HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 08/08/2018 (2)
Unless other noted, the Lodging Tax Advisory Committee meets every other month
on the fourth Monday at 4 p.m. in Centennial North and South Conference Rooms,
400 West Gowe Street, Kent, WA 98032.
For additional information please contact Rhonda Bylin at 253-856-5457 or via
email at RBylin@KentWA.gov.
Any person requiring a disability accommodation should contact the City Clerk’s
Office at 253-856-5725 in advance. For TDD relay service all Washington
Telecommunications Relay Service at 7-1-1.
Lodging Tax Advisory Committee
Agenda
Committee Members: Bill Boyce, Chair
Erin Buck - John Casey - Tim Higgins - David Kwok - Bryan Powell
City Staff: Kurt Hanson – Rhonday Bylin – Michelle Wimot
Wednesday, August 8, 2018
2:30 p.m.
Item Description Action Speaker Time
1. Call to Order Chair 01 MIN.
2. Roll Call Chair 01 MIN.
3. Changes to the Agenda Chair 01 MIN.
4. Committee Operations & Grant
Ward Funding Cycle
YES Michelle Wilmot 15 MIN.
5. Adjournment Chair 01 MIN.
ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE
Kurt Hanson, Economic and Community Development Director
220 Fourth Avenue S,
Kent, WA 98032
253-856-5454
DATE: August 8, 2018
TO: Lodging Tax Advisory Committee
FROM: ECD - Economic Development
SUBJECT: Formalize Lodging Tax Committee OperationsStructure &
Grant Award Funding Cycle
MOTION: Implement Operations Structure and Biannual Funding Cycle as
outlined in the attached Proposal.
SUMMARY: With direction by the City Council’s Economic and Community
Development Committee, City staff proposes the establishment of more structured
operations to include a biannual funding cycle, tighter controls on dispersal of funds
to award recipients, and increased reporting requirements of same.
BUDGET IMPACT: None
SUPPORTS STRATEGIC PLAN GOAL:
Innovative Government, Sustainable Services
RECOMMENDED BY: Kurt Hanson
ATTACHMENTS:
1. Special Meeting Notice LTAC Restructuring Proposal (PDF)
2. 3rd DRAFT LTAC Proposal_ (PDF)
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City of Kent
NOTICE OF SPECIAL MEETING
Lodging Tax Advisory Committee
VOTE ON PROPOSED CHANGES TO LTAC OPERATIONS STRUCTURE & GRANT
AWARD FUNDING CYCLE
NOTICE IS HEREBY GIVEN that the Lodging Tax Advisory Committee will hold
a special meeting for the purpose of voting on formalizing the operations and
funding cycle of the committee. The meeting will be held in the Economic and
Community Development Large Conference Room, Centennial Center Building
3rd floor, 400 West Gowe Street, Kent, Washington on Wednesday, August
8 at 2:30 p.m. Members will vote by phon e and no other committee business
will be discussed at this meeting. Members of the public are welcome to attend
the meeting or join the conference call using the instructions posted below:
Participant - Join an On-Demand Plus Conference Call:
1 - Dial the toll-free On-Demand Plus Number: 1-800-406-9170
2 - Enter the Room number: 1868359 and press #
3 - You will be placed directly into the meeting if the moderator has already joined.
If the moderator hasn't joined, you will be placed on hold for up to 10 minutes.
Any person requiring a disability accommodation should contact Rhonda Bylin
in advance at 253-856-5457. For TTD relay service, call the Washington
Telecommunications Relay Service at 800-833-6388.
4.a
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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: August 7, 2018
Subject: Third 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 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
4.b
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• Allows for accurate and timely reporting of results as required by state law.
Proposed Changes
1. Establish a Biannual Funding Cycle
a. A twice-yearly 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. 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
c. Incentivizes committee member participation with more impactful decision-
making and influence on lodging tax expenditures
d. Provides intensive, but strategic work for committee members during the
funding cycles and grant selection process; no additional meetings would
be necessary unless emergent opportunities arise
e. Allows better coordination of publicity efforts among stakeholders and
partners with advance knowledge of funded projects and/or activities
f. Provides predictability of expenditures from a financial planning and
budgetary perspective and allows alignment with the City’s budget process
g. The LTAC may opt to move to an annual funding cycle in 2020 depending
on response after the grant process is restructured.
i. First 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 2018 and establish the first funding
cycle 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. Second funding cycle for 2019
1. March 1, 2019 – Make Lodging Tax fund applications available
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
4.b
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2. Set a Target Grant Award Budget 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 will set aside half of its target grant
budget for the first funding cycle, 30 percent for the second funding
cycle, and 20 percent for unforeseen opportunities outside of the
grant cycles.
c. Proposed grant budget for first funding cycle 2018-19 - $320,000
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
d. Proposed grant budget for second funding cycle 2019 - $192,000
i. This grant budget aligns with average annual projected revenues of
$290,000 while still leaving funds approximately $128,000 in place
for emergent opportunities
1. This figure has potential to be higher pending roll-over of
unallocated funds.
e. Establish annual $5000 Seed Fund for small non-profit grant
requests for eligible activities/events
i. Setting aside funds for requests (under the $3000 minimum) by non-
profit entities with limited budgets will help support the potential
growth of activities/events in the future.
ii. Provides LTAC members visibility of requests and activities
undertaken by non-profits who want financial support.
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 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 workforce,
history, facilities and natural environment? Does is support regional
business development and tourism planning?
4.b
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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. 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 are suggested to be no less than $3,000 and
not constitute more than half of the overall project/activity budget. A higher
application amount elevates the scale, and impact of the grant expenditure
and results, while also minimizing the paperwork required to contract, track
and report 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.
e. All events and activities funded with City of Kent LTAC funds must list the
City of Kent as a sponsor
4.b
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f. All grant recipients will feature the Kent marketing logo and web address
(Visit Kent, VisitKent.com) for leisure and entertainment projects or the
City of Kent logo and web address (KentWA.gov) 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. Half of the grant funds will be provided once the contract is executed. The
remaining half will be reimbursed after the activity/event. Grantees must
provide a reimbursement invoice, copies of receipts over $100, and a final
results report.
b. Reimbursements will be made within approximately 30-days.
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
disbursed 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. While LTAC members may
allocate funds to activities that do not generate overnight stays, 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.
4.b
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