HomeMy WebLinkAboutC2015-336 - 7/21/2015 - Approved AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND
CORPUS CHRISTI CONVENTION AND VISITORS BUREAU FOR USE OF THE
CONVENTION EVENTS FUND
(HOTEL OCCUPANCY TAX REVENUE
RECIPIENT AGREEMENT)
This Hotel Occupancy Tax Revenue Recipient Agreement ("Agreement") is made 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 the Corpus Christi Convention
and Visitors Bureau, ("Recipient").
Whereas, City desires to encourage conventions and events that promote the convention and
hotel industry within the City of Corpus Christi, in accordance with Chapter 351 of the Texas Tax
Code;
Whereas, the City has included in its annual budget hotel occupancy tax funding for the
Convention Events fund ("the Fund");
Whereas, the parties desired to use the Fund to reimburse expenses for those conventions and
events that serve to promote tourism and the convention and hotel industry within the City of
Corpus Christi;
Now, therefore, City and Recipient agree as follows:
I. Purpose. The City desires to utilize funds from the City's Convention Events Fund in the City
FY 2014-2015 operating budget to reimburse Recipient for expenses authorized by the Texas
Tax Code Section 351.101 (a) (3)for the events and uses listed on Exhibit A, which is attached
and incorporated for all purposes. The requested amounts of reimbursement out of the Fund for
Fiscal Year 2014-2015 are also provided on Exhibit A.
II. Term. This Agreement commences on the date of execution by the City and terminates on
September 30, 2015. This Agreement may be extended for additional one-year terms by written
agreement of the City Manager and Recipient to provide reimbursement for additional Eligible
Activities up to the amount approved in the City's annual budget for the Convention Center
Incentives fund. The continuation of this Agreement beyond the current City fiscal year is
subject to the City's annual budget process and annual appropriation of funds.
III. City's Duties. For the Initial Term, subject to Recipient's compliance with the terms and
conditions of this Agreement and annual appropriation of funds, City agrees to reimburse
Recipient out of the Convention Events Fund up to each amount listed on Exhibit A under the
"CEF Requested" column, for each specific event listed on Exhibit A.
IV. Recipient's Duties- Eligible Activities. Requests for reimbursement of funds by Recipient
are limited to those activities that, without exception, meet all of the following requirements,
herein referred to as "Eligible Activities":
(A) advertising, conducting solicitations and promotional programs in accordance with
Section 351.101(a)(3) of the Texas Tax Code to attract tourists and convention delegates or
registrants to the municipality or its vicinity; and
20153310
7/21/15
Res.030549
Convention & Visitors Bureau
(B) the funds will be used to promote both tourism and the convention and hotel industry
within the City of Corpus Christi in accordance with Section 351.101(a) of the Texas Tax
Code; and
(C) the activities and approved uses of the funds reimbursed under this Agreement are
described on the attached and incorporated Exhibit A.
V. 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.
VI. Annual Report. Recipient must submit to the City's Assistant City Manager of General
Government & Operations Support ("ACM") an annual report ("Report"), no later than thirty (30)
days following the end of each fiscal year. The ACM, or his designee, shall review this Report
to verify whether the funding provided to Recipient was spent in accordance with the
requirements in this Agreement. The Report must include the following criteria in addition to
verification documentation requested by the ACM: Recipient must submit to the City a written
estimate of the number of attendees that reside outside the territorial limits of the City of Corpus
Christi that attended the conventions/events identified on the Exhibit A.
VII. Records Retention. Recipient must at all times during the term of this Agreement, and for
four (4) years following the expiration of the Agreement, keep true, accurate, complete, and
auditable records. Recipient agrees to make records of these expenditures available for review
on request of the ACM or designee.
VIII. Disbursement of Funds. Recipient understands and agrees that payment by the City of
funds under this Agreement is contingent upon Recipient's full compliance with the
requirements of this Agreement and Recipient's submittal of reimbursement request
documentation. Recipient understands and agrees that disbursement of these funds under this
Agreement creates a fiduciary duty in the Recipient. Should the ACM determine within four (4)
years from effective date of this Agreement that Recipient has failed to comply with the
requirements contained in this Agreement, all funds must be repaid to the City.
IX. Unexpended funds. Upon termination of this Agreement, the City has no obligation to
reimburse Recipient any amounts.
X. Termination for non-appropriation of funds. The continuation of this Agreement beyond
the current fiscal year is subject to the City's annual budget process. If sufficient funds are not
appropriated to continue the agreement in the upcoming fiscal year, then this agreement shall
be terminated upon notice to Recipient.
XI. Advertising. Recipient must recognize the City of Corpus Christi as a contributor on all
advertisements and publications regarding Recipient's Eligible Activities. Recipient must
provide ACM with a copy of all Recipient-sponsored advertising and promotion materials
regarding its Eligible 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 comply with all applicable laws,
ordinances, regulations and rules of the Federal, State, Country and City governments, in
particular the provisions of Texas Tax Code Chapter 351 governing use of hotel occupancy tax,
a copy of which is attached as Exhibit B. 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 other manner that is prohibited by
the laws of the United States or the State of Texas. ACM retains the right to take action
deemed necessary by ACM to enforce this non-discrimination covenant. Violation of this
provision will result in the immediate termination of this Agreement.
XVI. Indemnity. Recipient hereby fully agrees to indemnify and hold
harmless the City of Corpus 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 Eligible 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 upon fourteen (14) days written notice for
any of the following reasons and require Recipient to reimburse the City all funds
awarded under this Agreement:
(1) Any violation by Recipient of section XIV or XV of this agreement.
(2) If the ACM has determined that funds were used for purposes other than
those allowed under Section 351.101(a)(3) of the Tax Code, and require
Recipient to reimburse the City all funds award.
(3) Due to Recipient's use of funds to pay for activities other than those qualifying
as Eligible Activities under section IV of this Agreement. ACM has the sole
discretion to make the determination that funds were used for activities other
than those qualifying as Eligible Activities.
(4) Recipient's failure to cure any default of any provision of this Agreement after
notice and 30 days opportunity to cure.
(B) Recipient may terminate this Agreement without cause upon fourteen (14) days
written notice to City. If Recipient chooses to terminate the Agreement, Recipient must
repay all 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. 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. 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. All communications must
be made to:
If to City:
City of Corpus Christi
Assistant City Manager for General Government & Operations Support
P. O. Box 9277
Corpus Christi, TX 78469-9277
If to Recipient:
Corpus Christi Convention and Visitors Bureau
101 N. Shoreline Blvd., Ste. 430
Corpus Christi, TX 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.
XX. 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.
XXI. 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.
XXI. 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.
XXII. 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
3011-J
day of , 2015.
CITY OF CORPUSC HRIS
-yam,
Ronald L. Olson, Manager
e EST: 12.11_
APPROVED: v vl , 2015 REBECCA HUERTA
CITY SECRETARY
44-7
Lisa AguilAssistant City Attorney
For City A orney
A (HUKI t►
n canal Z 15
c prw•-,ARV
CORPUS CHRISTI CONVENTION AND VISITORS BUREAU
Name: "iw-11-14-- le--ILL- Q_>
Title: CL cTh
Date: ri LOWS_
CV13 • C11- Financial Commitment Information
DEFINITE
FISCAL YEAR OCT 2014 - SEPT 2015
NAME OF CONVENTION
Delegates
N ber of Room
Nights
Peak Total
Commit-
ment
Made
(Mo/Yrj
Convention
Date
(Mo/Yr)
CVB
CEF
(Requested)
Economic hnpact
CEF Fund
Usage
Off -set Cony.
Corpus Christi BikeFest 15,000
2,050
5,000
1/2014
10/2014
$64,316
$16,950
$5,437,500
Ctr. cost
CC Challenge (Bal due Dec. for 2014 event) 4,000
750
2,000
4/2012
11/2014
$70,000
$1,450,000
Off -set Cony.
Texas Farm Bureau 800
500
1,305
10/2013
12/2014
$5,000
$290,000
Ctr. cost
Off -set Conv.
Ctr. & Trans.
SkiIIsUSA 5.000
1,300
3,800
8/2010
3/2015
$12,500
$1,812,500
cost
Off -set Cony.
National Guard Assoc. of Texas 1,500
500
1,382
7/2010
3/2015
$10,500
$543,750
Ctr. cost
Off -set Cony.
Powerlifting 1,000
405
1,010
3/2013
3/2015
$3,500
$362,500
Ctr. cost
Off -set Conv.
FCCLA State Cony. (Type A Funds Arena $25K) 4,000
1,000
2725
10/2009
4/2015
$14,600
$1,450,000
Ctr. cost
Off -set Cony.
VPPPA 2,000
880
3320
8/2012
5/2015
$15,000
$725,000
Ctr. cost
Off -set Cony.
Ctr. &Trans.
United Methodist Church 1,300
650
2,030
7/2007
6/2015
55,000
$471,250
cost
Off -set Cony.
AWBD (ABC Est. $24K) 1,500
960
3,000
9/2013
6/2015
$9,550
$14,450
$543,750
Ctr. cost
Off -set Cony.
Texas Shrine Association 3,000
850
3,000
3/2013
6/2015
$10,000
$1,087,500
Ctr cost
Off -set Cony.
Texas FFA (Type A Funds Arena $25K) 7,500
2,100
7,530
9/2009 -
7/2015
$12,500
$1,359,375
Ctr. cost
CC Challenge (1" Pmt. Due 8/15 for '15 Event) 4,000
750
2,000
4/2012
11/2015
$70,000
$1,450,000
Total
$73,866
$260,000
$16,983,125
V 118IHX3
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 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
(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.
(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.