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HomeMy WebLinkAbout08-10 RESOLUTIONRESOLUTION N0.08-10 A RESOLUTION TO APPROVE AN 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 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. 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 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 this 5° day of January, 2010. APPROVED: ATTEST: By: SONDRA E SMITH, City Cler rg�surer R1VTR�''�,, o°GAF. .. GAS Y p .SGP :.-o: : Shelly Turberville Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements j-5-2Zo/o City Council Meeting Date Agenda Items Only Accounting Division Action Required: Finance Department To renew the contract with the Advertising and Promotion Commission. 2008 Revenues 43,429.04 Cost of this request 1010.0001.4400.00 Account Number Project Number Category / Project Budget Program Category / Project Name Funds Used to Date Program / Project Category Name Remaining Balance Fund Name Budgeted Item x Budget Adjustment Attached 'po,1 Q - (L.1 --- Department Director 19.•x2-1,011 Date 12-z2 -vu City Atto ney Date Q Finance and Internal Services Director Chief of St May 11.13-2m9 Date Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in Mayor's Office D 2z Comments: Revised January 15, 2009 rattail THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS • TDD (Telecommunications Device for the Deaf) www.accessfayetteville.org (479) 521-1316 TO: Lioneld Jordan, Mayor FROM: Shelly Turberville, Accounting Managet�fi > THRU: Paul Becker, Finance Director Q 0 • DATE: December 21, 2009 RE• Renew Agreement with A&P Commission to collect its 1% HMR tax The existing Agreement with the A&P Commission is up for renewal. The last Agreement was signed February 7, 2006. This Agreement covered a two year time period and automatically renewed for an additional two years unless either party notified the other in writing prior to the expiration of the agreement. The City of Fayetteville's agreement with the A&P commission was established to compensate the City of Fayetteville for the collection and reporting of the HMR taxes. The City of Fayetteville received a total of 543,429.04 in 2008 for the 2% collection fee stated in the agreement. The City of Fayetteville needs to have a new agreement by February 7, 2010. 113 WEST MOUNTAIN 72701 479-575-8281 479-575-8273 RESOLUTION NO. A RESOLUTION TO APPROVE AN 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 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. 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 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 this 5`h day of January, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E SMITH, City Clerk/Treasurer AGREEMENT This Agreement, made and entered into this 5th day of January, 2010, 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 writing 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. Invoice 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"; E Disburse funds to Bond Trustees for debt service on outstanding bonds supported by the A&P Commission's portion of the 1-IMR 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 15th 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 CITY OF ADVERTISING & PROMOTION FAYETTEVILLE, COMMISSION ARKANSAS By: By: TIM FREEMAN, Chairman LIONELD JORDAN, Mayor Attest: Attest: By: By: Marilyn Heffner, Executive Director Sondra E. Smith, City Clerk/Treasurer • 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 AGREEMENT This Agreement, made and entered into this 5th day of January, 2010, 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 writing 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 conceming the HMR tax; b. Receive tax reports and remittances form the tax remitters; c. Check tax reports for accuracy and timely reporting; d. Invoice 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"; f. 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 15th 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 CITY OF ADVERTISING & PROMOTION FAYETTEVILLE, COMMISSION ARKANSAS By: By: TIM FREEMAN, Chairman LIONELD JORDAN, Mayor Attest: Attest: By: By: -- - Marilyn Heffner, Ekecutrve Director - - Sondra E. Smith, City Clerk/Treasurer 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 estabhshment 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. A. 10 A 8 P Commission Page 4 of 6 AGREEMENT This Agreement, made and entered into this 5th day of January, 2010, 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 writing 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. Invoice 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"; f. 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 15th 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. A. 10 A & P Commission Page 5 of 6 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 B Attest: By: atilt ,jut ei- Ei By: /Mei -, Man n Hei er Execu a Director Sondra E. Smith, City Clerk/Treasurer ``��G� RK/TR s,; .ham: on'op.G�f. ;U; At t E :FAYEITEVILLE: el:17E MNS> a J °'a;N��GTONC°�''�` Attest. CITY OF FAYETTEVILLE, ARKANSAS NEL JT RDAN, Mayor A. 10 A & P Commission Page 6 of 6 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.