03-54 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 - � /