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HomeMy WebLinkAboutOrdinance 23838-09-2019 ORDINANCE NO. 23838-09-2019 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS FOR THE COSTS OF CERTAIN IMPROVEMENTS AND SERVICES BENEFITTING PROPERTIES IN PUBLIC IMPROVEMENT DISTRICT 18 — TOURISM DURING FISCAL YEAR 2019-2020; SETTING CHARGES AND LIENS AGAINST PROPERTY IN THE DISTRICT AND AGAINST THE OWNERS THEREOF; PROVIDING FOR THE COLLECTION OF THE SPECIAL ASSESSMENTS; PROVIDING FOR DUE DATES, PENALTIES, AND INTEREST; PROVIDING FOR RELIANCE ON ORDINANCE AND RECITALS IN EVENT OF A SUIT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING THAT ORDINANCE IS CUMULATIVE OF ALL NON-CONFLICTING PRIOR ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 372 of the Texas Local Government Code authorizes the creation of a public improvement district consisting of non-contiguous territory in which is located hotels meeting certain criteria, with owners/operators of such hotel properties being subject to assessment to pay for the services and benefits provided by the district; and WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Public Improvement District No. 18 - Tourism (the "PID") in accordance with Section 372.0035 and other applicable sections of Chapter 372, Texas Local Government Code; and WHEREAS, under Section 372.013, Texas Local Government Code, the City Council annually must review and approve the annual budget for special, supplemental services to be provided in the PID (the "Services") and to determine the amount of assessment that is to be levied against property in the PID in order to pay for the costs of such services; and WHEREAS, the Services to be provided in Fiscal Year 2019-2020 and their estimated costs are as follows: Incentives and Sales Efforts $2,167,873.00 Marketing and Research $1,785,307.00 Customer Engagement and Market Strategy $ 510,088.00 Cultural Enhancements through Marketing and Promotion of the Arts $ 382,566.00 Operations and Administration $ 255,044.00 City Administrative Fee $ 55,000.00 Total Budget Expenses $5,155,878.00 Estimated Operating Reserve $0 Total Expenses $5,155,878.00 The total budgeted cost of the Services is $5,155,878.00, the entirety of which will be funded Ordinance No.23838-09-2019 Page 1 of 7 by special assessments on the owners/operators of PID hotels with 100 or more rooms, with such assessments being in an amount equal to two percent of revenues that the hotels receive from taxable hotel room night charges and with the names of such hotels being listed in Exhibit "A," which is attached hereto and hereby made a part of this Ordinance for all purposes (such properties hereinafter being referred to as "Hotel Parcels" and the hotels located thereon being referred to as "Qualifying Hotels"); and WHEREAS, the Texas Comptroller of Public Accounts has indicated that owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a mandatory charge that is subject to state and local hotel tax(Texas Comptroller Opinion Letter 201111277L,November 8, 2011); and WHEREAS, it is proposed that the owners/operators of the Hotel Parcels located in the PID be assessed at a rate of two percent(2%) of the consideration received from occupancy of any sleeping room furnished by Qualifying Hotels, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article 11 of the City Code; and WHEREAS, the Services and proposed assessments were previously presented in public hearings conducted by the City Council beginning at 7:00 p.m. on both September 10, 2019 (M&C 13FMS PID 18FY20 BENEFIT) and September 17, 2019 in the City Council Chambers in City Hall in the City of Fort Worth, Texas (the "Public Hearings"); and WHEREAS,notice of Public Hearings was published and mailed in accordance with state law, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing. NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. The Public Hearings are hereby closed, and any and all protests and objections,whether herein enumerated or not, are hereby overruled. SECTION 2. The City Council, from all evidence before it, including all information provided to it and considered in the Public Hearings, finds that the assessments described herein on Hotel Parcels should be made and levied in a manner that results in imposing the costs of the Services on Qualifying Hotels that are similarly benefitted from the provision of those Services. The apportionment of those costs will be based on the special benefits accruing to the Qualifying Hotels on account of the Services provided. As a result, those Qualifying Hotels that sell more guest rooms will pay a greater portion of the costs of the Services because those properties will have received a greater benefit from the promotions and marketing comprising the Services. The City Council further finds that this method of Ordinance No.23838-09-2019 Page 2 of 7 assessment is fair and equitable and results in an apportionment of the costs of the Services that complies with applicable law. SECTION 3. In accordance with Section 372.017, Texas Local Government Code, in order to pay the costs of the Services provided during Fiscal Year 2019-2020, effective October 1, 2019 the City hereby levies a special assessment against owners/operators of the Hotel Parcels in an amount equal to two percent (2%) of the consideration received from the occupancy of any sleeping room furnished by Qualifying Hotels, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code. SECTION 4. The assessments levied hereunder, together with reasonable attorney's fees and cost of collection, if incurred, are hereby declared to be and are made a lien upon the Hotel Parcels and Qualifying Hotels, and are a personal liability and charge against the real and true owners of such properties, whether such owners are correctly named herein or not. Such liens shall be and constitute the first enforceable lien and claim against the Hotel Parcels and Qualifying Hotels,superior to all other liens and claims, except state, county, school district and city ad valorem taxes. A copy of this Ordinance may be filed with the County Clerk of each county in which a Hotel Parcel and Qualifying Hotel are located, and when so filed shall constitute complete and adequate legal notice to the public concerning the liens hereby assessed against the respective parcels of property and the owners thereof. The sums assessed against the Hotel Parcels shall be and become due at the same time that hotel occupancy taxes on the Qualifying Hotels located thereon become due, and shall become delinquent if not paid by the applicable deadlines for hotel taxes remittance established by Chapter 32, Article II of the City Code. The entire amount assessed against each Hotel Parcel shall bear penalty and interest, from and after the respective due date at the same rate as prescribed Chapter 32, Article II of the City Code, for hotel tax. SECTION 5. If default shall be made in the payment of any assessments,collection thereof shall be enforced by suit in any court of competent jurisdiction, and said City shall exercise all of its lawful powers to aid in the enforcement and collection of said assessments. SECTION 6. The total amount assessed against the respective parcels of property and the owners thereof is in accordance with the proceedings of the City hereto and is permitted by applicable law. Ordinance No.23838-09-2019 Page 3 of 7 SECTION 7. Full power to make and levy reassessments and to correct mistakes, errors, invalidities, or irregularities in the assessments are, in accordance with the law in force in this City, vested in the City. SECTION 8. In any suit upon any assessment or reassessment, it shall be sufficient to allege the substance of the provision recited in this Ordinance and that the Recitals hereto are in fact true, and further allegations with reference to the proceedings relating to such assessment and reassessment shall not be necessary. SECTION 9. 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 shall remain in full force and effect. SECTION 10. This Ordinance shall be cumulative of 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 11. This Ordinance shall take effect and be in full force and effect from and after the date of its passage. AND IT IS SO ORDAINED. APPROVED AS TO FORM AND LEGALITY: ATTEST: Tyler F. all , Assistant City Attorney a r, ity Secretary M&C: 19-0152 0RT % ............. O oxAdopted: September 17, 2019 ���' ,A�► TE Ordinance No.23838-09-2019 Page 4 of 7 EXHIBIT "A" QUALIFYING HOTELS IN THE TOURISM PID Account Name Address City,State,Zip RMS Aloft Downtown Fort Worth 300 W. 3rd St. Fort Worth,TX 180 76102 American Airlines Training and Conference 4200 American Blvd 76155 Fort Worth,TX 299 Center 76155 Autograph Collection Downtown Fort Worth 512 Main St. Fort Worth,TX 165 76102 Budget Suites of America - Fossil Creek 3500 NE Loop 820 Fort Worth,TX 366 76137 Candlewood Suites- DFW South 4200 Reggis Drive Fort Worth,TX 174 76155 Courtyard by Marriott-Alliance 3001 Amador Dr. Fort Worth,TX 127 76177 Courtyard by Marriott- Blackstone 601 Main Street Fort Worth,TX 203 76102 Courtyard by Marriott- Fossil Creek 3751 NE Loop 820 Fort Worth,TX 154 76137 Courtyard by Marriott-Stockyards 2537 Main St. Fort Worth,TX 124 76164 Courtyard by Marriott- University Drive 3150 Riverfront Fort Worth,TX 130 76107 Courtyard by Marriott-West at Cityview 6400 Overton Ridge Fort Worth,TX 104 Boulevard 76132 Crossland Economy Studios- Fossil Creek 3804 Tanacross Fort Worth,TX 124 76137 Dalworth Inn 812 E. Felix Street Fort Worth, TX 120 76115 DFW Airport Marriott South 4151 Centreport Boulevard Fort Worth, TX 295 76155 DFW Marriott Hotel and Golf Club at 3300 Championship Pkwy Fort Worth,TX 286 Champions Circle 76177 Embassy Suites Hotel- Downtown Fort 600 Commerce Street Fort Worth, TX 156 Worth 76102 Extended Stay America-City View 5831 Overton Ridge Blvd Fort Worth, TX 104 76132 Ordinance No.23838-09-2019 Page 5 of 7 Fairfield Inn &Suites Downtown 1010 Houston Fort Worth,TX 110 76102 Fairfield Inn&Suites Fossil Creek 3701 NE Loop 820 Fort Worth,TX 106 76137 Hampton Inn and Suites- West/1-30 2700 Green Oaks Fort Worth,TX 105 76177 Hampton Inn and Suites- DFW South 4201 Reggis Court Fort Worth,TX 116 76155 Hampton Inn and Suites Downtown Fort 210 E.9th Street Fort Worth,TX 245 Worth 76102 Hawthorn Suites- University 1701 South University Fort Worth,TX 120 Drive 76107 Hilton Fort Worth 815 Main Street Fort Worth,TX 294 76102 Hilton Garden Inn - Fort Worth Alliance 2600 Westport Parkway Fort Worth,TX 127 Airport 76177 Hilton Garden Inn -Medical Center 912 Northton Street Fort Worth,TX 157 76104 Holiday Inn - DFW Airport South 14320 Centre Station Road Fort Worth,TX 143 76155 Holiday Inn Express- Downtown 1111 W Lancaster Fort Worth,TX 132 76102 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 126 76106 Homewood Suites- Fossil Creek 3701 Tanacross Fort Worth,TX 137 76137 Homewood Suites- Medical Center 2200 Charlie Lane Fort Worth,TX 157 76104 Hyatt Place-Cityview 5900 Cityview Street Fort Worth,TX 127 76132 Hyatt Place -Stockyards 132 E Exchange Fort Worth,TX 100 76164 La Quinta Inn and Suites- Fort Worth North 4700 North Street Fort Worth,TX 133 76137 La Quinta Inn and Suites-Southwest 4900 Bryant Irvin Fort Worth,TX 128 76132 Omni Fort Worth Hotel 1300 Houston Fort Worth,TX 614 76102 Quality Inn and Suites-Cattle Baron 2700 S Cherry Lane Fort Worth,TX 109 76116 Radisson - Fort Worth South Hotel 100 Alta Mesa East Fort Worth,TX 247 76134 Ordinance No.23838-09-2019 Page 6 of 7 Radisson Hotel- Fort Worth Fossil Creek 2540 Meacham Street Fort Worth,TX 247 76106 Residence Inn-Alliance Airport 13400 North Freeway Fort Worth,TX 111 76177 Residence Inn -Cultural District 2500 Museum Way Fort Worth,TX 150 76107 Residence Inn - Fossil Creek 5801 Sandshell Drive Fort Worth,TX 114 76137 Sheraton Fort Worth Hotel and Spa 1701 Commerce Street Fort Worth,TX 429 76102 SpringHill Suites by Marriott- University 3250 Lovell Street Fort Worth,TX 145 76107 Stay Express Hotel Fort Worth 2000 Beach Street Fort Worth,TX 168 76111 TownePlace Suites Downtown 805 E Belknap Fort Worth,TX 140 76102 TownePlace Suites University W.Vickery&Trinity Street Fort Worth,TX 128 76107 WoodSpring Suites Fort Worth 3501 NE Loop 820 Fort Worth,TX 121 76137 Worthington Renaissance Hotel 200 Main Street Fort Worth,TX 504 76102 Ordinance No.23838-09-2019 Page 7 of 7 m rn in a a O m N O 000 -i V o ccl L V d O V r- Ln m a V y jp F% C oc v V -- r rn Eol- v m1`i m v - N v Ob N W N N N N N N N N Ol lD 1- V1 O N O m a � v - ll o^oo a N y C N 1, oo oo Vl N 1\ Ln m Ln Ln m NNC Vl 1-- ul m N N ri E r+i N I� •N Ln W N N N N N N N N lD m O n c0 W O lD LD v ,-, a v� w ll C lD l0 rn :: o m so N a Ln rn N c0 lo c m lD Vl m of •N W N N N N N N N N m ti Ln N lD O o m a-I 9 oc Vl O N Vl O e-I Ln oo Ln Ln Ln lfl lD .-w l0 W L l W N Vl lD ry Vl M 1, N ID V m N o a E ; N 6 N UI W N N N N N N N N Ln V LnN o o V u l a N rn o m N L N N 1p E N N LD C w Y C N N N N N N N N d Ol V c0 N o co > nl M � 0/ o lWD 001 V Del Val Va O l aN Ol m u7 O Ln V N Ol E O Ln E N N V1 N V W u .0 N N N N N N N N doo O N O O O oo oo o E O rl m n c oo N O oo N e-I c-I Vl oo VI N 1- a+ CT lD lD N 00 Vl 1- 3 lD m al Ln V N LrD N Ln E ry u; O N W L N tN tN tN tN tN tN tN 3 N lD rl O O O O N O N Vl Vl C O l-1 ate+ n n m O l^D m 20 ry V A N o Vi V N V LL o Lr E rq N ul N W N N N N N N N N co m 1- co lD a O oo 1- 1l 0 oo lD O 1- m oc m C vl C o0 Ln N 1- Ln O N V1 V1 V1 p 0^0 om0 N vl N N UI W N N N N N N N N C > 10 Oq to N C m i7 ILp � a+ Y N y CCm C - L L O O wm W - G u v o w `o �_ Ii C i+ 0 C N N E 61 f. fL W V E O 9 W m E ¢ 10 01 to 10 C +' C C t O A N a A W c c � ;c �+ W O D E c E 0 y Y O E ¢ ,. u 17 > > OL a Z. E u u a 0 0 Tourism PID Hotels Account Name Address City,State,Zip RMS Aloft Downtown Fort Worth 300 W.3rd St. Fort Worth,TX 76102 180 American Airlines Training and Conference Center 4200 American Blvd 76155 Fort Worth,TX 76155 299 Autograph Collection Downtown Fort Worth 512 Main St. Fort Worth,TX 76102 165 Budget Suites of America-Fossil Creek 3500 NE Loop 820 Fort Worth,TX 76137 366 Candlewood Suites-DFW South 4200 Reggis Drive Fort Worth,TX 76155 174 Courtyard by Marriott-Alliance 3001 Amador Dr. Fort Worth,TX 76177 127 Courtyard by Marriott-Blackstone 601 Main Street Fort Worth,TX 76102 203 Courtyard by Marriott-Fossil Creek 3751 NE Loop 820 Fort Worth,TX 76137 154 Courtyard by Marriott-Stockyards 2537 Main St. Fort Worth,TX 76164 124 Courtyard by Marriott-University Drive 3150 Riverfront Fort Worth,TX 76107 130 Courtyard by Marriott-West at Cityview 6400 Overton Ridge Boulevard Fort Worth,TX 76132 104 Crossland Economy Studios-Fossil Creek 3804 Tanacross Fort Worth,TX 76137 124 Dalworth Inn 812 E.Felix Street Fort Worth,TX 76115 120 DFW Airport Marriott South 4151 Centreport Boulevard Fort Worth,TX 76155 295 DFW Marriott Hotel and Golf Club at Champions Circle 3300 Championship Pkwy Fort Worth,TX 76177 286 Embassy Suites Hotel-Downtown Fort Worth 600 Commerce Street Fort Worth,TX 76102 156 Extended Stay America-City View 5831 Overton Ridge Blvd Fort Worth,TX 76132 104 Fairfield Inn&Suites Downtown 1010 Houston Fort Worth,TX 76102 110 Fairfield Inn&Suites Fossil Creek 3701 NE Loop 820 Fort Worth,TX 76137 106 Hampton Inn and Suites- WesU1-30 2700 Green Oaks Fort Worth,TX 76177 105 Hampton Inn and Suites-DFW South 4201 Reggis Court Fort Worth,TX 76155 116 Hampton Inn and Suites Downtown Fort Worth 210 E.9th Street Fort Worth,TX 76102 245 Hawthorn Suites-University 1701 South University Drive Fort Worth,TX 76107 120 Hilton Fort Worth 815 Main Street Fort Worth,TX 76102 294 Hilton Garden Inn-Fort Worth Alliance Airport 2600 Westport Parkway Fort Worth,TX 76177 127 Hilton Garden Inn-Medical Center 912 Northton Street Fort Worth,TX 76104 157 Holiday Inn-DFW Airport South 14320 Centre Station Road Fort Worth,TX 76155 143 Holiday Inn Express-Downtown 1111 W Lancaster Fort Worth,TX 76102 132 Holiday Inn North-Fossil Creek 4635 Gemini Place Fort Worth,TX 76106 126 Homewood Suites-Fossil Creek 3701 Tanacross Fort Worth,TX 76137 137 Homewood Suites-Medical Center 2200 Charlie Lane Fort Worth,TX 76104 157 Hyatt Place-Cityview 5900 Cityview Street Fort Worth,TX 76132 127 Hyatt Place-Stockyards 132 E Exchange FortWorth,TX 76164 100 Tourism PID Hotels Account Name Address City,State,Zip RMS La Quinta Inn and Suites-Fort Worth North 4700 North Street Fort Worth,TX 76137 133 La Quinta Inn and Suites-Southwest 4900 Bryant Irvin Fort Worth,TX 76132 128 Omni Fort Worth Hotel 1300 Houston Fort Worth,TX 76102 614 Quality Inn and Suites-Cattle Baron 2700 S Cherry Lane Fort Worth,TX 76116 109 Radisson-Fort Worth South Hotel 100 Alta Mesa East Fort Worth,TX 76134 247 Radisson Hotel-Fort Worth Fossil Creek 2540 Meacham Street Fort Worth,TX 76106 247 Residence Inn-Alliance Airport 13400 North Freeway Fort Worth,TX 76177 111 Residence Inn-Cultural District 2500 Museum Way Fort Worth,TX 76107 150 Residence Inn-Fossil Creek 5801 Sandshell Drive Fort Worth,TX 76137 114 Sheraton Fort Worth Hotel and Spa 1701 Commerce Street Fort Worth,TX 76102 429 SpringHill Suites by Marriott-University 3250 Lovell Street Fort Worth,TX 76107 145 Stay Express Hotel Fort Worth 2000 Beach Street Fort Worth,TX 76111 168 TownePlace Suites Downtown 805 E Belknap Fort Worth,TX 76102 140 TownePlace Suites University W.Vickery&Trinity Street Fort Worth,TX 76107 128 WoodSpring Suites Fort Worth 3501 NE Loop 820 Fort Worth,TX 76137 121 Worthington Renaissance Hotel 200 Main Street Fort Worth,TX 76102 504 City of Fort Worth, Texas Mayor and Council Communication DATE: 09/17/19 M&C FILE NUMBER: M&C 19-0152 LOG NAME: 13FMS PID18FY20 S BJECT Conduct Public Benefit Hearing for Fort Worth Public Improvement District No. 18-Tourism,Approve Fiscal Year 2019-2020 Budget in the Amount of$5,155,878 and Eight-Year Service Plan,Approve Assessment Roll,Adopt Ordinance Levying Special Assessments for Fiscal Year 2020,and Adopt Appropriation Ordinance(ALL COUNCIL DISTRICTS)(PUBLIC HEARING-a.Report of City Staff:Tony Rousseau;b.Citizen Presentations;c.Council Action:Close Public Hearing and Approve the M&C) RECOMMENDATION: It is recommended that the City Council: 1.Conduct a public benefit hearing concerning the proposed special assessments on property located in Public Improvement District 18-Tourism for Fiscal Year 2019-2020; 2.Approve the attached Fiscal Year 2019-2020 Budget in the amount of$5,155,878 and Eight-Year Service Plan for Public Improvement District 18-Tourism; 3.Approve the Assessment Roll for Public Improvement District 18-Tourism,on file with the City Secretary; 4.Adopt the attached ordinance levying special assessments on property located in Public Improvement District 18-Tourism for Fiscal Year 2019- 2020;and 5.Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Tourism PID Fund for Fiscal Year 2019- 2020 in the amount of$5,155,878,from available funds. DISCUSSION: On August 29,2017,the City Council adopted Resolution No.4837-08-2017,establishing Public Improvement District 18-Tourism(Tourism PID). The purpose of this benefit hearing is to receive comments from the public regarding the Fiscal Year 2019-2020 budget and eight-year service plan for the Tourism PID and the proposed assessments to be levied on each property in the Tourism PID for the 2019 tax year.Following the public hearing,it is recommended that the City Council take the following actions:(a)approve the attached budget and eight-year service plan, (b) approve the 2019 assessment roll;and(c)adopt the attached ordinances levying the proposed assessments and appropriating funds. The improvements and services to be provided in the Tourism PID during Fiscal Year 2020 and the associated costs thereof are as follows: Improvements Total Budgeted Costs Incentives&Sales Efforts $2,167,873 Marketing and Research $1,785,307 Customer Engagement and Market Strategy $510,088 Cultural Enhancements through Marketing and Promotion of the Arts$382,566 Operations and Administration $255,044 City Administrative Fee $65,000 Total Expenses $5,155,878 The total budgeted costs of the improvements and services are$5,155,878.00,all of which will be funded by the owners/operators of Tourism PID hotels with 100 or more rooms paying a special assessment at a rate of two percent of revenues they receive from a hotel room.The owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests,with such reimbursement being a mandatory charge that is subject to state and local hotel tax. On September 10,2019,the City Council conducted a public hearing to receive comments on the proposed 2019-2020 fiscal year budget,eight- year service plan,and 2019 assessments for the Tourism PID(M&C Wn.Notice of the September 10,2019,benefit hearing and this hearing were published in the Fort Worth Star-Telegram and mailed to all record hotel owners/operators in the Tourism PID on August 26,2019,in accordance with state law. In fiscal year 2018,the City entered into a contract with the Fort Worth Tourism Public Improvement District Corporation and the Fort Worth Convention and Visitors Bureau to manage the operations of the Tourism PID.The term of this agreement is commensurate with the term of the Tourism PID;thus,the Fort Worth Tourism Public Improvement District Corporation and the Fort Worth Convention and Visitors Bureau will continue to manage the operations of the Tourism PID for fiscal year 2020. The Tourism PID is located on properties in ALL COUNCIL DISTRICTS. A Form 1295 is not required for this contract because:This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations,the levy of assessments on qualified hotels will be approved and funds will be available in the Fiscal Year 2020 operating budget,as appropriated,of the Tourism PID Fund. Submitted for City Manager's Office by: Kevin Gunn 2015 Ori anating Business Unit Head: Reginald Zeno 8500 Additional Information Contact: Angela Estrada 8511