32-Hotel Occupancy Tax Fund Chamberand V&CC
CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date: Originating Department: Presented By: Agenda Item No.:
10/20/10
Council Date: Legal Kent McIlyar, City Attorney 32.
10/25/10
RECOMMENDED MOTION:
Move to approve a Resolution authorizing a Contract with the Chamber of Commerce of Lamar County,
Inc. to maintain the Visitors & Convention Council for the purpose of managing the municipal hotel
occupancy tax fund.
POLICY ISSUE(S):
Fiscal
BACKGROUND:
Chapter 351 of the Texas Tax Code authorizes municipalities to impose taxes upon use or possession of
a hotel room. As provided in Article 3, Section 30-38 et seq. of the Code of Ordinances of the City of
Paris, the City imposes a hotel occupancy tax as authorized by state law.
The current contract with the Chamber of Commerce was approved on December 12, 2005 and the
proposed agreement makes no changes other than to have a new initial one-year term with four one-year
renewals.
BOARD/COMMISSION RECOMMENDATION:
N/A
EXHIBITS:
Resolution and Contract
ACTION: BUDGET INFO:
❑ Financial Report ❑ Minute Order Expense $
❑ Department Report ® Resolution Budgeted Amt. $
❑ Presentation ❑ Ordinance YTD Actual $
❑ Public Hearing ❑ Other Acct. Name
Acct. Number
FISCAL NOTES:
REVIEWED AND APPROVED BY:
® Administration ® City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire
❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
Revised 2/04/08
City of Paris
342
DRAFT
attorney\reswork\current\V&CC Tax Contr Res 2010
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, APPROVING THE CONTRACT WITH THE CHAMBER OF
COMMERCE OF LAMAR COUNTY, INC. TO MAINTAIN THE
VISITORS & CONVENTION COUNCIL FOR THE PURPOSE OF
MANAGING THE MUNICIPAL HOTEL OCCUPANCY TAX FUND TO
PROMOTE TOURISM AND THE CONVENTION AND HOTEL
INDUSTRY IN THE CITY OF PARIS; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of
December, 2005, in Resolution No. 2005-148, authorize the execution of a contract with the
Chamber of Commerce of Lamar County, Inc., to maintain the Visitors & Convention Council for
the purpose of managing the Municipal Hotel Occupancy Tax Fund to promote tourism and the
convention and hotel industry in the City of Paris, which contract expired on the 30th day of
September, 2010; and,
WHEREAS, the City Council is pleased with the accomplishments through the
administration of the Visitors & Convention Council and is desirous of renewing the contractual
arrangement with the Chamber of Commerce of Lamar County, Inc. on revised terms and
conditions as stated in said revised contract; and,
WHEREAS, the form of said revised contract, attached hereto as Exhibit A, should, in all
things, be approved, and the Mayor should be authorized to execute the same.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That the form of the contract with the Chamber of Commerce of Lamar
County, Inc. for maintaining the Visitors and Convention Council, attached hereto as Exhibit A,
be, and the same is hereby, approved.
Section 3. That the Mayor be, and he is hereby, authorized and directed to execute, on
behalf of the City of Paris, the contract with the Chamber of Commerce of Lamar County, Inc.,
upon the terms and conditions and in the form shown in Exhibit, A attached hereto.
Section 4. That this resolution shall be effective from and after its date of passage.
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PASSED AND ADOPTED this 25th day of October, 2010.
Will Biard, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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AGREEMENT BETWEEN CITY OF PARIS AND
LAMAR COUNTY CHAMBER OF COMMERCE
MANAGEMENT OF HOTEL OCCUPANCY TAX FUND
STATE OF TEXAS )
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR )
WHEREAS, Chapter 351 of the Texas Tax Code authorizes municipalities to impose
taxes upon use or possession of a hotel room as provided in said Chapter 351; and,
WHEREAS, as provided in Article 3, Section 30-38 et seq. of the Code of Ordinances of
the City of Paris, the City of Paris has, pursuant to the aforesaid Chapter 351 of the Texas Tax
Code, imposed a hotel tax as authorized by state law; and,
WHEREAS, pursuant to said Chapter 351 and Section 30-38 of the Code of Ordinances
of the City of Paris, the City desires to contract with the Chamber of Commerce of Lamar County,
Inc., to maintain a Visitors and Convention Council for the purpose of managing the municipal
hotel occupancy tax fund as set out in this agreement;
WITNESSETH:
For and in consideration of these premises, the CITY OF PARIS, TEXAS, a municipal
corporation, acting by and through its Mayor, Will Biard, duly authorized, hereinafter called
CITY, and the CHAMBER OF COMMERCE OF LAMAR COUNTY, INC., a corporation, acting
by and through its Director, Mindy Moree, duly authorized, hereinafter called CHAMBER, in
consideration of the mutual covenants, agreements, stipulations, and payments, do hereby contract
and agree as follows:
1. That CHAMBER agrees to maintain a Visitors and Convention Council for the
purpose of managing the Municipal Hotel Occupancy Tax Fund to promote tourism and the
convention and hotel industry in the City of Paris, and for the purpose of operating the Love Civic
Center.
2. That CHAMBER shall submit for approval to the City Council of the City of Paris on
or before July 1St each year a proposed annual program of work and budget for the Visitors and
Convention Council which shall include dedicating three-sevenths (3/7) of the total hotel/motel
tax revenue received by CHAMBER to a convention capital fund to be used for improving,
enlarging, equipping, repairing, operating, or maintaining the Love Civic Center. Any proposed
amendment to said program of work shall be submitted to the City Council for approval a
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minimum of thirty (30) days before the proposed effective date of such amendment.
Approval by the City Council of the City of Paris of the annual budget for the Visitors and
Convention Council creates a fiduciary duty in the CHAMBER with respect to the revenue
received by the Municipal Hotel Occupancy Tax.
3. That CHAMBER's established Visitors and Convention Council shall meet at least
quarterly and, within thirty (30) days after the end of each quarter, shall submit minutes of the
Visitors and Convention Council meeting and a financial report to the City Manager of the City of
Paris.
4. That CHAMBER shall receive and deposit all funds provided herein in a separate
banking account in such a manner as to preclude co-mingling of these funds with other funds of
said CHAMBER.
5. That CHAMBER shall maintain complete and accurate financial records of all
expenditures of hotel occupancy tax revenue and on request by the City Manager or City Council
of the City of Paris shall make the records available for inspection and/or audit to the CITY or its
designated representative.
6. The CITY shall make quarterly distributions to the CHAMBER of the Hotel
Occupancy Taxes collected pursuant to Article III, Chapter 30 of the City Code of Ordinances and
Chapter 351 of the Texas Tax Code for the CHAMBER'S use in operating the Visitors and
Convention Council and promoting tourism and the convention and hotel industry in the City of
Paris, Lamar County, Texas.
That CITY shall retain five percent (5%) of the quarterly collections under Article III of
Chapter 30, Code of Ordinances of the City of Paris, for the purposes of funding special purpose
grants to enhance tourism as determined by the City Council in accordance with Chapter 351 of the
Texas Tax Code. CITY shall pay over the remainder of tax funds collected to CHAMBER within
thirty (30) days after the end of the collection period thereof as provided in Section 30-40 of the
Code of Ordinances of the City of Paris.
7. That money paid to CHAMBER as a result of this Agreement shall be used only for the
purposes enumerated in Section 30-38 of the Code of Ordinances of the City of Paris. As part of
those purposes, and pursuant to the provisions of Section 30-38 (4) of the Code of Ordinances of
the City of Paris, the CHAMBER shall, during the term of this agreement, including any
extensions thereof, fund the City of Paris Municipal Band in an amount of no less than $10,000 per
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annum.
8. That CHAMBER agrees to make periodic reports to the City Council at least quarterly,
listing the expenditures made with revenue from the Municipal Hotel Occupancy Tax Fund.
9. That CHAMBER will, at the same time of presentation of the above-described
quarterly reports, provide a report of its activities with regard to the use of the funds herein
provided for so that CITY may evaluate the results of the promotion and advertising campaign so
conducted.
10. That CHAMBER may secure and pay for, out of funds provided herein the services of
individuals or corporations to promote tourism and the convention and hotel industry in the City of
Paris.
11. That CHAMBER will provide to the CITY six (6) free uses of the Civic Center
facility for use by the CITY for CITY related functions.
12. That CHAMBER agrees to perform the services provided hereunder in full
conformance with the provisions of the Code of Ordinances of the City of Paris, including
specifically Article III of Chapter 30 of said Code, and in full conformance with the requirements
of Chapter 351 of the Texas Tax Code. That CHAMBER further agrees that any and all meetings
conducted by the Visitors and Convention Council or otherwise to administer and disperse funds
as grants for support of the arts shall be conducted in public in conformance with the Texas Open
Meetings Law, Chapter 551 et seq.
13. That CHAMBER covenants and agrees that CHAMBER is an independent contractor
and not an officer, agent, servant or employee of the CITY; that CHAMBER shall have exclusive
control of and exclusive right to control the details of the services to be performed hereunder and
all persons performing same, and shall be responsible for the acts and omissions of its officers,
agents, employees, contractors, subcontractors and consultants; that the doctrine of respondeat
superior shall not apply as between CITY and CHAMBER, its officers, agents, employees,
contractors, subcontractors and consultants, and nothing herein shall be construed as creating a
partnership or joint enterprise between CITY and CHAMBER for the purpose of this contract and
shall, in no manner, incur expenses or liabilities on behalf of CITY.
14. That CHAMBER agrees to release, indemnify and hold the CITY its elected officials,
officers and employees harmless from any and all claims or lawsuits brought by third parties for
injuries, damages, or liabilities arising from or related to the services provided by CHAMBER
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pursuant to this Agreement.
15. That the term of this Agreement shall begin October 1, 2010, and shall end September
30, 2011, provided that said contract shall automatically renew for four (4) additional one-year
terms, ending September 30, 2015 unless terminated earlier by either party to the Agreement.
Either party to this Agreement may provide notice to the other party of intention to terminate this
contract effective at the end of the then current term, provided written notice of such intent to
terminate is delivered to the other party no less than thirty (30) days prior to the automatic renewal
date.
EXECUTED on the dates shown in the acknowledgments below.
CITY OF PARIS, TEXAS
By:
Will Biard, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
CHAMBER OF COMMERCE LAMAR
By:
Mindy Moree, Director
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ATTEST:
Secretary
STATE OF TEXAS )
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared WILL BIARD,
Mayor of the City of Paris, Texas, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of October, 2010.
Notary Public, State of Texas
STATE OF TEXAS )
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on the undersigned authority, on this day
personally appeared MINDY MOREE, Director, Chamber of Commerce of Lamar County, Inc.,
known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of October
2010.
Notary Public, State of Texas
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