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Purch of Sesrvice Chamber CVB DU~@UE ~ck~ I I I MEMORANDU~ March 1, 2004 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 2005 budget process, the Mayor and City Council provid d $554,705 for a Purchase of Service Agreement with Dubuque Area Chamber 0 Commerce Convention and Visitors Bureau. Budget Director Dawn Lang is recommending that a Purchase of Services Agr ement be executed with the Dubuque Area Chamber of Commerce Convention and Vi itors Bureau in the amount of $554,705. This amount represents 50 percent of the hotel/motel tax received by the City for the period of October 1, 2002, through September 30, 2003, less the first of ten marketing loan debt payments, per ag eement, as approved by the City Council during the Fiscal Year 2005 budget process. In FY 2003, this agreement was expanded (Exhibit B) to provide for greater Cit Council involvement in review of the marketing plan and budgeting process for the use f these City funds. I concur with the recommendation and respectfully request Mayor and City Cou cll approval. MCVM/ksf Attachment cc: Barry Lindahl, Corporation Counsel '-i: Cindy Steinhauser, Assistant City Manager ~"'~ ',- Dawn Lang, Budget Director O"::c'.j Sf¡: ¡ ¡ j!"j ¡ f: ö~H ')0 D~ ~ck~ MEMORANDUM March 1, 2004 TO: Michael C. Van Milligen, City Manager FROM: Dawn Lang, Budget Director 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 t e Dubuque Area Chamber of Commerce for the City's financial support of the Co vention and Visitors Bureau for Fiscal Year 2005. The agreement was expanded in FY 03 to include the annual marketing plan, City Council budget process, and the three- ear review process for the Marketing Plan (Exhibit B). The adopted Fiscal Year 2005 operating budget provides a payment of $554,7 5. This amount represents 50 percent of the hotel/motel tax received by the City for th period of October 1, 2002 through September 30, 2003, less the first of ten marketing oan payments, per agreement. Payment will be made to the Chamber of Commerc in four equal quarterly installments of $138,676.25. It is my recommendation that the City Council approve the attached Purchase f Service Agreement with the Dubuque Area Chamber of Commerce and authori e the Mayor to execute the contract on behalf of the City. DL/ksf Attachment CITY OF DUBUQUE, IOWA, AND DUBUQUE AREA CHAMBER OF COMMERCE PURCHASE OF SERVICES AGREEMENT THIS AGREEMENT, entered into this 1 st day of July 2004, by and betw en the City of Dubuque, Iowa, herein referred to as the "City" and the Dubuque Area hamber 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 t e promotion and encouragement of tourist and convention business in the City of Dubuque; and WHEREAS, the City has agreed to provide certain financial assistance i an amount equivalent to fifty percent (50%) of the hotel/motel tax, less debt paym nts per agreement to enable the Agency to carry out such tourist and convention devel pment on behalf of the City; and WHEREAS, the Agency represents itself as technically and professional y 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 Bure u Division to undertake such services that are necessary and requisite t 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 PI nand budget is described in Exhibit B. b) The Agency represents that it will retain competent and qualified staff nder 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 thr ughout 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 guideline, target markets and co-op opportunities for the America's River Project for Implemeotalloo by the Goov,"ooo ,"d VI""", Bo","". It hly """wres the I Convention and Visitors Bureau as the lead promotional entity for the .'merica's River Project as well as being the lead marketing agent for the entire destination. I e) Provide City Council with an annual report on the activities of the CVB i cluding financial statements and breakdown of expenditures by program area. f) The Dubuque Area Chamber of Commerce has agreed to participate i the formation of a not-for-profit Corporation to further the goals of the Ame 'ca's River Project. 2. Time of Performance The services of the Agency are to commence on July 1, 2004, and termin e June 30, 2005. 3. Compensation a) The City will pay to the Agency the amount of $554,705. This amount represents fifty percent (50%) of the hotel and motel tax received by t e City for the period of October 1, 2002, through September 30, 2003, less $ 5,000 (first of ten payments due on $350,000 marketing loan per attached agreement. Such sum shall constitute complete compensation for all ervices to be rendered including personnel costs, travel, printing and publicati ns, and all other expenses. b) Such sum shall be payable to the Agency in four quarterly installment upon receipt of a requisition for such payment. Such payments to be due a d payable as follows: First Quarter - $138,676.25; Second Quarter- $138,676.25; Third Quarter - $138,676.25; and Fourth Quarter - $138, 76.25. 4. Audit and Evaluation a) Inasmuch as the funds to be provided the Agency by the City are pub ¡ funds, the Agency agrees that it will maintain books of account in accordanc 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 sche uled City Council meeting detailing its activities beginning with the quarter ending September 30,2003. Accompanying each such report shall be copies of studies, brochures, and other documents, which may be produced to upport and/or otherwise promote the work program of the Convention and Visitors Bureau Division. 2 i c) To assist in coordinating the activities of the Convention and Visitors Jureau Division with the City, not less than one member of the Dubuque City ouncil 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 tt e City within ten (10) days after such meeting. 5. Discrimination 6. In carrying out its program, the Agency shall not discriminate against any e Tlployee or applicant for employment because of race, creed, color, sex, age, natior al origin, religion, or disability. The Agency shall take affirmative action to en ure that applicants for employment are employed and that employees are treated during employment without regard to race, creed, color, sex, age, national origin, eligion, or disability. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; rates of payor other forms cf 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 der ied the benefits of, or be subjected to discrimination under any program or activitie funded in whole or in part with any of the funds made available to the Age~ cy under the terms of this Agreement because of race, creed, color, religion, rational origin, sex, age, degree of handicap or disability. Interest of Members Officers or Emolovees of the CitY of DubuQue' Memt ers of the Dubuque City Council: or Other Public Officials No member, officer, or employee of the City or their designees or agents; r 0 member of the Dubuque City Council; and no other public official of the Cit who exercises any function or responsibilities with respect to the program durin his tenure shall have any interest, direct or indirect, in this contract or the proc eds thereof for work to be performed in connection with the program assisted u der this Agreement. 7. Termination of Contract a) This contract may be terminated by either party by giving the other par y a written, ninety (90) day notice of such termination or upon such other t rms as may be mutually acceptable. b) If, through any cause, the Agency shall fail to fulfill in a timely and pro~ er manner its obligations under this Agreement or if the Agency shall viol te any of the covenants, agreements, or stipulations of this Agreement, the C ty 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 d te of such termination. 3 , 8. Assiqnabilitv l The Agency shall not assign any interest in this Agreement and shall not tr nsfer any interest in the Agreement without prior written approval from the City. ! WITNESSED: CITY OF DUBUQUE Jeanne F. Schneider, City Clerk Terrance M. Duggan, Mayor Date Date DUBUQUE AREA CHAMBER ( F COMMERCE Steward Sandstrom, President Carol Townsend, Chairman oft e Board Date Date 4 . . kxhibit A I ! Convention & Visitors Bureau Three Year Goals FY2005- FY2008 Goal I Increase the number of travelers to the Dubuque area from 1 million to 1. million and travel expenditures to the area from $167 million in 2002 to $177 milll n by FY2008 as reported by the IDED Tourism Impact Reports. Objective A-Continue implementation of an annual integrated marketing camp ign in target markets to position the Dubuque area as a recreational, scenic and histo ical getaway for multi-day trips in cooperation with our regional partners. Strategy 1: Place advertising in magazines, newspapers, and on radio i target markets. Strategy 2: Place internet ads as a value added component to print me ia buys. Strategy 3: Maintain web site information to allow access to visitor infor ation 24 hours a day. Strategy 4: Offer coop advertising opportunities to members to maximiz ad buys and exposure. Strategy 5: Monitor industry trends in consumer spending patterns and reas of interest. Objective B-Develop consumer promotions to promote seasonal, themed, and unique options to encourage new and return visits to the area. Strategy 1: Develop themed packages Strategy 2: Create bounce back coupon program Objective C.Provide visitor assistance and increase the number of travel partie seeking information at the Iowa Welcome Center by 25% as reported by month I Iowa Welcome Center reports. Objective D: Market area festivals, events, and attractions to generate visitors area. the Strategy 1: Provide ongoing media relations for festivals Strategy 2: Provide resources to festival and event organizers Strategy 3: Develop support materials to distribute to visitors Objective E-Provide Visitor Guide and Calendar of Events brochures as fulfillm nt pieces to ad placements. I I i I fxhibit A Goal II Promote the Dubuque area as a multi-day group tour destination to generate 3,000 mid-week group tour room nights annually. I Objective A-To increase the number of group tours and the length of group st s by offering multi-day itineraries and group packages. Strategy 1: Develop themed itineraries to provide to group planners. Strategy 2: Work in cooperation with industry members to offer packag promotions. Objective B-Target group leaders in Iowa, Illinois, Wisconsin, Minnesota and n tional tour operators. Strategy 1: Attend National Tour Association, American Bus Associatio ,and Bank Travel Strategy 2: Coordinate coop advertising opportunities with members Strategy 3: Send direct mail pieces Strategy 4: Make sales calls on potential customers Strategy 5: Host site tours and FAM trips Objective C-Provide tour operators and group leaders with promotional materi Is. Strategy 1: Update marketing materials annually . Group tour manual, CD-Rom, and Video Strategy 2: Develop coordinated package promotional piece to showca e member packages Objective D-Monitor industry trends on traveler spending patterns and areas 0 interest. Goal III Promote the Dubuque area as a state-of-the-art meeting and conference destination to generate 10,000 conference room nights annually. Objective A-Maintain focus on small to medium sized meetings. Strategy 1: Target association and corporate groups in Iowa, Illinois, an Wisconsin Strategy 2: Attend monthly association meetings Strategy 3: Coordinate cooperative ads in targeted trade publications Strategy 4: Maintain sales promotions in target markets Strategy 5: Attend tradeshows in target markets Strategy 6: Maintain current database of leads Exhibit A Objective B-Aggressively market to national, state and regional conferences in 400+ delegate range. Strategy 1: Attend regional and national trade shows Strategy 2: Bid conventions in 400+ delegate range Strategy 3: Conduct site tours and FAM tours for meeting planners Strategy 4: Continue to identify new groups with affiliations to the Mississippi River Strategy 5: Coordinate coop ads in trade publications Strategy 6: Purchase lead lists and conduct telemarketing promotions Objective C-Focus on Hometown Hero Campaign as a main source of leads for meeting and conference business Strategy 1: Develop local contacts through corporate business, clubs, state associations, and educational institutions Strategy 2: Implement annual Hometown Hero monthly plan of action Objective D-Develop promotional materials to send to planners and delegates Strategy 1: Update Meeting Planner Guide annually Strategy 2: Create Bounce back coupon annually Strategy 3: Update Coupon Book annually Strategy 4: Update Services Brochure annually Objective E-Monitor industry trends and delegate spending patterns through the Iowa Convention & Visitors Bureau. Objective F-Develop Convention Servicing Program to promote area activities and to enhance the overall group experience. Strategy 1: Develop spouse tour itineraries Strategy 2: Develop bounce back coupons Strategy 3: Provide ongoing service and rebooking Objective G-Redevelop past business and re-bid lost business Goal IV To increase awareness of Dubuque and the surrounding area by maintaining and expanding media relations locally, regionally and nationally. Objective A-Provide promotional materials and ongoing information to travel media interested in the Dubuque area. Strategy 1: Prepare and distribute media kits Strategy 2: Send news releases to targeted regional and national media Strategy 3: Secure editorial calendars of regional and national magazines that the CVB advertises in to pitch stories for additional coverage. Exhibit A Objective B-Promote the Dubuque area to travel media for short and long lead stories Strategy 1: Attend media trade shows to create relationships Strategy 2: Post stories on travel media web sites Strategy 3: Host thirty travel writers to the area for FAM tours annually. Objective C-Annually monitor and track media coverage Strategy 1: Develop and maintain current list of travel media by segment. Strategy 2: Use a clipping service at peak times to track coverage. Strategy 3: Call writers to pitch unique story idea. Goal V Provide community and tourism industry preparedness programming and visitor services to improve the visitor experience in the Dubuque area. Objective A-Ensure visitor satisfaction. Strategy 1: Develop a series of training opportunities based on employee needs Strategy 2: Continually monitor the quality of the visitor experience Strategy 3: Implement an employer service excellence reward and recognition program. Objective B-Develop materials to provide to tourism industry front line employees to assist them in promoting Dubuque. Strategy 1: Distribute new color map Strategy 2: Provide a "This week in Dubuque" sheet of upcoming activities Strategy 3: Provide information on community wide programs/packages Strategy 4: Provide sample itineraries Strategy 5: Conduct annual needs survey Objective C-Hold tourism industry meetings to inform members of tourism related opportunities. November December January February Exhibit B SCHEDULE FOR ANNUAL AND 3-YEAR REVIEW OF CVB MARKETING PLAN 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 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 Marketina 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 December Dec - Feb 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. Representatives from each focus group participate with CVB staff and Advisory board at annual marketing plan review meeting. Follow annual marketing review schedule as identified above. '. RESOLUTION NO. 224-03 -03 APPROVING A lOAN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND THE DUBUQUE AREA CHAMBeR OF COMMERCE FOR LOAN FUNDS FOR THe START..up MARKETING EFFORT BY THE CONVeNTION AND VISITORS BuREAu FOR THE AMERICA'S ~IVER PROJECTS Whereas, th¡¡ DUbl\(' UØ Area Chamœrof Commerce thrOUgh its Convention and Visitors Bur~u provides services to grow the tourism and convention induslly in DUbuque; and Whereas, the DubtJque Area Chamber of CQmmerce through its CQnvenllOn ànd- VISitors Bureau has proposed to the CIty of Dubuque a marketing I1ffort for Ame~.s River projects; and . Whereas, it is in the interest of the CIty of Dubuque to allow the proposed. marketing to proceed; and Whereas. to allow the proposed mark¡¡ling.to proceed and to accornrnoàate btJdget restrlclions, the City of Dubuque has agreed to loan $:350,000 to the Dubuqljß Area CharîlberofCQmrnerCl1 to pay for the start..¡,¡p marketing effort, such fundS to be available fordistribuliOf! after July 1, 2003. pursuant to the!erm$of a Loan Agr~, attached hereto; and Whereas; tire DubuqueAreaCbamber ofCQ!T1II'IÐ{C!! has agreed to reopaythe'fUli amount of the IóIm upon the!erm$ set fortò in the Loan Agrel1meflt. NOW THeu=:FORE. BE rr RESOlVED BY THE CITY COUNCIL OF THE CITY . OF DUBUQUE, IOWA: . sectiOn 1- The Loan Agreement attached hereto is hereby approved. The Mayor is hereby authorized and directed to sign tire Loan Agreement Of! behalf attire CIty of DubuqUe.' . SßCIiQn2. The City Mana! 1!r is hereby authorized and directed to edminister the Loan AgreelTléntonœhalfofthe City. Passed, approved and adopted this..2!:!L. clay of June, 2003. Te Attest: ~~/Ám ne F. Schneider, CMC, CIty CI¡¡rk LOAN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND THE DuBUQUE AREA CHAMBER OF COMMERce Whereas, the Dubuque Cl'1amb!¡r of Commerce (Chamber) thro\!Qh i1sConven!ion and V'JSÌtolS Bureau has þro¡msed to the City of Dubuque a marketí!'!QeffoI1 for An1E¡rica'sRiVer projecls; and Whereas, it is in the intarest of the City of DUbuquE> (City) to allOw the proposed marketing to proceed; and Whereas, to allow the proposed m¡;¡rkeling to proceed and to accommodate budgeI' ~ City nas agreed to loan $::150.000 to. Chamber II> pay for the start-up marketihg effmI,sucl1 funds to be available for distribution aft\¡r July 1, 2003, þiJl'$\J3!1t II> the tern\S ætfi:»1h nerein. NOW, THCREFORE IT IS AGREED BY AND BETWEEN THEPARTIES.MiI FOLLOWS: 1. City agrees to loan $350,000 to Chamber for use by its Co~tjDlland Vl!;1tors Bureau. The loan funds shall be used for the start-up marketingeIfQrt,for America's River projecls and shall be available. for distribution after July 1,2:(11)3. 2. . Chamber shaH repay the full.amourrt of $350,000 to City on or before July 31, 2013. No intel"est shall be cnargecl.on the loaned funds. The funds snail be paid back to City ÌIl teI1 installments of $35,000.00 over a 1O-year pelioØby redLICing Ci!y's payment of HotellMotel taxes to Chamber by that amount Theannual'reduQli'onin taxes shall begin with the July, 2004 distribution. and end Wilhth¡¡ JQI¡I,2Q13 distlibution. Should Chamber, for any reason, cease to ¡reìform CVg~, the above repaym¡¡nt Obligation shall cease effective on the prior June 3Øth 3. Chamber shall not use the above sums for the acquisition of ~or personal property. 4. This agreement $hall. be administEired by City's City Mal1!3get. Approved by resolution of the Dl b¡,¡qUa 2a'" day of June. 2003. Page 1 of2 lOAN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND THE DuBUQUE AREA CHAMBER OF COMMERCE Approved by resolution Qflhe c-ltyOouncü oHM City of Dubuque adQ tedOIl the 7'" day Qf July, 2003. Page2ôf2