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HomeMy WebLinkAboutContract 44949-AD7 CSC No. 44949-AD7 SEVENTH ADDENDUM TO CITY SECRETARY CONTRACT NO.44949,A PROFESSIONAL SERVICES AGREEMENT WITH THE FORT WORTH CONVENTION AND VISITORS BUREAU This Seventh Addendum to City Secretary Contract Number 44949("Seventh 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 CSC 44949 six times for the purpose of funding additional marketing and promotional services to more key markets through targeted outreach during fiscal years 2014 and 2015,funding a Destination Master Plan,funding Molly the Trolley, and funding phases 1 and 2 of the tourism response and recovery plan, the same being CSC Nos. 44949-AD1, 44949-AD2, 44949-AD3, 44949-AD4, 44949-AD5 and 44949-AD6; WHEREAS, the parties have also amended CSC 44949 on several occasions,the same being CSC 44949-Al,CSC 44949-A2,CSC 44949-SA 1,CSC 44949-A3, and 44949-R 1 A4(CSC Nos. 44949,44949- AD1,44949-AD2,44949-AD3,44949-AD4,44949-AD5,44949-AD6,44949-A1,44949-A2,44949-SA1, 44949-A3, and 44949-RIA4 are collectively referred to herein as the"Agreement"); WHEREAS, the Initial Term of the Agreement expired on September 30, 2021, and the parties renewed it for one addition year,the same being CSC 44949-R1 A4; WHEREAS,the Agreement 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 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,Bureau assists the City in its sales and marketing for tourism and special events;thus, it is critical that Bureau be provided with the financial capacity to promote the Fort Worth economy back to pre-pandemic levels of performance; OFFICIAL RECORD CITY SECRETARY Seventh Addendum to CSC 44949 FT. WORTH, TX `of 4 WHEREAS, in 2021, the City began an aggressive campaign to raise its profile, which was outlined as a key objective in the City's Economic Development Strategic Plan("Plan"),which was adopted by the City Council in January of 2022; WHEREAS, to enhance those efforts, City desires to engage the Bureau to hire a nation-wide public relations firm to grow national recognition for economic development progress and business opportunities through increased exposure; and WHEREAS,funding for this Seventh Addendum is in addition to and falls outside of the funding model under the current Agreement and does 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. The Bureau agrees to hire a nation-wide public relations firm ("Firm") to grow the national recognition for economic development progress and business opportunities in the City. The scope of work includes,but is not limited to: a. Media relations(releases,pitching,placements,and clips) b. Thought leadership(media,panels,podcasts,program for Mayor,conferences) C. Influencer work d. Creative ideation e. Awards/lists f. Trend reports g. Amplification h. Crisis work i. Quarterly reports j. One video meeting per month with the economic development coordinating group 2. The City agrees to pay Bureau an amount up to Ninety Thousand Dollars and Zero Cents ($90,000.00)("Funds")on a reimbursement basis for actual costs incurred. a. At the beginning of every month, Bureau must provide the City with a signed, readable invoice summarizing the (i) services provided by the Firm, (ii) actual expenses incurred, (iii) purchase order number, and(iv) requesting payment. In submitting invoices, Bureau must provide copies of receipts for all expenses. If the City requires additional reasonable information, it will request the same promptly after receiving the above information, and Bureau will provide such additional reasonable information to the extent that the same is available. Summaries must be submitted to the City of Fort Worth Public Events Director Seventh Addendum to CSC 44949 2 of 4 and Economic Development Director via email at Supplierinvoices@fortworthtexas.gov. b. The City will issue payment in accordance with the Texas Prompt Payment Act. C. Bureau will not perform any additional services for the City not specified by this Seventh Addendum unless City requests and approves in writing the additional costs for such services. City will not be liable for any additional expenses of Bureau not specified by this Agreement unless City first approves such expenses in writing. 3. Bureau must complete the services associated with this Seventh Amendment on or before December 31,2022, 4. It is understood and agreed that the Funds are in addition to and fall outside of the funding model under the current Agreement and do not affect the general funding percentage allocation or the associated "true up"process set forth in the Agreement. 5. All services performed under this Seventh Addendum are subject to all other applicable provisions of the Agreement, including,but not limited to, Section 9-31 of the Agreement, b. 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 Seventh Addendum that are capitalized but not defined have the meanings assigned to them in the Agreement. IN WITNESS WHEREOF, the City and Bureau have caused this Seventh Addendum to be executed and delivered by their duly authorized representatives in Fort Worth,Tarrant County,Texas. CITY OF FORT WORTH FORT WORTH CONVENTION AND VISITORS BUREAU By: William..ohnson(A =25,202211:41 CDT) By. William Johnson Robert Jamc o Assistant City Manager President and EO APPROVAL RECOMMENDED: �• Michael E Crum(Aug 25,202209:41 Car) Michael Crum Director of Public Events OFFICIAL RECORD CITY SECRETARY FT. WORTH, T Seventh Addendum to CSC 44949 3 ol'4 APPROVED AS TO FORM AND LEGALITY: iy�.GcJa.�ic�c Tyler F.Wallach Assistant City Attorney ATTEST: ��oFORT��� 0 00� 0 0 1aWA&HO-S, 400d4a P"o 0. Jannette S.Goodall(Aug 26,2022 07:22 CDT) o V o o= 0 0 Jannette Goodall 000 City Secretary d 0 0000000 EX Ala Authorization: M&C Numbers: C-2648 (September 24,2013); C-26493 (October 7,2013); C-26800(May 13,2014); C- 28863(September 25,2018);20-0758(October 20,2020);20-0853(November 17,2020);22-0566(August 9 2022) OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Seventh Addendum to CSC 44949 4 of 4 City of Fort Worth, Texas Mayor and Council Communication DATE: 08/09/22 M&C FILE NUMBER: M&C 22-0566 LOG NAME: 17VFW ECONOMIC DEVELOPMENT PROMOTIONAL FUNDING SUBJECT (ALL)Authorize Execution of a Seventh Addendum to City Secretary Contract Number 44949,a Professional Services Agreement with the Fort Worth Convention and Visitors Bureau,in the Amount of$90,000.00 to Grow National Recognition for Economic Development Progress and Business Opportunities by Utilizing a Nation-Wide Public Relations Firm,Adopt Appropriation Ordinances and Amend the Fiscal Year 2022 Adopted Budget RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of a seventh addendum to City Secretary Contract Number 44949,a professional services agreement with the Fort Worth Convention and Visitors Bureau,in the amount of$90,000.00 to grow national recognition for economic development progress and business opportunities by utilizing a nation-wide public relations firm; 2. Adopt the attached appropriation ordinance reallocating appropriations in the Non-Departmental Department of the General Fund by decreasing the General Operating&Maintenance category in the amount of$90,000.00 and increasing the Economic Development Department Transfers and Other category by the same amount; 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Culture and Tourism Fund in the amount of$90,000.00,transferred from available funds within the General Fund,for the purpose of funding enhanced public relations efforts on behalf of the City;and 4. Amend the Fiscal Year 2022 Adopted Budget. DISCUSSION: The City of Fort Worth (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 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,subject to an annual"true up". In 2021,the City began an aggressive campaign to raise its profile,which was outlined as a key objective in the Economic Development Strategic Plan(Plan)prepared by TIP Strategies. In order to enhance those efforts,City desires for VFW to increase the funding under the Agreement to utilitize a nation-wide public relations firm to grown national recognition for economic development progress and business opportunities through increased exposure. Costs for these services were not accounted for in the City most recently-approved budget and will be incurred during the period between April 1, 2022,and December 31,2022. Therefore,funding for the additional services is in addition to,and falls outside of,the funding model under the current Agreement and do not affect the general funding percentage allocation or the associated true up process. VFW will expand its contractor for national public relations support to include stories that support Fort Worth's economic development agenda. The City agrees to reimburse VFW in an amount up to$90,000. The City will receive a report outlining the activities and results for the period of April-August 2022. These payments will be a reimbursement for actual costs incurred by VFW for the increased expansion to the Agreement with their national public relations firm. The actions in this M&C will amend the Fiscal Year 2022 Adopted Budget as approved in connection with Ordinance 25073-09-2021,Section 1. General Fund,as listed on page 3,and Section 2.Special Revenue Funds,as listed on page 5. Fund/Department FY2022 Budget Revised Budget Category Adopted Authority Adjustment FY2022 Budget Budget Culture and Tourism: Revenues Hotel Occupancy Taxes $20,526,113.00 $20,526,113.00 Charges for Services $4,833,487.00 $4,833,487.00 Use of Money and Property $9,161,429.00 $9,161,429.00 Other Revenue $1,859,903.00 $1,859,903.00 License and Permits $5,500.00 $5,500.00 Transfer from General Fund $3,691,893.00 This M&C $90,000.00 $3,781,893.00 Total Revenues $40,078,325.00 $90,000.00$40,168,325.00 Expenditures Culture and Tourism $37,090,240.00 This M&C $90,000.00$37,180,240.00 Transfer to General Fund $901,477.00 $901,477.00 Transfer to Culture and Tourism Capital Projects Fund $856,000.00 $856,000.00 Transfer to Vehicle and Equipment Replacement Fund $25,000.00 $25,000.00 Transfer to IT Refresh Capital $31,500.00 $31,500.00 Transfer to Culture and Tourism Debt Fund $343,372.00 $343,372.00 Transfer to Venue Debt Fund $455,030.00 $455,030.00 Contribution to Fund Balance $375,706.00 $375,706.00 Total Revenues $40,078,325.00 $90,000.00$40,168,325.00 Fund/Department FY2022 Budget Revised Budget Category Adopted Authority Adjustment FY2022 Budget Budget General Fund: Expenditures Non-Departmental $2,932,200.00 This M&C ($90,000.00) $1,996,069.00 M&C 21-0964 ($167,000.00) M&C 22-0194 ($40,000.00) M&C 22-0364 ($639,131.00) Separation Pay $8,285,537.00 $8,285,537.00 Contractual Services $724,500.00 $724,500.00 Tuition Reimbursement $172,478.00 $172,478.00 Training Initiative $250,000.00 $250,000.00 Transfer to the General Capital Fund(Paygo) $750,000.00 $750,000.00 Transfer to Municipal Golf(Operating Subsidy) $395,000.00 $395,000.00 Economic Development $35,759,114.00 M&C 22-0364 $89,131.00$35,848,245.00 InterFund Transfer Out/Subsidy to Culture and Tourism(380 Agreement) $3,691,893.00 This M&C $90,000.00 $3,691,893.00 This M&C ($90,000.00) Transfer to Economic Incentives Fund $2,000,000.00 $2,000,000.00 Total Expenditures $54,960,722.00 ($847,000.00) $54,113,722.00 Funding is budgeted in the Other Contractual Services account of the Nondept Other Contractual Department's General Fund for the purpose of transferring to the Culture and Tourism Fund. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are currently available in the General Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinances,funds will be available in the General Operating&Maintenance category of Culture&Tourism Fund. Prior to an expenditure being incurred,the Public Events Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office by. Reginald Zeno 8517 Originating Business Unit Head: Robert Stums 2663 Additional Information Contact: Robert Stums 2663 Expedited