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HomeMy WebLinkAbout94-271 • Resolution No. 94-271 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE ELGIN AREA CONVENTION AND VISITORS BUREAU BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard B. Helwig, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with the Elgin Area Convention and Visitors Bureau for enlarging and stimulating conventions and tourism in the City of Elgin, a copy of which is attached hereto and made a part hereof by reference. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: September 28, 1994 Adopted: September 28, 1994 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk t AGREEMENT WHEREAS, the City of Elgin (hereinafter referred to as "City" ) is an Illinois municipal corporation and a home rule unit pursuant to the Constitution and laws of the State of Illinois; and WHEREAS, the Elgin Area Convention and Visitors Bureau (hereinafter referred to as "Bureau" ) is a corporation organized under the Illinois General Not For Profit Corporation Act to encourage, foster, promote and stimulate conventions and tourism in the Elgin area; NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows : 1 . City shall pay Bureau the sum of $100,000 on or before January 31, 1995, and an additional $100,000 on or before July 31, 1995. 2 . Bureau shall provide not less than one person for not less than seventy (70) hours in each seven (7) day period during the term of this agreement to answer questions and provide promotional materials to the general public at the Grand Victoria Visitor Information Center. 3 . Bureau shall provide not less than two (2) reports and summaries of its activities to City' s Budget Officer, no later than one report and summary on or before April 15, 1995, and one report on or before October 15, 1995 . 4 . Bureau shall provide City' s Budget Officer with a performance report and complete report on or before December 1, 1995, and shall provide City' s Budget Officer any such further financial information it may have upon the written request of the City Budget Officer. 5 . Bureau shall conduct good faith efforts to obtain additional funding from other sources for its operations . 6 . Bureau shall expend the sum of not less than $35,000 on or before October 15, 1995 on materials, advertisements, and promotions directed at the advancement of tourism in the City of Elgin. 7 . Bureau shall expend the sum of not less than $35,000 on or before October 15, 1995 to develop and fund a program designed to provide funds to Elgin-based not-for-profit organizations which, in the reasonable discretion of Bureau, shall contribute to the promotion and advertisement of investment and tourism in the City of Elgin. I 8 . The term of this agreement shall commence on October 15, 1994, and shall expire on October 15, 1995; provided, however, that either party hereto may terminate this agreement upon thirty (30) days written notice. 9 . In the event this agreement is terminated by the Bureau for any reason prior to October 15, 1995, Bureau shall refund to City all unexpended funds provided to Bureau by City within fifteen ( 15) days of the date of said termination, and City shall not be obligated to pay any further sums to Bureau. 10. In the event this agreement is terminated by the City for any reason prior to October 15, 1995, Bureau shall be allowed to retain all unexpended funds for promotions and advertisement established prior to notice of termination under paragraphs 6 and 7 above. 11 . This agreement shall be subject to and governed by the laws of the State of Illinois . 12 . The terms of this agreement shall be considered to be severable. In the event that any of the terms of this agreement shall be deemed to be void or otherwise unenforceable, the remainder of the agreement shall remain in full force and effect. 13 . This agreement shall not be construed so as to create a partnership, joint venture, agency or employment relationship between the parties hereto. CITY OF ELGIN By �� ice. V30/?y City Manager Attest: i -)A-^-4.- 04...C.L.43._.. City Clerk ELGIN AREA CONVENTION AND VISITO• . : . ;• WU . 1 BY I__ .,, Its *IS/A 7- -2- Committee of the Whole Meeting September 14, 1994 Page 4 Gilliam, Popple, Schock, Walters, Yearman, and Mayor VanDeVoorde. Nays : None. Approval of Amendment to the Purchase of Service Agreement with Elgin Area Convention and Visitors Bureau City Manager Helwig stated that with the Elgin Riverboat Resort complex coming on line, Elgin has a very unique opportunity to tell the Elgin story: to market our community, places to eat, lodging, public sites to enjoy yourself, our neighborhoods, and all the other good things about Elgin. The development agreement between the City and Elgin Riverboat Resort required that space be provided in the riverboat pavilion for a visitor' s center. The Elgin Area Convention and Visitors Bureau has come forward with a request to be the City' s agent to program and operate the visitors center, which is in a prime location in the pavilion. The proposed one-year Purchase of Service Agreement between the City and the Elgin Area Convention and Visitors Bureau (EACVB) provides that the City give the Bureau the sum of $200,000 to furnish and staff the visitors center. In part, the Bureau agrees to staff the center for a minimum of 70 hours a week, spend a minimum of $35,000 of the $200,000 on promotional material/advertising, develop a matching grant program with $35,000 of the $200,000, and provide activity and financial reports for review by the City. Councilwoman Yearman made a motion, seconded by Councilman Schock, to approve the proposed Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, Yearman, and Mayor VanDeVoorde. Nays : None. Approval of City's 1994/1995 Limited Self-Insurance Renewal Proposal from Hanchette Insurance Councilman Gilliam made a motion, seconded by Councilman Fox, to approve the proposal from Hanchette Insurance. Yeas : Councilmembers Fox, Gilliam, Popple, Schock, Walters, Yearman, and Mayor VanDeVoorde. Nays : None. Discussion of a Local Option Sales Tax City Manager Helwig reviewed the preliminary list of immediate and five-year plan financial goals which were developed by staff after early input from the Council in May and the input received during the 37 meetings with various community groups . He stated that he'd heard "No cuts ! " from the Council and from the community in these meetings . 1!!!! A enda Item No. i1/111 September 9, 1994 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Amendment to Agreement with Elgin Area Convention and Visitors Bureau PURPOSE The purpose of this memorandum is to provide the Mayor and City Council with information for a proposed Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau. BACKGROUND Given the new era for the tourism and visitor industry in the city, an amendment to the Purchase of Service Agreement with the Bureau is needed. This amendment will clarify and direct the Bureau as the city' s agent for tourism and convention marketing. Since 1984 as an independent agency, the Elgin Area Conven- tion and Visitors Bureau has provided marketing and promotion- al support of the tourism and convention industries in Elgin. The Bureau's 1994-95 budget is primarily funded from: Hotel/motel Tax (one-half of 3 1/2%) $ 95,725 State of Illinois 80, 197 Ventures Publication Advertising 50, 000 Bureau Reserve Funds/Misc. 23, 171 Total $249,093 Hotel/motel tax dollars have declined in recent years but with a new property opening (increasing the number of ho- tel/motel beds in the City by 109 to 680) and renovations at an existing property, some revenue improvements are expect- ed. The Bureau has recently also undertaken a program of selling promotional partnerships . The new program has gener- ated $4,540 and has further potential . A program to seek financial assistance from the other 11 communities in the Bureau' s service area was unsuccessful . Elgin Area Convention and Visitors Bureau Agreement September 9, 1994 Page 2 enk The opening of the Elgin Riverboat Resort complex presents whole new opportunities for the City and the Bureau. Poten- tially three million people a year will pass through the Pavilion, not only to the riverboat itself but also the accom- panying theatres, restaurants and nightclubs . The develop- ment agreement between the City and the Elgin Riverboat Re- sort requires space at the Pavilion be available to take advantage of this major port of entry for visitors . Staffing at the Visitors ' Center in the Pavilion with people who are knowledgeable about the community is critical . The impression on visitors of having a friendly, helpful informa- tion resource on restaurants, lodging, neighborhoods and other attractions in Elgin can only be accomplished with helpful individuals . Telephone hotlines and racks of bro- chures alone will not accomplish the challenge every city with a riverboat has faced. That challenge is to encourage riverboat visitors to shop, eat, and perhaps even stay for a night in a local hotel . Staffing at the Bureau now includes two full-time employees, supplemented with one contracted marketing consultant, and volunteer labor. Printing materi- als for the expected volume of visitors will overwhelm the normal quantities normally produced with the existing resourc- es. The existing contract share of the City's hotel/motel tax receipts is to remain in place. Highlights of a proposed new amendment include: - Staffing of the Welcome Center to promote Elgin, with either volunteers or paid staff, for a minimum of 70 hours/week. Merchandise promoting Elgin will be avail- able for sale. - The Bureau is to provide semi-annual activity reports to the Budget Officer no later than April 15 and October 15 . - The City has the right to request any additional informa- tion as it feels necessary to verify the Bureau 's perfor- mance. - The Bureau will submit a timely annual financial report and an annual performance report for review by the city. - The agreement is to be for a term of one year, from October 15, 1994 to October 15, 1995 . - The Bureau will continue efforts at fund raising and partnerships with the private sector to support its operation. eft - A minimum of $35,000 of the $200, 000 is to be spent for promotional material/advertising -- printed brochures, newspaper, radio, and television -- on Elgin and the immediate area. Elgin Area Convention and Visitors Bureau Agreement September 9, 1994 Page 3 - A program is to be developed with $35,000 of the $200, 000 for matching grants to Elgin visitor based not-for-profit organizations, attractions, and events . These grants are to be used for promotional materi- als/advertising. - The Bureau is to continue working closely with the City of Elgin, particularly the Hemmens Auditorium, the New Century Partnership for Elgin, and the Parks and Recrea- tion Department in all promotions . In exchange for these services, the city will provide: - Two equal installments totaling $200, 000 are to be made to the Bureau, $100, 000 on January 31, 1995 and $100,000 on July 31, 1995. - The agreement can be terminated by either party with 30 days written notice. This program will allow the Bureau to support the needed start-up costs with creating a first-class image campaign for the city and the area. elk INTERESTED COMMUNITY GROUPS, PERSONS CONTACTED The city' s appointed members to the Board of Directors of the Elgin Area Convention and Visitors Bureau - Councilwoman Marie Yearman, Wende Whiston, Parks and Recreation Director Greg Bayor, and Budget Officer Clay Pearson - have reviewed and endorsed this proposal . LEGAL IMPACT None. FINANCIAL IMPACT Funding for this proposal is anticipated from riverboat pro- ceeds, in keeping with the City Council 's July 6, 1993 Policy Resolution designating a portion of these proceeds to promot- ing tourism. Receipts from the Fourth Quarter, 1994, will be received in January, 1995 to fund the January 1, 1995 payment of $100,000. Receipts from the Second Quarter, 1995, will be received in July to fund the July 31, 1995 $100,000 payment. RECOMMENDATION The need for these services is very evident. Rather than provide a multi-year commitment of riverboat dollars to this enterprise, we recommend a one-year fixed sum agreement with measurable performance standards so that City Council may Elgin Area Convention and Visitors Bureau Agreement September 9, 1994 Page 4 evaluate this partnership one year from now. This work pro- gram represents quite a challenge for the Bureau and the Elgin Community. it is recommended that the staff be asked to prepare a Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau incorporating the above terms to be approved at the City Council ' s September 28 meet- ing. Respectfully submitted, Clay . Pearson Budget/Public Information Officer Richard B. Helwig City Manager amp r r