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HomeMy WebLinkAboutC2008-425 - 7/22/2008 - ApprovedPage 1 of 11 AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND INSTITUTO DE CULTURA HISPANICA DE CORPUS CHRISTI ("RECIPIENT") (HOTEL OCCUPANCY TAX REVENUE RECIPIENT AGREEMENT) The State of Texas County of Nueces KNOW ALL BY THESE PRESENTS: This Hotel Occupancy Tax Revenue Recipient Agreement ("Agreement") is made and entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation ("City"), acting through its duly authorized City Manager or his designee ("City Manager"), and Instituto de Cultura Hispanica de Corpus Christi ("Recipient"), Texas non-profit corporation, qualified as a 501(c)(3) organization under 26 U.S.C. Section 501(c)(3). Whereas, the City has allocated $20,000.00 in Hotel Occupancy Tax revenue ("Grant funds") to enable Recipient to perform those activities described in Exhibit "A" ("Activities"), a copy of which is attached to this Agreement and incorporated by reference; Whereas, City desires to encourage and fund activities that promote the arts and in doing so serve to promote tourism and the convention and hotel industry within the City of Corpus Christi, in accordance with Chapter 351 of the Texas Tax Code; Whereas Recipient desires to provide those activities that promote the arts, and in doing so serve to promote tourism and the convention and hotel industry within the City of Corpus Christi, as the sole or contributory producer of the activities described in Exhibit "A" ("Activities"); Whereas, City has determined that there exists a genuine need for Recipient's Arts program in the City of Corpus Christi and wishes to encourage the production of Recipient's Arts Program through the funding of these Activities; Now, therefore, City and Recipient agree as follows: I. Purpose. The City desires to expend funds from the City's Hotel Occupancy Tax Revenue to fund activities produced by non-profit, community-oriented organizations, specifically those programs that promote the arts and in doing so also tourism II. Term. This agreement commences on the 1St day of August, 2008 and terminates on the 31St day of July, 2008. III. City's Duties. City agrees to pay Recipient $20,000.00 out of revenue from the City of Corpus Christi's Hotel Occupancy Tax fund for use in accordance with Section IV L-~ 2008-425 ,ity be liable for an amount in excess of this grant amount. 07/22/08 Ord. 027776 [nstituto de Cultura Hispanica mt-Instituo tle Cultura Hispanica.doc Page 2 of 11 IV. Recipient's Duties. In consideration for receipt of Grant funds, Recipient agrees to pertorm those activities described in the attached and incorporated Exhibit "A". This pertormance shall include those activities that are eligible for funding under Section 351.101(a)(4) of the Texas Tax Code and those activities that are ineligible for funding under that section of the Texas Tax Code but are inherent in and essential to the successful production of Recipient's Activities. V. Eligible Activities. Use of grant funds by Recipient is limited to those activities that, without exception, meet all three of the following requirements: (A) the activities are described in the attached and incorporated Exhibit "A". (B) the activities are in the categories of art that are eligible for funding as described in Section 351.101(a)(3) and (4) of the Texas Tax Code, copy attached as "Exhibit B". (C) the activities promote both tourism and the convention and hotel industry within the City of Corpus Christi. VI. Promotion of Tourism and the Convention and Hotel Industry. Recipient must actively promote tourism to the City and the City's hotel and convention industry as a goal of Recipient's Activities. This may be accomplished by working to increase the number of out-of-town program attendees through target promotion and by working with the local Hotel-Motel and Condominium Associations. VII. Completion Report. Recipient must submit to the City's Director of Management and Budget ("Director") a completion report ("Report"), no later than thirty (30) days following the termination of this Agreement. The Director, or his designee, shall review this Report to verify whether the Grant funding provided to Recipient was spent in accordance with the requirements in this Agreement. The Report must include the following criteria: (A) Written assurance to City that all Activities funded by the City served to promote the arts in the community. This shall be evidenced by providing the City with a written description of Recipient's marketing or advertising strategy. ounngs or oy u. sales process. (B) For all Activities funded by the City, Recipient must submit to the City a written estimate of the number of Recipient's Arts program attendees that reside outside the territorial limits of the City of Corpus Christi. This may be accomplished by the use of a visitor log, by tallying the number of out-of-town mailing addresses gathered through the ticket (C) An estimate of the total Arts Program attendance. (D) A statement of Recipient's Arts Program revenues and expenditures. H:\LEG-DIR\Lisa\200a Budgefl2000 Hotel Tax Recipient Agmt-Instituo de Cullum Hispanica.tloc Page 3 of 11 VIII. Records Retention. Recipient must at all times during the term of this Agreement, and for three years following the expiration of the Agreement, keep true, accurate, complete, and auditable records. Recipient agrees to: (A) at least annually make periodic reports to the City of its expenditures from the Grant funds given under this agreement; and (B make records of these expenditures available for review to the City. IX. Disbursement of Funds. Recipient understands and agrees that payment by the City of Grant funds under this Agreement is contingent upon Recipient's full compliance with the requirements of this Agreement. Should Director determine within five years from effective date of this Agreement that Recipient has failed to comply with the requirements contained in this Agreement, the Agreement is subject to termination in accordance with Section XVII, listed below, and all Grant funds must be repaid to the City. X. Unexpended funds. Upon termination of this Agreement, Recipient must promptly refund to City any unexpended Grant funds. XI. Advertising. Recipient must recognize the City of Corpus Christi as a contributor on all advertisements and publications regarding Recipient's Arts Program. Recipient must provide Director with a copy of all Recipient-sponsored advertising and promotion materials regarding its Activities. XII. Modifications and Waivers. No provision of this Agreement may be altered, changed, modified, or waived. XIII. Relationship between Parties. Nothing in this Agreement shall constitute a partnership, joint venture, or principal-agent relationship between the parties. XIV. Compliance with Laws. Recipient shall observe and obey all applicable laws, ordinances, regulations and rules of the Federal, State, Country and City governments. This Agreement is subject to applicable provisions of the City Charter and the City Code of Ordinances. XV. Non-discrimination. Recipient shall not discriminate, or permit discrimination against any person or group of persons, as to employment or in the provision of services, activities, 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 Omer manner tnat Is pronloltea oy the laws of the umteo States or the State of Texas. Director retains the right to take action deemed necessary by Director to enforce this non-discrimination covenant. Violation of this provision will result in the immediate termination of this Agreement. XVI. Indemnity. To the extent allowed by Texas law, Recipient hereby fully agrees to indemnify and hold harmless the City of Corpus H:\LEG-DIR\Lisa\2000 Budget\2008 Hotel Tax Recipient Agmt-Instituo tle Cullum Hispanica.doc Page 4 of 11 Christi, its officers, employees, representatives, licensees, and invitees ("indemnitees') against any and all liability, damage, loss, claims, demands, and actions of any nature due to personal injuries including, but not limited to, workers' compensation and death claims, or any property loss or damage of any kind, that arises out of or is in any manner connected with, caused by, either proximately or remotely, wholly or in part, or claimed to have arisen out of, been connected with, or have been caused by, any act or omission, negligence, or misconduct on the part of Indemnitees or Recipient, or Recipient's agents, servants, employees, guests, contractors, patrons, licensees, or invitees participating in or observing Recipient's Activities. Recipient further agrees to indemnify and hold harmless Indemnitees in any situation in which injury or damage results from a violation by the Indemnitees or Recipient, or Recipient's agents, servants, employees, guests, contractors, patrons, licensees, or invitees, of any law, statute, ordinance, or government order of any kind. Further, Recipient will indemnify and hold harmless Indemnitees where injury or damage results or arises out of the exercise or rights or performance of obligations created by this Agreement. These terms of indemnification are effective regardless of whether said injuries or damages result from the sole negligence, contributory negligence, or concurrent negligence of Indemnitees. Recipient must, at its own expense, investigate all claims and demands, attend to their final resolution either by settlement or otherwise, defend all actions with counsel satisfactory to Indemnitees, and pay all costs and expenses related to such actions on account of liability, damage, loss, claims, demands, or actions, including attorney fees. XVII. Termination. (A) The City may terminate this Agreement for any of the following reasons: (1) The City may immediately terminate the violation by Recipient of section XIV or XV this agreement. (2) The City may terminate this Agreement due to failure by the Recipient to substantially perform the Activities described in Exhibit "A". Director has 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 under Section 351.101(a) of the Tax Code. The City may H:\LEG-DIR\Lisa\2dg8 BudgeP2008 Hotel Tex Recipient Agmt-Instiluo de Culture Hispanica.tloc Page 5 of 11 terminate the Agreement upon thirty (30) days written notice, specifying that the Director has determined that Grant funds were used for purposes other than those allowed under Section 351.101(a) of the Tax Code, and require Recipient to reimburse the City all Grant funds award. Should Recipient and Director agree on a modification to the activities specified in Exhibit "A" and execute a written modification in compliance with Section XII of this Agreement, the City will not terminate the Agreement due to Recipient's failure to adhere to the original, superseded contract terms. (3) The City may terminate this Agreement due to Recipient's use of Grant funds to pay for activities other than those qualifying as Eligible Activities under section V of this Agreement. Director has the sole discretion to make the determination that Grant funds were used for activities other than those qualifying as Eligible Activities. The City may terminate the Agreement upon fourteen (14) days written notice, and require Recipient to reimburse the City all Grant funds awarded. (B) Recipient may terminate this Agreement without cause upon thirty (30) days written notice to City. If Recipient chooses to terminate the Agreement, Recipient must repay all Grant funds awarded, whether those funds were expended on Eligible Activities or not. XVIII. Severability. If any term or provision of this Agreement or its application to a person or circumstance is determined to be illegal, unenforceable or invalid, the remainder of this Agreement will not be affected by that illegality, unenforceability, or invalidity. To the extent possible, similar legal, valid, and enforceable terms will automatically be substituted for those that are found to be illegal, invalid, and unenforceable. XIX. Force Majeure. With respect to any duties, obligations, or covenants (but not including the Completion Report required by Section VII) to be performed, or consideration to be provided to either party during the term of this Agreement, the party so obligated shall, in no event, be liable for failure to perform when prevented from doing so by any cause beyond the reasonable control of that party including, without limitation: strike, lockout, breakdown, accident, order or regulation of any governmental authority, failure of supply, inability, by the exercise of reasonable diligence, to obtain supplies, parts or employees necessary to perform services, or because of war, natural disaster, or other emergency. The time when that duty, obligation, or covenant must be ^~~^•.,,~a ^~ ^^^~;~'~~^~;^^ .,, ~°• h° ^revided-vwlt be extended-fer a-peHed-ef-time equivalent to the delay due to the cause beyond the control of the party obligated. XX. Notices. All notices, demands, requests, or replies ("communications") provided for or permitted under this Agreement by either party must be in writing and must be delivered by one of the following methods: (1) personal delivery; (2) deposit with the United States Postal Service via certified or registered mail, return receipt requested, postage prepaid; (3) prepaid telegram; (4) deposit with an overnight express delivery H:\LEG-DIR\Lisa\2008 Budget\2008 Hotel Tax Recipient Agmt-Instituo de Culture Hispanica.doc Page 6 of 11 service, for which service has been prepaid; or (5) fax transmittal. Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or overnight express delivery service in the manner described above will be deemed effective one (1) business day after transmission to the telegraph company or overnight express carrier. Notice by fax will be deemed received upon transmission with proof of delivery to the receiving party. All communications must be made to: If to City: City of Corpus Christi Director, Parks & Recreation P. O. Box 9277 Corpus Christi, TX 78469-9277 (361)880-3461 If to Recipient: Instituto de Cultura Hispanica de Corpus Christi 1617 N. Chaparral Corpus Christi, Texas 78401 Either party may change the address to which notice is sent by providing notice as described above. Recipient must notify City of an address change within thirty (30) 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 of any covenant or condition or breach of any covenant or condition of this Agreement by either party at any time, express or implied, will be taken to constitute a waiver of any subsequent breach of the covenant 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 avail itself of its remedies under this Agreement, including the right to terminate the Agreement on account of breach or default. XXII. Entirety. This Agreement and all exhibits attached constitute the entire and sole agreement between the parties regarding the subject matter described in this Agreement. No other written documents or oral representations will have any force or effect on the subject matter of this Agreement. XXIII. Captions. The captions contained in this Agreement are not a part of this Agreement and do not in any way affect or alter the terms of this Agreement. H:\LEG-DIR\Lisa\2008 8utlget\2008 Hotel Tax Recipient Agmt-Instituo de Cultura Hispaniw.doc Page 7 of 11 XXIV. Assignment. This Agreement may not be, in whole or in part, assigned or transferred directly or indirectly without prior written consent of City. ~E- Exe ted in du licate, each of which will be considered an original, on the ~ day of , 2008. ATTEST: Armando Chapa, City Secretary CITYpF CORPUS CHRISTI L~i/~..~ C' anager APPROVED: ~~`~ 24 , 2008 ~.~/~ y~~~~~ Lisa Aguilar Assistant City Attorney For City Attorney FOR RECIPIENT ~"~ ~~J Name: Title: /~yG2'ti~-~C*m-~ ~~ STATE OF TEXAS COUNTY OF NUECES BP C9UNCIL AUTHURI2E0 This instrument was acknowledged before me on t1o v e„Y,~~ a-~ , 2008, by Do« 3. C->arza-, President, Instituto de Cultura Hispanica de Corpus Christi, a Texas non-profit corporation, qualified as a 501(c)(3) organization under 26 U.S.C. 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USE OF TAX REVENUE. a) Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following: (1) the acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information centers, or both; (2) the furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants; (3) advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity; (4) the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms; (5) historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums: (A) at or in the immediate vicinity of convention center facilities or visitor information centers; or (B) located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates; (6) for a municipality located in a county with a population of one million or less, expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the municipality or its vicinity; and (7) subject to Section 351.1076, the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields, including facilities or fields for baseball, softball, soccer, and flag football, if: (A) the municipality owns the facilities or fields; (B) the municipality: (i) has a population of 80,000 or more and apalatian-af35~000-aHess; a (ii) has a population of at least 65,000 but not more than 70,000 and is located in a county that has a population of 155,000 or less; and (C) the sports facilities and fields have been used, in the preceding calendar year, a combined total of more than 10 times for district, state, regional, or national sports tournaments. H:\LEG-DIR\Lisa\2008 Budget\2008 Hotel Tax Recipient Agmt-Ins6tuo de Culture Hispanica.doc Page 10 of 11 (b) Revenue derived from the tax authorized by this chapter shall be expended in a manner directly enhancing and promoting tourism and the convention and hotel industry as permitted by Subsection (a). That revenue may not be used for the general revenue purposes or general governmental operations of a municipality. (c) The governing body of a municipality by contract may delegate to a person, including another governmental entity or a private organization, the management or supervision of programs and activities funded with revenue from the tax authorized by this chapter. The governing body in writing shall approve in advance the annual budget of the person to which it delegates those functions and shall require the person to make periodic reports to the governing body at least quarterly listing the expenditures made by the person with revenue from the tax authorized by this chapter. The person must maintain revenue provided from the tax authorized by this chapter in a separate account established for that purpose and may not commingle that revenue with any other money. The municipality may not delegate to any person the management or supervision of its convention and visitors programs and activities funded with revenue from the tax authorized by this chapter other than by contract as provided by this subsection. The approval by the governing body of the municipality of the annual budget of the person to whom the governing body delegates those functions creates a fiduciary duty in the person with respect to the revenue provided by the tax authorized by this chapter. (d) A person with whom a municipality contracts under this section to conduct an activity authorized by this section shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person and, on request of the governing body of the municipality or other person, shall make the records available for inspection and review to the governing body or other person. (e) Hotel occupancy tax revenue spent for a purpose authorized by this section may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing expenditures authorized under Section 351.101(a). If a municipal or other public or private entity that conducts an activity authorized under this section conducts other activities that are not authorized under this section, the portion of the total administrative costs of the entity for which hotel occupancy tax revenue may be used may not exceed the portion of those administrative costs actually incurred in conducting the authorized activities. (f) Municipal hotel occupancy tax revenue may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. H:\LEG-SIR\Lisa\2008 Budget\2008 Hotel Tax Recipient Agmt-Instituo de Cultura Hispanica.tloc Page 11 of 11 (g) Nothing in this section shall prohibit any private entity, person, or organization from making subgrants by contract to any other person, entity, or private organization for expenditures under Section 351.101(a)(4). A subgrantee shall: (1) at least annually make periodic reports to the governing body of its expenditures from the tax authorized by this chapter; and (2) make records of these expenditures available for review to the governing body or other person. Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 2, § 14.24(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1110, § 4, eff. Oct. 1, 1989; Acts 1993, 73rd Leg., ch. 680, § 3, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 1027, § 1, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 755, § 1, eff. June 13, 2001; Acts 2001, 77th Leg., ch. 1308, § 3, eff. June 16, 2001; Acts 2003, 78th Leg., ch. 209, § 90, eff. Oct. 1, 2003; Acts 2003, 78th Leg., ch. 303, § 1, eff. June 18, 2003; Acts 2005, 79th Leg., ch. 1247, § 1, eff. June 18, 2005. H:\LEG-DIR\Lisa\2008 Butlgel\2008 Hotel Tax Recipient Agmt-Instituo tle Cullum Hispanica.doc