REPORT TO THE CITY COUNCIL December 10, 2015 FROM: BRUCE RUDD, City Manager SUBJECT ..Title Approve First Amendment to Sales Manager Position Agreement between the City of Fresno ("City"), the Fresno/Clovis Convention & Visitors Bureau ("FCCVB"), and SMG ("SMG"). ..Body RECOMMENDATION Staff recommends City Council approve the First Amendment to the Sales Manager Position Agreement between the City of Fresno, the Fresno/Clovis Convention & Visitors Bureau, and SMG extending the term for two additional years. EXECUTIVE SUMMARY The City, FCCVB and SMG ("Parties") entered into an Agreement, dated July 1, 2014, for the funding of a Sales Manager position, working as an employee of FCCVB, to increase bookings and generate hotel room rentals from city-wide conventions/events utilizing Fresno Convention & Entertainment Center ("FCEC") facilities. The original term of the Agreement expired on June 30, 2015 and the Parties now desire to extend the term of the Agreement by two years, covering Fiscal Years 2015-16 and 2016-17. It should be noted that while the Agreement was approved on June 30, 2015, the individual responsible for generating additional conventions was not hired until December, 2015. The City has appropriated $100,000 in the Convention Center budget to fund the position for Fiscal Year 2015-16; and the Fiscal Year 2016-17 extension will remain subject to the City appropriating funds for that year. BACKGROUND In July 2014, the City, the FCCVB and SMG entered into an agreement for the funding of a Sales Manager position, working as an employee of the FCCVB, to increase bookings and generate hotel room rentals from city-wide conventions/events utilizing Fresno Convention & Entertainment Center (FCEC) facilities. In December of 2015, the position and work to begin generating additional convention business was implemented. Since that time the FCEC has booked nine new Conventions/Events for an estimated Economic Impact of $871,015 and 4,458 room nights. There are currently another 6,270 projected room nights in active leads with an estimated economic impact of $1,433,539 (see attached Convention Sales Manager Report). Per its original terms, the Agreement may be extended for up to two years. Therefore, it is the recommended that Council approve the extension to continue to fund this position in order to increase the number of conventions, which in turn, generates additional Transient Occupancy Tax as well as the all the secondary economic impacts associated with these kind of events. ENVIRONMENTAL FINDINGS N/A LOCAL PREFERENCE N/A FISCAL IMPACT The City has already appropriated $100,000 in the Convention Center budget to fund the position for Fiscal Year 2015-16; and the Fiscal Year 2016-17 extension remains subject to the City appropriating funds for that year. Attachments: First Amendment to Agreement Convention Sales Manager 2015 Production Report