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HomeMy WebLinkAboutRES 02-237 RESOLUTION NO 02-237 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 Art Museum of Southeast Texas and the City of Beaumont in the amount of$175,000 ($50,000 funded through the Hotel Occupancy Tax Fund and $125,000 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. - Mayor- AGREEMENT FOR THE OPERATION OF AN ART MUSEUM WHEREAS, the Art Museum of Southeast Texas, a Texas non-profit corporation, hereinafter referred to as "Museum", and the City of Beaumont, a municipal corporation of the State of Texas, hereinafter referred to as "City", agree as follows: 1. City hereby hires and engages Museum to operate an art museum open to the public on the premises leased from the City and described in the lease between the parties dated December 30, 1996 and made a part hereof for all purposes(herein"the premises"). Museum agrees to accept such hiring and hereby agrees to operate such art museum. 2. This agreement shall be for a term of one year commencing October 1, 2002. The City agrees to pay museum the sum of Fifteen-Thousand Five-Hundred ($15,500) Dollars the first month with the remaining eleven (11) monthly payments being in the amount of Fourteen-Thousand Five-Hundred and no/100 ($14,500) Dollars. Of this total of One- Hundred Seventy-Five Thousand$175,000 Dollars, Fifty-Thousand($50,000) Dollars will be derived from the Hotel Occupancy Tax authorized by Tax Code Section 351.001 et.seq. which requires that such funds be expended for arts and historical events or projects that directly enhance and promote tourism and the convention and hotel industry. G:\CG\AGREEMEN\Art Museum 10-02.wpd 1 /3 EXHIBIT "A" 3. Expenditure of the Fifty-Thousand ($50,000) Dollars from Hotel Occupancy Tax (HOT) funds shall be related to the purposes established by Tax Code Section 351.101(a)(5). 4. Funding under this contract will require that should such a seminar be held during the term of this contract, a representative of Museum 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. 5. The Museum shall submit quarterly reports in the format provided by the City reflecting the activities of Museum as they relate to the HOT funds authorized in this contract. 6. City or Museum may terminate this Agreement for cause if either party defaults in the performance of any covenant or condition of this Agreement. Prior to such termination City or Museum must provide the other party with written notice of such default and if the party does not cure the default within fifteen (15) days after the giving of notice the party giving such notice may terminate the Agreement by written notice. GACGIAGREEMEMArt Museum 10-02.wpd 2/3 7. City shall allow Museum and its employees, volunteers, patrons and guests to use fifty(50) designated parking spaces in the City owned parking lot lying directly to the east across Main Street from the premises during periods of use of the premises. Otherwise such spaces may be used for City's Civic Center and theater event parking. In addition, the City shall provide free parking for buses transporting school children to the art museum. Said parking places to be as available and as directed by the City's Civic Center director at a site convenient to the Museum. Parking spaces on the premises shall be available for City's use during periods when the premises are not in actual use. IN WITNESS, WHEREOF City and Museum have executed or caused to be executed by their authorized officers or agents this Agreement on the 15th day of October 2002. CITY OF BEAUMONT ART MUSEUM OF SOUTHEAST TEXAS By: By: Kyle Hayes Name: City Manager Title: ATTEST: ATTEST: By: By: Susan Henderson Name: City Clerk Title: G.\CG\AGREEMEN\Ad Museum 10-02.wpd 3 /3 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 Cityfor use of HOTfunds 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 GARMWXHOTFUNDS 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 - GARMIMHOTFUNDS