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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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 Page 1 of 1 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 LOG NAME: 25CVBAMENDMENT2017 FY16TRUEUPAPPROP 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): TO epartment ccoun Project Program ctivity Budget Reference # r7!� moun ID ID Year Chartfield 2 FROM Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chart field 2 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Kirk Slaughter (2501) Additional Information Contact: Stacey Church (2502) Logname: 25CVBAMENDMENT2017 FYI6TRUEUPAPPROP Page 2 of 2