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An Ordinance amending and supplementing the Administrative Code of Allegheny County, Article 705, entitled "Naming Rights," §5-705.03, entitled "Sponsorship Policy," in order to establish a codified distribution of any revenues derived from the sale of sponsorship naming rights.
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WHEREAS, pursuant to Article IV, §2(b) of the Home Rule Charter of Allegheny County, County Council is vested with the power and duty to "[m]ake appropriations, levy taxes, fees and service charges, and incur indebtedness as permitted by law or this Charter"; and
WHEREAS, pursuant to Article IV, §2(c) of the Home Rule Charter of Allegheny County, County Council is vested with the power and duty to "[a]dopt balanced annual operating and capital budgets as provided in Article VII"; and
WHEREAS, in 2008 and pursuant to the terms of Ordinance 08-08-OR, the Administrative Code of Allegheny County was amended to establish policies and procedures for granting various types of naming rights; and
WHEREAS, the three types of naming rights contemplated were philanthropic (in recognition of charitable donations), honorary (in recognition of service, commitment or other types of extraordinary actions), and sponsorship (in recognition of a mutually beneficial business relationship between the County and an external entity); and
WHEREAS, although Ordinance 08-08 did expressly contemplate the possibility that the County would be paid sums of money in exchange for certain sponsorship naming rights, the ordinance did not specifically delineate how any such revenues were to be handled by the County once received; and
WHEREAS, it is the desire of Council to refine the provisions of Article 705 by providing such a specific delineation of how revenues derived from sponsorship naming rights are to be disbursed,
The Council of the County of Allegheny hereby enacts as follows:
Section 1. Incorporation of Preamble.
The provisions set forth in the preamble to this Ordinance are incorporated by reference in their entirety herein.
Section 2. Amendment of the Code.
The Administrative Code of Allegheny County, Article 705, entitled "Naming Rights," §5-705.03, entitled "Sponsorship Policy," is hereby amended through the creation of a new Subsection H, comprised as follows:
§5-701.03 Sponsorship Policy.
A. Purpose.
The aim of this policy is to create an authorized environment for entering into sponsorship agreements with third parties where such sponsorships are mutually beneficial to both parties in a manner that is consistent with all applicable policies set by Allegheny County. The purpose of the policy and procedures as outlined is to:
1. Uphold the County's stewardship role to safeguard the County's assets and interests;
2. Provide employees with guidelines and procedures based on best practices; and
3. Protect Allegheny County from risk.
This policy provides an enabling environment for the County to enter into sponsorship agreements within set guidelines and procedures for the purpose of optimizing non-tax revenue sources. Under the conditions of this policy, the Allegheny County Chief Executive or his designee(s) may solicit such sponsorship agreements. The County shall not relinquish to the sponsor any aspect of the County's right to manage and control the County's assets or facilities. This policy is not applicable to philanthropic contributions, grants, or unsolicited donations in which no benefits are granted to the sponsor and where no business relationship exists.
B. Scope.
1. This policy applies to all County business units, departments and divisions.
2. This policy does not apply to:
a. Independent foundations or registered charitable organizations from which the County may receive benefit.
b. Philanthropic contributions or unsolicited donations to the County.
c. Funding obtained from other orders of government through formal grant programs.
d. County sponsorship support of external projects where the County provides funds to an outside organization.
e. Third parties who lease County property or hold permits with the County for activities or events.
C. Definitions.
1. "sponsorship" shall mean a mutually beneficial business arrangement between the County and a third party, wherein the third party provides cash and/or in-kind services to the County in return for access to the commercial and/or marketing potential associated with the County. Sponsorships may include sponsorship of one or more of the County's services, projects, events, facilities or activities.
2. "sponsorship agreement" shall mean a mutually beneficial, contractual agreement that reflects the business arrangement for the exchange of commercial and/or marketing benefits between the County and a third party for a specified period of time.
3. "sponsor" shall mean a third party that enters into a sponsorship agreement with the County.
4. "in-kind sponsorship" shall mean a sponsorship received in the form of goods and/or services rather than cash.
5. "request for sponsorship (RFS)" shall mean an open and competitive process whereby third parties may express their interest in participating in sponsorship opportunities with the County. Requests for sponsorship should include a summary of the sponsorship opportunity, benefits for participation, and a description of the open and competitive procedure for expressing interest in participating in sponsorship opportunities.
6. "naming rights" shall mean a type of sponsorship in which a third party purchases the exclusive right to name a whole asset or venue. The naming of a component of an asset or venue (e.g. - bench in a park, specific room in a building) is not considered to be naming rights for the purposes of this policy and would be categorized as per subsection F (Type 1, 2 or 3). Sponsorship naming rights are considered in the commercial context only, where the naming right is sold or exchanged for significant cash or other revenue support. This arrangement must be documented in an agreement signed by the interested parties and shall have a specified end date to the contractual obligations. This policy shall not apply to honorary and philanthropic naming rights, which are addressed as provided in the Allegheny County Honorary and Philanthropic Naming Rights Policy.
7. "naming rights agreement" shall mean a written contract evidencing the right to name or re-name County-owned facilities or land that contains terms acceptable to the County. Indemnification and termination clauses should be required as part of the agreement. All such agreements are to be reviewed by the County Attorney prior to finalization to ensure that The County's legal interests are protected. Dates indicating the term of the agreement should be indicated.
8. "philanthropic contribution" shall mean a contribution to Allegheny County from a third party for which there is no reciprocal commercial and/or marketing benefit expected or required from the County. Such contributions are separate and distinct from sponsorship and shall be governed by a separate County policy.
D. Restrictions.
1. In general, the following industries and products are not eligible for sponsorships with Allegheny County: police-regulated businesses; faith-based and political organizations; companies whose business is substantially derived from the sale of alcohol, tobacco, firearms or adult use. Sponsorships by sponsors that fall into one of the above-stated categories shall be subject to review and approval by the County Council.
2. Allegheny County shall reject advertising that does not comply with the standards set forth in this policy. All full advertising graphic designs must be submitted in sufficient detail to determine content and final general appearance to the County Manager or his/her designee for review and approval before application. The approval process for advertising design shall not exceed ten (10) business days from time of submittal.
3. The following standards for advertising are adopted and will not be displayed:
a. Is false, misleading or deceptive;
b. Relates to an illegal activity;
c. Is explicit sexual material, obscene material, or material harmful to minors;
d. Advertises Tobacco products;
e. Includes Language which is inappropriate for the proposed setting;
f. Depicts violence and/ or anti-social behavior.
E. Limitation.
Sponsorships will not result in any loss of Allegheny County jurisdiction or authority.
F. Sponsorship Categories.
1. Type 1: Individual Sponsorship: Sponsorship of an individual Allegheny County event, program or asset. Events, programs or assets shall be limited to those coordinated or managed by a single departmental entity.
2. Type 2: Multiple Sponsorship: Sponsorship of a series of Allegheny County events, programs or assets or sponsorship of an individual event, program or asset coordinated or managed by multiple departmental entities.
3. Type 3: Naming Rights Sponsorship: Any sponsorship that falls into the definition for Naming Rights.
G. Procedures and Authority.
1. All sponsorship projects must be submitted in writing by County department heads to the County Administrator or his/her designee.
2. A Request for Sponsorship (RFS) shall be developed and forwarded to County Manager or his/her designee for approval. Upon approval, RFS must be publicly noticed for a minimum of ten (10) business days prior to any designated closing date for submission of proposals. Public notice shall consist, at a minimum, of posting on the County's web site.
3. All sponsorship proposals must be submitted in writing.
4. All approved sponsorship agreements must include:
a. Signatures by authorized representatives of the County and the sponsor.
b. Term of the agreement, including provisions for termination.
c. Details of the exchange of benefits, including what will be provided to the County by the sponsor and what will be provided by the County to the sponsor.
5. A report summarizing each approved sponsorship agreements shall be submitted to County Council, together with an ordinance approving the agreement, in accordance with Article IV, Section 2(k) of the Home Rule Charter of Allegheny County.
6. Solicitation and negotiation of sponsorships will be conducted by County staff who are specifically designated by the Chief Executive, who shall be responsible for ensuring that staff understand the requirements of this policy and that they are provided with appropriate guidance and/or training related to sponsorship practices.
H. Proceeds Derived from Sponsorship Naming Rights.
For any sponsorship naming right agreement entered into by the County pursuant to the terms of this Section, any revenues received by the County pursuant to such agreement shall be utilized as follows:
1. Twenty-five percent (25%) of any revenues received by the County shall be used to improve the park, building, or other facility or property to which the naming rights agreement applies, and
2. Seventy-five percent (75%) of any revenues received by the County shall be deposited into the County's general fund. In the event that no specific park, building, facility or other property can be identified as the subject of any sponsorship naming rights agreement under the terms of Subsection H.1., one hundred percent (100%) of the proceeds from such agreement shall be deposited into the County's general fund.
Section 3. Short Title.
This Ordinance shall be known as the Honorable Sophie Masloff ordinance.
Section 4. Effective Date.
The provisions of this ordinance shall take effect immediately upon the date of final approval.
Section 5. Severability. If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Ordinance which shall be in full force and effect.
Section 6. Repealer. Any resolution or ordinance or part thereof conflicting with the provisions of this Ordinance is hereby repealed so far as the same affects this Ordinance.
PRIMARY SPONSOR: COUNCIL MEMBER ROBINSON
CO-SPONSORS: