Finance Committee (Meets 4th Tuesday of each month at 4:30 p.m.)

August 23, 2021 To: Councilor – Jack Sweeney (Chair) Councilor – Keith Kern Councilor – Tylor Elm (Co‐chair) Councilor – Brent Fennessey (Alt) From: Deb Kamunen – Assistant Finance Director Finance Committee Mission Statement: To have broad oversight of financial policies and procedures, and to provide the City Council and management with such financial expertise, opinion, and recommendations as will be helpful for the Council to make decisions regarding the financial stability of the City of Superior. **** SPECIAL FINANCE COMMITTEE MEETING AGENDA **** A Special Finance Committee meeting is scheduled for Tuesday, August 24, 2021 at 4:30 p.m. in Room 204 of the Government Center. The public may also access this meeting online with Google Meet by pressing CTRL + click to follow the link or copying and pasting the address into a web browser: Join with Google Meet Meeting ID meet.google.com/jpx-sfra-xsx Phone Numbers (US)+1 617-675-4444 PIN: 689 938 963 3808# The following items will be discussed at the Special Finance Committee Meeting: 1. Review and discussion of proposed revisions to the Hotel-Motel Room Tax Ordinances, Section 74- 62 and Section 74-68 related to the Tourism Development Fund/Tourism Commission. 2. Review and approve drafts of a Request for Proposal (RFP) for Tourism Marketing Services. If you are unable to attend this meeting, please contact Deb Kamunen at 715‐395‐7293. Cc: Mayor Jim Paine KDAL Radio Taylor Pedersen City Council Members WDSM Radio Peter Luke City Clerk’s Office WEBC Radio Kyle Hawley Bulletin Board Duluth News Tribune Department Heads Superior Telegram Notice is hereby given that a quorum of the City Council may be present. No action will be taken other than the items listed on this agenda. ********************************************************************************************************************* Pursuant to the Americans with Disabilities Act of 1990, if you are in need of an accommodation to participate in the public meeting process, please contact the City Clerk’s Office at (715) 395-7200 prior to the scheduled meeting. The City will attempt to accommodate any request depending on the amount of notice received. TDD (715) 395-7521. ********************************************************************************************************************* In compliance with Wisconsin Open Meetings Law, this agenda was: Posted: Government Center, Court House, Public Library Faxed to: Daily Telegram, Public Library, August 23, 2021 Media notified and mailing list: August 23, 2021 Superior Telegram to sign and fax verification of receipt to fax number (715‐395‐7292) __________________________________________________________ Name Date Original Language: Sec. 74‐62 (b) Commencing on January 1, 2017, 70 percent of the room tax applicable to all motels and hotels and like accommodations shall be distributed to a designated tourism entity to be used for the purposes of tourism promotion and development. The funds are to be allocated according to an agreement between the City of Superior and the designated tourism entity. Proposed Language: (b) Commencing on January 1, 2022, 70 percent of the room tax applicable to all motels and hotels and like accommodations shall be distributed to a designated tourism commission to be used for the purposes of tourism promotion and development. Original Language Sec. 74‐68. – Superior Tourism Development Fund Committee. (a) Committee created. There is created a tourism development fund committee. This committee shall direct the application of hotel/motel tax it receives from the tourism entity. (b) Membership. The committee membership shall consist of six members, subject to council approval. One such member who shall be the president of the Chamber of Commerce or his/her designee, one who shall be the executive director of the Superior/Douglas County Development Association or his/her designee, two who shall be members of the common council and two who shall be citizens of Superior, Wisconsin, appointed by the mayor, for a term of two years. (c) Meetings. The Committee shall meet a minimum of four times per year (on a quarterly basis). The committee may meet at other times as deemed necessary by the committee. A quorum required to conduct business shall be a majority of current committee members present at all TDF committee meetings. (d) Reporting obligation. The committee shall file, at the end of each quarter, meeting minutes and a financial statement including a balance sheet and income statement, with the city’s director of finance. (e) Funds must be spent or encumbered within 12 months from the time of deposit into the fund. Proposed Language Sec. 74‐68. – Superior Tourism Development Commission. (a) Commission created. There is created a tourism development commission. This commission shall direct the application of hotel/motel tax it receives from the city. The commission shall use the room tax revenue that it receives from the city for tourism promotion and tourism development in the City of Superior. (b) Membership. The commission membership shall consist of six members appointed by the Mayor subject to council approval. One such member who shall represent the Superior hotel and motel industry. The Council President may recommend two members of the common council for appointment. All members shall serve for a one‐year term, at the pleasure of the appointing official, and may be reappointed. The commission shall elect from among its members a chairperson, vice chairperson and secretary. (c) Meetings. The commission shall meet a minimum of four times per year (on a quarterly basis). The commission may meet at other times as deemed necessary by the commission. A quorum required to conduct business shall be a majority of current commission members present at all Tourism Development Commission meetings. (d) Reporting obligation. The commission shall file, at the end of each quarter, meeting minutes and a financial statement including a balance sheet and income statement, with the city’s director of finance.  Request for Proposal - 2021 Tourism Marketing Services CITY OF SUPERIOR, WISCONSIN Ashley Puetz Finance Director RFQ #21-26-FIN  TABLE OF CONTENTS 1. Advertisement for Proposals................................................................................................... 3 2. Schedule of Activities ................................................................................................................... 4 3. Information for Prospective Service Consultant.......................................................... 5 4. Statement of Qualifications Requirements ...................................................................... 7 5. Scope of Services ............................................................................................................................. 9 5.1 Background ........................................................................................................................................ 9 5.2 Scope ................................................................................................................................................... 10 5.3 Key Areas of Focus ....................................................................................................................... 12 6. Evaluation......................................................................................................................................... 13 7. Subcontractors Listing ............................................................................................................... 14 Tourism Marketing Services 2  1. Advertisement for Proposals Request for Statement of Proposal (RFP) City of Superior, Wisconsin for Tourism Marketing Services Proposals will be received by the City of Superior, at 1316 North 14th Street, 2nd floor, ATTN: Contract Analyst, Superior, WI 54880. Proposals will be evaluated by City staff. Proposals Due: Proposal Due Date: Tuesday, September 21, 2021 at 2:00 PM Description: The City of Superior, Wisconsin is seeking a tourism marketing and development organization to direct and carry out a destination marketing program for the City. The successful consultant must demonstrate extensive knowledge and understanding of how to create and implement a comprehensive marketing program strategy to fulfill the objectives of the City. The selected organization will manage and direct the expenditure of a part of the tax revenues generated through the City’s tourism tax as per Wisconsin State Statute 66.0615. All proposals must be prepared on the form provided and submitted in accordance to the Instructions to Consultant/Firm. The RFP may be obtained through the Internet at DemandStar.com via the City of Superior’s web page. RFP may be viewed at the City of Superior, Government Center, 2nd Floor, 1316 North 14th Street, Superior, Wisconsin (darwinj@ci.superior.wi.us). The City of Superior encourages the participation of minority, women-owned and disadvantaged business enterprises. The City of Superior reserves the right to reject any or all proposals, to waive irregularities, or to accept such proposals, as in the opinion of the City, will be in its best interests. Ashley Puetz Finance Director Daily Telegram: Friday, August 20, 2021, Friday, August 27, 2021 Tourism Marketing Services 3  2. Schedule of Activities Subject: Tourism Marketing Services RFP#: 21-26-FIN Due Date: September 21, 2021 Time Due: 2:00 PM DATE EVENT August 20, 2021 RFP Released August 20 and 27, 2021 Publication Dates Tuesday, September 7, 2021 Pre-Proposal meeting – virtual Friday, September 10, 2021 Deadline for Questions – 11:00 AM Tuesday, September 14, 2021 Final Addendum Issued Tuesday, September 21, Sealed Proposals Due: 2:00 PM 2021 Weeks of September 27 and Potential Interview(s) for selected finalists October 4, October 11 December 7, 2021 Recommendation to council for award Tourism Marketing Services 4  3. Information for Prospective Service Consultant 3.1 Proposals will be accepted until 2:00 PM on Tuesday, September 21, 2021. Any proposals received after this time may not be considered. The proposal packet shall be placed in an envelope and shall be sealed. On the envelope shall be plainly written: the date of the opening, the title of the project and the name of the proposer and delivered or shipped to the address indicated in this RFP. Respondent shall submit one (1) unbound original and one PDF digital version on a thumb drive of qualifications. 3.2 This is a qualifications based selection. The Proposal, Statement of Qualifications, Qualifications Reference Form, Qualification Evaluation Checklist, reference checks, and interviews (at the option of the City) will be used to identify the most competitive firm(s). The City reserves the right to identify competitive firm(s), as in its opinion, will be in its best interests. 3.3 The City of Superior and its designees will review the proposals and select the most highly qualified firm(s) to contact for further screening as it deems appropriate. 3.4 The consultant shall submit a list of their subcontractors as a part of their proposal, which list shall not be added to nor altered without the written consent of the City of Superior, and as specified in 66.0901 Wisconsin Statutes. 3.5 The RFP details scope, terms, and conditions. The City reserves the right to amend the RFP and will provide a written amendment to all known parties receiving the request. Respondents shall acknowledge all addenda received. 3.6 Firms not returning the completed RFP within the specified time frame may be disqualified. Irregularities in the completed RFP documents may be considered sufficient cause for disqualification. 3.7 Subsequent to the RFP deadline, the Finance Director will prepare a recommendation as to which proposal to award, if any. The recommendation of the Finance Director will be subject to the approval of the Superior Common Council. 3.8 RFP information is prepared and submitted at the sole cost and expense of the respondent, and shall become the property of the City of Superior; proposal documents will not be returned. 3.9 Trade secrets and confidential information contained in a RFP are not open to public inspection. Proposers who include information in a RFP that is legally protected as a trade secret or confidential information must clearly indicate the specific protected information by marking that information “Trade Secret” or “Confidential” at the appropriate place. The City will not be responsible for any public disclosure of the trade secret or confidential information if it is not marked as provided above. A response to RFP in its entirety is not confidential. If a request is made under the Wisconsin Public Records Law Wis Stat. §§ 19.31-19.39 to inspect information designated as trade secret or confidential in a Proposal, the Proposer shall, upon request, immediately furnish sufficient written reasoning as to Tourism Marketing Services 5  why the information should be protected from disclosure in order for the City Attorney to present the matter to the Attorney General of Wisconsin for final determination. 3.10 During this RFP process, Proposer shall not contact any City Staff except those designated in the text of this RFP or subsequent addendums or correspondence. Questions should be addressed in writing to the Contract Analyst, via mail, e- mail: darwinj@ci.superior.wi.us prior to Friday, September 10, 2021. Please reference RFP #21-26-FIN and line number being referenced. Non-compliance with this provision may result in rejection of the Proposal. 3.11 Proposals may be amended and/or withdrawn prior to the proposal opening time. Proposals may not be withdrawn for a period of ninety (90) days after the submission deadline. 3.12 Respondents will indemnify the City of Superior from any and all debts, claims, and liabilities arising out of the proposal or the performance of the project as a result of the consultant’s error, omissions, neglect, etc. 3.13 The City reserves the right to negotiate with respondents on the scope of the project, fees, timelines, and all other components of the project, whether or not the proposal was deemed the lowest cost to the City. 3.14 Firms may not subcontract any work without prior written authorization by the City of Superior Finance Department. 3.15 This shall in no way bind or prevent the Finance Department from performing, requesting quotes or proposals, bidding, or contracting any services separately. 3.16 The Consultant will be required to sign a standard City Service Agreement and provide proof of insurance for errors and omissions, property damage, public liability and workman’s compensation. Tourism Marketing Services 6 4. Statement of Qualifications Requirements Respondent shall submit one (1) unbound original and one (1) PDF digital version on a thumb drive of qualifications documents. 4.1 State the name, address, and a company profile, including size and company technical capabilities which are applicable to these services. 4.2 Provide company financials from the year 2015 which demonstrate that 51% of the company’s expenditures were dedicated to “tourism promotion and development” in that year. 4.3 Provide a consultant project organizational chart with specific names for key positions. Provide resumes or bios for key positions, including any subcontractors. Include owners’ bios, locations, years in operation, areas of core competency, and additional information you deem relevant to the selection process. . 4.4 Describe your experience and include relevant examples of work completed that demonstrates the ability to perform the services listed in this RFP. If you do not have experience in all disciplines, please include information regarding all of those that apply. 4.5 Provide a statement regarding why your company is best positioned to provide tourism marketing services to the City. Describe what differentiates your company. 4.6 List of tourism-related clients in the past 1 – 5 years. 4.7 Client references. 4.8 Firms must demonstrate ability to be creative, strategically plan, integrate, manage and execute an assortment of marketing projects directly related to destination marketing through relevant experience and examples. 4.9 Proposals should include strategies and tactics that reach target markets necessary to attract visitors to Superior including leisure and business travelers. 4.10 Proposals should address all destination marketing disciplines including: advertising, public relations, group/travel trade sales, corporate partnerships and promotions, direct marketing and fulfillment, and tourism development. 4.11 Proposals submitted will include experience examples, as well as strategies and tactics for Superior. Both qualitative and quantitative research must be presented to support strategies and tactics of proposed plans and document success marketing. Submissions will also include a list of measurement criteria that respondent will use to judge the success of the campaign. Submissions will also address strategies and tactics to develop and promote new programs, new marketing segments, and the extension and expansion of the tourist season. Tourism Marketing Services 7 4.12 There is no specified limit to the amount of material submitted in response to 4.1 through 4.11, however portions of submittals not clearly referencing the respective section may not be considered in the evaluation of the firm. Tourism Marketing Services 8 5. Scope of Services 5.1 Background The City of Superior is located in Northwestern Wisconsin in Douglas County. Superior is located on one of the most popular tourist routes in the Midwest and embraces the westernmost tip of Lake Superior. Approximately 27,257 people currently call Superior home. Superior offers residents a combination of rugged natural beauty, quality education, and business opportunities. Our economy is balanced by technology companies, petroleum and heavy industry, higher education, retail, and tourism. In addition to prime existing space, we have available land ready for development along high-traffic corridors. The Superior Municipal Forest, located within Superior city limits, is the third largest municipal forest in the nation. The forest is 4,400 acres and includes summer and winter recreational activities and trails. Education is a key component to Superior’s community. The University of Wisconsin – Superior (UWS) and the Wisconsin Indianhead Technical College – Superior (WITC) have approximately 8,000 students. UWS is ranked in the U.S. News and World Report’s “Top Public Schools – Regional Colleges Midwest” list. Forty-six countries are represented in the UWS student body. WITC is accredited by and a member of the Higher Learning Commission. Ninety-three percent of WITC students are employed within six months of graduating. Some of the largest employers in Superior include: University of Wisconsin-Superior, School District of Superior, Essentia Health St. Mary’s, BNSF Railroad, Halvor Lines, Walmart Supercenter, Douglas County, and AMSOIL, Inc. The City of Superior is also an international transportation hub served by interstate highways, railroads, oceangoing ships, and an international airport. Superior’s transportation network is the lifeblood of its economy. Movement of products through the region is essential to the manufacturing, mining, forest products, and service industries. Superior produces many large products and an elaborate network of highways, the ports, and four Class 1 railways work to make sure these items are shipped efficiently. Superior is proactive about developing its trail system and maintaining access to local water sources. Downtown development provides opportunities for residents and visitors to enjoy all that Superior has to offer. The City of Superior invests public funds into tourism promotion and marketing, as required by legislation for the collection and distribution of tourism taxes. The current room tax is 7.5% of gross receipts from retail furnishing of rooms or lodging Tourism Marketing Services 9 for hotels and motels. Per legislation, Wisconsin State Statute 66.0615, the City may retain no more than 30% of these total taxes and must forward the remaining 70% balance to a tourism entity or to a Tourism Commission which will engage in tourism promotion and development Currently, of the 70% forwarded to the tourism entity, 66.8% is retained by the tourism entity; 23.7% is then sent to the Bong P-38 Fund, Inc.; and 9.5% is sent to the Tourism Development Fund. Recent year summary of the 70% forwarded to the tourism entity: 2017 $467,831.58 2018 $586,791.56 2019 $605,154.02 2020 $464,473.43 2021 Q1 –Q2 $290,099.34 Please note that Q1 and Q2 2021 are tracking greater than Q1 and Q2 of 2019. The City has worked with one tourism entity, Superior-Douglas County Visitor Bureau, Inc. This current agreement is expiring December 31, 2021. The marketing contract as a result of this RFP process has a three year term beginning January 1, 2022 through December 31, 2025, with options to renew the contract. This is the first year that the City is choosing a public RFP for the allocation and investment of this portion of public funds. 5.2 Scope Please include in your response, your experience, relevant examples of your work and your strategies and tactics for Superior in each of the following marketing disciplines: 5.2.1 Comprehensive Marketing Planning Develop comprehensive annual marketing, advertising, and communications plans complete with recommended key performance indicators and other metrics that track the engagement of target audiences and accurately measures the return on the City’s financial investment in all marketing-related activities. 5.2.2 Target Audience Mapping Develop expanded target audience profiles including demographics, psychographics, personas, and media habits. Recommend new target audiences for the City to consider. Tourism Marketing Services 10  5.2.3 Creative Campaign Development Develop modern and alluring creative campaign assets to increase target audience engagement across traditional, digital, and social media channels. 5.2.4 Website Development Assist with design, development, and maintenance of a tourism website for the City. Provide samples of content that includes the promotion of local events, businesses, resources and other useful information for visitors. 5.2.5 Video and Photography Assist with the development of visually compelling video and photo assets featuring Superior’s diversity in population, neighborhoods, and attractions. Assets created will be used on the City’s tourism website and across all tourism marketing campaign channels and platforms. 5.2.6 Earned media Describe media outlets in target communities and develop a strategy for promoting Superior through free/earned local, regional, and national media appearances. 5.2.7 Social Media Plan social media content development, posting, community management, campaign metrics, and reporting. 5.2.8 Art, Culture, and Historic Features Create a comprehensive plan to capture and market the unique art, culture, and historic features of Superior. Identify key cultural assets within Superior, especially museums. Create a plan to promote these assets and organizations. Assist with development of cultural assets including direct investment and fundraising. 5.2.9 Events Develop a comprehensive marketing strategy to increase the visibility of events and City event venues. 5.2.10 Data, Analytics, and Reporting Assist with capturing data from multiple sources, including advertising platforms, public relations efforts, social media, events, and other resources. Identify key data points, monitor success in real- time, and prepare performance reports monthly or as requested. Tourism Marketing Services 11 5.3 Key Areas of Focus Please include in your response, your experience, relevant examples of your work and your strategies and tactics for Superior that you would implement in each of the following areas of focus. 5.3.1 Expand Superior’s place in the Lake Superior area tourism industry: The City’s goal is to become a preferred travel location for current visitors and gain measurable market share by attracting new audiences. 5.3.2 Blend social and natural asset: Market events, activities, and businesses alongside Superior’s incredible natural assets to create both a place for people to come together in the city and to get out and experience nature. 5.3.3 Highlight Native art, culture, and history: The city has a rich cultural history that should be fully told and celebrated. Work with local native nations to ensure accurate representation. Work with private business and local government to feature native art, symbols, and language in ways that capture attention and create community identity. 5.3.4 Exploit proximity to Duluth: Duluth, MN is a larger city with a well-developed tourism industry and reputation. The City of Superior hopes to attract Duluth’s residents and visitors for both quick visits and future stays. Strategize methods of partnering with and participating in large events in Duluth that draw significant visitors to the Twin Ports. 5.3.5 Showcase free or low‐cost entertainment and experiences: Family-friendly, free and low-cost opportunities should be promoted alongside more traditional experiences so Superior is not perceived as an expensive destination for only limited purposes. 5.3.6 KPI: Develop comprehensive key performance indicators that measure quality of experiences of any duration, including day trips, not just quantity of visitors or revenue generated, in a timely manner, of the successes and failures of the marketing program and corrective action measures to address failures or intensify successes. Tourism Marketing Services 12  5.3.7 Marketing Plan: Develop a strategic consumer marketing plan in coordination with other economic development efforts that includes identification of target markets; specific strategies with measurable objectives for each target market; and tactics to achieve those objectives. 5.3.8 Marketing Mediums: Analyze and recommend specific marketing mediums to include, but not limited to, print design, website content, billboards, videos, photos, etc. Monitor placement to ensure accuracy and completion of all media schedules. 5.3.9 Maximize Funds: Develop strategies that maximize funds to establish an on-going marketing program. Program should identify potential marketing and advertising partners to develop tactics for utilizing free advertising, sponsorships, media partnerships and generating new funding opportunities and leverage for the City funds to extend a comprehensive marketing program. 5.3.10 Account Management & Reporting Post Award: Meet with City of Superior as needed for the purposes of carrying out initiatives and attend all monthly assigned meetings to present status reports. Prepare cost schedules and project sheets for advertising expenditures and other related costs. Proved monthly status reports. 6. Evaluation Proposals shall be evaluated by the City of Superior and any others deemed appropriate by the City. The criteria to evaluate a firm’s proposal will include: 1. Background information 2. Personnel and staffing 3. Professional marketing experience related to the scope items 4. Relevant tourism marketing experience 5. Actual or potential conflicts of interest 6. Marketing plan for the City of Superior as outlined that can be implemented with the stated budget. City reserves the right to include any other items that is deemed appropriate at the time of evaluation. Tourism Marketing Services 13 7. Subcontractors Listing (Must be submitted with qualifications.) Tourism Marketing Services The undersigned agrees to employ the following listed subcontractors for the following enumerated classes of work and not to alter or add to such list without the written consent of the City of Superior, WI. Use separate sheet as necessary. SUBCONTRACTOR CLASS OF WORK 1) 2) 3) 4) 5) Submitted by: COMPANY ADDRESS COMPANY REPRESENTATIVE Tourism Marketing Services 14 Tourism Marketing Services 15