HomeMy WebLinkAboutResolution - 2640 - Demonstration Grant - COC - 3 Year Pilot Expanded Tourism Program - 09/10/1987JCR:da
RESOLUTION
Resolution #2640
September 10, 1987 j
Agenda Item #31
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Expanded
Tourism Service Grant by and between the City of Lubbock and the Lubbock
Chamber of Commerce concerning convention and tourism services, attached
herewith, which shall be spread upon the minutes of the Council and as
spread upon the minutes of this Council shall constitute and be a part of
this Resolution as if fully copied herein in detail.
Passed by the City Council this Loth day of septpmhp r , 1987.
'f . e e
B.C. McMINN, MAYOR
ATTEST:
, City Secretary
APPROVED AS TO CONTENT:
Rita Harmon, Assistant City Manager
for Public Safety and Services
APPROVED AS TO FORM:
I 99Z G 7,--� t'74 ' —
17 C. Ross, Jr., City Tttorney
STATE OF TEXAS
COUNTY OF LUBBOCK
S
N
EXPANDED TOURISM SERVICE GRANT
Resolution #2640
This Agreement entered into by and between the City of
Lubbock, hereinafter called "City", and the Lubbock Chamber of
Commerce, a corporation, hereinafter called "Chamber".
WITNESSETH:
WHEREAS, the City and Chamber have heretofore entered into
basic agreements concerning convention and tourism services to be
provided by Chamber on behalf of City; and
WHEREAS, said basic convention and tourism services are
agreed to by contract between the parties dated October 4, 1979
as amended by addendums 1, 2 and 3 all on file in the office of
the City Secretary of the City of Lubbock; and
WHEREAS, the Chamber of Commerce did appear before the City
Council at its regular meeting held on August 27, 1987 and
proposed an expanded level demonstration program for tourist
sales and promotion; and
WHEREAS, the expanded level demonstration grant would
provide services over and above those basic services heretofore
agreed to between the parties; and
WHEREAS, the parties hereto understand that this demonstra-
tion grant shall be used as initial funding and that at the end
of the grant period as herein set forth, it is anticipated that
the expanded tourism services herein agreed to be provided will
generate sufficient additional hotel/motel occupancy revenues so
that the expanded program herein requested by Chamber will be
assimilated into the basic services provided by Chamber funded by
a 2 3/4 cent allocation of the hotel/motel occupancy tax.
WHEREAS, the City Council after review and determination of
the proposal by Chamber did agree that a demonstration program
for a period not to exceed three years would be in the best
interest of the City and Chamber;
NOW THEREFORE, THE PARTIES HERETO DO AGREE AS FOLLOWS:
1. That this agreement is a separate agreement, separate
and apart from all prior agreements between the parties hereto-
r
fore existing concerning convention and tourism services and the
relationship of the parties hereto shall be governed by the terms
and conditions of this special expanded tourism agreement.
2. That the term of this agreement shall be for three
years commencing on October 1, 1987 and terminating on September
30, 1990, unless otherwise terminated as hereinafter set forth.
3. City does hereby agree to fund the special expanded
tourism proposal submitted by Chamber in the amount not to exceed
$117,012.00 per year for each of the three years that this agree-
ment is in force and effect subject to the Chamber complying with
the terms and provisions of this agreement. These funds shall be
payable quarterly beginning October 1, 1987. The funding for the
above money shall come from accumulated fund balance of the re-
serve for convention and tourism capital projects account and
shall not affect the allocation distribution of the hotel/motel
occupancy tax. However, it is understood between the parties
hereto that if the allocation of 2 3/4 cents paid to Chamber for
basic tourism and convention services exceeds the total sum of
$453,750.00 for any of the fiscal years during this agreement,
then in such event the amount that exceeds the foregoing
$453,750.00 shall be credited against the $117,012.00 due under
this agreement for each of the three fiscal years herein covered.
4. Chamber agrees that the funds paid to it under this
agreement shall be used solely for the expanded level tourism
sales and promotion as set forth in its proposed,budget attached
hereto as Exhibit A and no change shall be made from any of the
expenditures as contained in said Exhibit A without the specific
prior approval of the City Council of the City of Lubbock.
5. Chamber agrees that during the existence of this grant
agreement that it shall follow the City budgeting procedures and
submit a budget request for the second and third years of this
demonstration grant agreement in accordance with the City of
Lubbock budget calendar and to this extent shall keep the City
Manager of the City of Lubbock informed of its budget activities.
Such budget request shall be submitted to the City Manager no
later than the 1st day of June during each fiscal year that this
agreement is in existence.
6. Chamber agrees that all funds it receives under this
grant agreement shall be kept in a separate account from any
other funds that Chamber receives for tourism and convention
activities under existing agreements between the City and Chamber
and that the funds under this contract will not in any way be
comingled with those funds the Chamber receives for basic tourism
and convention services.
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7. A financial and performance audit will be required of
Chamber within ninety days following the end of each fiscal year
that this contract is in force and effect, in other words, ninety
days from September 30, 1988, 1989 and 1990. The performance
audit shall be performed by the auditors then acting in the
capacity of independent auditors for the City of Lubbock and the
expense of said audit shall be borne by Chamber. The original of
said audit shall be delivered to the City of Lubbock and a copy
thereof shall be presented to Chamber.
8. That the Chamber shall be required to submit to the
City quarterly line item expenditure reports showing expenditures
of the funds herein granted to Chamber for this expanded tourism
grant and in addition Chamber shall furnish to the City detailed
quarterly activity and performance reports showing the
performance of Chamber under this agreement which quarterly
activity and performance reports shall contain at a minimum the
following:
(a) The number of tours booked for each of the fiscal years
during which this contract is in effect.
(b) The number of visitors coming to the City of Lubbock in
response to bookings that are aforementioned in (a) for
each of the fiscal years during which this contract is
in effect.
(c) For each of the fiscal years which_this:contract is in
effect a breakdown on the number of reservations per
fiscal year made by the Chamber under this agreement to
include specifically reservations for hotel rooms,
special events, reservations for dinner parties and
special meetings.
(d) Chamber shall further provide the number of events
scheduled and held set forth by event and attendance.
(e) Chamber shall further set forth a number of trade shows
attended and all direct sales trips undertaken by
Chamber pursuant to this special grant agreement.
The quarterly expenditure and performance reports herein required
shall be delivered to the City Manager no later than the
fifteenth (15th) day following the termination of each quarter.
9. Chamber agrees and understands that the City Manager or
his designated representative shall be the responsible individual
for the City of Lubbock and shall see that the budgets, audits,
quarterly activity and performance reports as herein required are
prepared and submitted on a timely basis by Chamber. In the
event that Chamber fails to comply with any of the requirements
-3-
concerning budgeting, audits, or quarterly activity and
performance reports the City Manager is hereby authorized to
point out such deficiency to the Chamber in writing giving the
Chamber a period of ten days in which to comply and in the event
that the Chamber fails to comply and bring itself into
conformance with the terms and conditions of this agreement, then
this agreement shall automatically terminate and be of no further
force and effect. In the event that this agreement is terminated
as aforesaid, then all of the moneys currently in the possession
of the Chamber pursuant to this agreement shall be accounted for
by Chamber and the balance of those funds shall immediately be
returned to the City.
EXECUTED this the 10th day of September , 1987.
CITY OF LUBBOCK
-B. C. MCMINN, MAYOR
ATTEST:
Ranet a Boyd, City Secretary
APPROVED AS TO CONTENT:
Rita Harmon, Assistant City
Manager
APPROVED AS TO FORM: LUBBOCK CHAMBER OF COMMERCE
t1n C. Ross, Jr., City Attorney ESIDENT
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r
Prepared by City of Lubbock Civic Center Board
The Lubbock Visitors and Convention Bureau
Proposal for the Creation of
Incentive Account for Conventions and Group
August 20, 1987
The convention business has become recognized as a vital element
of our local industry. A single convention with 1,000 delegates
for two days brings in an estimated $140,000 to the local hotels,
restaurants, entertainments and retail operators in Lubbock. Over
the past few years, we've seen a gradual increase in the number of
conventions booked in Lubbock; however, beginning with the 1987-88
fiscal year, there is a significant increase in the number of
conventions and delegates booked in the City of Lubbock.
Depending upon the size of the convention, it is typically held in
either one of the local conference hotels or the Civic Center.
Conventions with less than 400 to 500 delegates are often booked
at one of the local hotels, whereas conventions with greater than
500 delegates are booked at the Civic Center. The larger sized
conventions are particularly attractive because they provide rev-
enues for not only the local hotels but also for the Civic Center.
The Civic Center receives the rental fees as well as a portion of
the catering and concession fees, while the hotels receive revenue
from rooms and food and beverage. Even the smaller non -conference
hotels benefit from large conventions since the smaller hotels re-
ceive the displaced customers from the conference hotels.
To increase the use of the Civic Center and the hotel occupancy,
emphasis has been placed on recruiting larger sized conventions.
As a result, the conventions booked to the Civic Centerhavein-
creased significantly over the last three years.
W
E
#" Conventions at
Civic Center # of Delegates
1985-86 7 10,000
1986-87 6 11,900
1987-88 19 28,950
Impact of Incentives
Securing larger conventions is a highly competitive, time consum-
ing process.
onsuming_process. Often times, the Convention Bureau will work with
meeting planners for several years before being granted an oppor-
tunity to make a proposal before a selection committee, and once
they are granted an audience before the selection committee, they
are competing with other cities who are aggressively pursuing the
same conventions. Having recognized the positive economic impact
conventions bring to the community, the Convention Bureau has be-
gun to use a variety of marketing and incentive packages to secure
conventions for the city in the form of subsidies, primarily for
rental and/or transportation services. The most expensive incen-
tive is the rental and transportation subsidy. Of those con-
ventions booked in 1985-86 at the Civic Center, none received in-
centives. In 1986-87, one received incentives. In 1987-88,
$55,414 for incentives has been committed. Of these, $35,586.00
is for rental, $12,768.00 is for transportation, and $7,060 is for
sponsorship fees. The transportation incentives has become neces-
sary because of the lack of conference hotels in the downtown area
adjacent to the Civic Center. One of the major reasons for the
overall increase in number of conventions secured for Lubbock for
1987-88 is the use of incentives.
The Convention Bureau did commit to $55,414.00 for incentives and
sponsorship; however, this was not an approved line item expendi-
ture in their current budget. TheBureauhas two options, (1) to
reduce their other expenses by the amount equal to the subsidies
committed in order to absorb the increased cost or (2) to seek
additional funds.
-2-
ecommendation for the Creation of an Incentive Fund
Both the Civic Center and the Visitors and Convention Bureau rec-
ognize the value of providing incentives to selected conventions
when competition, particularly for larger conventions, necessi-
tates incentives. It is recommended that a fund be established
and dedicated for incentives of conventions and groups booked at
the Civic Center. If approved, these funds should be placed in a
City of Lubbock account reserved for that purpose. Specific cri-
terion should be developed for the use of the incentives and
should include at a minimum:
1. Incentives should be used solely for conventions and
groups booked at the Civic Center to offset rental
fees, transportation services, or other services re-
lated to the convention.
2. Incentives should be used selectively when the
competition for a specific convention or groups neces-
sitates the need for incentives.
4. Incentives should be granted based on objective crite-
rion such as room nights and number of delegates.
5. Incentives should be reserved for those conventions
and groups that yield the maximum amount of dollars
back into the local economy based on the use of motel
rooms, use of local restaurants, and potential use of
local entertainment activities.
dministration of Incentive Fund
Criteria needs to be developed for the staff of the Convention
Bureau and Civic Center to use as guidelines when reviewing re-
quests for incentives. Since conventions held at the Civic Center
require a joint effort by the Civic Center and Convention Bureau
staff, it is recommended that the criterion developed for the use
of incentives and the expenditures be reviewed and approved by a
joint committee with representatives from the Civic Centers Board
and Visitors and Convention Bureau. The general administration of
the fund would be as follows:
-3-
1. A joint committee consisting_of two Civic Center Board' *-
members, two Lubbock Visitors and Convention Bureau
members,- the Civic Center Director and Lubbock Visi-
tors and Convention Bureau Director would approve in-
centive proposals and incentive expenditures.'
2. All committee members would be required to attend a
minimum of one convention bid.
3 The committee would meet on a regular basis as needed
to approve proposals and expenditures.
4.Funds, dedicated for incentives would be placed in a
City of Lubbock account reserved for that purpose.
5. The Lubbock Visitors and Convention Bureau Board bud-
get committee would be responsible for providing
monthly financial reports on the use of the funds.
-- Initial 1987-88 Funding Level
To initiate the subsidy program, it is recommended that $55,414 be
set aside from the 1987-88 hotel motel tax for incentives. This
would allow the funds necessary to honor the commitments that have
been madeby the Visitors and Convention Bureau for conventions
already booked for 1987-88. However, if the convention business
continues to grow as expected, the initial $55,414 will not be
sufficient to meet the future requests and a program needs to be
established to provide for increased funding based on the in-
creased revenues. -
Summary
In 1987-88, $55,414 is requested in hotel occupancy tax for an in-
centive programa ,In subsequent years, it is requested that a min-
imum of $50,000 be set aside, up to 3/10 of a cent of the occu-
pancy tax, which ever is greater.
It is recommended that the City Council consider establishing a
special dedicated account set aside for incentives to book conven-
tions and groups at the Civic Center. Conventions booked to the
Civic Center not only benefit the Civic Center directly, but also
-4-
the hotels, motels, restaurateurs and local retailers. Now that
Lubbock has begun to establish a competitive position in attract-
ing conventions to Lubbock, it is important that we continue to
move forward from this point.
e'^
VrBDUCK
August 20, 1987
Dear Councilmembers:
The Lubbock Visitors and Conventions Bureau Operating Board
Budget Committee presents the Lubbock Visitors and Conventions
Bureau 1987-88 Budget for your approval. Presented'are three
levels of budgets for review.
1. Current Level
2. Reduced Level
3. Expanded Level
If we may be of help, or can answer any question, please feel
free to call any member of our committee.
Sincerely,
Dave Gentry, Chairman Bob Greenhill
Budget Committee Budget Committee
Priscilla Sims Martin Waters
Budget Committee Budget Committee
Lubbock Visitors & Conventions Bureau
14th & Avenue K PO Box 561
Lubbock, TX 79408 806/763-4666
ITEM 16
r
LUBBOCK VISITORS AND CONVENTIONS BUREAU
Program Description
The Visitors and Conventions Bureau is an organization which
represents our city in building outside visitor traffic to the
area. The Conventions Bureau promotes selecting Lubbock as a site
for a convention, corporate meeting, seminar, tradeshow, shopping,
and visiting local attractions. It is the Bureau's function to
formulate a solicitation and advertising program to attract visitors.
The Bureau strives to broaden the scope of Lubbock's recognition
as a convention city. It acts as an information clearinghouse,
convention management consultant, promotional agency for the city,
and often as a catalyst for urban devel'opment and renewal. The
Bureau builds and supports the "Convention Industry", which has
become one of the largest industries in Lubbock that contributes to
the overall economic impact.
An Operating Board of Directors, consisting of a cross section
of various business leaders appointed by the Chamber of Commerce
Board of Directors, acts as an advisory council for the Conventions
�,.., Bureau.
/01 Goals/Objectives
1. Reach the meeting and convention planner on a one-
to-one basis. Frequent trips to cities and metropolitan
.areas where there is a concentration of meeting planners
and executive officers must be planned. Direct sales
calls reach the executive planner on a one-to-one
basis to expose the city's convention and meeting
potential. Sales trips will be held sometimes in
conjunction with various individuals such as hotel
personnel, restaurant owners, airline personnel, business
leaders and city officials.
2. Keep in constant contact with the broad spectrum of
national, state and regional convention market by
direct mail program. The direct mail program will
call attention to Lubbock's attractions and facilities
.for meetings and conventions.
3. Advertise in publications covering the conventions and
meeting market. Placement of these ads will keep Lubbock's
convention facilities in front of the national, state
and corporate meeting planner.
No Text
4. Exhibit in tradeshows so the meeting planner may
become exposed to Lubbock's capabilities for
meetings and conventions. Exposure brings attention
-in building the city's reputation as a convention
and meeting market.
5. Develop audio visual presentations outlining our city's
attractions. The audio visual presentation gives the
meeting planner an overview of the facilities and
activities available for his or her convention. Lubbock
citizens, by viewing this slide presentation, will
encourage everyone to support conventions to our city.
6. Develop brochures that depict the city as a meeting and
convention location.
7. Concentration on sales missions to other cities. Sales
personnel from hotels, restaurants, airlines, business
leaders, city officials, etc., will go as a team from
Lubbock to make calls on those meeting planners who
can bring a potential meeting to our city.
8.- Coordinate a continuous local awareness program to inform
Lubbock citizens of the economic impact conventions and
visitors add to our city, and ask local leaders of associa-
tions to help secure meetings to our city.
Tourist Sales and Promotions
1. Develop a package tour brochure -.,of the city of Lubbock
and surrounding area.
2. Mail out the package tour brochures to travel agents,
tour brokers, travel writers, airline personnel, and
travel counselors.
3. Implement creative ads that will encourage the traveling
public to explore the possibilities of visiting Lubbock
and the West Texas area.
4. Participate in various trade and travel shows displaying
our attractions.
5. Have available for mail -out and giveaway, a press kit
and media information packet.
6. Formulate a section in the newspaper in order to imform
Lubbock citizens and surrounding areas of.various attract -
tions that are in and around Lubbock.
h
Lubbock Visitors and Conventions
Bureau-
1987-88 Proposed Budget
Reduced Level
The Reduced Level Budget absorbs the Incentive
Program
expenses. Income, Personal Services, Administration,
and
Awareness remain at the 1986-87 level. Convention
advertising
is decreased and Lubbock Tourism Promotion
is eliminated.
Activity Level
# Convention Presentations
25
# Convention Familiarization Tours
2
# Convention Site Tours
18
# Sales Blitzes
3
# Tourism Tradeshows
0
# Tourism Direct Sales Trips
0
Performance Level
# Conventions Booked
30
# Convention Delegates
23,455
#,Tourism Reservations
0
# Group Tours Booked
0
h
Lubbock Visitors and Conventions
Bureau
1987-88 Proposed
Budget
Reduced Level
INCOME
553,750
EXPENSES
PERSONAL SERVICES
136,700
ADMINISTRATION
52,747
LUBBOCK AWARENESS
601 Advertising
11,579
605 Sales Blitz
14,000
Total Lubbock Awareness
25,579
LUBBOCK CONVENTION PROMOTION
701 Advertising
186,828
702 Direct Sales
46,399
703 Tradeshow Representation
6,250
704 Familiarization Tours
19,930
705 Sales Blitz
23,903
706 Incentives
55,414
Total Lubbock Convention
Promotion
338,724
LUBBOCK TOURISM PROMOTION
801 Advertising
0
802 Direct Sales
0
803 Tradeshow Representation
0
Total Lubbock` Tourism Promotion
0
Total Expenses
553,750
-0-
Lubbock Visitors and Conventions Bureau
1987-88 Proposed Budget 4
Current Level
The Current Level Budget contains no'provision for the
Incentive Program expenses. Income, Personal Services, Ad-
ministration, Awareness, Convention Promotion, and Tourism
Promotion remain at the 1986-87 level. This level is $(26,525)
below the LVCB's 1985-86 budget.
Activity Level
# Convention Presentations 25
# Convention Familiarization Tours 2
# Convention Site Tours 18
# Sales Blitzes 3
# Tourism Tradeshows 3
# Tourism Direct Sales Trips 2
Performance Level
#_ Conventions Booked 45
# Convention Delegates 41,590
# Tourism Reservations 261
# Group Tours Booked 2
Lubbock Visitors and Conventions Bureau
1987-88 Proposed Budget
r
Current Level
INCOME
101 City of Lubbock - Hotel Tax
453,750
102 Board of City Development
100,000
Total Income
553,750
EXPENSES
PERSONAL SERVICES
401 Permanent Full Time Salaries
99,120
402 Part Time Salaries
6,432
403 Sales Incentives
7,300
404 Retirement
7,409
405 Social Security
7,552
406 Hospitalization, Dental, Life
6,572
407 Life & Long Term Disability
955
408 Worker's Compensation
610
409 Unemployment
750
�► ,
Total Personal Services
136,700
ADMINISTRATION
501 Office Supplies
6,500
502 Uniforms
100
503 Maintenance Office Equip/Furniture
1,827
504 Maintenance Communication Equip.
100
505 Professional Services (Audit/Research)
6,000
506 Boards and Commissions
5,632
507 Bank Service Charges
15
508 Telephone
6,000
509 Postage
7,000
510 Freight & Express Charges
630
511 Expense Allowance & Other
4,350
512 Insurance (Liability, Surety, Other)
956
513 Rent Lease Machinery Equip.
3,505
514 Professional Dues & Subscriptions
3,462
515 Training & Travel
6,070
600
520 Misc.
Total Administration
52,747
LUBBOCK AWARENESS
�-�
601 Advertising
11,579
605 Sales Blitz
14,000
Total Lubbock Awareness
25,579
f
'
LUBBOCK CONVENTION PROMOTION
701
Advertising
190,139
702
Direct Sales
46,399
703
Tradeshow Representation
6,250
704
Familiarization Tours
19,930
705
Sales Blitz
23,903
Total Lubbock
Convention Promotion 286,621
LUBBOCK-TOURISM PROMOTION
801
Advertising
45,163
802
Direct Sales
1,340
803
Tradeshow Representation
5,600
Total Lubbock
Tourism Promotion 52,103
Total Expenses 553,750
-0-
Lubbock Visitors and Conventions Bureau
1987-88 Proposed Budget
Expanded Level
The Expanded Level Budget represents the Current Level
Budget plus three expanded levels: l) Tourism Promotion
Program 2) Incentive Program 3) Restoring the LVCB budget
to its 1985-86 level. This level allows for competitive
convention promotion and the formulation of a tourism promo-
tion program.
Activity Level
# Convention Presentations 25
# Convention Familiarization Tours 2
# Convention Site Tours 18
# Sales Blitzes 3
# Tourism Tradeshows 8
# Tourism Direct Sales Trips 20
# Tourism Familiarization Tours 1
Performance Level
Conventions Booked 45
# Convention Delegates 41,590
# Tourism Reservations 1,044
# Group Tours Booked 15
* The Texas Tech University Restaurant, Hotel, Institutional
Management Program will conduct a tourism research survey
to measure the effectiveness of the LVCB's tourism
promotion program._
Lubbock Visitors and Conventions Bureau
1987-88 Proposed.
Budget
Expanded Level
INCOME
101 City of Lubbock - Hotel Tax
652,701
102 Board of City Development
100,000
Total Income
752,701
EXPENSES
PERSONAL SERVICES
162,994
ADMINISTRATION
60,347
LUBBOCK AWARENESS
601 Advertising
41,579
605 Sales Blitz
14,000
Total Lubbock Awareness
55,579
LUBBOCK CONVENTION PROMOTION
701 Advertising
190,139
702 Direct Sales
46,399
703 Tradeshow Representation
6,250
704 Familiarization Tours
19,930
705 Sales Blitz
23,903
706 Incentives
55,414
Total Lubbock Convention
Promotion
342,035
LUBBOCK TOURISM PROMOTION
801 Advertising
100,833
802 Direct Sales
5,785
803 Tradeshow Representation
15,340
804 Familiarization Tours
3,100
Total Lubbock Tourism Promotion
125,058
Total Expenses
746,013
6,688
Total 117,012
Expanded Level
-#I
Tourism Promotion
Program.
LUBBOCK
TOURISM PROMOTION
90,718
801.0
ADVERTISING
67,833
801.1
Magazine
10,000
801.2
Newspaper
12,120
801.3
Direct Mail
13,000
801.4
Radio/TV/Film
8,000
801.5
Outdoor
1,000
801.6
Co-op
14,000
801.7
Print
4,013
801.8
Specialty
5,700
802.0
DIRECT SALES
4,445
802.1
Transportation -
1,950
802.2
Food & Lodging
2,155
802.3
Entertainment
340
803.0
TRADESHOW REPRESENTATION
15,340
803.1
Transportation
3,200
"
803.2
Food & Lodging
3,170
803.3
Entertainment
150
803.4
Registration
8,220
803.5
Frieght
50
803.6
Decorations
550
804.0
FAMILIARIZATION TOURS
3,100
804.1
Transportation
900
804.2
Food & Lodging
1,200
804.3
Entertainment
1,000
400.0
PERSONAL SERVICES
26,294
401.5
Tourism Coordinator
23,000
405.6
Social Security
1,644
406.0
Hospitalization, Insurance
1,650
Total 117,012
Expanded Level
#2
Incentive Program
LUBBOCK
CONVENTION PROMOTION
706
Incentives
55,414
Total
55,414
Expanded Level
#3
Restoring LVCB Budget to
1985-86 Level
ADMINISTRATION
7,600
501
Office Supplies
700
502
Uniforms
100 -
505
Research
2,000
(�
508
Telephone
500
509
Postage
2,000
511
Expense Allowance
900
513
Computer Rental
1,400
LUBBOCK
AWARENESS
601
Advertising
18,925
Total
26,525
CURRENT LEVEL
..:
PERSONNEL
.PERMANENT FULL TIME
Executive Director
State Coordinator
Local Coordinator
Secretary
PART TIME
Assistant
EXPANDED LEVEL
PERSONNEL
PERMANENT FULL TIME
Executive Director
State Coordinator
Local Coordinator
Tourism Coordinator
Secretary
PART TIME
Assistant
PREPARED BY:
City of Lubbock
FinanceDepartment.
City of `
Lubbock
Hotel 'Occupancy
Tax
Allocation
Allocation.
Rate in:
Budget
Rate in
Budget
1987-88
1987-88
1986-87
1986-87
Reserve for Arts and
----------
----------
----------
Related items;cent
82,500
0.5
cent
82, 500
Debt Service
2.25 cents
371,250
2.25
cents
371,250
Convention and
Tourism
2.75 cents
453, 750
2.75
cents
453, 750
General Fund
0.4 cents
66,000
0.4
cents
66,000
Reserve For Special -
Projectsu
0 1, -cents
16,500
0.1
cents
16,500
Ressve For Convention
an, Purism Capital
Pr. y�ts
1 cent `
------------------------
165, 000
1
---------
-----------------------
cent
165,000
----------
T otals
Totals
7 cents
1,1552000
7
cents
'1,155,000
7 cent = M The current
Hotel Occupancy Tax Rate
l
September 8, 1987
John Logan, General Manager
Chamber of Commerce
P.O. Box 561
Lubbock, Texas 79408
Dear John:
In response to the Chamber's request for an expanded level
tourism program presented to the Council on August 27, 1987,
h =' the Council has approved the contract which is enclosed for
your signature. Enclosed are two copies. If you would sign
both copies, return one for our records, and retain one for
f yours, I would appreciate it.
The Council wishes you and the Convention Bureau success in
this new program and feel, if successful, it is one that will
benefit the entire community.
Sincerely,
December 2, 1987
The Honorable B. C. "Peck" McMinn
Mayor, City of Lubbock
P. 0. Box 2000
Lubbock, TX 79457
Dear Peck:
Lubbock Chamber of Commerce
P.O. Box 561
Lubbock, Texas 79408
806-763-4666
RECEi V
DE'% 31987
WAYS R'S CFi ,,CE
The Expanded Tourism Service Grant Contract between the City
of Lubbock and the Lubbock Chamber of Commerce has been
signed and a copy is attached.
As was discussed in the meeting with you and others on
November 24th, there are concerns about some provisions in
the contract. The Board, however, authorized the signing of
the contract based on the understanding that a committee
made up of two Council Members, two Chamber Board Members
and two Convention Bureau Board Members would be appointed
to review the contract in the interest of either eliminating
or correcting the concerns. It is our understanding that
these negotiations would take place in the spring of 1988.
Our attorneys expressed concerns to us about certain
provisions in the contract and the process utilized in
drawing the contract between the two parties. A copy of
their letter pointing out these concerns is attached for
your information.
We hasten to point out that we believe that the Expanded
Tourism Program as outlined to the Council is a good one and
will indeed produce good results for Lubbock. To accomplish
these objectives, and in the spirit of cooperation for these
programs that are good for Lubbock, we are returning the
signed contract and are entering into this program with
great enthusiasm and high expectations.
It is also our understanding that the city is prepared to
fund the first quarter of the grant upon receipt of the
signed contract.
The Newest Star On The Texas Horizon
Expanded Tourism Service Grant Contract
December 2, 2987
Page 2
We invite you, other council members, and city staff to Join
us in support of the effort.
Sinc r y yours..
To a Stevens
Chairman
Board of Directors
TS/fa
Enclosure
P. S.
We are enclosing copies for other council members in
compliance with your request.
MCCLESKEY, HARRIGER, BRAZILL & GRAF
ATTORNEYS
LUBBOCK, TEXAS
THE PLAINS NATIONAL BUILDING
5010 UNIVERSITY - ZIP 79413
P.O. DRAWER 6170 - ZIP 79493
JERRY M. KOLANDER, JR. 806 / 796-7300
(806) 796-7311 TELECOPIER (806) 796-7365
September 25, 1987
Mr. John Logan
Lubbock Chamber of Commerce
P.O. Box 561
Lubbock, Texas 79408
RE: "Expanded Tourism Service Grant" Between the City of
Lubbock and the Lubbock Chamber of Commerce
Dear Mr. Logan:
We have carefully reviewed the Expanded Tourism Service Grant
which you delivered to us today and which has already been signed
by the City through Mayor B. C. McMinn following passage of
Resolution 2640. As you may have noted, all of this has been
made a part of the minutes of the City Council as of Septemer 10,
1987.
There are a number of items in the agreement that are bothersome.
However, of primary concern to us, as the attorneys for the
Chamber, is the manner in which this agreement has been processed.
Obviously, it has been signed, approved, and made a part of the
minutes of the City Council before the Chamber has had an oppor-
tunity to review either the form or content thereof. This
proposed agreement contains provisions and impositions of
obligations on the Chamber acting through the Bureau which have
never before been discussed between the parties to the proposed
agreement. As you are aware, the Lubbock Visitors and Conven-
tions Bureau will have primary responsibility for management of
the grant.
The Chamber and the Bureau are undertaking some extremely
important responsibilities through this agreement. It is not
customary in business dealings to have an "agreement" unilat-
erally signed. Normally, an "agreement" contemplates a meeting
of the minds of the parties. I have spoken with John C. Ross,
Jr., City Attorney, today and have been told that, in his
opinion, the terms of this agreement are not negotiable.
Representatives of the Chamber and members of the staff at the
City have negotiated contracts in the past and arrived at
mutually agreeable terms before that document has been presented
for final approval and execution. To do otherwise, as in this
case, can many times lead to confusion and misunderstanding
concerning the terms and conditions of the agreement.
As you well know, we have negotiated other contracts with the
City through Mr. Ross. Consequently, when I received copies of
the agreement I contacted him to discuss the three or four
concerns I have. He was very reluctant to discuss anything with
me concerning this contract and finally suggested that I write
him a letter setting out the objections and that he would present
that letter to Rita Harmon and have Ms. Harmon contact me. I
have written that letter and, hopefully, Ms. Harmon will contact
me next week.
Those items we find objectionable in the contract are as follows:
(1) The last sentence of paragraph three on page two is of the
greatest concern to us. This sentence adds a provision to
the "agreement" that was not made a part of the proposition
and to our recollection never directly discussed before the
City Council on August 27, 1987. The grant request was made
without any intended offset. We understood the tourism
demonstration grant was an unconditional funding. This
sentence alters the LVCB's normal funding process by
instituting a cap of $453,750.00, despite increasing costs
and expenses.
(2) It was the intention of the presenters on behalf of the LVCB
on August 27, 1987 to show the potential growth of the
tourism industry in Lubbock. As the industry grows so will
the LVCB's costs associated to servicing, advertising, and
administering the program. Many times the presenters noted
that $117,000 was a minimal budget to get the program
started on.
It was not the intention of the presenters on behalf of the
LVCB on August 27, 1987 to lead the City Council to believe
that the LVCB "anticipated" that expanded tourism services
would generate additional sufficient revenues so that the
expanded program would be assimilated into the basic
services provided by the LVCB funded by the two and three
fourths cent hotel/motel allocation. The statement
contained in the fifth "Whereas" on the first page making
this assumption is not, in our opinion, accurate.
When this matter is reviewed in the future, we do not want
to be accused of misleading the City into thinking that the
LVCB foresees in its crystal ball that such additional
revenues will be generated.
(3) With regard to the same "Whereas" paragraph on the first
page, the LVCB certainly does not intend that the expanded
tourism program will be assimilated into the basic services
provided under existing contracts for any reason.
(4) There is concern regarding the actual budgetary process the
City prefers the LVCB to follow. In order for the Chamber
and LVCB to comply with the City's requirements, it will be
helpful if the City staff can present written guidelines as
to how the Chamber and Bureau can meet the City's budgetary
requirements.
(5) The contract references many times to separate budgeting and
accounting of funding and performance, yet seems to require
the "assimilation" of the grant into the regular convention
and tourism programs. This seems to be in conflict.
As a whole, the grant is written in terms that are somewhat
confusing. The objections that we have listed here and other
unclear wordings could have been avoided, or at least discussed
and answered had we been given the opportunity to review the
"agreement" prior to its approval by the Mayor and City staff.
As attorneys for the Chamber, we know that you will understand
our dissatisfaction with the way in which this "agreement" has
been handled. Maybe we will be able to resolve those differences
after I have had an opportunity to visit with Ms. Harmon in the
next few days. We will keep you informed.
Very truly yours,
LES11#o
, H IGER, BRAZILL & GRAF
ry M. anJr.
JMK: