April 7, 2007

County Report

County approves corporate sponsorship and marketing plan and policy

By Supervisor Pete McHugh
Special to the Times

In February, the Santa Clara County Board of Supervisors approved a plan and policy for a corporate sponsorship and marketing program. The plan identifies various corporate sponsorship and marketing opportunities for County assets and activities. The policy helps ensure that all sponsorship and marketing partnerships support the County’s goals, meet legal mandates, and remain responsive to the public’s needs and values.

The Board directed staff to pursue this program concept in order to generate new long-term revenues and help soften the impacts of future budget deficits. According to County staff, the program has the potential to generate revenues ranging from $1.5 to $5 million within the first three years after implementation.

In November 2005, the Board approved an agreement with Active Public Enterprise Group (APEG) to serve as the consultant in developing and potentially implementing the program. Since that time, APEG has focused on identifying corporate sponsorship and marketing opportunities in four priority departments, which include the Santa Clara Valley Health and Hospital System, Parks and Recreation, Roads and Airports, and Facilities and Fleet. County staff believes these departments have the most valuable assets and prospects for marketing purposes.

One of the program’s key concepts is that it will utilize the County’s existing assets to generate revenue, without requiring additional expenses, investments, or traditional measures such as taxes, fees or bond issues. Under the program, the County will establish income-generating contracts with selected companies representing a variety of product and service categories. In exchange, the companies will have access to County assets for a specified period of time in order to market their goods and services to its target customers.

The plan outlines nine corporate sponsorship and marketing opportunity categories for the County to consider. The consultant has identified these categories based on their likely appeal to corporate partners, economic benefit to the County, and positive impact on the quality of life.

The categories include:

Special Event Sponsorship Packages: A private corporation would pay in cash or in kind for advertising and promotional rights at countywide events or programs.

Telecommunications: A telecommunications firm would pay for the opportunity to install cell towers, consolidate contracts for services and equipment, or provide wireless Internet access on County properties.

Banking: A bank would pay for the right to provide the County with comprehensive banking services or to place its ATM machines on County properties.

Naming Rights: A private corporation would pay for the right to name a County facility.

Website Commercialization: A private corporation would pay to display information, including advertisements, on the County website.

The plan recommends a three-year timeline and calls for the County to execute partnerships with private corporations in three separate stages. The County will issue Requests for Proposals for the different kinds of goods and services with each new stage. During the first year, staff estimates the program may result in revenues to the County of up to $1.5 million. During the second year, program revenues may reach between $3 and $4 million, and by the third year they may grow to $5 million. For more information on the Corporate Sponsorship and Marketing plan, policy or program, go to www.sccgov.org and refer to the February 27, 2007 Board Agenda, Item #45.

With the implementation of the Corporate Sponsorship and Marketing program, the Board of Supervisors hopes to generate much-needed additional revenues for the County. The County currently faces a projected General Fund deficit of $238 million for Fiscal Year 2008, and pending decisions at the Federal and State level could have further negative impacts. Even without potential Federal and State impacts, the County anticipates significant under-funding for its critical safety net and public safety services. Any new sources of revenue will play an important role in helping the County maintain these services for vulnerable residents.