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HomeMy WebLinkAbout2008-084 Visitors Bureau - Town of Chapel Hill Performance Agreementa - ._Please return this copy to Clerk to the Board's office for PA STATE OF NORTH CAROLINA COUNTY OF ORANGE PERFORMANCE AGREEMENT This Agreement, made and entered into by and between the Town of Chapel Hill, herein "Town", and Orange County by and for its Chapel Hill/Orange County Visitors Bureau, 501 West Franklin Street, Suite 104, Chapel Hill, NC 27516, herein "County" for services hereinafter described for the Town of Chapel Hill. This Contract is between the Town of Chapel Hill and Orange County by and for its Chapel Hill/Orange County Visitors Bureau for a comprehensive visitor services program targeted toward providing services to potential visitors to Chapel Hill and Orange County for FY 2008-09. WITNESSETH That for and in consideration of the mutual promises and conditions. set forth below, the Town and County agree: 1. Duties of the County: The County shall operate a comprehensive visitor services program targeted toward providing services to potential visitors to Chapel Hill and Orange County. The County shall use Town funds for general operational support and to provide visitor services. 2. Duties of the Town: The Town has appropriated the sum of One Hundred Thirty Thousand Dollars ($130,000) to the County for the fiscal year 2008-2009. Additionally, if the Town's actual (hotel occupancy) revenues exceed $1,000,000, for the fiscal year ending June 30, 2009, the Town agrees to pay to the County one-half of the revenues over $1,000,000, up to an additional $20,000. Further, the Town will pay 13% of any hotel occupancy revenues in excess of $1,040,000 to the County.* 3. Fee Schedule and Maximum Sum: Payments of $32,500 each will be made on or after the following dates: July 1, 2008; October 1, 2008; January 1, 2009; and April 1, 2009 , and if it is determined that revenue for the fiscal year ending June 30, 2009 exceeds $1,000,000, an additional payment calculated as described in # 2 above, will be made within 30 days of the receipt of the final hotel occupancy payment from the State. 4. Performance Review: At the end of the third quarter the CVB Director and the Town Manager will review the status of and results of this agreement and report their to findings to the Council. 5. Billing and Pam The County shall bill and the Town shall pay the rates set forth Therein. Payment will be made by the Town within thirty (30) days of receipt of an accurate invoice, approved by the contact person or his/her designee. 6. Financial Records: The County agrees to allow the Town to inspect its financial books and records upon reasonable notice, during normal working hours. Revised 11/2008. Page 1 of 3 7. Termination for Cause: In the event that the County shall fail to render a satisfactory accounting as provided herein, then, and in that event, the Town may terminate this Agreement and the County, to the extent permitted by law, will return all payments already made to it by the Town, for services which have not been provided, or of which no satisfactory accounting has been rendered. In the event that the Town shall fail to make payments as provided herein, then, and in that event, the County may terminate this Agreement and the Town, to the extent permitted by law, will make all payments then due to County for services rendered. 8. Non-Discrimination: The County shall administer all functions without discrimination because of race, creed, sex, national origin, age, economic status, sexual orientation, gender identity or gender expression. 9. Federal and State Le al Compliance: The County must be in full compliance with all federal and state laws, including those on immigration. 10. Amendment: This Agreement may be amended in writing by mutual agreement of the Town and County. 11. Term: This Agreement, unless amended as provided herein, shall be in effect until June 30, 2009. * Based on the July 25, 2008 Memorandum attached THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK Revised l l/2008 Page 2 of 3 This Contract is between the Town of Chapel Hill and Orange County by and for its Chapel Hill/Orange County Visitors Bureau for a comprehensive visitor services program targeted toward providing services to potential visitors to Chapel Hill and Orange County for FY 2008- 09. IN WITNESS WHEREOF, the parties hereunto cause this agreement to be executed in their respective names. ORANGE COUNTY by and for its CHAPEL HILL/ORANGE COUNTY VISITOR'S BUREAU Laura Blackmon, County Manager Attest: Donna Baker, Clerk TOWN OF CHAPEL HILL C ASSIS ANT/DEPUTY/ WN MANAGER ATTEST BY TOWN CLERK: ~0~~ Q~ TO CLERK k~R~ Town Clerk attests date this the C~~day o ~ ~ ~~~~ Approved as to Form and Authorization ~' ` d'~. .~' '` ;~ TOWN ATTORN I' This instrument has and Fi al tro FIN E FFICE _~ 4 t~• PAIRKS ADfD REC in the manner required by the Local Government Budget ~~~ t ~/~~ ~ l~0 ION I CTOR Revised 11/2008 Page 3 of 3 AGENDA #[##] MEMORANDUM TO: Mayor and Town Council FROM: Roger L. Stancil, Town Manager SUBJECT: Funding for Chapel Hill/Orange County Visitors Bureau DATE: June 25, 2008 PURPOSE The purpose of this memorandum is to propose an approach to increased funding for the Chapel Hill/Orange County Visitors Bureau (CVB). This proposal is in response to interests expressed by Council at a budget work session. The increased funding is consistent with the Council's interest in providing increased resources for economic development. BACKGROUND The CVB submitted a budget request to Council to increase the CVB's allocation from occupancy taxes to 13.7%, or $150,000 for FY 09. The CVB estimated revenues from the Town's occupancy tax at approximately $1,094,000. The Manager's Recommended Budget, as adopted by Council June 9, 2008, estimated occupancy tax revenues at $935,000 and an allocation to the CVB of 100,000, or 10.7%. Negotiations with the CVB director about the Town's allocation were still underway. I committed to the Council to complete those negotiations and report to the Council on June 25. DISCUSSION The focus of negotiations was a mutually acceptable approach to increasing the allocation to the CVB without decreasing funds available to the Town's operations in the FY 09 budget. The means to that approach was the difference in revenue projections for FY09. I propose the following, which Laurie Paolicelli deems workable: • Amend the FY09 adopted budget to increase the projected occupancy tax revenues to $1,000,000 and increase the budgeted payment to the CVB to $130,000, or 13%. • Beginning July 1, the Town will make payments to the CVB based on the $130,000 budget. • If the Town's actual revenues exceed $1,000,000, the Town's payments to the CVB will be one-half of the revenues over $1,000,000 until the additional $20,000 the CVB requested is paid. The Town will pay the CVB 13% of all revenues in excess of $1,040,000 2 • At the end of the third quarter (March 2009), the Town Manager and CVB Director will review the status and results of this agreement and report to the Council . RECOMMENDATION I recommend that the Council take the following action: • Authorize the manager to execute an agreement with the CVB that reflects the recommendations above; • Authorize the manager to present a budget amendment to the Council in September 2008 reflecting the terms of the agreement; • Authorize the manager to make any payments to the CVB before the budget amendment is approved at the rate reflected on the agreement.