HomeMy WebLinkAbout7.C. Convention and Visitors Bureau Presentation/Agreement AmendmentTO:
FROM:
SUBJECT:
DATE:
CITY OF SHAKOPEE
Memorandum
Mayor and City Council
Mark McNeill, City Administrator
CVB Presentation/Agreement Amendment
December 7, 2010
Comment:
Introduction:
At its December 7 meeting, the Council will hear a presentation from Shakopee
Chamber of Commerce President Angela Whitcomb about the budget and activities of the
Shakopee Convention Visitors Bureau (CVB).
In addition, the Council is asked to modify a section of the Agreement with the CVB
regarding the schedule for budget submission.
Background:
In 1986, the City and Shakopee Chamber entered into an agreement to establish a lodging
tax, which has since been used to promote the Shakopee as a tourist and convention
center. A Tourist and Convention Bureau (now CVB) was established at that time.
Participating motels in Shakopee (and some selected motels in other jurisdictions which
have joined by choice), levy a lodging tax on their guests. The City retains 5% of the tax
for administrating the program, and forwards the remainder to the CVB for marketing
and promoting Shakopee.
Earlier this year, Angela Whitcomb was appointed as Chamber of Commerce President.
This will be her first presentation to the City regarding the status of the CVB activities
and budget. Her presentation will be made at the December 7 meeting.
Agreement Modification:
It should be noted that the 1986 agreement called for the CVB to submit a program
budget to the City Council by August 1st of each year. This has typically occurred by that
date in the past, as the Chamber's annual budget cycle is later than that of the City.
Because the lodging tax is a "pass through ", it has no impact on the City's budget.
Therefore, there is no need for the City to receive the CVB budget by August 1
So as to address this, our recommendation is to approve an addendum to the agreement,
which would call for the City to receive the adopted CVB budget for the following year
by each December 1
Recommendation:
I recommend that the Council hear the presentation of the CVB budget and activities, and
further to amend the agreement to allow for the December 1 receipt of the annual CVB
budget.
7 G,
Relationship to Visioning:
This supports Goal D, "Maintain, Improve, and Create Strong Partnerships with other
Private and Public Sector Entities ".
Action Required:
After the Council hears the presentation by the Convention Visitors Bureau, it should, by
motion, approve Addendum No. 2 to the Agreement of November 4, 1986, providing for
a date change of the CVB budget submittal.
Mark McNeill
City Administrator
Addendum No. 2 to the Agreement of November 4, 1986
By and Between the City of Shakopee, Minnesota, and
The Shakopee, Minnesota, Area Chamber of Commerce
WHEREAS, an agreement between the City of Shakopee, Minnesota, a
municipal corporation, and the Shakopee Area Chamber of Commerce, a
501 C. 6 organization, was entered into on November 4, 1986; and,
WHEREAS, said agreement provided for the establishment of a
Convention Visitors Bureau with funding to come from a lodging tax;
and,
WHEREAS, said 1 986 agreement specified that "...The Chamber
shall submit a program budget to the Shakopee City Council during
1986. In subsequent years, the program budget shall be submitted by
August 1 " (Section 3.d); and
WHEREAS, it is not necessary, nor feasible, for the City to receive
the Convention Visitors Bureau's budget by August 1" of each year.
NOW, THEREFORE, IT IS AGREED THAT the Shakopee City Council
shall receive the annual budget for the Convention and Visitors Bureau for the
upcoming year by by December 1" of each year.
City of Shakopee
John J. Schmitt, Mayor Date
Mark McNeill, City Administrator
Attest: Judith S. Cox, City Clerk
Shakopee Area Chamber of Commerce
Board Chair
President
Date
Date
Date
Date
30,000.00
25,000.00 1'
20,000.00
15,000.00
10,000.00
5,000.00
Lodging Tax Comparisons Year over Year
** Additional Hotel opened in April 2010
CVB Expenses --2010
Operating Expenses
_! Marketing Costs
Wages/ Salaries/ Benefits
50%
Budgeted CVB Expenses 2011
23%
27%
Operating Expenses
Marketing Costs
Wages /Salaries/ Benefits
2010 & 2011 Marketing Plan Comparison
2010 Marketing $
Metro Tourism Co -op
USA Weekend vacation guide
MN Getaways Direct Marketing (2)
Parade VacationFun guide
CAA Magazine
Media USA (Americlnn)
Tradeshows /Conferences
Memberships (Tourism)
2010 Visitor Guide Printing/Shipping
2010 Visitor Guide Creative Services
*EMT Minnesota Travel Guide
*VG displayed at MOA
VG displayed at Burnsville Mall
$8,500.00
$5,485.00
$5,140.00
$6,397.00
$1,195.00
$550.00
$ 0.00
$0.00
$16,520.74
$2,340.00
$0.00
$0.00
EMT Grant Reimbursement for 2010
*denotes advertising that was not executed in 2010
Paid
$46,127.74
$6,496.80
2011 Marketing S
Projected EMT Grant Reimbursement for 2011
Cost
Metro Tourism Partnership
Mpls South Partnership
MN Getaways Direct Marketing (2)
TwinCities.com (email blasts /web ads)
Forum Communications (e -mail blasts /web ads
AAA Living magazine (IA)
Tradeshows /Conferences
Memberships (Tourism Associations)
2011 Estimated Visitor Guide Printing/Shipping
2011 Visitor Guide Creative Services /Writing
EMT Website (listings, photos, editorial)
VG displayed at MOA
Website development / mobile site
Coupon sheet production /printing
$7,500.00
$12,500.00
$5,216.25
$9,200.00
$6,800.00
$3,046.40
$3,500.00
$2,000.00
$10,000.00
$3,100.00
$300.00
$425.00
$3,000.00
$1,200.00
$67,787.65
$8,950.56