HomeMy WebLinkAboutContract 34329 CITY SECRETARY
CONTRACT NO.
FUNDING AGREEMENT
BETWEEN
CITY OF FORT WORTH
AND
INTERNATIONAL SISTER CITY ASSOCIATION OF FORT WORTH,INC.
This FUNDING AGREEMENT ("Agreement") is made and entered into by and
between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation
situated in the State of Texas, acting by and through Karen L. Montgomery, its duly authorized
Assistant City Manager, and the INTERNATIONAL SISTER CITY ASSOCIATION OF
FORT WORTH, INC. (the "Association"), a Texas not-for-profit corporation, acting by and
through Mae Ferguson, its duly authorized Executive Director.
WHEREAS,pursuant to V.T.C.A., Tax Code Chapter 351 and the Code of the City of Fort
Worth ("City Code") § 32-17, the City may use hotel tax revenue for certain specified purposes,
including but not limited to, advertising and conducting solicitations and promotional programs
to attract tourists and convention delegates or registrants to the City of Fort Worth;
WHEREAS,Association promotes tourism and the convention and hotel industry through
promotional programs to encourage tourists and convention delegates or registrants to visit the
City of Fort Worth;
WHEREAS, City and Association desire to enter into a contract for Association to
receive a portion of the City's hotel tax revenue to perform certain activities to encourage tourists
and convention delegates to visit the Association.
NOW THEREFORE, in consideration of the mutual covenants, promises and obligations
contained herein, the parties agree as follows:
1. FUNDING AND SCOPE OF SERVICES.
Pursuant to V.T.C.A., Tax Code Chapter 351 and the Code of the City of Fort Worth
("City Code") § 32-17, the City agrees to pay Association during the term of this Agreement
quarterly installment, which will not exceed the total of Three Hundred Fifty Seven Thousand
Dollars ($357,000) from revenue generated by the City's hotel occupancy tax.
In return, Association will coordinate all activities involving the City and its Sister Cities.
For example, Association will coordinate cultural, educational and athletic exchanges.
Association shall also coordinate meeting facilities, hotel accommodations and travel plans in
conjunction with sister City activities. In addition, Association shall perform other services in
connection with Sister Cities activities as the City may request from time to time and shall attend
all meetings as requested by City officials. Association agrees that expenditures of any funds
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received hereunder shall be for purposes that fully comply with the requirements of V.T.C.A.,
Tax Code § 351.101. In performance of such services, Association commits to meet service
performance criteria as set out in Exhibit A attached hereto and incorporated herein for all
purposes incident to this Agreement.
2. TERM OF AGREEMENT AND TERMINATION.
(a) This Agreement shall commence on October 1, 2006, and end on September 30,
2007. The City may terminate this Agreement for cause by giving Association written notice not
less than thirty(30)days prior to the effective date of such termination.
(b) If the City exercises its right to terminate this Agreement prior to its expiration,
Association's obligations to the City under this Agreement shall continue until the date such
termination actually takes effect. On the date of termination, Association shall reimburse to the
City all funds it has received, but not encumbered by contract,pursuant to this Agreement.
(c) In the event that no funds or insufficient funds are appropriated by City in any
fiscal period for any payments due hereunder, City will notify Association of such occurrence
and this Agreement shall terminate on the last day of the fiscal period for which appropriations
were received without penalty or expense to City of any kind whatsoever, except as to the
portions of the payments herein agreed upon for which funds shall have been appropriated.
3. PERFORMANCE.
(a) In accordance with V.T.C.A., Tax Code § 351.101(e), Association agrees that the
funds received hereunder may be used for day-to-day operations, supplies, salaries, office rental,
travel expenses, and other administrative costs only if those administrative expenses are incurred
directly in the promotion and servicing expenditures as authorized under the aforementioned
chapter of the Tax Code. Further, in accordance with Tax Code § 351.101(f) Association shall
not used the funds received hereunder for travel for a person to attend an event or conduct an
activity the primary purpose of which is not directly related to the promotion of tourism and the
convention and hotel industry or the performance of the person's job in an efficient and
professional manner.
(b) Association further agrees that it will maintain all funds received hereunder in a
separate account. Association shall not commingle such funds with any other funds or maintain
such funds in any other accounts. In addition, Association's expenditure of such funds shall
strictly be in accordance with its Budget, attached as Exhibit B and incorporated herein by
reference for all purposes. Association understands and agrees that upon the acceptance of funds
hereunder, a fiduciary duty is created with respect to the expenditure of such funds.
(c) Association shall submit quarterly financial reports to the City that reflect all
receipts and disbursements of funds received pursuant to this Agreement. In addition, within
thirty (30)days following the end of the City's fiscal year,Association shall submit to the City an
annual financial report that reflects all receipts and disbursements of such funds received during
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the term of this Agreement and that sets forth all other material information pertaining to the
financial activities and financial condition of the Association.
(d) Association shall submit quarterly service performance reports to the City
that reflect services and activities undertaken by Association in performance of this
Agreement. Each report will be signed by a duly authorized agent of Association. In
addition,within thirty (30) days following the end of the City's fiscal year,Association shall
submit to the City an annual service performance report that reflect all services and
activities undertaken by Association in performance of this Agreement.
(e) At any time during the term of this Agreement, the City shall have the right to
authorize an audit of Association's records as they pertain to its receipt and expenditure of funds
hereunder. Such audits shall be prepared at the City's expense. However, if any such audit
reveals material discrepancies in the Association's records, Association agrees that it shall
reimburse the City for the full costs of such audit.
4. BOND HOLDER RIGHTS.
The City's obligations and Association's rights under this Agreement shall be subordinate
to and limited by the terms and conditions of all subsequent City ordinances which authorize the
issuance of bonds whose payment is pledged upon the City's hotel occupancy tax. Association
agrees and understands that rights of the holders of any such revenue bonds shall be superior in
all respects to the rights of Association. However, the City, to the extent practicable, shall give
Association as much prior notice as reasonably possible of the City's intent to issue such bonds.
5. INSURANCE.
(a) Association shall procure and maintain at all times, in full force and effect, a
liability insurance policy as specified herein, naming the City of Fort Worth as an additional
insured and covering all public risks related to the activities performed pursuant to the terms of
this Agreement. Association shall obtain a liability insurance policy with the following
coverages at the following limits:
Bodily Injury and Property Damage:
$250,000 per person;
$500,000 per occurrence
(b) Insurance requirements may be revised at the City's option, and Association will
accordingly increase such amounts within thirty(30)days following written notice to Association
of such requirement. This insurance policy shall be endorsed to provide that no material changes
in coverage, including, but not limited to, cancellation, termination, non-renewal or amendment,
shall be made without thirty(30) day's prior written notice to the City.
(c) Association shall maintain its insurance with underwriters authorized to do
business in the State of Texas and which are satisfactory to the City. As a con "
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the effectiveness of this Agreement, Association shall furnish the City with a certificate of
insurance as proof that it has obtained the types and amounts of insurance coverage required
herein. Copies of the policy shall also be provided if the City so requests. In addition, at any
time Association shall, on demand, provide the City with evidence that it has maintained such
coverage in full force and effect.
6. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Association shall operate as an independent
contractor as to all services and obligations performed hereunder, and not as an agent,
representative or employee of the City. Association shall have the exclusive right to control the
details of its operations and activities and shall be solely responsible for the acts and omissions of
its boards, officers, agents, servants, employees, contractors, subcontractors and members. The
Association acknowledges that the doctrine of respondeat superior shall not apply as between the
City and Association its boards, officers, agents, servants, employees, contractors, subcontractors
and members. Association further agrees that nothing herein shall be construed as the creation of
a partnership or joint enterprise between the City and Association.
7. INDEMNIFICATION.
ASSOCIATION HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY
FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF
ANY KIND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE RECEIPT OR EXPENDITURE OF CITY FUNDS OR THE
PROVISION OF ANY SERVICES HEREUNDER. ASSOCIATION COVENANTS AND
AGREES TO, AND DOES HEREBY, INDEMNIFY AND HOLD HARMLESS AND
DEFEND THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES,
FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER
PROPERTY DAMAGE OR LOSS AND/OR PERSONAL INJURY OF ANY KIND,
INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE RECEIPT OR EXPENDITURE OF CITY FUNDS OR THE
PROVISION OF ANY SERVICES HEREUNDER.
8. ASSIGNMENT.
The Association shall not assign, sell, convey or transfer its interest under this
Agreement. Any such attempted assignment of same shall be null and void.
9. NON-DISCRIMINATION COVENANT.
Association agrees that, in all phases of its performance under this Agreement, it shall not
discriminate or permit discrimination against any person, including, but not limited to, employees
or prospective employees of Association, on the basis of race, color, national origin, religion,
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handicap, sex, sexual orientation or familial status. Association agrees to comply with the
provisions of Chapter 17, Article III, Division III ("[Discrimination in] Employment Practices")
of the City Code and with state and federal equal opportunity statutes. Association shall insert
similar provisions in all subcontracts for services covered by this Agreement.
10. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Agreement, the City does not waive
or surrender any of its governmental powers.
11. NO WAIVER.
The failure of the City to insist upon the performance of any term or provision of this
Agreement or to exercise any right granted herein shall not constitute a waiver of the City's right
to insist upon appropriate performance or to assert any such right on any future occasion.
12. VENUE.
Should any action, whether real or asserted, at law or in equity, arise out of the terms of
this Agreement, venue for said action shall be in Tarrant County, Texas.
13. SEVERABILITY.
If any provision of this Agreement shall be held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provision shall not in any way be
affected or impaired.
14. ENTIRETY OF AGREEMENT.
This written instrument, including any documents incorporated herein by reference,
contains the entire understanding and agreement between the City and the Association as to the
matters herein contained. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent in conflict with this Agreement. This Agreement shall not be
amended unless agreed to in writing by both parties and approved by the City Council of the
City.
15. RIGHT TO AUDIT.
The Association agrees that the City shall, until the expiration of three (3)years after final
payment under this Agreement, have access to and the right to examine any directly pertinent
books, documents, papers and records of the Association involving transactions relating to this
Agreement. The Association agrees that the City shall have access during normal working hours
to all necessary Association facilities and shall be provided adequate and appropriate workspace
in order to conduct audits in compliance with the provisions of this section. The City shall give
the Association reasonable advance notice of intended audits.
The Association further agrees to include in all of its subcontractor agreements hereunder
a provision to the effect that the subcontractor agrees that the City shall, until the expiration of
three (3)years after final payment under the subcontract, have access to and the right to examine
any directly pertinent books, documents, papers and records of such subcontractor involving
transactions to the subcontract, and further that City shall have access during normal working
hours to all subcontractor facilities and shall be provided adequate and appropriate workspace in
order to conduct audits in compliance with the provisions of this paragraph. City shall give
subcontractor reasonable advance notice of intended audits.
14. NOTICES.
Notices to be provided hereunder shall be sufficient if forwarded to the other party by
hand-delivery or via U.S. Postal Service certified mail, postage prepaid, to the address of the
other party shown below:
City of Fort Worth Fort Worth Sister Cities International
Karen L. Montgomery, Assistant City Manager Mae Ferguson, Executive Director.
1000 Throckmorton 808 Throckmorton
Fort Worth, Texas 76102 Fort Worth, TX 76102
817-392-6222 817-392-2650
[SIGNATURES APPEAR ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples to
become effective for the stated term upon the filing with and assignment of a contract pumber by
the City Se re 's Office of the City of Fort Worth, Texas, this w'- ' day of
, A.D. 2006.
CITY OF FORT WORTH INTERNATIONAL SISTER CITY
ASSOCIATION OF FORT WORTH
B
Y Y
q'A' ao—"U
Karen L. Montgomery J�� Mae Ferguson
Assistant City Manager �� Executive Direct
ATT ST:
By: I
City Secretary
APPROVED AS TO FORM AND LEGALITY:
11AWih,
ssistant City Attorney
M&C:
V V bid: 1" V J�.J'1
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared Mae Ferguson, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
International Sister City Association of Fort Worth, Inc., and that she executed the same as the
act of the International Sister City Association of Fort Worth, Inc., for the purposes and
consideration therein expressed and in the capacity therein stated. /
GIVEN UNDER MY HAT�D AND AL OF OFFICE this l day of
r , 2006.
t Notary Public in and for the State of Texas
JOLIE ERWIN
q Notary Public,State of Texas a
+� OF MY Comm.Expires July 29.2008 0
8�
d'
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared Karen L. Montgomery, known to me to be the person whose
name is subscribed to the foregoing instrument, and acknowledged to me that the same was the
act of the City of Fort Worth and that she executed the same as the act of said City of Fort Worth
for the purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this I(Pday of II��K,••�.+�. ,
2006. n
,..... NolWy Public in and the State of Texas
f�PPYP B JONI R JACOBS
NOTARY PUBLIC
tN� iy, State of Texas
�'9T +P7Comm. Exp. 05-27-20 77
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Exhibit A
HOTEL/MOTEL OCCUPANCY TAX
AGENCY OBJECTIVES AND MEASURES
Fort Worth Sister Cities International
Mission:
To cultivate successful relationships and international understanding among the youth, adults,
businesses and organizations of Fort Worth and its Sister Cities through educational, leadership
and exchange programs. Through these relationships, Sister Cities will promote tourism and the
convention and hotel industries.
Objectives:
1. Maintain successful relationships with Fort Worth's seven sister cities.
2. Increase individual and corporate membership.
3. Increase inbound youth and adult exchanges with Fort Worth's sister cities.
4. Increase outbound youth and adult exchanges with Fort Worth's sister cities.
5. Increase inbound delegates.
6. Increase outbound delegates.
7. Conduct local programs emphasizing international understanding.
8. Increase local participation in programs, including the International Leadership Academy,
Fort Worth Youth International, and the International Academic Chairs Committee.
9. Impact the local economy.
Output Measures:
Agency Measures Actual Estimated Projected
FY2004-05 FY2005-06 FY2006-07
City Relationships 7 7 7
Memberships 769 1000 1200
Inbound Exchanges 28 61 65
Outbound Exchanges 16 44 44
Inbound Delegates 291 436 450
Outbound Delegates 395 409 409
Local Programs 120 110 120
Estimated Economic Impact 1.5 million 2.5 million 3.0 million
Q V
Exhibit B
Fort Worth Sister Cities International
Proposed Budget for the City of Fort Worth
Fiscal Year 2006-2007
Budget Categories FY 2005-2006 FY 2006.2007 Variance
Budget Budget Request Increase Decrease
Revenue
Board Campaign 22,000 22,000 -
City of Fort Worth 332,000 357,120 25,120
Mayor's Dinner 120,000 140,000 20,000
Membership 72,500 80,000 7,500
Programs 473,590 480,840 7,250
Other 8,300 8,300 -
Total Revenue 1,028,390 1,088,260 59,870
Operating Expenses
Bank Charges 2,000 2,000 -
Copier Lease/Maintenance 5,000 5,000 -
Depreciation 10,039 10,039 -
Dues&Subscriptions 4,700 5,500 800
Gift&Promotional 1,500 2,000 500
Insurance: Liability 5,000 5,000 -
Internet/Web site/Computer Fees 6,000 6,000 -
Legal&Professional 7,919 8,000 81
Long Range Planning 2,500 1,000 (1,500)
Marketing 18,000 22,000 4,000
Meeting Expenses 4,000 4,600 600
Membership Development 4,000 5,000 1,000
Rent 31,500 31,500 -
Shipping&Handling 7,000 7,000 -
Supplies&Materials 10,000 10,000 -
Telephone 9,900 15,100 5,200
Training 1,000 1,500 500
Travel 4,000 6,000 2,000
Employee: Salaries 351,226 390,380 39,154
Employee: Health Insurance 25,812 28,221 2,409
Employee: FICA 26,873 29,864 2,991
Employee: Retirement 10,281 11,711 1,430
Employee: Parking 7,600 7,600 -
Employee: TWC 1,008 660 (348)
Other 1,000 1,000 -
Total Operating Expenses 557,858 616,675 58,817
Program Expenses
Scholarships 33,600 35,000 1,400
Programs/Exchanges 435,840 435,840 -
Total Program Expenses 469,440 470,840 1,400
Total Expenses 1,027,298 1,087,515 60,217
Budgetted Gain(Loss) 1,092 745 (347)
Exhibit B
Fort Worth Sister Cities International
Proposed Budget for the City of Fort Worth
Fiscal Year 2006/2007
Staffing Explanation
Personnel Costs FY 2005/2006 FY 2006/2007 Variance
(FY06 vs FY07)
Salaries&Wages
Executive Director 95,000 99,750 4,750
Director of Programs and Education 51,655 54,238 2,583
Communications Director 40,000 42,000 2,000
Office Manager 38,150 40,058 1,908
Program Manager 36,050 37,853 1,803
Program Manager 35,000 36,750 1,750
Administrative Assistant 28,078 29,482 1,404
Program Assistant 20,250 20,250
Youth Coordinator(Part Time) 8,570 (8,570)
BonusesNacation Allowance 18,723 30,000 11,277
Total -Salaries&Wages 351,226 390,380 39,154
Employee Benefits
Health Insurance 26,000 28,221 2,221
Retirement 10,281 11,711 1,430
Taxes 26,873 30,524 3,651
Parking 7,600 7,600
Total-Employee Benefits 70,754 78,056 7,302
Total Personnel Costs 421,980 468,436 46,456
Exhibit B
Fort Worth Sister Cities International
Proposed Budget for the City of Fort Worth-Variance Justification
Fiscal Year 2006-2007
Budget Categories Variance Justification/Comments
Revenue
City of Fort Worth 25,120 6%increase for raising operating costs and for inflation. In addition,
we have been advised that the City will raise our phone bill by as
much as 72%for the year. We are requesting a total of 8%funding
increase.
Mayor's Dinner 20,000 Projection based on this year's International Mayor's Dinner
Membership 7,500 We plan to aggressively increase our membership base
Programs 7,250 Projecting increased memberships=increased program fees
Operating Expenses
Dues&Subscriptions 800 Increase based on current dues and subscriptions
Gift&Promotional 500 Increasing cost of gift items given to inbound delegates
Legal&Professional 81 Additional funding for criminal background screening
Long Range Planning (1,500) Less structured programming this year than previous year
Marketing 4,000 Funding needed to increase membership+higher printing costs
Meeting Expenses 600 Additional costs for rental of meeting space
Membership Development 1,000 Additional cost to assist with membership goal
Telephone 5,200 The City advised us that our phone bill will increase 72%this year
Training 500 Funding needed for annual staff/board diversity training
Travel 2,000 Increasing cost of travel travel for Executive Director due to Sister
Cities International presidency
Employee: Salaries 39,154 Projecting 5%salary increase and staff changes
Employee: Health Insurance 2,409 Projecting higher health insurance premium
Employee: FICA 2,991 Due to projected salary and staffing changes
Employee: Retirement 1,430 Due to projected salary and staffing changes
Employee: TWC (348) Projecting less turnover for the fiscal year plus lower rate
Program Expenses
Scholarships 1,400 To provide scholarships to more students this fiscal year
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Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/10/2006
DATE: Tuesday, October 10, 2006
LOG NAME: 03SISTER CITIES REFERENCE NO.: **C-21754
SUBJECT:
Authorize the Execution of a Contract with Fort Worth Sister Cities International to Administer the
Fort Worth Sister Cities Program
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a contract in the amount of
$357,000 with Fort Worth Sister Cities International to administer the Fort Worth Sister Cities Program.
DISCUSSION:
The City appropriates funds for this program to the agency from a portion of the Hotel/Motel Occupancy Tax
receipts.
During the FY2006-07 budget process, the City Council approved funding in support of Fort Worth Sister
Cities International to administer the Fort Worth Sister Cities Program. Fort Worth Sister Cities International
strives to cultivate relationships and international understanding among youth, adults, businesses and
organizations through educational, leadership and exchange programs, which promote tourism and
commerce in the City of Fort Worth. Fort Worth Sister Cities International has facilitated the involvement of
the City of Fort Worth with seven cities: Reggio Emilia, Italy; Trier, Germany; Nagaoka, Japan; Bandung,
Indonesia; Budapest, Hungary; Toluca, Mexico, and Mbabane, Swaziland.
It is proposed that a contract be executed between the City of Fort Worth and Fort Worth Sister Cities
International for the period of October 1, 2006, through September 30, 2007.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated, of
the Culture and Tourism Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG04 539120 0247000 $357,000.00
Submitted for City Manager's Office by. Karen Montgomery (6222)
Originating Department Head: Bridgette Garrett (8518)
Additional Information Contact: Erin Roseman (8512)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 1/25/2007