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<br />26. <br /> <br />CONTRACT FOR TOURISM PROMOTIONAL SERVICES <br /> <br />This contract is dated September 18 ,2001, and is between the City of San Marcos, <br />Texas, a Texas municipal corporation (the "City"), and the San Marcos Area Chamber of Commerce <br />(the "Chamber"). This Contract is entered into under Chapter 351, Texas Tax Code. <br />1. ALLOCATION OF FUNDS <br />A. The City has enacted a hotel occupancy tax on rooms furnished by hotels and motels <br />within the City. The City agrees to allocate funds from the revenue of this tax to the Chamber, <br />operating as the San Marcos Convention and Visitors Bureau, under Texas Tax Code S351.101(c). <br />The allocation of these funds to the Chamber (the "Hotel Tax Funds") is agreed to be 60.714% of <br />the gross amount of all funds collected by the City from the hotel occupancy tax. In addition to these <br />funds, the City may allocate an amount to the Chamber(the "Tourism Product Development Funds") <br />from the City's General Fund, later in the City's 2001-2002 fiscal year, for tourism product <br />development purposes. <br />B. The Chamber shall be entitled to administrative expenses incurred directly in fulfilling <br />its responsibilities under this Contract. These administrative expenses shall not exceed 33.3% of the <br />Hotel Tax Funds received by the Chamber from the City, and shall be used only when costs are <br />incurred directly in the Chamber's tourism promotion activities. <br />C. The Chamber shall maintain the Hotel Tax Funds and any Tourism Product Development <br />Funds provided by the City under this Contract (collectively called the "CVB Funds") each in <br />separate accounts, and the Chamber shall not commingle the funds in those respective accounts with <br />any other money or maintain them in any other account. <br />D. The Chamber shall maintain complete and accurate financial records of each expenditure <br />of the CVB Funds and, at the request of the City Manager or his designee, or of any other person, <br />shall make the records available for inspection and.review during normal business hours. <br />2. USE OF HOTEL TAX FUNDS <br />A. The Chamber shall expend Hotel Tax Funds for general promotional and tourist <br />advertising for the City of San Marcos and conducting a solicitation and operating program to attract <br />visitors and conventions to the City. <br />B. The Chamber shall make these expenditures in conformance with and in proportion to <br /> <br />C:\TEMP\area chamber cvb-l.doc <br /> <br />1 <br />