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R-03-02-27-9A1 - 2/27/2003_g1 0s \vdox \RESOLUTI \R10227A1APD /ec RESOLUTION NO. R- 03- 02 -27 -9A 1 WHEREAS, the City of Round Rock desires to retain national media relations services, and WHEREAS, Development Counsellors International has submitted an Agreement for Consulting Services to provide said services, and WHEREAS, the City Council desires to enter into said agreement with Development Counsellors International, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Agreement for Consulting Services with Development Counsellors International, for national media relations services, a copy of said agreement being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended RESOLVED this 27th day of February, 003 /L‘p. / at_ -ff__ //�� � , " NYL LL, Mayor AT '�5+ [/ / ry City •' Round Rock, Texas CHRISTINE R. MARTINEZ, � City Se etary o- \ wdox COxFasnr ,nrmaI6 &WPu,k, NOW, THEREFORE, WITNESSETH: 1.02 GENERAL CONDITIONS RECITALS: 1.01 EFFECTIVE DATE, DURATION, AND TERM EXHIBIT r 4 1. CITY OF ROUND ROCK AGREEMENT FOR CONSULTING SERVICES WITH DEVELOPMENT COUNSELLORS INTERNATIONAL THIS AGREEMENT is made and entered into on this the day of the month of , 2003, by and between the City of Round Rock, a Texas home -rule municipal corporation, whose offices are located at 221 East Main Street, Round Rock, Texas 78664 -5299 (hereinafter referred to as "City"), and Development Counsellors International, whose offices are located at 461 Park Avenue South, New York, New York 10016 (hereinafter referred to as "DCI "). WHEREAS, City desires to contract for DCI's assistance in developing a national media public relations campaign and providing national media relations' services in the area of economic development and tourism marketing, and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: This Agreement shall be effective on the date it has been signed by every party hereto, and shall remain in full force and effect unless and until it expires by operation of the term indicated herein, or is terminated or extended as provided herein. The term of this Agreement shall be for seven (7) months beginning March 1, 2003 and ending September 30, 2003. After that initial term, this Agreement may renew and extend for successive terms for a period not to exceed two (2) years after the initial expiration of term, only upon the express written agreement of both parties and only provided DCI has performed all covenants and undertakings specified in this Agreement and any appended materials. City reserves the right to review the relationship at any time, and may elect to terminate this Agreement with or without cause or may elect to continue. The General Conditions contained herein shall apply to DCI's document entitled "The City of Round Rock, Texas National Economic Development Public Relations Campaign, "attached hereto as Exhibit "A" and made a part hereof of all appropriate purposes. This Agreement (and all attached exhibits) is entered into by and between the City of Round Rock or its subsidiaries or affiliates (collectively "City ") and DCI or any entity directly or indirectly owned or controlled by same (collectively "DCI "). 1.03 PROPOSAL FOR MEDIA PUBLIC RELATIONS SERVICES 1.04 SCOPE OF SERVICES For purposes of this Agreement, DCI has issued its document attached hereto as Exhibit "A" for the assignment(s) delineated therein. Such document, as issued by DCI, is appended to this Agreement and labeled as Exhibit "A." Such document is deemed to incorporate the General Conditions contained herein. Except with respect to the description of specific services and fees for the assignment(s) delineated therein, the General Conditions of this Agreement and this Agreement itself shall prevail over any conflicting terms therein. Taken together with the appended document, the General Conditions contained in this Agreement shall evidence the entire understanding and agreement between the parties and supersede any prior proposals, correspondence or discussions. DCI shall satisfactorily provide all services described under this "Scope of Services" category. DCI's undertakings shall be limited to performing services for City and/or advising City concerning those matters on which DCI has been specifically engaged. DCI shall perform its services in accordance with these General Conditions and this Agreement, in accordance with the appended exhibit, in accordance with due care, and in accordance with prevailing consulting industry standards for comparable services. OBJECTIVE A: SCOPE OF SERVICES DCI shall, within the first fourteen (14) days of the term of this Agreement, conduct a three - day on -site visit by DCI representatives to define specific story theme lines related to Round Rock's overall success story. Such visit shall include the requirement that DCI schedule and attend a series of meetings /interviews with executives from companies in the area, that DCI schedule and attend tours of company facilities, and that DCI schedule and attend meetings with public sector and private sector spokespersons. In that regard, it is understood and agreed by and between the parties that City shall assist in (1) scheduling such meetings and appointments via letters of introduction or (2) introducing DCI representatives and/or actually arranging such meetings and appointments. Additionally, DCI shall create and provide a "most wanted" list of media outlets. Such list is defined as a blend of general business, trade and broadcast outlets which are read and /or viewed by prospective investors, and such list shall delineate the "top targets" for DCI's efforts. 2 OBJECTIVE B: OBJECTIVE C: OBJECTIVE D: OBJECTIVE E: OBJECTIVE F: OBJECTIVE G: 3 1< t DCI shall consult with City representatives to identify and select appropriate spokespeople for a media/site selection consultant tour. DCI shall then coordinate this tour, arranging a total of at least four (4) interviews with journalists at top -tier media outlets and at least two (2) appointments with targeted site selection consultants. DCI shall organize and host a two -day business press trip for at least three (3) press people from general business and targeted trade outlets to meet in Round Rock with senior level business executives at companies located in the area. Prior to such business press trip, DCI shall research story ideas and angles to fit the editorial focus of each target publication, shall coordinate efforts with area chambers of commerce, shall work with City staff to provide appropriate background material for industry journalists, shall assist in story development, shall advise on company spokespeople, and shall implement a series ofmeetings to which are invited industry journalists who are taken to visit key companies in the area for a series of personal interviews and fact - finding excursions related to their story development needs. Prior to such business press trip, DCI shall develop a media list of publications and writers who focus specifically on the industries targeted by DCI in collaboration with City representatives. DCI shall arrange for at least one (1) top -tier media outlet to visit Round Rock for story research, and shall facilitate and offer assistance in arranging appointments and interviews for their representatives. DCI shall approach and/or respond to top -tier media outlets, both print and broadcast, with a series of story angles highlighting the dynamic business environment in the area resulting in national and regional media placements, and such effort shall be on an ongoing basis. DCI shall advise City representatives on how to achieve positive coverage in the region's local media outlets, and shall assist in replaying national publicity results within the area. DCI shall use best efforts to assist City in effectively marketing its business advantages to a national business audience. This effort shall include but not be limited to providing feedback on advertising programs, prospect research, advice on website development, and trade shows assistance. 1.05 PAYMENT FOR PROFESSIONAL SERVICES In consideration for the professional services to be performed by DCI, City agrees to pay DCI the following sum(s) as stated herein: Professional Fees at $6,545.00/mo for 7 months $45,815.00 Reimbursable Expenses Not to exceed $14,750.00 $60,565.00 1.06 TERMS OF PAYMENT To receive payment for professional services, DCI shall prepare and submit a series of monthly invoices in a form acceptable to City Each invoice for professional services shall track the "Scope of Services" category herein, and shall state and detail the services performed, along with documentation for each such service performed. City shall endeavor to pay DCI in accordance with the Prompt Payment Policy described in Section 1.07 herein. City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon DCI's net income. 1.07 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to DCI will be made within thirty (30) days of the day on which City receives the performance, or within thirty (30) days of the day on which the performance of services was complete, or within thirty (30) days of the day on which City receives a correct invoice for the performance or services, whichever is later. DCI may charge a late fee (fee shall not be greater than that which is permitted by Texas law) for payments not made in accordance with this Prompt Payment Policy; however, this policy does not apply to payments made by City in the event: 1. There is abona fide dispute between City and DCI concerning the services performed that causes the payment to be late; or 2. The terms ofa federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds; or 3. There is a bona fide dispute between DCI and a subcontractor or between a subcontractor and its supplier concerning the services performed which causes the payment to be late; or 4. The invoice is not mailed to City in strict accordance with instructions, if any, on any purchase order or this Agreement. 4 1.08 NON - APPROPRIATION This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the services as determined by City's budget for the fiscal year in question. City may effect such termination by giving DCI a written notice of termination at the end of its then - current fiscal year. 1.09 TERMINATION OR SUSPENSION City may terminate or suspend performance of this Agreement for City's convenience upon written notice to DCI. In that event, DCI shall terminate or suspend performance of the services on a schedule acceptable to City. If termination or suspension is for City's convenience, City shall pay DCI for all uncontested services performed to date of notice. This Agreement maybe terminated by either City or DCI upon thirty (30) days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of this Agreement and any appended documents. The non - performing party shall have fifteen (15) calendar days from the date of the termination notice to cure or to submit a plan for cure acceptable to the other party. The non - defaulting party shall be entitled to receive just and equitable compensation for all services completed and all legal fees incurred by this action. 1.10 CITY'S RESPONSIBILITIES 5 City shall have the responsibility of providing DCI with such documentation and information as is reasonably required, if any, to enable DCI to provide the services called for. City shall cause its employees and any third parties who are otherwise assisting, advising or representing City to cooperate on a timely basis with DCI in the provision of its services. DCI may rely on written information provided by City and its employees and agents as accurate and complete and may rely on written directions provided by City and its employees and agents regarding provision of services. 1.11 INDEPENDENT CONTRACTOR STATUS DCI is an independent contractor, not City's employee. DCI's employees or subcontractors are not City's employees. This Agreement does not create a partnership relationship. Neither party has authority to enter into contracts as agent for the other party. DCI and City agree to the following rights consistent with an independent contractor relationship: 1. DCI has the right to perform services for others during the term of this Agreement; and 2. DCI has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed; and 3. DCI has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement; and 4. DCI or DCI' s employees or subcontractors shall perform the services required by this Agreement. City shall not hire, supervise, or pay any assistants to help DCI; and 5. Neither DCI nor DCI's employees or subcontractors shall receive any training from City in the skills necessary to perform the services required by this Agreement; and 6. City shall not require DCI or DCI's employees or subcontractors to devote full time to performing the services required by this Agreement; and 7. Neither DCI nor DCI's employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. 1.12 CONFIDENTIALITY Each party shall take reasonable measures to preserve the confidentiality of any proprietary or confidential information provided to it in connection with this engagement, provided that no claim may be made for any failure to protect information that occurs more than two (2) years after the termination or expiration of this Agreement. At the conclusion of the engagement, upon written request, each party shall return to the other all materials, data and documents that have been provided to the other party, except that DCI may retain one (1) copy of City's materials for its archival purposes, subject to DCI's confidentiality obligations hereunder. City shall retain ownership of all data and materials provided by it to DCI. 1.13 LIMITATION OF LIABILITY Should any of DCI's services not conform to the requirements of this Agreement and exhibits, then and in that event City shall give written notification to DCI; thereafter, DCI shall either (a) promptly re- perform such services to City's satisfaction at no additional charge, or (b) promptly refund the portion of the fees paid with respect to such services. In the event that re- performance of services or refund of applicable fees would not provide an adequate remedy to City for damages arising from the performance, nonperformance or breach of this Agreement, then and in that event DCI's maximum total liability, including that of any employee, affiliate, agent or contractor, relating to its services, regardless of the cause of action, shall be limited to direct damages in an amount not to exceed the total fees payable under this Agreement. The foregoing limitation of liability shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of DCI, its employees, affiliates, agents or contractors, or from bodily injury, death of any person, or damage to any real or tangible personal property. Neither party shall be liable for any indirect, special or consequential damages. 6 1.14 INDEMNIFICATION DCI agrees to hold harmless, defend, and indemnify City for and from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the negligence of DCI or its employees or agents in the course of performing services. The limitation of liability set forth in Section 1.13 herein applies to DCI's indemnity obligations pursuant to this Section 1.14, but the limitation shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of DCI, its employees, affiliates, agents or contractors or from bodily injury, death of any person, of damage to any real or tangible personal property. Except to the extent that DCI is obligated to indemnify City, City shall indemnify and hold DCI, its employees, affiliates or agents harmless from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the services performed by DCI or City's use thereof. 1.15 ASSIGNMENT AND DELEGATION No party may assign any rights or delegate any duties under this Agreement without the other party's prior written approval. 1.16 LOCAL, STATE AND FEDERAL TAXES DCI shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: 1. Withhold FICA from DCI's payments or make FICA payments on DCI's behalf; or 2. Make state and/or federal unemployment compensation contributions on DCI's behalf; or 3. Withhold state or federal income tax from DCI's payments. 1.17 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: 1. When delivered personally to the recipient's address as stated in this Agreement; or 2. Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. 7 Notice to Consultant: Development Counsellors Intemational 461 Park Avenue South New York, NY 10016 Notice to City: City of Round Rock AND TO: Attention: City Manager 221 East Main Street Round Rock, TX 78664 Nothing contained herein shall be construed to restrict the transmission of routine communications between representatives of City and DC1. 1.18 APPLICABLE LAW The laws of the State of Texas shall govern this Agreement. Venue shall lie in Williamson County, Texas. 1.19 EXCLUSIVE AGREEMENT This document, and all appended documents, constitutes the entire Agreement between DCI and City. 1.20 DISPUTE RESOLUTION If a dispute or claim arises under this Agreement, the parties agree to first try to resolve the dispute or claim by appropriate internal means, including referral to each party's senior management. If the parties cannot reach a mutually satisfactory resolution, then and in that event any such dispute or claim will be sought to be resolved with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City and DCI shall each select a mediator and the two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and DCI hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1 -14) or any applicable state arbitration statute. 8 City of Round Rock Attention: City Attorney 309 East Main Street Round Rock, TX 78664 1.21 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion or provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion or provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this Section 1.21 shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. IN WITNESS WHEREOF, City and DCI have executed this Agreement on the dates indicated. CITY OF ROUND ROCK, TEXAS ATTEST: By: Nyle Maxwell, Mayor Christine R. Martinez, City Secretary Date Signed: Date Signed: DEVELOPMENT COUNSELLORS INTERNATIONAL By: Andrew T. Levine, President Date Signed: ATTACHMENTS Exhibit "A ": The City of Round Rock, Texas National Economic Development Public Relations Campaign 9 Development Counsellors International 461 Park Avenue South. New York, NY 10016 Phone (212) 725 -0707 Fax (212) 725 -2254 E -mail econdev @dc- intl.com / Websde: www.aboutdci.com January 9, 2003 Round Rock City Hall Attn: Purchasing Agent 221 East Main Street Round Rock, Texas 78664 Dear Ms. Morrow: We are pleased to present this revised proposal/summary of our qualifications (based upon a shortened timeframe) to provide national media relations' services to the City of Round Rock. Throughout this process, it has been a pleasure getting to know Nancy Yawn and learning the amazing stories this city has to tell. Undoubtedly, you will receive numerous submittals from public relations agencies that do excellent work. Sifting through them to determine which agency has the expertise, accomplishments and staff that best meets your needs will be a challenge! Here, then, are some key things to consider about DCI. As the only public relations firm in the world to specialize solely in economic development and tourism marketing, we have represented countless cities, counties and regions in Texas and across the US. In addition, we have worked for 35 of the 50 states, including Texas. On behalf of these places, DCI has garnered articles in such media as The Wall Street Journal, The New York Times and CNN. We have taken business and government leaders to meet with top journalists and site selection consultants in Dallas, Chicago, New York and San Francisco. We have brought reporters from leading industry trade magazines to cities to see firsthand their economic development success stories. We maintain an active database of 2,000+ reporters and consultants that help us achieve these results. We will bring this considerable expertise to bear in helping Round Rock accomplish its economic development goals. But more importantly, we are excited at the prospect of working in partnership with Round Rock to ensure this success. So without further preamble. -.on to the presentation! EXHIBIT "An I. A WORD ABOUT DCI: FIVE FACTORS THAT MAKE US DIFFERENT The most important question to answer first is, why DCI? Summarized below are five factors that distinguish us from the other excellent agencies likely to respond to this request for qualifications and why our firm is uniquely qualified to manage this proposed program for the City of Round Rock: • DCI is the only firm in the world specializing exclusively in economic development marketing. Since 1960, we have served over 300 states, cities, regions, countries and others. This track record includes economic development and tourism promotion work with 35 of the 50 states and countless cities across the United States, including Abilene, TX; Amarillo, TX; Charleston, SC; Hampton Roads, VA; Irvine, CA; Lehigh Valley, PA; Oklahoma City, OK; and Tacoma, WA. • This niche position — representing places rather than companies — has allowed us to build a unique equity with the national business media. For our clients, this translates into an exceptional ability to package and present newsworthy story ideas that ultimately result in highly favorable editorial placements. A sampling of these results are provided in Section V. We are proud of our ability to produce superb editorial placements within major business media. We don't believe you'll find another firm with this kind of record of success. • At the heart of this success is a carefully developed database of 2,000+ business editors, reporters and producers that we have worked with in the past. In addition, we maintain a database of 150+ location advisors who specialize in assisting key corporations in site selection. • DCI is often selected as a "single source" in economic development editorial placement because of our unique degree of specialization. We are often approached by the media in terms of developing stories they are currently researching and writing. • Finally, DCI knows the State of Texas via our ongoing work with TxED's Tourism Division as well implementing marketing programs for a range of Texas communities including Abilene, Austin, Beaumont, Dennison, Fort Worth and Wichita Falls. -2- II. THE PROGRAM: TELLING ROUND ROCK'S OPPORTUNITY STORY A. Getting Started: Defining the "Round Rock Storv" The first step of any good marketing program is to understand the product and what it has to offer to the prospective audience. Essentially, we will begin by uncovering and understanding the key local stories and then exploring how they might fit into national angles. Specific angles to strongly pursue include: • The Dilemma of a One- Company Town...In securing Dell in 1994, Round Rock almost became a victim of its own success. As the company grew, it provided significant jobs and revenue for the city. But the community has proven equally successful in landing a range of other successful companies. DCI will position this as a case study demonstrating how other one - company towns can diversify their business base; • On the Leading Edge...Round Rock is home to companies that are pioneering the use of technologies like microimaging, Nanotechnology and bio products such as harmless bacteria that eat oil spills (among other tasks.) DCI will position the community as a foundation of innovation; and • Unique Corporate Case Hiistories...One of the best ways to tell the economic development story is through the companies there. Round Rock is home to companies like Cyprus Semiconductor, DuPont Photomasks and Photronics that were outlined during our call as possible success stories. DCI would seek to explore these and other possibilities fully. We'd want to schedule a series of meetings/interviews with executives from companies in the area, tour their facilities, and meet with both public and private sector spokespersons. We recommend that in the first two weeks of the program, a DCI team spend two to three days in the area researching key story lines. In addition to defining specific story angles, the DCI team will prepare for your approval of a "Most Wanted List" of media outlets — a blend of general business, trade and broadcast outlets that are read/viewed by prospective investors. This forms the list of "top targets" for our efforts. OBJECTIVE: Within the first two weeks of the program, conduct a 3 -day visit by the DCI team to define specific story themelines related to the Round Rock's overall success story; create "most wanted list" of media outlets. - 3 - B. Taking "Round Rock on the Road ": Media Tour to Dallas This is where the region takes its story directly to the news media. This is similar to our work with the city of Austin and Michael Dell, whom we brought to New York for such an event. This is vitally important because reporters at top -tier publications such as The Wall Street Journal, The New York Times and Business Week often can't travel as readily as the trade press to make the initial discovery about a story. We will work closely with you to choose appropriate spokespeople and then take your story directly to the doorstep of media based in Dallas, where many of these publications have bureaus. We'd work closely with your staff to best identify which story angles would be most appealing and applicable to these journalists. OBJECTIVE: Over the course of the program, coordinate one media tour to a major media center with a total of four to six interviews with joumalists at top -tier media outlets during the trip. C. Group Press Trip to Round Rock (or Bringing Mohammed to the Mountain) Simply said, there is no substitute for actually seeing the product. A carefully arranged business press trip can be extremely important not only in garnering immediate publicity but in creating a friend in the media who knows you and becomes easy for you to go back to again and again. We imagine this technique makes particular sense for Round Rock where there are bound to be a whole series of "business surprises" for the voyaging journalist. Hence, a core public relations activity would be a strong, carefully targeted program of journalist visits. According to those industries identified as your targets, we would develop a media list of publications and writers who focus specifically on these target industries. Based on our experience, each of your target industries will have approximately three to five "publication bibles" which are well read among those industry executives. We'd approach these industry journalists and invite them to visit key companies in the region for a series of personal interviews and fact - finding excursions relatgd to their story development needs. As you can imagine, it's essential that we first research story ideas and uncover appropriate angles that would fit into the editorial focus of each of these target publications. -4- In this vein, it may be appropriate to coordinate these efforts with the Austin chamber in order to offer a more comprehensive package to reporters. We would work with your staff to provide the appropriate background material for these journalists, assist in story development, advise on company spokespeople and implement a series of successful meetings. OBJECTIVE: Organize and host one two -day press trip of three to five press people from general business and targeted trade outlets to meet with senior level business executives at companies located in Round Rock and, potentially, Austin. D. Individual Media Visitation A number of top - tier business media (i.e. The Wall Street Journal, The Economist, CNN, The New York Times) usually prefer an individual tour specifically tailored to their unique story angle. They will cover their own travel and accommodation costs but are typically open to our assistance in arranging appointmentslmterviews for them. We would target visitation by one or two top -tier media outlets in the program's six months. OBJECTIVE: Arrange for one top -tier media outlet to visit Round Rock for story research. E. Ongoing Media Placement Because of our unique position as the only marketing firm specializing in economic development, we have the benefit of having journalists from around the country come to us for interview sources. With a current list of 20+ economic development clients, we're involved in many of the national stories being researched by business reporters around the country. It's in this light that we'd like to include Round Rock spokespeople as one of the contacts we can provide to the national media. OBJECTIVE: Respond to and approach on an ongoing basis top -tier media outlets (both print and broadcast) with a series of story angles highlighting the dynamic business environment in Round Rock resulting in national and regional media placements. -5- F. Telling Your Story at Home: Local and regional coverage We are aware of the enormous importance of local and regional coverage and will be available to advise you on how to achieve positive coverage in the region's local media outlets, including ideas on "playing back" success for the home audience. OBJECTIVE: Assist in replaying national publicity results within Round Rock. G. Continuous Advice & Counsel As already indicated, much ofDCI's work is in the editorial placement and public relations arena, but much of it is not. We simply do everything we can to help our clients achieve their objectives as quickly and economically as possible, and we have a feeling in the case of the Round Rock we could be sizably helpful. OBJECTIVE: In any manner possible, assist the city in effectively marketing their business advantages to a national business audience. This activity is as diverse as providing feedback on advertising programs, prospect research, advice on website development, or trade shows assistance. -6- - 7 - III. RESULTS MEASUREMENT: IN OTHER WORDS, HOW ARE WE DOING? We have built -in individual objectives into each of our marketing elements, but we also would like to suggest another monitoring device that will help us collectively assess "how were doing." First, allow us to define two important aspects of the measuring process: • "Advertising Equivalency" represents the cost of purchasing a similar amount of advertising space occupied by a given editorial article. • "Advertising Impact" is based on a formula developed by the advertising legend David Ogilvy, who stated that for reasons of credibility, positive editorial articles have an overall impact of five times greater than advertising. Our aim for this program would be to obtain a 2.5:1 return on investment. In other words, based on this program of $45,815 in•professional fees, we would seek to generate approximately $115,000 in advertising equivalency and $575,000 in advertising impact. IV. ACCOUNT STAFF The DCI account team will be headed by President Andy Levine, who will serve as the primary strategist for the account. Day -to -day management, strategy and implementation will be provided by a three- person team that includes Lynn Martin - Haskin, Vice President; Marissa Murray, Senior Account Executive; and Todd Lang, Account Executive. Brief biographies of each team member (with caricatures) are provided on the following pages: -8- Andrew T. Levine President Background: • As senior officer of two direct response firms, Andy designed direct mail/telemarketing programs that raised $42 million for 17 non -profit organizations. Joined DCI in 1991; named President in 1994. Notable • Developed a highly successful editorial placement program for New Results: Orleans and The River Region, with major results in The Wall Street Journal, Washington Post, Success, Nation's Business and CNN. In the program's first year, 76 placements were achieved with an advertising impact of $5.9 million. • Arranged for the 1996 Sports Illustrated Swimsuit Issue to be shot on location in South Africa. Accompanying the photo essay were over 16 pages of editorial content profiling South Africa's diverse tourism offerings. • Placed a five -page article in Forbes for QualPro, an innovative quality implementation firm. The article resulted in 66 "serious" inquiries, 6 new clients and over $500,000 in new business. • Created a telemarketing campaign for Fairleigh Dickinson University, which reached 12,455 prospective students, resulted in 500+ applications for admission and improved the conversion rate. Quote: "Our objective is simple: help our clients become heroes in their own communities." -9- Lynn Martin Haskin, Ph.D. Vice President Background: • Lynn has 12 years experience in economic development, marketing, and fundraising for Greater Philadelphia First the region's private sector leadership organization. She also was a university administrator and a tenured faculty member, a reporter for daily and weekly newspapers, and a musician who paid her way through college playing vibraphone in a trio. Notable • Attracted and retained dozens of companies and thousands of jobs Results: for the Greater Philadelphia, tri -state region; • Managed a Partnership of 100+ public and private sector leaders and achieved measurable results in economic development, regional marketing, fundraising, and public policy; • Served President Timmy Carter who appointed her to a nominating panel for the Third Circuit Court of Appeals; • Provides volunteer leadership to economic development, civic, and cultural organizations in her community. Quote: "Opportunities are e- v- e- r- y- w- h- e-r -e. Creativity sparks them. A "can-do" attitude ignites them. Success allows satisfied clients to bask in the glow." -10- Marissa Murray Senior Account Executive • Participated in several successful sales presentations with DCI's Chairman/Founder Ted Levine. MAR'ss& Background: • Marissa has a Bachelor of Arts in Communication from Villanova University where she managed the radio station, produced and hosted several shows, and was a reporter and editor for the newspaper. She chaired the Special Olympics and the Feminist Club while on the dean's list. Today, this energy and expertise are focused on her clients, including Colombia, Mexico, the Lehigh Valley, Richmond and the City of Yonkers. Notable • Successfully placed stories in top -tier business media publications , Results: such as The New York Times, The Financial Times, The Wall Street Journal, and The Washington Post. • Conducted an international press tour to the Lehigh Valley, which resulted in coverage in Handelsblatt, TV- Sweden, Deutsche Welle TV, and Asahi Shimbun. • Organized special events for DCI staffers and is known for taking three modes of transportation to work: train, subway and ferry. Quote: "With imagination and hard work, we make clients successful. And, we all can have fun and make friendships while we do." Todd Lang Account Executive - 12 - Background: • Before joining DCI, Todd spent three years as a recruiter in the technology field. His time there coincided with the peak, fall and eventual rebirth of the Internet industry, and the experience provided him with valuable lessons. Serving in a sales and account management role, he prospected for new clients, negotiated and closed deals met regularly with top -level executives and provided career guidance to applicants. • Prior to this, Todd spent one year as a teacher in a New York State Public School. He holds a Bachelor's of the Arts Degree from Marist College, in Poughkeepsie, New York, where he studied Communications, with a specialty in Journalism. Notable • Todd is a key member on the account team representing Lehigh Results: Valley, Michigan, Pittsburgh, Richmond, Spirit of Milwaukee and Trenton. • For Billings, Montana, he organized 13 meetings with companies in the Rocky Mountains area and the Pacific Northwest, to introduce the benefits that companies receive by locating to Billings, Montana. • For Texas Tourism, he organized 26 meetings between the client and tourism companies, and coordinated two teams of representatives to carry out these meetings over a 3 -day prospecting mission. Quote: "When something needs to be done, you roll up your sleeves and do it" SAMPLES and REFERENCES So far, we've described what we will do for Round Rock as well as the results we expect. To provide a basis for how we developed the program and its objectives, this section demonstrates our successes with comparable programs for similar cities. Following are three case studies from our Tacoma, Washington; Research Triangle Regional Partnership of North Carolina; and Huntsville, Alabama clients. In addition, several work samples from press clips to media tour itineraries, as well as reference letters are included for each. -13- THE CHALLENGE: Despite Tacoma's reputation as "the industrial stepsister of Seattle" and the unfortunate rhyming phrase known as "the Tacoma aroma," position Tacoma as a viable place for technology business and growth. lHE DCI SOLUTION: • Research and develop a themeline that boldly and accurately positions Tacoma as a "player" in the technology attraction game. • Work closely with city officials to promote this themeline and its message to one of Tacoma's local business community. • Design and execute a publicity campaign targeted specifically at the business and technology leaders in Seattle. • Coordinate interviews with national news bureaus most likely to cover Tacoma. lilt RESULTS: City of Tacoma Economic Development Department • DCI developed, and Tacoma officials adopted the themeline, `America's #1 Wired City." Themeline is based on the fact that Tacoma has the largest city-owned telecom network in the nation. Since its establishment, 100 new tech companies have expanded to Tacoma. • Local news outlets reported positively on the City's efforts, notably The News Tribune in an article titled, "It's Official: Tacoma's Rebound is for Real." • For the first time in decades, The Seattle Times carried an overwhelmingly positive article on Tacoma, prominently featured on the front page of its business section. Article was titled appropriately, "Tacoma Emerges as a Tech Center." • As a result of the Seattle media tour, Sam Verhovek of The New York Times visited Tacoma and wrote an article titled, "Its Air Cleaned, Its Tech High, a City Rebounds." • Business Week published a story titled, "More Wired Than Seattle?" which quotes city officials and notes the themeline, "America's #1 Wired City." -14- City of Tacoma Economic Development Department Itinerary for New York Media Tour ednesday; Participants: • Mike Phillips, President & Chief Executive Officer, Frank Russell Company • Juli Wilkerson, Director of Economic Development, City of Tacoma • Kathy Young, Executive Assistant, Frank Russell Company • April Mason, Account Supervisor, Development Counsellors International, Cell: 646 -554 -4295 • fun Lee, Account Executive, Development Counsellors International, Cell: 917 - 312 -3087 Wednesday, May 9 8:30a.m. Briefing breakfast J.W. Marriott - Halcyon Restaurant 151 West 54th Street 212 -468 -8888 Reservations for 4 under "Mason" (Participants: Phillips, Wilkerson, Young & Mason) 9:50a_m. Walk 3 blocks to Financial Times 10:00a.m. Financial Times Elizabeth Wine, Financial Reporter 1330 Avenue of the Americas (Between 53' & 54 Streets) New York, NY 212- 641 -6578 elizabeth.wine @ft.com 10:50a.m. Walk 2 blocks to Fortune -15- 11:00a.m. 11:45a.m. Car service takes group to lunch, Confirmation #112598 12:15p.m. 1:30p.m. Car service departs for the Economist 1:45p.m. 2:30p.m. Car takes Phillips to JFK for 5:00 p.m. flight, 3:15p.m. New York Times/Engineering News - Record Aileen Cho, Associate Editor Meet at DCI offices 461 Park Avenue South New York, NY 10016 212 - 904 -3389 acho@mcgraw-hill.com (Note: Juli Wilkerson only — Aileen Cho is freelancing for the New York Times and planning an economic development feature) 4:30p.m. Wilkerson takes taxi back to hotel * All appointments subject to change. Fortune Magazine Matt Boyle, Business Reporter Vera Titunik, Senior Editor 1271 Avenue of the Americas, Room 1558B (Bet. 50 & 51 Sts.) New York, NY 10020 212 -522 -0380 (Ask security guard to call extension) matthew boyle@fortunemail.com Lunch - Forbes Global Business Heidi Brown & John Christy, Business Editors The Gotham Restaurant 12 East 12th Street (5 Ave.) New York (212) 620 -4020 620 -0181 (Call to confirm) Reservation for 5 under "Mason" Hbrown@forbes.cont The Economist Tom Easton Business Editor 475 Park Avenue South, 5 Floor New York, NY 10016 646- 213 -1006 # ## -16- Research Triangle Regional Partnership of North Carolina THE CHALLENGE: Assist this diverse 13- county region in promoting their community as a competitive high - tech manufacturing location to a global business audience. 1111 DCI SOLUTION: • Place a strong and targeted emphasis on generating positive business stories in foreign newspapers and broadcast outlets. • Develop and implement a strategy to directly target prospects in the German market. • Emphasize the strength of this technology region in the U.S. market '1111 RESULTS: • Arranged for more than 20 foreign journalists to visit the Region resulting in articles appearing in Die Welt, Yomiuri Shimbun, The Financial Post, NTV, Les Echos and Die Zeit to name a few. • Through the implementation of a direct mail and telemarketing campaign, arranged 32 face -to -face meetings with German prospects in conjunction with the Hannover Fair. • Arranged for 3 international speaking engagements to discuss Location opportunities in the Research Triangle Region. • Coordinated a luncheon for 25 Boston -based venture capitalists to learn more about investment opportunities available in the Region. ITINERARY Visit to Research Triangle, North Carolina by CLAUS TIGGES FrankfurterAllgemeine Zeitung Friday, March 15: 7:30 — 9:00a.m. Mr. Charles Hayes, President and CEO (Confirmed) Mr. Ted Abemathy, Executive Vice President Research Triangle Regional Partnership (RTRP) 1400 Terminal Blvd., Suite 901 Raleigh, NC 27623 919 - 840 -7372 tabernathv@researchtrianale.org www.researchtriangle.org (Mr. Abernathy will present an overview of the Research Triangle region and its growth as a high -tech hotspot.) 9:30 — 10:00a.m. Mr. Steven Burke, Vice President (Confirmed) North Carolina Biotechnology Center 15 T.W. Alexander Drive Research Triangle Park, NC 919 -541 -9366 www.ncbiotech.or 10:30 — 11:00a.m. - 18 - Mr. Ray Denny (Confirmed) North Carolina Department of Commerce (Fain is leading the delegation to Germany in early April) (North Carolina has special agreements concerning biotechnology with Germany and Burke is the expert on that. He will also be giving seminars in Germany on the state's biotechnology industry.) Mr. Max Wallace, President and CEO (Confirmed) Cogent Neuroscience 4425 Ben Franklin Blvd. Durham, NC 27704 919- 688 -7100 www.cogentneuro.com 11:30- 11:50a.m. - 19 - Ms. Kathy Goodin (Confirmed) Director of Human Resources Schwarz BioSciences 4101 Research Commons (off T.W. Alexander Drive) Durham, NC 919- 767 -2534 919- 767 -2555 kathy.goodin@schwarzbiosciences.com Web site: www.schwarzpharma com (The company, the U.S. arm of Schwarz Pharma AG ofMonheim, Germany, was established in RTP in June 2000 with less than 10 people. It has now grown to 55 employees.) 1:00 — 1:45p.m. Ms. Darleen Johns (Confirmed) President and CEO Alphanumeric Systems Inc. 301 Wake Forest Road Raleigh, NC 27609 919 - 781 -7575 (General) 919- 376 -4450 (Direct) www.alphanumeric.com (Ms. Johns is past chairman of the North Carolina Electronics and Information Technology Association and a current board member. She will be part of the group that will be visiting Germany in early April.) 2:00 — 2:30p.m. Mr. Robert Stoner (Confirmed) Vice President of Human Resources EMD Pharmaceuticals (Phone interview, to be conducted from Alpha- Numeric Systems) 3211 Shannon Road, Suite 500 Durham, NC 27707 919 -401 -7102 www.emdpharmaceuticals.com (EMD Pharmaceuticals is the U.S. affiliate of Germany -based Merck KgaA. The company is rapidly expanding in the Research Triangle.) 4:00 - 5:OOp.m. Ms. Monica Doss (Confirmed) President Council for Entrepreneurial Development (CED) 104 T.W. Alexander Drive, Bldg. 1 Research Triangle Park NC 27709 919 -549 -7500 www.cednc.org (CED is by far the largest entrepreneurial assistance organization in the country. M. Doss will provide a briefing on the tremendous growth of venture capital in the Research Triangle, the business environment for entrepreneurs, etc.) -20- THE CHALLENGE: Obtain national and international media placements, which highlight Huntsville's success in diversifying its economy, with a focus on the emergence of its many homegrown high -tech firms, on the merits of Cummings Research Park, the Airport Authority and the Chamber's role in assisting business. THE DCI SOLUTION: 'flit: RESULTS: Huntsville/Madison County Chamber of Commerce, Alabama • Aim for maximum results with a "rifle shot" approach to key national media, and then support by targeting select trade publications. • Put the Chamber, and its spokespersons, out front as much as possible. • Obtain case study -style coverage of Huntsville's successful companies. • The Wall Street Journal, page one story: "Defense Strategies: How Huntsville, Ala., Manages to Maintain Its High -Tech Orbit" • Entire broadcast of CNN's "Managing with Lou Dobbs" dedicated to Huntsville business subjects, plus segments on CNNfn's "Who's in Charge." • The Wall Street Journal: "Huntsville Traces a Commercial Orbit and Thrives." • The Wall Street Journal: `New Philosophy Revives Machine -Tool Operation." -21- Development Counsellors International 461 Park Avenue South, New York, NY 10016 Phone: (212) 725 -0707 Fax: (212) 725- 2254 E-mail: econdev@dc-intl.com/Web site: www.aboutdci.com Dt: November 12, 2001 To: Alex Hardy Barbara Nash Fr: Steve Bongiomo Re: List of Press Tour Participants -22- Here is the final list of confirmed participants in the media tour of Huntsville this week: All but the final news organization -- Spiegel TV — will participate in the entire itinerary for Thursday and Friday. Kerstin Mommsen, Rainer Marz, and Enzio von Eisenhart- Rothe will attend selected meetings on those two days, and will make other site visits separately on Tuesday and Wednesday. • Ms. Kate King, Producer, CNN (based in Atlanta) • Mr. Charles Seabrook, reporter, Atlanta Journal Constitution • Mr. Richard Lawson, reporter, Nashville Tennessean • Mr. Eric Parsons, photographer, Nashville Tennessean • Mr. Anthony Brooks, National Public Radio (based in Boston) • Mr. Aaron Schachter, reporter, Marketplace Radio (based in Boulder, Colorado) • Mr. Damian Whitworth, reporter, the Times of London (based in Washington) • Ms. Virginie Montet, reporter, Agence France (based in Washington) • Mr. Hideichi Yamaga, correspondent, Kyodo News /Japan (based in New York) • Mr. Gwang Chul Go, Korean Economic Daily (based in Washington) • Ms. Kerstin Mommsen, correspondent, Spiegel TV (based in Germany) • Mr. Rainer Marz, camera crew, Spiegel TV • Mr. Enzio von Eisenhart- Rothe, camera crew, Spiegel TY 4 4 • VI. TIMELINE AND BUDGET We have designed this initial effort as a seven -month program, which would begin on March 1, 2003 and continue through September 30, 2003, the end of your fiscal year. Approximately 4 weeks before the conclusion of this program, DCI will provide a detailed report outlining recommendations for the program's future. The attached budget is divided into two elements: professional fees and projected out - of- pocket expenses. The latter item involves considerable variation but represents our current estimates based on recent experience. Your organization would pay only for actual expenses; DCI does not charge mark -up on any expense items. DCI's professional fee of $6,545 /month will be billed at the beginning of each month. Expenses will be billed as they occur with documentation; client payment is requested within 15 days of billing. Ordinary DCI expenses (telephone, photocopying, overnight packages and other similar costs) and any out -of- pocket travel expenses will be billed separately with appropriate documentation. This agreement may be canceled by either party, DCI or the City of Round Rock, for any reason upon 30 days' written notice to the other. The program shall continue on a month- to -month basis after September 30, 2003 under the same terms and conditions herein unless both parties mutually agree upon new terms of operation. - 23 - 'c. • Round Rock Economic Development Corporation/DCI Budget for Editorial Placement Program (March 1- September 30, 2003) I. Professional Fees DCI Time Costs for Program Design $45,815 and Execution ($6,545 /month x 7 months)* II. Program Expenses -- Ongoing Communication Expenses: telephone, faxes, copying delivery services, etc. ($250 /month x 7 months) -- Target Industry Press Trip to Round Rock ($1,500/journalist x 4 journalists) ** -- DCI Staff Travel to Round Rock/Dallas ($1,000 /visit x 5 visits) ** -- Contingency Fund EXPENSE SUBTOTAL: $14.750 TOTAL PROGRAM: $60,565 * Per your request, we have broken down the professional fees to clarify how we arrived at our budget figure (outlined on the following page) ** There are potential cost savings here based on Local hotel and/or airline participation. -24- $ 1,750 $ 6,000 $ 5,000 $ 2,000 DATE: February 21, 2003 SUBJECT: City Council Meeting — February 27, 2003 ITEM: 9.A.1. Consider a resolution authorizing the Mayor to execute an Agreement for Consulting Services with Development Counsellors International for national media relations services. Resource: Nancy Yawn, Director Public Affairs, Business Development Will Hampton, Communications Director History: Implementation of Phase I's recommendations made by Angelou Economics in the Round Rock Target Industry & Marketing Strategic Plan were as follows: a new brand/tagline, developing an economic development website and identify and involving local media. Phase I of the marketing campaign has been successful. Working with DCI will take the City to Phase II of the Public Relations recommendations of the Economic Development Plan. There unique expertise will greatly assist Round Rock in accomplishing its economic development goals. Funding: March 1 — September 30, 2003 Cost: $60,565 Source of funds: Economic Development Budget Outside Resources: N/A Since 1960 DCI has served over 300 states, cities, regions and countries. DCI specializes solely in economic development and tourism marketing. DCI's successful track record includes economic development and tourism promotion ranging from Abilene, TX, to Tacoma, WA. They are extremely well networked in the National Media realm. In addition DCI maintains a database of 150 plus location advisors who specialize in assisting key corporations in site selection. DCI knows the State of Texas via their on going work with TxED's Tourism Division as well as implementing marketing programs for a range of Texas communities. ImpactBenefit: DCI will orchestrate a national media focus to give Round Rock national recognition. This will take us to the next level in the implementation of our Economic Development Plan. Public Comment: N/A Sponsor: N/A CITY OF ROUND ROCK AGREEMENT FOR CONSULTING SERVICES WITH DEVELOPMENT COUNSELLORS INTERNA �-r, THIS AGREEMENT is made and entered into on this the d 1 d of the month of t"t%f�5,f�Laik t/ , 2003, by and between the City of Round Rock, a Texas home -rule municipal corporation, wfifiose offices are located at 221 East Main Street, Round Rock, Texas 78664 -5299 (hereinafter referred to as "City "), and Development Counsellors International, whose offices are located at 461 Park Avenue South, New York, New York 10016 (hereinafter referred to as "DCI "). RECITALS: WHEREAS, City desires to contract for DCI's assistance in developing a national media public relations campaign and providing national media relations' services in the area of economic development and tourism marketing, and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW, THEREFORE, WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 EFFECTIVE DATE, DURATION, AND TERM This Agreement shall be effective on the date it has been signed by every party hereto, and shall remain in full force and effect unless and until it expires by operation of the term indicated herein, or is terminated or extended as provided herein. The term of this Agreement shall be for seven (7) months beginning March 1, 2003 and ending September 30, 2003. After that initial term, this Agreement may renew and extend for successive terms for a period not to exceed two (2) years after the initial expiration of term, only upon the express written agreement of both parties and only provided DCI has performed all covenants and undertakings specified in this Agreement and any appended materials. City reserves the right to review the relationship at any time, and may elect to terminate this Agreement with or without cause or may elect to continue. 1.02 GENERAL CONDITIONS The General Conditions contained herein shall apply to DCI's document entitled "The City of Round Rock, Texas National Economic Development Public Relations Campaign, "attached .x...w tCORR',,P ,Waemf.WD116ss W PGm,6 hereto as Exhibit "A" and made a part hereof of all appropriate purposes. This Agreement (and all attached exhibits) is entered into by and between the City of Round Rock or its subsidiaries or affiliates (collectively "City") and DCI or any entity directly or indirectly owned or controlled by same (collectively "DCI "). 1.03 PROPOSAL FOR MEDIA PUBLIC RELATIONS SERVICES For purposes of this Agreement, DCI has issued its document attached hereto as Exhibit "A" for the assignment(s) delineated therein. Such document, as issued by DCI, is appended to this Agreement and labeled as Exhibit "A." Such document is deemed to incorporate the General Conditions contained herein. Except with respect to the description of specific services and fees for the assignment(s) delineated therein, the General Conditions of this Agreement and this Agreement itself shall prevail over any conflicting terms therein. Taken together with the appended document, the General Conditions contained in this Agreement shall evidence the entire understanding and agreement between the parties and supersede any prior proposals, correspondence or discussions. 1.04 SCOPE OF SERVICES DCI shall satisfactorily provide all services described under this "Scope of Services" category. DCI's undertakings shall be limited to performing services for City and/or advising City conceming those matters on which DCI has been specifically engaged. DCI shall perform its services in accordance with these General Conditions and this Agreement, in accordance with the appended exhibit, in accordance with due care, and in accordance with prevailing consulting industry standards for comparable services. OBJECTIVE A: SCOPE OF SERVICES DCI shall, within the first fourteen (14) days of the term of this Agreement, conduct a three - day on -site visit by DCI representatives to define specific story theme lines related to Round Rock's overall success story. Such visit shall include the requirement that DCI schedule and attend a series of meetings /interviews with executives from companies in the area, that DCI schedule and attend tours of company facilities, and that DCI schedule and attend meetings with public sector and private sector spokespersons. In that regard, it is understood and agreed by and between the parties that City shall assist in (1) scheduling such meetings and appointments via letters of introduction or (2) introducing DCI representatives and/or actually arranging such meetings and appointments. Additionally, DCI shall create and provide a `most wanted" list of media outlets. Such list is defined as a blend of general business, trade and broadcast outlets which are read and/or viewed by prospective investors, and such list shall delineate the "top targets" for DCI's efforts. 2 OBJECTIVE B: DCI shall consult with City representatives to identify and select appropriate spokespeople for a media/site selection consultant tour. DCI shall then coordinate this tour, arranging a total of at least four (4) interviews with journalists at top -tier media outlets and at least two (2) appointments with targeted site selection consultants. OBJECTIVE C: DCI shall organize and host a two -day business press trip for at least three (3) press people from general business and targeted trade outlets to meet in Round Rock with senior level business executives at companies located in the area. Prior to such business press trip, DCI shall research story ideas and angles to fit the editorial focus of each target publication, shall coordinate efforts with area chambers of commerce, shall work with City staff to provide appropriate background material for industry journalists, shall assist in story development, shall advise on company spokespeople, and shall implement a series of meetings to which are invited industry journalists who are taken to visit key companies in the area for a series of personal interviews and fact - finding excursions related to their story development needs. Prior to such business press trip, DCI shall develop a media list of publications and writers who focus specifically on the industries targeted by DCI in collaboration with City representatives. OBJECTIVE D: DCI shall arrange for at least one (1) top -tier media outlet to visit Round Rock for story research, and shall facilitate and offer assistance in arranging appointments and interviews for their representatives. OBJECTIVE E: DCI shall approach and/or respond to top -tier media outlets, both print and broadcast, with a series of story angles highlighting the dynamic business environment in the area resulting in national and regional media placements, and such effort shall be on an ongoing basis. OBJECTIVE F: DCI shall advise City representatives on how to achieve positive coverage in the region's local media outlets, and shall assist in replaying national publicity results within the area. OBJECTIVE G: DCI shall use best efforts to assist City in effectively marketing its business advantages to 3 a national business audience. This effort shall include but not be limited to providing feedback on advertising programs, prospect research, advice on website development, and trade shows assistance. 1.05 PAYMENT FOR PROFESSIONAL SERVICES In consideration for the professional services to be performed by DCI, City agrees to pay DCI the following sum(s) as stated herein: Professional Fees at $6,545.00/mo for 7 months $45,815.00 Reimbursable Expenses Not to exceed $14,750.00 $60,565.00 1.06 TERMS OF PAYMENT To receive payment for professional services, DCI shall prepare and submit a series of monthly invoices in a form acceptable to City. Each invoice for professional services shall track the "Scope of Services" category herein, and shall state and detail the services performed, along with documentation for each such service performed. City shall endeavor to pay DCI in accordance with the Prompt Payment Policy described in Section 1.07 herein. City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon DCI's net income. 1.07 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to DCI will be made within thirty (30) days of the day on which City receives the performance, or within thirty (30) days of the day on which the performance of services was complete, or within thirty (30) days of the day on which City receives a correct invoice for the performance or services, whichever is later. DCI may charge a late fee (fee shall not be greater than that which is permitted by Texas law) for payments not made in accordance with this Prompt Payment Policy; however, this policy does not apply to payments made by City in the event: 1. There is a bona fide dispute between City and DCI concerning the services performed that causes the payment to be late; or 2. The terms ofa federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds; or 3. There is a bona fide dispute between DCI and a subcontractor or between a subcontractor and its supplier concerning the services performed which causes the payment to be late; or 4. The invoice is not mailed to City in strict accordance with instructions, if any, on any purchase order or this Agreement. 4 1.08 NON - APPROPRIATION This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the services as determined by City's budget for the fiscal year in question. City may effect such termination by giving DCI a written notice of termination at the end of its then- current fiscal year. 1.09 TERMINATION OR SUSPENSION City may terminate or suspend performance of this Agreement for City's convenience upon written notice to DCI. In that event, DCI shall terminate or suspend performance of the services on a schedule acceptable to City. If termination or suspension is for City's convenience, City shall pay DCI for all uncontested services performed to date of notice. This Agreement maybe terminated by either City or DCI upon thirty (30) days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of this Agreement and any appended documents. The non - performing party shall have fifteen (15) calendar days from the date of the termination notice to cure or to submit a plan for cure acceptable to the other party. The non - defaulting party shall be entitled to receive just and equitable compensation for all services completed and all legal fees incurred by this action. 1.10 CITY'S RESPONSIBILITIES City shall have the responsibility ofproviding D CI with such documentation and information as is reasonably required, if any, to enable DCI to provide the services called for. City shall cause its employees and any third parties who are otherwise assisting, advising or representing City to cooperate on a timely basis with DCI in the provision of its services. DCI may rely on written information provided by City and its employees and agents as accurate and complete and may rely on written directions provided by City and its employees and agents regarding provision of services. 1.11 INDEPENDENT CONTRACTOR STATUS DCI is an independent contractor, not City's employee. DCI's employees or subcontractors are not City's employees. This Agreement does not create a partnership relationship. Neither party has authority to enter into contracts as agent for the other party. DCI and City agree to the following rights consistent with an independent contractor relationship: 1. DCI has the right to perform services for others during the term of this Agreement; and 2. DCI has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed; and 5 3. DCI has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement; and 4. DCI or DCI's employees or subcontractors shall perform the services required by this Agreement. City shall not hire, supervise, or pay any assistants to help DCI; and 5. Neither DCI nor DCI's employees or subcontractors shall receive any training from City in the skills necessary to perform the services required by this Agreement; and 6. City shall not require DCI or DCI's employees or subcontractors to devote full time to performing the services required by this Agreement; and 7. Neither DCI nor DCI's employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. 1.12 CONFIDENTIALITY Each party shall take reasonable measures to preserve the confidentiality of any proprietary or confidential information provided to it in connection with this engagement, provided that no claim may be made for any failure to protect information that occurs more than two (2) years after the termination or expiration of this Agreement. At the conclusion of the engagement, upon written request, each party shall return to the other all materials, data and documents that have been provided to the other party, except that DCI may retain one (1) copy of City's materials for its archival purposes, subject to DCI's confidentiality obligations hereunder. City shall retain ownership of all data and materials provided by it to DCI. 1.13 LIMITATION OF LIABILITY Should any of DCI's services not conform to the requirements of this Agreement and exhibits, then and in that event City shall give written notification to DCI; thereafter, DCI shall either (a) promptly re- perform such services to City's satisfaction at no additional charge, or (b) promptly refund the portion of the fees paid with respect to such services. In the event that re- performance of services or refund of applicable fees would not provide an adequate remedy to City for damages arising from the performance, nonperformance or breach of this Agreement, then and in that event DCI's maximum total liability, including that of any employee, affiliate, agent or contractor, relating to its services, regardless ofthe cause of action, shall be limited to direct damages in an amount not to exceed the total fees payable under this Agreement. The foregoing limitation of liability shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of DCI, its employees, affiliates, agents or contractors, or from bodily injury, death of any person, or damage to any real or tangible personal property. Neither party shall be liable for any indirect, special or consequential damages. 6 1.14 INDEMNIFICATION DCI agrees to hold harmless, defend, and indemnify City for and from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the negligence of DCI or its employees or agents in the course of performing services. The limitation of liability set forth in Section 1.13 herein applies to DCI's indemnity obligations pursuant to this Section 1.14, but the limitation shall not apply to the extent that any liability arises from the gross negligence or willful misconduct of DCI, its employees, affiliates, agents or contractors or from bodily injury, death of any person, of damage to any real or tangible personal property. Except to the extent that DCI is obligated to indemnify City, City shall indemnify and hold DCI, its employees, affiliates or agents harmless from any third party claim or liability (including reasonable defense costs and attorneys' fees) to the extent arising from or in connection with the services performed by DCI or City's use thereof. 1.15 ASSIGNMENT AND DELEGATION No party may assign any rights or delegate any duties under this Agreement without the other party's prior written approval. 1.16 LOCAL, STATE AND FEDERAL TAXES DCI shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: 1. Withhold FICA from DCI's payments or make FICA payments on DCI's behalf; or 2. Make state and /or federal unemployment compensation contributions on DCI's behalf; or 3. Withhold state or federal income tax from DCI's payments. 1.17 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: When delivered personally to the recipient's address as stated in this Agreement; or 2. Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. 7 Notice to Consultant: Development Counsellors International 461 Park Avenue South New York, NY 10016 Notice to City: City of Round Rock AND TO: Attention: City Manager 221 East Main Street Round Rock, TX 78664 Nothing contained herein shall be construed to communications between representatives of City and DCI. 1.18 APPLICABLE LAW The laws of the State of Texas shall govern this Agreement. Venue shall lie in Williamson County, Texas. 1.19 EXCLUSIVE AGREEMENT This document, and all appended documents, constitutes the entire Agreement between DCI and City. 1.20 DISPUTE RESOLUTION If a dispute or claim arises under this Agreement, the parties agree to first try to resolve the dispute or claim by appropriate internal means, including referral to each party's senior management. If the parties cannot reach a mutually satisfactory resolution, then and in that event any such dispute or claim will be sought to be resolved with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City and DCI shall each select a mediator and the two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and DCI hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1 -14) or any applicable state arbitration statute. 8 City of Round Rock Attention: City Attorney 309 East Main Street Round Rock, TX 78664 restrict the transmission of routine 1.21 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion or provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion or provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this Section 1.21 shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. CITY OF ROUND ROCK, TEXAS By: IN WITNESS WHEREOF, City and DCI have executed this Agreement on the dates indicated. axe e Mayo r ed: n,/l rew T. Levine Pres}den Date Signed: 1 7 U 3 ATTACHMENTS 9 ATTEST: r ,�1 Christine R. Marti ez C Secretary Date Sign /-03 Date Signed: g -Q3 DEVEL S ' ENT COUNSELLORS INTERNATIONAL Exhibit "A ": The City of Round Rock, Texas National Economic Development Public Relations Campaign Development Counsellors International 461 Park Avenue South, New York, NY 10016 Phone (212) 725-0707 Fax (212) 725 -2254 E -mail econdev@do-lntl.com /Website: www.aboutdcl.com January 9, 2003 Round Rock City Hall Attn: Purchasing Agent 221 East Main Street Round Rock, Texas 78664 Dear Ms. Morrow: I We are pleased to present this revised proposal/summary of our qualifications (based upon a shortened timeframe) to provide national media relations' services to the City of Round Rock. Throughout this process, it has been a pleasure getting to know Nancy Yawn and learning the amazing stories this city has to tell. Undoubtedly, you will receive numerous submittals from public relations agencies that do excellent work. Sifting through them to determine which agency has the expertise, accomplishments and staff that best meets your needs will be a challenge! Here, then, are some key things to consider about DCI. As the only public relations firm in the world to specialize solely in economic development and tourism marketing, we have represented countless cities, counties and regions in Texas and across the US. In addition, we have worked for 35 of the 50 states, including Texas. On behalf of these places, DCI has garnered articles in such media as The Wall Street Journal, The New York Times and CNN. We have taken business and government leaders to meet with top journalists and site selection consultants in Dallas, Chicago, New York and San Francisco. We have brought reporters from leading industry trade magazines to cities to see firsthand their economic development success stories. We maintain an active database of 2,000+ reporters and consultants that help us achieve these results. We will bring this considerable expertise to bear in helping Round Rock accomplish its economic development goals. But more importantly, we are excited at the prospect of working in partnership with Round Rock to ensure this success. So without further preamble... on to the presentation! EXHIBIT I "A" I. A WORD ABOUT DCI: FIVE FACTORS THAT MAKE US DIFFERENT The most important question to answer first is, why DCI? Summarized below are five factors that distinguish us from the other excellent agencies likely to respond to this request for qualifications and why our firm is uniquely qualified to manage this proposed program for the City of Round Rock: • DCI is the only firm in the world specializing exclusively in economic development marketing. Since 1960, we have served over 300 states, cities, regions, countries and others. This track record includes economic development and tourism promotion work with 35 of the 50 states and countless cities across the United States, including Abilene, TX; Amarillo, TX; Charleston, SC; Hampton Roads, VA; Irvine, CA; Lehigh Valley, PA; Oklahoma City, OK; and Tacoma, WA. • This niche position — representing places rather than companies — has allowed us to build a unique equity with the national business media. For our clients, this translates into an exceptional ability to package and present newsworthy story ideas that ultimately result in highly favorable editorial placements. A sampling of these results are provided in Section V. We are proud of our ability to produce superb editorial placements within major business media. We don't believe you'll find another firm with this kind of record of success. • At the heart of this success is a carefully developed database of 2,000+ business editors, reporters and producers that we have worked with in the past. In addition, we maintain a database of 150+ location advisors who specialize in assisting key corporations in site selection. • DCI is often selected as a "single source" in economic development editorial placement because of our unique degree of specialization. We are often approached by the media in terms of developing stories they are currently researching and writing. • Finally, DCI knows the State of Texas via our ongoing work with TxED's Tourism Division as well implementing marketing programs for a range of Texas communities including Abilene, Austin, Beaumont, Dennison, Fort Worth and Wichita Falls. - 2 - H. THE PROGRAM: TELLING ROUND ROCK'S OPPORTUNITY STORY A. Getting Started: Defining the "Round Rock Story" The first step of any good marketing program is to understand the product and what it has to offer to the prospective audience. Essentially, we will begin by uncovering and understanding the key local stories and then exploring how they might fit into national angles. Specific angles to strongly pursue include: • The Dilemma of a One - Company Town...In securing Dell in 1994, Round Rock almost became a victim of its own success. As the company grew, it provided significant jobs and revenue for the city. But the community has proven equally successful in landing a range of other successful companies. DCI will position this as a case study demonstrating how other one - company towns can diversify their business base; • On the Leading Edge...Round Rock is home to companies that are . pioneering the use of technologies like microimaging, Nanotechnology and bio products such as harmless bacteria that eat oil spills (among other tasks.) DCI will position the community as a foundation of innovation; and • Unique Corporate Case Histories...One of the best ways to tell the economic development story is through the companies there. Round Rock is home to companies like Cyprus Semiconductor, DuPont Photomasks and Photronics that were outlined during our call as possible success stories. DCI would seek to explore these and other possibilities fully. We'd want to schedule a series of meetings/mterviews with executives from companies in the area, tour their facilities, and meet with both public and private sector spokespersons. We recommend that in the first two weeks of the program, a DCI team spend two to three days in the area researching key story lines. In addition to defining specific story angles, the DCI team will prepare for your approval of a "Most Wanted List" of media outlets — a blend of general business, trade and broadcast outlets that are read/viewed by prospective investors. This forms the list of "top targets" for our efforts. OBJECTIVE: Within the first two weeks of the program, conduct a 3 -day visit by the DCI team to define specific story themelines related to the Round Rock's overall success story; create "most wanted list" of media outlets. - 3 - B. Taking "Round Rock on the Road ": Media Tour to Dallas This is where the region takes its story directly to the news media. This is similar to our work with the city of Austin and Michael Dell, whom we brought to New York for such an event. This is vitally important because reporters at top -tier publications such as The Wall Street Journal, The New York Times and Business Week often can't travel as readily as the trade press to make the initial discovery about a story. We will work closely with you to choose appropriate spokespeople and then take your story directly to the doorstep of media based in Dallas, where many of these publications have bureaus. We'd work closely with your staff to best identify which story angles would be most appealing and applicable to these journalists. OBJECTIVE: Over the course of the program, coordinate one media tour to a major media center with a total of four to six interviews with journalists at top -tier media outlets during the trip. C. Group Press Trip to Round Rock (or Bringing Mohammed to the Mountain) Simply said, there is no substitute for actually seeing the product. A carefully arranged business press trip can be extremely important not only in garnering immediate publicity but in creating a friend in the media who knows you and becomes easy for you to go back to again and again. We imagine this technique makes particular sense for Round Rock where there are bound to be a whole series of "business surprises" for the voyaging journalist. Hence, a core public relations activity would be a strong, carefully targeted program of journalist visits. According to those industries identified as your targets, we would develop a media list of publications and writers who focus specifically on these target industries. Based on our experience, each of your target industries will have approximately three to five "publication bibles" which are well read among those industry executives. We'd approach these industry journalists and invite them to visit key companies in the region for a series of personal interviews and fact- finding excursions related to their story development needs. As you can imagine, it's essential that we first research story ideas and uncover appropriate angles that would fit into the editorial focus of each of these target publications. -4- In this vein, it may be appropriate to coordinate these efforts with the Austin chamber in order to offer a more comprehensive package to reporters. We would work with your staff to provide the appropriate background material for these journalists, assist in story development, advise on company spokespeople and implement a series of successful meetings. OBJECTIVE: Organize and host one two -day press trip of three to five press people from general business and targeted trade outlets to meet with senior level business executives at companies located in Round Rock and, potentially, Austin. D. Individual Media Visitation A number of top -tier business media (i.e. The Wall Street Journal, The Economist, CNN, The New York Times) usually prefer an individual tour specifically tailored to their unique story angle. They will cover their own travel and accommodation costs but are typically open to our assistance in arranging appointmentsfmterviews for them. We would target visitation by one or two top -tier media outlets in the program's six months. OBJECTIVE: Arrange for one top -tier media outlet to visit Round Rock for story research. E. Ongoing Media Placement Because of our unique position as the only marketing firm specializing in economic development, we have the benefit of having journalists from around the country come to us for interview sources. With a current list of 20+ economic development clients, we're involved in many of the national stories being researched by business reporters around the country. It's in this light that we'd like to include Round Rock spokespeople as one of the contacts we can provide to the national media. OBJECTIVE: Respond to and approach on an ongoing basis top -tier media outlets (both print and broadcast) with a series of story angles highlighting the dynamic business environment in Round Rock resultit+g in national and regional media placements. -5- F. Telling Your Story at Home: Local and regional coverage We are aware of the enormous importance of local and regional coverage and will be available to advise you on how to achieve positive coverage in the region's local media outlets, including ideas on "playing back" success for the home audience. OBJECTIVE: Assist in replaying national publicity results within Round Rock. G. Continuous Advice & Counsel As already indicated, much of DCI's work is in the editorial placement and public relations arena, but much of it is not. We simply do everything we can to help our clients achieve their objectives as quickly and economically as possible, and we have a feeling in the case of the Round Rock we could be sizably helpful. OBJECTIVE: In any manner possible, assist the city in effectively marketing their business advantages to a national business audience. This activity is as diverse as providing feedback on advertising programs, prospect research, advice on website development, or trade shows assistance. -6- III. RESULTS MEASUREMENT: IN OTHER WORDS, HOW ARE WE DOING? • We have built -in individual objectives into each of our marketing elements, but we also would like to suggest another monitoring device that will help us collectively assess "how we're doing." First, allow us to define two important aspects of the measuring process: • "Advertising Equivalency" represents the cost of purchasing a similar amount of advertising space occupied by a given editorial article. • "Advertising Impact" is based on a formula developed by the advertising legend David Ogilvy, who stated that for reasons of credibility, positive editorial articles have an overall impact of five times greater than advertising. Our aim for this program would be to obtain a 2.5:1 return on investment. In other words, based on this program of $45,815 in professional fees, we would seek to generate approximately $115,000 in advertising equivalency and $575,000 in advertising impact. -7- IV. ACCOUNT STAFF The DCI account team will be headed by President Andy Levine, who will serve as the primary strategist for the account. Day -to -day management, strategy and implementation will be provided by a three- person team that includes Lynn Martin- Haskin, Vice President; Marissa Murray, Senior Account Executive; and Todd Lang, Account Executive. Brief biographies of each team member (with caricatures) are provided on the following Pages: - 8 - t c Andrew T. Levine President Background: • As senior officer of two direct response firms, Andy designed direct mailtelemarketing programs that raised $42 million for 17 non -profit organizations. Joined DCI in 1991; named President in 1994. Notable • Developed a highly successful editorial placement program for New Results: Orleans and The River Region, with major results in The Wall Street Journal, Washington Post, Success, Nation's Business and CNN. In the program's first year, 76 placements were achieved with an advertising impact of $5.9 million. • Arranged for the 1996 Sports Illustrated Swimsuit Issue to be shot on location in South Africa. Accompanying the photo essay were over 16 pages of editorial content profiling South Africa's diverse tourism offerings. • Placed a five -page article in Forbes for QualPro, an innovative quality implementation fine. The article resulted in 66 "serious" inquiries, 6 new clients and over $500,000 in new business. • Created a telemarketing campaign for Fairleigh Dickinson University, which reached 12,455 prospective students, resulted in 500+ applications for admission and improved the conversion rate. Quote: "Our objective is simple: help our clients become heroes in their own communities." -9- Lynn Martin Haskin, Ph.D. Vice President Background: • Lynn has 12 years experience in economic development, marketing, and fundraising for Greater Philadelphia First the region's private sector leadership organization. She also was a university administrator and a tenured faculty member, a reporter for daily and weekly newspapers, and a musician who paid her way through college playing vibraphone in a trio. Notable • Attracted and retained dozens of companies and thousands of jobs Results: for the Greater Philadelphia, tri- state 'region; • Managed a Partnership of 100+ public and private sector leaders and achieved measurable results in economic development, regional marketing, fundraising, and public policy; • Served President Timmy Carter who appointed her to a nominating panel for the Third Circuit Court of Appeals; • Provides volunteer leadership to economic development, civic, and cultural organizations in her community. Quote: "Opportunities are e- v- e- r- y- w- h- e-r -e. Creativity sparks them. A "can -do" attitude ignites them. Success allows satisfied clients to bask in the glow." -10- Marissa Murray Senior Account Executive Background: • Marissa has a Bachelor of Arts in Communication from Villanova University where she managed the radio station, produced and hosted several shows, and was a reporter and editor for the newspaper. She chaired the Special Olympics and the Feminist Club while on the dean's list. Today, this energy and expertise are focused on her clients, including Colombia, Mexico, the Lehigh Valley, Richmond and the City of Yonkers. Notable • Successfully placed stories in top -tier business media publications Results: such as The New York Times, The Financial Times, The Wall Street Journal, and The Washington Post. • Conducted an international press tour to the Lehigh Valley, which resulted in coverage in Handelsblatt, TV- Sweden, Deutsche Welle TV, and Asahi Shimbun. • Participated in several successful sales presentations with DCI's Chairman/Founder Ted Levine. • Organized special events for DCI staffers and is known for taking three modes of transportation to work: train, subway and ferry. Quote: "With imagination and hard work, we make clients successful. And, we all can have fun and make friendships while we do." Todd Lang Account Executive Tomb Background: • Before joining DCI, Todd spent three years as a recruiter in the technology field. Ills time there coincided with the peak, fall and eventual rebirth of the Internet industry, and the experience provided him with valuable lessons. Serving in a sales and account management role, he prospected for new clients, negotiated and closed deals met regularly with top -level executives and provided career guidance to applicants. • Prior to this, Todd spent one year as a teacher in a New York State Public School He holds a Bachelor's of the Arts Degree from Marist College, in Poughkeepsie, New York, where he studied Communications, with a specialty in Journalism. Notable • Todd is a key member on the account team representing Lehigh Results: Valley, Michigan, Pittsburgh, Richmond, Spirit of Milwaukee and Trenton. • For Billings, Montana, he organized 13 meetings with companies in the Rocky Mountains area and the Pacific Northwest, to introduce the benefits that companies receive by locating to Billings, Montana. • For Texas Tourism, he organized 26 meetings between the client and tourism companies, and coordinated two teams of representatives to carry out these meetings over a 3 -day prospecting mission. Quote: "When something needs to be done, you roll up your sleeves and do it." -12- SAMPLES and REFERENCES So far, we've described what we will do for Round Rock as well as the results we expect. To provide a basis for how we developed the program and its objectives, this section demonstrates our successes with comparable programs for similar cities. Following are three case studies from our Tacoma, Washington; Research Triangle Regional Partnership of North Carolina; and Huntsville, Alabama clients. In addition, several work samples from press clips to media tour itineraries, as well as reference letters are included for each. -13- THE CHALLENGE: Despite Tacoma's reputation as "the industrial stepsister of Seattle" and the unfortunate rhyming phrase known as "the Tacoma aroma," position Tacoma as a viable place for technology business and growth THE DCI SOLUTION: City of Tacoma Economic Development Department • Research and develop a themeline that boldly and accurately positions Tacoma as a "player" in the technology attraction game. • Work closely with city officials to promote this themeline and its message to one of Tacoma's local business community. • Design and execute a publicity campaign targeted specifically at the business and technology leaders in Seattle. • Coordinate interviews with national news bureaus most likely to cover Tacoma. THE RESULTS: • DCI developed, and Tacoma officials adopted the themeline, `America's #1 Wired City?' Themeline is based on the fact that Tacoma has the largest city-owned telecom network in the nation. Since its establishment, 100 new tech companies have expanded to Tacoma. • Local news outlets reported positively on the City's efforts, notably The News Tribune in an article titled, "It's Official: Tacoma's Rebound is for Real." • For the first time in decades, The Seattle Times carried an overwhelmingly positive article on Tacoma, prominently featured on the front page of its business section. Article was titled appropriately, "Tacoma Emerges as a Tech Center.'; • As a result of the Seattle media tour, Sam Verhovek of The New York Times visited Tacoma and wrote an article titled, "Its Air Cleaned, Its Tech High, a City Rebounds." • Business Week published a story titled, "More Wired Than Seattle ?" which quotes city officials and notes the themeline, "America's #1 Wired City." -14- Participants: • Mike Phillips, President & Chief Executive Officer, Frank Russell Company • Juli Wilkerson, Director of Economic Development, City of Tacoma • Kathy Young, Executive Assistant, Frank Russell Company • April Mason, Account Supervisor, Development Counsellors Intemational, Cell: 646 -554 -4295 • Tun Lee, Account Executive, Development Counsellors International, Cell: 917- 312 -3087 Wednesday, May 9 8:30a.m. Briefing breakfast J.W. Marriott - Halcyon Restaurant 151 West 54th Street 212 -468 -8888 Reservations for 4 under "Mason" (Participants: Phillips, Wilkerson, Young & Mason) 9:50a.m. Walk 3 blocks to Financial Times 10:00a.m. City of Tacoma Economic Development Department Itinerary for New York Media Tour Financial Times Elizabeth Wine, Financial Reporter 1330 Avenue of the Americas (Between 53r & 54 Streets) New York, NY 212- 641 -6578 elizabeth.wine @ft.com 10 :50a.m. Walk 2 blocks to Fortune -15- 11:00a.nv 12:15p.m. 1:45p.m. ' 3:15p.m. * All appointments subject to change. Fortune Magazine Matt Boyle, Business Reporter Vera Titunik, Senior Editor 1271 Avenue of the Americas, Room 1558B (Bet. 50 & 51 Sts.) New York, NY 10020 212 -522 -0380 (Ask security guard to call extension) matthew boyle@fortunemail.com 11:45a.m. Car service takes group to lunch, Confirmation #112598 Lunch - Forbes Global Business Heidi Brown & John Christy, Business Editors The Gotham Restaurant 12 East 12th Street (5 Ave.) New York (212) 620 -4020 620 -0181 (Call to confirm) Reservation for 5 under "Mason" Hbrown@forbes.cord 1:30p.m. Car service departs for the Economist The Economist Tom Easton Business Editor 475 Park Avenue South, 5 Floor New York, NY 10016 646 - 213 -1006 2:30p.m. Car takes Phillips to JFK for 5:00 p.m. flight, New York Times/Engineering News - Record Aileen Cho, Associate Editor Meet at DCI offices 461 Park Avenue South New York, NY 10016 212 -904 -3389 achoi imcgraw- hill.com (Note: Juli Wilkerson only — Aileen Cho is freelancing for the New York Times and planning an economic development feature) 4:30p.m. Wilkerson takes taxi back to hotel # ## -16- Research Triangle Regional Partnership of North Carolina THE CHALLENGE: Assist this diverse 13 -county region in promoting their community as a competitive high - tech manufacturing location to a global business audience. THE DCI SOLUTION: • Place a strong and targeted emphasis on generating positive business stories in foreign newspapers and broadcast outlets. • Develop and implement a strategy to directly target prospects in the German market. • Emphasize the strength of this technology region in the U.S. market IHE RESULTS: • Arranged for more than 20 foreign journalists to visit the Region resulting in articles appearing in Die Welt, Yomiuri Shimbun, The Financial Post, NTV, Les Echos and Die Zeit to name a few. • Through the implementation of a direct mail and telemarketing campaign, arranged 32 face -to -face meetings with German prospects in conjunction with the Hannover Fair. • Arranged for 3 international speaking engagements to discuss location opportunities in the Research Triangle Region. • Coordinated a luncheon for 25 Boston -based venture capitalists to leam more about investment opportunities available in the Region. ITINERARY Visit to Research Triangle, North Carolina by CLAUS TIGGES Frankfurter Allgemeine Zeitung Friday, March 15: 7:30 — 9:00a.m. Mr. Charles Hayes, President and CEO (Confirmed) Mr. Ted Abernathy, Executive Vice President Research Triangle Regional Partnership (RTRP) 1400 Terminal Blvd., Suite 901 Raleigh, NC 27623 919- 840 -7372 tabernathy@researchtriangle.org www.researchtriangle.org (Mr. Abernathy will present an overview of the Research Triangle region and its growth as a high -tech hotspot.) 9:30 — 10:00a.m. 10:30 — 11:00a.m. Mr. Ray Denny (Confirmed) North Carolina Department of Commerce (Fain is leading the delegation to Germany in early April) Mr. Steven Burke, Vice President (Confirmed) North Carolina Biotechnology Center 15 T.W. Alexander Drive Research Triangle Park, NC 919 -541 -9366 www.ncbiotech.org (North Carolina has special agreements concerning biotechnology with Germany and Burke is the expert on that. He will also be giving seminars in Germany on the state's biotechnology industry.) Mr. Max Wallace, President and CEO (Confirmed) Cogent Neuroscience 4425 Ben Franklin Blvd. Durham, NC 27704 919- 688 -7100 www.cogentneuro.com - 18 - 11:30- 11:50am. 1:00 — 1:45p.m. Ms. Darleen Johns (Confirmed) President and CEO Alphanumeric Systems Inc 301 Wake Forest Road Raleigh, NC 27609 919 - 781 -7575 (General) 919 - 376 -4450 (Direct) www.alphanumeric.com (Ms. Johns is past chairman of the North Carolina Electronics and Information Technology Association and a current board member. She will be part of the group that will be visiting Germany in early April.) 2:00 — 2:30p.m. Ms. Kathy Goodin (Confirmed) Director of Human Resources Schwarz BioSciences 4101 Research Commons (off T.W. Alexander Drive) Durham, NC 919- 767 -2534 919 - 767 -2555 kathy.goodin @schwarzbiosciences.com Web site: www.schwarzpharma.com (The company, the U.S. arm of Schwarz Pharma AG ofMonheim, Germany, was established in RTP in June 2000 with less than l0 people. It has now grown to 55 employees.) Mr. Robert Stoner (Confirmed) Vice President of Human Resources EMD Pharmaceuticals (Phone interview, to be conducted from Alpha - Numeric Systems) 3211 Shannon Road, Suite 500 Durham, NC 27707 919 -401 -7102 www.emdpharmaceuticals.com (EMD Pharmaceuticals is the U.S. affiliate of Germany -based Merck KgaA. The company is rapidly expanding in the Research Triangle.) -19- 4:00 - 5:OOp.m. Ms. Monica Doss (Confirmed) President Council for Entrepreneurial Development (CED) 104 T.W. Alexander Drive, Bldg. 1 Research Triangle Park NC 27709 919 -549 -7500 www.cednc.org (CED is by far the largest entrepreneurial assistance organization in the country. Ms. Doss will provide a briefing on the tremendous growth of venture capital in the Research Triangle, the business environment for entrepreneurs, eta) -20- THE CHALLENGE: Obtain national and international media placements, which highlight Huntsville's success in diversifying its economy, with a focus on the emergence of its many homegrown high -tech firms, on the merits of Cummings Research Park, the Airport Authority and the Chamber's ' role in assisting business. 1'Hl DCI SOLUTION: Huntsville/Madison County Chamber of Commerce, Alabama • Aim for maximum results with a "rifle shot" approach to key national media, and then support by targeting select trade publications. • Put the Chamber, and its spokespersons, out front as much as possible. • Obtain case study -style coverage of Huntsville's successful companies. '1'HN, RESULTS: • The Wall Street Journal, page one story: "Defense Strategies: How Huntsville, Ala., Manages to Maintain Its High -Tech Orbit" • Entire broadcast of CIVN's "Managing with Lou Dobbs" dedicated to Huntsville business subjects, plus segments on CNNfn 's "Who's in Charge." • The Wall Street Journal.: "Huntsville Traces a Commercial Orbit and Thrives." • The Wall Street Journal: `New Philosophy Revives Machine -Tool Operation." -21- • . l Development Counsellors International 461 Park Avenue South, New York, NY 10016 Phone: (212) 725 -0707 Fax ( 212) 725- 2254 E-mail: econdev@dc-intl.com/Web site: www.aboutdci.com Dt: November 12, 2001 To: Alex Hardy Barbara Nash Fr: Steve Bongiorno Re: List of Press Tour Participants -22- ICI Here is the final list of confirmed participants in the media tour of Huntsville this week: All but the final news organization — Spiegel TV — will participate in the entire itinerary for Thursday and Friday. Kerstin Mommsen, Rainer Marz, and Enzio von Eisenhart- Rothe will attend selected meetings on those two days, and will make other site visits separately on Tuesday and Wednesday. • Ms. Kate King, Producer, CNN (based in Atlanta) • Mr. Charles Seabrook, reporter, Atlanta Journal Constitution • Mr. Richard Lawson, reporter, Nashville Tennessean • Mr. Eric Parsons, photographer, Nashville Tennessean • Mr. Anthony Brooks, National Public Radio (based in Boston) • Mr. Aaron Schachter, reporter, Marketplace Radio (based in Boulder, Colorado) • Mr. Damian Whitworth, reporter, the Times of London (based in Washington) • Ms. Virginie Montet, reporter, Agence France Presse (based in Washington) • Mr. Hldeichi Yamaga, correspondent, Kyodo News /Japan (based in New York) • Mr. Gwang Chul Go, Korean Economic Daily (based in Washington) • Ms. Kerstin Mommsen, correspondent, Spiegel TV (based in Germany) • Mr. Rainer Marz, camera crew, Spiegel TV • Mr. Enzio von Eisenhart- Rothe, camera crew, Spiegel TV VL TIMELINE AND BUDGET We have designed this initial effort as a seven -month program, which would begin on March 1, 2003 and continue through September 30, 2003, the end of your fiscal year. Approximately 4 weeks before the conclusion of this program, DCI will provide a detailed report outlining recommendations for the program's future. The attached budget is divided into two elements: professional fees and projected out -of- pocket expenses. The latter item involves considerable variation but represents our current estimates based on recent experience. Your organization would pay only for actual expenses; DCI does not charge mark-up on any expense items. DCI's professional fee of $6,545/month will be billed at the beginning of each month. Expenses will be billed as they occur with documentation; client payment is requested within 15 days of billing. Ordinary DCI expenses (telephone, photocopying, overnight packages and other similar costs) and any out -of- pocket travel expenses will be billed separately with appropriate documentation. This agreement may be canceled by either party, DCI or the City of Round Rock, for any reason upon 30 days' written notice to the other. The program shall continue on a month - to -month basis after September 30, 2003 under the same terms and conditions herein unless both parties mutually agree upon new terms of operation. - 23 - 7 Round Rock Economic Development Corporation/DU Budget for Editorial Placement Program (March 1- September 30, 2003) I. Professional Fees —DCI Time Costs for Program Design $45,8i5 and Execution ($6,545 /month x 7 months)* II. Program Expenses -- Ongoing Communication Expenses: telephone, faxes, copying delivery services, etc. ($250 /month x 7 month's) -- Target Industry Press Trip to Round Rock ($1,500/journalist x 4 journalists) ** — DCI Staff Travel to Round Rock/Dallas ($1,000 /visit x 5 visits) ** — Contingency Fund EXPENSE SUBTOTAL: $14.750 TOTAL PROGRAM: $60,565 -24- $ 1,750 $ 6,000 $ 5,000 $ 2,000 Per your request, we have broken down the professional fees to clarify how we arrived at our budget figure (outlined on the following page) ** There are potential cost savings here based on local hotel and/or airline participation. Mayor Nyle Maxwell Mayor Pro-tem Tom Nielson Council Members Alan McGraw Carrie Pitt Scot Knight Isabel Gallahan Gary Coe City Manager Jim Nuse City Attorney Stephan L Sheets ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY. March 11, 2003 Dear Mr. Levine: Mr. Andrew Levine, President Development Counsellors International 461 Park Avenue South New York, NY 10016 The Round Rock City Council approved Resolution No. R- 03- 02 -27- 9A1 at their regularly scheduled meeting on February 27, 2003. This resolution approves the agreement for Consulting Services for national media relations services. Enclosed is a copy of the resolution and original agreement for your files. If you have any questions, please do not hesitate to contact Nancy Yawn at 218 -7094. Sincerely, Christine R. Martinez City Secretary Enclosure CITY OF ROUND ROCK Administrative Dept., 22! East Main Street • Round Rock, Texas 78664 Phone. 512 218 5400 • Fax. 512.218.7097 • www ci round -rock tx us