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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 04/17/2014 Special Meeting Lodging Tax Advisory Committee April 17, 2014 Start Time 4:00 pm Centennial North & South Conference Rooms Committee Members Present: David Kwok, Andrew Hutchison, Barbara Smith, John Casey Others present: Kurt Hanson, Julie Pulliam, Michelle Wilmot, Toni Azzola, Ryan Hart, and Barbara Lopez David Kwok called the meeting to order at 4:05 pm, Introductions were done. Chair asked for any additions to the agenda, none were offered. Approval of Minutes David Kwok moved to approve the minutes of March 27, 2014, Andrew Hutchinson seconded. Motion passed. KDP Report — Barbara Smith Coming up Wine Walk, May 16, 2014 from 5-8; 10 businesses participating downtown. After tasting there will be a store set up to buy some of the wines. Tickets $20, Barbara handed to the hotels for advertising. On May 17, 2014 City Clean-up will be collaboration with KDP, City, Chamber and Public Service and will be City wide. June 6, 2014 is the KDP major fund raiser, dinner auction the theme is Roaring 20's, is going to be really fun. Let Barbara know if you want posters. Chamber Report No Report Lodging Tax Funding Request — Toni Azzola Request for Experience Historical Kent Map $6,415.33, showing Kent Historical Sites. They would like to create marketing materials that can be used year around as a way to do touring of Kent of the History. She present this could be a marketing tool that could create overnight stays. Andrew Hutchison felt this would not create overnight stays for the Hotels. David Kwok stated they look at whatever Lodging Tax is funding does it put heads in beds and is it happening when the hoteliers need it the most. We also try to stay within the $5000 budget. Andrew Hutchison said he could not support using Lodging Tax Dollars to support putting together a brochure. He would consider a page on the tourism website. Andrew Hutchison feels this is not a tourism related request. No motion was made to accept the request. No funding granted. Possibility to bring back to the June meeting to see if less copies at a lower request or as a pdf that could be on the website and printed off. Budget Report — Barbara Lopez Presented the March 31, 2013 Lodging Tax Report as well as revisit 2013 briefly as well. Lodging Tax start with the first column 2013 Actuals it is just shy of $100,000 in that fund and thru strong Lodging Tax dollars coming in, Finance only budgeted $198,000 but actual brought in amount was $217,000 around $20,000 more than originally budgeted. Between that and the under spent expense at the end of 2013 the Lodging Tax fund was $193,663 available. Finance uses that as the beginning balance for 2014. That balance is carrying forward. Lopez moving to the last column 2014 Est Actuals looks like Lodging Tax will bring in an additional $206,653 in tax, Finance assumes the budgeted expenses will be spent in 2014. If nothing changes at the end of 2014 Lodging Tax will have $221,866 in the bank. Lopez wants to point out because the year is starting with nearly $194,000 just set aside, if you have other special projects throughout the year that you would like to make use of that money you would just Lodging Tax Advisory Committee Minutes of April 17, 2014 Page: 2 need to say so and it technically needs to go through Council for the spending authority, but based on a recommendation through your meeting minutes it is somewhat of a formality than anything else. Otherwise they will remain in the Lodging Tax Fund. Andrew Hutchison asked if the banners that were proposed in the Arnett Muldrow presentation would be able to become a reality. If that were to become a reality would the banner just say Kent? Hutchison who is GM for The Best Western at the Green would like a couple for his parking lot. To tie in with the City, as a hotel he would like to buy a couple of banners. David Kwok asked about the $60,000 that is still titled for Seattle Southside. Lopez said that is how it shows in the budget however, just because it says that it does not mean it is contractually obligated to be spent that way. There is the piece that is up to the Committee and if ends up being reallocated to something else, Finance will not say no. Pulliam asked if Committee wants to change the title it can be done. Hutchison said he was confused, he thought we had stopped paying the contract with Seattle Southside. We no longer have a contract with Seattle Southside. Lopez clarified; when budget was adopted it was 2013-2014 Bi-annual budgets so we adopted this back in late 2013. John Casey asked Seattle Southside has not been paid, correct? It is just a place marker, Lopez stated. Hutchison stated Ben was going to talk with Tukwila about maybe some level of participation. Pulliam answered yes. Branding & Marketing- Michelle Wilmot Wilmot wanted to give the Committee an update on where we are at since the presentation from Mary Kae last month. What was left was a group of folks that volunteered David Kwok, Michelle Wilmot, Andrea at the Chamber, Barb with the KDP and Bill agreed to review some website concepts, design and content. Yesterday we received the very first version of that by email, so there is a really tight timeline that Genesis is keep the committee on. If we keep to our deadlines, and David you should have seen the email. If we keep to our deadlines as far as what they need from us, the tourism website should be completed by May 13, 2014. It is moving fast and we are gathering a lot of information. So far the concepts look pretty good; Barb Smith gave some very in depth comments. Wilmot stated she has not completed hers but will be doing that quickly. If anyone else would like to take a look at these things we can forward to you, do far we have just kept it to the group of people that has volunteered, Wilmot stated. She also wanted to let the committee know they were able to secure the visitkent.com URL that was held by someone over in the Ukraine. Visitkent.com was the first choice, the second choice was visitkentwa.com and it is also owned by someone else, a local hairdresser in Kent and he is willing to let us buy that one. He had held it because he has wanted it to be used for this reason. The website being development and to be finished on May 13t", Wilmot wanted to let the committee know of another very fun development that has occurred the need to trade mark the logo and the tag line. Our legal department suggested to us we demonstrate use of the mark and the tag line that is the first step to show that we are using it. The website constitutes a use as does the social media components which will have a google plus page, a Facebook page, a twitter page. We also wanted to have a tangible thing. One of the things coming up is Airways Brewery have agreed formally to use the logo and incorporate it in a launch event they are having at Sea Tac Airport. They are launching a new brew at the Alaska Airlines Board room at Se Tac Airport on May 1st and it will be the featured brew for the entire month. They would like to use the logo on the coasters that will be used. Wilmot stated we thought it would be a great way to show our mark being used. It is in a place where people will see it that might not necessarily work or live here in Kent and thought it would be a great way to capitalize on that opportunity. The other piece that is the website won't be finished, Airways has agreed to be sort of a spot our landing page, "Something Is Brewing In Kent" or "Airways and Kent, Something is Brewing" as our website is being developed. Wilmot thought that was great news of their wiliness to participate at no cost. Wilmot wanted to make sure the Committee was as please as she was. Back to the banner Lodging Tax Advisory Committee Minutes of April 17, 2014 Page: 3 idea, Wilmot knows that the KDP and others are also very much wanting to get that going. We just received the actual files from Arnett Muldrow the files that can be used for graphic design. Those came last Thursday. Wilmot said she is looking to build a kitchen cabinet of people that we can work with on how do we roll out a launch in a community, beyond just the folks at this table and Wilmot said she would not be able to do it all by herself neither can KDP or Chambers, but there are people that are willing to help. ShoWare, the Brewery other companies that may want to participate with us on how do we want to launch this on a global scale for the broader community. There are lots of ideas being generated, but first the website has to get done, stated Wilmot. I have not even told KDP that they can proceed with the actual logos and colors to get those banners underway. So that is the status of where we are at right now. I think you will start to see some real movement on the part of the folks that really want to launch this. One of the pieces we would like to get the Committee feedback and support on is part of the website is to create testimonial videos. Wenatchee has a cool video of places to go, things to do in Wenatchee; the thought is we could do something similar for Kent. Initially Genesis would like to incorporate on our website is some testimonial videos up to 6 of them of key, noted individuals from Kent that can speak to what cool things they like to do in Kent. These could also be used in the bigger video later if that is decided to do. There is a cost associated with it, what Genesis has proposed they could do up to 6 of these interviews and a branding video for $17,500. Wilmot presented the proposal sheet from Genesis. Hutchison asked about using the City of Kent resources to do this, he said he has seen videos that have been made by the City. Our video department does amazing work said Wilmot, but their equipment is very 20t" Century and we only have one staff and has limited time. Wilmot suggests that from a resource and technology stand point that we would be limited. David Kwok asked he feels the $17,000 is not an issue. He spoke with Genesis yesterday and has a concern that the first draft sent out with the brewing company, Airways is the dominant on top of the website; his concern is with promoting the one company with in Kent. Wilmot also called Genesis and said the email did not explain it completely. What Genesis was proposing for an under construction page was the Airways coaster event at the Alaska Airlines Board Room. It will not live there always, stated Wilmot. Kurt Hanson asked what about June. It won't be there in June our site will be live, said Wilmot, if we stick to our deadlines. David Kwok feels uncomfortable when promoting only one business. Hutchison asked is the other option to just be dark. He would rather have one business on a landing page than just a dark page. Kwok would not mind if it was positioned a little differently so not to be so dominate. When you are using Lodging money and are promoting only one company and it is not even a hotel. Wilmot understands and will talk to Genesis on repositioning so not to be so dominating. Wilmot asked then which business do we pick your hotels. We could put your hotels there. Wilmot wanted to do this because our site is under construction and we are taking advantage of a great opportunity, Wilmot stated. After that of course it is open to everyone else once our page is live in Mid May. Kwok said they could have a rotating photo not just one showing all the time of only one business that is his concern. Lodging Tax Advisory Committee Minutes of April 17, 2014 Page: 4 John Casey asked in terms of the banners is there another request coming back for those? Wilmot said she knows that KDP is waiting to tie these banners into Kent Station, ShoWare also is interested. Wilmot doesn't know who will fund those. Casey also asked if there is a sequence of these requests coming from Genesis or is there a big picture somewhere that says, this is what is needed to roll out a campaign of this size and this is step 2, then step 3, 4? Wilmot stated this would be something she would like to know as the Communications Manager and Ben has tasked her to be the lead for the City on supporting this cause. She would love to see a proposal from Genesis on how we market this and how we roll this out. Wilmot stated she is not an expert on Branding a City or a Community. She would love to hear from the experts on what this is going to take. Wilmot stated she does not have the time to do it by herself. Casey asked if Wilmot had the expectation that there will be a lot more that needs to be done. Wilmot stated absolutely, there is advertising that will need to be done, events, tying in with other City and Community events that we do. Things that we already do, the International Festival, Cornucopia Days, the 4t" of July event, Fun runs, ShoWare does events. All of that get involved in this effort need to think about everything we already do, if it is touching people outside of the community it needs to tie into this somehow, and keep our eye on it always it is going to take a long time, Wilmot thinks to evolve and be really implemented and she wants it to be done right so people will want to be included and want to tie into it, as opposed to it being an afterthought. David Kwok stated with his past experience Genesis working on 2 other cities brands, Maybe ask Genesis what they have in mind, what is the overall planning and also share with Genesis what the Committee and City is thinking. That way maybe Genesis can roll everything together and can come and talk to the Committee and lay it all out, maybe by next meeting. Kwok feels the Committee needs a conversation between now and then, because if Genesis is going to put the proposal on the table on the 13t" and the Committee is meeting June 19tn We really need to get them going since the Committee doesn't meet every month. Wilmot stated that Arnett Muldrow will be here on May 6t", they committed to share with us on how to proceed with a roll out. We will be very interested in what they have to say and of course how we will work together with Genesis. David Kwok asked if Wilmot will reach out to Genesis. Wilmot stated she will as well as asking for a more complete proposal. Kwok asked Wilmot to circle back with the Committee when she gets the information. Wilmot stated she would. Hanson asked if the Committee would be interested after Wilmot gathers a scope, schedule and the concept would you be willing to hold a meeting prior to the next schedule meeting? Maybe we could do a meeting in May. Pulliam stated we can always do a special meeting just need a little lag time to get it scheduled. Pulliam updated the Committee that the Committee put aside the $20,000 in 2013 for this Market/Branding budget, Jamie Perry as Chair set the two different categories up and we did not use it in 2013. Lopez state since it was not used it is still there and part of the $194,000 that the 2014 Budget is starting with. Pulliam ask can we either with a little clarification here today take that $20,000 and move it into the Market/Branding budget for 2014 or you can always do a budget request to the Lodging Tax Advisory Committee Minutes of April 17, 2014 Page: 5 Council for any amount. Lopez answered correct. If the $20,000 moved from 2013 to 2014 there would be a budget balance of $40,000 for 2014. David Kwok stated that he feels it should be at least $50,000 it is going to require at least $50,000 to $75,000. Barbara Lopez stated it may be worth it to have the special meeting and get additional meeting from Michelle Wilmot as far as what the different activities and what the costs might be and make a decision at that point and then we can create the budget out of the retained earnings. Kwok asked if we should do the $20,000 move from the 2013 budget to the 2014 budget. Pulliam replied the feeling is that the committee is feeling it is going to take more than the $20,000 so at the next meeting if Michelle has a proposed budget the Committee could go over that and make a larger sum moved than the $20,000 you could move $50,000 possibility if that is what the Committee felt was needed within your marketing budget. Lopez replied from a budget perspective from Finance's end if you want to do it piecemeal, a little at a time that is fine also. If you would rather wait and get the bulk of what you think you are willing to spend on this activity and do it all at one time we are also good with that. It is however the Committee wants to designate how the money is spent. Kwok said he has no problem making a motion to move $50,000 from the retainer into the 2014 budget for the Branding. Andrew Hutchison asked if it is necessary to move the money. Lopez stated technically in order to spend the money you have to have budget authority to spend the money so yes it has got to get into the budget side before you can spend it. Andrew Hutchison seconded the motion. David Kwok asked for discussion. No discussion, all in favor all replied I. No abstained. Motion passed. Michelle Wilmot will reach out to Genesis Marketing, Mary Kae Repp. Pulliam asked the Committee if they would like to have a May meeting. Kwok replied after May 16rn Wilmot asked for clarification; did the Committee approve the video component or are we on hold? John Casey stated it is on hold as of now. Does that create a new website without content? Wilmot said the website is already underway and we are already paying for that now this would be an additional component to the website, the video testimony. Casey asked if there would be a good amount of content on it without the testimony. Wilmot replied, absolutely that is what is being built right now. Pulliam stated that is what the original contract with Genesis is for and actual working viewing website. John Casey stated he feels the Committee is leaning toward approving something like this the question is, should we be doing that earlier than May? Lodging Tax Advisory Committee Minutes of April 17, 2014 Page: 6 Lopez stated then the Committee just needs to decide if you choose to move forward and fund those video, is it out of the $50,000 that you already having us transfer in budget or is it in addition to, that would be the question. Right now we will differently budget the $50,000 and then it would be covered if you so choose. Pulliam asked for clarification; so that would be $50,000 on top of the already budget $20,000 making $70,000? Lopez stated absolutely the Committee would have a total of $70,000 approved and budgeted then the Committee would decide on how to spend it. David Kwok asked for further comments. Wilmot said just to clarify the Committee is fine with letting Airways be on the landing page of the website on a rotational sort of way? For a temporary time? The Committee replied yes. Kwok restated he cannot us Lodging Tax money to promote a single business in Kent. Hutchison said he has no problem with it for a temporary time of 2 weeks. John Casey moved to adjourn, Andrew Hutchison seconded. Meeting adjourned. Good of the order — Nothing Assignments for next meeting — Wilmot to bring back more detailed proposal from Genesis Next Regular Meeting Date — May 22, 2014 (Committee will meet every other month on the 3rd Thursday of the month 4 pm.) Next regular meeting will be 6/19/14 Adiournment - T eeting was adjourned by Committee Member David Kwok at 6:00 pm Sub itte by lie Pulliam, Lodging Tax Secretary Approved at the meeting of March 27, 2014