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HomeMy WebLinkAbout240-25 RESOLUTIONPage 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 240-25 File Number: 2025-1994 A RESOLUTION TO APPROVE A FIVE-YEAR AGREEMENT WITH THE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION TO FURNISH COLLECTION AND ACCOUNTING SERVICES FOR THE HOTEL, MOTEL, AND RESTAURANT TAXES COLLECTED FOR THE A & P COMMISSION FOR A FEE OF 2% OF SUCH COLLECTIONS WITH AN AUTOMATIC RENEWAL FOR AN ADDITIONAL FIVE-YEAR TERM WHEREAS, the City of Fayetteville has long collected the Hotel, Motel and Restaurant tax for the A & P Commission for a fee of 2% of such collections and it is time to renew that agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves and authorizes Mayor Rawn to sign the attached Agreement with the Fayetteville Advertising and Promotion Commission to furnish collection and accounting services for the Hotel, Motel and Restaurant taxes for 2% of the amount collected. PASSED and APPROVED on October 21, 2025 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2025-1994 MEETING OF OCTOBER 21, 2025 TO: Mayor Rawn and City Council THRU: Steven Dotson, Chief Financial Officer FROM: Kristin Cavette, Accouting Director SUBJECT: Agreement with A&P Commission to collect their 1% of the Hotel, Motel, and Restaurant Tax RECOMMENDATION: Renew contract with Advertising and Promotion Commission. BACKGROUND: This agreement will be for a five-year term from the date of the agreement. Upon completion of the initial term, the agreement will automatically renew for an additional five-year term unless either party notifies the other party in writing prior to the expiration date of the initial term. DISCUSSION: The City of Fayetteville's agreement with the A&P Commission was established to assist the A&P Commission collect Hotel, Motel, and Restaurant taxes due and to compensate the City of Fayetteville for the collection and reporting of the HMR taxes. The City of Fayetteville received a total of $105,000 in 2024 for the 2% collection fee stated in the agreement. BUDGET/STAFF IMPACT: Collection fees for the calendar year of 2024 were $105,000 ATTACHMENTS: 3. Agreement 9.30.25 Signed by A&P Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-1994 A RESOLUTION TO APPROVE A FIVE-YEAR AGREEMENT WITH THE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION TO FURNISH COLLECTION AND ACCOUNTING SERVICES FOR THE HOTEL, MOTEL, AND RESTAURANT TAXES COLLECTED FOR THE A & P COMMISSION FOR A FEE OF 2% OF SUCH COLLECTIONS WITH AN AUTOMATIC RENEWAL FOR AN ADDITIONAL FIVE-YEAR TERM WHEREAS, the City of Fayetteville has long collected the Hotel, Motel and Restaurant tax for the A & P Commission for a fee of 2% of such collections and it is time to renew that agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves and authorizes Mayor Rawn to sign the attached Agreement with the Fayetteville Advertising and Promotion Commission to furnish collection and accounting services for the Hotel, Motel and Restaurant taxes for 2% of the amount collected. 21 October 3. The City of Fayetteville and the Fayetteville Advertising and Promotion Commission agree to work collaboratively to develop necessary rules and regulations to implement Sections 35.26 and 35.27 of the Code of Fayetteville. 4. Neither party may assign any of its rights or obligations under this agreement, without the express written consent of the other. 5. The parties agree and understand that this Agreement is exclusive of any and all other agreements, and that it in no way alters, amends.or abridges any rights, obligations or duties of the parties contained in such agreements. 6. A waiver by either party of any of the terms or conditions herein shall be limited to that particular instance, and shall not be construed as a general waiver of any other breaches by either party. 7. This Agreement constitutes the entire understanding of the parties, and no modification or variation of the terms of this agreement shall be valid unless made in writing and signed by the duly authorized agents of the City and the A&P Commission. IN WITNESS WHEREOF, the City of Fayetteville and the Fayetteville Advertising and Promotion Commission have executed this Agreement on or as of the date first written above. FAYETTEVILLE CITY OF FAYETTEVILLE, ADVERTISING & PROMOTION ARKANSAS COMMISSION By: Elvis mot) hairp on Witness: LOU Molly Rawn, Mayor Attest: EnE�`�A PM: Uiza" A�1-sF=� B4HNCIioN'`J�` Y: Ryan I)auck, Chief Executive Officer Kara Paxton, City Clerk Treasurer Exhibit "A" HMR COLLECTION PROCEDURES ACCOUNTING DIVISION At the end of each month, after balancing collections with General Ledger accounts: I. Analyze listing of payments received for the year to determine which establishments are delinquent. 2. Prepare a list of all establishments that are delinquent. If an establishment has had to be prosecuted within the last two years, immediately refer to the City Prosecutor. Indicate on the list if the delinquent establishment also has an alcoholic beverage permit. If an establishment has a private club or an on premises consumption permit, also indicate if they are delinquent in their supplement beverage tax payments. 3. Send notices to all establishments that are delinquent in their HMR remittances. This notice shall advise each establishment of the date (21 days after notice mailed) delinquent taxes must be paid to avoid referring the case to the City Prosecutor. 4. If delinquent taxes are not paid by the stated date, refer the case to the City Prosecutor's Office. CITY PROSECUTOR'S OFFICE 5. Upon receipt of the delinquent HMR file, the City Prosecutor may send a letter/notice that charges will be filed unless delinquent taxes are paid within thirty (or fewer) days. The City Prosecutor shall be authorized to commence prosecution anytime after thirty days from the initial delinquency discovered by the Accounting Department.