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Home My WebLink About97-49 4 Resolution No. 97-49 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 Robert O. Malm, Interim 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 marketing and promotion support of the tourism and convention industries in and around Elgin, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 26, 1997 Adopted: February 26, 1997 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk 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 $200, 000 in semi-annu- al installments of $100, 000 each. 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 the City' s Budget Officer, no later than one report and summary on or before April 15, 1997, and one report on or before October 15, 1997 . 4 . Bureau shall provide City' s Budget Officer with a performance report and complete report on or before December 1, 1997 , and shall provide City' s Budget Officer with 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, 1997 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, 1997 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. 8 . The term of this agreement shall commence on January 1, 1997 , and shall expire on December 31, 1997 ; 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 December 31, 1997 , 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 December 31, 1997 , Bureau shall be allowed to retain all unexpended funds for promotions and adver- tisement established prior to notice of termination under para- graphs 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. CI : - . LGIN By Int-rim City Manager Attest: 9/4"11A- S2 -Alci City Clerk ELGIN AREA CONVENTION AND VISITORS BUREAU BY r� %) ` 3v7) `,;� .zG Its L :.e Ate' ' et _2- `0 OF foci Agenda Item No. City of Elgin g February 5, 1997 TO: Mayor and Members of the City Council FROM: Robert O. Malm, Interim City Manager SUBJECT: Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information regarding a pro- posed Purchase of Service Agreement with the Elgin Area Conven- tion and Visitors Bureau. BACKGROUND Since 1984, the Elgin Area Convention and Visitors Bureau has emk provided marketing and promotional support of the tourism and convention industries in and around Elgin. The opening of the Elgin Riverboat complex presented new opportunities for the City and the Bureau. Three million people per year pass through the Pavilion and one of the Bureau' s goals is to encourage visiting nearby theatres, restaurants and attractions . The development agreement between the City and the Elgin Riverboat Resort re- quires 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 familiar with the community is critical . The impression on visitors of having a friendly, helpful information resource on restaurants, lodging, neighborhoods and other attractions in Elgin can only be accomplished with helpful, knowledgeable individuals . A formal Purchase of Service Agreement was initially adopted by the City Council in October, 1995 . The Bureau is primarily funded from a portion of the City's hotel/motel tax, the State of Illinois, Ventures publication advertising and Bureau ' s reserve funds . Highlights of the proposed agreement include: Staffing of the Welcome Center to promote Elgin, with either volunteers or paid staff, for a minimum of 70 hours per week. Merchandise promoting Elgin will be available for sale. PSA - Elgin Area Convention and Visitors Bureau February 5, 1997 Page 3 The 1997 Budget also includes a portion of hotel/motel tax receipts totaling $118,000 to fund the Bureau 's operations . Therefore, the tax plus the PSA provides total support of $318,000. LEGAL IMPACT None. ALTERNATIVES The City Council could approve the agreement as drafted, edit the agreement or decline to provide support to the Elgin Area Convention and Visitors Bureau. RECOMMENDATION It is recommended that the Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau be approved for a term of one year. Resctfully submitted, MA-441 '-(2-71,67/‘r eft- es R. Nowicki n: , Director Rob- 0. Malm Interim City Manager JRN/daw Attachment 1 ) ACCOUNT# LINE ITEM LOCAL LTCB LOCAL TOTAL 1996 H/M TAX GRANT V.I.C. BUDGET BUDGET REVENUE 3000 Room Tax/City of Elgin-contract 133858 0 0 133858 120750 3030 Promotional Partnerships 8000 0 0 8000 10000 3050 Restrictd Revenue/State Grant 0 96057 0 96057 83923 3070 Ventures Income-Fall/Winter 32000 0 0 32000 35000 3080 Ventures Income-Spring/Summer 32000 0 0 32000 35000 3125 Visitor Info. Ctr./Riverboat Pavilion 0 0 200000 200000 200000 3130 Interest Income & Miscellaneous 2000 0 0 2000 2000 3500 Retail Sales 0 0 5000 5000 4800 TOTAL REVENUE 207858 96057 205000 508915 491473 EXPENDITURES PERSONNEL SERVICES 4000 Gross Wages/Full Time 62248 37327 51720 151295 127872 4050 Gross Wages/Part Time 5360 10000 33030 48390 58200 4075 Outside Services 1500 0 0 1500 1000 4100 Employee Related Taxes 8900 0 7500 16400 15365 4150 Employee Benefits 9950 0 2300 12250 11750 TOTAL PERSONNEL SERVICES 87958 47327 94550 229835 214187 DIRECT PROMOTIONAL EXPENSES 4500 Cost of Sales 0 0 2500 2500 2500 5010 Ad Production 1000 0 2000 3000 3000 5030 Advertising:Media Placement 0 20400 18000 38400 39300 5050 Collateral Materials 1000 8000 3000 12000 14000 5070 Promotional Merchandise 0 0 • 3000 3000 3000 5090 Fam/Site Visits 500 0 1000 1500 3500 5110 Trade Shows 0 0 1000 1000 2000 5130 Travel & Ent/Out/Group Sales 2000 0 4000 6000 1650 1 1 1 . 5150 Trade Shows/Promos/Out/Sales 1500 7925 1500 10925 4333 5170 Special Promotions/Out of Town 500 750 500 1750 1750 5190 Special Events Hosting/Committments 500 1000 750 2250 1250 5210 Ventures Visitor Guide/Fall-Winter 28000 0 7000 35000 35000 5220 Ventures Visitor Guide/Spring-Summer 28000 0 7000 35000 35000 5250 Local Bureau Grant Program 0 0 35000 35000 35000 TOTAL DIRECT PROMOTIONAL EXPEN 63000 38075 86250 187325 181283 OPERATING EXPENSES 6010 Computer 2200 0 1300 3500 2600 6030 Depreciation 2400 0 850 3250 3237 6050 Donated Services 0 0 0 0 0 6070 Dues & Subscriptions 2500 1955 1000 5455 5290 6090 Education & Training 4000 1700 1500 7200 7500 6110 Equipment:Lease/Purchase 6000 0 5500 11500 9020 6130 Equipment:Rental 300 0 100 400 400 6150 Insurance:General Contents 350 0 0 350 300 6170 Insurance:Liability 1600 0 0 1600 1600 6190 Interest Expense 0 0 0 0 500 6210 Local Meeting Expenses 4000 0 500 4500 4580 6230 Postage & Shipping _ 6000 0 4000 10000 9000 6250 Printing:Office Matterials 1500 0 2000 3500 2500 6270 Professional Services 3150 0 2350 5500 5500 6290 Rent & Storage 14000 7000 0 21000 21000 6310 Repair& Maintenance 1200 0 500 1700 1250 6330 Research 0 0 0 0 0 6350 PR Event or Program 1000 0 1000 2000 2000 6360 Sponsorship Programs 500 0 500 1000 1000 6370 Supplies & Office Expenses 2500 0 1500 4000 3500 6390 Telephone & Fax 3000 0 600 3600 4600 6410 Other/Contingency 700 0 1000 1700 1700 TOTAL OPERATING EXPENSES 56900 10655 24200 91755 87077 GRAND TOTAL EXPENDITURES 207858 96057 205000 508915 482547 SURPLUS(DEFICIT) 0 0 0 0 8926 BUDGET/'96-'97-MAY-13,1996 c:. if f;'1 /'J, / y'1v i