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HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 11/29/2012 Lodging Tax Advisory Committee November 29, 2012 Start Time 4:00 pm Centennial North & South Conference Rooms Committee Members Present: Beth Sylves, Barbara Smith, Andrew Hutchison, David Kwok Others present: Jamie Perry, Julie Pulliam, Andrea Keikkala, Bob Nachlinger, Katherine Kertzman, Ben Wolters, and Tim Higgins Chair Perry called the meeting to order at 4:08 pm. Reports Lodging Tax Budget Chair Perry explained Bob Nachlinger passed out a preliminary budget for 2013-2014 showing $60,000 toward Seattle Southside, $60,000 toward ShoWare marketing and that was a decision of the Kent City Council to put some of the Seattle Southside dollars into ShoWare marketing and we had specifically discussed events that drive tourism. Tim Higgins will talk a bit about where that is going. Chair Perry asked for questions about the budget proposal. Katherine Kertzman asked if Ben would be able to talk about the idea Katherine and Ben talked about on the phone. Perry asked Katherine to fill in the committee. In an effort to keep the inter-local agreement in place and give us a little bit of time to work through the development of the TPA we are suggesting that we don't change the inter local agreement but we know that it is not to exceed $60,000 for 2013. Seattle Southside will bill $10,000 a month that would give 6 months to get through all of the legal documents and get all of the hoteliers in line on the same make up of the board and zones within the TPA area. It could be at the end of this process we could terminate our relationship but at least we have a hard deadline that has to be done by July 1, 2013. Then we don't need to redirect our resources to re-negotiate a new inter-local agreement which I think without the TPA could end our partnership I really would like to work through this process, which is my recommendation. Chair Perry's question is, what if at the end of 6 n)onths the hoteliers do decide to do the TPA but we don't have any funding left to continue to keep paying the $10,000 a month to Seattle Southside. Kertzman said they know they will have to enter into that decision with those facts they will either accept or denial it but that will end it. It will help us to prevent re- negotiating the inter-local agreement and reduce services, which would be very difficult under the circumstances especially without the TPA funding. So it gives us a little breathing room, it doesn't mean that we are promising that the partnership will continue, I just don't know, it gives us a little more time. Barbara Smith asked for clarification; $60,000 of the $120,000 is going directly to ShoWare? Not through Seattle Southside, to ShoWare directly? Perry answered; that is correct. Andrew Hutchison asked if it has been decided who will do the marketing. Perry stated ShoWare will present to the Lodging Tax Advisory Board what they would like to spend the dollars on. Then the Lodging Tax Advisory Board will grant the dollars for specific events just as the committee has funded other requests in the past Lodging Tax Advisory Committee Minutes of November 29, 2012 Page: 2 within the community. ShoWare will come to the Committee with their asks just like all the requestors do. Tim Higgins stated they would identify the event present it to the Lodging Tax Advisory Committee and get a collective agreement on the event. David Kwok asked clarification from Katherine Kertzman Southside is going to bill Kent Lodging Tax $10,000 a month for the first 6 months. So we are spending $60,000 for 6 months of service. Katherine responded yes, at the current level of service. Ben Wolters interjected that he believed in his conversation with Katherine they would use the time to determine a lower level of service. The reality was his goal in the conversation would be to avoid an interruption in service. Baring change in direction from this board, in change in funding. Wolters didn't know if there will additional funding beyond the $60,000. Katherine stated Seattle Southside understands and it gives them the additional 6 months to define that and with the TPA there will be a brand new inter-local agreement which will spell out the boundaries and it will spell out the zones and what those services will be with the boundaries. David Kwok asked to clarify; he asked is the $60,000 buying 6 months of service not 1 year? Kertzman responded yes Ben Wolters disagreed with that interpretation; my understanding is the $60,000 buys 1 year of service, yet to define the reduced level of service the $60,000 will provide for the year. What I am hearing Katherine say is they are willing to ease that transition and recognize the current level of service during this transition period. This is something we want to define, this lower level of service and bring it back to the committee as soon as possible so the committee can provide your feedback. In advance of that I will be calling all of you to prioritize the services that we do receive to help Katherine and I identify what would be an agreeable type of service we would be buying. This will be a transition. Perry asked clarification on Katherine's answer to the question earlier since it seems different than Wolters. Katherine stated that she cannot make promises she can't keep, she is a staff person, it still will have to go to all the different Lodging Tax Committees for decisions. I can't make promises is all, we are taking some risk. Wolters described what staff intent is we have to bring that back to our Governing boards. We are in a new world and a new territory. Perry confirmed best case we pay $60,000 and at some point get a lower level of service but it lasts the whole year. Worst case, we pay $60,000 for 1/2 a year service at the current service level. Wolters and Kertzman answered, yes Lodging Tax Advisory Committee Minutes of November 29, 2012 Page: 3 Beth Sylves asked on the operation base nothing changes, Kertzman answered yes. Perry asked for comments? Andrew Hutchison commented; to add to the worse case if hoteliers wanted to do a TPA they would not have the ability to do it with Southside. Kertzman said if that is what the Hoteliers want they need to have some of the Hoteliers start meeting with the steering committee meetings and reaching out to the TPA. Barbara Smith stated she felt the reason we are doing the 6 months more with Seattle Southside is to give us more time to decide if we want to be part of the TPA or not. Kertzman responded that is correct. Wolters said the City Attorneys are looking to see if Kent can establish its own TPA. Perry stated to be clear about feedback from the board. Council's direction was taking into consideration this committees interest in staying with Seattle Southside. That is why Council said $60,000 to ShoWare and $60,000 to Seattle Southside. I would like feedback, is that ok with the board? No feedback was given Wolters said he feels everyone wants to see what ShoWare has to present. Higgins stated they will be looking for events that will attract heads in beds like WIAA and high school events. Now that we have the money it broadens us so we can go after some new events. This will help us. Driving heads in beds is critical. Higgins asked Perry to correct him if he is wrong; this committee is going to help next year toward Love on Ice as it relates to advertising. Perry stated that was left up to ShoWare and this board to decide that. I know that $35,000 was the initial number that was thrown out there. The question is do you think that that is the best use for the $35,000 or do you think there are other things that we should be doing with it? I don't know the answer to that question but that was Councils direction on that. Beth talked about the vignette, 60 second piece in the 2 hour broadcast to talk about their business. Michelle Wilmot will meet with Beth to go over some ideas the producer has been contacted and it is professional done. Skaters and production crew will do how many takes needed. Barbara Smith asked if this is a commercial of Kent. Sylves answered yes. Perry asked is it something we can use again, we would have the ability to use it again. Sylves said yes, we will own it. It will be televised as part of the NBC broadcast, it will be a 60 second spot aired nationally and includes the celebrity skaters in it. Perry's question is Branding, looking at what we are spending and what is available to us we have approximately $20,000 added each year with currently $91,000 current estimated actually, so question is would we consider putting that $20,000 change in Lodging Tax Advisory Committee Minutes of November 29, 2012 Page: 4 fund balance away in anticipation of a branding exercise in the future. Allocating it so if an opportunity does come along we will have the funding. Barbara Smith thinks it is a great idea. Bob Nachlinger stated the fund balance is there and available for allocation anytime this board and the Council wants to do it. So a separate allocation is not really necessary. Perry asked if it could be put in as a line item that way we would not have to go to Council for a budget adjustment. Perry would like to have a line item in the Lodging Tax budget for Branding. She asked for objections, none heard. This is a good faith showing that when KDP and Chamber is ready to work together with Lodging Tax the committee will have the funds. Andrew Hutchinson would like to see an example. Wolters added that through the Economic Development Strategy could be a vehicle that could create some of the momentum that could help development the branding effort. It would be a big help for the City's Economic Development efforts but I recognized the challenge. Perry asked for any other questions or comments on where we are going? None heard. Perry stated that she expects the changes to get incorporated into the City of Kent overall budget. Do you want to do a motion to approve the budget as amended? Perry asked do I have a motion. Beth Sylves moved and Barbara Smith 2"d. Perry asked for any comments, none heard. Perry asked all in favor signify by saying I. No opposed, motion passed. Good of the order Beth Sylves asked any initial ideas off the top of your head that we should prioritize to what we should be looking for in the vignette of Kent. Anyone is welcome to sit it if they would like to it is 3:30 tomorrow at Michelle Wilmot's office in City Hall. From Councils perspective they would like to show us as more of an urban environment then a suburb or rural area. Assignments for next meeting- None Next Meeting Date — February 21, 2013 (Committee will meet every other month on the 3rd Thursday of the month 4 pm.) Adjournment - The me ting was adjourned by Chair Perry at 4:55 p.m. + f J h Pulliam, L` doing Tax Secretary