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Bisbee council approves DMO agreement with for‑profit HAPI over objections, 6–1
Summary
Council approved a Destination Marketing Organization agreement with Hackett Advertising Public Relations Interactive LLC (HAPI) by a 6–1 vote after residents raised concerns that the RFP sought a nonprofit DMO and that awarding to a for‑profit could conflict with AOT guidance; the city attorney and mayor said AOT allowed the arrangement and time constraints to secure matching funding were cited.
The Bisbee City Council on May 5 voted 6–1 to approve a Destination Marketing Organization (DMO) agreement with Hackett Advertising Public Relations Interactive LLC (HAPI), drawing objections from one councilmember and at least one public commenter who argued the award conflicted with Arizona Office of Tourism (AOT) expectations.
Interim City Manager Ashlee Coronado presented the proposed DMO agreement, describing HAPI’s role in developing and implementing destination marketing services paid from bed tax revenue and noting the city will establish a DMO advisory committee and hire a full‑time liaison. The agreement includes reporting and performance metrics.
Fred Miller, a public commenter, urged the city to withdraw the award and rebid after arguing the RFP described a DMO as a nonprofit organization and that awarding to a for‑profit agency could expose the city to challenge. Mayor Ken Budge responded by reading from the RFP scope of work and by summarizing an AOT email he said confirmed a for‑profit marketing agency may provide DMO services while the city retains the official DMO designation. City Attorney Joseph Estes said the procurement was conducted properly and that the time for bid protests had passed because Council had voted to award HAPI at a prior meeting.
Councilmember Karen Schumacher said she shared concerns about the process and that the RFP’s definition of a DMO as a nonprofit caused frustration that no work session had been held to discuss implementation. Councilmember Lori Reynolds said HAPI scored highly on qualifications and that rebidding would not guarantee a nonprofit proposal. Council then approved the agreement 6–1, with Schumacher voting no. Mayor Budge emphasized a July submission deadline to AOT to secure $50,000 in matched advertising funding as a rationale for moving ahead promptly.
What’s next: the city will form the DMO advisory committee, hire a liaison and move forward with HAPI for destination marketing; opponents raised procedural concerns but Council majority accepted the city attorney’s counsel that the process and award were proper.
