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1997-248NOTE Amended by Ordinance No. 98-295 NO AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON HISPANIC CHAMBER OF COMMERCE FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the Mayor Is hereby authorized to execute an agreement between the C~ty of Denton and the Denton I-hspamc Chamber of Commerce for the payment and use of hotel tax revenue, under the terms and con&t~ons contmned m the agreement, a copy of which ~s attached hereto and made a part hereof SECTION II That tMs ordinance shall become effective ~mmedmtely upon ~ts passage and approval PASSED AND APPROVED thls the ~ Cd day of ~ff)~DTA~/f- , 1997 ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON HIBPANIC CHAM~ER OF COMMERCE (97-98) PROVZDZNG FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a muni- cipal corporation (the "CITY"), and the Denton Hispanic Chamber of Commerce, a legal entity existing under the laws of the State of Texas (the "CHAMBER"): WHEREAS, TEX. TAX CODE § 351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by Ordinance, the CITY has provided for the assess- ment and collection of a municipal hotel occupancy tax in the city of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE §351.101 (a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the~convention and hotel industry byadvertlslng and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or 1ts vicinity; and WHEREAS, the CHAMBER is well equipped to perform those activities; and WHEREAS, TEX. TAX CODE S351.101 (c) authorizes the CITY to delegate by contract with the CHAMBER as an independent entity the management and supervision of programs and activities of the type descrlDed hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the CHAMBER agree and contract as follows; I. HOTEL TAX REVENUE PAYMENT TO CHAMBER 1.1 cQnsideration. For and in consideration of the activities to be performed by the CHAMBER under this Agreement, the CITY agrees to pay to the CHAMBER a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the CHAMBER sometimes herein referred to as "the agreed payments" or "hotel tax funds"). L.2 ~ount of P&~ments to Chamber. (a) As used in this agreement, the following terms shall have the following specific meanings: (i) The "hotel tax revenue" shall mean the monies col- lected and received by the CITY during any relevant period of time (1.e., fiscal year or fiscal quarter) as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to TEX. TAX CODE §351.002 and city Ordinance, together with and including any sums of money received by the CITY from taxpayers during any relevant fiscal quarter or calendar month as attorney's fees, court costs, or other expenses of collection of hotel tax, but excluding interest and penalties received by the CITY from taxpayers. (11) The term "base payment amount" shall mean an amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (1 e. fiscal year or fiscal quarter), less (1) such amounts incurred during such relevant period of time for costs of collection of hotel taxes from taxpayers or auditing taxpayers for tax payment compli- ance, such collection and auditing costs to include fees paid to attorneys or agents not In the regular employ of the CITY and which attorneys or agents effect collection of the hotel tax from taxpayers or audit such taxpayers; and (2) court costs and expenses incurred in litigation against or auditing of such taxpayers. (b) The CITY shall pay to CHAMBER an amount of money equal to forty-seven one hundredths of a percent (0.47%) of the base payment amount for the period of October 1, 1997 through September 30, 1998 or Three Thousand, Two Hundred Dollars ($3,200.00), whichever is less. 1.3 Dates of Payments to Chamber. (a) The term "quarterly payments" shall mean payments by the CITY to the CHAMBER of those amounts specified in ~1.2 above as determined by the hotel tax revenue collected by the CITY during any one fiscal quarter during the term of this Agreement. (b) CITY shall pay the CHAMBER the agreed payments specified in 41.2 above by quarterly payments paying forty-seven one hundredths of a percent (0.47%) of the base payment amount (quarterly) for the first three quarters of the fiscal year and the percentage of the base payment amount for the last quarter of the flscal year shall be adjusted so that the total of the quarterly base payment amounts shall not exceed Three Thousand, Two Hundred PAGE 2 Dollars ($3,200) during the 1997-98 fiscal year. Each such quarterly payment shall be paid to the CHAMBER on or before the forty-fifth (45th) day after the last day of such respective fiscal quarter for which such payment is due. If quarterly financial and performance reports are not received within thirty (30) days of the end of the applicable quarter, then CITY may withhold the quarterly payment(s) until the appropriate reports are recelved and approved. (c) The funding of this project in no way commits the CITY to future funding of thls program beyond the current contract per~od. Any future funding ~s solely the responsibility of the CHAMBER. (d) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. II. UBE OF HOTEL TAX REVENUE BY CHAMBER Z.L Use of Funds. For and in consideration of the payment by the CITY to the CHAMBER of the agreed payments of hotel tax funds specified above, the CHAMBER agrees to use such hotel tax funds only for advertising and conducting sollcltatlons and promotional programs to attract tourists and convention delegates or regls- trants to the municipality or its vicinity, as authorized by TEX. TAX CODE § 351.101(a). Z.Z Ag~inist~&tive Costs. The hotel tax funds received from the CITY by the CHAMBER may be spent for day-to-day operatlons, sup- plies, salaries, office rental, travel expenses, and other admini- strative oosts that are incurred directly ~n the performance by the CHAMBER of those activities specified in ~2 1 above and are allowed by TEX. TAX CODE § 351.101(f). 2.3 Bpeaific Restriotions on Use of Funds. (a) That portion of total administrative costs of the CHAMBER for which hotel tax funds may be used shall not exceed that portion of the CHAMBER'S administrative costs actually ~ncurred ~n con- ductlng the activities speclfied in ¶2.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person's ]ob ~n an efficient and professional manner. PAGE 3 III. RECORD KEEPING AND REPORTING REQUIREMENT8 3.1 BUdqet. (a) On or about September i and prior to the disbursement of any funds for the 1997-98 fiscal year, the CHAMBER shall prepare and submit to the City Manager of the CITY an annual budget for such fiscal year for the CHAMBER and any other operation or functl0n of the CHAMBER in which the hotel tax funds shall be used by thelCHAMBER. This budget shall specifically identify proposed expenditure of hotel tax funds by the CHAMBER. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the CHAMBER any hotel tax revenues as set forth ~n Section I. of this contract during any fiscal year of this Agreement unless a budget for such respective fiscal year has been approved in writing by the Denton City Council authorizing the expenditure of funds in such Section I. (b) The CHAMBER acknowledges that the approval of such budget by thelDenton city Council creates a fiduciary duty in the CHAMBER with respect to the hotel tax funds paid by the CITY to the CHAMBER under this Agreement. The CHAMBER shall expend hotel tax funds only in the manner and for the purposes specified in § 351 101(a) TEX. TAX CODE and in the budget as approved by the CITY. 3,2 Separate &coounts. The CHAMBER shall maintain any hotel tax funds 9aid to the CHAMBER by the CITY in a separate account. 3.3 F~n&noial Reoords. The CHAMBER shall maintain complete and accura%e financial records of each expenditure of the hotel tax funds made by the CHAMBER and, upon reasonably advance written re- quest of the Denton City Council or the city's Assistant city Manager of Finance or his designee or other person, shall make such f~nancial records available for inspection and review by the Denton city COuncil or the City's Assistant City Manager of Finance or his deslgnge or other person. 3.4 Q~&rterly Reports. Within thirty days after the end of every quarter, the CHAMBER shall furnish to the CITY (1) a performance report of the work performed under this Agreement, in the form determined by the city Manager describing the activities performed under this Agreement during that quarter, and (2) a list of the expenditures made with regard to hotel tax funds pursuant to the TEX TAX CODE ANN. § 351.101(C) (Vernon 1994). The CHAMBER shall promptly respond to any request from the City Manager of the CITY for additional information relating to the activities performed under this Agreement. PAGE 4 the CITY ~~e advance written notice of the time and place of general meetings of the Denton Hispanic Chamber of Commerce Board of Directors, as well as any other meeting of any constituency of the CHAMBER at which this Agreement or any matter the subject of this Agreement shall be considered This provision shall not be deemed to require the CHAMBER to give notice of any executive session of the Executive Committee of the CHAMBER. IV. REIMBURSEMENT AND INDEMNIFICATION 4.1 Reimbursement of Chamber for Administrative Costs. In the event that this Agreement is terminated pursuant to Section 5 2(a), the CITY agrees to reimburse the CHAMBER for any and all expenses and costs undertaken by the CHAMBER in performance of those activities specified in ~2.1 above or expenses or costs incurred by the CHAMBER as described in ~2.2 above. The CITY is obligated to reimburse the CHAMBER for expenses and costs as described in ~2.2 above only for the period commencing upon the date notice of termination is given and ending upon the date of termination. Further, this obligation shall be limited to the lesser of the actual expenses and costs incurred by the CHAMBER during the one hundred eighty day period preceding termination or the agreed payments otherwise due and payable to the CHAMBER for such period 4.l Reimbursement of Chamber for Contr&ctual Obligations. In the event that this Agreement is terminated pursuant to Section 5 2{a), the CITY agrees to reimburse the CHAMBER for any and all contractu- al obligations of the CHAMBER undertaken by the CHAMBER in perfor- mance of those services specified in ~2.1 above, conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ~2.1 above, and further conditioned upon such contractual obliga- tions having a term not exceeding the full term of this Agreement. NotwIthstanding any provision hereof to the contrary, the obliga- tion of the CITY to reimburse the CHAMBER or to assume the perfor- mance of any contractual obligations of the CHAMBER for or under any contract entered into by the CHAMBER as contemplated herein shall not exceed FIVE HUNDRED DOLLARS ($500.00). Such monetary limitation is cumulative of all contractual obligations and shall not be construed as a monetary limitation on a per contract basis 4.3 Pa2ment of Reimbursement to Chamber. (a) With respect to expenses and costs incurred by the CHAMBER for which the CITY is obligated to reimburse the CHAMBER pursuant to ~4.1 above, the CITY shall pay such reimbursement amount due, if any, to the CHAMBER on or before the forty-fifth (45th) day after the date of termination of this Agreement. PAGE 5 (b) With respect to contractual obligations undertaken by the CHAMBER for which the CITY is obligated to reimburse the CHAMBER as provided in 44.2 above, the CITY shall reimburse the CHAMBER for such monetary obligations required in such contractual obligation in such amounts and at those times such contractual costs and expenses are due and payable according to the terms of such contract limitation set forth in ~4.2 above. 4.4 In~e~mification. The CHAMBER agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the CHAMBER or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of CHAMBER, 1ts officers, employees, agents, subcontractors, licensees and invitees. V. TERM ANDTEI~INATION 5.1 Term. The term of this Agreement shall commence on October 1, 1997 and terminate at midnight on September 30, 1998 This term shall be a period of one year. 5.2 Termination. (a) This Agreement may be terminated by either party by giving the other party one hundred eighty (180) days advance written notice. (b) This Agreement shall automatically terminate upon the occurrence of any of the following events: (1) The termination of the legal existence of the CHAMBER; (li) The insolvency of the CHAMBER, the filing of a petition in bankruptcy, either voluntarily or Involuntarily, or an assignment by the CHAMBER for the benefit of creditors; (iii) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the CHAMBER for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or PAGE 6 (iv) The failure of the CHAMBER to submit a financial report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term. VI. ~ENERAL PROVI~ION~ 6.1 SUbcontract for Performance of Bervices. Nothing ~n th~s Agreement shall prohibit, nor be construed to prohibit, the agree- ment by the CHAMBER with another private entity, person, or organi- zation for the performance of those services described in 42.1 above. In the event that the CHAMBER enters into any arrangement, contractual or otherwise, with such other entity, person or organi- zation, the CHAMBER shall cause such other entity, person, or orga- nization to adhere to, conform to, and be subject to all provI- sions, terms, and conditions of th~s Agreement and to TEX. TAX CODE Chap. 351, including reporting requirements, separate funds main- tenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 6.2 I~dependent contraator. The CHAMBER shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The CHAMBER shall have exclusive control of its operations and performance of services hereunder, and such persons, entitles, or organizations performing the same and the CHAMBER shall be solely responsible for the acts and omissions of directors, officers, employees, agents, and subcontractors. The CHAMBER shall not be considered a partner or joint venturer with the CITY, nor shall the CHAMBER be considered nor in any manner hold itself out as an agent or official representative of the CITY $.3 AWSign~eRt. The CHAMBER shall not assign this Agreement without first obtaining the written consent of the CITY. 6.4 NQtioe. Any notice required to be given under this Agreement or any,statute, ordlnance, or regulation, shall be effective when given ~n writing and deposited in the United States mall, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY CHAMBER Clty Manager Chalrman/D~rector Clty of Denton Denton Hispanic Chamber of Commerce 255 E. McKlnney 1607 East McKlnney, Suite 900 Denton, TX 76201-4299 Denton, TX 76201 PAGE 7 ~.5 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the CHAMBER and their respective successors and assigns. 6.$ Applioatien of Laws. Ail terms, conditions, and provisions of this Agreement are sub3ect to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto 6.7 Exclusive &greement. This Agreement contains the entire understanding and constitutes the entire agreement between the part~es hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or under- standings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this agree- ment, which are not fully expressed herein. The terms and con- dltions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. 6.8 Duplio&te Origin&is. This Agreement is executed in duplicate originals. 6.9 Headings. The headings and subheadings of the various sec- tlons and paragraphs of this Agreement are ~nserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designate~ THE CITY OF DENTON, TEXAS By: ~ JAC ATTEST: APPROVED AS TO LEGAL FORM. By %~ ~ O _... ~ By: ~N~FE~ WALTERS, HERBERT L. PROUTY, (~TY SECRETARY CITY ATTORNEY PAGE 8 DENTON HISPANIC CHAMBER OF COMMERCE By: ~~)irec~cor ~ ATTEST: APPROVED AS TO LEGAL FORM By: By' Secretary A \HISPANIC.K PAGE 9 AN ORDINANCE OF THE CITY OF DENTON, TEXAS EXTENDING ELEVEN CONTRACTS BETWEEN THE CITY OF DENTON, TEXAS AND THE NOTED CURRENT RECIPIENTS OF HOTEL OCCUPANCY TAX ("HOT") FUNDS, AND PRESCRIBING AN EFFECTIVE DATE WHEREAS, on September 2, 1997, the Council of the City of Denton, Texas passed Ordinance numbers 97-243, 97-244, 97-245, 97-247, 97-248, 9%249, 97-250, 97-251, 97-252, 97- 253 andI 97-254, (the "Approval Ordinances") approving and authonzlng funding for certain contracts wth a number of outside orgamzatlons for Fiscal Year ("FY") 97-98, pursuant to Chapter 351 of the Texas Tax Code, and WHEREAS, each of the aforesaid contracts provided for post-performance reimbursement of ser,nces rendered dunng each quarter of the fiscal year in the promotion of tourism, and WHEREAS, in the future, the City Council wishes to award such momes on a quarterly basis, in advance of performance, dunng each quarter of the calendar year, commencing ,anth Calendar Year 1999, and WHEREAS, as a result of the foregoing, it will be necessary to extend the term of the existing contracts for three months, in order to secure performance of these services dunng the months of October, November and December of 1998, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the terms of the contracts authorized by the aforementioned Approval Ordmancas are hereby authorized by the City of Denton to be extended under their existing terms for a period of three months, except that paragraphs 1 2(b) and 5 1 of each such contract are hereby modified upon acceptance to the extent that they are ~nconsistent with flus Ordinance, such that all duties set forth for performance prior to September 30, 1998 shall be performed by December 31, 1998, and such that no addatmnal payment to the other parties named m said contracts for services renderedldunng October, November and December 1998, shall be paid after payment of the fourth quarter payment already defined m the contract SECTION II That passage of tins ordinance constitutes a revocable offer of the CIW of Denton, Texas, winch may be accepted by each of the other pames, either by written confirmation, or by performance of the dutms set forth m the applicable contracts dunng the extended term, after dehvery ora copy of flus ordinance to the other parties, tn the manner estabhshed m paragraph 6 5 of each apphcable contract SECTION 1II That flus ordtnance shall become effective lmmechately upon its passage and approval, Page 1 of 2 JAC~I~LL~.R, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY Page 2 of 2