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Purch - Services, Chamber & CVBCITY OF DUBUQUE, IOWA MEMORANDUM June 5, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Purchase of Service Agreement - Dubuque Area Chamber of Commerce Convention and Visitors Bureau During the Fiscal Year 2002 budget process, the Mayor and City Council provided $497,875 for a Purchase of Service Agreement with Dubuque Area Chamber of Commerce Convention and Visitors Bureau. Administrative Services Manager Pauline Joyce is recommending that a Purchase of Services Agreement be executed with the Dubuque Area Chamber of Commerce Convention and Visitors Bureau in the amount of $497,875. This amount represents fifty percent of the hotel/motel tax received by the City for the period of October 1, 1999, through September 30, 2000, as approved by the City Council during the Fiscal Year 2002 budget process. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/ksf Attachment CC: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager CITY OF DUBUQUE, IOWA MEMORANDUM June 5, 2001 TO: Michael C. Van Milligen, City Manager FROM: Pauline Joyce, Administrative Services Manager SUBJECT: Purchase of Service Agreement- Dubuque Area Chamber of Commerce Convention and Visitors Bureau Attached for City Council approval is the Purchase of Service Agreement with the Dubuque Area Chamber of Commerce for the City's financial support of the Convention and Visitors Bureau for Fiscal Year 2002. The adopted Fiscal Year 2021 operating budget provides a payment of $$497,875. This amount represents 50 percent of the hotel/motel tax received by the City for the period of October 1, 1999 through September 30, 2000. Payment will be made to the Chamber of Commerce in four equal quarterly installments of $124,468.75. It is my recommendation that the City Council approve the attached Purchase of Service Agreement with the Dubuque Area Chamber of Commerce and authorize the Mayor to execute the contract on behalf of the City. PJ/ksf Attachment CITY OF DUBUQUE, IOWA, AND DUBUQUE AREA CHAMBER OF COMMERCE PURCHASE OF SERVICES AGREEMENT THIS AGREEMENT. entered into this 1st day of July 2001, by and between the City of Dubuque, Iowa, herein referred to as the "City" and the Dubuque Area Chamber of Commerce. herein referred to as the "Agency." WHEREAS, the City, as the recipient of certain hotel and motel taxes is permitted by Chapter 422A of the Code of Iowa to spend such tax receipts for the promotion and encouragement of tourist and convention business in the City of Dubuque; and WHEREAS, the City has agreed to provide certain financial assistance in an amount equivalent to fifty percent (50%) of the hotel/motel tax to enable the Agency to carry out such tourist and convention development on behalf of the City; and WHEREAS, the Agency represents itself as technically and professionally qualified to provide services to effectively promote and develop the toudst and convention business for the City. NOW THEREFORE, the parties hereto agree as follows: 1. Scope of Services a) The Agency shall continue to maintain a Convention and Visitors Bureau Division to undertake such services that are necessary and requisite to carry out a Program of Work as described in Exhibit A, attached hereto and made a part hereof. b) The Agency represents that it will retain competent and qualified staff under appropriate supervision to plan and implement the Program of Work in an efficient and timely manner. c) The Agency agrees that it will maintain a Tourist Information Center throughout the entire year. 2. Time of Performance The services of the Agency are to commence on July 1, 2001, and terminate June 30, 2002. 3. Compensation a) The City will pay to the Agency the amount of $$497,875. This amount represents fifty percent (50%) of the hotel and motel tax received by the City for the period of October 1, 1999, through September 30, 2000. Such sum shall constitute complete compensation for all services to be rendered including personnel costs, travel, printing and publications, and all other expenses. b) Such sum shall be payable to the Agency in four quarterly installments upon receipt of a requisition for such payment. Such payments to be due and payable as follows: First Quarter - $124,468.75; Second Quarter- $124,468.75; Third Quarter - $124,468.75; and Fourth Quarter- $124,468.75. 4. Audit and Evaluation a) b) Inasmuch as the funds to be provided the Agency by the City are public funds, the Agency agrees that it will maintain books of account in accordance with generally accepted accounting standards together with necessary documentation to support all expenditures. The Agency shall provide the City quarterly reports at a regularly scheduled City Council meeting detailin§ its activities beginning with the quarter ending September 30, 2000. Accompanying each such report shall De copies of studies, brochures, and other documents, which may be produced to support and/or otherwise promote the work program of the Convention and Visitors Bureau Division. c) To assist in coordinating the activities of the Convention and Visitors Bureau Division with the City, not less than one member of the Dubuque City Council shall be appointed to the Convention and Visitors Bureau Division. d) Copies of minutes of all meetings shall be filed with the City Clerk of the City within ten (10) days after such meeting. 5. Discrimination In carrying out its program, the Agency shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, age, national origin, religion, or disability. The Agency shall take affirmative action to ensure that applicants for employment are employed and that employees are treated during employment without regard to race, creed, color, sex, age, national origin, religion, or disability. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Agency agrees and will undertake whatever affirmative measures are necessary so that no person shall be excluded from participation in, be denied the 2 benefits of, or be subjected to discrimination under any program or activities funded in whole or in part with any of the funds made available to the Agency under the terms of this Agreement because of race, creed, color, religion, national origin, sex, age, degree of handicap or disability. 6. Interest of Members, Officers, or Employees of the City of Dubuque; Members of the Dubuque City Council; or Other Public Officials No member, officer, or employee of the City or their designees or agents; no member of the Dubuque City Council; and no other public official of the City who exercises any function or responsibilities with respect to the program during his tenure shall have any interest, direct or indirect, in this contract or the proceeds thereof for work to be performed in connection with the program assisted under this Agreement. 7. Termination of Contract a) This contract may be terminated by either party by giving the other party a written, ninety (90) day notice of such termination or upon such other terms as may be mutually acceptable. b) If, through any cause, the Agency shall fail to fulfill in a timely and proper manner its obligations under this Agreement or if the Agency shall violate any of the covenants, agreements, or stipulations of this Agreement, the City shall have the right to terminate this Agreement by giving written notice to the Agency of such termination at least five (5) days before the effective date of such termination. 8. Assignability The Agency shall not assign any interest in this Agreement and shall not transfer any interest in the Agreement without prior written approval from the City. WITNESSED: /s/ Jeanne F. SChneider, City Clerk CITY OF DUBUQUE /s/ Terrance M. Duggan, Mayor DUBUQUE AREA CHAMBER OF COMMERCE J. Steven Horman President Mike Coyle Chairman of the Board EXHIBIT A PURCHASE OF SERVICES AGREEMENT DUBUQUE AREA CHAMBER OF COMMERCE CONVENTION AND VISITORS BUREAU GOAL: To increase economic impact and related employment in the Dubuque area generated through visitor expenditures. Objective: Market Dubuque as a mid-week and off-season destination. Maintain marketing efforts for a weekend and prime season. Conventions 1. Target small to medium size conventions (25 to 400 delegates). 2. Market to tri-state associations, regional meetings and church groups with local contacts. Promote trade shows related to local corporate businesses with focus on Five Flags. 4. Promote reunions and tournaments. 5. Attend monthly Iowa Society of Association Executives, Iowa Chapter of Meeting Planners International, and the Iowa Convention and Visitors Bureau Association meetings. Aid groups in convention bids. 7. Coordinate convention services offered to planners regarding registration, name badges, typewriter, giveaways, spouse programs, transportation, media releases, etc. 8. Enlist Dubuque Ambassadors, RSVP and other organizations for registration, greetings and promotional services for conventions and special events. 9. Direct efforts of Conventions Promotions Committee with long-range convention planning. 10. Plan and implement sales blitzes to potential market areas. Group Marketing 1. Expand the motor coach and tour markets to the Dubuque area by attending selective tour operator associations and group leader shows and following up on potential leads. 2. Plan and implement target sales blitzes. 3. Update display booth and pictures to attract attention and become more competitive. 4. Continue to be active with Eastern Iowa Tourism Association and Iowa Group Travel Association. 5. Plan and implement a familiarization tour for tour planners. 6. Coordinate marketing efforts with area attractions including Dyersville, Galena, and other Dubuque area attractions. Individual Visitors 1. Target market efforts to upper middle class. 2. Continue to participate in Consumer Travel Shows with cooperation from the attractions and lodging facilities. 3. Continue promotional efforts with Galena Convention and Visitors Bureau and Dyersville Area Chamber of Commerce. 4. Provide fulfillment materials to all individual inquiries. Marketing Tools 1. Maintain quality and publish quantities of visitor guides, group tour manuals and meeting planners guides. 2. Maintain co-op effort on slides and photographs from local attractions. 3. Provide giveaways (buttons, name badges, bags, etc.) 4. Distribute new video on Dubuque to use in promoting area. Local Awareness and Participation 1. Speak to local organizations regarding the Bureau's role in the community. 2. Lobby to state and national legislators on the impact and importance of the tourism industry. 3. Develop news releases for all Bureau related activities and developments. 4. Encourage and take positions on issues that will affect the Dubuque tourism industry. 5. Work cooperatively to promote Dubuque with tri-state, state and regional organizations. 6. Assist travel writers and media with media kits and familiarization tours. 7. Provide support of the riverfront development study. 8. Coordinate Dubuque Film Bureau for potential film projects to the community. Objective: Assist visitors with information about Dubuque. Dubuque Tourist Information 1. Continue to operate the Tourist Information Center in the Iowa Welcome Center. 2. Maintain tourist information at the Dubuque Regional Airport, Dubuque Greyhound Park, Dyersville Area Chamber of Commerce and the Silver Eagle Casino Boat pavilion. Objective: increase annual visitation to Dubuque. Development 1. Continue to research and recruit additional attractions to Dubuque area through the Attractions Development Committee. Promote more development of winter activities: snowmobiling, cross country skiing, ice fishing, Iowa Winter Games, etc. Promote the romantic appeal of Dubuque, especially the bed and breakfast concept. 4. Encourage the development of natural resource attractions: camping, canoeing, fishing, riverboat development, houseboat rentals, boat rentals, fishing guides. biking, farm vacations, hunting, etc. 5. Encourage the development for family attractions. Obiective: To educate tourism related businesses on the importance of hospitality and travel dollar impact. Hospitality Awareness 1. Hold a series of tourism service training programs. 2. Survey visitors to the quality of hospitality they received while visiting Dubuque area. Obiective: Establish a sound financial budget for an effective marketing program that allows the Bureau to accomplish its goals. Funding 1. Generate $1,000 of revenue through specialty sales items. 2. Secure governmental funding. 3. Continue co-op advertising program with attractions and hotels. 4. Investigate other avenues of funding.