Loading...
HomeMy WebLinkAboutCDN 2019-02-12 Item 2A - Agreement - Lodging Tax Funds with Museum of FlightCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: February 5, 2019 SUBJECT: 2019 Museum of Flight Lodging Tax Contract ISSUE Authorize the Mayor to enter into an agreement with the Museum of Flight (MoF) for 2019 lodging tax funding. BACKGROUND At the February 11 Special Meeting the City Council in anticipated to approve the lodging tax application request from the MoF'. The following outlines the funding request for the MoF. Museum of Flight, Destination Moon, ($100,000) Museum of Flight, a non-profit, is recognized as one of the premier aviation and space museums in the world. The Museum is home to over 150 air and space craft spanning all genres and time periods. Over the last year the Museum has averaged just over 630,000 visitors. Funding for 2019 is requested to support marketing and event activities for the Smithsonian's traveling exhibit "Destination Moon - The Apollo 11 Mission." The Apollo 11 command module Columbia —the only portion of the historic spacecraft to complete the first moon -landing and safely return to Earth —along with more than 20 other mission artifacts will be exhibited at The Museum of Flight from April 13 — September 2, 2019, including the 50th anniversary of the Moon landing — July 20. This iconic capsule left the Smithsonian's National Air and Space Museum for the first time in 46 years, in April 2018, for a two-year traveling exhibition. This exhibit will be in Tukwila on the 50th Anniversary of Neil Armstrong's famous first step. The Museum of Flight is one of only four stops for Destination Moon during its national tour, and the only West Coast destination —of the tour. This event is expected to attract visitors from the entire west coast and across the country. LTAC reviewed the request at its January 22, 2019'meeting and recommends providing funding as requested. Discussion All recipients of lodging tax funds are required to enter a service contract with the City. Since this agreement is over $40,000 it requires the City Council review before the Mayor can execute the Agreement. The Agreement has been reviewed by legal. 1 The application was originally scheduled to be presented to the City Council on February 4. Because of cancelation of the meeting, due to snow, the application was scheduled for the February 11 Special Meeting. INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT Total expenditure is $100,000, which will come from the City's Lodging Tax Fund. The City's LTAC and City Council have already reviewed and approved the funding request application. As a reminder, lodging tax funds are generated from eligible room nights at hotels and motels within the City. Per State Law, the funds can only be used for tourism promotion activities. RECOMMENDATION Authorize the Mayor to sign the Agreement. Forward to the to the February 19, 2019 consent agenda. ATTACHMENTS A. 2019 Agreement between the City of Tukwila and Museum of Flight. 2 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: 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 Museum of Flight, hereinafter referred to as "the Contractor," whose principal office is located at 9404 East Marginal Way S; Tukwila, WA 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 January 22, 2019 the City's Lodging Tax Advisory Committee considered and approved Contractor's request to obtain lodging tax revenue for tourism promotion; and WHEREAS, the City concurs with the Lodging Tax Advisory Committee's recommendation, with the City Council approving the funding request application at its February 4, 2019 regular meeting, 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: 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. Should any of the events or activities outlined in Exhibit A be canceled, modified, or the scale of the event or activities reduced, the City may at its sole discretion reduce its sponsorship funding commitment. 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 $100,000. CA Revised 2012 Page 1 of 8 3 3. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing February 4 2019, and ending March 30, 2020, unless sooner terminated under the provisions hereinafter specified. 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, 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. 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 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 each occurrence, $2,000,000 general aggregate and $2,000,000 products -completed operations aggregate limit. Commercial General Liability insurance shall be as least at broad as 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 a per project general aggregate limit using ISO form CG 25 03 05 09 or an equivalent endorsement. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional 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 CA Revised December 2016 Page 2 of 8 4 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing at least as broad 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 excess of the Contractor's insurance and shall not contribute with 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. Upon request by the City, the Contractor shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. E. 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. 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. 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. CA Revised December 2016 Page 3 of 8 5 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, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. 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. 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: 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 CONTRACTOR Allan Ekberg, Mayor ATTEST/AUTHENTICATED: By: Printed Name and Title: Address: CA Revised December 2016 Page 4 of 8 6 City Clerk, Christy O'Flaherty APPROVED AS TO FORM: Office of the City Attorney CA Revised December 2016 Page 5 of 8 7 Exhibit "A" Museum of Flight Destination Moon 2019 Scope of Services The City shall be provided the following benefits under this Agreement. • Inspire level logo recognition on "title wall" of exhibit entrance: March 15, 2019 deadline • Logo recognition in promotional spots: o Billboards (Puget Sound, Portland, Spokane, and Vancouver BC regions) o Transit (Puget Sound area) o South Lake Union Trolley wrap o Banner on the south exterior wall of Great Gallery (tentative as of 1/16/19) • Logo in Destination Moon visitor guide. March 1,2019 deadline • Logo recognition at events directly related to the exhibit, such as Opening Weekend and Preview events. • Acknowledgment in Aloft, the Museum member magazine circulation 19,000. Included issues would be based on proposal approval date. • Social Media posts to recognize sponsorship • Complimentary tickets for up to 10 guests to select special events held in conjunction with Destination Moon: The Apollo 11 Mission. • Special group -sales rate for timed tickets to Destination Moon • Link on Destination Moon web page to other Tukwila tourism opportunities (opportunities to be provided by City of Tukwila) • Opportunity for Tukwila to use custom logo with tagline "Proud home of The Museum of Flight" • All regional/local radio spots produced by the Museum of Flight promoting "Destination Moon" will be scripted to state the location of the exhibit is in "Tukwila" If a location is mentioned. • All press releases produced by the Museum and issued after execution of this contract promoting "Destination Moon" will use the dateline "Tukwila" or "City of Tukwila." Seattle will not be used. The press releases will also feature a section about the City of Tukwila, prepared by City staff and approved by the Museum. • Cross promotion of other tourism related activities within the City, including but not limited to Seattle Seawolves games, Westfield Southcenter, Seattle Chocolates, and Family Fun Center. CA Revised December 2016 Page 6 of 8 8 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 $100,000.00. 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 October 1, 2019 $50,000 Destination Moon, Payment #1 2 January 15, 2020 $50,000 Destination Moon, Payment #2 Final payment will not be made until Contractor provides all final reporting requirements. 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 December 2016 Page 7 of 8 9 In additional the items outlined above, the following information shall be included with the January 15, 2020 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 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? 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 December 2016 Page 8 of 8 10