HomeMy WebLinkAboutRFP - P1010 CONVENTION AND VISITORS SERVICESAdministrative Services
Purchasing Divison
215 North Mason Street y 2nd Floor y P.O. Box 580 y Fort Collins, CO 80522-0580 y (970) 221-6775 y Fax
(970) 221-6707
www.fcgov.com
REQUEST FOR PROPOSAL
P1010 Convention and Visitor Services
Written proposals, five (5) will be received at the City of Fort Collins' Purchasing Division, 215
North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before
3:00 p.m. (our clock), February 28, 2006. Proposal No. P1010. If delivered, they are to be
sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address
is P.O. Box 580, Fort Collins, 80522-0580.
Questions concerning the scope of the project should be directed to Project Manager Kelly
DiMartino, (970) 416-2028.
Questions regarding proposals submittal or process should be directed to James B. O’Neill II,
CPPO, FNIGP (970) 221-6775.
A copy of the Proposal may be obtained as follows:
1. Download the Proposal/Bid from the BuySpeed Webpage,
https://secure2.fcgov.com/bso/login.jsp
2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request
a copy of the Bid.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall
have a financial interest in the sale to the City of any real or personal property, equipment,
material, supplies or services where such officer or employee exercises directly or indirectly
any decision-making authority concerning such sale or any supervisory authority over the
services to be rendered. This rule also applies to subcontracts with the City. Soliciting or
accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from
any person who has or is seeking to do business with the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be
rejected and reported to authorities as such. Your authorized signature of this proposal
assures that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
Sincerely,
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
2/9/00
P1010
Convention and Visitor Services
I. BACKGROUND
The City of Fort Collins adopted a lodging tax on March 31, 1984. The tax was to be used by
the city for the purpose of acquiring facilities and promoting tourism, conventions and other
activities which utilize public accommodations within the city and for the purpose of studying and
reducing the impact of such activities upon the facilities and infrastructure of the city.
The City has contracted with the Fort Collins Convention and Visitors Bureau for twenty years to
provide various convention and visitor services. The current contract will end on March 31,
2006. The Fort Collins Convention and Visitors Bureau has also contracted with the City to
provide services related to the state welcome center in Fort Collins. This is a separate contract
in the amount of $ 49,188.
A study “Tourism in the Local Economy” was completed in 2005. The study is attached as
EXHIBIT “A”. The results show a significant contribution to the local economy from the
hospitality sector. It also suggests that there is room for significant improvement in this sector of
the economy.
The City is soliciting proposals to provide convention and visitor services outlined in the
following scope of work and those which would capitalize on the opportunities for growth
outlined in the study.
II. SCOPE OF SERVICES:
A. The successful vendor will:
1. Be the tourism expert of the City of Fort Collins by:
i. Developing and maintaining a balanced marketing program.
ii. Producing an annual marketing plan and budget as well as a three to five year
master plan for marketing and other activities
iii. Set measurable benchmarks in all marketing related activities and produce quarterly
and annual reports addressing the progress relative to these benchmarks.
iv. Develop and carry out advertising and marketing to create awareness of Fort Collins
as a visitor’s destination, both domestically and internationally.
v. Marketing Fort Collins as an outdoor adventure and cultural tourism destination to
other Front Range communities from Denver to Cheyenne, and other communities
as deemed appropriate.
2. Promote Fort Collins and its events/attractions and amenities
3. Promote Fort Collins as a cultural center and destination.
4. Provide all staffing needed to perform convention and visitors promotional services
5. Provide customer services for all segments of the hospitality/tourism market for Fort
Collins
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6. Provide convention, conference and trade show marketing and assistance
7. Provide assistance to local service clubs and organizations to help them with their
regional and state conferences that are held in Fort Collins.
8. Provide services to convention visitors in a manner consistent with services provided to
other visitors to Fort Collins
9. Provide timely visitor/client inquiry fulfillment
10. Provide Community support through interaction with visitors and residents by:
i. Distributing brochures and maps
ii. Providing information on city transportation systems
iii. Providing visitors assistance upon request
11. Coordinate and develop programs with the FC International Visitors Council regarding
International visitors and tourism.
12. Develop community partnerships with groups including but not limited to:
i. Fort Collins International Visitors Council
ii. Fort Collins Innkeepers Association
iii. Arts Alive
iv. Cultural Resource Board
v. Poudre Heritage Corridor
13. Act as a liaison and assist in coordination of local and regional events, including Fort
Fund Events that are held in Fort Collins. This may include:
i. Workshops to help event organizers promote and organize their events
ii. Open houses
iii. Community outreach
iv. Available to offer assistance upon request
14. Provide a variety of effective marketing devices such as:
i. Develop and publish at least one promotional brochure that effectively markets Fort
Collins as a general visitor and convention destination.
ii. A web site targeted to visitors.
iii. Toll-free telephone numbers.
iv. Cooperative and pro-active marketing programs with industry partners, such as
hotels, motels, bed and breakfasts, cultural and outdoor recreation providers and
other communities as deemed appropriate.
v. Develop and deliver training sessions on tourism promotion.
vi. Deliver a newsletter.
vii. Undertake annual market research to improve marketing programs.
2/9/00
15. The City is interested in having a calendar(s) of events established and developed that is
the premier source for what is happening in Fort Collins.
i. Develop and maintain an all-inclusive online calendar and act as an information-
clearing house, specifically for:
- Community events
- Cultural events
- Tourism information
ii. Proactively solicit content and ensure the calendar is current and accurate.
iii. Actively promote the web site and calendar.
16. Programs that increase visitor spending with Fort Collins area businesses.
17. Respond if appropriate to State Film Commission inquiries promoting Fort Collins as a
desirable location.
18. Conduct annual conversion studies to measure the effectiveness of marketing activity,
and to better understand the demographic and psychographic makeup of the market.
19. Visitors Center:
i. Oversee the operation of the Colorado Welcome Center at Fort Collins as well as the
Visitors Center in Downtown Fort Collins.
(1) Vendor agrees to execute a Sublease Agreement (attached as EXHIBIT B ) and
agrees that it will at all times comply with and be bound by the requirements and
obligations of the City in all aspects of its use of 3745 East Prospect Road (the
“Center”), as set forth in the Intergovernmental Agreement for the Environmental
Learning Center/Visitor’s Center/Welcome Center, dated August 1999, by and
between the Colorado State Board of Agriculture acting by and through Colorado
State University, a State of Colorado institution of higher education, for the use
and benefit of the College of Natural Resource Recreation and Tourism
(University), and the City of Fort Collins, a Colorado municipal corporation (the
“IGA”). Vendor shall be entitled to use the portions of Center, as shown, for
office space, Visitor’s Center and Welcome Center uses, consistent with the
terms of the Scope of Work and all other provisions of the Agreement, in the
performance of its obligations under the Agreement.
(2) Vendor agrees to operate the Fort Collins Convention and Visitor’s Center in the
space designated by the City at 3745 East Prospect Road, and a location in Old
Town Plaza and agrees to:
a. Recruit, select and employ a manager and any staff necessary to operate the
Visitor’s Center.
b. Recruit, select, supervise and appropriately recognize the efforts of
volunteers necessary to operate the Visitor’s Center.
c. Make arrangements for all necessary building maintenance to the extent
required under the IGA.
2/9/00
d. Provide all utilities and insurance.
e. Submit in a timely fashion all regular reports required by the City.
f. Recognizing the City’s intent with the Visitor’s Center program is to promote
the entire City fairly, without bias to any portion of the community,
organization, association or business, interact with travelers in such a way as
to provide information on events, attractions, activities and accommodations
throughout the City. This is not intended to prohibit the Bureau from
providing information on local and regional events, attractions, activities and
accommodations.
g. Operate the Visitor’s Center from 8:00 am - 6:00 p.m. (May 1 through
September 30) and 8:00 p.m. - 5:00 p.m. (October 1 through April 30). The
Visitor’s Center may be closed on New Year’s Day, Easter Sunday,
Thanksgiving Day and Christmas Day.
h. Display the City map provided by the City.
i. The Visitor’s Center space is shared space, and Vendor shall not be entitled
to use the Visitor’s Center for separate advertising displays, signs or posters,
solicitations or sales transactions of any kind not intended as part of the
Visitor’s Center.
j. Maintain properly segregated books for the Visitor’s Center reflecting City
funds and other funds associated with the Visitor’s Center.
20. State Welcome Center:
i. Vendor agrees to operate the State Welcome Center in the space designated by the
City at 3575 East Prospect Road. The City receives a State grant annually to
operate the State Welcome Center. The vendor subcontracts with the City to
operate the State Welcome Center according to the provisions of the grant
(agreement attached as Exhibit “D”). If the State were to close the Welcome Center
this part of the scope of work would be eliminated.
ii. Recruit, select and employ a manager and any staff necessary to operate the
Welcome Center as employees. The Welcome Center manager will communicate
directly with the State’s designated Welcome Center program manager.
iii. Recruit, select, supervise and appropriately recognize the efforts of volunteers
necessary to operate the Welcome Center.
iv. Make arrangements for all necessary building maintenance to the extent required
under the IGA
v. Provide all utilities and insurance.
vi. Submit in a timely fashion all regular reports required by the State.
vii. Secure hospitality and state tourism attractions training for staff and volunteers and
at least once each year require the manager of the Welcome Center attend and
participate in training opportunities provided by the State.
viii. Recognizing the State’s intent with the Welcome Center program is to promote the
entire state fairly, without bias to any community, organization, association or
business, interact with travelers in such a way as to provide information on events,
attractions, activities and accommodations throughout the state. This is not intended
2/9/00
to prohibit the Bureau from providing information on local and regional events,
attractions, activities and accommodations.
ix. Operate the Welcome Center from 8:00 am - 6:00 p.m. (May 1 through September
30) and 8:00 a.m. - 5:00 p.m. (October 1 through April 30). The Welcome Centers
throughout the state are closed on New Year’s Day, Easter Sunday, Thanksgiving
Day and Christmas Day.
x. Display the state map provided by the State.
xi. The Welcome Center space is shared space. Bureau should make every effort to
keep separate advertising displays, signs or posters, solicitations or sales
transactions of any kind on those portions of the premises used for Welcome Center
operations.
xii. Obtain State approval on all brochures and pamphlets to be displayed in the
designated Welcome Center space prior to display or distribution. Maintain 90% of
the brochures listed as “required brochures for display at a Colorado Welcome
Center”. State approval will be based on the brochure distribution guidelines
contained in the Managers Operation Manual for the Colorado Welcome Center
Program. The Bureau will be given an opportunity to participate with other state
Welcome Center contractors and managers in periodically updating and revising the
manual. This is not intended to prevent or prohibit the Bureau from displaying any
brochures or pamphlets in an area reserved by the Bureau for information on local
events, attractions, activities and accommodations.
xiii. Generally adhere to guidance and procedures contained in the Managers Operations
Manual.
xiv. Maintain properly segregated books for the Welcome Center reflecting State funds,
matching funds and other funds associated with the Welcome Center.
xv. Provide monthly billings to the State for reimbursement of operating expenses in
accordance with the provisions of the grant.
21. Provide a list of performance measures to monitor and evaluate the effectiveness of
marketing and tourism efforts that specifically address City Council identified budget
priorities of:
i. Improving Economic Health
ii. Improving Culture, Recreational and Educational Opportunities
III. PROPOSAL SUBMITTAL REQUIREMENTS:
A. Vendor should submit its qualification and approach to provide the scope of service.
B. Performance indicators to be used to verify the scope of work is being met.
C. The total cost to provide the services.
D. And any other information which would be useful to the evaluation committee in making an
informed decision
2/9/00
IV. REVIEW AND ASSESSMENT:
Professional firms will be evaluated on the following criteria. These criteria will be the basis for
review of the written proposals and interview session.
The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and
5 being an outstanding rating.
WEIGHTING
FACTOR
QUALIFICATION
STANDARD
2.0
Scope of Proposal
Does the proposal show an understanding of the
project objective, methodology to be used and
results that are desired from the project?
2.0
Assigned Personnel
Do the persons who will be working on the project
have the necessary skills? Are sufficient people of
the requisite skills assigned to the project?
1.0
Availability
Can the work be completed in the necessary time?
Can the target start and completion dates be met?
Are other qualified personnel available to assist in
meeting the project schedule if required? Is the
project team available to attend meetings as
required by the Scope of Work?
1.0
Motivation
Is the firm interested and are they capable of doing
the work in the required time frame?
2.0
Cost and
Work Hours
Do the proposed cost and work hours compare
favorably with the project Manager's estimate? Are
the work hours presented reasonable for the effort
required in each project task or phase?
2.0
Firm Capability
Does the firm have the support capabilities the
assigned personnel require? Has the firm done
previous projects of this type and scope?
1
Reference evaluation (Top Ranked Firm)
The project Manager will check references using the following criteria. The evaluation
rankings will be labeled Satisfactory/Unsatisfactory.
QUALIFICATION STANDARD
Overall Performance
Would you hire this Professional again? Did
they show the skills required by this project?
Timetable
Was the original Scope of Work completed
within the specified time? Were interim
deadlines met in a timely manner?
Completeness
Was the Professional responsive to client
needs; did the Professional anticipate
problems? Were problems solved quickly and
effectively?
Budget
Was the original Scope of Work completed
within the project budget?
Job Knowledge
a) If a study, did it meet the Scope of Work?
b) If Professional administered a construction
contract, was the project functional upon
completion and did it operate properly?
Were problems corrected quickly and
effectively?
2
SERVICES AGREEMENT
THIS AGREEMENT made and entered into this day of , 200, by and between THE
CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to
as the "City" and the ___________________, hereinafter referred to as "Bureau".
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed
by and between the parties hereto as follows:
1. Scope of Services. The Bureau agrees to provide services in accordance
with the scope of services attached hereto as Exhibit "A", consisting of () pages, and
incorporated herein by this reference.
2. Contract Period. This Agreement shall commence January 1, 2006, and
shall continue in full force and effect until December 31, 2006, unless sooner terminated
as herein provided. In addition, at the option of the City, the Agreement may be
extended for additional one year periods not to exceed four (4) additional one year
periods. Annual increases for changes in the Scope of Work will be negotiated. Pricing
changes to the base contract shall be negotiated by and agreed to by both parties using
the Denver - Boulder CPI-U as published by the Colorado State Planning and Budget
Office as a guide. Written notice of renewal shall be provided to the Bureau and mailed
no later than ninety (90) days prior to contract end.
3. Performance Indicators. A list of performance indicators to be used as a
measuring standard for evaluating the performance of the Bureau under this Agreement
will be at least those items listed in Exhibit “B”, consisting of () page, attached hereto
and incorporated herein by this reference.
4. Nondiscrimination in Promotional Activities. The Bureau shall in its
promotional services, and specifically in its informational and promotional material,
maintain fairness, equity and impartiality to all members of the Fort Collins business
community, without regard to membership or participation in the Bureau organization.
3
5. Reports and Review. Periodically report on the Bureau’s activities,
including financial reports, and a statement of its fulfillment of the performance standards
and current developments in the Fort Collins area related to promotion of tourism and
convention activities. The City Representative, designated by the City pursuant to
Paragraph 10, below, or his/her designee, and the President of the Bureau or his/her
designee, shall meet to set the timing of the periodic reports and to review the Bureau’s
reports.
6. Annual Report. An annual report that compiles and summarizes the
information, including an audit of receipts and expenses, contained in the periodic
reports and meetings required under Paragraph 5, above, shall be prepared by the
Bureau for each year under the term of this Agreement, which report the Bureau shall
submit to the City no later than March 31 of the following year.
7. Contract Sum. The City shall pay the Bureau for the performance of this
Contract, subject to additions and deletions provided herein, the sum of Dollars ($____)
per year, to be paid to the Bureau _________ of Dollars ($00), in a manner acceptable
to both parties. It is understood that funding provided by the City pursuant hereto is not
intended to meet all costs and expenses of the Bureau; it shall therefore be an
affirmative obligation of the Bureau to raise additional funding through such other
sources as may reasonably be available to the Bureau.
8. Administrative Control of Funds/Reports.
(A) The Bureau shall keep in the City of Fort Collins true, accurate and complete
records of business conducted hereunder, which records shall be available to the City
without unreasonable delay and without expense, and the Bureau agrees that the City
shall have the right, through its duly authorized agents or representatives, to examine all
pertinent records at any and all reasonable times, for the purpose of determining the
accuracy thereof and the propriety of the Bureau’s activities.
4
(B) All Bureau expenses shall be supported by properly executed payrolls, time
records, invoices, contracts, vouchers or other documentation evidencing in proper detail
the nature and basis for the expenses charged. All such documents shall be clearly
identified and readily available to the Bureau and to the City.
9. City Representative. The City will designate, prior to commencement of
the work, its representative who shall make, within the scope of his or her authority, all
necessary and proper decisions with reference to the services provided under this
agreement. All requests concerning this agreement shall be directed to the City
Representative.
10. Leasing of Real Estate by Bureau. The Bureau is hereby authorized to
lease real estate as may be necessary in the performance of its obligations under this
Agreement. The funds expended for any such lease shall be subject to the approval of
the City Representative. If the Bureau ceases to exist as an organization, the Bureau
shall reimburse the City for any payments under this Agreement used in the leasing of
buildings or real estate, to the extent the Bureau is entitled to or receives reimbursement
from the lessor. The Bureau shall not lease any real estate without the approval of the
City Representative.
11. Compliance With Laws. The Bureau shall comply with all applicable laws,
ordinances, codes and regulations in carrying out its obligations hereunder.
12. Independent Service Provider. The services to be performed by Bureau
are those of an independent Service Provider and not of an employee of the City of Fort
Collins. In the performance of its obligations under this Agreement, it is understood and
agreed that the Bureau is at all times acting and performing as an independent
contractor, and the City shall neither have, nor exercise, any control or direction over the
manner or means by which the Bureau performs its obligations under this Agreement.
The City shall not be responsible for withholding any portion of the Bureau's
5
compensation hereunder for the payment of FICA, Workmen's Compensation or other
taxes or benefits or for any other purpose.
13. Excuse From Performance. If either party is prevented in whole or in part
from performing its obligations by unforeseeable causes beyond its reasonable control
and without its fault or negligence, then the party so prevented shall be excused from
whatever performance is prevented by such cause. To the extent that the performance
is actually prevented, the Bureau must provide written notice to the City of such
condition within fifteen (15) days from the onset of such condition.
14. Early Termination by City/Notice. Notwithstanding the time periods
contained herein, the City may terminate this Agreement at any time without cause by
providing written notice of termination to the Bureau. Such notice shall be delivered at
least thirty (30) days prior to the termination date contained in said notice unless
otherwise agreed in writing by the parties. All notices provided under this Agreement
shall be effective when mailed, postage prepaid and sent to the following addresses:
City: Bureau:
City Manager
City of Fort Collins
300 LaPorte Avenue
P.O. Box 580
Fort Collins, CO 80522-0580
In the event of early termination by the City, the Bureau shall be paid for services
rendered and expenses incurred to the date of termination, subject only to the
satisfactory performance of the Bureau's obligations under this Agreement. Such
payment shall be the Bureau's sole right and remedy for such termination.
15. Personal Services. It is understood that the City enters into the
Agreement based on the special abilities of the Bureau and that this Agreement shall be
considered as an agreement for personal services. Accordingly, the Bureau shall
neither assign any responsibilities nor delegate any duties arising under the Agreement
without the prior written consent of the City.
6
16. Acceptance Not Waiver. The City's approval or acceptance of, or
payment for any of the services shall not be construed to operate as a waiver of any
rights or benefits provided to the City under this Agreement or cause of action arising out
of performance of this Agreement.
17. Default. Each and every term and condition hereof shall be deemed to be
a material element of this Agreement. In the event either party should fail or refuse to
perform according to the terms of this agreement, such party may be declared in default
thereof.
18. Remedies. In the event a party has been declared in default, such
defaulting party shall be allowed a period of ten (10) days within which to cure said
default. In the event the default remains uncorrected, the party declaring default may
elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as
continuing and require specific performance; or (c) avail himself of any other remedy at
law or equity. If the non-defaulting party commences legal or equitable actions against
the defaulting party, the defaulting party shall be liable to the non-defaulting party for the
non-defaulting party's reasonable attorney fees and costs incurred because of the
default.
19. Binding Effect. This writing, together with the exhibits hereto, constitutes
the entire agreement between the parties and shall be binding upon said parties, their
officers, employees, agents and assigns and shall inure to the benefit of the respective
survivors, heirs, personal representatives, successors and assigns of said parties.
20. Indemnity/Insurance.
a. The Bureau agrees to indemnify and save harmless the City, its officers,
agents and employees against and from any and all actions, suits, claims, demands or
liability of any character whatsoever for injuries to or death of any person or persons, or
damages to property arising out of, or resulting from the actions or omissions of the
Bureau, or its agents or employees.
7
b. The Bureau shall take all necessary precautions in performing the work
hereunder to prevent injury to persons and property.
c. Without limiting any of the Bureau's obligations hereunder, the Bureau
shall provide and maintain insurance coverage naming the City as an additional insured
under this Agreement of the type and with the limits specified within Exhibit “D”,
consisting of one (1) page, attached hereto and incorporated herein by this reference.
The Bureau before commencing services hereunder, shall deliver to the City's Director of
Purchasing and Risk Management, 215 N. Mason Avenue, Fort Collins, Colorado 80521
one copy of a certificate evidencing the insurance coverage required from an insurance
company acceptable to the City.
21. Entire Agreement. This Agreement, along with all Exhibits and other
documents incorporated herein, shall constitute the entire Agreement of the parties.
Covenants or representations not contained in this Agreement shall not be binding on
the parties.
22. Benefit. This Agreement is made for the sole and exclusive benefit of the
parties and shall inure to the benefit of their respective survivors, heirs, personal
representatives, successors and assigns. It is not made for the benefit of any third party.
23. Law/Severability. The laws of the State of Colorado shall govern the
construction interpretation, execution and enforcement of this Agreement. In the event
any provision of this Agreement shall be held invalid or unenforceable by any court of
competent jurisdiction, such holding shall not invalidate or render unenforceable any
other provision of this Agreement.
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IN WITNESS WHEREOF, this Services Agreement has been executed the day and year
first above written.
CITY OF FORT COLLINS, COLORADO
a municipal corporation
By:_______________________________
Darin Atteberry, City Manager
By:_______________________________
James B. O'Neill II, CPPO
Director of Purchasing and Risk Management
Date:_____________________________
ATTEST:
_________________________________
City Clerk
APPROVED AS TO FORM:
________________________________
Assistant City Attorney
By:_______________________________
CORPORATE PRESIDENT
Date:_____________________________
ATTEST:
_____________________________
CORPORATE SECRETARY
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EXHIBIT “A”
Tourism in the Fort Collins Economy
Harvey Cutler
Department of Economics
Colorado State University
Fort Collins, Colorado 80523
(970) 491-5704 (voice)
(970) 491-2925 (fax)
email: Harvey.cutler@colostate.edu
Perry Burnett
Colorado State University
Ray Thresher
Colorado State University
Center for Research on the Colorado Economy
October 20, 2005
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Executive Summary
The purpose of this document is to provide an analysis of the tourism industry in the City
of Fort Collins. Tourism can be divided into conventions, business travelers, leisure
travelers and households that reside outside of Fort Collins but shop within the city. This
study presents two perspectives on this industry that highlights the role of tourism in the
local economy. The first is the current level of tourism emanating from the above
sources in terms of contributing to economic activity and tax revenue for our city. The
second perspective emphasizes the role of the Fort Collins Convention and Visitors
Bureau (FCCVB) in terms of attracting new conventions and other events to the city.
Total tourism is responsible for 2.2% of economic activity in Fort Collins and 16.6% of
tax revenue collected by the city. Tourism expenditures are made in lodging, restaurants
and retail, which all charge a sales tax and thus contribute significantly to city tax
revenue.
The FCCVB is responsible for attracting religious conventions, agricultural events, youth
sport events and association meetings. The table below presents the economic impact for
each of the four events in terms of the tax revenue earned and also the increase in
household income for local residents. The last row sums the two values and represents a
measure of the economic gain. As an example, a single youth sport event contributes
$0.309 million in tax revenue and $1.78 million in household income for Fort Collins
residents. The youth sports event has the largest economic impact of $2.1 million while
the association convention has the smallest total impact of $96,000. These
conventions/events also contribute to increases in tax revenue at a faster rate than the
growth in the number of new households migrating into the city. This results in the city
having the opportunity to increase the quality of city service such as police and fire.
There are a multiple number of these conventions and sporting events each year in Fort
Collins and the total economic impact for all events is $17.5 million. Our analysis
reveals that the FCCVB generates significant tax revenue for the city as well as
contributing to income for all levels of households.
An important outcome of expanding tourism in Fort Collins is housing becomes more
affordable for lower income earning groups and reduces income inequality in the city.
Religion
Convention
Agricultural
Convention
Youth
Sports
Association
Convention
Tax Revenue
(mil of $) 0.284 0.076 0.309 0.015
Household
Income
(mil of $)
1.71
0.45
1.78
0.081
Total Economic
Gain
(mil of $)
1.99
0.526
2..1
0.096
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I. Introduction
The purpose of this document is to provide an analysis of the tourism industry in the City
of Fort Collins. Tourism can be divided into several different categories. The city hosts
a variety of conventions that brings in people from all over the country and the associated
expenditures helps stimulate the economy. A second component is business travelers that
visit our city in order to conduct business with local commercial entities. The third
component is the leisure traveler that visits our city for recreational interests. A fourth
factor is households that live outside of Fort Collins but do some shopping in our city.
This study presents two perspectives on this industry that highlight the role of tourism in
the local economy. The first is the current level of tourism emanating from the above
sources in terms of contributing to economic activity and tax revenue for our city. The
second perspective emphasizes the role of the Fort Collins Convention and Visitors
Bureau (FCCVB) in terms of attracting new conventions and other events to the city.
The FCCVB plays an important role in helping maintain economic growth for the city as
well as contributing substantially to growth in city tax revenue.
The method we use to address these issues is a computable general equilibrium (CGE)
model for the City of Fort Collins. A description of the model is in appendix A. This
model has been used by the city to evaluate use tax rebates, the impact of sales tax rate
increases, past tourism issues and the choice of whether to zone undeveloped land for
retail or manufacturing uses. In addition, this model has been used to produce four Ph.D.
graduates at Colorado State University, eight current students in process of completing
their dissertations and six peer reviewed journal articles.
The remainder of the report is divided into several sections. Section II presents the
impact of the current level of tourism on economic activity and tax revenue in the Fort
Collins economy. Section III examines the four primary types of tourism that can be
attracted by the FCCVB and the associated economic impacts. Section IV is the
conclusion.
II. The Economic Impact of Tourism
It is important to define the sectors that make up the tourism sector in the Fort Collins
economy. It is assumed that all economic activity and tax revenue generated by the
lodging sector is a direct result of tourism. This includes the full service hotels, the
limited service hotels and the motels in the city. The other two primary sectors that also
reflect the level of tourism is the retail and restaurant sectors. Most studies on tourism
conclude that expenditures are made on lodging, retail and restaurants. Our analysis
follows this logic.
12
Tourism is an interesting sector in Fort Collins given that it is small in terms of
employment and output but it contributes a significant component to total tax revenue for
the city. The number of workers in the lodging sector combined with approximately 35%
of employment in retail and restaurant accounts for 4,538 workers of the 64,284 total
workers in the economy.1 The tourism sector employs 7% of the workforce in our
economy and accounts for 2.2% of total production in the economy.
An important characteristic of the tourism sector is that it is tax intensive since lodging,
retail and restaurants all charge a sales tax. Our estimates indicate that the tourism
sectors accounts for 16.6% of total tax revenue for the City of Fort Collins.
III. Direct Contributions of the Fort Collins Convention and Visitors Bureau
The FCCVB expends resources to attract a variety of different events that draws
individuals, families, conventioneers and athletes to Fort Collins. There are four
particular events that Fort Collins specializes in. They are religious conventions,
specialty agricultural and animal events, youth sports and association functions.2 Data
was collected by the FCCVB on the expenditure patterns for lodging, retail and
restaurants by all four events. The data was initially collected for expenditures per
participant for each of the four functions.3 The expenditures were scaled by the number
of participants for each function. The expenditure patterns appear in Table 1. The youth
sports events result in the most expenditures and the religion convention is second.
1 It has been estimated that approximately 35 % of the workers in retail and restaurants accommodate the
tourism sector in the Fort Collins economy. This has been determined by some informal surveying by the
Finance Department in 1998.
2 The appendix contains a more complete description of the four events as well as specific expenditure
patterns per participant.
3 The expenditures collected per participant were reasonable given my experience in tourism analysis.
13
Table 1
Initial Expenditures by Each Conference
1. Religion Conventions
Sector Expenditures
(mil of $)
Lodging 1.27
Restaurants 1.17
Retail 0.903
Total 3.34
2. Specialty Agricultural/Animal Events
Sector Expenditures
(mil of $)
Lodging 0.392
Restaurants 0.297
Retail 0.213
Total 0.902
3. Youth Sports
Sector Expenditures
(mil of $)
Lodging 1.04
Restaurants 1.42
Retail 0.996
Total 3.46
4. Association
Sector Expenditures
(mil of $)
Lodging 0.091
Restaurants 0.061
Retail 0.038
Total 0.19
14
IV. Simulation Results
This section presents the economic impact of the expenditure amounts from the four
types of functions that were presented in Table 1. We consider the economic impact
from two perspectives. First, we examine each single event with an emphasis on the
effects on employment, general economic activity, household income and tax revenue.
The next exercise emphasizes that there are multiple events for each category in a given
year, so we also provide the economic impact of all events in the city. As an example,
the city averages 2.7 religious conventions annually, with Jehovah’s Witnesses occurring
annually, and Campus Crusade for Christ occurring every other year. Due to the
extended length of the Campus Crusade event, it is factored as an average of 1.5 events.
In addition, the city averages 3 agricultural events, 2.5 youth events and 3 association
events annually. Convention bookings are based on the last year’s bookings of the
FCCVB.
Table 2 presents the economic impact of the four single events. The youth convention
has the largest impact in terms of employment, general economic activity and tax
revenue. This is due to the large number of participants in this event. Tax revenue per
new household is $8,584. Given that tax revenue per household in the base data is
$2,178, all four cases result in larger tax revenue per household, which could increase the
quality of city services for all residents. The model predicts that 36 new households will
locate in Fort Collins due to the youth convention and given that there are 40,119
households in the city, the addition of the new households is relatively small. The
religion convention has the second largest impact of the four events.
Table 3 presents the results regarding the change in household income for the Fort
Collins residents. Table A1 in the appendix provides a description of the six household
groups. The religion convention causes household income to increase by $1.71 million or
a 0.10% increase. An interesting aspect of all four scenarios is that income increases
by a greater percentage amount for the lower income earning households (HH1-
HH3) since most workers in the tourism industry are low wage earners. The
increased demand for low wage workers as the tourism sector expands drives up
wages for this labor group. As an example, in the religion convention case, real
household income increases by 0.34% for HH1, 0.19% for HH2 and only 0.08% for
HH6. An important outcome of expanding tourism in Fort Collins is housing becomes
more affordable for lower income earning groups and reduces income inequality in the
city.
Table 4 presents summary results for all four cases. This table sums the increase in
household income and total tax revenue, which is the direct gain to the city and its
residents. Consistent with previous arguments, the youth event results in a $2.1 million
increase for the city and its residents, the religion convention results in a $1.99 million
increase, the agricultural event results in a $0.526 million increase and the association
convention causes a $0.096 million increase. The total impact of all four events is $4.72
million.
15
Table 2
The Economic Impact of One Religious, Agricultural, Youth Sports,
and Association Event in the Fort Collins Economy
Religion
Convention
Agricultural
Convention
Youth Sports
Event
Association
Convention
Employment
86
(0.13%)
23
(0.04%)
87
(0.14%)
5
(0.001%)
GCP
(mil of $)
1.48
(0.06%)
0.37
(0.02%)
1.52
(0.07%)
0.08
(0.001%)
Sales Taxes
(mil of $)
0.145
(0.38%)
0.037
(0.10%)
0.156
(0.41%)
0.007
(0.02%)
Use Taxes
(mil of $)
0.016
(0.20%)
0.004
(0.05%)
0.015
(0.20%)
0.001
(0.01%)
Property Taxes
(mil of $)
0.087
(1.1%)
0.026
(0.32%)
0.1
(1.2%)
0.005
16
Table 3 (Continuation of Results)
Impact on Real Household Income
Values are in Mil of $
Religion
Convention
Agricultural
Convention
Youth Convention Association
Convention
Amount Percentage
Change
Amount Percentage
Change
Amount Percentage
Change
Amount Percentage
Change
HH1 0.064 0.34% 0.017 0.09% 0.07 0.36% 0.037 0.20%
HH2 0.196 0.19% 0.052 0.05% 0.21 0.20% 0.004 0.00%
HH3 0.426 0.16% 0.113 0.04% 0.44 0.16% 0.000 0.00%
HH4 0.104 0.08% 0.028 0.02% 0.11 0.09% 0.011 0.01%
HH5 0.330 0.09% 0.087 0.03% 0.34 0.10% 0.024 0.01%
HH6 0.592 0.08% 0.154 0.02% 0.62 0.08% 0.006 0.00%
Total 1.71 0.10% 0.450 0.03% 1.78 0.11% 0.081 0.005%
17
Table 4
Final Results
Religion
Convention
Agricultural
Convention
Youth Sports Association
Convention
Tax Revenue
(mil of $) 0.284 0.076 0.309 0.015
Household
Income
(mil of $)
1.71
0.45
1.78
0.081
Total Economic
Gain
(mil of $)
1.99
0.526
2..1
0.096
Notes:
1. These values are obtained by summing the increase in tax revenue and real household
income.
2. The total economic gain for all four simulations is $4.72 million.
18
As stated above, the City hosts multiple conventions and events in a given year. The
FCCVB has calculated that on average the City hosts 1.5 religious conventions, 3
agricultural events, 2.5 youth events and 3 association events annually. Tables 5, 6 and 7
provide the economic impact of the multiple events in all four categories. When
considering the total impact of all conventions/events per group, the religion conventions
contributes slightly more than the youth sports events in terms of economic growth,
household income and tax revenue. However, the differences in tax revenue per new
household across the four cases have diminished significantly. Tax revenue per new
household for youth sports, religious conventions, agricultural events and association
events are $4,623, $4,362, $4,306 and $4,031. The compression of these results is due to
the nonlinearities of the model. Table 8 indicates that the total economic gain to the city
and residents for all events is $17.5 million.
IV. Conclusion
Our analysis concludes that the tax intensive nature of tourism sector provides an
efficient method for the city to collect tax revenue. Conventioneers and tourists come to
the city and their expenditures on lodging, retail and restaurants results in significant
gains in tax revenue. Tourism also results in larger percentage gains for the lower
income earning households, which reduces income inequality.
In times of increased competition for retail sales tax dollars with respect to the growth in
retail outlets in the I-25 corridor, tourism offers an additional source of tax revenue.
Increasing the number of conventions in the city can provide important tax dollars for the
city.
19
Table 5
Simulation Results
Religion
Convention
Agricultural
Convention
Youth
Convention
Association
Convention
Employment
% Change
357
(0.56%)
99
(0.15%)
324
(0.50%)
21
(0.03%)
GCP(mil of $)
% Change
6.67
(0.29%)
1.73
(0.08%)
6.05
(0.27%)
0.36
(0.02%)
Sales Taxes(mil of $)
% Change
0.44
(0.76%)
0.123
(0.21%)
0.44
(0.76%)
0.02
(0.04%)
Use Taxes(mil of $)
% Change
0.067
(0.71%)
0.015
(0.20%)
0.06
(0.72%)
0.003
(0.03%)
Property Taxes
(mil of $)
% Change
0.024
(0.19%)
0.007
(0.09%)
0.025
(0.22%)
20
Table 6 (Continuation of Results)
Impact on Real Household Income
Values are in Mil of $
Religion
Convention
Agricultural
Convention
Youth Convention Association
Convention
Amount Percentage
Change
Amount Percentage
Change
Amount Percentage
Change
Amount Percentage
Change
HH1 0.25 1.34% 0.07 0.36% 0.23 1.23% 0.01 0.08%
HH2 0.73 0.70% 0.20 0.19% 0.69 0.66% 0.04 0.04%
HH3 1.74 0.65% 0.48 0.18% 1.60 0.60% 0.10 0.04%
HH4 0.43 0.34% 0.12 0.09% 0.40 0.31% 0.03 0.02%
HH5 1.37 0.39% 0.38 0.11% 1.26 0.36% 0.08 0.02%
HH6 2.52 0.32% 0.69 0.09% 2.34 0.30% 0.15 0.02%
Total 7.04 0.43% 1.94 0.12% 6.52 0.40% 0.41 0.02%
Table 7
Final Results
Religion
Convention
Agricultural
Convention
Youth
Convention
Association
Convention
Tax Revenue
(mil of $)
0.69
0.19
0.655
0.04
Household
Income
(mil of $)
7.04
1.94
6.52
0.41
Total Economic
Gain
(mil of $)
7.7
2.1
7.2
0.45
Notes:
1. These values are obtained by summing the increase in tax revenue and real household
income.
2. The total economic gain for all four simulations is $17.5 million.
VII. Appendix A
Table 1 presents a brief description of the model. The model has 17 sectors such as
manufacturing, retail, several service categories, lodging and restaurants. The tourism sector
can be examined by looking at the lodging, retail and restaurant sectors. All 17 sectors hire
labor, which are divided into three groups, workers that make less than $20,000 a year (L1),
workers that earn between $20,000 and $50,000 annually (L2) and workers that earn over
$50,000 a year (L1). There are six household groups distinguished by different levels of annual
income. The City of Fort Collins collects sales, property, use and other taxes.4
4 If any reader is interested in a more complete description of the model, we will provide further documentation.
Table A1
Structure of the System
Profit Maximizing
1) Agriculture services 10) Transportation and utilities
2) Agricultural production 11) Lodging
3) Agricultural processing 12) Wholesale
4) Low services – hair, cleaners, etc. 13) Retail
5) High services – legal, medical 14) Finance, insurance and real estate (FIRE)
6) Construction 15) Restaurants
7) Manufacturing 16) Universities and JCs
8) Mining 17) School District
9) Computer Manufacturing
a) Housing Market Local Government
HS1 < $120,000 1) Services: Police, Fire, Transportation,
$120,000 < HS2 < $200,000 Library, Parks and Recreation, and
$200,000 < HS3 Administration
HS4- multiple units 2) Taxes: Sales, Use, Property and Other
Household Groups:
HH1 # $10,000
$10,001 # HH2 # $20,000
$20,000 < HH3 # $40,000
$40,000 < HH4 # $50,000
$50,000 < HH5 # $70,000
$70,000 < HH6
Factors of Production:
Labor Groups Capital Stock Land
$20,000 $ L1 K – buildings and factories Land – land used by the
$20,000 < L2 # $50,000 used by the productive, productive, residential,
$50,000 < L3 residential and public use and public use (acres)
Appendix B
Description of the four conventions
1. Religious Convention
Groups are also known as assembly religious groups. Spending estimates were based on
2005 Christian Church of Jehovah’s Witnesses convention, utilizing local hotel rates.
Spending for retail and restaurants was reduced from the 2005 ExPact Study based on
interviews with local hotels and restaurants.
Expenditures per participant per day are:
Sector Expenditures per person
($)
Lodging 88
Restaurants 81
Retail 63
Total 232
2. Specialty Agricultural/Animal Events
The anticipated 2007 German Shepherd Dog Club of America event in Fort
Collins was used as the model of this type of function. Hotel expenditures were based on
room rates quoted for the 2007 event. Other expenditures were based on the 2005 ExPact
Study conducted by the International Association of Convention and Visitor Bureaus. The
groups either utilize CSU facilities or The Ranch. Expenditures per participant per day are:
Sector Expenditures per person
($)
Lodging 101
Restaurants 76
Retail 55
Total 231
3. Youth Sports
Youth sports include events such as large soccer tournaments, softball, basketball or other
youth or amateur sporting events. Expenditures based on 2005 USSSA (United States
Specialty Sports Association) 14 and under Girls Softball, held in Fort Collins and Loveland
this year. Expenditure patterns were based on 2003 Colorado Tourism Office Economic
Impact of Tourism report for Larimer County, CO, prepared by Dean Runyon and
Associates. Expenditures per participant per day are:
Sector Expenditures per person
($)
Lodging 65
Restaurants 89
Retail 62.
Total 216
4. Association convention
The participants of association conventions are smaller in number and therefore lodging and
the meetings occur at a single hotel in Fort Collins. It is common that these functions
consist of either state or national groups. Expenditures were derived from the 2005 ExPact
Study conducted by the International Association of Convention and Visitor Bureaus.
Expenditures per participant per day are:
Sector Expenditures per person
($)
Lodging 126
Restaurants 76
Retail 63
Total 265
EXHIBIT “B”
SUBLEASE AGREEMENT
EXHIBIT “C”
Intergovernmental Agreement
Environmental Learning Center/Visitor’s Center/Welcome Center
Intergovernmental Agreement
Exhibit “A”
“City Lease Space”
Available for viewing in the purchasing office
EXHIBIT “D”
State Welcome Center Contract
0.001
(0.01%)
Total Taxes(mil of $)
% Change
0.69
(0.54%)
0.185
(0.21%)
0.655
(0.52%)
0.04
(0.03%)
New
Households
157
43
142
95
Tax Revenue
Per New
Household
$4,362
$4,306
$4,623
$4,031
(0.03%)
Total Taxes
(mil of $)
0.284
(0.33%)
0.076
(0.09%)
0.309
(0.35%)
0.015
(0.02%)
New
Households
36
10
36
5
Tax Revenue
Per New
Household
$7,979
$7,940
$8,584
$7,638