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Purch of Services Chamber Conv. & Visitors Bureau DU~~E ~ck~ MEMORANDUM June 15, 2006 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 2007 budget process, the Mayor and City Council provided $660,409 for a Purchase of Service Agreement with Dubuque Area Chamber of Commerce Convention and Visitors Bureau. Budget Director Dawn Lang 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 $660,409. This amount represents 50 percent of the hotel/motel tax received by the City for the period of October 1, 2005, through September 30, 2006, less the third of ten marketing loan debt payments, per agreement, as approved by the City Council during the Fiscal Year 2007 budget process. In FY 2003, this agreement was expanded (Exhibit B) to include 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. fL1ll~/ltJL Michael C. Van Milligen MCVM/ksf Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Dawn Lang, Budget Director Dii~%auE ~c/k-~ MEMORANDUM June 15, 2006 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 the Dubuque Area Chamber of Commerce for the City's financial support of the Convention and Visitors Bureau for Fiscal Year 2007. The agreement was expanded in FY 03 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 2007 operating budget provides a payment of $660,409. This amount represents 50 percent of the hotel/motel tax received by the City for the period of October 1, 2005 through September 30, 2006, less the third of ten marketing loan payments, per agreement. Payment will be made to the Chamber of Commerce in four equal quarterly installments of $165,102.25. It is my recommendation that the City Council approves the attached Purchase of Service Agreement with the Dubuque Area Chamber of Commerce and authorizes the Mayor to execute the contract on behalf of the City. DLLlksf Attachment 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; and f) receive participation from the Dubuque Area Chamber of Commerce in the formation of a not-for-profit Corporation to further the goals of the America's River Project. 2. Time of Performance The term of this Agreement shall be from July 1, 2006 through June 30, 2005. 3. Compensation a) City shall pay to Agency the amount of $660,409. This amount represents fifty percent (50%) of the hotel and motel tax received by City for the period of October 1, 2005, through September 30, 2006, less $35,000 (third of ten payments due on $350,000 marketing loan per attached agreement). Such sum shall constitute full and complete compensation for all services to be rendered including personnel costs, travel, printing and publications, and all other expenses. b) The compensation shall be paid by City to Agency in four quarterly installments upon receipt by City of a requisition for such payment from Agency. Such payments to be due and payable as follows: First Quarter - $165, 1 02.25; Second Quarter - $165,102.25; Third Quarter - $165,102.25; and Fourth Quarter - $165,102.25. 4. Audit and Evaluation a) Inasmuch as the funds to be provided to Agency by 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) Agency shall provide City quarterly reports at a regularly scheduled City Council meeting detailing its activities beginning with the quarter ending September 30, 2004. 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. c) To assist in coordinating the activities of the Convention and Visitors Bureau Division with City, not less than one member of the Dubuque City Council shall be appointed to the Convention and Visitors Bureau Division. 2 d) Copies of minutes of all meetings shall be filed with the City Clerk of City within ten (10) days after such meeting. 5. Discrimination In carrying out the services under this Agreement, Agency shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, age, national origin, religion, or disability. 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 payor other forms of compensation; and selection for training, including apprenticeship. 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 Agency under the terms of this Agreement because of race, creed, color, religion, national origin, sex, age, degree of handicap, sexual orientation, or disability. 6. Interest of Members. Officers. or Emplovees of the Citv of Dubuque: Members of the Dubuque Citv Council: or Other Public Officials No member, officer, or employee of City or their designees or agents; no member of the Dubuque City Council; and no other public official of City who exercises any function or responsibilities with respect to the program during such person's 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, Agency shall fail to fulfill in a timely and proper manner its obligations under this Agreement or if Agency shall violate any of the covenants, agreements, or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Agency of such termination at least five (5) days before the effective date of such termination. 3 8. Assiqnabilitv Agency shall not assign any interest in this Agreement and shall not transfer any interest in the Agreement without prior written approval of City. 9. Insurance At the time of execution of this Agreement by Agency, Agency shall provide City copies of Agency's insurance certificates showing general liability, automobile liability, and workers compensation insurance with limits and coverage to the satisfaction of City for the term of this Agreement. WITNESSED: CITY OF DUBUQUE Jeanne F. Schneider, City Clerk Roy D. Buol, Mayor Date Date DUBUQUE AREA CHAMBER OF COMMERCE Steward Sandstrom, President Michael Donohue, Vice Chairman of the Board Date Date 4 ~ DUBUQUE AREA CHAMBER of COMMERCE . "-=' CONVENTION & VISITORS BUREAU Exhibit A Convention & Visitors Bureau Three Year Goals FY2005- FY2008 Goal I Increase the number of travelers to the Dubuque area from 1 million to 1.5 million and travel expenditures to the area from $167 million in 2002 to $177 million by FY2008 as reported by the IDEO Tourism Impact Reports. Objective A-Continue implementation of an annual integrated marketing campaign in target markets to position the Dubuque area as a recreational, scenic and historical getaway for multi-day trips in cooperation with our regional partners. Strategy 1: Place advertising in magazines, newspapers, and on radio in target markets. Strategy 2: Place internet ads as a value added component to print media buys. Strategy 3: Maintain web site information to allow access to visitor information 24 hours a day. Strategy 4: Offer coop advertising opportunities to members to maximize ad buys and exposure. Strategy 5: Monitor industry trends in consumer spending patterns and areas 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 parties seeking information at the Iowa Welcome Center by 25% as reported by monthly Iowa Welcome Center reports. Objective 0: Market area festivals, events, and attractions to generate visitors to the area. Strategy 1: Provide ongoing media relations for festivals Strategy 2: Provide resources to festival and event organizers Strategy 3: Develop support rnaterials to distribute to visitors Objective E-Provide Visitor Guide and Calendar of Events brochures as fulfillment pieces to ad placements. Exhibit 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. Objective A-To increase the number of group tours and the length of group stays 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 package promotions. Objective B-Target group leaders in Iowa, Illinois, Wisconsin, Minnesota and national tour operators. Strategy 1: Attend National Tour Association, American Bus Association, 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 materials. Strategy 1: Update marketing materials annually . Group tour manual, CD-Rom, and Video Strategy 2: Develop coordinated package promotional piece to showcase member packages Objective D-Monitor industry trends on traveler spending patterns and areas of 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, and 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 Exhihit 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 RIVER PROJECTS Whereas, the Dubuque Area Chamber of Commerce through its Convention and Visitors Bureau provides services to grow the tourism and convention industry in Dubuque; and Whereas, the Dubuque Area Chamber of Commerce through its Convention and. VISitors Bureau has proposed to the City of Dubuque a marketing effort for America'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 marketing to proceed and to accommodate budget restrictions, the City of Dubuque has agreed to loan $350,000 to the Dubuque Area Chamber of Commerce to pay for the start-up marketing effort, such funds to be available for distribution atter July 1, 2003, pursuant to the terms of a Loan Agreement, attached hereto; and Whereas, the Dubuque Area Chamber of Commerce has agreed to repay the full amount of the loan upon the terms set forth in the Loan Agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Loan Agreement atlached hereto is hereby approved. The Mayor Is hereby authorized and directed to sign the Loan Agreement on behalf of the City of Dubuque. Section 2. The City Manager is hereby authorized and directed to administer the Loan Agreement on behalf of the City. Passed, approved and adopted this ~ day of June, 2003. Attest: eanne F. Schneider, CMC, City Clerk , LOAN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND THE DUBUQUE AREA CHAMBER OF COMMERCE Whereas, the Dubuque Chamber of Commerce (Chamber) through its Convention and Visitors Bureau has proposed to the City of Dubuque a marketing effort for America's River projects; and Whereas, it is in the interest of the City of Dubuque (City) to allow the proposed marketing to proceed; and Whereas, to allow the proposed marketing to proceed and to accommodate budget restrictions, City has agreed to loan $350,000 to Chamber to pay for the start-up marketing effort, such funds to be available for distribution after July 1, 2003, pursuant to the terms set forth herein. NOW, THEREFORE IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. City agrees to ioan $350,000 to Chamber for use by its Convention and Visitors Bureau. The loan funds shall be used for the start-up marketing effort for America's River projects and shall be available for distribution after July 1, 2003. 2. Chamber shall repay the full amount of $350,000 to City on or before July 31,2013. No interest shall be charged on the loaned funds. The funds shall be paid back to City in ten installments of $35,000.00 over a 1 O-year period by reducing City's payment of HotellMoteltaxes to Chamber by that amount. The annual reduction in taxes shall begin with the July, 2004 distribution and end with the July, 2013 distribution. Shouid Chamber, for any reason, cease to perform CVB services, the above repayment obligation shall cease effective on the prior June 30th 3. Chamber shall not use the above sums for the acquisition of real or personal property. 4. This agreement shall be administered by City's City Manager. ApJ;roved by resolution of the Dubuque 26 day of June, 2003. b. vt f,,'J of the Board Page 1 of 2 . LOAN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND THE DUBUQUE AREA CHAMBER OF COMMERCE Approved by resolution of the City Council of the City of Dubuque ado ted on the 7'" day of July, 2003. Page 2 of2