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2016-373s:\legal\our documents\ordinances\16\hot fiands py2017\area running club ordinance.doc . �r� . , �. . . � � � .� . � �, � � � . � � � � '' � '' , � �, �.' • 1 �' � ` ' • 1 �'� � . �. •' ' • • � • ' . •' 1 ' SECTION 1. The City Manager, or his designee, is hereby authorized to execute an agreement between the City of Denton and the Denton Area Running Club for the payment and use of hotel tax revenue, under the terrns 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. •,_ �, �;....• I� ATTEST: JENNIFER WALTERS, CITY SECRETARY ., BY: � � �. . �, , — _..� APPROVED AS TO LEGAL FORM: I:� I: . day of _pm � e �, 2016. �� , ���... �� � � , �" .__� � .. .. � �. ( 1 �� ��� WATTS, MAYOR � � �, � � � , . �- !, � .' . '', : ' I �.� , � �. �, 1, , I � . ' THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the "CITY"), and the DENTON AREA RUNNING CLUB, a legal entity incorporated under the laws of the State of Texas (the "AREA RUNNING CLUB"): WHE AS, TEx. TAx CoDE §351.002 authorizes CITY to levy by ordinance a municipal hotel occupancy tax ("hotel ta�c") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHE AS, 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 • - � •- -.. - • � . ' ' , • R , : , , +,-�- , .*- . • •- • �' • •+ . . � . • •- �- �- ' - - '.�• •-� - - � • � - � •. � � ' •' ' • - . • • •- • . • • . . s � • ' � . - � . � ' ' ' ' : . . - - . � • ' . � '' � 1.1 Consideration. For and in consideration of the activities to be performed by AREA Ri_TNNING CLUB under this Agreement, CITY agrees to pay to AREA RUNNING CLUB a portion of the hotel t� revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to AREA RUNNING CLUB sometimes herein referred to as the "agreed payments" or "hotel tax funds"). 1.2 A aunt of ay ents. (a) As used in this Agreement, the following terrns shall have the following specific meanings: a . _ _ .* , � * • -• . � -� • �. �"' • �. . . - s �- '', •' - • �. � '• , �• r - � . � . •�- , !� � Dentan Area Running Club HOT Funds, PY2017 - Page 1 Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term 66Collection period99 will mean the collection periad 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 amount99 shall mean a net amount of money equal to the total hatel tax revenue collected by CITY during any relevant period of time (i. e, , fiscal year or fiscal quarter), less: (1) attarney and auditing costs incurred during such period for costs of collection or auditing of hotel t�payers (attorney and auditing casts include fees paid to attorneys or agents not in the regular employ of CITY for which attorneys or agents effect campliance or collectian of the hotel tax from t�payers}; and (2) court costs and other expenses incurred in litigation against, or auditing of, such taxpayers. (iv) The term "co��t�•a�t q����r���ir" sh��ll ��cC��• t�� ��y �����i�f�-�` c�i� tl�s� calen���►- �¢e,ar in which this Agreement is in �'c��°��. �ryc�r�ir�act ca�G���•t�,r�s �ri�l �atcl c��7 I'���r�l� 31St, ,1�1�1r� 30tn September 30t�`, and December 31St af 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 AREA RUNNING CLUB an amount of money in each contract year equal to the lesser amount of: Fifteen Hundredths percent (0.15%} of the arnnual base payment amount, or the fixed contract amount of Three Thausand Five Hundred Dollars ($3,500). This amount will be paid in one lump sum after the 25t" of January 2017. If CITY's Chief Financial Officer determines that hotel tax receipts to the CITY are not meeting the anticipated budget projection, CITY may reduce AREA RUNNING CLUB'S current budget at any time during the contract period. 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 ates of Pay ents. (a) The term bbpayments" shall mean payments by CITY to AREA RUNNING CLUB of those amounts specified in ¶1.2, above, as determined by the hotel tax revenue collected. (b) Each quarterly payment shall be paid upan 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 may be held in breach of this Agreernent. CITY may withhald payment(s) until the appropriate reports are received and approved, which approval shall not be unreasonably withheld. 1.4 ther li itations regarding consideration. (a) The funding of this project in no way commits CITY to future funding af this program beyond the current contract period. Any future funding is solely the responsibility of AREA RUNNING CLUB. Dentan Area Running Club 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. � � � . � . • �-- ', �• ' ' : - �- � •- . - , a .r• � -� � ••- � � . • � � ; � . � � •. * � _ �, _ � � .• . r, : • - .+ --� �. � � - � •- -w .�• ''' ' ' : ,•, . • • - . � • • �' + . • • . � . • . � � � � � . � ••''� '♦ � �' � � ! • !" '�e ' • "� �, ! •� � � *+' � "� f ' � �'� � �' � � � .' � ' �. -� + � ' �, � �`- 1'' • s' '� � �'' ,�'I • ' �� •.' • � •' . ' �,, . '� • ' � �r, s �I �- . �- ' • . •,` � �- - �� *, " ',. I' � _ � "�' � � ' �• #' � � - * 1 • � � � 1 i 1 • " + �, - -M �', • � � � � i s �- �' � '. • �� •f," * •,, • ,•• " ' �' . � � .�, w - , � . � '� • •� • � 1'' • ' � ' - � � � ' � � i � ; � � - � � r � " x � '' � � • � • ', '' !' � ', � �' � � * � � � ' '' • # ' . ! • - � ' . ' � ". • • ',� ' �' ' • � � . 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" " '►• � '� • - �' * � . � �, �' - * .: : � ' ��� '� �: � - • t� �: � " �'��. � • �, ', �.... � r�.. ��... �' � � . : � �: � � �- '�' � �' -� ; •*#'� � •' • �' - �'' � � '' • �''w � • ��*'' - � " * I � - •� � �' +' ;�'� �* '• • � !, 'w r � � + - • • # • . � • �' '!' � � . _ �'• •. # ! � � � r ' � � i � f � ` � - !� : � r ` • . . �: � ' : � . . �'�, � � �' �:. • . ... .� � R ��� � � ..� i . �. •� • � �, �.. • r�. �.. " � �'� • • �' � �' � ���� � �'. : - f : � ' � �. - � ', �: * _ ' �' • f�� . � � !�� : •' � ' •� � • . � � � r ♦ R � • � ',�' � l - •�' � �' � #'' � • � • " • � +. ' • �� l � � . •� ' ' �. ' * �. ' �, : -. ' - . . � •'� � � .�. '�. � ' •��� ! � ' . .. - - '. *... ,�. �, : �: • * � . *' � " • � �', � ' � - � ' - ' � ' #' � • � � • ' • � •' � � � •. _ f, ' � � '� �: � . � 1' • �' '. � �' : � • �� � �. � ' � �. �: • f � �' * � *�. 'i � '. �. � . : ' � � '.. ' � � '�.. � �'�.. � " • '. #' . • � !'�. f � . � '�. � � •�' ��: � - �... * �;��.... � •'' •�I ��� 1'�'.'• •.;•�"� �.�..•�.���' Denton Area Running Club HOT Funds, PY2017 - Page 5 �" • 1' ' � �' • '! � �.' . •'' �' • � •" " • � ' � � - ! � ► ' ' � • # . " * : •' #' - ,� # � � * �+ ' � '! '� '�� � •' �# �' � . � �' �'' � • � � '�. � � '. � �. •'. � �'�. . w , *��. * , � R �. R l f �. �• •'. ' � . ' -� * � * �' ' '1 • •� -� • ��' �' ' ,, , . � � � •' � !' : . � r � � r � • - r �� � � . . •r :. � . _ •-- -* . _ _ .� * - ,��� '� �- * - � � - • • . -� , � .rr - . � • � • - �• � . . r• ., � , . , - � - --� . - - � • , __ . 4.3 Automatic Terminatian. This Agreement shall automatically terminate upon the occurrence of any of the following events: . . � • - -+, - �, �'' � * :> (b) The insolvency of AREA RUNNING CLUB, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by AREA RUNNING CLUB for the benefit of creditors; (c) The continuatian of a breach of any af the terrns or conditions of this Agreement by either CITY or AREA RIJNNING CLUB 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 AREA RLJNNING CLUB ta submit a financial quarterly report which complies with the reporting pracedures 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 Right to Immediate Termination Upon Litigation. Notwithstanding any other provision of this Agreement, to mitigate damages and to preserve evidence and issues for judicial determination, either party shall have the right to terminate 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 parly reasonably believes that such activities are required or prohibited under this Agreement. 4.5 Tn the event that this Agreement is terminated pursuant to ¶¶4.3 or 4.4, A A R ING CLUB 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. ., ,.� �.� r � �, '• i � � •, . �. - . � • • r r- � -• ••• r .*__ � .� . R ;, � - • .- �- � * � ., . • w - •- � . - � • - - - �- �- . �• - - - - . ' • ' ' '� :, - � . , . - • a • � � •- r • w �. . � .• . • : , . • �- • • •+. ,� �.� �� r • � '•- •- •. �• � � • � � � a Denton Area Running Club HOT Funds, PY2017 - Page 6 � � � � /!' � �' '�• � - '�. - � I . � . ' . * . • �, � � �' • � •" 'r �' '• ' •" � - � ' �� ""# �� + �' � � ` + �' �,. ,,, � � , � R • � i •�'' � �.�� +. • I� �' � �' � '! �" �'' • "� /I' � • -- � • • • � w +r' * *, - �'� !,' c � • R 'i � * • • �'' � • . � •" • * • �'- � '� •' • • • �'+ • � ' ,_ � � � * i �> � �', � �,. � - ' •� �,' • . ,# � • �� # � • I - � *' r �' �', � � ' . • � � � � i� •' _ � ,, # ' ' �' . • . ' •' • � ' � � � � � i �' • �' ', • � . � I • ' � ��"' � •' +, '• " � 1' I �' �' :♦ R � I I 1 . • . 1 1 ' 1 ! ' . . �: � � � �,. � .,.. ' a . ♦ c �:' � �. � � � . � ,, R R ' l,,, � � .,:, � �.. � �� � � : � ,':� � �; � � c � c � � ,.. � .:! !,' '.,. � , ,,. � 1 L. � ! .. � � ,. c � ��.. � ' j �. � : . ! � ; • R '.. � ! ... R � ��.. ., t.. R � ,,,. � � ''.. : � ..,:: � � .: ! ... R , .:.. � '.� ; .: � ,.;. �' .. � ., ! . .. . ,,, � R ♦ .. � ! �,... � � , ,. � ' ; � ;. � . , � ,, ., � • � . 1 ,:� a ,., ��i !� � l,.. ,'.� a '�. a , : � �" ♦. � '.. � �,r �� � � : � a, '.. R �� R �, ! ',! ♦ � 5.4 Assignment. AREA RUNNING CLUB shall not assign this Agreement withaut first obtaining the written consent of CITY. � � * - -• -� � �- + •. .. - - * . . • � . • -• . � , a- . • � w.�� -� -� ., -� i . ' - � -� -w • • . � �- .�� -w � - �- - �. . � � , .•- • 1 !' �- � , ! r�f����i f��!1�?�flt�C_� ['��[r�3 Tony Roman DENTON AREA RUNNING CLUB PO Box 2591 Denton, Texas 76202 . ► ' • , r, -, r • • -� # �. . r + • •� �. • • .� �+ . •- � � + ' •• � • - �- . r •• +. • • . � '' ' '' : . • �- • . •, . + Dentan Area Running Club HOT Funds, PY2017 - Page 7 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 CITY of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 5.8 Exclusive Agreement. This Agreement contains the entire understanding and canstitutes 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 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. 5.9 Duplicate Originals. This Agreement is executed in duplicate originals. 5.10 Headings. The headings and subheadings of the various sections and paragraphs of this Agreement are inserted merely for the purpose of convenience and da not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. 5.11 Severability. If any section, subsection, paragraph, sentence, clause, phrase or word in this Agreement, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such halding shall not affect the validity af 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. AREA RUNNING CLUB shall, at a minimum, provide insurance as follows: 1. $5,000,000 Commercial General Liability, or $5,000,000 Event Insurance, covering all events taking place on City-owned property, 2. Statutory Workers' Compensation and Employers' Liability ($100,000/$500,000/$100,000} OR an Occupational Accident Insurance program if approved by the City's Risk Manager, and 3. $500,000 Liquor/Dram Shop Liability for any event occurring on City-owned property where alcohol will be provided or served. CITY must be named as an additional insured on all palicies (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by CITY. EXECUTED this �._._.. day of , .... � � u.: __ �, ...,.._ , 2016. THE CITY OF DENTON, TEXAS , 4 ,r'^ � � %j ",{]f� � ���'.^ �J A �! ���� ��. B�� � / ce �t i r .., m� • 110��1� 1VdC11`ddlV9 � CITY MANAGER Denton Area Running Club HOT Funds, PY2017 - Page 8 � � R f ��. �� ,; ♦ . i, . ♦ •�: � �,;..il.- ...._. . y _. � , � B � ��-_ �- BY� �__ �. �� �` � ��r_. - : .�1, = 1 , `,I� �h 1 � l�� ;1�, s �"�_. ���� �-� �`i�.aF�(=i�'��, �:." Y�[��'��L; �[�'� CITYATTORNEY I:�11_�I+� , ' � .�., R !' � Y y„„, t ( ,� �.�,..,�,. " ..,..,. , r� .... "_ ......_,. ._.,.. .... . �'I��� � � ��a ��.��/r�, i �c.t€� r ,...� � . � ; . �• By: �_ ..� BY� Secretary Dentan Area Running Club HOT Funds, PY2017 - Page 9 Road Runners Club of America Denton Area Running C/ub's Downtown Denton Turkey Trot Program Year 2017 Budget Advertising Banners Posters Flyers Radio Exhibit A $ 500 500 1,000 1,500 Total Budget $ 3,500