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R-2016-028 2016-02-22RESOLUTION NO. R2016-28 A Resolution of the City Council of the City of Pearland, Texas, adopting a Financial Naming Rights Policy for City facilities and parks. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Council hereby adopts the Financial Naming Rights Policy, attached hereto as Exhibit "A". PASSED, APPROVED, AND ADOPTED this 22nd day of February, A.D., 2016. ATTEST: APPROVED AS TO FORM: QA,— D,RR N M. COKE CITY ATTORNEY TOM REID MAYOR _- '_ _v` �� '//''""H H i n‘"r‘N WLa Resolution No. R2016-28 Exhibit "A" (lt) of Pearland FINANCIAL NAMING RIGHTS POLICY PURPOSE Financial Naming Rights refers to the granting, by the owner, the right to name a piece of property or portions of a property usually granted in exchange for financial consideration. The City of Pearland intends to authorize the naming of certain parks, facilities and facility components in return for private sector monies. The purpose of this policy is to develop a systematic and consistent approach for the official naming of certain city park facilities. The goal is to provide a consistent evaluation framework and approval process when considering naming proposals for city park facilities. DEFINITIONS City Park Facility: any property, complex, structure, building or portion thereof owned or controlled (e.g. through long term lease) by the City of Pearland that is under the care and custody of the Parks & Recreation Department, including but not limited to the interior and exterior spaces, pools, sports fields, shelters, playgrounds, open spaces, trails, sport courts, trails, park benches, water fountains, flowerbeds, gardens, sports equipment, brick pavers and decorative walls. Market Valuation: a current assessment of the potential value within the marketplace of the naming rights for a specific property. Naming Rights Agreement: a legal contract outlining the terms of the agreement between the Naming Entity and the City. Naming Entity: the entity (e.g. corporation, corporate foundation, community organization or individual) to whom naming rights are granted pursuant to a Naming Rights Agreement. Naming Rights: the right to name or rename a City Park Facility in exchange for financial consideration. DISCUSSION In granting naming rights, due regard shall be taken of the need to maintain an appropriate balance between commercial considerations and the City's stewardship role for city park facilities. The granting of naming rights shall not entitle a naming entity to preferential treatment by the City outside of the naming rights agreement. The approval of naming rights shall not result in any additional costs to the City, excluding the City's approval process. Naming rights may not be resold or assigned by the naming entity. When a company changes its name, the naming rights may be changed to reflect the new name by mutual agreement. The cost to change the name of any signs will be the responsibility of the naming entity. Signage and acknowledgement associated with naming rights shall be included in the proposal submitted to City Council, and shall comply with the City of Pearland Sign Ordinance. Naming of a city facility should include the function of the facility to the extent practical, such as `sports complex' or `recreation center'. The City shall endeavor, to the extent reasonably practical, to balance its responsibility to maintain transparent processes and provide full disclosure to the public, with its responsibility to maintain confidentiality regarding third party interests. The City shall not relinquish to the naming entity any aspect of their right to manage and control the facility being named. All Naming Rights Agreements shall be for a fixed term and shall be decided or negotiated on a case-by-case basis, and may be renewed by mutual agreement with the purchaser and City Council. Naming Right Agreements shall be in the form of a legal contract between the Applicant and the City and shall include, but not be limited to the following provisions: • The term of agreement, including reasons for possible termination or revocation of said naming rights. • Renewal options, if any. • Value assessment, including cash, in-kind goods and services (and method of evaluating in-kind contributions). • Payment schedule. • Rights and benefits. • Agreement to remove or cover signage for a limited period and only during an event where the City has a legal obligation to ensure sites are free of corporate signage. • Release, indemnification, hold harmless and early termination clauses. • Insurance clauses. All naming rights agreements shall be reviewed to the satisfaction of the City Attorney. The purchaser of naming rights may revoke the naming rights at any time with the understanding that no refund or reduction of their financial commitment will occur. The City reserves the right to terminate naming rights where continuation of the relationship would bring the City into disrepute. EVALUATION The proposed name to City Park Facilities shall be consistent with the image and values of the City of Pearland and the community. In general names shall not be chosen that: • Cause confusion due to duplication or names sounding similar to existing locations within the City. • Are names of companies whose business are substantially derived from the sale of alcohol, tobacco, firearms, and/or pornography; or any other business or industry that, in the sole discretion of the City, is deemed inappropriate. • Are discriminatory or derogatory considering race, gender, creed, religious, political affiliation, sexual orientation, or other similar factors. • Violate copyright or trademark laws. PROCEDURE The Parks & Recreation Director shall keep an Asset Inventory, approved by City Council, for City Park Facilities eligible for naming. The Asset Inventory is to include a description of the space, amenity, or facility proposed for naming and a minimum accepted value based on market valuation. This list may be amended by City Council at any time. The City Council will authorize, by contractual agreement, the Forever Parks Foundation of Pearland to seek, negotiate and secure the purchase of naming rights to city park facilities identified by Council. The Forever Parks Foundation of Pearland will develop and implement a marketing strategy to secure the purchase of naming rights for the identified city parks facilities. The Foundation will identify potential purchasers, solicit sales, and negotiate any proposed agreements. The Parks & Recreation Director will submit the agreement with a recommendation to the City Council for action. Following City Council approval, the purchaser will contribute the funds to the Forever Parks Foundation of Pearland. The Forever Parks Foundation of Pearland will utilize the proceeds in accordance with the priorities set forth by City Council for A) Capital improvements to the park and recreation system, B) Funding of programs and services, C) A portion of the proceeds may be placed in an endowment fund with the interest utilized to offset maintenance and replacement costs. In the event that Applicants wish to pursue Naming Rights for City Park Facilities not on the approved Asset Inventory, the Applicant may make a written proposal to the Parks & Recreation Director who may recommend the addition of the amenities, facility, and property to the Asset Inventory. REFERENCE Asset Inventory REVIEW & REVISION HISTORY