Title
Consider and take action on a resolution authorizing an Addendum to the City’s contract with Bay Area Houston Convention & Visitors Bureau (Director of Communications and Media Relations)
Background:
Approval of this item will authorize the acceptance of the BAHCVB contract amendment.
The organization is restructuring itself towards functioning as regional tourism marketing alliance. The Addendum changes the payments in the existing agreement for 2022 to a flat fee of $45,000 (Projected FY2021 total is $98,587). It also updates the agreement’s Scope of Service for efficient advertising, marketing, and promotion of tourism and conventions for League City.
Bay Area Houston Convention & Visitors Bureau (BAHCVB) is a non-profit destination marketing organization charged with marketing and promotion of tourism for the following Bay Area Houston communities: Kemah, Nassau Bay and Seabrook. In the current agreement, we have a structured hotel occupancy tax payment plan which allocates 15% of the city’s HOT collections each quarter for BAHCVB.
It goes without saying that the pandemic has dramatically affected the tourism market and the travel industry. For the past year and a half, we have continued to adapt and adjust while still carrying out effective regional tourism marketing efforts. As the board worked to streamline and focus resources, a new strategic plan was created which directed structural changes that focus on accomplishing specific marketing initiatives. As the result of our new Strategic Plan, the Scope of Services contained within our current partner agreement also required updating. The organization is restructuring itself to be more of a marketing alliance partnership with tiered programs.
In 2022, annual payments will shift to a flat $45,000 fee per year due no later than March 1 of each year. As cooperative campaigns are implemented, each partner may allocate additional advertising dollars for additional promotional placement and increased exposure. The organization plans to add tourism partners and allow these entities the opportunity to participate in its marketing efforts at tiered levels.
In June 2021, BAHCVB hired Madden Media, a new tourism marketing agency to accomplish the new revamped goals and objectives as a marketing alliance. Much progress has been made with digital marketing efforts in the past few months and the groundwork for new travel campaigns and fall promotions are underway.
Effective, targeted, timely marketing efforts are key for solid travel promotions. BAHCVB is looking forward to continued progress and great results as we move forward with new programs geared to promote our area’s vast culinary, birding, and outdoor recreational offerings.
The addendum put forth by the BAHCVB, if approved, would update the agreement with League City with the following terms:
- No change for calendar year FY2021 4th Quarter Payment that will be invoiced in November 2021 at the 15% HOT revenue rate. (Projected FY2021 total is $98,587)
- For Calendar Year 2022, a $45,000 flat fee will be due on March 1, 2022.
- The City may allocate additional funding using HOT revenue for participation in additional cooperative advertising and media placement opportunities offered through BAHCVB.
- The City will allow BAHCVB Staff the use of office space at 120 Park Ave. League City for general business activities associated with the BAHCVB Marketing Partnership for 1 year with options for a renewal. In exchange for use of office space, the BAHCVB agrees to assist and support the City’s CVB and Communication Department with special events and projects as requested.
- Removal of ATTACHMENT “A” - SCOPE OF SERVICES
- Addition of ATTACHMENT “B” - SCOPE OF SERVICES
The contract, along with other tourism-related activities, will be funded by the Hotel Occupancy Tax.
CONTRACT ORIGINATION: Agreement has been reviewed by the City Attorney’s Office.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Exhibit A - Addendum to Agreement with BAHCVB
4. Resolution 2019-197 - Agreement with BAHCVB
FUNDING
{X} Funds are available from Account #24101800 54010. - VISITOR CENTER
{ } Requires Budget Amendment to transfer from Account #______ to Account #______
{ } NOT APPLICABLE
STRATEGIC PLANNING
{ } Addresses Strategic Planning Critical Success Factor # ______ and Initiative # ______
{X} NOT APPLICABLE