Res 2006-168 - Laserfiche WebLink

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I I I CONTRACT FOR TOURISM PROMOTIONAL SERVICES This contract is effective October 1, 2006, 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 the San Marcos Convention and Visitor Bureau program, under Texas Tax Code I 351.101(c). The allocation of these funds to the Chamber (the "CVB Funds") is agreed to be 45% of the gross amount of revenues collected under the City's current 7% hotel occupancy tax. The City will make quarterly payments ofthis allocation to the Chamber, with each payment being made by the 15th ofthe month following each deadline for the City's receipt of quarterly hotel tax payments. The City has budgeted $554,621 in its 2006-07 fiscal year to be paid to the Chamber from hotel occupancy tax revenues, and the City and the Chamber agree that the total of all payments made by the City to the Chamber under this Contract will not exceed this amount, except as provided in Section I.B below. B. The City and the Chamber recognize that City hotel occupancy tax revenues may exceed the amount originally budgeted by the City for fiscal year 2006-07. If that is the case upon completion of revenue collections for the fiscal year, the City will notify the Chamber and provide a calculation of 45% of the amount by which the City's actual revenues exceeded the budgeted revenue amount for fiscal year 2006-07 (the "Additional City Funds"). The amount ofthe Additional City Funds will not, however, exceed $55,462. The Chamber Board of Directors (the "Chamber Board"), upon recommendation of the City's Convention and Visitor Bureau Advisory Board (the "CVB Advisory Board"), may amend the budget described in Section 2.B below to provide for the use ofthe Additional City Funds for supplementary tourism promotional activities. Ifthe budget is so amended, the City will pay the Additional City Funds to the Chamber. C. The Chamber shall be entitled to administrative expenses incurred directly in fulfilling its responsibilities under this Contract. These administrative expenses shall be used only when costs are incurred directly in the Chamber's tourism promotion activities. D. The Chamber shall maintain the CVB Funds provided by the City under this Contract (the 1