HomeMy WebLinkAboutReg 2016-08-01 Item 5C - Agreement - Tourism Promotion with Seattle Southside Regional Tourism Authority for $337,500 (Lodging Tax Funds)COUNCIL AGENDA SYNOPSIS
initials
Meefin Date Prepared by Mayor's reydeiv Council review
08/01/16 BJM
ITEM INFORMATION
ITEM NO.
5.C.
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TST FFSPONSOR: B. MILES
ORIG INA], AG 1',NDA DATE: 8/01/16
A('.E.NDA ITEM Ti'miE 2016 Contract with Seattle Southside Regional Tourism Authority for Tourism
Services
CATEGORY ❑ Discussion
Mt
,g Date
F;1 Motion
Mi g Date 8101116
❑ Resolution
Mtg Date
F-1 Ordinance
Mt g Date
E]BidAward
Mig Date
❑ Public Hearing
M1 Date
[:] Other
At Date
SPONSOR ❑ Council ❑ Mayor 0HR ❑ DCD ].Finance ❑ Fire ❑ TS ❑ P& RE Police ❑ PW /
SPONSOR'S On June 20, 2016 the City Council approved a 2016 lodging tax application from SSRTA to
SUMMARY use $337,500 in lodging tax funds for tourism promotion. Given that the amount of the
contract with SSRTA is over $40,000 the City Council needs to authorize the Mayor to sign
the contract. The scope of work for the contract is consistent with the scope of work
reviewed by the City Council as part of the application process.
Ri1,A`IEWJ,'1D 13Y ❑ cow Mtg. ❑ CA&P Cmte E F&S Cmte ❑ Transportation Cmte
❑ Utilities Cmte f-1 Arts Comm. [:] Parks Comm. ❑ Planning Comm.
DATE: 7/19/16 COMMITTEE CHAIR: SEAL
RECOMMENDATIONS:
SPONSOR/ADMIN. Mayor's Office, Economic Development
C0NIMTT`1'EE Unanimous Approval; Forward to Consent Agenda
COST IMPACT / FUND SOURCE
ExPE'NDITURF Rii'Quiiuu) AMOUNT BUDGETED APPROPRIATION REQUIRED
$337,500 $337,500 $0
Fund Source: 101.00.557.302.41.00 (LODGING TAX FUNDS)
Comments.- NIA
MTG. DATE
RECORD OF COUNCIL ACTION
8/01/16
MTG. DATE
ATTACHMENTS
8/01/16
Informational Memorandum dated 7/11/16
Contract for Service (Exhibit A updated as requested at FS meeting)
Minutes from the Finance and Safety Meeting of 7/19/16
Rl
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Safety Committee
FROM: Brandon J. Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: July 11, 2016
SUBJECT: 2016 Contract with Seattle Southside Regional Tourism Authority for
Tourism Services
ISSUE
Authorizing the Mayor to sign an agreement with Seattle Southside Regional Tourism Authority
(SSRTA) in the amount of $337,500 (lodging tax funds).
BACKGROUND
On June 20, 2016 the City Council approved a 2016 lodging tax application from SSRTA to use
$337,500 in lodging tax funds for tourism promotion. Given that the amount of the contract with
SSRTA is over $40,000 the City Council needs to authorize the Mayor to sign the contract. The
scope of work for the contract is consistent with the scope of work reviewed by the City Council
as part of the application process. Additionally, the funding amount matches the anticipated
funding outlined in interlocal agreement No. 14 -049 with the cities of SeaTac and Des Moines.
DISCUSSION
As the City Council is aware, in the past the City offered marketing services for overnight guests
as division of the Mayor's Office under the name "Seattle Southside Visitor Services (SSVS)." In
2015, the functions of SSVS transitioned to SSRTA and the City no longer directly provides
marketing services to overnight guests. SSRTA is a key partner in the City's efforts to draw
overnight guests to the City. The proposed contract will support SSRTA's efforts.
FINANCIAL IMPACT
The contract will not exceed $337,500. The source of the funds is lodging tax (101 fund). Under
Washington State law, lodging tax funds can only be used for tourism promotion. These funds
are budgeted for SSRTA in the adopted 2015/16 budget.
RECOMMENDATION
Staff recommends the Mayor be authorized to sign the agreement with SSRTA. Staff is
requesting the contract be placed on the August 1St consent agenda.
ATTACHMENTS
• Draft contract between the City and SSRTA.
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City of Tukwila Contract Number:
• 6200 Southcenter Boulevard, Tukwila WA 98188
CONTRACT FOR LODGING TAX FUNDING
This Agreement is entered into by and between the City of Tukwila, Washington, a non - charter
optional municipal code city hereinafter referred to as "the City," and Seattle Southside Regional
Tourism Authority, hereinafter referred to as either "the Contractor," or as "SSRTA" whose principal
office is located at 3100 S. 176th Street, Ste. 200; SeaTac, Washington; 98188.
WHEREAS, the City imposes a special excise tax under Revised Code of Washington (RCW)
82.08, known as the "lodging tax," on furnishing of lodging in hotels, motels and similar business
enterprises, as authorized under RCW Chapter 67.28; and
WHEREAS, the City is authorized to use the lodging tax revenue for tourism promotion, as
defined by RCW Chapter 67.28; and
WHEREAS, Contractor is able to help promote the City to both overnight and day visitors, driving
business to Tukwila restaurants, hotels, retailers, and entertainment establishments; and
WHEREAS, on May 25, 2016, the City's Lodging Tax Advisory Committee considered and
approved Contractor's request to obtain lodging tax revenue for tourism promotion; and
WHEREAS, the municipality concurs with the Lodging Tax Advisory Committee's
recommendation to provide lodging tax revenue to Contractor for tourism promotion; and
WHEREAS, it is appropriate for the City to compensate the Contractor for the costs of promoting
tourism (both day and overnight) in the City; and
IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties
hereto agree as follows:
Scope and Schedule of Services to be Performed by Contractor. Contractor 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, Contractor 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. Contractor shall request
and obtain prior written approval from the City if the scope or schedule is to be modified in any
way.
2. Authorized Destination Marketing Organization. Contractor shall be an authorized
destination marketing organization for the City. Contractor shall not represent itself as
representing the City in any lobbying efforts with other governmental organizations, without the
express authorization of the City.
CA Revised 2012, DRAFT
Page 1 of 7
11
3. Compensation and Method of Payment. The City shall pay Contractor for services rendered
according to the rate and method set forth on Exhibit B attached hereto and incorporated herein
by this reference. The total amount to be paid shall not exceed $337,500.
4. Duration of Agreement. This Agreement shall be in full force and effect for a period
commencing July 1, 2016, and ending December 31, 2016, unless sooner terminated under the
provisions hereinafter specified.
5. Independent Contractor. Contractor and City agree that Contractor is an independent
contractor 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 Contractor nor any employee of Contractor 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 Contractor, or any employee of the Contractor.
6. Indemnification. Contractor shall defend, indemnify and hold the City, its officers, agents,
officials, employees and volunteers harmless from any and all claims, injuries, damages, losses
or suits including attorney fees, arising out of or in connection with the performance of this
Agreement, except for injuries and damages caused by the sole negligence of the City. Should a
court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then,
in the event of liability for damages arising out of bodily injury to persons or damages to property
caused by or resulting from the concurrent negligence of Contractor and the City, its officers,
officials, employees, and volunteers, Contractor's liability hereunder shall be only to the extent of
Contractor's negligence. It is further specifically and expressly understood that the
indemnification provided herein constitutes Contractor's waiver of immunity under Industrial
Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been
mutually negotiated by the parties. The provisions of this section shall survive the expiration or
termination of this Agreement.
7. Insurance. Contractor shall maintain liability coverage with Washington Cities Insurance
Authority (WCIA) for the life of this agreement. Contractor shall provide a letter to the City from
WCIA demonstrating coverage prior to requesting first payment from the City.
A. Subcontractors. Contractor shall have sole responsibility for determining the
insurance coverage and limits required, if any, to be obtained by subcontractors, which
determination shall be made in accordance with reasonable and prudent business
practices.
B. Notice of Cancellation. The Contractor shall provide the City with written notice of
any policy cancellation by WCIA, within two business days of their receipt of such notice.
C. Failure to Maintain Coverage from WCIA. Failure on the part of the Contractor to
maintain the coverage as required shall constitute a material breach of contract, upon
which the City may, after giving five business days' notice to the Contractor to correct the
breach, immediately terminate the contract or, at its discretion, procure or renew such
insurance and pay any and all premiums in connection therewith, with any sums so
expended to be repaid to the City on demand, or at the sole discretion of the City, offset
against funds due the Contractor from the City.
CA Revised 1 -2013
12
Page 2 of 7
8. Record Keeping and Reporting.
A. The Contractor 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.
9. 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.
10. Termination. This Agreement may at any time be terminated by the City giving to the
Contractor 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. If the Contractor's insurance
coverage is canceled for any reason, the City shall have the right to terminate this Agreement
immediately.
11. Discrimination Prohibited. Contractor, with regard to the work performed by it under this
Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin,
age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation or
the presence of any disability in the selection and retention of employees or procurement of
materials or supplies.
12. Assignment and Subcontract. Contractor shall not assign any portion of the services
contemplated by this Agreement without the written consent of the City.
13. Entire Agreement; Modification. This Agreement, together with attachments or addenda,
represents the entire and integrated Agreement between the City and the Contractor and
supersedes all prior negotiations, representations, or agreements written or oral. No amendment
or modification of this Agreement shall be of any force or effect unless it is in writing and signed
by the parties.
14. Severability and Survival. If any term, condition or provision of this Agreement is declared
void or unenforceable or limited in its application or effect, such event shall not affect any other
provisions hereof and all other provisions shall remain fully enforceable. The provisions of this
Agreement, which by their sense and context are reasonably intended to survive the completion,
expiration or cancellation of this Agreement, shall survive termination of this Agreement.
15. Notices. Notices to the City of Tukwila shall be sent to the following address:
City Clerk, City of Tukwila
6200 Southcenter Blvd.
Tukwila, Washington 98188
With a copy to:
CA Revised 1 -2013
Page 3 of 7
13
Office of Economic Development
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Notices to the Contractor shall be sent to the address provided by the Contractor upon the
signature line below.
16. 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.
The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit.
DATED this day of , 20_
CITY OF TUKWILA
Allan Ekberg, Mayor
ATTEST /AUTHENTICATED:
City Clerk, Christy O'Flaherty
APPROVED AS TO FORM:
Office of the City Attorney
CA Revised 1 -2013
14
CONTRACTOR
M
Printed Name and Title:
Address:
Page 4 of 7
UPDATED AFTER FS
IM STRIKE -THRU FORMAT
Exhibit "A"
2016 Scope of Services
Maintain a destination marketing website and toll -free phone number to attract inquiries from
leisure and business travelers and meeting planners primarily outside a 50 -mile radius. The
website will include information and business listings for tourism related businesses located in
Tukwila that hold a Tukwila business license�Ufi -�;
including those business that do not pay lodging tax or TPA assessments, -u4 ire 6ip1
2. Produce and distribute a Destination Guide that includes information and business listings for
tourism related businesses that hold a Tukwila business license (list of licenses to be provided by
City staff) including those business that do not pay lodging tax or TPA assessments; busiResS
3. Provide meeting planning assistance to planners looking host events in the Tukwila area. List all
meeting resources in guide under develepmeRt and distribute to potential clients.
4. Work with tourism related business to promote the area as a meeting and event friendly
destination at trade shows and client meetings.
5. Produce and distribute a Dining Guide on a no -less -than every other year basis that includes
information and businesses listings for area full service restaurants that includes those located in
Tukwila.
6. Organize familiarization (FAM) tours that highlight local tourism related businesses to other
industry affiliates, planners and media.
7. Include a reciprocal link to the City on Seattle Southside.com in the "About Us" section under
"Our Cities ".
8. Seattle Southside RTA will use its social media platforms such as Facebook, Twitter, blog posts,
press releases, and e- newsletters as vehicles to promote the City's relevant tourism activities,
events and festivals and tourism businesses happenings.
9. Support the City's efforts to attract visitors to local events by acting as a sourcing partner to help
secure vendors as well as social media and PR support.
10. Staff and operate a Visitor Center kiosk at Westfield Southcenter that provides visitors and area
residents with information about Tukwila merchants, activities, upcoming events, and information
pertaining to the surrounding area. The Visitor Center will be open seven days a week with
extended hours; closed on some major holidays.
11. Produce an Annual Report and present report to the City Lodging Tax Advisory Committee, City
Council, or other meetings, if requested by the City.
CA Revised 1 -2013
Page 5 of 7
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Exhibit "B"
Deliverables and Method of Compensation
Prior to requesting any reimbursement, the following shall be provided to the City:
1. Completed and signed W -9.
2. A letter to the City from WCIA demonstrating coverage.
Contractor shall receive two payments for services rendered under this Agreement. Requests for
reimbursement shall occur no later than the following dates:
• September 30, 2016;
• January 17, 2017.
With each request for reimbursement Contractor shall provide the following to the City.
1. Web analytics;
2. Media impressions;
3. Social media engagement;
4. Visitor Center interactions;
5. Group /Meeting Stats (leads, booked, services);
6. FAM trips and site visits;
7. Estimated actuals for overnight guests in the City (this deliverable shall be provided to the City no
later than March 1, 2017).
With the January 17, 2017 report the Contractor shall provide the City a year -end report. The report shall
summarize the annual results of the metrics outlined above and provide a brief narrative regarding how
the City's lodging tax fund were utilized.
CA Revised 1 -2013
16
Page 6 of 7
The following information, required by Washington State law, shall also be provided to the City in the
year -end report:
As a direct result of your proposed tourism - related service, provide the actual:
a. Overall attendance at your proposed event /activity /facility
b. Number of people who traveled fewer than 50 miles for your
event /activity
c. Number of people who traveled more than 50 miles for your
event /activity
d. Of the people who traveled more than 50 miles, the number of people
who traveled from another country or state
e. Of the people who traveled more than 50 miles, the number of people
who stayed overnight in Tukwila.
f. Of the people who stayed overnight, the number of people who stayed in
PAID accommodations (hotel /motel /bed - breakfast) in Tukwila.
g. Number of paid lodging room nights resulting from your event/
activity /facility
(example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75
paid lodging room nights)
Provide information on how the actuals, listed above, were determined.
CA Revised 1 -2013
Page 7 of 7
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1
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
City Council Finance and Safety Committee
July 19, 2016 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Verna Seal, Chair; Kate Kruller, Joe Duffie (Absent: Dennis Robertson)
Staff: David Cline, Brandon Miles, Peggy McCarthy, Vicky Carlsen, Gail Labanara, Mike
Villa, Laurel Humphrey
CALL TO ORDER: Chair Seal called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
H. BUSINESS AGENDA
A. Agreement with Seattle Southside Regional Tourism Authority (SSRTA)
Staff is seeking Council approval of an agreement with Seattle Southside Regional Tourism
Authority (SSRTA) in the amount of $337,500. On June 20, 2016 the City Council approved a 2016
application from SSRTA to use lodging tax funds for tourism promotion. These funds are
budgeted in the adopted 2015/2016 budget. Councilmember Kruller asked that text corrections
in the contract be shown in markup. UNANIMOUS APPROVAL. FORWARD TO AUGUST 1, 2016
REGULAR CONSENT AGENDA.
B. City Council Proposed 2017 -2018 Departmental Budget
Staff is seeking Council approval of the City Council departmental budget for 2017 -2018, which
includes salaries and wages, benefits, supplies, and services. No changes are being proposed for
supplies, professional services, travel or registrations. The Technology Department is planning
to shift to a centralized system to purchase technology related devices and associated costs, so
expenses associated with this will be removed from the Council Budget and be put into the
Technology Services Department budget. The salaries are based on actual costs for existing
positions and include cost of living adjustments based on trends. As follow up to the July 6
Committee discussion on the development of a new forecast tool, staff asked for Council
representation on a planning Committee. Chair Seal asked staff to provide information on a
proposed meetingschedule and this will help to identify the correct representative. UNANIMOUS
APPROVAL. FORWARD TO JULY 25, 2016 COMMITTEE OF THE WHOLE.
C. 2016 2nd Quarter Police Department Report
Staff updated the Committee on Police Department items of significance that occurred during
the 2nd quarter of 2016. The information included a staffing update, 2nd quarter highlights, and
crime statistics. INFORMATION ONLY.
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