Agenda - 12/11/2008 - 4o - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 11, 2008 Action Agenda Item No. ~ - O SUBJECT: Performance Agreement with Town of Chapel Hill and Visitors Bureau DEPARTMENT: Chapel Hill/Orange County PUBLIC HEARING: (Y/N) No Visitors Bureau ATTACHMENT(S): History of Chapel Hill Grant Funding FY 2008-2009 Performance Agreement Between the Chapel Hill/Orange County Visitors Bureau for Annual Funding Memo from Chapel Hill Town Manager to Town Council Outlining Agreement INFORMATION CONTACT: Laurie Paolicelli 919- 968-2060 PURPOSE: To approve an FY 2008-2009 performance agreement between the Town of Chapel Hill and the Visitors Bureau. BACKGROUND: Senate Bill 622, Chapter 392, of the 1991 Session laws makes provisions for both the Orange County Board of Commissioners and Town of Chapel Hill, by resolution, to levy a room occupancy tax of up to three percent (3%) on any accommodation in the County. The bill states that at least ten (10%) of the annual revenues shall be used to provide funding for visitor information services and to support cultural events. Orange County has used this tax to fund a Visitors Bureau since 1992. In addition, the Visitors Bureau has received an annual grant allocation from the Town of Chapel Hill which has ranged from $67,000 to its current $130,000. The Town of Chapel Hill has allocated $130,000 to the Visitors Bureau for FY 2008- 09. In addition, the town will further grant $20,000 when occupancy tax revenues in Chapel Hill reach $1 million. Contract negotiations with the Visitors Bureau Board and the town of Chapel Hill recently concluded and this is now being brought forward for BOCC approval. FINANCIAL IMPACT: For FY 2008-09 the town of Chapel Hill has allocated $130,000 to the Visitors Bureau. An additional $20,000 will be granted when the town achieves $1 million in occupancy taxes, which the Bureau anticipates occurring in May 2009. RECOMMENDATION(S): The Manager recommends the Board approve this performance agreement between the Town of Chapel Hill and the Visitors Bureau Board and authorize the Manager to sign.