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HomeMy WebLinkAboutCOW 2007-05-29 Item 3A - Agreement - Marketing from Outside the Region by Museum of Flight COUNCIL AGENDA SY1VOPSIS ITEM NO, r Meeting Date Prepared by f M ors review review t` 05/29/07 I KK I �J 3 a 06/04/07 I KK I I L 16 68 1 I I I I I I I 1 ITEM INFORMATION T= CAS NUMBER: 07-063 I ORIGINAL AGENDA DATE: 05/29/07 AGENDA IIEM TITLE Museum of Flight contract for marketing to visitors from out of the region. CATEGORY Discussion E Motion Resolution Ordinance BidAward Public Hearing Other Mtg Date 05/29/07 Mtg Date 06/04/07 Mtg Date M Date Mtg Date Mtg Date Mtg Date (SPONSOR Council E Mayor Adm Svcs DCD Finance Fire Le P &R Police PW SPONSOR'S Authorize Mayor to sign a contract with the Museum of Flight for marketing Tukwila and SUiti MARY Seattle Southside Visitor Services to visitors from out of the region in the amount of $25,000 annually for ten years. REVIEWED BY COW Mtg. CA &P Cmte E F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 05/21/07 RECOMMENDATIONS: SPONSOR /ADMEN. Accept Museum of Flight contract. Authorize Mayor's signature. CON DE ITEE Unanimous Approval; Forward to Committee of the Whole COST. IMPACTI FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $25,000 $25,000 Fund Source: 101.00.557.302.41.05 Comments: MTG- DATE :RECOR[3 OR COUNCIL= -ACT ON 05/29/07 I I 1 _DATE TTAC1• MENTS 05/29/07 Information Memo to Finance Safety Committee dated 05/15/07 Copy of the contract Minutes from Finance and Safety Committee meeting of 5/21/07 TO: Mayor Finance and Safety Committee FROM: Tourism Program Manage DATE: May 15, 2007 SUBJECT: Museum of Flight contract for marketing to visitors from out of the region. ISSUE Authorize Mayor to sign a contract with the Museum of Flight for marketing Tukwila and Seattle Southside Visitor Services to visitors from out of the region in the amount of $25,000 annually for ten years. BACKGROUND The City is authorized to use Hotel -Motel Tax revenues for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion within the City. The Museum of Flight is a world- renown tourist attraction located in Tukwila attracting thousands of visitors annually. DISCUSSION The contract for services with the Museum of Flight includes marketing to potential visitors from outside the Puget Sound region and will include for example the following services: forwarding group leads to Seattle Southside for follow -up; inclusion of City logo in Museum marketing collaterals; distribution of the Seattle Southside Vacation Planner in the Museum lobby; website links; Seattle Southside guest relations programs offered to Museum staff and volunteers and published articles in the Museum's Aloft magazine recognizing the City. Services provided will be reported and evaluated annually as a part of the Tourism Program budget planning process. The contract (attached) was already signed by the City and Museum of Flight before we realized it needed Council approval. Nonetheless, the Council may still choose to modify or even not approve the contract, in which case the current contract will be voided and a new one prepared. The Museum of Flight initially submitted the funding request in 2005 for $250,000 which was intended for their Capital Expansion Project. The Museum gave multiple presentations to the Lodging Tax Committee at that time. Due to State legal requirements and a desire to contract with the Museum for marketing services, staff negotiated the draft contract that is before you. The Lodging Tax Committee and City both approved $25,000 in the 2007 budget for this contract. On a year -by -year basis, for a period up to ten (10) years, the City shall, in its discretion, allocate an annual sum not to exceed $25,000, as deteimined by the City Council in establishing the City's Annual Budget. Budget impacts: There is no additional budget request for this item. The contract for services is budgeted within the Council approved 2007 Tourism Program budget; however, because the proposed contract amount is potentially a multi -year contract exceeding $25,000, it is recommended for Council approval. RECOMMENDATION Authorize Mayor to sign a contract with the Museum of Flight for marketing Tukwila and Seattle Southside Visitor Services to visitors from out of the region in the amount not to exceed $25,000 annually for ten years, as determined by the City's Annual Budget. c 0 py Contract No. 62 O T -00 CONTRACT FOR ER S VICES This Agreement is entered into by and between the City of Tukwila, Washington, a noncharter optional municipal code city hereinafter referred to as "the City", and The Museum of Flight, hereinafter referred to as "the Museum whose principal office is located at 9404 East Marginal Way South, Tukwila, WA 98108 -4097. WHEREAS, the City has imposed a special excise tax under Chapter 82.08 RCW, known as the Hotel -Motel Tax, on the furnishing of lodging by hotels, motels, and similar business enterprises, as authorized by Chapter 67.28 RCW; WHEREAS, the City is authorized to use Hotel -Motel Tax revenue for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion in the City; WHEREAS, the Museum promotes tourism by marketing to travelers and visitors from outside of the region; WHEREAS, the Museum can promote tourism for the City of Tukwila through its marketing program and through joint marketing and promotional opportunities; WHEREAS, it is appropriate for the City to compensate the Museum for the costs of promoting tourism in the City of Tukwila; IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scone and Schedule of Services to he Performed by Museum. The Museum shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Museum shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Museum shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. Any such allocation of money accepted by the Museum shall be subject to terms of this Agreement and shall be applied and expended in accordance with the said terms hereof. Specifically, these funds must be applied and expended exclusively to promote tourism in the City (as defined in RCW 67.28). 2. Compensation and Method of Payment. The City shall pay the Museum for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. The total annual amount to be paid shall not exceed Twenty Five Thousand and No /100 Dollars ($25,000) to be paid within thirty (30) days following submittal. 3. Duration of Agreement. On a year -by -year basis, for a period of up to ten (10) years, the City shall, in its discretion, allocate to the Museum an annual sum of money not to exceed $25,000, as determined by the City Council in establishing the City's Annual Budget. This Agreement shall be in full force and effect for a period commencing January 1, 2007 and ending December 31, WV untess sooner terminated u der the provisions hereinafter specified. 4. Independent Museum. Museum and City agree that Museum is an independent Museum with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Museum nor any employee of Museum shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Museum, or any employee of the Museum. 5. Indemnification. The Museum shall indemnify, defend and hold harmless the City, its officers, agents and employees, from and against any and all claims, Losses or liability, including attorney's fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of the Museum, its officers, agents and employees, in performing the work required by this Agreement. With respect to the performance of this t of 5 U 7`- Agreement and as to claims against the City, its officers, agents and employees, the Museum expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph extends to any claim brought by or on behalf of any employee of the Museum. This waiver is mutually negotiated by the parties. This paragraph shall not apply to any damage resulting from the sole negligence of the City, its agents and employees. To the extent any of the damages referenced by this paragraph were caused by or resulted from the concurrent negligence of the City, its agents or employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of the Museum, its officers, agents, and employees. 6. Record Keeping and Reporting. A. The Museum shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 7. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 8. Termination. This Agreement may at any time be terminated by the City giving to the Museum thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. 9. Discrimination Prohibited. The Museum shall not discriminate against any employee, applicant for employment, or any person seeking the services of the Museum to be provided under this Agreement on the basis of race, color, religion, creed, sex, age, national origin, marital status or presence of any sensory, mental or physical handicap. 10. Assignment and Subcontract. The Museum shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 11. Entire Agreement. This Agreement contains the entire Agreement between the parties hereto and no other Agreements, oral or otherwise, regarding the subject matter of this Agreement, shall be deemed to exist or bind any of the parties hereto. Either party may request changes in the agreement. Proposed changes which are mutually agreed upon shall be incorporated by written amendments to this Agreement. 1. Notices. Submittal of summary of Deliverables as outlined in Exhibit A and request for reimbursement as set for the Exhibit B shall be sent to the following address: Seattle Southside Visitor Services City of Tukwila, Office of Tourism Marketing 14220 Interurban Avenue S., Suite 130 Seattle, WA 98168 Attention: Katherine Kertzman, Program Director Notices to the City of Tukwila shall be sent to the following address: City Clerk Office of Tourism Marketing City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Museum shall be sent to the address provided by the Museum upon the signature line below. 13. Applicable Law: Venue: Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. 2 of 5 The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this .3 day of 200 7 r CITY TUKWIL?., MUSEUM: The Museum of Fliohr Kath: a Kertzman, T' uri arketing Program Manager i s BY: %V z BY: mr Mayor, Steven M. Mullet President/CEO, IYonni'e Dunbar ATTEST/AUTHENTICATED: Printed Name: et n n e 1 D u_ N In a r JiAe E. Cantu, CMC, City Clerk ADDRESS: The Museum of Flight 9404 E. Marginal Way S. Tukwila, WA 98108 APPROVED AS TO FORM: Office of the City Attorney Office of Tourism Marketing Program 3 of 5 EXIIIBIT "A" MUSEUM OF FLIGHT SCOPE OF SERVICES The Museum shall conduct public relations and marketing of the Museum to visitors from out of the region, incorporating marketing information regarding the City within this effort. City funds may be used for advertising, publicizing or otherwise distributing information for the purpose of attracting visitors from outside the region to visit existing Museum attractions and attend special Museum events. As conditions of this agreement, the Museum agrees to the following Deliverables: 1. The Museum shall advertise, promote and/or distribute marketing materials to potential visitors from outside the Puget Sound region, including, but not limited to, Museum facilities and events, and available overnight and conferencing services of overnight accommodations and restaurants in Tukwila. 2. The Museum shall direct lod inquiries for visitors and convention planners to Seattle Southside Visitors Services (SSVS) through website links, collateral materials and personal contacts. The SSVS, as a third party booking agent for Tukwila hotels, will be given the first right of refusal to solicit these visitors for group lodging accommodations through its hotel booking service. SSVS will forward appropriate group leads to Seattle CVB based on customer needs and demands within a timely manner. 3. That the City will be recognized in key Museum marketing efforts during the year, and that the Museum will incorporate the City's logo into selected collateral materials such as Aloft, further promoting Tukwila businesses to visitors and interested parties. 4. The Museum will include the City in any donor listings. 5. That the Museum will facilitate the placement of a SSVS visitor kiosk in the Museum's Lobby. This placement will allow Museum guests the opportunity to access visitor services and information about Tukwila businesses, restaurants and hotels, and allow visitors to book lodging accommodations in Tukwila. Approval of the design, placement, and materials of this kiosk will be mutual between the Museum and SSVS. 6. The Museum will publish an article in a 2007 edition of Aloft magazine (read by over 50,000 people) recognizing the City. The SSVS Program Director will approve the content of the article to ensure that it will help promote tourism in the City. 7. Annually, the Museum will contribute an article about the partnership and corresponding results to the City newsletter and SSVS newsletter or announcement to Tukwila residents and businesses. This insertion should include a redeemable Museum coupon to City residents. 8. Annually, the Museum will invite SSVS staff members to present to Museum staff and/or volunteers the SSVS guest relations program in order to ensure Museum staff and/or volunteers help promote tourism in the City in partnership and through the visitor services offered by SSVS. 9. The Museum will work with SSVS to create vacation packages directed towards tourists. 4of5 EXHIBIT `B" MUSEUM OF FLIGHT COMPENSATION AND METHOD OF PAYMENT Compensation The Museum shall submit to the City a request for reimbursement of expenditures made in accordance with this Agreement. The Museum shall issue a maximum of four invoices per year. Details of expenditures made under this Agreement shall be included, and the Museum shall only bill for expenses actually incurred. Reporting: The Museum shall submit to the City a summary of Deliverables as outlined in Exhibit A and conducted under this Agreement in the previous quarterly period within 45 days of the end of the first three quarters and 15 days of the end of the fourth quarter. Samples of promotional materials produced under this Agreement shall be included. Annually, within 45 days of the year -end, the Museum shall submit to the City a written report of City funded activities for the prior year, to include an explanation of goals and outcomes, costs and funding, together with such other information as the Museum may deem helpful to the City in evaluating the impact of Hotel -Motel funding on tourism promotion. Report Submittals Submittal of summary of Deliverables as outlined in Exhibit A and request for reimbursement as set for the Exhibit B shall be sent to the following address: Seattle Southside Visitor Services City of Tukwila 14220 Interurban Avenue S., Suite 130 Seattle, WA 98168 Attention: Katherine Kertzman, Program Director 5 of 5 01 I- Q a 1 City of Tukwila Finance Safety Committee 1908 FINANCE AND SAFETY COMMITTEE Meeting Minutes May 21, 2007- 5:00 p.m. PRESENT Councilmembers: Jim Haggerton, Chair; Joan Hernandez and Dennis Robertson Staff: Rhonda Berry, Lori Sutter, Katherine Kertzman, Bruce Fletcher, Kevin Fuhrer, Christy O'Flaherty and Kimberly Matej CALL TO ORDER: Committee Chair Haggerton called the meeting to order at 5:04 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Authorize Mayor to Sien Contract with Museum of Flight for Marketing through Seattle Southside Katherine briefly described the specifications of the contract with the Museum of Flight which will offer additional marketing opportunities as well as ensure that all group leads are forwarded to the Seattle Southside Visitors Services (SSVS) rather than other entities. This contract commences after nearly three years of discussion and designates $25,000 annually of Tourism and Marketing funds for the next 10 years. Katherine explained that contract was signed prior to coming to Committee and Council because the annual amount did not exceed $25,000; however, due to the multi -year terms of the contract the City attorney recommended securing Council approval. If the Council has any concerns with the contract, SSVS will modify or nullify the contract as necessary. Funds have been allocated in the 2007 budget to enter into this contract. SeaTac also contributes $25,000 annually to the Museum of Flight for these services. Katherine was complemented on her negotiation of the conditions of the contract. The Committee feels the contract is beneficial to the City and recommends the contract be brought to full Council for discussion. UNANIMOUS APPROVAL. FORWARD TO MAY 29 COW. B. Parks Recreation Department Staff Reorganization Due to two recent vacancies in the Parks Division of the Parks and Recreation Department, staff is proposing a minor reorganization. This reorganization would promote two 3 /4 -time employees to full -time status and create a new 3 /4 -time position (.75 FTE). All of these changes would result in a .25 staffing increase for the Parks Division. A budget appropriation would not be required for this increase due to a decrease in the extra labor budget as a result of the reorganization. Staff also presented this reorganization to the Community Affairs and Parks Committee on May 15, 2007; that Committee recommended approval and forwarding to the COW. UNANIMOUS APPROVAL. FORWARD TO MAY 29 COW.