HomeMy WebLinkAboutAgenda - 02-17-2009 - 4g ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 17, 2009
Action Agenda
Item No.
SUBJECT: Sales Contract Between the Visitors Bureau and the Hyland Group
DEPARTMENT: Orange County Visitors Bureau PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
One-Year Contract Beginning March 1, Laurie Paolicelli, 968-2064
2009
Summary of Minutes from Visitors Bureau
Board Meeting
Summary from Executive Director Laurie
Paolicelli on State of Occupancy and
Tourism in Orange County
PURPOSE: To request Board approval for a contract between the Visitors Bureau and the
Hyland Group, a sales firm in Washington, DC that works with visitors bureaus to increase
leads and bookings for facilities and hotels.
BACKGROUND: Last year the BOCC voted to increase the County's occupancy tax by 1%,
with revenues directed to the Visitors Bureau to market and sell tourism to Orange County.
Orange County hotels requested the Bureau use these additional revenues to increase the
variety and number of group meeting leads in the hopes of converting these leads into bookings
for Orange County hotels.
At the Visitors Bureau's August 2008 meeting, incoming and now Chair Mark Sherburne
informed board members local hotels had started meeting on a regular basis as part of
revitalized lodging association for Orange County. Results of the meetings included on-going
discussions on declining occupancy as a result of new hotels in Orange County, a weakening
global economy and the addition of 1,200 new hotel rooms in Durham. The hotels
overwhelmingly wanted the Visitors Bureau to consider using a sales arm to generate new
leads. A sales firm, in addition to the Bureau's program of work, would help guarantee that new
business was booked and Orange County's occupancy remained at no less than 65%
aggregate. The hotels also asked for increased advertisements in the group market and new
market pursuit.
The Visitors Bureau Board voted to have Laurie Paolicelli, executive director of the Visitors
Bureau, conduct a search for a sales firm that would increase leads and bookings for area
hotels. This search led to receipt of a proposal from the Hyland Group, and the Visitors Bureau
Board approved a proposed contract with the Hyland Group on January 29th (Minutes attached).
2
FINANCIAL IMPACT: The funding for this contract will come from the Visitors Bureau budget
for both the current fiscal year and next year. The one-year contract would begin on March 1,
2009 with a cost of $1,800 per month and an additional one-time start-up cost of $1,800. The
Bureau still retains a 25% fund balance.
RECOMMENDATION(S): The Manager recommends the Board approve the contract between
the Hyland Group and the Visitors Bureau subject to final review by staff and the County
Attorney.
3
THE HYLAND GROUP/
CHAPEL HILL/ORANGE COUNTY VISITORS BUREAU
SALES REPRESENTATION AGREEMENT
This AGREEMENT, is entered into by and between THE HYLAND GROUP
with its principal offices at 1911 North Fort Myer Drive, Suite 505, Arlington, Virginia
22209, and the CHAPEL HILL/ORANGE COUNTY VISITORS BUREAU, with its
principal office at 501 West Franklin Street, Chapel Hill,North Carolina 27516,
(hereinafter referred to as the "CLIENT").
WHEREAS, THE HYLAND GROUP is an organization that represents
meeting/convention destinations with the purpose of generating business for the
meeting/convention destinations.
WHEREAS, the CLIENT desires THE HYLAND GROUP to act as its national
sales representative to generate business for the CLIENT in the national association,
corporate, government, and other related group markets;
WHEREAS, THE HYLAND GROUP desires to be the CLIENT'S national sales
representative for such purposes;
And
NOW, THEREFORE, in consideration of the mutual covenants,promises,
obligations and conditions contained herein, and other consideration,the adequacy and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
1. PURPOSE
The purpose of this AGREEMENT is to authorize THE HYLAND GROUP to act
as the CLIENT'S national sales representative in the national association,
corporate, government, and related group markets. THE HYLAND GROUP will
represent the CLIENT and endeavor to generate group business for the CLIENT.
THE HYLAND GROUP will direct its national sales representation efforts from
both THE HYLAND GROUP'S Washington, DC (Arlington, Virginia) and
Chicago offices.
2. MARKETING MATERIALS
The CLIENT agrees to supply both offices of THE HYLAND GROUP with an
(1)
4
ample supply of convention brochures and video presentations, if available, and
any other relevant sales collateral available, in order to allow THE HYLAND
GROUP to market the CLIENT'S facilities and capabilities.
3. PRODUCTIVITY REPORTS
At the end of each quarter THE HYLAND GROUP shall provide the CLIENT
with a productivity report that shall detail all leads sent to the CLIENT, including
the status of each lead, and an indication as to whether each lead is definite,
pending, or lost.
4. CONFIDENTIALITY
4.1 The Hyland Group Financial Arrangement
The CLIENT understands and agrees that the financial arrangement, as
specified in this AGREEMENT between THE HYLAND GROUP and the
CLIENT is proprietary and confidential information to THE HYLAND
GROUP and the CLIENT shall not disclose in any way such information to
anyone not a party to this AGREEMENT.
5. REMUNERATION
5.1 Retainer
In addition to all other remuneration payable to THE HYLAND GROUP
under this AGREEMENT, the CLIENT agrees to pay THE HYLAND
GROUP a monthly retainer of$1800 which shall be payable the first week of
each month following the execution of this AGREEMENT. There is also a
one time start up fee equal to the first month's retainer payment of$1800 to
cover start up costs incurred by THE HYLAND GROUP. The CLIENT
agrees to pay THE HYLAND GROUP a pro rata share of the monthly
retainer for all incomplete months that this AGREEMENT is effective.
Furthermore, THE HYLAND GROUP reserves the right to charge
a late payment fee of$90.00 (5%) and the CLIENT agrees to pay such a
late payment fee if required by THE HYLAND GROUP for monthly
retainers that are thirty days past due.
(2)
5
6. DURATION
This agreement is effective as of March 1, 2009 and shall continue in effect for
one year following the effective date. After the conclusion of the first year the
agreement will remain in effect until sixty day written notice of termination is
issued by either party.
7. SALES APPOINTMENTS
The Hyland Group is unable to fill appointments schedules for visiting
salespeople. However, given advance notice we will call accounts with whom we
have active leads for your destination and attempt to secure appointments on your
behalf. We are unable to provide this service during a week that has an industry
trade show/event.
8. FAMILIARIZATION TRIPS AND SPECIAL EVENTS
THE HYLAND GROUP will, from time to time, arrange familiarization trips in
which THE HYLAND GROUP visits the CLIENT with potential customers.
THE HYLAND GROUP also will, from time to time, arrange special marketing
events such as receptions and luncheons, etc.
9. MISCELLANEOUS
a. Entire Agreement: This AGREEMENT constitutes the sole and final
agreement of the parties hereto relating to the matters covered herein and
correctly sets forth the rights, duties, and obligations of each to the other. Any
prior agreements,promises, negotiations or representations not expressly set
forth in this AGREEMENT are of no force and effect. Any modification or
amendment hereto shall be of no force and effect unless made in writing and
signed by each of the parties hereto.
b. Waiver: No waiver of any provisions, or of any default or breach or any
provisions of this AGREEMENT shall be deemed to constitute a waiver of
any other provision. Such waiver shall not be construed as a waiver of any
prior or subsequent breach of default.
c. Changes in CLIENT'S Ownership and/or Management: This AGREEMENT
shall be effective and binding upon the CLIENT notwithstanding any changes
in the CLIENT'S ownership and/or management.
(3)
d. Authority: The parties executing this AGREEMENT represent and warrant
that each has full right,power and authority to enter into this AGREEMENT
and that no other person, individual, or entity, need approve this
AGREEMENT to render it effective and binding as intended.
e. Choice of Law and Exclusive Venue: All questions concerning the validity,
interpretation or performance of any of this AGREEMENT'S terms or
provisions or any rights or obligations of the parties hereto shall be governed
by and resolved in accordance with the substantive laws of the
Commonwealth of Virginia, excluding any conflicts of law,rules or principle
that might refer to the substantive law of another jurisdiction.
f. Notice: Any notice given or request made hereunder by either party to the
other shall be in writing and may be affected by registered mail, return
receipt requested, addressed by such part to the other at the addresses here and
above given.
g. Remedies for Breach of this Agreement: Any remedy conferred by any
specific provision of this AGREEMENT shall be cumulative of and in
addition to any other remedy now or hereafter existing at law, inequity,by
statute or otherwise. The election of one or more remedies by either party
shall not constitute a waiver of the right to pursue any other available remedy.
h. Construction: In case any one or more of the provisions contained in this
AGREEMENT is for any reason held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any
other provision hereof, and this AGREEMENT shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.
IN WITNESS WHEREOF,the parties have executed this AGREEMENT.
Peter D. Hyland, President Date
The Hyland Group
Laurie Paolicelli, Executive Director Date
Chapel Hill/Orange County Visitors Bureau
(4)
7
•
WITH CARRBORO & HILLSBOROUGH
The Feeling Never Leaves You
Minutes of January 29th Conference Call
(Replaces January 20th board meeting rescheduled due to snow conditions).
Proposal to contract with the Hyland Group
10AM (Recorded) via AT&T Conference Calling Services
On-Call: Mark Sherburne, Chairman
Greg Overbeck, Chapel Hill Chamber of Commerce
Dave Gephart, Alliance for Historic Hillsborough
Jim Ward, Town of Chapel Hill Council
Frances Dancy, Town of Hillsborough Board
Creston Woods, Carolina Inn
Linda Convissor, UNC
Bob Ward, Orange County EDC Board
Staff: Laurie Paolicelli, Director; Tina Fuller, Administrator
Absent: Rick Strunk(approval sent via email)
Lee Pavao,non-voting
Dwight Bassett, non-voting
James Harris, non-voting
Commissioner Barry Jacobs
Tina Fuller welcomed the group and reported that we have a Quorum and that the call
was being recorded. She turned it over to Mark Sherburne, Chairman.
Mark welcomed the group and explained that this board needed to vote on the contract
with the Hyland Group sales firm in order to move the contract to the BOCC agenda in
February. Sherburne reminded the group of the minutes of the August meeting in which
the board discussed and approved the need for a sales arm in DC to help the Bureau fill
hotel rooms. DC is the home of the largest number of associations, as well as the largest
number of destination sales firms (for this reason). DC is also home to the largest
concentration of Carolina Alumni outside of the state. Many of these Alumni make
decisions on where to hold meetings and the Bureau and hotels are hoping to convert that
passion for Chapel Hill into booked business. The Ram's Club in DC will work with the
Hyland Group through the Bureau's relationship with Tar Heel Sports Marketing.
B
Sherburne explained that firms such as the Hyland typically work with Bureaus for$3500
retainer fees but they had agreed to work with Orange County for$1800 a month and that
the Bureau's budget covered this amount.
Staff talked with many firms and individuals in DC and decided on the Hyland Group for
the following reasons:
• The Hyland Group is being recommended for these reasons:
• Ties to Orange County
• Strong reputation in national market
• Experience with college towns
• Wide reaching rolodex of clients
• Willingness to cut rate in half for market our size
• High level of references from state and national clients
• Knowledge with state and UNC system
• Working relationships with Ram's Club in DC
• Have met with area hotels and received strong approval rating
The Visitors Bureau has allocated the budget. The staff and board are ready to move on
this partnership. The Visitor's Bureau Board unanimously passed the recommendation
and asked that we now forward to BOCC for contract approval.
Sherburne opened the call to questions.
Dave Gephart asked how we would know if they were successful. Sherburne explained
that we would give them an opportunity to scour their database for 100 top accounts that
make sense for Chapel Hill and then we would ask them to pursue this business in
conjunction with area hotels. Sherburne said that because groups were booking closer-in
(as opposed to two years out anymore)we'd know pretty quickly if they were working.
Jim Ward suggested that we might not know of their success for a few years and how
would we gauge this in the first year. Sherburne explained that we would have a strong
indication of how they were working this first year, based on the leads they generated and
that we were able to convert into definite business. But yes, in fact, it would take a few
years to determine the outcome of much of these leads.
Bob Ward asked if the Bureau should enter a one year or two year contract with the
Hyland Group. Sherburne said that based on the newness of the contract and tenuous
economic times,we were asking for a one-year contract with the right to renew at the
same rate for a second year.
Greg Overbeck asked if the $1800 a month was all-inclusive or if we would be required
to add more dollars for travel, tradeshows and marketing. Laurie Paolicelli explained that
she had discussed this in depth with the firm and they assured that they would not require
extra dollars in pursuit of business for Orange County unless the Bureau made a special
request such as hosting the National Association of Botanical Garden Executives (as an
example) for a special dinner or event to solicit their group meetings business. Most—if
not all—dining,tradeshows, standard business would be covered under the $1800 a
month retainer fee unless there was a special request.
The firm has recommended that they host a Duke/Carolina basketball event on large
screen TVs in DC—for Carolina alumni that book group meetings. This event and
special events like this would require extra dollars.
Paolicelli explained that she had budgeted $2,000 a month with $200 allocated for special
meals, events associated with the account. She explained that we currently advertise in
`group meeting' publications so the relationship with this sales firm would require no
extra advertising or marketing dollars.
With no further question, Sherburne asked for a vote,which was a unanimous YES.
The contract is now being moved to BOCC for approval.
###
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January 29, 2009
To: Willie Best; Assistant County Manager
Brad Broadwell, EDC Director
Fr: Laurie Paolicelli
cc: Mark Sherburne, Chairman
Chapel Hill/Orange County Visitors Bureau
Re: State of Tourism/Recommended Contract with the Hyland Group
In terms of overall tourism numbers and economic health, Chapel Hill/Orange County hotels and ancillary
tourism businesses are down slightly,as a whole,with 2008 occupancy figures ending(-2.8%)and average daily
rate up 2%. Orange County, as a whole, is performing on par with the state.
As we look at 2009-2010,there are concerns that the national fractured economy, coupled with cuts in business
travel, including state government, education, corporate and state associations—coupled with lessening
consumer confidence—will impact our hotels, and supporting businesses,including restaurants,retail,
transportation and supplementary travel spending.
We are fortunate in that the BOCC passed a 1%hotel occupancy tax last year. This has allowed our budget to
stay healthy while still protecting a 25%fund balance.
However,with the additional funds generated by the 1%tax increase, area hoteliers want the Visitors Bureau to
generate new sources of leads and definite bookings. To this end,the Chapel Hill/Orange County Visitors
Bureau board of directors is asking that we work with a Washington DC sales firm on a one-year trial basis,to
increase the amount of group association and corporate business coming into Orange County.
• The Hyland Group is being recommended for these reasons:
• Ties to Orange County
• Strong reputation in national market
• Experience with college towns
• Wide reaching rolodex of clients
• Willingness to cut rate in half for market our size
• High level of references from state and national clients
• Knowledge with state and UNC system
• Working relationships with Ram's Club in DC
• Have met with area hotels and received strong approval rating
The Visitors Bureau has allocated the budget. The staff and board are ready to move on this partnership. The
visitor's bureau board unanimously passed the recommendation and asked that we now forward to BOCC for
contract approval.
01 a�•
a/i7109
THE HYLAND GROUP/
CHAPEL HILL/ORANGE COUNTY VISITORS BUREAU
SALES REPRESENTATION AGREEMENT
This AGREEMENT, is entered into by and between THE HYLAND GROUP
with its principal offices at 1911 North Fort Myer Drive, Suite 505, Arlington, Virginia
22209, and ORANGE COUNTY,NORTH CAROLINA for and on behalf of the
CHAPEL HILL/ORANGE COUNTY VISITORS BUREAU,with its principal office at
501 West Franklin Street, Chapel Hill,North Carolina 27516, (hereinafter referred to as
the"CLIENT").
WHEREAS,THE HYLAND GROUP is an organization that represents
meeting/convention destinations with the purpose of generating business for the
meeting/convention destinations.
WHEREAS,the CLIENT desires THE HYLAND GROUP to act as its national
sales representative to generate business for the CLIENT in the national association,
corporate, government, and other related group markets; and
WHEREAS, THE HYLAND GROUP desires to be the CLIENT'S national sales
representative for such purposes;
NOW,THEREFORE, in consideration of the mutual covenants,promises,
obligations and conditions contained herein,and other consideration, the adequacy and
sufficiency of which is hereby acknowledged,the parties hereto agree as follows:
1. PURPOSE
The purpose of this AGREEMENT is to authorize THE HYLAND GROUP to act
as the CLIENT'S national sales representative in the national association,
corporate, government, and related group markets. THE HYLAND GROUP will
represent the CLIENT and endeavor to generate group business for the CLIENT.
THE HYLAND GROUP will direct its national sales representation efforts from
both THE HYLAND GROUP'S Washington,DC (Arlington, Virginia) and
Chicago offices.
2. MARKETING MATERIALS
The CLIENT agrees to supply both offices of THE HYLAND GROUP with an
•
ample supply of convention brochures and video presentations, if available, and
any other relevant sales collateral available, in order to allow THE HYLAND
GROUP to market the CLIENT'S facilities and capabilities.
3. PRODUCTIVITY REPORTS
At the end of each quarter THE HYLAND GROUP shall provide the CLIENT
with a productivity report that shall detail all leads sent to the CLIENT, including
the status of each lead, and an indication as to whether each lead is definite,
pending, or lost.
4. CONFIDENTIALITY
4.1 The Hyland Group Financial Arrangement
The Hyland Group understands and agrees that the CLIENT is subject to the
North Carolina General Statutes pertaining to open records and that the
CLIENT shall comply with all applicable open records laws..
5. REMUNERATION
5.1 Retainer
In addition to all other remuneration payable to THE HYLAND GROUP
under this AGREEMENT,the CLIENT agrees to pay THE HYLAND
GROUP a monthly retainer of$1800 which shall be payable the first week of
each month following the execution of this AGREEMENT. There is also a
one time start up fee equal to the first month's retainer payment of$1800 to
cover start up costs incurred by THE HYLAND GROUP. The CLIENT
agrees to pay THE HYLAND GROUP a pro rata share of the monthly
retainer for all incomplete months that this AGREEMENT is effective.
6. DURATION
This agreement is effective as of April 1, 2009 and shall continue in effect for one
year following the effective date. After the conclusion of the first year the
agreement may be renewed with the mutual written consent of both parties.
7. SALES APPOINTMENTS
The Hyland Group is unable to fill appointments schedules for visiting
salespeople. However, given advance notice we will call accounts with whom we
have active leads for your destination and attempt to secure appointments on your
behalf. We are unable to provide this service during a week that has an industry
trade show/event.
2
8. FAMILIARIZATION TRIPS AND SPECIAL EVENTS
THE HYLAND GROUP will, from time to time,arrange familiarization trips in
which THE HYLAND GROUP visits the CLIENT with potential customers.
THE HYLAND GROUP also will, from time to time, arrange special marketing
events such as receptions and luncheons, etc.
9. MISCELLANEOUS
a. Entire Agreement: This AGREEMENT constitutes the sole and final
agreement of the parties hereto relating to the matters covered herein and
correctly sets forth the rights,duties, and obligations of each to the other. Any
prior agreements,promises,negotiations or representations not expressly set
forth in this AGREEMENT are of no force and effect. Any modification or
amendment hereto shall be of no force and effect unless made in writing and
signed by each of the parties hereto.
b. Waiver: No waiver of any provisions, or of any default or breach or any
provisions of this AGREEMENT shall be deemed to constitute a waiver of
any other provision. Such waiver shall not be construed as a waiver of any
prior or subsequent breach of default.
c. Changes in CLIENT'S Ownership and/or Management: Client is a local
government within the State of North Carolina.
d. Authority: The parties executing this AGREEMENT represent and warrant
that each has full right, power and authority to enter into this AGREEMENT
and that no other person, individual, or entity, need approve this
AGREEMENT to render it effective and binding as intended.
e. Choice of Law and Exclusive Venue: All questions concerning the validity,
interpretation or performance of any of this AGREEMENT'S terms or
provisions or any rights or obligations of the parties hereto shall be governed
by and resolved in accordance with the substantive laws of the
State of North Carolina, including any conflicts of law,rules or principle
that might refer to the substantive law of another jurisdiction.
f. Notice: Any notice given or request made hereunder by either party to the
other shall be in writing and may be affected by registered mail, return
receipt requested, addressed by such part to the other at the addresses here and
above given.
g. Remedies for Breach of this Agreement: Any remedy conferred by any
specific provision of this AGREEMENT shall be cumulative of and in
3
addition to any other remedy now or hereafter existing at law, inequity, by
statute or otherwise. The election of one or more remedies by either party
shall not constitute a waiver of the right to pursue any other available remedy.
h. Construction: In case any one or more of the provisions contained in this
AGREEMENT is for any reason held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any
other provision hereof, and this AGREEMENT shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.
i. Relationship of Parties. THE HYLAND GROUP is an independent
contractor of the CLIENT. THE HYLAND GROUP represents that it has or will
secure,at its own expense,all personnel required in performing the services under
this Agreement. Such personnel shall not be employees of or have any
contractual relationship with the CLIENT. All personnel engaged in work under
this Agreement shall be fully qualified and shall be authorized or permitted under
state and local law to perform such services. It is further agreed by THE
HYLAND GROUP that he shall obey all State and Federal statutes, rules and
regulations which are applicable to provisions of the services called for herein.
Neither THE HYLAND GROUP nor any employee of the THE HYLAND
GROUP shall be deemed an officer, employee or agent of the CLIENT.
j. Insurance Requirements. THE HYLAND GROUP shall obtain, at his sole
expense, all insurance as required by the County's Risk Manager and shall not
commence work until such insurance is in effect and certification thereof has been
received by the County's Risk Manager. Such insurance shall name the County as
Additional Insured under both General Liability and Auto Liability policies.
k. Indemnification. THE HYLAND GROUP agrees to defend, indemnify, and
hold harmless the County, for all loss, liability, claims or expense (including
reasonable attorney's fees) arising from bodily injury, including death or property
damage, to any person or persons caused in whole or in part by the negligence or
misconduct of the THE HYLAND GROUP, except to the extent same are caused
by the negligence or willful misconduct of the CLIENT.
It is the intent of this section to require THE I-IYLAND GROUP to
indemnify the CLIENT to the extent permitted under North Carolina law.
4
IN WITNESS WHEREOF, the parties have executed this AGREEMENT.
THE S AND GROUP
B . / , J 7,- z r=- oI
Peter O.Hylan•, 're sent Date
The Hyland Group
. '1 - - a 9
V erie P. Foushee, C air Board of Commissioners Date
This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal
Control Act.
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