04-119 '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
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TO: Mayor and Members of the City Council
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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 ��