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HomeMy WebLinkAboutResolution - 2006-R0350 - Agreement To Administer Hotel Tax Funds - Civic Lubbock, Inc. - 07_10_2006Resolution No. 2006-RO350 July10, 2006 Item No. 5.21 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement between the City of Lubbock and Civic Lubbock, Inc., to administer hotel occupancy tax funds for the 2006 Lubbock Music Festival, and related documents. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this loth day of July , 2006. DAVID A. MfLLER, MAYOR ATTEST: Re cca Garza, City Secretary APPROVED AS TO CONTENT: Director of Civic Services APPROVED AS TO FORM: Office Practice Section LLC:dk/.RES-CLl Music Festival Agreement 06 ccdocs/, June 21, 2006 Resolution No. 2006-RO350 July10, 2006 STATE OF TEXAS § Item No. 5.21 COUNTY OF LUBBOCK § AGREEMENT This agreement ("Agreement") effective as of July 10 , 2006 ("Effective Date") is made by and between the City of Lubbock, a Texas home rule municipal corporation ("City"), and Civic Lubbock, Inc., a non-profit Texas corporation ("CLI"), for the purposes and considerations hereinafter expressed. WITNESSETH WHEREAS, CLI has agreed in the License Agreement with the City of Lubbock dated September 21, 2005, to create an Entertainment Task Force Standing Sub -Committee whose responsibilities involve the development, organization, coordination and funding of events that would take advantage of the various talent and venues associated with the City of Lubbock's entertainment industry while working collectively with entertainment entities throughout the region that would have a positive impact on tourism within the City; and WHEREAS, Sections 351.002 and 351.003 V.T.C.A Tax Code authorize the City to impose by ordinance a hotel occupancy tax which may not exceed seven percent of the consideration paid by hotel occupants for a hotel room; and WHEREAS, Section 351.101 V.T.C.A. Tax Code authorizes revenue from the municipal hotel occupancy tax to be used only to promote tourism and the convention and hotel industry; and WHEREAS, the City Council finds that the 2006 Lubbock Music Festival will promote tourism and the convention and hotel industry; and WHEREAS, the CLI Entertainment Task Force Standing Sub -Committee will oversee and coordinate the 2006 Lubbock Music Festival; and WHEREAS, the City of Lubbock FY 2005-06 Budget was amended January 31, 2006, by Ordinance No. 2005-00008, to appropriate and designate ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS AND NO CENTS ($175,000.00) from Hotel/Motel Tax Fund Balance for the Lubbock Music Festival; and WHEREAS, there is EIGHTEEN THOUSAND ONE HUNDRED EIGHTY EIGHT DOLLARS AND THREE CENTS ($18,188.03) remaining from the City of Lubbock allocation for the Lubbock Music Festival from FY 2004-2005; NOW THEREFORE, City and CLI for and in consideration of the terms and conditions set forth in the Agreement hereby agree as follows: 1. The term of this Agreement commences on the Effective Date and continues without interruption until July 9, 2007. 2. In the event that CLI breaches any term and/or provision of this Agreement, City shall be entitled to terminate this Agreement immediately. 3. CLI shall submit to City, for advance approval, any portion of its annual budget utilizing municipal hotel occupancy tax funds. 4. The City hereby agrees to pay to CLI the sum ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS AND NO CENTS ($175,000.00) plus EIGHTEEN THOUSAND ONE HUNDRED EIGHTY EIGHT DOLLARS AND THREE CENTS ($18,188.03) for a total of ONE HUNDRED NINETY Music Festival Agreement — City/Civic Lubbock, Inc. 2 THREE THOUSAND, ONE HUNDRED EIGHTY EIGHT DOLLARS AND THREE CENTS ($193,188.03) (the "Funds") to be paid upon the execution of the Agreement by both parties. 5. CLI agrees that said Funds shall be used for the 2006 Lubbock Music Festival or future Lubbock Music Festivals and that CLI's Entertainment Task Force Standing Sub -Committee will oversee and coordinate the expenditure of these Funds. 6. The payment provided by City shall be deposited pending disbursement in an interest bearing account at a federal insured depository of CLI's choosing. Only the principal shall be expended for the festival. The interest accumulated in CLI's account or any proceeds realized by CLI from the 2006 Lubbock Music Festival shall be reported to the City at the end of the term of this Agreement (but retained by CLI for the funding of future music festivals). 7. All Funds shall be spent in conformity, and CLI shall comply with all laws and provisions of Chapter 351 of the Texas Tax Code. 8. CLI shall maintain the Funds provided by the City in a separate account established for that purpose and may not commingle those Funds with any other money or maintain it in any other account. CLI shall maintain records that are necessary to substantiate the Funds expended. CLI shall, upon request and during normal business hours, provide access to its corporate books and records to the City. The cost of all audits deemed necessary by City shall be the responsibility of CLI (which may be paid from the Funds). Music Festival Agreement — City/Civic Lubbock, Inc. 3 9. CLI shall make quarterly reports to the City Secretary with regard to such expenditures made by CLI and detailing how these Funds were expended. This report shall include a list of each scheduled activity, program or event that is directly funded by the Funds provided herein or has its administrative costs funded in whole or in part by such Funds, and is directly enhancing and promoting tourism and the convention and hotel industries. 10. CLI shall indemnify and save harmless the City and its officers, agents, and employees from all suits, actions, losses, damages, claims, or liability of any character, type, or description, including, without limiting the generality of the foregoing all expenses of litigation, court costs, and attorney's fees for injury or death to any person, or injury to any property, received or sustained by any person or persons or property, arising out of, or occasioned by the acts of CLI, its agents or employees, in the execution or performance, or omissions of performance, of or under the Agreement. EXECUTED this loth day of 2006. CITY OF LUBBOCK CNI LUBBOCK, DAVID A. MILLER, MAYOR D. Wurrayensley�—) Title: President ATTEST: Re ecca Garza, City Secretary ATTEST: Genie Jeter, Sectiary Music Festival Agreement — City/Civic Lubbock, Inc. 4 APPROVED AS TO CONTENT: Freddy Ch z 612 Civic Services Director APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section RKC/kr CLL City Ag—mem —Music Fcmivel 2006 J_ 21, 2006 Music Festival Agreement — City/Civic Lubbock, Inc.