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HomeMy WebLinkAbout03-54 Resolution No. 03-54 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: February 26 , 2003 Adopted: February 26, 2003 Omnibus Vote : Yeas : 6 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk • .fir O`F Et Ci ' 1,� City of Elgin Agenda Item No. L February 7, 2003 G N -._ TO: Mayor and Members of the City Council 4,. ALIVE DOWNTOWN FROM: Olufemi Folarin, 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 Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau. rik BACKGROUND 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 City of Elgin has, in the past, provided direct support for these activities, including publication of Ventures magazine, administration of a grant program to assist not-for-profit organizations promote events and attractions and operation of a Visitors Center in the Grand Victoria Casino Pavilion. A significant source of funding for Bureau activities, in addition to the support through the Purchase of Service Agreement, is the proceeds from the City' s hotel/motel tax. It is projected that the Bureau' s 2003 portion of the hotel/motel tax proceeds will be $196, 275 . Highlights of the proposed agreement include: • Staffing of the Visitors Center to promote Elgin for a minimum of 70 hours per week. If the Bureau were to identify a location other than the Grand Victoria Casino r r PSA with the Elgin Area Convention and Visitors Bureau February 7, 2003 Page 2 Pavilion to operate as Visitors Center, a presence would be maintained at the Pavilion, although in a reduced capacity, for this purpose. • The City has the right to request any additional information as it feels is necessary to verify the Bureau' s performance. • The Bureau will submit a financial and activity report to the City twice a year. • The Bureau will continue efforts at fund-raising and partnerships with other communities which it serves . • A minimum of $35, 000 of the $200, 000 is to be used for promotional materials and advertising for the Elgin area. • A program providing matching grants for Elgin area not-for- rk profit organizations, attractions and events will be administered by the Bureau. • The Bureau will provide one page in the Ventures magazine for use by the City to promote events, attractions, etc. • The Bureau is to continue working closely with the City of Elgin, particularly Hemmens Cultural Center, Downtown Neighborhood Association and the Parks & Recreation Department in all promotional endeavors . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Area Convention and Visitors Bureau INANCIAL IMPACT There are sufficient funds budgeted and available in the 2003 Budget ($200, 000) in the Riverboat Fund, Contributions, Account Number 275-0000-791 .80-03 ,contributing for this agreement . r - . • rm. PSA with the Elgin Area Convention and Visitors Bureau February 7, 2003 Page 3 oECAL IMPACT None. ALTERNATIVES 1 . Approve the Purchase of Service Agreement with the Convention & Visitors 'Bureau as presented. 2 . Modify the Purchase of Service Agreement . 3 . Reject the Purchase of Service Agreement with the Convention & Visitors Bureau as presented. RECOMMENDATION It is recommended that the Purchase of Service Agreement with the Elgin Area Convention & Visitors Bureau be approved as presented. Respectfully submitted, Olu emi .lari • Int-rim t Ma =ger DKN/od Attachment r PURCHASE OF SERVICE AGREEMENT This agreement is hereby made and entered into this am- day of M A- p e-?4-, 2003 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 . Bureau shall provide a budget within 30 day following execution of this agreement which shall reflect the projected distribution of funds received from the City during the term of this agreement . 2 . 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, 2003 provided that the first report has been received by the City as required by paragraph 4 herein. 3 . 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, or other location established for this purpose. In the event that the Bureau operates a visitor center at a location other than the Grand Victoria Casino, a presence shall be maintained at the Grand Victoria Casino providing, at minimum, access to promotional materials to the general public. 4 . 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, 2003 and December 31, 2003, and shall include all program and financial activity. These reports shall be submitted to the City Manager' s Office, City Hall, 150 Dexter Court, Elgin, IL 60120 . 5 . The Bureau shall provide the City with financial statements relative to the organization' s total operations . These statements shall be submitted before July 31, 2003 and December 31, 2003 . 6 . 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. 7 . Bureau shall conduct good faith efforts to obtain additional funding from other sources for its operations and report such efforts to City. 8 . Bureau shall expend the sum of not less than $35, 000 of the aforementioned $200, 000 on or before December 14, 2003 on materials , advertisements, and promotions directed at the advancement of tourism in the City of Elgin. Samples of all such materials shall be submitted with required semi-annual reports to the City. 9 . Bureau shall expend the sum of not less than $35, 000 of the aforementioned $200, 000 on or before December 14, 2003 to develop and fund a program designed to provide funds to organizations which, in the reasonable discretion of Bureau shall contribute to the promotion and advertisement of investment and tourism in the Elgin area. 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 . Bureau shall provide a report to the City on the distribution of these funds, including the names of organizations funded by the program, amounts awarded to individual organizations and a description of the purpose for which the recipient organization received funding. 10 . The term of this agreement shall commence upon the date of its execution and shall expire on December 31, 2003 ; provided, however, that either party hereon may terminate this agreement upon thirty (30) days written notice. 11 . The City of Elgin shall be recognized as a sponsor of the Bureau and shall receive the benefits of sponsorship consistent with the level of support provided. At minimum, the City' s support shall be acknowledged in print materials promoting the organization or event, radio advertising, WEB page information and event program(S) . A logo provided by the City shall be used for this purpose. Three samples of this acknowledgment shall be provided to the City. 12 . Bureau shall provide to City, at no cost, a full page, full color advertising space in each issue of Ventures magazine in 2003 to be used at the City' s discretion. 13 . Bureau shall actively participate in the marketing of City- sponsored events including, but not limited to the Fine Arts Festival, Fox Trot and Four Bridges Bike Race. 14 . In the event this agreement is terminated by the Bureau for any reason prior to December 31, 2003, 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. 15 . 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, 2003 , Bureau shall be allowed to retain all unexpended funds for promotions and advertisement established prior to notice of termination under paragraphs 8 and 9 above. 16 . 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. 17 . 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 . 18 . This agreement shall not be construed so as to create a partnership, joint venture, agency or employment relationship between the parties hereto. 19. 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. The provisions of this paragraph shall survive the expiration and /or termination of this agreement . CITY OF ELGIN BY .*..r. Date Attest : City Clerk ELGIN AREA CONVENTION AND VISITO ,• B 'rE•U By - �r I • Date �-� Y - � /