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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 07/23/2018 (2)Lodging Tax Advisory Committee Agenda Mission: Promote the City as a destination to increase tourism and business development Unless otherwise noted, the Lodging Tax Advisory Committee meets every other Month on the 4rd Monday at 4:00 p.m. in Centennial North & South Conference Room, 400 West Gowe Street, Kent WA 98032. For information on the above item(s), or upcoming meetings contact Rhonda Bylin (253) 856-5754. Committee Members: Bill Boyce, Chair, Tim Higgins, John Casey, Barbara Smith, David Kwok, Andrew Hutchison, Andrea Keikkala, Bryan Powell City Staff: Kurt Hanson, Rhonda Bylin, Michelle Wilmot MEETING LOCATION Centennial Center First Floor Conference Room 400 W. Gowe St. Kent, WA July 23, 2018 AGENDA 4:00 p.m. Item Description Action Speaker(s) Page Time 1.Welcome & Introductions NO Bill Boyce 1 min. 2.Approval of April 18, 2018 Special Meeting Minutes YES Bill Boyce 1 1 min. 3.Budget Update NO Barbara Lopez 2 5 min. 4.USSSA Dual Major NIT Event - Softball YES Strojan Kennison 5 10 min. 5.The Gut Check Challenge– Washington State YES Phillip Pine 8 20 min. Wrestling Foundation High School Tournament 6.LTAC Process Revamp Discussion NO Michelle Wilmot 14 45 min. Bill Ellis 7.Vacant LTAC Position ???NO Kurt Hanson 5 min. 8. Adjournment Lodging Tax Advisory Committee April 18, 2018 Minutes Kent, Washington Approval Pending Page 1 of 1 Date: April 18, 2018 Time: 3 p.m. Place: ECD Large Conference Room/Conference Call Assembly Attending: By Phone: Committee & Chair; Bill Boyce, Andrew Hutchison, Barbara Smith Andrea Keikkala, Tim Higgins, Andrew Casey, David Kwok attended briefly but did not vote In Conference Room: City Staff Michelle Wilmot and Rhonda Bylin Agenda: Special Meeting to Approve Expenditure of LTAC $’s for Visit Kent logo golf balls to include w/Washington Invitational Golf Tournament Promotional Swag 1. Reason for Special Meeting Committee Chair Boyce provided synopsis of what occurred at the previous meeting relating to the proposal to grant JayRay funds to create a Welcome Gift Basket for tournament participants staying in the designated Tournament Hotel. Committee thought the expenditure too much and determined a scaled back gift would be more palatable. Michelle worked with Riverbend Golf course and has a firm quote on a Srixon brand ball imprinted with the VisitKent.Com logo. 2.Roll Call Rhonda Bylin completed roll call, see “Attending:” above. 3. LTAC Committee Authorize Economic Development to Purchase Golf Balls- Further discussion including that more golf balls than requested in quote might be needed. And also a way to further emphasize the sponsorship of the balls via a greeting attached to the sleeved balls. Chairperson Boyce moved to approve the request for a golf ball purchase NTE $800.00 and Andrea Keikkala, seconded. Motion passed with 6 approving. 4. Discussion of and Motion to approve an additional expenditure NTE $500 for custom greeting by JayRay to include with the balls. Andrea Keikkala moved and John Casey seconded. Motion passed with 6 approving. 5. Next Meeting May 21, 2018 Meeting adjourned @ 3:35 pm Submitted Rhonda Bylin, LTAC Secretary 1 2015 2016 2017 2018 2018 2018 Actual Actual Prelim. Actual Adopted Budget YTD Est. Actual Beginning Fund Balance 371,803 394,516 469,386 457,557 457,557 457,557 Revenues Lodging Tax 279,466 293,347 312,980 286,110 92,494 286,000 Miscellaneous Income 411 1,512 3,995 500 2,818 1,500 Total Revenues 279,878 294,859 316,975 286,610 95,312 287,500 Expenditures Services & Charges 10,000 10,311 16,681 17,250 3,182 17,250 Marketing 144,977 166,191 208,623 215,500 97,887 215,500 Projects & Events 23,665 25,000 25,000 75,000 27,800 75,000 Chamber 18,500 18,500 18,500 25,000 6,250 25,000 ShoWare Branding & Marketing 60,022 (13) 60,000 60,000 - 60,000 Total Expenditures 257,164 219,989 328,804 392,750 135,120 392,750 Change in Fund Balance 22,713 74,870 (11,830) (106,140) (39,808) (105,250) Ending Fund Balance 394,516 469,386 457,557 351,417 417,749 352,307 Lodging Tax Operating Fund Report as of May 31, 2018 2 2012 2013 2014 2015 2016 Preliminary 2017 2018 Variance % of Change January 12,759 13,395 13,336 16,651 17,552 18,474 18,552 78 0.4% February 10,621 10,886 12,550 13,424 14,410 15,163 18,027 2,864 15.9% March 14,020 11,641 13,004 13,870 16,517 17,130 16,513 (617) -3.7% April 12,828 13,023 14,787 14,512 17,505 19,187 16,030 (3,158) -19.7% May 14,285 14,764 16,742 17,421 18,210 21,895 23,372 1,477 6.3% June 13,681 14,664 15,636 17,213 21,337 21,174 July 15,267 17,290 20,058 22,598 23,960 25,904 August 5,202 23,152 26,947 34,809 33,870 36,793 September 25,468 28,734 33,976 38,364 38,142 39,246 October 25,742 31,628 35,047 37,780 39,611 41,791 November 19,629 19,525 24,710 29,028 31,007 30,307 December 18,469 18,916 22,583 23,796 20,474 25,916 Year to Date 187,971$ 217,618$ 249,377$ 279,466$ 292,594$ 312,980$ 92,494$ 644$ 0.2% - % Change:2.8%15.8%14.6%12.1%4.7%7.0% 3 THIS PAGE IS LEFT INTENTIONALLY BLANK 4 2018 Event or Tourism Facility Lodging Tax Expenditure Report Form Form is due: March 01, 2018 Please return to: Julie Pulliam at jpulliam@kentwa.gov 1. Dates: June of 2018 (If this is a yearly agreement use year span) 2. Organization: USSSA of Washington - Strojan Kennison 3. This report covers: Conference USSSA Easton Dual Major NIT Event (Your event, contract agreement or ask to the committee) 4. Facility used:Hogan Park @ Russell Road Park 5. Total City of Kent Lodging Tax funds allocated to this event or facility $7,500.00 Methodology*: Website, Social Media, Word of Mouth, Structure and consistency Methodology: TOURNAMENT ENTRIES - New format being implemented to increase the amount of entries. Methodology: TOURNAMENT ENTRIES - Using new format to increase lodging. 6. Projected total event attendance or user count: 5000-7500 Actual attendance •Visitor Center Walk In-Traffic: TBD Visitor Center Walk In-Traffic: •Web and Phone Inquiries: 1,000 Web and Phone Inquiries: •Brochure Distribution: Group Leads: 35k Brochure Distribution: Group Leads: •Web visits: 624,000 Different Visitors Web visits: 7. Projected total of travelers 50 or more miles: 1150-1300 8. Projected total of travelers from another state or country: 500-750 5 Methodology: WE WILL USE THE FOLLOWING TACTIC: TO PLAY, YOU MUST STAY IN KENT. THIS SHOULD ASSIST WITH FILLING ALL CITY OF KENT HOTELS & MOTELS. 10.Any other information that demonstrates the impacts of the festival, event or tourism-related facility/activity. (please describe): THE CITY OF KENT FOOD & BAR INDUSTRY WILL BE EXTREMELY BUSY Submitted by: January 21, 2018 Date: January 21, 2018 **OUR NUMBERS ARE BASED OFF BEING IN CHARGE OF THE EVENT THE LAST SEVERAL YEARS** 9. Projected total of attendees who stayed overnight: 620-750 Paid accommodations: 475-725 Unpaid: 30 Actual total of attendees who stayed overnight: Paid accommodations: Unpaid ! 2 6 THIS PAGE IS LEFT INTENTIONALLY BLANK 7 1. Who else is funding this project? We are self funded 2. What is the total budget for this projeç¡7 ^,$79.OOO outside of facilities cost 3. How does your project fit with the goals of the Lodging Tax Advisory Committee?¡ CreatingPartnerships. Branding Kent as a Destination. Sports Commission We meet all three goals by creating partnerships with the local business community by bringing in outside the area visitors to our weekend wrestling tournament. 4. How many night stays do you anticipate generating from your project? 257 nights as a base number our first year and then build onto that, Project Name:. The Gut Check Project Background: Top 2O National caliber High school wrestling tournament Project Leader: Phillip Pine, WSWF Director Contact email : ptpine@centurytel,net Contract phoq 36O-47O-,f\443 sisnature, i%r@, ,U;*- t:zo-za Other individuals involved in writing and/or implementing this grant: Name: Marc Kaye Title: Tournament Director Contact: 206-300-0706 Email : marcglobal 1@yahoo,com Amount requested: $3O,OOO DEADLINE FOR APPLYI PROJECT DESCRIPTION On a separate page(s), briefly describe the project you are proposing in two parts. In the first part, please briefly (in 250 words, or less) provide and overview of your project, (1) including how the Lodging Tax Advisory Committee's goals will be met, (2) how the funds will be used and how you will be able to track hotel stays and what your methodology for tracking will be. Catalogs, pictures or brochures are appropriate to demonstrate equipment, supplies or other items(s) requested. In the second part, please specifically address the following in your proposal: How many room nights do you expect to collect? Have you asked for money in the past? What were the results? How many overnight stays did the event create? : July 7, 2078 Page2 8 ) Where and when will the project take place? What will benchmark the projects progress? Please limit your entire application response to two pages. FINAL REPORT If your request is granted for funding from the Lodging Tax Advisory Committee (LTAC) you will be expected to provide at the next LTAC meeting after your event a full report on your final project with the number of stays created. And a completed 20L5-20t6 Event or Tourism Facility Lodging Tax Expenditure Report Form. Attached: Form ! Approved for funding E Declined funding ) Page 3 9 YlrsililGToN SrÆ W¡tsillr6 foùftDiltolt PROJECT DESCRIPTION The Washington State'Wrestling Foundation's purpose is to promote and to help support college wrestling in our state. Our first project was starting a high school wrestling toumament called "The Gut Check Challenge". During the five year history of the "Gut Check", it has become recognized as one of the premier wrestling events in the country. Top high school teams from across WA state as well as OR, AK, TX and Canada competed this past year. As the event grows in stature, we expect more states to be represented. College teams have also competed against each other during the Gut Check. The tournament has been held in Bremerton at the Kitsap County Pavilion the past three years. If LTAC funds were awarded, we could afford to move the event to the ShoWare Center. We meet all three Kent LTAC goals of creating local partnerships, branding Kent as a destination, arrd atie-in with the sports commission through an athletic event. As the tournament has gained entrants, hotel night stays have also increased each year. During the 2018 Gut Check in Bremerton, we had four official hotel sponsors (as well as three additional overflow hotels). Those hotels all used a special discounted event code which we used in our advertising. To track room nights, we have weekly communication with hotel sales and management on reservation progress. W'e use discount codes to properly track incoming guests and area support over the course of the event. We then compare those numbers with those reported to us by the schools. IIow many room nights do you expect to collect? We had 257 confirmed room nights this past year and expect to have 300+ for 2019. Have you asked for money in the past? We have not requested money from LTAC before. At our other site, in lieu of monies from hotels, we ask for comped rooms for our volunteer staff that travel into town for the event. Hotels can and will donate directly as well. We did ask Kitsap Public Facilities District for funds, but they would only reimburse us for direct advertising costs and declined to give any money this past year. IIow many overnight stays did the event create? Thursda¡ Friday and Saturday nights are all overnight stays during the course of our event. Where and when will the project take place? ShoWare Center, Kent, WA. January kd,4th and 5th. Please include start and completion dates? January 3'd - January 5'h,2019 What will benchmark the projects progress? The financial support and partnering of The Kent Chamber of Commerce, The LTAC Board, The ShoV/are Center, local corporate and business support, team fees and door eamings. 10 ' CreatingPartnerships ' Branding Kent as a Destination ' Sports Commission 1. Who else is funding this project? Various sponsors 2. What is the tstal bLrdget for this prE'eet?,$t0,00,Oi 3. How does your project fit with the goals of the Lodging Tax Advisory Committee?' CreatingPartnerships ' Branding Kent as a Destination ' Sports Commission The Kent Wrestling Showdown is a new event that will fit well with the city and the spo'rts 't4qeflqe,,that has,:been Ee,ne'rated'w.it.h vrrftat hqppens ri,n frhe city of Kent. We will be inviting at'leastS out of town high school wrestling teams so they can see what a great sports destination the city of Kent is. Since this is a new event, this fits perfectly with what the sports commission would like to see. 4. How many night stays do you anticipate generating from your project? 50-60 room nights from the or."lt of town teams, Project Name: Kent Wrestling Showdown Project Background: This is the inaugural Kent Wrestling Showdown. Project Leader: Name and Title: Steve Contact email:mcast.net Contract phone: 2 029 Signature other individ'ual"s involved in wrriting.and/or inrplenr.erlrti.r.lg thls grant: Nam Nam Nam e' Kvlc lnneq Title: Coach Title: Title: Contact: Contact: Contact;F' Amount requested: $5'OOO DEADLINE FORAPPLYING (please circle one): July 1, 2017; July 1,2018 or September 3O, 201.7; Sep-Eember 30, 20L8- PageZ 11 PROJECT DESCRIPTION On a separate page(s), briefly describe the project you are proposing in two parts. In the first part, please briefly (in 250 words, or less) provide and overview of your project, (1) including how the Lodging Tax Advisory Committee's goals will be met, (2) how the funds will be used and how you will be able to track hotel stays and what your methodology for tracklngt wlfifr. be. CataloErs, plctures or brochures are appropri'ate to demonstrate equipment, supplies or other items(s) requested. In the second part, please specifically address the following in your proposal: How many room nights do you expect to collect? Have you asked for money in the past? What were tlre r.esu{ts? filow.many overnight stays did the event create? 'Where and whe'r"l will the'p-r:oject take place? Please inclr.rde'staft and co,r.np{et'ron dates? What will benchmark the projects progress? Please limit your entire application response to two pages. FINAL REPORT trf y,our reeir"rgst is grrantedi for funding. from, the Lodgjhg, Tax Advisotiy Cornrntiittee (LTAC) you will be expected to provide at the next LTAC meeting after your event a full report on your final project with the number of stays created, And a completed 2015-2016 Event or Tourism Facility Lodging Tax Expenditure Report Form. Attached: Form Agp,roved'for'fu 'nd i'nq Declined fundin Page 3 12 OVERVIEW OF GAME TIME EVENTS PROJECTS: Game Time Events will be behind the inaugural Kent Wrestling Showdown. The date is still to be determined. This is a big-time high school wrestling event that will be held at the ShoWare Center in either December or January. lt will be a one-day event featuring between 16 and 24 teams. With high school wrestling being such a popular sport in the Kent area, it is only nnturalltt\at the city host a hig-tinrre wrestling tournarRent, Plans eall fon at least 7 wnesling rqql.ats to be set up in the ShoWare Center. Teams would get a chance to wrestling in two dual meets throughout the day, giving all wrestlers two matches each. We might also work with Highline College and its wrestling team to compete on a separate mat against another college team. The goals for the committee will be met with an several out of town teams in town for our inaugural wrestling tournament with many people visiting the city of Kent for the first time. The funds will be used in a variety of ways, renting the ShoWare Center, renting wrestling mats, staffing, food, lnsur'anm and banners f,o,r sorne €pans.rs. We witl.tradk'hote'l noor,ns wLrth tlrre vari,ous hoiels the teams wilt stay at and we wlll know'how many rooms from the teams themselves they will be using when they are in town. HOTEL ROOM NIGHT INFORMATION: For our first event we expect at least 7-8 out of area teams that will be staying in Kent area hotels. That means one nights of at least 6-8 rooms per team and anywehre from 45-70 room nights for this event. Maybe more when you count in parents, family ind friends who might travel for the event. Since this is a new event, this is the first time we are asking for money -money we need to get the event going. 13 1  To: Councilmember Bill Boyce, Chair, Lodging Tax Advisory Committee and Lodging Tax Advisory Committee Members From: Michelle Wilmot, Economic Development Manager (x5709) Bill Ellis, Chief Economic Development Officer (x5707) Date: July 16, 2018 Subject: DRAFT proposal to formalize Lodging Tax Committee operations structure and grant award funding cycle With direction by the City Council’s Economic and Community Development Committee, City staff proposes the establishment of a more structured operation and formal grant funding process for the Lodging Tax Advisory Committee (LTAC). This proposal offers several benefits including: Increased publicity about the LTAC grant program, thus opening the opportunity to a broader pool of applicants Transparency about the use of lodging tax revenue; exceptionally important in today’s political environment The ability to play a role in defining the character and trajectory of Kent’s economic growth by promoting Kent as a place with an attractive economic climate, welcoming new business opportunities, building on Kent’s local assets, resources and innovation Opportunity for the pro-active recruitment of business events and conferences related to the Kent Industrial Valley’s concentration of advanced manufacturing companies, with emphasis on the aero and outer space sectors Ability to acquire electronic business promotion and recruitment tools to reinforce Kent’s position as a center of advanced manufacturing and aero and outer space innovation Provides a more strategic role for committee members; with a well-publicized grant application cycle, LTAC members will assess and select awards from among multiple applicants, making it a competitive, rather than an ad hoc selection process Provides greater visibility for Kent City Councilmembers who typically approve grant applications via the Council’s Consent Calendar; having a 14   2    broad array of projects to approve aligns with state law requirements for the LTAC committee to advise the Council on how lodging tax money is spent  Allows for accurate and timely reporting of results as required by state law. Proposed Changes 1. Establish an Annual Funding Cycle a. An annual funding cycle provides better visibility of the grant opportunities available over the course of a year, allowing a competitive, rather than ad-hoc process, and strategic decision-making by LTAC members b. While state law does not require it, legal counsel at the Municipal Research Services Center believes an annual application process is a more fair and competitive use of LTAC funds, and more transparent c. By better publicizing of the grant opportunity, the City, and its LTAC members will generate positive awareness of the innovative companies doing business in Kent (with the goal of attracting more of the same) while also supporting valuable community activities/events d. Incentivizes committee member participation with more impactful decision-making and influence on lodging tax expenditures e. Provides intensive, but strategic work for committee members during the funding cycle and grant selection process; no additional meetings would be necessary unless emergent opportunities arise f. Allows better coordination of publicity efforts among stakeholders and partners with advance knowledge of funded projects and/or activities g. Provides predictability of expenditures from a financial planning and budgetary perspective and allows alignment with the City’s budget process i. Proposed funding cycle for 2018-2019 - Because applications have been received for funding in 2018, the cycle outlined below will make current the awards process for this year and establish the awards process for 2019: 1. September 1, 2018 – Make Lodging Tax fund applications available a. Promote via newspaper, website, social media, and written notification to previous grant recipients 2. September 30, 2018 – Lodging Tax fund applications due 3. October 2018 – LTAC review and recommendations 4. November 2018 – City Council approval of recommendations 5. December 2018 – Contracts prepared, finalized, approved ii. Proposed funding cycle for 2020, and if necessary, for catch- up unanticipated opportunities/applications in 2019 – The following funding cycle aligns with the City’s budget process: 1. March 1, 2019 – Make Lodging Tax fund applications available 15   3    a. Promote via newspaper, website, social media, and written notification to previous grant recipients 2. April 30, 2019 – Lodging Tax fund applications due 3. May 2019 – LTAC review and recommendations 4. June 2019 – City Council approval of recommendations 5. July 2019 – Contracts prepared, finalized, approved 2. Set a Target Grant Award Budget each year Based on Forecast a. Setting a target budget for award allocations allows better publication of the opportunity available and incentivizes a broad array of applicants b. Ensures that Lodging Tax Funds are spent and used to promote Kent while also allowing committee members flexibility to consider previously unforeseen grant opportunities i. To allow flexibility, and provide opportunity to support emergent opportunities, the committee could set aside one quarter of its target grant budget for applications outside of the grant cycle c. Proposed grant budget for 2018-19 - $375,000 i. The LTAC grant for the 2018-19 cycle is substantial given the lack of previous applications and rollover of remaining funds from previous years ii. This proposed grant budget would still leave $125,000 for unanticipated opportunities that arise outside of the grant funding cycle d. Proposed grant budget for 2020 - $210,000 i. This grant budget aligns with average annual projected revenues of $280,000 while still leaving funds in place for emergent opportunities 1. This figure has potential to be higher pending roll-over of funds set aside for emergent opportunities 3. Establish Project Evaluation Criteria State law defines promoting tourism as: “activities, operations, and expenditures designed to increase tourism, including, but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events, conferences and festivals designed to attract tourists.” a. Proposed Grant Funding Criteria – 1. Leisure and Business Tourism Promotion - Does the project/event meet the basic state requirements for tourism promotion? Promote a positive image for the City, both as a leisure and business destination? Attract visitors, build new audiences, and encourage tourist or business expansion? Does the project increase awareness of the City’s amenities, business attributes, its 16   4    workforce, history, facilities and natural environment? Does is support regional business development and tourism planning? 2. Benefit to the community - How will this project/event benefit Kent? Does this project benefit the overall economics of the community, rather than specific segment or interest? 3. Innovation - Is this project unusual or unique? Does it promote Kent as an innovation hub from a business standpoint and reinforce Kent’s positive attributes? Does it move an existing program in a new direction? 4. Community support - Does the project/event have broad-based community appeal or support? What is the evidence of need for this project/event in the city? 5. Evidence of partnerships - What kind and degree of partnership does the project/event exhibit? Volunteer involvement, interjurisdictional, corporate, business and/or civic organization support? 6. Other funding sources - What other revenue sources will be used to support this project/event? 7. Previous and replacement funding - Is this funding request for a new project/event or is to continue or expand an on-going project/event? 8. Scale of project - Is the project of a scale suitable for this funding program? 4. Establish Grant Funding Guidelines Establishing guidelines for grant funding in advance takes the guesswork out of the decision-making process. Proposed guidelines include the following: a. Organizations may submit more than one application each year, but there must be a separate application form for each project or activity. b. Grants application requests must be for a minimum of $3000 and not constitute more than half of the overall project/activity budget. Setting a higher application amount minimizes the paperwork required to contract, track and report results, while also elevating the scale, and impact of the grant expenditure and results. c. Requests for capital projects or facilities requesting operating funds must be located inside the City limits. This restriction does not apply to destination marketing proposals. d. Special events/conferences/festivals: i. Must be sponsored by a non-profit or the City of Kent ii. Grant funds can be used for operational expenses, including marketing and promotion, except for salaries and/or benefits for event organizers, or other key staff and insurance. Funds may be used for security staff, traffic control, etc. iii. Grant funds must be spent within the calendar year. iv. For existing events or conferences previously funded with LTAC dollars (in operation for more than three years), proposals must be for expansion or enhancements to the event or conference and must be clearly defined and measurable. 17   5    e. All events and activities funded with City of Kent LTAC funds must list the City of Kent as a sponsor f. All grant recipients will feature the Kent marketing logo and web address (Visit Kent) for leisure and entertainment projects or the City of Kent logo and web address for business-related event marketing and promotional materials. 5. Establish Contracting Requirements Given the mandatory reporting requirements by the state, the City puts itself at risk from an auditing perspective. Organizations receiving Lodging Tax funds, apart from the City itself, are required to enter into a contract with the City of Kent. The contract will cover project or activity goals, definition of eligible costs, specification of payment procedures, limits of City liability and legal requirements. a. Funding is provided on a reimbursable basis and copies of receipts must be included with the reimbursement request. b. Reimbursements will be made within approximately 30-days of submittal of request and receipts. c. Costs incurred prior to the grants being approved by the City Council and execution of the contract are not eligible for reimbursement. d. The applicant must have liability insurance, in an amount commensurate with the risk of exposure of the project, and which names the City of Kent as an additional insured. e. Funds awarded for year-round operation of a program or facility will be dispersed quarterly. 6. Require Reporting as a Contractual Condition Each funded applicant must submit a final report and invoice with backup receipts at the end of the project/activity/event. Grantees are required to report the actual number of people travelling for business or pleasure in any of the following situations: a. Travel away from residence or business and staying overnight in paid accommodations b. Travel 50 miles or more one way from their residence or business for the day or overnight c. Travel from another country or state outside of their residence or business. 18