09-10-2019 Work Session AgendaWORK SESSION
RICHFIELD MUNICIPAL CENTER, BARTHOLOMEW ROOM
SEPTEMBER 10, 2019
6:00 PM
Call to order
Open forum (15 minutes maximum)
Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments
are to be an opportunity to address the Council on items on the agenda. Individuals who wish to address the
Council must have registered prior to the meeting.
Review recommendations to update the agreement with the Richfield Tourism and Promotion Board (RTPB).
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9738.
AGENDA SECTION: Work Session Items
AGENDA ITEM # 1.
STAFF REPORT NO.107
WORK SESSION
9/10/2019
REPORT PREPARED BY: Katie Rodriguez, City Manager
DEPARTMENT DIRECTOR REVIEW:
OTHER DEPARTMENT REVIEW:
CITYMANAGER REVIEW: Katie Rodriguez, City Manager
9/5/2019
ITEM FOR WORK SESSION:
Review recommendations to update the agreement with the Richfield Tourism and Promotion Board
(RTPB).
EXECUTIVE SUMMARY:
On June 25, 1990, the City approved an ordinance to levy a 3% tax on gross receipts of lodging from
Richfield Hotels and Motels pursuant to Minnesota Statutes. The resolution also established the Richfield
Tourism and Promotion Board (RTPB). The City then executed an agreement with the RTPB to provide
marketing and promotional services (the Agreement) on July 5, 1990. The current RTPB consists of a
representative of each Richfield hotel (3), a representative of the Richfield Chamber of Commerce and a
newly added citizen representative.
The RTPB used to be housed within the Richfield Chamber of Commerce but separated from the Chamber
several years ago to maintain a focus on tourism. The RTPB contracted with Katy Epler to serve as
Executive Director a year ago and she has been leading some new initiatives to better promote Richfield and
expand our tourism. One example is partnering with the University of Minnesota's Office of Tourism for a year
long Tourism Assessment. Richfield has also increased its profile in the last few years which is an additional
opportunity for RTPB to lead a robust and effective promotion and tourism program. Updating and
strengthening our agreement with RTPB will build on these positive developments.
In preparation staff surveyed several other convention and tourism boards (CVBs) on their
governance structure, agreement with their city and best practices. Based on that research, we
found that there are some inconsistencies with RTPB's current governance and practices compared
with the surveyed CVBs:
• The surveyed CVBs have 2 city representatives (Edina has one representative from the city and one
from the school district). RTPB has no city representation on the governing board, but staff do
regularly attend meetings.
• The surveyed CVBs provide for more citizen representatives and more representatives from the
general business community. The current RTPB only has one each.
• The surveyed CVBs do not directly reimburse hotels for expenses with minor exceptions.
• Some of the surveyed CVB agreements have a regular review or expiration dates, more specific scope
of services and reporting requirements.
DIRECTION NEEDED:
Consider the following staff recommendations to strengthen our Agreement with RTPB and make it
consistent with best practices:
• Incorporate a review period or expiration date, like every 4 years, to ensure that the agreement
is regularly reviewed and updated.
• Include a specific scope of services, including goals and progress indicators.
• Development of an annual work plan and budget with the city liaison/representative including
financial and performance reporting requirements.
• Expand the RTPB board to include city representation, including a staff liaison and council
member, additional citizen and general business representation. The city would recruit citizens
through their regular annual process and retain the current practice of appointing all RTPB
members.
• Maintain staggered terms (the RTPB bylaws do require staggered terms but it is not being
implemented consistently).
BACKGROUND INFORMATION:
A. HISTORICAL CONTEXT
Included in the Executive Summary.
B. POLICIES (resolutions, ordinances, regulations, statutes. etcy
The City of Richfield has levied a 3% tax on the gross receipts of lodging from hotels and motels in the
City pursuant to Minnesota Statute Section 469.190 which authorizes the proceeds of the tax to fund a
Tourism Promotion Board for the purpose of marketing and promoting the City as a tourist or convention
center. The City has an Agreement with the Richfield Tourism and Promotion Board, Inc., dated July 5,
1990, to provide marketing and promotional services permissible under Minnesota Statute Section
469.190.
C. CRITICAL TIMING ISSUES:
With Council guidance, staff can work with RTPB to incorporate the changes into the Agreement with
RTPB. Under the current Agreement, either party can terminate the Agreement on January 1, with 90
days notice without cause or terminate with cause at any time with 10 days notice. While the goal is to
update the Agreement for 2020, it is more important to take the time to structure an Agreement that
incorporates best practices and allows RTPB to create a successful tourism program.
D. FINANCIAL IMPACT:
The City's hotel/motel lodging tax totaled approximately $247,000 in 2017 and $251,000 in 2018. The
RTPB had $351,000 in net assets at 2018 FYE.
E. LEGAL CONSIDERATION:
Staff will continue to work with our City Attorney to update the Agreement with RTPB.
ALTERNATIVE(S):
The Council can make alternate recommendations to update the Agreement with RTPB or choose to not
update the Agreement.
PRINCIPAL PARTIES EXPECTED AT MEETING:
Gordon Vizecky, President of RTPB, and Katy Epler, Executive Director of RTPB