Okaloosa County BOCC — October 15, 2013 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 17, 2013 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Amend the Airports Department Advertising Contract DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: The Airports Department is requesting the Board of County Commissioners approve to amend the Romjue Advertising & Company Media Buying and Advertising contract. BACKGROUND: In December 2012, Romjue Advertising & Company was awarded the media buying and advertising contract for the Okaloosa County Airports Department. The contract reflects a percentage compensation of 15% commission on media outlet purchases. Invoices received by the various media outlets through which Romjue purchased advertisement reflect the agency’s discounted net price. The industry standard is for the agency to be compensated at 15% of the gross. The gross amount includes the agency commission and the net amount is what is paid to the media outlet. When the contract language was formulated, there was a discrepancy in the terminology of the commission percentage by the County and the Agency that has resulted in a monthly compounding disputed rate of commission totaling $3,225.15 as Finance is currently paying the 15% commission based on the net amount and not on the gross. Not amending the contract will result in a large claim dispute at the end of the contract. OPTIONS: Approve, Reject, or Table RECOMMENDATIONS: Approve to amend the Romjue Advertising contract to reflect that the future commission to be based on 15% of the gross amount calculated by dividing the net amount as shown on the invoice by .85 and retroactively paying the current disputed amount RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator