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HomeMy WebLinkAbout1974 - CHAMBER OF COMMERCE AND HOT FUNDS AN ORDINANCE AUTHORIZING A CONTRACT BETWEEN THE CITY OF STEPHENVILLE AND THE STEPHENVILLE CHAMBER OF COMMERCE FOR THE EXPENDING OF FUNDS COLLECTED UNDER THE CITY OF STEPHENVILLE HOTEL-MOTEL OCCUPANCY TAX FOR THE PURPOSE OF PROMOTING THE TOURIST AND CONVENTION INDUSTRY OF THE CITY OF STEPHENVILLE; AUTHORIZING THE MAYOR TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF STEPHENVILLE AND TO CARRY OUT ITS PROVISIONS; AND APPROPRIATING OUT OF THE GENERAL FUND FOR EACH FISCAL YEAR. THE PROCEEDS OF THE MONEY COLLECTED UNDER THE CITY OF STEPHEN- VILLE HOTEL-MOTEL OCCUPANCY TAX PASSED ON JULY 2, 1974, LESS ACTUAL COST TO CITY FOR SERVICE AND COLLECTION COSTS. WHEREAS, by ordinance passed on July 2, 1974, the City of Stephenville provided for the assessment and collection of a Three percent hotel occu- pancy tax within said City as set out in the terms and condiditons of said ordinance; and WHEREAS, under the provisions of the hotel-motel occupancy tax ordinance of Stephenville, the monies collected under said tax ordinance are to be remitted to the Tax Collector at the end of each quarter of the calendar year with an additional thirty (30) day grace period prior to the impo- sition of any penalty; and WHEREAS, the City Council is of the opinion that the revenues from the hotel-motel occupancy tax, less actual cost to City for service and collect- ion expenses, should be utilized for the purpose of advertising and promoting the tourist and convention industry of the City of Stephenville and that a contract with the Stephenville Chamber of Commerce for the ministerial and administration work of expending said money for said purposes is in the public interest; and WHEREAS, the City Council finds that the advertising and promotion of the growth of the tourist and convention industry of the City is a public munici- pal purpose for which public money may be lawfully expended; and that the expenditure of said sums for said purposes will be in the public interest and beneficial to the City and its inhabitants and that said money can better be expended and said purposes accomplished through the medium of the Stephenville Chamber of Commerce acting through its Board of Directors with facilities, officers and employees skilled and experienced in said work by means of a contract with said organization providing that the Chamber shall be the con- tractor of the City for the expenditure of said money. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE: 1. There is hereby appropriated out of the General Fund of the City of Stephenville for each fiscal year the proceeds of the three percent (3%) City of Stephenville Hotel-Motel Occupancy Tax collected during said fiscal year, less actual cost to City for service and collection costs to be retained by the -City of Stephenville, and said monies are hereby ordered paid to the Stephenville Chamber of Commerce in a lump sum within forty-five (45) days after the end of each quarterly collection period, said sums of money to be expended by the Stephenville Chamber of Commerce as provided in the contract herein authorized. 2. In order to carry out the above declared purposes and to provide a means for the proper, efficient and economical expenditure of the above men- tioned funds, the following contract is hereby authorized and approved: STATE OF TEXAS § COUNTY OF ERATH- § THIS AGREEMENT this day made and entered into between the City of Stephenville, Texas, a municipal corporation of Erath- County, Texas, herein called "CITY" and the Stephenville Chamber of Commerce, a Texas non-profit corporation, with its office in Stephenville, Texas, herein called "CHAMBER", WITNESSETH Section 1. By ordinance passed and approved on the 2nd day of July, 19.74, City agreed to pay over to the Chamber in lump sum the quarterly collections under the City of Stephenville Hotel-Motel Occupancy Tax for each fiscal year therein appropriated out of the General Fund of the City of Stephenville, for advertising and promoting the tourist and con- vention industry of said City, and to carry out such agreement, said sums are hereby, upon the execution hereof, ordered paid over to the Chamber in quarterly payments, as said monies are collected by the City of Stephenville. Section 2. It is understood that the City enters into this contract with Chamber under its power to contract the functional and administrative work of expending said monies for said public purpose, and it is under- stood that said ordinance and this contract constitute Chamber the City's contractor for the performance of said work. Section 3. Therefore, for and in consideration of the payment to the Chamber of the proceeds of the Hotel-Motel Occupancy Tax of the City of Stephenville, less actual cost to City of service and collection costs to be retained by the City, for the fiscal year 1974-75 and for subse- quent fiscal years, if such Hotel-Motel Occupancy Tax be levied during subsequent years, the Stephenville Chamber of Commerce hereby agrees and contracts to receive, conserve and expend said funds through the express direction of its Board of Directors, and to use its facilities, special knowledge and experience during the term hereof, in the expendi- ture thereof for the purposes of advertising and promoting the tourist and convention industry of the City of Stephenville; such work to con- sist of but not be limited to the following: newspaper and magazine advertising, printing of folders and literature on the tourist and convention attractions of the City of Stephenville, activities to attract and encourage tourist travel and conventions to the City of Stephenville, travel expense necessarily incurred in said activities, reasonable cost overhead, and any other advertising and promotional activities for said purposes. Section 4. Term: The term of this contract shall be from the date of the passage of this ordinance until the end of the 1974-75 fiscal year on September 30, 1975, and from year to year thereafter upon like term and conditions, unless either party shall give to the other party written notice of intention to terminate the contract on its next anni- versary date, such notice to be given in writing sixty (60) days before such anniversary date, and the right to so terminate this contract is hereby specifically reserved to both parties. Section 5. It is understood thattthe appropriation of funds for the 1974-75 fiscal year shall be only those funds collected under the City of Stephenville's three percent (3/) Hotel-Motel Occupancy Tax ordinance passed on the 2nd day of July, 1974, and that for each succeeding year the City shall only pay over in quarterly installments within forty-five (45) days after the City's quarterly collection period such sums of money collected under the levy of the City of Stephenville's three per- cent (3%) Hotel-Motel Occupancy Tax less the actual cost of collecting said tax and performing this contract to be retained by the City of Stephenville. Section 6. Terms and conditions: The following terms and conditions shall be binding on said parties: (a) The funds available under this contract shall be budgeted in a special fund by the Chamber and shall be expended for the purposes hereinabove set out and shall be disbursed under the direction •of the Chamber's Board of Directors and accurate accounts shall be kept thereon. (b) Chamber shall make and render to the City Council an annual • report not later than the last regular Council meeting in September of each year showing in reasonable detail how said funds have been expended and for what purposes and the beneficial results thereof. (c) City reserves the right to cancel this contract on sixty (60) days written notice for breach of any of its provisions by Chamber, ex- pressed through a resolution of the City Council, and this contract shall terminate at the expiration of said sixty (60) days unless Chamber shall have previously corrected the defaults set out in the cancelling resolution. (d) City shall not be liable for claims or demands for damages, monetary or otherwise, that may grow out of or arise from Chamber's actions in the conducting and carrying out of its work and activities financed under this contract, and Chamber shall hold City harmless from such claims and demands. (e) It is further understood that by enacting this ordinance and contract with the Chamber, the City does not bind itself in the future as to any action of the Council in connection with the alteration or repeal or amendment of the City of Stephenville Hotel-Motel Occupancy Tax passed on July 2, 1974, and furthermore, in the event for any reason that funds are not collected by the City under the provisions of the Hotel-Motel Occupancy Tax of 1974-75, the City shall not be obligated under this ordinance and contract to pay over any funds of the City to the Stephenville Chamber of Commerce. It is also understood between the parties to this contract that in the event no funds are available from the City of Stephenville three percent (3%) Hotel-Motel Occupancy Tax, that this contract shall terminate, paragraphs 4 and 5 hereof not- withstanding, and that Chamber shall have no right or demand upon the City for funds payable under this contract if such funds are not available for any reason. Section 7. A copy of said ordinance authorizing this contract passed and approved on the 2nd day of July, 1974, is attached hereto and made a part hereof as though fully copied herein, and the provisions thereof shall be cumulative of the provisions of this contract and govern the provisions hereof where applicable. IN WITNESS WHEREOF, the CITY OF STEPHENVILLE HAS CAUSED these pre- sents to be executed by its Mayor thereunto duly authorized and its seal affixed hereto, and the STEPHENVILLE CHAMBER OF COMMERCE HAS CAUSED THESE PRESENTS to be executed by its President, thereunto duly authorized by its Secretary, on this the `® day of July, 1974. CITY OF STEPHENVILLE By: /r 4k jOirj DONALD R. JONES, .yor AI i i Lc--1 • (/ J-400 - may' i STEPLE CHAMBER OF COMMERCE . fE ���/ /.�41 B - //,,,271 Pe/y D. Elliott, President ATTEST: /7 PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR, on this the 2nd day of July, 1974. 4 4 , %, - DONALD R. JONES, f'ayor ATTEST: / . A / ' City Secretary