Convention & Tourism Promotion
CONVENTION AND TOURISM PROMOTION
PROGRAM AGREEMENT
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This Convention and Tourism Promotion Program Agreement is made as of the1'3 day
of November, 2005, by and between the City of Salina (the "City") and the Salina Area Chamber
of Commerce ("Chamber").
RECIT ALS
A. On September 25, 1977, the City enacted a resolution levying a tax upon hotel
and motel transient guests within the city ("Transient Guest Tax") effective October 1, 1977.
B. Since the advent of the Transient Guest Tax the proceeds therefrom have been
used for the promotion, solicitation, encouragement and development of tourism and conventions
for the City of Salina.
C. The City and Chamber first executed an agreement dated December 19, 1977,
which was later amended as of October 23, 1985, whereby the City, as authorized by Kansas
law, contracted with Chamber to provide programs for the promotion of conventions and tourism
funded with Transient Guest Tax proceeds.
D. The City, for purposes of this Agreement, acknowledges that the current Transient
Guest Tax rate is five percent (5%).
E. The City and Chamber desire to restate their agreement concerning the
Conventions and Tourism Promotion Program and the funding of those programs with Transient
Guest Tax proceeds and program income.
NOW, THEREFORE, in consideration of the reciprocal covenants stated herein, the City
and Chamber hereby agree as follows:
1. Convention and Tourism Promotion Program. The City engages and retains
Chamber to manage and operate a Conventions and Tourism Promotion Program ("Program")
and to render the services hereinafter contemplated. Chamber agrees to accept such engagement
and to discharge its duties in accordance with the terms and conditions stated in this Agreement.
2. Relationship of the Parties. Chamber is engaged and retained as an independent
contractor and not as an officer, agent, or employee of the City.
3. Purpose of Convention and Tourism Promotion Program. The Program to be
provided by Chamber shall encourage, promote and solicit tourism and conventions for the City
of Salina.
4. Program Recommendations. The City has appointed a Convention and Tourism
Committee which shall recommend to Chamber programs of service for funds received from the
Transient Guest Tax and appropriate consideration shall be given by Chamber to such
recommendations in carrying out this agreement.
5. Chamber Staffing. Chamber shall maintain a ConventionsNisitors Division of
Chamber which shall be directed by Chamber staff who shall devote their time primarily to
implementation of the Program.
6. Program Budget. By June 30 each year, Chamber shall submit to the City Clerk a
proposed operating budget for the Program ("Program Budget") for the next calendar year.
a. Projected Income. The Program Budget shall reflect expected revenue
generated from the Transient Guest Tax ("Tax Proceeds") and, including without
limitation, proceeds from the sale of program sponsorships and advertising, cash
donations for certain events, and projected income from fees and activities ("Program
Income").
b. Projected Expenditures. The Program Budget also shall include projected
expenditures to be made by Chamber for Program implementation. In addition, the
Program Budget may include a reasonable pro-rata share of the Chamber's administration
overhead expenses expended by the Chamber to administer the Program, including
without limitation, salaries, office space, equipment, supplies, event reserves, and
utilities.
The City shall then acknowledge receipt of the Program Budget at the first regular meeting
thereafter. The City shall then review the Program Budget and advise the Chamber of its
response and any proposed changes no less than nine (9) days prior to the adoption of the City
budget. The Chamber shall then return a final version of the Program Budget to the City so that
it can be a component part of the City's overall budget as approved by the City during mid-
August each year.
7. Disbursements of Funds. To partially fund the Program, as per the Program
Budget, the City shall, within 30 days of receipt from the Kansas Department of Revenue, make
disbursements to Chamber equal to sixty percent (60%) of the Transient Guest Tax distributions
received by the City. This allocation shall be limited to the those Transient Guest Tax
proceeds derived from the current five percent (5%) tax rate and shall not apply to any increment
of increase in the Transient Guest Tax which may be levied by the City in excess of the current
five percent (5%) tax rate.
8. Preservation of Balances. Chamber shall preserve any year-end Tax Proceeds or
Program Income balances for future Program funding only.
9. Program Performance Reporting. At a mutually determined regular meeting of
the City's governing body during the City's review of the Program Budget, Chamber shall
provide a report and presentation regarding Program accomplishments for the prior year and
Program objectives and strategies for the upcoming year.
10. Accounting. Inspection of Books and Records. Chamber shall separately account
for the receipt and disbursement of Transient Guest Tax proceeds received pursuant to this
agreement in compliance with K.S.A. 12-16,113. The City Manager, or his designated
representative may, upon reasonable notice to Chamber, inspect all books and records of
Chamber involving its use of Transient Guest Tax funds received under this Agreement. In
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addition, Chamber shall supply a copy of its annual audit, in duplicate, to the City Manager's
office.
11. Term of Agreement. The initial term of this Agreement shall be from January 1,
2006, through December 31, 2006, and shall continue for consecutive one year terms until
terminated by either party as stated in this Agreement. The parties understand and agree that
either party may terminate this Agreement by giving to the other party written notice of
termination no less than 90 days before December 31 of any year.
12. Default. If either party fails to comply with any term of this Agreement within 30
days after written notice to so comply has been mailed by the non-defaulting party to the
defaulting party, such failure shall be deemed as an immediate breach of this Agreement. In
such case, the non-defaulting party may pursue against the defaulting party such remedies as
provided by law or in equity, including without limitation, the right to specifically enforce this
Agreement. In addition, the non-defaulting party may recover its costs and reasonable attorneys'
fees incurred in any action related to such breach.
13. Authority and Consents. Each party represents and warrants to the other that each
has the right, power, legal capacity, and authority to enter into this Agreement, and to perform its
obligations under this Agreement, and no approvals or consents of any other persons are
necessary in connection with it. The execution and delivery of this Agreement has been duly
authorized by all necessary corporate action on behalf of each party. This Agreement has been
duly and validly executed and delivered by each party to the other, and constitutes the legal, valid
and binding agreement of each party and is enforceable in accordance with its terms.
14. Entire Agreement. This Agreement constitutes the entire agreement of the parties
relating to the subject matter hereof, and no agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by the parties that
are not expressly set forth in this Agreement. This Agreement may be modified or amended only
by a separate writing signed by the parties.
15. Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be contrary to law, the remaining provisions of this Agreement shall remain in full
force and effect.
16.
Kansas.
Governing Law. This Agreement shall be governed by the laws of the State of
City of Salina, Kansas f)' "
By: -/limP- ~
Name: Deborah Divine, Mayor
Salina ~
By: ....
. Gerald Cook, resIdent
:~:est ~
Lieu Ann Elsey, CMC, Cit Clerk
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