sector initiatives.

Corporations are more than ever before looking for highly unique opportunities that provide them with ownership and distinction. Properties must also be willing to be extremely flexible in providing programs that meet very specific corporate objectives and importantly, are expected to return a minimum of three dollars of value for every corporate sponsorship dollar.

8 4 Kingston Regional Sports 8 Entertainment Centre, December 2006 Page 4 of 32-

1 .I Purpose of this Report

The purpose of this report is to:

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review the corporate sponsorship naming opportunity for The Centre; review how additional sponsorship opportunities might be packaged; inventory the assets accruable to a potential naming sponsor and value the applicable tangible and intangible assets; make recommendations for ways that the sponsorship opportunity might be packaged and priced, with a view toward targeted industries; consider the types of additional marketing benefits that could be developed that might be attractive for sponsors; make suggestions regarding allocation of resources; and, provide strategic direction to The Centre for its sponsorship initiative.

The report will address the importance of developing marketing-driven relationships with corporations in order to build profile, traffic and sales for both the corporate sponsor and The Centre.

It is important to note that, as competition for philanthropic donations is increasing, corporate donations budgets are decreasing. Corporations are becoming more strategic in the way that they allocate their resources. They are increasingly requiring a quantifiable return on investment in return for their dollars. This means that the primary source of sponsorship funding is shifting more and more toward the marketing departments of sponsoring companies.

As a result, the distinction between donations/philanthropy and sponsorship marketing is the key in determining the ability of The Centre to pursue a successful sponsorship sales campaign in order to develop a high level of funding.

The background of the planned large venue sports and entertainment complex in Kingston is an interesting one as it was originally rooted in a significant level of support from the community and subsequently the region’s City Council. The ongoing commitment ensures successful completion of this exciting venue, one that can offer unique and dynamic opportunities for corporate sponsorship support. The new Centre will be a facility that will deliver economic and non-economic benefits to the City of Kingston and its surround, and this should bode well for delivering a compelling case for corporate sponsorship. Moreover, the venue’s lead tenant, The Kingston Frontenacs, should be considered and treated as an asset to the sponsorship initiative.

The Kingston Frontenacs are the City of Kingston’s partner in the facility. This partnership includes a share of sponsorship and advertising revenues.

Sponsors that allocate funding from their marketing budgets will require The Centre to present them with a strong business case in order to justify their participation. Far more than including a logo in advertising and marketing materials, the benefits need to help the sponsor to increase sales, acquire new customers, or add value for existing customers. This report will look at ways to achieve the objectives of companies on a sector-by-sector basis.

In addition to the naming sponsorship, multiple-year agreements should be pursued where possible in other sponsorship opportunities so as to develop long-term committed partners, to avoid potential churn among The Centre’s sponsors, and to allow for custom marketing programs to develop and create value.

Kingston Regional Sports & Entertainment Centre, December 2006 Page 5 of 32

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The Centre should seek a limited number of sponsors with larger commitments rather than seeking more sponsors at lower levels of participation. This will result in less sponsorship clutter, allowing each corporation to have more ownership, and thereby create satisfied partners. It will also allow The Centre to focus its marketing efforts on a smaller number of sponsor clients and create true marketing value for those companies.

The sponsorship marketing approach seeks to maximize the potential contribution a targeted company could make - including cash and/or in-kind products or services. In addition, each sponsorship relationship should be structured in such a way as to leverage the maximum marketing value for The Centre in terms of creating profile and driving attendance to events presented at The Centre. The companies that are approached should be in keeping with the mandate of The Centre to have a strong civic function, as well as support the stature, profile and quality of The Centre overall.

In order to be successful, The Centre's sponsorship marketing program will require the commitment of staff and management, and the desire to create truly valuable benefits for sponsors.

Page 6 of 32 Kingston Regional Sports & Entertainment Centre, December 2006

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COUNCIL MEETINGO 4 .

1.2 Terms .

The following terms have been used for the purposes of this document.

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Sponsorship Marketing is "a cash and/or in-kind fee paid to a property (i.e., event, facility, organization) in return for access to the exploitable commercial potential associated with that property" (source: IEG, 2003). Sponsorship is used by corporations to drive sales of products/services, generate brand awareness and build brand loyalty among customers and stakeholders. Sponsorship marketing proposals are subject to intense scrutiny by the companies being approached in order to make certain that the market value of the benefits being offered is equal or better than the value of other opportunities in the marketplace (including traditional advertising). The success or failure of sponsorships will be measured according to quantifiable business-building results. Sponsorship marketing partners can bring cash, in-kind products and services, marketing and sales programs and other benefits to a property

Tangible Assets are benefits/ deliverables that have an accepted marketplace value as defined by advertising or public relations agencies. Although the actual number may vary between agencies, the tangible assets offering corporate visibility, such as advertising, signage, logo impressions on marketing and communications materials, have a value, sometimes determined by the cost per thousand (CPM - the cost to be seen by 1,000 individuals).

Intangible Assets: these are benefits/deliverables that have an unqualified value. It is generally accepted that value (and often considerable value) exists with intangible assets. These assets are ingredients such as: prestige of property, geographic reach, hosting and hospitality, leadership and innovation, etc.

Donations - or - Philanthropic Gifts can be obtained from foundations, individuals, government agencies and corporations. They typically require very little in return other than a tax receipt and some acknowledgment of their contribution. An organization must be a registered charity to qualify for these gifts, and Revenue Canada stipulates that no marketing value is to be provided in exchange for the dollars received. The organizations issuing philanthropic gifts typically have very specific requirements for the allocation of their money, and the dollars must support the sectors and programs they favor or they will not be granted. These gifts are allocated based on the opportunity for the company to be positioned as being a good corporate citizen, and to be seen as giving back to the communities in which they operate. Corporate donations do not offer value in terms of marketing or sales extension programs for the sponsored property.

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CQUNCIL MEETINGO 4 . I A N 3 3; '07

DonationlGift

1.3 Sponsorship vs. Donations vs. Promotions

This report deals exclusively with Sponsorship Marketing-oriented opportunities at the facility. For purposes of clarification, the following chart will help to clarify the differences between sponsorship marketing and either donations/gifts or promotions.

Promotion Cateaor SponsorshiplMarketin

Publicity Highly public

From charitable or philanthropy

budgets

Write-off is limited to 75% of net income. As a result, Accounting/tax considerations are less likely to influence the way a corporation designates

funding of a not-for-profit

To be a good corporate citizen;

Budgeting

campaign

Marketing, advertising, andlor promotions budgets. Can be negotiated to share costs with

partners

Written off as business expense, such as a media buy or production of collateral materials

To sell more producWservices.

Marketing, advertising,

communication budgets

Accounting Written off as business expense

Objective

Recipient

Where funding goes

To sell more products/services; to increase awareness in markets and amongst stakeholders, to position

Brand

Sports, arts, music, live theatre events; projects; community programs; causes

Sports (estimated at more than 50% of market)

Larger donations typically cause-related but can also be cultural, community, sports,

funding is often

for a specific program

Education, social services, and health sector get 75%

of charitable donations

Little publicity

Consumer-driven. Depends on target audience and brand positioning. May incorporate music, sports, film, retail/

trade partners, etc.

Same as above.

Highly public -- often features a media partnership to support

Page 8 of.32 Kingston Regional Sports & Entertainment Centre, December 2006 8 8

1.4 Methodology

Wakeham & Associates Marketing, Inc. (WAM) employs multiple research tools in conducting a sponsorship study of this type. A mixture of quantitative and qualitative data is utilized to evaluate the avenues of opportunity within any given property. In addition to the process steps used in developing this report listed below, WAM also relies on comprehensive industry experience obtained by its staff of professionals.

The following methodology has been employed by WAM to develop a sponsorship framework for The Centre:

Situational Analysis (Sponsorship Research) :

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Conduct a review of The Centre's plans specific to lead tenant, programmers/users, related demographics etc. Conduct an overview of the sports and entertainment marketplace Review the sponsorship marketing environment, particularly with regard to Kingston Identify major corporate entities in Kingston and the surrounding region Determine a brand position that will be of interest to sponsorship marketing partners Determine the means of making The Centre, its programming and demographics a compelling story for the corporate sponsorship marketplace

Assessing The Centre's Value in the Marketplace

1 Review potential sponsor/supplier relationships - 9

9 Execute sponsorship strategy formalization

Identify all assets -tangible and intangible -that can be included in the sponsorship packages Conduct valuation to determine sponsorship asset values

Sponsorship Strategy Development

- 9 Identify sales priorities 9

Strategic direction - development of sponsorship strategy

Determine resources required - suggested staff structure


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COUNCIL MEETllWGll4. lfihl 3 3 ‘07

2.0 SITUATIONAL ANALYSIS

The financial challenges faced in the world of sports and entertainment venues have required that management review every opportunity to develop traditional revenue sources and seek out new revenue streams.

In the new marketing environment, corporations are anxious to find unique ways of connecting with the consumer. They have determined that one of the most effective ways of making a connection is by attaching themselves to organizations and properties where there is a strong lifestyle association between their brand and the stakeholders engaged with a particular activity or institution. We refer to this as a “Passion Point” - where the sponsor can build a relationship with its target customer through a shared passion for a sponsored property. This, obviously, makes a strong case for The Centre and the particular demographic of its event patrons - fans of the lead tenant, concertgoers, and trade show participants, and others. Research indicates there is nothing that generates a more long-lasting passionate response than sport and music.

This report considers that 40% of the “event dates” at the Centre will be presented by the OHL team, the Kingston Frontenacs, the lead tenant of the venue. The remaining 60% (approximately 120 events) has been earmarked for “other” presentations such as touring music concerts, trade shows, family oriented entertainment shows, etc. This 60% is as important as the already popular games played by the Frontenacs because it is in this area where the Centre will reach out to the broader community and reach an expanded demographic - all important to potential sponsors.

Existing traffic reports indicate the site of The Centre offers unique sponsorship value as it ensures high traffic which equal valuable impressions for the potential naming sponsor. This is a key component to valuating the assets inherent to naming the Centre.

The demographics of the new Centre’s reach play an important role in the sponsorship strategy. Not only does the Centre provide access to the permanent residents of the City of Kingston and its environs, but the region is also host to the important audience reach provided by both the student body of Queen’s University and the Canadian Forces Base.

Tourism also has a significant role to play in providing impressions for a potential corporate sponsor. And, indeed, the local hotels are current sponsors of the Kingston Frontenacs team. As well, the Kingston Accommodation Partners and Downtown Kingston BIA have both committed $3 million each for the project. The Centre promises to offer a new destination in Kingston for tourists to visit and this has an impact on increasing the sponsor visibility with this target group.

Sponsors look very closely at properties to determine their demographics to ensure there is a precise fit with their target customer. In the case of The Centre, the demographics vary significantly from one presentation to another, with a focus on audiences having a love of hockey or music.

While there are challenges associated with the fact the venue has not yet opened, and therefore, not proven its viability, a case for support can be made that this is an inaugural opportunity in a brand new venue, delivering an exceptional opportunity to be associated with an already proven brand (Kingston Frontenacs). As well, other OHL venues have been highly successful in their naming rights corporate sponsorship initiatives:, Le. the John Labatt Centre, the Hershey Centre and most recently, the GM Centre in Oshawa.


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COUNCIL MEETINGO 4 JAN 2 3 ’07

2.1 The Centre’s Corporate Development Activity

To date, this assessment of sponsorship opportunities represents the first initiative in this area. However, as the project moves through its various stages toward completion, there will be more and more opportunities for sponsorship, including “official supplier”, in-kind support, and product placement. Planning for the latter two should be addressed on a parallel with the sponsorship procurement activities. The City’s fundraising campaign will operate as a parallel effort complementing the sponsorship marketing initiatives.

The Centre must embark upon an aggressive and far-reaching public relations campaign in order to gamer awareness of the construction and opening of the venue in order to engage corporate marketers.

91 Kingston Regional Sports & Entertainment Centre, December 2006 Page 11 of 32


2.2 Sector Analysis

The competition for corporate dollars is unprecedented - for both corporate donation and sponsorship dollars. Most corporate sponsorship departments receive on average approximately 5,000 requests per year from sectors as diverse as:

9 Health . 1 Sports - amateur/professional = Culture - amateur/professional - Social Services a Government

Education - primary, secondary, post-secondary

Regardless of the caliber and reputation of an organization, if the property cannot provide exceptional value for sponsorship dollars, then the corporation can choose from one of any of the other worthy proposals it has received. While some sectors rely on corporate donations for support, venues that focus on sports and entertainment are recipients of a very small percentage of this total, and therefore must rely more so on corporate marketing budget allocations.

While some sectors rely on corporate donations for support, venues focusing on sports and entertainment are recipients of a very small percentage of this total, and must rely more on corporate marketing budget allocations.

Corporate donations in the early 2000s were allocated to the following sectors: & Education

Social Services

Health

% of Donations 27%

23.1%

20.8%

Arts & Culture 11.9%

cA4€caus€s 10.1%

Others 3%

Environment

sports

2.4%

1.7%

Trends & Comments

Education is a growing focus of corporate community investment programs. Although higher education still dominates the allocation of donation dollars, there is increasing interest in programs geared to elementary, secondary levels.

Support for social services is large, and specifically corporate support to United Way continues to grow.

Total contribution to health and welfare is stable with more money being directed to regional and local health agencies. Hospitals are also now developing structured sponsorship programs to combat reduced Government funding.

Corporate donations to the arts have dropped slightly, however, corporate sponsorship dollars for the arts has been increasing.

Corporate support for civic causes continued to grow and is anticipated to be part of this growing trend towards corporations playing a larger role in community/local initiatives.

Gifts-in-Kind and employee volunteerism are increasing and continue to represent a significant source of support to community organizations.

Corporate support for the environment is remaining flat. It is not anticipated this area will grow in the next few years due to the increased emphasis on Education and Health.

Much of the funding for sport is in the form of corporate sponsorship and event marketing dollars as opposed to donation dollars.

Given the growth of education as a key concern to Canadians, as well as corporate Canada's increasing focus on CiviclCommunity-related causes, The Centre should endeavour to highlight these focus areas in its sponsorship benefit offerings, through its programming.

Page 12 of32 Kingston Regional Sports & Entertainment Centre, December 2006 9 2

2.3 Successful Programs Conducted by Other Organizations

In a highly competitive sponsorship environment, properties such as The Centre need to be able to offer exceptional marketing value for sponsors. The specific branding objectives and business goals of the participating sponsor need to be addressed. Some examples of successful packaging of sponsorship properties in the Toronto marketplace include the following:

The Direct Energy Centre at Exhibition Place, Toronto

Sponsor’s Objectives: - To build their brand as the energy-efficient, environmentally conscious alternative to other utility

companies - To build links with the community at the grass roots level - To showcase their expertise in the latest in alternative fuels, energy conservation programs, new

technologies and services - To build government relations with the City of Toronto - To generate new business - To build brand awareness/profile

Why The Direct Energy Centre? - City of Torontcowned venue - -

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Alliance with Exhibition Place - a designated ‘green zone’ within the City of Toronto Exposure to 5.4 million visitors to Exhibitian Place annually, plus signage exposure on the Gardiner Expressway Direct contact with organizers and attendees at various trade and consumer shows (over 180 events annually)

Leveraging Programs Created: - -

Energy lnnovations Centre - exhibit in the Centre’s galleria Newspapers in Education program with the Toronto Star branded by Direct Energy and featuring environmental-conservation-oriented educational content while promoting the Energy Innovations Centre - reaching over 250,000 students annually Alignment with City of Toronto’s urban forestry initiatives, including a Direct Energy-branded forest outside the Exhibition Place gates.

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Panasonic Theatre

Sponsor’s Objectives: - - - - - -

To affiliate with a popular culture venue To reach a targeted youth demographic To have profile in downtown Toronto To showcase LCD screens and other consumer electronics products To affiliate with a venue that is rich in imagery To generate consumer and trade promotions

Why the Panasonic Theatre? - -

- -

Located in a high-traffic location in downtown Toronto near Yonge and Bloor Streets The venue is home of the popular Blue Man Group, which is a visually-rich production appealing to a youth audience The storefront lobby offered product showcase opportunities Blue Man Group is highly promotion oriented and willing to work closely with Panasonic to meet objectives

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Leveraging Programs Created: -

- -

Created a lobby installation utilizing dozens of Panasonic LCD screens on the walls and ceilings, and featuring imagery custom-designed for the space by Blue Man Group. Created sweepstakes offers tying in the top Panasonic trade partners Hosted Panasonic’s national sales events

Canon Theatre

Sponsor’s Objectives: -

- - - - - - To generate trade incentives

To reallocate funds that had traditionally been spent on expressway billboards without sacrificing brand impressions To increase profile in Toronto’s downtown business district To offer client-hosting opportunities at a variety of entertainment-based events To create promotions and profile for Canon’s products To offer product trial for Canon’s digital cameras, binoculars and colour printers To diversify a sports-heavy, male-skewed sponsorship property portfolio

Why the Canon Theatre? - - -

A high-profile premium venue in a central downtown location at Yonge and Dundas Streets Managed by Mirvish Productions - one of Toronto’s most respected entertainment companies Features a broad range of entertainment programming year round

Leveraging Programs Created: - National PostlSaturcfay Night Fever Paparazzi Promotion - National Post readers could enter to win

the right to be the official ‘paparazzi’ at the opening night of Saturday Night Fever - the first presentation in the newly-named venue. Winners received Canon camera equipment, official press credentials, and their photos were featured in the National Post with their by-line. The house program included a blow-in featuring the winner‘s photo, name and designation as “Official Paparazzi”. The Graduate Photo Library - During the run of The Graduate starring Kathleen Turner, patrons could visit laptop computer kiosks in the lobby to view a digital photo album of the stars. They could print out pre-autographed photos on Canon colour copiers to take home as souvenirs. Each photo was marked with “Printed on a Canon Colour Copier”.

- Canon Binoculars - Canon binoculars are available for use free of charge for those patrons seated I in the upper balcony of the venue.

- Digital Photographs - Patrons could have their photos taken against a blue screen, and superimposed onto an image of the set of the show being presented so that the patron appeared to be on stage. The images were sent to the patrons via e-mail, allowing for database capture. Each image was marked with “I made my stage debut at the Canon Theatre”. Fame Trade Program - Sales representatives and trade partners that sold the most Canon product during a particular time period won a ‘walk-on role’ in the musical Fame. Their colleagues, friends and family were in the front row during their performance, and then joined the cast for a post-show champagne reception.

-

-

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2.4 The Sport & Entertainment Marketplace

Corporations have traditionally allocated the bulk of their sponsorship marketing dollars to sport properties. In the past few years, however, marketers have come to recognize the fact that sports properties suffer from brand clutter, and sponsors have a difficult time distinguishing themselves in a sea of competitive corporate messages. Therefore, it is imperative that The Centre embarks upon conceptual and creative programming and planning in order to provide the kind of visibility and meaningful contact points with their consumer base, which every sawy corporate marketer is seeking. This is important for The Centre to keep this in mind as it contemplates launching a sponsorship campaign.

The Ontario marketplace has seen strong support of sports and entertainment complexes in recent years with 8 new sports and/or entertainment complexes opening in the past 10 years.

Toronto has been a focal point of corporate sponsorship support in Ontario recently - particularly with respect to its cultural venues, i.e. capital campaigns and sponsorship initiatives for venues such as the Four Seasons Centre for the Performing Arts, the Royal Ontario Museum, the Art Gallery of Ontario, the Royal Conservatory of Music, the Bell Film Festival Centre and others. In addition, the naming of the new BMO Field soccer venue at Exhibition Place has been recently announced, and the new name of the University of Toronto’s Varsity Stadium is to be announced in the new year. The city has experienced unprecedented corporate support for these initiatives, and some feel the Toronto market has been tapped for sponsorship dollars.

Kingston, however, appears to be an “untapped” market place as the new Centre is the first large venue of its kind in the area and given the geographical location between Toronto and Ottawa, there is optimism that this centre is well placed for corporate sponsorship support.

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2.5 Marketplace Trends

The current sponsorship marketing environment must be recalled to ensure The Centre’s sponsorship sales strategy has every opportunity of success as a result of understanding the sales context.

There is a growth trend in sponsorships across North America where corporate spend has risen dramatically from $7 billion in 1997 to approx. $14 billion in 2005. (Source: IEG)

Focus is on integrated marketing opportunities that address corporate business objectives, i.e. using the sponsored property as the vehicle for reaching a target audience and achieving these objectives.

Corporations are reducing the number of properties they sponsor, but are creating a larger commitment to selected properties and over longer terms. Many companies have evolved to the belief that less is more and have therefore chosen a few major properties to sponsor and relinquished the balance of their portfolio. One-off sponsorships are of lesser interest to corporations than multi-year, broad-ranging commitments’that are exclusive and that offer perceived ‘ownership’.

There is a higher incidence of mergers and acquisitions than ever before. When two companies merge, the two sponsorship budgets are rarely amalgamated but mostly reduced to the equivalent of one budget. The overall number of dollars spent on sponsorship, may for the first time, start to experience a flat line.

Many companies have developed sophisticated sponsorship strategies that very strictly adhere to their brand identification with little flexibility for new properties, regardless of how worthy or valuable the package.

Corporations are looking more and more to giving in-kind contributions rather than cash, and product placement is taking an ever-increasing role in the milieu of corporate sponsorship marketing.

Budgets are being allocated far in advance, especially in cases where a company has a long-term relationship.

Corporations are challenged by consumer information overload and advertising clutter. Consumers more than ever are tuning out advertising. Sponsorship offers advertisers a means of communicating directly with their targeted consumer.

Consumers are less inclined to believe what corporations say about them (advertising) as a result of the scandals of Enron, Tyco, and WorldCom etc. Corporations have to engage the consumer and convince them that not only do they have a viable product or service, but that the corporation itself stands for honesty, integrity and commitment to the community. Corporations now do this by showing they are good corporate citizens through the support of civil and social initiatives.

As the result of stiff competition in all business sectors, where price and quality of product and services are generally equal, the pre-eminent challenge for corporations is how to distinguish themselves in the marketplace. Never before has building a relationship with the consumer and garnering consumer loyalty been so critical. Sponsorship marketing is the single marketing medium that has emerged from the marketing portfolio to effectively meet the criteria of appealing to a consumer in a context where there is a relationship-building opportunity for a sponsor.

Corporations more than ever before are looking for highly unique opportunities that provide them with ownership and distinction. Properties must also be willing to be extremely flexible in providing programs that meet very specific corporate objectives and importantly, are expected to return a minimum of three dollars of value for evew corporate sponsorship dollar (based on the discounted value of assets - see Appendix A).


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2.6 Challenges 8, Issues

Emphasis must be placed on the stature of the new centre and the quality of its programs.

The true challenge faced by The Centre, as it relates to embarking upon a successful sponsorship marketing campaign, rests solely on the fact that the venue is new. It is an unknown at this time and while a new venue, particularly one with an existing lead tenant, is sure to draw audiences and participants, much be important to corporate partners. The entire family of operators, agencies (advertising and p.r.), suppliers and staff will have to ensure that ALL requirements are met to ensure success by maximizing value to prospective corporate sponsors:

Ensure a comprehensive media plan is prepared and a PR campaign is immediately put in place that emphasizes the stature of the facility and the quality of the planned programming; All communications and marketing materials designed and implemented with a view toward the inclusion of corporate sponsors; Build effective and strategic promotional marketing programs within which corporate sponsors can participate; Provide attendance and sales projections that sponsors can expect, and be prepared to extend sponsorship terms if projections are not met.

It is important to note that some incremental expenditure may be required of the City in order to effectively fulfill the sponsorship commitments of the Centre. For example, sponsors may have particular promotional needs which the Centre will need to fulfill -beyond what has been budgeted for to date. This will also have implications from a human resources perspective.

Although there is no confirmed operational budget at this time, there is currently a draft budget per the business plan. It will be important to complete the operational budget as soon as possible as it has impact upon confirming advertising spend, etc. which must be presented to potential sponsors in the sales packages. For the purposes of the valuation, several assumptions have been made in this area, and figures will need to be adjusted as plans are finalized.

It is understood that the arrangement with the Frontenac organization is such that they share 50% of all sponsorship revenue, with the exception of naming sponsorships. Therefore, in addition to the overall naming opportunity of the centre, all efforts should be made to identify other name-in-title opportunities throughout the venue, in order to generate as much revenue in this area as possible.

Having said that, it is imperative that the assets inherent to having the Frontenacs as a lead partner in the Centre should be exploited as much as possible. Understandably, the OHL team will be a major draw to the Centre and this should be focused upon in sales materials, etc.

Other third party presenters will have to be managed in order to ensure that the naming sponsor - and any other lead sponsors are appropriately and correctly acknowledged in any marketing and communications materials developed by such third party presenters.

What can give The Centre an edge is ensuring that it has the assets to provide value to sponsors. By identifying these opportunities and finding ways to be creative, The Centre can maximize value to the corporate sector.

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3.0 ASSESSING THE CENTRE’S VALUE IN THE MARKETPLACE

3.1 Sponsorship Asset Inventory

Identifying, creating and valuating a number of assets are critical to the successful packaging and presenting of opportunities to prospective sponsors.

While the name-in-title sponsorship of the venue is of primary focus and is the highest income generator, there are various categories of cash and in-kind sponsorship opportunities inherent to the property:

-

- Display opportunities - Promotional opportunities - -

Individual naming sponsorship of various areas within the venue, i.e. the proposed restaurant, the concourse, the ‘concert bowl’ configuration of the space, etc.

Product placement opportunities (including product trial and sampling) Official supplier categories (camera, video displays, credit card, concession items, telecommunication, alcoholic and non-alcoholic beverages, etc.)

An inventory of identified assets for the naming sponsor is outlined in the Asset Valuation Chart that is offered in the addendum, but the following are the types of assets that should be considered:

PR campaign and media kits Hospitality opportunities for corporate partners to hold client hosting events Signage - External and internal, and perhaps wayfinding signage Printed collateral material (brochures, programs, rack flyers, tickets, direct mail pieces, newsletters, special event materials, etc.) Advertising Display signage Education Program literature and tool kits Web site that allows for links to corporate sponsors’ sites Merchandize that can feature corporate sponsor branding Rights to use logo and marks fro communication/promotion purposes Controlled access to The Centre’s (and Frontenacs) data base

Both tangible and intangible assets have been considered in the valuation.


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3.2 Brand Positioning

Currently, The Centre obviously does not have a recognized brand. As already mentioned, a PR campaign, coupled with a live web site, would go far to introducing the concept to the public and prospective sponsors. The creation of this venue is an exciting endeavour, the destination ideal and the proposed programming exciting; it is crucial that the messaging be delivered effectively.

The Centre must present itself as a compelling marketing vehicle that can be exploited by corporate marketers. It can do this by depicting how it plans to speak about itself, what its programming is going to be, and how it plans to present its own marketing message. Corporate marketers must see a viable opportunity to achieve their own desired brand positioning through a partnership with The Centre.

The Centre needs to be seen as a venue that is focused on helping corporations to achieve their own business goals through its unique programming, its marketing and communications initiatives, its reach to all segments of the demographic market place and through strengthening the tourist draw to the Kingston region.

There may be some positioning opportunities surrounding the motto of the City itself: “Where history and innovation thrive” as this may have some resonance for particular industries and corporations who indicate an interest in reviewing the partnering opportunities at the Centre. Innovation is a quality which many companies strive to achieve.

Finally, there may also be some benefit to utilizing the strength of the Frontenac brand throughout the sales packaging and campaign. There does not, however, seem to be a strong sponsorship component inherent to the existing Frontenac franchise that can be explored.

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3.3 Corporate Sponsor Contribution

Sponsorships should be sold at pricing based on the marketing value of what The Centre can deliver to a corporation - not based on what dollars The Centre needs for specific construction, operational or programming plans. It is important to conduct an inventory of the assets that can be offered to a company as a part of any sponsorship, and place a value on each asset, based on an industry accepted series of discounters or multipliers (see Appendix A for naming sponsorship and considerations for official suppliers).

It is important to keep in mind that sponsorship marketing-oriented companies are seeking to influence the mass consumer (known as B2C companies). Companies that are seeking to sell products and services to a narrow range of other companies will not be targets for sponsorship marketing. Therefore - the list of ‘assets’ that The Centre can offer a sponsor should focus on marketing assets, such as advertising, display opportunities, event opportunities, hospitality (IE. meet-and-greet with hockey players, bands, etc.), sampling opportunities, marketing tie-ins, sales programs, trade incentives, consumer acquisition/retention programs (rewards) etc. For example, a company that builds cisterns for purchase by major developers, will not be interested in sponsorship marketing -they are only interested in selling their products to that narrow list of developers that are potential customers (known as B2B companies). An exception to this rule might exist if a Kingston-based firm wishes to approach the naming rights opportunity from the perspective of providing community support to its home town, and building pride among its local employees.

The intangible value of association with a venue such as The Centre should not be underestimated. As indicated earlier in this report, there is no universally accepted means of measuring the value of intangible assets. However, most corporations in Canada accept an industry-driven system of measurement based on a series of subjective evaluations of a property, and then applying a score as a percentage of the value of the tangible assets (see Appendix A).

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1 0 0 Kingston Regional Sports & Entertainment Centre, December 2006


3.4 Business Opportunities

Unique business relationships in the form of official supplier agreements should also be considered an important part of what is offered to sponsors. In many cases, corporations will not sponsor a property unless they can see that a large portion of the sponsorship fee can be liquidated through incremental revenue potential. The Centre should also consider value-in-kind contributions from sponsors as a way to offset budgeted line items. Each relationship should be reviewed to ascertain whether or not some costs could be deferred by in-kind contribution of “official” corporate sponsors.



4.0 SPONSORSHIP STRATEGY

The Centre requires a forward-thinking and leading edge sponsorship framework to support its programming plans. The following is an overall strategic framework for The Centre, within which to build the components for a results-driven sponsorship marketing sales campaign.

4.1 Overall Strategic Focus

Recommendation #I - The Product The Centre needs to develop a unique sponsorship offering and corresponding positioning emphasizing a branded opportunity for a corporation. The offering needs to be structured in such a way as to actively involve the sponsoring company in The Centre experience. More than a logo on an advertisement, the sponsor’s product andlor brand needs to be fully integrated into the venue. These ‘branded programs’ offer a sponsor implied ownership. This is a key selling feature for prospective sponsors. Whether this involves name association with the venue as whole or other opportunities for ‘ownership’ by a sponsor, the sponsorship must include a ‘brand experience’ -whether it is an opportunity for interaction with a sponsor’s products, or simply an opportunity to illustrate the sponsor’s brand values.

The Centre’s short and long-term success will rely on its ability to build upon a healthy and vibrant brand and therefore, it will be critical to invest in a marketing, communications and public relations plan to create and maintain brand equity. The plan should be created and implemented by The Centre’s communications team as a way to augment the efforts of presenters using the venue. Sponsors want to be associated with successful brands and will invest appropriately. Long-term, we believe the maintenance of a healthy brand will be critical to a successful sponsorship campaign.

The value of The Centre‘s assets is diminished if there is not the perception of exclusivity for sponsors. The number of overall sponsorships needs to be limited in order to avoid clutter. The Centre must be able to create a profile for its lead sponsors in such a way that the relationship is clearly evident and memorable in the minds of consumers. The “shotgun” approach to corporate alliances cannot achieve this goal.

The Centre should emphasize its mandate as the premier sports and music venue in Kingston, but also focus on its role as a major player in the social fabric of the city. It should be a venue for everyone. In addition, an educational component should be explored that would offer another compelling case for support that speaks to corporations who insist that an underlying educational element be present in all of their sponsorship initiatives. Philanthropic opportunities should not be ignored, but it is our recommendation that a naming sponsor be procured with a corporation who wishes to make its partnership with the Centre a marketing initiative as in the long run, these kinds of partnerships extend past the initial cheque writing. There may be smaller opportunities throughout the Centre that might lend themselves to private naming by leaders in the community.

With a few exclusive areas available for naming sponsorship, there will be the perception of exclusivity. The Centre must be able to create a profile for these lead sponsors in such a way that the relationship is clearly evident and memorable in the mind of the visitors.

Other avenues for corporate partnering need to be instituted, i.e. Official Partners and Suppliers which will augment the overall revenue generated by the naming sponsor.

Finally, The Centre must emphasize its mandate to be a destination of choice for visiting tourists and position itself as an entertainment value for a wide-ranging age group. A comprehensive educational component would also lend itself well to engaging children at the elementary school level.


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Recommendation #2 - Leverage the Centre’s Purchasing Power

Part of the recommended strategy for the Corporate Sponsorship Program is to utilize a Product-Based Strategy, one that would tie each of The Centre’s sponsorship opportunities into a series of product category-exclusive packages.

In essence, sponsor targets should be those that can provide their products or services to The Centre (assuming “best and most fair” available pricing). As part of its overall sponsorship commitment, The Centre would then provide the sponsor with a clearly defined, quantifiable commitment to use their products and services, on an exclusive basis, over an agreed multi-year period.

The Centre also provides a number of business-building related opportunities providing entitlements to corporate partners (i.e. ability to market to the Frontenac fan base).

In return for these entitlements, The Centre would request that the corporate partner become a sponsor and provide both a value-in-kind and cash contribution (according to the appropriate sponsorship level).

Recommendation #3 - Expand the Centre’s Marketina Mandate/Asset Base

Going forward, The Centre must embark on a marketing and communication effort that focuses on:

- - -

Increasing visibility and awareness of the opening and programming Communicating the breadth and quality of the experience outside of hockey and music Develop opportunities within the existing content that will offer unique partnering opportunities for corporate sponsorship

It is strongly recommended that the programming and marketing be extended to include an educational program :

Working closely with the Frontenacs team, an educational program could be developed that included the history of the region, the history of OHL, etc. Educational ‘‘lessons’’ could be created around the content at the Centre and then depicted in a “ready to roll” tool kit for educators. The program could be customized and corporately branded and could be sponsored by one corporation. Fees would be charged for school groups to tour the facility and participate in the comprehensive program


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Recommendation #4 - Administrative Role & Structure

We recommend The Centre outsource the sponsorship marketing sales function to a qualified sponsorship marketing sales agent. The operators of the Centre would manage the efforts of the agency and would be responsible for managing sponsorship activation and fulfillment. It should be noted that there may be incremental costs to fulfillment of committed sponsorship benefits - both from a human resources and financial perspective.

The next steps in such a campaign would be:

- - - -

- Sales campaign - - Develop web site

Completion of identification of sponsorable assets Embark upon comprehensive public relations campaign Appropriate sales packages for individual industries Completion of target lists of prospective sponsors

Identification of personnel that would serve as sponsor liaison

Tactical Recommendations

On a tactical basis, as mentioned, The Centre should structure its sponsorship framework based on the philosophy of “reducing sponsor clutter - increasing sponsorship yield”. In essence, limit the total number of The Centre sponsors to a manageable quantity and maximize the revenue streams and marketing support from those sponsors.

We believe that all sponsorship opportunities including naming of the overall Centre, other naming opportunities within the complex, presenting sponsors, official sponsors and partners, and in-kind and product placement partnerships should be packaged and taken to market at the same time.

The opportunities would include:

- - - Official industry category designations

Overall naming of the Centre Naming of individual areas (including the ’concert bowl’)

’ - “Official Telecommunications Partner” - “Official Bank - “Official Automobile” - “Official Credit Card” - “Official Sporting Goods” - “Official Consumer Electronics”

- Education Program name-in-title sponsor - In addition, a number of concessions-related “Official” designations, i.e. beer, wine and

spirits, soft drinks, water, ice cream, etc.

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The Pitch Process

We recommend that The Centre takes the lead in strategizing which industry categories should be approached with each sponsorship opportunity, and in generating a list of appropriate companies to approach within each category. It will be important to determine which target is being approached for which type of opportunity (naming, official designation, etc.) in order to avoid duplicate pitches.

The Centre’s Communications, Marketing and Event staff must be involved in the development of the marketing programs designed for sponsors, so that they are supportive of the concepts, and are committed to their effective execution. They will also be able to keep a sponsor’s needs in mind when developing promotions or planning other marketing initiatives. Regular meetings should be held between Sponsorship, Development and Marketing staff in order to maintain a constant flow of new ideas to offer sponsors, and to make certain that programs are being carried out effectively.

Corporate Contact - The point of contact for sponsorship at any corporation should be at the Vice President of Marketing level (or Senior Vice President, Marketing), rather than the advertising agency - or the corporate President or CEO. Approaching the advertising agency results in a focus on whether the CPM is cost effective (which sponsorship rarely is). The agencies typically dismiss sponsorship properties, as they often result in reduced advertising budgets, and thereby reduced revenue for the agency. By approaching the senior marketing staff at the target company as opposed to their superiors, the key staff will ‘buy in’ to the sponsorship concept, building it into their marketing plans, and will be more committed to leveraging the various opportunities presented to them. If the sponsorship is delivered to them as a ‘fait accomplis’ committed to by their superiors, they will not be as likely to support the opportunity to the same degree. In most cases, an approach to a President or CEO will never reach the marketing staff, but instead will result in a philanthropic donation, which will not have the potential for marketing extensions required to fully leverage the value of the corporate relationship for The Centre.

Sponsor solicitation materials should be prepared immediately so that the sales campaign can commence in the first quarter of 2007.

The Centre must keep in mind that the priority of corporate marketing staff will be the marketing benefits presented through the sponsorship, rather than the altruistic or community goodwill reasons for undertaking the sponsorship. The marketing person will value the logo exposure for his or her company, but the benefit of primary interest will be the custom marketing program(s) that The Centre will present and the demographics that will be reached.

The followinu outlines the tvpical “Pitch” process

1. Identify all corporate sales categories

2. Identify (through research) specific corporate targets and determine best target (person within the corporate to contact)

Review the targets with all relevant The Centre personnel (both Marketing and Development 3. groups)

4. Determine best method of contact (Marketing, Development, Via The Centre - management, etc.)

Kingston Regional Sports 8 Entertainment Centre, December 2006 Page 25 of 32

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5.

6. Secure an introductory meeting.

7. If interested, determine on-going strategy.

Initiate contact by best means -telephone, e-mail, letter, teaser package, etc.

8. Produce a sponsorship proposal that meets their specific objectives

9. Request a formal presentation.

10. Maintain on-going dialogue

11. Move through discussions to culminate in a draft LO1

12. Obtain rights fee deposits for each sponsor partner

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4.2 Creative Packaging Strategies

An appropriate sales package must consider opportunities according to the requirements of target corporations. The companies within any industry sector will have similar corporate business objectives. Therefore, The Centre may wish to develop a series of proposal templates specially created to meet the needs of that industry sector. These can be further refined on a case-by-case basis to address specific marketing themes of a prospects current or future marketing campaigns.

Promotional partners should be established with a primary goal of creating value for corporate sponsors, and a secondary goal of building profile for The Centre. Promotional partners can be media (TV, radio, print, outdoor), packaged goods, retail partner, restaurants, travel, entertainment properties or other vehicles. The promotional partners should be developed with the objectives of the corporate sponsor in mind. The promotional partners should target the demographic niche of the target consumer sought by the corporate sponsor. Any geographical limitations, business objectives and other factors should be considered in selection of appropriate partnerships. Once these partnerships are in place, they can make an important part of a compelling proposal to a corporation - at little or no additional cost to The Centre.


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4.3 Identifying Sales Priorities

When the packaging of opportunities and the associated valuation process has been completed by The Centre, there will be certain sectors that have packages with valuations at significantly higher price points than other sectors. These sectors should be targeted on a priority basis, with those packages having lesser value being considered on a secondary basis.

The ranking of top sponsor categories in Arenas and Auditoriums are as follows:

- SoftDrink - Bank - Telecommunications - Automobile - Retail - Beer - Services - Airline - Newspaper - Credit Card

The following categories should be designated as primary targets for sponsorships of The Centre:

1. .Automotive 2. Financial Institution 3. Credit Card 4. Energy/Utility 5. Consumer Electronics

Secondary targets may include:

1. Soft Drinks 2. Alcoholic Beverages 3. Other concession suppliers 4. Sporting Goods

In the case of the naming of the General Motors Centre, GM had played a significant role in Oshawa’s community for many years. Unfortunately, Kingston does not have that kind of long-term and focal corporate citizen. DuPont is one possibility although their employment rate has dropped significantly since the early days of its business in Kingston. However, many years ago, DuPont was seriously considering sponsorship of Mississauga’s Living Arts Centre. Mississauga is a location that is home to a significant DuPont operation, and a large number of employees.



4.4 Proposed Industry Sectors & Corresponding Benefits

The Centre should approach companies in each target industry category which fit the demographics, image, quality, and programming inherent to The Centre, while limiting the list to those companies that can benefit through association. The initial list of sectors that should be approached includes:

Note: The list of opportunities that can be created for sponsors is only limited by the creativity of those involved. Specific opportunities can always be custom-designed to meet the objectives or needs of a corporate sponsor.

1. Financial InstitutionslCredit Card - A financial institution sponsor will want to acquire the right to incentivize new business by offering The Centre event-linked products to new customers. For example, if a customer opens a checking account, they could receive a free VIP Pass. The FI could offer their credit card holders the opportunity to purchase tickets to The Centre event in advance of the general public by using their card. Displays could be created in all branches, along with promotional brochures.

Possible benefits may include: -

-

-

-

Designate the card as the ‘Official card of The Centre’, and allow the card to use this designation in their advertising and marketing materials. Offer a gift with purchase for anyone making a ticket purchase using the sponsor’s credit card (i.e. Frontenac and Centre merchandise) to be paid for by the sponsor at a discounted rate. Establish an affinity offer whereby a percentage of each purchase made on the card will be donated back to The Centre Logo presence at key point of sale locations - merchant access is a key benefit. The Centre must promote access for the official card at all POS locations.

Targets: BMO, Scotiabank, RBC, Desjardins, National Bank, TD Canada Trust, BMO, VISA, Mastercard, American Express

2. Automotive - A car company could be designated as the “Official Vehicle of The Centre”. The official car would have exposure in all advertising and marketing materials and an on-site vehicle exposure on flat-screen televisions located in the lobbies and other public spaces. This could be leveraged further by inviting the car company to conduct dealership promotions involving The Centre (IE. test drive a vehicle - or purchase a vehicle - and receive tickets to -- or merchandise from -- The Centre events). The Centre displays could be created in all dealerships, along with promotional brochures. Dealer advertising could include a panel promoting their relationship with The Centre. An endowment program could be created whereby a donation is made to support The Centre music education programs with each vehicle sold to a The Centre patron. Future vehicle owner loyalty programs could include special offers or added-value incentives related to The Centre events and programs. The company’s vehicles would be used exclusively for The Centre’s fleet. The vehicle company’s lease statements or newsletters could include a The Centre event/program schedule and/or story in every issue.

Kingston Regional Sports 8 Entertainment Centre, December 2006 Page 29 of 32

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Other benefits may include: - test drive promotion - programs should be created that will drive potential car buyers to the

dealerships of the sponsor vehicle company. This could include providing each person who test-drives a car the opportunity to win tickets to an event/program offered by The Centre; free The Centre merchandise etc. dealer incentive promotions - a program similar to the one described above could be created for dealers. Whichever sales representative sells the most cars in a particular month will have the chance to win prizes -which could include tickets to a The Centre eventlprogram etc. leaseholder promotions - create opportunities for dealers to entertain their leaseholders at The Centre, with presentations/demonstrations by The Centre staff -- and a reception following, possibly with some form of ‘insiders’ benefit. product launches - encourage the use of The Centre tie-ins for product launches (buyers receive a The Centre item with purchase - or - a donation is made to The Centre educational programs with each purchase), with training/information sessions on The Centre programs and activities for sales representatives and/or customers at the dealerships. The Centre could also be used for these events. The Centre could obtain a donated car from a car sponsor and run an on-line car auction as a fundraiser. This would generate substantial awareness on-line and could be cross-promoted through the dealerships. Dealership appearances -where possible artists could be invited to make appearances at selected dealership locations for exclusive meet-and-greet programs Valet parking - free valet parking could be offered to those patrons driving a sponsor vehicle (others would have to pay for the service).

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-

-

-

-

Targets: Toyota, Ford, Chrysler/Jeep, Honda/Acura, Mazda, Volvo, Subaru, Kia, Hyundai

3. Telecommunications - The Centre could pursue a sponsorship marketing partner in the areas of long distance, wireless, telecom hardwarekabling, Internet hosting and web design. The Centre represents an opportunity for a telecommunications company to showcase its products and services while acquiring and retaining customers through promotional offers.

Other benefits may include: - Info Line - A program could be established whereby the public could enter a simple code on

their phone to reach The Centre info line to learn about current The Centre activities, hear news about key The Centre events, learn about upcoming performers, etc. and to have direct access to the box office for purchase of tickets. Message Centre - A location in the venue lobby could be branded as a Message Centre where patrons can register their seat numbers so they can be found in case of an emergency. For example a patron’s babysitter could be given the number of the message centre, and in case of emergency, the Centre could be called, and the patron could be notified. Patrons can also leave their mobile phones at the Centre for charging. Sampling - Phone trials could be conducted at selected eventlprograms. The Centre business - all The Centre cellular and long distance accounts would be transferred to the sponsor company. Affinity offer - The Centre patrons would be advised that a percentage of their bill would be donated back to The Centre educational programs if they were to switch to the sponsor’s service. Entertainment themed ring tones, games, special promos, e-postcards, The Centre membership info, screensavers, links to The Centre programs etc. could be offered. Photo contests could be offered, where submissions have to be made via a wireless phone.

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1 1 0 Kingston Regional Sports 8. Entertainment Centre, December 2006 Page 30 of 32

Targets: Nokia, Sony Ericsson, Motorola, Samsung, Siemens, Bell, Telus, Rogers Wireless, Solo, Virgin

4. Consumer ElectronicslBusiness Machines - A company could be designated as the “Official Consumer Electronics/Business Machines partner of The Centre”. The official Consumer Electronics/Business Machines partner would have exposure in all advertising and marketing materials, and an on-site display of flat-screen televisions, MP3 players, digital cameras, printers, etc. located in the lobbies and other public spaces. This could be leveraged further by inviting the Consumer Electronics/Business Machines partner to conduct retail promotions involving The Centre (IE. purchase a selected product - and receive tickets to -- or merchandise from -- The Centre events). The Centre displays could be created in selected retail locations along with promotional brochures. Retailer advertising could include a panel promoting their relationship with The Centre. An endowment program could be created whereby a donation is made to support The Centre music education programs with each item sold to a The Centre patron. Customer loyalty programs could include special offers or added-value incentives related to The Centre events and programs. The Centre would use the Consumer ElectronicslBusiness Machines partner’s products exclusively.

Other benefits may include: - trade promotions -Whichever sales representative sells the most products in a particular

month will have the chance to win prizes -which could include tickets to a The Centre event/program etc. product launches - encourage the use of The Centre for product launch events, with training/information sessions for sales representatives and/or customers. The Centre could obtain donated sponsor products to be auctioned off as a fundraiser, or given away as a promotional prize. This would generate substantial awareness and could be cross promoted through retailers.

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Targets: Sharp, Canon, Hitachi, Sanyo, Panasonic, JVC, Ricoh, Xerox, Lenovo, Epson, Konica Minolta, BenQ, iPod, Sony, LG, Philips, Pioneer, Samsung

5. EnergylUtility - A sponsorship marketing partner should be pursued in the energy/utility area. The Centre represents an opportunity for a company to promote energy conservation while acquiring customers through promotional offers and events.

Other benefits may include: - The Centre business - all The Centre energy requirements would be fulfilled through the

sponsor company. - Affinity offer - The Centre patrons would be advised that a donation would be made back to

The Centre educational programs if they switched their energy supplier over to the sponsor company. Education - The sponsor could establish an interactive educational facility at The Centre showcasing the steps a person can take in making their home more fuel-efficient.

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Targets: Direct Energy, Bullfrog, Hydro One, Ontario Power Generation, Constellation Energy, Enbridge

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1 1 1 Kingston Regional Sports 8 Entertainment Centre, December 2006

COUNCIL MEETING04 JAM ? ? ’87

5.0 CONCLUSION

There is significant potential for The Centre to acquire a naming sponsor and additional sponsorship revenue and related marketing support from corporations if they are able to offer business-building marketing partnerships as defined in this report. The attached valuation indicates that the potential revenue is over $4.5 million over an initial ten year term.

By assigning quantifiable pricing to each sponsorship opportunity, The Centre can justify fees to potential sponsors and maximize revenue generated.

The Centre should structure each sponsorship relationship in such a way as to collect a sponsorship fee and leverage the maximum marketing value for The Centre in terms of creating profile for -- and selling tickets for The Centre events. In every case, significant marketing value - and a strong business case - needs to be created for the sponsor.

It is important to keep in mind that ‘less is more’ in a sponsor’s eye. By limiting the number of sponsors to a select list of partners that are exclusive in their categories, there will be more focus on each company, and they will be more prepared to make a stronger commitment to the organization. So long as there is clutter, the marketing value of the sponsorship is diminished, and the attraction of the organization declines as a marketing asset to corporations.

The prestige, profile and anticipated popularity of The Centre, and its significance within the Kingston, should make it an attractive property for sponsoring companies conducting business in the region, wanting to reach the general populace, including the season university population, and anticipated tourists. By structuring the opportunities effectively, The Centre can be confident that it will be successful in its sponsorship efforts.


COUNCIL MEETINGO 4 JAN 3 3 ‘07 CITY OF KINGSTON NAMING OF CORPORATE ASSETS POLICY

Approved by Citv Council June 22,,2004

A. Purpose This policy is to encompass the naming of any corporate asset including parks, open spaces, facilities, streets and other municipal buildings or properties. The final decision for naming of corporate assets will rest with City Council, including naming opportunities as a result of gifts and sponsorships. The naming of a particular corporate asset is important for public awareness, promotion and emergency access. Therefore, naming will be consistent with the City of Kingston’s vision and will not contravene any policy of the City nor reflect negatively on the City’s public image.

B. Intent The intent of this policy is to:

Continue the current traditional practice of naming municipal property, buildings and park elements after significant geographical, neighbourhood and historical elements; Recognize on an exception basis, significant contributions that organizations or individuals have made to the public life and the well-being of the people of Kingston; Provide direction of how to apply for approval to name, rename or dedicate municipal property, buildings or park elements

C. Policy Statements 1.

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3.

4.

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There are four main types of naming situations this policy intends to address: Opening of a new corporate asset or reopening of a corporate asset following refurbishment Honouring individuals or groups Recognizing international, national or provincial events/competitions Providing recognition of gifts, sponsorships and joint ventures

The selection of a name will be based on a number of criteria including but not limited to: A longstanding local area identification with the residents Understandable to the majority of citizens in Kingston Consistent with any other applicable policies and naming guidelines Assists with emergency response situations by being consistent with street names and geographical locations and meeting the requirements of Kingston Fire and Rescue, Kingston City Police, and Kingston Regional Ambulance Services Consistent with sponsorship levels

Preference will be given to names that: Give a sense of place, continuity and belonging reflecting the geographic location, community, neighbourhood or street where the corporate asset is located and/or; Recognize the historical significance of the area and/or; Reflect unique characteristics of the site and/or; Reflect the type of service offered and/or; Are in keeping with a selected theme and/or; Honour individuals, living or deceased, who have made a significant contribution to the community

Names will not be chosen that: Cause confusion due to duplication or names sounding similar to existing locations within Kingston Are the names of tobacco companies Lend themselves to inappropriate short forms or modifications Are discriminatory or derogatory considering race, gender, creed, political affiliation, or other similar factors Recognize the birth, marriage or anniversary of specific individuals (this can be done through individual dedications of benches and trees though Parks and Arenas)

Names of persons, organizations, corporations, foundations or their families will be considered when they have made a significant contribution to the City by: Enhancing the quality of life and well-being of the City Contributing to the historical or cultural preservation of the City Contributing toward the acquisition, development or conveyance of land or building 1 1 3

And/or Achieving excellence in their endeavours and representing Kingston in a meritorious manner

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Where there is a direct relationship or association that exists between former place of residence of the person or group and the asset to be named

Naming in honour of elected or appointed public officials, City administrative officials or staff shall occur posthumously.

Where the name of an individual is recommended.after an in camera discussion, consent shall be obtained from the individual or their next of kin prior to Council's public consideration.

Where the naming opportunity is as a result of a sponsorship or gift the following factors must be considered: The significance of the contribution made relative to the construction and operating costs of the item being named The cost of establishing the naming option (e.g. cost of the signage to be paid by the applicant unless the City has made the request for the name change) Sunset clause associated with the length of time that the name will be used. Naming agreements may be renewed if the appropriate gift or sponsorship is received.

Existing names will not be changed without consideration of the historical significance of the existing name, the impact on the individual or organization previously named, the cost and impact of changing existing signage, rebuilding community recognition and updating records (i.e. letterhead, databases, promotional materials) Each application will be considered on a case-by-case basis.

D. Application Review and Approval Process

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Applicant(s) shall submit a written request for civic naming to the City Clerk. The written request shall provide the following: Background information concerning the rationale for consideration of the request; Biographical information if named after an organization or individual; and Documentation including letters from organizations and individuals providing substantial support for the request.

Each application for naminghenaming shall undergo a process which will: Review the application for conformity with this policy Circulate the application to the appropriate internal stakeholders for comment on the suitability of the application Discuss in camera any naming in recognition of an individual prior to discussing it with the individual or next of kin. Consult with external stakeholders in the community to the level of support or identify possible objections to the requested civic naming Determine whether or not a special event is planned to coincide with the formal naming

1 7 4

COUNCIL MEETING0 4 JAN 2 3 ’07

CITY OF KINGSTON

REPORT TO COUNCIL

I Report No: 07-063 I

TO: Mayor & Council

FROM: Denis Leger, Commissioner of Corporate Services

RESOURCE STAFF:

DATE OF MEETING:

SUBJECT:

Barclay Mayhew, Manager of Facilities

January 23,2007

Draft Agreement: Placement of Automated External Defibrillators on City Property

EXECUTIVE SUMMARY: As part of a Province-wide initiative, the City of Kingston has been working with the Heart and Stroke Foundation of Ontario to place automated external defibrillators (“AEDs”) at several locations throughout the City of Kingston and provide related training for their proper operation. Through discussions with the Foundation, as well as internal meetings, a development and implementation plan has been prepared and the terms of a Memorandum of Understanding (“MOU”) have been drafted.

Staff-are in the latter stages of the development of policies, training program, and implementation plans for the procurement and placement of AEDs in various City facilities. These discussions and the development of policies, programs, and plans have been occurring since very early 2006. The development and discussions with the Heart and Stroke Foundation for the hnding of AEDs have been fairly recent beginning in November 2006.

These discussions have led to an agreement in principle that requires Council sanctioning to finalize the MOU. The Heart and Stroke Foundation and partners are poised to make an announcement prior to the next meeting of Council, that the City, along with other communities, will be receiving a certain number of defibrillators. The MOU has to be approved by Council and executed by the Mayor and Clerk as per City by-law for it to take effect. It was and remains the intent of staff to complete the planning, policy work, training program and implementation plan and to bring forward to the appropriate standing committee and eventually Council for adoption.

The recommendation being brought forward by staff includes the direction to bring the related policy work back to standing committee. It is consistent with the Notice of Motion introduced at Council on January 9, 2007, which will in addition set a timefi-ame for the work to be completed. Staff are confident that it can undertake to complete the work within the timelines set out in the Notice of Motion.

REPORT TO COUNCIL

Commissioner Hunt, Finance & Corporate Performance

Report No,: 07-063

- Page 2 -

N/A

RECOMMENDATION: THAT the Mayor and Clerk be directed to enter into a Memorandum of Understanding with the Heart and Stroke Foundation of Ontario in a form to the satisfaction of the Director of Legal Services;

- and further - THAT staff be directed to develop the appropriate policies, training program, and implementation plans and that the matter be brought back to the appropriate standing committee for consideration.

Commissioner Leger, Corporate Services

Jim Keech, President, Utilities Kingston

AUTHORIZING SIGNATURES:

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CONSULTATION WITH THE FOLLOWING COMMISSIONERS:

Commissioner Beach, Growth & Sustainability

Commissioner Segsworth, Public Works h Emergency Services /. Commissioner Thurston, Community Development Services 1

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OPTIONS/DISCUSSION:

The City of Kingston has been approached by the Heart and Stroke Foundation of Ontario as part of a province-wide initiative to place automated external defibrillators (AEDs) and provide related training in fifteen communities across Ontario over the next three years. The opportunity for the placement of automated external defibrillators on City Property was discussed at the January 30, 2006 Arts, Recreation & Community Policies Committee (ARC) meeting, when it was moved and carried that this issue “. . .be referred to appropriate staff for a committee report and referred back to the appropriate committee for further discussion.” The report of the ARC Polices Committee was received and approved at a subsequent Council meeting.

The Heart and Stroke Foundation, along with its corporate partners, is entering into agreements to place AEDs at public locations throughout Ontario. In the present phase of the program, Kingston will join with Simcoe, Chatham and Niagara in providing placement of 35 AEDs, eight of which will be placed in the City of Kingston. As part of the program, the Heart and Stroke Foundation will provide $4,500 per AEDs for equipment and training. Placement locations will include appropriate recognition of this donation.

The Commissioner of Corporate Services and City Solicitor had taken the lead and coordination role on the review of this matter in early 2006. Several meetings with appropriate staff fiom Community Development Services (Grand Theatre) and Public Works & Emergency Services (Fire Department), and other Corporate Services staff (Facilities Management and Arenas). Staff have consulted and worked with external parties such as Hotel Dieu Hospital and other municipal colleagues on such issues as policy development, risk management, CPR and AED training requirements.

As a result of the discussions with the Heart and Stroke Foundation, as well as the results of internal meetings, a proposed draft plan entitled “Public Access Defibrillation Program Coordinator Proposal” for the AED program was received in November 2006 and a draft MOU were been prepared in December 2006 which, upon finalization, is to be entered into between the City and the Heart and Stroke Foundation. The draft plan sets out the requirements for the development and implementation stages of the program, which include:

0 Development - includes site assessment and site medical response plan; acquisition of defibrillator and ancillary equipment incident tracking and documentation; and program quality assurance.

Implementation - organization and holding of all training sessions; installation of all defibrillators and ancillary equipment; notification of allied agencies of the existence and locations of public access defibrillators within the City of Kingston; designate a lead PAD person at each site.

A copy of the “Public Access Defibrillation Program Coordinator Proposal” is attached as Exhibit “A”. A copy of the draft MOU is attached hereto as Exhibit “B”. Through pursuing the objectives set out in these documents, staff are confident that a full policy and training program for consideration within a 60-day timefiame which will set out further times lines for full implementation.

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COUNCIL MEETING0 4 JAN ? 3 ’07 APPENDICES TO REPORT W7-063

January 23,2007 - Page 4 -

EXISTING POLICY/BY LAW:

NIA

NOTICE PROVISIONS:

NIA

ACCESSIBILITY CONSIDERATIONS:

NIA

FINANCIAL CONSIDERATIONS:

The City of Kingston will be receiving seven public access defibrillators and related training to be used in the following facilities:

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Cataraqui Arena . Memorial Centre . Centre 70 Arena . Artillery Park

Large Venue Entertainment Centre (x2) Multiplex Arena - under construction

The allocation is based on a maximum of $4,500 per AED unit, which covers the costs of the equipment, cabinets, and related training. The total maximum value to the municipality is $3 1, 500.

CONTACTS:

Barclay Mayhew, Manager of Facilities Clint Long, Kingston Fire & Rescue

OTHER CITY OF KINGSTON STAFF CONSULTED:

Clint Long, Training Officer, Kingston Fire and Rescue Alan McLeod, Senior Legal Counsel

546-4291, Ext. 1350 548-4001

EXHIBITS ATTACHED:

Exhibit “A” - “Public Access Defibrillation Program Coordinator Proposal”

Exhibit “B” - Draft Memorandum of Understanding.

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Exhibit A

Public Access Defibrillation

Program Coordinator Proposal

Prepared for:

The City of Kingston

Submitted To: Clint Long, Training Officer Kingston Fire & Rescue

Submission Date: November 23,2006

Submitted By: Mark Halladay

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Assumptions

In preparing this proposal it is assumed that the reader is aware of the issues of heart disease, the number of incidents that occur in our community and the potential positive impact that a Public Access Defibrillation (PAD) Program could have on a patient suffering a cardiac arrest in the City of Kingston. Therefore, this proposal only details information about the operational issues required to develop, implement and maintain a PAD program.

Introduction

The purpose of this proposal is to outline what:

1. is required to develop, implement and maintain a Public Access Defibrillation (PAD) program in the City of Kingston,

2. services I am able to provide to the City of Kingston to meet these requirements,

PAD Program Development

To ensure that a well-structured, organized and comprehensive PAD program is implemented the following issues must be addressed within the development phase of the PAD Program:

1. Site assessment 2. Site medical response plan 3. Medical direction 4. Staff training in CPR & AED, site emergency response plan 5. Acquisition of defibrillator and ancillary equipment 6. Maintenance and technical service (pre/post event) 7. Incident tracking and documentation 8. Post event support 9. Program quality assurance 1 0. Program continuous quality improvement 1 1. Media communication

PAD Program Implementation

To ensure that a well-structured, organized and comprehensive PAD program is implemented the following issues must be addressed within the implementation phase of the PAD Program:

1. Organize and coordinate all training sessions. 2. Complete all staff training in accordance with the Heart and Stroke Foundation of

Canada's CPR & AED guidelines.

2 1 2 0

3. Complete all staff training in regards to the existence and implementation of site emergency response plans.

4. Maintain training records. 5. Acquire and install all defibrillators and ancillary equipment. 6. Maintain records cataloguing the location, maintenance and usage of all devices. 7. Notify allied agencies of the existence and locations of public access defibrillators

within the City of Kingston. 8. Initiation of program. 9. Implement a communication strategy for staff 10. Media Communications i.e. Program Launch 1 1. PAD Coordinator accessibility and availability to respond after incident of use or

in the event of a unit needing attention. 12. Designate a lead PAD person at each site. 13. Implement a maintenance program and maintain records of this program. 14. Implement a staff awareness program for non-trained staff at each site. 15. Implement an audit system to review the details surrounding an event where the

PAD was used.

PAD Program Maintenance

To ensure that a well-structured, organized and comprehensive PAD program is implemented the following issues must be addressed within the maintenance phase of the PAD Program:

1. Maintain records of all trained personnel. 2. Maintain records of all defibrillators and ancillary equipment. 3. Monitor and record ongoing monthly equipment checks. 4. Respond to site if defibrillator is used to download data, restock supplies as

required and ready the device for further use. 5. Ensure all required post event documentation is completed and submitted to

appropriate entities within required time fkames. 6. Ensure staff access to Critical Incident Stress Management if required. 7. Complete a post event debriefing with responders to determine what worked well

and what didn't work well in an attempt to provide continuous quality improvement initiatives for the program.

8. Maintain documentation of the post event debriefing. 9. Maintain a communications strategy with staff, public and media. 10. Communicate with lead PAD person at each site as required. 1 1. Implement on ongoing maintenance of education program. 12. Host and maintain records for annual retraining.

Discussion

1. This document has been very thorough in detailing what is required to develop, implement and maintain a PAD program in the City of Kingston. However, there

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COUNCIL MEETINGO 4 JAM ;P '(17

are a number of unanswered questions that need to be answered before a detailed work plan can be outlined. [To be further discussed and prepared]

Conclusion

As outlined in this document I am acutely aware of the required components of implementing a PAD Program in the City of Kingston. As well, with my background in EMS, Management, having a Bachelor of Science degree in Pre-hospital patient care, and being a CPR / AED Instructor Trainer for the HSFO, I have the knowledge and experience required to develop, implement and maintain a PAD Program.

I am very interested in leading this project and taking all responsibility for it, thus relieving any additional workload that this project may create for city staff that would be responsible for it. I am available to meet with you to discuss the details outlined herein and any further information in regards to this project that may arise. Please feel free to contact me via email at [email protected] or via phone at 532-2305.

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mailto:[email protected]

COUNCIL MEET IN GO^ JAN 2 3 ‘07 Exhibit B

MEMORANDUM OF UNDERSTANDING

This MEMORANDUM OF UNDERSTANDING (hereinafter called the “Memorandum”) is made in duplicate as of the XXth day of November, 2006

Between HEART AND STROKE FOUNDATION OF ONTARIO

(hereinafter called the IIHSFO’I)

and

the CORPORATION OF THE CITY OF KINGSTON (hereinafter called the “City of Kingston”)

WHEREAS the Heart and Stroke Start a Heart, Save a Life Campaign (hereinafter called “the Campaign”) is actively collecting financial contributions for the purposes of funding the purchase and placement of Automated External Defibrillators (hereinafter called AEDs) in public settings in communities throughout the province of Ontario;

WHEREAS the Heart and Stroke Foundation has entered into a Sponsorship agreement with [to be negotiated] (hereinafter called “the Sponsor”) whereby over the course of three years HSFO will use monies donated to the Campaign by the Sponsor to place AEDs in 105 locations across the province of Ontario;

WHEREAS the CITY OF KINGSTON has developed the framework for a public access defibrillator program and has the necessary infrastructure and community support in place (hereinafter called PAD program);

WHEREAS the HSFO and the CITY OF KINGSTON have a declared mutual interest in a project which would result in Automated External Defibrillators being placed at public sites chosen by the CITY OF KINGSTON, the HSFO and the Sponsor, within the City of Kingston;

WHEREAS in recognition of the generous contribution by HSFO, the Sponsor and the CITY OF KINGSTON, the AEDs will feature appropriate recognition of HSFO, the Sponsor and the CITY OF KINGSTON - and any other relevant Sponsor(s), as mutually agreeable to the parties;

THEREFORE, in consideration of mutual covenants and understandings herein contained, the HSFO and the CITY OF KINGSTON agree as set out below:

1. AED Proiect (insert project title here):

The HSFO and the CITY OF KINGSTON (hereinafter called singly “a party” and collectively “the parties”) agree to fully collaborate on this project or initiative. The parties agree they will jointly:

COUNCIL ICIEETIWGO 4 JAN 2 3 '07 a) announce this project by way of a joint press release at a date and time to be

mutually agreed;

b) work collaboratively in all public communications related to the project;

c) when referring to this initiative in verbal and written communications refer to it as a joint initiative;

d) decide on the allocation of the AED units funded by the HSFO and at such time provide a detailed schedule to be appended to this memorandum governing the exact AED location(s), deployment date(s) and other particulars as deemed necessary.

2. RESPONSIBILITIES OF THE HSFO

The HSFO, through its CEO, shall be responsible for:

a) acting as the funder, to a maximum of $4,500 per AED including the cost of the AED equipment and related training, to allow CITY OF KINGSTON to complete the placement of AED units at appropriate public sites as mutually agreed upon by the parties;

b) providing the necessary training materials for approximately eight trainees per AED site, in AED operation and application for use by instructors appropriately certified in compliance with HSFO approved guidelines;

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c) providing necessary materials, stickers, plaques including logos and other intellectual property required to prominently display HSFO's support of this project as mutually agreed;

d) facilitating communications about this project in the form of a press release, press conference or other communication vehicles as mutually agreed;

e) to have subsequent press releases, as mutually agreed, when AEDs and training events roll out, inviting CITY OF KINGSTON and other relevant partners to participate in any such events or announcements of success stories related to the program;

f) promoting the CITY OF KINGSTON as a partner in the project within the City of Kingston and

g) facilitating achievement of the objects of this Memorandum.

3. RESPONSIBILITIES OF CITY OF KINGSTON

The CITY OF KINGSTON, through the PAD program coordinator, shall be responsible for:

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a) providing training and proof of such training for each unit installed, by instructors appropriately certified in compliance with HSFO approved guidelines;

b) participate in a press conference with HSFO, on a date to be mutually agreed;

c) making available information, access to data, and generally facilitating the conduct of this project including specific sites identified, criteria used to select sites and organization and operation of training programs necessary ;

d) undertaking to brand the cabinets within which the AEDs are kept and/or the wall adjacent to them with the HSFO logo, the Sponsor logo, the CITY OF KINGSTON logo and other relevant Sponsor(s) logo(s), as appropriate, and a legend that reads something to the effect of "This device made possible in part through the generous contribution from the Heart and Stroke Foundation of Ontario and its donors";

e) to keep HSFO up to date on roll out of the devices;

f) promoting the Campaign as the exclusive vehicle to raise funds for AEDs within the Cityi of Kingston

g) to provide ongoing data related to the AEDs including, but not limited to, number of events, number of saves, any other lessons which can be utilized by HSFO to help in potential, future research projects or research information;

h) will directly enter into any and all agreements required for the placement, deployment and training of such units directly with such third parties as required and will not require HSFO to be party to any such agreements;

i) to have subsequent press releases, as mutually agreed, when AEDs and training events roll out,. inviting HSFO to participate in any such events or announcements of success stories related to the program; and

j) facilitating achievement of the objects of this Memorandum.

The CITY OF KINGSTON acknowledges that this funding is specific to this project only and shall not be construed to be an obligation by HSFO to any other equipment, devices, training, training materials or any other activity outside the scope of this agreement.

It is acknowledged that the CITY OF KINGSTON will be responsible to provide the installation and ongoing maintenance for each AED placed under the project and for the appropriate training related to each AED deployed. Further, it is acknowledged that HSFO has no ongoing responsibilities of any nature in respect to the service, maintenance, ownership, repair, replacement or training in respect to units deployed with respect to this project.

4. FUNDING

a) Subject to the provisions of this Memorandum, the HSFO will provide a maximum of $4,500 per unit to cover the cost of the AED unit itself as well as related training, in support of the purchase by CITY OF KINGSTON of AEDs under the project.

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The CITY OF KINGSTON agrees to procure the AED units using a fair and transparent process in accordance with CITY OF KINGSTON purchasing policy.

Funds used for the purpose of AED purchase will be billed to HSFO by the CITY OF KINGSTON upon the successful completion of the installation of the respective AED during the term of this agreement:

Notwithstanding the above, the HSFO's payment of the full amount will be conditional on receipt by the HSFO of satisfactory evidence of installation and training in respect to each unit placed at each respective site. An invoice for each AED placed under the project will be issued by CITY OF KINGSTON and will be sent to:

Heart and Stroke Foundation of Ontario 2300 Yonge, 12fh Floor Toronto, Ontario M4P 1E4 ATTENTION: CFO

The HSFO will forward payment within 30 days of receipt of each invoice.

5. CONFIDENTIALITY

[To be negotiated]

6. INTELLECTUAL PROPERTY

a) Subject to the provisions of this Memorandum, the HSFO hereby grants to the CITY OF KINGSTON a royalty free, non-exclusive license to use and display the HSFO logo in connection with the activities mentioned in this Memorandum, on materials and in the manner determined by the HSFO on a case-by-case basis. The HSFO expressly retains all other rights in the HSFO logo and all other HSFO logos, service marks, trade-marks, copyrights and other such intellectual property. For greater certainty, the CITY OF KINGSTON agrees not to use the whole or any part of the HSFO logo, or any other HSFO logo, service mark or trade-mark, and not to permit the same to be displayed or used by third parties, unless the CITY OF KINGSTON has received the HSFO's specific written pre-approval for such use.

b) Subject to the provisions of this Memorandum, the CITY OF KINGSTON hereby grants to the HSFO a royalty free, non-exclusive license to use and display the CITY OF KINGSTON logo in connection with the activities mentioned in this Memorandum, on materials and in the manner determined by the CITY OF KINGSTON on a case-by-case basis. The CITY OF KINGSTON expressly retains all other rights in the CITY OF KINGSTON logo and all other CITY OF KINGSTON logos, service marks, trade-marks, copyrights and other such intellectual property. For greater certainty, the HSFO agrees not to use the whole or any part of the CITY OF KINGSTON logo, or any other CITY OF KINGSTON logo, service mark or trade-mark, and not to permit the same to be

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displayed or used by third parties, unless the HSFO has received the CITY OF KINGSTON specific written pre-approval for such use.

c) Each party acknowledges that the provisions of this Article 6 do not convey to a party any ownership interest in the intellectual property of the other party, other than as expressly set forth and described herein.

d) Ownership of any intellectual property rights, including copyrights and trade-marks, in and to any materials produced with respect to this Memorandum shall be agreed to by the parties, prior to the creation of such materials, on a venture-by-venture basis. In the event that the parties do not reach such a prior agreement concerning certain materials, then the intellectual property rights in and to these certain materials shall be owned jointly and equally by the CITY OF KINGSTON and the HSFO during the term of this Memorandum.

7. LIABILITY

a) Neither party shall be liable for any indirect, consequential or other similar damages suffered or incurred by the other party in connection with this Memorandum including, but not limited to, loss of revenues or savings by the other party, or for any demands, claims, actions or proceedings against the other party by any other person that is not a party to this Memorandum. Notwithstanding the foregoing sentence, each party (hereinafter called the “indemnifying party”) shall indemnify, defend and hold harmless the other party (including its agents and representatives) from and against any and all direct damages including, but not limited to, demands, claims, actions, proceedings and charges of any kind arising from or in connection with: (a) the indemnifying party’s breach of any provision of this Memorandum; and (b) the negligence, willful misconduct or illegal activities of the indemnifying party or its agents or representatives.

b) The CITY OF KINGSTON agrees that HSFO shall not be held liable for fulfilling its obligations hereunder and shall be indemnified and saved harmless by CITY OF KINGSTON with respect to any claims, losses, expenses, damages or liabilities incurred by it, except to the extent that such claims, losses, expenses, damages or liabilities result from HSFO’s own willful misconduct.

8. TERM AND TERMINATION

The term of this Memorandum shall be November XX, 2006 to November XX, 2007.

This memorandum may be extended with mutual consent of the parties.

This Memorandum shall be immediately terminated after receipt by a party (hereinafter called the “defaulting party”) of a termination notice from the other party (hereinafter called the “non-defaulting party”), if the defaulting party fails to fulfil any of its obligations under this Memorandum, unless the defaulting party remedies the default to the satisfaction of the non-defaulting party within 30 days after receipt of the notice

Upon termination of this Memorandum: I. each party shall immediately cease all communications and actions promoting the

other‘s involvement or connection with this project;

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COUNCJL MEETINGO 4 JAN 2 3 '07 II. each party shall, as soon as is reasonably feasible, cease all use of the other party's

intellectual property; and

e) In the event that this Memorandum is terminated for any reason or expires any terms and conditions required for the interpretation of this Memorandum, or necessary for the full observation and performance by each party, shall survive such termination or expiry.

9. MISCELLANEOUS PROVISIONS

a) Nothing contained in this Memorandum shall place the parties or their employees or affiliates in the relationship of partners, principal-agent, or employer-employee and neither party shall have any right to obligate or bind the other in any manner whatsoever.

b) Neither party shall assign its rights or obligations under this Memorandum without the prior written consent of the other party, and any assignment without consent shall be null and void.

c) All notices, requests, or other communications to be given by a party hereto shall be in writing (including facsimile or similar writing) and shall be given:

To the CITY OF KINGSTON at:

(INSERT ADDRESS HERE)

To the HSFO at:

Heart and Stroke Foundation of Ontario 2300 Yonge, 12'h Floor Toronto, Ontario M4P 1E4 Attn: CFO

or such other address as such party may hereafter specify by notice to the other party. Each such notice, request, or other communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the specified facsimile number and the appropriate answer back is received or (ii) if given by any other means, when delivered at the specified address.

d) Neither party shall be responsible for delays, failure, or omissions due to any cause beyond its reasonable control, wherever arising and not due to its own negligence and which cannot be overcome by the exercise of due diligence, including, but not limited to, riots, fires, earthquake, floods, storms, lightning, epidemics, war, disorders, hostilities, expropriation or confiscation of properties, interference by civil or military authorities or acts of God.

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e) This Memorandum contains the entire agreement between the parties, superseding any and all prior verbal or written communications with respect to the terms hereof, and may only be altered, modified, or changed by a written document signed by the parties.

f) Each party represents and warrants to the other that it has full power to enter into and perform this Memorandum and to grant the rights herein granted, and that the person signing below on its behalf has been properly authorized and empowered by it to execute this Memorandum.

The HSFO and the CITY OF KINGSTON have caused this Memorandum of Understanding to be duly executed by the authorized representatives of the parties.

HEART AND STROKE FOUNDATION OF ONTARIO (HSFO) HERE)

(INSERT NAME OF CONTRACTING PARTY

CEO (INSERT TITLE OF SIGNATORY HERE)

CFO

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