Loading...
2022-02-28 - Agendas - FinalFayetteville Advertising and Promotion Commission February 28, 2022 Location: City Hall, Room 326, 113 W. Mountain Street Commissioners: Katherine Kinney, Chair, Tourism & Hospitality Representative Todd Martin, Tourism & Hospitality Representative Chrissy Sanderson, Tourism & Hospitality Representative Elvis Moya, Tourism & Hospitality Representative Andrew Prysby, Commissioner at -large Sarah Bunch, City Council Representative Mark Kinion, City Council Representative Staff: Molly Rawn, CEO; Jennifer Walker, Vice President of Finance, Hazel Hernandez, Vice President of Marketing and Communications Agenda I. Call to order at 2:00 p.m. II. Old Business A. Review and approval of December 2021 minutes. There was no meeting in January. III. New Business A. Vote. Appointment of a commission chairperson. In accordance with our by-laws, a chairperson must be voted on by the active commissioners at the first meeting of every year. The chair serves a one-year term. B. CEO Report. An executive overview of the previous month C. Financial Report. Jennifer Walker, Vice President of Finance D. Marketing Report. Hazel Hernandez, Vice President of Marketing and Communication E Vote. Fayetteville Town Center elevator contract. Staff is seeking authority to accept a renewal quote for a three-year service agreement with Otis Elevators for a rate of $35,100. F. Vote. Sells Agency Contract. Staff seeking authorization to enter into a one-year contract extension with Sells Agency, our Agency of Record to expire on December 31, 2022. G. Additions to the agenda may be added upon request from a majority of the commissioners. IV. Adjourn Fayetteville Advertising and Promotion Commission Minutes from December 20, 2021 Meeting Fayetteville Town Center Commissioners Katherine Kinney, Chair, Tourism & Hospitality Representative Present: Todd Martin, Tourism & Hospitality Representative Chrissy Sanderson, Tourism & Hospitality Representative Elvis Moya, Tourism & Hospitality Representative Andrew Prysby, Commissioner at -large Sarah Bunch, City Council Representative Staff: Molly Rawn, CEO; Jennifer Walker, Vice President of Finance Chair Kinney called the meeting to order at 2:00 pm. Old Business A. Commissioner Martin motioned to approve the November 2021 minutes with Commissioner Prysby seconding. The minutes were unanimously approved. III. New Business A. Vote. Carpet Install at Fayetteville Town Center. CEO Rawn stated she is seeking authorization to accept a quote from January Flooring to replace carpet in the ballroom. The carpet is 20 years old, the recommendation is to go with January Flooring and the budget amount is $103,000 which includes a contingency if needed. This is in the 2022 budget and we are presenting it to you now as we know a substantial price increase in supplies will occur in January. Chair Martin asked about a general revenue amount for the town center to have an understanding and Rawn said she could supply that number, but not during the present meeting. Commissioner Martin made a motion that we replace the carpet and Commissioner Sanderson seconded it. It passed unanimously. B. Vote. In Floor Electrical Repair at Fayetteville Town Center. CEO Rawn stated she is seeking authorization to accept a quote from Multi -Craft Contractors to replace in -floor outlets and repair electrical lines in the ballroom. This is also included 2022 budget and the work would occur when the carpet is getting replaced. We sought 3 quotes but only received two vendors who were able to bid on this. The quote is for $23, 375 plus a 10% contingency. Commissioner Sanderson asked if the electrical quote was adequate, and CEO Rawn said it was. Commissioner Martin moved that we approve, and Chair Kinney seconded it. It passed unanimously. C. Presentation and Vote: 2022 Budget CEO Rawn reviewed the one -page overview of the budget: We are budgeting for 4.8 million in revenue and 4.6 million in expenses and a 7% increase in HMR taxes. This budget includes minimal expenses for the Clinton House Museum and Rawn will call them out when we get to them. Cyclocross is a separate budget and will be looked at after this. Revenue is fairly straight forward with Hotel, Motel and Restaurant tax revenue being 86% and the Fayetteville Town Center being 10%. Other revenue includes banner, vendor income from Lights of the Ozarks, Visitors Center and for this year, income from Tyson Family Foundation grant for the basketball court. In discussing expenses, Rawn pointed out the larger items such as personnel, the bond repayment for Kessler improvements, Walton Arts Center, etc. Tourism initiatives make up 33% of expenses and include marketing, funds for initiatives like Spartan Trail Race and more. Commissioner Martin mentioned that both bonds could also be considered tourism initiatives which would result in 2.2 million on the tourism initiatives category. Commissioner Martin asked if we had any idea how much of the Parks HMR revenue was spent on tourism initiatives. Rawn suggested inviting Alison Jumper to a meeting first quarter to get an idea of how she sees our two departments working together. The Clinton House Museum budget support is $40,000 and Rawn broke that down and also noted that rent for the house in the new lease from the U of A has been reduced almost in half. Commissioner Moya asked about their fundraising goals and Rawn said that she thought their board was meeting the week after Christmas to discuss this. Commissioner Martin also asked about the First Ladies Garden upkeep and Rawn said she thought that was a possibility to discuss. Marilyn Heifner, a former director of the A&P who worked to open the Clinton House Museum talked about the significance of the First Ladies Garden. CEO Rawn discussed some of the key changes in the budget. We are planning on a full year of programming at the town center and a full season of First Thursday and Lights Of The Ozarks expenses. Personnel is seeing a 12% increase in wages and salaries because we are adding back vacant positions. We have kept agency advertising stable and have added funds to promotion expenses for internal marketing activities. Rawn pointed out significant capital investments included in this budget: • Fayetteville Town Center HVAC Unit $45,000 • Fayetteville Town Center ballroom carpet $110,000 • Fayetteville Town Center ballroom doors $150,000 • Fayetteville Town Center bathroom remodel $200,000 • Experience Fayetteville bathrooms and carpet $90,000 Rawn asked Jennifer Walker, VP of Finance, to speak about the Cyclocross budget. This multi -year project concludes with the January 2022 event. Walker reviewed grant funding, event revenue and expenditures. Rawn reiterated that this separate from our 2022 operating budget and is not tax funded revenue. Walker also spoke about the fund balance which will be around 5 million when 2022 begins. She then reviewed the operating and the capital reserves which will not be touched without commission knowledge and permission. She noted that the capital funds request put forth by the Fayetteville Town Center will deplete the reserve for this year and that the commission could at any time decide to make additional contributions to the reserve. Rawn said the budget presentation was concluded and asked the commission to proceed with questions or a motion. Commissioner Martin asked if the net revenue of $257,000 included the $100,000 amount put into the capital reserve and Rawn said yes. Commissioner Moya asked about the increase in First Thursday and Rawn said that particular line item hasn't grown much in 3 years and we wanted to increase programming next year. Commission Martin said he would like to keep tension on the Clinton House Museum budget. Commissioner Bunch asked about bands hired for First Thursday and if they were local or out of state. Rawn said they were a mixture but mainly in a driving distance. Rawn commended Community Engagement Manager Chloe Bell for her work in creating a diverse and well-rounded entertainment ticket. Commissioner Moya said events like First Thursday only helped our HMR partners and asked if we wanted to consider any other events that could showcase our partners such as a "Bite" event that the LPGA did. Rawn said that the promotions line item was a way for us to do more like this such as the Fayetteville Ale Trail, etc. A lot of good discussion happened around events to promote restaurants and also our local breweries. Commissioner Moya asked about the Memorandum of Understanding with TheaterSquared. Rawn recapped that in lay persons terms, it appeared that we could change the amount if the commission wanted to. Rawn suggested that we ask TheaterSquared to present an impact report when their fiscal year ends. Commissioner Moya asked if we could consider an ask to tell their database about our HMR partners and ask their patrons to visit our HMR partners while taking in a show. Commissioner Martin suggested a Good Neighbor policy of financial expectations we would have for an organization we fund at $50,000. Commissioner Bunch requested Commissioner Martin make a motion to review TheaterSquared for an end of the year financial and tourism impact and to also vote annually on the $200,000 payment. Commissioner Martin made a motion that TheaterSquared be asked to present an impact report on their year and for the commission to vote each year on the payment to TheaterSquared with Chair Kinney seconding the motion. Chair Kinney called a roll call vote with the motion passing unanimously. CEO Rawn said she would talk with TheaterSquared to determine a procedure and bring the procedure back to the commission for approval or amendments. It was noted that the 2022 allocations would not be sent to TheaterSquared until a presentation could be made. Chair Kinney asked if there were any other questions about the 2022 budget presentation. There being none, Commissioner Martin made a motion to approve the 2022 budget with Chair Kinney seconding it. It passed unanimously via a roll call vote. At 3:38pm the commission went into executive session per the agenda. At the end of the executive session, Commissioner Bunch made a motion to move CEO Molly Rawn's salary to $150,000 starting January 1st and maintain the $5,000 car allowance. Chair Kinney seconded it and it passed unanimously. Several commissioners thanked Rawn for her leadership. With no other business, Chair Kinney adjourned the meeting at 4:41 pm. Minutes submitted by Amy Stockton, Director of Operations, Experience Fayetteville. IrdI�1""11I'� Monthly A&P Tax Collections 2021 ** U 7� • • C 1-1 a 3114% 4.43% 4.12% C • 0 -18.70% % change over previous year 32.90% jan S S apr (may jun jul aug sep oct 8 Snov dec S2919852 S3599813 S3379169 S3779483 p p O 0 0 CD CD CD CD 0 0 CD CD 0 0 CD CD CD CD CD CD CD CD CD CD CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o CS o o C5 o 0 0 0 0 0 0 0 0 0 0 0 0 o CT CT CT CT o 0 LC) C9 I� 00 G) O N m q Ln Q0 r- 00 CT O N C Y) 't L.0 Q0 I- 00 M CD T T- � N N N N N N N N N N C'7 C'7 C`') C`7 C`) C'0 CY) C'') C`7 C`) Izzt -10.20% -4.22% -18.43%-17.05% 9.21 % 5.06% 59.93 % 6.48 % 100.72% 5.02% 58.21 % 9.84% 49.02% 9.14% 31.84% 10.52% 22.81 % 5.78% 50.29 % 17.62 % 36.62% 18.89% 46.58% 23.90% change % change from from 2020 2019 ** This represents one half of the total HMR collections. The other half supports the Parks and Recreation department. • 0 j24rUd Prior DuesCOIIE - — 7 jF ntal HMR Coll 6.50% -3.37% 6.67% • 0 5MI ILA 1406 -1020% % change over previous year 34.04% jan S I S apr I (may I jun jul I aug I sep Oct I nov I dec Monthly A&P Tax Collections 2022** S353,407] 0 0 0 O O 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD CD 0 0 0 0 0 0 o a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LC) C9 I� 00 G) O T- N m q Ln Q0 I� 00 Cr O N CY) � L-0 QD I- 00 6) 0 N N N N N N (Iq N N N C`) C'7 C`7 C`') C`') CY') C'7 C`7 C`') C`) 171- 34.04% change from 2021 28.38% change from 2019 ** This represents one half of the total HMR collections. The other half supports the Parks and Recreation department. Memo P l[AY� To: Molly Rawn, CEO, Experience Fayetteville Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, VP Finance, Experience Fayetteville Date: February 18, 2021 Re: Financial Statements — December 2021 This packet contains Experience Fayetteville DRAFT Financial Statements for the year ended December 31, 2021. Total Revenue YTD: $4,624,741 or 114%; We are 14% ahead of target. Tax Receipts - $3,998,904 (ahead of budget by 16% ytd) Town Center - $190,823 PPP Loan Forgiveness - $245,900 Other - $189,114 Total Operating Expenditure YTD: $3,562,243 or 88%; 12% below budget target. EF Main - $2,935,784 Town Center - $626,458 HMR tax continues to exceed expectations in December Collections (November activity), and YTD collections now exceed budget expectations by 16% and $538,328. 2021 YTD HMR tax collections are $216,446 more than 2019 YTD Collections. Operating Net Income is $1,062,498 year to date. Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ December 31, 2021 CONSOLIDATED Year -to -Date Actual Budget Over/(Under) Budget %of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 3,998,904 3,460,575 538,329 115.6% Rental Revenue 160,772 350,250 (189,478) 45.9% Event Revenue 40,810 37,500 3,310 108.8% Visitor Center Store Revenue 46,412 45,258 1,154 102.6% Parking Revenue 26,873 21,500 5,373 125.0% Advertising Revenue 3,135 8,000 (4,865) 39.2% Grant/Other Revenue 339,012 122,420 216,592 0.0% Interest and Investment Revenue 8,823 21,500 (12,677) 41.0% Total Revenue 4,624,741 4,067,003 557,738 113.7% Expenses Operating Expenses Rental Expenses 29,376 68,690 (39,314) 42.8% Event Expenses 69,905 73,800 (3,895) 94.7% Visitor Center & Museum Store 49,855 41,560 8,295 120.0% Personnel 1,194,165 1,329,679 (135,514) 89.8% Sales & Marketing 658,503 961,675 (303,172) 68.5% Office and Administrative 540,589 593,369 (52,780) 91.1% Bond Payments 701,092 707,000 (5,908) 99.2% Other grants 118,758 91,230 27,528 0.0% TheatreSquared Contribution 200,000 200,000 - 100.0% Total Operating Expenses 3,562,243 4,067,003 (504,760) 87.6% Net Operating Income/(Loss) 1,062,498 - 1,062,498 0.0% Other Income Unrealized Gain/(Loss) on Investments 382,954 0.0% Other Expenses HE & Improvements 170,488 218,250 (47,762) 78.1% Depreciation Expense 145,153 0.0% Cost of Goods Sold (7,768) 0.0% Net Income/(Loss) (without Cyclocross Grants) 1,137,579 (218,250) 972,874 -521.20 Net Income/(Loss) for Cyclocross Events 774,998 Total Net Income/(Loss) 1,912,577 Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ December 31, 2021 CONSOLIDATED Year -to -Date Actual Budget Over/(Under) Budget %of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 3,998,904 3,460,575 538,329 115.6% Rental Revenue 160,772 350,250 (189,478) 45.9% Event Revenue 40,810 37,500 3,310 108.8% Visitor Center Store Revenue 46,412 45,258 1,154 102.6% Parking Revenue 26,873 21,500 5,373 125.0% Advertising Revenue 3,135 8,000 (4,865) 39.2% Grant/Other Revenue 339,012 122,420 216,592 0.0% Interest and Investment Revenue 8,823 21,500 (12,677) 41.0% Total Revenue 4,624,741 4,067,003 557,738 113.7% Expenses Operating Expenses Rental Expenses 29,376 68,690 (39,314) 42.8% Event Expenses 69,905 73,800 (3,895) 94.7% Visitor Center & Museum Store 49,855 41,560 8,295 120.0% Personnel 1,194,165 1,329,679 (135,514) 89.8% Sales & Marketing 658,503 961,675 (303,172) 68.5% Office and Administrative 540,589 593,369 (52,780) 91.1% Bond Payments 701,092 707,000 (5,908) 99.2% Other grants 118,758 91,230 27,528 0.0% TheatreSquared Contribution 200,000 200,000 - 100.0% Total Operating Expenses 3,562,243 4,067,003 (504,760) 87.6% Net Operating Income/(Loss) 1,062,498 - 1,062,498 0.0% Other Income Unrealized Gain/(Loss) on Investments 382,954 0.0% Other Expenses HE & Improvements 170,488 218,250 (47,762) 78.1% Depreciation Expense 145,153 0.0% Cost of Goods Sold (7,768) 0.0% Net Income/(Loss) (without Cyclocross Grants) 1,137,579 (218,250) 972,874 -521.20 Net Income/(Loss) for Cyclocross Events 774,998 Total Net Income/(Loss) 1,912,577 Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ December 31, 2021 Experience Fayetteville Year -to -Date Actual Budget Over/(Under) Budget %of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 3,998,904 3,460,576 538,328 115.6% Event Revenue 38,471 26,500 11,971 145.2% Visitor Center Store Revenue 46,412 45,258 1,154 102.6% Advertising Revenue 3,135 8,000 (4,865) 39.2% Grant Revenue (Cycling Coord / DSAC) 339,012 122,420 216,592 276.9% Interest and Investment Revenue 7,983 19,000 (11,017) 42.0% Total Revenue 4,433,917 3,681,754 752,163 120.4% Expenses Operating Expenses Event Expenses 61,032 62,800 (1,768) 97.2% Visitor Center & Museum Store 49,855 41,560 8,295 120.0% Personnel 876,487 910,718 (34,231) 96.2% Sales & Marketing 657,249 942,375 (285,126) 69.7% Office and Administrative 271,311 302,799 (31,488) 89.6% Bond Payments 701,092 707,000 (5,908) 99.2% Other Grants 118,758 91,230 27,528 0.0% TheatreSquared Contribution 200,000 200,000 - 100.0% Total Operating Expenses 2,935,784 3,258,482 (322,698) 90.1% Net Income/(Loss) Before Other Revenue and Expenses 1,498,133 423,272 1,074,861 353.9% Other Income Unrealized Gain/(Loss) on Investments 382,954 - 382,954 0.0% Other Expenses FFE & Improvements - 15,000 (15,000) 0.0% Depreciation Expense 75,333 Cost of Goods Sold (7,768) Net Income/(Loss) 1,813,522 408,272 1 1,022,295 444.2% Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ December 31, 2021 Town Center Year -to -Date Actual Budget Over/(Under) Budget o of Budget / Revenue Rental Revenue 160,772 350,250 (189,478) 45.9% Event Revenue 2,339 11,000 (8,661) 21.3% Parking Revenue 26,873 21,500 5,373 125.0% Interest and Investment Revenue 839 2,500 (1,661) 33.6% Total Revenue 190,823 385,250 (194,427) 49.5% Expenses Operating Expenses Rental Expenses 29,376 68,690 (39,314) 42.8% Event Expenses 8,873 11,000 (2,127) 80.7% Personnel 317,678 418,962 (101,284) 75.8% Sales & Marketing 1,254 19,300 (18,046) 6.5% Office and Administrative 269,278 290,570 (21,292) 92.7% Total Operating Expenses 626,458 808,522 (182,064) 77.5% Net Income/(Loss) Before Other Revenue and Expenses (435,635) (423,272) (12,363) 102.9% Other Expenses FFE & Improvements 1 170,488 203,250 (32,762) 16.1% Depreciation Expense 69,820 Bad Debt Expense 4,038 Net Income/(Loss) (679,981) (626,522) (49,421) 108.5% Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ December 31, 2021 Cyclocross Events Year -to -Date Actual Budget Over/(Under) Budget o / of Budget Revenue Other Revenue Cyclocross Grant Funds 2,635,000 675,000 1,960,000 390.4% Cyclocross Events Revenue 57,536 288,500 (230,964) 19.9% Interest and Investment Revenue 3,443 3,000 443 114.8% Total Revenue 2,695,979 966,500 1,729,479 278.9% Expenses Operating Expenses Contract Labor - 0.0% Marketing - 0.0% Office and Administrative Expenses 2,500 (2,500) 0.0% Cyclocross Events 1,920,980 1,342,089 578,891 143.1% Total Operating Expenses 1,920,980 1,344,589 576,391 142.9% Net Income/(Loss) 774,998 (378,089) 1,153,087 -205.0% Grant Carry -Forward 766,069 Cumulative Net Income / (Loss) 1,541,067 Memo P l[AY� To: Molly Rawn, CEO, Experience Fayetteville Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, VP Finance, Experience Fayetteville Date: February 18, 2022 Re: Financial Statements — January 2022 This packet contains Experience Fayetteville Financial Statements for the month ended January 31, 2022. The following reports are included in the packet: • Summary P&L Financials for month ended January 31, 2022 • Balance Sheet for month ended January 31, 2022 Target Budget January — 8% • Revenue target 8% of budget or higher by the end of January 2022. Expenditures target 8% or lower at January 2022. Total Revenue YTD: $373,016 or 7.7%; We are 0.03% behind target. *Being slightly below revenue in January is to be expected as grant revenue and event revenue is scheduled for later in the year. Tax Receipts - $353,407 (ahead of budget by 0.5% ytd) Town Center - $4,447 (note $140k+ unearned revenue on Balance Sheet) Other - $15,162 Total Operating Expenditure YTD: $257,470 or 5%; 3% below budget target. EF Main - $212,310 Town Center - $45,160 HMR tax exceeds expectations in January Collections (December activity), and YTD collections exceed budget expectations by 0.5% and $7,200. 2022 YTD HMR tax collections are $78,135 more than 2019 YTD Collections. Operating Net Income is $156,258 year to date. Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ January 31, 2022 CONSOLIDATED Year -to -Date Actual Budget Over/(Under) Budget %of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 353,407 4,154,500 (3,801,093) 8.5% Rental Revenue 3,905 478,800 (474,895) 0.8% Event Revenue 3 33,550 (33,547) 0.0% Visitor Center Store Revenue 14,528 42,000 (27,472) 34.6% Parking Revenue 520 23,000 (22,480) 2.3% Advertising Revenue - 5,000 (5,000) 0.0% Grant/Other Revenue - 86,500 (86,500) 0.0% Interest and Investment Revenue 652 22,000 (21,348) 3.0% Total Revenue 373,016 4,845,350 (4,472,334) 7.7% Expenses Operating Expenses Rental Expenses 767 106,000 (105,233) 0.7% Event Expenses 1,151 88,450 (87,299) 1.3% Visitor Center & Museum Store 6,051 43,700 (37,649) 13.8% Personnel 113,193 1,439,624 (1,326,431) 7.9% Sales & Marketing 29,838 1,152,453 (1,122,615) 2.6% Office and Administrative 48,005 722,818 (674,813) 6.6% Bond Payments 58,465 707,000 (648,535) 8.3% Contribution to Capital Reserves - 100,000 (100,000) 0.0% Other grants 155,600 (155,600) 0.0% Mobile VC 35,000 (35,000) 0.0% TheatreSquared Contribution - 200,000 (200,000) 0.0% Total Operating Expenses 257,470 4,750,645 (4,493,175) 5.4% Net Operating Income/(Loss) 115,546 94,705 20,841 0.0% Other Income Unrealized Gain/(Loss) on Investments (24,039) 0.0% Other Expenses HE & Improvements 17,801 595,000 (577,199) 3.0% Depreciation Expense 11,123 0.0% Cost of Goods Sold (1,622) 0.0% Net Income/(Loss) (without Cyclocross Grants) 64,204 (500,295) 588,539 -12.8% Net Income/(Loss) for Cyclocross Events (123,612) Total Net Income/(Loss) (59,408) Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ January 31, 2022 Experience Fayetteville Year -to -Date Actual Budget Over/(Under) Budget %of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 353,407 4,154,500 (3,801,093) 8.5% Rental and Event Revenue - 44,350 (44,350) 0.0% Visitor Center Store Revenue 14,528 42,000 (27,472) 34.6% Advertising Revenue - 5,000 (5,000) 0.0% Grant Revenue (Cycling Coord / DSAC) - 86,500 (86,500) 0.0% Interest and Investment Revenue 633 19,000 (18,367) 3.3% Total Revenue 368,569 4,351,350 (3,982,781) 8.5% Expenses Operating Expenses Event Expenses 651 88,450 (87,799) 0.7% Visitor Center & Museum Store 6,051 43,700 (37,649) 13.8% Personnel 94,062 1,020,194 (926,132) 9.2% Sales & Marketing 28,638 1,126,353 (1,097,715) 2.5% Office and Administrative 24,443 379,523 (355,080) 6.4% Bond Payments 58,465 707,000 (648,535) 8.3% Contribution to Capital Reserve - 100,000 (100,000) 0.0% Other Grants 155,600 (155,600) 0.0% Mobile VC 35,000 (35,000) 0.0% TheatreSquared Contribution - 200,000 (200,000) 0.0% Total Operating Expenses 212,310 3,855,820 (3,643,510) 5.50 Net Income/(Loss) Before Other Revenue and Expenses 156,258 495,530 (339,272) 31.5% Other Income Unrealized Gain/(Loss) on Investments (24,039) - (24,039) 0.0% Other Expenses FIFE & Improvements - 90,000 (90,000) 0.0% Depreciation Expense 6,278 Cost of Goods Sold (1,622) Net Income/(Loss) 127,563 405,530 (253,928) 31.5% Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ January 31, 2022 Town Center Year -to -Date Actual Budget Over/(Under) Budget o of Budget / Revenue Rental Revenue 3,905 468,000 (464,095) 0.8% Event Revenue 3 - 3 0.0% Parking Revenue 520 23,000 (22,480) 2.3% Interest and Investment Revenue 19 3,000 (2,981) 0.6% Total Revenue 4,447 494,000 (489,553) 0.9% Expenses Operating Expenses Rental Expenses 767 106,000 (105,233) 0.7% Event Expenses 500 - 500 0.0% Personnel 19,131 419,430 (400,299) 4.6% Sales & Marketing 1,200 26,100 (24,900) 4.6% Office and Administrative 23,561 343,295 (319,734) 6.9% Total Operating Expenses 45,160 894,825 (849,665) 5.0% Net Income/(Loss) Before Other Revenue and Expenses (40,712) (400,825) 360,113 10.2% Other Expenses FFE & Improvements 17,801 505,000 (487,199) 96.5% Depreciation Expense 4,845 Net Income/(Loss) 1 (63,359) (905,825) 842,466 1 7.0% Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ January 31, 2022 Cyclocross Events Year -to -Date Actual Budget Over/(Under) Budget o / of Budget Revenue Other Revenue Cyclocross Grant Funds - - - 0.0% Cyclocross Events Revenue 507,858 300,000 207,858 169.3% Interest and Investment Revenue 409 - 409 #DIV/0! Total Revenue 508,267 300,000 208,267 169.4% Expenses Operating Expenses Contract Labor - - 0.0% Marketing - - 0.0% Office and Administrative Expenses - - 0.0% Cyclocross Events 631,879 1,715,000 (1,083,121) 36.8% Total Operating Expenses 631,879 1,715,000 (1,083,121) 36.8% Net Income/(Loss) (123,612) (1,415,000) 1,291,388 8.7% Grant Carry -Forward 1,541,067 Cumulative Net Income / (Loss) 1,417,455 Fayetteville A&P Commission Balance Sheet As of January 31, 2022 ASSETS Current Assets Cash 3,728,994 Investments 1,201,911 Accounts Receivable 368,637 Prepaid Expenses 47,562 Deposits 30,617 Visitors Guide Trade 3,052 I nventory Asset 21,455 Total Current Assets 5,402,228 Other Assets Capital Assets Furniture & Fixtures 96,641 Equipment 641,976 EF/CVB Building 940,410 EF/CVB Land 198,621 Building Additions 971,952 Walker -Stone House 1,167,218 Construction in Progress 27,109 Accumulated Depreciation (1,377,556) Total Other Assets 2,666,370 TOTAL ASSETS 8,068,598 LIABILITIES AND EQUITY Current Liabilities Accounts Payable 276,701 Unearned Revenue 140,578 Total Liabilities 417,279 Equity Unreserved Fund Balance 5,271,975 Operating Reserve 1,000,000 Capital Reserve 1,000,000 Temporarily Restricted Funds 439,895 Net Revenue Gain/(Loss) on Investments (24,039) Net Revenue without Cyclocross 22,897 Net Revenue for Cyclocross (59,408) (60,551) Total Equity 7,651,319 TOTAL LIABILITIES AND EQUITY 8,068,598 P.UZZ WALMART UUI CYCLU=UHL PROMOTIONAL WFRSITF ACTI'U Iverane [JCA,,! 1 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • N livd:jll id ill jT I T I I I luillilL4011MI . . . . . . . . . . . . . . . . . . ......................................................... ! 7 ; ........................................................ . I 1 .0 j m I m 1014 1 " , V V L3M LLM5 January 28-30 •Centennial Park cyclocrossfayetteviIlea r2022.com r Main Partner Official Partners Official Suppliers Institutional Partners 51IIIfillafl0 CROSSLAND nrt,K„ H es 9waawyort U6�MSt!alth VEST Knot ®WECHAMPION' ozarks:i;: �Y����E iniurmininn rnnnam. im. ��. �""".•`" o ANDS vmuaro ~ 8ANK HIGHL CsKM o ? � III I Ia I -N Average Session Duration: Average Pages/Session: Y @' ' i F y • ^: i r a�` 'M' �'�� � — 4 r �� -• it y -' 0� 7 p � 7'VA L r r 1p AFFIC SOURC 1.Organic Searc 2. Direct 3. Social Organic 4. Social Advertising 5. Referrals 6. Display Advertising TOP RFFER 1. Experience Fayetteville 2. Fayetteville Flyer 3. Wik'ipedia (France) 4. USA Cycling 5. DirectVelo 6. MTBS,CZ 7. Oz Trails 8. Visit Bentonville SITES: 7J :f r, 1 lu oldies ed Kinndc 1 I Ll 11111moI lilif I I �c' • • FAYETTEVILLE-ARKANSAS • ' • USA �v cyclocrossfayetteviIlea r2022.com MAIN PARTNER OFFICIAL PARTNERS OFFICIAL SUPPLIERS INSTITUTIONAL PARTNERS 51-Illil�lfl0 v�a/�f%f7% CROSSLAND pRK N 4S �""` QagooaOQ�aaes 4�beardedgoat• UAMSHealth «"°°•'°""'°°'""'°"'" G HIGHLANDS ox o I r k�o �� � �� ozarko g x�AyUrui�E S 4QMdS' BANK CRMRTRRCTIPXCPMPANT.IMC. 4 Onsite Spectators: 4D 4D 4D ID 4D Over 1711500+ Total Fans Attended the • ID • • • Lm m m ive Racing Events in Fayetteville 40 ID 4D 4D 4D 1 1 a ;N Racing Broadcast - U L :.,.r 295.200+ Racine Fans V ];!Z VValmart tlt:l t;vcic 0 n U :41 1 2022 CYCLO-CROSS AM WORLD CH PIONSHIP FAYETTEVIUSA _ I loom FArE7�ui�E � II I Ia I -N a I I I� GCjN RACING BROADCAST TOP THREE MARKET PERCENTAGE/ TOTAL VIEWS:0 a,. AL United States 41.37% United Kingdom 34.57% Germany 8.07% C I V09 p/ Films C j Race TV *=uI • �, 14�'J[1IG40r.kQSs �[7) wt�rWv y rss Walmart "' Wo111D C14AMMONSHIn NAt4TIRYNitMl1 94.99 1 . go FMP= YYrwww rut,, i -iur�u Acccu Memo To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission; Fayetteville Advertising and Promotion Commissioners From: Tyler Wilson, General Manager, Fayetteville Town Center Miletus Callahan-Barile, Facilities Manager, Fayetteville Town Center Date: February 28, 2022 Re: Elevator Service Agreement Renewal at Fayetteville Town Center Background: The Fayetteville Town Center elevator service agreement is due for renewal. The current service agreement is with Otis Elevators. Three price quotes for this service agreement were solicited. Recommendation: It is the recommendation of the Facilities Manager, Fayetteville Town Center General Manager, and the CEO that the commission accept the renewal quote for a three-year service agreement with Otis Elevators. The new Otis service contract was negotiated down from $21,241.00 yearly to $11,700.00 yearly. This contract adjustment should save Fayetteville Town Center approximately $9,541.00 per year and has a cumulative total cost of $35,100.00 over the three- year life of the contract. The Otis quote outlining the full scope, itemized costs, and the contract is attached. DATE: 2/01/2022 TO: Fayetteville Town Center Attn: Miletus Callahan-Barile P.O. Box 4157 Fayetteville, AR 727024157 EQUIPMENT LOCATION: FAYETTEVILLE TOWN CENTER 15 W. Mountain St. Fayetteville, AR 72702 PROPOSAL NUMBER: ASP883 EQUIPMENT DESCRIPTION: No Of Units Type Of Units Manufacturer 4 HYDRAULIC DOVER FROM: Otis Elevator Company 241 W. Spring St., Ste 5 Fayetteville, AR 72701 Shane Harvey Phone: (501) 246-9278 Fax: (860) 622-0051 Customer Designation LH PASS ELV 1, RH PASS ELV 2, SMALL FRT, BIG FRT Machine Number D46940, D46941, D46942, D46944 OTIS MAINTENANCE We propose to furnish Otis Maintenance on the equipment ("Units") described above. Otis Maintenance is a full preventive maintenance service intended to protect your investment, extend equipment life, and provide a high level of performance and reliability. OTIS MAINTENANCE MANAGEMENT SYSTEMSM We will use the Otis Maintenance Management System preventive maintenance program to deliver service tailored to your specific building needs. Equipment type, component life, equipment usage, and building environment will be taken into account by the OMMS® scheduling system, which will be used to plan maintenance activities in advance. The Units will be provided with devices to monitor equipment usage. We will use OMMS standard work processes developed and continuously improved by Otis. Under this Contract, we will maintain the Units on the following terms and conditions: PERFORMANCE MAINTENANCE We will maintain the Units using trained personnel directly employed and supervised by us. The maintenance will include inspection, lubrication, and adjustment of the following parts: ■ Controller parts, selectors and dispatching equipment, relays, solid-state components, transducers, resistors, condensers, power amplifiers, transformers, contacts, leads, dashpots, timing devices, computer and microcomputer devices, steel selector tapes, mechanical and electrical driving equipment, signal lamps, and position indicating equipment. ■ Door operators, car door hangers, car door contacts, door protective devices, load weighing equipment, car frames, car safety mechanisms, platforms, car and counterweight guide shoes including rollers and gibs, and emergency car lighting. © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 1 of 9 ■ Hoistway door interlocks and hangers, bottom door guides, and auxiliary door closing devices. ■ Machines, worms, gears, thrust bearings, drive sheaves, drive sheave shaft bearings, brake pulleys, brake coils, contacts, linings, and component parts. ■ Motors, brushes, brush holders, and bearings. ■ Governor components, governor sheaves and shaft assemblies, bearings, contacts, governor jaws, deflector or secondary sheaves, car and counterweight buffers, car and counterweight guide rails, car and counterweight sheave assemblies, top and bottom limit switches, governor tension sheave assemblies, and compensating sheave assemblies. ■ Pumps, pump motors, operating valves, valve motors, leveling valves, plunger packings, exposed piping, above ground plungers and cylinders, and hydraulic fluid tanks. ■ Escalator handrails, handrail drive chains, handrail brush guards, handrail guide rollers, alignment devices, steps, step treads, step wheels, step chains, step axle bushings, comb plates, floor plates, tracks, external gearing, and drive chains. ■ Escalator upper drives, upper drive bearings, tension sprocket bearings, upper newel bearings and lower newel bearings, demarcation lights, and comb lights. RELIABILITY PARTS COVERAGE If necessary, due to normal usage and wear, Otis will repair or replace any of the parts specified above at their sole discretion, unless specifically excluded elsewhere in the contract. Any parts under this Contract requiring replacement will be replaced with parts selected by Otis. In addition, we will replace all wire ropes or coated steel belts as often as necessary to maintain an appropriate factor of safety. As conditions, usage, or Code warrants, we will equalize the tension on hoisting ropes, resocket ropes for drum machines, and repair or replace conductor cables and hoistway and machine -room elevator wiring PARTS INVENTORY We will during the term of this Contract maintain a supply of frequently used replacement parts and lubricants selected by Otis to meet the specific routine requirements of the Units. Any replacement parts stored in the machine room remain our property until installed in the Units. We further agree to maintain a supply of routine replacement parts available for express delivery in case of emergencies. QUALITY CONTROL We will periodically conduct field audits of our personnel and the Units to maintain quality standards. Otis field engineers will provide technical assistance, technical information, and Code consultation to support our maintenance organization. RESPONSIVENESS 24-HOUR DISPATCHING We will, at your request, provide you with access to eService and our OTISLINE 24-hour, year-round dispatching service. In the event a Unit malfunction occurs between regular examinations, you will be able to place a service call on eService or through an OTISLINE customer service representative, who will, at your request, dispatch an examiner to perform service. In the event Otis receives an emergency call from the phone in the elevator and a passenger indicates a need for assistance, Otis shall attempt to contact a building representative for an assessment of the situation and authorization to respond to the call. If Otis is unable to reach a building representative, Otis shall respond to the emergency call from the phone in the elevator. The visit will be treated as a Callback. It is your responsibility to: (a) have a representative available to receive and respond to OTISLINE calls; and (b) maintain working telephone equipment. COMMUNICATION CUSTOMER REPRESENTATIVE As a service to you, and at your request an Otis representative will be available to discuss with you your elevator needs in the areas of modernization, traffic handling ability, recommendations and requirements of Code authorities, proper use and care of the Units, and the OMMS program. There is no additional charge for this consulting service, but by making this service available to you, Otis does not assume any duty to warn. REPORTS — eSERVICE © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 2 of 9 We will use the OMMS program to record completion of maintenance procedures. We will, at your request, provide you access to eService. You will be able to access twelve (12) months of repair, completed maintenance procedure and service call history for the Unit(s). You will be responsible for obtaining Internet access to use eService. SAFETY AND ENVIRONMENT SAFETY TESTS — HYDRAULIC ELEVATORS We will conduct an annual no load test and annual pressure relief valve test. FIREFIGHTERS' SERVICE TEST If the equipment has firefighters' service, you assume responsibility for performing and keeping a record of any Code required tests and for the maintenance, functioning and testing of the smoke and/or heat detectors. We will test the firefighters' service keyswitch on a monthly basis. If during the initial firefighters' service test any elevator firefighters' service is found to be inoperable, the building will be responsible for all of the cost associated with the repairs necessary to bring the unit in compliance with the applicable Codes. SAFETY TRAINING We will instruct our personnel to use appropriate personal protection equipment and follow safe work practices. ENVIRONMENTAL PROTECTION Otis endeavors to reduce generation of waste materials, to minimize risks to the environment, customers, the general public and Otis employees, and to comply with all federal and state environmental laws and regulations. Material Safety Data Sheet (MSDS) Manuals are available for review at your request. You assume responsibility for removal of wastes, including but not limited to hydraulic oil, spoils, asbestos, etc., as it is not part of this Contract. MAINLINE DISCONNECTS You agree to engage a qualified electrician to service at least once annually the elevator mainline disconnects located in the elevator equipment room. SHARED RESPONSIBILITY You agree to provide us unrestricted ready and safe access to all areas of the building in which any part of the Units are located and to keep all machine rooms and pit areas free from water, stored materials, and debris. You agree to provide a safe work place for our personnel, and to remove and remediate any waste or hazardous materials in accordance with applicable laws and regulations. If any Unit is malfunctioning or is in a dangerous condition, you agree to immediately notify us using the 24-hour OTISLINE service. Until the problem is corrected, you agree to remove the Unit from service and take all necessary precautions to prevent access or use. You agree to properly post, maintain, and preserve any and all instructions or warnings to passengers in connection with the use of any Units. In furtherance of OSHA's directive contained in 29 C.F.R. § 1910.147(f)(2)(i), which requires that a service provider (an "outside employer") and its customer (an "on -site employer") must inform each other of their respective lock out/tag out ("LOTO") procedures whenever outside servicing personnel are to be engaged in control of hazardous energy activities on the customer's site, Otis incorporates by reference its mechanical LOTO procedures and its electrical LOTO procedures. These procedures can be obtained at www.otis.com by (1) clicking on "The Americas" tab on the left side of the website; (2) choosing "US/English" to take you to the "USA" web page; (3) clicking on the "Otis Safety" link on © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 3 of 9 the left side of the page; and (4) downloading the "Lockout Tagout Policy Otis 6.0" and "Mechanical Energy Policy Otis 7.0," both of which are in .pdf format on the right side of the website page. Customer agrees that it will disseminate these procedures throughout its organization to the appropriate personnel who may interact with Otis personnel while Otis personnel are working on site at Customer's facility. WORK SCHEDULE NORMALHOURS All maintenance procedures and repairs will be performed during our regular working hours of our regular working days for the examiners who perform the service. All lamp and signal replacements will be performed during regular examinations. For purposes of this Contract, a Callback is a response by Otis to a request for service or assistance made (a) by the customer or customer representative, (b) by the building or building representative; (c) by emergency personnel; (d) through the ADA phone line, and/or (e) through REM® monitoring system, for service or assistance, on an as needed basis, excluding regularly scheduled maintenance. Regular working hours: 8:00 AM — 4:30 PM. Regular working days: Monday — Friday excluding holidays. OVERTIME On Callbacks outside of regular working hours, Otis will absorb the worked hours at straight time rates and you will be charged for the overtime premium portion only, including for travel time. OWNERSHIP AND LICENSES WIRING DIAGRAMS You agree to provide us with current wiring diagrams reflecting all previously made changes for Units covered by this Contract to facilitate proper maintenance of the equipment. We shall maintain the wiring diagrams so that they properly reflect any changes made by Otis to the equipment. These diagrams will remain your property. OTIS SERVICE EQUIPMENT Any counters, meters, tools, remote monitoring devices, or communication devices which we may use or install under this Contract remain our property, solely for the use of Otis employees. Such service equipment is not considered a part of the Units. You grant us the right to store or install such service equipment in your building and to electrically connect it to the Units. You will restrict access to the service equipment to authorized Otis personnel. You agree to keep the software resident in the service equipment in confidence as a trade secret for Otis. You will not permit others to use, access, examine, copy, disclose or disassemble the service equipment or the software resident in the service equipment for any purpose whatsoever. If the service is terminated for any reason, we will be given access to your premises to remove the service equipment, including the resident software, at our expense. OTIS SOFTWARE Software owned by Otis may be embedded in parts or otherwise provided by Otis as part of this maintenance agreement. You have the right to use this software only for operation of the units for which the part was provided. You may also make a backup or archival copy of the software, provided you reproduce the copyright notice and any other legend of ownership on the copy. You may not otherwise copy, display, adapt, modify, distribute, reverse assemble, reverse compile, or otherwise translate the software. You will not transfer possession of the software except as part of a transfer of ownership of the Units and the assumption of the rights and obligations under this agreement by the transferee. NON-OTIS SOFTWARE You retain your rights to any software not provided by Otis contained in the Units and agree to allow Otis to make one backup or archival copy for you. SERVICE TOOLS You are responsible to secure our right to use any special service tools required to maintain your non- Otis equipment. These tools must be provided prior to us beginning maintenance on such equipment. © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 4 of 9 THE UNITS It is agreed that we do not assume possession or control of the Units, that such Units remain yours solely as owner and operator, lessee, or agent of the owner or lessee, and that you are solely responsible for all requirements imposed by any federal, state, or local law, Code, ordinance or regulation. CLARIFICATIONS This Contract does not cover car enclosures (including, but not limited to, wall panels, door panels, car gates, plenum chambers, hung ceilings, lighting, light diffusers, light tubes and bulbs, handrails, mirrors and floor coverings), rail alignment, hoistway enclosures, hoistway gates, hoistway inserts and brackets, mainline disconnect switches, doors, door frames, sills, swing door hinges and closing devices, below ground or unexposed hydraulic cylinders and plungers, buried or unexposed piping, escalator balustrades, escalator lighting or wedge guards. Without affecting our obligation to provide service under this Contract, you agree to permit us to train our personnel on the Units. This Contract does not cover computer and microcomputer devices, such as terminal keyboards and display units that are not exclusively dedicated to the elevator system. This Contract does not cover telephones installed by others, intercoms, heat sensors, smoke sensors, communications equipment, or safety signaling equipment, or instructions or warnings in connection with use by passengers. Calls for repairs that fall outside of the scope of this contract will incur charges for travel time, plus vehicle surcharges and expenses. We will not be required: (i) to make any tests other than that as specifically set forth herein; (ii) to make any replacements with parts of a different design or type; (iii) to make any changes in the existing design of the Units; (iv) to alter, update, modernize or install new attachments to any Units, whether recommended or directed by governmental authorities or by any third party; (v) to make repairs or replacements necessitated by failures detected during or due to testing of the Units or buried or unexposed hydraulic cylinders or piping and (vi) to replace or repair any component or system utilizing obsolete or discontinued parts, including parts for which the original design is no longer manufactured by the original equipment manufacturers, or parts where the original item has been replaced by an item of different design or is replaceable only by fabrication; (vii) to provide reconditioned or used parts; (viii) to make any replacements, renewals, or repairs necessitated by reason of any cause beyond our control including, but not limited to, fire, explosion, theft, floods, water, weather, earthquake, vandalism, misuse, abuse, mischief, or repairs by others. You assume responsibility for the cost of correcting all Elevator Code violations existing on the date we enter into this Contract. If such Code violations or other outstanding safety violations are not corrected in accordance with this Contract, Otis may with respect to the equipment not meeting Code requirements cancel this Contract without penalty by providing thirty (30) days written notice. Should you require us to interface with a third party work order, insurance or safety systems, Otis will add an appropriate fee to cover the additional cost associated with this service. Neither party shall be liable for any loss, damage or delay due to any cause beyond our reasonable control including, but not limited to, acts of government, strikes, lockouts, other labor disputes, fire, explosion, theft, floods, water, weather, earthquake, riot, civil commotion, war, vandalism, misuse, abuse, mischief, or acts of God. We agree that we shall be liable for accidents and injuries to person or property when adjudged to have been caused by the sole negligence or willful misconduct of Otis or our employees. In all other instances, Customer shall indemnify, defend and hold us harmless against all claims, damages, losses, costs, and expenses (including attorney's fees and other litigation costs) arising out of or connected with the use, repair, maintenance, operation or condition of the Equipment. We shall maintain worker's compensation and employers' liability insurance covering our liability for injury or death sustained by our employees, and comprehensive general liability insurance. You shall insure that all risk insurance upon the full value of the Work and material delivered to the job site is maintained at no cost to us. If either party so requires, in writing, the other party shall furnish certificates of insurance evidencing the above insurance coverages. Notwithstanding any other agreement or provision to the contrary, under no circumstances will either party be liable for any indirect, special or consequential damages of any kind, including, but not limited to, fines or penalties, loss of profits, loss of rents, loss of good will, loss of business opportunity, additional financial costs, or loss of use of any equipment or property, whether in contract, tort, warranty or otherwise. You agree to provide us unrestricted ready and safe access to all areas of the building in which any part of the Units are located, to keep all machine rooms and pit areas free from water, stored materials, and debris, to provide a safe work © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 5 of 9 place for our personnel, to remove and remediate any waste or hazardous materials in accordance with applicable laws and regulations, and to provide a grounded, 3-prong electrical system and proper lighting in the machine rooms and pits. We shall not be obliged to perform until such unsafe condition has been remedied. If any Unit is malfunctioning or is in a dangerous condition, you agree to notify us as soon as possible using the 24-hour OTISLINE® service. Until the problem is corrected, you agree to remove the Unit from service and take all necessary precautions to prevent access or use. You will provide written notice within twenty-four hours after occurrence of any accident in or about the elevator (s) and/or escalator(s) to us and if required by law, to any local authorities. You further agree to preserve replaced parts. Escalator Units are designed only for transporting passengers. For escalator Units, you agree to take all necessary measures to prevent other items from being conveyed, so that features designed to protect passengers and prevent property damage are not damaged. When stationary, escalators are to be properly barricaded and not to be used as steps. You agree to properly post, maintain, and preserve any and all instructions or warnings to passengers in connection with the use of any Units. In the event of an entrapment, Customer will call Otis and wait for a trained and licensed elevator mechanic to arrive, except for a medical emergency situation where it may be appropriate to summon a professional first responder such as police or firemen. Customer agrees that its agents, contractors, employees or representatives shall not attempt to extricate any passengers from an elevator that becomes stalled within the hoistway. Otis will not be required to make renewals or repairs necessitated by fluctuations in the building AC power systems, adverse hoistway or machine room conditions (including temperature variations below 60 degrees and above 90 degrees Fahrenheit), excessive humidity, adverse environmental conditions, water damage, rust, fire, explosion, acts of God, misuse, or vandalism. If this Agreement is terminated prematurely for any reason, other than our own default, you agree to pay as liquidated damages, and not as a penalty, one-half (50%) of the remaining amount due under this Agreement. Should this Agreement be accepted by you in the form of a purchase order, the terms and conditions of this Agreement will take precedence over those of the purchase order. We will not be liable for any claim, injury, delay, death or loss or property resulting from telephone equipment failure, false alarms, interruption of telephone service, or "no voice calls", i.e. calls from inside the equipment to Otisline where there is no verbal response to the Otisline operator. ALTERATIONS You will not allow others to make alterations, additions, adjustments, or repairs to the equipment. SPECIAL PROVISIONS Notwithstanding any other provision herein to the contrary, the following provisions shall be applicable and govern in the event of conflict: CONTRACT PRICE AND TERM CONTRACT PRICE Nine hundred seventy-five dollars ($ 975.00 ) per month, payable Quarterly PRICE ADJUSTMENT Nine hundred seventy-five dollars ($ 975.00) of the original Contract Price will be increased or decreased by the percent increase or decrease in the straight time hourly labor cost under the IUEC contract on 01/01/2021 which was 86.157. The phrase "straight time hourly labor cost' means the sum of the straight time hourly labor rate plus the hourly cost of fringe benefits paid to elevator examiners in the locality where the equipment is to be maintained. © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 6 of 9 The Contract Price will be adjusted annually on the commencement date by the percentage increase or decrease in the straight time hourly labor cost under the IUEC contract then in effect. The term "straight time hourly labor cost" means the sum of the straight time hourly labor rate plus the hourly cost of fringe benefits paid to elevator examiners in the locality where the equipment is maintained. In addition, we may adjust the Contract Price as a result of any substantial changes in service expenses, including but not limited to expenses in connection with fuel, waste disposal, environmental requirements, cost of materials, changes to government regulations or other administrative costs. Any annual increases will be capped at 3.5%. TERM The Commencement Date will be 2/01/2022. The Term of this Contract unless modified under the extended term below, will be for three (3) years beginning on the Commencement Date. The Contract will automatically be renewed on the third anniversary for an additional one (1) year unless terminated by either party by giving written notice to the other party at least ninety (90) days, but no more than 120 days prior to the end of the current three (3) year term. Thereafter, the Contract will automatically be renewed on each first anniversary for an additional one (1) year term unless terminated by either party by giving written notice to the other party at least ninety (90) days, but no more than 120 days prior to the end of the then current one (1) year term. In the event that you sell the building or your interest is terminated prior to the expiration of the Contract, you agree to assign the Contract to the new owner or successor and to cause the new owner to assume your obligations under this agreement. If the new owner or successor fails to assume your obligations under the Contract, then you agree to pay to Otis all sums due for the unexpired Term. PAYMENTS Beginning on the Effective Date, payments will be due and payable on or before the first day of the contract year in which services are rendered beginning on the Commencement Date. The work shall be performed for the agreed price plus any applicable sales, excise or similar taxes as required by law. In addition to the agreed price, you shall pay to us any future applicable tax imposed on us, our suppliers or you in connection with the performance of the work described. You agree to pay a late charge from the date such sums become due of one and one-half percent (1.5%) per month, or the highest legally permitted rate, whichever is less, on any balance past due for more than thirty (30) days, together with all costs (including, but not limited to, attorneys' fees) incurred by us to collect overdue amounts. Failure to pay any sum due by you within sixty (60) days will be a material breach. We may at our option declare all sums due or to become due for the unexpired term immediately due and payable as liquidated damages, and until the same are paid be discharged from further obligations under the contract. Electronic Funds Transfer Payments (ACH/EFT) To set up automatic payments or to make one-time payments, please visit PUinvoicedirect.com to register. Please note, registration is available after your first invoice has been billed. ACCEPTANCE This proposal, when accepted by you below and approved by our authorized representative, will constitute the entire and exclusive contract between us for the services to be provided and your authorization to perform as outlined herein. All prior or contemporaneous oral or written representations or agreements not incorporated herein will be superseded. Any © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 7 of 9 purchase order issued by you in connection with the services to be provided will be deemed to be issued for your administrative or billing identification purposes only, and the parties hereto intend that the terms and conditions contained herein will exclusively govern the services to be provided. We do not give up rights under any existing contract until this proposal is fully executed. This Contract may not be changed, modified, revised or amended unless in writing signed by you and an authorized representative of Otis. Further, any manual changes to this form will not be effective as to Otis unless initialed in the margin by an authorized representative of Otis. THIS QUOTATION is valid for ninety (90) days from the proposal date. Submitted by: Shane Harvey Title: Service & Sales Modernization E-mail: shane.harvey@otis.com Accepted in Duplicate CUSTOMER Approved by Authorized Representative Date: Signed: Print Name: Title E-mail: Name of Company Otis Elevator Company Approved by Authorized Representative Date: Signed: Print Name: Richard Riley, Jr. Title General Manager ❑ Principal, Owner or Authorized Representative of Principal or Owner ❑ Agent: (Name of Principal or Owner) © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 8 of 9 BILL TO INFORMATION Company Name: Address: Address 2: City: State: Zip Code: ACCOUNTS PAYABLE CONTACT Name: Phone Number: Fax Number: E-mail: TAX STATUS Are you tax exempt? Yes No If yes, please provide tax exempt certificate Do you require a Purchase Order be listed on your invoices? Yes No If yes, please provide contact info for PO renewal: Name: Fax: Phone: E-Mail Would you like Otis to automatically debit your bank account for your maintenance invoices? Yes No If yes, please provide blank check for bank routing and account information. © OTIS ELEVATOR COMPANY, 2011 All Rights Reserved LiNX Form MNT-OM (01/30/13) Proposal#: ASP883 Page 9 of 9 AGENCY OF RECORD AGREEMENT SELLS AGENCY & FAYETTEVILLE ADVERTISING & PROMOTION COMMISSION January 1, 2018 This Contract confirms that the Fayetteville Advertising & Promotion Commission, hereinafter referred to as Client, has retained Sells Agency, Inc., hereinafter referred to as Agency, as their Agency of Record beginning on January 1, 2018. This is a two-year agreement ending on December 31, 2019, with the option for future renewals at each party's discretion. 1. Agency of Record As your Agency of Record partner, the Agency has been retained to execute and/or oversee the research, planning, creative production and execution on advertising and marketing projects needed to promote the Client and as directed by the Client. Under this agreement, the Agency has authority to purchase media and outside services on Client's behalf, as well as receive standard agency compensation. 2. Summary of Services a) Become familiar with Client objectives, philosophies, products, services and markets, as well as overall corporate goals, strategies and tactics. b) Recommend and execute additional research projects as needed. c) Help define and develop marketing objectives, if needed. Create communications plans and estimates based on those objectives. d) Provide all creative, production and media services to develop advertisements, broadcast material, media advertising plans, direct mail, brochures, and other projects as required by the plan, and as agreed to by the Client. Arrange for outside purchases such as photography, printing, illustration, etc., as needed. e) Provide continuous account service and consultation to ensure proper completion of projects. f) Coordinate all projects, providing budget information and maintaining good relations with media representatives on the Client's behalf. g) Bring to the Client's attention any special media opportunities. h) Provide regular contact reports on all meeting decisions, regular financial and project status reports. i) Provide public relations counsel on matters concerning the Client and as directed by the Client. 3. Standards of Quality The Client agrees to work with the Agency toward a common goal of creating professional advertising projects that maintain a high level of quality. To ensure this, the Client agrees to the following: a) The Agency will handle the planning and creative work on advertising projects, as well as the coordination, execution and assessment as MAHKciING CLARITY 401 W Capitol Ave, St. 400 Little Rock, AR 72201 501.666.8926 112 W Center, St. 503 Fayetteville, AR 72701 479.695.1760 www.selisagency.com directed by the client. This includes media placement, vendor purchases and billing. The agency will be made aware of projects that are related to the advertising plan and are handled by the client's internal staff, including any project that originated at the Agency. b) The Agency may be invited to review and provide creative direction on projects that are related to the advertising plan and are handled by the client's internal staff, including any project that originated at the Agency. 4. Approval and Estimates for Work Performed The Agency will submit all advertising plans and campaigns, copy, layouts, artwork, storyboards, scripts, and media schedules to the Client for approval, along with written estimates when requested. No advertising or outside services will be contracted for the Client unless previously authorized by the Client. The Client may request changes or cancellations, or stop any work in progress, provided they are within the agency's contractual obligations. Where changes or cancellations are requested on previously approved work, the Client will reimburse the Agency for unrecoverable charges or expenses. 5. Commissions and Markups The Agency will receive a standard agency commission of 15% of the gross total amount on all media purchased on behalf of the Client as well as outside production expenses like printing, photography, videography, etc. 6. Account Management, Creative, Project Management and Consulting Fees. The Agency will bill hourly fees in a flat retainer every month in the amount of $13,125 ($157,500 total). The Agency will capture staff time in 15-minute increments and will track the total value of time spent by Agency personnel at standard agency rates included in Addendum 1 (Standard Agency Fee Schedule). These standard agency rates will be locked in for Client through the two-year term of this agreement. If an additional term option is executed, Agency may propose new rates, at that time. Agency services to be covered by the retainer include, but are not limited to, the following: • Graphic design • Art direction • Preparation and delivery of final art elements • Copywriting • Creative direction • Project management • Account management • Media planning & buying • Marketing counsel • Advertising development • Collateral development • Public relations program development & deployment C3 MAHKciING CLARITY 2 401 W Capitol Ave, St. 400 Little Rock, AR 72201 501.666.8926 112 W Center, St. 503 Fayetteville, AR 72701 479.695.1760 www.selisagency.com • Digital advertising campaign development • Preparation of on -going reporting • Photography library management This proposal does not include fee services related to: • Visitor's Guide design, development and printing • Visitor's Guide advertising sales activities • In-house video production services • In-house photography services • Website development, updates and maintenance • Search engine optimization • Social media content marketing/management The Agency will not bill Client for time spent by agency personnel in planning, buying, reconciling and billing for commissionable media. The Agency will not bill Client for travel time or expenses in providing on -going account management and reporting duties, including travel for commission meetings or other marketing, public relations and service meetings. With prior approval from Client, the Agency may bill travel expenses for photo shoots, video shoots or other project -oriented duties in the course of producing advertising, marketing and public relations programs. 7. Billing Structure and Process Billing will be sent monthly and within 2 weeks of receiving each month's invoice, the Client will receive a spreadsheet showing the actual number of hours worked and the total dollar value — at the contracted rates — of time spent toward the retainer. This will insure that all parties are aware of the status of utilization of hours on an on -going basis. At the end of the year, if the value of time spent is less than 90% of total retainer amount (under $141,750), the agency will refund the Commission any amount below 90%. If the value of time spent exceeds 110% of the total retainer ($173,250), the Commission will pay the agency any amount exceeding 110%. If the value of time spent is within +/-10% of the annual retainer, it will be considered acceptable. 8. Exclusivity The Agency agrees to offer an exclusive relationship to the Client, meaning that we will not work with other companies offering competing services or products without prior permission from the Client. This exclusivity clause will remain in effect as long as this contract is in place. 9. Ownership, Custody and Control of Property The Client will own all rights to hard copy versions of advertising projects that have been invoiced and paid for. This includes camera-ready output, negative film, reels and press plates, where applicable. Electronic files, MAHKciING CLARITY 3 401 W Capitol Ave, St. 400 Little Rock, AR 72201 501.666.8926 112 W Center, St. 503 Fayetteville, AR 72701 479.695.1760 www.selisagency.com including photography and video, of Client projects are also owned by the Client, but will remain in the Agency's custody for a minimum of two (2) years. Electronic files will be supplied by the Agency upon request by Client. 10. Confidentiality The Agency shall maintain the confidentiality of all information designated by the Client as being secret or confidential. 11. Invoicing and Terms The Agency will invoice the Client on, or around the 10th of each month, with an amount due and payable within 30 days. Interest at prevailing rates may be charged on accounts past due more than 60 days. 12. Liability/Indemnification a) We agree to exercise our best judgment in the preparation and placement of all advertising and publicity for the Client, with a view to avoiding claims, suits or proceedings being made or instituted against the Client or the Agency. It is mutually agreed, however, that the Client will indemnify the Agency against any loss the Agency may incur as the result of any claims, suits or proceedings made or brought against the Agency based upon any advertising or publicity that the Agency prepared for the Client and that the Client approved before its publication or broadcast. b) The Client will also indemnify the Agency against any loss the Agency may sustain as a result of any avoiding claim, suit or proceeding made or brought against the Agency based upon any advertising element (i.e., photographs, artwork, etc.) that is furnished by the Client and that allegedly violates the personal or property rights or any person if the Client approves in writing the use of said advertising element before its publication or broadcast. c) The Agency shall not be held liable for failure of media or suppliers to meet their obligations. d) The Agency shall not be liable for delay, or omission, or error, in any advertisement in the absence of willful fault or neglect. e) Nothing in this agreement shall be deemed to require the Agency to undertake any campaign or prepare any advertising or publicity that in the Agency's judgment is misleading, libelous, unlawful, indecent, or otherwise prejudicial to the Agency or the Client's interest. 13. Lower Rates If more space or time than contracted for is used, the Agency shall refund to the Client any excess that may have been paid the Agency in accordance with such refunds made to the Agency by the media. 14. Miscellaneous/Out-of-Pocket Expenses MAHKciING CLARITY 4 401 W Capitol Ave, St. 400 Little Rock, AR 72201 501.666.8926 112 W Center, St. 503 Fayetteville, AR 72701 479.695.1760 www.selisagency.com Client agrees to pay mailing, shipping, telephone, telegram, and publication charges on its behalf. Should the Agency be called upon to perform any services not listed above and on which a commission is not allowed, the Agency will reach an agreement in advance with the Client regarding the fee to be charged. 15. Examination of Records The Agency agrees that the Client upon request may, during normal working hours, examine those records and files of the Agency, which pertain specifically to the Client's advertising. 16. Care of Client's Property The Agency will take every reasonable precaution to safeguard any and all of the Client's property entrusted to Agency custody and control. 17. Termination This Agency of Record contract shall continue for 24 months or until terminated by either party giving sixty (60) days advance notice in writing, assuming that all invoices for completed work and/or work in progress at the time of termination are paid in full. In the event of termination, the Client will be responsible for expenses and charges approved prior to termination, including media ordered and production ordered. Please sign two (2) copies of this Agency of Record Contract. Return one copy to the Agency as soon as possible and retain the other for your files. IN WITNESS WHEREOF, the parties hereto have executed this Amendment this day of December, 2017. THE SELLS AGENCY, INC. By: Date: Mike Sells, Chief Executive Officer THE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION By: Molly Rawn, Executive Director 5 Date: MAHKciING CLARITY 401 W Capitol Ave, St. 400 Little Rock, AR 72201 501.666.8926 112 W Center, St. 503 Fayetteville, AR 72701 479.695.1760 www.selisagency.com ADDENDUM1 2020 Billing Rates Description Hourly Rate Administrative Support $ 50 Art Concept/Direction $ 115 Billable Media Planning $ 90 Broadcast Coordination $ 90 Broadcast Production $ 110 Content Marketing $ 95 Copywriting $ 115 Creative Development $ 105 Creative Direction/Supervision $ 120 Creative Support $ 65 Interactive Design $ 110 Mechanical Art $ 90 Non Profit Public Relations $ 53 Photo Shoot Art Direction $ 115 Photo Shoot Coordination $ 95 Photo/image Edit $ 110 Photography - In house $ 110 Photoshoot Support $ 90 Print Production $ 75 Project Coordination $ 75 Project Management $ 95 Project Management Support $ 65 Project Supervision $ 110 Project Supervision - Principals $ 125 Proofing $ 75 Public Relations $ 105 Public Relations - Principals $ 125 Public Relations Support $ 65 Research - billable $ 65 Revisions $ 110 Search Marketing $ 65 Social Media Coordination $ 75 Social Media Marketing $ 95 Video Editing $ 95 Video Pre -Production $ 95 Video Support $ 85 Video raph $ 110 Web Development/Updates $ 100 LNG CLARITY 401 W Capitol Ave, St. 400 Little Rock, AR 72201 501.666.8926 112 W Center, St. 503 Fayetteville, AR 72701 479.695.1760 www.selisagency.com ADDENDUM CONTRACT RENEWAL AGENCY OF RECORD AGREEMENT ADDENDUM SELLS AGENCY & FAYETTEVILLE ADVERTISING & PROMOTION COMMISSION January 1, 2022 This addendum to the Agency of Record Agreement dated January 1, 2018 confirms that both parties, Sells Agency and the Fayetteville Advertising & Promotion Commission, agree to invoke the option of renewing the original contract for a term of one year beginning on January 1, 2022 and concluding on December 31, 2022. Agency billing rates, will remain unchanged. The monthly retainer amount was revised and approved by Molly Rawn and Mike Sells in December 2021 to $14,583.00. This revised monthly retainer amount will begin January 2022 with the approval of this addendum. Please sign two (2) copies of this Addendum and return one copy to the Agency as soon as possible and retain the other for your files. In WITNESS WHEREOF, the parties hereto have executed this Amendment this day of January 2022. THE SELLS AGENCY, INC. By: Owk Date: February 6, 2022 Mike Sells, Chief Executive Officer THE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION By: Date: Molly Rawn, Executive Director 7 INC] CLARITY 401 W Capitol Ave, St. 400 Little Rock, AR 72201 501.666.8926 112 W Center, St. 503 Fayetteville, AR 72701 479.695.1760 www.selisagency.com