HomeMy WebLinkAboutContract 47303-A1 r
CITY SECRET'
MAY 2 5 2016 CONTRACT NO.
CT'OFFORrwORTH FIRST AMENDMENT TO
CINcf GARY FORT WORTH CITY SECRETARY CONTRACT NO.47303
This First Amendment to Fort Worth City Secretary Contract Number 47303 - a
Memorandum of Understanding is made and entered into by and between the Fort Worth Convention
and Visitors Bureau ("Bureau" or "CVB"), a Texas non-profit corporation, acting by and through its
duly authorized representative, and the City of Fort Worth ("City"), a Texas home-rule municipal
corporation, acting by and through its duly authorized Assistant City Manager.
WHEREAS, the City and Bureau are parties to an agreement (Fort Worth City Secretary
Contract("CSC") No. 44949 or "Contract") for marketing and promotional services to raise awareness of
the City as a business and leisure destination, with such services compensated through an allocation of
"Tax Collections," which is defined as revenue that (i) has been generated by the City's 7% local hotel
occupancy tax (HOT) and (ii) is not designated for another purpose;
WHEREAS, the Fort Worth City Council has undertaken a series of actions to support funding
of capital projects, such as the planned Multipurpose Arena and adjacent support facilities, that are
expected to have a positive impact on local tourism and the hotel industry, with the most recent action
being designation of a portion of incremental growth in revenue from the City's 7% HOT for eligible
special projects(M&C G-18614);
WHEREAS, on December 3, 2015, the City and Bureau entered into a Memorandum of
Understanding to document the impact of these City Council actions on funding under the Contract, that
memorandum being Fort Worth CSC No. 47303 ("MOU");
WHEREAS, it has come to the parties' attention that the MOU does not reflect the intent of the
parties as clearly as intended;
WHEREAS, the parties wish to amend the MOU to more accurately reflect the understanding of
the parties and to document the impact of City Council actions, including M&C G-18614, beginning with
the Fiscal Year 2015 true-up process and continuing throughout the remainder of the Contract term and
any renewals thereof; and
NOW,THEREFORE, the parties hereto covenant and agree as follows:
I.
Section 1.2, "Purpose," of the MOU is hereby amended to insert clarifying language and to read as
follows:
"1.2. Purpose. This MOU represents the intent of the Parties to memorialize the impact of the
listed actions on Funding for General Marketing and Promotional Obligations under Section 4.01
of Fort Worth City Secretary Contract No. 44949, with such impact effective October 1, 2015 -
beginning with the Fiscal Year 2015 true-up process and continuing in effect for the remainder of
the contract, which has an initial term ending on September 30, 2018 and two, one year renewal
options."
M*2
MOU—Fort Worth Convention&Visitors Bureau
II.
Paragraph 2 of Section 2.2, "Funding for General Marketing and Promotional Obligations", of the MOU
is hereby amended to revise a confusing date reference,to add clarifying language, and to read as follows:
"As a result of the dedication of certain incremental revenue by adoption of M&C G-18614,
effective October 1, 2015 - beginning with Fiscal Year 2015 true-up process and continuing
through the remainder of City Secretga Contract Number 44949 --Tax Collections consist of(a)
all City 7% HOT revenues up to the Baseline ($18,850,936.00) plus (b)City 7% HOT that
exceeds the Baseline and that is generated and collected from hotels outside the Zone."
III.
All other terms and conditions of the MOU that are not amended herein shall remain in full force and
effect.
EXECUTED this ' day of ' 2016
CITY OF FORT WORTH, TEXAS FORT WORTH CONVENTION AND
Jent
REAU
By: 7y-
�_Ausan
Alanis Jameson
Assistant City Manager and CEO
Attested by:
o
Allison Tidwell,ASSIStant to the City Secretary V$
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
MOU—Fort Worth Convention&Visitors Bureau 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/29/2016 - Ordinance No. 22147-03-2016
DATE: Tuesday, March 29, 2016 REFERENCE NO.: C-27655
LOG NAME: 25CVBTRUEUP FY2015
SUBJECT:
Adopt Supplemental Appropriation Ordinance Increasing Appropriations in the Culture and Tourism Fund in
the Amount of$514,687.00 and Decreasing the Assigned Fund Balance by the Same Amount for Funding
True-Up with the Fort Worth Convention and Visitors Bureau (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
Adopt Supplemental Appropriation Ordinance increasing appropriations in the Culture and Tourism Fund
in the amount of$514,687.00 and decreasing the assigned fund balance by the same amount for the
funding true-up with the Fort Worth Convention and Visitors Bureau.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to increase the Fiscal Year 2016
appropriation in the Culture and Tourism Fund in the amount of$514,687.00 for purposes of making an
additional payment to the Fort Worth Convention and Visitors Bureau (CVB) for the true-up of the funding
for the CVB for Fiscal Year 2015 according to the terms of City Secretary Contract (CSC) No. 44949.
On October 7, 2013, the City and CVB entered into CSC No. 44949 (M&C C-26493), allocating 47 percent
of Tax Collections to the CVB to carry out its contractual marketing and promotional obligations and duties
to market the City as a destination for conventions, equestrian events, motor coach tours, tourism and
other gatherings that would utilize City and private meeting facilities, hotel rooms and other tourism and
business amenities. Under the contract, the term "Tax Collections" is defined as "hotel occupancy tax
revenue (i) that is received . . . and (ii) that is not otherwise restricted or dedicated to a specific purpose . .
" Per the contract, payment to the CVB for each fiscal year is calculated during the budget process
based on projected Tax Collections and is paid in equal installments over the course of the year. After the
close of the fiscal year, the actual Tax Collections are compared to the budgeted projections and
adjustments are made to true-up the funding.
In early 2015, City staff engaged the CVB regarding funding plans for the Multi-Purpose Arena (Arena) at
the intersection of Harley Avenue and Gendy Street and other planned Public Events Capital
Projects. The CVB was advised that Staff would be recommending to City Council that a portion of future
growth in Hotel Occupancy Tax (HOT) revenue be dedicated to these types of special projects, meaning
such growth would not constitute Tax Collections under CSC No. 44949. On August 4, 2015, the Fort
Worth City Council adopted the initial funding plan for the Arena, adjacent facilities and related
infrastructure (Resolution No. 4498-08-2015), which was predicated on a portion of HOT growth being
used for the Arena. On December 1, 2015 (M&C G-18614), City Council made an official designation of
incremental growth in the City's seven percent HOT, setting aside revenue that is above the set baseline
($18,850,936.00) and that is generated by hotels inside of Project Financing Zone Number One (PFZ), for
eligible special projects. That M&C also authorized execution of a memorandum of understanding (MOU)
to memorialize how the designation impacted funding under CSC No. 44949.
Logname: 25CVBTRUEUP FY2015 Pagel of 3
In accordance with the terms of CSC No. 44949 and M&C G-18614, the true-up calculation for Fiscal Year
2015 is as follows:
BUDGETED
47 percent of Projected Tax Collections of$17,953,272.00 $8,438,038.00
ACTUAL
(a) 47 percent of actual Tax Collections up to baseline ($18,850,936.00) $8,859,940.00
PLUS
(b) 47 percent of actual Tax Collections that exceed baseline ($18,850,936.00) and that are generated
from hotels outside PFZ
$92,785.00
MINUS
(c) budgeted amount, already paid to CVB $8,438,038.00
EQUALS
Additional payment to CVB $514,687.00
In accordance with M&C G-18614, HOT revenues that exceed the baseline and that are generated by
hotels inside the PFZ are designated for special projects such as the Arena. For Fiscal Year 2015, the
amount of that allocation is $208,789.00.
NOTE - Following approval of this M&C, Staff intends to execute an amendment of the MOU approved in
December in order to more explicitly state that the increment calculations were intended to be and are
effective beginning with the Fiscal Year 2015 true-up process. This amendment is consistent with
discussions with the CVB staff and is reflected in the financial model and adopted funding plan.
This program serves the entire City.
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. Upon approval, the assigned fund balance of the Culture and Tourism Fund will exceed the
minimum reserve as outlined in the Financial Management Policy Statements.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project ProgramActivity Budget Reference # Amount
ID ID Year (Chartfield 2)
20101 0241000 4990000 $514,687.00
201011 0241000 5330201 $514,687.00
FROM
Fund Departmentccoun Project JProgram ctivity Budget Reference # Amount
ID 1A ID Year Chartfield 2
201011 0241000 15330201 1 0514,687.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Logname: 25CVBTRUEUP FY2015 Page 2 of 3
Originating Department Head: Kirk Slaughter (2501)
Additional Information Contact: Betty Tanner (2502)
ATTACHMENTS
1. 25CVBTRUEUP FY2015 FY16 AO 20101.docx (Public)
2. Certificate of Interested PartiesCVB.pdf (Public)
3. Dept Child Journal 40759 Fund 20101 dtd 20160329.JPG (CFW Internal)
4. Dept Rev Journal 40756 .'r-und 20101 dtd 20160329.JPG (CFW Internal)
Logname: 25CVBTRUEUP FY^01 1) Page 3 of 3
CERTIFICATE OF INTERESTED PARTIES ' 9
FORM�95
loft
Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1.2.3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. 2016-13101
Fort Worth Convention&Visitors Bureau
Fort Worth,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 02/12/2016
being filed.
City of Fort Worth Date Ackno dged:
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a
description of the goods or services to be provided under the contract.
47303
to provide marketing and promotional services to raise awareness of the City as a business&leisure destination
4 Nature of interest(check applicable)
Name of Interested Party City,State,Country(place of business)
Controlling Intermediary
5 Check only if there is NO Interested Party. ❑
X
6 AFFIDAVIT I swear,or affirm,under penalty of perjury,that the above disclosure Is true and correct.
ERLINDA GERCIO DE JESUS
zg.- Notary Public.Stot®of Tezas
s t ' My comtm%slon Eg*es
August 31,2017
gnature of authorized agent of cont cti business entity
AFFIX NOTARY STAMP/SEAL ABOVE
Sworn to and subscribed before me,by the said Q6,66tr t— -YAM&soA) ,this the la�i day of ,
20_((x_,to certify which,witness my hand and seal of office.
&,lL� o� /r�as G- J Ry Pu$L!C,
Signature of officer administer#g oath Printed name of officer administering oath Title of officer administering oath
Forms provided by Texas Ethics Commission www.ethics.state.tX.us Version V1.0.34944