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HomeMy WebLinkAbout041222 Agenda Packet Lodging Tax Advisory Committee Meeting Corrected Tuesday, April 12, 2022 3 to 5 p.m. City Hall, 250 Madison St., 3rd Floor Conference Room ****Pursuant to Washington State Governor’s Proclamation 20-28.15, the City is not allowing in-person attendance at meetings. Members will be participating virtually.**** • Join virtually at http://joinwebinar.com enter the 9 digit Webinar ID 474-483-579 • Join by phone in listen-only mode (360) 390-5064 ext. 5 access code: 823-019-247# • Submit public comment emails to be included in the meeting record to: publiccomment@cityofpt.us I. Call to Order II. Approval of Minutes - April 13, 2021, October 12, 2021, March 22, 2022 III. Lodging Tax Revenue Reports IV. Fee Waiver V. Budget Requests VI. Activity and General Updates VII. Adjourn LTAC regular meetings are held quarterly, on the second Tuesday at 3 p.m. of the months January, April, July, and October each year. Next regular meetings: July 12, and October 11, 2022 from 3 to 5 p.m. Mark your calendars and save the dates! LODGING TAX ADVISORY COMMITTEE MEETING MINUTES DATE: April 13, 2021 START TIME: 3:00 p.m. LOCATION: City Hall (Virtual) VOTING MEMBERS PRESENT: Pam Adams (Chair), Karen Clemens, Nathan Barnett, Cindy Finnie, Denise Winter, Barb Trailer, Natalie Maitland, KC Upshaw (Designee for PT Film Institute) NON-VOTING MEMBERS PRESENT: Mari Mullen, Arlene Alen MEMBERS EXCUSED: Sherri Hanke, Jannette Force, Cindy Finnie CITY STAFF PRESENT: City Manager John Mauro, Finance and Administrative Services Director Nora Mitchell, Deputy City Clerk Haylie Clement Topic Action Chair Pam Adams called the meeting to order at 3:01 p.m. Approval of Minutes: January 12 and April 9, 2021 Unanimous Approval Lodging Tax Revenue Reports: Finance and Administrative Services Director Nora Mitchell presented the lodging tax revenue reports noting that as expected there continues to be a reduction in revenue. Members noted that there is starting to be an increase in lodging numbers. Chamber Marketing Report: Arlene Alen updated the Committee on VIC operations, website traffic, and advertising. It was noted that travel bundles are being developed focusing on localized experimental tourism where tourists want to dive deeper into community activities including volunteering. Committee Members expressed appreciation for the opportunity to participate in packaged advertising. City Manager John Mauro reported that the City and the Chamber would continue to work on reporting requirements. Adams Street Parklet Update: Mari Mullen provided an update on the parklet explaining that the project will likely be completed early summer, but lumber prices have increased which has caused the need to adjust funding on some of the other items. Committee Announcements: Committee Members provided updates on recent events and projects within each organization. Next Regular Meeting: July 13, 2021 at 3:00 p.m. Adjourn: The meeting adjourned at 4:06 p.m. LODGING TAX ADVISORY COMMITTEE MEETING MINUTES DATE: October 12, 2021 START TIME: 3:00 p.m. LOCATION: City Hall (Virtual) VOTING MEMBERS PRESENT: Pam Adams (Chair), Karen Clemens, Nathan Barnett, Cindy Finnie, Denise Winter, Natalie Maitland, Jannette Force, KC Upshaw (Designee for PT Film Institute) NON-VOTING MEMBERS PRESENT: Mari Mullen, Arlene Alen MEMBERS EXCUSED: Sherri Hanke, Cindy Finnie, Barb Trailer CITY STAFF PRESENT: City Manager John Mauro, Finance and Administrative Services Director Nora Mitchell, Deputy City Clerk Haylie Clement Topic Action Chair Pam Adams called the meeting to order at 3:00 p.m. Approval of Minutes: April 13, 2021 No action was taken due to lack of a quorum. Chamber Marketing Report: Arlene Alen reviewed the Chamber marketing report. Nathan Barnett joined the meeting at 3:12 p.m. A quorum of members was present. Denise Winter joined the meeting at 3:15 p.m. Lodging Tax Revenue Reports: Finance and Administrative Services Director Nora Mitchell presented the lodging tax revenue reports noting that the year-to-date revenue for 2021 is already above the projected revenues for the year. The Committee discussed lodging at Fort Worden, impacts to lodging due to the Wooden Boat Festival cancelation as well as impacts to retail businesses. 2022 Budget: Nora Mitchell introduced the proposed budget noting that the estimated revenues we will increase the ending fund balance. 2022 has a slight increase in projected revenue but an overall decrease from prior years is still anticipated. Each expense line item was reviewed. Staff noted that the Tourism Infrastructure and Infrastructure Reserve expenses are primarily the items that are up for discussion. City Manager John Mauro provided an overview of the City’s proposal for the American Rescue Plan Act (ARPA) funds explaining that Council is only spending half of the funds in 2022 and that there could be the potential of approving 2023 funds to be spent on public restrooms with a match of LTAC There was unanimous agreement to approve the Chambers request for an additional $1,000 of pivot funds. Motion to recommend the 2022 LTAC budget as presented with the following changes: Pivot marketing increased to $35,000; Tourism Infrastructure decreased to $0; Winter Marketing increased to $10,000; Facility Rental Waivers increased to $10,000; and Infrastructure Reserve Topic Action infrastructure funds. The group discussed possible projects for the Mainstreet tourism infrastructure allocation including additional downtown furniture or increased accessibility in the new parklet. Staff noted that these funds could also be allocated for facility rentals fee waivers. Committee members discussed the option of using the funds for advertising since the infrastructure reserve is already so high. An additional option mentioned was to add these funds to the pivot marketing fund. Cindi Finnie left the meeting at 4:15 p.m. decreased to $105,000. The motion passed unanimously by voice vote. Adams Street Parklet Update: Mari Mullen provided an update on the project. Committee Announcements: Committee Members provided updates on recent events and projects within each organization. Next Regular Meeting: January 11, 2022 at 3:00 p.m. Adjourn: The meeting adjourned at 4:48 p.m. LODGING TAX ADVISORY COMMITTEE MEETING MINUTES DATE: March 22, 2022 START TIME: 3:00 p.m. LOCATION: City Hall (Virtual) VOTING MEMBERS PRESENT: David Faber (Chair), Sherri Hanke, Barb Trailer, Danielle McClelland, Denise Winter, Cindy Finnie, Natalie Maitland, and Nathan Barnett NON-VOTING MEMBERS PRESENT: Mari Mullen and Arlene Alen MEMBERS EXCUSED: Karen Clemens CITY STAFF PRESENT: City Manager John Mauro, Director of Finance and Technology Services Connie Anderson, Finance Manager Ron Logghe, Deputy City Clerk Haylie Clement Topic Action Chair David Faber called the meeting to order at 3:05 p.m. Introduction to New City Staff: Staff introductions were provided Lodging Tax Revenue Reports: Finance Manager Ron Logghe presented the current revenue reports noting that the revenue is doing well considering covid/economic challenges. Staff will look at doing more historical reporting. Fee Waiver: City Manager John Mauro presented on the facility use fee waiver process. The Committee discussed options for fair review of the waiver requests. The Committee also discussed past processes for funding requests. There was agreement to support events in the off season and new events to bring heads in beds in the community. The Committee discussed a waiver request submitted by Nathan Barnett that was not included in the materials. Motion to accept all three fee waiver requests (requests made by Port Townsend Heritage Association, Northwest Maritime Center, and Nathan Barnett). Motion passed unanimously with Barb Trailer and Nathan Barnett recused. Staff agreed to come back with proposed framework for fee waiver approvals. Funding Requests: The request made by the Port Townsend Kiwanis was reviewed. John Mauro provided detail on the process for approving a supplemental allocation in the LTAC budget. The Committee discussed statutory limitations on the use of LTAC funds. The committee was in agreement that the framework for excepting these types of requests has not been established and should be developed before requests are excepted. Staff agreed to begin developing a policy to establish an avenue for excepting these types of requests. Topic Action Chamber Visitors Center and Marketing Contracts: John Mauro provided detail on the budget process for the Chamber contract. Council has given the authority to execute a contract but input from LTAC on the scope of work was desired before final action was taken. Chamber Director Arlene Alan presented on the proposed scope of work and level of service provided historically with marketing and tourism. A presentation on sustainable tourism was provided. 2022 Activity and General Updates: Committee members provided introductions, updates on past activities, and upcoming events. Next Regular Meeting: April 12, 2022 at 3:00 p.m. Adjourn: The meeting adjourned at 4:40 p.m. Lodging Tax Advisory Committee (LTAC) Fee Waiver Draft Policy Framework v2.0 22.3.30 Purpose This policy framework aims to ensure that lodging tax fee expenditures, including events that receive a fee waiver, are in line with RCW 67.28.1815-1816 including being used for tourism promotion and/or operation of tourism-related facilities. LTAC recommended and City Council approved a total amount of $10,000 for fee waivers in 2022. Criteria All events approved for fee waivers must increase the number of people staying overnight, traveling 50 miles or more, or coming from another state or country to Port Townsend and making a financial impact within the City of Port Townsend. Events must also be open to the public. In addition, the following criteria will be used to determine priority for waiving facility rental fees: Key Criteria Criteria Points Does the event… Increase number of visits as per above? Y: proceed N: ineligible Provide additional visitations to Port Townsend in the offseason? +3 Provide a new (< 3 yr) offering to Port Townsend? +2 Create local jobs or utilize local vendors +2 Increase overnight stays? +1 Increase overnight stays in the offseason? +1 Reflect partnerships with organizations and businesses? +2 Leverage matching or in-kind funds? +2 Is the proposal from an organization that… Does not have a board or staff member represented by the LTAC? +1 Is a non-profit? +2 Has a track record of project success? +2 Did not receive funds the previous year? +1 Is attendance projected to be… Over 100? +1 Over 250? +2 Free? +1 Process A call for applications for facility rental fee waivers for any given year would be made by the final quarter of the previous year to allow more greatest visibility and awareness of the opportunity, coordination among yearly events, and fair and predictable review by LTAC early in the year. City staff will review applications and score them according to this policy framework in advance of formal discussion and decision-making by LTAC. City staff will then communicate the decision to fee waiver applicants. If the full appropriated fee waiver amount for the year is not met in the initial call, LTAC may decide to issue a second call for applications and review half-way through the calendar year. Current daily rental rate for Cotton Building and Pope Marine Building facilities is $20 per hour ($200 per day maximum) with a refundable damage/maintenance deposit. Current rental fee structure: https://cityofpt.us/sites/default/files/fileattachments/parks_recreation_amp_community_services/page/7414/rental_fee_stru cture_cotton-pope2.pdf. The rate will be at the nonprofit level for any fee waiver applications. The above process is meant to be a guide to awarding facility fee waivers and interested organizations do not need to earn points in all categories to have an application approved. Lodging Tax Advisory Committee (LTAC) Process for Budget Request v2.0 22.3.30 Purpose This document aims to ensure that a) there is a clear, consistent and well-communicated approach to the creation of the LTAC budget, and b) lodging tax expenditures are in line with RCW 67.28.1815-1816 including being used for tourism promotion, acquisition of tourism-related facilities, and/or operation of tourism-related facilities. Criteria All proposals must meet the minimum statutory requirements of RCW 67.28. Event organizers must demonstrate that they have appropriately mitigated any potential impacts and acquired any required permits. Further information and guidance can also be found at: https://mrsc.org/Home/Explore- Topics/Finance/Revenues/Lodging-Tax.aspx. In addition, proposals will be evaluated against these following weighted criteria, although proposals need not earn points in all categories: Key Criteria Criteria Points Does the proposal… Increase number of visits as per above? Y: proceed N: ineligible Provide additional visitations to Port Townsend in the offseason? +3 Provide a new (< 3 yr) offering to Port Townsend? +2 Create local jobs or utilize local vendors? +2 Increase overnight stays? +1 Increase overnight stays in the offseason? +1 Reflect partnerships with organizations and businesses? +2 Include a capital project component? +3 Leverage matching or in-kind funds? +2 Is the proposal from an organization that… Does not have a board or staff member represented by the LTAC? +1 Is a non-profit? +1 Has a track record of project success? +2 Did not receive funds the previous year? +1 Is the project/event protected to attract visitors/attendance… Over 100? +1 Over 250? +2 ..and include free attendance? +1 Budget Development and Budget Request Process The development of the LTAC budget is part of the development of the City of Port Townsend budget. This begins nearly 6 months before the start of the subsequent year and includes state-mandated statutory milestones and deadlines. The following approach is suggested for development of the LTAC budget: 1. Contracting & Review – January (Q1 Meeting). The City initiates agreements with LTAC funding recipients in accordance with recently-decided current-year budget, including terms, deliverables, insurance requirements, and scope of work. LTAC reviews previous year and reporting and assesses current year projections. 2. Priorities – April (Q2 Meeting). Initial discussion of priorities for following year. Advertise for new LTAC members (appointments through May on rolling cycle). 3. Call for priorities and RFPs – June (no meeting). Call from Mayor/City Manager to LTAC (and all City advisory boards) for workplan items and budget request (if applicable). Note that the overall LTAC budget is forecasted by the City Finance team; LTAC makes a formal recommendation to City Council for use of those funds. On behalf of LTAC, the City communicates a call for eligible LTAC funding requests to be considered alongside workplanning and budgeting in advance of their final quarterly meeting of the year. 4. Priorities and proposals – July (Q3 Meeting). LTAC considers priorities and RFP applications. 5. Meeting with applicants & additional awards (if necessary) – September (special meeting). LTAC meets with applicants to ask questions and discuss with applicants. LTAC may also consider advancing any allocations dependent upon lodging tax revenue trends for the year as well as issuing a subsequent call for fee waivers. 6. Deliberation and recommendation to City Council & call for fee waivers – October (Q4 Meeting). LTAC weighs a range of objectives within the scope of the criteria. For instance, what portion of lodging tax funding should be made available to tourism marketing, to eligible infrastructure, to debt service, to event sponsorships? LTAC votes on a budget and submits a recommendation to City Council in advance of a decision on the final City budget. City Council may choose to approve/incorporate or may send the recommendation back to LTAC for further discussion. Also at this time, on behalf of LTAC and if included in the budget recommendation, City staff put out a call for fee waivers for the subsequent year. 7. City Council approval – December (no meeting). City Council approves the annual budget, including the LTAC budget, for the subsequent year by the end of December as required by state law.