HomeMy WebLinkAboutOrdinance 22738-06-2017 ORDINANCE NO.22738-06-2017
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE CULTURE AND TOURISM FUND IN THE
AMOUNT OF $48,479.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF
PROVIDING A ONE-TIME FUNDING INCREASE FOR ADDITIONAL,
UNEXPECTED EXPENSES RELATED TO THE MANAGEMENT,
ADMINISTRATION, AND OPERATION OF THE FORT WORTH HERD.;
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 2016-2017 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$48,479.00, from available funds,for the purpose of providing a
one-time funding increase for additional, unexpected expenses related to the management, administration,
and operation of the Fort Worth Herd.
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. 22393-09-2017 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of said prior ordinances and appropriations are hereby expressly repealed.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<G ITY:
Tyler Wallac , ss' tant City ttorney Mary J. Kaye C Sec ry
ADOPTED AN EFFECTIVE:June 6.2017
Ordinance No.22738-06-2017
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/6/2017 -Ordinance No. 22738-06-2017
DATE: Tuesday, June 6, 2017 REFERENCE NO.: **C-28257
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SUBJECT:
Authorize Execution of a Supplemental Letter Agreement with the Fort Worth Convention and Visitors
Bureau to Provide a One-Time Funding Increase in the Amount of$57,000.00 for Additional, Unexpected
Expenses Related to the Management, Administration and Operation of the Fort Worth Herd and Adopt
Appropriation Ordinance (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a supplemental Letter Agreement with the Fort Worth Convention and Visitors Bureau to
provide a one-time funding increase in the amount of$57,000.00 for additional, unexpected expenses
related to the management, administration and operation of the Fort Worth Herd per Fort Worth City
Secretary Contract No. 44949; and
2. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and
appropriations in the Culture and Tourism Fund in the amount of$48,479.00 from revenues generated
from the annual funding reconciliation process with the Fort Worth Convention and Visitors Bureau.
DISCUSSION:
The City and Fort Worth Convention and Visitors Bureau (Bureau) are currently parties to a Professional
Services Agreement concerning the marketing and promotion of the City, said Agreement being City
Secretary Contract No. 44949 dated effective as of October 1, 2013 (as amended to date, the Marketing
Agreement). As part of the Marketing Agreement, the Bureau has committed to managing, administering
and ensuring the continued operation of the Fort Worth Herd (Herd) in a manner that maintains the
integrity and public good will associated with the Herd program and brand. Annual funding for the Herd is
based upon the Bureau's budget submissions and available funds to support the Herd. For Fiscal Year
2017, the City allocated $876,564.00 to the Bureau for the Herd operations.
Since 1999, the Herd has been headquartered out of, and conducting daily cattle drives in, the Fort Worth
Stockyards (Stockyards). As a result of planned redevelopment activities in the Stockyards, the Herd has
been temporarily displaced from its current headquarters in the Stockyards. As part of the City's ongoing
obligation under the Marketing Agreement to assist the Bureau in whatever manner is needed to ensure
the continued integrity, successful operation, and long-term viability of the Herd program and brand, the
City recently agreed to license the former mounted police patrol site located at 2500 N. Houston Street
(Temporary Herd Site) for temporary housing of livestock and storage associated with the Herd until
construction of the Herd's new facility in the Stockyards is completed (City Secretary Contract No.
48522).
The Herd's move to the Temporary Herd Site has resulted in $117,041.69 in additional expenses on the
part of the Bureau, including upgrades to the Temporary Herd Site. The Friends of the Fort Worth HERD,
Logname: 25CVBAMENDMENT2017_FYI6TRUEUPAPPROP Page 1 of 2
a support group for the HERD, has raised and committed $60,000.00 towards those expenses, with the
City committing the remaining $57,000.00. The remaining $57,000.00 in expenditures are necessary to
maintain the integrity and public good will of the Herd program and brand because they relate directly to
the Bureau's ability to manage, administer and operate the Herd. In recognition of the Bureau's ongoing
obligation to manage, administer and ensure the continued operation of the Herd in a manner that
maintains the integrity and good will associated with the Herd program and brand and the City's obligation
to assist the Bureau to achieve these goals, Staff recommends increasing the Bureau's Herd funding for
Fiscal Year 2017 by $57,000.00 to a total of$933,564.00. The Bureau may expend said funds to fulfill any
of its Herd obligations under the Marketing Agreement.
Funding for the Bureau's general marketing and promotional activities and services under the Marketing
Agreement 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 to
support the Herd. Per the Marketing Agreement, payment to the Bureau for each fiscal year is calculated
during the budget process based on projected HOT collections and is paid in equal installments over the
course of the year. After the close of the fiscal year, the actual HOT collections are compared to the
budgeted projections and adjustments are made to true-up the funding. For Fiscal Year 2016, the City
received $48,479 from the Bureau as part of the true-up.
This additional expense is unbudgeted in the adopted Fiscal Year 2017 Public Events budget. The
expense to the Bureau will be increased by $57,000.00 for the purposes stated herein, but will be partially
offset by additional appropriations of$48,479.00 as a result of the Fiscal Year 2016 funding reconciliation
between the City and the Bureau as part of the Marketing Agreement. The net effect will be $8,521.00 in
additional departmental spending, which is anticipated to be offset by savings in the Public Events
Department's operating maintenance center.
This property is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, 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.
FUND IDENTIFIERS (FIDs):
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CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Kirk Slaughter (2501)
Additional Information Contact: Stacey Church (2502)
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