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Home My WebLink About04-119 'I . Resolution No. 04-119 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 David M.Dorgan,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: May 12, 2004 Adopted: May 12, 2004 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk `` City of E I gi I Cl Agenda Item No. 4„:4- ��i rED Fk" E ¢ w April 23, 2004 L G TO: Mayor and Members of the City Council N FROM: David M. Dorgan, City Manager /9/111 RuthAnne K. Hall,Management Analyst NEIGHBORHOOD VITALITY SUBJECT: Purchase of Service Agreement with 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 to consider a Purchase of Service Agreement with the Elgin Area Convention and Visitors Bureau. RECOMMENDATION It is recommended that the Purchase of Service Agreement with the Elgin Area Convention & rik Visitors Bureau in the amount of$100,000 be approved as presented. 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. The proceeds from 2003 were $181,540.00. Highlights of the proposed agreement include: • 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. • The Bureau will provide one page in the Ventures magazine for use by the City to promote events, attractions, etc. . . .. . Purchase of Service Agreement with Elgin Area Convention and Visitors Bureau April 23,2004 Page 2 • The Bureau will provide a quarterly banner ad promoting the events at the Hemmens Cultural Center in the cultural section of their redesigned web site that would link directly to the City's website. • The Bureau will provide at least one banner ad promoting the Centre of Elgin in the facilities section of their redesigned web site that would link directly to the Centre's website. • • 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 ( FINANCIAL IMPACT `,r There are sufficient funds budgeted and available in the 2004 Budget ($100,000) in the IRi erboat Fund, Contributions, account number 275-0000-791.80-03, to enter into this ag eement with the Bureau. EGAL 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. Respectfully submitted for Council consideration. ellibk RKH PURCHASE OF SERVICE AGREEMENT T is agreement is hereby made and entered into this' 7P day of , 2004 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 mutually acknowledged, the parties hereto agree as follows : 1. Bureau shall provide a budget within 30 days 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 $100, 000 in installments of $50, 000. The first such payment shall be payable within thirty (30) days following execution of this agreement and the second such payment shall be payable on or before July 31, 2004 provided that the first report has been received by the City as required by paragraph 4 herein. 3 . The Bureau shall provide two written reports detailing the disbursement of the aforementioned $100, 000 . These reports shall be provided to the City Council by May 31, 2004 and December 31, 2004, and shall include all program and financial activity. Such reports shall be provided to the City. 4 . The Bureau shall provide the City with financial statements relative to the organization' s total operations. These statements shall be submitted before July 31, 2004 and December 31, 2004 . 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 and report such efforts to City. 7 . The term of this agreement shall commence upon the date of its execution and shall expire on December 31, 2004 ; provided, however, that either party hereon may terminate this agreement upon thirty (30) days written notice. 8 . 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. 9 . Bureau shall provide to City, at no cost, a full page, full color advertising space in each issue of Ventures magazine in 2004 to be used at the City' s discretion. 10 . The Bureau will provide a quarterly banner ad promoting the events at the Hemmens Cultural Center in the cultural section of their redesigned web site that would link directly to the City' s website. 11. The Bureau will provide at least one banner ad promoting the Centre of Elgin in the facilities section of their redesigned web site that would link directly to the Centre' s website. 12 . Bureau shall actively participate in the marketing of City- sponsored events including, but not limited to the Fine Arts Festival, Fox Trot and Soap Box Derby. 13 . In the event this agreement is terminated by the Bureau for any reason prior to December 31, 2004, 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 otherwise be entitled by law. 14 . 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, 2004, 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. In the event of such termination by City, Bureau shall not be entitled to any further payments pursuant to this agreement . 15 . 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. 16 . 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. 17 . This agreement shall not be construed so as to create a partnership, joint venture, agency or employment relationship between the parties hereto. 18 . 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, judgments, 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 ELGIN AREA CONVENTION AND IT'iRS BUREAU Date .5-- / D_ e 4 Oa, • Attest : City Clerk ��