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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.