STAFF REPORT

March 2, 2000

To: Economic Development and Parks Committee

From: Joe Halstead, Commissioner Economic Development, Culture and Tourism

Subject: Tourism Partnership Agreement with Tourism Toronto

All Wards

Purpose:

This report presents the draft terms and conditions of a Tourism Partnership Agreement under which the City will provide funding to Tourism Toronto.

Financial Implications and Impact Statement:

There are no financial implications resulting from the adoption of this report.

Recommendations:

It is recommended that:

(1) authority be granted to enter into a Tourism Partnership Agreement with Tourism Toronto in accordance with the draft terms and conditions attached as "Appendix A" to this report and in a manner satisfactory to the City Solicitor and;

(2) the appropriate City of Toronto officials be authorized to take the necessary action to give effect thereto.

Background:

The Council of the City of Toronto by its adoption of Clause No. 1 of Report No. 8, as amended, of the Strategic Policies and Priorities Committee on April 26, 27, 28, 1999, directed the Commissioner of Economic Development, Culture and Tourism to negotiate a funding agreement with Tourism Toronto, in consultation with the City Solicitor and the Chief Financial Officer and Treasurer.

Comments:

In the 1999 budget process the Tourism Toronto grant was transferred to the Economic Development, Culture and Tourism grants budget. The terms and conditions outlined in the Tourism Partnership Agreement contained in this report will formalize the relationship between the department and Tourism Toronto, and more clearly define the City's expectations concerning service delivery, performance measures and accountability principles.

This agreement has been reviewed by Tourism Toronto's Finance Committee and is being recommended for approval at its meeting of the Board of Directors on March 30, 2000. The city Solicitor has reviewed a copy of the agreement.

Structure and Role of Tourism Toronto:

Tourism Toronto was formed in 1926 as a not-for-profit co-operative marketing and visitor services organization. Its membership is comprised of some 1000 firms and organizations that have a significant stake in the continuing growth, development and economic viability of tourism in Toronto. It is incorporated as a non-profit association under the provisions of the Corporations Act of Ontario as the Metropolitan Toronto Convention and Visitors Association (known as Tourism Toronto). Governance of Tourism Toronto is exercised by its 42 member Board of Directors, which includes seven members of Council, including the Mayor of Toronto who acts as Honourary Chairman.

Tourism Toronto provides destination-marketing services on behalf of its members and the City of Toronto. The Association's marketing and business activities are focused on several key service areas. It provides visitor information services, publications, convention and trade show marketing, and convention services, such as delegate registration and accommodations co-ordination and booking. Market research and tracking studies are also conducted to guide future marketing programs and to monitor the effectiveness of current promotion programs. The convention and general leisure markets represent the two focal points of activity in terms of programming and resource allocation.

The practice of providing destination marketing services through one central not-for-profit organization is common to most jurisdictions in North America.

History of Municipal Funding for Tourism Toronto:

Tourism Toronto has received operating grants from the former Metropolitan Toronto since 1976. In 1984 Metro Council approved the "Extended Tourism Marketing Programme" which led to an expanded mandate for Tourism Toronto.

In order to achieve its expanded marketing function the organization more than doubled its budget from 1984 to 1986. During that period Metro's contribution to the total budget increased from 49 percent to 72 percent. The balance of the Association's revenues are derived from memberships, fees for its various advertising and promotion services, and convention and travel trade sales and services.

Between 1986 and 1995 the annual grant from the municipality ranged from $5 million to $7 million, and represented between 66 percent to 74 percent of Tourism Toronto's budget.

In 1995, the grant level was approved at $6.167 million with an agreement to reduce the level of support by 50 percent in the following three years. Council had two primary objectives in reducing its funding to the organization at that time. The first was to achieve a more equitable balance between private and public sector funding. The second objective was to accelerate efforts to secure other revenue sources such as a visitor levy commonly found in other North American urban centres.

In 1996, the grant was reduced by 20 percent to $4.934 million with the assumption that the receipt of a one-time GST rebate would mitigate the reduction in municipal funding. In 1997, the second 20 percent reduction from the 1995 level of funding was reduced to 10 percent resulting in a grant of $4.317 million. In 1998, the grant was flatlined at the 1997 rate. In 1999, City Council had before it a recommendation from the Strategic Policies and Priorities Committee calling for a 10 percent reduction to the Tourism Toronto grant of $4.317 million. Council amended that recommendation by approving a 2 percent reduction to the 1999 grant and referred consideration of any further reductions pertaining to the Tourism Toronto budget for 2000, to the Commissioner of Economic Development, Culture and Tourism for report thereon to the Economic Development and Parks Committee prior to the 2000 budget process.

At its meeting of January 17, 2000 Council adopted Clause 7, Report No.1 of the Economic Development and Parks Committee recommending to the Budget Advisory Committee that Tourism Toronto's budget be increased by 5 percent over the 1999 level, for a total budget of approximately $ 4.5 million.

Previous Agreements with Tourism Toronto:

The most recent funding agreement with Tourism Toronto was negotiated in 1986. The features of that agreement form the basic tenants of the draft Tourism Partnership Agreement currently being negotiated. The term of the 1986 agreement was for five years and expired in 1991. Since that time, Tourism Toronto continued to receive annual grants from the former Metro Toronto, and then from the amalgamated City of Toronto. It should be noted that in the absence of any formal signed agreements the fundamental principles of the original agreement were adhered to during these years.

Agreement Objectives:

The City of Toronto and Tourism Toronto share a common objective, which is to optimize the economic activity generated by the tourism industry. A formal agreement setting out the roles and responsibilities of both organizations is a desirable objective for both parties.

The Tourism Partnership Agreement presented in this report will help to ensure that funding to Tourism Toronto is being utilized to achieve the City of Toronto's objectives in tourism development. It is anticipated that this agreement will assist the City of Toronto to more effectively guide, monitor and evaluate the marketing and promotional activities delivered to the City through Tourism Toronto to ensure compatibility with the City's overall economic development objectives.

The agreement contains the following components:

The terms and conditions of the City of Toronto financial support

(ii) Tourism Toronto's obligations to the City of Toronto

Tourism Toronto's reporting, accountability and performance measures

(iv) The term of the agreement

Mechanisms for review and amendment.

The intent of the Agreement is to define the roles and responsibilities and to specify services being provided by Tourism Toronto and to put in place policies that will achieve greater accountability to the City for the funding it provides.

The salient features of the agreement include:

(a) Recognition of Tourism Toronto's status as an independent not-for-profit association: The agreement clarifies the role of the Tourism Toronto Board of Directors as having responsibility for the activities and governance of the Association with accountability to its members. Its responsibility to the City, as a major funder is to provide destination marketing services that will increase the number of visitors and value of visitor expenditures in the City of Toronto. Council's role as a major funder is to ensure that the City is receiving value for its investment in Tourism Toronto.

Standardizing reporting requirements: There has been inconsistency in the manner in which Tourism Toronto has reported to the City. Under former Metro policies, Tourism Toronto was asked in some years to report its budget as if it were a department or agency of the municipality. Budget books were prepared and monthly variance reports were submitted to committee. In other years, the Association applied for grants in the same manner as other grants recipients, and on occasion the Economic Development Division was called upon to submit and comment upon the Association's funding request. annual reporting through the Commissioner of Economic Development, Culture and Tourism who will in turn, review and comment on the Association's budget with funding recommendations through the budget process. The agreement calls for the President of Tourism Toronto to provide Council with a semi-annual briefing on the state of the tourism industry and status of Tourism Toronto's activities.

(c) Permitting the use of outside Auditors: In the former agreement with Metro the municipality required Tourism Toronto to use the services of the Metro Auditor. Since amalgamation the audit function has been carried out by the firm of Ernst and Young on behalf of the City Auditor. The Association is charged back for these services. The City Auditor has indicated that he does not object to the Association seeking the services of another firm, subject to the city retaining the right to conduct its own audit if it so wishes.

(d) Establishing a direct relationship between the Economic Development, Culture and Tourism Division and Tourism Toronto: The Commissioner has recently established "Team Tourism" an interdepartmental workteam comprised of staff that are involved in creating, supporting and advancing the department's tourism objectives. Team Tourism is currently preparing the city-wide tourism strategy and is in consultation with Tourism Toronto in this regard. The agreement calls for the Commissioner or designate to sit on the Board of Directors of Tourism Toronto. This will enhance the relationship, communication and synergies between the two organizations in our collective efforts to attract more business and leisure travellers to Toronto.

(e) Public accountability remains strong: The agreement calls for seven members of Council and the Commissioner of Economic Development, Culture and Tourism or designate to sit on the Board of Tourism Toronto. The Mayor continues as Honourary Chairman of the Board.

(f) Greater recognition of the City of Toronto's contribution to the Association: While the Board of Directors clearly understands the substantial contribution that the City makes to the organization, the membership is less aware of the City's investment in their Association. The agreement calls for the City to be identified as a partner of Tourism Toronto on appropriate Tourism Toronto publications and promotional materials.

(g) Measuring Outcomes: The agreement calls for the Commissioner of Economic Development, Culture and Tourism and the President of Tourism Toronto to establish performance measures that will help the City evaluate outcomes and determine its funding commitments each year.

Stabilization Reserve Fund: At present, any budget surpluses at year end are returned to the City, even though more than 50 per cent of the Association's revenues are derived from other sources. While every effort is made to spend funds as intended in a given year and historically variances have been minor the Association has no ability to plan for extraordinary operating or capital expenditures. Tourism Toronto has requested that Council consider approving a stablization reserve fund to help it better manage its affairs. Examples of situations in which a draw on reserves may be required would include: extraordinary fluctuations in exchange rates, funding commitments to support major conventions or conferences arriving in Toronto in future years, and unanticipated marketing opportunities.

The terms and conditions for the use of the Stabilization Reserve Fund would be agreed to with the Treasurer and CFO. Once a policy was in place, withdrawals from the fund would be considered and approved by the Board of Directors, and reported to Council.

Conclusions:

As both entities share a common objective, that is to optimize the economic activity generated by the tourism industry, a formal agreement setting out the roles and responsibilities of the two parties is desired.

Contact:

Brenda Librecz

Managing Director, Economic Development

Tel: 397-4700

blibrecz@toronto.ca

Joe Halstead

Commissioner, Economic Development, Culture and Tourism

List of Attachments:

Attachment No. 1- Draft Tourism Partnership Agreement Terms and Conditions

Attachment No. 1

TOURISM PARTNERSHIP AGREEMENT

Between Tourism Toronto and the City of Toronto

Terms and Conditions - Revised March 2, 2000

Structure and Role of Tourism Toronto:

Tourism Toronto was formed in 1926 as a not-for-profit co-operative marketing and visitor services organization. Its membership is comprised of some 1000 firms and organizations that have a significant stake in the continuing growth, development and economic viability of tourism in Toronto. It is incorporated as a non-profit association under the provisions of the Corporations Act of Ontario as the Metropolitan Toronto Convention and Visitors Association (known as Tourism Toronto). Governance of Tourism Toronto is exercised by its 42 member Board of Directors, which includes seven members of Council, including the Mayor of Toronto who acts as Honourary Chairman.

Tourism Toronto provides destination-marketing services on behalf of its members and the City of Toronto. The Association's marketing and business activities are focused on several key service areas. It provides visitor information services, publications, convention and trade show marketing, and convention services, such as delegate registration and accommodations co-ordination and booking. Market research and tracking studies are also conducted to guide future marketing programs and to monitor the effectiveness of current promotion programs. The convention and general leisure markets represent the two focal points of activity in terms of programming and resource allocation.

The City of Toronto wishes to achieve specific objectives in tourism development and through the agreement will ensure that the marketing activities delivered to the City by Tourism Toronto are compatible with the City's economic development objectives.

Provision of Services

1.1 Destination Marketing

Tourism Toronto will provide "destination marketing services" to promote and attract meetings, convention and leisure visitors to the City of Toronto. The services provided shall include:

Advertising , promotion and media relations;

Meeting, convention, and trade show marketing and services;

Visitor information; and

Market research.

In order to determine the specific services to be provided to the City of Toronto each year, the Commissioner of Economic Development, Culture and Tourism will identify and communicate the City's tourism goals and priorities to the President of Tourism Toronto. The Board will consider the City's interests when preparing its annual business plan and budget, and report to the Economic Development and Parks Committee on a work plan that advances the City's tourism objectives.

1.2 Services in support of City-wide Corporate Objectives

Tourism Toronto will work with the Economic Development Division and with Council to support the City of Toronto's tourism objectives and is expected to:

Identify the City of Toronto as a partner of Tourism Toronto on appropriate Tourism Toronto publications and promotional materials in a manner recognizing that the City is the principal funder of the Association.

Include, to the extent possible and where appropriate in Tourism Toronto promotional materials and activities, the City of Toronto owned and operated facilities and events without compromising the facilities and events of other members.

Distribute City of Toronto tourism related promotional materials through Tourism Toronto distribution channels.

Enhance the provision of visitor information services available in the City of Toronto in high profile locations such as, Nathan Phillips Square and Pearson International Airport. Delivery of such services be subject to an analysis of the business case completed jointly by the Economic Development Division and Tourism Toronto.

Determine a mechanism to provide heritage and cultural facilities that have tourism potential but do not generate sufficient attendance and revenue to subscribe as regular Tourism Toronto members with access to Tourism Toronto services. The facilities to be considered include: The Pier, Fort York, Colborne Lodge, Mackenzie House, Spadina House, Scarborough Historical Museum, Todmorden Mills Museum, Zion Schoolhouse, Gibson House, Montgomery's Inn, York Museum, Market Gallery, Museum of Contemporary Canadian Art, Cedar Ridge Creative Centre, Zion Church Cultural Centre, Lakeshore Assembly Hall and other city facilities as Council sees fit.

Planning and Budgeting Process

2.1 Marketing and Business Plan Submission

Tourism Toronto will provide its annual marketing and business plan, having been developed in consultation with its members and partners, including the City of Toronto and approved by its Board of Directors, to the Commissioner of Economic Development, Culture and Tourism so that it may be incorporated in advance of the City's annual business planning and budget cycle.

The plan will:

Set out, in a detailed format, the rationale and objectives for activities of Tourism Toronto throughout the year.

Define the criteria and performance indicators for an objective evaluation to determine the success of those activities.

2.2 Budget Submission and Approval

Tourism Toronto shall adhere to the timeframes of the budget schedules for the annual operating budget process and shall submit to the CFO and Treasurer and to the Commissioner of Economic Development, Culture and Tourism an operating budget that includes all expenditures and revenues, both forecasted and actual, in a form acceptable to the Commissioners for review during the budget development and approval process.

The Commissioner will submit the budget with recommendations to the Economic Development and Parks Committee for approval by the Policy and Finance Committee and City of Toronto Council.

2.3 Performance Measures

As established in its business plan, Tourism Toronto will develop annual performance measures for its programs and activities. Performance results and outcomes will be reviewed and evaluated by the Commissioner of Economic Development, Culture and Tourism during the budget approval process.

3.0 Accountability Framework

3.1 City of Toronto Representation on the Board of Directors

The City of Toronto is entitled to membership in the Association and is to be represented on the Association's Board of Directors by up to seven (7) City of Toronto Councillors and the Commissioner of Economic Development, Culture and Tourism or designate (ex-officio).

The Mayor of the City of Toronto will be the ex officio Honorary Chairman of the Board of Directors of Tourism Toronto.

Auditor

On an annual basis, Tourism Toronto will submit to the City of Toronto Auditor an audited statement prepared by a chartered accountant in compliance with City of Toronto standards and practices. The City of Toronto Auditor retains the right to conduct an examination of Tourism Toronto records upon request.

Communication/Reporting to Council

To enhance communications, the President of Tourism Toronto will have the opportunity to provide Council with a briefing on the state of the tourism industry and on Tourism Toronto activities on a semi-annual basis.

4.0 Financial Arrangements

Budget Surpluses

Stabilization Reserve Fund

Any budget surpluses at year end will be directed to the Association's Stabilization Reserve Fund. This fund will be used for any extraordinary operating or capital expenditures. The terms and conditions for the uses of the fund are to be determined by the Treasurer and CFO, the Commissioner of Economic Development, Culture and Tourism and the Board of Directors of Tourism Toronto. Once a policy is in place, withdrawals from the fund would be considered and approved by the Board of Directors, and reported to Council.

4.2 Private Sector Support

In carrying out its general functions, Tourism Toronto will strive to maximize financial contributions from and partnerships with the private sector to pay the cost of operations and to assist with a variety of co-operative marketing activities.

4.3 Financial Commitment

The City of Toronto is not obliged to continue making annual funding or any other financial contributions whatsoever to Tourism Toronto. The City of Toronto Council reserves the right to adjust the grant level as it sees fit from year to year regardless of the implied or actual previous year's grant.

Funding Schedule

The schedule of payments will be determined by the City of Toronto CFO and Treasurer and will be based on the Council approved grant level in Tourism Toronto's approved budget.

5.0 Abdication and/or Transference of Responsibility

Tourism Toronto may not abdicate or assign its interests without the prior written consent of the City of Toronto.

Agency Status

The Tourism Partnership Agreement may not or in any way be taken or construed as creating or acknowledging an agency relationship between Tourism Toronto and the City of Toronto.

7.0 Term of the Tourism Partnership Agreement

The Tourism Partnership Agreement shall be in effect for three years commencing January 1, 2000.

8.0 Amendments or Termination of the Tourism Partnership Agreement

Amendment or termination may also be required at any time during the currency of this agreement or any renewal thereof, by the giving of one party to the other of two months notice, in writing, that such review is required.

Tourism Toronto, in regard to industry practices may change its product offerings from time to time. This would be accomplished in consultation with the Economic Development Division and in recognition that any material changes could result in the re-negotiation or amendment to the agreement.

9.0 Termination by the City of Toronto

The Tourism Partnership Agreement shall be subject to termination or revocation by the City of Toronto, in such manner as the Council shall determine, where, in the opinion of Council, the implementation of, or exercise of any rights granted would be inconsistent with policies adopted from time to time by the Council.

Attachment No. 1

TOURISM PARTNERSHIP AGREEMENT

Between Tourism Toronto and the City of Toronto

Terms and Conditions - Revised March 2, 2000

Structure and Role of Tourism Toronto:

Tourism Toronto was formed in 1926 as a not-for-profit co-operative marketing and visitor services organization. Its membership is comprised of some 1000 firms and organizations that have a significant stake in the continuing growth, development and economic viability of tourism in Toronto. It is incorporated as a non-profit association under the provisions of the Corporations Act of Ontario as the Metropolitan Toronto Convention and Visitors Association (known as Tourism Toronto). Governance of Tourism Toronto is exercised by its 42 member Board of Directors, which includes seven members of Council, including the Mayor of Toronto who acts as Honourary Chairman.

Tourism Toronto provides destination-marketing services on behalf of its members and the City of Toronto. The Association's marketing and business activities are focused on several key service areas. It provides visitor information services, publications, convention and trade show marketing, and convention services, such as delegate registration and accommodations co-ordination and booking. Market research and tracking studies are also conducted to guide future marketing programs and to monitor the effectiveness of current promotion programs. The convention and general leisure markets represent the two focal points of activity in terms of programming and resource allocation.

The City of Toronto wishes to achieve specific objectives in tourism development and through the agreement will ensure that the marketing activities delivered to the City by Tourism Toronto are compatible with the City's economic development objectives.

Provision of Services

1.1 Destination Marketing

Tourism Toronto will provide "destination marketing services" to promote and attract meetings, convention and leisure visitors to the City of Toronto. The services provided shall include:

Advertising , promotion and media relations;

Meeting, convention, and trade show marketing and services;

Visitor information; and

Market research.

In order to determine the specific services to be provided to the City of Toronto each year, the Commissioner of Economic Development, Culture and Tourism will identify and communicate the City's tourism goals and priorities to the President of Tourism Toronto. The Board will consider the City's interests when preparing its annual business plan and budget, and report to the Economic Development and Parks Committee on a work plan that advances the City's tourism objectives.

1.2 Services in support of City-wide Corporate Objectives

Tourism Toronto will work with the Economic Development Division and with Council to support the City of Toronto's tourism objectives and is expected to:

Identify the City of Toronto as a partner of Tourism Toronto on appropriate Tourism Toronto publications and promotional materials in a manner recognizing that the City is the principal funder of the Association.

Include, to the extent possible and where mutually agreeable in Tourism Toronto promotional materials and activities, the City of Toronto owned and operated facilities and events without compromising the facilities and events of other members.

Distribute City of Toronto tourism related promotional materials through Tourism Toronto distribution channels.

Enhance the provision of visitor information services available in the City of Toronto in high profile locations such as, Nathan Phillips Square and Pearson International Airport. Delivery of such services be subject to an analysis of the business case completed jointly by the Economic Development Division and Tourism Toronto.

Determine a mechanism to provide heritage and cultural facilities that have tourism potential but do not generate sufficient attendance and revenue to subscribe as regular Tourism Toronto members with access to Tourism Toronto services. The facilities to be considered include: The Pier, Fort York, Colborne Lodge, Mackenzie House, Spadina House, Scarborough Historical Museum, Todmorden Mills Museum, Zion Schoolhouse, Gibson House, Montgomery's Inn, York Museum, Market Gallery, Museum of Contemporary Canadian Art, Cedar Ridge Creative Centre, Zion Church Cultural Centre, Lakeshore Assembly Hall and other city facilities as Council sees fit.

Planning and Budgeting Process

2.1 Marketing and Business Plan Submission

Tourism Toronto will provide its annual marketing and business plan, having been developed in consultation with its members and partners, including the City of Toronto and approved by its Board of Directors, to the Commissioner of Economic Development, Culture and Tourism so that it may be incorporated in advance of the City's annual business planning and budget cycle.

The plan will:

Set out, in a detailed format, the rationale and objectives for activities of Tourism Toronto throughout the year.

Define the criteria and performance indicators for an objective evaluation to determine the success of those activities.

2.2 Budget Submission and Approval

Tourism Toronto shall adhere to the timeframes of the budget schedules for the annual operating budget process and shall submit to the CFO and Treasurer and to the Commissioner of Economic Development, Culture and Tourism an operating budget that includes all expenditures and revenues, both forecasted and actual, in a form acceptable to the Commissioners for review during the budget development and approval process.

The Commissioner will submit the budget with recommendations to the Economic Development and Parks Committee for approval by the Policy and Finance Committee and City of Toronto Council.

2.3 Performance Measures

As established in its business plan, Tourism Toronto will develop annual performance measures for its programs and activities. Performance results and outcomes will be reviewed and evaluated by the Commissioner of Economic Development, Culture and Tourism during the budget approval process.

3.0 Accountability Framework

3.1 City of Toronto Representation on the Board of Directors

The City of Toronto is entitled to membership in the Association and is to be represented on the Association's Board of Directors by up to seven (7) City of Toronto Councillors and the Commissioner of Economic Development, Culture and Tourism. In the absence of the Commissioner he/she could appoint a non-voting designate.

The Mayor of the City of Toronto will be the ex officio Honorary Chairman of the Board of Directors of Tourism Toronto.

Auditor

On an annual basis, Tourism Toronto will submit to the City of Toronto Auditor an audited statement prepared by a chartered accountant in compliance with City of Toronto standards and practices. The City of Toronto Auditor retains the right to conduct an examination of Tourism Toronto records upon request.

Communication/Reporting to Council

To enhance communications, the President of Tourism Toronto will have the opportunity to provide Council with a briefing on the state of the tourism industry and on Tourism Toronto activities on a semi-annual basis.

4.0 Financial Arrangements

Budget Surpluses

Stabilization Reserve Fund

Any budget surpluses at year end will be directed to the Association's Stabilization Reserve Fund. This fund will be used for any extraordinary operating or capital expenditures. A policy outline the terms and conditions for the uses of the fund are to be determined by the Treasurer and CFO, the Commissioner of Economic Development, Culture and Tourism and the Board of Directors of Tourism Toronto. Once a policy is in place, withdrawals from the fund would be considered and approved by Tourism Toronto's Board of Directors, and reported to Council.

4.2 Private Sector Support

In carrying out its general functions, Tourism Toronto will strive to maximize financial contributions from and partnerships with the private sector to pay the cost of operations and to assist with a variety of co-operative marketing activities.

4.3 Financial Commitment

The City of Toronto is not obliged to continue making annual funding or any other financial contributions whatsoever to Tourism Toronto. The City of Toronto Council reserves the right to adjust the grant level as it sees fit from year to year regardless of the implied or actual previous year's grant.

Funding Schedule

The schedule of payments will be determined by the City of Toronto CFO and Treasurer and will be based on the Council approved grant level in Tourism Toronto's approved budget.

5.0 Abdication and/or Transference of Responsibility

Tourism Toronto may not abdicate or assign its interests without the prior written consent of the City of Toronto.

Agency Status

The Tourism Partnership Agreement may not or in any way be taken or construed as creating or acknowledging an agency relationship between Tourism Toronto and the City of Toronto.

7.0 Term of the Tourism Partnership Agreement

The Tourism Partnership Agreement shall be in effect for three years commencing January 1, 2000.

8.0 Amendments or Termination of the Tourism Partnership Agreement

Amendment or termination may also be required at any time during the currency of this agreement or any renewal thereof, by the giving of one party to the other of three months notice, in writing, that such review is required.

Tourism Toronto, in regard to industry practices may change its product offerings from time to time. This would be accomplished in consultation with the Economic Development Division and in recognition that any material changes could result in the re-negotiation or amendment to the agreement.

9.0 Termination by the City of Toronto

The Tourism Partnership Agreement shall be subject to termination or revocation by the City of Toronto, in such manner as the Council shall determine, where, in the opinion of Council, the implementation of, or exercise of any rights granted would be inconsistent with policies adopted from time to time by the Council.