2016-381s:\legal\our documents\ordinances\16\hot funds py2017\tejas ord.doc
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SECTION 1. The City Manager, or his designee, is hereby authorized to execute an
agreement between the City of Denton and The Tejas Storytelling Assaciation, 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 hereaf.
SECTION 2. This ordinance shall become effective immediately upon its passage and
approval. �
PASSED AND APPROVED this the _� day of �� ___ �, 2016,
Ad ALV A .
JENNIFER WALTERS, CITY SECRETARY
BY: — `�� : ��.� ..a _ _ ,,,,,..,�
APPROVED AS TO LEGAL FORM:
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WHEREAS, T�x. TAx CoDE §351.002 authorizes CITY� to levy by ordinance a municipal
hotel occupancy tax ("hotel tax") nat exceeding seven percer�t (7%) af the cansideration paid by a
hatel accupant; and
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WHEREAS, TEx. TAx CoDe §351.101(c} authorizes CITY ta delegate by contract with
ASSOCIATION, as an independent entity, the management and supervisian of programs and
activities af the type described hereinabove fiulded with revenue from the municipal hotel
occupancytax;
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1.1 Cansideration. For and in consideration af the activities to be performed by
ASSOCIATION under this Agreement, CITY agrees ta pay to ASSOCIATION a partion of the
hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments
by CITY ta ASSOCIATION sametimes herein referred to as the "agreed payments" or "hotel tax
fiznds"}.
1.2 Amount af Payments.
(a} As used in this Agreement, the following terms shall have the following specific
meanings:
(i} The term "hatel tax revenue" shall mean the gross monies callected and
received by CITY as municipal hotel occupancy tax at the rate af seven percent (7%) af
the price paid far a raam in a hotel, pursuant to Texas Tax Code §351.002 and City
Ordin�nce. Hote1 tax revenue will include penalty and interest related to the late
payments of the tax revenue by the taxpayer.
'I'�jas �-IC3T F'uY1ds, 1'i'2017 - Pa�c 1
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(a) The funding of tl�is project in na way comrnits CITIT to future funding of this program
beyond the cuz�rent cantract periad. Any future funding is solely the respansibility of
�SSOCIATION.
`i'ejas I-�C)T �'unds, t'Y2Q 17 - �age 2
(b} It is expressly understood that this cantract in no way obligates the GeneraL Fund or any
ather monies or creciits of CITY.
(c} CITY may withhold fi.rrther ailacatians if CITY determines that ASSOCIATION's
expenditures deviate materially from their appraved budget.
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(b} Hatel t� funds may not be spent for travel for a persan to attend an event ar conduct
an activity the primary pltrpose of which is not directly related to the prornotion af local taurism d
the canvention and hotel industry ar the perfarmance of ihe person's jab in an efficient �nd
professional ma er.
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Tejas HOT Punds, PY2017 - Page 3
purpose of each individual expenditure of hotel t� ds from the separaie account relating to hotel
tax funds. CITY shall not pay to ASSOCIATION any hotel tax revenues as set forth in �ection I af
this cantract during any pragram year of this Agreement unless a budgei for such respective
progr year has been approved in writing by the Denton City Council, autharizing the expenditure
af funds.
(b) ASSOCIATION acknowledges that appraval of the budget (Exhibit "A") by the
Dentan City Cauncii creates a Fiduciary duty in ASSiJCIATION with respect to the hotel tax ds
paid by CITY to AS�OCIATION under this Agreeinent. ASSOCIATION sha11 expend hotel tax
funds only in the matuler and for the purposes specified in this Agreement, TEx. TAx CoDE
§351.101(a) and in the budget as approved by CITY.
(c} Upon the application or cansent of ASSOCIATION, the City Manager or his
designate may autharize minar endments to the appraved budget as necess�ry to c aut the
intent of this Agreement, 'rn a manner consistent with efficient use of public funds, and in
accordance w'rth State law, Such minar amendments may not increase the overall funding set forth
in ¶1.2(b}, extend the term, or otherwise alter the performance obligations of ASSOCIATION,
without approval of the City Council by ordinance.
3.2 Se ara�e ccou ts. ASSOCIATION sha11 maintain any hotel taY funds paid to
ASSOCIATION by CITY in a separate accaunt or with segregated d accouriting, such that any
reasonable persan can ascertain the revenue source af any given expenditure.
3.3 Financial Records. ASSOCIATION shall maintain complete and accurate financial
records of each expendit�re of the hotel taa� funds made by ASSOCIATION. These fiz�lds are
required to be classified as restricted ds far audited fina�cial purposes, d may not be used for
cantracted services, including, but not limited to, auditing fees ar attarney fees. Upan reasanable
advance written request af the Dentan City Council, the City Manager or des'rgnate, or any other
person, ASSOCIATION shall make such financial recorcls available for inspection and review by
the p making the rec�uest. ASSOCIATIQN understands and accepts that alI such financial
records, and any other records relating to this Agreement shall be sub�ect to the Public Info atian
Act, TEx. Gov'`r CoDE, ch. 552, as hereafter amended.
3. uar�erly e aa-tsa After inttiai receipt af the hatel tax ds, and within thirty (30} days
after° the end of every contract quarter, ASSOCIATION shall fi.irnish ta CITY: (1} a completed
fin cial report, (2} a Iist of the expenditures or copies of the invaices ar receipts made with regard
to hotel tax fi.inds pursuant to T�x. TAx CoDE §351.101(c}, and (3} a capy of all financial records
(e.g., copies af front d back of cleared checics ar b statements, and ather relevant
documentatiari}. Both the financial and expenditure reparts will be in a farm either determined or
approved by the City Manager or designate. A�SOCIATION shall respond prornptly to any request
from the City Manager af CITY, or designate, for additional informatian relating to the activifres
perfarmed under this Agreement.
3.5 ��ice af eeti sm ASSOCIATION shall give the City M ager af CIT�, or his
desrgnate, reasonable advance �rritten notice of the time and place of a11 rneetings of
ASSQCIATION's Baard af Directars, as weli as y other meeting of y constituency af
ASSOCIATION, at which this Agreement or any matter subject to this Agreement shali be
considered.
Tejas HOT Funds, P`Y20I7 - Page 4
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Tejas IIC33'T Funcls, PY2017 -�a�e 5
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(b} The insalvency of ASSOCIATION, the filing of a petition in ba ptcy, either
voluntarily or invalLu�tarily, or an assignment by ASSOCIATION for the benefit af creditors;
(c} The cantinuation af a bre�ch of any of the terms ar conditians of this Agreement by
either CITY or ASSOCIATION for more than thirty (30} days after written notice af such breach is
given to the breaching party by the other party; ar
(d) The failure af ASSOCIATION to submit a financial c�uarterly report which camplies
with the reparting pracedures required herein and generally accepted accaunting principles prrar to
the beginning af the next contract term, or quarterly as required by ¶1.3 hereof.
4.4 Right to Immediate Terminatian Ugon Litigation. Notwithstanding any ather provision
af this Agreement, to mitigate dainages and to preserve evidence and issues far judicial
determination, either party sha11 have the right to terminate this Agreement upon immediate notice
ta the other party in the event that any persan has instituted litigation concerning the activities of the
non-terminating party, and the terminating party reasanably believes that such activities are required
or prahibited under this Agreement.
.5 In the event that this Agreement is te inated pLrrsuant to ¶¶4.3 or 4.4, ASSOCIATION
agrees ta refund any and alI unused funds, ar funds deterrnined by CITI� to have been used
improperly, within thirty (30} days after terrnination af this Agreement.
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Tejas HOT I"unds, PY2Q17 - Page 6
Agreement, and the parties hereby declare they would have enacted such remaining portions despite
any such invalidity.
�.12 �r�� r� c��e �1��C�t"I�T'ICiN si���l prr����e ° s� ��c� �s lcalic�w�e
$SOO,OUO Commercial General Liability, or $1,000,000
all events taking place on City-owned property,
Statutpry� Warkers' Compensatic�n and
($100,000/$500,000/$100,000), and
$250,000 Liquor/Drain Shop Liability for any event
property where alcohol will be pravided ar served.
Event Insurance, cavering
Employet°s' Liability
CITY must be named as an additional insured on �ll policies (except Workec�' Compensation} and
proof of coverage shall be submitted priar to any payment by CITY,
EXECUT'ED this day of w_ . 2016.
A ITEST:
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By� ���� , __�,_-.
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Ht_�"�'ARD MARTIN,
CITY MANAGER
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BY _. � _
11: iI° �� �, �"���,`1 � ��q
� ° l" �`��r_ S B,.t °i� l °ARY
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Tejas HOT Funds, PY2017 - Page $
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BY� . __ . -- _ _._._. BY�
Secretary
'Tejas %�O � Fuz�cis, Pi'201.7 - P�ge �
Te:jas Str�rytelling Assnciatinn
Tejas Storytelling Festival
Prograrn Year 2017 Budget
Advertising
Radio & Television
Photography
Print Advertising
Internet
Direct Marketing
Cantract Labor
Art
Performers
Site Operatians
Exhibt A
$ 17,937
550
10,000
3, 000
4,660
�,750
$ 39,897
$ 9, 600
3,250
$ 12,850
Total Budget $ 52,747
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