HomeMy WebLinkAboutReg 2019-06-17 Item 4F - Agreement - 2019-2020 Tourism with Seattle Southside Regional Tourism Authority for $405,000COUNCIL AGHNDA SYNOPSIS
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ITEM INFORMATION
ITEM No.
4.F.
STAFF SpoNsoR: B. MILES
ORIGINAL AGENDA DATE: 6/17/19
AGENDA IThNI TM T: 2019/2020 Service Agreement with Seattle Southside Regional Tourism Authority.
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SPONSoR'S On February 14, the Tukwila City Council approved a lodging tax application for SSRTA in
SUMMARY the amount of $405,000, with the funds being used to support SSRTA's basic operations.
The funding for SSRTA is divided equally between 2019 and 2020. All third -party receipts
of lodging tax funds are required to enter into a contract for services with City. Like all
contracts, lodging tax contracts expending over $40,000 are required to be reviewed by
the City Council.
Rl'A'1"711) BY E C.O.W. Mtg.
El Trans &Infrastructure
DATE: 6/11/19
CDN Comm
ill Finance Comm. Public Safety Comm.
E Parks Comm. E Planning Comm.
COMMITTEE CHAIR: QUINN
Arts Comm.
RECOMMENDATIONS:
SPoNsoR/ADmIN,
Commrlim
Mayor's Office, Economic Development
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$405,000 $405,000 $0
Fund Source: 101 FUND (LODGING TAX)
Comments: Per State Law lodging tax funds can only be used for tourism promotion activities.
MTG. DATE
RECORD OF COUNCIL ACTION
6/17/19
MTG. DATE
ATTACHMENTS
6/17/19
Staff Informational Memoradum, dated June 3, 2019
DRAFT 2019/2020 Agreement with SSRTA.
Minutes from the CDN Committee meeting of 6/11
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Development Neighborhood
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: June 3, 2019
SUBJECT: 2019/2020 Service Agreement with Seattle Southside Regional Tourism
Authority
ISSUE
Authorize the Mayor to execute a service agreement with Seattle Southside Regional Tourism
Authority (SSRTA) for 2019 and 2020 in an amount not to exceed $405,000.
BACKGROUND
On February 14, the Tukwila City Council approved a lodging tax application for SSRTA in the
amount of $405,000, with the funds being used to support SSRTA's basic operations. The
funding for SSRTA is divided equally between 2019 and 2020. SSRTA is the successor entity to
Seattle Southside Visitor Service Center, which until 2015 had been operated by the City of
Tukwila (the "City"). SSRTA is the City's primary destination marketing organization and is the
City's primary partner in marketing the City to potential tourist outside a 50-mile radius.
In 2014 the Cities of Tukwila, SeaTac, and Des Moines formed a tourism promotion area (TPA)
to provide additional funds for tourism promotion in the three cities. Under the TPA Agreement,
the three cities outlined recommended lodging tax funds to be provided to SSRTA by each of
the three cities. The funds outlined in the attached draft agreement are consistent with the
recommended about of lodging tax funds to be provided by the City to SSRTA.
All third -party receipts of lodging tax funds are required to enter into a contract for services with
City. Like all contracts, lodging tax contracts expending over $40,000 are required to be
reviewed by the City Council.
FINANCIAL IMPACT
$405,000 ($202,500 for 2019 and $202,500 for 2020) from the City's lodging tax fund (101
fund). Under Washington State law, lodging tax funds can only be used for tourism promotion
activities. No general funds will be used.
RECOMMENDATION
Authorize the Mayor to enter into the agreement. Forward to June 17 consent agenda.
ATTACHMENTS
• Draft 2019/2020 Agreement with SSRTA
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Contract Number:
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 Seattle Southside Regional Tourism Authority, hereinafter referred to as the "Contractor," whose
principal office is located at 3100 S. 176th Street, Ste 200, SeaTac, Washington, 98188.
WHEREAS, the City imposes a special excise tax under Chapter 82.08 of the Revised Code of
Washington ("ROW"), 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, the Contractor was formed pursuant to RCW 35.21.730 through 35.21.755 and the
Interlocal Agreement for the Joint Establishment of a Tourism Promotion Area dated May 6, 2014 among
the City, the City of SeaTac and the City of Des Moines (the "Interlocal Agreement") for the purpose of
providing tourism promotion services to and to serve as a destination marketing organization for the City,
the City of SeaTac, the City of Des Moines and other contracting parties; and
WHEREAS, the 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 November 20, 2018, the City's Lodging Tax Advisory Committee considered and
approved Contractor's request to obtain lodging tax revenue for tourism promotion; and
WHEREAS, on February 4, 2019, 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;
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.
CA Revised 2012
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2. Authorized Destination Marketing Organization. Contractor shall be an authorized
destination marketing organization for the City. Any materials, including digital, which state that
Contractor is "the official" or "an official" destination marketing organization for the City must be
preapproved by the City. Notwithstanding the foregoing, the parties agree that any printed
materials existing as of the date of this Agreement ("existing materials") stating that the
Contractor is the "the official" destination marketing organization for the City are permitted to be
used until the stock is used up. Any reprint of existing materials and the printing of new materials
containing such statement require the City's express permission. Contractor shall use reasonable
efforts to identify any digital materials existing as of the date of this Agreement ("existing digital
materials") stating that the Contractor is "the official" destination marketing organization for the
City. Any exiting digital materials identified by the Contractor must either be removed within 30-
days of execution of this Agreement or permission obtained from the City for the continued use.
If after the initial 30-days after execution of this Agreement Contractor discovers additional digital
media containing such statement or if the City discovers such additional digital media and notifies
Contractor of its existence, Contractor shall have 30-days from such discovery or notice, as
applicable, to either remove the digital media or obtain permission from the City.
Contractor shall not represent itself, either explicitly or implicitly, as representing the City in any
lobbying efforts with other governmental organizations, without the express written authorization
of the City. Notwithstanding the foregoing, nothing in this section precludes Contractor from
lobbying efforts on behalf of itself (and not the City) with other governmental organizations.
Contractor agrees not to lobby for any changes to Washington State Law regarding lodging tax
funds that is contrary to the interest of the City. Notwithstanding the foregoing, nothing in this
Agreement shall prohibit or restrict members of the Board of Directors of Contractor from
lobbying, in their personal or professional capacities separate from their role with respect to
Contractor, or from employees of Contractor from lobbying, in their personal capacities, for any
changes to Washington State Law for any reason. Contractor agrees that its Board of Director's
members and its employees will not refer to themselves as being affiliated with Seattle Southside
Regional Tourism Authority when lobbying in their personal capacities or in their separate
professional capacities.
3. Compensation and Method of Payment. The City shall pay Contractor for services provided
under this Agreement 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 under this Agreement shall not
exceed $405,000. 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. Contractor
shall submit certain documentation as set forth in Exhibit B with each invoice for payment.
Failure to provide such documentation may result in the payment being delayed. The City may
ask for additional background documentation directly related to reporting requirements in Exhibit
B or otherwise related to the services provided under this Agreement for any items provided to
the City as part of the invoices or year-end reports. Contractor shall provide any requested
information to the City as soon as reasonably possible.
4. Duration of Agreement. This Agreement shall be in full force and effect for a period
commencing April 15, 2019 and ending March 30, 2021, 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
78 CA Revised 1-2013
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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. Each party hereto shall defend, indemnify and hold the other party, 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 party at issue. 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 and the
City's liability hereunder shall be only to the extent of Contractor's or the City's, as applicable,
negligence. It is further specifically and expressly understood that the indemnification provided
herein constitutes Contractor's and the City'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 or the Contractor
by reason of entering into this contract except as expressly provided herein.
7. Insurance. Contractor shall maintain liability coverage with Washington Cities Insurance
Authority ("WCIA") for the full term of this Agreement. Contractor shall provide a letter to the City
from WCIA demonstrating coverage prior to requesting first payment. The letter shall be dated
within 30 days of the date of the first invoice. The letter shall be submitted directly from WCIA to
the City.
A. Notice of Cancellation. The Contractor shall provide the City with written notice of any policy
cancellation by WCIA, within two businesses days of its receipt of such notice. The City shall
have the right to contact WCIA at any time to verify coverage.
B. Failure to Maintain Coverage from WCIA. Failure of the part of the Contractor to maintain
coverage as required shall constitute a material breach of contract, upon which the city may, after
giving five business day's written notice to the Contractor to correct the breach, immediately
terminate the contract or, at its discretion, procure or renew such insurance pay any and all
premiums in connection therewith, with any sums so expended to be repaid to the City on
demand, or at its sole discretion of the City, offset against funds due the Contractor from the City.
C. Workers' Compensation. Contractor shall maintain coverage as required by the Industrial
Insurance laws of the State of Washington.
D. 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.
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 Chapter
40.14 RCW and by the City.
CA Revised 1-2013 Page 3 of 9
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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.
A. This Agreement may at any time be terminated by either party by giving to the other party thirty
(30) days written notice of the 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 the collection or use of lodging taxes, the City may, at is sole
discretion, terminate this Agreement by giving to the Contractor thirty (30) days' written notice of
the City's intention to terminate the same.
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 or subcontract any portion of the
services contemplated by this Agreement without the prior 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.
13. Entire Agreement; Modification. This Agreement, together with attachments or addenda,
represents the entire and integrated Agreement between the City and the Contractor regarding the
provision of tourism promotion services from the Contractor to the City and with the exception of the
terms of the TPA Interlocal Agreement, this Agreement 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
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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 SEATTLE SOUTHSIDE REGIONAL TOURISM
AUTHORITY, as Contractor
Allan Ekberg, Mayor
ATTEST/AUTHENTICATED:
City Clerk, Christy O'Flaherty
APPROVED AS TO FORM:
Office of the City Attorney
By:
Printed Name and Title:
Address:
CA Revised 1-2013
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Exhibit "A"
Seattle Southside Regional Tourism Authority
2019/2020 Scope of Services
. Maintain a destination marketing website and social media accounts 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 including those business that do not pay lodging
tax or tourism promotion area ("TPA") assessments; business listings are to be provided by the
City.
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 licensees to be provided
by City staff), including those business that do not pay lodging tax or TPA assessments.
3. Provide meeting planning assistance to planners looking host events in the Tukwila area. List
all meeting resources in guide 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 at least every other year that includes information and
business listings for area full service restaurants, including 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 www.SeattleSouthside.com in the "About Us" section
under "Our Cities" (or comparable section on a successor website operated by the Contractor).
8. Use 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 business 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. Produce an annual report per the Contractor's organizational documents and present such
report to the City Lodging Tax Advisory Committee, City Council, or other meetings, if
requested by the City.
82 CA Revised 1-2013
Page 6 of 9
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 rendered under this
Agreement. The total compensation to the Contractor under this Agreement shall not exceed $472,500.
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.
2019/20
Invoice
#
Date (no later than):
Amount:
1
June 25, 2019
$50,625
2
September 1, 2019
$50,625
3
December 1, 2019
$50,625
4
February 1, 2020
$50,625
5
June 1, 2020
$50,625
6
September 1, 2020
$50,625
7
December 1, 2020
$50,625
8.
February 1, 2021
$50,625
Should the Contractor choose to reduce any of the activities identified in the scope of service identified in
Exhibit "A", 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 in a report:
1. Web analytics
a. Number of user sessions.
b. Number of unique users
c. Number of repeat visits.
d. Number of clicks to the Seattle Southside website.
e. Number of specific webpage view counts.
f. Traffic source, including a breakdown of geographic location of source to the page.
g. Bounce rate.
h. Average session duration.
2. Media impressions (When reporting, include whole numbers to reference increases or decreases
over time, do not just report percentages).
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3. Social media engagement (When reporting, include whole numbers to reference increases or
decreases over time, do not just report percentages).
4. Group/Meeting Stats, for the Seattle Southside region, including:
a. Leads, booked, assists, and services request leads.
b. List of tradeshows & sales conventions attended.
c. Number of prospects outreached to (calls, emails, meet -ups, etc.)
5. Familiarization trips and site visits for the Seattle Southside region.
6. Estimated number of overnight guests and room nights generated in the City of Tukwila (to be
provided as part of the February 1 1, 2020 and February 1, 2021 invoices).
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Page 8 of 9
In addition to the items outlined above, the following information shall be included with the February 1,
2020 invoice (#4) and February 1 1, 2021 invoice (#8). 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
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Community Development & Neighborhoods Minutes June 11, 2019
B. Lodging Tax Applications
1. Staff is seeking Council approval of a lodging tax funding request from the City of
Tukwila for $40,000 for the Southcenter Art Development Phase I project. This will
initially focus on Baker Boulevard between Westfield Southcenter and the rive and will
include project development for permanent art options and street/sidewalk painting to
be implemented this year. Enhanced art in this area will help to improve the space for
future events and activities.
2. Staff is seeking Council approval of a lodging tax funding request from the City of
Tukwila for $125,000 to complete a master plan for Tukwila Pond. Tukwila Pond is
currently underutilized but if developed correctly could be a valuable amenity for the
district. Completion of a Master Plan will allow the City to make progress toward next
steps which could include construction, property acquisition, and other improvements.
3. Staff is seeking Council approval of a lodging tax funding request from the City of
Tukwila for $10,000 for sponsorship of the 2019 Rave Green Run hosted by the Rave
Foundation, which is the nonprofit associated with the Seattle Sounders FC. The Run
is estimated to bring in between 1,000-1,500 people to the city. UNANIMOUS
APPROVAL. FORWARD TO JUNE 17, 2019 REGULAR CONSENT AGENDA.
Agreement: Seattle Southside Regional Tourism Authority for 2019-2020
Staff is seeking Council approval of an agreement with Seattle Southside Regional Tourism
Authority (SSRTA) in an amount not to exceed $405,000 for 2019 and 2020. In February, the
City Council approved the lodging tax application for SSRTA, which is the City's primary
destination marketing organization and our primary partner in marketing the City to
potential tourists outside a 50-mile radius. UNANIMOUS APPROVAL. FORWARD TO JUNE
17, 2019 REGULAR CONSENT AGENDA.
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