#2 Approve agreement with Janesville Area Convention and Visitors Bureau (File Res. #2010-695)CITY MANAGER’S OFFICE MEMORANDUM
April 12, 2009
TO: City Council
FROM:Rebecca Smith, Management Assistant
SUBJECT: Action on a Proposed Resolution Approving an Agreement for Tourism Promotion
and Development Services between the City of Janesville and the Janesville Area
Convention and Visitors Bureau – (File Resolution 2010-695)
Request
The City’s agreement with the Janesville Area Convention and Visitors Bureau (JACVB) for
tourism promotion services expires at the end of April and city staff and the JACVB request the
Council approve a motion to extend the agreement for another five years.
Staff Recommendation
Staff recommends the Council adopt File Resolution 2010-695 to approve an agreement for
tourism promotion and development services between the City of Janesville and the Janesville
Area Convention and Visitors Bureau.
City Manager Recommendation
The City Manager recommends approval.
Suggested Motion
I move the Council approve File Resolution 2010-695 to approve an agreement for tourism
promotion and development services between the City of Janesville and the Janesville Area
Convention and Visitors Bureau.
Background
In 2000, the City entered into an Agreement for Tourism Promotion and Development Services
with the Janesville Area Convention and Visitors Bureau (JACVB). This Agreement provided
the JACVB room tax revenues in return for the JACVB’s provision of “tourism” services for the
City. The original Agreement expired in 2005 and was renewed for another five years. The
current Agreement expires on April 30, 2010, and both parties concur to extend the Agreement
for another five years.
The new Agreement for Tourism Promotion and Development Services would cover the period
from May 1, 2010 through April 30, 2015, as attached. The new agreement follows the format
of the previous agreements with minor changes to update statutory references and changes in
the dates for financial reports. The JACVB asked that a financial audit be required only once
every three years; in the other years the JACVB would contract with the audit firm to perform a
“review” instead of an audit. A financial review is less costly than a full-scale audit; staff is in
agreement with this change and the City Comptroller has no concerns.
The JACVB Board has notified the City of its interest in renewing the Agreement. They have
provided summary information of JACVB activities, as attached.
Tax and Allocation Survey
Staff compiled information about the room tax percentages and allocation of room taxes, as
depicted. The room tax rate for the communities surveyed varies from 5.5-8%, with Janesville at
an 8% room tax rate. The allocation of the revenue varies greatly; some CVBs receive a very
high percentage of the revenue generated (75-100%) and some are on the lower side with 30%.
CVBs with higher allocation percentages may be responsible for services on behalf of the
municipality, such as administering special grant programs or planning community-wide events,
which may require a higher level of funding. The Janesville CVB receives 37.5% of the room tax
revenue that is generated. Revenue generated by the room tax varies greatly by community.
Some communities receive $1.4-2.1 million on the high side, to a lower amount of $350,000 -
430,000. Janesville is in the middle at about $680,000.
Janesville Area Convention and Visitors Bureau Survey
Wausau/Central
123
BeloitEau ClaireFond du LacJanesvilleWisc.Racine
Room Tax Rate Percentage
8%6-8%7%8%5.5-8%6-8%
100% of
City10.0%30-70%0.0%62.5%remaining 3-10-25%
Allocation of
5.5%
Room Tax
Revenue
100% of the first
CVB90.0%30-70%100.0%37.5%75-90%
2.5%
Money
2009$ 430,000 $ 2,100,000 $ 354,000$ 681,989$ 1,440,000$ 800,000
generated by
room tax levy
1
Represents Eau Claire and 4 other communities. Room tax and allocation percentages vary depending on
community.
2 Represents Wausau and 6 other communities. Room tax percentages vary depending on community. CVB receives
the first 2.5% of room tax revenue from each municipality.
3
Represents Racine and 3 other communities. Room tax and allocation percentages vary depending on community.
Analysis
Development of the community’s tourism resources is one component of a comprehensive
economic development strategy. The JACVB and the City of Janesville have a strong and
positive working relationship and staff supports the renewal of this agreement.
Attachments: File Resolution 2010-695, Agreement for Tourism Promotion and Development
Services, Summary of JACVB Activities
Resolution 2010-695
A Resolution Approving an Agreement for Tourism Promotion and Development Services between
the City of Janesville and the Janesville Area Convention and Visitors Bureau
WHEREAS, the Common Council of the City of Janesville adopted Ordinance 2000-11 on March 13,
2000, which sets a room tax levy and allocates a portion of the revenues produced therefrom to the
Janesville Area Convention and Visitors Bureau, Inc. (JACVB) for the purpose of tourism promotion and
development; and;
WHEREAS, Janesville General Ordinance 3.20.130 and Common Council in File Ordinance 2000-11 state
that the payment of their portion of the collected room tax revenues to the JACVB shall be made under the
terms of an agreement between the City of Janesville and the JACVB for the provision of tourism
promotion and development services, activities, promotions, and events; and
WHEREAS, the JACVB has been organized as a not-for-profit 501 (c)(3) private corporation whose
mission is to lead and support the development of the convention and tourism industry in the greater
Janesville area and to create a positive economic impact, thus enhancing the quality of life for area
residents; and
WHEREAS, the City and the JACVB have negotiated an Agreement for Tourism Promotion and
Development Services which Agreement is reiterated, attached hereto, and incorporated herein as if fully
set forth verbatim; and
WHEREAS, the Common Council of the City of Janesville hereby find that entering into the Agreement is
in the best interest of the City and of to the citizens, residents, and businesses of the City.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that attached
Agreement for Tourism and Development Services with the Janesville Area Visitors and Convention
Bureau is approved; and further authorize the City Manager and/or his designee(s) to execute and enter
into the Agreement on behalf of the City of Janesville; and
BE IT FURTHER RESOLVED, that the City Manager and/or his designee(s), on behalf of the City
of Janesville, is/are hereby authorized and empowered to negotiate, draft, modify, amend, review,
execute, enter into, and file additional agreements, and to take whatever other actions as the
City Manager may determine, from time to time, necessary and/or desirable to effectuate the
intent of this Agreement and/or this Resolution.
.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Truman
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: City Manager’s Office
Prepared by: Management Assistant
Agreement for Tourism Promotion and Development Services
WHEREAS, the Common Council of the City of Janesville adopted Ordinance 2000-11 on
March 13, 2000, which sets a room tax levy and allocates a portion of the revenues produced
therefrom to the Janesville Area Convention and Visitors Bureau, Inc. (JACVB) for the purpose
of tourism promotion and development; and;
WHEREAS, Ordinance 2000-11 further states that the payment of room tax revenues to the
JACVB shall be made under the terms of an agreement between the City of Janesville and the
JACVB for the provision of tourism promotion and development services, activities, promotions,
and events; and
WHEREAS, the JACVB has been organized as a not-for-profit 501 (c)(3) private corporation
whose mission is to lead and support the development of the convention and tourism industry in
the greater Janesville area and to create a positive economic impact, thus enhancing the quality
of life for area residents; and
WHEREAS, the City of Janesville and the JACVB intend that the foregoing provisions are
contractual in nature and are not to be construed as mere recitals to this Agreement;
NOW, THEREFORE, IT IS AGREED by and between the City of Janesville, a Wisconsin
Municipal Corporation with its principal offices located at 18 N. Jackson St., City of Janesville,
County of Rock, Wisconsin, 53547-5005 (hereinafter “CITY”) and the Janesville Area
Convention and Visitors Bureau, Inc. a Wisconsin not-for-profit 501 (c)(3) private corporation,
with its principal offices located at 20 S. Main Street, Suite 17, City of Janesville, County of
Rock, Wisconsin, 53548 (hereinafter “JACVB”) as follows:
PURPOSE, ,
1. . The JACVBsolely as an independent contractor shall operate a tourism
,
promotion program provide related services for the City of Janesville, and shall provide
“tourism” services to and for the City of Janesville as that term is defined in Section
66.0615(1)(e), Wisconsin Statutes. The CITY shall allocate a portion of the room tax revenues
collected annually by the CITY to the JACVB as set forth in paragraph 4 below.
TERM
2. . The term of this Agreement shall be for five (5) years commencing on
May 1, 201005 and ending on April 30, 201510. This Agreement is not renewable, except on
such terms and conditions as the parties may then agree to in writing. In the event that the
JACVB desires to negotiate a renewal of this Agreement for another five (5) year period, it shall
deliver a notice of intent to renew this Agreement to the CITY no later than September 30,
201409.
EARLY TERMINATION.
3. Either party shall have the right to terminate this
Agreement without cause, upon six (6) months prior written notice to the other party. In the
event that a party has good cause for termination, it shall give written notice thereof to the other
party, who shall have fifteen (15) calendar days from the receipt of said notice to correct the
.
deficiency described in said noticeUpon failure to timely correct the defect or deficiency, the
Agreement may be terminated by the providing a written notice of termination delivered to the
other party.
COMPENSATION
4. . The CITY shall be solely responsible for the collection of all room
tax as permitted by Section 66.0615 of Wisconsin Statutes, as from time to time amended or
renumbered. The CITY shall allocate a portion of the annualroom tax collections to the JACVB
as set forth in the City of Janesville Room Tax Ordinance (ss. 3.20.020.B.) as amended or
renumbered from time to time. The allocation of room tax revenues to the JACVB shall be made
monthly, no later than 31 days after the conclusion of the month in which the room taxes were
collected.
REPORTS
5. .
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a. The JACVB shall annually, on or before September 1, prepare and submit to the
City of Janesville Clerk-Treasurer a written Work Program and Annual Budget detailing work
objectives; proposed activities to implement the objectives; performance measures used to
evaluate results; and the proposed budget for the coming calendar year.
st
b. The JACVB shall annually, on or before May 1, prepare and submit to the City
Manager, an Annual Report summarizing work objectives for the previous calendar year,
activities undertaken to achieve objectives, results achieved, and a financial statement in a form
acceptable to the City of Janesville Administrative Services Director summarizing all JACVB
revenues and expenditures for the previous calendar year.
st
AUDITS
6. . The JACVB shall prepare and submit on or before May June 1 an annual
financial audit, consistent with acceptable accounting practices, if requested by to the City of
Janesville Finance DirectorComptroller once every three years. In the years where an audit is not
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required, the JACVB shall prepare and submit on or before June 1 a financial review, consistent
with acceptable accounting practices.
OTHER FUNDING
7. . Nothing in this Agreement is intended to prohibit the
JACVB from seeking or receiving additional funding from sources other than the CITY.
INSURANCE.
8. The JACVB shall maintain all insurance coverage, such as general
liability, worker’s and unemployment compensation, directors and officials liability and other
insurance coverages necessary to carry out its duties under the terms of this Agreement. Copies
of current policies shall be included in the Annual Report identified in Paragraph 5 of this
Agreement.
INDEMNIFICATION.
9. The parties hereby release each other from all debts,
claims, demands, damages, actions and causes of action whatsoever, which may result from the
parties’ relationship under this Agreement, and further agree to hold each other free and harmless
from any claim for damages which may be made by reason of damage or injury to persons
arising from the respective party’s performance of its duties under this Agreement.
NATURE OF RELATIONSHIP.
10. The JACVB shall be deemed an independent
contractor and shall not indicate or imply that the CITY has any supervisory or other
employment control over the JACVB or the JACVB’s officials, officers, employees or agents,
except as outlined in this Agreement. Nothing in this Agreement shall constitute or be construed
to be or create a partnership or joint venture among the parties.
MEETINGS
11. . The JACVB will comply with Sections 19.84 and 19.85 of Wisconsin
Statutes, generally known as the “Open Meetings Law”.
MISCELLANEOUS.
12. This Agreement may not be assigned without the express
written consent of the other party. Such consent shall not be unreasonably withheld.
Notwithstanding any provision to the contrary, none of the obligations or benefits contained
within this Agreement shall run to or be enforceable by any party other than the parties to the
Agreement. This Agreement constitutes all of the agreements and understandings of whatever
nature or kind existing between the parties and shall not be changed or modified except in
writing and signed by the duly authorized agents of the parties. If any provision of this
Agreement shall become invalid or unenforceable, the remainder of this Agreement shall not be
affected thereby, and each and every remaining provision shall be valid and enforced to the
fullest extent permitted by law.
NOTICES.
13 Except as otherwise provided for in this Agreement, all notices shall be in
writing and shall be effective when delivered in person to the other party or if delivered by first
class mail, the next business day after the postmark thereof. Notices shall be delivered as
follows:
To the CITY: City Manager To the JACVB: Executive Director
City of Janesville JACVB
P.O. Box 5005 20 S. Main Street, Suite 17,
Janesville, WI 53547-5005 Janesville, WI 53548
Agreed to an accepted this ____ day of __________________, 2010.
CITY OF JANESVILLE Janesville Area Convention and
Visitors Bureau, Inc.
Eric J. Levitt, City Manager Chairperson
Jean A. Wulf, Clerk-Treasurer Secretary