HomeMy WebLinkAbout2020/11/17-Attachments-M&C 20-0853City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/17/20 M&C FILE NUMBER: M&C 20-0853
LOG NAME: 25COVID19 VFW CARES ACT TOURISM RECOVERY FUNDING PHASE II
SUBJECT
(ALL) Authorize Execution of the Sixth Addendum to City Secretary Contract Number 44949, a Professional Services Agreement with the Fort
Worth Convention and Visitors Bureau, in the Amount of $600,000.00 to Implement Phase II of the Tourism Response and Recovery Plan
RECOMMENDATION:
It is recommended that the City Council authorize execution of the sixth addendum to City Secretary Contract Number 44949, a professional
services agreement with the Fort Worth Convention and Visitors Bureau, in the amount of $600,000.00 to implement Phase II of the Tourism
Response and Recovery Plan to counter the COVID-19 effects to the hospitality industry.
DISCUSSION:
The City and the Fort Worth Convention and Visitors Bureau d/b/a Visit Fort Worth (VFW) are parties to City Secretary Contract Number 44949
(as previously amended and addended), a professional services agreement, under which VFW markets and promotes Fort Worth as a business
and leisure destination (Agreement). The Agreement has an initial term that expires on October 1, 2021 and requires VFW to prepare and submit
a yearly marketing plan to the City that includes the marketing and promotional activities and services to be performed by VFW for the upcoming
fiscal year to promote the entire City and all of its facilities and amenities.
Funding for the general marketing is derived from a certain percentage allocation of hotel occupancy tax collections. Funding for the general
marketing activities are payable in twelve 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. Due to the pandemic, revenue from hotel occupancy
taxes have been severely reduced.
COVID-19 has severely damaged Fort Worth's tourism industry and with it thousands of jobs and millions in tax revenue to support City services
has been lost. Under guidance from the United States Treasury Department, organizations like VFW can use CARES funds to publicize the
resumption of business activities and steps taken to ensure a safe and healthy travel experience, which would be considered activities in response
to the COVID-19 public health crisis. VFW intends to expend up to $900,000.00 to develop a tourism response and recovery plan to counter the
COVID-19 devastation to the hospitality industry (Plan), as well as leverage events associated with the National Finals Rodeo to generate
additional tourism. The Plan will be a highly -targeted, data driven advertising plan to promote near -term hotel stays and jump start visitation to the
City, generating support for local businesses
There are three reasons this Plan is vital:
• Fort Worth has more attractions open than many cities but prospective visitors are unaware.
• This fall our community will not have once -relied -upon levels of visitor activity from convention and meetings, business travel and sports
events.
• VFW's budget is not sufficient to mount an adequate re -start campaign for the fall.
Costs for the Plan are necessary expenditures that will be incurred due to COVID-19, were not accounted for in the City's most recently approved
budget, and will be incurred during the period between March 1, 2020 and December 30, 2020. Therefore, funding for the Plan is in addition to,
and falls outside of, the scope of the funding model under the Agreement. Mayor & Council Communication (M&C) 20-0758, approved on October
20, 2020, authorized Phase I of CARES funding in the amount of $300,000.00. Phase II, upon authorization, will provide $600,000.00 of CARES
funding. Funding will not affect the general percentage allocation or the associated true up process.
This funding request was submitted to the City through the CARES Act Funding Request process. The request has been reviewed and approved
by Financial Management Services, the City's CARES Act Funding auditor (Weaver and Tidwell), Deputy City Manager Jay Chapa, and the City
Manager's Portfolio group.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated, in the Grants Operating
Federal Fund to support the approval of the above recommendation and execution of the addendum to the professional services agreement. Prior
to any expenditure being incurred, the Public Events Department has the responsibility to validate the availability of funds. This is an advance
grant.
Submitted for City Manager's Office by. Jay Chapa 5804
Originating Business Unit Head: Michael Crum 2501
Additional Information Contact: Andrea Wright 2502