Res 2011-111 - Laserfiche WebLink

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CONTRACT FOR TOURISM PROMOTIONAL SERVICES This contract (the "Contract ") is effective October 1, 2011, and is between the City of San Marcos, Texas, a Texas municipal corporation (the "City "), and the San Marcos Area Chamber of Commerce (the "Chamber "). This Contract is entered into under Chapter 351 of the Texas Tax Code. I. ALLOCATION OF FUNDS A. The City has enacted a hotel occupancy tax on rooms furnished by hotels and motels within the City. The City agrees to allocate funds in the amount of $940,082.00 from the revenue of this tax (the "CVB Funds ") to the Chamber, operating the San Marcos Convention and Visitor Bureau program, under Texas Tax Code §351.101(c). The Chamber agrees that the total of all payments made by the City to the Chamber under this Contract will not exceed this amount. As of the writing of this Contract, the parties are negotiating the terms and conditions of an agreement under Chapter 172 of the Texas Local Government Code pursuant to which the City, through its risk pool, may provide health insurance to certain authorized individuals employed by the Chamber. Such an agreement will reduce the Chamber's expenses for employee health insurance coverage currently incorporated in its budget. If the parties execute an agreement under Chapter 172 of the Texas Local Government Code during the term of this Contract, the Chamber agrees that the amount of the CVB Funds shall be reduced by the amount of the savings realized as a result of such agreement. B. On the first Friday of each month, the City will pay to the Chamber, monthly, 1/12 of the allocation of the CVB Funds. The CVB Funds allocated by the City may be applied toward administrative expenses incurred directly in fulfilling its responsibilities under this Contract. These administrative expenses shall be covered under this paragraph only when the 1