HomeMy WebLinkAbout08-207 Resolution No. 08-207
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,City Manager,and Diane Robertson, 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: September 10, 2008
Adopted: September 10, 2008
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
PURCHASE OF SERVICE AGREEMENT r
THIS AGREEMENT is made and entered into this 167stday of Q,gvl�.-o,t , 2008, by
and between the CITY OF ELGIN, Illinois a municipal corporation hereinafter referred to as the
P � (
"City"),and Elgin Area Convention and Visitors Bureau,a not-for-profit corporation organized and
existing under the laws of the State of Illinois(hereinafter referred to as the"Service Provider").
WHEREAS,the City has determined that it would serve a beneficial public purpose to enter
into an agreement with the Service Provider for the Service Provider to provide certain contract
services as described in this agreement; and
WHEREAS, the Service Provider represents that it has the necessary expertise and
experience to furnish the Subject Services upon the terms and conditions set forth in this agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein,the sufficiency of which is hereby acknowledged,the parties hereto hereby agree as follows:
1. The Service Provider shall provide all of the services pursuant to the terms and
conditions and on the dates and times as described in the document entitled Elgin Area Convention
and Visitors Bureau-Scope of Services for 2008 Purchase of Service Agreement,attached hereto as
Exhibit A and made a part hereof(such services including the terms,conditions,dates and times are
hereinafter referred to as the"Subject Services"). In the event of any conflict between the provisions
of this agreement and the provisions in Exhibit A, the provisions of this agreement shall control.
The Service Provider represents and warrants that the Service Provider has the skills and knowledge
necessary to conduct the Subject Services provided for in Exhibit A and that the Subject Services set
forth in Exhibit A are integral parts of this agreement and may not be modified,amended or altered
except by a written amendment to this agreement agreed to and executed by both parties hereto.
2. The Service Provider shall address all inquiries and requests made pursuant to this
agreement to the Assistant City Manager of the City or his designee.
3. In connection with the Subject Services to be performed on other than City
properties,the Service Provider warrants and agrees to maintain all facilities and equipment used in
the performing of the Subject Services in a clean,sanitary and safe condition and free from defects
of every kind whatsoever. Service Provider agrees and warrants that the Service Provider will
periodically inspect all of such facilities and equipment for such purposes. Service Provider also
warrants that the Service Provider and the Service Provider's facilities and equipment used in the
performing of the Subject Services are not now, nor shall be during the term of this agreement in
violation of any health,building, fire or zoning code or regulation or other applicable requirements
of law. In connection with the Subject Services on properties owned or controlled by the City,
Service Provider agrees and warrants to use, and to cause persons participating in the Subject
Services to use,through proper supervision and control,all facilities with due care,and to report all
defects in or damage to any such facilities, and the cause thereof, if known, immediately to the
Assistant City Manager of the City.
4. The City shall reimburse the Service Provider for the Subject Services under this
agreement the total amount of Seventy Three Thousand Dollars($73,000).Such payment by the City
to the Service Provider shall be made in two installments of Thirty-six Thousand Five Hundred
Dollars($36,500). The first aforementioned installment payment shall be made within 30 days of
the date of this agreement. The second aforementioned installment payment shall be made on or
before October 31, 2008. However, the second installment payment shall not be made prior to 8
days after the Service Provider's submission ofthe budget document and audited financial statement
documents referred to in paragraph 6 of this agreement.
5. The Service Provider shall apply the monies to be paid by the City to the Service
Provider pursuant to the proceeding paragraph hereof solely to operating expenses such as staff
salary and benefits, meeting expenses, and expenses associated with the Subject Services to be
provided by the Service Provider pursuant to this agreement.
6. The Service Provider shall complete, maintain and submit to the Assistant City
Manager of the City, or his designee, any and all records,reports and forms relating to the Subject
Services in this agreement as requested by the City. Without limiting the foregoing, the parties
further agree as follows:
A. The Service Provider shall provide a budget to the City which shall
reflect the projected distribution of funds received from the City
pursuant to this agreement during the term of this agreement. The
budget shall be submitted to the Assistant City Manager of the City
prior to any payment by the City.
B. The Service Provider shall provide written performance reports
detailing the disbursements of the monies to be paid by the City to the
Service Provider pursuant to this agreement. The reports shall be
provided to the City quarterly on March 31, 2008; June 30, 2008;
September 30, 2008; and December 31, 2008.
C. The City has the right to review all accounting records of the Service
Provider related to the use of the monies to be paid by the City to the
Service Provider pursuant to this agreement upon 72 hours advance
notice from the City to the Service Provider.
D. The Service Provider shall have an audit performed on its financial
statements for the year ending June 30, 2007. The audit must be
performed by an independent certified public accountant recognized in
good standing by the American Institute of Certified Public
Accountants and licensed in the State of Illinois.The Service Provider
shall provide the City with two copies of the said audited financial
statement along with the management letter and any other
correspondence related to internal control matters on or before July 15,
2008. These statements shall be submitted to the Assistant City
Manager at City Hall, 150 Dexter Court,Elgin,Illinois 60120-5555.
-2-
7. In the event this agreement is terminated, or in the event the Subject Services for
which the City funds provided herein are to be applied are discontinued, or the Service Provider
ceases its operations prior to December 31,2008,the Service Provider shall refund to the City on a
prorated per diem basis the funds paid hereunder for the portion of the year remaining after any such
termination or for the portion of the year the Subject Services were not conducted.
8. Service Provider agrees and warrants that notwithstanding any other provision of this
Agreement that in connection with the performance and/or providing of the Subject Services in this
Agreement that the Service Provider shall comply with all applicable federal, state, city and other
requirements of law,including,but not limited to,any applicable requirements regarding prevailing
wages, minimum wage, workplace safety and legal status of employees. Without limiting the
foregoing, Service Provider hereby certifies, represents and warrants to the City that all of the
Service Provider's employees and/or agents who will be performing and/or providing the Subject
Services with respect to this Agreement shall be legal residents of the United States. Service
Provider shall also at its expense secure all permits and licenses,pay all charges and fees and give
all notices necessary and incident to the due and lawful performance of the Subject Services to be
provided for in this Agreement. Service Provider shall also perform and provide the Subject
Services with due care. The City shall have the right to audit any records in the possession of
control of the Service Provider to determine the Service Provider's compliance with the provisions
of this section. In the event the City proceeds with such an audit,the Service Provider shall make
available to the City the Service Provider's relevant records at no cost to the City.
9. The City of Elgin shall be recognized as a sponsor of the Service Provider and shall
receive the benefits of sponsorship consistent with the level of support provided in this agreement.
At a minimum,the City's support shall be acknowledged on all print materials promoting the Service
Provider's organization, press releases, radio advertising, web page information and event
program(s) through the following mandatory funding identification statement: "Funding for the
organization is provided in part through the City of Elgin". Three samples of this acknowledgement
shall be provided to the City. A logo provided by the City to the Service Provider shall be used for
this purpose.
10. In all printed materials in which a City seal or logo is deemed appropriate,approval
by the Public Information Officer of the City is required prior to printing.
11. The term of this agreement shall commence from the date of the execution hereof and
continue through December 31, 2008.
12. This agreement shall not be construed so as to create a partnership,joint venture,
employment or other agency relationship between the parties hereto. Service Provider understands
and agrees that the relationship of the Service Provider to the City arising out of this agreement shall
be that of an independent contractor. It is expressly agreed and understood that the Service Provider
and the Service Provider's officers,employees and agents are not employees of the City and are not
entitled to any benefits or insurance provided to employees of the City.
-3-
13. If either party violates or breaches any term of this agreement, such violation or
breach shall be deemed to constitute a default, and the other party has the right to seek
administrative contractual or legal remedies as may be suitable to the violation or breach; and, in
addition,if either party by reason of any default,fails to within fifteen(15)days after notice thereof
by the other party to comply with the conditions of the agreement,the other party may terminate this
agreement. Notwithstanding the foregoing, or anything else to the contrary in this agreement, no
action shall be commenced by the Service Provider against the City for monetary damages. In the
event any legal action is brought by the City for the enforcement of any of the obligations of the
Service Provider in this agreement and the City is the prevailing party in such action,the City shall
also be entitled to recover from the Service Provider reasonable interest and reasonable attorney's
fees.
14. Notwithstanding any other provision hereof,the City may terminate this agreement at
any time upon thirty (30) days prior written notice to the Service Provider. In the event this
agreement is so terminated,the Service Provider shall be paid for services actually performed,and
reimbursable expenses actually incurred prior to termination,except that reimbursement shall not in
any event exceed the total amount set forth under paragraph 4 above. Additionally,in the event this
agreement is so terminated, the Service Provider shall immediately cease the expenditure of any
funds paid to the Service Provider by the City and shall refund to the City any unearned or
unexpended funds.
15. To the fullest extent permitted by law,Service Provider agrees to indemnify,defend
and hold harmless the City, its officers, employees, agents, boards and commissions from and
against any and all claims,suits,judgments,costs,attorney's fees,damages or other relief,including
but not limited to worker's compensation claims, in any way resulting from or arising out of
negligent actions or omissions of the Service Provider in connection herewith,including negligence
or omissions or agents of the Service Provider arising out of the performance of this agreement
and/or the Subject Services. 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 any expiration and/or termination of this agreement.
16. The Service Provider shall provide,pay for and maintain in effect,during the term of
this agreement,comprehensive automobile liability insurance covering all owned, non-owned and
hired motor vehicles used in connection with the Subject Services with limits of not less than
$500,000 per occurrence for damages to persons or property. The Service Provider shall also
provide, pay for and maintain in effect, during the term of this agreement, worker's compensation
insurance in amounts required under the laws of the State of Illinois. At the request of the City the
Service Provider shall provide to the City certificates of insurance regarding the insurance required
in this paragraph.
17. No official, director, officer, agent or employee of the City shall be charged
personally or held contractually liable under any term or provision of this Agreement or because of
their execution, approval or attempted execution of this Agreement.
-4-
18. In all hiring or employment made possible or resulting from this Agreement, there
shall be no discrimination against any employee or applicant for employment because of sex,age,
race,color,creed,national origin,marital status,of the presence of any sensory,mental or physical
handicap,unless based upon a bona fide occupational qualification,and this requirement shall apply
to,but not be limited to,the following:employment advertising,layoff or termination,rates of pay
or other forms of compensation and selection for training, including apprenticeship.
19. No person shall be denied or subjected to discrimination in receipt of the benefit of
any services or activities made possible by or resulting from this Agreement on the grounds of sex,
race,color,creed,national origin,age except minimum age and retirement provisions,marital status
or the presence of any sensory,mental or physical handicap. Any violation ofthis provision shall be
considered a violation of a material provision of this Agreement and shall be grounds for
cancellation, termination or suspension, in whole or in part, of the Agreement by the City.
20. The parties intend and agreed that,if any paragraph,sub-paragraph,phrase,clause or
other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise
unenforceable, all other portions of this Agreement shall remain in full force and effect.
21. This Agreement and its exhibits constitutes the entire Agreement of the parties on the
subject matter hereof and may not be changed,modified,discharged or extended except by written
amendment duly executed by the parties. Each party agrees that no representations or warranties
shall be binding upon the other party unless expressed in writing herein or in a duly executed
amendment hereof.
22. This Agreement shall be deemed to have been made in, and shall be construed in
accordance with 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.
23. The Service Provider certifies hereby that it is not barred from bidding on a public
contact as a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute
regarding bid rigging.
24. As a condition of this contract, the Service Provider shall have written sexual
harassment policies that include, at a minimum,the following information:
A.the illegality of sexual harassment;
B. the definition of sexual harassment under state law;
C. a description of sexual harassment, utilizing examples;
D.the vendor's internal complaint process including penalties;
E. the legal recourse, investigative and complaint process available through the Illinois
Department of Human Rights, and the Illinois Human Rights Commission;
F. directions on how to contact the department and commission;
G.protection against retaliation as provided by Section 6-101 of the Human Rights Act.
A copy of the policies must be provided to the Department of Human Rights upon
-5-
request(775 ILCS 5/2-105).
25. All notices,reports and documents required under this Agreement shall be in writing
and shall be mailed by First Class Mail, postage prepaid, addressed as follows:
As to the City: As to Service Provider:
City of Elgin EACVB
150 Dexter Court 77 Riverside Drive
Elgin, IL 60120-5555 Elgin, IL 60120
Attention: Sean Stegall Attention: Kimberly Bless
Assistant City Manager President and CEO
With a copy to:
William A. Cogley, Corporation Counsel
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
26. This agreement is and shall be deemed to construe to be a joint and collective work
product of the City and the Service Provider and, as such, this agreement shall not be construed
against the other party, as the otherwise purported drafter of same, by any court of competent
jurisdiction in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, of the
terms and provisions contained herein.
27. This agreement shall be binding on the parties hereto and their respective successors
and permitted assigns. This agreement and the obligations herein may not be assigned by the
Service Provider without the express written consent of the City which consent may be withheld at
the sole discretion of the City.
IN WITNESS WHEREOF,the undersigned have entered into executed this agreement on the
date and year first written above.
CITY OF ELGIN, a municipal Elgin Area Convention and Visitors Bureau
corpor. ion
By: - _ .1.; ;4 Ljid
City Ma,agar
Attest:
City Clerk
F:\Legal Dept\Agreement\PSA-DRAFT FORM 2-08 WAC.doc
-6-
EXHIBIT A
ELGIN AREA CONVENTION AND VISITORS BUREAU-SCOPE OF SERVICES FOR
2008 PURCHASE OF SERVICE AGREEMENT
1 . 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.
2 . Bureau shall conduct good faith efforts to obtain
additional funding from other sources for its operations and report
such efforts to City.
3 . Bureau shall provide to City, at no cost, a full page,
full color advertising space in each issue of the Visitors Guide in
2008 to be used at the City' s discretion.
4 . The Bureau shall feature the City of Elgin events, as
provided by the City, in the 2008 Visitors Guide and on the
Bureau' s web site.
5 . The Bureau will provide a quarterly banner ad promoting
the City facilities and recreational and cultural events in the
cultural section of their redesigned web site that would link
directly to the City' s website.
6. Bureau shall actively participate in the marketing of
City-sponsored events including, but not limited to the FoxFire
Fest, and Fox Trot.
7 . Bureau shall provide complimentary partnerships, in lieu
of dues, to the following City facilities, but not limited to: The
City of Elgin, The Centre, The Hemmens Cultural Center, The Elgin
Sports Complex and the Highlands of Elgin Golf Course.
8 . Bureau shall feature and provide links on the Bureau' s
web site to the City of Elgin' s web site for the following items
but not limited to the City of Elgin, The Centre of Elgin, The
Hemmens Cultural Center, The Elgin Sports Complex and the Highlands
of Elgin Golf Course .
9 . Bureau shall feature the City as a sponsoring partner in
all e-newsletters .
-7-
10 . Bureau shall promote the Elgin Sports Complex, the Centre
of Elgin, and the Highlands of Elgin Golf Course at all regional,
statewide and national sports tradeshows to attract new sports
tournaments for Elgin.
11 . Bureau shall promote the Centre of Elgin and Hemmens
Cultural Center at regional, statewide and national tradeshows as
locations for conferences and seminars .
-9-
August 21, 2008 NORTHWEST
TO: Mayor and Members of the City Council
FROM: Olufemi Folarin, City Manager
RuthAnne K. Hall, Management Analyst
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 City Council approve the Purchase of Service Agreement with the
Elgin Area Convention and Visitors Bureau in the amount of$73,000.
BACKGROUND
The mission of the Elgin Area Convention and Visitors Bureau (EACVB) is to promote
Chicagoland's Northern Fox River Valley as a premier visitor destination generating business for
our partners in the hospitality industry. The Bureau helps to create business for the 13
communities they serve by promoting Chicagoland's northern Fox River Valley as an overnight
destination and by increasing visitor awareness and expenditures for the maximum economic
benefit of our tourism partners.
Of the 13 communities served by the EACVB, only three have hotels. Two of the three
communities served pay a percentage of their hotel/motel tax: the City of Elgin (44 percent of
$489,835 or $215,500 in 2007) and the Village of Hampshire at 60 percent. The remaining
community, the Village of West Dundee, currently pays a flat fee of $10,000, however, their
contribution will be renegotiated after November of 2009 when the contract with their hotel
properties expire.
The EACVB was directly responsible for over $5,000,000 in sports bookings alone to the area in
2007. As an example of the direct impact to Elgin, the EACVB booked two large softball
tournaments in 2007 including the Senior Softball Eastern National Championships in August
Purchase of Service Agreement with Elgin Area Convention and Visitors Bureau
August 21,2008
Page 2
and the American Fastpitch Association Girls' 14 and under tournament in July. These
tournaments alone represented over$615,000 in economic impact.
It should be noted that the Bureau has complied with all the requirements for the prior year
Purchase of Service Agreement.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
Funds are budgeted ($73,000) and available ($73,000) in Riverboat Fund, account number 275-
0000-791.80-03, to enter into this agreement with the Elgin Area Convention and Visitors
Bureau at a cost of$73,000. The Bureau also receives a major portion of the Hotel/Motel Tax,
which in 2007, amounted to an additional 44 percent of$489,835 or$215,500). The Purchase of
Services Agreement amount of$73,000 is consistent with the 2006 and 2007 agreements.
LEGAL IMPACT
None
ALTERNATIVES
1. The City Council may choose to approve the Purchase of Service Agreement with the
Elgin Area Convention and Visitors Bureau as presented.
2. The City Council may choose to modify the Purchase of Service Agreement.
3. The City Council may choose to reject the Purchase of Service Agreement with the Elgin
Area Convention and Visitors Bureau as presented.
Respectfully submitted for Council consideration.
RKH
Attachment