2016-367s:\legal\our documents\ordinances\16\hot funds py2017\dct ord.doc
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THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager, or his designee, is hereby authorized to execute an
agreement between the City of Denton and the Dentan Community Theatre, Inc. for the payment
and use of hatel 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 upon its passage and
approval.
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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BY: �-
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APPROVED AS TO LEGAL FORM:
AT
� day of , 2016.
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�'I-I1�1� WAI"1�;�, MAYOR
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1.1 Consideration. For and in consideration of the activities to be performed by THEATRE
under this Agreement, CITY agrees to pay to THEATRE a portion of the hotel tax revenue
collected by CITY at the rates and in the manner specified herein (such payments by CITY to
THEATRE sometimes herein referred to as the 66UgI�VI�� p�y111VIZLS97 Ol 66hotel tax funds").
1.2 Amaunt of Payments.
(a) As used in this Agreement, the following terms shall have the following specific
meanings:
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DCT HOT Funds, PY2017 - Page 1
(ii) The term 66Collection period" 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 66base payment amount" 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.,
iiscal year or fiscal quarter), less: (1) attorney and auditing costs incurred during such
relevant period of time for costs of collection or auditing of hotel taxpayers (attorney and
auditing costs include fees paid to attorneys or agents not in the regular employ of CITY for
which attorneys or agents effect compliance or collection of the hotel tax from ta�cpayers);
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 30tn,
Septernber 30`�', and December 315t 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 THEATRE an amount of money in each contract
year equal to the lesser amount of: One and Eight Hundredths percent (1.08%) of the annual
base payment amount, or the fixed contract amount of Twenty-Five Thousand Dollars ($25,000).
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 af 1.08% of the base
payment amaunt, whichever is less. If CITY's Chief Financial Ofiicer determines that hotel tax
receipts by the CITY are not meeting the anticipated budget projection, CITY may reduce
THEATRE's current budget at any time during the contract periad. Each quarterly payment is
subject to refund of any unused or improperly expended funds from the prior contract period, and
CITY's timely receipt of the required quarterly reports.
1.3 Dates of Payrnents.
(a) The term "quarterly payments" shall mean payments by CITY to THEATRE of those
amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected.
(b) Each quarterly payment shall be paid upon receipt of the required reports and after the
25t" day following the last day of the contract quarter. If any quarterly financial report is not
received within thirty (30} days of the end of the applicable contract quarter, the recipient rnay be
held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the
appropriate reparts are received and approved, which approval shall not be unreasonably withheld.
1.4 Other limitations regarding consideration.
(a) The funding of this project in no way commits CITY to future funding of this program
beyond the current contract period. Any future funding is solely the responsibility of THEATRE.
DCT HOT Funds, PY2017 - Page 2
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(a) That portion of total administrative costs of the THEATRE for which hotel tax funds
may be used shall not exceed that portion of the THEATRE's administrative costs actually incurred
in conducting the activities specified in ¶2.1 above.
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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 to reimburse THEATRE for any contractual obligations of THEATRE undertaken by
THEATRE 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 obligatians having a term not exceeding the full term of this Agreement.
Notwithstanding any provision hereof to the contrary, the obligation of CITY to reimburse
THEATRE, or to assume the performance of any contractual obligations of THEATRE, for or
under any contract entered into by THEATRE as contemplated herein, shall not exceed 66 2/3%
of the current quarterly payment.
(c) Further, upon termination pursuant to ¶4.2(a), THEAT will provide CITY: 1)
within ten (10} business days from the termination notification, a short-term budget of probable
expenditures far the remaining sixty (60) day period between termination notiiication and
contract termination. This budget will be presented to Council for approval within ten (10)
business days after receipt by CITY. If formal approval 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 of
expenditures that have occurred since the last required reporting period; 4) a final accounting of
all expenditures and tax funds on the day of termination. THEATRE will be obligated to return
any unused funds, or funds determined to be used improperly. Any use of remaining funds by
THEATRE after natification of termination 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 cantractual obligations
having a term not exceeding the full term of this Agreement.
4.3 Auto atic Ter ination. This Agreement shall automatically terminate upon the
occurrence of any of. the following events:
DCT HOT Funds, PY2017 - Page 5
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5.4 Assignment. THEATRE shall nat assign this Agreement without first obtaining the written
cansent 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� •
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�:I�/.11"11.��!
Mike Barrow
DENTON COMMUNITY THEATRE, INC.
214 West Hickory
Denton, Texas 76201
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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 deterrninations relative thereto.
5.8 Exclusive Agree ent. This Agreement contains the entire understanding and constitutes
the entire agreement between the parties hereto concerning the subject matter contained herein.
There are no representations, agreements, arrangements, or understandings, oral or written, express
or implied, between or among the parties hereto, relating to the subject matter of this Agreement,
which are not fully expressed herein. The terms and conditions af this Agreement shall prevail,
notwithstanding any variance in this Agreement fram the terms and conditions of any other
dacurnent relating to this transaction or these transactions.
'' 1 I � `+ - -� . • • + ,
DCT HOT Funds, PY2017 - Page 7
5.10 Headings. The headings and subheadings of the various sections and paragraphs of this
Agreement are inserted rnerely 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 sa designated.
5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this
Agreement, or applicatian thereof to any persan or circumstance is held invalid by any caurt of
competent 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. THEATRE shall provide insurance as follows:
1, $500,000 Commercial General Liability, or $1,000,000 Event Insurance, covering
all events taking place on City-owned property,
2. Statutory Workers' Compensation and Employers' Liability
($100,000/$500,000/$100,000), and
3. $250,000 Liquor/Dram Shop Liability for any event occurring on City-awned
property where alcohol will be provided or served.
CITY must be named as an additional insured on all policies (except Workers' Compensation}, and
proof af caverage shall be submitted prior to any payment by the CITY.
EXECUTED this day af _ M__, 201 f�;'
THE CITY OF DENTON, TEXAS
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HOWARD MAR.TIN,
CITY MANAGER
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DENTON C�`�<�N] �'��i iu� i� �' i`� THEATRE, INC.
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DCT HOT Funds, PY2017 - Page 8
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Secretary
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Denton Cornmunity Theatre
Program Year 2017 Bud�et
Advertising
CV6 Coops
Brochures & Pastcards
Internet / Website
Print Advertisin�
Exhibt A
$ 4,000
7,500
12,500
1,000
zs,000
rotai eua�et S zs,000