NOTICE OF SPECIAL JOINT MEETING SEALY CITY COUNCIL AND SEALY ECONOMIC DEVELOPMENT CORPORATION CITY COUNCIL CHAMBERS 415 MAIN STREET SEALY, TX 77474 V SEAL EXAS AHISTURTO ar EXCILLENCE AFUTURED or PROGRESS MONDAY, MARCH 24, 2025 6:00 P.M. Notice is hereby given of a Meeting of the City Council of Sealy and the Sealy Economic Development Corporation to be held on the abovementioned date, time, and location for the purpose of considering the following agenda items. All agenda items are subject to action. The City Council and Sealy EDC Board of Directors reserves the right to meet in a closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, oft the Texas Government Code. A. Call to Order = City of Sealy B. Call to Order = Sealy Economic Development Corporation C. Invocation and Pledges of Allegiance D. Roll Call and Certification of a Quorum of Sealy City Council E. Roll Call and Certification of a Quorum of Sealy Economic Development Corporation F. Petition(s) and Public Comments to address both the Sealy City Council and the Sealy Economic Development Corporation Individuals shall have three (3) minutes to speak. G. Discussion and Possible Action to Approve the agenda order or reorder = City Council H. Discussion and Possible Action to Approve the agenda order or reorder Sealy Economic Development Corporation . Presentation by SEDC Executive Director regarding Convention and Visitor's Bureau Start-Up Plan J. Business 1. Discussion and Possible Action to Approve the 2025 Amendment to the Administrative Services Agreement between the City of Sealy and the Sealy Economic Development Corporation to include the administration of the Convention and Visitor's Bureau by the Sealy EDC and program funding by Hotel Occupancy Tax. a) Vote from the Sealy City Council b) Vote from the Sealy EDC City of Sealy, Texas Council and EDC Joint Meeting Agenda March 24, 2025 2. Discussion and Possible Action to approve a new job description for a Tourism Manager and amendments to the job descriptions for the Sealy EDC Executive Director and the Sealy EDC Deputy Executive Director and/or Secretary. a) Vote from the Sealy City Council b) Vote from the Sealy EDC K. PUBLIC HEARING: Notice of a Public Hearing on Budget Amendment. The City Council for the City of Sealy, Texas, will hold a Public Hearing on amending the 2024-2025 Fiscal Year Budget of the City of Sealy, Texas, to be held on the 24th day of March 2025, at 6:00 p.m. in the City Hall at 415 Main Street. All interested persons shall be given an opportunity to be heard for or against any item or the amount of any item contained in the proposed Budget Amendment. 3. Discussion and Possible Action to amend the City of Sealy's Fiscal Year 2024-2025 Budget. a) Vote from the Sealy City Council only 4. Discussion and Possible Action to Approve an annual lease agreement(s) between the Sealy EDC and Electron Beam Technologies for the purpose of the Sealy EDC. a) Vote from the Sealy City Council b) Vote from the Sealy EDC 5. Discussion and Possible Action to Approve an annual lease agreement between the City of Sealy on behalf of the CVB and Electron Beam Technologies for the purpose of a Convention and Visitor's Bureau. a) Vote from the Sealy City Council only L. Adjourn a) Vote from the Sealy City Council b) Vote from the Sealy EDC CERTIFICATION 1 Sandra Vrablec, City Secretary of the City of Sealy, do hereby certify that the above notice of the City of Sealy, Texas, City Council, was posted in a place convenient to the general public in compliance with Chapter 551, of the Texas Government Code, and remained posted for at least 72 continuous hours preceding the scheduled time of said meeting as well as on required website(s). Clandia - - Vaailoe - Sandra Vrablec, City Secretary 2 I. Presentation(s) J. Business Amendment to Administrative Services Agreement EDC/City of Sealy Item 1 SEALY-EDC> - TEXAS.USA AGENDA ITEM NO: 1 Discussion and possible action to approve the 2025 Amendment to the Administrative Services Agreement between the City of Sealy and Sealy Economic Development Corporation to include the administration of the Convention and Visitor's Bureau by the Sealy EDC and the program funding by Hotel Occupancy Tax. SUBMITTED BY: Sealy EDC Director MEETING DATE: March 25, 2025 STAFF REPORT DESCRIPTION AND ANALYSIS As you know, the Sealy Economic Development Corporation (SEDC) has an Administrative Services Agreement in place with the City of Sealy. It was last updated on June 23, 2020, amending various reimbursements to the City. The amendment being requested tonight is for SEDC to provide for the administration of the Convention and Visitor's Bureau to be funded by Hotel Occupancy Tax (HOT) Funds collected at a rate of seven percent (7%) for every stay in a hotel/motel in Sealy. Pursuant to Texas Tax Code 351.101 and the goals established by the City Council, the EDC, on behalf of the CVB, shall expend HOT Funds for promotional and tourist advertising for the City, continuing solicitation of tourism to attract visitors and conventions to the City. HOT Funds shall be expended in a manner directly enhancing and promoting tourism and the convention and hotel industry of Sealy. This recommendation is in alignment with the EDC's approved Strategic Plan, Focus Area #4, Promotion of Tourism from an economic development perspective, we are seeking SEDC's approval to authorize staff to administer the CVB program on behalf of the City Council, thus streamlining operations. All uses and expenditures of HOT Funds shall be conducted in accordance with the uses permitted by Chapter 351 of the Texas Tax Code, the City's Policies, HOT Funds Policy, ordinances, and state statutes. The SEDC agrees that it will seek to achieve economic benefits for the City through the administration of the CVB program by providing among other services the following: provide tourist-related information about the city upon request; serve as an advisory body to the City in matters related to expanding the tourist-derived economy; ensure proactive steps are taken to accurately capture hotel data; track and report Sealy hotel stays; prepare quarterly reports to the EDC Board and City Council regarding the CVB's activities in relation to accomplishing the strategic plan and goals approved by the City Council; as a department of the City, overseeing the daily operations of the CVB; work hand in hand with city management and finance to ensure expenditures are made in conformance with the City's HOT Funds Policy; and achieve the goals in the amounts awarded by the HOT Funds Committee. FINANCIAL IMPACTS The SEDC, on behalf of the CVB, will take over management of the funds previously awarded to the Greater Sealy Area Chamber of Commerce for the remainder of Fiscal Year 2025 in the amount of $101,245 in HOT Funds. Additionally, the CVB budget will continue to be approved annually during the budget process by the City Council, based on the recommendation of the HOT Funds Committee. The projections for the actual funds to be expended for the remainder of FY 2025 consist of the previously awarded funds on behalf of the CVB. These funds include: a full-time CVB Manager position; provide program oversight; meeting required floor and ceiling thresholds Pursuant to Texas Tax Code 351: Advertising floor: 14% Art ceiling: 15% Historical preservation ceiling: 15% RECOMMENDAION Staff recommends approving the 2025 Amendment to the Administrative Services Agreement between the City of Sealy and Sealy Economic Development Corporation to include the administration of the Convention and Visitor's Bureau by the Sealy EDC and the program funding by Hotel Occupancy Tax. ATTACHMENTS Former Administrative Services Agreement(s) between the City of Sealy and the SEDC Proposed 2025 Amendment to the Administrative Services Agreement between the City of Sealy and EDC's Strategic Plan aligned with the CVB goals 2025 Amendment to Administrative Services Agreement STATE OF TEXAS COUNTY OF AUSTIN Whereas, the City of Sealy, Texas (the "City") and the Sealy Economic Development Corporation (the "SEDC") entered into an Administrative Services Agreement ("Agreement"): dated the 5th day of December 2016; and Whereas, the Administrative Services Agreement allowed the SEDC to utilize the services and support of the City staff in the furtherance of projects it undertakes to eliminate duplication and to promote economy and efficiency in the use of the additional sales tax revenues it receives and Whereas, the City and SEDC desire to amend the amount the SEDC shall pay the City for utilizing the services and support of the City staff; and Whereas the Administrative Services Agreement authorizes amendments that are in writing and approved by the City and the EDC; and Whereas, the City and SEDC amended the agreement on June 23, 2020, regarding 1.0 Section 5(a) to increase the Sealy EDC's reimbursement to the City for services performed for and on behalf of the SEDC pursuant to the agreement in the amount of $30,000 annually for the adding accounting and financial services; and Whereas, the City and SEDC amended the agreement on October 24, 2023 regarding adding the services of public works staff regarding the Sealy EDC's property located at 125 2nd Street; and Whereas, the City Council now desires to amend the agreement to allocate a portion of funding from Hotel Occupancy Tax to administer the Convention and Visitor's Bureau on behalf of the City of Sealy in compliance with all city policies, ordinances and state statutes and set forth below. NOW THEREFORE, FOR AND IN CONSIDERATION of the mutual covenants, agreements and benefits accruing herein to each party, the City and the SEDC hereby agree to amend the Administrative Service Agreement as follows: 1.0 Section 5 is hereby amended to read as follows: Page I 1 The City may utilize SEDC employees to perform services for and on behalf of the City to administer the Convention and Visitor's Bureau Program, pursuant to Texas Tax Code 351.101 and the goals established by the City Council, on behalf of the CVB, shall expend City Council approved City of Sealy's Hotel Occupancy Tax Funds per the City Council approved budget for promotional and tourist advertising for the City, continuing solicitation of tourism to attract visitors and conventions to the City. The CVB operation reports to the City Council via the City Manager per the City's organizational structure, and funded by the Hotel Occupancy Tax Fund. The CVB shall expend HOT Funds alllocated to the CVB by the City Council annually in a manner directly enhancing and promoting tourism and the convention and hotel industry of Sealy, Texas. All uses and expenditures of HOT Funds shall be conducted in accordance with the uses permitted by Chapter 351 of the Texas Tax Code, the City's HOT Policy, and all other applicable laws and regulations. The CVB Visitor Information Center shall occupy a spaced leased by the City of Sealy on behalf of the CVB The EDC Director shall oversee day-to-day operations and CVB staffing but the CVB is not part of the EDC or under the direction of the EDC Board or funded by the EDC. 0 The EDC Director collects wages for these duties from the HOT Fund. The EDC Deputy Director/Secretary collects wages for these duties from the HOT Fund. The EDC Director shall ensure all CVB operations are compliant with Chapter 351 and the City of Sealy HOT Policy. All salary expenditures shall be part of the quarterly report, broken down by persennel-mame position. Maintain complete and accurate financial records of all HOT Funds transactions Operate a CVB Visitors Information Center, as described by Chapter 351, weekdays from at least 9 am to 4 pm staffed by City employee(s) or contract employee. ) Must have one person present to welcome visitors and answer questions of walk-ins and phone calls. The Visitor Information Center should include a display of CVB promotional materials that promote local, area, and Texas attractions Page I 2 Actual hours for staffing CVB and CVB work shall be charged to HOT Funds in accordance with the approved fiscal year budget for HOT Funds (Fund 20) (Department 558) Must track traffic and phone call activity and include in quarterly report May need to work weekends, on some city holidays, or extended hours as needed for CVB and tourist promotion events, resulting in staff flex time in accordance with the City of Sealy Personnel Policy to be managed by the SEDC Director CVB shall have its own identity, including its own dedicated phone number, website, and signage, distinct from City Hall and the EDC Separation of HOT Funds from EDC Funds in accordance with Any shared expenses such as rent shall be allocated clearly and documented accurately Maintain a physical and digital asset inventory of CVB-owned physical and digital items CVB will operate and keep current the DiscoverSealy.com website CVB will submit a proposed annual budget each year. The proposed and adopted budget is subject to the City of Sealy's approved budget format, including properly categorized expenditures by HOT Fund categories and itemization for CVB. CVB expenses shall be submitted to the City Finance Director (or designee) and paid by the Finance Department in accordance with official City financial policies and procedures. Further, TheCVBshallmaintinaseparaiecheekingaccountin ehanewihappialese-Pe in accordance with state statute, the revenue provided from the tax authorized by Chapter 351 of the Texas Tax Code must be in a separate account established for that purpose and may not commingle that revenue with any other money. The EDC Director shall ensure HOT Funds are spent according to the budget approved by the City Council. Modifications to the budget must be presented to and approved by a vote of the City Council in accordance with the City of Sealy's HOT Fund Policy. The EDC Director should ensure an official job profile exists for any dedicated CVB positions created (for example: CVB Tourism Manager). (City employees "on loan" will already have a job profile for their regular work duties.) Page I 3 EDC Director and those who operate as CVB representatives shall complete a short, basic HOT Funds awareness training once every year to ensure that they are aware of HOT funds having a limited purpose, charging their actual hours worked directly to HOT, and that steps must be taken to separate HOT funded items such as separate asset list, etc. This can be accomplished by watching the 2016 video and reviewing a summary of the HOT Policy and CVB Minimum Expectations (estimated 45 minutes to complete all items). CVB shall take proactive steps to obtain tracking of actual hotel stay information. This information shall appear in the quarterly report. CVB does not have the authority to award or pass-through HOT Funds to other organizations/entities: For example: Cannot outsource the visitor information center operation to another entity Cannot take unspent funds and allocate them to the historical society. CVB must utilize funds for the budgeted purpose. Any remaining capital project funds at the end of each fiscal year for projects that have not been completed may be carried over to the next fiscal year for the purpose of completing the capital project as intended. The EDC Director shall ensure that the project and financial CVB operations status will be submitted to the City Secretary as a quarterly written report within 30 days following the end of the Quarter (using the City's fiscal calendar) for presentation to and approval by the City Council. At a minimum, the report shall include: Itemized expense register which shows: clear traceability to the approved CVB budget funding categories and subcategories shared cost line items shall be flagged and indicate the percentage allocated to CVB additional supporting documentation as requested by the City Copy of the HOT Fund transactions/expenditures for the quarter Hotel room nights recorded during the Quarter for events funded by HOT Funds and other events recorded by hoteliers Page I 4 Foot and phone traffic at the CVB Visitors Center (# phone inquiries/# visitors). When applicable, a copy of the training materials reviewed and the sign-in sheet completed by city employees The EDC Director or designee shall make a formal presentation of the Quarterly report at a Council meeting. State of Texas and City of Sealy nepotism policies apply to all HOT operations and expenditures. EDC Director must disclose in writing to the City Council via City Manager when a conflict of interest or potential conflict-of-interest may exist for proposed or actual HOT Funds expenditures. Examples include awarding a printing job to a councilmember's brother IN WITNESS WHEREOF, this 2025 Amendment to the Administrative Services Agreement is approved by the SEDC on the 24th day of March 2025. SEALY ECONOMIC DEVELOPMENT CORPORATION Sterling Schiller, President ATTEST: Katherine Ellis, SEDC Deputy Executive Director/Secretary IN WITNESS WHEREOF, this Amendment No. 3 to Administrative Services Agreement is approved by the City on the 24th day of March, 2025. CITY OF SEALY, TEXAS Page I 5 Carolyn Bilski, Mayor ATTEST: Sandra Vrablec, City Secretary Page I 6 ADMINISTRATIVE SERVICES AGREEMENT THE STATE OF TEXAS COUNTY OF AUSTIN This Administrative Services Agreement ("Agreement") is made and entered into by and between the City of Sealy, Texas (the "City") and the Sealy Economic Development Corporation (the "SEDC"). WHEREAS, pursuant to the Development Corporation Act, Section 4B, Article 5190.6, V.A.T.C.S., now Chapter 505 of the Texas Local Government Code, (the "Act"), the City created the SEDC and collects on behalf of the SEDC an additional sales and use tax; and WHEREAS, the SEDC desires to utilize the services and support of City staff in the furtherance of projects it undertakes to eliminate duplication and to promote economy and efficiency in the use of the additional sales tax revenues it receives; and WHEREAS, the City has determined that providing personnel and services to the SEDC will be mutually beneficial to the City and the SEDC, will promote local economic development and stimulate business and commercial activity within the City, all in furtherance of the purposes of the SEDC; now, therefore. FOR AND IN CONSIDERATION of the mutual covenants, agreements and benefits accruing herein to each party, the City and the SEDC hereby agree as follows: 1. Services provided: The SEDC may utilize City employees to perform the following services for and on behalf of the SEDC: a. Accounting and financial services; b. Human resource services; C. Administrationeretarial services; and d. Any other services in furtherance ofthe purposes ofthe SEDC and authorized by the Act. 2. Assignment oft tasks: The Executive Director of the SEDC will make request to the City Manager of the City for assignment of tasks to be performed by City employees for the benefit of the SEDC. The specific tasks assigned to City employees will be at the direction of the City Manager, or at the agreement between the City Manager and the Executive Director of the SEDC. 3. Resolution of conflicts: The City and the SEDC acknowledge that from time to time conflicts between an employee's primary responsibilities to the City and the requests for services from the SEDC may arise. The City and the SEDC agree to encourage employees to bring conflicts to the attention of the City Manager ofthe City and the Executive Director of the SEDC as soon as they arise. The City and the SEDC further agree to cooperate to resolve such conflicts in the most economical and beneficial manner by, among other things, reassignment of tasks, hiring additional employees, or contracting third parties to perform necessary services. 4. City Stafft to Remain City Employees: It is specifically understood and agreed between the parties that while performing services for the SEDC, all members of the City's staff, are and shall remain employees of the City and shall receive salary, leave, retirement and other personnel benefits in accordance with the City's policies. The City will obtain and maintain workers' compensation insurance and auto and general liability insurance under the City's regular insurance policy providing coverage for City employees, while employees are performing services by or on behalf ofthe SEDC pursuant to this Agreement. The City hereby authorizes that all benefits available to City employees will be extended to the Executive Director and any employees of the SEDC. In addition, the Executive Director and any employees of the SEDC will be subject to comply with the City of Sealy Personnel Policy. 5. Consideration: a. The SEDC during the term of this Agreement agrees that the SEDC will reimburse the City for services performed for and on behalf of the SEDC pursuant to this agreement by the payment of $17,565.00 annually, payable in full on March 1, 2018, to the City as a transfer from the SEDC to the City's general fund. b. The SEDC further agrees to reimburse the City for all reasonable expenses incurred by the City for or on behalf of the SEDC. The City agrees to provide supporting documentation to the Executive Director for any such expenses prior to the reimbursement. C. The City and the SEDC acknowledge that the SEDC may utilize the services of City employees more at certain times than at other times. Therefore, the City and the SEDC agree that the compensation agreement provided for herein may be reviewed and revised at any time, by mutual agreement of the parties, to more accurately reflect the cost to the City of providing its employees to perform services for and on behalf ofthe SEDC. d. The SEDC acknowledges that the City incurred various costs and City staff performed various services regarding the creation and initial organization of the SEDC and in furtherance of the SEDC projects. As these costs were necessary to the creation, organization, and initial implementation of the projects to be undertaken by the SEDC and will provide significant economic benefit to the. City, hereby acknowledges and stipulates to the receipt of adequate and sufficient consideration for the costs incurred and services performed prior to the effective date of this Agreement. 6. Term: The term of this Agreement shall be for one year commencing October 1, 2017; provided > however, this Agreement shall be automatically renewed for successive one-year terms unless written notice of non-renewal is given by either party to the other at least 30 days prior to the expiration of the initial or any renewal term hereof. Provided further, either party may terminate this Agreement by giving 30 days advance notice thereofto the other. In the event of early termination, the SEDC will pay the City the consideration provided for in paragraph 5 above on a prorated basis through the date of termination. 7. Right to Hire Third Parties: The SEDC specifically reserves the right to hire third parties to perform any or all of the services described herein. 8. Notice: All notices shall be in writing. If mailed, any notice or communication shall be deemed to be received three days after the date of deposit in the United States mail, first-class, postage prepaid. Unless otherwise provided in this Agreement, all notices shall be delivered to the following addresses: City of Sealy Sealy Economic Development Corporation Attention: City Manager Attention: Executive Director P.O. Box 517 330 Main Street, Suite 5 Sealy, Texas 77474 Sealy, Texas 77474 Either party may designate a different address by giving the other party at least 10 days written notice in the manner prescribed above. 9. Parties in Interest: This Agreement shall be for the sole and exclusive benefit of the City and the SEDC and shall not be construed to confer any benefit or right upon any other parties. 10. Amendment: This Agreement may be amended or modified by the mutual agreement of the parties hereto as provided in paragraph 5 above, otherwise, any and all amendments or modifications must be in writing and attached to and incorporated into this Agreement. 11. Severability: In the event any clause, phrase, provision, sentence, or part of this Agreement shall for any reason be adjudged invalid or held unconstitutional by a court of competent jurisdiction, it shall not affect, impair, or invalidate this Agreement as a whole or any part or provision hereof other than the part declared to be invalid or unconstitutional. 12. Entire Agreement: This Agreement contains the entire agreement between the parties and supersedes all other negotiations and agreements with respect to the matters addressed herein, whether written or oral. IN WITNESS WHEREOF, this Agreement has been executed by duly authorized officers of the City of Sealy, Texas, and the Sealy Economic Development Corporation, as of the 19 day of December 2017. ATTEST: CITY OF SEALY, TEXAS - COA 10c1 Whthead AL Anice Dayl Cooksey Aanice Whitehead City Secretary 'Mayor ATTEST: SEALY ECONOMIC DEVELOPMENT CORPORATION SEAL 7 Zu Meloreor 1997 aruy Hey Kinl Meloneck Larry W.1 Kg, President Secretary, SEDC EXAS. Board of Directors * Amendment No. 1 to Administrative Services Agreement STATE OF TEXAS COUNTY OF AUSTIN Whereas, the City of Sealy, Texas (the "City") and the Sealy Economic Development Corporation (the "SEDC") entered into an Administrative Services Agreement ("Agreement") dated the Sth day of December 2016; and Whereas, the Administrative Services Agreement allowed the SEDC to utilize the services and support of City staffi in the furtherance of projects it undertakes to eliminate duplication and to promote economy and efficiency in the use ofthe additional sales tax revenues it receives; and Whereas, the City and the SEDC desire to amend the amount the SEDC shall pay the City for utilizing the services and support of City staff; and Whereas, the Administrative Services Agreement authorizes amendments that are in writing and approved by the City and the EDC; NOW THEREFORE, FOR AND IN CONSIDERATION of the mutual covenants, agreements and benefits accruing herein to each party, the City and the SEDC hereby agree to amend the Administrative Service Agreement as follows: 1.0.Section 5(a) is hereby amended to read as follows: "The SEDC during the term of this Agreement agrees that the SEDC will reimburse the City for services performed for and on behalf of the SEDC pursuant to this agreement by the payment of $30,000.00 annually, payable in full on March 1st of each year to the City as a transfer from the SEDC to the City's general fund as follows: Finance - $15,000.00, Administrative and City Secretary - $5,000.00, Human Resources - $850.00, Information Technology - $1,500.00, Building Services - $1,900.00, Consulting with City Manager $2150.00, and Consulting with City Planner - $3,600.00." IN WITNESS WHEREOF, this Amendment No. 1 to Administrative Services Agreement is approved by the SEDC on 23 day of June 2020. Page 1 of2 SEALY ECONOMIC DEVELOPMENT CORPORATION Slin AhN Sterling Schiller, President ATTEST: / 21 Broukenel, SEDC Secretary Karherine Ellis IN WITNESS WHEREOF, this Amendment No. 1 to Administrative Services Agreement is approved by the City on 15th day of July 2020. CITY OF SEALY, TEXAS hiee lehahad Janice/Whitehead, Mayor ATTEST: 1hpbke Knoll Brooke Knoll, City Secretary Page 2 of2 Job Descriptions (1)Tourism Manager (2)Amended Item 2 SEALY-EDC> TEXAS.USA AGENDA ITEM NO: 2 Discussion and possible action to approve a new job description for a Tourism Manager and amendments to the job descriptions for the Sealy EDC Executive Director and the Sealy EDC Deputy Executive Director and/or Secretary. SUBMITTED BY: Sealy EDC Director MEETING DATE: March 25, 2025 STAFF REPORT DESCRIPTION AND ANALYSIS This report provides an overview of the revised job descriptions for the Sealy Economic Development Corporation (EDC) and the proposed job description for the Convention and Visitors Bureau (CVB) Manager. These revisions and the new position are in response to the Sealy City Council's directive for EDC to manage the portion of funds the City receives from its Hotel Occupancy Tax (HOT) proceeds. The City of Sealy collects a 7% tax on each hotel room rented within the city. The Sealy City Council has tasked the Sealy EDC with managing a portion of these funds to support the CVB. To effectively manage these funds and achieve the City Council's objectives for the CVB, the EDC's existing job descriptions for the EDC Executive Director and EDC Deputy Director / Secretary have been amended to reflect their respective roles and responsibilities related to the inclusion of the CVB. In addition, a job description for a CVB Manager has been developed ensuring compliance with the City of Sealy's personnel policies and Texas State Statute Chapter 351 of the Tax Code, and the proposed 2025 SEDC Administrative Services Agreement. FINANCIAL IMPACTS In the proposed budget, there is a description of the proposed salary to have a full-time CVB Manager along with funding for added job responsibilities of the Sealy EDC Executive Director and the Sealy EDC Deputy Director / Secretary If this item is approved tonight, the City Manager will bring back an item for the Council's consideration regarding the new titles and placement of the positions in the City's Pay Plan for review and consideration by the City Council. RECOMMENDATION Staff recommends approval of a new job description for a CVB Tourism Manager and amendments to the job descriptions for the Sealy EDC Executive Director and the Sealy EDC Deputy Executive Director and/or Secretary. ATTACHMENTS Job Descriptions for the EDC/CVB Executive Director, EDC/CVB Deputy Director, and/or secretary and the newly created description for the CVB Tourism Manager. Job Description Tourism Manager BEALY EXAS AHISTORY OF EXCILLENCZ ATUTURE aF PROGRESS Department: Economic Development Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt Job Summary: The Sealy, Texas, Convention and Visitor's Bureau Manager is responsible for collaborating with committees and partners to develop, organize, and implement the promotion of tourism programs that increase hotel and leisure sales and tax revenues. The Manager will work closely with hospitality, and other partners to implement and support tourism- related city-wide activities. The role is responsible for some travel, continuing education, management of the city's visitor center(s), and providing quarterly pertormance reporting of activities. This position is under the direction of the Sealy Economic Development Director. Essential Functions: Essential functions require presence in the workplace on a regular basis. In order to accomplish this, regular attendance MUST be maintained. This information is intended to be descriptive of the key responsibilities of the position. The following examples do not identify all duties performed by any. single incumbent. The incumbent is expected to perform other related duties, as assigned. 1. Works independently with little supervision Strategic Plan 2. Works closely with the Sealy EDC and other partners to implement the Sealy CVB Strategic Plan. 3. Contribute to annual planning to continue adjustments and additions to the Strategic Plan. 4. Maintains the calendar for project orogression to implement the CVB Strategic Plan and activities. Events: 5. Responsible for the research, planning, execution, and management of tourism-related city-wide special events and activities. 6. Coordinates tourism-related event roles with various internal teams (the city, EDC, Stakeholders, patrons, vendors) 7. Maintains communications with government, hospitality & retail stakeholders, media, the public, and organizations to build alliances that develop support for events/programs. 8. Communicate and follow appropriate safety and security precautions, processes, and policies to safeguard city assets, including: human, environmental, and financial. Visitor's Center(s) 9. Greets visitors with a friendly, customer-first attitude. Provides welcome bags and specialized packaging for tourism guests as needed, and responds to visitor information requests promptly. 10. Has a detailed knowledge of schedules of activities, lodging, and attractions in the city. 11. Manage the operation of the official Visitor Center(s) for the City of Sealy, by modernizing the center, maintaining promotional items, printed material, supplies, and visitor hype. Administrative 12. Manage administrative aspects of the CVB Program including office and meeting room supplies, equipment, hospitality supplies, record keeping, and facilities. 13. Plans, implements, evaluates, and monitors programs, policies, and methods to ensure efficiency and effectiveness of assigned departmental operations; identifies opportunities for improvement; directs the implementation of changes. 14. Ensure that the budgeted expenditure of Hotel Occupancy Tax (HOT) funds complies with state laws, while also respecting the obligations of public funds. Approved 2/26/19 Job Description Tourism Manager SEALY EXAS AHISTORT OF EXCELLENEZ ATUTURE or PROGRESS Department: Economic Development Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt 15. Assist with the development and administration of the division of the CVB Budget. Make budget forecasts and recommendations to the Sealy EDC. Monitor expenses and ensure all expenditures are within the allocated budget. The role plays a pivotal role in maximizing the City's Hotel Occupancy Tax (HOT) revenue. 16. Implement organizational systems and CRM updates for inquiries, attractions, lodging, dining, and events 17. Operate a multi-line phone system 18. Stay abreast of and comply with all City and departmental policies and procedures. Marketing & Engagement 19. Update the content, as needed, on the Discover Sealy Website blogs, newsletters, magazines, and social media platforms to drive visitor numbers and enhance the city's tourism profile related to events, marketing, programs, seasonal content, and information. 20. Define and enhance Sealy's identity by collaborating with partners and using research initiatives to promote historic downtown, and increase public knowledge of Sealy. 21. Plan and organize marketing programs to develop and produce targeting for product development including hotels, restaurants, entertainment, eligible sports tournaments, festivals, film support, and promotional materials for Sealy Visitors. 22. Develop and oversee the execution of a sales and marketing plan focused on all aspects of selling and marketing Sealy as a destination for small meetings, retreats, and social gatherings. 23. Act as a lead and liaison with local organizations, influencers, businesses, and volunteers to build effective relationships supporting tourism initiatives and marketing. 24. Complete a short, basic HOT Funds awareness training once a year to ensure awareness of HOT funds having a limited purpose. Reporting & Analysis 25. Create reports on overall media performance reporting on Hotel Occupancy Tax Funding and Expenditures. 26. Track, prepare, and maintain post-event content for tourism-related city-wide special events, analyzing performance and recommending future improvements. Reporting may include the number of hotel stays for events, their attendance, revenue, and cost. 27. Ensure that all grants, sales, and marketing funds are spent to maximize the increase in hotel occupancy and tax dollars collected. 28. Utilize CRM and create and prepare Visitor Center reports on activities quarterly, including the number of visitors, phone calls, inquiry responses, and other information. 29. Maintain a database of all media, influencers, travel writers, and other outlets relevant to Sealy. 30. Provide and interpret data for tourism: patterns, insights, and opportunities, with a focus on understanding customer behavior, market trends, and competition. 31. Maintain inventory controls for all related equipment and supplies under the Sealy CVB. 32. Communicate CVB work-related activities to supervisor. Create documents, reports, etc. as needed. Travel 33. Responsible for representing the City by actively engaging in associations and attending appropriate trade show functions to network and promote. 34. Responsible for reconciling travel expenses. 35. Some after-hours and weekend work may be necessary 36. Attains and maintains certifications in tourism. 37. Other duties as assigned Approved 2/26/19 Job Description Tourism Manager SEALY TEXAS AHISTURY OF EXCELLENCZ AFUTIRE ar PROGRESS Department: Economic Development Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt 38. Some tasks involve the regular, and at times sustained, performance of heavier physical tasks such as walking over rough or uneven surfaces, bending, stooping, working in confined spaces, and lifting or carrying moderately heavy (20-50 pounds) items. Occasional exposure to variable weather conditions and machinery with moving parts is involved when shooting videos around City facilities. (Note: The examples of essential functions as listed in this class specification are not necessarily descriptive of any one position in the class. The omission of an essential function does not preclude management from assigning specific duties not listed herein if such functions are a logical assignment to the position.) Skills, Knowledge, and Experience (* Can be acquired on the job) Superior written and verbal communication Knowledge of City ordinances, policies, and procedures regarding tourism and events Graphic Design Social media platforms Event Production and Management Social and digital media trends Customer Service Principles Principals of administration, documentation, and records management Modern office equipment Structure and content of the English language, including rules of composition, and grammar Successful work history demonstrating increased responsibility and accomplishments in the are oftourism Conflict resolution Minimum Qualifications & Requirements: Bachelor's Degree in a related field of Communications, Hospitality, Tourism, Marketing, or a related field. An advanced degree or additional relevant experience may be considered instead of specific educational requirements. Proficient in Microsoft Office and content management systems, with exceptional communication and organizational abilities. Able to use and understand the telephone system, postage system, and office equipment Excellent Customer Service and communication skills Able to effectively deal with the public Detail Oriented Excellent oral and storytelling skills High levels of accuracy, timeliness, and dependability. Professional appearance and demeanor may be required to wear a uniform and/or name tag Good driving record Available: Flexible to work evenings, weekends, and holidays as needed to support events and programs. Must have a valid Texas Class "C" Driver's License and must meet the City's driving standards. Must pass a drug test, physical examination, and driver's license check. Approved 2/26/19 Job Description Tourism Manager SEAL FEXAS AHISTORY or EXCELLENEZ ATUTURED ar PROGRESS Department: Economic Development Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt This job description is not an employment agreement, contract agreement or contract. Management has the exclusive right to alter this job description at any time without notice. I have read and understand and agree that this job description applies to my current position and that I am responsible for meeting the requirements outlined in this job description. Printed Name Signature Date This description is intendedi toi indicate the kinds oftasks and levels of work difficulty required of the position given this title and shall not be construed as declaring what the specific duties and responsibilities of any particular position shall be. It is not intended to limit or in any way modify the right of management to assign, direct and control the work of employees under supervision. The listing of duties and responsibilities shall not be held to exclude other duties not mentioned that are of similar kind or level of difficulty. Approved 2/26/19 Job Description SEDC/ CVB Deputy Executive Director SEAL FEXAS AHISTURY OF EXCILLENCE ATUTURE oF PROGRESS Department: Economic Development Corporation Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt Job Summary: Reporting to and under the general administrative direction of the Executive Director of the Sealy Economic Development Corporation (SEDC), the Deputy Executive Director/Secretary will have responsibilities in various administrative and operational functions. These responsibilities include the administration of the Economic Development Corporation's agreement gatekeeping, providing oversight of general office operations, and maintaining the organization's various communication outlets. Additionally, the role involves assisting with financial reports, records and analysis, project management, and conducting research for information requests, assisting clients with EDC incentives and grants applications. The Deputy Executive Director/Secretary may also serve as the SEDC Board Secretary, attending Board and Council meetings and performing related duties and tasks as requested by the Executive Director. The Deputy Executive Director and/or Secretary supports the Executive Director and plays a key role in the Convention and Visitors Bureau (CVB) operations. Responsibilities include CVB agreement administration, office operations, communications, project management, and client assistance. The role may also serve as SEDC Board Secretary. The Deputy Director also assists with CVB strategic oversight and daily operations, ensuring compliance with relevant policies and laws to promote tourism and economic development. Essential Duties and Responsibilities: Essential functions, as defined under the Americans with Disabilities Act, may include any of the following representative duties, knowledge, andskills. Essentialfiunctions require presence in the workplace on a regular basis. In order to accomplish this, regular attendance MUST be maintained. This is not a comprehensive listing of all functions, and duties of this position; employees may be assigned duties and are expected to perform other related duties, as assigned, which are not listed below; The omission of an essential function does not preclude management from assigning specific duties not listed herein ifsuchfunctions are a logical assignment to the position. Reasonable accommodation will be made as required. The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties and responsibilities may include, but are not limited to, the following: Duties and Responsibilities 1. Agreement and Program Administration: Assist with 380 agreements and EDC performance agreements. Administer the terms and conditions required of agreements. (i.e. direct pay program with Finance). Manage and Review Hotel Occupancy Funds policies and procedures. 2. Strategic Planning and Development: Assist in the management ofa all economic development and tourism services and activities through the organization's CRM. Assist in the development, implementation, and updating records of the strategic plan for economic development and tourism growth. Assist in the development and implementation of economic goals and policies for consideration with regard to the EDC and CVB. Provide backup for the CVB Manager on daily activities and office operations. Page 1 of4 Revised 11/14/2023 Job Description SEDC/ CVB Deputy Executive Director SEAL FEXAS AMISTURY OF EXCILLENCE ATUTIRE ar PROGRESS Department: Economic Development Corporation Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt 3. Research and Verification: Conduct research for prospect information requests related to tourism. Verify applicants for EDC incentives and grant programs. On-going study and research for potential program and project funding sources 4. Marketing and Community Engagement: Market the community to potential businesses and gather feedback. Create marketing initiatives and represent the CVB at various events. Ensure the CVB effectively markets the region to potential visitors, contributing to the overall economic health of the community. Foster strong relationships with community stakeholders, tourism partners, and local businesses to enhance the visibility and impact ofthe CVB. Complete a short, basic HOT Funds awareness training once every year to ensure awareness of HOT funds having a limited purpose 5. Project and Schedule Management: a. Maintain project progression calendars. b. Create and manage prospect packages. C. Coordinate the Executive Director's schedule. 6. Meeting and Event Coordination: a. Attend meetings on behalf of the Executive Director. b. Prepare agendas and minutes for SEDC Board and City Council meetings. C. Coordinate and schedule SEDC events. 7. Professional Development and Communication: a. Attend conferences and training for professional growth. b. Cultivate relationships with existing businesses and business networking activities C. Manage EDC communications and media postings. d. Ensure information is updated and relevant on the EDC website e. Assist and provide pertinent content for newsletters and multimedia communications for the EDC and CVB. 8. Administrative Support: a. Oversee general office operations and provide administrative support to EDC offices. b. Create documents and spreadsheets. C. Assist with the annual budget preparation. Monitor departmental budgets and invoice coding. 9. Confidentiality and Independent Work: a. Maintain confidentiality of work-related issues. b. Work independently with minimal supervision. 10. Grant and Fund Management: a. Perform research related to grants and various other funding opportunities. b. Accept and review grant applications. C. Assist grantees with program questions. d. Work with various grant programs. 11. Emergency and Additional Duties: a. Perform other assigned duties. Page 2 of 4 Revised 11/14/2023 Job Description SEDC/ / CVB Deputy Executive Director SEAL FEXAS AHISTORT oF EXCELLENCZ ATUTIRE ar PROBRESS Department: Economic Development Corporation Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt b. Be available on a flexible schedule to assist with tourists' events and activities. C. Provide essential services during emergencies, including tasks outside the usual scope. Minimum Qualifications Education, Training, and Experience Guidelines: Three (3) years ofe experience in economic development, public administration, or a related field, preferably within a Type B Economic Development Corporation or similar organization. Certification as a Certified Economic Developer (CEcD) is preferred but not required. knowledge/Skils: Economic Development Principles: Knowledge ofthe principles, practices, and procedures of economic development, including business retention, expansion, and attraction. Financial Management: Understanding of financial principles related to budgeting, accounting, and grant management. Research and Analytical Skills: Proficiency in conducting research, analyzing data, and presenting findings. Project Management: Skills in managing multiple projects, setting priorities, and meeting deadlines. Communication: Excellent verbal and written communication skills, with the ability to interact effectively with a variety of stakeholders including city officials, business leaders, and the public. Technology Proficiency: Proficiency in using office software (e.g., Microsoft Office Suite) and familiarity with economic development software/tools. Legal and Regulatory Knowledge: Understanding of relevant federal, state, and local laws and regulations related to economic development. Licenses and Certifications: Valid Texas Driver's S License: Required to travel to meetings and events. Certified Economic Developer (CEcD): Preferred but not required. Grant Writing Certification: Preferred but not required. Abilities: Leadership: Ability to lead, manage, and motivate staff and volunteers effectively. Independent Work: Capable of working independently with minimal supervision. Confidentiality: Maintain confidentiality of sensitive information. Problem-Solving: Strong problem-solving and critical-thinking skills. Interpersonal Skills: Ability to build and maintain positive relationships with internal and external stakeholders. Adaptability: Flexibility to adapt to changing priorities and work environments. Attention to Detail: High level of accuracy and attention to detail in work. Page 3 of 4 Revised 11/14/2023 Job Description SEDC / CVB Deputy Executive Director SEAL FEXAS AHISTORY OF EXCELLENCE ATUTIRE or PROGRESS Department: Economic Development Corporation Hourly Rate Range: TBD Reports To: EDC Executive Director FLSA: Exempt This job description is not an employment agreement, contract agreement or contract. Management has the exclusive right to alter this job description at any time without notice. I have read and understand and agree that this job description applies to my current position and that I am responsible for meeting the requirements outlined in this job description. Printed Name Signature Date This description is intended to indicate the kinds of tasks and levels of work difficulty required of the position given this title and shall not be construed as declaring what the specific duties and responsibilities of any particular position shall be. It is not intended to limit or in any way modify the right of management to assign, direct and control the work of employees under supervision. The listing of duties and responsibilities shall not be held to exclude other duties not mentioned that are of similar kind or level of difficulty. Page 4 of 4 Revised 11/14/2023 Job Description EDC/ /CVB Executive Director SEALY FEXAS AHISTORY OF EXCELLENCE ATUTIRE ar PROGRESS Department: Economic Development Corporation (SEDC) Hourly Rate Range: TBD Reports To: SEDC Board/City Manager FLSA: Exempt Job Summary: The Executive Director of the Sealy Economic Development Corporation (EDC) is responsible for managing all economic development activities within the city, its Extra Territorial Jurisdiction (ETJ), and surrounding areas. This role involves the development and implementation ofeconomic goals, policies, and priorities. The Director is tasked with enhancing economic growth and diversification by supporting existing companies and attracting new businesses. The Executive Director also provides executive oversight for ensuring the Convention and Visitors Bureau (CVB), strategy and objectives adopted by the City of Sealy are in alignment with the economic and tourism objectives, as well as all city policies and state laws. Essential Duties and Responsibilities: Essential functions, as defined under the Americans with Disabilities Act, may include any ofthe following representative duties, knowledge, and skills. Essential functions require presence in the workplace on a regular basis. In order to accomplish this, regular attendance MUST be maintained. This is not a comprehensive listing ofallf functions, and duties ofthis position; employees may be assigned duties and are expected to perform other related duties, as assigned, which are not listed below; The omission of an essential function does not preclude management from assigning specific duties not listed herein ifsuchfunctions are a logical assignment to the position. Reasonable accommodations will be made as required. The job description does not constitute an employment agreement and is subject to change at any time by the employer. Essential duties andresponsibilities may include, but are not limited to, the following: Strategic Planning and Development: Oversee and manage all economic development services and activities. Develop and implement economic goals and policies. Develop, implement and update the strategic plan for economic development. Provide strategic direction and leadership for the Convention and Visitors Bureau (CVB), in alignment with the city's economic and tourism goals. Collaborate with city officials, the Tourism Manager and the Deputy Executive Director to establish funding priorities and strategic objectives for the CVB. Business Growth and Diversification: Facilitate business growth and diversification. Support existing businesses and encourage local investment. Support the Hotel/Motel industry to drive increased stays and generate Hotel Occupancy Tax Funding and Financial Management: Secure funding from various sources including grants and low-interest loans. Administer the EDC budget and approve expenditures. Manage reports and maintain communication with stakeholders. Utilize long-range planning techniques, principles and practices ofbudget preparation and administration, financial reporting, and management systems and reporting Oversee the financial and budgetary management of the Economic Development Corporation and CVB, ensuring accountability and transparency in the use of funds allocated by the City of Sealy. Marketing and Community Engagement: Market the community to potential businesses and gather feedback. Create marketing initiatives and represent the EDC at various events. Market to site location consultants and industry officials. Page 1 of 4 Revised 11/14/2023 Job Description EDC /CVB Executive Director SEAL EXAS AHISTORY OF EXCELLENEZ AFUTURE or PROGRESS Department: Economic Development Corporation (SEDC) Hourly Rate Range: TBD Reports To: SEDC Board/City Manager FLSA: Exempt Develop and facilitate programs that retain and attract sales tax generating businesses. Ensure the CVB effectively markets the region to potential visitors, contributing to the overall economic health of the community. Collaboration and Coordination: Open and regular coordination and communications with the city manager. Coordinate with city staff, elected officials, and outside agencies. Develop workforce programs in collaboration with local and state entities. Represent the EDC to City Council and various organizations. Provide a minimum of quarterly updates regarding the activities and metrics of the CVB activities, and achievements toward identified goals. Property and Asset Management: Manage EDC and CVB owned properties. Customer Relations and Public Interaction: Address and resolve citizen inquiries and complaints. Availability to speak and work with interested individuals, groups, parties and tourists in creating a Sealy as al business and tourism destination. Digital Presence: Maintain both the EDC, CVB websites and community profiles according to modern industry standards. Stay abreast and utilize technology for greater efficiency and communication. Qualifications: Expertise in municipal economic development. Proficiency in program development and administration. Skills in statistical data collection and analysis. Knowledge of negotiation practices and budget management. Understanding of financial reporting and management systems. Familiarity with federal, state, and local regulations. Bachelor's degree in business administration, Economics, Political Science, or Public Admimstation-Miakcting or related field preferred. Five (5) years of current and progressive experience in economic development - focus on the attraction of property and sales tax generating businesses preferred. Additional experience in municipal government operations preferred. Or any equivalent combination of education and/or experience. Complete a short, basic HOT Funds awareness training once every year to ensure that they are aware of] HOT funds having a limited purpose. Physical Demands and Working Environment (The physical demands and environmental conditions described here are representative ofthose that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions) Work is performed in an office environment. While performing duties ofthis job, the employee must be able to remain in a stationary position 50% ofthe time. The employee is occasionally required to stand, reach; climb or balance; stoop, kneel, crouch, or crawl. The employee must occasionally lift and/or move up to 20 pounds. This Page 2 of 4 Revised 11/14/2023 Job Description EDC / CVB Executive Director BEALY EXAS AHISTORY OF EXCELLENCZ AFUTURE ar PROGRESS Department: Economic Development Corporation (SEDC) Hourly Rate Range: TBD Reports To: SEDC Board/City Manager FLSA: Exempt position requires constant operation and use of computers, phones, and other office equipment. May be subject to repetitive motion, such as typing, data entry, and vision to monitor Minimum Qualifications Education, Training, and Experience Guidelines: Bachelor's degree in business administration, Economics, Political Science, or Public Administration- Marketing or related field preferred Five (5) years of current and progressive experience in economic development- focus on the attraction of property and sales tax generating businesses preferred Additional experience in municipal government operations preferred Or any equivalent combination of education and/or experience Certification as a Certified Economic Development (CEcD) is preferred but not required KnoiigesAINAbles Ability to interpret and understand the city policies and procedures Knowledge of and ability to use market research methodologies and public relations principles and practices Knowledge of common business, governmental, and real estate terminology and practices. Knowledge of long-range planning techniques, principles and practices of budget preparation and administration, financial reporting, and management systems and reporting Knowledge of pertinent Federal, State, and Local laws, relating to economic development in general and tax abatement specifically Ability to work in Windows and current releases using Word, Excel, and Power Point Possess strong analytical, organizational, and negotiating skills Inclined to accuracy, efficiency, professionalism and courtesy toward the public and other city employees Ability to communicate effectively and persuasively both orally and in writing Ability to perform all the physical requirements of the position with or without an accommodation License, Certifications, and Other Requirements: Certified Economic Developer (CEcD) or Professional Community and Economic Developer (PCED) certification preferred Valid Texas Class "C" Driver's License and must meet City's driving standards Must have the ability to pass a pre-employment drug screen, physical examination, criminal background, and MVR check This job description is not an employment agreement, contract agreement or contract. Management has the exclusive right to alter this job description at any time without notice. I have read and understand and agree that this job description applies to my current position and that I am responsible for meeting the requirements outlined in this job description. Printed Name Signature Page 3 of 4 Revised 11/14/2023 Job Description EDC/ CVB Executive Director EXAS AHISTURYD OF EXCELLENCE or SEAW ATUTIRED PROGRESS Department: Economic Development Corporation (SEDC) Hourly Rate Range: TBD Reports To: SEDC Board/City Manager FLSA: Exempt Date This description is intended to indicate the kinds of tasks and levels of work difficulty required of the position given this title and shall not be construed as declaring what the specific duties and responsibilities of any particular position shall be. It is not intended to limit or in any way modify the right of management to assign, direct and control the work of employees under supervision. The listing of duties and responsibilities shall not be held to exclude other duties not mentioned that are of similar kind or level of difficulty. Page 4 of 4 Revised 11/14/2023 Budget Amendment & Public Hearing Item K& Item 3 NOTICE OF PUBLIC HEARING ON BUDGET AMENDMENT The City Council for the City ofSealy, Texas, will hold a public hearing on amending the 2024-2025 Fiscal Year Budget of the City ofSealy, Texas, to be held on the 24th Day of March, 2025, at 6:00 p.m. in the City Hall at 415 Main Street, Sealy, Texas 77474. All interested persons shall be given an opportunity to be heard for or against any item or the amount of any item contained in the proposed Budget Amendment. SEALY-EDC>> TEXAS.USA AGENDA ITEM NO: (3) Discussion and possible action to amend the City of Sealy's Fiscal Year 2024-2025 Budget. SUBMITTED BY: Sealy EDC Staff MEETING DATE: March 25, 2025 STAFF REPORT DESCRIPTION AND ANALYSIS The Sealy City Council has requested the Sealy Economic Development Corporation manage the revenue the City receives as a result of collecting Hotel/Motel Occupancy Taxes (HOT) for the CVB operations. The HOT is a seven percent (7%6) charge on all hotel and motel stays in Sealy that provides the revenue for funding the Convention and Visitors Bureau. These funds are authorized and governed by TEXAS STATE STATUTES: TAX CODE TITLE 3. LOCAL TAXATION SUBTITLE D. LOCAL HOTEL OCCUPANCY TAXES CHAPTER 351. MUNICIPAL HOTEL OCCUPANCY TAXES. Based on this request, the Sealy Economic Development Corporation (SEDC) staff has developed a proposed budget for your consideration and recommendation to the City Council. This budget covers the remaining six months of Fiscal Year 2025 and is designed to promote tourism and the convention and hotel industry in Sealy. By statute, the funds are kept in a separate fund, and the SEDC will manage the budget of these funds in the same way as any Special Revenue Fund utilized by any other department in the City. Annually a budget for revenues and expenditures will be proposed for consideration by the Sealy City Council. The approved budget will be managed in accordance with Texas Tax Code Chapter 351 along with all policies and procedures of the City of Sealy. Staff have prepared recommendations regarding the allocations of these funds for the remaining six (6) months of FY 2025. Based on your feedback and actions, the budget recommendation will then be taken to the City Council to consider and act upon. and per all policies of the City of Sealy related to accounting, audit and expenditure requirements. The SEDC staff There are some special guidelines as to how these funds must be utilized. There is a two (2) part test the State has developed for these expenditures. The first element of the two-part test is this: Every expenditure of hotel taxes must put "heads in beds." What this means is that every funded project must attract overnight tourists to the city's hotels and motels, thus promoting the city's hotel industry. Every expenditure of hotel tax must also fit into one of nine statutorily authorized categories. These are the nine categories: Allowable projects that attract tourists to the city include. (1) convention and visitor centers; (2) convention registration; (3) advertising the city; (4) promotion of the arts; (5) historical restoration and preservation; (6) sporting events in a county under one million in population; (7) enhancing or upgrading existing sports facilities or sports fields (only in certain cities); (8) tourist transportation systems; and (9) signage directing the public to sights and attractions that are visited frequently by hotel guests in the city. Thus, even if an event puts heads in beds, it cannot receive hotel tax money unless it also fits into one of the nine categories. It's not enough to meet one of the two prongs of the two-part test. A city must meet both. Applicable to all expenditures in these line items is they must be directly related to attracting tourists, which a good rulé of thumb for defining a tourist is as a people who travel from further than 50 miles away from their place of residence and stay in a local hotel overnight. The proposed HOT budget reflects a strategic approach to utilizing these funds to enhance tourism and economic development in Sealy. By focusing on key areas such as personnel, marketing, and events, the SEDC aims to attract more visitors and boost the local economy. The budget's adherence to state statutes and city policies ensures that these funds are used effectively and in compliance with all regulations. The proposed budget focuses on several key areas to achieve its goal of promoting tourism: Personnel: A significant portion of the budget is allocated to personnel, including the creation of a new full-time Convention and Visitors Bureau (CVB) Manager position to coordinate CVB operations, marketing, and event planning. The budget also includes a 10% salary increase for the EDC Executive and the Deputy Directors for duties related to the addition of the CVB. Operations: Operational expenses cover essential functions such as telephone, postage, office rent, utilities, and insurance. The budget also includes investments in technology and office equipment to support efficient operations. Marketing and Promotion: A substantial allocation is dedicated to marketing and promotion, encompassing digital advertising, print materials, and public relations. These efforts aim to increase Sealy's visibility and attract visitors. Events and Festivals: Funding is allocated for signature events like the Fantasy of Lights (Christmas event) and the Heritage Festival German/Czech), which celebrate Sealy's cultural heritage and attract tourists. Capital Programs: A one-time investment in a Wayfinding Signage Program is proposed. This initiative will enhance navigation within Sealy and improve the visitor experience. An item for the program, design and implementation will be brought forward to the city council for consideration in the very near future. In the case of advertising and promotions expenditures, there are specific requirements spelled out: Directly Related to Tourism: All advertising and promotional expenditures must be directly related to attracting tourists to Sealy. Measurable Impact: The SEDC must demonstrate how these expenditures will have a measurable impact on increasing tourism. Percentage of Funds: The budget includes a significant portion dedicated to advertising and promotion, meeting and exceeding the minimum requirements set by the state, "At a minimum, however, state law requires that for cities, Isuch as Sealyl, with a seven percent (7%) local hotel occupancy tax rate, at least one-seventh of the hotel occupancy revenues must be spent advertising and promoting the city to directly impact tourism and the hotel and convention industry". Two budget amendments are being presented for consideration. The first budget amendment will update the budget to reflect the amount of HOT Funds awarded to all applicants by City Council at the September 17th, 2024 City Council Meeting. The FY 2024-2025 budget was adopted prior to the award of HOT Funds; therefore, it does not accurately reflect what funding was granted. The second budget amendment is comprised of several changes. First, the funds for the Liedertafel Floor replacement will be moved from department 555 (Tourism Promotion) to department 557 (Liedertafel Hall). Second, the funding for the Wayfinding signs will be moved from department 555 to a capital outlay expenditure line item in the newly created department 558 (CVB). Third, funding will be allocated from expenditure line items 55605 and 55615 in department 555 into several new expenditure line items that will be used to fund the CVB. Project accounting will be used to track what category each expenditure falls into. A breakdown of expenditures and corresponding project numbers can be found behind the budget amendment. Once complete, there will be funds remaining in department 555 from the original awarding of HOT funds. The value of the subcategories were not amended from the original allocations because the current HOT Funds Policy does not provide a mechanism to amend the HOT Funds (value) once the funds are awarded. FINANCIAL IMPACTS The spreadsheet and proposed budget amendments are attached. RECOMMENDATION This proposed budget is on the agenda for feedback and consideration. This budget conforms with State statutes as well as the City's HOT Policy. ATTACHMENTS Ordinance for Budget Amendment 2 Budget Amendment forms and backup with budget markup Budget Spreadsheet City of Sealy, Texas Budget Amendment Request Form As Authorized by City Charter Section 7.03 - Amendments After Adoption Fiscal Year: 2025 Fund #: 20 Fund Name: HOTEL/MOTEL TAX FUND Estimated Revenues & Other Financing Sources Appropriations & Other Financing Uses Total increases $ Total increases $ 254,187 Net increase (decrease) Total decreases $ Total decreases $ 254,187 in budgetary resources: Net increase (decrease) $ Net increase (decrease) $ $ NOTE: "Current Budget" is defined as the current fiscal year's original adopted budget plus or minus any approved budget amendments to date. Estimated Revenues & Other Appropriations & Other Amended Dept Department Acct/ Account/ Current Financing Sources Financing Uses Budget, # Name Obj # Object Name Budget Increase / Decrease V Increase V Decrease As Proposed 555 Tourism Promo. 55605 Convent/Vis. Info $ 103,500 $ $ $ $ 93,437 $ 10,063 555 Tourism Promo. 55615 Advert & Promo $ 31,706 $ $ $ $ 25,750 $ 5,956 555 Tourism Promo. 55620 Hist. Restor/Preserv. $ 35,628 $ $ - $ - $ 35,000 $ 628 555 Tourism Promo. 55645 Signage to Signs/At $ 100,000 $ $ - $ $ 100,000 $ 557 Liedertafel Hall 56020 Building Improvmt $ - $ - $ - $ 35,000 $ $ 35,000 558 CVB 55645 Signage to Signs/At $ $ $ $ 100,000 $ $ 100,000 558 CVB 51010 Salaries & Wages $ - $ $ - $ 31,410 $ - $ 31,410 558 CVB 51020 Social Security $ - $ $ $ 2,405 $ - $ 2,405 558 CVB 51030 Retirement Contr $ - $ $ - $ 4,745 $ - $ 4,745 558 CVB 51040 Group Insurance $ - $ - $ - $ 5,925 $ $ 5,925 558 CVB 51050 Workers Comp $ $ $ $ 49 $ - $ 49 558 CVB 52000 General Office Sup $ - $ $ $ 500 $ $ 500 558 CVB 53300 Dues & Subscriptio $ $ $ $ 6,793 $ - $ 6,793 558 CVB 53310 Travel & Training $ - $ $ $ 5,630 $ - $ 5,630 558 CVB 53330 Postage & Shipping $ - $ - $ - $ 300 $ - $ 300 558 CVB 53960 Copier Rental Fees $ - $ $ $ 880 $ $ 880 558 CVB 53400 General Liab. Insurand $ - $ $ $ 500 $ $ 500 558 CVB 53900 Building & Land Rent $ $ $ $ 5,450 $ - $ 5,450 558 CVB 53210 Telephone $ $ $ $ 400 $ $ 400 558 CVB 56070 Furniture & Fixtures $ $ $ $ 5,000 $ $ 5,000 Page 1 of 2 City Mgr's Sig/Date: Date approved by City Council: Ord # Budget Adj # Packet # Entered by: Posted by: City of Sealy, Texas Budget Amendment Request Form As Authorized by City Charter Section 7.03 - Amendments After Adoption Fiscal Year: 2025 Fund #: 20 Fund Name: HOTEL/MOTEL TAX FUND Estimated Revenues & Other Financing Sources Appropriations & Other Financing Uses Total increases $ Total increases $ 254,187 Net increase (decrease) Total decreases $ Total decreases < - 254,187 in budgetary resources: Net increase (decrease) $ Net increase (decrease) $ $ NOTE: "Current Budget" is defined as the current fiscal year's original adopted budget plus or minus any approved budget amendments to date. Estimated Revenues & Other Appropriations & Other Amended Dept Department Acct/ Account/ Current Financing Sources Financing Uses Budget, # Name Obj # Object Name Budget Increase V Decrease / Increase V Decrease As Proposed 558 CVB 53250 Web Design & Update $ $ $ $ 5,000 $ $ 5,000 558 CVB 53340 Printing & Binding $ - $ $ - $ 500 $ $ 500 558 CVB 53355 Marketing $ $ $ - $ 43,700 $ - $ 43,700 Page 2 of 2 City Mgr's Sig/Date: Date approved by City Council: Ord # Budget Adj # Packet # Entered by: Posted by: 20 HOTEL/MOTEL TAX FUND XXXX-XXXX - 2024-2025 XXXX-XXXX XXXX-XXXX CURRENT YEAR-TO-DATE PROJECTED APPROVED PROPOSED REVENUES ACTUAL ACTUAL BUDGET ACTUAL YEAR END BUDGET BUDGET OCCUPANCY TAXES 20-40400 Hotel/Motel Occupancy Tax XXX,XXX XXX,XXX XXX,XXX XX,XXX X 236,517 236,517 TOTAL OCCUPANCY TAXES XXX,xxx XXX,XXX XXX,XXX xX,xxx X 236,517 236,517 FINES & FORFEITURES 20-42550 Penalties & Interest X XXX X X X a TOTAL FINES & FORFEITURES X XXX X X X 0 CHARGES FOR SERVICES 20-43064 Liedertafel Hall Damage Fees X X X X X 0 0 20-43070 Hill Center Cleaning Fees XXX XXX X X X 0 0 20-43072 Excess Cleaning Fees XXX 0 X X X 0 0 20-43074 Liedertafel Hall Cleaning Fees XXX XX X X X a 0 0 TOTAL CHARGES FOR SERVICES XXX XXX X X X 0 CONTRIBUTIONS & DONATIONS 20-44910 Donations X X X X X 0 0 20-44915 Naming and Donation Policy Fee X X X X X 0 TOTAL CONTRIBUTIONS & DONATIONS X X X X X 0 INVESTMENT INCOME 20-45000 Interest Earnings X,xxx xX,xXX X,xxX XX,XXX X 1,000 1.000 TOTAL INVESTMENT INCOME X,XXX xX,xxx X,xXX XX,XXX X 1,000 1,000 OTHER FINANCING SOURCES 20-49600 Gain on Sale of Right to Use X X X X X 0 0 20-49990 Transfers In X X X X X 0 20-49998 Budgeted Reduction of Fund Bal X X XX,XXX X X 49,670 42.317 TOTAL OTHER FINANCING SOURCES x X xX,XXX X X 49,670 TOTAL REVENUES XXX,XXX XXX,XXX XXX,XXX XX,XXX X 287,187 279,834 20 -HOTEL/MOTEL TAX FUND TOURISM PROMOTION XXXX-XXXX . 2024-2025 XXXX-XXXX XXXX-XXXX CURRENT YEAR-TO-DATE PROJECTED APPROVED PROPOSED DEPARTMENTAL EXPENDITURES ACTUAL ACTUAL BUDGET ACTUAL YEAR END BUDGET BUDGET OPERATIONS 20-555-53010 Auditing & Accounting X X X X X 0 20-555-53500 Buildings & Grounds Rep/Ma X X X X X 0 0 20-555-55600 Tourism Promotion X X X X X 0 20-555-55605 Convention/isitor Info Ce XX,XXX X X X X 103,500 10,063 20-555-55615 Advertising & Promotion XX,XXX X X X X 34,059 5,956 20-555-55620 Hist. Restoration/Preserva X,xxx X X X X 35,628 628 20-555-55625 Arts Programs X,XXX X X X X 0 U 20-555-55635 Sporting Events X,xxX X X X X 9,000 2,000 20-555-55640 Transportation of Tourists X X X X X 0 U 20-555-55645 Signage to Sights/Attracti X,xxx X X X X 100,000 0 20-555-55650 Administration of HOT Fund X,XXX X,xxx X,XXX X,XxX 0 5,000 7,000 TOTAL OPERATIONS XXX,XXX XXX,XXX XXX,XXX 2,900 0 287,187 26,297 TOTAL TOURISM PROMOTION XXX,XXX XXX,XXX XXX,XXX 2,900 0 287,187 25,647 20 -HOTEL/MOTEL TAX FUND LIEDERTAFEL HALL XXXX-XXXX 2024-2025 XXXX-XXXX XXXX-XXXX CURRENT YEAR-TO-DATE PROJECTED APPROVED PROPOSED DEPARTMENTAL EXPENDITURES ACTUAL ACTUAL BUDGET ACTUAL YEAR END BUDGET BUDGET OPERATIONS 20-557-52040 Medical/First Aid Supplies X X X X X 0 20-557-52060 Janitorial Supplies X,XXX X X X X 0 20-557-52080 Landscaping Supplies X X X X X 0 20-557-52150 Buildings & Grounds Suppli X X X X X 0 20-557-52250 Insecticides/Pesticides XXX X X X X 0 20-557-53000 Engineering Services X X X X X 0 20-557-53110 Janitorial Services X X X X X 0 20-557-53200 Electricity X,XXX X X X X 0 20-557-53210 Telephone X X X X X 0 20-557-53400 General Liability Insuranc X X X X X 0 20-557-53500 Buildings & Grounds Rep/Ma XX,XXX X X X X 0 20-557-53900 Building & Land Rentals X X X X X 0 20-557-54600 Property/Ad Valorem Taxes X X X X X a TOTAL OPERATIONS X,XXXX X X X X 0 CAPITAL OUTLAY 20-557-56020 Building Improvements X X X X X 0 35,000 TOTAL CAPITAL OUTLAY X X X X X 0 35,000 TOTAL LIEDERTAFEL HALL XX,XXX X X X X 0 35,000 20 -HOTEL/MOTEL TAX FUND CVB = VISITOR INFO CENTER XXXX-XXXX )( 2024-2025 XXXX-XXXX XXXX-XXXX CURRENT YEAR-TO-DATE PROJECTED APPROVED PROPOSED DEPARTMENTAL EXPENDITURES ACTUAL ACTUAL BUDGET ACTUAL YEAR END BUDGET BUDGET PERSONNEL 20-558-51010 Salaries & Wages X X X X X 0 31,410 20-558-51020 Social Security X X X X X 0 2,405 20-558-51030 Retirement Contributions X X X X X 0 4.745 20-558-51040 Group Insurance X X X X X 0 5,925 20-558-51050 Workers" Compensation X X X X X 0 49 TOTAL PERSONNEL X X X X X 0 44,534 OPERATIONS 20-558-52000 General Office Supplies X X X X X 0 500 20-558-53210 Telephone X X X X X 0 400 20-558-53250 Website Design & Update X X X X X 0 5.000 20-558-53300 Dues & Subscriptions X X X X X 0 6,793 20-558-53310 Travel & Training X X X X X 0 5,630 20-558-53330 Postage & Shipping X X X X X 0 300 20-558-53340 Printing & Binding X X X X X 0 500 20-558-53355 Marketing X X X X X 0 43,700 20-558-53400 General Liability Insuranc X X X X X 0 500 20-558-53900 Building & Land Rentals X X X X X 0 5,450 20-558-53960 Copier Rental Fees X X X X X 0 880 20-558-55645 Signage to Sights/Attracti X X X X X 0 0 TOTAL OPERATIONS X X X X X 0 69,653 CAPITAL OUTLAY 20-558-56070 Furniture & Fixtures X X X X X 0 5,000 20-558-56645 Signage to Sights/Attractions 0 100,000 TOTAL CAPITAL OUTLAY X X X X X a 105,000 TOTAL CVB - VISITOR INFO CENTER X X X X X 0 219,187 20 -HOTEL/MOTEL TAX FUND NON-DEPARIMENTAL XXXX-XXXX 2024-2025 XXXX-XXXX XXXX- -XXXX CURRENT YEAR-TO-DATE PROJECTED APPROVED PROPOSED DEPARTMENTAL EXPENDITURES ACTUAL ACTUAL BUDGET ACTUAL YEAR END BUDGET BUDGET OPERATIONS 20-599-55710 Service/Finance Charges X X X X X 0 TOTAL OPERATIONS X X X X X 0 CAPITAL OUTLAY 20-599-56200 Capital Outlay - Leases X X X X X 0 TOTAL CAPITAL OUTLAY X X X X X 0 OTHER FINANCING USES 20-599-59990 Transfers Out X X X X X 0 20-599-59998 Budgeted Addition to Fund X X X X X 0 0 TOTAL OTHER FINANCING USES X X X X X 0 TOTAL NON-DEPARTMENTAL X X X X X 0 TOTAL EXPENDITURES XXX,XXX XXX,XXX XXX,XXX X,XXX X 287,187 279,834 == := REVENUE OVER/(UNDER) EXPENDITURES XX,XXX X X X X 0 20 - HOTEL/MOTEL TAX FUND CVB VISITOR INFO CENTER - 558 Project # 120 Line Items: A- Convention/Visitor Info Center, C-A Adverising/solctations/Promotions, H = Signage Directing Tourists DEPARTMENTAL EXPENDITURES NOTES: 558-51010 Salaries & Wages CVB Manager: $22,917 (5 MOs), EDC Exec Dir 10% Inc: $4,684 (6 Mos), EDC Dep Dir 15% Inc: $3,809 (6 Mos) (All Project 120-A) 558-51020 Social Security @ 7.65% (Project 120-A) 558-51030 Retirement Contributions @ 15.10% (Project 120-A) 558-51040 Group Insurance Project 120-A 558-51050 Workers' Compensation WC Code: 8810 (Project 120-A) 558-52000 General Office Supplies Project 120-A 558-53210 Telephone Project 120-A 558-53250 Website Design & Update Project 120-C 558-53300 Dues & Subscriptions TACVB: $520 (120-A), Canva: $120 (120-A), Microsoft 365: $150 (120-A), Adobe lustrator: $190 (120-A), Search TX Tax: $63 (120-A), Placer Al: $5,000 (120-A), TX Independence Trail Region: $500 (120-C), Central TX I-10 Comm. Alliance: $250 (120-C) 558-53310 Travel & Training Travel & Tourism College: $1,800, TACVB Conference: $1,655, DMS Certification: $250, TX Travel Alliance Annual Summit: $1,925 (All Project 120-A) 558-53330 Postage & Shipping Project 120-A 558-53340 Printing & Binding Business Cards: $500 (Project 120-C) 558-53355 Marketing Tourism Promo Photo Video Package: $12,000, Digital Advertising: $3,000, Billboard Advertising: $3,700 (All Project 120-C), CVB Sign & Mural: $25,000 (Project A) 558-53400 General Liability Insurance Project 120-A 558-53900 Building & Land Rentals Suite 8 & 50% of Suite 5: $5,450 ($650 one time deposit) (Project 120-A) 558-53960 Copier Rental Fees Project 120-A 558-56070 Furniture & Fixtures Project 120-A 558-56645 Signage to Sights/Attractions Wayfinding Signs: $100,000 (Project 120-H) Lease Agreement for Sealy EDC Item 4 SEALY-EDC> TEXAS.USA JOINT AGENDA ITEM NO: 4 Discussion and possible action to approve an annual lease agreement/s) between the Sealy EDC and Electron Beam Technologies for the purposes of the Sealy EDC. SUBMITTED BY: Sealy EDC MEETING DATE: March 24, 2025 STAFF REPORT DESCRIPTION Discussion and possible action to approve an annual lease agreement(s) between the Sealy EDC and Electron Beam Technologies for the Sealy EDC. The Sealy EDC staff is seeking approval for leased space that includes a Deputy Executive Director office/welcome lobby, an Executive Director office, and a separate meeting room. ANALYSIS The Sealy EDCis currently in the Professional Building, Suite 8. Staff recommends moving the EDC office to Suite 3 to make room for a strategically placed CVB office in Suite 8. Suite 3 is located adjacent to Suite 8 with plans to create an opening in the walls and connect the CVB and EDC, it's located on the eastern side of the building. Sealy EDC Lease Recommendation for Sealy Professional Building. This proposal includes: Suite #3 (EDC Office): Approximately 591 square feet at $1.52 per square foot, totaling $900.00 monthly. This suite will serve as the primary office for the Sealy EDC. Suite #5 (Shared Board Room): Approximately 422 square feet at a discounted rate of $0.71 per square foot, totaling $300.00 monthly. This suite will provide a meeting space for the Sealy EDC. The Sealy CVB may pay half the cost of the meeting room. Analysis Details Efficiency and Cost-fffectiveness: The combined lease cost of $1200.00 per month ($7,200 for six months) presents a viable solution for the Sealy EDC to make room for a Visitor's Center. CVB Contribution to the Meeting Room: The CVB may contribute half the cost of the meeting room to the Sealy EDC equaling $150.00 monthly or ($900.00 for six months) Strategic Location: The EDC's presence within the Sealy Professional Building, where it has been located since 2022, offers a centralized location for economic development inquiries. Developer Visits: Suites #3 & #5 will be equipped as a professional and confidential EDC with a welcoming office and meeting room. Lease Terms: The one-year lease, effective April 1st to March 31st, (or later), includes electricity, water, and access to bathroom facilities. The building is accessible Monday through Friday, 8:00 a.m. to 5:00 p.m., this limited accessibility enhances security. Building Improvements: The building owners have agreed to replace carpeting, address wall maintenance, and ceiling maintenance, and provide inner office access connecting the CVB and EDC. We will collaborate with Blue Iron to connect our internet service to Suite 3. Meeting Space Solution: Suite #5 provides a dedicated meeting space. The lease rate of $300 a mo. reflects a discounted one-year commitment due to periodical meeting usage. Continuity: This lease provides the EDC office space without relocating to another address, ensuring continuity and minimal disruption. City Manager Budget Amendment Approval: The Sealy EDC will need to amend the building lease budget due to increased monthly expenditure for a larger office space. The EDC's monthly lease payment is currently $950. The net increase may be an additional $100 monthly (with the CVB paying EDC $150 monthly for the use of the meeting room. Plus, the one-time deposit of $250, is calculated by starting with the total deposit of $900 (for Suite 3) and decreasing it by the previous deposit given for Suite #8 of ($650). The increase may be amended through the Board and Council or possibly the City Manager. FINANCIAL IMPACT The financial impact on the EDC rental line item would be $1200.00 per month. However, the CVB may pay half the cost of the meeting space. Square Feet Per Square Foot Monthly Lease Suite #3 591 $1.52 $ 900.00 Suite #5 420 $0.71 $ 300.00 Deposit Equal to one month lease amt. One-time payment ($650) = $250 Total Space 1011 $1.19 $1200.00 Suite 5 & CVB CVB Shared use of meeting room Shared ($150.00) Total Suite 3 & Suite 5 (meeting share) 1.03 $1,050.00 + deposit of $250 RECOMMENDATION EDC staff recommends the Board of Directors and City Council approve and authorize the Sealy EDC Executive Director to negotiate and execute the attached lease agreements for Suite #3 and the shared use of Suite #5, enabling the change of office within the same building for the Sealy EDC. EDC Executive Director office Closet Storage Deputy /EDC Welcome office Lease Agreement This lease agreement is made and entered into on this 1st day of April 2025 between Electron Beam Technology of] Harris County, Texas ("Lessor") and, Sealy Economic Development Corporation ("Lessee"), of fAustin County, Texas provides as follows: 1. Leased Premises. Subject to and upon the terms, provisions and conditions hereinafter set forth, and each in consideration of the duties, covenants and obligations of the other hereunder, Lessor does hereby lease demise and let to Lessee and Lessee does hereby lease and take from Lessor those certain premises ("the Leased Premises") in the building ("Sealy Professional located at 330 Main Street, in the City of building"), Sealy > County of Austin, State of Texas, upon the following described real property, to-wit: block 42, oft the town of Sealy, in Austin County, Texas, according to the map or plat thereof, recorded in volume X, page 6, of the deed records of Austin County, Texas, reference to which records is herein made for all intents and purposes; And the Leased Premises being 591 square feet of area as reflected on the floor plan of such premises and made a part hereof for all intents and purposes. The Leased Premises is as suite #3. The net rentable area, as used herein, is defined as all floor areas within designated the outer perimeter walls and has been calculated on the basis of the forgoing definition and is hereby stipulated for all purposes hereof to be 591 Square feet, whether the same should be more or less as a result of minor variations for columns, projections, etc. necessary to the building. Suite #5 being 420 square feet will only be used for lessee's meetings or gatherings. 2. Term. The term of the Lease shall be for 1 year term, Commencing on the 1St day of April 2025 and continuing through 315t day of March 2026 and including providing that lessee with all conditions hereof and subject to the provisions relating to cancellation hereof. complies 3. Consideration. For the use of the Leased Premises during the above stated terms, lessee to pay the sum of $1050.00 Due and payable on or before the day 1St of each month and agrees regularly until the total consideration for the Leased Premises have been fully paid. Lessee continuing shall have no right to abate, reduce, or set off any rent or other debt hereunder expect where provided in this Lease. expressly 4. Utilities. Lessor covenants that the Leased Premises are served water, utilities. Lessee will not have to pay any of these utilities. by sewer, electrical and gas Housekeeping will clean weekdays. 5. Signage. Lessee shall have the right to erect signs on any portion of the Leased Premises to applicable laws, ordinances, and regulations. subject 6. Taxes. Lessor shall be liable for all taxes levied or assessed against the Leased Premises. 7. Security Deposit As condition precedent to this lease, Lessee has deposited with lessor a security deposit (equal to one month's rent) which is to secure the faithful performance by lessee of all of the terms, covenants and conditions of this lease by lessee. If lessee fails to pay any rents or other sums due and unpaid. If lessee breaches any of the terms, covenants and conditions of this lessor lease, may apply said deposit to any damages suffered by lessor. Said deposit shall be the property of lessor but the net balance of said deposit, if any will be paid to lessee when the lessee's obligations under this lease have been completely fulfilled. First month payment will include the carryover deposit of $650.00 from suite #8 and also carryover deposit of $300.00 from suite #5 lessee will pay the remainder balance of $250.00 8. Miscellaneous Provisions. (a) Amendments. This Lease constitutes the entire understanding and agreement of the parties as to the matters set forth in this Lease. No alteration of or amendment to this Lease shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. (b) Applicable Law and Venue. This Lease shall be governed by and construed in accordance with the laws oft the State of Texas, and all obligations of the parties created hereunder are performable in Austin County, Texas. Venue for any action arising under this Lease shall lie in the state district and county courts of Austin County, Texas. (c) Assignment. Lessee shall not assign this Lease or sublet the Leased Premises, or any part thereof without the consent of the Lessor in writing. (d) Caption Headings. Caption headings in this Lease are for convenience purposes only and are not to be used to interpret or define the provisions of the Lease. (e)Counterparts. This Lease may be executed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same document. (f) Severability. Ifa court of competent jurisdiction finds any provision of this Lease to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be SO modified, it shall be stricken and all other provisions of this Lease in all other respects shall remain valid and enforceable. (g)Time is ofthe Essence. Time is of the essence in the performance oft this Lease. Graphics: If Lessee would like a company sign installed outside on the billboard lessee should pay the Lessor $100.00. Payments should be payable to: Electron Beam Technology and sent to our mailing address 10014 Sussex Lane Houston, TX 77041. Dated: 04/01/2025 Lessors: Lessee: Electron Beam Technology Sealy Economic Development Corporation By: By: Lease Agreement for a CVB Item 5 SEALY-EDC> SEALY EXAS TEXAS.USA CITY COUNCIL AGENDA ITEM NO: 4 Discussion and possible action to approve an annual lease agreement(s) between the City of Sealy on behalf of the CVB and Electron Beam Technologies for the purpose of a Convention and Visitor's Bureau. SUBMITTED BY: City of Sealy & Sealy EDC MEETING DATE: March 24, 2025 STAFF REPORT DESCRIPTION Discussion and possible action to approve an annual lease agreement(s) between the City of Sealy on behalf of the CVB and Electron Beam Technologies for the purpose of a Convention and Visitor's Bureau. Staff is seeking approval for leased space for the Sealy CVB that will include a Visitor's Center space, one office space, and a separate shared meeting room with the Sealy EDC. ANALYSIS Sealy Convention and Visitors Bureau (CVB) Lease recommendation for the Sealy Professional Building Staff seeks approval to execute a lease agreement(s) on behalf of the Sealy CVB within the Sealy Professional Building, located at 330 Main Street, Suite 8, Sealy, TX 77474. This proposal includes: Suite #8 (Visitor Center & Office): Approximately 425 square feet at $1.53 per square foot, totaling $650.00 monthly, plus a one-time deposit of $650.00. This suite will serve as the primary office for the Sealy Visitor's Center. Suite #5 (Shared Meeting Room): Approximately 422 square feet at a discounted rate of $0.71 per square foot, totaling $300.00 monthly. This suite will provide a shared meeting space for the CVB for a shared rate of $150 monthly. Analysis Details Efficiency and Cost-tffectiveness: The combined office/meeting room lease cost of $800.00 per month ($4,800.00 for six months) presents a viable and affordable solution for the CVB, reducing the current 2024-2025 fiscal year budget expenditure for office and meeting space. Strategic Location: With the proposed lease, the CVB will maintain a presence within the Sealy Professional Building, where the EDC is also located, which offers a centralized hub for tourism and economic development inquiries. This creates a convenient "one-stop shop" for visitors and developers. Staff intends to create an opening connecting the CVB office and the EDC office. Improved Visitor Experience: Suite #8 will eventually be equipped as a professional Visitor's Center, which may include a power wall, merchandise, office furniture, storage, and interactive technology. The building's accessible parking and prominent location enhance the visitor experience. Lease Terms: The one-year lease, effective April 1st to March 31st (the dates may be adjusted as needed), includes electricity, water, and access to bathroom facilities. The building is accessible to the public Monday through Friday, 8:00 a.m. to 5:00 p.m. Building Improvements: We are negotiating with building management to replace carpeting, address wall maintenance, and create an opening in the wall to connect the CVB and EDC. Meeting Space Solution: Suite #5 provides a dedicated, shared meeting space between EDC and CVB, which addresses the limitations of Suite #8. The discounted lease rate for Suite #5 reflects a one-year commitment and intermittent meeting usage. Continuity: This lease allows the CVB and EDC to expand without relocating the EDC, ensuring continuity and minimal disruption to EDC. FINANCIAL IMPACT The financial impact to the CVB Rental line item would $800.00 per month with a shared meeting space. Square Feet Per Square Foot Monthly Lease Suite #8 425 $1.53 $6 650.00 Suite #8 One-time deposit Equal to one month $650.00 one-time payment Suite #5 420 $0.35 $ 150.00 Total Space 845 $0.95 $800.00 6 Month Total FY'25 $5450.00 RECOMMENDATION Staff recommends the Sealy City Council approve the lease agreement between the City of Sealy on behalf of the Sealy CVB and Electron Beam Technologies to establish a functional and strategically located Sealy Convention and Visitor's Bureau, office space, and meeting space. & / CVB Welcome Center CVB inner office access wall opening Shared meeting room Lease Agreement This lease agreement is made and entered into on this Ist day of April 2025 between Electron Beam Technology ofHarris County, Texas ("Lessor") and, The City of Sealy on behalf of the Convention and Visitors Bureau ("Lessee"), of Austin County, Texas provides as follows: 1. Leased Premises. Subject to and upon the terms, provisions and conditions hereinafter set forth, and each in consideration of the duties, covenants and obligations of the other hereunder, Lessor does hereby lease demise and let to Lessee and Lessee does hereby lease and take from Lessor those certain premises ("the Leased Premises") in the building ("Sealy Professional building"), located at 330 Main Street, in the City of Sealy > County of Austin, State of Texas, upon the following described real property, to-wit: block 42, of the town of Sealy, in Austin County, Texas, according to the map or plat thereof, recorded in volume X, page 6, of the deed records of Austin County, Texas, reference to which records is herein made for all intents and purposes; And the Leased Premises being 425 square feet of area as reflected on the floor plan of such premises and made a part hereof for all intents and purposes. The Leased Premises is designated as suite #8. The net rentable area, as used herein, is defined as all floor areas within the outer perimeter walls and has been calculated on the basis of the forgoing definition and is hereby stipulated for all purposes hereof to be 425 Square feet, whether the same should be more or less as a result of minor variations for columns, projections, etc. necessary to the building. Suite #5 being 420 square feet will only be used for lessee's meetings or gatherings. 2. Term. The term of the Lease shall be for 1 year term, Commencing on the 1St day of April 2025 and continuing through 315 day of March 2026 and including providing that lessee with all conditions hereof and subject to the provisions relating to cancellation hereof. complies 3. Consideration. For the use of the Leased Premises during the above stated terms, lessee to pay the sum of $800.00 Due and payable on or before the day 1St of each month and agrees regularly until the total consideration for the Leased Premises have been fully paid. Lessee continuing shall have no right to abate, reduce, or set off any rent or other debt hereunder expect where provided in this Lease. expressly 4. Utilities. Lessor covenants that the Leased Premises are served by water, sewer, electrical and utilities. Lessee will not have to pay any of these utilities. Housekeeping will clean weekdays. gas 5. Signage. Lessee shall have the right to erect signs on any portion of the Leased Premises to applicable laws, ordinances, and regulations. subject 6. Taxes. Lessor shall be liable for all taxes levied or assessed against the Leased Premises. 7. Security Deposit As condition precedent to this lease, Lessee has deposited with lessor a security deposit (equal to one month's rent) which is to secure the faithful performance by lessee of all of the terms, covenants and conditions of this lease by lessee. If lessee fails to pay any rents or other sums due and unpaid. If lessee breaches any of the terms, covenants and conditions of this lease, lessor may apply said deposit to any damages suffered by lessor. Said deposit shall be the of lessor but the net balance of said deposit, if any will be paid to lessee when the property lessee's obligations under this lease have been completely fulfilled. First month payment will include a deposit of $650.00. 8. Miscellaneous Provisions. (a) Amendments. This Lease constitutes the entire understanding and agreement of the parties as to the matters set forth in this Lease. No alteration of or amendment to this Lease shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. (b) Applicable Law and Venue. This Lease shall be governed by and construed in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Austin County, Texas. Venue for any action arising under this Lease shall lie in the state district and çounty courts of Austin County, Texas. (c) Assignment. Lessee shall not assign this Lease or sublet the Leased Premises, or thereof without the consent oft the Lessor in writing. any part (d) Caption Headings. Caption headings in this Lease are for convenience and are not to be used to interpret or define the provisions of the Lease. purposes only (e)Counterparts. This Lease may be executed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same document. (f) Severability. If a court of competent jurisdiction finds any provision oft this Lease to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be sO modified, it shall be stricken and all other provisions of this Lease in all other respects shall remain valid and enforceable. (g)Time is oft the Essence. Time is of the essence in the performance oft this Lease. Graphics: If Lessee would like a company sign installed outside on the billboard lessee should pay the Lessor $100.00. Payments should be payable to: Electron Beam Technology and sent to our mailing address 10014 Sussex Lane Houston, TX 77041. Dated: 04/01/2025 Lessors: Lessee: Electron Beam Technology Sealy Convention and Visitors Bureau By: By: L. Adjourn