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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 02/02/2021 - RESOLUTION 2021-015 APPROVING AN EXCEPTION TO THE Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY February 2, 2021 City Council STAFF Amanda King, Communications/Public Involvement Director Josh Birks, Economic Health Director Gerry Paul, Director of Purchasing & Risk Management Ingrid Decker, Legal SUBJECT Resolution 2021-015 Approving an Exception to the Competitive Purchasing Process for the Purpose of Extending the Contract with the Fort Collins Convention and Visitors Bureau, Inc. for Convention and Visitor Services. EXECUTIVE SUMMARY The purpose of this item is for Council to consider approval of an exception to the competitive purchasing process to extend the contract with the Fort Collins Convention and Visitors Bureau, Inc., d/b/a Visit Fort Collins, the City’s current Convention and Visitor Serv ices vendor. The current five-year agreement with Visit Fort Collins under RFP 8256 Convention & Visitor Services terminates on March 31, 2021. Due to extenuating circumstances precipitated by the COVID-19 pandemic, this Resolution seeks an exception to the City Code requirement for use of a competitive purchasing process to extend the agreement for one additional one -year term ending on March 31, 2022. An RFP will be initiated in late 2021 or early 2022 so that a vendor may be selected competitively and a new contract executed before April 1, 2022. Exception to Competitive Bidding Rationale: Code Section 8-161(d)(1)(b). Although there exists more than one (1) responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the City's financial interests or will substantially impede the City's administrative functions or the delivery of services to the public. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION City Code Section 8-186 limits multi-year contracts to a term of five years. Therefore, a formal competitive process is required to be conducted for Convention and Visitor Services every five years. Visit Fort Coll ins is the only entity to respond to the City’s last competitive process conducted in 2016. The current contract and final one-year renewal expires March 31, 2021. Given the ongoing impacts and uncertainty in the travel and tourism industry due to the COVID-19 pandemic, the City is requesting a one-year extension to continue work that was paused and to better evaluate ongoing impacts and expectations for the travel and tourism industry. Many contracted efforts had to be adjusted or put on hold due to rest rictions on travel and business operations throughout 2020. This included the Destination Master Plan co -funded by the City. Final work on the plan is expected to resume in early 2021 with a target completion date of May 2021. This one -year extension will help with continuity and completion of the plan. Agenda Item 11 Item # 11 Page 2 Additionally, the City was able to amend its contract with Visit Fort Collins for additional work supporting local business COVID-19 recovery efforts. The Fort Collins Marketplace was established in late 2 020 to help facilitate online sales opportunities for Fort Collins businesses. The City helped support the setup and launch with CARES Act funding, and the online store will continue offering local business sales into 2021. Finally, Visit Fort Collins has also been contracted to promote and market the creative sector of Fort Collins, increasing visibility and driving community engagement, tourism, business and the recognition of Fort Collins as a cultural and creative destination. This work was outlined i n the Arts and Culture Master Plan and will be done in partnership with the City’s Cultural Services department. The updated scope of work includes a comprehensive marketing campaign that will run through 2021. CITY FINANCIAL IMPACTS The City’s Economic Health and Communications & Public Involvement team does not have the bandwidth for the adequate development and completion of a competitive process (RFP) for these services based on other COVID-19 communication requirements and recovery efforts. Visit Fort Collins is paid in arrears based on lodging tax collections whereby 70% of collections goes to Convention and Visitor Services and 30% goes to FortFund. Lodging tax collections were down 47.5% in 2020. Obtaining additional information on travel and tourism performance and recovery over the next year will help inform the new RFP process planned for 2022. -1- RESOLUTION 2021-015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN EXCEPTION TO THE COMPETITIVE PURCHASING PROCESS FOR THE PURPOSE OF EXTENDING THE CONTRACT WITH THE FORT COLLINS CONVENTION AND VISITORS BUREAU, INC. FOR CONVENTION AND VISITOR SERVICES WHEREAS, pursuant to Ordinance No. 20, 1984, the City established a 3% lodging tax on hotel/motel rooms within City limits with the purpose of using the proceeds to promote tourism, conventions, and other activities that use public accommodations within the City; and WHEREAS, since 1986 the City has contracted with the Fort Collins Convention and Visitors Bureau, Inc., now doing business as Visit Fort Collins (“VFC”) to coordinate convention and visitor promotion activities; and WHEREAS, in 2016 the City conducted a competitive request for proposals (“RFP”) process for convention and visitor services and VFC was the only entity to respond; and WHEREAS, the City entered into a five-year agreement with VFC that will expire on March 31, 2021; and WHEREAS, VFC is working on several projects for the City that were put on hold because of the COVID-19 pandemic or that assist in the economic recovery from the pandemic, and it would be disruptive to the City’s financial interests and the delivery o f services to the public to change vendors at this time; and WHEREAS, in addition, City staff does not currently have the resources to adequately develop and complete an RFP process for these services due to other COVID-19 communication requirements and recovery efforts; and WHEREAS, to ensure continuity of programs, the City is proposing to extend the 2016 contract with VFC for an additional one-year term and complete a new RFP process in late 2021 or early 2022; and WHEREAS, City Code Section 8-161(d)(1)(b) authorizes the Purchasing Agent to contract for services without competition if, although there exists more than one (1) responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the City's financial interests or will substantially impede the City's administrative functions or the delivery of services to the public; and WHEREAS, the Purchasing Agent has determined that the purchase of convention and visitor services from VFC falls within the scope of this exception because the use of a competitive process to contract for such services at this time would injure the City’s financial interests, impede the City’s administrative functions, and interfere with the delivery of convention and visitor services to the public; and -2- WHEREAS, the Purchasing Agent has submitted the requisite justification to the City Manager for approval; and WHEREAS, the City Manager has reviewed and approved the justification for this acquisition; and WHEREAS, City Code Section 8-161(d)(3) requires approval of this purchasing method by the City Council for items costing more than $200,000 prior to acquisition; and WHEREAS, VFC is paid in arrears an annual fee for its services equal to 70% of the total City lodging tax revenue for the previous calendar year, an amount that is expected to be well over $200,000 in 2021. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby approves, as an exception to the City’s competitive purchasing process, the purchase of convention and visitor services for a one-year term beginning April 1, 2021, from the Fort Collins Convention and Visitors Bureau, Inc. d/b/a Visit Fort Collins. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 2nd day of February, A.D. 2021. __________________________________ Mayor ATTEST: _____________________________ City Clerk