TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Mark Leyman, Parks and Recreation Director
Jessica Vincent, Sr. Recreation Manager
SUBJECT:Title
Consideration of Licensing the City of Manhattan Beach Logo (Parks and Recreation Director Leyman).
APPROVE LICENSE AGREEMENT TEMPLATE
Line
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve the License Agreement Template and direct staff through the City Manager to negotiate terms and conditions with licensees to use the City of Manhattan Beach logo.
FISCAL IMPLICATIONS:
Licensee revenue is derived from the execution of licensing agreements, which produce royalty income and fees. Royalties and license fees will vary based on City Council direction.
BACKGROUND:
On March 6, 2019, the City Council adopted Resolution No.19-0024, establishing the official City of Manhattan Beach logo, and authorized the City Manager to take all necessary steps, including hiring legal counsel, to apply for and obtain a trademark from the United States Patent and Trademark Office (USPTO) for the City logo. The City received the registered trademark for the Manhattan Beach logo in March 2020. Therefore, the City is the owner of all rights, title, and interests of the design mark and has full discretion over the uses of the logo design and may license the mark for use. As part of the 2021 work plan, City Council directed staff to establish a license agreement to permit local businesses to use the logo, and promote brand enhancing and revenue generating opportunities.
DISCUSSION:
The intent of the logo was to create a consistent image used by all City departments that captures the spirit of the Manhattan Beach community in a way that resonates with residents, and is attractive to businesses and visitors while complementing the City Seal. The adopted logo and standards for use of the graphics provide a unique brand for the City of Manhattan Beach, and communicate the brand to the public. The brand is communicated through City marketing and promotional products, on City buildings, parks, signage, and other properties that are deemed critical to the promotion of the City’s brand.
Following implementation of the City brand and use guidelines, and as part of the 2019 work plan, City Council directed staff to develop a City store. The Manhattan Beach City store, Branded MB, opened September 2019 in an effort to enhance civic pride and promote the City logo. The Manhattan Beach Parks & Recreation Department has been managing the store, designing and purchasing merchandise, promoting and facilitating sales, and maintaining and monitoring inventory. To ensure the brand maintains an elevated status, staff ensures the quality of materials and goods are of a high standard, quality, and appearance.
Merchandise such as Yeti water bottles and coffee cups, shirts, hats, sweatshirts, ornaments, and coasters have been available to purchase at City Hall, pop-up shops at events, and online. Since the inception of the City store, the City has spent $45,831.47 dollars for wholesale purchases and generated $50,623 dollars from sales, with a net revenue of $4,431.13. Currently, the City store wholesale merchandise inventory value is $5,138.
The attached City of Manhattan Beach License Agreement is a generic template that will be tailored to provide an opportunity for approved businesses to design and sell merchandise that includes the City logo as a primary graphic. It also provides a framework for local businesses to purchase the City’s merchandise and sell items from their respective businesses. Lastly, the City has an opportunity to license the mark for use in movies, television, and commercials. The terms of the agreement outline the conditions for use of the logo, including identifying goods, royalties, payments and reporting, term of the agreement, quality control, advertising, samples, and indemnifications.
There are a number of complexities and decision points within each license agreement. These points (royalties, term, logo design) are to be negotiated between the City and business prior to finalizing the Agreement, and may be based on the size of the business and the request for use of the logo.
RECOMMENDATION:
Staff recommends the City Council approve the attached license agreement template, and direct Staff through the City Manager to negotiate terms and conditions to use the City logo.
PUBLIC OUTREACH:
Staff discussed the item with the Manhattan Beach Downtown Business & Professional Association and the Manhattan Beach Chamber of Commerce. Based on the initial discussions, eight local businesses have expressed interest in partnering with the City to use the City logo for merchandise.
ENVIRONMENTAL REVIEW:
The subject request is not a “project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. City of Manhattan Beach License Agreement (Template)