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HomeMy WebLinkAboutContract 56966-A1 CSC No. 56966-Al FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO.56966, AN AGREEMENT WITH FORT WORTH CONVENTION AND VISITORS BUREAU This First Amendment to City Secretary Contract No. 56966 ("Agreement") is made and entered into by and between the City of Fort Worth ("City"), a Texas home rule municipal corporation, acting by and through its duly authorized Assistant City Manager, and Fort Worth Convention and Visitors Bureau d/b/a Visit Fort Worth("Vendor"),a Texas nonprofit corporation,acting by and through its duly authorized representative,each individually referred to as a"party"and collectively referred to as the"parties." WHEREAS,on March 11,2020,the World Health Organization declared COVID-19 a worldwide pandemic; WHEREAS, on March 11, 2021, President Joseph Biden signed the American Rescue Plan Act ("ARPA") to provide support to State and local governments to respond to the financial impacts of the COVID-19 pandemic; WHEREAS, the State and Local Fiscal Recovery Funds ("FRF") authorized in ARPA(C.F.D.A #21.027) are to be used to mitigate the ongoing effects of COVID-19 and support the nation's pandemic recovery; WHEREAS,the City has received FRF funds to respond to the continuous impact of COVID-19 as outlined in the Interim Final Rule("IFR")promulgated by the Department of Treasury("Treasury"); WHEREAS, Treasury has issued guidance for the use of FRF in the form of Frequently Asked Questions,and will continue to issue guidance and clarification on the appropriate use of these funds; WHEREAS, Treasury guidance specifically notes ARPA allows local governments to invest in tourism-related programs to revive their visitor economies with Subsection 603(c)(1)(A)of Title VI of the Social Security Act specifically authorizing aid to "impacted industries such as tourism, travel, and hospitality"; WHEREAS, Vendor's main purpose is to promote the tourism and convention industries within the City, which is usually done through a professional services agreement with the City (City Secretary Contract Number 44949,as amended and addended); WHEREAS,funding for general marketing of the entire City and all of its facilities is derived from a percentage allocation of hotel occupancy tax(HOT)collections by the City on an annual basis; WHEREAS, with the shutdown of the travel and tourism industry because of the COVID-19 pandemic,funding for Vendor was significantly reduced in Fiscal Years(FY)2020 and 2021; WHEREAS,it is anticipated that hotel occupancy tax collections will continue to recover but not to pre-pandemic levels,which will leave Vendor with an additional shortfall; WHEREAS, as Vendor is the City's lead entity concerning sales and marketing for tourism and special events,it is critical that Vendor be provided with the financial resources to lead this segment of the Fort Worth economy back to pre-pandemic levels of performance; OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX First Amendment to CSC 56966 Page 1 of 4 WHEREAS,to that end,the City and Vendor entered into an agreement for a tourism development grant of up to $6,000,000.00 in ARPA funds so that the Vendor may continue its focus on the on-going recovery effort to strengthen the physical and economic health of the community, the same being City Secretary Contract No. 56966("Agreement"); WHEREAS, the Parties desire to amend the Agreement to include an additional $750,000.00 to further support its efforts to support its three-point plan for rebuilding the City's visitor economy -- (1) supporting recovery of conventions; (2) leveraging momentum with sports tourism; and (3) promoting leisure tourism,with the additional amount being allocated to sports tourism; and THEREFORE, for and in consideration of the mutual undertaking hereinafter set forth and for adequate consideration given,the City and Vendor agree to amend the Agreement as follows: 1. Exhibit A, Scope of Services, is hereby superseded by, and replaced with, a new Exhibit A,which is attached to this First Amendment. 2. Section 3.1, Compensation, is amended to increase the total compensation to Vendor and the payment term associated therewith and reads as follows: 643.1 Total compensation from the City under this Agreement will not exceed Six Million Seven Hundred Fifty Thousand Dollars and Zero Cents ($6,750,000.00) for all Services performed and expenses incurred under this Agreement. Payment for the Services is broken down as follows: 3.1.1 The parties recognize that the City has already paid Vendor Two Million Dollars and Zero Cents ($2,000,000.00)on February 15,2022. 3.1.2 The City will pay Vendor Five Hundred Thousand Dollars and Zero Cents ($500,000.00) upon the City's execution of this First Amendment. 3.1.3 The City will pay Vendor Two Million Dollars and Zero Cents ($2,000,000.00)on or before December 31,2022. 3.1.4 The City will pay Vendor Two Million Two Hundred Fifty Thousand Dollars and Zero Cents ($2,250,000.00) on or before December 31,2023. 3. All terms and conditions of the Agreement not addressed herein remain in full force and effect and are binding upon the parties. 4. All terms in this First Amendment that are capitalized but not defined have the meanings assigned to them in the Agreement. (signature page follows) IN WITNESS WHEREOF,the parties hereto have executed this First Amendment in multiples to be effective as of the date of signature by the City. First Amendment to CSC 56966 Page 2 of 4 City: Vendor: By: William Johnson(Nov ,202214:10 CST) By. Bob J on(Nov 7,202220:09 CST) Name: William Johnson Name: obert Jameson Title: Assistant City Manager Title: President and CEO Date: Date: FOR CITY OF FORT WORTH INTERNAL PROCESSES: Approval Recommended: Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration N _ of this contract,including ensuring all By: performance and reporting requirements. Name: ike Crum Title: irector,Public Events Approved as to Form and Legality: By: Name: Andrea Wright Title: Assistant Director,Public Events 00�nRu By: �o� p�oWo. Moo o Name: [Tyler F.Wallach City Secretary: dP° � pd Title: Assistant City Attorney oQ 4Ilno'—Ag4p Contract Authorization: By: 4afifietteS.Goodall(Nov 9,202212: ST) M&C: M&C Nos.21-0794;22-0792 1 Name: Jannette Goodall Form 1295 2022-885053:1 Title: City Secretary OFFICIAL RECORD CITY SECRETARY FT. WORTH, T First Amendment to CSC 56966 Page 3 of 4 EXHIBIT A SCOPE OF SERVICES Vendor will put ARPA funds to work rebuilding our visitor economy,which supports jobs and local business. Tourism has been named a priority industry by federal ARPA guidelines because the industry was among the hardest hit by the pandemic. In 2020,the Vendor responded to the pandemic by laying off 20%of its staff,reducing spending and shuttering visitor centers. Vendor has a three-point plan for ARPA funds: • Support recovery of conventions by attracting meetings and helping customers connect with local businesses and services. o $3 million over three years o Project concepts ■ National marketing campaign to promote Convention Center expansion, including targeted promotions and events,corporate outreach,video,trade show exhibits ■ Site visits and familiarization trips for new convention customers,especially those who do not fit into the current facility ■ Pre-promotion of conventions to support attendance, such as marketing campaigns around conventions before they come to Fort Worth • Leverage our momentum with sports tourism by securing and hosting events that attract fans and media coverage. o $2.5 million o Project concepts ■ Site visits and familiarization trips for sports events rights holders,including 2022 hosting of Sports ETA conference ■ DFW-wide advertising to drive ticket sales for sports events, demonstrating local support ■ Start-up salary for sports events coordinator position,which will be funded by operating budget long-term as hotel tax collections recover to pre-covid levels • Promote leisure tourism,especially highlighting our incredible attractions and experiences around the arts,western heritage and nightlife. o $1.25 million over three years o Project concepts ■ Splashy national advertising to promote new attractions such as Stockyards, Downtown,Cultural District,Dickies Arena and landmark museum exhibits such as Kimbell Art Museum's 2022"Language of Beauty in African Art" ■ Promotional roadshow in key Texas markets ■ Sponsorship for difference-making festivals and events that raise Fort Worth's profile(e.g.,Opal's Walk,Fortress Fest) First Amendment to CSC 56966 Page 4 of 4