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Home My WebLink About00-43 • Resolution No. 00-43 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH THE ELGIN AREA CONVENTION AND VISITORS BUREAU BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, 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 the promotion of conventions and tourism in the Elgin area, a copy of which is attached hereto and made a part hereof by reference. s/ Ed Schock Ed Schock, Mayor Presented: February 23 , 2000 Adopted: February 23 , 2000 Omnibus Vote : Yeas 6 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk AGREEMENT This agreement is hereby made and entered into this r. day ofC , 2000 by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") and the Elgin Area Convention and Visitors Bureau, an Illinois nonprofit corporation(hereinafter referred to as "Bureau"). WHEREAS, the 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 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 installments of$100,000 each on February 15, 2000 and July 15, 2000. 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 appointed representative to the Elgin Area Convention and Visitor Bureau. One report and summary shall be submitted on or before June 15, 2000 and one report on or before December 15, 2000. 4. Bureau shall provide City's appointed representative to the Elgin Area Convention and Visitor Bureau with any such further financial information it may have upon the written request of the appointed representative to the Elgin Area Convention and Visitor Bureau. 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 December 15, 2000 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 December 15, 2000 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. No funds shall be t • distributed by Bureau to any person, group, organization, corporation or beneficially in contravention to the constitutional prohibitions of the Constitution of the State of Illinois. 8. The term of this agreement shall commence on January 1, 2000 and shall expire on December 31, 2000; provided, however, that either party hereon 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, 2000, Bureau shall refund to the City all unexpended funds provided to Bureau by City within fifteen(15) days of the date of said termination and the 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 which is not due to the default or breach of this agreement by Bureau prior to December 31, 2000, 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 for any reason, 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. CIT •F ELGIN AO By i. / L _ Date '- 'ity Manager Attest: Aiy4L.ARLA l City Clerk ELGIN AREA CONVENTION • : VISITORS BUREAU B :l►_' ..4,.__/ Date/ / z9 Its ' . - - ' 'Ally, !' " • • OFE� ,� '�- City of Elgin Agenda Item No. 4A ORATED I - February 9, 2000 TO: Mayor and Members of the City Council FROM: Joyce A Parker, 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 the renewal of a Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau. BACKGROUND rft. Since 1984, the Elgin Area Convention and Visitors Bureau has 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 visitors to frequent nearby theaters, restaurants and attractions . The development agreement between the City and the Elgin Riverboat Resort requires space be made available at the Pavilion to take advantage of this major port of entry. Staffing the Visitors Center in the Pavilion with people who are familiar with the community is critical . Providing a friendly, courteous resource to visitors regarding restaurants, lodging, neighborhoods and other attractions in Elgin is necessary in ensuring they make a return visit. 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, State of Illinois grants and Ventures publication advertising revenues . • Elgin Area Visitor & Convention Bureau Purchase of Service Agreement February 9, 2000 Page 2 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. - The Bureau is to provide semi-annual activity reports . - The City has the right to request any additional information as it feels necessary to verify the Bureau ' s performance. 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. - The Bureau will continue efforts at fund raising and partnerships with the private sector to support its operation. - A minimum of $35, 000 of the $200, 000 is to be spent for promotional material/advertising (printed brochures, newspaper, radio, and television) regarding Elgin and the immediate area. A program has been developed with $35, 000 of the $200, 000 to go toward matching grants for Elgin based not-for-profit organizations, attractions, and events . These grants are to be used for promotional materials/advertising. - The Bureau is to continue working closely with the City of Elgin, particularly the Hemionus Auditorium, the New Century Partnership for Elgin, Downtown Neighborhood Association and the Parks and Recreation Department in all promotional endeavors . In exchange for these services, the City will provide : - Two equal installments totaling $200, 000 are to be made to the Bureau, $100, 000 after passage of the agreement and $100, 000 on June 30, 2000 . - The agreement can be terminated by either party with 30 days written notice. ti • Elgin Area Visitor & Convention Bureau Purchase of Service Agreement February 9, 2000 Page 3 This agreement will allow the Bureau to support the needed costs involved with creating a first-class image campaign for the city and the area. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Area Convention and Visitors Bureau. dOZNANCIAL IMPACT Funding for the proposed agreement in the amount of $200, 000 was included in the 2000 Budget in the Elgin Riverboat Fund, account number 275-0000-791 . 80-03, Contributions - Elgin Area Convention and Visitors Bureau. The 2000 Budget also includes a portion (43 . 75%) of hotel/motel tax receipts collected, budgeted at $150, 000, to fund the Bureau' s operations (account number 010-0902-709 . 80-03) . The tax plus the PSA provides total support of $350, 000 . An/EGAL 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 continue with the Elgin Area Convention and Visitors Bureau and be approved for a term of one year. Respectfully submitted, Joy A. arker City Manager ruk JIM NOWICKI/ai Attachment