11/27/1978 Meeting - Laserfiche WebLink

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Public hearing was c'losed, there being no further testimony e presented. Ms. Smith was supportive of the Chamber's providing the services, and acknowledged the fine work done in the past. She noted Richard Hansen was a member of the Room Tax Committee (also a member of the Chamber of Commerce Board). The Room Tax Committee had met during this time to review processes, and had put a freeze on all funding. She questioned Mr. Hamilton as to whether or not he was aware of the freeze put on the funds based on the new State contract laws. Mr. Hamilton replied neither he nor any of his staff had been given any such verbal or written communication. He referred to the seri es of events he had detailed in a letter dated May 1978. He also noted the series of delays between the time the proposal was submitted by the Chamber and accepted by the City. However, the Chamber was still operating on the understanding that the contract would be retroactive. Mr. Obie asked Mr. Hamilton if during that period of time the City asked the Chamber to stop performing those services, or if the City has asked the Chamber to continue performing those services on the City's behalf. Mr. Hamilton replied no. In response to a question from Ms. Smith, Ms. Benjamin said there was a great uncertainty in the legal staff's opinion as to whether or not the claim can be legally paid. After extensive research, it was deter- mined the City Council will have to make that decision. However, she noted whether or not it is paid, there is a potential lawsuit either e way. She also noted if the payment were made, the City Councilors themselves could be financially liable for replacing the Room Tax Funds if it were deemed they were paid illegally. Mr. Williams said he had heard no testimony of any communications between the City staff and Chamber of Commerce during that period of time. He felt there should have been some communication between the two pa rti es. Further, he did not believe discussions beyond what had been presented to Council did not take place. However, he said that if not, the Chamber was willfully negligent in that they did not try to find out what was going on. Manager noted between July and October he had two or three phone calls regarding the process from Chamber of Commerce staff persons. He replied the City would be putting out requests for proposals and the Chamber would be bidding as would other groups. The City did receive a bid by November 1 from the Chamber, and there was no complete bid other than that one. From November 1 to January 23 there were extensive discussions with the Chamber to bring its contract into compliance with State law. Mr. Hamilton noted for Council the types of services provided by the Chamber could not be stopped like a faucet. The Chamber felt from the start it should have been exempted from the bidding procedures. He noted 200 conventions had been solicited and needed servicing e 11/27/78--5 ,..,.,