HomeMy WebLinkAboutContract 24178 NO ,
CITY SECRETARY
(CONTRACT NO.
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THIS AGREEMENT is made and entered into Fort Worth, 'Warrant. County, Texas
effective on the V day of October, 1998, by and between the CITT OF FORT WORTH, a
municipal corporation ("City„), acting by' ar.d through its duly authorized City t {,anagex, Robert
Terrell, and the FORT WORTH CONVENTION AND VISITOR S BUREAU ("Bureau"), acting L
by and through Douglas Hannan,its duly authorized President&C.E.O.
WITI'^dlE+ SSETH :
WHEREAS, V.T.C.A. Tax Code §351.002 authorizes the City to levy by ordinance u-
hotel occupancy tax which may not exceed nine percent(9%)of the consideration paid by a hotel
occupant; and
WHEIPMAS, the City has levied such a tax by adopting AYticle 11 of Chapter 32 of the
Fort Worth City Code(1936),as amended;and
WHEREAS, V.T.C.A.Tax Co4e §351.101(x)(3) authorizes the City to use revenue
derived from, the hotel occupancy tax for "advertising and conducting promotional programs to
attract tourists and convention delegates or registrants to the municipality or its vi�irrity"; and
WHEREAS, the City Council finds that the public facilities an6 services of the Will
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Rogers Memorial Center, Cowtown Coliseum, the Fort Worth Convention Crnter and other
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facilities which may he constructed benefit,and are enjoyed by,visitors to City;and
WHERE AS, display, entertainment, meeting, and other public convenience facilities are
provided for the special use and benefit of visitors; and ---- 7
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WHEPX4 AS, it is a matter of necessity that such display, entertainment, meeting, and
other public convenience.facilities be advertised, publicized, and promoted; and that the public
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there-by be informed of their availability for use;
WHEREAS,visitors,conventioneers, and tourists who utilize such public facilities male
related expenditures that substantially benefit the economy of City;and
WHERE, AS, V.T.C..A. § 351.101(c) authorizes a city to contract with another entity to
manage and supervise programs or activities funded with revenue from the hotel occupancy tax;
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WHEREAS,on:furze 21, 1991,City and Bureau entered into City Secretary Contract No.
18523, under the terms of which Bureau performs certain services for City, and tine term of that i.
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contract expires on September 30, 1998;acrd
WHEREAS, an March 24; 1997, City and Bureau entered into City Secretary Contract
No. 22581, which amended Contract No. 18523 to allow for the use of hotel occupancy tax
revenues for a historic restoration and preservation project,the Blackstone hotel; and
WHEREAS, the parties now desire to enter into this.Agreement to be effective on and
after October 1, 1998;
NOW THEREFORE THIS CONTRACT F1JRTHERW1£TNESSETH::
That for and in consideration of the performance of the mutual covenants and agr ee rnents
herein contained,the parties hereto do hereby covenant and mutually agree as follows:
CITY AND BUREAU OBLIG,�XIONS
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1.
1.1 City agrees, pursuant to state law and city ordinance, to pay funds to the Bureau
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r.' from its hotel occupancy tax revenues as set forth hereunder, in consideration of whieh. the i
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Bureau agrees to undertake activities for the promotion of tourism and the convention and hotel
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industry, through advertising and conducting premotiooal programs to attract tourists and
Convention delegates or registrants to Fort Worth.
1.2 City further agrees to fund and maintain a"Special Public Facilities Fund" (SPFF)
for the purposes of encouraging conventions and equestrian events to book at the City-owned
public facilities. The SPFF shall replace the Buy Down Fund and the Equestrian Marketing k
Fund which were part of the previous contracts with the Bureau.. Included within this fund will `
be the rilaney traditionally used to support the facility agreements for major conventions and
horse shows. In order to book priority events that bring strong economic value to the
community, City, in cooperation with the Bureau, must flora time tf?time adjust facility rents Or i
make other conmlitmeats to bring priority groups to the City. The SPFF will be maintained in a
separate Bureau account and not included in the base budget of the Buieau, funding for which is
provided in Section 2 of this Agreement. Use of SPFF funds sltall, require approval through a
review procedure established by the City Manager's Office, which will include City Manager(or
designee) approval and review and concurrence by the Bureau. In Fy 1998-99,the SPFF will be
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$429,375.00 (phis existing funds 11°Id in reserve for future year facility or group use as described
the Bu- Down Fund,the Equestrian Marketing Fund and
below), which is the estimated level for y q
related facility incentive funds at their level in the 1997-98 Fiscal Year. Each year, the City
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through its annual budget process will determine the total level of the SPFF, based upon
projected needs for the coming }rear. City may at its discretion increase or decrease this amount
annually in the budget process, depending on the assessment of the need and the availability of
finds in this account from the previous year. The SPFF shall not be included in the
determination of the Bureau's base budget for advertising, promotions and sales. All existing
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funds held in reserve for future year facility or group use(i.e,,the NCHA 1999$ 15,000 and the
miscellaneous convention buy down uses) will also be transferred to this account, and will -fund
accordingly specific groups or facility uses which have been previously earmarked.
1.3 Bureau covenants and agrees to promote the lease of the public facilities in the
Will Rogers Memorial Center,Cowtown Coliscurn,the Fort Worth Convention Center,and other
meeting and public convenience facilities, for conventions, trade shows, and meetings on dates
available in such facilities, including the continued publication of a set of floor plans for the
above facilities that will be current and accurate and of such size that convention executives and
planners of meetings can rely on same for layouts.
1.4 Bureau covenants and agrees to conduct coordinated state, regional, national, and
international advertising, research, publicity, direct sales and promotion campaigns emphasizing
the attractions offered in City to meetings, groups, and visitors. Bureau recognizes the unique
facility features of both the Will Rogers Memorial Center and the Fort Worth Convention Center
and the target markets for each facility. Bureau will coordinate the formulation of appropriate
marketing strategies -and programs which will reflect the optimum use of the facilities. Bureau
will coordinate this activity with the appropriate City Public Events and Facilities staff rnember.s.
1.5 Bureau covenants and agrees to maintain exhibit booths for the purpose of
attracting visitors, conventions, meetings, exhibits, selected trade, sports an d consumer shows,
and other events to City.
1.6 P -reau covenants and agrees to cause to be printed and distributed in adequate
quantities visitor literature of substantive quality and material to all Texas State Highway
Tourists Inforination Centers, as well as Visitor Information Centers presently located in local
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hotels, motels restaurants,. places of public accoirunodation, and any other locations considered
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desirable, including the Convention and Visitors i Bureau Infornzaton Center.
to participate in appropriate tat tsrn agencies ana
1.7 Bureau covenants and agrees P
such as: tl,e Texas Department of Econatnic Development, the {
convention association
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American
and Texas Societies of Association Executives, and the International Assooiation of
us as well as other agencies in order to assure that favorable
Convention and Visitor Bulea
publicity about City may be continued and expanded.
Bureau covenants aid agrees that in a systematic mariner ne it will solicit convention
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organization for the accommodation of appropriate facilities :orated in
and ,meeting lioldi g ar g
City.
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1.9 Bureau
covenants and agrees to provide stafing arid facilities for registration
al, and
ncludin information relative to central Dousing,publicity materi
assistance and services, t g
«s to associations, organizations, or groups convening or holding meetings in
attendance imaihn�
City. Bureau further agrees to coordinate with the appropriate City departments, local hotels,
provide an environment in
-milts and entertainment facilities, and to strive to which a
restaurants,
or organization enjoys a coordinated and Productive visit to City-
visiting group
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It is understood and agreed that Bureau currently prepares and publishes, and will
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�" continue to prepare, p
ublish, and update during the ternn of this Aa eeiment and any renewals
invitational mmaterials providing specific information on hotels and motels located in
thereof,
renewals,said invitational materials
city, and
will also distribute,during the terns hereof and any
4 to association executives and planners of meetings, including therein such inforixiatian as floor
pnatels as are activQly bidding
lans of such hotels and i
for a specific meeting convention, in
addition to general promotional and entertain.anent material on City
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1.11 Bureau covenants and agrees to make the services of bureau available to Fort
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Worth groups and businesse,,..
1.12 In order for City to monitor the aforementioned and any criteria now or late9`
mutually developed,Bureau shall:
(a) submit an annual report of activities and results of the overall marketing
program for the preceding fiscal year within ninety(90)days after the close of such year.
This report s;ha?t include, but not be limited to: detailed breakdown of activities
:.i xdertaken and surnmary of benefits obtained by the programs and financial reports
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pertinent to the scope of the work as required by City; and
(b) submit a comprehensive program of action for the e:.suinb Fiscal Fear.
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This will be in a form which includes measurable performance objectives; along with a 4
detailed lime item budget of revenue and appropriations for all activities relative to this
Agreement. The comprehensive program is to be submitted by City's requested date to
allow the Office of Management Services Department to include Bureau's marketing
program within its budget submission to the City Manager's office; and
(c) make quarterly reports to the City staff and City Council listing the
!?, expenditures made from hotel occupancy tax revenues, as well as meet with City
on a quarterly basis to discuss the status of current fiscal year marketing
programs.
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ALLOCATION OF HOTEL OCCUPANCY TAX REV E NU ES
2.1 City shall allocate annually during the term of this Agreement an.amount equal to
`' fifty-five percent (55%) of the hotel occupancy tax revenues collected (except as provided.
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below}to the Bllra,au for the perfarii�lance of the professional services to be performed by Bureau
llocatia will be utilized to fund
under the tomes of this Agreement. This hotel oceupancy tax a a i
its annual business plan and base budget.
Bureau's operating cost as outlined in
2.2
The hotel occupancy tax revenues subje to allocation to the Bureau shall not
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include
the revenues derived from the application
of the tax at a rate of more than seven percent
o P ues are dedicated by statute to construction of an expansion to s.�i existing
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(7/°), which rev..n
convention center facility.
3 The method of payment of the Bureau's allocation shall be as
2 follows: City shall r
a the Bureau in equal monthly installments the Bureau's base operating budget request, which
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shall be equivalent to fifty-five percent(55%)of eligible hotel occupancy tax revenues whit are
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estimated to be re cei,ved by the City for the City' fiscal year,.as determined by the City Manager
in his recommended budget to the City Council. .P.ctual collections of hotel Occupancy taxes
shall be determined ,.t the end of the fiscal year by the City. If fifty-f ve percent (SS%) of actual
collecte
d allocable revenues exceed the ?.mount paid to the Bureau on the basis of estimates for
the preceding year, the excess amount shall be paid to the Bureau on or before November l
o collected
following the end of the City's fiscal year.
If fifty-five percent (SS/°} of actual col.
allocable revenues is less trial? the amount paid to the Bureau on the basis of estimates for the
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Preceding year, the Bureau shall pay to the City the difference on or before Naveiinber 1
I, following the end of the City's fiscal year.
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2.4 It is the parties understanding at the time this Agreement is executed that for fiscal
ected hate] occupancy tax revenue subject to allocation will total
year 1998-99, th e p ro l
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$7,199,706, and that therefore the fifty-five percent (55%) allocation to the Bureau to fund its
bud et v��ill be $3,959,838. In the event that the projections change between the data of
base g
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execution and the effective date of this Agreement(lo/1/99),the parties agree to meet and confer
regarding the terms of this Agreement.
2.5 All expenditures from funds provided to the Bureau hereunder shall be made in
accordance with the annual business plan and budget submitted each year, pursuant to Section
1.12 above. it is understood and agreed that, upon the acceptance of funds hereunder, a fiduciary
duty is created in the Bureau with respect to the expenditure of such funds.
2.6 The hotel occup ancy tax funds allocated to Bureau shall be kept in special
accounts established for this pun-oose and shall not be commingled with other funds nor
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maintained in any other account. Bureau shall furnish to City an audit and accounting of such
monies annually, said audit to be performed by an independent certified public accountant
acceptable to City. City shall also have the right to perform an audit and inspection of bureau's
business records relating to the expenditure of such monies, at such reasonable tunes and
intervals as City may request, and at City's expense. In addition, Bureau will pry--°de on a
rnonthly besis to City within thirty(30)days after the close of a month an unaudited statement of
operations reflecting receipts and disbursements in the same format as submitted in the annual
budget, which statements shall clearly delineate expenditures made from funds provided under
this Agreement.
2.7 The expenditures from these special accounts shall be made by Bureau only after
receipt and good faith consideration of advise and recommendations from Bureau's Executive
Committee which shall be comprised of representatives of hotels/motels, airline representatives,
restaurant representatives, and representatives from convention support services; all of whom
3 shall be appointed as specified in the Articles of Incorporation and the Bylaws of Bureau.
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't'.standin anything �.to tl�ie contrary,
it is understood and agreed.that
2.8 Notwi g
an hotel occupancy tax revenue genera'�e� oY and collected from the Blackstone Motel during
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ndar ears 1997 through 2007 shall be utilized by the City solely to farad the Facilities and
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Maintenance Agreement concerning preservation, restoration,and maintenance of the Blackstone,
Hotel and related facilities.
3.
TER ;
reernent shill begin October 1, 1998 and
3.1 The p extend
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rrmary term of this Ag
30, 2003,
through September unless this Agreement ent shall have l,Pen sooner ter ainated or
extended in accordance with other provisions cont2�ined herein.
ded for up to five (5) additional
The term of this Agreement may be exten
successive one (1) year terms after the primary term by mutual consent. Consent to extend the
timed unless notice is given to tlae
term of this Agreement for an additional year shall be pres
other party by July I of its intent not to renew this Agreement.
4.
T E �+t�l l�'A'�'I®I®1
is C, regiment is subject to annual funding by the Fort Worth City Council. In
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fated and budgeted in any year for payments
ents to Bureau.
the event that fiends are not appropriated
currence, and this Agreement
p
ursuant to this Agreement, City shall notify Bureau of such oc
of the year
for which appropriations were available,
without
shall terminate ora the last day i
4"
of an kind whatsoever.
penalty or expense to City Y
7 in addition to termination for nonappropatlon as provided abo'`e;, Clay Tay
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terminate this Agreement at any tirne, and for any reason,upon six months prior written.notice to
Bureau.
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4.3 In tlae event of termination or ..piration of this Agreement,City shall pay Bureau
termination or expiration date,
for services rendered prior to such and City shall Honor v�rYten
convention Support,
ervices.made by Bureau to convention and meeting
nts to provide
commitments p
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planners, which commitments were made pursuant to the terms of this Agreement prior to its
Such agreements to be honored by City will include contracts or lease agreerel t-
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termination.
entered into in the normal course of operation and will also include office equipineitt, automobile : l
leases, office space leases, and other administrative requireta�ents. However, Bureau may not,
without the prior written consent of City (which shall not be unreasonably withheld.),enter•.into a. ,+
real estate lease, employment contract, or contract for an amount in excess of Ten'Thousand
1Jollars($10,000) with a terra that exceeds the remainder of the renewal term of"tttas F ;reeai1et�t'•
Payments made pursuant to the teens of this paragraph shall be made frorn,a-,1d shall not e eeeed
the total of funds appropriated for payments under this Agreement.
5.
INDEPENDENT CONTRACTOR
The relationship of Bureau to City with regard to all set-vices performed hercundersliall
be that of independent contractor and not as an officer, agent, servant, or em*yee of .Ci`ty.
Bureau shall have exclusive control of its operations hereunder, an 'd the persons< perfb rain'g:
same, and shall be solely responsible for the acts and omissions of its officers, agents, servants;
employees, contractors, and subcontractors. The doctrine of respondeat superior shall not apP ly
' as between City and Bureau, its officers, agents, servants, employees, coritractots and
subcontractors, and nothing herein shall be constnaed as creating a partnership or joint enteYprisr»
between City and Bureau.
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6.
INDEMNITY
and agrees to, and does hereby, indenmify, hold har-mless, and defend'
Bureau covenants �
City,its officer
a e�nts; servants, and employees from and against any and all clai:s:ts or si its..fax
ro damage or lass and/or person
injury, including death, to any acid all persons, o
property
whatsoever land o
r character,whether real or asserted, arising.out of or in connection with this
erfortxtatice; and Bureau hereby assumes 61,1 liability or a
Agreement, its performance or non-p
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responsibility for same. �Y
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7.
f+;'fl'rJREE AGREi EMEN ?
This written instrument constitutes the entire
agreement by`the parties lxereto concerning
rfopned;hereunder, and any prior or conteml oraiteous. oral ar written
the operations to be V e
agreement which Purport to vary`front the terms ltereofshall be void,
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ASSIGIEW
art of its interest this Agreementiithout prior
Bureau shall not assign. alfl. or any p r
approval of City Council of City.
9.
'4IlEl�d�J}�
whether teal or asserted; ise out of this
at law or in equity, ar
Should any action,
Agreemon ti7enue for said action shall lie in Tarrand°County; Pe as.
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IN TESTIMONY WHEREOF, the parties hereto have executed this Agreement in
duplicate originals on this the lay of
A'I'�' 'g CITY O FO W H
ES
City Secretary
Robert Terrell
City Manager
d
APPROVED AS TO.FORM
AND LEGALITY: i
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x; a;
Assistant City Attornelor Contract:Authorization s'
Date: k'- /r�' ` ' ff
Date:__._._
FORT WORT. WCON'VEN`I`'ION AID'
17-ISI l'ORS BUREAU
"ontract. Authorization
By:
Douglas arrnan
t President and C.E.O.
c:\my doc\k yet\CVB Contract
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INDEWHTY
Bureau covenants and agrees to, and does hereby, indemnify, Bold harmless; and defend'
City,its officers; agents, servants;and employees from and against any and all claims or suits for
property damage or loss and/or personal injury, including death, to any and all persons, of
whatsoever kind or character, whether real or asserted, arising out of or in connection with this-
Agreemen't, its pe,3•fonxiance or non-performance; and bureau hereby assumes all liability or
responsib-,*h',t'or saLrne.
7.
ENTIRE AGREEMENT
+¢ instrument constitutes the entire agreement by the parties hereto concerning
This wr'nt t,.n instrument c
the operations .o be ;performed hereunder, and any prior or contemporaneous oral or wn toil �
agreement which puxports to vary from the terms hereof shall be void. 7�
8.
ASSIGNl?dl(Elgl`l('
Bureau shall not assign all or any part of its interest in this Agreement without:prior. �
approval of City Council of City. f'
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9. ,
VENUE
Should any action, whether real or asserted, at law or iii equity, arise-, out:~Qf this
Agreement,venue for said action shall lie in Tarrant County,Texas.
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IN TESTHvIONY �1nMREOF,. the parties hereto have executed this Agreement in
duplicate originals on this the Alay of '�*�� , 1995.
ATTEST
CITY OF F
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By.. 9 a ..------
Robert Terrell
City Secretary f
City Manager
APPROVED AS TO FORM
AND LEGAL ITYq
Assistant City Attori Contract Authorization
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Date-.—
Date f_—_—---- 4�
FFORT WORT D'
Contract: Authorization
` - l By: A, }'
j Dougl annan
Date
President"an*d C.E O.
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F ( �
cAmy doc\k yet\CVB Contract
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CUy of Fort Worth, Faxes
evDA',gor and co- ramacil Ica
Date Deference Number Lag Name Page
8/18/98 1 ZNOTEL 1 of
Subject AUTHORIZE CONTRACT WITH THC FORT''WOR1°H t�ONVEiVTION 'AY�I.f?, 11561 Q�S
b: "at:l lk FOR USE OF HOTEL OCCUPANCY TAX REVENUES
Fit E COIV?�.REN6aATION:
is recommended that the City Council authorize the City Manager to execute a professional servi.^es
agreement with the Fort Worth Convention and Visitors Bureau (CVB) as described below.
DISCUSSION:
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! The CVB contacts with the City to receive a portion of local hotel occupancy tax (HOT) revenues to
fund the CVB-s activities to promote tourism and the convention and hotel industry. The current i
i contract vJth the CVB .expires September 30, 1998. The attached contract would become effective:
October 1, 1998. The term of the new contract 'is 5 years, with the ability to extend the contract
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annually thereafter by mutual consent for 5 successive additional one-year terms_
Under the new contract:
o as. ro acted;b': the'Cit "'
j The CVB will receive 55/o of the gross HUT revenues annually p j y y
j Budget Office for their base budget (Section 2.1). November 1 will represent a prior year
I settlement period, if the monthly payments based, on the budget estimates exceed or'w�re i
short of actual collections (Section 2.3).
a
The gross HOT revenues subject to allocation to the CVB do not include:the 2°T increment
over 7%, which is dedicated by law to convention center improvements (Section 22), or bny
amounts generated by the renovated Blackstone Hotel through calendar year 2007 because
those revenues are used to fund the Facilities and Maintenance Agreement for the
preservation, maintenance and restoration of the:E3aekstone (Section 2.8).
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A Special Public Facilities Fund (SPFF) is created to replace the existing Buy Down Fund
and Equestrian Marketing Fund. The level at which the SPFF is funded:is determined each
year by the City as part of the budget process, based upon protected needs. Use of SFFF
f,_inds requires approval by the City Council and the CVB. This fundwill allow for adjustment
to facili�y rents to compete for priority events (Section 1.2).
The balance of HOT revenues are available to the City Council for funding of other:eligpble
1 activities,
On August 12, 1998, the City Council Economic Development Committee was briefed on tie proposed'
C_ ; contract and voted to recommend approval to the City Council. The CVB staff is prepared to
recommend this contract to the CVB Board,
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City of Fort Forth, Texas
ay.or Awn.d. COU
0elf COMMUM-C AM
Date Refere to Number Log Name Page
8!1'8/913 ' '9` 9 5i 12HOTEL 2 of 2
Subject AUTHORIZE CONTRACT WITH THE FORT WORTH CONVENTION AND'VlSiTORS
BUREAU FOR USE OF HOTEL OCCUPANCY TAY, Rl'UCNUES
FISCAL INFORMAIDNICERTIFICATIQN.
The Finance Director certifies that funds will be available in the proposed; FY 1999 operating 'budga~t,
as appropriated, of the Culture and Tourism Fund.
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' -Tanager's F UNB 5ibn6tted for C ity � A C C C3>UN f CENTER AtiicDdJA17
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Office by: (1o)
Charles Bos yell 8511
origiiaating Dei)artntent Mead: 1, ?r
Wade Adkins 7623 ('from)
GG04 539120 0241000
Additional Information Contact:
Wade Adkins 7623
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