HomeMy WebLinkAboutContract 32553 CITY SECRETARYr
CONTRACT NO.
FUNDING AGREEMENT
BETWEEN
CITY OF FORT WORTH
AND
ARTS COUNCIL OF FORT WORTH AND TARRANT COUNTY
This FUNDING AGREEMENT ("Agreement") is made and entered into by and
between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation
situated in Tarrant and Denton Counties, Texas, whose business address is 1000 Throckmorton,
Fort Worth, Texas 76102, acting by and through Richard Zavala, its duly authorized Acting
Assistant City Manager, and the ARTS COUNCIL OF FORT WORTH AND TARRANT
COUNTY (the "Arts Council"), a Texas not-for-profit corporation, acting by and through Flora
Maria Garcia, its duly authorized president.
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. FUNDING AND SCOPE OF SERVICES.
(a) Pursuant to V.T.C.A., Tax Code Chapter 351 and the Code of the City of Fort
Worth ("City Code") § 32-17, the City agrees to pay Arts Council during the term of this
Agreement twelve monthly installments, which will not exceed the sum of One Hundred Ten
Thousand Dollars ($110,000) from revenue generated by the City's hotel occupancy tax.
(b) In return, Arts Council will promote artistic and cultural activities to help the City
promote tourism and the convention and hotel industries. Arts Council agrees that expenditures
of any funds received hereunder shall be for purposes that fully comply with the requirement of
V.T.C.A., Tax Code § 351.101. In performance of such services, Arts Council commits to meet
service performance criteria as set out in Exhibit A attached hereto and incorporated herein for
all purposes incident to this contract.
2. TERM OF AGREEMENT AND TERMINATION.
(a) This agreement shall commence on October 1, 2005, and end on September 30,
2006. The City may terminate this agreement for cause by giving Arts Council written notice not
less than thirty(30) days prior to the effective date of such termination.
(b) If the City exercises its right to terminate this agreement prior to its expiration,
Arts Council's obligations to the City under this agreement shall continue until the date such
termination actually takes effect. On the date of termination or encumbered by Contract, Arts
Council shall reimburse to the City all funds it has received, but not otherwise committed, under
this Agreement.
(c) In the event that no funds or insufficient funds are appropriated by City in any
fiscal period for any payments due hereunder, City will notify Arts Council of such occurrence
and this Contract shall terminate on the last day of the fiscal period for which appropriations
were received without penalty or expense to City of any kind whatsoever, except as to the
portions of the payments herein agreed upon for which funds shall have been appropriated.
3. PERFORMANCE.
(a) In accordance with V.T.C.A., Tax Code § 351.101(a), Arts Council agrees that the
funds received hereunder may be used for day-to-day operations, supplies, salaries, office rental,
travel expenses, and other administrative costs only if those administrative expenses are incurred
directly in the promotion and servicing expenditures as authorized under the aforementioned
chapter of the Tax Code. Further, in accordance with Tax Code § 351.101(f) Arts Council shall
not used the funds received hereunder for travel for a person to attend an event or conduct an
activity the primary purpose of which is not directly related to the promotion of tourism and the
convention and hotel industry or the performance of the person's job in an efficient and
professional manner.
(b) Arts Council further agrees that it will maintain all funds received hereunder in a
separate account. Arts Council shall not commingle such funds with any other funds or maintain
such funds in any other accounts. In addition, Arts Council's expenditure of such funds shall
strictly be in accordance with its Budget, attached as Exhibit A and incorporated herein by
reference for all purposes. Arts Council understands and agrees that upon the acceptance of
funds hereunder, a fiduciary duty is created with respect to the expenditure of such funds.
(c) Arts Council shall submit quarterly financial reports to the City that reflect all
receipts and disbursements of funds received pursuant to this agreement. In addition, within
thirty (30) days following the end of the City's fiscal year, Arts Council shall submit to the City
an annual financial report that reflects all receipts and disbursements of such funds received
during the term of this Agreement and that sets forth all other material information pertaining to
the financial activities and financial condition of the Arts Council.
(d) Arts Council shall submit quarterly service performance reports to the City
that reflect services and activities undertaken by Arts Council in performance of this
contract. Each report will be signed by a duly authorized agent of Arts Council. In
addition, within thirty (30) days following the end of the City's fiscal year, Arts Council
shall submit to the City an annual service performance report that reflect all services and
activities undertaken by Arts Council in performance of this contract.
(e) At any time during the term of this agreement, the City shall have the right to
authorize an audit of Arts Council's records as they pertain to its receipt and expenditure of funds
hereunder. Such audits shall be prepared at the City's expense. However, if any such audit
reveals material discrepancies in the Arts Council's records, Arts Council agrees that it shall
reimburse the City for the full costs of such audit.
2
4. BOND HOLDER RIGHTS.
The City's obligations and Arts Council's rights under this Agreement shall be
subordinate to and limited by the terms and conditions of all subsequent City ordinances which
authorize the issuance of bonds whose payment is pledged upon the City's hotel occupancy tax.
Arts Council agrees and understands that rights of the holders of any such revenue bonds shall be
superior in all respects to the rights of Arts Council. However, the City, to the extent practicable,
shall give Arts Council as much prior notice as reasonably possible of the City's intent to issue
such bonds.
5. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Arts Council shall operate as an independent
contractor as to all services and obligations performed hereunder, and not as an agent,
representative or employee of the City. Arts Council shall have the exclusive right to control the
details of its operations and activities and shall be solely responsible for the acts and omissions of
its boards, officers, agents, servants, employees, contractors, subcontractors and members. The
Arts Council acknowledges that the doctrine of respondeat superior shall not apply between the
City and Arts Council its boards, officers, agents, servants, employees, contractors,
subcontractors and members. Arts Council further agrees that nothing herein shall be construed
as the creation of a partnership or joint enterprise between the City and Arts Council.
6. INDEMNIFICATION.
(a) ARTS COUNCIL HEREBY ASSUMES ALL LIABILITY AND
RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR
PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANY AND ALL
PERSONS, ARISING OUT OF OR IN CONNECTION WITH THE RECEIPT OR
EXPENDITURE OF CITY FUNDS OR THE PROVISION OF ANY SERVICES
HEREUNDER. ARTS COUNCIL COVENANTS AND AGREES TO, AND DOES
HEREBY, INDEMNIFY AND HOLD HARMLESS AND DEFEND THE CITY, ITS
OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY
AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS
AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANY AND
ALL PERSONS, ARISING OUT OF OR IN CONNECTION WITH THE RECEIPT OR
EXPENDITURE OF CITY FUNDS OR THE PROVISION OF ANY SERVICES
HEREUNDER.
(b) ARTS COUNCIL AGREES THAT IT HAS NAMED OR WILL NAME
THE CITY OF FORT WORTH AS AN ADDITIONAL INSURED ON ALL OF ARTS
COUNCIL'S INSURANCE POLICIES PERTINENT TO ANY PROGRAMS,
ACTIVITIES OR OPERATIONS FUNDED HEREUNDER. ARTS COUNCIL SHALL
SUBMIT TO CITY CERTIFICATES OF SUCH INSURANCE.
3
7. ASSIGNMENT.
The Arts Council shall not assign, sell, convey or transfer its interest under this
agreement. Any such attempted assignment of same shall be null and void.
8. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this contract, the City does not waive or
surrender any of its governmental powers.
9. NO WAIVER.
The failure of the City to insist upon the performance of any term or provision of this
agreement or to exercise any right granted herein shall not constitute a waiver of the City's right
to insist upon appropriate performance or to assert any such right on any future occasion.
10. VENUE.
Should any action, whether real or asserted, at law or in equity, arise out of the terms of
this contract, venue for said action shall be in Tarrant County, Texas.
11. SEVERABILITY.
If any provision of this agreement shall be held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provision shall not in any way be affected or
impaired.
12. ENTIRETY OF AGREEMENT.
This written instrument, including any documents incorporated herein by reference,
contains the entire understanding and agreement between the City and Arts Council as to the
matters herein contained. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent in conflict with this Agreement. This Agreement shall not be
amended unless agreed to in writing by both parties and approved by the City Council of the
City.
13. RIGHT TO AUDIT.
The Arts Council agrees that the City shall, until the expiration of three (3) years after
final payment under this Contract, have access to and the right to examine any directly pertinent
books, documents, papers and records of the Arts Council involving transactions relating to this
Contract. The Arts Council agrees that the City shall have access during normal working hours
to all necessary Arts Council facilities and shall be provided adequate and appropriate workspace
in order to conduct audits in compliance with the provisions of this section. The City shall give
the Arts Council reasonable advance notice of intended audits.
4
The Arts Council further agrees to include in all of its subcontractor agreements
hereunder a provision to the effect that the subcontractor agrees that the City shall, until the
expiration of three (3) years after final payment under the subcontract, have access to and the
right to examine any directly pertinent books, documents, papers and records of such
subcontractor involving transactions to the subcontract, and further that City shall have access
during normal working hours to all subcontractor facilities and shall be provided adequate and
appropriate workspace in order to conduct audits in compliance with the provisions of this
paragraph. City shall give subcontractor reasonable advance notice of intended audits.
14. NOTICES.
Notices to be provided hereunder shall be sufficient if forwarded to the other party by
hand-delivery or via U.S. Postal Service certified mail, postage prepaid, to the address of the
other party shown below:
City of Fort Worth Arts Council of Fort Worth and Tarrant County
Richard Zavala, Acting Assistant City Manager Flora Maria Garcia, President
1000 Throckmorton 1300 Gendy Street
Fort Worth, Texas 76102 Fort Worth, TX 76107
817-392-6222 817-732-2360
IN WITNESS WHEREOF, the parties hereto have executed this agreement in multiples
to become effective for the stated term upon the filing with and assignment of a contract number
b ity Se etary's Office of the City of Fort Worth, Texas, this l) day of
,A.D. 2005.
CITY OF FORT WORTH: ARTS COUNCIL OF FORT WORTH
AND TARRANT COUNTY
By: CIE) By:
Ri and Zavala FAaMa'
na arcia
Acting Assistant City Manager President
ATTEST:
By: f-- r
City Secretary
0 -0-1 oq6 -
Contract Authorizatioa D
L/_(5 �-
Date
5
APPROVED AS TO FORM AND LEGALITY:
ao 6C �� r
Assistant City Attorney
M&C: ��. a 10 4-5
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared Flora Maria Garcia, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
Arts Council of Fort Worth and Tarrant County, and that she executed the same as the act of the
Arts Council of Fort Worth and Tarrant County, for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this -1ay of -�-rL-3 c8 ,
2005.
z-c-/.
otary Public in and or h State of Texas
f pcn4 T'tiC4:�Rr7 .94'30 ' S
i STA-I-E OF TEXAS
Loy COMM. E Xp.WO&-07
L!
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared Richard Zavala, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
City of Fort Worth and that he executed the same as the act of said City of Fort Worth for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 6; . day of
2005.
P -"iii and for the State of Texas
CLINTON SPRUILL II
NOTARY KM STATE OF TEARS
COMMISSION EXPIRES:
SEPTEMBER 15,2009
6
EXHIBIT A
HOTEL/MOTEL OCCUPANCY TAX
AGENCY OBJECTIVES AND MEASURES
ARTS COUNCIL OF FORT WORTH AND TARRANT COUNTY
Mission:
To provide funding and leadership to stimulate and assure the advancement of the arts
throughout the community of Fort Worth and Tarrant County.
Objectives:
General Support: To partially support the operating seasons of Fort Worth based arts
organizations from 1-1-06 through 12-31-06 to present performances and exhibitions throughout
the year to the general public.
Output Measures:
Agency Measures Actual FY2003-04 Estimated FY2004-05 Projected FY2005-06
Operating support to
serve 80,000 people,
of which 32,000 are 79,985 80,000 80,000
youth
7
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/4/2005
DATE: Tuesday, October 04, 2005
LOG NAME: 032005C&T-ARTS REFERENCE NO.: **C-21045
SUBJECT:
Authorize Execution of a Contract with the Arts Council of Fort Worth and Tarrant County
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a contract in the amount of
$110,000.00 with the Arts Council of Fort Worth and Tarrant County for their promotion of artistic and
cultural activities.
DISCUSSION:
The City, from a portion of the Hotel/Motel Occupancy Tax receipts, appropriates funds for the Arts Council
of Fort Worth and Tarrant County.
During the FY2005-06 budget process, the City Council approved funding in the amount of$110,000 for the
Arts Council of Fort Worth and Tarrant County. The Arts Council of Fort Worth and Tarrant County,
provides financial assistance to nonprofit organizations in Fort Worth for projects that promote and enhance
the cultural and artistic life of the community.
It is proposed that a contract be executed between the City of Fort Worth and Arts Council of Fort Worth
and Tarrant County for the period of October 1, 2005, through September 30, 2006.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds have been budgeted in the FY2005-2006 Culture and Tourism
Fund adopted budget for this expenditure.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG04 539120 0242000 $110,000.00
Submitted for City Manager's Office by: Richard Zavala (Acting) (6222)
Originating Department Head: Bridgette Garrett (8518)
Additional Information Contact: Jose Moreno (8349)
Logname: 032005C15:18:04 PM-ARTS Page 1 of 1