Purch of Services Chamber Conv. & Visitors Bureau
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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
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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.
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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.
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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
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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.
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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
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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
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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.
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