HomeMy WebLinkAboutLTAC_meeting_minutes_05212019Lodging Tax Advisory Committee
May 21, 2019
Meeting Minutes
Yakima Convention Center
Call to Order
Meeting called to order at 8:30 by Chair, Kathy Coffey
Roll Call
Members Present: Chair Kathy Coffey, Charlie Robin, John Cooper, Angie Girard, Colette Keeton, Lisa Vallejo, Sara Davila, Greg Lybeck
Members Absent: Sara Allen
Others Present: Steve Groom, Brenda Fehlhafer, Connie Upton, Anne Moneymaker, Rich Austin
Minutes of Previous Meeting
Motion: Vallejo moved and Keeton seconded to approve previous meeting minutes from Feb 19, 2019. The motion carried by unanimous vote. Angie Girard not present during this motion.
Communications
No communications at this time.
Staff Report
Steve Groom, City Finance Director, provided a handout including a Lodging Tax Revenue Update with actual figures through April 2019. He relayed that the 2019 City Budget was amended
by City Council action to fund the SunDome $75,000. He gave a 2020 Budget process update, indicating that the budget process has already started internally at the city. The current
estimate for the 2020 Lodging Tax Revenue is $1,600,000. However, it is a very preliminary estimate and lacks the inclusion of the months that tend to generate more tourist revenue.
He referred the committee to a debt amortization schedule that pertains to the 2020 budget year, where Lodging Tax is forecasted to fund $486,000 per year for the already-approved convention
center construction project. And he proposed a scorecard that had a suggested format to evaluate potential grantees on the basis of revenue-generating overnight stays.
Continued Business
2020 Grant Application Process – Application Reviews
Initial discussion started with using estimating 2020 revenue, debt service and operating expenses and then all applications. Initial total showed a deficit of (438,500).
Globista Media Application
Globista Media is not a Non-Profit agency.
Motion: Robin moved and Vallejo seconded to deny the Globista Media application based on for-profit status. The motion carried by unanimous vote. Girard not present during this motion.
Yakima Valley Sundome Application
Yakima Valley Sundome submitted a late application. The application was delivered to City of Yakima Finance Department on May 8, 2019.
Lybeck apologized for the late submission, but wanted it noted that he was unaware of the need to submit an application as an existing recipient and also he did not receive the 2/19/19
meeting minutes until 5/16/19.
Coffey noted that Lybeck was present at the 2/19/19 meeting where requirements were discussed, the application requirements were listed on the City of Yakima website, and there were
also public announcements.
Davila noted that this is the first time for the application process and therefore may require a need for adjustments or modifications in the process.
Motion: Vallejo moved and Davila seconded to make an exception for deadline due to first-time process confusion and to accept the application. Girard not present during this motion.
Coffey suggested a compromise by acknowledging the late submittal since deadline was missed and to reduce the requested amount from $75000 to $50000.
Keeton noted that the Sundome is vital to LTAC funds and a compromise is a fair solution.
Cooper and Robin noted that the committee needs to be reliable and uphold their standards of deadlines.
Angie Girard entered meeting at 9:00.
Coffey called for consent to amend SunDome application allocation to $50,000 for late entry. Motion passed unanimously. Amended Motion passed 6-2:
In favor: Coffey, Girard, Keeton, Vallejo, Davila, Lybeck
Not in favor: Robin and Cooper
Yakima Hispanic Chamber
Girard noted that the application did not show strong evidence of overnight hotel stays.
Motion: Vallejo moved and Davila seconded to deny Yakima Hispanic Chamber application based on not providing enough trackable data on overnight revenue generation. The motion carried
by unanimous vote.
Yakima Valley Museum
Discussion that museum provides value to tourism, but not necessarily overnight stays.
Motion: Coffey moved and Vallejo seconded to deny Yakima Valley Museum application based on not providing enough trackable data on overnight revenue generation. The motion carried by
unanimous vote.
Discussion followed on the $1.6m forecasted revenue. Vallejo, Cooper, and Keeton all agreed that they were comfortable with the estimated amount. No members expressed disagreement with
the estimate.
Keeton discussed making further decisions at the next LTAC meeting. Mayor Coffey noted the remaining applications can stay in abeyance until further discussions at the next meeting.
Motion: Robin moved and Vallejo seconded to amend Convention Center capital expenses from $520,000 to $275,000. The motion carried by unanimous vote.
Remaining applicants create a $107,000 deficit until unresolved (see table, attached).
Motion: Keeton moved and Coffey seconded to delay further decisions on application allotments until the August meeting. The motion carried by unanimous vote.
The City of Yakima Finance Department will send out letters to notify applicants of their denial.
New Business
No new business was reported.
Motion: Coffey moved and Girard seconded to adjourn to the next meeting on August 15, 2019. The motion carried by unanimous vote.
Meeting adjourned at 9:55 am.
Table 1
Revised scorecard – remaining deficit to resolve at next meeting, subject to revised revenue estimate