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HomeMy WebLinkAboutO-2005-2848 e e ORDINANCE NO. 2005- ~ g 1f1 AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE LA PORTE-BA YSHORE CHAMBER OF COMMERCE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 26th day of September, 2005. . (\. City, Of~O* By.~L_ ~ Alton E. Porter, Mayor cqJfJJ/J4~$ City Secretary ~r~ ity Attorney .': e e THE STATE OF TEXAS COUNTY OF HARRIS This agreement made and entered into effective the I st day of October, 2005, by and between the City of La Porte, a municipal corporation, hereinafter called "City", and The La Porte - Bayshore Chamber of Commerce, a non-profit corporation chartered under the Laws of the State of Texas, hereinafter called "Chamber," WITNESSETH: WHEREAS, City has an ordinance providing for the assessment and collection of a Hotel Occupancy tax in the City of La Porte of four percent (4%) of the consideration paid by the occupant of a room, space or facility in any hotel/motel; and WHEREAS, the Chamber is equipped to advertise and conduct solicitation programs to acquaint potential users with public meeting and convention facilities and to promote tourism and advertise the City of La Porte; and WHEREAS, it is to the mutual benefit of the City and Chamber that the City provide funds to the Chamber for the above stated purposes and that the Chamber use such funds for the above stated purposes; NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, City and Chamber hereby agree as follows: SECTION I. Chamber shall employ its best efforts for general promotional and tourist advertising of the City of La Porte and conducting solicitation and operating programs to contract conventions and visitors, including the establishment and operation by Chamber of a convention and visitors bureau. SECTION II. As a consideration for the services set forth in Paragraph 1 hereof, City agrees to pay to Chamber an amount equal to twenty-four percent (24%) of the amount actually collected by the City up to an amount not to exceed $40,000 from the Hotel Occupancy Tax in any City fiscal year during the term of this agreement. SECTION III. The term of this contact is for three (3) years and expires on September 30,2008. No less than ninety (90) days prior to the expiration of the initial 3-year term of this agreement, the City and Chamber may renegotiate the cap level as established in Section 11. Any e e increase in the base contribution will be based on the annual perfonnance report and the annual budget submittal by the Chamber and shall be approved by City Council. SECTION IV. In the event written notice is not given by either party, to this agreement, to the other party ninety (90) days prior to the termination date as noted herein, this agreement shall be extended on the same tenns and conditions for an additional two (2) years. SECTION V. The City shall, on or before the 45th day following the end of each quarter, pay twenty- four percent (24%) of any amount of the monies collected for that quarter, to the Chamber. The quarters will end on the 31 st day of March, the 30th day of June, the 30th day of September and the 31 st day of December of each year. SECTION VI. The Chamber agrees that it will record expenditures involved in this program on a monthly basis in separate accounts. The books of account will be maintained in a fonn approved by the City of La Porte. The Chamber agrees to forward a quarterly report to the City on expenditures involving the use of City funds. Chamber further agrees that the report will be forwarded on or before the 30th day following the end of the quarter. SECTION VII. The Chamber agrees, yearly, to prepare an annual budget on the use of hot ell motel funds received from the City of La Porte and to submit it to the La Porte City Council for approval. The budget submitted to City Council will coincide with the City's fiscal year. For the year of this agreement, the Chamber agrees to submit the budget to Council in October 2005. For all future years, Chamber agrees to submit the budget on or before August lOth of each year. Any special event promoted by the Chamber of Commerce should be included in the annual budget submitted by the Chamber. A one-time contribution for any new special event may be considered by the City based on the merits of the special event and City Council's approval. Chamber shall submit a detailed description of the special event, together with proposed budget for the event, to City at least ninety (90) days prior to the special event. City Council approval of the Chamber's application must be obtained prior to allocation of funds to the Chamber. Any special event promoted by the Chamber shall be included in the annual budget submitted by the Chamber. SECTION VIII. Thirty (30) days after September 30, the end of every fiscal year, the Chamber will furnish to City a perfonnance report of its work under this contract, which shall reflect overall activity, meetings, conventions and conferences conducted, identity, and amount e e of advertising conducted, copies of literature produced as well as a description of direct mailings in the last year, and the expenditures during the year of the funds received pursuant to this contract. SECTION IX. The City reserves the right to audit, utilizing its staff or outside assistance, the annual financial activity of the Chamber that relates to the use of hot ell motel funds. SECTION X. It is understood and agreed that Chamber shall not in any sense be considered a partner or joint ventures with City, nor shall Chamber be considered nor in any manner hold itself out as an agent or official representative of City. Chamber shall be considered an independent contractor for the purposes of this agreement and shall in no manner incur any expenses or liability on behalf of City. SECTION XI. Chamber does further agree to hold City hannless from any and all claims by third parties for any injuries, damage or liability occasioned by Chamber in connection with this agreement. SECTION XII. It is understood and agreed that this contract shall be tenninated upon occurrence of any of the following events: a. The giving of written notice by either party to the party at least ninety (90) days prior to the date of tennination; b. The tennination of the corporate existence of Chamber; c. The insolvency of Chamber, the filing of a petition in bankruptcy, either by or against Chamber, or an assignment by Chamber for the benefit of creditors; d. The breach by Chamber of any of the tenns and conditions of this agreement and the continuation of such breach for a period of ten (10) days after written notice is given by City to Chamber of such breach; SECTION XIII. In the event of the tennination of this agreement as provided in Section XII hereof, Chamber shall submit to City a statement showing any expenses incurred by it for the present year in which said tennination takes place and City agrees to reimburse Chamber, to the extent that said monies are collected from the Hotel Occupancy Tax during that year, an amount equal to the lesser of the expenses incurred by the Chamber during that year or the amount of tax collected for that year. City also realizes that Chamber may have committed themselves to pay expenses for conventions that will occur after the e e termination of this agreement, and City agrees to reimburse the Chamber for such expenses up to the cumulative sum of $1 ,000.00 from the Hotel Occupancy Tax. SECTION XIV. This contract is not assignable. SECTION XV. Any notice required to be given under the terms and provisions of this agreement shall be effective if and when given in writing and deposited in the United States Mail, certified or registered mail, return receipt requested, on the date so deposited and addressed to the respective parties as follows: City Manager City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Executive Vice-President La Porte - Bayshore Chamber of Commerce P.O. Box 996 La Porte, Texas 77572-0996 SECTION XVI. All the terms, condition and stipulations of this contract are subject to all applicable federal laws, and Charter of the City of La Porte, all ordinances passed pursuant thereto and all judicial determinations relative thereto. WITNESS OUR HANDS, effective the 1st day ofOctob7\2?05. r<~, By: ~t~~~ Alton E. Porter, Mayor ~~" I~ City Secretary ;PP~7 ~ Ity Attorney . ./ LA PORTE - BA YSHORE ;y~A~~.~ President Attest: Secretary e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 26. 2005 Appropriation Requested By: Debra Brooks FeazeUe. City Mana2er Source of Funds: Department: Administration Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Ordinance 2005- Amount Requested: Exhibits: Ae:reement Budgeted Item: YES Exhibits: SUMMARY & RECOMMENDATION The contact between the City of La Porte and the La Porte-Bayshore Chamber of Commerce for collection and disbursement of HotellMotel Tax monies will expire on September 30,2005. Staff recommends Council approve renewal of an agreement with the La Porte-Bayshore Chamber of Commerce for a base contribution not to exceed $40,000 per year expiring September 30, 2008. During the FY05-06 budget process, City Council considered funding for a one-time contribution to the Chamber in the amount of $30,000 to enhance the 50th Anniversary Sylvan Beach Festival. The current agreement with the Chamber allows for a one-time contribution to the Chamber should Council desire. This $30,000 will come from fund balance since the annual budgeted revenues exceed expenditures. This agreement requires the Chamber to provide the Council a detailed description of the proposed project and to receive approval from the Council on the design/event before funds are distributed to the Chamber. Action Required bv Council: Consider approval of an ordinance approving an agreement between the City and the La Porte-Bayshore Chamber of Commerce and/or amendments. ~-cXr~5 Date