Loading...
HomeMy WebLinkAboutC2009-318 - 7/28/2009 - ApprovedPage 1 of 11 AGREEMENT BETWEEN THE CITY aF CGRPUS CHRISTI AND Art Center of Corpus Christi ~"RECIPIENT"y ~HGTEL GCCUPANCY TAX REVENUE RECIPIENT AGREEMENT} The State of Texas KNOW ALL BY THESE PRESENTS: County of Nueces 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 Art Center of Corpus Christi ~"Recipient"}, a 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 30 OD0.00 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 Carpus 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 hatel 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 Arks 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 nonprofit, community-oriented organizations, specifically those programs that pramote the arts and in doing so also promote tourism and the convention and hotel industry within the City of Corpus Christi. II. Term. This agreement commences on the August 1, 2009 and terminates on the July 31, 2010. III. City's Duties. City agrees tv pay Recipient $30,000.00 out of revenue from the City of Corpus Christi's Hotel Occupancy Tax fund for use in accordance with Section IV below. In no event will City be liable for an amount in excess of this grant amount. 2009-318 Urd. 028252 ~nts12009 Wotel Tax Recipient Agmt- Art Center.doc ~ ~~ o~iZS~o9 Art Center of CC Page 2 of 11 IV. Recipient's Duties. inconsideration for receipt of Grant funds, Recipient agrees to perform those activities described in the attached and incorporated Exhibit "A". This performance 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 forfunding 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 Ac#ivities. 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 X30}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 al! 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. ~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 billings or by listing the out-of-town mailing addresses gathered through the ticket sales process. (C) An estimate of the total Arts Program attendance. (D) A statement of Recipient's Arts Program revenues and expenditures. H:ILEG-DIRIJeannielLisaIN4T Agreements12~09 Hotel Tax Recipient Agmt-Art Center.doc 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 recards 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 Directorwith a copy of all Recipient-sponsored advertising and promotion materials regarding its Activities. XII. lVlodificationssnd 1Naivers. 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 Grdinances. XV. Non-discrimination. Recipient shall not discriminate, or permit discrimination a ainst an erson or rou of persons, as to employment or in the provision of g yp 9 p 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 an other manner that is prohibited by the laws of the United States or the State of Y 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. X~II~ lndemnit . T,o tie extent allowed by Texas law, Recipient hereby Y full a tees to r'ndemnif and hold ~arrnless the City of Corpus Y9 Y H:1LEG-DiRlJeannielLisalHOT Agreements12fla9 Hotel Tax Recipient Agmt- Art Center.tloc 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 /ndemnitees 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 /ndemnitees in any situation in which injury or damage results from a violation by the /ndemnitees 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 /ndemnitees 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 lndemnifees. 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 /ndemnitees, and pay all costs and expenses re/afed fo 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 Agreement due to any violation by Recipient of section Xl1~ or XV of 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 351.1o1~a} of the Tax Code. The City may H:1LEG-DIR1JeannielLisalH4T Agreements12~Q9 Hotel Tax Recipient Agmt- Art Center.doc Page 5 of 11 terminate the Agreement upon thirty X30} days written notice, specifying that the Director has determined that Grantfunds 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 Xll 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 X14}days written notice, and require Recipient to reimburse the City all Grantfunds awarded. ~B} Recipient may terminate this Agreement without cause upon thirty X30}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. XVlli. 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 ofthis 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. Xtx. Force Majeure. with respect to any duties, obligations, or covenants (but not including the Completion Report required by Section Ull) 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 ar regulation of ar~y 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, yr other emergency. The time when that duty, obligation, or covenant must be performed or consideration must be provided will be extended far a period of 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 estates Postal Service via certified or registered mail, return receipt requested, postage prepaid; ~3}prepaid telegram; ~4} deposit with an overnight express delivery H:1~EG-DtRlJeannielLisalHOT Agreements12oD9 Hotel Tax Recipient Agmt- Ar# Center.d~c 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 927 Corpus Christi, TX 18469-9217 X361 } 880-3461 If to Recipient: Art Center of Corpus Christi ~ 00 Shoreline Drive Coraus Christi, Texas 1840 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 430} days after Recipient's address has changed. xxl. 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 art at any time, express or implied, will be taken to constitute a waiver of any p Y 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. xxll. Entirety. This Agreement and all exhibits attached constitute the entire and sale 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 an the subject matter of this Agreement. xxlll. 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:1LEG-DIRI~eanniell.isalHOT Agreements12a09 Hatel Tax Recipient Agmt-Art Center.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. -- Executed in duplicate, each of which will be considered an original, on the day of , 2009. ATTEST: CITY F CORPUS CHRISTI Armando Chapa, City S retary g R. Escobar, City Manager APPROVED: ~J ~ 8 , 2009 a .~ri Lisa Aguila Assistant City Attorney For City Attorney s f UTNORE~E1~ ~tFtFNrnnr,. !l ~~ r V~1•~W .* r r rrMNlrw r~#~MI~ ~! ~R ^^~MiyM RI.11/~w~l S~CRFTARY FOR IPIEN President STATE of TEXAS COUNTY of NUECES T is instru nt was acknowledged before me on ~P_I~t'YI~Ot~I'~ ~~ , 2009, by ~i, ,President, Art Center of Corpu Christi, a Texas non-profit corporation, qualified as a 501(c)(3) organization under 26 U.S.C. Section 501(c)(3), on b alf of the cor ation. otary ublic, State exas ~n L~~ D~ Printed Na e Commission Expires ~ ~ ~ • 2O1 '`~"'"''~~ ASHLEY L. DUGG~R Notary pu~iic ' State 4f Texas ,~`''~~~-„i~,u~~~~`, My Camm~ssin~ expires act, 8, ~~t~ H:1LEG-DIRIJeanniell_isa1HQT Agreements12~a9 Hotel Tax Recipient Agmt- Art Center.dac Page 8 of 11 EXHIBITA Description of Recipient's Activities H:IL~G-D1R1JeannielLisalHOT Agreements120a9 Hotel Tax Recipient Agmt-Art Center.doc ooao RT o00 CEN~TE ~ ~ OF CORPUS CHR S 00 SHORELINE DR VE, CORPUS CHRISTI, TEXAS 7840 t 36 84 06 March ~o Zoo9 Eddie Houlihan ~ ~ o Assistant Budget Director ~ ~ ~ City of Corpus Christi ~ ~ P ~ Box 92?7 ~ ~. ~ ~ a Corpus Christi, TX 78469-9277 ~ ~" :cv ~. . Dear Mr. Houlihan: ~ ,.,~ ,~ ° m Enclosed is a grant application packet submitted on behalf of The Art Center ~of Corpus Christi, Inc. We are very grateful for the city's past support: and hope you will continue our current level of assistance of $3Q,040 for the next fiscal year. Please consider these factors when considering our request: It is estimated that as many as one hundred and f fty thousand individuals annually tour The Art Center. Tourists from all over the country and Europe recognize The Art Center is a great attraction. V~inter Texans return year after year to participate in our classes and workshops while they are in town. ~flne has been coming for 19 years and is responsible for encouraging other Winter Texans to come to our area.} Art Center membership continues to grow every month and we are now serving over 800 artist members and fourteen local art organizations. Education programs are expanding, f lling niches and unmet needs throughout the community. We are proud to host bus loads of children from surrounding areas and eager to introduce them to the art scene, because we believe even if they do not go vn to an art related career, learning to see beyond the surface of things as artists do, will make them better engineers, doctors, lawyers, or whatever profession they eventually gravitate tv. ~n the other end of the age spectrum, we do a lot for senior citizens in our area, many of whom say, "I've always wanted to try my hand at something creative, but was `too busy earning a living', or `raising a family.' " . The Art Center continues to maintain and improve this important city asset. We successfully raised $744,000 for improvements in 1994; $3,640,000 in 2003; and have just crossed the finish line of a two year fund raising undertaking whereby we raised $303.,600 for expanding our Clay Studio, replacing two aging air conditioners & rerouting our duct system in an effort to reduce our utility bills, purchasing a new gas kiln for the clay studio and needed computer equipment, as well as providing additional funds to help our curriculum development program. QPEAATEC BY THE ART COMMUNITY CENTEA 0~ CORPt15 CHAt5Tt, INC , A NDN•IaRQF1T OAGANIZATiQN No other facility in the Coastal Bend has embraced The Art Center's mission of supporting and encouraging local artists while enriching the creative life of our community while at the same time providing a great attraction for tourists--with no entrance fee charged. The center is open to everyone. we are acutely awaxe of the fact, clue to die cluwrituri~ ;~~ ll~e ec;u~~u~~~y, il~C ~;ty a~ wCll ds everyone else, is going to be facing some tough budget decisions this coming year. Foundations will have less to donate, and as the mayor of Philadelphia notes in the attached clipping from a recent Caller-Times, when the budget ax swings arts and cultural organizations are the first to go. But the Philadelphia mayor believes, as I hope you and our council will, "arts are key to generating revenue and strengthening the community." x hope you will take time to read the whole article because l could not say it better myself. In addition to being an art center, we consider ourselves almost a second tourist bureau. People can frequently be found at the front desk where a map is spread out and a volunteer or staff person is saying, "You're here and you want to go here." Our people have been known to go out of their way to transport visitors to other places of interest they are wishing to visit. .. even so far as taking one couple across the bridge to the Aquarium. By the way, as a result of that act of kindness, we received a letter from that out of state couple touting the great courtesy of the people in Corpus Christi and enclosing a donation for The Art Center. It has long been known that new businesses considering locating in Corpus Christi check out the cultural life available here. It is a critical consideration for executives and their families as they contemplate locating anywhere, and we feel, in Corpus Christi, The Art Center is playing a big role in that regard. Our budget for ?,009 remains approximately the same as.that of 2008. This is going to be very dii~icult in light of the fact we lost two months revenue from the restaurant while there was a change in operators, and also in light of the fact that staff has not had a raise in four years. V~e're committed to keeping the doors open, but do sincerely need the city' s continuing support at the current level. Thank you for giving all of this consideration. if further information would be helpful, please contact me: 8$4-6406 or 992.6531. Sincerely, . ~~ , . r s Dorothy Kucera, Janie ~loskins, Bob Baker Director of Development President, Governing Bd. Director 1. How wili funding the Art Center enhance, the promotion of tourism and benefit the convenfion and hotel industry in Corpus Christi ? The City of Corpus Christi's support is vital to the Art Center's ability to continue to address the interests of the area's creative people, to be a cultural venue attractive to visitors, and to increase its current advertising and marketing programs. We are one of the few free downtown tourist des#inatians tha# offer a multi layered experience. We offer mui~ple galier~es of art viewing, a popular mid-day restaurant and a unique Art and Gift GallerylShop that carries only member~made art, jewelry and ceramics. It is impossible to look at any page in our guest book and not find folks who are from outside of Corpus Christi. Cur facility hosts a great number of weddings andlor receptions has well as parties and meetings. Cut of town guests regularly participate in these and often stay in our hotels and ea# in our restaurants. The Art Center is a valuable addition to the activities, sight, sounds and experiences that become park of a visitor's memories of Corpus Christi. Description of all services provided during the present fiscal year. The Art Center is a busy place every day of the week -except Mondays when we are closed. We have a regular weekly schedule of studio opportunities that includes ail Painting Patio Gallery on Tuesdays and Thursdays, open Painting Main Workshops on Tuesday, with teacher, and Thursdays," vn your awns. Wednesday Portrait Group meets in the Main Workshop. Collage Class meets on Saturdays. Drawing Class meets on Fridays. Clay classes meet on Thursdays and Saturdays for adul#s and every other Saturday fvr youth. We have started a Saturday class for pre-school kids. Summer, 2049, will see us offering 7 weeks of ART CAMP for ages seven to fourteen. In the area of community outreach, 2008, we worked with the city library system display the Big Read art entries. We displayed Carroll High School's unique Breast Cancer Awareness Art Project artwork. We hosted the City Festival of the Arts in collaboration with the City of Corpus Christi Arts and Cultural Commission. We hosted the exhibit of CCI5D's State of the Arts by~high school and middle school students. fur Gift Gallery organised the first themed art show and sale called "Sellabrate Carpus Christi. We hosted the Sister Cities Art Show as part of a city wide international student art contest. We developed and hosted SUPER B~WI.S FAR CHARITY in collaboration with Metro Ministries and the Downtown Management District. We hosted Bob Burridge, a California artist, in a dive day acrylic workshop and had several 3 day workshops led by our own artists. In February we hosted Texas State Artist, Dalhart Windberg for a three day oil painting workshop. The exhibits in our main galleries change monthly. Art shows also hang in our Hall Gallery and the multi purpose Courtyard Gallery. Regular change of our exhibits gives our members and the public reason to visit often. The Art Center is an attractive and distinctive location for weddings, parties, meetings and other public events. We offer space for groups as small as 10 and as large as 500. We provide inexpensive meeting space to other non-profits and service groups. We are a lunch destination fvr many folks who work in the downtown area. Our new restaurant, Desiree's, by the Bay, also brings groups from across the city into the downtown as they meet for luncheons at the restaurant. A Sunday brunch attracts the after church crowd. Dur restaurant is a happening place! In the year ahead, we intend to continue all the things we are currently involved with. We have a goal of increasing the education and outreach part of our mission. A new staff position of Program Coordinator will focus on growth opportunities for our artists and members and new art experiences for our youth and the community. We hope to continue to draw in out of town visitors with workshops by popular and dynamic teachers. We are still a young and developing addition to the bayfront of Corpus Christi. We shall continue to str'Ne to be seen as an asset the city and tv the people we serve. Page 9 of 11 EXHIBIT B Texas Tax Code § 351.101. 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 forthe 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 ~?} subject to Section 351.1016, 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 orfieids; ~B} the municipality: ~i} has a population of 80,000 or more and is located in a county that has a population of 350,000 or less; or iii} has a population of at least 65,000 but not more than 10,000 and is located in a county that has a populatian 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:1L~G-DlRlJeannielLisalH4T Agreements12D09 Hotel Tax Recipient Agmt- AR Center.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 yr other person, shall make the records available for inspection and review to the governing body or other person. fie} 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 casts 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:ILEG-D1R1JeannielLisalHoT Agreements12009 Hotel Tax Recipient Agmt- Art Center.~oc 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, l1 st Leg., ch. 1110, § 4, eff. act. 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, l7th Leg., ch. 755, § 1, eff. June 13, 2001; Acts 2001, 77th Leg., ch. 1308, § 3, eff. June 16, 2001; Acts 2003, l8th Leg., ch. 209, § 90, eff. act. 1, 2003; Acts 2D03, 78th Leg., ch. 303, § 1, eff. June 18, 20D3; Acts 2005, 79th Leg., ch. 1247, § 1, eff. June 18, 2005. N~1l.EG-~iRlJeannielLisalHQT Agreements12DD9 Flotel Tax Recipient Agm#- Art Center.doc