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HomeMy WebLinkAboutOrdinance 22178-05-2016 ORDINANCE NO. 22178-05-2016 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE CULTURE AND TOURISM FUND IN THE AMOUNT OF $32,500.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING REVENUE SHARE COMMITMENTS FROM REVENUES GENERATED FROM SPONSORSHIP FEES FROM COCA-COLA BOTTLING COMPANY; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Culture and Tourism Fund in the amount of$32,500.00, from available funds, for the purpose of funding revenue share commitments from revenues generated from sponsorship fees from Coca-Cola Bottling Company. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: Tyler Walla ssistant City Attorney Mary J. er, retary ADOPT D AND EFFECTIVE: May 3,2016 Ordinance No.22178-05-2016 Page 1 of 1 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/3/2016 - Ordinance No. 22178-05-2016 DATE: Tuesday, May 03, 2016 REFERENCE NO.: **G-18727 LOG NAME: 25REV SHARE BEVERAGE 2016 SUBJECT: Authorize Payments to The Active Network in the Amount of$6,000.00 and to the Fort Worth Park and Recreation Sports Advisory Council, Inc., in the Amount of$26,500.00 for Revenue Share Commitments Generated from Sponsorship Fees from Coca-Cola Bottling Company and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and appropriations in the Culture and Tourism Fund in the amount of$32,500.00 for revenue share commitments from revenues generated from sponsorship fees from Coca-Cola Bottling Company; 2. Authorize a payment to The Active Network in the amount of$6,000.00; and 3. Authorize a payment to the Fort Worth Park and Recreation Sports Advisory Council, Inc., in the amount of$26,500.00. DISCUSSION: On January 29, 2008 (M&C C-22654), the City Council authorized the City Manager to execute an Agreement with Coca-Cola Bottling Company (Coca-Cola) (City Secretary Contract (CSC) No. 36650) for exclusive rights to offer beverages for sale at certain city-owned facilities. In consideration of these rights, Coca-Cola agreed to pay sponsorship fees in addition to commissions and marketing support. Coca-Cola Bottling Company has paid the contracted sponsorship fee for Fiscal Year 2015 - 2016 in the amount of $50,000.00. On May 18, 2004 (M&C C-20085), the City Council authorized the City Manager to execute an Agreement with Public Enterprise Group (PEG) to assist in developing corporate partnership revenue programs. In exchange for assisting the City in identifying and negotiating any partnership Agreement, PEG would receive a 12 percent commission on all revenue received by the City as a result of such contracts. Since that time, PEG has changed its name to The Active Network. The City's Agreement with PEG was in effect at the time that the Agreement was executed with Coca-Cola and, as such, The Active Network will be paid its contractual commission in the amount of$6,000.00. A portion of the revenue from the sponsorship fee received from Coca-Cola has been committed to key stakeholders for maintenance/operational costs and to match contractual Agreements in place at the time the Agreement was executed with Coca-Cola. The amount of$26,500.00 will be paid to Fort Worth Park and Recreation Sports Advisory Council, Inc. (SAC) as part of the City's ongoing obligation to replace funding lost from product rights at the City's Park and Recreation facilities. Logname: 25REV_SHARE_BEVERAGE_2016 Page 1 of 2 The remaining $17,500.00 does not require a supplemental appropriation and will be distributed as follows to replace funding lost from the product rights as a result of the exclusive Agreement with Coca-Cola: $10,000.00 will be deposited in the Municipal Golf Fund and $6,800.00 will be deposited in the Culture and Tourism Fund. The remaining $700.00 will be deposited into the General Fund. Recap of the revenue distribution: $ 6,000.00 The Active Network (12 percent commission) $26,500.00 SAC for the period of May 16, 2015 to May 15, 2016 $10,000.00 Municipal Golf Fund $ 6,800.00 Culture and Tourism Fund $ 700.00 General Fund $50,000.00 Total Payment to The Active Network and SAC are made pursuant to CSC No. 31262, CSC No. 36650, CSC No. 46940 and is not a modification to the contracts and do not require Form 1295. This serves ALL COUNCIL DISTRICTS. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon adoption of the attached supplemental appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Culture and Tourism Fund to make the associated payments to The Active Network and the SAC. FUND IDENTIFIERS (FIDs): TO Fund Department Account Project ProgramActivity Budget Reference # Amount ID ID Year Chartfield 2 20101 0246000 4800100 $32,500.00 20101 0246000 5330201 $32,500.00 FROM Fund Department Accoun Project ProgramActivity Budget Reference # Amount ID I I ID I I Year Chartfield 2 L20101J 0246000 15330201 1 1 J$32,500.001 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Kirk Slaughter (2501) Additional Information Contact: Betty Tanner (2502) Logname: 25REV_SHARE_BEVERAGE_2016 Page 2 of 2