HomeMy WebLinkAboutContract 44949-AD3 CITY SECRETARY
CONTRACT NO.. CJ.. ..�
THIRD ADDENDUM TO CITY SECRETARY
CONTRACT NO.44949,A PROFESSIONAL SERVICES AGREEMENT WITH THE FORT
WORTH CONVENTION AND VISITORS BUREAU
This Third Addendum to'City Secretary Contract Number 44949 ("Third Addendum") is by
and between the City of Fort Worth, 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, 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;
WHEREAS, the parties addended the CSC 44949 twice for the purpose of funding additional
marketing and promotional services to more key markets through targeted outreach during fiscal years
2014 and 2015, the same being CSC 44949-ADI and CSC 44949-AD2 (CSC Nos. 44949, 44949-ADI,
44949-AD2 are collectively referred to herein as the "Agreement");
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, pursuant to the Agreement, the Bureau prepared its Marketing Plan outlining the
marketing services to be performed by the Bureau for fiscal year 2017-2018 based on the projected 2017
hotel occupancy funds that would be available, which was approved by the City;
WHEREAS, the Bureau desires to prepare a strategic planning guide that produces a set of goals
and a 10-year road map that will help to serve and guide future Marketing Services to be provided by the
CVB under the Agreement("Destination Master Plan");
WHEREAS, City desires to engage the Bureau to provide the Destination Master Plan, which is
beyond the scope of General Marketing and the current year's Destination Master Plan;
WHEREAS, funding for the Destination Master Plan would be in addition to and fall outside of
the funding model under the current Agreement and would not affect the ge e
allocation or the associated"true up" process; and OFFICIAL RECORD
CITY SEPRETARY
Third Addendum to CSC 44949 1 0
FT.WORTH,TX
NOW, THEREFORE, in consideration of the mutual covenants herein expressed, the parties
agree as follows:
1. For and in consideration of Fifty Thousand Dollars and No Cents ($50,000.00), the
sufficiency of which is hereby acknowledged, the Bureau agrees to prepare, or causes to be prepared, a
Destination Master Plan with the following intended goals:
a. Provide a formal, long-term plan to serve as a reference for informed, strategic
decision -making on matters related to tourism development, tourism
sustainability, tourism product development, and strategic alignment related to
Fort Worth as a tourism destination;
b. Provide specific advice and recommendations on tourism areas and product
development, including, but not limited to, infrastructure needs, the physical
environment, and carrying capacity of the destination and transportation;
C. Recommend a decision -making framework that facilitates the development of
common protocols, processes, and shared values that will lead to coordinated and
collaborative action by the community.
2. The Bureau must complete the Destination Master Plan and deliver a final version to the
City no later than September 30, 2018.
3. It is understood and agreed that the services related to the Destination Master Plan set
forth in this Third Addendum are beyond the scope of the fiscal year 2017 Marketing Plan submitted by
the Bureau and approved by the City.
4. It is further understood and agreed that funding for the services set forth in this Third
Addendum is in addition to and falls outside of the funding model under the current Agreement and shall
not affect the general funding percentage allocation or the associated "true up" process set forth in the
Agreement.
5. All services performed under this Third Addendum are subject to all other applicable
provisions of the Agreement, including, but not limited to, Sections 9-31 of the Agreement.
6. All terms and conditions of the Agreement not addressed herein remain in full force and
effect and are binding upon the parties.
7. All terms in this Third Addendum 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 Third Addendum to be
executed and delivered by their duly authorized representatives in Fort Worth, Tarrant County, Texas on
<'� 7/7 day of `Yi- kn h,11k- , 2017.
1,
Third Addendum to CSC 44949 2 of 3
CITY OF FORT WORTH FORT WORTH CONVENTION AND
VISITORS BUREAU
By: By: R4,-.t–
t A-C"
U�usan Alanis Robert Jameson
Assistant City Manager President and CEO
APPROVAL RECOMMENDED:
By:
—4�4—
Kirk Slaughter
Director of Public Events
APPROVED AS TO FORM
AND�LEGAL
Tyler W ch
Assista City ttorney
ATT of FART
V, :O
a y J. Kayser
City Secretary ;;•�•.•
j` AS
Authorization:
M&C Numbers: C-2648 (September 24, 2013); C-26493 (October 7, 2013); C-26800 (May 13, 2014)
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH,TX
Third Addendum to CSC 44949 3 of 3
Contract Compliance Manager:
By signing I acknowledge that I am the person responsible for monitoring and administration of
this contract, including ensuring all performance and reporting requirements.
Name of Employee
Title
This formANIs No City Funds are associated with this Contract
JJT
Printed Name C
Signature
M&C Review Page 1 of 2
Official site of the City of Fort Worth, Texas
CITY COUNCIL AGENDA FORTTH
�WO _
COUNCIL ACTION: Approved on 10/7/2013
DATE: 10/7/2013 REFERENCE C-26493 LOG NAME: 25CVB14AGMTAMENDED
NO.:
CODE: C TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Correction of Mayor and Council Communication C-26483 to Change the
Amount of the Agreement with the Fort Worth Convention and Visitors Bureau from the
Amount of $9,159,607.00 to the Estimated Amount of $9,180,091.00 for Fiscal Year 2014
(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the correction of Mayor and Council Communication
C-26483 to change the amount of the Agreement with the Fort Worth Convention and Visitors Bureau from
the amount of $9,159,607.00 to the estimated amount of $9,180,091.00 for Fiscal Year 2014.
DISCUSSION:
On September 24, 2013, (M&C C-26483) the City Council authorized the execution of the Professional
Services Agreement with the Fort Worth Convention and Visitors Bureau to market and promote Fort Worth
for a term of five years with two one-year options. The amount of the Agreement was incorrect. The
correct budgeted amount for Fiscal Year 2014 is in the amount of $9,180,091.00 and represents a base
budget amount of $7,806,966.00 (47 percent of unrestricted Hotel Occupancy Tax revenue), plus Special
Public Facilities Funds in the amount of $690,000.00, plus the Fort Worth Herd funding in the amount of
$683,125.00.
The remaining elements of M&C C-26483 remain the same and are reflected in the appropriated Fiscal
Year 2013-2014 Culture and Tourism Budget.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available, as appropriated, in the
Fiscal Year 2013-2014 Culture and Tourism Fund.
TO Fund/Account/Centers
Submitted for Citv Manaqer's Office by
Oriqinatinq Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
GG04
539120
0241000
$8.496,966.00
GG04
539120
0241001
$669.105.00
GG04
522140
0241001
$199.00
GG04
523200
0241001
$3.796.00
GG04
537030
0241001
$7.260.00
GG04
537060
0241001
$2.765.00
Susan Alanis (8180)
Kirk Slaughter (2501)
Betty Tanner (2502)
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ATTACHMENTS
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Official site of the City of Fort Worth, Texas
CITY COUNCIL AGENDA FO_RTR�TH_
COUNCIL ACTION: Approved on 9/24/2013 - Corrected by M&C C-26493 on October 7, 2013
DATE: 9/24/2013 REFERENCE C-26483 LOG NAME: 25CVB14CONTRACT
NO..
NOW PUBLIC
CODE: C TYPE: CONSENT HEARING: NO
SUBJECT: Authorize Execution of a Professional Services Agreement with the Fort Worth Convention
and Visitors Bureau to Market and Promote Fort Worth for a Term of Five Years in the
Amount of $9,159,607.00 for Fiscal Year 2014 (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Professional Services
Agreement with the Fort Worth Convention and Visitors Bureau to market and promote Fort Worth as
a premier business and leisure destination for the benefit of Fort Worth's hospitality industry and the
local economy for a term of five years with two one year renewal options in the amount of
$9,159,607.00 for Fiscal Year 2014.
L�]I+Y�l�b�9[�7►�
The purpose of this Mayor and Council Communication is to authorize execution of a new Agreement
with the Fort Worth Convention and Visitors Bureau to provide promotional and marketing services
funded by Municipal Hotel Occupancy Tax (HOT) revenues.
State law authorizes a city to contract with another entity to manage and supervise programs or
activities funded with revenue from the HOT. In accordance with this authority, the City and the Fort
Worth Convention and Visitors Bureau (CVB) have entered into a series of Agreements for the
Bureau to perform professional services for the City for HOT -funded marketing programs and
activities. The current Agreement (City Secretary Contract No. 36003) will expire on September 30,
2013.
Over the course of the last few months, Staff and members of the CVB Board of Directors have been
negotiating a new contract. Changes from previous Agreements include revision of the marketing
provisions to reflect the growing importance of social media and digital publications in the marketing
process and clarification in funding provisions to more clearly delineate the three-part structure of the
CVB funding. Key provisions of the proposed new contract include the following:
1. General Fundinq - The CVB will be required to provide general marketing and promotional
activities and services for the City, with payment for such services being based on 47 percent of the 7
percent HOT collections and being paid in 12 equal monthly installments based on budget projections
of HOT revenues. At the end of each fiscal year, a "true up" process will occur to determine whether
the actual HOT collections deviated from budget projections. If a deviation is discovered, it will be
apportioned between the Bureau and the City on the same 47 percent to 53 percent Bureau -to -City
ratio. Rather than requiring either party to make a lump -sum payment to bring the previous fiscal
year's funding in line with actual receipts, the deviations will be corrected through a series of
adjustments in the next year's payments to the CVB.
2. Fundina for the Soecial Public Facilities Funds - The CVB will maintain two funds to assist in
attracting, maintaining and retaining tourism and convention business in Fort Worth - the Fort Worth
Convention Center Public Facilities Fund and the Will Rogers Memorial Center Public Facilities Fund
(collectively, SPFFs). The contract calls for the City to allocate up to the amount of $480,000.00 per
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fiscal year for the Fort Worth Convention Center SPFF and up to the amount of $210,000.00 per
fiscal year for the Will Rogers Memorial Center SPFF with funding for the SPFFs being in addition to
the General Funding and subject to appropriation by the City Council during the annual budget
process.
3. Fundina for the Fort Worth Herd - In 2009, the CVB assumed responsibility for management of the
promotional and marketing program known as the Fort Worth Herd (Herd). The proposed contract
calls for funding for the Herd operations to be in the amount of $683,125.00 for Fiscal Year 2013-
2014, with the understanding that the Bureau may request additional amounts based on
demonstrated operational need and the availability of funds. Funding for subsequent fiscal years
shall be agreed upon annually based upon the CVB's budget submissions and available funds to the
support the Herd. Herd funding is separate and apart from General Funding and SPFF funding.
Recap of Funding for Fiscal Year 2013-2014: Base Budget in the amount of $7,806,966.00 (47
percent of unrestricted HOT revenue) plus SPFFs in the amount of $690,000.00 plus Herd Funding in
the amount of $683,125.00 for a total amount of $9,159,607.00.
4. Term - The initial term of the contract will be for five years beginning on October 1, 2013 and
expiring on September 30, 2018, with the option to extend the contract for two additional one-year
periods.
5. Marketina Plan - On a yearly basis, the CVB will develop and submit to the City a Marketing Plan
that will include the services to be performed by the CVB in the upcoming fiscal year and include
measurable performance criteria. The Marketing Plan will be consistent with the CVB's mission to
market and promote Fort Worth as a premier business and leisure destination, so as to enrich Fort
Worth's hospitality industry and the community's economy. In furtherance of that mission, the primary
responsibilities of the CVB are to promote conventions, trade shows, meetings and long-term
equestrian events at the City's public facilities with the intent to maximize facility revenues, hotel
occupancy tax, sales tax and use of the City's public facilities. The Marketing Plan will provide the
instruments to evaluate the services provided under the contract.
6. Budaet Plan - On a yearly basis, the Bureau will be required to submit to the City, for
consideration and approval, a proposed written budget plan indicating the following: (i) the proposed
funding for the General Funding, the SPFFs and the Herd and (ii) the projected available HOT collections
for the ensuing fiscal year and any amounts available in the Bureau's reserve fund and available
funding for the SPFFs.
7. Board of Directors - The contract terms allow for the City Manager to serve as an ex-officio non-
voting member of the Bureau's Executive Committee and City Manager, Assistant City Manager and
the Director of Public Events to serve as ex-officio non -voting members of the Bureau's Board of
Directors. In addition, the contract calls for two Council Members or appointees to serve as voting
members on the CVB's Board of Directors with at least one of these individuals also serving on the
CVB's Executive Committee.
8. Termination - The contract will include a provision allowing either party to terminate the Agreement
with 90 days notice.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available, as appropriated, in the Fiscal Year 2013-2014
Culture and Tourism Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG04 539120 0241001 $669,105.00
GG04 522140 0241001 $199.00
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Submitted for Citv Manager's Office bv:
Oriainatina Department Head:
Additional Information Contact:
ATTACHMENTS
GG04 523200 0241001
GG04 537030 0241001
GG04 537060 0241001
GG04 539120 0241000
Susan Alanis (8180)
Kirk Slaughter (2501)
Betty Tanner (2502)
$3.796.00
$7.260.00
$2,765.00
$8,496,966.00
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18725&councildate=9/24/2013 11 / 1 /2017