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Purch of Services - Chamber ComMEMORANDUM May 14,2002 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Purchase of Service Agreement - Dubuque Area Chamber of Commerce Convention and Visitors Bureau During the Fiscal Year 2003 budget process, the Mayor and City Council provided $475,756 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 $475,756. This amount represents fifty percent of the hotel/motel tax received by the City for the period of October 1, 2000, through September 30, 2001, as approved by the City Council during the Fiscal Year 2003 budget process. The agreement has been expanded (Exhibit B) this year to provide for greater City Council involvement in review of the marketing plan and budgeting process for the use of these City funds. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/ksf Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager MEMORANDUM May 14, 2002 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 2003. The agreement has been expanded to include the annual marketing plan, City Council budget process, and the three-year review process for the Marketing Plan (Exhibit B). The adopted Fiscal Year 2003 operating budget provides a payment of $475,756. This amount represents 50 percent of the hotel/motel tax received by the City for the period of October 1, 2000 through September 30, 2001. Payment will be made to the Chamber of Commerce in four equal quarterly installments of $118,939.00. 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 2002, 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 tourist 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. The process and schedule for development of the annual and three-year review of the Convention and Visitors Bureau Marketing Plan and budget is described in Exhibit B. 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. d) It was agreed, by the Chamber of Commerce, Dubuque County Historic Society, Platinum Hospitality and the City of Dubuque, that the America's River Committee will be formed to help establish general marketing guidelines, target markets and co-op opportunities for the America's River Project for implementation by the Convention and Visitors Bureau. It firmly establishes the Convention and Visitors Bureau as the lead promotional entity for the America's River Project as well as being the lead marketing agent for the entire destination. e) Provide City Council with an annual report on the activities of the CVB including financial statements and breakdown of expenditures by program area. f) The Dubuque Area Chamber of Commerce has agreed to participate in the formation of a not-for-profit Corporation to further the goals of the America's River Project. 2. Time of Performance The services of the Agency are to commence on July 1, 2002, and terminate June 30, 2003. 3. Compensation a) The City will pay to the Agency the amount of $475,756. This amount represents fifty percent (50%) of the hotel and motel tax received by the City for the period of October 1, 2000, through September 30, 2001. 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 - $118,939.00; Second Quarter - $118,939.00; Third Quarter-$118,939.00; and Fourth Quarter - $118,939.00. 4. Audit and Evaluation a) 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. b) The Agency shall provide the City quarterly reports at a regularly scheduled City Council meeting detailing its activities beginning with the quarter ending September 30, 2001. Accompanying each such report shall be 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. 2 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 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. 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 3 Agency of such termination at least five (5) days before the effective date of such termination. 8. Assiç¡nability The Agency shall not ass~gt1any it1tere_stin_~his- Agreement al1<:1shalll1~_tran~erm any interest in the Agreement without prior written approval from the City. DUBUQUE AREA CHAMBER OF COMMERCE 4 Exhibit A Convention and Visitors Bureau Three Year Plan FY 2000-2003 The Convention and Visitors Bureau will achieve a $20 million increase in visitor spending by FY 2003. Objective A: Develop leisure business to Dubuque targeting group tour business regionally and nationally with an emphasis on America's River. Strategy 1: Target group leaders and tour operators in Iowa, Illinois, Wisconsin and Minnesota featuring Americas River. Strategy 2: Develop group services to package everything the area offers. Strategy 3: Redevelop past business. Strategy 4: Provide group leaders and tour operators with promotional materials. Strategy 5: Monitor industry trends on traveler spending patterns and areas of interest. Objective B: Develop leisure business to generate a 5% increase in visitor spending to Dubuque by targeting individual travelers in Chicago, Milwaukee, and Des Moines. Strategy 1: Place print advertising in magazines and newspapers to generate inquiries in target markets. 2001/2002/2003 (America's River) Strategy 2: Place Internet advertising in travel publications and newspapers to generate inquiries. 2001/2002/2003 (America's River) Strategy 3: Attend Travel Shows in Chicago and Milwaukee. 2001/2002 Strategy 4: Maintain website information to allow access to visitor information 24 hours a day. Strategy 5: Offer cooperative advertising opportunities to members whenever possible to maximize the advertising buys and exposure. 2001/2002/2003 (America's l~iver) Strategy 6: Monitor industry trends in consumer spending patterns and areas of interest. Strategy 7: Assist visitors at year round Iowa Welcome Center. Strategy 8: Provide visitor guide as a fulfillment piece for ad placements and as a companion piece for group and convention marketing. CONVENTION MARKETING Objective C: Market Dubuque as a meeting and convention destination in Chicago, Des Moines, Milwaukee, Madison and Rockford and implement a successful comprehensive marketing plan for the Convention Marketing Department that incorporates America's River. Strategy 1: Maintain focus on small to medium size meetings. Strategy 2: Aggressively market to national, state and regional conventions in the 400+ delegate range. Strategy 3: Focus on the Hometown Hero Campaign as a main source of leads for meeting and convention business. Strategy 4: Redevelop past business. Strategy 5: Recapture lost business. Strategy 6: Maintain convention services to package everything the area offers. Strategy 7: Continue to provide follow-up materials to meeting planners. Strategy 8: Maintain sports marketing as facilities allow. Strategy 9: Monitor delegate spending patterns and areas of interest. Strategy 10: Update competitive analysis. Objective D: Increase the number of out of town travelers attending festivals and events through marketing. Strategy 1: Provide ongoing media relations assistance to festival organizers. Strategy 2: Provide resources to festival and event organizers. Strategy 3: Develop support materials to distribute to visitors. Strategy 4: Continue to look for new opportunities to host events. Objective E: Provide services to film and commercial producers as needed. Strategy 1: Customize fulfillment as requested by production companies. Strategy 2: Set up scouting site visits for production companies. Strategy 3: Service as a clearinghouse when Dubuque area is selected as a film location. The Convention and Visitors Bureau will increase local, regional, national and international awareness of the Dubuque area and America's River by 2003. Objective A: The Hospitality Task Force will provide ongoing customer service training to front line employees in the tourism industry. Strategy 1: Develop a series of training oppommities based on employee needs. Annually Strategy 2: Continually monitor the quality of the visitor experience. Annually Objective B: Implement the final phases of a new wayfinding system for Dubuque. Strategy 1: Obtain IDOT clearance for signage program to proceed. Summer 2001 Strategy 2: Hold stakeholders meeting to review comprehensive draft plan and district sign concepts. Fall 2001 Strategy 3: Implement final design and installation of signs in cooperation with the City of Dubuque. Spring-Fall 2002 Objective C: Promote tourism networking. Strategy 1: Re-instate tourism industry meetings in connection with CVB committee meetings. Strategy 2: Develop and encourage cooperative sales effort. Strategy 3: Encourage business packages and promotions. Objective D: Enlist local residents to become a sales force for tourism. Strategy 1: Expand the Hometown Hero Campaign. Strategy 2: Promote a "Tourist in Your Own Town" campaign. Objective E: Increase awareness utilizing the travel media featuringAmerica's River. Strategy 1: Provide promotional materials to the travel media interested in the Dubuque area. Strategy 2: Provide ongoing information to travel writers and media. Strategy 3: Develop opportunities for national and international media exposure featuring America's River. Strategy 4: Maintain a clipping service and database for tracking of editorial coverage. Stacey/cvb/sue/marketing plan 00-03 short form Exhibit B SCHEDULE FOR ANNUAL AND 3-YEAR REVIEW OF CVB MARKETING PLAN November December Annual Review of Marketing Plan America's River marketing committee submit to CVB Advisory Board suggestions for marketing plan. City receives Hotel/Motel tax figures Annual marketing plan reviewed by CVB staff and Advisory Board Review marketing plan with Chamber of Commerce Board January February CVB holds worksession with City Council second Council meeting in January to review annual marketing plan and annual budget including detailed cost of any goods, services, overhead, or office space purchased from the Chamber of Commerce. City Council provides direction for any modifications. CVB boards modifies plan to incorporate City Council input. Chamber of Commerce Board review and approve plan. CVB present plan to City Council during Purchase of Services budget hearing. 3-Year Review of Marketing Plan October CVB holds planning session with community and tourism stakeholders. Purpose of session is to conduct SWOT analysis of current plan, identify key issues and themes and break into focus groups to further develop steps under each of the key issues. Oct- Nov Individual focus groups conduct series of meetings to review key issues and actions steps needed. This information is submitted to CVB staff for summary and distribution to CVB advisory board. December Representatives from each focus group participate with CVB staff and Advisory board at annual marketing plan review meeting. Dec - Feb Follow annual marketing review schedule as identified above.