HomeMy WebLinkAboutContract 44949-AD1 (2)CITY
SECRETARY
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FIRST ADDENDUM TO CITY SECRETARY
CONTRACT NO. 44949, A PROFESSIONAL SERVICES AGREEMENT WITH THE
FORT WORTH CONVENTION AND VISITORS BUREAU
This _FirstAddendum to Cit_yecr_etary Contract Number 44949 ("First 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, the City and Bureau are parties to City Secretary Contract Number 44949
("Agreement"), a professional services agreement under which the Bureau markets and promotes
Fort Worth as a business and leisure destination;
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
services to be performed by the Bureau for the upcoming fiscal year;
WHEREAS, funding for the Bureau's general marketing and promotional activities and
services is derived from a percentage allocation of hotel occupancy tax collections that are not
otherwise restricted or dedicated to a specific purpose by state law, local ordinance, or
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 a marketing plan outlining
the marketing services to be performed by the Bureau for fiscal year 2014 based on the projected
2014 hotel occupancy funds that would be available, which was approved by the City;
WHEREAS, following execution of the Agreement, final accounting of the 2013 hotel
occupancy collections showed that they exceeded projection for the period;
WHEREAS, because the 2013 hotel occupancy tax collections relate to a period prior to
the current Agreement, they are not subject to the Agreement's percentage allocation;
WIIEREAS, City desires to engage the Bureau to provide additional marketing services
that are beyond the scope of the current year's marketing plan, including targeted outreach to key
markets in particular additional domestic cities such as Saint Louis, Chicago, and Los Angeles
and additional international markets served by the Dallas/Fort Worth International Airport;
First Addendum to CSC 44949
•
OFFICIAL RECORf
CITY
SEt*tTARY'
FT WORTH, 7
WHEREAS, funding for these additional services would be in addition to and fall
outside of the funding model under the current Agreement and would not affect the general
funding percentage allocation or the associated "true up" process;
NOW, THEREFORE, in consideration of the mutual -covenants herein expressed; the
parties agree as follows:
1. For and in consideration of One Hundred Fifty Thousand Dollars and No Cents
($150,000.00), the sufficiency of which is hereby acknowledged, the Bureau agrees to market
and promote Fort Worth to more key markets through targeted outreach during fiscal year 2014,
which specifically include the following services:
a. Bureau shall conduct digital advertising campaigns in additional target
domestic cities such as Saint Louis, Missouri, Chicago, Illinois, and Los
Angeles, California; and
b. Bureau shall conduct digital advertising and public relations campaigns in
additional international markets served by the Dallas/Fort Worth
International Airport. Bureau shall work closely with the State of Texas
Department of Economic Development and Tourism and with the
Dallas/Fort Worth International Airport to identify those markets that are
demonstrating increasing interest in travel to Texas and Fort Worth.
2. The above -stated funding amount shall be paid by the City to the Bureau within
thirty (30) days after full and complete execution of this First Addendum by both parties.
3. It is understood and agreed that the marketing services set forth in this First
Addendum are beyond the scope of the fiscal year 2014 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
First Addendum shall be paid from the City's 2013 hotel occupancy tax collections, which are in
addition to and fall 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 First 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.
First Addendum to CSC 44949 2 of 3
7. All terms in this First 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 First Addendum to be
executed and • elivered by their duly authorized representatives in Fort Worth, Tarrant County,
Texas on
ay
CITY OF FORT WORTH
B
Utsdi . n Alanis
istant Manager
APPROVAL RECOMMENDED:
By:
Kirk Slaughter
Director of Public Events
istant City
APPROVED AS TO FORM
AND LEGALITY:
Tyler lack
Assistant City Attorney
ATTEST:
ary J. a
City Secit ry
, 2014.
FORT WORTH CONVENTION AND
VISITO : S BUREAU
ir.
air
B
Jameson
President and CEO
Authorization:
M&C Numbers: C-2648 (September 24, 2013); C-26493 (October 7, 2013);
2014)
First Addendum to CSC 44949
OFFICIAL RECORD
CITY SECRETARY
WORTH, TX
City of Fort Worth, Texas
Mayor an, Council Communication
COUNCIL ACTION: Approved on 5/13/2014 - Ordinance No. 21238-05-2014
DATE Tuesday, May 13, 2014
LOG NAME 25CVBALLOCATION14
SUBJECT:
Authorize Execution of an Addendum to City Secretary Contract No 44949, an Agreement with the Fort
Worth Convention and Visitors Bureau, in the Amount of $150 000.00 for Additional Marketing Services
and Adopt Supplemental Appropriation Ordinance (ALL COUNCIL DISTRICTS)
RECOMMENDATION.
It is recommended that the City Council:
REFERENCE NO.: **C-26800
1. Authorize the execution of an addendum to City Secretary Contract No. 44949, a Professional Services
Agreement, with the Fort Worth Convention and Visitors Bureau in the amount of $150,000.00 for
additional marketing services; and
2. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and
appropriations in the Culture and Tourism Fund in the amount of $150,000.00 and decreasing the
assigned Culture and Tourism Fund balance by the same amount.
DISCUSSION:
The City and the Fort Worth Convention and Visitors Bureau (CVB) are parties to City Secretary Contract
No. 44949 (M&C C-26483 and M&C C 26493), a Professional Services Agreement, under which the CVB
markets and promotes Fort Worth as a business and leisure destination. The Agreement has a term of
five years effective on October 1 2013 and requires the CVB to prepare and submit a yearly marketing
plan to the City that includes the services to be performed by the CVB for the upcoming fiscal year.
Funding for the CVB's general marketing and promotional activities and services comes from an allocation
of 47 percent 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.
Funds are payable in 12 equal monthly installments based on budget projections of HOT revenues and
subject to a yearly "true up" process that identifies deviations between actual HOT collections and budget
projections and corrects those deviations through a series of adjustments in the subsequent year's
payments.
Pursuant to the current Agreement the CVB prepared a marketing plan outlining the marketing services to
be performed by the CVB for Fiscal Year 2014 based on the projected 2014 HOT funds that would be
available and that plan was approved by the City.
Following execution of the new Agreement, final accounting of the 2013 HOT collections showed that they
exceeded projections for the period. Because these funds relate to a period prior to the current
Agreement, they are not subject to the Agreement's percentage allocation and were deposited into the
City's Culture and Tourism Fund balance.
Logname: 25CVBALLOCATION14 Page 1 of 2
Staff is recommending that the amount of $150,000.00 from these funds be used to engage CVB to
provide additional marketing services that are beyond the scope of the current year's marketing
plan. Those services would include targeted outreach to key markets in particular additional domestic
cities such as Saint Louis, Chicago and Los Angeles and additional international markets served by the
Dallas/Fort Worth International Airport.
Funding for these additional services would be in addition to and fall outside of the funding model under
the current Agreement These additional funds would not affect the above -stated general funding
percentage allocation or the associated 'true up" process. The services provided under the proposed
addendum would be in addition to those included in CVB's previously approved marketing plan for Fiscal
Year 2014, but these services would still be subject to all other applicable provisions of the Agreement,
including, but not limited to, audit, indemnity, insurance, reporting, etc.
This program serves the entire City.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon adoption of the attached supplemental
appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the
Culture and Tourism Fund Upon approval, the assigned fund balance of the Culture and Tourism Fund
will exceed the minimum reserve as outlined in the Financial Management Policy Statements.
FUND CENTERS:
TO Fund/Account/Centers
GG04 539120 0241000
FROM Fund/Account/Centers
$150.000.00 GG04 539120 0241000 $150.000.00
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Susan Alanis (8180)
Kirk Slaughter (2501)
Betty Tanner (2502)
ATTACHMENTS
1. 25CVBALLOCATION14 A014 docx (Public)
2. Copy of GG04 Projected FY2014 Fund Balance 25CVBALLOCATION14.odf (Public)
Logname: 25CVBALLOCATION14 Page 2 of 2
Ordinance No.
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE CULTURE AND TOURISM FUND IN THE AMOUNT OF $150,000.00,
DECREASING THE ASSIGNED FUND BALANCE BY THE SAME AMOUNT FOR THE
PURPOSE OF INCREASING FUNDING FOR THE FORT WORTH CONVENTION AND
VISITORS BUREAU (CVB) TO REACH MORE KEY MARKETS THROUGH TARGETED
OUTREACH; 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:
S ECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2013-2014 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 $150,000.00, decreasing the assigned fund balance by the
same amount, for the purpose of increasing funding for the Fort Worth Convention and Visitors Bureau
(CVB) to reach more key markets through targeted outreach.
S ECTION 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.
S ECTION 3.
That this ordinance shall be cumulative of Ordinance No. 20952-09-2013 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.
S ECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
Assistant City Attorney Mary J. Kayser
ADOPTED AND EFFECTIVE:
1CITY OF FORT WORTH
CULTURE AND TOURISM FUND BALANCE
SEPTEMBER 30, 2013
12012 ASSIGNED FUND BALANCE
1
IFY 2013 REVENUE
FY 2013 EXPENDITURES
2013 ESTIMATED ASSIGNED FUND BALANCE
RESERVED FOR ENCUMBRANCES (ROLLOVER ENCUMBRANCE FOR 2014)
2013 ESTIMATED ASSIGNED FUND BALANCE
ILess: Supplemental Appropriations
25FWCC Carpet Project
25MARKET STUDY M&C - C26509
25CVBALLOCATION14
Total Supplemental Appropriations
LESS: MINIMUM FUND BALANCE RESERVE
(20% of adopted budget of $35,437,069 less $8,005,794.00 for debt service)
PROJECTED }FY2014;FUND[BALANCE;
(ABOVE)`'BELOW*INIMUMFUNDBALANCE
Adopted Budget
Debt Service
Prepared by: Shobha George 04/08/14
Approved by:
CULTURE AND
TOURISM FUND
GG04
(15, 315, 898.79)
(37,887,603.42)
40,418,768.30
(12,784,733.91)
3,169, 570.00
(9,615,163.91)
583,418.00
91,000.00
150,000.00
824,418.00
(8,790,745.91)
5,486,255.00
$ (3,304,490.91IJ
1
35,437, 069.00
(8,005,794.00)
27,431,275.00
Contact:
Andrea Wright x8514 Departmental
Ann Marie Mendez x8515 Budget Department
C:\Documents and Settings\sanches\My Documents\M and C DEPT\2014\4-22-14\Copy of GG04 Projected FY2014 Fund Balance_25CVBALLOCATION14.xlsx