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Home My WebLink AboutP.R. NO. 25181 MUSEUM OF THE GULF COAST CONTRACT FOR FY 2026-2027. City of o r t rtltur 7rxus www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: September 21, 2026 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Lynda Boswell, Director of Finance RE: P.R. 25181 —Museum of the Gulf Coast Contract for FY 2026-2027 Introduction: Request approval for the City Manager to execute a contract between the City of Port Arthur and the Port Arthur Historical Society for the purpose of funding the Museum of the Gulf Coast in the amount of$296,336 for the fiscal year 2026-2027. Background: The Port Arthur Historical Society operates the Museum of the Gulf Coast, a historical,cultural, and educational institution in the City of Port Arthur.The Museum preserves and presents the history and heritage of Port Arthur,the Gulf Coast region, and its communities and provides exhibits and programming that attract visitors to the area. The City has historically provided financial support to the Museum of the Gulf Coast through Hotel Occupancy Tax revenues. The Museum received $246,336.00 annually for Fiscal Years 2017-2018 through 2023-2024. The City subsequently increased the annual funding amount to $296,336.00,which was approved for Fiscal Years 2024-2025, 2025-2026, and 2026-2027. The proposed agreement will provide $296,336.00 to the Port Arthur Historical Society for Fiscal Year 2026-2027, subject to its terms and conditions. Section 351.101 of the Texas Tax Code governs the permissible uses of municipal hotel occupancy tax revenue and requires that expenditures promote tourism and the convention and hotel industry. The statute identifies specific purposes for which municipal hotel occupancy tax revenue may be expended, including certain historical preservation and museum-related activities. The Museum of the Gulf Coast serves as a historical and cultural attraction for visitors to Port Arthur and contributes to the City's tourism and visitor-attraction efforts. The proposed funding is therefore intended to support activities associated with the Museum that further the City's tourism, convention, and hotel industry objectives. Budget Impact: Funds in the amount of$296,336.00 are available in the Hotel Occupancy Tax Fund, Account No. 140-15-600-5470-00-20-000, Project No. H07904.OTH.00S, as approved in the Fiscal Year 2026-2027 budget. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 Cinc of or1 rthti� e.tus www.PortArthurTx.gov Recommendation: The attached Proposed Resolution No. 25181 authorizes the City Manager to execute a contract between the City of Port Arthur and the Port Arthur Historical Society for the purpose of funding the Museum of the Gulf Coast in the amount of$296,336 for the fiscal year 2026-2027. We recommend that the City Council approve it as presented. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P. R.NO. 25181 TNR-LYN 9/21/2026 RESOLUTION NO. A RESOLUTION APPROVING A CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND THE PORT ARTHUR HISTORICAL SOCIETY FOR THE PURPOSE OF PROVIDING FUNDING TO SUPPORT THE OPERATION OF THE MUSEUM OF THE GULF COAST FOR FISCAL YEAR 2026-2027 IN THE AMOUNT OF $296,336.00; PROVIDING FOR FUNDING FROM THE HOTEL OCCUPANCY TAX FUND,ACCOUNT NO. 140-15- 600-5470-00-20-000, PROJECT NO. H07904.OTH.00S WHEREAS, the City Council of the City of Port Arthur recognizes the Museum of the Gulf Coast, operated by the Port Arthur Historical Society, as a cultural and historical asset that contributes to the preservation and promotion of the history and heritage of the City of Port Arthur and the surrounding Gulf Coast region; and WHEREAS, the Museum of the Gulf Coast attracts visitors to the City of Port Arthur and provides educational, cultural, and historical programming and exhibits that contribute to tourism and the convention and hotel industry; and WHEREAS, Section 351.101(a) of the Texas Tax Code provides that revenue derived from a municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry and identifies specific authorized purposes for which such revenue may be expended,including historical restoration and preservation projects or activities and advertising and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums; and WHEREAS, the City Council has determined that the activities and expenditures contemplated by the Agreement with the Port Arthur Historical Society are intended to support authorized tourism and historical preservation and promotion purposes under Section 351.101 of the Texas Tax Code; and WHEREAS, the Museum of the Gulf Coast has historically received financial support from the City of Port Arthur,including funding in the amount of$246,336.00 for fiscal years 2017-2018 through 2023-2024, and funding in the increased amount of$296,336.00 was approved for fiscal years 2024- 2025, 2025-2026; and WHEREAS, the City Council has approved $296,336.00 in the Fiscal Year 2026-2027 budget for funding to support the Museum of the Gulf Coast, subject to the terms and conditions of the Agreement; and WHEREAS, the City Council finds that entering into the Agreement with the Port Arthur Historical Society to provide $296,336.00 in Hotel Occupancy Tax funding for Fiscal Year 2026-2027 serves a public purpose and is consistent with the authorized uses of municipal hotel occupancy tax revenue under applicable Texas law; and P. R. NO. 25181 TNR-LYN 9/21/2026 WHEREAS, sufficient funds are available in the Hotel Occupancy Tax Fund ACCOUNT NO. 140-15-600-5470-00-20-000,PROJECT NO.H07904.OTH.00S for the expenditure authorized herein. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT,the recitals contained in this Resolution are hereby found to be true and correct. THAT, the City Council finds and determines that the activities and expenditures supported by the Agreement are intended to directly promote tourism and the convention and hotel industry and fall within the authorized purposes for the expenditure of municipal hotel occupancy tax revenue under Section 351.101 of the Texas Tax Code. THAT, the City Council hereby approves the Agreement between the City of Port Arthur and the Port Arthur Historical Society, attached hereto as Exhibit"A", for the purpose of providing funding to support the operation of the Museum of the Gulf Coast for Fiscal Year 2026-2027 in an amount not to exceed $296,336.00. THAT, the funding authorized herein shall be paid from the Hotel Occupancy Tax Fund, Account No. 140-15-600-5470-00-20-000, Project No. H07904.OTH.00S, in accordance with the terms of the Agreement and applicable law. THAT, a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of October, 2026, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Charlotte M. Moses, Mayor ATTEST: Christe Whitley Ned, City Secretary APPROVED AS TO FORM• Roxann Pais Cotroneo, City Attorney APPROVOR ADMINISTRATION: Ett Ron Bui !.* Manager AVAIL BILITY OF FUNDS: yn Boswell, Finance Direct, r Exhibit "A" THE STATE OF TEXAS * KNOW ALL MEN BY THESE PRESENTS; COUNTY OF JEFFERSON * AGREEMENT THIS AGREEMENT,made and entered into at Port Arthur, Jefferson County, Texas, between the PORT ARTHUR HISTORICAL SOCIETY (the "Society"), non-profit corporation, and the CITY OF PORT ARTHUR, TEXAS (the "City"), a municipal corporation; WITNESSETH: WHEREAS, the PORT ARTHUR HISTORICAL SOCIETY owns the building located at 700 Procter Street in the City of Port Arthur, Texas, for the operation of an historical museum known as THE MUSEUM OF THE GULF COAST (the "Museum"), with a purpose to collect,preserve,protect and display the history of Port Arthur and the Gulf Coast; and WHEREAS,the PORT ARTHUR HISTORICAL SOCIETY, and the CITY OF PORT ARTHUR, in recognizing the importance of said museum and the benefits to be derived therefrom by patrons of the SOCIETY, the students, faculty, and staff of the State College, and the citizens and visitors to the preservation of the history of the City. Said museum is a direct enhancement of the hotel and tourism industry and it contributes greatly to the economic development of downtown have jointly resolved to enter into an agreement to provide operating funds for said facility; and WHEREAS,the City Council deems the activities of Museum of the Gulf Coast to be consistent with the provisions of Section 351.101 of the Texas Tax Code as it directly promotes tourism and the convention and hotel industry. WHEREAS, the CITY OF PORT ARTHUR has agreed to provide operating funds for the museum for the fiscal year in a sum not to exceed $296,336 said appropriation having been included in the City budget for the 2026-2027 fiscal year; and WHEREAS, the remainder of the operating funding will be provided jointly by the PORT ARTHUR HISTORICAL SOCIETY; NOW,THEREFORE, in consideration of the mutual promises, covenants and agreements herein set forth, it is agreed between the parties as follows: THAT the PORT ARTHUR HISTORICAL SOCIETY agrees to operate the facility known as THE MUSEUM OF THE GULF COAST for the benefit of the State College, the City and the public with the operating funds for fiscal year 2026-2027 being provided jointly by the PORT ARTHUR HISTORICAL SOCIETY, and the CITY OF PORT ARTHUR and any other entities or persons that agree to provide a portion of said funds. THAT, the CITY agrees to fund the PORT ARTHUR HISTORICAL SOCIETY a sum not to exceed $296,336.00 for the 2026-2027 fiscal year(October 1, 2026 through September 30, 2027). Provided however, said sum shall be reduced if any other entities or persons in addition to the CITY, the SOCIETY and COLLEGE agree to provide a portion of said operating costs. THAT, the SOCIETY hereby agrees to use the funds payable hereunder from the CITY in accordance with the budget attached hereto and incorporated herein as Exhibit "A-1" and said funds shall be used only for public purposes. THAT, the SOCIETY shall keep books of account on all Museum expenses and revenues and shall submit a financial report to the CITY reflecting all receipts and disbursements by the SOCIETY to operate the Museum. THAT the City Manager or his designated representative shall have, upon reasonable notice, the right to inspect all books and records of the SOCIETY. THAT upon termination of the operation of the Museum or dissolution of the PORT ARTHUR HISTORICAL SOCIETY,the Society shall deliver to the City all funds paid under this contract that have not been expended in accordance with this contract. Signed and agreed to on the day of , 2026 PORT ARTHUR HISTORICAL SOCIETY By President Signed and agreed to on the day of , 2026. CITY OF PORT ARTHUR, TEXAS By Ron Burton, City Manager Exhibit A-1 Museum of the Gulf Coast Operating Budget 2026-2027 Monthly Annually Accounting and Booking Fees 300.00 3,600.00 Advertising 1,750.00 21,000.00 Alarm & Security 3,166.67 38,000.00 Audit Expenses 1,250.00 15,000.00 Automotive Expenses Mileage 41.67 500.00 Card Processing & PayPal Fee 500.00 6,000.00 Dues and Subscriptions 54.17 650.00 Education & Children's Programs 1,000.00 12,000.00 Equipment Rental & Lease 191.67 2,300.00 Inductions/Exhibits 1,250.00 15,000.00 Insurance Expense 5,708.33 68,500.00 Janitorial Supplies 333.33 4,000.00 Lawn Maintenance 50.00 600.00 Miscellaneous 166.67 2,000.00 Newsletters 208.33 2,500.00 Payroll Expenses 30,639.01 367,668.07 Postage 333.33 4,000.00 Printing and Copying 208.33 2,500.00 Public Relations 166.67 2,000.00 Repairs and Maintenance 2,750.00 33,000.00 Supplies (Office, Curator, Museum) 833.33 10,000.00 Taxes and License 516.67 6,200.00 Telephone/Internet 500.00 6,000.00 Utilities (Electric, Water, Gas) 3,000.00 36,000.00 TOTAL 54,918.17 659,018.07 Approved July 23, 2026 Museum of the Gulf Coast Operating Budget 2026-2027 PROJECTED SOURCES OF REVENUE Donations / Memorials 45,000.00 Grants 68,500.00 Facilities Rental 17,124.07 Gala Income 68,000.00 Admissions 30,000.00 Membership Dues 27,000.00 Annual Giving 20,000.00 Gift Shop Net Income 60,000.00 Endowment Income 24,000.00 TOTAL 359,624.07 City 296,336.00 45.0% Society 362,682.07 55.0% Total 659,018.07 Approved July 23, 2026 op Pompeiian Villa Operating Budget 2026-2027 Revenue City of Port Arthur 19,800.00 Admission Fees 1,600.00 Insurance Villa - Wind and Other - TOTAL 21,400.00 Expenses Alarm and Security 123.90 1,486.80 Janitorial Supplies / service 41.67 500.00 Repairs and Maintenance 166.67 2,000.00 Telephone/Internet 164.56 1,974.72 Utilities 1,083.33 13,000.00 Insurance Villa - Wind and Other 1,001.92 12,023.00 TOTAL 2,582.04 30,984.52 Unmet revenue -9584.52 Approved July 23, 2026