2012-07-10 HOT Committee Minutes
1
2 MINUTES
3
4 Hotel Occupancy Tax Committee Meeting
5 July 10, 2012
6
7 After determining that a quorum was present, the Hotel Occupancy Tax Committee (HOT)
8 convened into a Closed Meeting on Tuesday, July 10, 2012 at 9:38 a.m. in the City Hall
9 Conference Room, City of Denton City Hall, 215 E. McKinney Street, Denton, Texas.
10
11 PRESENT: Council Members Pete Kamp, Chris Watts and Dalton Gregory
12
13 EX-OFFICIO MEMBERS:
14 Jon Fortune, Assistant City Manager
15 Bryan Langley, Chief Financial Officer
16 Anita Burgess, City Attorney
17 Jerry Drake, Deputy City Attorney
18 Antonio Puente, Jr., Assistant Director of Finance
19 Randee Klingele, Treasury Services Specialist
20
21 AGENDA ITEM 1: CONSULTATION WITH ATTORNEYS UNDER TEXAS
22 GOVERNMENT CODE, SEC 551.071: S
23 REGARDING LEGAL ISSUES, COMPARATIVE RISKS, LIMITATIONS AND LEGAL
24 ADVICE, ASSOCIATED WITH THE ALLOCATION OF HOTEL OCCUPANCY TAX
25 FUNDS TO BUSINESS ORGANIZATIONS AND LEGAL ENTITIES OF VARYING TYPES
26 (INCLUDING THOSE WHICH MAY OR MAY NOT BE ORGANIZED AS NON-PROFIT
27 CORPORATIONS), WHERE A PUBLIC DISCUSSION OF THESE LEGAL MATTERS
28
29 DENTON UNDER THE TEXAS DISCIPLANARY RULES OF PROFESSIONAL CONDUCT
30 OF THE STATE BAR OF TEXAS, OR WOULD JEOPARDIZE THE C
31 POSITION IN ANY ADMINISTRATIVE OR LEGAL PROCEEDING.
32
33 This item began at 9:38 a.m. and ended at 10:06 a.m.
34
35 After determining that a quorum was present, the Hotel Occupancy Tax Committee (HOT)
36 convened into an Open Meeting on Tuesday, July 10, 2012 at 10:06 a.m. in the City Hall
37 Conference Room, City of Denton City Hall, 215 E. McKinney Street, Denton, Texas.
38
39 PRESENT: Council Members Pete Kamp, Chris Watts and Dalton Gregory
40
41 EX-OFFICIO MEMBERS:
42 Jon Fortune, Assistant City Manager
43 Bryan Langley, Chief Financial Officer
44 Jerry Drake, Deputy City Attorney
45 Antonio Puente, Jr., Assistant Director of Finance
46 Randee Klingele, Treasury Services Specialist
47
48 AGENDA ITEM 1: CONSIDER APPROVAL OF HOTEL OCCUPANCY TAX MINUTES
49 FROM JUNE 19, 2012.
50
51 Minutes were approved as written by Councilmember Dalton Gregory and seconded by
52 Councilmember Chris Watts. Motion passed unanimously.
53
54 AGENDA ITEM 2: RECEIVE A REPORT, HOLD A DISCUSSION AND PROVIDE
55 RECOMMENDATIONS REGARDING THE APPLICABILITY OF THE PUBLIC ART
56 POLICY TO THE POTENTIAL HOTEL AND CONVENTION CENTER PROJECT.
57
58 Bryan Langley reviewed the Public Art Policy which stipulates receipt of 2.4% of the annual
59 hotel occupancy tax revenue. In the last six years the Public Art Committee received
60 approximately $183,419 in hotel tax revenue. The committee concluded that the 2.4%
61 contribution to public art did not represent an obstacle to the proposed convention center project.
62 However, the Committee did request that staff initiate a discussion with the City Council
63 regarding a possible amendment to the Public Art Policy. The Committee is concerned that the
64 policy could be interpreted to read that public art would need to be a component of a convention
65 center debt issuance, and it should be clearly understood if this is the intent of the Council.
66
67 AGENDA ITEM 3: RECEIVE A REPORT, HOLD A DISCUSSION AND PROVIDE
68 RECOMMENDATIONS REGARDING THE PROGRAM YEAR 2013 FUNDING LEVELS
69 AND BUDGET REQUESTS.
70
71 Randee Klingele recapped the recommendations provided by the committee during the previous
72 meeting on June 19, 2012. The two items for further discussion were the Convention and Visitor
73 Bureau (CVB) and the Convention Center Contingency allocations. Jon Fortune relayed the need
74 for a $100,000 convention center contingency related to the potential hotel and convention center
75 project. This allocation would assist in making the project a reality. In addition, the committee
76 discussed their intent to grant the CVB more funding to assist with their current workload of
77 properties, programs and services. After adding one new recipient and setting a contingency for
78 the hotel and convention center project staff estimated that $83,020 was available to provide
79 additional financial support to the CVB.
80
81 The Cnted to the Council in the first budget workshop
82 being held on August 2, 2012.
83
84 The Committee continued discussions regarding the hotel and convention center project with
85 concerns regarding future debt payments versus hotel tax receipts. The Committee suggests that
86 staff project additional years for future meetings.
87
88 AGENDA ITEM 4: NEW BUSINESS
89
90 Chris Watts asked staff to review more predictable funding sources f
91 Policy and to discuss these options with the City Council at a future date.
92
93 Meeting adjourned 10:56 A.M.