R2006-034 02-27-06
RESOLUTION NO. R2006-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO A FUNDING AGREEMENT WITH THE PEARLAND AREA
CHAMBER OF COMMERCE (MARKETING AND TOURISM
MANAGEMENT).
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain agreement by and between the City of Pearland and the
Pearland Area Chamber of Commerce, a copy of which is attached hereto as Exhibit "A"
and made a part hereof for all purposes, is hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest an agreement with the Pearland Area Chamber of
Commerce
PASSED, APPROVED and ADOPTED this the 27th day of February
A.D., 2006.
c- }6>W ~
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
(Ja--:. It ~
DARRIN M. COKER
CITY ATTORNEY
Resolution 2006-34
MARKETING AND TOURISM MANAGEMENT AGREEMENT
This agreement is made by and between the City of Pearland, Texas, a municipal
corporation of Brazoria County, Texas (hereinafter "City") and the Pearland Area Chamber of
Commerce, (hereinafter "Chamber").
1.
The City by authority of powers granted to it under state statutes and its home-rule
charter, has heretofore enacted a hotel occupancy tax on occupants of hotels within the City of
Pearland, Texas.
II.
As part of its obligation and discretionary powers under state statutes (primarily V.A.T.S.
T ax Code, Section 351.101) to use hotel occupancy tax funds for attracting and promoting
tourism and the convention and hotel industry, the city hereby agrees to employ the Chamber to
advertise and promote tourism, and the convention and hotel industry of the City under the terms
and conditions set forth, herein.
The Chamber agrees that any occupancy tax funds paid to it by the City shall be used
only in the following specific areas:
(1) The furnishing of facilities, personnel, exhibits and materials for the purpose
of attracting visitors, meetings, groups and other events;
(2) Development of marketing, advertising, solicitation and promotional programs
to attract meetings, groups, conventions and visitors to the municipality of its
vicinity;
(3) Coordination of marketing, advertising, solicitation and promotional programs
with appropriate City departments, hotels/motels, restaurants, entertainment
facilities and other businesses to ensure a productive and pleasant experience
for visitors to the City; and
III.
The Chamber agrees to conduct a continuing program of advertising and promotion for
the purpose of attracting visitors, tourists, and conventions to the city by publishing and
distributing brochures and community information packets, by advertising in various tourist
publications and general media publications which are appropriate, by participating with state
and regional agencies in tourist development programs of benefit to the City, and by using all
appropriate means to increase the traveling public's awareness of the of the resort and
recreational advantages of the City.
The Chamber further agrees that it will seek to achieve the purposes of the statute for the
City through all of the above activities, that it will distribute visitor literature to Texas Travel
Information Centers, Intercontinental and Hobby Airports and other locations. The Chamber
shall advertise the City in various tourist publications and other general publication, and
participate with state and regional agencies such as the Texas Department of Commerce, Texas
Association of Convention and Visitor's Bureaus, Texas Travel Industry Association, Greater
Houston Partnership, The Economic Development Alliance of Brazoria County, The Alliance
Port Houston Region, Brazoria County Council of Chambers to ensure continued and expanded
favorable publicity about the City.
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IV.
It is expressly understood and agreed by and between the parties that the Chamber is
hired and engaged as an independent contractor and is not an officer, agent, or employee of the
City. The Chamber shall have exclusive control of its operations hereunder, and the persons
performing same, and shall be solely responsible for the acts and omissions of its officers,
agents, employees, contractors and subcontractors, the doctrine of respondent superior shall not
apply as between City and Chamber, its officers, agents, employees, contractors and
subcontractors and nothing herein shall be constructed as creating a joint enterprise between City
and Chamber.
V.
The Chamber shall secure sufficient numbers of employees to accomplish this
Agreement. The Chamber shall further provide such office space, equipment, supplies and other
materials necessary to accomplish the purposes of this Agreement.
VI.
The Chamber shall carry out the responsibilities required by this agreement in accordance
with the budget attached to this agreement as Exhibit "A". It is understood and agreed by and
between the parties that, upon budget approval by the City, a fiduciary duty is created in the
Chamber with respect to the expenditure of revenue provided.
Thereafter, the Chamber shall provide to the City Council periodic reports on a quarterly
basis, on the activities that are conducted to benefit the City as well as an annual financial
statement listing the expenditures made from revenue from the occupancy tax. It is further
agreed by the Chamber that it shall maintain said revenue in a separate account established for
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that purpose, and that it shall not commingle that revenue with any other money or maintain it in
any other account.
The Chamber shall maintain complete and accurate financial records of each expenditure
of occupancy tax revenue and, upon request of the City Council, City Manager or his authorized
representative, shall make the records available for inspection and review.
VII.
This agreement shall be effective the 15th day of February, 2006, and shall continue in
force for a period of one year or until either the City or the Chamber shall, upon affording two
month prior written notice in the manner herein below provided, have the option to terminate this
Agreement at any time. Upon termination of this contract for any reason, the Chamber shall
deliver to the City all funds remaining on hand, if any, after payment of all obligations incurred
prior to notice of termination of this Agreement.
VIII.
Any notice necessary or appropriate relative to this Agreement shall be effective when
deposited in the United States mails, certified mail, postage prepaid and addressed to the City
Manager, City of Pearland, City Hall, 3519 Liberty Dr., Pearland, Texas, 77581, or to the
Pearland Area Chamber of Commerce, 3501 Liberty Dr., Pearland, Texas, 77581, or such other
address as either party may designate in writing to the other party.
IX.
No part of this Agreement may be assigned or delegated with the prior written consent of
the other party, and any attempted assignment of benefits or rights or delegation of duties or
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obligation shall be a breach of this Agreement. However, nothing in this Agreement shall
prohibit the Chamber from participating with local, regional, or state tourism or to contract for
joint promotion with other agencies.
X.
The Chamber agrees to indemnify, save harmless and defend the City from any and all
claims, causes of action and damages of every kind arising from the operations of the Pearland
Area Chamber of Commerce, its officers, agents and employees carried out in furtherance of this
agreement. The Chamber owns no automobiles, and any use of an automobile in the operations
embraced by this Agreement shall be by the Chamber as an independent contractor, and not as an
agent or employee of the City.
XI.
This agreement shall be subject to the laws of the State of Texas.
IN WITNESS WHEREOF, the parties have executed this agreement by their duly
authorized officers on this 15th day of February 2006.
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Bil Isen, City Manager
P~~~R OF COMMERCE Lho\ (2 GtA '~
~ree?e'aux,Chainnan of the Board Carol R. Artz, President "-.
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PROJECTED BUDGET FOR PEARLAND MARKETING PLAN
2005 2006
rill'\ Budget Proposed
Administration
Salaries:
Coordinator Salary $ 50,000 $ 38,000
Office Assistant $ - $ 17,000
Insurance-Health $ - $ 5,300
Payroll Taxes $ - $ 5,500
Retirement Plan $ - $ 1,200
• Workers Comp $ 250 $ -416
Total Administration $ 50,000 $ 67,416
Operations
Computer Expense $ - $ 2,000
Office Supplies $ 3,000 $ 2,670
Insurance-Building $ - $ 670
Property Taxes $ - $ -
•
Telephone $ 1,000 $ 1,500
Postage $ - $ 1,670
Auto Expenses $ - $ 670
Cell $ 1,000 $ -
Legal/Accounting $ 2,000 $ 3,333
Utilities $ - $ 1,900
Janitorial/Lawncare $ - $ 670
Sales Tax on Taxable Sales * $ -
Repairs/Maintenance $ - $ 1,600
Equipment/Maintenance $ 2,000 $ 1,671
Total Operations $ 9,000 $ 18,354
Dues,Fees Subscriptions
Tx Hotel&Motel Assn $ 280 $ 280
Tx.Assoc C V B $ 300 $ 300
Tx Trave Industry Assn $ 250 $ 250
Pearland Rotary Club $ - $ 250
Total Dues,Fees Subscriptions $ 830 $ 1,080
Professional Development
TACVB Annual Conference $ 1,000 $ 1,500
TACVB Mid-Winter Conference $ 700 $ 700 •
Travel Summit/Texan Rally $ - $ -Texas Tourism/Unity Dinner $ - $ -
Leadership Peadand $ - $ -
Texas Independence Trail Assoc,Wor $ - $ 100
Toastmasters-United Space Alliance $ - $ 100
Total Professional Development $ 1,700 $ 2,400
Convention Sales&Services
Sales Calls/Visits/Bids • $ 800 $ 2,000
Display $ 1,500 $ -
Signs,Banners,Copies $ 500 $ 500
Convention Bags $ 500 $ 1,000
Convention Decorating $ - $ -
Conference Mailings $ 200 $ 250
Total Convention Services $ 3,500 $ 3,750
Sports Marketing
Marketing Video $ -
Advertising/Trade Pub $ -
Total Sports Marketing $ - $ -
PROJECTED BUDGET FOR PEARLAND MARKETING PLAN
Advertising
Brochures Expense $ 10,000 $ 10,000
Specialty Shops $ - $ - 1
Coupons $ - $ -
Total Advertising $ 10,000 $ 10,000
Travel&Trade shows
Harris Co.Precinct Show $ -
AAA Travel&Cruise Show $ -
Houston Travel&Leisure $ -
Co-Op Show-Ft Worth $ -
McAllen Intl.Travel Show $ -
Misc.Trade Shows $ -
Mileage Expenses $ -
Booth Supplies $ -
Identify Travel and Trade Show Market$ 3,000 $ 2,100
Total Travel&Trade Shows $ 3,000 $ 2,100
Promotional Supplies
Golf Tees,Ink Pens,etc. $ 3,000 $ 2,000
Lapel Pens $ 2,000 $ 1,500
Total Promotional Supplies $ 5,000 $ 3,500
Ad Placement&Development
Photo Development/Video $ - $ -
Misc.Newsp,Mag,Cabl $ - $ -
Tx Accomm Guide(1x) $ - $ 3,500
Guide to Brazoria County(1x) $ - $ 750
East Texas Vacation Guide(1x) $ - $ 2,300
Convention South(1x) $ - $ 2,300
Texs Highways(1x-Co-op) $ - $ 750
Web Advertising $ - $ -
Winter Texas Magazine $ - $ -
Special Event Ads $ $ -
Community Festival $ - $ 2,000
Outdoor Billboards $ - $ -
Stationery $ - $ -
Direct Mail Postage $ - $ -
Identify Ad Placement&Development $ 5,000 $ 3,000
Total Ad Placemnet&Development $ 5,000 $ 14,600
Visitor Services
Brochure Rack Maintenance $ - $ 500
Tourism Week $ - $ 300
Volunteer Appreciation $ - $ 500
Hospitality Training Program $ -
Web Development $ - $ 500
Total Visitor Services $ - $ 1,800
Total Expenses $ 88,280 $ 88,030 $ 125,000 $ 125,000
•Bryan Roller started as CVB Coordinator on June 20,2005
"To be determined in 2005
PEARLAND CONVENTION AND VISITORS BUREAU
MARKETING AND TOURISM MANAGEMENT AGREEMENT
2006 BUDGET INCREASES
ADMINISTRATIVE SALARIES
We are requesting an increase in administrative salaries and benefits for the 2006
Convention and Visitors Bureau budget to facilitate the hiring of a part-time office
assistant to assist the CVB Coordinator in covering the increased volume of calls that is
currently being handled by an administrative assistant in the Chamber of Commerce
office.
This volume of calls will increase as the CVB continues to expand its marketing
reach and implements a toll-free number(such as 1-87PEARLAND)to handle both
tourism and convention sales calls.
OPERATIONS
As the CVB continues to grow operational expenses such as computer, office
supply, and postage expenses will grow. At this time the Pearland Chamber of Commerce
and the Convention and Visitors Bureau lease laptops through Dell, rather than an
outright purchase. These expenses plus annual fees for antivirus and firewall protection
safeguard data and sensitive materials as the computer is used on wireless systems on
business and educational trips. This also includes yearly fees for the TXMET meetings
database from the Texas Association of Convention and Visitor Bureau.
Other operational expenses incurred by the CVB include one-third of the facilities
telephone,utilities, lawncare and maintenance fees.
The Pearland Chamber of Commerce is actively pursuing a new facility to house
the expanded staff and services that are being offered through Chamber of Commerce
and the Convention and Visitors Bureau. We request the option of reappearing before the
Pearland City Council to request additional funding to house the CVB when this occurs.
Tentative plans call for a 1,250 to 1,500 square foot combined visitors center and office
space at approximately$22,500 to $27,000 per year.
PROFESSIONAL DEVELOPMENT
As we grow and expand there are opportunities for promoting our community that
require round-trip air travel, as well as professional development.
AD DEVELOPMENT & PLACEMENT
The Ad development&placement budget includes layout and design for ads to be
placed in Texas Accommodations Guide, Guide to Brazoria County, East Texas Vacation
Guide, and a Co-op opportunity in Texas Highways magazine and additional media as it
is identified. This also includes dedicated advertising funds for the 2006 Kickoff of the
Pearland Music &Food Festival scheduled for the second weekend of May in 2007.
VISITOR SERVICES
Pearland will continue to grow and draw more visitors. The challenge will be, as
we obtain new properties to promote, to maintain brochures throughout State, Regional
and local visitors centers throughout Texas and surrounding states. There will also be an
increased new to extend appreciation to the volunteers who welcome and provide
assistance to the guests and groups that choose Pearland as their convention or vacation
destination. This also includes funding for annual maintenance of the "Visit Pearland"
visitor information website.