HomeMy WebLinkAboutOrdinance 26135-04-2023ORDINANCE NO. 26135-04-2023
AN ORDINANCE AMENDING M&C 22-0984 BY DECREASING ESTIMATED
RECEIPTS AND APPROPRIATIONS IN THE CULTURE AND TOURISM FUND
BY REDUCING THE USE OF FUND BALANCE IN THE AMOUNT OF $136,000.00,
AND REDUCING THE CONTRIBUTION TO FUND BALANCE BY THE SAME
AMOUNT FOR THE PURPOSE OF CORRECTING A TECHNICAL ERROR;
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:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2022 -2023 in the
Budget of the City Manager, there shall also be an amendment to M&C 22-0984 by decreasing estimated
receipts and appropriations in the Cu lture and Tourism Fund by reducing the use of fund balance in the amount
of$136,000.00 and reducing the contribution to fund balance by the same amount for the purpose of correcting
a technical error.
SECTION 2.
That should any portion, section or part of a section ofthis 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, wh ich said remaining provisions shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 25773 -0 9-2022 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said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upo,n adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
Assistant City Attorney
ADOPTED AND EFFECTIVE: April 25, 2023
C ity of Fort Worth , Texas
Mayor and Council Communication
D ATE : 04 /25/23
L OG NAME : 25FWCVB2023CONTRACT
SUBJECT
M&C FIL E N UMB E R: M&C 23-0330
(ALL) Authorize Execution of a Professional Services Agreement with the Fort Worth Convention and Visitors Bureau d/b/a Visit Fort Worth , in the Amount of $16,650 ,908 .00 for Fisca l Year
2023 , to Market and Promote Fort Worth for a Term of Five Years w ith Two One-Year Renewal Options , Reallocate Appropriations in the Fisca l Year 2023 Adopted Budget of the Culture
and Tourism Fund , and Adopt Appropriation Ordinances in the General Fund and Culture and Tourism Fund and Amend the Fiscal Year 2023 Adopted Budgets
RE CO MM ENDATI ON :
It is recommended that the City Council
1. Authorize the execution of a Professional Services Agreement with the Fort Worth Convention and Visitors Bureau d/b/a Visit Fort Worth to market and promote Fort Worth as a
premier business and leisure destination for the benefit of Fort Worth's hospita lity industry and the local economy for a term of five years with two one-year renewal options in the
amount of $16 ,650 ,908.00 for Fiscal Year 2023 from Culture and Tourism Funds;
2. Adopt appropriation ordinance reallocating appropriations in the Non-Departmental Department of the General Fund by decreasing the General Operating & Maintenance category in
the amount of $120,000.00 and increasing the Economic Development Department Transfers and Other category by the same amount;
3. Adopt appropriation ordinance adjusting estimated receipts and appropriations in the Cu lture and Tourism Fund by 1) increasing Transfers from the General Fund in the amount of
$120 ,000.00 , 2) increasing General Operating & Maintenance category in the amount of $3 ,320 ,000.00 and 3) decreasing the Transfers & Other category in the amount of
$3,200 ,000.00 for purpose of funding the Herd Capital Expense , Motion Picture , Fi lm and Television Marketing Fund , Event Trust Fund Application Account and National Public
Relations Marketing Fund ;
4. Amend M&C 22-0984 by decreasing estimated receipts and appropriations in the Culture and Tourism Fund by reducing the use of fund ba lance in the amount of $136,000.00 and
reducing the contribution to fund balance by the same amount for the purpose of correcting a technica l error; and
5. Amend the Fiscal Year 2023 Adopted Budget.
DISCUSSIO N·
The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a new agreement w ith the Fort Worth Convention and Visitors Bureau d/b/a Visit Fort Worth
(CVB) to provide promotiona l and marketing services funded by Municipa l Hotel Occupancy Tax (HOT) revenues , and adjust the General and Culture and Tourism Funds Fiscal Year (FY)
2023 operating budgets according ly to cover new contract stipu lations.
State law authorizes a city to contract with another entity to manage and supervise programs or activities funded with revenue from the HOT. In accordance with this authority , the City and the
CVB have entered into a series of agreements for CVB to perform professional services for the City for HOT-funded marketing programs and activities. The current agreement (City
Secretary Contract (CSC) No. 44949) wi ll ex pire on September 30 , 2023 , however the agreement authorized by this M&C will be effective retroactive to October 1 , 2022 and supersede
csc #44949 .
Over the course of the last few months, staff and members of the CVB Board of Directors have been negotiating a new contract. Changes from previous agreements include revision of the
marketing provisions to reflect the growing importance of social media and digital publications in the marketing process and clarification in funding provisions to more clea rl y de lineate the
three-part structure of the CVB funding . Key provisions of the proposed new agreement include the following :
1. Ge n er al M arket ing a nd Pro m otio n s/ In c rease t o FY2023 B as e Funding -CVB base funding is paid in 12 monthly equal installments based on budget projections of hotel occupancy
tax (HOT) revenues in the fiscal year and subject to a yearly "true-up" process. At the conclusion of FY2022 HOT 7% revenues exceeded budget expectations and a true up of $1.6M was
paid to CVB in January of 2023 from avai lab le Culture and Tourism fund balance. A base funding increase of $573 ,467.00 for FY2023 was previously appropriated in M&C 23-0221 , March
21 , 2023 as a direct result of the budget amendment to increase in anticipated HOT 7% co ll ections during the current fiscal year. By increasing monthly payments to CVB for the remainder
of FY2023 , the potentia l true-up amount owed in January of 2024 is minimized in advance. As such , the FY2023 base contract amount increases from $10 ,834 ,345 .00 to $11 ,407 ,812.00
with the execution of the new agreement. Base funding is subject to annual appropriation by the City Council during the budget process. However, the ca lculation for base funding remains
unchanged in the new contract.
2. National Publ ic Re lat i ons Mark et ing Fund (NPRMF)-In addition to the annual base funding calcu lation , through the Economic Development Department, the City will allocate
$120 ,000.00 per fisca l year from Non -Departmental General Fund beginning in FY2023 for CVB to maintain funds avai lable for the purpose of expanding its contract for national public
re lations support to include stories that support Fort Worth's economic development agenda. Any unused NPRMF will carry over to the fo ll owing fiscal year for the same purpose , will
supplement the total funding to be contributed by the City during that fiscal year, and funding in subsequent years will be based on the annual CVB and City funds availability.
3 . Fo rt Worth He rd Operations & Capital -In 2009, CVB assumed responsibility for management of the promotional and marketing prog ram known as the Fort Worth Herd (Herd). The
new agreement maintains the previously appropriated funding of $1 ,033 ,096.00 for Fisca l Year 2023. The City may increase funding annually based upon CVB's budget submissions and
avai lable funds to the support the Herd. Herd funding is separate and apart from CVB Base and Special Public Faci lity Fund (SPFF) funding. Wth execution of the new agreement, the City
may also allocate up to $50 ,000.00 beginning in FY2023 for the Herd Capital Expense for the next four years of funding. Funding shall be a do ll ar for dollar match with the Friends of the
Herd fundraising.
4. Spe c ial Publ ic Fa ci lit ie s Funds (SPFF) -CVB maintains two funds to assist in attracting , maintaining and retaining tourism and convention business in Fort Worth -the Fort Worth
Convention Center Public Faci lities Fund and the Wit Rogers Memorial Center Public Faci lities Fund (coll ectively , SPFFs). The contract calls for the City to allocate up to the amount of
$480,000.00 per fi sca l year for the Fort Worth Convention Cen te r SPFF , up to the amount of $210,000.00 per fiscal year for the Wit Rogers Memorial Center SP FF and up to the amount of
$100,000.00 per fiscal year for the Sports SPFF. Funding for the SPFFs is subject to annua l appropriation by the City Council during the budget process.
5. Sports Market i ng Fund (SMF) -CVB maintains funds available for the purpose of promoting and marketing the sports tourism industry in the City. Wth execution of the new
agreement, the SM F annual up to amount increases from $100,000.00 to $200,000.00 and an additional appropriation for FY2023 of $100 ,000.00 was previously approved in M&C 22-
0984 , on November 11 , 2022. Any unused SMF will carry over to the fo ll owing fisca l year for the same purpose , will supplement the total funding to be contributed by the City during that
fiscal yea r, and funding in subsequent years will be based on the annual CVB and City funds avai labi lity .
6. Motio n Pi cture, Film a nd Televis ion Marketing Fu n d (FMF) -CVB maintains funds avai lab le for the purpose of promoting and marketing the City to the motion picture , fi lm , and
te levision industry to raise national awareness of the City. Wth execution of the new agreement, the City will make an a ll ocation of up to $150 ,000.00 in FY2023. Any unused FMF will carry
over to the following fisca l year for the same purpose. Funding in subsequent years will be based on the annual CVB and City funds availability.
7. Event Trust Fund Application A ccount-In FY2023 , the City will loan CVB $3 ,000 ,000.00 for the creation of a revolving account to be used for CVB's Event Trust Fund (ETF)
applications. The funds can be used by CVB exclusively for ET F applications . If any ETF reimbursements are received from the State , they sha ll be re-deposited in the revolving account.
The loan is repayable , at the City's option , upon the termination of this agreement. CVB will report monthly on the account disbursements and receipts.
8. Mar ket i ng Pl an -On a yearly basis , the CVB will develop and submit to the City a Marketing Plan that will include the services to be performed by CVB in the upcoming fisca l yea r and
include measurable performance criteria . The Marketing Plan w ill be consistent with CVB's mission to market and promote Fort Worth as a premier business and leisure destination , so as
to enrich Fort Worth's hospitality industry and the community's economy. In furtherance of that mission , the primary responsibi lities of CVB are to promote conventions , trade shows,
meetings and tong-term equestrian events at the City's pub lic facilities with the intent to maximize faci lity revenues , hotel occupancy tax , sates tax and use of the City's public facilities . The
Marketing Plan will provide the instruments to evaluate the services provided under the contract.
9. Budg et Pla n -On a yearly basis, CVB will be required to submit to the City , for consideration and approval , a proposed written budget plan indicating the following : (i) the proposed
funding for the General (Base) Funding induding the NPRMF, the SPFF, Herd operations and capital , SMF and FMF, (ii) the projected available HOT collections for the ensuing fiscal year
and any amounts avai lable in CVB reserve funds available for the NPRM F, SPFF, SMF and FMF.
10. Board of Directo rs -The contract terms allow for the City Manager to serve as an ex-officio non-voting member of the CVB Executive Committee and City Manager, Assistant City
Manager and the Director of Public Events to serve as ex-officio non-voting members of the CVB Board of Directors . In addition , the contract calls for two (2) Council Members or
appointees to serve as voting members on the CVB's Board of Directors with at least one of these individuals also serving on the CVB Executive Committee .
11 . Tenn -The initial term of the contra ct will be for five years beginning on October 1, 2022 and expiring on September 30 , 2027, with the option to extend the contract for two additional
one-year periods.
12 . Te rmination -The contract will indude a provision allowing either party to terminate the Agreement with a 90 day notice .
The action in this M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connectio n with Ord inance 25773-09-2022 , Section 1. Genera l Fund , as listed on page 3, and
Section 2 . Specia l Revenue Funds , as listed on page 7 .
Fu nd / Department
Budg et Cate go ry
General Fund
Revenues
Non-Departmental
Use of Fund Balance
Total Revenue s
Genera l Fund
Expenditures
Non -Departmental
Separation Pay
Emplotee Recru itment and Retention Fund
Fire Contingency Overtime Fund
Contractua l Services
T uition and Reimbursement
T raining Initiative
Transfer to General Capita l Fund (PayGo)-IT Capita l
FY2023 Adopted Budget
0.00
$370,000.00
$8 ,060,037.00
$4 ,767 ,575.00
$4 ,000 ,000.00
$3 ,465 ,149.00
$172,478 .00
$250,000.00
$3 ,617,007.00
Transfer to Genera l Capital Fund (PayGo)-Community Partnerships$750,000.00
Transfer to IT Refresh Capital $1,201,099.00
Transfer to Mun icipal Golf (Operafing Subsidy) $320 ,000.00
Transfer to Genera l Capita l Fund
Total Expend itu res
Fund / Departme nt
Budget Cate gory
General Fund
Revenues
Economic Development
Total Revenues
Genera l Fund
Expenditures
Economic Development
Subsidy to Cu lture and Tourism (380 Agreement)
Transfer to PI Ds
Transfer to Economic Incentive Fund
Transfer to Cu lture and Tourism Fund
Total Expenditures
Fund / Dep art ment
Budget Cate gory
Culture and Tourism Fund
Revenues
Cu lture and Tourism
Transfers from General
Use of Fund Balance
Total Revenues
Expenditures
Cu lture and Tourism
Transfer to Genera l Fund
Transfer to Capita l Fund
Transfer to VERF
Transfer to IT Refresh Capita l
Transfer to Debt Fund
Contribution to Fund Ba lance /Net Position
$26 ,973 ,34 5.00
FY2023 Adopted Budget
$1 ,138,106 .00
$1,138 ,106.00
$38 ,513 ,321 .00
$2 ,927 ,456 .00
$326 ,791 .00
$2 ,000 ,000 .00
$43 ,767,568 .00
FY2023 Adopted Budget
$46,366 ,717.00
$46 ,366,71 7 .00
$42 ,431,499 .00
$943,581 . 00
$500,000 .00
$179,155.00
$44,054 .00
$798,907.00
$1 ,469,521 .00
Authority
M&C 23-0135
This M&C
M&C 23-0006
M&C 23-0059
M&C 23-0192
M&C 23-0135
Autho ri ty
M&C 23-0095
This M&C
Authority
M&C 23-0221
This M&C
M&C 22-0984
This M&C
This M&C
This M &C
M&C 22-0984
M&C 23-0221
This M&C
This M&C
M&C 23-0221
Bud ge t Adju stm e nt
$2 ,124,106 .00
$2 ,124,106.00
($120 ,000.00)
($125 ,000.00)
($300 ,000 .00)
($405 ,066 .00)
$2,124,106 .00
$1,174,0 40 .00
Budg et Adj ustment
$683 ,897 .00
$120,000.00
$803 ,897.00
Budg et Adjustment
$2,596 ,047.00
$120 ,000.00
$136 ,000.00
{$136 ,000 .00)
$2,716,047.00
$3 ,200 ,000.00
$120,000.00
$136,000.00
$573 ,467.00
($3 ,200 ,000.00)
($136 ,000 .00 )
$2 ,022 ,580 .00
Revised FY2023 Budg et
$2 ,124,106.00
$2,124,106.00
$370 ,000.00
$8 ,060,037.00
$4 ,767 ,575.00
$4,000 ,000.00
$2 ,515 ,083 .00
$172 ,478.00
$250,000.00
$3 ,61 7 ,007.00
$750,000 .00
$1 ,201 ,099 .00
$320 ,000.00
$2 ,124 ,106 .00
$2 8 ,14 7 ,385.00
Revised FY2023 Budget
$1 ,138 ,106.00
$1,138,106.00
$39,197,218.00
$2 ,927,456.00
$326,791.00
$2,000,000 .00
$120 ,000.00
$44,571 ,465 .00
Revi se d FY2023 Budget
$48 ,962 ,764.00
$120 ,000.00
$136 ,000.00
($136 ,000 .00)
$49,08 2,764.00
$45 ,631,499.00
$120 ,000.00
$136 ,000.00
$573,467.00
$943 ,581.00
$500 ,000 .00
$179 ,155.00
$44,054.00
$798 ,907.00
($1 ,7 30 ,479.00)
($136 ,000.00)
$2 ,022 ,580.00
Total Expenditures $46,366,71 7.00 $2,7 16 ,047.00 $49,082 ,764.00
Budget is available in Contribution to Fund Balance and Other Contractual Services and funding is available from HOT revenues and transfers from the General Fund , in the Culture and
Tourism Fund , for the professional services agreement with CVB . Funding is available in the General Fund Non-Departmental for a transfer from the Economic Development Department to
the Culture and Tourism Fund for the same. Future funding in subsequent fiscal years will be based on availability and is subject to annual appropriation by the City Council during the budget
process.
FISCAL INFORMATION/ CERTlFlCATlON :
Th e Director of Finance certifies th at funds are currently avai lab le in the Cu lture & Tourism and General Funds and that upon approva l of th e above recommendations and adoption of the
attached appropriation ordinance , funds will be available in the Culture & Tourism Fund to support the above re commendations and execution of the agreement. Prior to an expenditure
being incurred , the Publ ic Events Department has the responsibility of verifying the availability of funds. Future funding in subsequent fiscal years will be based on availability and is subject
to annual appropriation by the City Council during the budget process.
Submitted for City Manager's Offic e by : \Mlliam Johnson 5806
Or iginatin g Business Unit Head· Michael Crum 2501
Additional Information Contac t: Andrea Wright 2502
Expedited