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Keller Council approves Blue Dot customer-rewards platform using hotel-occupancy tax funds
Summary
The council voted to authorize a contract with Blue Dot to provide a customer relationship and rewards platform funded from the city's hotel occupancy tax, 6-1. Councilmembers discussed allowable uses of the "hot tax" and asked staff to monitor implementation and user experience.
The Keller City Council voted to approve a contract with Blue Dot, a Mountain View, California firm, to supply a customer-relationship and citywide rewards platform paid from hotel occupancy tax revenue. Councilmember Lee moved approval and Councilmember Brennan seconded; the motion passed 6-1.
Councilmembers and staff said the program is intended to promote tourism and encourage spending in Keller businesses. City staff described the hotel-occupancy tax ("hot tax") as a restricted fund with a limited list of allowed uses under state law, including advertising and promotional programs to attract tourists; staff said the rewards program fits that category.
During discussion Councilmember Green asked whether the payment/rewards portion could include cash-back or other reward options; a Blue Dot representative on the line said that rewards and cash-back options are on the company's roadmap and could be integrated on the proposed schedule. Councilmember Green asked staff to pay attention to the user experience and to report problems back to council.
Councilmembers said the contract will be monitored and that the economic development team will finalize promotional details. The council directed staff to ensure the program is implemented within the hot-tax allowable uses and to report any significant implementation problems back to the council.
The vote authorizes staff to finalize and execute the agreement with Blue Dot and to use up to the identified portion of hotel-occupancy tax funds for the program. Councilmembers asked staff to provide periodic updates on adoption and any technical or user-experience issues that emerge.
