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File #: 0540-2020    Version: 1
Type: Ordinance Status: Passed
File created: 2/24/2020 In control: Finance Committee
On agenda: 3/16/2020 Final action: 3/19/2020
Title: To authorize the Finance and Management Director to contract with Experience Columbus for marketing services to increase tourism and convention business and strengthen the image of the City of Columbus, Ohio; to authorize the expenditure of $10,839,000.00 from the Hotel/Motel Excise Tax Fund; and to declare an emergency.($10,839,000.00)
Attachments: 1. Ord # 0540-2020 Experience Columbus

 Explanation

 

BACKGROUND: This ordinance authorizes the Finance and Management Director to enter into contract with Experience Columbus for marketing services to increase tourism and convention business and for the disbursement of the Hotel/Motel excise tax proceeds in accordance with Section 371.02(c) of Columbus City Codes which, in part, designates a portion of funds for the purpose of promoting Columbus.  For 2020, that portion of the Hotel/Motel excise tax is projected to be $10,839,000.00 and is provided to Experience Columbus per this ordinance. An amount not to exceed ten percent (10%) of the funds granted pursuant to this agreement may be used for food and non-alcoholic beverages which directly associate with a public purpose.

 

Emergency action is requested so that proceeds can be disbursed without delay to ensure that marketing services increasing tourism and convention business can occur in the greater Columbus area.

 

Experience Columbus, Contract Compliance#: 31-4153118 (non- profit)

 

FISCAL IMPACT:  This ordinance authorizes an expenditure of $10,839,000.00 from the Hotel/Motel Excise Tax Fund with Experience Columbus for marketing services related to increasing tourism and convention business for the City of Columbus.  These funds are budgeted in the Hotel/Motel Excise Tax fund for these services.  Funding for this contract will come from receipts into the Hotel/Motel tax fund in accordance with Section 371.02 of the Columbus City Codes.  In 2019, the City entered into a $10,472,000.00 contract with Experience Columbus for these services. 

 

Title

 

To authorize the Finance and Management Director to contract with Experience Columbus for marketing services to increase tourism and convention business and strengthen the image of the City of Columbus, Ohio; to authorize the expenditure of $10,839,000.00 from the Hotel/Motel Excise Tax Fund; and to declare an emergency.($10,839,000.00)

 

Body

 

WHEREAS, Section 371.02(c) of the Columbus City Codes, 1959, specifies that 2.39% of the combined rates of 5.1% of the revenues of the hotel/motel excise tax are to be used for the promotion of the City of Columbus as a desirable location for conventions, tourism, trade shows, and similar events; and

 

WHEREAS, the aforementioned rates were established pursuant to Ord. 0484-2014; and

 

WHEREAS, Ord. 2927-2019 appropriated $10,839,000 from the monies in the fund known as the Hotel-Motel Tax Fund, Fund No. 2231, and from all monies estimated to come into said fund from any and all sources during the 12 months ending December 31, 2020; and

 

WHEREAS, the city and its citizens benefit economically, culturally, and otherwise from these marketing services, and it is in the best interests of the city and its citizens to encourage and support the services of Experience Columbus; and

 

WHEREAS, the Experience Columbus Board of Directors will dedicate funding in its annual budget for collaborative image/branding efforts to enhance awareness, to support development in the region, and to continue the implementation of the five-year Destination Columbus Plan; and 

 

WHEREAS, this contract is awarded pursuant to provisions relating to non-profit services of City Code Chapter 329; and

 

 WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it has become necessary to authorize the Finance and Management Director to enter into contract with Experience Columbus for the purpose of marketing services to increase tourism and convention business so that the services can begin without delay, thereby preserving the public health, peace, property, safety, and welfare; now, therefore

 

 

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:

 

SECTION 1.  The Director of the Finance and Management Department is hereby authorized to contract with Experience Columbus for marketing the City of Columbus, so as to increase cultural, educational, religious, professional and sports-related visits and conventions in the city, thus boosting the economy and creating more jobs.

 

SECTION 2.  That said contract shall provide for payment by the city for such services in accordance with Chapter 371.02(c) of Columbus City Codes and 2.39% of the combined rates of 5.1% of the Hotel/Motel Excise Tax, currently estimated at $10,839,000.00, is hereby authorized to be expended from the Hotel/Motel Excise Tax Fund 2231, Sub-Fund 223105 in Object Class 03 Contractual Services per the accounting codes in the attachment to this ordinance.

 

See Attached File: Ord 0540-2020 Legislation Template.xls

 

SECTION 3.  That this contract is awarded in accordance with the relevant provisions of Columbus City Code Chapter 329 relating to not-for-profit service contracts exceeding twenty thousand dollars.

 

SECTION 4.  That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.

 

SECTION 5.  That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.

 

SECTION 6. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.