Loading...
HomeMy WebLinkAboutRES2026-017 Seward Chamber of Commerce ContractSponsored by: Sorensen Amended and Approved: February 9, 2026 CITY OF SEWARD, ALASKA RESOLUTION 2026-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A THREE-YEAR AGREEMENT, FROM JANUARY 1, 2026 — DECEMBER 31, 2028, WITH THE SEWARD CHAMBER OF COMMERCE FOR THE PROVISION OF VISITOR SERVICES AND ECONOMIC DEVELOPMENT ACTIVITIES IN THE AMOUNT OF $400,000 ANNUALLY, WITH A CPI INCREASE EA CH YEAR AND APPROPRIATING FUNDS WHEREAS, the Seward Chamber of Commerce and the City of Seward have a long-standing partnership where the Chamber serves as the lead marketing entity for the City; and WHEREAS, Seward enjoys a vibrant visitor season, and the Chamber promotes a wide variety of industries to make Seward an attractive place to live, work, and play; and WHEREAS, the scope of the agreement is structured around three primary service categories: economic development, visitor information services, and destination management; and WHEREAS, there was a discussion held at the January 26, 2026 City Council Meeting, and it was requested that administration bring a resolution forward with the draft proposal; and WHEREAS, there are a number of items that need to be discussed and clarified before the contract is finalized. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council hereby authorizes the City Manager to enter into a three-year contract with the Seward Chamber of Commerce. Section 2. Funding in the amount of $400,000 is hereby transferred and appropriately included in the City's operating budget FY26 from the expense account 01000-1180-7801 contribution to the Seward Chamber of Commerce. Section 3. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 9T" DAY OF FEBRUARY 2026. 5° 1. ..K. Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2026-017 Page 2 of 2 AYES: Warner, Draper, Barnwell, Crites, Osenga, McClure NOES: None ABSENT: Calhoon ABSTAIN: None ATTEST: /—i Kris Peck City Clerk City Council Agenda Statement Meeting Date: February 9, 2026 To: City Council Through: Kat Sorensen, City Manager Subject: Resolution 2026-017: Authorizing the City Manager to Enter into a Five - Year Agreement, from January 1, 2026 — December 31, 2030, with the Seward Chamber of Commerce for the Provision of Visitor Services and Economic Development Activities in the Amount of $400,000 Annually, with a CPI Increase Each Year and Appropriating Funds Background and justification: The Seward Chamber of Commerce and the City of Seward have a long history of collaboration which is focused on driving economic growth in the community and providing visitor services. The Seward Chamber of Commerce also serves as the lead marketing entity for the City of Seward. In the 2025/2026 Operating Budget, the City Council approved a flat fee of $300,000 for the Seward Chamber of Commerce. The scope of the agreement is structured around three primary service categories including economic development, visitor information services, and destination management. On the January 26th Council meeting, a discussion was sponsored by Councilmember Warner on the Chamber Contract which included a draft proposal. The draft proposal has a contract rate of $400,000 for 2026 with a CPI increase each year. The finances for the current proposal would be (based on the 2025 cpi of 2.7%): 2026 - $400,000 2027 - $410,800 2028 - $421,891 2029 - $433,283 2030 - $444,981 The total financial obligation over 5 years based on those numbers is $2,110,956. The proposed contract provides for regular reporting to ensure the Chamber continues to meet and align with the City's Comprehensive Plan. The CPI needs to be discussed/defined further. Is the annual CPI going to be used? Often CPI is determined on a 5-year average or given minimums and maximums to ensure stability, year over year. Additionally, the funding source needs to discussed further. The bed tax total revenue for 2024 was $873,682.45 (2025 Bed Tax is not yet finalized). The intent of bed tax was that the chamber would receive half. Will there be a different funding source if the contracted rate goes over the 50% of the bed tax collected? The City Attorney made additions to the contract (see new Sections 13, 14, and 15) Comprehensive and Strategic Plan Consistenc This legislation is consistent with (citation listed): Comprehensive Plan: 3.1 Economic Development Strategic Plan: Other: Certification of Funds • Total amount of funds listed in this legislation: This legislation: Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact X Funds are: Budgeted Line item(s): Not budgeted Not applicable $ 400,000 $ 400,000 Fund Balance Information Affected Fund: General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: X Yes Attorney Signature: s/Sam Severin Not applicable Comments: Administration Recommendation Adopt Resolution Other: THREE-YEAR CONTRACT PROPOSAL Dear Mayor and Members of the City Council, This Economic Development Partnership Agreement outlines the services the Seward Chamber of Commerce, Conference and Visitors Bureau (SCC-CVB) is proud to continue providing on behalf of the City, as well as the resources needed to deliver those services in a way that reflects the growth of our community. The proposed three-year agreement includes a flat base funding amount with an annual adjustment tied to the Anchorage CPI-U, providing stability and predictability for both the City and the Chamber as we plan for the years ahead. Seward is on the cusp of an exciting new chapter. With the opening of a new cruise ship terminal, harbor facilities, new emergency services buildings, new harbor commercial development, the potential for a larger Coast Guard presence, and new and expanding hotels, our community is experiencing growth that reflects years of thoughtful planning and investment by the City and community. This agreement reflects our long-standing partnership evolving in step with that progress. This updated contract reflects the cost of delivering the professional, year-round services the City has long entrusted to SCC-CVB. Much of the proposed adjustment is driven by staffing needs, as the scale and expectations of our Visitor Center and destination management responsibilities continue to grow alongside visitation and community activity. As our Visitor Center, marketing reach, and responsibilities grow, it is more important than ever to share Seward's story from a local perspective. Every visitor who walks through our doors should leave not only informed, but inspired to appreciate Seward as a vibrant community, not just a destination. The Visitor Center should also continue to serve as a trusted resource for residents, businesses, and workers, connecting people to services, opportunities, and one another. 2001 SEWARD HIGHWAY 99664 SEWARD ALASKA SEWARD.COM (907)224-8051 ,I",i. Sairard CHAMBER THREE-YEAR CONTRACT PROPOSAL This agreement is built around three core service areas that reflect both our historic role and our future responsibility: • Visitor Information and Management Services • Destination Marketing Organization (DMO) • Community and Industry Development We are proud of the partnership the City and the Chamber have shared for decades, and we offer this contract in the same spirit in which that relationship began - neighbors working together to care for our town, support our local economy, and ensure that as Seward grows, it does so in a way that benefits our community. Sincerely, Amanda Sweeting Executive Director (907)630-1134 Director@seward.com 2001 SEWARD HIGHWAY 99664 SEWARD ALASKA SEWARD.COM (907)224-8051 CHAMBER ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU THIS AGREEMENT is effective the 1st day of January 2026, by and between the City of Seward, Alaska, ("City"), and the Seward Chamber of Commerce, Conference and Visitors Bureau ("SCC-CVB"), a not -for -profit corporation of the State of Alaska. The purpose of this Agreement is to define the roles and obligations of the parties regarding Economic Development, Visitor Information Services, and Destination Marketing. The parties agree as follows: SECTION 1— GENERAL The parties enter into this agreement with the understanding that both benefit from Economic Development, Visitor Information Services, and Destination Marketing and that the combined marketing efforts of the parties is more efficient, practical, and professional. SCC-CVB agrees to perform the services outlined in this Agreement with due diligence and care and in a good and professional manner. SECTION 2— PERIOD OF PERFORMANCE - THREE YEARS The initial term of this Agreement shall be from January 1, 2026, through December 31 st, 2028. SECTION 3 — SCOPE OF SERVICES SCC-CVB shall provide services to the City under this Agreement within the following three primary categories: A. Visitor Information and Management Services SCC-CVB shall manage and operate the Seward Visitor Center and provide visitor information services, including: • Providing year-round, trained staff to respond to visitor inquiries. • Staffing the Harbor Derby Booth and Cruise Ship Terminal on cruise ship days. • Creating and maintaining informative displays, maps, and exhibits highlighting local amenities and cultural information. Swot— d CHAMBER ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU • Providing public restroom facilities, free shuttle stop services, and lost and found. • Supporting visitation management and visitor flow through information services and coordination. B. Destination Marketing Organization (DMO) Services SCC-CVB shall serve as the City's Destination Marketing Organization and shall: • Develop and execute an annual destination marketing and economic development plan to promote business development, workforce attraction, residency, and visitation to in -state and out-of-state audiences. The plan shall be reviewed annually and presented to the City Manager, and shall identify activities for the upcoming year. • Develop and maintain the City's destination brand and visual identity in coordination with the City, including messaging, design standards, and promotional assets that reflect Seward's character, values, and economic priorities. • Represent and promote Seward at regional, state, and national trade shows, conferences, and expos, including workforce, tourism, and economic development forums, to market the community as a premier destination to visit, live, and work. • Produce and distribute an annual Seward Destination Guide and semi-annual Marine and Hometown Guides, in both print and digital formats, showcasing Seward as a place to live, work, and visit. • Maintain and manage Seward.com as the City's primary visitation and relocation website, promoting local businesses, attractions, cultural resources, and sustainable tourism. • Conduct year-round marketing and advertising in print, online, radio, and other commercial -quality media, including press releases and promotional campaigns. • Include references to City services, facilities, and functions in relevant publications and marketing materials. C. Community and Industry Development SCC-CVB shall support community and industry development by: CHAMBER ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU • Developing and implementing an annual economic development and visitation management strategy in coordination with Community Development. • Providing in -kind support and collaboration with partner organizations, including the Alaska Small Business Development Center (SBDC). • Promoting business development, workforce attraction, and year-round economic vitality through marketing, outreach, and industry engagement. • Supporting sustainable tourism practices and coordination with local stakeholders, including the harbor, cruise industry, the greater community and businesses. SECTION 4— REPORTING SCC-CVB will meet with the City Manager quarterly to report on its activities and accomplishments under this Agreement. In addition, SCC-CVB shall meet quarterly with the City Manager (or designee) to review progress, discuss upcoming priorities, and collaboratively identify opportunities for coordination related to Chamber programs, visitor services, destination marketing, and economic development activities. These quarterly check -ins are intended to ensure regular communication, alignment of goals, and ongoing collaboration between the City and SCC-CVB. SECTION 5— COMPENSATION SCC-CVB shall be paid Four Hundred Thousand Dollars ($400,000) per year for the services outlined in Section 3 of this Agreement. This Agreement shall be for a term of three (3) years with a flat base funding amount, and shall include provisions for an annual funding adjustment based off of a 5-year average of the Anchorage Consumer Price Index for All Urban Consumers (CPI-U). The City shall pay this amount in two prorated installments each year, invoiced by the Chamber of Commerce and due on January 1 and July 1. Supplemental Budget Requests. SCC-CVB shall submit any budget requests for services not specifically covered under this agreement by Oct 1 of each year for consideration in the City of Seward operating budget for the fiscal year beginning on Jan 1. Budget requests should be of sufficient detail to be considered by the City and Sf1wcm1 CHAMBER ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU should include backup information and an explanation of why SCC-CVB desires additional compensation or funding, and why the services are required. The City is under no obligation to approve supplemental budget requests. SECTION 6— MODIFICATION/ AMENDMENT This Agreement may not be modified or amended except by writing signed by both parties hereto. SECTION 7— EQUAL EMPLOYMENT OPPORTUNITY SCC-CVB shall operate in compliance with all federal, state, and local equal employment and civil rights laws and regulations. SECTION 8— PERMITS, LAWS AND TAXES SCC-CVB shall acquire and maintain in good standing all permits, licenses, and other entitlements necessary to the performance of this Agreement. Alt actions taken by SCC-CVB under this Agreement shall comply with all applicable statutes, ordinances, rules, and regulations. SCC-CVB shall collect and/or pay, if applicable, any taxes pertaining to its performance under this Agreement. SECTION 9— RELATIONSHIP OF THE PARTIES This Agreement is not intended to create, and nothing herein should be construed to create a joint venture or any agency relationship between the City and SCC-CVB. SECTION 10— CONTRACT ADMINISTRATION The Seward City Manager, or the Manager's designee, shall be the representative for administering this Agreement on behalf of the City. The Executive Director of SCC- CVB shall be the representative for administering this Agreement on behalf of the Seward Chamber of Commerce and CVB. SECTION 11— INTEGRATION This Agreement contains the entire agreement of the parties. Alt prior negotiations, statements, representations, warranties, and assurances, whether oral or written and St1war1 CHAMBER ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU which are in any way related to the subject of this Agreement, are merged and integrated in this Agreement. SECTION 12— INTERPRETATION AND ENFORCEMENT This agreement is being executed by the parties' following negotiations between them. Accordingly, any rule of construction or interpretation allowing for construction or interpretation against the drafter of this Agreement shall not apply. The Agreement shall instead be construed according to the fair intent of the language, not for or against any party. The titles of sections in this Agreement are solely for convenience of reference and shall not affect the meaning, construction, or effect of this Agreement. SECTION 13— TERMINATION This Agreement may be terminated by either party serving upon the other 90 days prior written notice of termination of the Agreement. If the City terminates this agreement, the City agrees to pay for reasonable expenses already incurred at the time of notification of termination. SECTION 14— LIABILITY SCC-CVB 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 resulting from the SCC-CVB's use of the City's funds or SCC- CVB's actions taken pursuant to this Agreement, including the SCC-CVB's employees, assignees, contractors, agents or the public. SECTION 15— INSURANCE Prior to disbursement of any funds by the City, SCC-CVB 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 ONE MILLION DOLLARS ($1,000,000) limit from any one occurrence. SCC-CVB will add the City to its general liability insurance as an Additional Insured. SCC-CVB shall maintain, at SCC-CVB sole cost and expense, workers' compensation insurance as required under Alaska law. ,\:!, Smtw- CHAMBER ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to the City. The minimum insurance requirements under this Agreement shall not act to limit the SCC-CVB's liability for any occurrence and shall not limit SCC-SVB's duty to defend and indemnify the City for claims related to this agreement SECTION 16— UNDERSTANDING SCC-CVB acknowledges that its governing board has authorized the Director to sign this Agreement. SECTION 17— SEVERABILITY This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which taken together shall be deemed a single instrument. This Agreement shall be effective upon the signature of both parties SECTION 18— COUNTERPARTS AND EFFECTIVE DATE This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which taken together shall be deemed a single instrument. This Agreement shall be effective upon the signature of both parties. SECTION 19— SURVIVAL OF REPRESENTATIONS AND WARRANTIES The representations, warranties, covenants, and agreements of the parties under this Agreement, and the remedies of either party for the breach of such representations, warranties, covenants, and agreements by the other party, shall survive the execution and termination of the contract. Savoie— d CHAMBER ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU IN WITNESS WHEREOF, the parties have executed this Agreement on the dates shown below: Kat Sorensen Seward City Manager City of Seward PECK Amanda Sweeting Executive Director Seward Chamber of Commerce, Conference and Visitors Bureau sss-lsimset ,OF1 SE•v4 4, a� ;3 - • SEAL ° . ,_ . ''•.qTE OF 0-;.•` °11111111I*%, i FINANCIAL BREAKDOWN CHAMBER The attached financial summary outlines how the City's 2025 contract funds were allocated across SCC-CVB operations and presents projected costs for 2026. The highlighted yellow sums in the 2026 column reflects anticipated increases associated with staffing needs, facility operations, and destination marketing efforts. The percentage column indicates the portion of each total expense that is attributable to services performed under the City contract. For example, while certain positions represent full annual salaries funded through multiple revenue sources, only the percentage shown reflects the share of that cost dedicated to City - contracted services. This approach provides transparency in how City funds directly support the delivery of visitor services, destination marketing, and economic development on the City's behalf. AREAS OF INCREASE: • Visitor Center Staffing: Visitation doubled from 2024 to 2025, with nearly 3,000 visitors in July atone. Anticipated growth in cruise traffic requires additional staffing to adequately serve the Visitor Center, Derby Booth, and Cruise Ship Terminal. • Building and Interior Upgrades: Increased visitation, rising utility costs, and general wear on the facility require additional investment in maintenance and interior improvements so the Visitor Center can function properly and better reflect Seward's story and community character. • Destination Marketing &t Communications: Higher visitation requires increased print quantities of the Destination Guide, along with an anticipated 8% rise in printing costs and a $12,000 increase in website expenses. Cost impacts are partially offset by bringing guide design in-house and discontinuing the Crowdriff platform. Seward Chamber of Commerce City Contract Allocation 2025 Contract 2026 Cost (%) Costs Projections Expense 6000 • Salaries & Benefits 6100 Office -Staff Salaries 6110 • Communications Coordinator 40% 24,000.00 24,000.00 6111 • Executive Director 40% 34,000.00 34,000.00 611 Visitor and Membership Coordinator 50% 30,000.00 30,000.00 6118 • Visitor Services 6119 • Visitor Center Employees 100% 15,000.00 6280 • Payroll Taxes 30% 10,500.00 Total 6000 • Salaries & Benefits 55,000 12,297 113,500.00 155,297 7000 • Other Operating Expenses 7100 • Utilities 7110 - HQ Seward Public Utilities 100% 8,677.80 8,677.80 7115 • Trash Service 100% 925.91 925.91 7121 • Telephone Line Charges 100% 2,076.21 2,076.21 7124 • Internet Services 50% 1,907.13 1,907.13 7130 • Derby Booth/Cache Utilities 100% 468.14 468.14 7150 • Web Site Hosting 100% 4,190.80 4,190.80 7160 - Fuel Oil 50% 939.70 939.70 Total 7100 • Utilities 19,185.69 19,185.69 7200 • Building Operations 7210 Buidling & Grounds Maintenance 50% 3,473.00 7,000.00 7211 • Visitor Center Upgades 100% 10,000 Total 7200 • Building Operations 3,473.00 17,000.00 7300 • Office Operating Expense 7303 • Merchant Service Fees 30% 3,323.49 3,323.49 7304 - Computers & Digital Subscriptions 50% 2,873.38 2,873.38 7308 • Insurance - General Liability 50% 2,927.50 2,927.50 7310 • Office Expense 30% 3,386.56 3,386.56 7312 • Xerox Lease 30% 894.8 894.8 7313 • Postage - General/Admin 30% 387.42 387.42 7320 • Travel/Trade Show Expenses 100% 4,317.29 4,317.29 7321 - Professional Services 7316 - Accounting Services 30% 7,017.50 7,017.50 Total 7300 • Office Operating Expense 25,127.94 25,127.94 8000 • Marketing & Economic Developmnt 8100 • PrintMleb Advertising 8110 • Econ Development Promotion 100% 2,050.00 2,050.00 Page 1 of 2 Seward Chamber of Commerce City Contract Allocation 2025 Contract 2026 Cost (%) Costs Projections 8120 - TourismDigital/ Print Marketing 100% 6,958.77 6,958.77 8140 • Graphics/Production 100% 359.95 359.95 8150 • Seward.com 100% 49,457.77 61,457.77 Total 8100 • Print/Web Advertising 58,826.49 70,826.49 8200 • Specialty Collateral 8210 • Economic Development Pieces 8230 Digital Tourism Promotions Total 8200 • Specialty Collateral 100% 2.364,00 2.364.00 100% 6,033.87 6,033.87 8,397.87 8,397.87 8400 • Destination Guide 8410 • Guide Production 100% 7,000.00 8420 • Guide Printing 100% 75,000.00 8430 Guide Distribution 100% 19,000.00 8440 • Postage & Frt 100% 243.00 $0.00 85,000 19,000.00 1.000 Total 8400 • Destination Guide 101,243.00 105,000 8600 • Econ Dev Programs & Services 8601 • Crowdriff 100% 7,293.30 S0.00 Total 8600 • Econ Dev Programs & Services 7,293.30 0 TOTAL: 337,047.29 400,834.99 Page 2 of 2