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Home My WebLink About7.b. Rosemount Town Pages Contract RenewalCITY OF ROSEMOUNT EXECUTIVE SUb1ARY FOR ACTION CITY "COUNCIL MEETING DATE: APRIL 7, 1992 AGENDA ITEM: ROSEMOUNT TOWN PAGES - AGENDA SECTION: CONTRACT RENEWAL NEW BUSINESS PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR AGENDA iM ATTACffi4ENTS : MEMO, Y PROPOSED NEW CONTRACT I The city's contract with the Rosemount Town Pages Newspaper will expire on April 23, 1992. This was a one year contract which provided for a total payment of $26,000 for a specified amount of newspaper space which allowed the publication of our "City News" section. It also provided for the delivery of free newspapers to all households and businesses in the city. For 1992 - 1993 the proposed contract reflects a few minor changes. Those changes are outlined in the attached memo. The major change is to go to a six month contract rather than a one year. The main purpose is to insure that Mr. Heikkila and the City both have an opportunity to review the success of the paper and the economics of the operation prior to the year end of 1992. RECO24MMMED ACTION: Motion to approve the contract with Heikkila Productions for a period from April 24, 1992 to October 31, 1992 to provide certain publication services to the City of Rosemount. COUNCIL ACTION: �iiy of Rosemount PHONE (612) 423-4411 2875 - 145th Street West, Rosemount, Minnesota MAYOR FAX (612) 423.5203 Mailing Address: Edward B. McMenomy P.O. Box 510, Rosemount, Minnesota 55068.0510 COUNCILMEMBERS Sheila Wasson James (Red) Staats Harry Willoox Dennis Wippermann ADMINISTRATOR Stephan Jflk TO: Mayor McMenomy Councilmembers: Klassen, Staats, Willcox, Wippermann FROM: Stephan Jlk, City Administrator DATE: March 31, 1992 RE: Rosemount Town Pages 1992 Contract Renewal The one year contract with Heikkila Productions, Inc. to produce the Rosemount Town Pages, will expire on April 23, 1992. This contract called for the payment of $26,000 by the City, over a period of one year to Heikkila Productions. In turn the Heikkila Productions would produce "publish, print and distribute a weekly newspaper." This first year has brought on a great learning experience for Mr. Heikkila and the City. The concept of producing a community newspaper seemed rather adventuresome at the least. There have been a few problems and there have been many successes. I believe thecommunityis generally pleased with, not only the concept but also the document itself. The paper has added an element of identity to the community and the comments I have received are quite enthusiastic and positive. Problems regarding distribution, meeting coverage and management are being addresses if not resolved. One of the major issues regarding mailing class status is resolved, not to the satisfaction of the publisher but a decision has been finalized and Mr. Heikkila knows where he stands on it. The single major concern of the publisher today is that more local businesses are not using the paper. If more businesses understand the potential with 5400 papers delivered to every address in Rosemount and Valley Park has, they may decide to use the paper for advertising. This will only support the efforts of the publisher to produce a more viable publication and to help insure its future. I 6veryikingIs (90m.i.ng U RosemounlY A 0.i wwtCd D.— In our discussions with Mr. Heikkila about renewal of the contract we both felt it would be appropriate to work on a six month contract period rather than a one year for the following reasons: 1. Mr. Heikkila is having more success at having local businesses utilize the paper for advertising, but cash flow is a problem. He indicates that a six month trial period will help him determine the success, or lack of success in drawing additional advertising. 2. If it would not be feasible to continue the paper beyond six months because of financial reasons both Mr. Heikkila and the City would be able to make decisions about the future of the paper prior to the end of 1992. This is extremely important for the City in order to budget accordingly for 1993. Mr. Heikkila is willing to continue for the next six months meeting the same requirement set out in our original contract, with the exception of method of payment, for a period ending October 30, 1992. The method of payment will be a monthly payment equal to one half of $26,000 for the six months. In the initial contract we had provided an "up front" payment of $6,500 to assist in the start up of the paper. Then the payments were spread out in equal payments of one twelfth of the remaining $19,500. In this renewal contract their will be no up front payment. My recommendation is to proceed with the continuation of the publication of the Rosemount Town Pages for the period of six months ending October 30, 1992, at a monthly rate of $2,167 or $13,000 for a six month period with conditions as set out in the attached agreement. SJ/lj 2 AGREEMENT AGREEMENT made this 7th day of April, 1992, by and between the CITY OF ROSEMOUNT, a Minnesota municipal corporation ("City"), and HEIKKILA PUBLICATIONS, INC., a Minnesota corporation ("Publisher"). 1. Legal Notices. The Publisher shall publish all City legal notices in "The Farmington Independent" newspaper. 2. Newspaper Office. The Publisher shall establish a secondary office, as defined in Minn. Stat. 1990 § 331A.02, in the City of Rosemount. The office shall be staffed with a reporter between 9:00 a.m. and 5:00 p.m., Monday through Friday, excluding public holidays. When the office is not staffed, calls shall be automatically forwarded to the Publisher's main office in Farmington. 3. Newspaper. The Publisher shall publish, print, and distribute a weekly newspaper. The paper size, print type, and layout shall generally be similar to "The Farmington Independent." The Publisher shall distribute the newspaper by mail or direct delivery and without change to all addresses in the City of Rosemount. Free copies of the newspaper shall also be made available at retail outlets throughout the City of Rosemount. The newspaper shall include, but not be limited to the following content: * minimum one-half page available for "Rosemount City News" column, the content of which shall be furnished by the City 1 � I . * quarterly publication of park and recreation programming schedules * quarterly publication of recycling promotions and educational information * publication of all City legal notices publication of all City Council, Planning Commission, and Port Authority agendas and minutes * coverage of all City Council, Port Authority, and Planning Commission meetings * coverage of school sporting events in the City of Rosemount 4. Term. The term of this contract shall commence with the publication of the newspaper on April 24, 1992, and shall end with the publication on October 30, 1992. 5. Payment. The City shall pay the Publisher $1.00 per column inch for all legal notices published in the Farmington Independent. Payment shall be made within thirty (30) days of receipt of an invoice from the Publisher. The City shall also pay the Publisher $13,000 for writing, publishing, printing, distributing, and the like, the newspaper described in paragraph 3 of this Agreement. Payment shall be $2,167 per month for the term of this contract. The first payment shall be within 10 days after this agreement is approved and signed. Each of the remaining payments shall be due by the 15th day of each month as follows: 2nd payment June 15, 1992 3rd payment July 15, 1992 4th payment August 15, 1992. 5th payment September 15, 1992 6th payment October 15, 1992 Z CITY OF ROSEMOUNT BY: E.B. McMenomy, Mayor AND: Susan M. Walsh, City Clerk HEIKKILA PUBLICATIONS, INC. BY: 6JAj 0.8,-" Todd Heikkila, President 3