Res 2004-163 - Laserfiche WebLink

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I I I 103. CONTRACT FOR TOURISM PROMOTIONAL SERVICES This contract is dated September _, 2004, 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, Texas Tax Code. 1. 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 from the revenue of this tax to the Chamber, operating as the San Marcos Convention and Visitors Bureau, under Texas Tax Code ~351.101(c). The allocation of these funds to the Chamber (the "CVB Funds") is agreed to be 56% ofthe gross amount of all funds collected by the City from the hotel occupancy tax. B. The Chamber shall be entitled to administrative expenses incurred directly in fulfilling its responsibilities under this Contract. These administrative expenses shall not exceed 33.3% ofthe CVB Funds received by the Chamber from the City, and shall be used only when costs are incurred directly in the Chamber's tourism promotion activities. C. The Chamber shall maintain the CVB Funds provided by the City under this Contract (the "CVB Funds") in a separate account, and the Chamber shall not commingle the funds in that account with any other money, or maintain them in any other account. D. The Chamber shall maintain complete and accurate financial records of each expenditure of the CVB Funds and, at the request of the City Manager or his designee, or of any other person, shall make the records available for inspection and review during normal business hours. 2. USE OF CVB FUNDS A. The Chamber shall expend CVB Funds for general promotional and tourist advertising for the City of San Marcos and conducting a solicitation and operating program to attract visitors and conventions to the City. B. The Chamber shall make these expenditures in conformance with and in proportion to the Convention and Visitors Bureau budget for 2004-2005 which is marked Exhibit A and attached to this Contract for all intents and purposes as though fully set out herein. The Chamber acknowledges that the City's approval of this budget creates a fiduciary duty in the Chamber with respect to the CVB Funds provided by the City to the Chamber under this Contract. All expenditures of CVB Funds shall be subject to monitoring by the City's Convention and Visitors Bureau Board (the "CVB 1