HomeMy WebLinkAboutContract 44949-A1 CITY SECRETARY G L `-
FIRST AMENDMENT TO CITY SECRETAf SRNMCT NO.
CONTRACT NO.449499 A PROFESSIONAL SERVICES AGREEMENT WITH THE FORT
WORTH CONVENTION AND VISITORS BUREAU
This First Amendment to City Secretary Contract Number 44949 ("First Amendment") is by
and between the City of Fort Worth ("City"), a home-rule municipality organized under the laws of the
State of Texas, acting by and through its duly authorized Assistant City Manager, and the Fort Worth
Convention and Visitors Bureau ("Bureau"), a Texas non-profit corporation, acting by and through its
duly authorized President and C.E.O.
WHEREAS, City and Bureau are parties to City Secretary Contract ("CSC") Number 44949, a
professional services agreement under which the Bureau markets and promotes Fort Worth as a business
and leisure destination("Agreement");
WHEREAS, the parties addended CSC 44949 to address the provision of and payment for
additional marketing and promotional services to more key markets through targeted outreach during
fiscal year 2014, the same being CSC 44949-ADI
WHEREAS, the parties executed a second addendum to CSC 44949 for Targeted Marketing
services, the same being CSC 44949-AD2;
WHEREAS, the Agreement has a five-year term, effective on October 1, 2013, and requires the
Bureau to prepare and submit a yearly marketing plan to the City that includes the marketing and
promotional activities and services to be performed by the Bureau for the upcoming fiscal year to promote
the entire city and all of its facilities and amenities ("General Marketing");
WHEREAS, funding for the General Marketing is derived from a percentage allocation of hotel
occupancy Tax Collections as defined in the Agreement;
WHEREAS, said funds are payable in 12 equal monthly installments based on budget
projections of hotel occupancy tax revenues and subject to a yearly "true up" process that identifies
deviations between actual hotel occupancy tax collections and budget projections and corrects those
deviations through a series of adjustments in the subsequent year's payments;
WHEREAS, during the annual budget process, the City may also allocate additional hotel
occupancy Tax Collections into two special accounts to assist in attracting, maintaining, and retaining
convention and equestrian-related business at the City's public facilities — the Fort Worth Convention
Center Public Facilities Fund and the Will Rogers Memorial Center Public Facilities Fund, along with a
separate fund to support the Fort Worth Herd;
WHEREAS, in 2016, a sports marketing study ("Study") was conducted,which included a sports
tourism audit, stakeholder interviews, competitive analysis, review of national best practices, analysis of
resources, and sports tourism plan; a y 6 7 89 0 j
r
OFFICIAL RECORD
CITY SECRETARY
First Amendment to CSC 44949 FT.WORTH,TX 1 of 7
\� ti
G v �'
WHEREAS, the Study showed that the sports industry has experienced unprecedented growth
over the last two decades, with just the grass roots sports tourism industry, which involves smaller events
and excludes mega events like the Superbowl, Final Four, etc., being worth nearly $9 billion annually and
expected to grow at a pace of 12-14% per year and that the City would benefit from enhancing its
marketing efforts to attract a portion of such business;
WHEREAS, an expanded effort around sports marketing would allow the City to (1) attract new
investment from corporations; (2) further sports marketing promotional efforts and expand the vision of
marketing Fort Worth nationally; (3) create an increased focus on community events and a vision for
venue support and expansion; and (4) build a larger community-wide focus on sports marketing,
specifically in the areas of education, stakeholder engagement, and expanded collaborations with private
institutions;
WHEREAS, Fort Worth has a significant opportunity to enrich its sports marketing program and
realize increased economic activity for the City and the entire region by engaging the Bureau to provide
focused sports marketing as an additional targeted marketing service to complement and supplement the
General Marketing efforts;
WHEREAS, the unprecedented growth of the sports tourism industry shows the high level of
market demand that supports the expansion of development efforts in this area for the City;
WHEREAS, to further enhance the impact of sports tourism on the Fort Worth area, the parties
have agreed to create a new Sports Marketing Fund("SMF");
WHEREAS, funding for the sports marketing services under this First Amendment are intended
to supplement the current funding models under the Agreement and do not affect the general funding
percentage allocation or the associated "true up"process; and
NOW, THEREFORE, in consideration of the mutual covenants herein expressed, the parties
agree as follows:
1. Section 2.01, Definitions, shall be revised to add "Sports Marketing Fund" to the list of defined
terms in this Agreement
"(xviii) Sports Marketing Fund ("SMF") shall be defined as: A fund administered in
accordance with the terms of this Agreement and available for the purpose of promoting
and marketing the sports tourism industry in the City of Fort Worth."
2. Section 4.02, Funding for Specialized Marketing and Promotional Obligations, is hereby
amended to reflect the new funding obligations for the SMF. Nothing contained herein is intended to
amend Sections 4.02(1) and(ii)relating to the SPFFs and Fort Worth Herd Operations.
"4.02 Fundingfor or Specialized Marketing and Promotional Obligations. In addition to
the General Funding, the City may, in connection with the annual budget process,
allocate funds from projected Tax Collections for the upcoming Fiscal Year to the Bureau
to carry out the following specialized marketing and promotional obligations: (i) the
First Amendment to CSC 44949 2 of 7
Special Public Facilities Funds, (ii) the Fort Worth Herd Operations, and (iii) the Sports
Marketing Fund as set forth below:"
"(iii) Sports Marketing_Fund. Funding for the SMF shall be outlined herein.
(a) The City may allocate up to $100,000.00 per Fiscal Year for the
SMF, beginning in Fiscal Year 2017.
(b) The Bureau shall maintain and account for the SMF.
(c) Any unused funds will carry over to the following Fiscal Year's
use for the SMF and shall supplement the total funding to be
contributed by the City during that Fiscal Year.
(d) Use and expenditure of the SMF shall be subject to the terms and
conditions of this Agreement."
3. Section 5.04, Budjzet, is hereby deleted in its entirety and replaced with the following section,
which adds the SMF to the budgeting requirements and shall read as follows:
"5.04 Budizet. The Bureau has prepared and submitted its proposed written budget for
Fiscal Year 2014 to the City. For the remaining Term, the Bureau shall submit to the
City a proposed written budget for the upcoming Fiscal Year on or before March 1 of
each upcoming Fiscal Year for consideration and approval. The budget shall (i) include
proposed funding for the General Funding, the SPFFs, Herd operations, and SMF; and
(ii) indicate the projected available Tax Collections for the ensuing Fiscal Year and any
amounts available in the Bureau's reserve fund and available funding for the SPFFs and
SMF. The budget must be submitted to and approved by the Bureau's Executive
Committee prior to submission to the City. In accordance with Section 351.101(c) of the
Texas Tax Code, the City, in writing, shall approve in advance the Bureau's annual
budget."
4. Section 5.05, Services Activities and Functions, is hereby amended to add a new Subsection
5.05(i)(n) to reflect the addition of the SMF.
"(n) The Bureau shall abide by all requirements set forth in this Agreement regarding
the maintenance and use of the Sports Marketing Fund."
5. Section 6, Special Public Facilities Funds, shall be amended, in whole, to set forth the purpose of
the new SMF and the Bureau's obligations in carry out such purpose. Section 6 is hereby amended in its
entirety to read as follows:
"6.
SPECIALIZED MARKETING FUNDS
6.01 Generally. The City and the Bureau recognize the need to maintain Specialized
Marketing Funds, each of which is dedicated to assist in attracting, maintaining, and
First Amendment to CSC 44949 3 of 7
retaining tourism and convention business at a certain facility in Fort Worth or in a
certain entertainment-and-tourism sector. The "Specialized Marketing Funds" consist of
the two Special Public Facilities Funds and the Sports Marketing Fund, each of which is
to be administered and utilized in accordance with the terms of this Section and the
Agreement.
(i) SPFFs. In order to book events that bring strong economic value and an
excellent quality of life to the community, the City, in cooperation with the
Bureau, must from time-to-time provide incentives in the form of adjusted
facility rents and other promotional program benefits to attract and retain priority
groups. The SPFFs serve such a purpose and shall be administered in accordance
with this Section.
(ii) SMF. In order to enhance sports tourism throughout Fort Worth, the
Bureau shall utilize the SMF to, at a minimum, expand its sports marketing
efforts to (1) attract new investment from corporations; (2) further sports
marketing promotional efforts and expand the vision of marketing Fort Worth
nationally; (3) create an increased focus on community events and a vision for
venue support and expansion; and (4) build a larger community-wide focus on
sports marketing, specifically in the areas of education, stakeholder engagement,
and expanded collaborations with private institutions The SMF shall serve such
a purpose and shall be administered in accordance with this Section.
6.02 Accounting
(i) The Specialized Marketing Funds will each be maintained in one or more
separate Bureau accounts and will not be commingled with any of the Bureau's
operating or personal accounts.
(ii) The Bureau will have the sole responsibility to keep and maintain an
accurate accounting of all funds that are in the Specialized Marketing Funds and
all outstanding and upcoming commitments from the funds and shall provide the
City with access to such accounting on request.
6.03 Miscellaneous
(i) Fort Worth Convention Center SPFF
(a) The Bureau will have sole authority over all expenditures from
the FWCC SPFF made in compliance with the limitations
prescribed by this Agreement.
First Amendment to CSC 44949 4 of 7
(b) The Bureau may request pricing for convention groups and, from
time-to-time, may ask the City to substantially discount rent to
convention groups.
(c) The Bureau shall reimburse the City for all such rental discounts
offered to attract a convention to the City for which the City
requests reimbursement, unless otherwise agreed to by the
parties in writing.
(d) The Bureau agrees to honor all pre-existing discounts that have
been established for convention rental and services.
(e) It is the responsibility of the Bureau to keep accurate records of
commitments and encumbrances made to organizations booked
into the FWCC for future years and to ensure that the FWCC
SPFF's financial capacity is not over committed. In the event
that financial commitments have been made to support the
activities of organizations and funds in the FWCC SPFF are not
sufficient to make the financial payments, the Bureau agrees to
make the City whole for such commitments.
(ii) Will Rogers Memorial Center SPFF
(a) The City and Bureau understand that there are some historical
uses of the WRMC SPFF to support events held at the WRMC,
some by contract and some by tradition. This specifically
includes uses by Equestrian Shows, Stock Show Equestrian
marketing services, Stock Show Rodeo tickets, and other
important events and client entertainment as approved by the
Director. These organizations and others have received cash
support, event support, and entertainment support, among other
types of support, funded through the WRMC SPFF. This
Agreement shall allow for such types of support and others as
deemed necessary by the Director to continue as part of the
WRMC SPFF activities.
(b) The Bureau and the Director will concur on the expenditures
made from the WRMC SPFF fund. In the unlikely situation
where the Bureau and the Department do not agree on
First Amendment to CSC 44949 5 of 7
4
expenditures, the City Manager's office will make the final
determination.
(iii) SMF
(a) The Bureau will have sole authority over all expenditures from
the SMF made in compliance with the limitations prescribed by
this Agreement.
6. Funding for the SMF shall not affect the general funding percentage allocation or the associated
"true up"process set forth in the Agreement.
7. All services performed under this First Amendment are subject to all other applicable provisions
of the Agreement,including,but not limited to, Sections 9-31 of the Agreement.
8. All terms and conditions of the Agreement not addressed herein remain in full force and effect
and are binding upon the parties.
9. All terms in this First Amendment that are capitalized but not defined shall have the meanings
assigned to them in the Agreement.
IN WITNESS WHEREOF, the City and Bureau have caused this First Amendment to be
executed and delivered by their duly authorized representatives in Fort Worth, Tarrant County, Texas on
21 day of R CC VYt�Ier , 2016.
CITY OF FORT WORTH FORT WORTH CONVENTION AND
VISITORS BUREAU
By By:
Ssan Alanis R ert Jameson
Assistant City Manager resident and CEO
Contract Compliance Manager:
By signing, I acknowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuring all performance and reporting requirements.
40wlt--
Nam. 6/,Oevao o�
Title:_ 8 5 6-r D ii?e, ?Ot2
APPROVED AS TO FORM
AND LEGALIT
Tyler WallpdV
Assistant ity Attorney
Fust Amendment to CSC 44949 6 of 7
�j O
AaryJ. Kayser '
City Secretary
�AS
Authorization:
M&C Numbers: C-2648 (September 24, 2013); C-26493 (October 7, 2013); C-26800 (May 13, 2014); C-
28037 (December 13, 2016)
rv,v� t-zq ti Lolb -B(v
OFFICIAL RECORD
CITY SW MTARY
FT.WORTH,TX
First Amendment to CSC 44949 7 of 7
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
FoRTIVORTIJ
COUNCIL ACTION: Approved on 12/13/2016
DATE: 12/13/2016 REFERENCE **C-28037 LOG NAME: 25CVBAMENDMENT2016
NO..
CODE: C TYPE: CONSENT PUBLIC NO
NO
SUBJECT: Authorize Amendment to City Secretary Contract No. 44949, as Amended, an Agreement
with the Fort Worth Convention and Visitors Bureau, to Allocate $100,000.00 Into a New
Sports Marketing Fund for Specialized Sports Marketing Services (ALL COUNCIL
DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize an amendment to City Secretary Contract No.
44949, as amended, an Agreement with the Fort Worth Convention and Visitors Bureau, to allocate
$100,000.00 into a new Sports Marketing Fund for purposes of providing specialized sports
marketing services.
DISCUSSION:
The City and the Fort Worth Convention and Visitors Bureau (CVB) are parties to City Secretary
Contract No. 44949, a Professional Services Agreement under which the CVB markets and promotes
Fort Worth as a business and leisure destination (Agreement).
Funding for the CVB's general marketing and promotional activities and services is derived from a
percentage allocation of the Hotel Occupancy Tax (HOT) collections that the City receives and that
are not otherwise restricted or dedicated to a specific purpose by state law or local ordinance or
agreement. During the annual budget process, the City allocates additional HOT funds into two
special accounts to assist in attracting, maintaining, and retaining convention and equestrian-related
business at the City's public facilities—the Fort Worth Convention Center Public Facilities Fund and
the Will Rogers Memorial Center Public Facilities Fund (collective, SPFFs), along with a separate
fund to support the Fort Worth Herd.
In 2016, a sports marketing study was conducted and recognized that there was great opportunity
and need for the expansion of the sports tourism services by the CVB. It found that Fort Worth has a
sizable market with numerous positive attributes and sports tourism and events should be among the
top priorities.
To more effectively serve the sports tourism market, staff recommends allocating $100,000.00 into a
new Sports Marketing Fund (SMF), which will be used for specialized sports marketing services to
attract, secure, and host sporting events that will enhance the area's sports marketing program and
create a positive economic impact for the City of Fort Worth. Funding for the SMF would be in
addition to and fall outside of the above-stated funding models and would not affect the general
funding percentage.
The adopted Fiscal Year 2017 Budget was increased by$100,000.00 for the purpose of funding the
Sports Marketing Fund.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are available in the current Fiscal Year 2017 operating
budget of the Culture & Tourism Fund and that prior to an expenditure being made, the participating
department has the responsibility to validate available funds.
http://apps.cfwnet.org/council_packet/mc review.asp?ID=24081&councildate=12/13/2016 12/28/2016
M&C Review Page 2 of 2
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Kirk Slaughter(2501)
Additional Information Contact: Betty Tanner(2502)
ATTACHMENTS
Certificate of Interested PartiesCVB.pdf
http://apps.cfwnet.org/council_packet/mc review.asp?ID=24081&councildate=12/13/2016 12/28/2016