Kanata South Coun. Allan Hubley is questioning the use of a private consultant for the city’s sponsorship and advertising program.
The city’s sponsorship and advertising program isn’t bringing enough revenue in comparison to the original targeted amount, indicates a status report by the city staff, requested by Kanata South Coun. Allan Hubley.
The program is one of nine strategic initiatives approved by the city in 2011. Its main objective was to achieve revenues of $12.7 million over five years. Revenues were expected to come from naming rights, program sponsorships, advertising opportunities in facilities, websites and other city operations, according to the report.
However, in the last year, the program only managed to raise $773,309 – a shortfall of about $2.3 million from its $3.08-million annual target.
The costs for private consultant Centre of Excellence for Public Sector Marketing outweigh long-term values for the city, Hubley says.
Negotiations for naming rights between the city and sponsors “have not made the money (the department) thought they would make” with the use of a consultant, Hubley says.
“A good percentage of the money that has been raised so far was not raised by (the firm),” Hubley says, referring to the Richcraft Kanata North Recreation Complex agreement worth $500,000, which was negotiated by the city.
Hubley says the program should be run entirely by trained city staff, as opposed to depending on outside expertise.
The firm currently receives commissions between 15 and 20 per cent of revenues on contracts.
Hubley brought his concerns to the finance and economic development committee last week, directing his questions at Dan Chenier, the city’s parks, recreation and cultural services manager.
Chenier told the committee that consultants are beneficial to maximize positive results. He says staff and consultants should continue to work together.
“We’re just looking for advice from him on a variety of things (such as) pricing opportunities or industry standards. We can use this consultant as much or as little as we like,” Chenier says, noting the department will focus on clarifying responsibilities between staff and consultants in the following year.
Consultants will be delegated more tasks that involve going out and calling for community businesses interested in sponsoring.
Chenier also said that the past year’s shortfall was partially offset by “savings in activation and recognition expenditures of $645,043,” making the actual gap approximately $1.7 million.
Since the program began, the firm has been involved in more than 130 projects. This includes following up on research, proposals, negotiations and agreements, according to the report.
The program has been related to several negotiations directly affecting Centretown residents. It has given exclusive rights to Coca Cola in all city facilities, sponsored the Rink of Dreams with the addition of food concession stands for this year’s Winterlude, and installed a digital screen at city hall to showcase the community champions program.
The program kicked off in early 2012 by the city’s parks, recreation and culture department.
At the end of the recent committee meeting, Hubley confirmed with Chenier that staff will have an increased leadership role in the remaining years of the program.
“It’s our money,” Hubley says. “People of Ottawa express their concerns every day to us (on) how we spend their money.”