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HomeMy WebLinkAboutR-2007-050 Greater Yakima Chamber of Commerce Agreement Amendment (re: Delta Airlines travel bank)RESOLUTION NO. R-2007-50 A RESOLUTION authorizing the City Manager to execute an amendment to the existing Greater Yakima Chamber of Commerce, Inc. Public Sector Professional Services Agreement to provide additional funding, payable from the City of Yakima Contingency Fund, for the purpose of establishing and managing an Airline Travel Bank which is necessary to fulfill contractual obligations with Delta Airlines. WHEREAS, the Yakima Air Terminal (hereinafter YAT) Board and management staff have been working to attract a second air carrier service to provide . airline transportation services to the Yakima Air Terminal and the citizens of the City of Yakima; and WHEREAS, the YAT Board and management efforts have resulted in an offer from Delta Airlines to provide said air transportation services to the City through regularly scheduled flights to and from the YAT; and WHEREAS, in order to fulfill its obligation to Delta Airlines and initiate said air service to the YAT, the YAT must generate an "airline travel bank" in the amount of Five Hundred Thousand Dollars ($500,00.00) in funds dedicated to the purchase of airline tickets for use by the participants as pre -payment of airline tickets that may be used for future airline travel on the Delta Airline flights; and WHEREAS, the Greater Yakima Chamber of Commerce has agreed to assist in the establishment, management and promotion of the "airline travel bank" under terms and conditions set forth in the Amendment To The Greater Yakima Chamber of Commerce, Inc. Public Sector Professional Services Agreement With The City of Yakima, Washington, attached hereto and incorporated herein by this reference; and WHEREAS, the City Council believes that the opportunity to obtain the services of Delta Airlines for the City of Yakima is very important to the future of the City, and offers an opportunity for economic expansion and growth within the entire local area; and WHEREAS, the City Council agrees that an investment in the professional services of the Greater Yakima Chamber of Commerce to organize, promote and establish the required "airline travel bank" is a worthy objective that is in the best interests of the citizens of Yakima, and is willing to authorize an amendment to the existing Professional Services Agreement with the Chamber in order to facilitate the "airline travel bank" process as well as an expenditure of Fifteen Thousand Dollars ($15,000.00) from the City of Yakima Contingency Fund to compensate the Chamber for these additional services; Now, Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: (jc)res/Chamber of Commerce Amendment - Airline Travel Bank 1 The City Manager and City Clerk are hereby authorized and directed to execute the Amendment To The Greater Yakima Chamber of Commerce, Inc. Public Sector Professional Services Agreement With The City of Yakima, Washington, attached hereto and incorporated herein by this reference, together with an expenditure of Fifteen Thousand Dollars ($15,000.00) from the City of Yakima Contingency Fund, in order to facilitate the establishment, promotion and management of the "airline travel bank" which is necessary to fulfill Delta Airlines requirements for providing air transportation services to the City of Yakima. ADOPTED BY THE CITY COUNCIL this 17" day of ATTEST: City Clerk (jc)res/Chamber of Commerce Amendment - Airline Travel Bank 2 ril, 2007. �% David Edler, Mayor /('-0067-.56 AMENDMENT TO THE GREATER YAKIMA CHAMBER OF COMMERCE, INC. PUBLIC SECTOR PROFESSIONAL SERVICES AGREEMENT WITH THE CITY OF YAKIMA, WASHINGTON This AMENDMENT to THE GREATER YAKIMA CHAMBER OF COMMERCE, INC. PUBLIC SECTOR PROFESSIONAL SERVICES AGREEMENT (hereinafter "underlying Agreement") is made and entered into on this ,26,14' day of ,4.€,i 2007, between the City of Yakima, hereinafter referred to as CITY, A Washingt6n municipal corporation, and the Greater Yakima Chamber of Commerce, Inc., hereinafter referred to as CHAMBER, a Washington non-profit corporation. CITY and CHAMBER, for mutual consideration hereinafter set forth, agree to amend the underlying Agreement previously executed by the parities hereto as follows: I. OBJECTIVES The specific purpose for this amendment to the underlying Agreement is to provide the CHAMBER with additional financial assistance necessary to allow the CHAMBER to establish and manage an airline travel bank, thus encouraging and allowing local businesses to invest in the opportunity to attract a new airline service, provided through Delta Airlines, to Yakima. The work envisioned in meeting the specific requirements of this objective are set forth more specifically in the Scope Of Additional Services stated below. II. SCOPE OF ADDITIONAL SERVICES The CHAMBER agrees to perform the additional tasks involved in meeting the amended objective set forth herein as follows: 1. Establish and manage an airline travel bank (hereinafter ATB) as a mechanism to enable local businesses to invest in this new airline service. Management of the ATB shall include; (1) briefing business owners about the program (estimated 15-30 one hour meetings), (2) creating a local depository, (3) managing contracts with the airline, designated travel bank and 100 plus subscribers, (4) management and transfer of dedicated funds and record keeping (estimate FT employee for 5-7 weeks), and (5) developing and delivering presentations to local community groups. ' 2. Managing a local/regional marketing campaign to include; (1) establishment of a marketing fund/account, (2) establishment of volunteer teams, (3) allocation of funds to appropriate media outlets, (4) -co - managing placement of media promotions with a local advertising agency, and (5) other tasks associated with meeting Delta Airline requirements for the establishment of new airline passenger service for our City. (jc)/Amendment-Professional Services Agreement Page 1 3. Administer the above named projects by providing CHAMBER staff (estimated two hundred twelve (212) hours), office space, collateral materials, printing, postage, and technical assistance. III. PAYMENT a. As compensation for these additional services the CITY agrees to pay CHAMBER an additional Fifteen Thousand Dollars ($15,000.00) over and in addition to the funding agreed upon in the underlying Agreement with CHAMBER. The maximum total fees and expenses payable by the CITY to the CHAMBER under this amendment shall not exceed Fifteen Thousand Dollars ($15,000.00), as agreed upon in this amendment. b. No payment shall be made for any work performed by the CHAMBER in accord with this amendment, except for work identified and set forth in Section II, Scope of Work. c. The CHAMBER may, in accord with the Scope of Work set forth herein, submit invoices to the CITY not more often than once per month during the progress of the work identified herein for partial payment of work completed to date. Invoices shall cover the time the CHAMBER performed work for the CITY during the billing period. The CITY shall pay the CHAMBER for services rendered in the month following the actual delivery of the work and will remit payment within thirty (30) days from the date of receipt of billing. d. The CHAMBER shall not be paid for services rendered under this amended Agreement unless and until they have been performed to the satisfaction of the CITY. e. In the event the CHAMBER has failed to perform any substantial obligation to be performed by the CHAMBER under this amended Agreement and such failure has not been cured within ten (10) days following notice from the CITY, then the CITY may, in its sole discretion, upon written notice to the CHAMBER, withhold any and all monies due and payable to the CHAMBER for the services specified herein, without penalty, until such failure to perform is cured or otherwise adjudicated. "Substantial' for purposes of this amended Agreement means faithfully fulfilling the terms of the amended Agreement with variances only for technical or minor omissions or defects. f. Unless otherwise.provided for in this amended Agreement the CHAMBER will not be paid for any billings or invoices presented for payment prior to the execution of the amended Agreement or after its termination. IV. RETAINER Retainer is waived for CITY. V. STANDARD PROVISIONS Cc)/Amendment-Professional Services Agreement Page 2 1. TERM OF CONTRACT The term of this amendment shall begin on the date last executed below, and shall terminate upon completion of all services required hereunder by the CHAMBER unless terminated earlier by the parities in accordance with the specific provisions of the underlying Agreement to which this amendment is a part. 2. ENTIRE AGREEMENT The parties agree that this amendment to the underlying Agreement is subject to all of the specific terms and conditions of the underlying Agreement now in existence between the parties hereto, unless and solely with respect to any specific terms of this amended Agreement that conflict with the terms and conditions of the underlying Agreement, in which case the terms set forth in this amended Agreement shall control the execution of this amended Agreement. The parties further agree that the underlying Agreement, together with the amendments to said Agreement set forth herein, is the complete expression of the terms and conditions of performance by the parties hereto. Any oral or written representations or understandings not incorporated in the underlying Agreement as amended by this Amendment thereto are specifically excluded. VI. AUTHORIZED SIGNATORS Greater Yakima Chamber of Commerce, Inc. Y� Michael P. Morrisette, President, CEO Date: '1- -C.-- o '/ City of Yakima Date: CITY CONTRACT NO: Ark/ -'AC RESOLUTION NO: /Q-R0075/�Q (jc)/Amendment-Professional Services Agreement Page 3 ATTACHMENT A SCHEDULE OF 2006 PROFESSIONAL SERVICE FEES (jc)/Amendment-Professional Services Agreement Page 4 • • • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. i 0 8 For meeting of: April 17, 2007 ITEM TITLE: Consideration of a Resolution authorizing the City Manager to execute an amendment to the existing Greater Yakima Chamber of Commerce, Inc. Public Sector Professional Services Agreement to provide additional funding for the purpose of establishing and managing an Airline Travel Bank which is necessary to fulfill contractual obligations with Delta Airlines. SUBMITTED BY: Cindy Epperson, Finance and Budget Department William R. Cook, Director, Community and Economic Development CONTACT PERSON/TELEPHONE: Cindy Epperson, Financial Services Manager/576-6644 SUMMARY EXPLANATION: Delta Airlines has made an offer to the Yakima Air Terminal (YAT) Board to provide air transportation services to the YAT. In order to initiate Delta Airlines service to Yakima, the YAT must generate a pre -paid "airline travel bank" in the .amount of $500,000 in funds dedicated to the purchase of airline tickets for use by travel bank participants for future travel on Delta Airlines. In order to fulfill this obligation, The Greater Yakima Chamber of Commerce (Chamber) has agreed to assist in the establishment, management and promotion of the airline travel bank, under terms and conditions set forth in the attached amended professional services agreement. The amended agreement will provide the additional financial assistance needed to allow the Chamber to establish and manage an airline travel bank as a mechanism to enable local businesses to invest in this new airline service. As compensation for these additional services, the City agrees to pay the Chamber an additional $15,000 over and in addition to the funding agreed upon in the underlying Agreement with the Chamber. Resolution X Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source General Fund C encv APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMISSION RECOMMENDATION: The Council Community and Economic Development Committee recommended approval of the Resolution at their April 4 meeting. COUNCIL ACTION: