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HomeMy WebLinkAbout17-124 - Museum of Flight - 2017 Contract for Tourism PromotionCity of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: 17 -124 Council Approval 6/5/17 CONTRACT FOR LODGING TAX FUNDING This 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 the Museum of Flight, hereinafter referred to as "the Contractor," whose principal office is located at 9404 East Marginal Way South; Tukwila, Washington; 98108. WHEREAS, the City imposes a special excise tax under Chapter 82.08 Revised Code of Washington ( "RCW "), known as the "lodging tax," on furnishing of lodging in hotels, motels and similar business enterprises, as authorized under Chapter 67.28 RCW; and WHEREAS, the City is authorized to use the lodging tax revenue for tourism promotion, as defined by Chapter 67.28 RCW; 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 April 25, 2017, the City's Lodging Tax Advisory Committee considered and approved Contractor's request to obtain lodging tax revenue for tourism promotion; and WHEREAS, on June 5, 2017, the Tukwila City Council concurred with the Lodging Tax Advisory Committee's recommendation to provide lodging tax revenue to the 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: 1. 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. 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 $50,000.00. By entering into this Agreement, the City accepts no responsibility for the activities or events, or the operation of the activities or events, described in Exhibit A. 3. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing June 15, 2017, and ending March 1, 2018, unless sooner terminated under the provisions hereinafter specified. All services and sponsorships conducted by the Contractor shall occur in 2017. CA Revised 2012 1 S4- o- 2 0 r-1 b 1 r t ``.L..s Page 1 of 11 4. 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. 5. 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, or arising out of or in connection with the activities described in Exhibit A 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. It is further provided that no liability shall attach to the City by reason of entering into this contract except as expressly provided herein. 6. Insurance. Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000.00 per accident. Automobile liability insurance shall cover all owned, non - owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $1,000,000.00 for each occurrence, $2,000,000.00 general aggregate and $2,000,000.00 products - completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products - completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 1010 01 and Additional Insured- CA Revised 1 -2013 Page 2 of 11 Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self- insurance, or insurance pool coverage maintained by the City shall be in excess of the Contractor's insurance and shall not contribute to it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to, the additional insured endorsement evidencing the insurance requirements of the Contractor before commencement of the work. E. Subcontractors. The Contractor shall cause each and every Subcontractor to provide insurance coverage that complies with all applicable requirements of the Contractor - provided insurance as set forth herein, except the Contractor shall have sole responsibility for determining the limits of coverage required to be obtained by Subcontractors. The Contractor shall ensure that the City is an additional insured on each and every Subcontractor's Commercial General liability insurance policy using an endorsement at least as broad as the Insurance Services Office Additional Insured endorsement CG 20 38 04 13. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance 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. 7. 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 Chapter 40.14 RCW and by the City. 8. 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. CA Revised 1 -2013 Page 3 of 11 • 9. Termination. A. This Agreement may at any time be terminated by the City by giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. B. Failure to provide products and services 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. C. The parties hereto acknowledge that this Agreement is funded by lodging tax funds, collected and expended by the City pursuant to Chapter 67.28 RCW. In the event of any amendments to Chapter 67.28 RCW which impact collect or use of lodging taxes, the City may, at its sole discretion, terminate this Agreement giving the Contractor 30 days written notice of the City's intention to terminate the same. 10. 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. 11. Assignment and Subcontract. Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. Nothing in this Agreement shall prohibit the Contractor from engaging outside vendors or other service providers in the normal course of its operations or otherwise in furtherance of the services to be provided under this Agreement. 12. 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. 13. Severabilitv 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. 14. 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: 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. CA Revised 1 -2013 Page 4 of 11 15. 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 l' "day of CITY OF KWILA Allan MP" ."- •.- g, Mayor ATT T / TH NTICATED: City Clerk, Christy O'Flaherty APPROVED AS TO FORM: Office of the City Attorney CA Revised 1 -2013 ,2017. CONTRACTOR By: (f Printed Name and Title: LOJANti 4�• Address: 14404 VPod, Mctw �-Q Inky S, 1 1 ) 1 4 1 4 1 1 WA Ise$ Page 5 of 11 Museum of Flight Exhibit "A" 2017 Scope of Services 1. As needed, contractor shall refer visitors and convention planners to Seattle Southside Regional Tourism Authority (SSRTA), a destination marketing organization for the City, for assistance with lodging, restaurants, attractions, transportation companies, etc. or directly to the City. 2. Contractor will encourage 3rd party organizers holding events at the Museum to utilize Seattle Southside (Tukwila, SeaTac, and Des Moines) hotels. Contractor will, when appropriate, provide 3rd party organizers a one -page promotional flyer as an attachment to its rental contracts. The content of the flyer will be mutually agreed upon by the City and the Museum. 3. The Museum will invite City staff and SSRTA staff members to present to Museum staff and /or volunteers the SSRTA guest relations program in order to ensure staff and /or volunteers help promote tourism in the City in partnership and through the City and SSRTA. 4. The Museum will work with the City's partner, SSRTA, to create vacation packages directed toward overnight guests. 5. The Museum will seek public relations opportunities to recognize the City in press releases, posters, etc. 6. The Museum will include the City in all appropriate donor listings. 7. The Museum will publish an article in a 2017 issue of aloft magazine (read by over 50,000 people) about the City of Tukwila. The article could include a discussion about things to do outside of the Museum on visits to the City, dining options, and /or stories of interests as well as highlighting the Museum — Tukwila partnership. The City will have the opportunity to provide input to the content of the article. 8. The Museum shall contribute an article to one edition of the City's section of the Tukwila Reporter or Hazelnut (as deemed most appropriate by the City) about the partnership and corresponding economic impacts. The insertion shall include a redeemable Museum coupon for City residents. 9. The Museum shall provide the City two social media posts in order for the City to promote upcoming events and festivals in the City. . Total Value: $5,000 CA Revised 1 -2013 Page 6 of 11 10. Memorial Day Weekend Activities: Activities honoring fallen military service men and women. The City shall be listed as the presenting sponsor for Memorial Day Weekend. Planned events include: • Performance by the Boeing Employee Concert Band • Public program featuring civilian and military guest speakers • Free admission for US Military personnel with identification Presenting Sponsor Benefits: a. Opportunity for City of Tukwila staff to make brief remarks during the public program b. Logo on Museum website event page for Memorial Day c. Display City of Tukwila banner (provided by the City). in prominent location d. Six (6) passes for guests admission to the Museum Total Value: $10,000 11. Jet Blast Bash /Seafair Activities: Outdoor family weekend festival right on the Blue Angels' flight line with static displays in the Museum's parking lot and guest speakers in the Museum's theater. The City shall be listed as the presenting sponsor for the Jet Blast Bash /Seafair Activities on August 5th and 6th. Planned events include: • 10,000+ Museum members and guest visitors enjoy food, drinks, entertainment, and special activities in the east parking lot including up -close viewing of the Blue Angels flights. • In addition to activities in the parking lot, special guests such as legendary SR -71 Blackbird spy -plane pilot Brian Shul share their stories in the theater. Presenting sponsor benefits: a. Acknowledgment on the Museum's Jet Blast Bash webpage with linked logo. Tukwila's name shall appear near the top of the webpage, with linked logo at the bottom of the page. b. A prime dedicated 10' by 10' tent with 6' tables for giveaways, information, and /or for hospitality. Museum understands the City will use its booth to promote other businesses in the City or make the booth available to SSRTA. c. Photo booth (or equivalent opportunity) at VIP viewing party with City of Tukwila (or similar props) included and opportunity for guests to take home their photos. d. Minimum of five social media cross - promotion posts leading up to and during the event. City can use the cross - promotions to promote activities, dining, shopping, and hotels in Tukwila. e. Opportunity to put promotional items in VIP goodie bags or distribute at lunch tables. Promotional items could be discounts and coupons for activities, dining, shopping, and /or hotels in Tukwila. f. Museum shall work with media promoting the event to ensure that "Tukwila" is used in articles and radio broadcast about the event. For example, "Jet Blast Bash, presented by the City of Tukwila." Total Value: $15,000 CA Revised 1 -2013 Page 7 of 11 12. Museum of Fright Halloween Event: For one night each year, the Museum of Flight becomes the spooky Museum of Fright! The City shall be listed as the presenting sponsor for the "Museum of Fright Family Halloween Event" with the following benefits. Planned events include: • Fun and deaducational flight - themed activities including storytelling, arts and crafts, simulator flights, and games. Presenting sponsor benefits: a. Acknowledgment on the Museum of Fright webpage with linked logo. Tukwila's name shall appear near the top of the webpage, with the linked logo at bottom of the page b. Minimum of five social media cross - promotion posts leading up to and during the event c. Dedicated table space during the event to provide information and giveaways about City hospitality resources d. Museum shall work with media promoting the event to ensure that "Tukwila" is used in articles and radio broadcast about the event Total Value: $5,000 13. Veteran's Dav Activities: The Museum salutes the outstanding contributions of America's veterans at the annual Veterans Day Ceremony. The City of Tukwila shall be listed as the presented sponsor of Veteran's Day at the Museum of Flight. Planned events include: • Performance by a local community orchestra • A color guard presentation, and guest speakers from the U.S. military • Public program featuring civilian and military guest speakers • Special family programs throughout the day. 2017 will pay special tribute to the American Fighter Aces Association • All U.S. veterans and current U.S. military personnel receive free Museum admission Presenting Sponsor Benefits: a. Logo on Museum website event page for Memorial Day b. Display City of Tukwila banner (provided by the City) in prominent location c. Six (6) passes for guests admission to the Museum Total Value: $10,000 14. Santa Fly -In Holiday Event: Holiday themed activities in and around the Museum welcome families. The City shall be listed as the presenting sponsor for the "Santa Fly In." Planned events include: • Santa and Mrs. Clause make a dramatic entrance aboard his deHavilland Beaver aircraft (weather dependent). • Local community orchestras provide holiday music. • The Museum hosts a variety of family -fun activities. Presenting Sponsor Benefits: CA Revised 1 -2013 Page 8 of 11 a. Acknowledgment on the Santa Fly In webpage with linked logo. Tukwila's name shall appear near the top of the webpage, with the linked logo at the bottom. b. Minimum of five social media cross - promotion posts leading up to and during the event. c. Dedicated table space to provide information and giveaways about City Hospitality resources. Total Value $5,000 CA Revised 1 -2013 Page 9 of 11 Exhibit "B" Compensation and Method of Payment and Reporting Compensation and Method of Payment Contractor shall submit to the City a request for reimbursement for services and sponsorships rendered under this Agreement. The total compensation to the Contractor under this agreement shall not exceed $50,000.00. Invoices and request for reimbursement shall be mailed to: City of Tukwila ATTN: Brandon Miles 6200 Southcenter Blvd. Tukwila, WA 98188 The following are the dates and amounts to be invoiced to the City. Invoice # Date (no later than): Amount: For: 1 August 18, 2017 $25,000 Memorial Day Event and Jet Blast Bash. 2 December 1, 2017 $15,000 Museum of Fright and Veteran's Day Event 3 January 5, 2018 $10,000 General Marketing and Santa Fly In. Should the Contractor choose to cancel or modify any of the events sponsored by the City under this agreement, the City may choose to reduce the awarded funds. The amount reduced shall be at the sole discretion of the City. Reporting Requirements With each invoice, the Contractor shall provide the following to the City: 1. Estimate number of attendees for each event. 2. Website views on the Contractor's website of the event page 3. Likes, follows, and shares on social media for the event. 4. Examples of marketing material prepared to promote the event. 5. List of any earned media for the event. 6. Any other document the Contractor wants to provide to demonstrate success of the event and marketing activities. CA Revised 1 -2013 Page 10 of 11 In additional the items outlined above, the following information shall be included with the January 5, 2018 invoice. This information is required to be collected by Washington State law. As a direct result of your proposed tourism - related service, provide an estimate of: a. Overall attendance at your proposed eve nt /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? 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? (example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights.) g. Number of paid lodging room nights resulting from your proposed 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 above actuals were determined. Reports and Deliverables shall be submitted to: City of Tukwila ATTN: Brandon Miles 6200 Southcenter Blvd. Tukwila, WA 98188 CA Revised 1 -2013 Page 11 of 11