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HomeMy WebLinkAbout2004-017 Tourism Promotion Area (aka tourist promotion area) ORDINANCE NO 2004- 17 AN ORDINANCE relating to the establishment of a Tourism Promotion Area pursuant to RCW Chapter 35101, imposing a charge on the furnishing of lodging by a lodging business located in the tourism promotion area, providing for the collection of the charge, providing for the administration of the charge, and other matters related thereto WHEREAS, RCW Chapter 35 101, authorizes the establishment of a Tourism Promotion Area by a city to permit the charge of Tourism Promotion Charges to fund the promotion of tourism and convention business within the Tourism Promotion Area boundaries, and WHEREAS, the Operators of Lodging Businesses within the City of Yakima and the City of Union Gap have presented an Initiation Petition to Establish a Tourism Promotion Area ( "Initiation Petition ") to the City Council of the City of Yakima seeking to have the City Council of the City of Yakima establish a Yakima County Tourism Promotion Area, specifically including the areas within the jurisdictions of the City of Yakima, the City Of Selah, the City of Union Gap, and the unincorporated areas of Yakima County pursuant to the terms of RCW Chapter 35 101, and WHEREAS, the City Council of the City of Yakima has the authority, pursuant to the terms of RCW Chapter 35 101, to enter into an Interlocal Agreement with the City of Selah, the City of Union Gap, and Yakima County to establish a Tourism Promotion Area, pursuant to the provisions of the Initiation Petition received from the Operators of Lodging Businesses, to include within the boundaries of the proposed Yakima County Tourism Promotion Area, the area within the jurisdictions of the City of Yakima, the City of Selah, the City of Union Gap and the unincorporated areas of Yakima County; and WHEREAS, the City Council of the City of Yakima adopted Resolution No R- 2004-53 entitled "Resolution of Intention by the City Council of the City of Yakima to Establish a Tourism Promotion Area ", as authorized under RCW Chapter 35 101, at a City Council meeting held on the 30 day of March, 2004, pursuant to the request of the Initiation Petition submitted by the Operators of Lodging Businesses within the City of Yakima and the City of Union Gap, wherein the City Council of the City of Yakima adopted a resolution of intention to establish a Tourism Promotion Area pursuant to the provisions set forth in, and as authorized by, RCW Chapter 35 101, having boundaries to include the incorporated areas of the City of Yakima, the City of Union Gap, the City of Selah, and the unincorporated areas of Yakima County; and WHEREAS, Resolution No R- 2004 -53, entitled "Resolution of Intention by the City Council of the City of Yakima to Establish a Tourism Promotion Area, as Authorized Under RCW Chapter 35 101" for the promotion of tourism and convention business within Yakima County was duly published on April 2, 2004, and copies thereof were mailed on April 1, 2004, to .each Lodging Business in the proposed Yakima County ORDINANCE - 1 718.01 \rhg \yakima cit \general \tourism promotion ordinance2 Tourism Promotion Area, as provided by law and the provisions of RCW 35 101 060, and WHEREAS, the City Council of the City of Yakima held a public hearing in City Council Chambers, Yakima City Hall, 129 North 2 Street, Yakima, Washington 98901, at about 2 00 p m. on the 13 day of April, 2004, pursuant to the provisions of RCW 35 101 030 and 35 101 070, concerning the formation of a Tourism Promotion Area, and WHEREAS, the City Council of the City of Union Gap, the City Council of the City of Selah, and the County Commissioners of Yakima County have by appropriate legislative action, authorized the execution of an Interlocal Agreement with the City of Yakima to permit the establishment of a Yakima County Tourism Promotion Area to include a collection of Tourism Promotion Charges from Lodging Businesses within their respective jurisdictions, BE IT ORDAINED BY THE CITY OF YAKIMA, WASHINGTON. Section 1 New Chapter A new chapter is added to "Title 5, Licenses and Business Regulations," of the Yakima Municipal Code to read as follows. Chapter 5.99 TOURISM PROMOTION AREA Sections 5 99 010 Definitions 5 99 020 Establishment of Tourism Promotion Area 5 99 030 Establishment of Tourism Promotion Area Zones 5 99 040 Tourism Promotion Charge 5 99 050 Use of Tourism Promotion Charge Revenues 5 99 060 Establishment of Yakima Hotel and Motel Commission 5 99 070 Modification or Disestablishment of the Tourism Promotion Area 5 99 080 Administration /Collection of Tourism Promotion Charges 5 99 090 Inspection of Records 5 99 100 Contract with State for Administration 5 99 110 Violation /Penalties 5 99 120 Severability 5.99.010 Definitions As used in this ordinance, the following terms, unless the context otherwise dictates, shall have the following meanings. A. "Agreement" shall mean the Interlocal Cooperation Agreement between the City of Yakima, the City of Union Gap, the City of Selah and Yakima County for the ORDINANCE - 2 718.01 \rhg\yakima cit \general \tourism promotion ordinance2 establishment of a Yakima County Tourism Promotion Area by the City of Yakima as authorized by RCW 35 101 040(2) B "Annual Budget" shall mean the Yakima County Tourism Promotion Area budget for a fiscal year, as adopted or amended by the City Council of the City of Yakima, after the receipt of a recommendation from the Yakima Hotel and Motel Commission, identifying all estimated revenue from Tourism Promotion Charges for the fiscal year, and providing for all proposed uses of Tourism Promotion Charge revenue for the purpose of providing tourism promotion in Yakima County for the ensuing fiscal year C "Lodging Business" means business located within the Yakima County Tourism Promotion Area that furnishes lodging taxable by the state under RCW Chapter 82 08 and that is classified as a hotel or motel with forty (40) or more lodging units. Recreational Vehicle parks and Campgrounds are not included D "Operator" means the Operator of a Lodging Business, whether in the capacity of owner, general manager, lessee, sub - lessee, mortgagee in possession, licensee, designee, or any other similar capacity E. The "promotion of tourism and convention business" means activities and expenditures designed to increase tourism and convention business, including but not limited to, advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists to the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County F "Tourism Promotion Charge" means the charge imposed by the City of Yakima on the furnishing of lodging by a Lodging Business within the Yakima County Tourism Promotion Area for the purpose of providing for funding of the promotion of convention and tourism business, under the authority of RCW 35 101 050, in Yakima County G "Yakima County Tourism Promotion Area" means the Tourism Promotion Area with boundaries that include the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County and which was established by the Ordinance of the City Council of the City of Yakima pursuant to the authority of RCW Chapter 35 101 as authorized by the resolutions of the City Council of the City of Yakima, the City Council of the City of Union Gap, the City Council of the City of Selah, and the County Commissioners of Yakima County adopting the terms of the Agreement. H "Yakima Hotel and Motel Commission" means the Yakima Hotel and Motel Commission, established by the City of Yakima, whose members are appointed by the County Commissioners of Yakima County, the City Council of the City of Yakima, the City Council of the City of Union Gap, and the City Council of the of ORDINANCE - 3 718.01 \rhg \yakima cit \general \tourism promotion ordinance2 Selah to provide recommendations to the City Council of the City of Yakima on proposed uses and projects of the Yakima County Tourism Promotion Area. "Zone" or "Zones" means the distinct geographic sub -area or sub -areas within the Yakima County Tourism Promotion Area as established by Ordinance of the City Council of the City of Yakima 5.99.020 Establishment of Tourism Promotion Area There is hereby established a Yakima County Tourism Promotion Area having boundaries which include the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated area of Yakima County Provided, however, no area within Yakima County which is within the boundaries of any incorporated city or town shall be included within the boundaries of the Tourism Promotion Area unless the city or town has entered into an Agreement prior to the effective date of this Ordinance Distinct geographic zones are established and defined in section 5 99 030 of this chapter 5.99.030 Establishment of Tourism Promotion Area Zones There are hereby established three distinct geographic zones within the Yakima County Tourism Promotion Area. Zone A Zone A encompasses all geographic locations within the area of the City of Yakima defined as follows Downtown core bordered from the centerline of East "D" Street to the North, the centerline of Third Street to the West, the centerline of East Spruce Street to the South and the centerline of Interstate 82 to the East. Zone B Zone B encompasses all geographic locations within the area of the incorporated limits of the City of Yakima, the City of Selah and the City of Union Gap, except the geographic locations that comprise Zone A. Zone C. Zone C encompasses all geographic locations outside Zones A and B, but within the unincorporated area of Yakima County 5.99.040 Tourism Promotion Charge Effective July 1, 2004, in the Zones that are established and described in section 5 99 030 of this chapter, there shall be imposed a Tourism Promotion Charge on the furnishing of lodging by a Lodging Business located in the Yakima County Tourism Promotion Area as follows Zone A. $1 50 per room/day Zone B $0 75 per room/day Zone C $0 50 per room/day ORDINANCE - 4 718.01 \rhg \yakima cit \general \tourism promotion ordinance2 The Tourism Promotion Charges imposed under this chapter are not a tax on the "sale of lodging" for the purposes of calculating the lodging tax limit specified in RCW 82 14 410 5.99 050 Use of Tourism Promotion Charge Revenues The revenues from the Tourism Promotion Charges imposed by the City of Yakima within the Yakima County Tourism Promotion Area shall be used for the following purposes only A. The funding of all activities and expenditures designed to increase tourism promotion and convention business within the Yakima County Tourism Promotion Area as specified in the Yakima County Tourism Promotion Area Budget; and B The marketing of convention and business that benefit local tourism and result in increased convention business within the Yakima County Tourism Promotion Area, and C The marketing of Yakima County to the travel industry in order to benefit local tourism and result in overnight stays within the Yakima County Tourism Promotion Area, and D The marketing of Yakima County to recruit major sporting events in order to promote local tourism resulting in overnight stays within the Yakima County Tourism Promotion Area 5.99 060 Establishment of Yakima Hotel and Motel Commission A. The City Council of the City of Yakima, pursuant to the authority of RCW 35 101 130(1), hereby establishes a nine (9) member Yakima Hotel and Motel Commission to advise the City Council of the City of Yakima on the expenditure of Tourism Promotion Charge revenues by the Yakima County Tourism Promotion Area to fund tourism promotion in Yakima County, which shall be composed of five voting members and four non - voting members who shall be appointed in the manner set forth in this section B Voting Members of the Yakima Hotel and Motel Commission shall be selected by the City Council of the City of Yakima, the City Council of the City of Selah, and the City Council of the City of Union Gap, in the manner set forth in subsections (C) and (D) of this section, from a list of nominees prepared by the Yakima Valley Lodging Association All nominees for voting membership on the Yakima Hotel and Motel Commission must be Operators of Lodging Businesses within the Yakima County Tourism Promotion Area or employed by the Operator of such a Lodging Business ORDINANCE - 5 718.01 \rhg\yakima cit \general \tourism promotion ordinance2 C. The City Council of the City of Selah shall appoint one voting member to represent the City of Selah; the City Council of the City of Union Gap shall appoint two voting members to represent the City of Union Gap; and the City Council of the City of Yakima shall appoint two voting members to represent the City of Yakima. D. One non - voting member of the Commission shall be appointed from the members of the County Commissioners of Yakima County; one non - voting member shall be appointed from the members of the City Council of the City of Yakima; one non - voting member shall be appointed from the members of the City Council of the City of Union Gap; and one non - voting member may be appointed from the members of the City Council of the City of Selah. Non - voting members of the Yakima Hotel —and Motel Commission may participate in all discussions regarding proposed activities and programs by the Yakima County Tourism Promotion Area for the promotion and marketing of tourism in Yakima County but shall not have voting rights. E. The initial voting members of the Yakima Hotel and Motel Commission shall serve staggered terms, with one member serving a one -year time, two members serving two -year terms, and two 'members serving three -year terms. The length of the term for each individual member of the initial Yakima Hotel and Motel Commission shall be chosen by lot at the first meeting of the Commission. Thereafter, all voting members subsequently appointed to the Yakima Hotel and Motel Commission shall serve for three -year terms. F. All of the revenues from Tourism Promotion Charges collected by City Council of the City of Yakima from Lodging Businesses within the jurisdiction of the unincorporated area of Yakima County, the City of Yakima, the City of Union Gap, and the City of Selah shall be allocated by the City Council of the City of Yakima in accordance with the Annual Budget for the Yakima County Tourism Promotion Area. The Yakima Hotel and Motel Commission shall make a recommendation to the City Council of the City of Yakima on all Annual Budgets; however, the City Council of the City of Yakima shall have the ultimate authority to set and approve all. Annual Budgets. 5.99.070 Modification or Disestablishment of the Tourism Promotion Area A. The City Council of the City of Yakima, by appropriate action, may modify the provisions of this Ordinance or provide for the disestablishment of the Yakima County Tourism Promotion Area, after adopting a resolution of intention to such effect. Such resolution of intention shall describe . the change or changes proposed, or indicate that it is the intention to disestablish the Yakima County Tourism Promotion Area, and shall state the time and place of a public hearing to be held by the City Council of the City of Yakima to consider the proposed action. ORDINANCE - 6 718.01 \rhg \yakima cit \general \tourism promotion ordinance2 B. If the Operators of Lodging Businesses which paid over forty percent (40 %) of the Tourism Promotion Charges imposed within the Yakima County Tourism Promotion Area during the preceding calendar year file a petition with the City Council of the City of Yakima or the Yakima Hotel and Motel Commission requesting that the City Council of the City of Yakima adopt a resolution of intention to modify or disestablish the Yakima County Tourism Promotion Area, the City Council of the City of Yakima shall adopt such resolution and act upon it as required by Iavv. Signatures on such petition shall be those of a duly authorized representative of the operators of Lodging Businesses in the Yakima County Tourism Promotion Area. In the event of failure on the part of the City Council of the City of Yakima to honor this request the participating local governments reserve the right to withdraw from this agreement upon three (3) months notice to the other participating local governments. Provided, however, the effective date of any modification or withdrawal shall be coordinated with the Washington State Department of Revenue in conjunction with its responsibility to administer the Tourism Promotion Charges imposed pursuant to this chapter. C. In the event a resolution under subsections A or B of this section proposes disestablishment of the Yakima County Tourism Promotion Area, the City Council of the City of Yakima by Ordinance shall disestablish the Yakima County Tourism Promotion Area; unless at such hearing, protest against disestablishment is made by the operators of Lodging Businesses paying over fifty percent (50 %) of the Tourism Promotion Charges in the Yakima County Tourism Promotion Area. 5.99.080 Administration /Collection of Tourism Promotion Charges The Tourism Promotion Charges imposed under this chapter shall be administered by the • Washington State Department of Revenue and shall be collected by Lodging Businesses from persons taxable by the state under RCW Chapter 82.08. The provisions of RCW Chapter 82.32 apply to the Tourism Promotion Charges imposed under this chapter. The Tourism Promotion Charges collected by the Washington State Department of Revenue shall be deposited by the Department in the local tourism promotion account created and maintained by the State Treasurer. All receipts from the Tourism Promotion Charges imposed hereunder must be deposited into this account. Expenditures from the account may only be used for tourism promotion resulting in overnight stays in the Tourism Promotion area Lodging Businesses.. The State Treasurer shall distribute the money in the account on a monthly basis to the City of Yakima. 5.99.090 Inspection of Records All Lodging Businesses subject to the collection of the Tourism Promotion Charges, as set forth in this chapter, and the City Council of the City of Yakima consent to the inspection of such records as are deemed necessary by the Washington State Department of Revenue pursuant to applicable statues, rules or regulations. ORDINANCE - 7 718.01 \rhg \yakima cit \general \tourism promotion ordinance2 5.99 100 Contract with State for Administration The Mayor of the City of Yakima, or a majority of the City Council of the City of Yakima, is authorized to enter into contract(s), at other than an open meeting, with the Washington State Department of Revenue for the administration of the charge imposed pursuant to this Ordinance 5.99.110 Violation /Penalties Any person, firm or corporation who fails or refuses to collect the charge as required under the terms of this Ordinance with the intent to violate the provisions of this Ordinance or to gain some advantage or benefit, either directly or indirectly, and any guest who refuses to pay any charge due under this Ordinance, shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by imprisonment in the County jail for a maximum term fixed by the court of not more than ninety (90) days, or by a fine in the amount fixed by the court of not more than $1,000 00 or by both such imprisonment and fine Provided, however, the penalty provided for under the terms of this section shall be in addition to any other provisions provided for by law 5.99120 Severability If any part or provision of this Ordinance, or its application to any person or circumstance is held invalid, it is the intent of the City Council of the City of Yakima that the remainder of this Ordinance, or its application of the provisions to other persons or circumstances is not affected Section 2 Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its passage, approval, and publication, as provided by law and by the Charter of the City of Yakima. Collection of the Tourism Promotion Charges shall commence on July 1, 2004, unless otherwise amended by ordinance of the City of Yakima. PASSED BY THE CITY COUNCIL OF THE CITY OF YAKIMA, signed and approved this 13th day of April, 2004 /' Paul P George, Mayor ATTEST 1<ctiug,vt_. > 2 E6-e}1.1. City Clerk Publication Date 4/16/04 Effective Date 5/16/04 ORDINANCE - 8 718.01 \rhg \yakima cit \general \tourism promotion ordinance2 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No For Meeting of April 13, 2004 ITEM TITLE. Consideration of adoption of legislation establishing a tourism promotion area pursuant to Chapter 35 101 RCW, including. A. Public Hearing to consider the establishment of a tourism promotion area pursuant to Chapter 35 101 RCW, and B Consideration of ordinance relatmg to the establishment of a Tourism Promotion Area pursuant to RCW Chapter 35101, imposing a charge on the furnishing of lodging by a lodging business located in the tourism promotion area, providing for the collection of the charge, providing for the administration of the charge, and other matters related thereto, and C. Consideration of adoption of a resolution authorizing and approving an interlocal cooperation act agreement with the City of Yakima, City of Union Gap, City of Selah, and Yakima County relatmg to the establishment of a Yakima County tourism promotion area. SUBMITTED BY Glenn Rice, Assistant City Manager CONTACT PERSON/TELEPHONE. Glenn Rice, Assistant City Manager, 575 -6040 SUMMARY EXPLANATION Legislation in Chapter 35 101 RCW on "Tourism Promotion Areas" was enacted durmg the 2003 State Legislative Session. This legislation allows cities and counties to contract to establish a "tourism promotion area" (TPA) whereby the hotels and motels in such an area may be assessed fees to be used for tourism promotion. Pursuant to RCW 35101 020, an Initiation Petition to Establish a Tourism Promotion Area for the purpose of establishing a tourism promotion area was filed with the City of Yakima Clerk on March 29, 2004. The accounting firm of LeMaster & Daniels certified that it includes the signatures of the persons who operate lodging businesses in the proposed area who would pay sixty or more percent of the proposed charges. (Continued on page 2.) Resolution X Ordinance X Other (Specify) Contract Mail to (name and address) Phone: Fundmg Source: APPROVED FOR SUBMITTAL. f 7` i i� TC� l City Manager STAFF RECOMMENDATION A. Pass Ordinance, B Adopt Resolution. BOARD /COMMISSION RECOMMENDATION COUNCIL ACTION (A) Ordinance passed. ORDINANCE NO. 2004 - 17 (B) Resolution adopted. RESOLUTION NO. R- 2004 -54 Agenda Statement Tourism Promotion Area April 13, 2004 Page -2 (Contanuation of Summary Explanation.) Pursuant to RCW 35 101 030, a legislative authority shall, after receiving a valid intention petition, adopt a resolution of intention to establish a tourism promotion area. On March 30, 2004, a resolution of intention was adopted by the City Council (Resolution R- 2004 -53) A public hearing was set for April 13, 2004. The initiation petition asked that three fee zones be established as follows. Zone A. Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the City of Yakima defined as follows. Downtown core bordered from the centerline of East "D" Street to the North, the centerlme of Third Street to the West, the centerline of East Spruce Street to the South and the centerline of Interstate 82 to the East; Zone B Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the incorporated limits of the City of Yakima, the City of Selah and the City of Union Gap, except those lodging businesses that are located in Zone A, and Zone C. Lodgmg businesses that are classified as hotels or motels with 40 or more lodging units that are located outside Zones A and B, but within the unincorporated area of Yakima County The tourism promotion fees that would be charged in each zone are as follows: Zone A. $1.50 per room/ day; Zone B $0 75 per room / day; Zone C. $0.50 per room/ day The money would be origmally collected by the Washington State Department of Revenue and would then be paid to the City of Yakima which will administer the funds in accord with an Interlocal Agreement between the Cities of Yakima, Selah and Uruon Gap and Yakima County Pursuant to the proposed ordinance, a nine- member Yakima Hotel and Motel Commission would be created to advise the City on how the money should be spent. There is also a provision to dissolve the TPA on protest of businesses paying at least 40% of the fees unless, at a hearing for such purpose, a protest against dissolution of those paying over 50% of the fees is submitted. Pursuant to RCW 35 101 030 and 35 101 070, a public hearing is scheduled for April 13, 2004. RCW 35 101 070 specifies that the legislative authority shall hear all protests and receive evidence for or against the proposed action at the public hearing Only after the legislative authority has conducted a public hearing under RCW 35 101 030, may the legislative authority adopt an ordinance to establish a tourism promotion area. After the hearing under RCW 35 101 030 has been conducted, the proposed ordinance to establish a tourism promotion area will be considered. The City Council will also consider the adoption of a resolution approving an interlocal cooperation act agreement with two other cities (Union Gap and Selah). and Yakima County relating to the establishment of a tourism promotion area. (Ik) tourism promotion area 4 -14.hh AGREEMENT FOR STATE ADMINISTRATION - OF YAKIMA COUNTY TOURISM PROMOTION AREA Contract No. AGRO40002 THIS AGREEMENT (Agreement) is entered into by and between the City of Yakima (City) and the State of Washington Department of Revenue (Department) for the administration of tourism promotion charges imposed by the City This Agreement is effective July 1, 2004 PURPOSE. WHEREAS, The 58th Legislature of the State of Washington has by Chapter 35 101 RCW authorized qualifying cities, towns, and counties to impose a lodging charge on the furnishing of lodging by a lodging business, and WHEREAS, the City has adopted an ordinance, copy attached, imposing these charges, and WHEREAS, The Legislature of the State of Washington has by Chapter 35 101 RCW authorized the City to impose a lodging charge to be expended exclusively for tourism promotion purposes, and WHEREAS, It is provided in Chapter 35 101 RCW that the City imposing a lodging charge by ordinance shall contract with the Department for the administration and collection of said charges, and WHEREAS, The City has by ordinance fixed and imposed a room charge in Zone A of one dollar fifty cents ($1 50), Zone B of seventy -five cents ($0 75), Zone C of fifty cents ($0 50) per night of stay in addition to all other sales and use taxes and any special assessments that may be levied, and WHEREAS, an Interlocal Cooperation Act agreement for the establishment of the Yakima County Tourism Promotion Area was executed by and between the City of Yakima, the City of Union Gap, the City of Selah, and Yakima County, and WHEREAS, the City has designated, by ordinance, the start date of the lodging charge and that the City shall contract with the Department for collection of the charge, NOW, THEREFORE, to provide for the administration of lodging charges the Parties agree as follows 1 The Department shall exclusively perform all functions incident to the administration and collection of the lodging charges imposed by the said ordinance. AGREEMENT FOR STATE ADMINISTRATION OF YAKIMA COUNTY TOURISM PROMOTION AREA - 1 718- 011Ijp \yakima cit \general \tourism state admin agreement The Department shall collect the charge from lodging businesses that are taxable by the state under Chapter 82 08 RCW 2 The City shall provide the Department with copies of any new and /or additional ordinance(s) imposing any new charge(s) or changing the rate of any charge Such copies shall be provided to the Department no later than 75 days prior to the effective date of the ordinance(s) The Department shall administer and collect the charge(s) identified in the new and /or additional ordinance(s) so submitted 3 The Department shall begin collecting the lodging charges by the end of the month following the first taxable period for which lodging charges are first imposed pursuant to ordinance In accordance with Chapter 35 101 RCW, the charges so collected shall be deposited by the Department in the local tourism promotion account in the custody of the State Treasurer The State Treasurer has the authority to distribute the money from the account to the City on a monthly basis for the Yakima County's tourism promotion program. 4 The Department shall perform its duties hereunder so that as far as possible the lodging charges shall be administered and collected uniformly with the state's sales and use taxes. 5 The City shall have the right from time to time to examine the records of the Department as they concern the City or the taxpayers of the City subject to the ordinance(s) 6 Any refunds and credits that the Department finds are owed relating to the lodging charges shall be refunded from the City's account to the taxpayer 7 If the City determines that a redistribution of charges is required based upcn an improper distribution, it must provide the Department with 10 days notice prior to any such redistribution However, no redistribution shall be made as to amounts originally distributed earlier than six monthly periods prior to the monthly period in which the Department obtains knowledge of the improper distribution 8 The Department shall provide taxpayer information, documentation, and reports to the City in accordance with the disclosure limitations of RCW 82 32 330 Authorized representatives of the City requesting and receiving confidential information will sign a Department of Revenue Secrecy Clause and comply with RCW 82.32 330 9 The Parties agree to establish and maintain open lines of communication and to work cooperatively in order to improve administration and public understanding of the City charges Either Party may initiate a meeting, to be held at a mutually convenient time and place, to share information and to discuss matters related to administration and collection of the City charges AGREEMENT FOR STATE ADMINISTRATION OF YAKIMA COUNTY TOURISM PROMOTION AREA - 2 718- 01 \Ijp \yakima cit \general \tourism state admin agreement 10 The Parties are committed to resolving any dispute, which may arise during the administration of this Agreement prior to initiating litigation In the event that a dispute arises under this Agreement, the Parties by mutual agreement may elect non- binding mediation, before a mutually agreed upon mediator, with each Party responsible for a proportionate share of the costs Unless the Parties agree otherwise, the mediation shall be conducted in Yakima or Olympia, Washington. This remedy is not intended to be exclusive of other remedies existing in law, by statute or otherwise If litigation is filed by either Party to enforce any of the provisions of this Agreement, the venue of the action brought hereunder shall be in the Superior Court for Thurston County 11 To the extent permitted by law, the City agrees to defend and hold harmless the Department and /or the State of Washington from claims that challenge the authority of the City to impose the lodging charge as identified in the aforementioned resolutions The City agrees that in the event there shall be a legal challenge to the resolutions or otherwise, the Department shall not be obligated to represent the City or otherwise to defend its position in any proceeding relating to such challenge 12 This Agreement shall take effect at 12:01 AM July 1,2004, and shall thereafter be automatically renewed on December 31, of each year unless one of the Parties gives written notice of termination on or before November 1, of each such year The Parties to this Agreement will notify each other in a timely manner when they find it necessary to request an amendment to this Agreement. IN WITNESS WHEREOF, the State of Washington, Department of Revenue and the City of Yakima have executed this contract as of the and year writt below 05 Date William N Rice, Director State Department of Revenue f8 X00`( / CP 1 Date George, Mayor City of Yakima City Contract No 2004 -65 Ordinance No 2004 -17 Date Approved as to form: Assistant Attorney General State of Washington AGREEMENT FOR STATE ADMINISTRATION OF YAKIMA COUNTY TOURISM PROMOTION AREA - 3 718- 01 \Ijp \yakima cit \general \tourism state admin agreement RESOLUTION NO. R- 2004 - 5 4 A RESOLUTION authorizing the Mayor of the City of Yakima to enter into an Interlocal Cooperation Act Agreement with the City of Selah, the City of Union Gap, and Yakima County to establish a Tourism Promotion Area, pursuant to RCW Chapters 35 101 and 39.34. WHEREAS, the 2003 State Legislature of the State of Washington has recognized the importance of tourism promotion in the State of Washington and passed Engrossed Substitute Senate Bill No 6026, codified as RCW Chapter 35101, authorizing the establishment of a Tourism Promotion Area by a city to permit the levy of Special Assessments to fund tourism promotion, and WHEREAS, the Operators of Lodging Businesses within the City of Yakima and the City of Union Gap have presented an Initiation Petition to Establish a Tourism Promotion Area ( "Initiation Petition ") to the City Council of the City of Yakima seeking to have the City Council of the City of Yakima establish a Yakima County Tourism Promotion Area, specifically including the=areas447 jurisdictions of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County, pursuant to .the terms of RCW Chapter 35101, and WHEREAS, the City Council of the City of Yakima has the authority, pursuant to the terms of RCW Chapter 35101, to enter into an Interlocal Cooperation Act Agreement with the City of Selah, the City of Union Gap, and Yakima County to establish a Tourism Promotion Area, pursuant to the provisions of the Initiation Petition received from the Operators of Lodging Businesses, to include within the boundaries of the propdsedrYakimaICounty ,: Tourism Promotion Area, the area within the jurisdictions of the City of Yakima, the City of Selah, the City of Union Gap and the unincorporated areas of Yakima County; and WHEREAS, the City Council of the City of Yakima adopted a "Resolution of Intention by the City Council of the City of Yakima to Establish a Tourism Promotion Area" (Resolution No. R- 2004 -53) at a meeting held on the 30th day of March, 2004, pursuant to the request of the Initiation Petition submitted by the Operators of Lodging Businesses within the City of Yakima and the City of Union Gap; and WHEREAS, Resolution No. R- 2004 -53, entitled "Resolution of Intention by the City Council of the City of Yakima to Establish a Tourism Promotion Area" for the promotion of tourism and convention business within Yakima County was duly published on April 2, 2004, and copies thereof were mailed to each Lodging Business in the proposed Yakima County Tourism Promotion Area, as provided by law and RCW 35 101.060; WHEREAS, the City Council of the City of Yakima held a public hearing on April 13, 2004, pursuant to RCW 35 101.030 and 35 101.070; and Page -1 (Il() agenda tourism promotion area.hh WHEREAS, the City Council of the City of Union Gap, the City Council of the City of Selah, and the County Commissioners of Yakima County have or may by appropriate legislative action, authorized the execution of an Interlocal Cooperation Act Agreement with the City of Yakima to permit the establishment of a Yakima County Tourism Promotion Area to include a collection of Special Assessments from Lodging Businesses within their respective jurisdictions, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Mayor of the City of Yakima is hereby authorized and directed to enter into and execute an Interlocal Cooperation Act Agreement with the City of Selah, the City of Union Gap, and Yakima County to establish a Tourism Promotion Area, pursuant to RCW Chapters 35 101 and 39.34. ADOPTED BY THE CITY COUNCIL this 13th day of April, 2004. S/ PAUL GEORGE Paul P George, Mayor ATTEST /s/ KAREN S. ROBERTS City Clerk Page - 2 (llc) agenda tourism promotion area.hh INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA THIS AGREEMENT ( "Agreement ") dated this 13th day of April, 2004, is made and entered into by and among the CITY OF YAKIMA, a municipal corporation of the State of Washington, the CITY OF SELAH, a municipal corporation of the State of Washington, the CITY OF UNION GAP, a municipal corporation of the State of Washington, and YAKIMA COUNTY, a Class A county of the State of Washington, pursuant to the authority of RCW Chapter 39 34, and RCW Chapter 35 101 authorizing the establishment of a Tourism Promotion Area to impose Tourism Promotion Charges to fund the promotion of tourism and convention business within the Tourism Promotion Area. WHEREAS, pursuant to the provisions of the Revised Code of Washington, the City Council of the City of Yakima has the care of City property and the management of City funds and business, and WHEREAS, RCW Chapter 35 101, authorizes the establishment of a Tourism Promotion Area by a city to permit the imposition of Tourism Promotion Charges to fund the promotion of tourism and convention business within the Tourism Promotion Area boundaries, and WHEREAS, the Operators of Lodging Businesses within the City of Yakima and the City of Union Gap have presented an Initiation Petition to Establish a Tourism Promotion Area ( "Initiation Petition ") to the City Council of the City of Yakima seeking to have the City Council of the City of Yakima establish a Yakima County Tourism Promotion Area, specifically including the areas within the jurisdictions of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County pursuant to the terms of RCW Chapter 35 101, and WHEREAS, the Initiation Petition submitted to the City Council of the City of Yakima, a copy of which is attached hereto as Exhibit "A ", included (1) A description of the boundaries of the proposed Yakima County Tourism Promotion Area, including the areas within the jurisdiction of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County; and (2) The proposed uses and projects to which the proposed revenue from the Tourism Promotion Charges imposed by the Yakima County Tourism Promotion Area would be dedicated, and the total estimated costs of such uses, and INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 1 718.01 \rhg\yakima cit\general\tourism interlocal agreement (3) The estimated rate for the Tourism Promotion Charges to be imposed on the furnishing of lodging by Lodging Businesses in various Zones within the Yakima County Tourism Promotion Area, and (4) The signatures of the persons who operate Lodging Businesses in the proposed Yakima County Tourism Promotion Area who would pay over sixty percent (60 %) of the proposed Tourism Promotion Charges imposed within the area, and WHEREAS, the City Council of the City of Yakima has the authority, pursuant to the authority of RCW Chapters 35 101 and 39 34, to enter into an Interlocal Cooperation Act Agreement with the City of Selah, the City of Union Gap, and Yakima County to establish a Tourism Promotion Area, pursuant to the provisions of the Initiation Petition received from the Operators of Lodging Businesses, to include within the boundaries of the proposed Yakima County Tourism Promotion Area the area within, the jurisdictions of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County; and WHEREAS, on the 29 day of March, 2004, the City Clerk of the City of Yakima received an Initiation Petition authorized by RCW 35 101 020 from the Operators of Lodging Businesses located within the City of Yakima and the City of Union Gap requesting the conduct of a public hearing by the City Council of the City of Yakima, pursuant to the authority of RCW Chapter 35 101, for the purposes of considering the establishment of a Yakima County Tourism Promotion Area to provide funds for the promotion of tourism and convention business within the jurisdictions of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County; and WHEREAS, on the 30th day of March, 2004, the City Council of the City of Yakima adopted a resolution entitled a "Resolution of Intention by the City Council of the City of Yakima to Establish a Tourism Promotion Area" for the promotion of tourism and convention business within the area of the jurisdiction of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County, describing the boundaries of the proposed Yakima County Tourism Promotion Area, the proposed uses and projects to which the proposed revenues from Tourism Promotion Charges imposed within the Yakima County Tourism Promotion Area would be dedicated and setting the proposed rates for the Tourism Promotion Charges to be imposed on the furnishing of lodging by Lodging Businesses to fund the uses and projects of the Yakima County Tourism Promotion Area, estimating the total cost for the proposed activities and programs for the use of funds received by the Yakima County Tourism Promotion Area, fixing the date, time and place of a public hearing to be held by the City Council of the City of Yakima to consider the establishment of such a INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 2 718.01\rhg\yakima cit \general\tourism interlocal agreement Yakima County Tourism Promotion Area, and directing the giving of notice of such public hearing, and WHEREAS, Resolution No R- 2004 -53, entitled "Resolution of Intention by the City Council of the City of Yakima to Establish a Tourism Promotion Area" for the promotion of tourism and convention business within the area of the jurisdiction of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County was duly published on April 2, 2004, and copies thereof were mailed to each Lodging Business in the proposed Yakima County Tourism Promotion Area on April '1, 2004, as provided by law; and WHEREAS, the City Council of the City of Yakima held a public hearing in City Council Chambers, Yakima City Hall, 129 North 2 Street, Yakima, Washington 98901, at about 2 00 p m. on the 13 day of April, 2004, pursuant to the provisions of RCW 35 101 030 and 35 101 070, concerning the formation of a Tourism Promotion Area, and WHEREAS, the City Council of the City of Union Gap, the City Council of the City of Selah, and the County Commissioners of Yakima County have by appropriate legislative action, authorized the execution of an Interlocal Cooperation Act Agreement with the City of Yakima to permit the establishment of a Yakima County Tourism Promotion Area to include a collection of Tourism Promotion Charges from Lodging Businesses within their respective jurisdictions, NOW, THEREFORE, for and in consideration of the promises set forth hereafter, the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County hereby agree as follows 1 Definitions As used in this agreement, the following terms, unless the context otherwise dictates, shall have the following meanings 1 1 "Agreement" shall mean this Interlocal Cooperation Act Agreement for Establishment of Yakima County Tourism Promotion Area between the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County for the establishment of a Yakima County Tourism Promotion Area by the City of Yakima as authorized by RCW 35 101 040(2) 1.2 "Annual Budget" shall mean the Yakima County Tourism Promotion Area budget for a fiscal year, as adopted or amended by the City Council of the City of Yakima, after the receipt of a recommendation from the City of Yakima Hotel and Motel Commission, identifying all estimated revenue from Tourism Promotion Charges for the fiscal year, and providing for all proposed uses of Tourism Promotion Charge revenue for the purpose of promoting tourism and INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 3 718.011rhg1yakima cit\general\tourism interlocal agreement convention business in the Yakima County Tourism Promotion Area for the ensuing fiscal year 1 3 "Lodging Business" means a business located within the Yakima County Tourism Promotion Area that furnishes lodging taxable by the state under RCW Chapter 82 08 that has forty (40) or more lodging units 1 4 "Operator" means the Operator of a Lodging Business, whether in the capacity of owner, general manager, lessee, sublessee, mortgagee in possession, licensee, designee, or any other similar capacity 1 5 "The Yakima Hotel and Motel Commission" means the Yakima Hotel and Motel Commission, established by the City of Yakima, whose members are appointed by the City Council of the City of Yakima, the City Council of the City of Selah, the City Council of the City of Union Gap, and the County Commissioners of Yakima County, to provide recommendations to the City Council of City of Yakima on proposed uses and projects of the Yakima County Tourism Promotion Area, pursuant to the provisions of RCW 35 101 130(1), as provided in this Agreement. 16 The "promotion of tourism and convention business" means activities and expenditures designed to increase tourism and convention business, including but not limited to, advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists, and operating tourism destination marketing organizations. 1 7 "Tourism Promotion Charge" means the charge imposed by the City of Yakima on the furnishing of lodging by a Lodging Business within the Yakima County Tourism Promotion Area under the authority of RCW 35 101 050 for the purpose of providing for funding of the promotion of tourism and convention business in Yakima County 1 8 "TPA Manager" shall mean a professional tourism destination marketing person or organization, or other similar person or organization, employed by the City Council to administer the operation of the Yakima County Tourism Promotion Area. 1 9 "Yakima County Tourism Promotion Area" means the Tourism Promotion Area comprising the jurisdiction of the City of Yakima, the City of Union Gap, the City of Selah, and the unincorporated area of Yakima County as created by the ordinance of the City Council of the City of Yakima, pursuant to the authority of RCW Chapter 35 101, as authorized by the resolutions of the City Council of the City of Yakima, the City Council of the City of Selah, the City INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 4 718.01 \rhg \yakima cit \general\tourism interlocal agreement Council of the City of Union Gap, and the County Commissioners of Yakima County, adopting the terms of this Agreement. 2 Tourism Promotion Area to be Established by the City of Yakima 2 1 It is hereby understood and agreed by the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County that the City of Yakima, pursuant to the authority of RCW 35 101 040(2), shall establish a Tourism Promotion Area designated the Yakima County Tourism Promotion Area to include the entire areas within the jurisdictions of the City of Yakima, the City of Selah and the City of Union Gap, and the unincorporated area of Yakima County 2.2 It is hereby understood and agreed by the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County that the purpose of permitting the City Council of the City of Yakima to form the Yakima County Tourism Promotion Area under RCW 35 101 040(2) is to provide revenue to fund the promotion of tourism and convention business within the area of the jurisdiction of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County 3 Imposition of Tourism Promotion Charges on the Furnishing of Lodging by Lodging Businesses within the Yakima County Tourism Promotion Area. 31 The City Council of the City of Yakima will impose Tourism Promotion Charges on the furnishing of lodging by Lodging Businesses within the Yakima County Tourism Promotion Area in accordance with the Zones and levels of Tourism Promotion Charges as set forth in Resolution No R- 2004 -53 and subparagraphs 3.2 and 3 3 below 3 2 It is understood and agreed by and between the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County that the Yakima County Tourism Promotion Area shalt include the following three (3). Zones Zone A. Zone A encompasses all geographic locations within the area of the City of Yakima defined as follows Downtown core bordered from the centerline of East "D" Street to the North, the centerline of Third Street to the West, the centerline of East Spruce Street to the South and the centerline of Interstate 82 to the East. Zone B Zone B encompasses all geographic locations within the area of the incorporated limits of the City of Yakima, the City of Selah and the City of Union Gap, except the geographic locations that comprise Zone A. INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 5 718.01\rhg \yakima cit \general \tourism interlocal agreement Zone C Zone C encompasses all geographic locations outside Zones A and B, but within the unincorporated area of Yakima County 3 3 It is understood and agreed by and between the City of Yakima, the City of Selah, the City of Union Gap and Yakima County that the Operators of Lodging Businesses within the Yakima County Tourism Promotion Area operating in the above- described Zones will be subject to Tourism Promotion Charges to be imposed as follows Zone A. $1 50 per room/day Zone B $0 75 per room/day Zone C $0 50 per room/day 3 4 Any change in the Tourism Promotion Charge rates for any Zone as set forth hereinabove shall be made only by amendment of the resolution by the City Council of the City of Yakima, with the approval of the City Council of the City of Selah, the City Council of the City of Union Gap, and the County Commissioners of Yakima County No increase in the Tourism Promotion Charge rates for any Zone or change in the boundaries of any Zone shall be made by the City Council of the City of Yakima except upon the affirmative recommendation of the Yakima Hotel and Motel Commission. 4 Use of Tourism Promotion Charge Revenues for the Promotion of Tourism and Convention Business in Yakima County 4 1 It is understood and agreed that all of the revenues from the Tourism Promotion Charges collected by the City of Yakima from Lodging Businesses within the jurisdiction of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County shall be allocated by the City Council of the City of Yakima in accordance with the Annual Budget for the Yakima County Tourism Promotion Area The Yakima Hotel and Motel Commission shall make a recommendation to the City Council of the City of Yakima on all Annual Budgets The City Council of the City of Yakima shall have the ultimate authority to set and approve all Annual Budgets 4.2 The revenues from the Tourism Promotion Charges imposed by the City of Yakima on the furnishing of lodging by Lodging Businesses situated within the Yakima County Tourism Promotion Area shall be used for the following purposes only (1) The funding of all activities and expenditures designed to increase tourism and convention business within the area of the INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 6 718.011rhg\yakima citlgeneralltourism interlocal agreement • jurisdiction of the City of Yakima, the City of Selah, the City of Union Gap, and the unincorporated areas of Yakima County as specified in the Yakima County Tourism Promotion Area Budget; and (2) The marketing of tourism and convention business that benefit local tourism and result in overnight stays within the Yakima County Tourism Promotion Area, and (3) The marketing of Yakima County to the travel industry in order to benefit local tourism and convention business and result in overnight stays within the Yakima County Tourism Promotion Area, and (4) The marketing of Yakima County to recruit major sporting events in order to promote local tourism resulting in overnight stays within the Yakima County Tourism Promotion Area. 5 Establishment of the Yakima Hotel and Motel Commission 5 1 The City Council of the City of Yakima, pursuant to the authority of RCW 35 101 130(1), hereby establishes a nine (9) member Yakima Hotel and Motel Commission to advise the City Council of the City of Yakima on the expenditure of Tourism Promotion Charge revenues by the Yakima County Tourism Promotion Area to fund the promotion of tourism and convention business in Yakima County, which shall be composed of five voting members and four non - voting members who shall be appointed in the manner set forth in this section 5.2 Voting Members of the Yakima Hotel and Motel Commission shall be selected by the City Council of the City of Yakima, the City Council of the City of Selah, and the City Council of the City of Union Gap, in the manner set forth in subsections 5 3 and 5 4 of this section, from a list of nominees prepared by the Yakima Valley Lodging Association All nominees for voting membership on the Yakima Hotel and Motel Commission must be Operators of Lodging Businesses within the Yakima County Tourism Promotion Area or employed by the Operator of such a Lodging Business 5 3 The City Council of the City of Selah shall appoint one voting member to represent the City of Selah, the City Council of the City of Union Gap shall appoint two voting members to represent the City of Union Gap, and the City Council of the City of Yakima shall appoint two voting members to represent the City of Yakima. 5 4 One non - voting member of the Commission shall be appointed from the members of the County Commissioners of Yakima County; one non - 1 INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 7 718.01 \rhg \yakima cit \general \tourism interlocal agreement voting member shall be appointed from the members of the City Council of the City of Yakima, one non - voting member shall be appointed from the members of the City Council of the City of Union Gap, and one non - voting member shall be appointed from the members of the City Council of the City of Selah Non - voting members of the Yakima Hotel -Motel Commission may participate in all discussions regarding proposed activities and programs by the Yakima County Tourism Promotion Area for the promotion and marketing of tourism and convention business in Yakima County but shall not have voting rights 5 5 The initial voting members of the Yakima Hotel and Motel Commission shall serve staggered terms, with one member serving a one -year time, two members serving two -year terms, and two members serving three -year terms The length of the term for each individual member of the initial Yakima Hotel and Motel Commission shall be chosen by lot at the first meeting of the Commission Thereafter, all voting members subsequently appointed to the Yakima Hotel and Motel Commission shall serve for three -year terms 5 6 All of the revenues from Tourism Promotion Charges collected by City Council of the City of Yakima from Lodging Businesses within the jurisdiction of the unincorporated area of Yakima County, the City of Yakima, the City of Union Gap, and the City of Selah shall be allocated by the City Council of the City of Yakima in accordance with the Annual Budget for the Yakima County Tourism Promotion Area The Yakima Hotel and Motel Commission shall make a recommendation to the City Council of the City of Yakima on all Annual Budgets, however, the City Council of the City of Yakima shall have the ultimate authority to set and approve all Annual Budgets 6 Contract For Management of the Yakima County Tourism Promotion Area. 61 The City Council of the City of Yakima shall contract with a professional TPA Manager The contract shall require the professional TPA Manager to comply with all applicable provisions of law, including RCW Chapter 35 101, et. seq , all City of Yakima resolutions and ordinances, and all regulations and ordinances lawfully imposed by Yakima County, the state auditor or other state agencies 6 2 The TPA Manager will be responsible for administering the activities and programs of the Yakima County Tourism Promotion Area and to prepare an Annual Budget for the Yakima County Tourism Promotion Area to be reviewed and approved by the Yakima Hotel and Motel Commission and submitted to the City Council of the City of Yakima on or before November 1 of each year The TPA Manager shall also act as staff to the Yakima Hotel and Motel Commission in conjunction with assisting it in determining what activities and programs to recommend for funding from the Tourism Promotion Charges. INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 8 718.01 \rhg \yakima cit \general \tourism interlocal agreement f 6 3 The Annual Budget for the Yakima County Tourism Promotion Area shall consist of (1) A list of the Lodging Businesses subject to Tourism Promotion Charges and an estimate of the revenue to be received from all such Lodging Businesses, and (2) A statement of the proposed budget for all Yakima County Tourism Promotion Area activities and programs recommended by the Yakima Hotel and Motel Commission to be funded from Tourism Promotion Charges during the ensuing fiscal year 6 4 All Tourism Promotion Charges received by the City of Yakima from the Washington State Department of Revenue and any interest therein shall be deposited by the City of Yakima in a special account. Payments to the TPA Manager will be made as provided for in the agreement between the City of Yakima and the TPA Manager Provided, however, no Tourism Promotion Charges shall be dispersed in any fiscal year until after the adoption of that year's fiscal Annual Budget. Provided further, the City of Yakima shall not expend in any fiscal year Tourism Promotion Charges in excess of the approved fiscal Annual Budget. 7 Modification or Disestablishment of the Yakima County Tourism Promotion Area 7 1 The City Council of the City of Yakima, by appropriate action, may modify the provisions of the resolution establishing the Yakima County Tourism Promotion Area or provide for the disestablishment of the Yakima County Tourism Promotion Area, after adopting a resolution of intention to such effect. Such resolution of intention shall describe the change or changes proposed, or indicate that it is the intention to disestablish the Yakima County Tourism Promotion Area, and shall state the time and place of a public hearing to be held by the City Council of the City of Yakima to consider the proposed action 7.2 If the Operators of Lodging Businesses that paid over forty percent (40 %) of the Tourism Promotion Charges imposed within the Yakima County Tourism Promotion Area during the preceeding calendar year file a petition with the City Clerk of the City of Yakima requesting the City Council of the City of Yakima to adopt a resolution of intention to modify or disestablish the Yakima County Tourism Promotion Area, the City Council of the City of Yakima shall adopt such resolution and act upon it as required by law Signatures on such petition shall be those of duly authorized representatives of the Operators of Lodging Businesses in the Yakima County Tourism Promotion Area In the event INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 9 718 01 \rhg \yakima cit \gerieral\tourism interlocal agreement • of failure on the part of the City Council of the City of Yakima to honor this request, the participating local governments reserve the right to withdraw from this Agreement upon three (3) months notice to the other participating local governments 7 3 In the event the resolution proposes disestablishment of the Yakima County Tourism Promotion Area, the City Council of the City of Yakima shall disestablish the Yakima County Tourism Promotion Area, unless at such public hearing, protest against disestablishment is made by the Operators of Lodging Businesses paying over fifty percent (50 %) of the Tourism Promotion Charges in the Yakima County Tourism Promotion Area 8 Miscellaneous Provisions 8 1 Duration and Termination of this Agreement. This Agreement shall continue in full force and effect until such time as the Yakima County Tourism Promotion Area is disestablished by action of the City Council of the City of Yakima as provided in section 7 Notwithstanding the foregoing, any Party to this Agreement may, in its sole discretion, unilaterally withdraw from this Agreement and the Yakima County Tourism Promotion Area, but only upon one year's written notice to the other Parties hereto, mailed to the office of the legislative authority of all other - Parties- hereto, —and not before five (5) years from the date of this Agreement. Such withdrawal shall have the effect of removing the geographic area of the withdrawing Party's jurisdiction, and the Lodging Businesses located therein, from the Yakima County Tourism Promotion Area and terminating all collection of Tourism Promotion Charges within the withdrawing Party's jurisdiction Following termination of this Agreement, the City of Yakima shall be responsible for utilizing any remaining unallocated revenue from Tourism Promotion Charges for use for the promotion of tourism and convention business in the Yakima County Tourism Promotion Area 8 2 Waiver No officer, employee, or agent of the City of Yakima, the City of Selah, the City of Union Gap, or Yakima County has the power, right, or authority to waive any of the conditions or provisions of this Agreement. No waiver of any breach of this Agreement by the City of Yakima, the City of Selah, the City of Union Gap, or Yakima County shall be held to be a waiver of any other or subsequent breach Failure of the City of Yakima, the City of Selah, the City of Union Gap, or Yakima County to enforce any of the provisions of this Agreement or to require performance of any of the provisions herein, shall in no way be construed to be a waiver of such conditions, nor in any way effect the validity of this Agreement or any part hereof, or the right of the City of Yakima, the City of Selah, the City of Union Gap, or Yakima County to hereafter enforce each and every such provision INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 10 718.01\rhg \yakima cit \general \tourism interlocal agreement 8 3 Records. All records prepared, owned, used or retained by the TPA Manager in conjunction with operating or administering the activities and programs of the Yakima County Tourism Promotion Area as provided for under the terms of this Agreement shall be deemed records of the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County and shall be made available by the TPA Manager upon request to the City of Yakima, the City of Selah, the City of Union Gap, Yakima County, the State Auditor or their authorized representatives 8 4 Property and Equipment_ The City of Yakima shall be the owner of all property and equipment purchased by the TPA Manager from Tourism Promotion Charge revenues Provided, however, in the event of the termination of the Agreement with the TPA Manager, the City of Yakima agrees to make the property and /or equipment available to the successor TPA Manager for its use in conjunction with providing similar services Provided further, in the event of disestablishment of the Yakima County Tourism Promotion Area, all property and equipment purchased by the TPA Manager from Tourism Promotion Charge revenues shall be retained by the City of Yakima and used for any lawful purpose 8 5 Integration This Agreement contains all of the terms and conditions agreed upon by the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County concerning the establishment of the Yakima County Tourism Promotion Area by the City Council of the City of Yakima and the collection of Tourism Promotion Charges from Operators of Lodging Businesses within the entire area, including the areas within the jurisdictions of the City of Selah, the City of Union Gap, and Yakima County No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto The parties have read and understand all of this Agreement, and now state that no representation, promise, or agreement not expressed in this Agreement has been made to induce the officials of the City of Yakima, the City of Selah, the City of Union Gap, or Yakima County to execute this Agreement. 8 6 Severabilitv In the event any provision of this Agreement shall be declared by a Court of competent jurisdiction to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be effected or impaired thereby 8 7 Execution of Agreement. This Agreement shall become effective immediately after it is duly adopted by the City Council of the City of Yakima, the City Council of the City of Selah, the City Council of the City of Union Gap, and the County Commissioners of Yakima County, and shall be filed with the City Clerk of the City of Yakima, the City Clerk of the City of Selah, and the City Clerk INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA - 11 718.011rhglyakima cit \general\tourism interlocal agreement of the City of Union Gap, the County Auditor of Yakima County, and the Secretary of State of the State of Washington IN WITNESS WHEREOF, the City of Yakima, the City of Selah, the City of Union Gap, and Yakima County have executed this Agreement by their duly authorized officials pursuant to all requirements of law CITY COUNCIL OF THE CITY OF YAKIMA Paul P George, Mayor ATTEST City Clerk CITY COUNCIL OF THE CITY OF SELAH , Mayor ATTEST City Clerk CITY COUNCIL OF CITY OF UNION GAP , Mayor INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA -12 718 011rhg1yakima cit\general \tourism interlocal agreement s ATTEST City Clerk YAKIMA COUNTY Its ATTEST Clerk of the Board INTERLOCAL COOPERATION ACT AGREEMENT FOR ESTABLISHMENT OF YAKIMA COUNTY TOURISM PROMOTION AREA- 13 718 01 \rhg \yakima cit \general \tourism interlocal agreement S 0 (l got RECEIVED CITY OF YAKIMA INITIATION PETITION TO ESTABLISH '04 11AR 29 1t $ :54 A TOURISM PROMOTION AREA WHEREAS, the 2003 State Legislature of the State of WasfiffiedriAQTY CLERK recognized the irnportarrce of tourism promotion in the State of Washington and passed Engrossed Substitute Senate Bill 6026 which authorized the establishment of a Tourism Promotion Area to levy a Tourism Promotion Charge to fund tourism promotion as defined therein, and WHEREAS, the Lodging Businesses within the City of Yakima desire now to present an Initiation Petition seeking to have the Council of the City of Yakima establish a Tourism Promotion Area pursuant to the terms of Engrossed Substitute Bill 6026, and WHEREAS, pursuant to section 2 of Engrossed Substitute Senate Bill 6026, the Initiative Petition submitted to the City Council must contain the following 1 A description of the boundaries of the proposed Tourism Promotion Area, 2. , The proposed uses and projects to which the proposed revenue from the Tourism Promotion Charge should be dedicated and the total estimated costs of such uses and projects, and 3 The estimated rate for the Special Assessments to be levied on Lodging Businesses who are classified as hotels and motels with 40 rooms or more in various Zones within the Tourism Promotion Area with a proposed breakdown by class of lodging business if such classification is to be used, and 4 The signatures of the persons who operate lodging businesses in the proposed area who would pay sixty percent or more of the proposed Tourism Promotion Charge NOW THEREFORE, the Lodging Businesses who are classified as hotels or motels with 40 rooms or more and are located within the City of Yakima and also within the proposed Tourism Promotion Area do hereby petition the Council of the City of Yakima as follows 1 The boundaries of the Tourism Promotion Area shall be the Cities of Yakima, Union Gap, Selah, and the unincorporated areas of the County of Yakima y , oc o3 EXHIBIT A 2 The revenue from the Tourism Promotion Charge collected from the Operators of Lodging Businesses who are classified as Hotels or Motels within the Tourism Promotion Area shall be dedicated to the following uses and projects a The general promotion of tourism within Yakima County as specified in the TPA business plan to be adopted annually; b The marketing of convention and trade shows that benefit local tourism and the Lodging Business the Yakima County area through overnight stays, c The marketing of Yakima County to the travel industry in order to benefit local tourism and the Lodging Businesses in Yakima County through ovemight stays, d The marketing of Yakima County to recruit major sporting events for the purpose of overnight stays in order to promote local tourism and to benefit the Lodging Businesses with the Yakima County Tourism Promotion Area 3 The total estimated costs of such uses and projects are as follows The Yakima Valley Lodging Association estimates that, on an annual basis, the revenue from the Tourism Promotion Charge collected from the operators of Lodging Businesses within the Tourism Promotion Area shall be between $250,000 00 and $400,000 00 This amount will vary from year to year depending upon the fluctuating occupancy rates of Lodging Businesses of Yakima County 4 The rate of the Tourism Promotion Charge to be imposed in support of the functions of the Tourism Promotion Area is as follows The Tourism Promotion Charge to be imposed on the operators of those Lodging Businesses with 40 rooms or more is as follows Zone A. $1 50 per room / day Zone B $0 75 per room / day Zone C $0 50 per room / day y Zone A. Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the City of Yakima defined as follows Downtown core bordered from the centerline of East "D" Street to the North, the centerline of Third Street to the West, the centerline of East Spruce Street to the South and the centerline of Interstate 82 to the East. Zone B Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located within the area of the incorporated limits of the City of Yakima, the City of Selah and the City of Union Gap, except those lodging businesses that are located in Zone A. Zone C Lodging businesses that are classified as hotels or motels with 40 or more lodging units that are located outside Zones A and B, but within the unincorporated area of Yakima County This petition is hereby presented by the following persons who operate Lodging Businesses in the proposed Tourism Promotion Area and will pay sixty percent or more of the proposed Tourism Promotion Charge Ree+ i ,.�.o.kima Center , Lion Yakima Gateway e--N../ - —W 3/24 fo cf fC ----- r.0 3 - Clarion Hotel & onference Ctr , a LTD 0 • al. t . . 3 .o / ‘ ,5" . 3fr if B -..; -...-...:.: z qxford lop_ NatolOk" l ir , - "Arricf...f -0- 1.Z.0---Mr.--.er i'll/d.V3j keti) xford cites / Q, :Iity Inn- � Unior Gap bf ol �� "...A.._ /... i.._� 2 eI Be t W ster m Inn Super 8- Union Gap. "'r �ljj ��1[4., - S ' oP -4 47 4- ,, e-tc. , 7 ,, 46 - ems / c D/L' y Com. Suites- Ya 'p' a Valley 7 Fai e1d Mar iott 7 ^ / . 7 Aez, - ' , I , - ,... ,_57.,yoy