HomeMy WebLinkAboutO-2005-2848
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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
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City Secretary
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ity Attorney
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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
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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
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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
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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
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City Secretary
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Ity Attorney .
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LA PORTE - BA YSHORE
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President
Attest:
Secretary
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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.
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