13-MANAGEMENT OF HOTEL OCCUPANCY TX FUND AGREEMENTnze�zo�andum
TO: Mayor & Council
John Godwin, City Manager
FROM: Kent McIlyar, City Attorney
SUBJECT: MANAGEMENT OF HOTEL OCCUPANCY TAX FUND AGREEMENT
DATE: June 10, 2013
BACKGROLTND: The Chamber of Commerce maintains a Visitors and Convention Council for
the purpose of managing the Municipal Hotel Occupancy Tax Fund to maintain and operate the
Love Civic Center and to promote tourism and the convention and hotel industry in the City of
Paris. The City has an Agreement with the Lamar County Chamber of Commerce whereby the
City forwards the hotel occupancy taxes once a quarter and the LCCC uses those funds to
operate and maintain the Love Civic Center and to promote tourism and the convention and hotel
industry in the City of Paris.
STATUS OF ISSUE: The LCCC has requested certain changes to be made to the Agreement
this year, including a request that the City of Paris take over maintenance and repair of the Civic
Center Parking lots and driveways. The City's position on this issue in the past has been that the
Civic Center parking lots and driveways are part of the Civic Center Facilities and should be
covered by the hotel occupancy tax funds that City forwards to the Chamber and V&CC each
quarter. The LCCC also wants to include a provision in the contract that would allow them to
give Paris Junior College three (3) free uses of the Love Civic Center each year, similar to the
free dates that City receives each year.
BUDGET: If the City of Paris takes over the cost of maintaining and repairing the Civic Center
parking lots and driveways this will have to be added as a new item to the City Budget for FY
2013-14 and future years.
RECOMMENDATION: Approve an agreement between the City of Paris and Lamar County
Chamber of Commerce for management of hotel occupancy tax fund.
5�
AGREEMENT BETWEEN CITY OF PARIS AND
LAMAR COUNTY CHAMBER OF COMMERCE
MANAGEMENT OF HOTEL OCCUPANCY TAX FUND
STATE OF TEXAS
COUNTY OF LAMAR
)
)
)
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, Chapter 351 of the Texas Tax Code authorizes municipalities to impose
taxes upon occupants who use or possess a hotel room in the City of Paris, Texas as provided in
said Chapter 3 51; and,
WHEREAS, in accordance with Chapter 351 of the Texas T� Code and Article III of
Chapter 30 of the City Code of Ordinances, the City levies a seven percent (7%) occupancy tax
on hotel and motel rooms rented in the City of Paris, Texas; and
WHEREAS, pursuant to said Chapter 351 and Article III, Chapter 30 of the Code of
Ordinances of the City of Paris, Texas 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 home rule
municipal corporation, P.O. Box 9037, Paris, Texas 75461 (hereinafter "CITY") and the
CHAMBER OF COMMERCE OF LAMAR COLJNTY, INC., a non-profit corporation, with
offices located at 8 West Plaza, Paris, Texas 75460 (hereinafter "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 1 St 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 Facilities. Any
proposed amendment to said program of work shall be submitted to the City Council for
approval a minimum of thiriy (30) days before the proposed effective date of such amendment.
-�-
.� 53
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 from 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 and the City
Council of the City of Paris.
4. That CHAMBER shall receive and deposit all hotel/motel tax revenue funds provided
herein in a separate banking account at a local bank which is federally chartered and FDIC
insured 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.
7. 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 T� 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.
8. 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 annum.
��
9. 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.
10. That CHAMBER will, at the same time of presentation of the above-described
quarterly reports, provide a report to the City Council 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.
11. 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.
12. 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; provided, the City shall reimburse the
Chamber and V&CC for any specific damages caused during the City's rental or use of the Civic
Center.
13. That CHAMBER will provide to Paris Junior College ("PJC") three (3) free uses of
the Love Civic Center per year for PJC functions; provided, PJC shall provide a reasonable
damage deposit or insurance coverage for each event and shall reimburse the CHAMBER and
V&CC for any damages to the Love Civic Center caused by said events.
14. That CHAMBER agrees to perform the services required herein in full conformance
with Article III of Chapter 30 of the City of Paris Code of Ordinances, and in full conformance
with the requirements of Chapter 351 of the Texas Tax Code and all other applicable Federal,
State, and local laws and regulations. That CHAMBER further agrees that any and all meetings
conducted by the Visitors and Convention Council to administer and disperse funds pursuant to
this Agreement shall be conducted in public and in conformance with the requirements of the
Texas Open Meetings Act, Chapter 551 of the Texas Government Code.
15. 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
-3- 5 5
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.
16. 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 pursuant to this Agreement.
17. That the initial term of this Agreement shall begin June 11, 2013, and shall end May
31, 2014, provided, however, this Agreement shall automatically renew for successive one-year
terms unless and until the Agreement is terminated by either party on sixty (60) days written
notice to the other party.
18. Any notices required or permitted to be given hereunder shall be given in writing
and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt
requested, or (c) by a commercial overnight courier that guarantees next day delivery and
provides a receipt, and such notices shall be addressed as follows:
For CITY:
City Manager
City of Paris
P.O. Box 9037
Paris, Texas 75461-9037
With an additional copy to:
City Clerk
City of Paris
150 1 St Street SE
Paris, Texas 75460
For CHAMBER:
Lamar County Chamber of Commerce
8 West Plaza
Paris, Texas 75460
or to such other address as either party may from time to time specify in writing to the other
party. Any notice shall be effective only upon actual delivery to the pariy.
19. This Contract shall be construed in accordance with the laws of the State of
Texas. Exclusive venue for any action shall be Lamar County, Texas.
20. This Contract may be executed in duplicate originals, and each shall be
considered the original document.
-4- 5 s
EXECUTED this day of , 2013 by the CITY OF PARIS, TEXAS
and the CHAMBER OF COMMERCE OF LAMAR COUNTY, INC. acting by and through their
authorized representatives.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
ATTEST:
Secretary
By:
By:
CITY OF PARIS, TEXAS
A.J. Hashmi, M.D., Mayor
CHAMBER OF COMMERCE LAMAR
COUNTY, INC.
Melissa Cook, President
-5- 5 �