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HomeMy WebLinkAboutRES 02-238 RESOLUTION NO 02-238 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a one-year contract between the Southeast Texas Arts Council (SETAC) and the City of Beaumont in the amount of $99,000 ($80,000 funded through the Hotel Occupancy Tax Fund and $19,000 funded with general revenues). The agreement is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of October, 2002. a e - Mayor- THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This agreement between the City of Beaumont, a municipal corporation, herein called"City", and the Southeast Texas Arts Council, a Texas non-profit corporation, herein called "Council", is as follows: WITNESSETH WHEREAS, V.T.C.A. Tax Code Section 351.001 et.seq., authorizes the City to use revenue derived from its hotel occupancy tax "for general promotional and tourist advertising of the city and its vicinity and conducting a solicitation and operating program to attract conventions and visitors, either by the City or through contracts with persons or organizations selected by the City; and, WHEREAS,V.T.C.A.Tax Code Section 351.101(a)(4), authorizes the City to use a limited portion of the revenue derived from its hotel occupancy tax for 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 art forms; and, for projects that directly enhance and promote tourism and the convention industry. GAMAGREEMEMSETEXASARTS 10-02.wpd 1 / 4 EXHIBIT "A" WHEREAS, the Southeast Texas Arts Council is the proper organization to provide assistance in the responsible distribution of public funds for support of the arts in Beaumont; Now, Therefore, the City and the Council agree as follows: 1. The payment of the total amount of Eighty-Thousand ($80,000) Dollars by City to Council will be made from funds as available and as collected from the Hotel Occupancy Tax. In addition, the General Fund will provide an additional Nineteen-Thousand ($19,000) Dollars for the same purpose. Payments of Eight-Thousand Two-Hundred and Fifty Dollars ($8,250) will be made monthly commencing October 1, 2002. Any funds not expended for the projects and purposes approved will be retained by the Council to be reallocated for similar arts purposes by approval of the City. 2. All expenditure of funds from the Hotel Occupancy Tax shall be reasonably related to the purposes established by V.T.C.A. Tax Code 351.101(a)(4). 3. The Council is an independent contractor and is not an officer, agent or employee of the City. 4. The Council shall submit quarterly reports in the format provided by the City reflecting the activities of the Council as they relate to this contract. The Council shall submit such reports quarterly commencing January 20, 2003. 5. The City Manager or his designated representative shall, upon reasonable notice, have the right to inspect all books and records of the Council. 6. It is understood and agreed that either party may terminate this contract by giving to the other party notice in writing of said termination thirty (30) days in advance. GAMAGREEMEMSETEXASARTS 10-02.wpd 2 / 4 7. Upon termination of this agreement, unless it be renewed, the Council shall deliver to the City all funds paid under this contract that it may have and all removable personable property that may have been purchased with funds derived from said tax. 8. Funding under this contract will require that should such a seminar be held during the term of this contract, a representative of Council will attend the seminar designed to assure that expenditures of Hotel Occupancy Tax funds are made in compliance with the Act. Attached as an appendix is a briefing paper that outlines methods that will be employed to provide necessary information to assure that funding under this contract complies with state law. 9. Council agrees to indemnify, save harmless, and defend the City of Beaumont from any and all claims, causes of action and damages of every kind arising from the operations of Council, its officers, agents and employees, including the officers, agents, and employees involved in museum operation and specifically including herein any and all acts of negligence by the City of Beaumont, its agents, officers or employees, carried out under the terms of this agreement. GAMAGREEMEMSETEXASARTS 10-02.wpd 3/ 4 EXECUTED this the day of 12002. CITY OF BEAUMONT By: Kyle Hayes City Manager ATTEST: By: Susan Henderson City Clerk SOUTHEAST TEXAS ARTS COUNCIL By: Name: Title: ATTEST: By: Name: Title: GAMAGREEMEMSETEMSARTS 10-02.wpd 4/ 4 HOTEL OCCUPANCY TAX FUNDS FOR ENHANCING THE ARTS AND FUNDING HISTORICAL RESTORATION AND PRESERVATION PROGRAMS The law regulating the use of Hotel Occupancy Tax(HOT)funds limits use of those funds for arts and historical events or projects to those that directly enhance and promote tourism AND the convention and hotel industry. You have been asked to attend this seminar because HOT funds are used to fund the events and projects which you sponsor and the City believes that it is important to discuss some documentation that will be necessary to assure that the use of HOT funds in your projects complies with State law. • Specifically, we ask that in applying for HOT funds next year, you specify for funding only those projects or events that directly promote tourism AND hotel and convention activities. • This year we ask that you fund only programs or events that directly promote tourism AND hotel and convention activity and only the administrative costs of your organization that are associated with such projects or programs. • Future contracts with the City for use of HOT funds will include performance criteria that allow tracking of expenditures of HOT funds to assure that they are used for purposes that comply with the State law. • To assure that expenditures this year are in compliance, we will ask you to provide estimates of the extent to which your HOT funded activities will directly promote tourism AND hotel and convention activity (e.g. number of estimated tourists, hotel activity, convention and delegate attendance). A review of past ticket sales information sorted by zip codes, visitor logs which indicate whether a visitor is GARMW HOTFUNDS staying at an area hotel or attending a convention, and assistance from local hoteliers and the CVB can be used to estimate some of the numbers. • After the funded event is held, we are requesting that HOT fund recipients estimate the actual extent to which their funded activities directly promoted tourism AND hotel and convention activity. Once again, a review of past ticket sales information and assistance from local hoteliers and the CVB may be helpful. • We will request that you provide the City with a summary of a marketing plan for HOT funded activities that is geared to result in funded events that directly promote tourism AND hotel and convention activity. One method of attaining this goal is to include the usage of media and/or promotions that will attract more than just a local audience. Scott K. Joslove, President and CEO of the Texas Hotel and Motel Association, has assured us that local hoteliers are eager to work with art organizations and historical preservation organizations in designing programs that will enhance the arts and the historical preservation activities of this area and assure that HOT funds are being properly expended. - 2 - GARMWHOTFUNDS