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98-48 Resolution No. 98-48 RESOLUTION AUTHORIZING EXECUTION OF AN 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 marketing and promotion support of the tourism and convention industries in and around Elgin, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 25, 1998 Adopted: February 25, 1998 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk • AGREEMENT WHEREAS, the City of Elgin (hereinafter referred to as "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 Elgin Area Convention and Visitors Bureau (hereinafter referred to as "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 semi-annual installments of $100,000 each. 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 Budget Officer. One report and summary shall be submitted on or before June 15, 1998 and one report on or before December 15, 1998. 4. Bureau shall provide City's Budget Officer with any such further financial information it may have upon the written request of the City Budget Officer. 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, 1998 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, 1998 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. • 8. The term of this agreement shall commence on January 1, 1998, and shall expire on December 31, 1998; 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, 1998, Bureau shall refund to City all unexpended funds provided to Bureau by City within fifteen (15) days of the date of said termination, and 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 prior to December 31, 1998, 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, 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. CITY OF ELGIN By City ag 3/.,y j2' • Attest: -Clerk ELGIN AREA CONVENTION AND VISITOR&,BUREAU By 4/Lenz . , 0 Its _ � d \�y:3Fi±4,c. �" Agenda Item No. City of Elgin g oiritLD1°' February 53, 1998 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 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 apik 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 visiting nearby theatres, restaurants and attractions . The development agreement between the City and the Elgin Riverboat Resort re- quires space at the Pavilion be available to take advantage of this major port of entry for visitors . Staffing at the Visitors ' Center in the Pavilion with people who are familiar with the community is critical . The impression on visitors of having a friendly, helpful information resource on restaurants, lodging, neighborhoods and other attractions in Elgin can only be accomplished with helpful, knowledgeable individuals . 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 . 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 . rft. - The Bureau is to provide semi-annual activity reports . PSA - Elgin Area Convention and Visitors Bureau February 5, 1997 Page 2 - The City has the right to request any additional informa- tion as it feels necessary to verify the Bureau' s perfor- mance . - 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 part- nerships 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 -- on Elgin and the immedi- ate 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 Auditorium, the New Century Partnership for Elgin, and the Parks and Recreation Depart- ment 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, 1997 . - The agreement can be terminated by either party with 30 days written notice . 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. Of FINANCIAL IMPACT Funding for the proposed agreement in the amount of $200, 000 was included in the 1998 Budget in the Elgin Riverboat Fund, account number 275-0000-791 . 80-03, Contributions - Elgin Area Convention and Visitors Bureau. The 1998 Budget also includes a portion (43 . 75%) of hotel/motel tax receipts collected, budgeted at $124, 000, to fund the PSA - Elgin Area Convention and Visitors Bureau February 5, 1997 Page 3 Bureau' s operations (account number 010-1902-709 . 80-03) . The tax plus the PSA provides total support of $324 , 000 . ^� LEGAL IMPACT 4 G/ 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 contin- ue with the Elgin Area Convention and Visitors Bureau and be approved for a term of one year. Respectfully submitted, 7q/c Ate ?561411141 es R. Nowicki ' nance Director J•4re . Parker City Manager JRN/pm Attachment rft.