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HomeMy WebLinkAboutRES 02-239 RESOLUTION NO 02_239 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 Texas Energy Museum and the City of Beaumont in the amount of $80,000 (funded through the Hotel Occupancy Tax Fund). 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- STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This agreement between the City of Beaumont, a municipal corporation, herein called "City", and the Texas Energy Museum, herein called "TEM", is as follows: WITNESSETH: WHEREAS,V.T.C.A.,Tax Code Section 351.001 et.seq., authorizes the City to levy by ordinance, a hotel tax which may not exceed seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, V.T.C.A. Tax Code Section 351.101 (a)(5), authorizes the City to use a portion of the revenues derived from its hotel occupancy tax for historical restoration and preservation projects or activities or advertising and conducting solicitation and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums at or in the immediate vicinity of convention center facilities or located elsewhere in the municipality or its vicinity that would be frequented by tourists; and, for projects that directly enhance and promote tourism and convention activities. WHEREAS, under the authority of V.T.C.A. Tax Code Section 351.101(a)(5), the City desires to provide financial assistance to TEM. NOW, THEREFORE, the City and TEM agree as follows: 1. City agrees to pay to TEM the amount of Eighty-Thousand Dollars ($80,000). The payment provided for herein will be made quarterly in the amount of Twenty- Thousand Dollars ($20,000) per quarter commencing October 1, 2002 from funds as available and collected from the hotel occupancy tax. GAMAGREEMENUX ENGERGY MU 10-02.wpd EXHIBIT "A" Any funds not expended by TEM will be retained by TEM to be reallocated for similar purposes by approval of City. 2. All expenditure of funds shall be reasonably related to the purposes established by V.T.C.A. Tax Code Section 351.101(a)(5). 3. The TEM is an independent contractor and is not an officer, agent or employee of the City. 4. In return for the payments provided for herein, TEM agrees to operate for the period October 1, 2002 to September 30, 2003. 5. The TEM shall submit quarterly reports in the format provided by the City reflecting the activities of TEM as they relate to this contract. The TEM shall submit such reports quarterly commencing January 20, 2003. 6. The City Manager of City or his designated representative shall, upon reasonable notice, have the right to inspect all books and records of the TEM. 7. Upon termination of this agreement or any extension thereof, unless it be renewed, the TEM shall deliver to the City all funds paid under this contract that it may have and all removable personal 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 TEM 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. G:\CGWGREEMEN\TX ENGERGY MU 10-02.wpd 9. TEM 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 TEM, its officers, agents and employees, including the officers, agents, and employees involved in TEM 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. EXECUTED this the day of 2002. CITY OF BEAUMONT By: Kyle Hayes City Manager ATTEST: By: Susan Henderson City Clerk TEXAS ENERGY MUSEUM, INC. By: Name: Title: ATTEST: By: Name: Title: G.\CG\AGREEMEN\TX ENGERGY MU 10-02.wpd 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 - GARWAHOTFUNDS