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02/19/2019 12 2019 Lodging Tax Funds Allocation - Sundome to\'4\lyy tbxk ik 1 (1).-47115-771-41 P p P 1 PPi ittYlltYlt.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 12. For Meeting of: February 19, 2019 ITEM TITLE: Consideration of allocating $75,000 in Lodging Tax funds to the Sundome in 2019 SUBMITTED BY: Steve Groom, Director of Finance and Budget SUMMARY EXPLANATION: At the January 15, 2019 City Council meeting, Mayor Coffey as Chair of the Lodging Tax Advisory Committee (LTAC), distributed to Council a letter from the LTAC to Council asking that $75,000 in lodging tax funds be allocated to the Sundome (letter attached). Council directed staff to add this item to the next City Council business meeting agenda for further discussion and action. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR ' SUBMITTAL: City Manager STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: The Lodging Tax Advisory Committee supports this funding allocation. ATTACHMENTS: Description Upload Date Type LT r 1/2 /201 r Me o LTA r quest 1/1 / 019 r Memo LODGING TAX t f�} // tI n Answering Questions 1 . Lodging Tax Statutes 2 . City of Yakima Lodging Tax and LTAC processes 3 . Follow up on the $75,000 LTAC SunDome recommendation 2 f r 4 :{.Viy,ytt ixx ,+tom i F,� ® x �x' iiJx... f} t p. What Can Lodging Tax Be Spent On ? `t d fQ' 1. Tourism marketing; 2 . The marketing and operations of special events and festivals designed to attract tourists; 3 . Supporting the operations and capital expenditures of tourism- related facilities owned or operated by a municipality or a public facilities district created under chapters 35 .57 and 36. 100 RCW; or 4. Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations ( RCW 67. 28. 1816) 3 f r 4 :{.Viy,ytt 5x5 F, i w kA t f} / t Who are Eligible Recipients ? 5 4� 1. The local lodging tax advisory committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the municipality for final determination. The municipality may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee. 2. All recipients must submit a report to the municipality describing the actual number of people traveling for business or pleasure on a trip: • Away from their place of residence or business and staying overnight in paid accommodations; • To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or • From another country or state outside of their place of residence or their business. (RCW 67.28.1816) 4 f r 4 :{.Viy,ytt 5x5 5 F, i fx' iiJx... w kA t f} / t What is LTAC Committee Composition ? 5 4 • At least five members, appointed by legislative body of municipality • One member an elected official of the municipality who shall serve as chair of the committee. • At least two members representing of businesses required to collect tax • At least two members involved in activities authorized to be funded • Equal number of collecting/receiving members • May include one nonvoting County elected official member ( RCW 67 . 28. 1817) 5 f r 4 x{.Viy,ytt ixx +tom F,� i �`® w kA t f} / t Who is on LTAC ? rttiJ ' �k `J. i Appointed by Council : • Elected official Committee Chair: Mayor Kathy Coffey • Representatives of businesses required to collect tax: • Ledgestone Hotel — Sara Allen • Hilton — Lisa Vallejo • Howard Johnson — Colette Keeton • Oxford Inn — Sara Davila • Businesses authorized to be funded by tax • Yakima Valley Tourism - John Cooper • Capitol Theatre — Charlie Robin • Convention Center — Angie Girard • Sundome — Greg Lybeck 6 f r 4 :{.Viy,ytt 5x5 F, i iiJx... w kA } How often Can/Should LTAC Meet ? �t fQ' 5 �• RCWs silent as to frequency of meetings • Spending Timeline : • A municipality proposing a change in the use of revenue shall submit the proposal to the lodging tax advisory committee for review and comment at least forty-five days before final action . • The advisory committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures. • Failure of the advisory committee to submit comments before final action on or passage of the proposal shall not prevent the municipality from acting on the proposal. • A municipality is not required to submit an amended proposal to an advisory committee under this section . ( RCW 67.28. 1816) 7 C? Irrt ••""P if t . 4.•*' 1.* ‘..!, • :Jo.I 414:11.: at II N4 "4.c.7 Q.) B6050915 eige Stekit9t5 eta? 9ZSILSIS 970i, t.6Z4681/15 CC Z6e0EVIS ouleng14 X 03 90neric: Otoc, SinErT4 ocie (10 StrZZZI1 °toe LEMII5 %toe • (10 X Pooe 7:3 NeatrI:0 .4:pee 0 Vgct01, 900? 0 cistUtS$ coo? 0151E64 kb? • fgRiltA5 Poo? C EttitEfil ?cue 0 Egsczea$ 0? I 4 ) pLnik3S$ 004, (1) ittrteag 666 t STOlka St 6 L, ( 886'.06/.1) ) o o o "“) 0 0 0 4— 0 0 0 0 0 0 V) 0 0 c o o e d o d a to o c rt no 0 cf0 .e•l• 14 L/1 Ln t4" f r 4 :{.Viy,ytt ixx ,+tom i iiix iiJx... kA / t p,. How Man Annual Room Ni h t s ? fQ' rtiy 1 . Actual 2018 Rooms Sold was 451,848 ( Per Smith Travel Research) 2 . Number of hotel rooms : 1. Yakima : 1,937 2. Union Gap: 257 3 . Since total Lodging Tax in 2018 was $ 1,640, 198, Avg. Lodging Tax per room night was $3 . 63 9 f r :t..iy.,tx ixx F, i What is Historical LodgingTax Spending ? tip, Fund l ' W 170 171 287 370 Lodging Tax Tourist Capibl Debt Convention Revenue Promotion SunDome Theatre Service- Center Received Operations* Operations 1996 GO Capital Bonds** 100% 2009 1,175,137 495,576 - 93,108 442,000 144,453 1,175,137 2010 1,222,135 545,200 - 97,000 428,000 151,935 1,222,135 2011 1,230,615 545,200 - 97,000 428,000 160,415 1,230,615 2012 1,283,306 545,200 - 140,000 428,000 170,106 1,283,306 2013 1,334,800 570,000 - 140,000 428,000 196,800 1,334,800 2014 1,430,792 630,000 - 150,000 428,000 222,792 1,430,792 2015 1,489,294 651,000 75,000 175,000 428,000 160,294 1,489,294 2016 1,575,526 633,550 75,000 200,000 428,000 238,976 1,575,526 2017 1,647,735 660,000 75,000 205,570 428,000 279,165 1,647,735 2018 1,640,198 660,000 75,000 205,570 428,000 261,628 1,630,198 25,323,224 25,313,225 2018 40.1% 4.6% 12.5% 26.0% 16.9% 100% *nixr\ el fS Y\ Where is Lodging Tax Spent 2019 ? „co g g p ti . 2019 Budget Allocation 1 . Cony. Center Debt Service $349,000 2 . Cony. Center Capital $375,000 3 . Cony. Ctr Tourist Promotion $670,000 4. Capitol Theatre $205, 570 5 . nallocate $ 5, f r 4 :{.Viy,ytx ixx ,+tom i F, i w kA �} t What Is Recipient Application Process ? �td p ¢ft{i5y +p. • City Council can only choose from LTAC-recommended recipients • Applicants applying for use of revenues in this chapter must provide the ( LTAC) to which they are applying estimates of how any moneys received will result in increases in the number of people traveling for business or pleasure on a trip : • Away from their place of residence or business and staying overnight in paid accommodations; • To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or • From another country or state outside of their place of residence or their business. ( RCW 67.28. 1816) 12 f r 4 yt 5x5 5 i iii fx' iiJx... w �kA t f�} // t t p, Council Roles and Responsibilities ? rtiy 5 4 City Council : • Has decision making authority from Lodging Tax Advisory Committee- input • Authorizes spending in budget • May amend 2019 budget any time • Authorizes or rejects projects/recipients • Once the budget is adopted, may notify the LTAC of any changes in uses ( projects) . 13 f r ::. yytt ixx ,+ om i F,� i �`® iii fx' iiJx... //t tf d¢rx ) .tv Can Unspent LodgingTax Help GF Reserves ? Q'tiJ � • No, not directly • Lodging Tax is a restricted revenue fund and can only be used for purposes outlined in the RCWs ( RCW 67.28-1816) 14 f r :$:.iyttt 5xx F, i `® *".-TA x fx' iiJx... f} / t What is Lodging Tax Fund Balance ? 5 4 • Projected 2019 Ending Fund Balance $344, 138 • This does not count the $75,000 recommended by LTAC for SunDome Operations 15 f r 4 x{.Viy,ytt ixx ,+tom i F, i i iiJx... f} / t Su n Dome Stats Q. k f rttiJ `J. • 2018 Visitors outside 50-mile radius 45,952 • 2018 Lodging room nights 26, 101 (est. lodging tax @ $3 . 63 avg = $94,750) • Estimated economic impact to Yakima Valley $23 .9 million • Total 2018 attendance — all events — 526,663 (Yakima SunKings, WIAA sports, associations and tradeshows, other events, graduations and commencements, concerts, State Fair) See handout Source: 2018 Yakima Valley SunDome report & 2018 Event Tracking Report 16 f r 4 :{.Viy,ytt ixx if* i F,� i �`® iii w kA t f} / t CitySupport of Sun Dome - REET Q. �k `.w rttiJ `J. i k • The debt payment in REET is $ 150,000 through 2023, an interlocal agreement with State, County and City • Debt paid for 16K sqf expansion (north side), seating capacity increase to 7, 100, new locker rooms and second floor improvements • We help Central WA Fair: • $22,900 in PD time (out of a total : $33,900 where $11,000 is reimbursed) • $18,600 in Transit services (Free shuttle) • $5,309 in FD stand by services including OT • FD collected $4,075 in fire inspections fees 17 f r 4 :{.Viy,ytt ixx i i iii fx' iiJx... f t / p,. What 's the County's Lod i n Tax ? rtiy • County gets 2% Lodging Tax of the State's share about $750,000, for existing 2009 debt • 2009 bond was for • Fairgrounds capital • Capitol Theatre seating • Convention center flooring • Seasons performance hall • Yakima Valley museum 18 Staff seeks Council's direction on the unallocated $75, 000 in 2019 Budget aiduaex3 auaoduns lnopueH WIAA Attendance , Hotel Economic Impact . Rooms, WIAA Events Held -- Through December 2018 1 Rata Schadffie: 7 Formula for CalculatinGET2808840 Economic Impact , ' Conway,Cott,: SIX:020131 { -pal K#peak n, Na x rats x examatbd econominuttpab SDOM Grob's/Events 111.701$151 M9r Group bactlity #PIORRIT1 0Pp 48ppt ouGaGiown x ak rates x ratebesbeconomie impact H lAt Rol hits th:n i Ra trftmnBtkd #RmsAct Eton Impact I f I i Sportibg Events! RA WIAA 18 26 Rebior 2 WHO ag Toumey i_KllI ItaS HS 150 150 , 1 0 . $170 76 74 s $25803 RA WIAA 4AReqlon 388estanITpumay lae HS 400 AOC , 2 0 ' $170 200 200 $138,003 RA WIAA1A Soya and GT'S$' SOketbgli SunDent6 3,200 3,600 40 : T170 2,100 2,400 $2.446,000 RA WIAA 2A EscAg Fad HIGa 87 S8skeRaII SanDome 3,200 3,500 40 . 5170 2800 2 490 82 440,900 RA WIAA ST Gybe&WI SaDoma 3,800 4,500 20 ' $179 1,450 2,790 81,430000 , RA WIAA SlotasSoto&Ensemble Gnntent i my 1,500 ''' 1,500 20 : 0101 1,000 1,000 8643000 RA WIAA IS.48 IA ST Tomb ,Yak Temola see 1 Ciub 500 20 : $.18i 320 320 4481,000 , Y RA WIAA 1A,GAST Sasebol, ak Co 131 600 SOO ' 2 0 : S 500 500 $239,500 ' Stab= 1 G41,Sports , 1 RA WIAA 4.22TS ST Softball Ghamolombps' , 1,000 1 CompRx 1 000 540 540 $802,900 RA WIAA 2A ST Softbll a thamponshps I Ga458 I 2 4 %°°0 s 210° :: SS118311 740 740 8832,003 RA WIAA Coaches Sabel I Cot 426 424 I 20 S101 360 350 $153,850 WM Drat S WIAA 2A Owls Soccer Round,H 18 ak Sebh HS Nov a , 1 RA , Selah HS 00 89 , 10 sie, 20 20 S14,480 , A r TV:AA Gist,SWIAA 1AGIrls Socr Round of Marquette RA 200 200 : I 0 $161 50 50 $35.500 : 16 at Marquette&Snort Nova , Stadium : RA WIAA IS ST bolextba i SunDerne 1,000 1,000 , 20 G184 500 SOO 4368800 RA , WIAA 25 ST 80600801, 1 SunDome 1,200 1200, 1 2 0 $161 750 750 $651.000 RA , WIAA IA ST bollavabl: ' Sanboane 8,800 2 200 : 20 $161 1,200 ,',' PA Tk a llt a D iistb 5 W iIA A'A Girla Sacr Ro un c o re man. . 1'2779 :4c:51A Dntr5WnIA FoetrarRonda15 'RA atNanHSNov& 241shFS 200 200 10 S16 58 6 s362:° Mm: 016aMSdium Nov 10 200 200 1 Sit 40 40 .:.2 PA YV'AA 0005 VOA*,2A Ws Soccer Ebbsg RS 200 200 1.0 I 313 50 5C $36.290 , Cluarterfinals at EbibtalS No3 13 : THAA Dist:SWIM 2A Girls Sneer RA 1 SeHa laS 200 or 1 o sis* 70 70 $36.200 Quarterfinals at RHO H$NOV 40 YVAA Mob SWIM 44 FOotball Round of 16 Marquette RA 200 200 50 1.0 $ 3,at Harquette Shot ca,aum N 10 Siadiom 1 50 $36,200 ' RA WIAA SART Volley* SonDobe 2.0,50 2,000 20 41t 1,400 1.490 8724.900 r i RA , WIAA 4A ST tnoleynal, SimErnme 2,000 1,090 2 0 $181 1,400 1,200 6851,600 6 ' YaRRA Ds'STRAA lE Football QUadrlrlitta% 1 RA at Gv,ew HS Nov ii Gbew HS 80 80 10 $161 20 24 $14,480 1 YVIGA N405 WIAA 1A Toctball Cluarterfirtaks RA , Gahm HS 300 300 1.0 $131: 50 5C 654.500 at GHeve Ha NH/lb 1 3 SPORTING EVENTS.TTL: • 25 26,135 27,33$ J15,035 , 15,035 511,965,510 WIAA Events alone at Lodging Tax Economic Impact WIAA Events 2018 Sun Dome Su n D o m e bring Economic Impact is#of People X#Room Nights X avg.spending$ Ppl Act #Rms Act Rm Nights Econ Impact [a] [b] [c] [d] [a] x [c] x [d] approximately $ , 556 1A boys and Girls ST Basketball 3,600 2,400 4 $ 170 $ 2,448,000 2A boys and Girls ST Basketball 3,600 2,400 4 $ 170 $ 2,448,000 ST Dance & Drill 4,500 2,700 2 $ 170 $ 1,530,000 1B ST Volleyball 1,000 500 2 $ 170 $ 340,000 2B ST Volleyball 1,200 750 3 $ 170 $ 612,000 i n Lodging Tax 1A ST Volleyball 2,200 1,200 2 $ 170 $ 748,000 3A ST Volleyball 2,000 1,400 2 $ 170 $ 680,000 4A ST Volleyball 1,800 1,200 2 $ 170 $ 612,000 19,900 12,550 $ 9,418,000 (Tourism ) and Avg. Lodging Tax $ 3.63 Total Lodging Tax $ 45,556 = $ 9,418,000 $ (45,556) Total non-Lodging Tax economic activity $ 9,372,444 $ 1 5 9 332 In Sales Tax Sales Tax Rate - City 1.70% 1 Sales Tax$- City $ 45,556 x $3.50 = $ 159,332 ( General Fund ) Annual Lodging Tax $1,640,198 State 6.50% total Yakima room nights 451,848 City 1.70% Avg. LodingTax/room night $ 3.63 Total 8.20% 22 f r � :$:.iyytt ixx ,+tom i f�x' iiJ5;5, � w �kA t / t What is Lodging Tax 's "Sales Tax Effect ?" d'i¢YtiiJi Quantifying the economic multiplier • Assumes $ 170 per person per room night • $ 1 in Lodging Tax generated about $3 . 50 in Sales Tax in this one example 23 Reference Information For reference only f r xkiyttt ix5 ,+tom �`® iiix fix' iiJx... � w �kA�} What is the Lodginglax Rate in Yakima ? �ti, Q iti 5 Of the total 0/... • 11 . 2% on h ote l's room rate, City of Yakima receives 5 . • To City 2 . 0%+ 1 RCW 67.28.180 RCW 67.28.240 • To City 2 . 0% RCW 67.28.181(1) 25 f r 4 :{.Viy,ytt ixx ,+tom i fx' iiJx... w kA /t t� 44.4; Can We Measure L-Tax by Event ? • Sales Tax is received monthly • Property Tax is received monthly, assessed annually • Lodging Tax is received monthly • Hoteliers can measure hotel nights daily or around events — but is confidential proprietary information 26 xr,,,,,,,,,,_7k:44„..!\ What is Monthly Seasonality ? • , ,4::::::,... ......44:::::::a: . ..„ Vr 1/4„,. Zittaak, ..:::::::::::::* •Jo.i,;j,4 V,.; • •'•, Sigi 4iiiiiit.:* il Lodging Tax - Monthly History $20 0.000 $180000 $260/300 -- - '.'. . $1.4 0000 $120000 $100,000 $80000 - $60,000 _ .. $4.0,000 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 27 0 2014 0 2015 ii 2016 0 2017 II 2018 f r 4 yiiit 5x5 5 i �`® x ) ,tv Recipient : Roles and Responsibilities 1'• RCW 67. 28. 1816 requires all Lodging Tax recipients to provide the Council information on use of the tax and to do annual report to Joint Legislative Audit Review Committee . 28 oo � � � Lodging Tax Advisory Committee _ January 1[l2O19 � City mfYakima � ^ City Council 129 North 2ndStreet ` Yakima, Washington g89O1 Dear Council, On November 28, 2018, the Lodging Tax Advisory Committee (LTAC) met. Several options for different ways to structure funding for the SunDonme were discussed, including phasing out lodging tax funding gradually and/or partnering to match the level of support on an even basis between City and County. The committee recognized the C|ty's already-tight budget as foundational to the discussion, noting the City is supporting SOZO and YMCA pool with debt issuances, and the city does support the Fairground SunDome in several other ways, including an annual $15O,OOO payment for SunDmmme debt service. The committee ultimately decided to recommend that the City Council honor the original 2019 LTAC recommendation of $75,OOO in lodging tax funds for the SunDomme. In addition, the committee suggests that council engage in an annual re-evaluation of the level of lodging tax support of5unDmmnm operations. Finally, the LTAC also suggests that Council engage in discussions with the County on future funding options for the SunDonne. Respectfully, Kathyy Co ey,7 Chair, Lodging Tax Advisory Committee . 31 � � Committee�d r�T��w�� Novemter28,2018 9:30a.nm. Meeting—Minutes Roll Call—Members present: Kathy Coffey,Charlie Robin,John Cooper,Angie Girard, Sara Allen, Collette Keeton, Lisa Vallejo,Sarah Davila, and Greg Lybech. Guests: Rich Austin,Connie Upton, Steve Groom,Jeanne Thompson Minutes from last meeting—The minutes from the prior meeting were not available. ^ � —Oiscuyo|onvvaobe|d ,p0apdin��heNovembo,1y, 2O18|e�ertothe [TAC�omChe Communications Yak|nmaCity Council (A�achment1). John Cooper passed outa summary of3U18 budgeted lodging tax related activities for discussion (Attachment 2)to clarify what"Convention Center Operations" comprised. Greg Lybeck asked for clarification mn past annual process. Chairman Coffey and John , Cooper both concurred that in years of no funding changes there has been no meeting. The first portion of the letter detailed the Council's selection of candidates to receive lodging tax for : 2019asfollows: � Convention Center Operations $670/000 ^ Convention Center Capital $375'000 ` Capital Theatre Operations $285^570 w, Lodging tax also funds a 2019 bond payment of$349,070,which does not require LTAC or , Council action as it was approved in its entirety when the bond was originally issued. This bond will be retired in November l019. � John Cooper moved that the LTAC approve the lodging tax allocations for Convention Center � Operations,Convention Center Capital and Capital Theatre Operations au detailed mn Attachment 2. The motion was seconded by Charlie Robin and passed unanimously. , John also moved that the LTAC support the City's plan to pledge the lodging tax revenues that were paying the 2'*^LTGO Bonds tmpay debt service for the Convention Center expansion approved lnthe � 2019 budget. Angie Girard seconded the motion and it passed unanimously. Discussion then continued regarding CouncU's decision to reject funding of$75,000 for 5unDnme Operations. Chairman Coffey reminded the group that the City Budget has been difficult to balance, has incurred debt for projects such as SOZO and YMCA pool,and that the City does support the SunDome through several means. Greg Lybeck.from the SunDome Board, referred to his November 21'2018 ~ letter to Rich Austin regarding City Counci|^s rejection of$7S,O80in lodging tax funding for the SunDume (Attachment 3)and the negative effects it would have on the SunDome's ability to attract sports tournaments and other social events tuYakima, ' � oo~ � Several options for different ways to structure funding for the SunDome were discussed, including . phasing out lodging tax funding gradually and/or partnering with the County to match the level of support onan even basis. Charlie Robin made a motion turecommend that the City Council honor the original 2019budgeted � support of$7S,##' \n lodging tax funds for the SumDome,tq engage|man annual re-evaluation mfthe � level of lodging tax support,and to suggest discussions with the County on future funding options for � thmSum0mmmm. Collette Keaton seconded the motion and it passed unanimously. � Action Item—The LTAC committee will draft a letter to Yakima County to su&--est the City Council and the County Commissioners meet to discuss ongoing support for the SunDmme. Continued Business—Annua| BudgetPvocesyUpdate The annual budget process for disbursement oflodging tax funds was discussed. City Finance Director Steve Groom passed out current lodging tax receipts for 1997— 2018 and for the Current year January through October for the review of the LTACmembers. No action taken. � Potential future funding recipients. |n the past,the LTAC would only meet if there was a need tuconsider new funding applications, and would then forward those recommendations to City Council for approval in the budget. If there were no new requests,funding levels would remain at the same level in subsequent � years,with any excess revenue over what was originally budgeted going to the Convention Center Capital � fund. However, per RCVV67.28.1A17(2) (Attaohmnem¢4),the process is designed to begin with the City Council "submitting a funding proposal to ` the lodging tax advisory committee for review and comment. This submission shall occur at least forty- five daysbe6ure0na|uctimnono,passo0eofthepnnposu| bythemun|xipa|ity. The advisory committee shall submit comments on the proposal in a timely manner through generally applicable public comment procedures. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism,and the extent to which the proposal will affect the long-term stability of the fund created under RCVV67.28.1O1S. Failure of the advisory committee 10 submit comments before final action on or passage of the proposal shall not prevent the municipality from acting on the proposal. A municipality is not required to submit an amended proposal toan advisory committee under this sect|on." John Cooper did some research regarding how other municipalities handle the application process for lodging tax funds,found an example of an application form'and updated it with Yakirna's information. This example is attached (Attachment S)as possible standardized form. After discussion, Angie Girard * moved to accept the application as presented to use for future LTAC applications for funding. Sara � Allen seconded the motion and|t passed unanimously. � ^ There was no other new or old business discussed. ' . � The meeting was adjourned at 10:40a.m` � - � � . � � � � 33 ,11'.. ^:1_,;" 1.-ky '.1"` s. OFFICE OF THE CITY MANAGER 129 North Second Street 8.4 City Hall,Yakima,Washington 98901 Phone(509)575.6040 November 19, 2018 Lodging Tax Advisory Committee C/O Kathy Coffey, Chair 129 North 2nd Street Yakima,WA 98901 Dear Committee Members: RCW 87.28,1816(2)(b)(ii)indicates that the legislative body may only choose Lodging Tax fund recipients from the list of candidates and recommended amounts provided by the Lodging Tax Advisory Committee(LTAC). The Yakima City Council is the legislative body for the City of Yakima: from the list of candidates provided by the LTAC recommending Lodging Tax fund recipients the City Council wishes to select the following candidates to receive Lodging Tax distributions in 2019: • Convention Center Operations • Convention Center Capital • Convention Center Debt • Capitol Theater Operations The City Council rejects the following candidate as a potential recipient of Lodging Tax funds in 2019: • Sundome Operations-$75,000 In accordance with RCW 67.28.1817(2), upon the LTAC's receipt of the City Council's proposed change in use of the Lodging Tax funds or recipients the LTAC has 45 days to provide comments on the proposal back to the City Council, after which time the City Council may make its selection on the designation of fund recipients and uses. Upon making its final decision regarding disbursement of the funds the Council will amend its 2019 budget accordingly. The City Council would also like to review the LTAC application process used when seeking candidates for Lodging Tax funds. This process should identify specific dates for release of applications available to candidates seeking funding, sample applications and the basic elements of the review process and selection criteria. Please provide this information within 45 days of your receipt of this letter. In the future,the list of recommended fund recipients and fund allocations should be submitted to the City Council no later than July 1 on any given year. The Council will then review the list and notify the LTAC of who they have selected to receive funds and in what amounts. In the past, the timing of submitting LTAC recommendations has not allowed for proper review and has thus diminished the role of the Council. This dynamic needs to change so that the Yakima 4.0.411.14 1111! 994 34 LTAC ay 1 w.4 perative compliancethat a broader sector of our community h an opportunity to •ly to receive • fled of funding,if their activities p •.•rams comply fundingrequirements d the 11 tin process, Thank you for your partnership and code ration. Sincerely, Cliff Moore City Manager 35 Yakima Lodging Tax Funded Activities 2019 for LTAC action CONVENTION CENTER OPERATIONS (Account 170): $ 670,000 This includes full or partial support of Convention Center staffing, repairs, etc; tourism marketing and sales; Sports Commission operations plus operation of the Visitor Information Center. SunDome Operational Support $ 75,000 CONVENTION CENTER CAPITAL (Account 370) $ 375,000 On November 6th 2018, the council approved the 2019-2022 Convention Center Capital Facility Plan which includes the expansion. Project commences in 2019 with engineering and architecture designs. The budget also includes upgrades to AV equipment and expanding a service corridor. CAPITOL THEATRE OPE ATIONS (Account 171) $ 205,570 This is the management fee with the Capitol Theatre and covers labor costs for programming, repair and maintenance. The LTGO Bond payment of $349,070 is bonded debt not requiring action. FIRST: I move that LTAC approve the Convention Center Capital budget (account 370) plus approve the Capitol Theatre Account 171 and the Convention Center Operations account 170 at $670,000.... leaving the SunDome allocation for a separate discussion and action. SECOND OTION: ove that LTAC support the City's plan to bond the lodging tax revenues that were paying the 1996 Center pansion LTGO Bonds for the approved Convention Center expansion. 36 November 21, 2018 Hello Rich, We have been made aware the Yakima City Council is looking at taking the$75,000 that the lodging tax board has allocated to us over the last three years, If this were to happen, we would be very disappointed. The$75,000 has given us room to be able to make decisions for the good of both the area hotels and the City of Yakima, We have felt like we are a part of the tourism team over these last few years and have made efforts to both attract and keep events that will have a large impact for our valley, One example: the S orne brought the WIAA 3A &4A State Volleyball tournament to Yakima(last week)because of the zero dollar rent deal given to WIAA. Without this funding that type of deal will not be possible, It is our hope this doesn't happen and we can continue to do things that are not always in the best financial interest of the SunDome, but in the best interest of our city and hotels. There are things we do now that we will not be able to continue to do if this decision is made, > Media food for all events will need to go through Spectra • Quarterbacks Club will need tia purchase all food and beverage from Spectra at published rates, when here for the WI events • All WIAA meal functions will need to be provided by Spectra a their published rates, ho discounts Socials will not be allowed unless they run through Spectra at published rates • 3A&4A Volleyball contract will need to be re-negotiated or cancelled • 1B-2B-I A Volleyball tournaments will be reviewed to determine if it makes sense for us to continue to do YSC Volleyball Festival will need to rent the SunDome at published rates. All food will need to go through Spectra • Parking fees will need to be increase for all WIAA events • Facility fee will need to be raised for all WIAA events We felt very positive about being part of the tourism team and it is our hope we can continue to be a part of it. Greg �37 1J7/2019 ncwo7,2o,1u1T Lodging tax advisory committee in large municipalities—Submission of proposal for imposition of or change in tax or us.,. RCW 67.28,1817 Lodging tax advisory committee in large municipalities—Submission of proposal for imposition of or change in tax or use--Comments. (1) Before proposing imposition of a new tax under this chapter, an increase in the rate of a tax imposed under this chaptmr, repeal of an exemption from m tax imposed under this chapter, or change in the use of revenue received under this chapter, m municipality with a population of five thousand or more shall establish a lodging tax advisory committee under this section. A lodging tax advisory committee shall consist of at least five members, appointed by the legislative body of the municipality, unless the municipality has a charter providing form different appointment authority. The committee membership mhmU Include: (a)At least two members who are representatives of businesses required to collect tax under this chapter; and /b\ at least two members who are persons involved in activities authorized to be funded by revenue received under this chapter. Persons who are eligible for appointment under (a)of this subsection are not eligible for appointment under(b) of this subsection, Persons who are eligible for appointment under(b)of this subsection are not eligible for appointment under(a)of this subsection, Organizations representing businesses required to collect tax under this chapter, nrQan|zodmna involved in activities muthohzad to be funded by revenue received under this chapter, and local agencies involved in tourism promotion may submit recommendations for membership on the committee. The number of members who are representatives of businesses required to collect tax under this chapter shall equal the number of members who are involved in activities authorized to be funded by revenue received under this chapter. One member shall be an elected official of the municipality who shall serve as chair of the committee. An advisory committee for a county may include one nonvoting member who is on elected official of a c|h/ or town in the county. An advisory committee for a city or town may include one nonvoting member who is an elected official of the county in which the city or town is located. The appointing authority shall review the membership of the advisory committee annually and make changes anappropriate. /2\Any municipality that proposes imposition of tax under this chapter, an increase in the rate of tax imposed under this chapter, repeal of an exemption from m tax imposed under this chapter, or change in the use of revenue received under this chapter shall submit the proposal to the lodging tax advisory committee for review and comment.The submission shall occur at least forty-five days before final action on or passage of the proposal by the municipality. The advisory committee shall submit comments on the proposal in a timely manner through generally applicable public comment pnocedunes. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of the fund created under F{CW 6T.28.1815. Failure of the advisory committee tm submit comments before final action onor passage of the proposal shall not prevent the municipality from acting on the proposal. A municipality is not required to submit an amended proposal to an advisory committee under this section. [ 1��8c �� ~� �'' 1��7 �4�� ~� � ^ .] NOTES: Validation oftaxes imposed and collected and actions taken—Effective datw--1998c 35: See notes following RCVV67.28.101. Intent--SmvemmbU!ity--1997c452: See notes following RCVV6T.28.000. SavYngm�-199Ts452: See note following RCVY67.28'181. 38 Application for City of Ya ' a FY 2020 Lodging Tax&Tourism Promotion : it Funds Incomplete and/or late applications will not be coral* - .Applications may not be changed or ; en ;' by the applicant after the submission deadline. Org mtion/Agency F- eral Tax ID N *ober Contact N: e Title Mailing Address City State Zip Code Tourism promotion activities Tourism related facility vE ent/Festival: Nt. e of Everi estival Date Non-Profit(a ;oh copy of current non-profit corporate registration with Was t on Secret: of State) Public Agency(name): ount requested: 39 Description of tourism-related activities or event: Budget Information-How will the funds be divided within the budget? Supplies Advertising Operating rentals $ Travel Other( ) Number of attendees from a fifty (50)mile plus radius expected: Number of Yakima overnight stays expected to be generated: Target markets and region(s)(should be at 1 a 50 mile radius away): Type of marketing to be used: Target audience(s): Attach up to two additional pages of details if needed, I understand that if selected,my org. 'zationiagency may be required to enter a service contract with the City of Yakima. Printed Name: Signed: Date: 2