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HomeMy WebLinkAboutCOW 2004-08-09 Item 5C - Interlocal Agreement - Tourism Services Between Seattle Southside Visitor Services / City of Kent COUNCIL AGENDA SYNOPSIS o -a e Initiak ITEM NO. li 9., 1 Meeting Date I Prepared by 1 Mayor'r review 1 Council review I N' 2 j% I 08/09/04 1 AD 1 /i L( 1 .c„/ /w.fr 1 C, Isoa ITEM INFORMATION CAS NUMBER 04-114 !ORIGINAL AGENDA DATE: 8/9/04 AGENDA ITEM TITLE An Interlocal Agreement between the Seattle Southside Visitor Services and the City of Kent for Tourism Services CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 8/9/04 Mtg Date 8/16/04 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date I SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal ParR Police PTV SPONSOR'S The Interlocal Agreement will authorize the Seattle Southside Visitor Services to provide SUMMARY Tourism and Marketing services to the City of Kent as an Associate Member. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte] Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/2/04 RECOMMENDATIONS: SPONSOR /ADMIN. Approve as presented CoMMITrEE Same as Sponsor aCOS;VIM /FUND *SOURC EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED n/a n/a n/a Fund Source: ADDITIONAL $100,000 WILL BE ADDED TO THE TOURISM BUDGET FOR 2005. Comments: fatb telI`_M' s RECORD OFaCOUNCILikehbN 4 h 4 11ATG;:DAtt iI _1 ATTACHMENTS 8/9/04 1 Staff report from A. Doerschel dated 7/27/04 1 Draft Interlocal Agreement F&S Committee minutes dated 8/2/04 1 1 1 I I To: Ma.vor & City Council From: Alan R. Doerschel (~ Date: July 27, 2004 Subject: Agreement with City of Kent for Tourism Services ISSUE The City of Kent has proposed to be a limited member of Seattle Southside Tourism, BACKGROUND City of Kent has participated in two of our more successful endeavors - The Current Western States Softball Championships and the 2006 World Championships. They would like to join our group as an Associate member. DISCUSSION See proposed revised budget and interlocal agreement. RECOMMENDATION Approve the signing of the agreement. INTERLOCAL AGREEMENT FOR TOURISM AND MARKETING SERVICES BETWEEN SEATTLE SOUTHSIDE VISIOTR SERVICES AN D CITY OF KENT This Interlocal Agreement, made and entered i'nto this ., 2004, by and between the Seattle Southside Visitor Services, a tourism marketing program offered by the cities of Tukwila and SeaTac, hereinafter called SSVS and the City of Kent, a municipal corporation, hereinafter called Kent. RECITALS WHEREAS Kent desires to purchase professional tourism & marketing services for the purpose of increasing awareness of Kent and the surrounding area as a tourist destination; WHEREAS, SSVS is willing to expand the scope of its existing tourism and marketing services to include Kent; WHEREAS, it is agreec that the most desirable arrangement for conducting this operation is an Interlocal Agreement; NOW THEREFORE, for the reasons recited above, and in consideration of the mutual covenants contained in this agreement, the parties agree as follows: SECTION ONE. SCOPE AND DESCRIPTION Pursuant to Chapter 39.34 RCW, SSVS agrees to jointly provide Tourism and Marketing services for the combined cities beginning 1, 2004. This Interlocal Agreement shall be conducted under the program title of Seattle's Southside Visitor Services (SSVS) from a place of service located in the Building known as Fairway Center, Building A, 14220 Interurban Avenue South, Suite 130, City of Tukwila, County of King, and State of Washington. Services include but are not limited to providing comprehensive visitor information services to tourists and facilitating input from area tourism businesses for the purpose of developing, implementing and evaluating annual marketing and media plans. The marketing and media plans include budget information, implementation schedule and evaluation strategies. SSVS is designated as Administrator responsible for administering this joint agreement. SECTION TWO. CONTRIBUTIONS Program Expenses: Kent will contribute to program expenses for SSVS (including but not limited to overhead, salaries and benefits, rent, utilities, supplies, meetings, postage, travel and education, associations fees, phones, media campaign, special projects and other misc. expenses). The program expenses shall be based on a valuation derived from the final SSVS Tourism & Marketing Budget. Kent's contribution for the first year's (12 months) program expenses is valued at ONE HUNDRED THOUSAND DOLLARS ($100,000) to be paid to SSVS in twelve equal payments of EIGHT THOUSAND, THREE HUNDRED AND TRITY THREE 8/4/04 DRAFT Pa~e 2 of 4 DOLLARS AND THIRTY THREE CENTS ($8,333.33). KENT will pay SSVS at the beginning of each month beginning 2005. The annual program contribution for Kent for 2006 and subsequent years maybe adjusted for inflation and will be determined annually during the budget process but no less than the first year's expenses. K~nt will reimburse SSVS's program commitments for the duration of the Interlocal Agreement. Tukwila will invoice Kent monthly. Kent Specific Projects: Kent will implement Kent specific projects. Kent will manage and assume 100% financial responsibility for all Kent specific tourism projects, At such time as Kent and SSVS mutually agree, SSVS may advise or assist Kent regarding Kent specific projects (including sport tournament bids, etc,). SECTION THREE. CONDUCT OF INTERLOCAL AGREEMENT SSVS shall have following responsibilities as administrator of this Interlocal Agreement. SSVS will: (a) conduct, manage, operate, and arrange all the business affairs of the tourism and marketing services, hire other employees needed to carry on the business, determine the wages and make contracts with the employees, enter into other contracts in the name of and for the SSVS, and in general do anything ordinarily done by the manager of a business (b) facilitate the involvement of Kent tourism businesses into the existing SSVS Tourism Networking Committee and hereafter the committee will be known as Seattle's Southside Tourism Networking Committee for the purposes of creating awareness, support and participating in SSVS various marketing activities (c) regularly attend Kent's Lodging Tax Advisory Committee meeting (d) prepare and implement annually approved marketing and media plans (e) prepare and submit quarterly outcome reports to the Tukwila Lodging Tax Advisory Committee, SeaTac Hotel Motel Tax Advisory Committee and Kent Lodging Tax Advisory Committee (f) select subcontractors and vendors (g) ascertain creative production (typed layouts, type specs, mechanical assembly) Such authority may be increased or decreased from time to time on mutual written agreement of the cities. SECTION FOUR. RECORDS AND ACCOUNTING 8/4/04 DRAFT Page 3 of 4 SSVS shall maintain or cause to be maintained books of accounts concerning the total operation of the Interlocal Agreement, in which books shall be entered, fully and accurately, each transaction pertaining to the Interlocal Agreement. All the books will be open at any reasonable time for inspection and examination by Kent. The fiscal year of the lnterlocal Agreement shall commence on January 1 and close on December 31 of each year of operation. All accounting based on fiscal year figures shall be completed within 45 days after the close of the fiscal year. SECTION FIVE. TERM The effective date of the Interlocal Agreement shall be ,2005, and this Interlocal Agreement shall continue in effect for a period of three years from that date. On or before April 30, 2007 the cities will determine if this Interlocal Agreement may be continued for another period of three years, or for such time as the parties may then see fit. SECTION SIX. TERMINATION OF INTERLOCAL AGREEMENT It is agree(: that either SSVS or Kent may terminate this Interlocal Agreement with 60 days notice prior to the beginning of each new calendar year, and such termination shall be in writing. However, the party initiating the termination shall be responsible for paying 30% of any remaining office lease obligation and 30% of any remaining annual media buy. The agreement can be terminated at any time provided both parties are in agreement on the terms of such termination. SSVS maintains ownership of all capital assets at the termination of this Interlocal Agreement. SECTION SiX. HOLD HARMLESS OF INTERLOCAL AGREEMENT SSVS and Kent agree that each party shall defend, indemnify, and hold harmless the other party and its officers, officials, agents employees, and volunteers from any and all claims, injuries, actions, damages, losses or suites including reasonable attorney's fees, which arise out of, are connected with, or due to any errors, omissions or negligent acts in the performance of this agreement, except for each party's own comparative negligence. In witness whereof, the parties have executed this Interlocal Agreement at the day and year first above written. 8/4/04 DRAFT Page 4 of 4 CITY OF TUKWILA CITY OF KENT Steve Mullet, Mayor City Manager Attest: Attest: , City Clerk , City Clerk Approved as to Form: Approved as to Form: , City Attorney , City Attorney Proposed 2005 SSVS Tourism Budget Kent, SeaTac and Tukwila Effective January I, 2005 each City will contribute: Kent 100,000 SeaTac 370,000 Tukwila 370.000 TOTAL $840,000 SSVS Basle Operations: 2005 Basic Operations 400,000 Total Joint Operations $400,000 Special Projects: Media Buy - General 101.00.557.301.44.10 250,000 Special Projects 101.00.557.301.44.12 190,000 {Reprint Vocation planner) 90, 000 (Coupon Boole) 1 O, 000 tOther.such as direct malt, give away, package 90,000 morkeiin~, PR, SMERF, etc.} Total Special Projects $440,000 Total Budget $840,000 Each City will make an additional $20,000 available annually for bidding on tournaments. SSVS will use this fund as a cash flow account and will make every effort to pursue additional funding sources to replenish this account. The Seattle Southside Vacation Planner will be reprinted Jan. 2005. Gearing up for the addition of Kent to publication will require start up dollars in 2004 as follows: · $3,300 - 1 additional page of lodging facilities (15-18 hotel/motels) · $3,300 - 1 additional page added to Southside section · '$3,000 - Copy writing, editing, and photography throughout publication · $15,000 - new map (based on a quote from Brownine & Browning) $24,600.4dditionalpages must be added in multiples of 4 Plus 2 additional pages of Kent restaurant listings (to be, paid for by restaurateurs at $250 per listing, 15-18 per page) SSVS will work with City staffand the Kent Chamber of Commerce to obtain these listings. SSVS 2005 marketing tactics to be offered to Kent businesses (other than hotels, major tourist attractions and City venues) will require a minimal participation fee for example: · $600 per 2 page spread in the Restaurant book · $250 per coupon offer in Coupon book · $100 Website Coupon · $100 Website Listings Finance and Safety Committee August 2, 2004 Present: Dave Fenton: Chair; Joan Hernandez, Dennis Robertson Alan Doerschel, Lucy Lauterbach, Rhonda Berry; Katherine Kertzman 1. Tourism and Marketing Lease Katherine had worked out a lease agreement in a new building. Her lease in the current building would be up at the end of the year, and the new location on Interurban offers a larger space and some tenant improvements as well as better signage that will make the business easier to locate. The new space will be in the Fairway Center Building across from Gallianos. They will also get free rent for 5 months. The space will cost $2625/month for ? months after that. Essentially the City will pay the same for almost double the space Lodging uses now. They will join the Chamber of Commerce at the new location. Send new lease agreement to COW. ,/~. Kent and Tourism and Marketing Kent has proposed becoming a limited member of cattle Southside Tourism. They were involved in both softball tournaments that are coming to Starfire, as they have ball fields that will be used. Instead of being a full member as Tukwila and Sea Tac are, they will instead contract with Tourism for advertising for specific events. Kent only has about six motels. They, like Tukwila and Sea Tac, will have their own Lodging Tax Advisory Board. Dave congratulated Katherine on her successful marketing. Recommend interlocal agreement to COW. 3. Debt Policy Alan said the debt policy and the Planning model are related. He had included a copy of Kirkland's debt policy, which the Committee members were not impressed with. The City has $24 million available in remaining debt.capacity, but as Alan said, there's a difference between the legal limit capacity and the City's ability to pay the debt service. We currently pay $2.1 million in debt service. With 'at least Klickitat and TVS to pay for, the City could conceivably use almost all of its debt capacity. Joan and Dennis thought there were better debt policies that could be used as models, and they also thought the City would benefit from some financial training. They supported bringing in the same trainer used at AWC for a couple of two hour training sessions on finances. Reschedule. 4. LIDs LIDs can either be owner-initiated, or started by the City with those in the LID area having the ability to vote against the LID if 60% of the property owners agree they don't want it. If the City were to LID Klickitat, it would take at least of year of education beforehand to make those paying understand the benefit. To do that, one would need to know the cost and benefit of such an LID. Even before that, understanding the infrastructure needs would need to be agreed upon. For other large City projects, the City could try to get grants, and could get a Public Works Trust Fund Loan, which would be paid back by a development. Joan wanted the whole Council to understand the options for paying for the TVS proposal. Information.