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HomeMy WebLinkAboutC2007-271 - 7/24/2007 - ApprovedPage 1 of '~2 AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND Harbor Pfayhouse Company, inc.{"RECIPIENT") [HOTEL OCCUPANCY TAX REVENUE RECiP1ENT AGREEMENT} The State of Texas KNOW ALL BY THESE PRESENTS: County of Nueces This Hotel Occupancy Tax Re~en~e Recipient Agreement ("Agr~ement") is made and entered in~o by and between the City of Corpus Christi, a Texas hom~-rUle municipal corporation ("City"), acting through its d~ly authorized City Manager or his cfesignee ("City Manager"), and Harbor Playhouse Company, lnc. ("Recipient"}, a Texas nan- ~rofit corporation, quali~ied as a 501(c){3) organization under 26 U.S.C. Section 501(c)(3). Whereas, the City has allocated $45,070.00 in Hotel Occupancy Tax revenue ("Grar~t #unds") to enable Recipient to perform those acti~ities c~escribed in Exhibit "A" ("Acti~ities"}, a copy of which is attached to this Agreement and incorporated by reference; Whereas, City d~sires to encourage ancf fund acti~ities thaf promote the arts and in do~ng so serve to promote tourism and the con~ention and hotel industry wifhin the City of Cor~us Christi, in accordance with Chapter 351 of the Texas Tax Cade; Whereas Recipien~ desires to pro~ide those acti~ities that promo~e the arts, and in doing so serve to promote tou~ism and the convention and hatel indus#ry within the City of Corpus Christi, as the sole or contributory producer of the activities described in Exhibit "A" {"Acti~itEes"); Whereas, City has determined that there exists a genuine ~eed for Recipien~'s Arts program in the City of Corpus ChrESti and wishes to encourage the produc#ion of Recipient's Arks Program throUgh the funding of these Acti~ities; Now, therefore, City and Recipient agree as follows: I. Purpose. The City desires to expend funds from the City's Hotel Occupancy Tax Re~enue to fund activities produced by non-profit, communi#y-oriented organizations, specif~cally those programs that promote the arts and in doing so also promote tourism and the con~entiort and hotel industry within t~e City of Carpus Christi. II. Term, This agreemen# commenc~s on the August 1, 2~07 and terminates on the July 31, 2008. Ili. City's Dc~ties. City agrees to pay Recipient $45,fl70 0~~ o# re~enue from the City of Corpus Christi's H~tel Occupa~cy Tax f~nd for use in accardance with Section IV 2007-271 I City be liable for ar~ amo~nt in exc~ss of this grant amount. 07I24107 Ord. 027352 Harbor Playhouse Co. Tax ftecipienl Agmt - Harbor Playhouse.doc Page 2 of 12 IV. Rec~pient's Duties. In consideration for receipt of Grant funds, Recipient agrees to perform fhose activities described i~ the attached and incorporated Exltibi# "A". This perFormance shall i~clude f~ose acti~ities that are eligible for funding under Section 35'1.101 {a}(4} of the Texas Tax Code and those activities thai are ineligible for funding ~nder tF~at sectian af the Texas Tax Cod~ ~ut are inherent in and essential to the successfui production of Recipient's Acfi~ities. V. Eligible Actir-ities. Use of grant funds by Recipient is limited to those acti~ities that, without exception, meet all three of the following requirements: (Aj the activities are described in the attached and incorporated Exhibit "A". (B) the activifies are in the categories of art that are eligible for funding as described in Section 351.101 {a)(3) and (4) of t~e Texas Tax Code, copy attached as "Exhibit B". {C) tl~e activities promote both tourism and ~he convention and hotel industry within the Ciiy af Corpus Christi. VI. Promotion of Tourism and the Con~ention and Hotel Industry. Recipient must acti~ely promote tourism to the City and the City's hotel and conve~tion industry as a gaal of Recipient's Acti~ities. This may be accomplished by wor~Cing to increase the number of out-of-fown program attendees thraugh ta~-gef promotion and by working with the local Hotef-Motel and Candominium Associations. VIL Completion Repor~. Recipier~t must s~bmit to the City's Director of Management and Budget {"Director") a completion report ("Report"}, no la#er than thirty (30) days faliowing #he termination of this Agreement. The Direcfor, or his designee, shall re~iew this Repot~ to verify whether the Granf funding pro~ided to Recipient was spent in accordance with the requirements ir~ this Agreement. The Report must include the falEowing crtteria: (A) Written assurance ta City that all Activities fcanded by the City served to ~ramote the arts in the community. This shall be evidenced by pra~iding fhe City with a written description of Recipient's marketing or ad~ertising strategy. (B) ~or all Ac#i~ities funded by the City, Recipient must submit to the City a writfen estimate of the number of Recipient's Arts program attendees that resit~e outside the territorial iimi#s af the City o# Corpus Christi. T}~is may be accomplished by the use of a visitor log, by taflying the number af out-of-town billings or by listing the out-of-town mailing addresses gathered through the ticket sales process. (C) An estimate of the total Arts Program at#endance. (D) A statement of Recipient's Arts Program re~en~es and expenditures. C:1~OCUME~1LleannielLOCALS-11Temp12007 Hotel Tax f2ecipientAgmi- FEarbor Playhouse.doC Page 3 of 'i 2 VIII. Records Retention. Recipient must at all times durir~g the term of this Agreement, and for three years following the expiration of the Agreement, keep true, accurate, complete, and auditabfe records. Recipient agrees to: (A) at least annualiy ma~Ce periodic reports to the City of its expenditures from the Grant funds given ur~der tnis agreement; anc~ (B make records of these ~xpendit€~res available for review to the City. IX. Disbursement of Funds. Recipient understands ar~d agrees that payment by the City af Grant fiunds under this Agreement is contingent upan R~cipient's fu{I compliance with fhe requirements af t1~is Agreement. Should Director determine within fi~e years from effecti~e date of this Agreement that Recipient has failed to comply with ti~e requirements contained in this Agreemenf, the Agreement is subject to terminatior~ in accordance with Section XVII, listed below, and all Grant funds must be repaid to the C ity. X. Unexpended funds. Upon fermination af this Agreement, Recipient must ~romptly refund ta City any unexper~ded Grant funds. ' XI. Adrrertising. Recipient must recognize the City of Carpus Christi as a cor~tributa~' on all advertisements and publications regardir~g Recipient's Arts Program. Recipient must pra~ide Director wifh a copy of all Recipient-sponsored ad~ertisi~g and promotion materials regard~ng its Activities. XII. Modifications and Waivers. No provision of this Agreement may be altered, changed, modified, or waived. XIII. Relationship between Parties. Nothing in tt~is Agre~ment shal~ constitute a partnership, joint ~entur~, or principal-age~t relationship beiween the parties. ~ XfV. Compliance with Laws. Recipient shal! observe and obey all applicable Iaws, ordinances, regulations and rules of the Federal, Sta#e, Country and City go~ernments. This Agreement is subject fo applicable provisio~s af t~e City Charter anc! the City Code pf Qrdinances. XV. Non-discriminatior~. Recipient shall not discriminaf~, or permit discrimination against any person or group of persans, as to employment or in fhe pra~ision of services, acti~ities, and programs. Discrimination as it pertains to this section includes discrimination on the basis of race, religion, national origin, sex, disability, or age, or in any other manner thaf is prahibited by the laws of the United States or the State o# Texas. Director retains the right to take action deemed necessary by Dir~ctor to enforce this non-discrimina#io~ covenant. Violation of this pro~ision will result in the immediate termination of this Agreement. XVI. Indemnity. Fo the extent allowed by Texas law, Recipient hereby fully agrees fo indemnify and hotd harmless #he Cify of Corpus C:IDOCUME-1LleannielLOGALS-11Temp120D7 Hotel Tax Recipient Agmt - Harbor Playhouse.doC Page 4 of 12 Christi, its officers, employees, representatives, licensees, and invitees ("indemnitees") against any and aI! liability, damage, Ioss, claims, demands, and actions of any nature due to personal injuries including, but not limited to, workers' compensa#ion and death claims, or any property loss or damage of any kind, that arises out of or is in any manner connected wi#h, caused by, either proximafety or remotely, wholly orin part, or claimed to have arisen out of, been connected with, or have been caused by, any acf or omission, negligence, or misconduc# on fhe part of Indemnitees or Recipient, or Recipient's agents, servants, employees, guests, contracfors, pa~rons, licensees, or invitees parficipating in or observing Recipient's Activities. Recipient further agrees fo indemnify and hold harmless Indemnii~ees in any sifuation in which injury or damage results from a violation by the lndemni#ees or Recipient, or Recipient's agenfs, servants, employees, guests, contractors, pafrons, Iicensees, or invifees, of any law, statufe, ordinance, or government order of any kind. Further, Recipient will indemnify and hold harmless lndemnitees where inju~ry or damage results or arises ou# of #he exercise or rights or performance of obligations created by fhis Agreement. ~ These terms of indemnification are effective regardless of whe#her said injuries or damages resul# from the sote negligence, contributory negligence, or concurrenf negligence of Indemnifees. Recipient musf, af its own expense, investigate all claims and demands, aftend to their final resolution either by setflemenf o~r otherwise, defend alI actions with counsel satisfactory to Indemnifees, and pay all costs and expenses rela#ed to such actions on accounf of liability, damage, Ioss, claims, demands, or actions, including attorney fees. XVII. Terminafiion. {A) T~e City may terminate this Agreement for any of the follawing reasons: (1) T~e City may immediately termina~e the Agreement due to any ~iolation by Recipient o# section XIV or XV of this agreement. (2} The City may terminate this Agreement due to failure by the Recipient ta substantialiy pe~form the Activities described in Exhibit "A". Director ~as the sole discretion to make the determination that Grant funds were used for activities that did not fall within the permitted applications of tax revenue uncfer Section 35~ .101(a) of the Tax Cade. The City may C:IDOCUME~tlJeannielLOCALS~11Temp12o07 Hotel Tax RecipientAgmt- Harbor I'layhouse.doc Page 5 of 12 terminate the Agreement upon thirty (30) days wri~ten natice, specifying ~~at the Director has determined that Grant funds were used for purposes other t~an those allowed under S~ctior~ 35~ .101 {a) of the Tax Cod~, and require Recipient fo reimburse the City alf Grant funds award. Should Recipient and Director agree on a modification to the acti~ities specified i~ Exhibit "A" and execute a w~itten modification in compliance wi#h Section XII of this Agreemer~t, the Ci~y wil! not terminate fhe Agreement due to Recipient's failu~e to a~here to the original, superseded contract terms. (3) The City may terminate this Agreement due to Recipient's use af Grant funds to pay far acti~ities otYter than those qualifying .as Eligible Acti~i~ies under section V of this Agreement. Directar has the sole discretion to make the determination that Grant funds were used ~or activities other than those qualifying as Eligible Acti~ities. The City may terminate the Agreement ~pon fourteen {14) ciays written notic~, and require Recipient to reimburse the City all Granf funds awarded. (B) Recipient may termina#e t~is Agreement without cause upon thirty (30} days written notice to City. If Recipient chaoses to termir~ate the Agreement, Recipient must repay all Grant funds awarded, wh~ther fhose funds were expended on Eligible Acti~~ties or not. XVIII. Se~erability. If any term or pro~ision of this Agreement or its application to a person or circumstance is de#ermined to be illegal, unenforceab~e or invalid, the remainder of this Agreement wiil nof be affected by that illegality, unenforceability, or invalidity. To the extent possible, similar legal, valid, and enforceable terms will automa~ically be substituted for those that are found to be illegal, inva~id, and unenfarceable. . XIX. Force Majeure. With respect to any duties, obligations, or covenants (but not including #he Completion Report required by Section Vll} ~o be performed, or considerafio~ to be pro~ided to either party during the term af this Agreement, the parEy so obligated shall, in no e~ent, be liable for failure to perform when prevented from doing so by any cause beyond the reasonable control of that party ir~cluding, wifhou# limitation: strike, lockout, breakdown, accident, order or regulation of any ga~ernmental au#hority, failur~ of supply, inability, by th~ exercise of reasonabEe diligence, fo obtain suppiies, parts or empfoyees necessary to perForm services, or because of war, naturai disaster, or other emergency. The time when tha# du#y, abligation, or cavenant must be performed or consideration must be provided will be extended for a period o# time equivalent to the delay due to t~e cause beyond tfi~e control of #he par~y obligated. XX. Notices. All notices, demands, reques~s, or replies ("communications") pro~ided for or permitted under this Agreement by either party must fi~e in writing and must be deli~ered by one of the following mefhods: (1) personal delivery; (2) deposit with the United States Postal 5ervic~ via certi#ied or registered mail, retur~ receipt requested, postage prepaid; (3) prepaid telegram; {4) deposit with an o~ernighf expr~ss deli~ery C:IDOCUME-1WeannielLOCALS-11Temp\2007 Matel Tax RecipientAgmt- Harbor Playhouse.doc Page 6 of 12 service, for which service has been prepaid; or {5) fax fransmi~tal. Notice de~osited with the United States Postal Senrice in the ma~ner described abo~e wili ~e deemed effecti~e two (2) business days after deposit with the United Sta#es Pastal Service. Notice by telegram or o~ernight express deli~ery ser~ice in the manner described above will ~e deemed effecti~e one (1) business day aftertransmission to the telegraph company or overnight express carrier. Notice by fax will be deemed received upon transmission with proof of defi~ery to the receiving party. All communications must be made to: I~ to Ci#y: Cify of Corpus Christi _ Director, Parks & ftecreation P. Q. Box 9277 Corpus Christi, TX 7$469-9277 (361) 8$0-346'E If to Recipient: ' Harbor Pla house Com an Inc. 1 Bavfront Parlc Corpus Christi, Texas~78401 Either par~y may change the ~address to which notice is sent by providing natice as described abo~e. Recipient must notify City of an address change within thirty (3Q) days after Recipient's address has changed. XXI. Waivers. The failure of either party to complain of any act or omission on the part of the other party, no matter how long the same may continue, will not be deemed a waiver by said party of any of its rights as enumerated in this Agreement. No waiver o# any co~enant or condition or breach of any cover~ant or candition of this Agreement by either par~y at any time, express or implied, will be taken to constitute a wai~er of any subsequent breach of the co~enan~ or condition. Notwithstanding any indulgence of any breach by the Recipient of the provisions of this Agreement, it is expressly understood that the City may at any time a~ail itself of its r~medies under this Agreemer~#, including the right to terminate the Agreemer~t on acco~ant of breach or default. XXII. Entirety. This Agreement and all ex~ibEts attached constitute the entire and sole agr~ement between the parties regarding the s~bject matte~ described in this Agreement. No oth~r written c~ocuments or oral representations wiN ha~e any farce or effect on the subject matter af this Agreement. C:IDOCUiuEE~1 UeannielLOCALS~11Temp52007 Hotel Tax Recipient Agmt - Har6or Playhouse.doc Page 7 of 12 XXII1. CaptEOns. The captians con#ained in tf~is Agreement are not a part of this Agreement and do not in any way affect or alter the terms of this Agreement. XXIV. Assignment. This Agreement may not be, in whole or in part, assigned or transferred directly or indirectly without prior written consent of Ci#y. / r~ Executed 'n uplicate, each of which wi11 be considered an original, on the ~3 day of , 20Q7. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Gebrg~ K. Noe, City Manager APPROVED: ~Tv~ ~ , 2007 ~~~~ Lisa Aguilar ~ ~ ~~~'~}IpR17,E~ Assistant City Attorney For Gity Attorney ~Y C~11~~I~. ••~.~--~ ~~.--- ~.; ~.:. FOR RECiPIENT ~ ~~SECR~~4RY ~ - President STATE OF TEXAS COUNTY OF NUECES C:IDOCUM~-~11JeannielLOCALS~91Temp12007 Hotel Tax Recipient Agmk - Harbqr Playhouse.Goc Page 8 of 12 Th~instrument was acknowledged befare me on d~ i ~ , 2007, by C" {"'~~5 President, , a Texas non-profit corporation, qualified as a 501(c)(3) organization ~ander 26 U.S.C. Section 501(c)(3), or~ behalf o# the cor~oration. Notary Pub 'c, State f Texas ~[7 e.~ a ~f . C-~ eo~r~c. Printed Name Cammission Expires ~ ~-~ 1 i ° C:IDOCUME~1 VeannielLOCALS-11Terr~p12007 Hotel Tax Retipient Agmt - Harbor Playhouse.doc Pag~ 9 of 12 EXHIBIT A Descri tion of Reci ient's Activities C:IDOCUME-iWexnniellOCALS-11Temp12007 Hotel 7ax Recipient Agmt - Harbor Playhause.doc City o# Corpus Christi FY 20a7-08 APPLICATIQN FOR USE OF HOTEL OCCUPANCY TAX FUNDS The following Informatlcn wi11 he used rn determining your eligfbFlity for funding, To enable frrll cor~sideratron oi'ycur request, please camplete all fnfi~rmatlon to th~ best af your abtli#y. Qrga~ization Name: ~~~ s EventJFacility for Which Funds are Requeste~f. ~ ~i '> /~/~l'~ r ' / ~n X ~ /)I! ~' ~tA 7otal number o~ visitarslat~endees in the p~eviaus calendar year: ~~ J~/ ~'~'" Number of v~sitorslattendees w~o were from aut of town: Q,~D~ ~,,,~.~. ti Number of ~sitarslattendees wt~o stayed in a Corpus Christi hoteL•Gp~lOx~ ~~ Tota! ~nnual operating budge4 (most recent year): $ ~ 1 `t ~ ~ ~ _ arnount af fu~ding requested far next fisca4 year: $`~~~ Q ,~ 1. Haw w+ll funding reqt~este~ enhance the promotion of tourism AND the canventian - and hotel industry in Carpus Cl~risti? ~C3,~,~" ~ ~QQ~r (Continued on reverse side of this page.} -29~- ~ , ~ } 3 Page Two AppEication of Use of HOT Funds 2. Identify mark~ting strategies that will be c~sed to stimulate taurism, corne~tion and ~ hote! acfivlty, , S~ /~~ ~ ~ ~ 3. 1N#~at is the market area, o~tside of the Caastal Bend, that is targeted by tt~ese strategies? ~ ~ ~ ~ ~ ~ ~ (Pleas~ e~se a~ditiana! pagas and attach as necessary.) -292- 1. The fundi.ng we request will entiance the promot~an af taurism and the con~ention and the hatel indust.ry by helpi~g to maintain a quality tourism entertainment venue in Go~pus Christi - the Harbor Playhause. Tourists se~k the arts ixi Corpus Chrisri, and t}~e Harbar Playho;ase consistencly promotes the art of live, high quality theaUrical entertainment. We offer a fult season ofkwelve shovt+s a year which transiates to live, theatrical entertainment every manth far visitars to the city. Many of our audience mem6ers are convenkianeers who wa3k along our sea wall to the Harbor Playhouse. We pramote ou~r shows heavily t~rougt~aut the hotels in our city, and wa consistently find conventianeers fram out of town enjoying our shows. Many times, our volunteers shuttle conventioneers back to their hotels along the Bayfront after an ~vening show. Wc are happy to extexzd the hospita~ity of aur city. We know t2zat with aver 3,OQQ at~f af town visitors a year comi.rag t~roughout doors, we are contributing to the number of "heads in beds" in Cozpus Christi hoteis and motels. We are lmown throughoUt the state as "the Little Theater of Corpus Christi" Winter Texans and theatergoers from around the state come to Corpus Christi and often sg~nd an extra n,ight to catch nne of our eveni~g perfarmanoes. 2.We cuirent~y employ a comprehensive and strategic marketing strategy that inctudes print, radio, and televiisinn ad~ertising, as vvell as imtarnet marketuag ~nd web ad~ertising. We also print full size and window size posters for every show which are diatribused throughaut tt~e city. We make ~iv~ appearances on local radio shows and tetevision prograix~s. Our n~.ast ef~'ective approach is the web-~ased coupon. We u#ilize a stat~of-the-art email messaging system ta zeach our patrons. Statistic from this year alane has shown us that our messages have a 5$% Average Open Rate, which is 33% higher than the national average. Twenty-six percent of visits to www.HarborPlayhouse.corn aa'e from top 10 Texas cities outside the Corgus Christi acea. ' We place our donors' logos an ail of our marketing, including ths City of Corpus Chrisri's logo. 3.We target a~l visitors! We especial~y target resxdents from the twel~e swrounding counties around N~eces, tapping into their radio and newspaper rnarket. A1sa, we are active members af the Te~cas Non Pra~t T~eater Association (TNT~, whiah is the most prestigious ~nn-pro~it theater organizakian in t~e state. Our mernbership a~lows us ta network with theatergoers frorn araund , Texas. . Recently, huo of our sh.aw pos~ers - which include the City of Corpus Chxisti logo - won top prizes at the TNT state oonvention. Currently, Corpus Christi, as represented by the Harbor Playhouse, is tlae frant-runner far the 2009 TN'F Quad Play ~'estival Campetition, which would ~ring deIegation of 20 people or rnore froxn other trjeaters from around the state, to Corpus L~arisEi for fi~e days of live theater. ~ -293- Ia' ~ . - .~ ~~ :~r~ B. :; , ,~ •~.s 'I'he purpose and goals of the Harbor Playhouse are clearly sta~ed in our mission state7nent. Our y~ mission statement is as fal~ows: •..~ The purpase of the Harbor Playhause Com~pariy (HPC} is to provide and perpetuate high quatity, '° live theatre on a financially stable basis with a consistsnt yearly schedule of productions ~; affordable to the public; to pravide Iacal taient of all ages and baak~rounds a medium for crcative ~~ ~ expressiou and educational growth; to provide the public with theatre appreciation and es~joymex~t ~; af a variety of theatrical styles, which also preservc and shares our ethnic heritags, thus preserving and enriching tkze artistic and c~Itural base af the coinrnunity. . Tiacing its history back ta 1925, the or~an.ization now la~own as the Harbor Playhouse Company began with a newspaper advertisement for p~-formers interested in being on stage. Prod~cing an average of four glays a year untxl the Depression, the group reformed in 1935 under tke name Little Theatre Corp~s Christi. On August 4, I948, the Little Theatre Coipus Christi was incorparated, and in 1976, the name was officialiy ch~anged to the Harhor Play~ouse Campany. Taday, the Harbor Playhause, a 501(c).(3} non-profit organization, operates out af a space in the Bay&ont Ptaxa, vvhich i~mcludes a prosc~nium theatre that seats 45~4 and a studio theatre w}~ich can hald up to 150. An,nuaily, more than 250 voleuiteers are actors, technicians, azld support st~~: Volunteers range in age frorn 8 to 80 and reflect the cultur~l diversity of ihe area. With a.diverse schedule of contemporary and classic musicals, non-musicals, and ehi~dren's plays, Harbor ~ Playhouse truly presents exeeptionai works of at-t by the commun.~ty for the co~xununity. To foster learning, excellence and pride amang volunteers and audi~nces, ihe higlaest attistic standards are alvvays mainta~ned in productians. We aze proud to be a part of fhe artistic heritag~ of the Coastal Bend, and as ~uve loo~C to our future, we know that we must depend on the support of aur caminunity in order to remain an integral part of tt~e arts in Sauth Texas. Sernices and Programs we provide throu~out the year include: ~. Live Theater - Twelve high quality live thea~rical events thraughout the year; six on the Mainstage; six in the Studao Theater. The actors and technical crew who pezform at the Harbor Playha~se do it on a volunteer basis whic~ resulcs in more than 15D,000 voiunteer haurs spent at the Harbor Playhouse in the couise of a regula~r season. ~ Ede~catio~aI Theater Csmps -~ The b.arbor Playl~ouse artistic staff offers a schoal of t~eater four times a year for children agss 3-18. Students are trained by seasoned perFormers and stage veterans in acting, voice, and dance. * Haunted Hause -- The Harbor Playhouse presents one sgecial haunted hotzse presentation during the year in October w offe3r a th~iIling, yet safe environm~nt f~r Corpus Ct~risti families to celebrate tb.e haliday. ~ Sammy Awards - The Harbor Piayhouse presents the Sammy Aw~rds one night a year as a special vo~unteer a~reciation celebration. We reczuit local dign.itaries ta help us hanor the hundreds af volunteers who give their tirne and passians to create a qua:lity community theater for Carpus Christi. -294- Page 1 a of 12 EXH~BIT B Texas Tax Code § 351.~0~. U5E OF TAX REVENUE. a) Re~er~ue from the m~nicipal hotel occupancy tax may b~ used only to promote tourism and the con~ention and ho#el industry, and that use is limited to the following: (1} the acquisition of sites for and the construction, impro~ement, e~larging, equipping, repairing, operafion, and maintenance of conv~ntion center facilities or ~isitor information centers, or bofh; (2) the'furnishing of facilities, persortnel, and materials for the re~istration of conver~tior~ delegates or registrants; (3) ad~ertising and conducting solicitations ar~d promotional programs to attract tourists and con~ention delegates or regisfrants to the municipality or its ~icinity; {4) the encouragement, promotion, impravement, and application of the arts, including instrumental and ~ocal music, dance, drama, folk art, creati~e writing, architecture, design and ailied fields, paintir~g, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presenta#ion, performance, execution, anc! exhibitior~ of these major art ~orms; {5} historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional pragrams to encourage tourists and convention delegates to visit preser~ed historic sifes or museums: (A) at or in the immediate ~icinity of convention center facilities or visitor ir~forma#ion cenfers; or {B) locat~d elsewhere in ~he municipality or its vicinity tha~ wocaid be frequented by tourists ar-d con~ention deiegates; (6) for a municipality lacated in a county with a population of one million or less, expenses, including promotion expenses, direcfly related to a sporting event in which fhe majority of participants are ~ourists who substantially increase economic acti~ity at hotels and motels within the municipafity or its ~ic~nify; and (7) subject to Section 351.1076, the promotion of to~rism by the enhancement and upgrading of exis#ing sports facilities or #ie[ds, includir~g facilities or fields for baseball, softball, soccer, and flag football, if: (A) the municipality owns the faciiifies or fields; (B) the municipality: {i) has a pop~lation of 8Q,000 or more and is located in a county that has a popuiation of 350,000 or less; or (ii) has a~opulation of at least 65,000 but not mar~ than 70,000 and is located in a county tnat has a populatior~ of 155,000 or less; and (C) the sports faci~ities and fields ha~e been usecl, in the preceding calendar year, a combined total af more than 1 Q times for district, state, regional, or national sports tou~naments. C:IDOCUME--1 VeannielLOCALS~11Temp12Q07 Hotel Tax Recipieni Agmt - Harbor Playhouse.doc Page 11 of '~2 (b) Rev~nue derived from the tax aufhorized by this chapter sha~l be expended in a manner directly enhancing and ~romoting tourism and the con~entian and hotel industry as permitted by 5ubsection (a). That re~enue may not be used for t~e general re~en~ae purposes or general ~avernmental operations of a municipality. (c) The governing body of a mur~icipality by contract may delegate to a person, including anot~er go~ernmental entity or a pri~ate organization, the management or supervision of prog~ams ar~d activities funded wtth rev~nue fram the tax autharized by this chapter. The go~erning body in writing shall approve in acf~ance the annual budget of the perso~ to which it delegates those functions and shall require #he pe~son to make periodic reports to the go~ernir~g boc~y at least quart~rly listing the expenditures made by the person with revenue from the tax authorized by this chapter. Tf~e per~an must ma~ntain re~enue provided fram #he tax a~t~orized by this chapter in a separafe account established for that purpose and may not commingle ~~at re~en~e with any other money. The municipali#y may no# delegate to any person the manag~ment or supervision af its con~ention and ~isitars programs and acti~ities funded with revenue from the tax authorized by this chapter other fhan by contract as provided by this subsection. The appro~al by the go~erning body of tF~e municipality of the annual budget of #he person to whom the go~erning body defegates those functio~s creates a fiduciary duty in the person with respecf ta the re~enue pro~icfed by the tax autF~orized by #his chapter. (d) A person with whom a municipaEity contracts under this section to conduct an acti~ity authorized by this section shall maintain camplete and acc~rate fir~ancial records of each expenditure of E~atel occupancy tax revenue made by t~e person and, on request of the go~erning body o# the municipality or o#her person, shall make the r~cords a~ai~able far inspection and re~iew to fhe go~erning body or other person. {e) Hotel occupancy tax re~enue spent for a purpose authorized by this section may be spent for cfay-to-day operations, supplies, salaries, office rentai, travel expenses, and otF~er administrati~e costs only if ~F~os~ administrafi~e costs are incurred directly in t~e promotion and servicing expenditures aufhorized under Section 351.101(a). If a municipal or other public or pri~afe entity that conducts an actE~ity authorized under ~~is s~ction conducts other activities that are not au#horized under this section, the por~ion of the total adm~nistrati~e costs of the entity for which hotel occupancy tax revenue may be used may not exceed the portion of those administrati~e costs actually incurred in conducting the authorized activities. (f~ M~nicipaf hotel occupancy tax revenue may not be spent for #ra~el for a persor~ to attend ar~ event or conduc# an activity the primary purpose of which is not directly related to #he promotion of tourism and th~ conventian and hote~ industry or the perFormance of the person's job in an efficient and professional manner. C:1DdCUME-1 VearsnielLOCALS-11Temp12007 Hotel Tax ReCipient Agmt - Harbor PEayhouse.doc Page 12 of 12 {g) Nothing in this sectian shall prohibit any pri~afe entity, perso~, ar organization from making subgranfs by contract to any other person, entity, or private organization for exp~nditures under Secfion 351.~01(a)(4). A s~bgrantee shafl: (1) at least annually make periodic reports to the go~erning body of its expenditures fram the tax authorized by this chapter; and (2} make records of these expendit~res a~ailable for re~iew to the governing body or other person. Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sep#. 1, 19$7. Amended by Acts 1989, 71st Leg., ch. 2, § 14.24(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1110, § 4, eff. Oc~. 1, 1989; Acts 1993, 73rd Leg., ch. 6$0, § 3, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 1027, § 1, eff. Aug. 28, 1995; Acfs 2001, 77th Leg., ch. 755, § 1, eff. June 13, 2001; Acts 2001, 77th Leg., ch. 13Q8, § 3, eff. June 16, 2Q01; Acts 2003, 78th Leg., ch. 209, § 90, efF. Oct. 1, 2Q03; Acts 2003, 78th Leg., ch. 303, § 1, eff. June 18, 2003; Acts 2005, 79th Leg., ch. 1247, §'i, eff. June 18, 2005. C:IDOCUME~1UeannielLOCALS~11Temp12467 Hotel Tax RecipientAgmt- Harbor Playhouse.doc