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23-2289ORDINANCE NO. 23-2289 AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE IN SUPPORT OF THE DENTON COUNTY MUSEUMS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the CITY must use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry including advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality, or its vicinity; and WHEREAS, HOT funds may be used for historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums; and WHEREAS, the Woods House is a historical site and the County is administering a historical restoration and preservation project for the Woods House and HOT Funds paid by the City would be used by the county for this project as outlined in the agreement; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or designee, is hereby authorized to execute an agreement between the City of Denton and Denton County 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 upon its passage and approval. secondeT£ym tr,n_ToTprovUE :dR'n= J:s “!tex,daY=las 11:j£T„tapp,ov,da:: the following vote [X - L] : Aye Nay Abstain Absent Mayor Gerard Hudspeth:,/ ./ / \/ a L/ Vicki Byrd, District 1 : Brian Beck, District 2: Paul Meltzer, District 3 : Joe Holland, District 4: Brandon Chase McGee, At Large Place 5: Chris Watts, At Large Place 6: b B + F A aS P • \i I • PASSED AND APPROVED thi, th, 1 P" day of 'DeceMber . 2023. z-+/h GERARD HUDSPETH, MAYOR ATTEST: JESUS SALAZAR, CITY SECRETARY L\\\\\ 1111111 APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY cxdtay'qnedbysus-'UH Susan Keller agiIE:=:'’-' it=SuwrX£#tIect£enRx\mmrb x 7 bU 2023 120+2Q++jB46W Page 2 of 2 •$ H h P q Lb I r r d• + • IiI?/ aD,, AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY, TEXAS (DENTON COUNTY OFFICE OF HISTORY AND CULTURE) (PROGRAM YEAR 2024) PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a municipal corporation (the “CITY”), and County of Denton, Texas, a governmental entity existing under the laws of the State of Texas, contracting on behalf of its Office of History and Culture (collectively, the “COUNTY”). WHEREAS, TEX. TAX CODE §351.002 authorizes 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, 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 WHEREAS, TEX. TAX CODE §351.101 (c) authorizes CITY to delegate by contract with COUNTY, as an independent entity, the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; WHEREAS, both CITY and COUNTY have a secondary source of authority to enter into the Agreement as an inter-local cooperation agreement, pursuant to Chapter 791 of the Texas Government Code, as: the Agreement is authorized by both governmental bodies; the Agreement states the purpose, terms, rights, and duties of the contracting parties; the consideration is being paid by CITY out of current revenues; the compensation is fair; and the services to be performed are “museum services” authorized under §791.003(3)(F) of the Texas Government Code, which each party is authorized to perform individually; NOW THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, CITY and COUNTY agree and contract as follows: I. HOTEL TAX REVENUE PAYMENT 1.1 Consideration. For and in consideration of the activities to be performed by COUNTY under this Agreement, CITY agrees to pay to COUNTY a portion of the hotel tax revenue collected by CITY at the rates and in the manner specified herein (such payments by CITY to COUNTY sometimes herein referred to as the “agreed payments” or “hotel tax funds”). 1.2 Amount of Payments. (a) meanIngs: As used in this Agreement, the following terms shall have the following specific County Ofc of H&C HOT Funds, PY2024 -- Page 1 of 10 • I +. r Pt ' :- . . . t . 4' : . V . . ' {' : { - . e ' - t - i ' ’ B- bf : = = :: ' ' ; ’ . ' : ' '-!' ?'_' ' 'i - = , ’ :i ' . ' - „ ' -' i '- ! ' , f : ) ' - : i ' 1 r : /. 't . I; Ii ; i- 1 1 ' : + . '\ I L . I .- ' : : '- ' f '- . , - ' :, . ' ' if }' ; i .• - r : .. 1 : [ 1 : • 1 . + 1 ) - L a .• ' ' ' - P- ' 1 / / f 9 1 =n h 1 : : f : a } H H 9 + H B 1 a r F •F h F \ r 1 + 11 q I • . . )I , - I. .' - .. . .. .-. . - ' -'.. 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(i) The term “hotel tax revenue” shall mean the gross monies collected and received by CITY as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to Texas Tax Code §351.002 and City Ordinance. Hotel tax revenue will include penalty and interest related to the late payments of the tax revenue by the taxpayer. (ii) The term “Collection 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 “base 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. , fiscal 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 taxpayers); and (2) court costs and other expenses incurred in litigation against or auditing of such taxpayers. (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 30th, September 30th, and December 3 lst 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 COUNTY an amount of money in each contract year equal to the lesser amount of Eight and Fifty-Five Hundredths percent (8.55%) of the annual base payment amount, or the fixed contract amount of Two Hundred Ninety Thousand Dollars ($290,000). 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 of 8.55% 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 may reduce COUNTY’s current budget at any time during the contract period. 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 Payments. (a) The term “quarterly payments” shall mean payments by CITY to COUNTY of those amounts specified in Section 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 25th 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 County OR of H&C HOT Funds, PY2024 – Page 2 of 10 , . :I . . . . . .. ' ! ' ' ' ,.; ! : '; I1',III 1 1- - : ' ' . .'• r. , . - I • . ' . ' . ! ' • - : F . : I P . I ; - . ' - . _r .• yI - : : ' . ' ' 1 f, : - / J J= . . }{ 1 ', }i '. I r . . . '. . . ' ' -- .' z ' - :- - . - , . 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' iN it ' ''I.' . ':' ; -.!.. ' ' ' ;_ ;' I ’' ''{i'i-l ';;!; - „. 'I': ;(fl . ,!'if. J: .'fI /Iii .19F.f ; i1 !--fl ' ,iII ' , ',":-::tjlf qf '. f1 : 1 } :: J ' ;j I ' d , , ' . f ) '; I; I ;i ; d ' ' ' b', ;';'.• . - iII :r/ - '. .’I ’ i - '-< ' _ -i 1 . ; 1 1 f ' + rbi I ' if > - ' ' it ' ‘ held in breach of this Agreement. CITY may withhold the quarterly payment(s) until the appropriate reports 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 COUNTY. (b) it is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of CITY. (c) CITY may withhold further allocations if CITY determines that COUNTY’s expenditures deviate materially from their approved budget. II. USE OF HOTEL TAX REVENUE 2.1 Use of Funds. For and in consideration of the payment by CITY to COUNTY of the agreed payments of hotel tax funds specified above, COUNTY agrees to use such hotel tax funds only for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity, as well as the promotion of tourism through the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major arts forms, as authorized by TEX. TAX CODE §351.101 (a). Funds for any calendar year which are unused by midnight December 31st of that year shall be refunded to CITY within thirty (30) days. Advertising materials purchased with the hotel occupancy tax funds must be targeted to reach audiences outside the Denton city limits. These materials include, but are not limited to, signs, posters, postcards, newsletters, print advertising, digital marketing, billboards, radio and television. 2.2 Administrative Costs. The hotel tax funds received from CITY by COUNTY may be spent for day-to-day operations, office supplies, salaries, travel expenses and other administrative costs allowed by TEX. TAX CODE §351.101 (e), but only if specified in COUNTY’s budget attached hereto as Exhibit “A“ and incorporated herein for all purposes and each are directly attributable to work on programs, which promote tourism and the hotel and convention industry, and if each promotes at least one of the six statutory purposes enumerated within TEX. TAX CODE §351.101 (a). 2.3 Specific Restrictions on Use of Funds. (a) COUNTY agrees to demonstrate strict compliance with the record keeping and apportionment limitations imposed by TEX. TAX CODE §351.101(f) and §351.108 (c) and (d). COUNTY shall not utilize hotel tax funds for any expenditure which has not been specifically documented to satisfy the purposes set forth in Sections 2.1 and 2.2 above. County Ofc of H&C HOT Funds, PY2024 – Page 3 of 10 I ' P • . + 4 ' FI r I , F fr / r / t P fri . ; - F , ' S ' ;' ' 4' b ' - I' ' .4 ; ; i J _ I - r- i , ' - ' ) '1 = . ' .1 1' . J I r - •T - : . R . . .If . .; !! ' - ’ _ .B - • 1 -1 ' - . : 1 - / ' ' : : . ' - ' ' - . ' . • Fil- ] ' 'I . ' Iq 1• P. - . . ' I. . ' . S ' : ' . ' : .'A ;•l • ' , . ; Z ; ; . / ' ! : : -- ; H -l p i n ' ' ; ;it - = r : ' j . ' r bia Fa , \- p I.. • + it ! ' - r d . . I - . . . j. ill - ; ' ' 1 1 ' ' ; :• + . . ; : - . ' ' : - 1 i • : ' - : ' r a .I ' - ' . , A ! a q r • h• g H • :I t r-t . 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': 1 ' - :' : ' ,' . , ; ; .1- ' / ' / : f’> ; -' ,dr .' I':t; , -""yji : ’.' ! ' 'b ' ,' i ' ;I ''r:. , I/: . , Ii i::. ''::,ri,i .tai f: I , - IEE' I . .(;' ! <b, X Ft - II ):/,FI I, IL: II r : r„ } (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity except where such travel is directly related to the performance of the person’s job in an efficient and professional manner and the primary purpose of which is directly related to the promotion of local tourism and the convention and hotel industry or. Ill. RECORDKEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) COUNTY shall adhere to the budget (Exhibit “A”) as approved by the City Council for each calendar year, for all operations of COUNTY funded by hotel tax revenue. In other words, CITY may audit specifically the purpose of each individual expenditure of hotel tax funds from the separate account relating to hotel tax funds. CITY shall not pay to COUNTY any hotel tax revenues as set forth in Section I of this contract during any program year of this Agreement unless a budget for such respective program year has been approved in writing by the Denton City Council, authorizing the expenditure of funds. (b) COUNTY acknowledges that approval of the budget (Exhibit “A”) by the Denton City Council creates a fiduciary duty in COUNTY with respect to the hotel tax funds paid by CITY to COUNTY under this Agreement. COUNTY shall expend hotel tax funds only in the manner 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 consent of COUNTY, the City Manager or their designee may authorize minor amendments to the approved budget as necessary to carry out the intent of this Agreement, in a manner consistent with efficient use of public funds, and in accordance with State law. Such minor amendments may not increase the overall funding set forth in Section 1.2(b), extend the term, or otherwise alter the performance obligations of COUNTY, without approval of the City Council by ordinance. 3.2 Separate Accounts. COUNTY shall maintain any hotel tax funds paid to COUNTY by CITY in a separate checking account or with segregated fund accounting, such that any reasonable person can review the revenue source of any given expenditure. 3.3 Financial Records. COUNTY shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by COUNTY. These funds shall be classified as restricted funds for audited financial purposes, and may not be used for contracted services, including, but not limited to, auditing fees and attorney fees. Upon reasonable advance written request of the Denton City Council, the City Manager or their designee, or any other person, COUNTY shall make such financial records available for inspection and review by the party making the request. COUNTY understands and accepts that all such financial records, and any other records relating to this Agreement shall be subject to the Public Information Act, TEX. Gov’T CODE, ch. 552, as hereafter amended. 3.4 Quarterly Reports. After initial receipt of the hotel tax funds, and within thirty (30) days after the end of every contract quarter, COUNTY shall furnish to CITY: (1) a completed financial County Ofc of H&C HOT Funds, PY2024 – Page 4 of 10 . t, f . ' ; I_ - t : I ' I . ' ' : - } -I ' : / :, ; ' ' ' : . ' I • 1: 1 ; ' ' J- : \ ' - ' ' ' ' ' # , p 1 fi ; ' . J - ,t ,’ t ' ' ' ; ' ' IP_' . ' I N . r 1 +r ' : ; it .. : )fi; ' r ' - } . . - 'I ' ; } ? : f: 1 4 • . ' : fi ii , ' ' f r • . , ' b ' tI . ' .- , /' i ' 1 ' R .. 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IIi IJ)11 : ' ;' : 1 , J 1l1 . report, (2) a list of the expenditures made or copies of the invoice or receipts with regard to hotel tax funds pursuant to TEX. TAX CODE §351.101 (c), social media and/or digital marketing expenditures require invoices to be provided and shall include performance measures, and (3) a copy of all financial records (e.g., copies of front and back cleared checks or bank statements, and other relevant documentation). COUNTY shall prepare and deliver all reports in a form and manner approved by the City Manager or their designee. COUNTY shall respond promptly to any request from the City Manager of CITY, or designee, for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. COUNTY shall give the City Manager of CITY, or designee, reasonable advance written notice of the time and place of all meetings of COUNTY’s Commissioners Court, as well as any other meeting of any constituency of COUNTY at which this Agreement or any matter subject to this Agreement shall be considered. IV. TERM AND TERMINATION 4.1 Term. The term of this Agreement shall commence on January 1, 2024 and terminate at midnight on January 31, 2025. However, the program period shall commence on January 1, 2024 and terminate at midnight on December 31, 2024. Only those expenditures authorized by Chapter 351 of the Texas Tax Code and the program guidelines, which are actually incurred during the program period, for events and activities taking place within the program period, are eligible for funding under this Agreement, and any ineligible expenditures, unencumbered or unspent funds shall be forfeited to CITY upon termination of this Agreement. Eligible expenditures encumbered by December 31, 2024 shall be expended and reported in the last month of the contract, January 31, 2025 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 terminated by either party pursuant to Section 4.2(a), CITY agrees to reimburse COUNTY for any contractual obligations of COUNTY undertaken by COUNTY in satisfactory performance of those activities specified in Sections 2.1 and 2.2 above and that were approved by the Council through the budget, as noted in Section 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 Sections 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 COUNTY or to assume the performance of any contractual obligations of BUREAU for or under any contract entered into by COUNTY as contemplated herein shall not exceed 66 2/3% of the current quarterly payment. (c) Further, upon termination pursuant to Section 4.2(a), COUNTY will provide CITY: 1) within ten (10) business days from the termination notification, a short-term budget of probable expenditures for the remaining sixty (60) day period between termination notification and contract termination. This budget will be presented to Council for approval within ten (10) County Ofc of H&C HOT Funds, PY2024 – Page 5 of 10 h = r = - 1 . t P • P I r I b L r 1 + = r (I ' r . b . r I _ P P . r ' 'I . ) 1 : 1 f : + : i • . r i IJ i P , I n : ' \ n r r ,4 nr , + 1 F : - . + I + - # F ' Ii a- - 1 r F 1 Fl - II + ! i A • B ' • . - - , - ' ' I ; I • t . :1 • " \ “ ' a P = H H r 1 ) B # a U ' ' 'I . I ' ' ' d - I . ' _ ' ! ' ) r -jb } . fijr + ' I it ) -, / h : - ' - t :; ' : i , ; - I = ! 1 n n I- / ' • b : , F / : • HI ' ' 1 f ' , _ - - • % t ? ':l:• - # t : a " I . V . If I li . ' 1 1 P r & • ;r h •dF • ; U q / e t + b 1 1 I I F TX 1 t • 4 + e + a b r 1 H 1P • + P I + 1 19 IB H r F • • H r 1 S b } { I I R = .I ' ' a. I ' t 1- . Fr F - . f : \'. 1 . + n + • . ' ' E/ ' + ' .J - . I ' ' ' b + , ' f : q '# : - r ' IT - ' r ; i n • rl n ' ' I ! ; I . I ) !• , - . H I B : f # b = q • • d q + b. : Ipr . . f ' . : . r ' ' - ' . .} • - ' = - i // B !! , lil ' •; F : n • I ' 'I ' ' ' ' - ' T . ' L- I. T . + L 'fT - ' I-' , . ,- & 11 . LI_ . : ; :=' 1 t : : ' 1 - 1 . / ! ' : - ' J ' I ! ! ’ ’ , - r . ' : ' I : ' ' ' q . / 1 ' Ji : . ' i 1 1- 1 ' i i -.; ! ' i ttl: • . ; , b , . : r : /; ; ' . .• it ; f : 1 } ' q Pr - =; r . ' FI I - u r : ' ’ ) t ; n Jl. It ;A n = ' 'I - -.f' 1 ; ;' ' t' - -.•. ' - ' . ; - i . - - , - , - ' - “.': i : '; ,;' # f: ' . i ; -. 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' : : 1I , ' f tI ' !- ; ' : . ,i , , :'T : ,h ’ [ ' i ' i : ’ ' - _r ' . - \ ; ; - ' , : : , : \ ,;I! i ffl-'," } ='- ’t. : . r ' 1 B ' : ' , f„ J . , ! : : :' ' , .;1 i ’ ' ' ' l£fl ! ; 'I- , t . . ' ' ; ;l'." - ,r= : .L- i-, : i' . 1.1 , i\ . ' , . \’'i i ?t t . '-' -' ; J1 - 1 .' ' : : : : it - ' ’ . 'I ' -’- .'. . . '’: fit ; iI.It , , :/ ..;f„:-, ' . Ir. - - ' . .: '- e.- 'r ; -J\- : : . . : I. i :'- . t - . . . ’ ' +J I, ' . . ' ' , t ;i, tI : ’I - . - ' _ !\-; f ' : f:tr :- i ; ' : ; :J>; i ii .' ’ - /iIi: 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. COUNTY will be obligated to return any unused funds or funds determined to be used improperly. Any use of remaining funds by COUNTY after notification of termination is conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in Sections 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: (a) The termination of the legal existence of COUNTY; (b) The insolvency of COUNTY, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or an assignment by COUNTY 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 COUNTY 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 COUNTY 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 Section 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 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 Sections 4.3 or 4.4, COUNTY 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. County OR of H&C HOT Funds, PY2024 – Page 6 of 10 . + ! I ’ ; - ' ' b ' II ' + , } . ;; ; ' ' , : . I # ) I, , i : ; 1 1 ! ' 1 ' 1 : / Ii . . : : , , i : : ' , }= f ' ' ' ' . I'I - I - I .- . ' .' 'J - = . q ’ .= ' . ' f: ' . - I I f 1' ' ' 1 . ’ - . r + : I TII . ' . - r l+ . 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' iI } } . / I a 1 : : 4 + n 1+ ; a : : +E r 1 H e! nt S 1 P I a 1 : + • • H r /; q R + 1 1 b = n b ; a i ' > ' t . . - . ' U ' - ; : '- - - - : ' !! t- : : ' - . i , , ,' . I J :- r . . - I . ' q . , : IS . . il. ; ' .:r . , ' i . . I' ! ' . if: , ' '' ' ' t '. ' , it i' ., + : : ' 1 [ f H : 1 B = F : + r + n 1 a q 1 r \ R : H r r L a P n • r I t e F h + - ; - - ' ; ' ' . ' ’ ' iI . I b , L / . ,. ' +: ' ' - .- I fI ' -' - q - -- .f 1. '' . -- ' 'd,: ' ; I ;;i .{!' „ ':t:--r'l . .. , .;11'•_.; ' : : i' : i : -.'L!'. . ' f .- . . III . , ' :''i , ; L. -‘ ' ;- i; ’ ’ ' ' - +',' : I ! I, ’ , .t, i-. I,itN .' 'I --b : :;?i;- ' - . ' . .'-+ ,': '. ' . . - - . ,. . ..I :. ;' . ' . I. I-'':' - :: -+ . " : -: ':’;f. : . IT ; : ' . . : 'I ’ ' I - . ' I . ' . ' 'I. ' I I .. -' - ; :tII„JJ , ,“t - -. ._ , ; ' t ') ;. , , 'ii q' ’ ':,-'.: ' - . - ' ' .' .;. ' ' - 'f'! .-t;, i. ' -: I .- ' - : ', ; : . i = . .: it ,-1; . . . . T; .!U},J•' ' ' ' : ' t! ''1 , 1 . ’1'', j' ' : r!:. , # ' : it ’ : - t:' ' . ' ; I ' . I !;II: ' ’, IF I : . ' ' T.f! %, ;t'•IIII! . .‘ I . - IF ' ! • ' n . a Il- i - .1 : t iI ' -g : ! , ' . , . + ' - . - ’ , q ;+ 1 - . ' . '' ', : . : i . 1Ii ' ' ,I '-' • : ' : , -'; i 'I , ' .Sjr ' - ' ',ll•,• , : ' + ;-': - ' ' = „/!, it ' /- ! ' ' . '-’ .. . -. ..Ir :.. ': ! I. ,. ’: _ ' , , i; ' . . r . ,. ' I'II ' - ' - . , . . ,/ . .a ' 'i . I ; . ; _ - : -SJ ': : i - , .- ' . / ' i : ':-•;• ' . ' .' --" ' ; ‘ {If :'. I, . .tt - {. .I : : -: . ru , \. +! i ' ' / ' . ' - i( i , : ' ' V, GENERAI I PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agreement by COUNTY with another private entity, person, or organization for the performance of those services described in Section 2.1 above. In the event that COUNTY enters into any arrangement, contractual or otherwise, with such other entity, person or organization, COUNTY 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 TEX. TAX CODE 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. COUNTY 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. COUNTY shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and COUNTY shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. COUNTY shall not be considered a partner or joint venturer with CITY, nor shall COUNTY be considered nor in any manner hold itself out as an agent or official representative of CITY 5.3 Indemni$cation. TO THE EXTENT PERMITTED BY THE CONSTITUTION AND LAWS OF THE STATE OF TEXAS, COUNTY AGREES TO INDEMNIFY, HOLD HARMLESS. AND DEFEND crrY. 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 COUNTY OF 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 COUNTY, ITS OFFICERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, LICENSEES AND INVITEES, OR ANY FEES, FINES OR PENALTIES ASSESSED AGAINST CITY DUE TO MISUSE OF FUNDS BY THE COUNTY 5.4 Assignment. COUNTY 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, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY City Manager CITY OF DENTON 215 E. McKinney Denton. TX 76201 COUNTY County Judge DENTON COUNTY AND CULTURE 110 West Hickory Denton, TX 76201 OFFICE OF HISTORY County Ofc of H&C HOT Funds, PY2024 – Page 7 of 10 ' ' . ,. ..'I.I ) . '-'1' . ' ; ' ?1 ' !i ;- ' + = 1 . ' - .- : - 1. --- 1 ' . ' . : ' '- ,f , .l-,• :-- - . - ' - I ; : ' If!' s g.• F t r : I f t PP • ' e • t I L : F . '• rp UP- ; . . 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' I - ! rl '- ’ - . Ii / : ' f’;l ’ I . b ; I + , . ' ' :/ . 'I ; 1 . ' ’ ' 1 - t :' - . . i ,) : ': - f ' ' . . .;l' : - . ' : . . ... ? r . - I a ' : 1 . 1 ' 1 ; . 1 . - .; .,; . F } { { if ' ; 'i . ’ if h . . i , ' f : = 1 1, 1 - +; /'1 _ i = , ' / = • + i „- ' .+- ! ; [ / , _ , - h ! ; -• - r i \ \ \ ’ <' . /! ! ; • : ; I / + ' . L" - - . . ; ; - -rb t\ Ft E : ' / - ' - '’ 1 F' ' - ! i - ";" - i}} ; ' i ! ; : - ' / J ; ' . ' ' ,' , ’ i ) ' / . I , ) . ) : ' hI. fIL ' ' Irq I : ' . I . :i ) _ ;J : ' f [ f ,I . ' . -’ I : i . -- b -' )'i ':.'. : '- j .- - I / - . ; -i ’ - '- ’ . ' . - . '1 . "',' ! ' - ? - - . {. '' ; - '’: 1 '. , ' : /- - ' : ' ) + prt F + f F & n g h H : + = 1 p I r= H H J + 1 p•I t 1 : o r }• qr : IF hISiihf +•+r•p;lgfraqJ• L e , ' 'i • ' ’ r. . \ , if I . - : ' ! A ; ! ' - f ; . , : ! T . ( ;1 • sc { • ' ; }: i ) ' it , i l-/'•: + . > i ll ; . - . 1 & I r / i ! - ’ ; (. : ' ' : bA 1 -} : t . ' - ! : ' i : • I ' ': I’ll , ' ? a' t ' ' ' - {} :'*i?- 1 ' . 1 ’ ...'; ! } ' . :+r '' iT: : i ' 'I; ’ ..I = {,' '! i.p , . / ' l-', !, ' . ' ' f- -- i ' , # I .' I • t F p H& q q : q • • H • a t f 1 a #• r n p r g H H •g : I • H JnFHlr;;b• { r parSrgS : : - q r ' it . . '' . : :. : .- ' I , ! : -, : , ' - I ' ’ “- ’' , ' ' - '. ' ,,' Ji : , :, . . , . ? I - . . . - F - / r :. . i . - ' IfI . . ! '. ' . + =! : J ,fiT it . ' . ',: it. ’ . - ' : r LI : ; ,I: - ' p I rt - r; ; J . . } f =rf : \ r.ii . J . i ; . 1 +' - ' 1 ' ' ' t i 4 -; • ’ T - , t : - - : . _ . - - • + ' + ' . : J:, ' : , ’ : - - 17 . ' ' ' 'I ; ’ I: I . o ' , . ' . ) _ . . . I [ F F :q r F 1 : : +H •I aq • { ( I f ' ! ' (j ' ’' ;' .'' .- ' ' I IJ-v. , : ; ‘ tI f: i =1 FT'}•_ { ; 1 b ' r ' P I. I ++ : i / - / ;; ' i - I : i . _., ' I : .' . I > i :: ':' '-\ i = 'll !Tk ; { }: . ; ;--) ! ' , J’.':J'! ' . i' ' ! 'JI l; ; i . jT ; '„ ' ' ! , ,' if - . ;, i: . 5.6 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 CITY and COUNTY and their respective successors and assigns. 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. 5.8 Exclusive Agreement. 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 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 may be 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 do 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 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. COUNTY shall, at a minimum, provide insurance for the term of this Agreement as follows: 1. 2. $ 1,000,000 Commercial General Liability, or $1,000,000 Event Insurance, covering all events taking place on City-owned property, $500,000 Business Automobile Liability on any owned, non-owned or hired vehicles. 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 made to COUNTY by CITY. EXECUTED thi, IZcday ,f Oecd a\4 d– , 2023. County Ofc of H&C HOT Funds, PY2024 – Page 8 of 10 ?:' : :- ’/Y ? , I I.- ' . : I '’- . iI ' . ' . * - . . ' ’ . ' / I ' : ’ . ' - b ' t: : : 1•. , 1 :-, t h f - -- I, . :J lid - f : '- ' ; i - : '- - - . , + : ’ : ' : . , ' ) ; : . ' - ; _ .' r f : - jl : \ / ;, ', f . . . . . ': - ' - l= r: - ’ '! : ' . -’; ; '- r : 'i , ., ,i , i - ' ' .- . ' , 1 ’ - ' - : ' t : - .. i ' :- ! i' .f + ..:. .’ ' b ' b" ; I f:' ' - .I'- . , , , ' . r„ ' ;-. I . . - /. -J- ' - . . . . , . . J '; . i : • . - . . / . . 1 th ?Jl : fIt .. i ! ; f; i . . I, rI . .. •-• } : f : :: . F )Ir . . ' . . 1 ] ' ’ - - LII ' ': ' ' = - . . ' ' .'; - , ; , ' ' . 1 J•: ' 1- ' : - ! ' ' '! 'ih/ . . . T . . :' . .) : : r = ! :A ' ' ' . ' b : ' I ' . I . . . . . . ' : ' I . :'I P ! ! .+ '. 1 ' '.'IT : . - I _: , ; ' - - _' ;: I I I ' i - - f : „ ' ' 1 f ';'; - ; ' ii ,- :, ', ' t t U-!'I’'‘ ! . • + . f , - " . ; : 1 1' i . . ? ' ; J , . . 1- + . i :,. I. . t . , ; : : + i ' - - • • . . ' .' ' . - I ' I. - : I ' ; ' , ! li, Ii \.\ ,' ' { ' - ' - , . ' ' ' . -- \ , l- . I • = ,- ' 1 \ ' ' : - . ' . I. ! , ; { } if r . dI + r P - e h P P - aU ' + 1 1 • r i ; ! ' + + i / g P . : r ; I - I ' t b . -} -_ i : I ; ' f’ i ' ’ ; ' I - • 1' ; b, : - - : I. \ Eta , ' : . ' F ' . r. ' : : , 1 . - •• : ; ' I \ : ' .- -Iii -: '; 'i{T / ’ - ' . - ' , . - ' . ' t . - - /. ’!', ' .-. ', , [ " ' . . . j\h - ' . '' : . i, : . + : I }\fI, ': : ' . ;J ' r . .I I . . i 'Ii . - . , p ' - h\ p .. . + , : .')? : -? 1: . , . .# ' - - jl - . -' ' / n . ; s . II . ; # I' , { - ' ' . B ' : - . i ' 'i . ! : ' ' ' -I- : : -" - - . :- ! b• J ' \ ; J' ' ’• P -: : ' I ' I + ; - ' : ’ . - ' r I - ; - T .' =.F , . ! ' . . - i - - . ' ' ' . ' ' i '' ' ,I., i =- .,F . :l '' . {. . s ,- . '!: ' la I - [ . . ' L " ' P ' ' ' 1 , - ’ '1 , ' , ' ' • - ; ’ - - : - - - ' { } % - 1 . . ; ' 1 # ' 1 : •n , i 1 :. Irl - ': ' , - ' ;! ! - - fr - '. ' 1 ' ' :i : ' I. - - - ' + .; iT / .„ .i' 1-}IfI , ' -. 'i, ' ! ' .r! ’- . . ; ; ' ) .- ' : -' 1.' 1 .' ;. ' - 1: r ' ' ; it-1/ - n / . - i . ' ;~l1. II . . Ii . T t ' - I : I ' il - i - ;’ i . .- Ii '?IS;; . I I • T JI- : !i'••-• • . ' ' 1 ' ; ; ' . , i . . . i . i , ,I : 1I ' . ''. 1F 1 H ) f P h H I f b I f : F F t P + I i n P H f . . ; _’ ' ' J ' H r I" ; 1 . Ii . „it'' ' r - I ' #’ 1 [4: :f .. I ,.' r ' ' : I.. i ’ , .’' , ' , i ! , i . i , - . ' - ' la - : ' . I '. ' - . . / i . , 'i : I : ' ' ' i ''; . -;I.. : . ,fit . I . . J :;_ , . . 1 :r: -. - -' 1 1. - ’i, , {, . ' . ' If}I. P = •n n H I T ..: I ' { I . f- t . . ' ! I' $ 7 Ji' I -• i' - - ' i ' .• iI Ii ; Ii ; - >XI + ! 'i /it (, . .! !' J’.: 1\\\\U Irl III ATTEST: JESUS SALAZAR, CITY SECRETARY a By: APPROVED AS TO LEGAL FORM -'\.By: THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. MACK REINWAND, CiTY ATTORNEY AssiM tHiILiawtS SIGNATUF@ Jessica Williams PRINTED NAME Chief Financial Officer TITLE Finance DEPARTMENT County Ofc of H&C HOT Funds, PY2024 – Page 9 of 10 Exhibit A Denton County Office of History and Culture Denton County Museums Budget 2024 Advertising Magazines Internet/Social Media 10,000 $ 2,000 $ 12,000 Administration Contract Labor (part-time staffing) subtota I $ 35,000 $ 35,000 $ 5,000 15,000 $ 223,000 § 243,000 $ 290,000 subtota I Historical Archival Supplies New Exhibits Restoration of the Stony store subtota I Total Budget County Ofc of H&C HOT Funds, PY2024 – Page 10 of 10 t F ; rfU I } Denton County Budget OffIce Grant Memorandum To:Commissioners Court From : Date: Denton County Budget Office December 5, 2023 Denton County Office of History and Culture grant for City of Denton Hotel Occupancy Tax Funds - Department/ Grant Title: Grant Award for Calendar Year 2023 - (0 1 .3 180.00,00, 01.10.62) Grant Period:January 1, 2024 - December 3 1, 2024 # of Employees: 0 Funding Year/Type:Annual Award Funding Year Grant Funding County Cash Addnl County Match Funding SO SO Total Funding County Q/, 0.00% Grant % 100.00%25th Year- CY2024 8290,000 $290.000 Totdl $290,000 SO $0 $290.000 0.00% 1 00.00% COMMENTS: This grant award is for funding from the City of Denton Hotel Occupancy Tax (HOT) Funds for the Denton County Office of History and Culture in the amount of 8290,000 for calendar year 2024. This grant is being requested for calendar year 2024 that will begin on January 1, 2024 through December 3 1, 2024 These funds may only be used hr the following; advertising, solicitations and promotional programs that will attract tourists and convention delegates or registrants to Denton or its vicinity; historical restoration and preservation projects and activities that will encourage tourists and convention delegates to visit preserved historical sites and museums; and administrative costs that are directly attributable to work on programs that promote tourism and the hotel and convention industry. A list of line items and amounts are detailed in Exhibit ’'A" that includes various advertising expenses @ $12,000; 11istorical Restoration/Preservation projects totaling $243,000 which includes $5,000 for archival supplies, $15,000 for new exhibits and $223,000 for restoration of the Stony Store Additional funds have also been requested for Contract Labor totaling 835,000. HOT funds have been granted to the County or the Office of History and Culture since 1999; however, funds are dependent upon collection of hotel occupancy taxes and are subject to reductions Please feel free to contact me if you have any questions regarding my review. Any other questions should be directed to Peggy Riddle of the Office of History and Culture. LaDawn Fitzgearld, Budget Analyst Grant Reviewer \ t •••••ee Denton County Administrative Courthouse Courthouse Drive Denton, TX 76208 Request for Agenda Placement and Approval Flow Drafte r: Roslyn Shelton Requested Agenda Date: 12/19/2023 Department: Office of History and Culture Grouping: Other Departments Short Title: HOT Funds Contract FY2023 Agenda Number: 13. C Specific Agenda \Vor(ling Approval to accept the grant award and to approve the Agreement between the City of Denton and Denton County, Texas, providing for Payment and Use of 2024 Hotel Occupancy Tax Funds (HOT FUNDS) for the Denton County Office of History and Culture in the amount of $290,000 and any appropriate action. Office of History and Culture body BACKGROUND Hotel Occupancy Tax funds have been granted to Denton County since 1999. The grant funds are dependent upon Hotel Occupancy taxes being collected by the City of Denton and are reimbursable funds. OPERATIONS AND MAINTENANCE These funds will be used for: advertising, solicitations and promotional programs to attract tourists and convention delegates or registrants to Denton or its vicinity; historical restoration preservation projects and activities to encourage tourists and convention delegates to visit preserved historical sites and museums; administrative costs that are directly attributable to work on programs that promote tourism and the hotel and convention industry. A list of line items and amounts are detailed in Exhibit "A" that include advertising @ $12,000 ($2,000 for Digital Media, and $10,000 for magazine). Additional funding for "Historical" expenses were awarded @ $278,000. Expenses included in this category include contract labor @ 35,000, archival supplies @ $5,000, and new exhibits supplies @ §15,000, and restoration of Stont Store @ $223,000. LEGAL INFORMATION Denton County has statutory authority to enter into, modify, enforce and/or terminate contracts/agreements . In addition, under LGC Section 81.032, Denton County may accept gifts, grants, donations, bequests, and devises of money and other property for any county purpose Denton County Page 1 of 5 Printed on 12/1 4/2023 a 1 P B• -• r a\ 1 B r B F r PP n= ’ +a U 4 FINANCIAL IMPACT These funds will increase revenues and be offset by equal expenditures. No matching County funds are required for this grant. PROJECT SCHEDULE We will need the signed copy returned back on December 19, 2023, for the December 19, 2023 City Council meeting PRECEDING COURT ACTION Commissioners Court has approved receipt and use of HOT Funds grant awards for the past twenty one years Approval History Version Seq # Action Date 1 1 1 2/1 3/2023 Approver Commissioners Court Action Approve Due Date 12/20/2023 Denton County Page 2 of 5 Printed on 12/14/2023 • •/B ; I r r