Agenda

Back to Calendar Return

23.

City Council Regular Meeting

Meeting Date:

12/05/2023

BACKGROUND

The City of Schertz (“the City”) has been in a Publicity & Tourism agreement with The Chamber since October 1, 2014. This initial agreement was for five years and expired September 30, 2019. The City then entered into its current agreement on September 11, 2019 which expires September 30, 2024. In this agreement the City pays The Chamber to (1) Produce the annual Visitor’s Guide/Business Directory; (2) Maintain Schertz business listing maintenance (to include C of O entry throughout the year and business listing maintenance); and, (3) Provide personnel to ensure operation of the Visitors Center (the City pays a portion of two Chamber staff people). The funding for this agreement has come from the City’s Hotel Occupancy Tax (“HOT”) Funds.

However, because of the 2023 Texas Legislative session and S.B. 1420 – Hotel Occupancy Tax, there are strict guidelines of how HOT funds can be used. Section 3 of the Bill specifically states that “a municipality may not use municipal hotel occupancy tax revenue for a visitor information center under Subsection (a)(1) to acquire a site for, construct, improve, enlarge, equip, repair, staff, operate, or maintain any part of a building or facility that is not primarily used to distribute or disseminate tourism-related information to tourists.” As The Chamber utilizes their staff people to do Chamber business, in addition to the work for the Visitor’s Guide/Business Directory, and after consultation with legal, there is an issue with the current agreement that needs to be addressed.

Staff worked with The Chamber President to find a resolution for the problem. The solution was to terminate the existing agreement (provide 30 days written notice, in accordance with what is laid out in the agreement) and enter into a new service agreement. The termination notice was sent November 28, 2023 and the agreement between the parties will be terminated effective December 31, 2023.

The new service agreement will be a contract with The Chamber to produce an annual Visitor Guide/Business Directory solely. It will go into effect January 1, 2024 and remain in effect through December 31, 2024. It will have the option to be renewed for two additional terms of one year each. The Guide will continue to be produced as it has been in its current form. Doing this will ensure that the City can use HOT Funds for this project, while abiding by State Law. The Visitor’s Center will still remain as it has been – the City just won’t supplement pay and The Chamber will absorb that cost. Chamber staff that are located there will continue to answer phones, interact with community residents and those seeking Schertz information and provide guides, relocation packets and other area media information.