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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 02/27/2017Lodging Tax Advisory Committee Minutes February 27, 2OL7 Kent, Washington Approval Date: February 27, 2OL7Time: 4 p.m. Place: Centennial Center Conference Room North and South Attending: committee Members; Bill Boyce, Tim Higgins, John Casey, Barbara Smith, David Kwok, Andrew Hutchison, Josh Bang, Bryan powell Others Present; Ben Wolters, Michelle Wilmot, Pamela Mottram, Bridget Baeth, Lindsey Boisvin, Colin Campbell, Jason Thomsen, Ryan Hart Agenda: 1. Call to Order 2. Roll Call 3. Changes to the Aqenda 4. Approval of Januarv 23, 2O17 Minutes Committee Member Higgins MOVED and Committee Member Hutchison SECONDED a Motion to Approve the Minutes of January 23, 2017. Motion PASSED. 5. JavRay Contract Aooroval Ben Wolters, Economic and Community Development Director reiterated that JayRay was selected by the Lodging Tax Advisory Committee (LTAC) to be the City's marketing consultant in the fall of last year. A short term contract was drawn up with JayRay, to allow them to begin quickly, to conduct an evaluation, to take over the basic functions of what we had in place with VisitKent,com with our social media accounts. JayRay is presenting a proposal and strategy as our potential marketing consultant, that is open for discussion, review, and direction from the Committee; with the desire to reach a general agreement on a scope of work and a budget number that the LTAC would look to authorize; so that the process of negotiating a contract with JayRay can begin for the balance of this year and going forward, Bridget Baeth and Lindsey Boisvin gave their presentation focusing on their Marketing and Communications Plan 2077, addressing - target audiences and media relations; based on a budget of $164,635 allocated as: 964,525 for Website improvements, Website redesign via WordPress, Operations and Social Media; $57,275 for Marketing Campaign development and advertising; 932,835 for Media Relations; and $10,000 for Project Management. They spoke about the long termgoals to strengthen Kent's year-round economy. The Committee concluded deliberations. Chair Boyce called for a Motion. committee Member smith MovED and committee Member casey SECONDED a MOTION to approve a marketing contract with JayRay in theamount of $164'635 for 2OL7 to provide marketing services for VisitKent.com. Motion PASSED unanimously. Page 1 of 3 Lodging Tax Advisory Committee Minutes February 27,20L7 Kent, Washington Approval 6. Budqet Request to Council Wolters stated that Council just passed budget approval and authorization for a contract for $164,000 with JayRay. The current approved project marketing budget is $168,000. To move forward beyond what has been approved, would require a budget adjustment and approval by the City Council. The Committee has the latitude to move funds that may or may not already be subscribed amongst the categories. The majority of the categories are under contract with the exception of the $15,000 for projects and events which has not yet been allocated. When you consider additional expenditures, such as continuing to work with the T-Birds, will require drawing from the reserve. The motion was written, in order to pursue additional funding for projects that are above and beyond what is already approved. The LTAC can choose a dollar amount that will give the committee latitude to expand the budget in a manner that would support the T-Birds proposal and other requests. Any request from the LTAC (to add to the budget from the reserve) would be taken to City Council for approval as part of the periodic mid-year city budget adjustments. Wolters suggested that the Committee could request $75,000 (using g15,000 to support the proposal from the T-Birds) leaving a reserve to cover other requests forthe balance of the year. This does not obligate the committee to expend the \ money, but makes those monies available for expenditure. He further suggestedI that the committee could opt to take $100,000 out of the reserve (current funO balance is $475,000) and draw that down within the context of this budget to $375,000; and have that budget authority available for expenditure pending additional decisions on the part of this committee on how to allocate those funds. Wolters stated that the reserve should be seen as one-time money, as a wide variety of events lead to the buildup of the reserve and doesn't mean those funds are recurring. Recurring revenues stands at $280,000 and we are working withinthat budget with the exception of the potential new items. The Thunderbird package for last year came out of the marketing budget. There was dramatic underspending last year in that funds allocated in the overall budget for Genesis (marketing) plus the $60,000 for ShoWare Center was not expended last year. The Committee had the authority to move those funds from one account to another without requiring the Council to readjust the overall budget. We didn't exceed the total budget, just redirected what we had available. Wolters stated that to continue working with the T-Birds Committee we need to re- authorize their contract. Wolters concurred with Barbara's statement that those funds need to be expended, though it has been nice that we have been prudent with the lodging tax dollars enabling those funds to be built up. Not spending those funds creates issues in that we are not in the business of creating a stockpile of ¡ mone!. Boyce opined that the Committee needs to focus in 2Ot7 on where they' want to go and that money is spent in a value-added way. He deferred this item to Page 2 of 3 Lodging Tax Advisory Committee Minutes February 27, 20L7 Kent, Washington Approval April to allow time to evaluate those organizations the LTAC gave to last year and to evaluate the dollar amounts for those requests coming forward this year as well as ensure that the funding is available. Wolters stated that one area to consider for future adjustments is how much we are spending with Jay-Ray on our overall marketing campaign. There is 920,000already budgeted (one time cost) for revamping the website. Reserves have beenbuilt up as we have always been conservative in our revenue estimates, having always undercounted the amount of hotel/motel tax revenue coming in. Although, this doesn't have to continue on, as long as the economy is good, it is probable tñat revenue will continue to grow at a decent rate. The City collects a percentage off of the total hotel asking rate. Kent has received one new permit to develop a hotel inKent with the report of a second hotel wanting to come to Kent. There is opportunity for year to year revenue growth over the next five years that might expand what we can do year to year without relying on the one-time savings. Boyce announced that Items 4, 5, 6, 7 & 8 would be brought back to the April meeting for consideration. 7. Adiournment Chair Bill Boyce adjourned the meeting at 5:10 pm þ'^-re* fr\CItksa^r\M Pamela A Mottram Ad ministrative Assista nt Economic & Community Development February 27, 2OL7 s:\PUBLlc\city clerk's Office\c¡ty Council\Advisory comm¡ttees\Lodging Tax Adv¡sory comm¡ttee\2l17\M¡nutes\2-27-17 min.doc Page 3 of 3