Loading...
R-2012-008-2012-01-09 RESOLUTION NO. R2012 -8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A DESTINATION MARKETING AGREEMENT WITH THE PEARLAND CHAMBER OF COMMERCE; AUTHORIZING A METHOD OF SELECTION OF AN EMPLOYEE TO OVERSEE THE DESTINATION MARKETING PROGRAM; AND PROVIDING GUIDANCE ON THE CREATION OF A BOARD TO MANAGE OR PROVIDE RECOMMENDATIONS REGARDING THE PROGRAMS AND ACTIVITIES OF THE CITY'S HOTEL OCCUPANCY TAX FUND. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Destination Marketing Agreement by and between the City of Pearland and the Pearland Chamber of Commerce, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest a Destination Marketing Agreement with the Pearland Chamber of Commerce. PASSED, APPROVED and ADOPTED this the 9 day of January A.D., 2012. ),ry) TOM REID MAYOR ATTEST: Y( NG o iR IN , , / -Mr, _� `�►'` ; 3,< Y SE' RETARY AT ROVED AS TO FQ-RM: t �C DARRIN M. COKER CITY ATTORNEY EXHIBIT "A" Resolution No. R2012 - 08 DESTINATION MARKETING AGREEMENT This agreement is made by and between the City of Pearland, Texas, municipal corporation of Brazoria County, Texas (hereinafter "City ") and the Pearland Chamber of Commerce, (hereinafter "Chamber "). I. The City by authority of powers granted to it under state statutes and its homerule charter, has previously enacted a hotel occupancy tax on occupants of hotels within the City of Pearland, Texas. II. As part of its obligation and discretionary powers under state statues (primarily V.A.T.S. Tax Code, Section 351.1 01) to use hotel occupancy tax funds for attracting and promoting tourism and the convention and hotel industry, the city hereby agrees to employ the Chamber to advertise and promote tourism, and the convention and hotel industry of the City under the terms and conditions set forth herein. The Chamber agrees that any occupancy tax funds paid to it by the City shall be used only in the following specific areas: 1) The furnishing of facilities, personnel, exhibits and materials for the purpose of attracting visitors, meetings, groups and other events; 2) Development of marketing, advertising, solicitation and promotional programs to attract meetings, groups, conventions and visitors to the municipality; 3) Coordination of marketing, advertising, solicitation and promotional programs with appropriate City departments, hotels /motels, restaurants, entertainment facilities and other business to ensure a productive and pleasant experience for visitors to the City; and III. The Chamber agrees to conduct a continuing program of advertising and promotion for the purpose of attracting visitors, tourist, and conventions to the city by publishing and distributing brochures and community information packets, by advertising in various tourist publications and general media publications which are appropriate, by participating with state and regional agencies in tourist development programs of benefit Page 1 to the City, and by using all appropriate means to increase the traveling public's awareness of the resort and recreational advantages of the City. The Chamber further agrees that it will seek to achieve the purposes of the statute for the City through all of the above activities, that it will distribute visitor literature to Texas Travel Information Centers, Intercontinental and Hobby Airports and other locations. The Chamber shall advertise the City in various tourist publications and other general publication, and participate with state and regional agencies such as the Texas Department of Commerce, Texas Association of Convention and Visitor's Bureaus, Texas Travel Industry Association, Greater Houston Partnership, the Economic Development Alliance of Brazoria County, The Alliance Port Houston Region, Brazoria County Council of Chambers to ensure continued and expanded favorable publicity about the City. IV. It is expressly understood and agreed by and between the parties that the Chamber is hired and engaged as an independent contractor and is not an officer, agent, or employee of the City. The Chamber shall have exclusive control of its operations hereunder, and the persons performing same, and shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors, the doctrine of respondent superior shall not apply as between City and Chamber, its officers, agents, employees, contractors and subcontractors and nothing herein shall be constructed as creating a joint enterprise between City and Chamber. V. The Chamber shall secure sufficient numbers of employees to accomplish this Agreement. The Chamber shall further provide such office space, equipment, supplies and other material necessary to accomplish the purposes of the Agreement. VI. The Chamber shall carry out the responsibilities required by this agreement in accordance with the budget attached to this agreement as Exhibit "A". It is understood and agreed by and between the parties that, upon budget approval by the City, a fiduciary duty is created in the Chamber with respect to the expenditure of revenue provided. Thereafter, the Chamber shall provide the City Council periodic reports on a quarterly basis, on the activities that are conducted to benefit the City as well as an annual Page 2 financial statement listing the expenditures made from revenue from the occupancy tax. It is further agreed by the Chamber that it shall maintain said revenue in a separate account established for that purpose, and that it shall not commingle that revenue with any other money or maintain it in any other account. The Chamber shall maintain complete and accurate financial records of each expenditure of occupancy tax revenue and, upon request of the City Council, City Manager or his authorized representative, shall make the records available for inspection and review. VII. The Agreement shall be effective the 9th day of January, 2012, and shall continue in force for a period of nine (9) months or unless either the City or Chamber terminate the agreement by providing the other party 90 days prior written notice in the manner provided herein. Upon termination of this contract for any reason, the Chamber shall deliver to the City all funds remaining on hand, if any, after payment of all obligations incurred prior to notice of termination of this Agreement. VIII. Any expenditure of funds in a manner other than as approved in the budget shall require an amendment to the budget to be submitted to and approved by the City prior to the expenditure. IX. The activities of the Chamber with respect to this contract will be governed by the City Council of the City of Pearland until a decision on approving a Hotel Occupancy Tax Board. X. Any notice necessary or appropriate relative to this Agreement shall be effective when deposited in the United States mails, certified mail, postage prepaid and addressed to the City Manager, City of Pearland, City Hall, 3519 Liberty Dr., Pearland, Texas, 77581, or to the Pearland Chamber of Commerce, 6117 Broadway, Pearland, Texas, 77581, or such other address as either party may designate in writing to the other party. Page 3 XI. No part of this Agreement may be assigned or delegated without the prior written consent of the other party, and any attempted assignment of benefits or rights or delegation of duties or obligation shall be a breach of this Agreement. However, nothing in this Agreement shall prohibit the Chamber from participating with local, regional, or state tourism or to contract for joint promotion with other agencies. XII. The Chamber agrees to indemnify, save harmless and defend the City from any and all claims, causes of action and damages of every kind arising from the operations of the Pearland Chamber of Commerce, its officers, agents and employees carried out in furtherance of this agreement. The Chamber owns no automobiles, and any use of an automobile in the operation embraced by this Agreement shall be by the Chamber as an independent contractor, and not as an agent or employee of the City. XIII. This Agreement shall be subject to the laws of the State of Texas. IN WITNESS WHEREOF, the parties have executed this agreement by their duly authorized officers on this 20 day of January, 2012. CITY OF PEARLAND, TEXAS By: 4/ Bill 'isen, am ity Manager ATTEST: Secry dAfpi? QE ARt,q;O,, O' Z . Ii PEAR 3 ► AMBER OF COMMERCE e,,,okute46,,b o ,,'Carbone Chairman of the Board Carol Artz- Buce, sident /CEO Page 4 Proposed 2012 Destination Marketing Budget Approved Proposed 9 month 2010 -2011 2011 -2012 2012 ADMINISTRATION Insurance - Disability 959.87 959.87 719.90 Insurance - Health 9,371.63 9,371.63 7,028.72 Insurance - Workers Comp 382.00 382.00 286.50 Payroll Auto Allowance 2,099.92 2,099.92 1,574.94 Paychex Expense 836.14 836.14 627.11 Payroll Taxes 8,422.09 8,422.09 6,316.57 Retirement Plan 3,608.14 3,608.14 2,706.11 Salaries and Wages 22,418.30 22,418.30 16,813.73 Total ADMINISTRATION 48,098.09 48,098.09 36,073.57 Advertising Advertising Payroll 10,070.30 10,070.30 7,552.73 Meeting Planners 15,588.00 15,588.00 11,691.00 On -Line 28,726.44 28,726.44 21,544.83 Tourism (Print) 6,902.00 6,902.00 5,176.50 Total ADVERTISING 61,286.74 61,286.74 45,965.06 Communications Advertising & Sponsorships 510.00 510.00 382.50 Magazines & Maps 460.00 460.00 345.00 Newsletter 2,700.00 2,700.00 2,025.00 Total COMMUNICATIONS 3,670.00 3,670.00 2,752.50 Convention Sales & Service Convention Sales & Service Payroll 26,738.08 26,738.08 20,053.56 Sales Calls/Visits /Bids 9,000.00 9,000.00 6,750.00 Convention /Event Servicing 10,000.00 10,000.00 7,500.00 Sports Marketing /Bid Fees 10,000.00 10,000.00 7,500.00 Trade & Travel Shows 5,000.00 5,000.00 3,750.00 Total CONVENTION SALES & SERVICE 60,738.08 60,738.08 45,553.56 Dues, Fees & Subscriptions Texas Hotel & Lodging Association Dues 7,000.00 7,000.00 5,250.00 Professional Organization Dues 1,500.00 1,500.00 1,125.00 Public Relations 600.00 600.00 450.00 Total DUES, FEES & SUBSCRIPTIONS 9,100.00 9,100.00 6,825.00 OPERATIONS Auto Rental 400.00 400.00 300.00 Computer 1,000.00 1,000.00 750.00 Dues, Fees & Subscriptions 950.00 950.00 712.50 Equipment /Furniture _ Page 5 Copier Lease 1,050.00 _ 9 month 2010 -2011 2011 -2012 2012 Copies 500.00 1,550.00 1,162.50 Legal & Accounting Payroll 25,114.14 25,114.14 18,835.61 Postage 363.26 363.26 272.45 Repairs & Maintenance Lawn Maintenance 1,112.96 1,112.96 834.72 Office Cleaning 3,654.00 3,654.00 2,740.50 Pest Control 419.96 419.96 314.97 Security Services 515.00 515.00 386.25 Supplies Office Supplies 1,000.00 1,000.00 750.00 Supplies Kitchen 250.00 250.00 187.50 Telephone Land Line 1,394.44 1,394.44 1,045.83 Mobile 2,528.57 2,528.57 1,896.43 Satellite Service 434.07 434.07 325.55 Utilities Electricity 4,293.45 4,293.45 3,220.09 Water 462.28 462.28 346.71 Total OPERATIONS 45,442.13 45,442.13 34,081.60 PROFESSIONAL DEVELOPMENT PROFESSIONAL DEVELOPMENT -BOARD Board MeetingslRetreat 300.00 300.00 225.00 Staff Training 7,000.00 7,000.00 5,250.00 Total PROFESSIONAL DEVELOPMENT 7,300.00 7,300.00 5,475.00 Visitor Center Visitor Center Payroll 13,964.96 13,964.96 10,473.72 Visitor Center Services 5,500.00 5,500.00 4,125.00 Collateral Materials Brochure Printing 10,000.00 10,000.00 7,500.00 Brochure Development 3,000.00 3,000.00 2,250.00 Total VISITOR CENTER EXPENSES 32,464.96 32,464.96 24,348.72 Total Marketing Budget 268,100.00 268,100.00 201,075.00 Page 6 INTERVIEW PROCESS FOR CANDIDATE Upon approval of the contract and budget, Chamber Staff will take the lead to find candidates for the position. Resumes will be evaluated on prior experience. Qualified candidates will be tested for characteristics, aptitude, and ability. Top candidates will be interviewed by the following: Proposed Interview Team for Final Candidates — Carol Artz-Bucek, President/CEO Pearland Chamber of Commerce Bill Eisen, City Manager Rushi Patel, Hampton Inn and Member of Advisory Board and 2011 Task Force Team Alpesh, Candlewood Suites and 2011 Task Force Team Member Keith Ordeneaux, Pearland ISD and Member of Advisory Board and 2011 Task Force Team Michelle Smith, Pearland Parks/Recreation and Member of Advisory Board and 2011 Task Force Team Matt Buchanan, Pearland Economic Development Corporation and Member of 2011 Task Force Team Final candidates selected by the Interview Team will be invited to a social event with the 2011 Task Force Team and other Council members who wish to attend. Proposed date to select a candidate is in the First Quarter of 2012. Page 7 2011 Hotel Occupancy Tax (HOT) Task Force Team DION MC GINNIS - FACILITATOR 1 Scott Sherman Councilmember Sherman City 2 Susan Sherrouse Councilmember Sherrouse City 3 Bill Eisen City Manager City 4 Michelle Smith Parks/Rec City 5 Matt Buchanan PEDC PEDC 6 Carol Artz-Bucek President Chamber 7 Russ Wilkins Chairman Chamber 8 Alan Mueller Past-Chairman Chamber 9 Jim Johnson Membership Development Chamber 10 Gary W Bucek SBDC Advisory 11 KeithOrdeneaux Pearland ISD Advisory 12 Rushi Patel Hampton Inn Advisory/Hotel 13 Alpesh Shukla Candlewood Suites Hotel 14 Gary Shepherd Courtyard Marriott Hotel 15 Yasmin Walji Hilton Garden Inn Hotel Page 8 . a NGHIEM V.DOAN DARRIN M.COKER DEPUTY CITY ATTORNEY CITY ATTORNEY TELEPHONE(281)652-1665 TELEPHONE(281)652-1678 LAWRENCE G.PROVINS ASSISTANT CITY ATTORNEY II JENIFER K.SMITH TELEPHONE(281)652-1666 LEGAL SECRETARY TELEPHONE(281)652-1664 KATIE A.LEININGER TELECOPIER(281)652-1679 ASSISTANT CITY ATTORNEY I TELEPHONE(281)997-5918 PRIVILEGED AND CONFIDENTIAL ATTORNEY-CLIENT COMMUNICATIONS TO: BILL EISEN, CITY MANAGER FROM: DARRIN M. COKER, CITY ATTORNEY DATE: JANUARY 4, 2012 SUBJECT: HOT TAX GOVERNANCE It is my understanding that the City Council has considered the appointment of a City board to manage and supervise the programs and activities of the Hotel Occupancy Tax Fund ("Tax"). I recently reviewed Section 351.101 of the Texas Tax Code ("Code"), which governs the use of the Tax and how the funds are administered to determine whether or not such a board was authorized by the Code. Specifically, the Code allows a governing body, by contract,to delegate to a person, another governmental entity or a private organization, the management and supervision of programs and activities funded with the Tax. As a result, the City could not simply appoint a City board to administer the Tax because such a board would not have contracting authority. In other words, the City does not have the ability to contract with itself. The City could create a private organization, in the form of a 501 (c) 3, or utilize an existing organization, that could contract with the City to oversee the expenditures of the Tax. In the alternative, the City Council could appoint an advisory board that would make recommendations on expenditures of the Tax, and the City Council would retain fmal authority with respect to expenditures of the Tax. Regardless of the direction selected, this issue represents a policy question for the City Council to consider, and in light of the aforementioned information it might be helpful to seek clarification on this issue before proceeding.