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Home My WebLink About21-06 RESOLUTION-15 • RESOLUTION NO. 21-06 A RESOLUTION TO APPROVE AN AGREEMENT WITH THE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION TO COLLECT AND ACCOUNT FOR THE 1% A&P COMMISSION HOTEL, MOTEL, AND RESTAURANT TAX 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 the Agreement with the Fayetteville Advertising and Promotion Commission to collect and account for the Advertising and Promotion Commission's 1% Hotel, Motel and Restaurant Tax (attached as Exhibit 1). PASSED and APPROVED this 7th day of February, 2006. ATTEST: By: .`'' \,e.14:1•1R S.L.,,%ec,SYO\G • P• FS =U• • -PS ;FAYETfEVILLE; r. %"9s' l:kANS.Itc3 ie SONDRA SMITH, City Clerk By: APPROVED: DAN COODY, Mayor it AGREEMENT This Agreement, made and entered into this 74.L day of /6ruary 2006, by and between the City of Fayetteville, Arkansas, a municipal corporation, and the Fayetteville Advertising and Promotion (A&P) Commission. WITNESSETH, IN CONSIDERATION of mutual promises of the parties contained herein and other good and valuable consideration, the parties agree as follows: 1. This agreement shall remain in full force and effect for an initial term of two years from the above date. Upon completion of the initial term, this agreement will automatically be renewed for an additional two year term unless either party notifies the other party in wntmg prior to the expiration of the initial term that no renewal is desired. 2 The A&P Commission agrees to pay 2% of the A&P portion of the Hotel, Motel, Restaurant (HMR) taxes collected by the City in consideration of the following duties and obligations to be performed by the City a. Provide reporting forms and handle all communications with the tax remitters concerning the HMR tax; b. Receive tax reports and remittances form the tax remitters; c. Check tax reports for accuracy and timely reporting; d. Invoke tax remitters for underpaid taxes and/or penalties and interest if applicable; e. Perform collection efforts in accordance with established procedures as described in Exhibit "A"; £ Disburse funds to Bond Trustees for debt service on outstanding bonds supported by the A&P Commission's portion of the HMR taxes; g. Provide a monthly accounting of all revenues collected for the previous month and remit the collections less the bond payments and collection fees to the A&P Commission by the 156 of the month; h Invest funds not needed for immediate expenditures as part of the City's pooled investments and allocate interest on the basis of percentage of ownership in the pool. 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 Advertising and Promotion Commission have executed this Agreement on or as of the date first written above. FAYETTEVILLE ADVERTISING & PROMOTION COMMISSION By: Attest: By: PlaiLider...) Ate;tettO By: CITY OF FAYETTEVILLE, KANSAS DAN COO 1 ayor Attest: By: Sondra Srp4t '4kyt1erk e Cn Ec). •'3❑ :FAYETTEVILLE• F. ..,GTO , 'N iiia�• Exhibit "A" HMR COLLECTION PROCEDURES ACCOUNTING DIVISION At the end of each month, after balancing collections with General Ledger accounts: 1. 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. Prosecutions should commence within sixty or fewer days from the initial delinquency discovered by the Accounting Department. CITY ATTORNEY AGENDA REQUEST FOR: COUNCIL MEETING OF February 7, 2006 FROM: KIT WILLIAMS, CITY ATTORNEY ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A Resolution To Approve An Agreement With The Fayetteville Advertising And Promotion Commission To Collect And Account For The 1% A&P Commission Hotel, Motel, And Restaurant Tax APPROVED FOR AGENDA: Steve Davis, Finance & Internal Services Director /- zy-o6 Date Date / /ado 4 Date FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE ,QHS 0217 /44 0)1-ola 46pth nwsYn ImE J% TAX LEGAL DEPARTMENT TO: Dan Coody, Mayor City Council Steve Davis, Finance & Internal Services Director FROM: Kit Williams, City AttorneyC_- DATE: January 24, 2006 RE. Agreement with A&P Commission to collect its 1% HMR tax It has come to my attention that the existing Agreement with the A&P Commission needs to be renewed and the collection procedures reviewed and shortened. Accordingly, I have drafted a new Agreement largely mirroring the one passed in 2002, but changing the Collection Procedures to dramatically shorten the time a restaurant owner may go without paying the HMR taxes collected from customers to the City. I hope that new procedures (which still will normally include warning letters from both the Accounting Division and City Prosecutor) will mean prosecutions of non-paying owners will begin within 60 days rather than the 120 days or longer periods in the past With a shorter period, repayment of past due HMR taxes will be more feasible since the delinquent HMR tax total will not have grown so large. • City of Fayetteville A& P Commission Agreement Appendix A HMR Collection Procedures At the end of each month, after balancing collections with General Ledger accounts: • Analyze listing of payments received for the year to determine which establishments are delinquent. Send letters to all establishments that are two months or more delinquent in their HMR remittances. A second notice is sent at three months. Prepare a list of all establishments that are four months or more delinquent. 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. A notice is sent advising establishment of the date delinquent taxes must be paid to avoid formal collection efforts. Discuss the list with the Accounting Coordinator to determine the next step to be taken to collect the delinquent taxes. For establishments that do not have an alcoholic beverage permit, the Prosecuting Attorney may be contacted about filing charges. For establishments that have an alcoholic beverage permit, either the Prosecuting Attomey or the Alcoholic Beverage Control may be contacted to request their assistance. RESOLUTION NO. A RESOLUTION TO APPROVE AN AGREEMENT WITH THE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION TO COLLECT AND ACCOUNT FOR THE 1% A&P COMMISSION HOTEL, MOTEL, AND RESTAURANT TAX 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 the Agreement with the Fayetteville Advertising and Promotion Commission to collect and account for the Advertising and Promotion Commission's 1% Hotel, Motel and Restaurant Tax (attached as Exhibit 1) PASSED and APPROVED this 7th day of February, 2006. ATTEST: By: SONDRA SMITH, City Clerk By: APPROVED: DRAFT DAN COODY, Mayor Clarice Pearman - Res21-06 Page 1 From: Clarice Pearman To: Williams, Kit Date: 2/8/06 5:57PM Subject: Res21-06 Kit, The Council approved an agreement with the A&P Commission at Tuesday meeting. The backup did not have a signed agreement to attach as Ex. A. Please see that I get a signed agreement to continue processing the resolution. Thanks. Clarice CC: Smith, Sondra • • Clarice Pearman - Re: Res21-06 Page 1 • From: Clarice Pearman To: Williams, Kit Date: 2/10/06 8:47AM Subject: Re: Res21-06 Thanks, I'll make a note. »> Kit Williams 02/09/06 5:03 PM »> I have sent this agreement to the A&P which meets next Monday. Kit Williams, Fayetteville City Attorney (479)575-8313 FAX (479) 575-8315 113 West Mountain Fayetteville, AR 72701 »> Clarice Pearman 02/08/06 5:57 PM »> Kit, The Council approved an agreement with the A&P Commission at Tuesday meeting. The backup did not have a signed agreement to attach as Ex. A. Please see that I get a signed agreement to continue processing the resolution. Thanks. Clarice • Clarice Pearman - A&P Commission Page J From: Clarice Pearman To: Williams, Kit Date: 2/21/06 5:03PM Subject: A&P Commission Kit, Just a reminder that I am waiting for the signed agreement with the A&P Commission to finish processing the resolution passed February 7, 2006. Thanks. Clarice CC: Smith, Sondra • ; e6ed eipuog 'yips :33 aoueI3 -sNueyl '900Z 'L kenigad passed uogn osai ay; 6ussaowd ys!uy 01 uo!ss!wwo3 d2v ay; 48nn luawaaJ6e pau6is ay; J04 6ug!em we 1 ley; Japu!wai e;sn0 11)1 uo!ss!wwo3 d'9V :;aafgng Wd£0'990/1Z3 :ma 11)1 'sweip!M :ol uewiead aoue13 :wad uoissiwwo3 d2V - ueuweed aoue13 VClarice Pearman - A&P Commission Page 1 From: To: Date: Subject: Clarice Pearman mheifner@twncenter.com• Williams, Kit 3.21.06 2:33PM A&P Commission Kit, Marilyn: Attached is a copy of the A&P Commission agreement and the resolution passed by the City Council February 7, 2006. Thanks. Clarice CC: Bell, Peggy; Deaton, Vicki Clarice Pearman - A&P Commission Page 1 j From: To: Date: Subject: Clarice Pearman mheifner@twncenter.com Williams, Kit 3.21.06 2:33PM A&P Commission Kit, Marilyn: Attached is a copy of the A&P Commission agreement and the resolution passed by the City Council February 7, 2006. Thanks. Clarice CC: Bell, Peggy; Deaton, Vicki