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2016-369s:\legal\our documents\ordinances\16\hot funds py2017\dog days ord.doc , � 1 f � �'' C�J �� �Jl\I��\l�J:r1\l!' t' •�,' c, � •� e •, r • • � . . �� j. �' : 1 '. � . �� � � �' :� �. . . � 1�' �� .1' � .. ��' '� �: ��. �. � �.. ' ,: •. : . :•: �, ���. � ♦ �.. ., � !� .• ,: . �� �.. � ' � 1� .♦. . '�. ' '�. : �� ' . � �� : � '. . . � � � l�: � �� :1 � �.. SECTION 1. The City Manager, or his designee, is hereby authorized to execute an agreement between the City of Denton and Denton Dog Days, Inc. for the payment and use of hotel tax revenue, under the terms and conditions contained in the agreement, a copy of which is attached hereto and made a part hereof. SECTION 2. This ordinance shall become effective immediately upan its passage and approval.�— �.._ � . l ....• ! ATTEST: JENNIFER WALTERS, CITY SECRETARY �.,� Y BY. `� � . , � APPROVED AS TO LEGAL FORM: ANITA BURGESS, C1���Y -,�`� �-�3� �f�W:� day of _ , 2016. ,� � �� s`,��' ��� , � �^" �' _.— ° _ �.d_ __... ..�� E_������5 �WATTS, MAYOR � � � j ; � � � � ,.., , '.. !,j � '; �,.. � ,e ! •... . R.,.: ' :. 1 � ..:.� !. '.- i � � � 1 ♦, .�� ! ,. , :' � .: � ..� ��: THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the Denton Dog Days, Inc., a legal entity incorporated under the laws of the State of Texas (the "ENTITY"): WHEREAS, TEx. TAx CoDE §351.002 authorizes CITY to levy by ordinance a municipal hatel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hatel occupant; and WHEREAS, by ordinance, CITY has provided for the assessment 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 CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; and ' � -� ��-� � •- � • - , , � ' � •�' , 1 . • � �- -+, s � , . +I � :�:�'�' �'.�� r�.:���• _ * #' ••.'� �'��: � �.�:�'� � �� ��� � I +�.�.. ��: _ �_ �. �'I " '!*�• �'`! � ' •. # ' � �+ + � � � � ' •' � ' ' � � • ' � ' � ' � � �, -' . , ' • !' • • ' •' � ' � " � � • �' ' " � • � . � • ! ' 1 1' 1 • . � � �' . • � � '� •" •'" • "# �'' !• • • �� '# •�' '� .' �• #' � �' r � '#' � �. ��..'.. .:.. . # ..'.. s. .... � . .. � � r:,. � � '' ��. • ' " -� • • .� ''I �. #' � ", � � 1.2 Amount of Payments. (a) As used in this Agreement, the fallowing terms shall have the follawing specific meanings: •', „ , -, . � � � -• . � -� s . •, •,. • �. . . . - � �' '', • � �, � '� •• , • - • • . . r�- * !1 . � • • . •, , •- �- a . � . -� • . �� � . � ', r. Dog Days HOT Funds, PY2017 - Page 1 (ii} The term 66Collection period9g will mean the collection period for CITY's fiscal year. It will include hotel tax revenue due to CITY for the relevant fiscal year and collected through the 22nd day of the month following the close of the relevant fiscal year. (iii) The term bbbase payment amount97 shall mean a net amount of money equal to the total hotel tax revenue collected by CITY during any relevant period of time (i.e., fiscal year ar fiscal quarter), less: (1) attorney and auditing costs incurred during such reievant period of time for costs of collection or auditing of hotel taxpayers (attorney and auditing costs include fees paid ta attorneys ar agents not in the regular employ of CITY for which attorneys or agents effect compliance or collection of the hotel tax from taxpayers); and (2) court costs and other expenses incurred in litigation against, or auditing of, such t�payers. (iv) The term "contract quarter" shall refer to any quarter of the calendar year in which this Agreement is in force. Contract quarters will end on March 31St, June 30�', Septernber 30th, and December 31St of each contract year. (b) In return for satisfactory performance of the activities set forth in this Agreement and all attachments hereto, CITY shall pay to ENTITY an amount of money in each contract year equal to the lesser amount of: Seventy-Eight Hundredths percent (0.78%} of the annual base payment amount, or the fixed contract amount of Eighteen Thousand Eighty-Six Dollars ($18,086). This amount will be divided into quarterly payments equal to 25% of the annual fixed contract amount, unless CITY can show with reasonable certainty that the annual base payment amount will be less than originally estimated for the fiscal year. The fourth quarterly payment will represent 25% of the fixed contract amount or the unpaid remainder of 0.78% of the base payment amount, whichever is less. If CITY'S Chief Financial Officer determines that hotel tax receipts by the CITY are not meeting the anticipated budget projection, CITY will reduce the ENTITY's current budget at any time during the contract period. Each quarterly payment is subject to refund of any unused or improperiy expended funds from the prior contract period, and CITY's timely receipt of the required quarterly reports. 1 i ' (a) The term "quarterly payments" shall mean payments by CITY to ENTITY of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue callected. • r , •. ' , r- •. �' �• - r' • -� -� -s• . • . •, � • + . �. • • , w . , � , . -�• a -� 1 w. � � � .�� .r • . • . �, , �. � � ' . � • • � • � � . � . .�r •� -�• -a . � ��� r -� .�• • . • �- -, � ,� - w �' I � ., � � � r; • � (a} The funding of this project in na way commits CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of ENTITY. Dog Days HOT Funds, PY2017 - Page 2 (b) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. . •'� . � . • �' ' + �- � �- . - .'- . 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" , � + � * � � � � � . . • • � + � �- � �' '� Dog Days HOT Fnnds, PY2017 - Page 4 ; ! ', ' '.: R '. " , ::;: i . ;- _ • ♦ � .' ' � � ' ' � � ' � � r � ", �, " �' I # � � • . � i • ' " ' • • � . •' ►� . , � "' " f • . � ' . �'.. '�. - �, �. � ' � ,.. ', � �. ' • : , ' ' .'. 1 - ' . ... . • �,�. � ....'. ' � - ', I � � "' .. • :�, �: " � •' .. :� -' ,. � � . a'. �� � � � •: • • � ��� I � � � ' � ' � : � � r:: : ' �'�.. � . ��. I � � r ' � �'" � �' • 1 ! r � �' ) • � ; •' • � ' � " � w r ' � � ' ' •' *,, • �' � • - . � . � •'' •- �,'; �' �'' � '• �' ! '• '! •• • ! � � - 4.2 Termination Without Cause. (a) This Agreement may be terminated by either party, with or without cause, by giving the other party sixty (60) days advance written notice. (b} In the event this contract is terrninated by either party pursuant to ¶4.2(a}, CITY agrees ta reimburse ENTITY for any contractual obligations of ENTITY undertaken by ENTITY in satisfactory performance of those activities specified in ¶¶2.1 and 2.2 above, and that were approved by the Council through the budget, as noted in ¶3.1. This reimbursement is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse ENTITY, or ta assume the performance af any contractual obligations of ENTITY, for ar under any contract entered into by ENTITY as contemplated herein, shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upan termination pursuant to ¶4.2(a}, ENTITY will provide CITY: 1} within ten (10) business days from the termination natification, a short-term budget of probable expenditures far the remaining sixty (60) day period between termination notification and contract termination. This budget will be presented to Council for approval within ten (10) business days after receipt by CITY. If formal appraval is not given within ten (10) business days, and the budget does not contain any expenditures that would be prohibited by the Texas Tax Code, and is within the current contractual period approved budget; the budget will be considered approved; 2) within thirty (30) days, a full accounting of all expenditures not previously audited by CITY; 3) within five (5) business days of a request from CITY, a listing af expenditures that have occurred since the last required reporting period; 4} a final accounting of all expenditures and tax funds on the day of terminatian. ENTITY will be obligated to return any unused funds, or funds determined to be used improperly. Any use of remaining funds by ENTITY after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of thase services contemplated in ¶¶2.1 and 2.2 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. 4.3 Automatic Termination. This Agreement shall automatically terminate upon the occurrence of any of the following events: Dag Days HOT Funds, PY2017 - Page 5 (a) The termination of the legal existence of ENTITY; (b) The insolvency of ENTITY, the filing of a petition in ba ptcy, either voluntarily or involuntarily, or an assignment by ENTITY for the benefit of creditors; (c} The continuation of a breach of any of the terms or conditions of this Agreement by either CITY or ENTITY for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (d} The failure of ENTITY to submit a financial quarterly report which complies with the reporting procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, or quarterly as required by ¶1.3 hereof. 4.4 l�i�;i�t to t���axx��.iiate 7'���~tt�i�x��ti��:� Upon Liti�;.�tis�r�. N�si��il��sl6���c1iQ1�; any other p�;c�r�i�ion of this .�.�,��eem���i, t�� miti�;�rt� �����I��;�s and to ��i•�-��a{v� �:vicl���c� ����ci issues for ��rc�ic�,ial determination, either party shall have the right ta terrninate this Agreement upon immediate notice to the other party in the event that any person has instituted litigation concerning the activities of the non-terminating party, and the terminating party reasonably believes that such activities are required or prohibited under this Agreement. 4.5 In the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, ENTITY agrees to refund any and all unused funds, or funds determined by CITY to have been used improperly, within thirty (30) days after termination of this Agreement. 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by ENTITY with another private entity, person, or organi- zation for the performance of those services described in ¶2.1 above. In the event that ENTITY enters into any arrangement, contractual or otherwise, with such other entity, person or organization, ENTITY shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to T�x. TAx ConE ch. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 5.2 Independent Contractor. ENTITY 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 CITY. ENTITY shall have exclusive contral of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same, and ENTITY shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. ENTITY shall not be considered a partner or joint venturer with CITY, nor shall ENTITY be considered, nor in any manner hold itself out as, an agent or official representative of CITY. r. . � � ' ' ,; ! 1 1 1 � ' � � �: � .; .� R �. � �. � ! :: � i.. � ��,: � c: � c;� ♦ ;., Dog Days HOT Funds, PY2017 - Page 6 � ,�- ♦ �: �,: ! .:, ! ! �; ♦ a �; .� � � '. ♦ * 1 • � . � � ;; � � ..., . � . � . .: � � �' � � . ..� �:, � R f. , .:, ,,, • 1 � ��.� ! ��... � �..,. � . � � �..., � ;.., ' � '.; ! • � � � � • •. �� � � � � '�..� , �;� � l � ': � � � !.. / ', � '.:: , � � ,:. . � � �• :� , �.: � ��., R �: • �'� .. ;:� � � � � � ,; , � , :, �� �! � , � �.,:: � � :,� ., ! 1 ��' , '. � /' � a:,. , ',,.� . I � 5.4 Assignment. ENTITY shall not assign this Agreement without first obtaining the written consent of CITY. 5.5 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certiiied mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: � � ... • 1� • 1- � • 1' � Kevin Lechler DENTON DOG DAYS, INC. PO Box 1158 Denton, TX 76202 � ` � , r -. • � r -• � -. . � � +' •� '*, •' . � .• �', .' �- � � +' ' �• .; � � - �- . ! •� •, •" � w''� �I � �". • � 1 � 5.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject 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. 5.$ Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter cantained herein. There are no representations, agreements, arrangements, or understandings, oral or written, express or implied, between or among the parties hereto, relating ta the subject matter of this Agreement, which are not fully expressed herein. The terms and conditions of this Agreement shall prevail, notwithstanding any variance in this Agreement from the terms and conditions of any ather document relating to this transaction ar these transactians. � 1 � � � • . -� �' � • • .' I,; •'. 1 � : _ .��' • �;'# • ''�� � � '' . * � - � , � � •'+ •� •,1 •' � r �� � ' #���, � :� � '�. • • •� � ' r •'� � • �I •�� ���:� •''�.� • '�. r ., � • . '. . • ' '� : � ��� : � ��. • •' : •, ,.'. *�. : • ' �: � w • �. 'i � � � � : � • ��. .'� � � .. .'�� ���. Dog Days HOT Funds, PY2017 - Page 7 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any persan or circumstarnce is held invalid by any court of campetent jurisdiction, such holding shall not affect the validity of the remaining portions of this Agreement, and the parties hereby declare they would have enacted such remaining portions despite any such invalidity. 5.12 Insurance. ENTITY shall provide insurance as follows: l. $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property, 2. Statutary Workers' Compensatian and Employers' Liability ($100,000/$500,000/$100,000}, and 3. $250,000 Liquor/Dram Shop Liability for any event occurring on City-owned property where alcohol will be pravided ar served. CITY must be named as an additional insured on all policies (except Workers' Compensation}, and proof of coverage shall be submitted prior to any payment by the CITY. , �° � �;� .�' � C�1:�'l�� �'}^,l� �i��� � 4� c��a�+ ���`..�_��. �,.. �`'�-_��_�......_� �('�1 t"t. ATTEST: BY� ��� _�=� ��� ���aa���r� : ����r 7�,a��. C:, � .`a' S�?C [��'��ARY THE CITY OF DENTON, TEXAS � By• � � �' � r�'�` �`� HOWAR.D N�f�I��l'il���� �� _�� CITY MANAGER APPROVED AS TO LEGAL FORM: ��� ?�� _ " �- ,�1 � �� [�� - _ �-� :,�� � _wy_ . � � . ���a� � � ��� �������; � �,__ �� CITY A`l.fl'�����f ;'�' � I� Dag Days HOT Funds, PY2017 - Page 8 � � � � � �� !�' � l� ' ♦ � � ��' . By: . ........._ � BY: Secretary �.� �, • . � � � . Denton Do� Days, Inc. Dog Days of Denton Celebration Program Year 2017 Bud�et Advertising Printed Matter Internet/Website Event Director Contract Social Media Contract Labor $ Exhibit A 3,386 7,700 4,000 3,000 18,086 Tatal Budget $ 18,086