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HomeMy WebLinkAboutContract 17092 STATE OF TEXAS 9 CITY SECRETARY COUNTY OF TARRANT 9 CONTRACT AMENDMENT TO CITY SECRETARY CONTRACT N0. 1.6138 WHEREAS , the City of Fort Wart't, (City) and The Fort Worth Zoological Association (Zoo Association) entered into a contract dated December 1 , 1987 , which contract is on file in the office of the City' Secretary of Fort Worth as City Secretary Contract (the Co.ntract) ; and lo. 16138 WHEREAS , the City desires to construct a new exhibit area for tigers and asian bears , known as the Cat and Bear Exhibit ; and WHEREAS , the Zoo Association desires to assist in the construction of the Cat and Bear Exhibit ; and WHEREAS , such assistance by the Zoo Association shall consist of funding in the amount of $150, 000 to pay one-half of the estimated cost of the elevated walkway portion of the Exhibit and contracting and paying the cost of the General Exhibitry and Rock Finish portion of the Exhibit in the approximate amount of $557,600; and WHEREAS , the Zoo Association further desires to make improvements to the concessions facilities at; the Fort Worth Zoo and has asked the City to reduce the amount of payments 'to be made by the Zoo Association under the Contract by half of the amount of the cost of such improvements , not to exceed $70 , 000 ; and WHEREAS , the Zoo Association will. be utilizing funds from its unrestricted capital reserve accounts to assist in the financir.;- the aforesaid portion of the Cat and Bear Exhibit ; and WHEREAS , the City has agreed to allow the recovery of fur.cI:� foi- the aforesaid po�'tion of the Cat and Bear Exhibit and _je aforesaid concession improvements by means of a reduction in th.-.• percentage oT the total gross receipts derived from retail operations to be paid to City under the Contract until such reduction equals a total dollar amount of $777 , 600 ; NOW, THEREFORE: This Agreement , amending City Secretary Contract No . 16138, is made and entered into by the City of Fort Worth (City) and The Fort Worth Zoological .Association (Association) , 1 . Association agrees to privately contract for and pay -the full cost of that Portion of the Cat and Bear Exhibit at the Fort Worth Zoo known as the General E}hibitry and Rock Finish as shown on the plans and designs f.,r said Cat and 11(Dar Exhibit prepared for the City by Harvey Youngblood Architects , Inc. In addition, Association :shall v' Pay to City upon request after January 1, 1990, an algolznt equ,,.al t:o $15:0 ,000 -to pay a portion of the cost of the elevated wl.a],.way f-or the Cat and Bear Exhibit. 2. Association agrees to make improvements to concession facilities as described in Exhibit "A°1 to this amendment in a total amount of not less than $140,750. Cite will participate in the' cost of such improvements in an amount not to exceed $70 ,000 by means ns of reduct .o'n in the percentage amount of total gross receipts from total retail operations as provided below. 3. It is agreed that the percentage amount of the total gross receipts derived from retail operations shall be reduced from 1570 to 7 1/2% until such time as the total dollar amount of the reduction in payments to the City totals $777,600 , at which time the percentage amount shall revert to 157o. This red Ction shall take effect beginning with the first payment due the City after execution of this Amendment. 4. Notwithstanding the provisions of Section I of Contract No. 16138 , it is agreed that the Association may utilize the reduction or credit set forth in paragraph 3, above , to reimburse the unrestricted capital reserve accounts from which any funds are advanced to pay the costs described herein, to the extent of the funds so advanced. 5 Except as specifically amended herein, all provisions of said Contract No. 16138 shall remain in full force and effect . ? �!. EXECUTED this day of �! ..�,� 1989. ,. . APPROVED AS TO CITY OF F._,RRT WORTIi FORM AND LEGALITY Ramon Guajardn­ ` G Assistant City Manager 4XJ�`City Attorney Attest: fX THE FORT 'iV,JRTH�ZO LOGIQ, .L ASSOCIATION BY: By. , �L�e Tennison g' •` _ • , Secre Pr esident '�...,�r,..� L.�...•,1�,.��,/``- �_� Mr, RM-non Gucjardo Page Three II (5) Other capital eosts associated with the eeitire, operation, including cash registers, cgornl7)tat(�,r sYs.tems and "club cae•s" for transportation of food, money and equipment and a permanent storage building, located within the Zoo, will he approximately x,15„ADO Tliese are the minimum needed improvernents to bring the operation up to a level:sufficient to generate the above revenue goals for 1989, ,)i 49, b In addition, substantial permanent long-term improvements to be implemented in the �.: winter of 19b9 would include a complete gutting and renovation of the JRock House, now known as "Amazon Crossing” and other substantial permanejnt improvements to what aVe now substandard concession "staYtds", P Mr. Damon Guajardo .April 1?, :1989 Page Two i Furthermore, without a significant improvement in food quality, menus, service, 'and capital improvements to concession areas, including renovations and a clean appearance, gross revenues for 1.989 will experience a substantial drop from 1987 revenues. The Zoological Association desires to implement a short-term plan for 1989 to attempt to maximize potential gross revenues for- 1989 while moving to implement a 10119-1-ange plan in the winter of 1988 for permanent improvements to major concession areas, such as the Rock house and outlying concession stands. Gross revenues in 19BE per person were `'.89 and net .income per person was $.Q95. This is well below the national avert for :coos and represents less than satisfaf,,Aor performance. Revenue goals for the 1989;seasonlare a minimum of $1.50 per person, Which woulid equate to a gross of $1.,125,000 on attendance estimated to be g4_,iofi0t_ 750,00 for the year, and a net revenue goal of 30% of gross, or $337,000, which Would equal $,.45 per person. These goals represent a very substantial increase over what was achieved in 1983. In order to achieve such increases in sales, an investment in capital hnprov?jrtents rs necessary. The Association is proposir►g the following for the 1959 season: (1) Kiosk #i1 will be renamed "Safari Outfitters", (2) Kiosk ii2 has been removed due to construction and will be replaced tn, a portable stand located across from the existing Primate pause at the intersection of several walkways in front of the Elephant Exhibit to be named the 41St,rengetti Outpost", (3) Kiosk P3 will be renamed "Hot Spots", (4) The Cafe will be renamed "Flamingo Cafe", (5) The Rock House will be named "Amazon grossing", (6) The TEXAS! exhibit will open under the name "Yellow hose Cafe" and 'the Zoo Association proposes to put in a permanent kitchen in the TEXAS! Exhibit for the concession uperarion, as €otell as 'the cafering operation for special events. Costs: (1) Capital costs for a perma*rient icitehen in the TEXAS! Exhibit are estimated to be at least $75,,000 (2) Improvements to the new "h`laming,o Cafe„ are expected to cost approximately $26,009 (3) Costs for the new "Hot 4,pots" wi31 be approximately $ 250 (4) Crusts for the new ;Amazon Crossing" will be .approximately � 4T500 . i 6 G'1 E7 e FORT WORTH ZOO i DQEMCRANDUM ta�la �tS iU,T1iM1 — -- fn�r�7m Get �)Parry�Fbss hfc lnwn,y.i)a�} (trllnrnttn �.STt)Ih F.CMtY 51ax:nsat fa{i. F, xni To: lariaan S.zu)tlt3r`do lAcPgsriR4�m tgttf7x�,asi3n Assistant City Manager From: Tim stephens M.beM ass 1k,Gene FM-1 Date; April 17, 1989 W.jWY roan; aachul5.ityar l�r.Eric Fµ,aen Re: fort Worth Zoolorrical Association Concessions A1es.Elm K�vde',h• Fort Worth zoo C, Aics.lIMTlnNO—Iiei A4.t NW ILnonn .Imes k Piny i A4.bn hens The 101't V6) )T'tl5 i,C1UlC�'jCBI I�sc r� . " Mi.fiebeeW.�P.(* t:everat�e cony^essiorls at the Dorf �4cnrfilTOl�ooEpasGf<illo>�operates food and ra.tux��r��,R�, Mr.Tm�rhy T.Stepyens '1) Kiosk i<I, lo(--,'A 1J rwnr the rr1llin entry gate, also neat` the f'rin;Fqe � Iic'use, (2) Ki;,sl. --ur2, lore.ted IX-Ahem the Prim€1te House and the Elephont Exhibit, (:3) kiosk 43, 10cP-tCd Fleftr the Cafe and the future location for the South American Exhibit, (<#) A. portable troDer serving sort drinks and popcorn, located currenti- on the idt�l�ialk hr�lfwat� between the west entry gate; and the f)rirntlte Douse, across from ti)e elephants, (5) The "Rock House", (6) The "Cafe", (7) The TEXAS! Exhibit, now consisting only of a GOCa•-Cola, t trailer sertrir;t; cokes and popcorn, and a portable icc c:rnr mr4carC serving drl.)an4tk4--s and ice-, cream sandwiches. The Prim0tr:' Meuse corlstruction has already ealirrlinaated Kiosk ;'2 and will substantially rE?�}trio arC�?,^, to k(ioslc vi aflnr` S€�rotembrsr T, A ccncession :,tasrtcl J0cfitrri fr; the rides ) City of Fort -Worth, Texas U 44-, S/ A/fayor and Council Con1municatim-ii, DATE R E rr RFN Cc BJECT N UMSER SU ; AUTHORIZATION FOR IPIPROVENENTS PAGE 5-16-&9 C-1 1644 OF THE ZOO CONCESSIONS FACILITIES RECOMMENDATION it is recommended that the City Council : ( 1 ) authorize the Fort Qorjh—i2jj_pgical Association to make improvements to the concessions and , ( 2) authorize the City Manager to amend City Secretary Contract No . 16138 to reduce the amount to be paid to the City by the Zoological Association by half the amount of the cost of the concessions improvements , but not to exceed $70 ,000 . DISCUSSION The Fort Worth Zoological Association has proposed to V---ve the concession facilities at the Fort Worth Zoo . T nosed improvements include upgrading existing facilities an yping the kitchen in the Texas Exhibit . The estimated cost of these improvements is $140 , 750 . The Association' s revenue goal Uom concessions , Qitn the improvements , is $1 , 125 , 000 for the 1989-90 season . In 19% -88 , the Associations ' s revenue was approximately $690 ,000 . The City of Fort Worth received IS% of the gross revenue from concessions according to the terms of City Secretary Contract No. 16138 , The Rssociation has requested that the City participate in the cost of the propoled concession improvements . Because the City would also benefit from the improvements in increased revenue, staff is of tho opinion that it would be appropriate for tho City to share in the cost of the improvements , A reduction in the payments from the Association per City Secretary Contract No . 16138 is one method by which the City can participate in the wo5t of the improvements . APPROVED 13v 1.11 i WIT&WL, MAY 36 AN SUBMITTED F(?R CITY MANAGER'S OFFICE BY: PROCESSED 8Y ORIGINATING War-- DEPARTMENT HEAD, CRY SECRETARY FOR ADDITIONAL INFOHMA71ON CONTACT.