HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/07/1999 - RESOLUTION 99-108 AUTHORIZING MODIFICATION OF THE ITEM NUMBER: 18
AGENDA ITEM SUMMARY DATE: September 7, 1999
FORT COLLINS CITY COUNCIL STAFF:
Frank W. Bruno
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SUBJECT:
Resolution 99-108 Authorizing Modification of the City's Contract with the Fort Collins Convention
& Visitors Bureau (CVB) to Reallocate Current CVB Budget Resources to Provide Proactive
Conference and Convention Sales. °
RECOMMENDATION:
Staff recommends adoption of the Resolution.
FINANCIAL IMPACT:
No additional funding will be provided at this time. The City will, however, allow the CVB to
reallocate roughly $32,000 from its current budget for the above purpose. These funds were
previously dedicated to the operation of a film office that is no longer needed. The balance of the
funds were previously directed towards functions that were not critical,or did not provide significant
return on the investment. In the future, additional Lodging Tax may be allocated to the CVB or 1
another tourism services provider for this purpose.
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EXECUTIVE SUMMARY:
In 1996 the City of Fort Collins modified its contract for tourism and conference services with the s
CVB. Pursuant to the previous contract,the CVB received a straight 75%of the total Lodging Tax
collected v<ithin the city. With the new contract in 1996,the focus was somewhat shifted to a more
local event and general tourism direction.The CVB was limited to a flat$250,000 per year plus CPI
growth. The new agreement also eliminated proactive conference and convention sales from the
Bureau's contract. limiting the focus to general tourism, local event promotion, and reactive
conference and convention activity.
Recently. Lodging Tax collections have begun to decline despite the growth in new hotel rooms.
While this may be due in part to a general decline in tourism statewide, and lack of statewide l
marketing.there may well be a connection with the elimination of proactive conference/convention
sales that coincided with the 1996 contract modification.
City staff and CVB representatives recently agreed that it made sense to initiate an evaluation of the
impacts of tourism spending within our communim.Proposals are now being reviewed,and the work
on this project should be completed this coming Fall. This work will assist the City of Fort Collins
in making longer-term funding decisions regarding the importance of general tourism, as well as x
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future conference and convention activity.
)ATE: September 7, I999 2 ITEM NUMBER: 18
The reallocation of current resources to return some measure ofproactive conference/convention will
also help City staff and the CVB in evaluating this segment of the market.
The current contract between the City of Fort Collins and its vendor, the Fort Collins Convention
&Visitors Bureau was initially set up in 1996 as a one-year contract,with four(4) successive one-
year renewals. The final renewal will commence on January 1,2000,and will expire on December
31, 2000.
An evaluation of the impact of this modification will be prepared by staff prior to submitting
recommendations regarding future contracts for these services.
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. RESOLUTION 99-108
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING MODIFICATION OF THE CITY'S CONTRACT
WITH THE FORT COLLINS CONVENTION & VISITORS BUREAU (CVB)
TO REALLOCATE CURRENT CVB BUDGET RESOURCES
TO PROVIDE PROACTIVE CONFERENCE AND CONVENTION SALES
WHEREAS,pursuant to Ordinance No. 20, 1984,the City of Fort Collins established a 3%
Lodging Tax on hotel/motel rooms with City limits for the purpose of promoting tourism,
conventions and other activities which utilize public accommodations within the city; and
WHEREAS,the City ofFort Collins,pursuant to Resolution 86-181,contracted with the Fort
Collins Convention&Visitors Bureau(CVB)to coordinate tourism and visitor promotion activities
pursuant to Section 25-244 of the Code of the City of Fort Collins; and
WHEREAS, a staff team reviewed the CVB's performance in 1995, and evaluated various
options for continued tourism and visitor promotion services that maximize community benefits;and
WHEREAS,the City,pursuant to Resolution 95-177,amended its contract with the CVB to
redirect its focus towards general tourism and local event and visitor promotion, and away from
proactive conference and convention sales; and
WHEREAS,the City of Fort Collins and the CVB now agree that it is in the public interest
to enhance the current contract by adding the ability to engage in conference and convention sales
and marketing, funded through a reallocation of the existing CVB budget; and
WHEREAS, funds have been budgeted by the CVB and have been approved for this use by
the Board of Directors of the Fort Collins Convention& Visitors Bureau; and
WHEREAS,future recommendations regarding additional funding for this purpose shall only
be made following the conclusion and evaluation of the Tourism Impact Study by City and CVB
staff.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT COLLIN'S that the Purchasing Agent is hereby authorized to amend the contract with the Fort
Collins Convention & Visitors Bureau to allow for the provisions of proactive conference and
convention sales and marketing.This modification shall be in force upon execution of an addendum
consistent with this Resolution for the remainder of the current contract tern, and the final annual
term, which ends December 31, 2000.
Passed and adopted at a regular meeting of the City Council held this 7th day of September,
A. D. 1999.
Mayor
ATTEST:
City Clerk