CDN 2017-04-10 Item 2B - Discussion - Lodging Tax Advisory Committee Legislation

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City of Tukwila Allan Ekberg, Mayor TO: Community Development and Neighborhoods Committee FROM: Laurel Humphrey, Council Analyst CC: Mayor Ekberg DATE: April 4, 2017 SUBJECT: Lodging Tax Advisory Committee Legislation ISSUE Staff is seeking to codify provisions relating to the Lodging Tax Advisory Committee. The City Council has asked for greater understanding of the differences between the existing resolution defining LTAC and the proposed ordinance that would move LTAC to the Municipal Code. DISCUSSION The City's Lodging Tax Advisory Committee was first established in 1997 by Resolution 1381. Resolution 1533 in 2003 expanded its membership from seven to nine. Staff is seeking to repeal these resolutions and instead place the Lodging Tax Advisory Committee in the Municipal Code alongside the City's other advisory boards, commissions and committees. The draft ordinance proposes to place the LTAC provisions in TIVIC Chapter 2.35 and remove the Economic Development Advisory Board provisions that currently exist there. The Economic Development Advisory Board has not been active since 1999. Differences between the existing and proposed LTAC legislation are summarized as follows: Purpose The proposed Code language explains the purpose of LTAC in greater detail and in accordance with RCW 67.28.1817. LTAC serves in an advisory capacity and submits recommendations regarding the lodging tax, including changes, repeals, exemptions, use of revenues, or changes in use of revenues. State law requires the City to provide information on any of these things to LTAC at least 45 days before the City Council is expected to act. Membership As required by RCW 67.28.1817, LTAC will still consist of nine members including one elected official serving as Chair, four representatives of businesses required to collect lodging tax, and four representatives involved in activities to be funded by lodging tax revenue. The proposed ordinance specifies that it will be a Councilmember serving as Chair, not just an elected official which could include the Mayor under the existing resolution. Appointment Process State law requires the City Council to make all appointments to LTAC and to review the membership annually. The proposed code outlines the City's current practice for LTAC appointments in greater detail than the existing resolution. Up until 2016, the Mayor had been making recommendations to the City Council for appointments on LTAC, which was consistent with the appointment process for other City Boards and Commissions. Last year the City's process was changed to remove the Mayor's role. This ordinance clarifies that the Councilmember serving as LTAC Chair recommends appointments to the rest of the Council for confirmation. W%