City of Albuquerque
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File #: EC-20-96   
Type: Executive Communication Status: Approved
File created: 6/15/2020 In control: City Council
Final action: 6/29/2020
Enactment date: Enactment #:
Title: Visit Albuquerque Eighth Supplemental Agreement
Attachments: 1. EC-96



INTER-OFFICE MEMORANDUM June 10, 2020

TO: Pat Davis, President, City Council

FROM: Timothy M. Keller, Mayor

SUBJECT: title
Visit Albuquerque Eighth Supplemental Agreement
body

The City of Albuquerque entered into a contract with Visit Albuquerque for destination marketing and group sales and services following a Request for Proposals (RFP) process in 2016. The original agreement allowed for the contract to be extended through 2021.

Given the reduced Lodgers' Tax revenue, diminished prospects for an RFP on the normal timeline, disruption in the business travel and tourism industries, and the economic uncertainty created by the COVID-19 health pandemic, the City has determined that the following substantive changes are necessary in this Eighth Supplemental Agreement:

Adjust Total Contract Amount to Reflect Revenue Uncertainty
The Eighth Supplemental Agreement decreases the total amount available for FY21 to 75% of FY20's Total Available Amount to reflect decreasing Lodgers' Tax revenue. However, it also adds language that allows for the total amount available to increase if revenue exceeds projections. The following table shows the appropriation for FY20 as well as the fiscal years included in the Eighth Supplemental Agreement:

Fiscal Year
Estimated Growth Rate
Lodgers' Tax
Hospitality Fee
Base Contract Amount
Incentive Funding
Total Amount Available
2020
-
$4,622,000
$924,000
$5,546,000
$292,000
$5,838,000
2021
-
$3,467,000
$693,000
$4,160,000
$219,000
$4,379,000
2022
TBD


Extend Term for Two Years
Rather than extending the term of the Agreement for one year (through June 30, 2021), the City has determined it is necessary to extend the term for two years (through June 30, 2022). The intent is to conduct an RFP in 2022 when the destination marketing and group sales industry is more certain.

Create a Task Force to Adjust Key Performance Indicators Throughout the Term
The Original Agreement with Visit Albuquerque makes available incentive pay of 5...

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