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HomeMy WebLinkAbout02-110 Resolution No. 02-110 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 Olufemi Folarin, Interim City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Purchase of Service Agreement on behalf of the City of Elgin with the Elgin Area Convention and Visitors Bureau for marketing and promotional support of the tourism and convention industries, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: March 27, 2002 Adopted: March 27, 2002 Omnibus Vote : Yeas : 5 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk } PURCHASE OF SERVICE AGREEMENT This agreement is hereby made and entered into this VT11 day of 14/0/2l` L , 2002 by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City" ) and the Elgin Area Convention and Visitors Bureau, and 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 . The first shall be payable within thirty (30) days following execution of this agreement and the second by July 31, 2002 . 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 . The Bureau shall provide two written reports detailing the disbursement of $200, 000 . These reports shall be provided to the City Council by May 31, 2002 and December 31 , 2002 , and shall include all program activity. These reports shall be submitted to the City Manager' s Office, City Hall , 150 Dexter Court, Elgin, IL 60120 . 4 . The Bureau shall provide the City with financial statements relative to the organization' s total operations . These statements shall be submitted to the City Manager' s Office, City Hall , 150 Dexter Court, Elgin, IL 60120 . 5 . Bureau shall provide City' s appointed representative to the Elgin Area Convention and Visitors Bureau with any such further financial information it may have upon the written request of the appointed representative to the Elgin Area Convention and Visitors Bureau. 6 . Bureau shall conduct good faith efforts to obtain additional funding from other sources for its operations . 7 . Bureau shall expand the sum of not less than $35, 000 on or before December 14 , 2002 on materials , advertisements, and promotions directed at the advancement of tourism in the City of Elgin. 8 . Bureau shall expend the sum of not less than $35 , 000 on or before December 14 , 2002 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 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 . 9 . The term of this agreement shall commence upon the date of its execution and shall expire on December 31, 2002 ; provided, however, that either party hereon may terminate this agreement upon thirty (30) days written notice . 10 . In the event this agreement is terminated by the Bureau for any reason prior to December 31, 2002 , or is terminated by City due to breach by Bureau, Bureau shall refund to the City all unexpended funds provided by City to bureau within fifteen (15) days of the date of said termination, and the City shall have no further obligations pursuant to this Agreement . This provision shall not act, nor be construed as, a limitation on any rights to which the City may be entitled by law. 11 . 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, 2002 , 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 . 12 . This agreement shall be subject to and governed by the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois . 13 . 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 . 14 . This agreement shall not be construed so as to create a partnership, joint venture, agency or employment relationship between the parties hereto. 15 . To the fullest extent permitted by law, Bureau agrees to indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits, judgements, costs, attorney' s fees, damages or other relief arising out of or resulting from or through or alleged to arise out of any reckless or negligent acts or omissions of Bureau' s officers, employees or agents in the performance of this agreement . In the event of any action against the City, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of the City' s choosing. CITY OF ELGIN B Date S-D-et- 0� Attest : W4)144g City Clerk ELGIN AREA CONVENTION AND VISITORS BUREAU / B /.a✓ iG�.t► ,i s %Date c77-/9—O� • Its Execuv — irecrcv- 4 , `,(OFE<c (17;IT ¢G " \�b City of Elgin Agenda Item No. (!!!1 E March 8, 2002 I r N TO: Mayor and Members of the City Council RECREATIONAL LEISURE ANC,CULTURAL OFFORTUNITIES FROM: Olufemi Folarin, Interim City Manager FOR ALL CITI2 ENS 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 rk 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. Over 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 . eft. Elgin Area Convention and Visitors Bureau Purchase of Service Agreement March 8 , 2002 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 City has the right to request any additional information as it feels necessary to verify the Bureau' s performance. - The Bureau will submit a financial and activity report for review by the City twice a year. - 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 Hemmens Cultural Center, 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 July 31, 2002 . Elgin Area Convention and Visitors Bureau Purchase of Service Agreement March 8, 2002 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. TAFINANCIAL IMPACT There is $200, 000 budgeted in the 2002 budget in the Riverboat Fund, account number 275-0000-791 . 80-03 , to pay for this agreement . EGAL IMPACT I' 1 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, "mil. � �.. Olufemi .lari Inter;m C ' ty ager DKN/od Attachment