HomeMy WebLinkAbout07192019 City Council Work Session Laydown - Chamber of Commerce Agreement ,q0 7/q (vs
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Seward Chamber and CVB Economic Development& Tourism Marketing Agreement
This Agreement made effective January 1,2016 by the Seward Chamber/CVB, whose address is Box
749, Seward Alaska,99664 herein referred to as the `Chamber,"a nonprofit 501 (c)(6)corporation,and
the City of Seward,whose address is Box 167, Seward,Alaska 99664, a home rule municipal
corporation,herein referred to as the"City."
WHEREAS,the City has designated the Chamber by resolution as the lead marketing entity of the
Seward community and the recipient of public funds which are to be utilized and expended for the
promotion of the city of Seward economic development and tourism marketing,and
WHEREAS,the Chamber can best accomplish this mission most efficiently by focusing its energies on
marketing the city and managing the marketing activities,and
WHEREAS,the City can best carry out its responsibility of city marketing of tourism and economic
development by contracting with an outside organization,and
WHEREAS,the Chamber is an organization whose mission is to promote and support a diversified
economy for a positive business and living environment for its members and the greater Seward area.
The Chamber accomplishes that mission by marketing the city of Seward as a destination for conferences,
economic development,tourism in general as an economic development strategy for the community at
large and its supporting members, specifically, and
WHEREAS,the Chamber has acquired the resources, facilities,and personnel with the specialized skills
to conduct tourism and economic development marketing programs to attract and serve new businesses
and visitors of all types.
NOW,THEREFORE,the parties,each in consideration of the promise herein agree as follows;
1. The City hereby engages the Chamber to market business and industry development and tourism
for the city of Seward.The term of this Agreement shall be four(4)years,unless notice of
termination of the Agreement is given pursuant to paragraph 8 hereof.
2. The Chamber accepts the engagement and shall diligently promote such businesses by producing
marketing, sales promotion,and publicity programs including:
A. Sales calls to potential convention,tradeshow,and conference prospects.
B. Participation in regional advisory committees engaged in business and industry development
issues.
C. Exhibits at various conference shows and special events as deemed necessary by the Chamber to
promote economic development and the visitor industry.
D. Conducting Seward familiarization tours and product development tours and activities.
E. Oversight of certain special community-wide events currently being held in the city of Seward as
noted in annual addendum.
F. Hosting prospective meeting planners and other clients in the city to promote business and
industry development and the tourism industry.
G. Development,production,and distribution of promotional sales material.
H. Providing community and visitor information and assistance.
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3. The Chamber shall conduct economic development and tourism industry promotion to aid the
City in achieving their mission to increase customers coming to Seward and attracting new
business and industry to Seward by conducting programs including:
A. Tourism marketing, sales,and promotion campaigns
B. Generic advertising of the community's assets and tourism attractions
C. Market cooperatively with the Chamber's members to the mutual benefit of its members and the
City
D. Produce by itself or by contract brochures,visitors guides,maps, and other publications useful to
economic development and tourism visitors
E. Promote economic development and tourism via electronic media
F. Operate a Visitor Information Center to serve visitors
4. For the promotion and marketing services rendered by the Chamber to the City for the
community-at-large, the City shall pay to the Chamber,subject to appropriation,the amounts as
detailed in an annual addendum as referenced in paragraph 5 hereof.
5. The Chamber will annually,by October 1 of each year,provide a marketing workplan and budget
("Marketing Plan and Budget")outlining anticipated expenditures to conduct the aforementioned
services on behalf of the City and the community. The Marketing Plan and Budget is a part of this
Agreement and will address cash-flow timing and compare the prior year's plan with actual
results. The initial Marketing Plan and Budget is attached hereto and incorporated into this
Agreement. The City will assist the Chamber with approval of each Marketing Plan and Budget
through the annual budget approval process of the City.
6. The Chamber shall utilize and dedicate all such funds received from the City for the promotion of
economic development and tourism and will forward an accounting of said expenditures in the
form of an annual close-out budget report, including a detailed explanation of any deviations in
expected use of the funds. The City may at its own expense conduct an annual independent or
internal audit.
7. The parties acknowledge that these funds will be used for City economic development and
tourism to increase visitors to the community for tourism and economic development activities.
8. This Agreement may be terminated by either party serving upon the other six months prior
written notice of termination of the Agreement. This Agreement is binding upon both parties and
shall inure to the benefit of their successors in interest. If the City terminates this agreement,the
City agrees to pay for expenses already incurred at the time of notification of termination.
9. The Chamber agrees to comply with all state and municipal laws,including but not limited to AS
15.13.145 regarding the endorsement of or opposition to any state or municipal ballots. The
Chamber may not use amounts received from the City under this Agreement for such activities
unless funds have been specifically appropriated by the City for that purpose.
10. The Chamber is an independent contractor in the performance of any work under this Agreement,
and neither the Chamber nor its employees,members or volunteers shall be an employee or agent
of the City.
11. The Chamber shall defend,indemnify and hold harmless the City,its officials,employees, agents
and contractors from any and all liability(including attorney fees)or claims for damages,
including personal injuries,environmental damage,death and property damage arising out of or
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resulting from the Chamber's use of the City's funds or the Chamber's actions taken pursuant to
this Agreement, including the Chamber's employees, assignees, contractors,agents or the public.
12. Prior to disbursement of any funds by the City,the Chamber shall procure and maintain, at the
Chamber's sole cost and expense,comprehensive commercial general liability insurance with
limits of liability of not less than TWO MILLION DOLLARS ($2,000,000) for all injuries
and/or deaths resulting to any one person and TWO MILLION DOLLARS($2,000,000)limit
from any one occurrence. The comprehensive commercial general liability insurance shall
include coverage for personal injury,bodily injury,death and property damage or destruction.
Contractual liability insurance coverage in the amount of not less than TWO MILLION
DOLLARS ($2,000,000) is also required.
13. In addition to the insurance described in paragraph 12,the Chamber shall maintain, at the
Chamber's sole cost and expense, workers' compensation insurance as required under Alaska law
and owned and non-owned automobile liability insurance with limits of liability of not less than
ONE MILLION DOLLARS ($1,000,000)per occurrence combined single limit for bodily injury
and property damage.
14. All insurance policies shall provide for thirty(30)days' notice of cancellation and/or material
change to be sent to the City. All such policies shall be written by insurance companies legally
authorized or licensed to do business in Alaska and acceptable to the City(Best's Rating B+or
better). The City shall be listed as an additional insured. Upon execution of the contract,the
Chamber shall furnish certificates evidencing that it has procured the insurance required herein.
Insurance policy deductibles are subject to approval by the City. The minimum insurance
requirements under this Agreement shall not act to limit the Chamber's liability for any
occurrence and shall not limit the Chamber's duty to defend and indemnify the City for claims
related to this Agreement.
IN WITNESS THEREFORE,the parties hereto executed the Agreement by duly authorized offices
respectively.
By: atr,
CID ViC—
Seward Chamb Executive Direct
C. of Seward,C y M ager
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Sponsored by: Hunt
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CITY OF SEWARD, ALASKA
RESOLUTION 2013-058
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, REAFFIRMING THE SEWARD CHAMBER OF COMMERCE,
CONFERENCE AND VISITORS BUREAU AS THE LEAD MARKETING
ENTITY AND ESTABLISHING COUNCIL'S INTENT TO ANNUALLY
FUND WITH HALF OF THE ACTUAL BED TAX REVENUE FROM EACH
SECOND PRIOR YEAR
WHEREAS,the City of Seward implemented a 4% bed tax on January 1, 1996. and from
1996 through 2000,contributed varied amounts of the bed tax to the Seward Chamber of Commerce.
Conference and Visitors Bureau(Chamber)to fund specific activities such as improvements to the
visitors center, a visitor brochure, a feasibility study,convention center study.etc; and
WHEREAS,beginning in 2001,the Seward City Council agreed to split half of the budgeted
bed tax with the Chamber for the express purpose of providing contract marketing services on behalf
of the community; and
WHEREAS,beginning in 2002 the Seward City Council began basing the contribution to
the Chamber of half of the previous full year's actual bed tax collected; and
WHEREAS, since the 2005 the city budget has included an appropriation to the Chamber
from the second previous full year's bed tax revenue at 50%; and
WHEREAS,the city's Strategic and Comprehensive Plans clearly state the city's desire to
expand its business base and to generate year-round employment; and
WHEREAS, the city obtains significant benefits, direct and indirect, of marketing efforts
with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable.
vibrant, year-round economy; and
WHEREAS, marketing is an important effort that must take place to achieve the goals of
attracting new business and industry,support and grow existing businesses,and increasing customers
coming to Seward; and
WHEREAS,the Chamber has the experience, professional contacts and ability to provide
marketing services for the community with the ability to focus resources and target specific
marketing groups to react to changing markets and demands more efficiently and expertly than the
City; and
WHEREAS, the Chamber presents its budget to the Seward City Council annually and
provides monthly updates on activities;and
CITY OF SEWARD, ALASKA
RESOLUTION 2013-058
WHEREAS,the council recognizes that a coordinated marketing effort at the community-
wide level is critical to a successful economy.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Council hereby reaffirms the Seward Chamber of Commerce.
Conference and Visitor's Bureau as the designated lead marketing entity for the City of Seward
Section 2. The City Council hereby confirms its intent to annually fund with half of the
actual Bed Tax Revenue from each second prior year.
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of
July. 2013.
THE CITY OF SEWARD, ALASKA J
David Seawar , M or
AYES: Valdatta, Bardarson, Keil, Shafer,Terry
NOES: Seaward
ABSENT: Casagranda
ABSTAIN: None
ATTEST:
rends J. Ba ollr
Acting City �p,��t• O'�•**d+y '••
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Agenda Statement
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Meeting Date: July 22, 2013 at ,��- ��►a
To: City Council <e
11.4510..
From: City Manager Jim Hunt
Agenda Item: Reaffirmation of Chamber funding
BACKGROUND & JUSTIFICATION:
The City's Strategic and Comprehensive Plans clearly state the City's desire to expand its business
base and to generate year-round employment. Both plans include goals and objectives in regards to
having a robust marketing campaign highlighting Seward's diverse resources and excellent quality of
life. The City and its Citizen's obtain significant benefits,direct and indirect,of marketing efforts
with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable,
vibrant, and year round economy.
Marketing is an important effort that must take place to achieve the goals of attracting new business
and industry, support and grow existing businesses, and increasing customers coming to Seward.
The Seward Chamber of Commerce,Conference and Visitor's Bureau(Chamber)has the experience,
professional contacts and ability to provide marketing services for the community with the ability to
focus resources and target specific marketing groups to react to changing markets and demands more
efficiently and expertly than the City.
During the budget process Council ensures the Chamber meets their mandated goals and objectives
for the citizens and business of Seward. Representatives of the Chamber give a presentation to the
City Council, and provide a written budget, specifying the use of these funds. Additionally, the
Chamber Director provides monthly updates to Council and the Port and Commerce Advisory Board.
INTENT:
The City Council recognizes that a coordinated marketing effort at the community-wide level is
critical to a successful economy and with this Resolution reaffirms the Seward Chamber of
Commerce,Conference and Visitor's Bureau as the designated lead marketing entity for the City of
Seward. Additionally,the City Council hereby confirms its intent to annually fund with half of the
actual Bed Tax Revenue from each second prior year.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: 3.1.1 Attract new business and industry to the
greater Seward area. 3.1.1.1 Develop an active marketing campaign
1. that highlights the diverse resources and quality of life that makes X
Seward an attractive place in which to live and to establish a business
or industry.
Strategic Plan: Page 5 Goals and Objectives,Attract New Industry
2 • Develop an aggressive marketing campaign which highlights the X
diverse resources and quality of life that makes Seward a great
place to live and establish a business or industry.
Other: Ordinance 1995-001, City Council Resolutions 1997-052, 2004-
3' 047 and 2005-018. PACAB Resolution 2004-006 X
FISCAL NOTE: The hotel/motel tax rate is 4%. It has been 4%since it was first put in place by an
Initiative Ordinance by the voters, effective in January, 1996. Following is a sampling of various
communities and their Bed Tax rates:
Adak 5%; Anchorage 12%; Barrow 5%; Bethel 12%; Bristol Bay Borough 10%; Cordova 6%;
Dillingham 10%; Fairbanks 8%: Fairbanks North Star Borough 8%; Haines Borough 4%; Juneau
7%;Ketchikan 7%;Ketchikan Borough 4%;Kodiak 5%;Kodiak Island Borough 5%;Kotzebue 6%;
Mat-Su Borough 5%;McGrath 10%;Nome 6%;North Pole 8%;Pelican 10%;Petersburg 4%;Sand
point 7%; Seward 4%; Sitka 6%; Skagway 8%; Valdez 6%.
Seward's Ordinance was followed up by a Resolution of the City Council, stating their intent to
appropriate a portion of the bed tax to promote tourism and develop visitor infrastructure.
Resolution 1997-052 specifically identified the Chamber of Commerce for purposes of providing
marketing and other services on behalf of the community. Ever since that time, the City has
appropriated a portion of the Bed Tax,and beginning in 2001 it has been one-half of the bed tax to
the Chamber of Commerce for marketing and economic development. The other half of the bed tax
is used to fund the General Fund's infrastructure projects benefiting visitors which could include
things such as public restrooms, viewing areas, pavilions, campground improvements, sidewalks,
library,etc.
The bed tax is apportioned to the Chamber based on one-half of the bed tax collected during the
second prior year (the intent is that when the budget is formulated, the amount of the bed tax
allocation for the first year in the biennial budget, is based on a known figure). So for example, in
2012 the City provided the Chamber with$164,198 which represented one-half of the 2010 actual
bed tax revenues of$328,396. Bed tax revenues in 2011 were $334,823.77, so one-half of that
would be $167,411.88 to the Chamber in 2013, and were $380,210.48 in 2012, so the Chamber
allocation in 2014 -- assuming the Council still allocates one-half of the bed tax to the Chamber--
would be $190,105.24.
Approved by Finance Department: ,Lia 4. uja:pe,
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: $
Approve Resolution 2013-O' reaffirming the Seward Chamber of Commerce, Conference, and
Visitor's Bureau as the lead marketing entity and establishing Council's intent to annually fund with
half of the actual bed tax from each second year prior.
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