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HomeMy WebLinkAboutPCD 2021-04-05 COMPLETE AGENDA PACKETCity of Tukwila Planning and Community Development Committee O Kathy Hougardy, Chair O Verna Seal O Thomas McLeod AGENDA MONDAY, APRIL 5, 2021— 5:30 PM HAZELNUT CONFERENCE Room (At cast cntrancc of City Hall) Distribution: K. Hougardy V. Seal T. McLeod K. Kruller Mayor Ekberg D. Cline R. Bianchi C. O'Flaherty A. Youn L. Humphrey THIS MEETING WILL NOT BE CONDUCTED AT CITY FACILITIES BASED ON THE GOVERNOR'S PROCLAMATION 20-28. THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 697075721# Click here to: Join Microsoft Teams Meeting For Technical Support during the meeting call: 1-206-431-2179. Item Recommended Action Page 1. BUSINESS AGENDA a. Applications for lodging tax funds: a. Forward to 4/19 Consent Pg.1 (1) Experience Tukwila for $100,000. Agenda. (2) Juneteenth for $5,000. Brandon Miles, Business Relations Manager b. An agreement with True Blue Strategies for b. Forward to 4/19 Consent Pg.25 Experience Tukwila, not to exceed $125,000. Agenda. Brandon Miles, Business Relations Manager c. Follow-up on King County's Health through Housing c. Committee discussion Pg.35 Program presentation. and input. Continued from 3/15/21 Planning and Community Development Committee meeting. Rachel Bianchi, Deputy City Administrator 2. MISCELLANEOUS Next Scheduled Meeting: April 19, 2021 SThe City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance. W i City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Community Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: March 25, 2021 SUBJECT: Lodging Tax Funding Requests ISSUE Review of a lodging tax funding request from the City of Tukwila, Office of Economic Development for Experience Tukwila ($100,000) and for a 2021 Juneteenth event ($5,000). BACKGROUND The City collects a 1% lodging tax on certain qualifying overnight stays in paid accommodations (hotels/motels/Airbnb) in the City. State law limits the use of these funds to tourism promotion'. There is currently just over $1 million in lodging tax funds available for use. The City's Lodging Tax Advisory Committee (LTAC) reviews all requests for use of lodging tax funds. LTAC then forwards a list of recommended applications to the City Council for its review and consideration. If LTAC does not recommend an application be funded, that application is not forwarded to the City Council. The City Council may approve or deny any of the applications recommended by the LTAC. The City Council may also approve an application and increase or decrease the dollar amount awarded2. The City accepts applications on a rolling basis, with the LTAC reviewing requests monthly. Pending Applications Following its March 12, 2021 meeting, LTAC recommended approval of two lodging tax requests from the City of Tukwila Office of Economic Development for Experience Tukwila and to assist in a 2021 Juneteenth event. 1 RCW 67.28.080 (6) defines "tourism promotion" as "...activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists." 2 On August 17, 2016, the Washington State Attorney General's Office issued an informal opinion regarding whether a municipality could change the dollar amounts recommended by the local lodging tax advisory committee. Specifically, the informal opinion states: "When awarding lodging tax revenues pursuant to RCW 67.28.1816(2)(b)(ii), a municipality may award amounts different from the local lodging tax advisory committee's recommended amounts, but only after satisfying the procedural requirements of RCW 67.28.1817(2), according to which the municipality must submit its proposed change to the advisory committee for review and comment at least forty-five days before final action on the proposal." 1 INFORMATIONAL MEMO Page 2 1. Experience Tukwila, $100,000 In 2020 the City of Tukwila launched the Experience Tukwila digital initiative. The initiative includes a dedicated website ExperienceTukwlia.com and social media. The goal is to promote the City of Tukwila to consumers primarily within 50 miles of the City, including hotel guests who are already in the area. The City is seeking funding to continue contractor services to run the day-to-day operations of Experience Tukwila and to expand content development with an additional photoshoot and video development. The need for a dedicated website and social media channels to promote the City was first identified as part of our brand development process in 2017. The social media accounts were valuable during the pandemic as it allowed the City to promote restaurants and retailers that were operating. In addition, the website and social media channels allows to do partnerships and engagement the City has not been able to do the in past. For example, the City is sponsoring the 2021 Seattle Restaurant Week and the City is provided a link directly on the event's website to ExperienceTukwila.com. The City is also partnering with the Seattle Seawolves on a campaign promoting the team as part of the upcoming season. The Seawolves tag the Experience Tukwila social media accounts as part of the campaign. For 2021 the goal of Experience Tukwila is to increase website visits and expand social media engagement by telling authentic stories, through photos, of the Tukwila community. LTAC Recommendation on Application: Do Fund Staff Recommendation on Application: Do Fund 2. Juneteenth Planning ($5,000) The City of Tukwila is requesting lodging tax funds to help support the creation of a virtual event to celebrate Juneteenth. Juneteenth is the oldest nationally celebrated commemoration of the ending of slavery in the United States. A coalition of Tukwila community members, non -profits, and the City have started to plan a virtual event for 2021. The event is virtual this year due to COVID-19. In 2022 the goal is transition this to an in-person event in the City. Unlike surrounding communities, Tukwila does not have a signature event. As one of the most diverse cities in the country a future Juneteenth event could serve as this signature event. Tukwila's diversity also serves as a strength for this event and allows for the creation of a truly authentic Tukwila event. Lodging tax funds will be used to help with operational and marketing costs. Doing the virtual event for 2021 allows us to gain content and a following prior to the launch of an in-person event in 2022. LTAC Recommendation on Application: Do Fund Staff Recommendation on Application: Do Fund 2 INFORMATIONAL MEMO Page 3 FINANCIAL IMPACT The total request for lodging tax funds is $105,000.00. No general fund dollars will be used. The six-year Tourism Financial Plan approved by the City Council in December of 2020 allocated a total of $150,000 in lodging tax funding for sponsorships in 2020. 2020 Tourism Six -Year Financial Plan Allocation Experience Tukwila Budget: $75,000.00 Experience Tukwila Request (pending): ($100,000.00) Remaining Experience Tukwila Funds: $(25,000) 2020 Tourism Six -Year Financial Plan Allocation Sponsorships: $150,000.00 Global to Local Request (Already Approved): ($5,000.00) City of Tukwila, Juneteenth Event (pending) ($5,000.00) Remaining Sponsorship Funds: $140,000.00 RECOMMENDATION Staff recommends that the Committee approve the funding request and forward the request to the April 19, 2021 consent agenda. ATTACHMENTS 1. Updated, Six Year Financial Model 2. City of Tukwila, Staff Report to Lodging Tax Committee, Experience Tukwila 3. City of Tukwila, Experience Tukwila, Lodging Tax Application 4. City of Tukwila, Staff Report to Lodging Tax Committee, Juneteenth Event 5. City of Tukwila, Juneteenth Event, Lodging Tax Application 3 4 Tourism Funding, Six Year Financial Plan DRAFT - Updated March 3, 2021 Tourism Revenue Lodging Tax $ Promotion Area (TPA) Fee Generated in Tukwila $ Cares Act Reimbursement: Total Revenues: $ Tourism Expenses Marketing, Sales, and Sponsorships TPA Funded DMO Services (SSRTA) Lodging Tax Funded DMO Services (SSRTA) Sponsorships Small Events rience Tukwila, Branding and Marketing, Visitors World Cup Planning and Activation COVID-19 Response SavingLocalKC.com SSRTA Emergency Funding Showare Sponsorship Seattle Southside Chamber of Commerce Destination Development Wayfinding Plan Development and Installation Southcenter Art Investments Tukwila Pond General Administration Salary and Benefits City Overhead Charge Administrative Adopted Budget 2020 800,000 1,131, 000 Estimate 2020 COVID Estimate $ 400,000 $ 563,632 $ 30,878 2020 Preliminary Actuals $ 292,358 $ 608,190 $ 30,878 2021 2022 400,000 $ 574,672 $ 450,000 $ 650,000 $ 2023 2024 2025 600,000 $ 700,000 $ 700,000 800,000 800,000 $ 900,000 $ 1,931,000 $ 994,510 $ 931,426 $ 974,672 $ 1,100,000 $ 1,300,000 1,500,000 1,700,000 $ 1,131,000 $ 202,500 $ 150,000 $ 15,000 $ 88,375 $ 154,170 50,000 39,400 125,000 74,997 19,416 30,000 563,632 I $ 202,500 $ 10,000 $ 5,000 $ 88,375 $ 154,170 $ 20,000 608,190 202,500 88,375 123,539 20,000 39,400 $ 25,000 $ 39,400 9,572 574,672 I $ - $ 150,000 $ 15,000 $ $ 100,000 30,631 75,000 650,000 I $ 150,000 15,000 75,000 50,000 - $ 15,000 30,000 100,000 $ 75,000 $ 115,428 $ 150,000 75,000 200,000 72,281 $ 19,416 $ 20,000 $ 76,553 19,416 18,540 78,802 $ 24,008 $ 23,350 $ 79,978 25,231 28,750 700,000 I $ - $ 150,000 $ 15,000 $ 75,000 $ 50,000 $ 100,000 $ 75,000 $ 200,000 $ 82,377 $ 25,988 $ 30,000 $ 800,000 I $ 150,000 15,000 75,000 50,000 100,000 75,000 200,000 84,849 26,768 30,000 900,000 $ 150,000 $ 15,000 $ 75,000 $ 50,000 $ 100,000 75,000 200,000 87,394 27,571 30,000 Totals 3,642,358 4,796,494 8,500,608 Total Expenditures: $ 2,079,858 Beginning Fund Balance: Ending Fund Balance: Notes This document does not bind the City to provide funds nor does it authorize any funding. All use of lodging tax funds must be approved by LTAC and the City Council through an application process. The shaded cells indicate approved applications. The lodging tax revenues are estimated as of May 7, 2020 and reflect staffs prediction based on COVID-19. TPA revenue estimate assumes 29% of the fees collected within the three city Tourism Promotion Area were collected by Tukwila hotels. TPA revenue for 2020 and 2021 is based on the SSRTA's revised, adopted budget. After 2021 revenues are staff estimates. Salary/Benefits for Business Relations Manager is split 50/50 between general fund and lodging tax and is estimated to increase 3% annually after 2022. The City overhead charge is charged to all special funds. It recoups the cost to the general fund to support the lodging tax fund. It includes facilities, technology, legal, accounting, and record keeping services and is estimated to increase 3% annually after 2022. Because 100% (less 1% Department of Revenue Fee) of all TPA revenue is estimated to be passed through to the SSRTA, the Ending Fund Balance is only lodging tax funds. CARES Act Funds provided as reimbursement for staff time associated with emergency response. For 2020, preliminary actuals are provided, but are not yet confirmed. 1,219,774 1 $ 1,206,085 1,391,891 $ 1,513,959 $ 1,503,365 $ 1,606,616 1,709,965 4,796,494 405,000 610,000 65,000 501,750 150,000 308,340 75,000 15,000 70,000 450,000 378,800 750,000 474,840 140,826 150,640 9,341,690 1,931,000 $ 651,142 $ 1,931,000 $ 1,705,736 $ 1,931,000 $ 1,656,341 $ 1,656,341 $ 1,239,123 $ 1,239,123 $ 825,164 $ 825,164 $ 621,799 $ 621,799 515,182 515,182 505,218 01 6 Tukwila Staff Memorandum Lodging Tax Advisory Committee Funding Request Name of Applicant: City of Tukwila Address: 6200 Southcenter Blvd. Tukwila, WA 98188 Total Funds Requested: $100,000 About the Applicant: The City of Tukwila is a non -charter City organized under the laws of the State of Washington. Founded in 1908, Tukwila is one of the oldest cities in King County. Since its founding, Tukwila has always been a community at the "crossroads." Tukwila lies at one of the busiest freeway interchanges in Washington State. The City has a small bedtime population of just under 20,000. During the day the City's population swells to over 150,000 people, with people coming to the City to work, shop, dine, stay in hotels, and to visit once in a life time experiences, such as the Museum of Flight or iFly. The City is one of the most diverse cities in the country. Over 70 languages are spoken in the Tukwila School District. Many well-known businesses are based in Tukwila, such as BECU, Westfield Southcenter, Seattle Seawolves, Seattle Sounders FC, Top Pot Donuts, Pop Gourmet, and the Sabey Corporation. The City has over 2,000 hotel rooms and over 100 restaurants. Funds Previously Awarded: In 2020, Experience Tukwila received $88,375 in lodging tax funds to launch and operate Experience Tukwila. Funding Request Narrative: In 2020 the City of Tukwila launched the Experience Tukwila digital initiative. The initiative includes a dedicated website ExperienceTukwlia.com and social media. The goal is to promote the City of Tukwila to consumers primarily within 50 miles of the City, including hotel guests who are already in City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 7 flii'tkyvik the area. The City is seeking funding to continue contractor services to run the day-to-day operations of Experience Tukwila and to expand content development. Staff Comments: Experience Tukwila is starting to gain steam and initiative in promoting the City. As of February 2021 Experience Tukwila had the following key metrics: Total Followers: 1,763 Posts: 1,169 Impressions: 744,957 Profile Views (not including Facebook): 7,739 Engagements: 6,720 Keep in mind that the social media accounts launched in the spring of 2020 and the website launched in January of 2021. Experience Tukwila campaigns such as the Great Tukwila Carryout to help restaurants during COVID-19, Saving Local, and the name the sushi roll at Trapper's Sushi. Experience Tukwila allows the City to promote the Tukwila community within the Greater Seattle area and to help the City control its on brand. It has also served as resource to businesses looking to promote grand opening and upcoming events. Consistency with Six Year Financial Model: Experience Tukwila Request: $100,000 Funds Provided in Six Year Financial Plan For Ex. Tukwila: $75,000 Remaining Funds: $(25,000) In the "Tourism Six Year Financial Plan" we identified $75,000 for 2021 costs for Experience Tukwila. This cost was primarily related to ongoing upkeep, website management, and social media posts. The added funds for 2021 include doing another photo shoot and creating some small videos. Since Experience Tukwila launched, we are working to build out our digital content for use across the website and social media. A new photo shoot is needed because in 2020 we were operating under COVID-19 restrictions and were not able to fully capture activities and events that capture Tukwila. City of Tukwila Staff Recommendation to LTAC: Approval Notes: None. 8 City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Application to the City of Tukwila for Use of 2021 Lodging Tax Funds Event or Activity Name (if applicable): Experience Tukwila Amount of Lodging Tax Requested: $100,000 Applicant Organization: City of Tukwila Federal Tax ID Number: 91-6001519 Mailing Address: Office of the Mayor 6200 Southcenter Blvd Tukwila, WA 98188 Primary Contact Name: Brandon Miles Primary Contact Phone: 206-431-3684 Primary Contact Email Address: Brandon.Miles@Tukwilawa.gov Check all the service categories that apply to this application: Tourism promotion or marketing. Operation of a special event or festival designed to attract tourists. Operation of a tourism -related facility owned or operated by a non-profit organization. Operation and/or capital costs of a tourism -related facility owned by a municipality or a public facilities district. Check which one of the following applies to your agency: Non -Profit (Note: Attach a copy of your current non-profit corporate registration from the Washington Secretary of State Office) Municipality For Profit Corporation I am an authorized agent of the organization/agency applying for funding. I understand that: • I am proposing a tourism -related service for 2021. If awarded, my organization intends to enter into a services contract with the City; provide liability insurance for the duration of the contract naming the City as additional insured and in an amount determined by the City; and file for a permit for use of City property, if applicable. • My agency will be required to submit a report documenting economic impact results in a format determined by the City. Signature: /s/ Date: March 10, 2021 9 1) Describe your tourism -related activity or event. In 2020 the City of Tukwila launched the Experience Tukwila digital initiative. The initiative includes a dedicated website ExperienceTukwlia.com and social media. The goal is to promote the City of Tukwila to consumers primarily within 50 miles of the City, including hotel guests who are already in the area. The City is seeking funding to continue contractor services to run the day-to-day operations of Experience Tukwila and to expand content development. 1) If an event, list the event name, date(s), and projected overall attendance. N/A 2) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? This is a pure branding and marketing initiative. The geographic focus are consumers within 50 miles of the City. This could include households, employees, and overnight guests who are already in the area. 3) Describe why visitors will travel to Tukwila to attend your event/activity/facility. Tukwila's central location, its transportation connections, and mass transit makes Tukwila a great destination to get away for a day or an overnight trip. The City is home to nearly 200 restaurants, the largest mall in the Pacific NW, Starfire Sports, and the Museum of Flight. The City has success is bringing people to the City. The goal is to get people to come more often, stay longer, and realize they are in Tukwila (versus other cities). 4) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Primary within 50 miles of the City; however, hotel guests throughout the region are part of the target audience. 5) Describe the prior success of your event/activity/facility in attracting tourists. The City launched Experience Tukwila last year as part of the pandemic recovery, as a way to support businesses. The following outlines the social media engagement as of February 24, 2021: Total Followers: 1,763 Posts: 1,169 Impressions: 744,957 Profile Views (not including Facebook): 7,739 Engagements: 6,720 The ExperienceTukwila.com website went live at the end of February. Page 2 of 7 10 In addition, to the total stats outlined above, the City has also had success in several minor campaigns, including the SavingLocal.com, the Great Tukwila Carryout, and the Trapper's Tukwila sushi roll social media push. 6) If this your first time holding the event/activity/facility provide background on why you think it will be successful. N/A 7) Describe the media strategy you employ to promote your event/activity/facility to attract overnight and/or day tourists? Please list any digital or print media (newsletters, e -blasts, social media, etc.) your agency uses or intends to use to promote your event/activity/facility. For 2020 the goal was to get Experience Tukwila up and function. For 2021 the goal is to expand the total number of followers, likes, engagements, and impressions for Experience Tukwila. For 2021 a limited amount of paid social media will be utilized; digital ads; paid google search; search and engine optimization. In addition to the items outlined above, we want to build out our video and photography imagery. A photo shoot was completed in 2020, but this was limited due to COVID-19. A video originally budgeted for 2020 was also not completed. For 2021 we want to complete a new photoshoot and do some short videos to promote the City. Finally, we want to start engaging Tukwila youth in creating content we can use for Experience Tukwila. This will help to create authentic content to promote the City. 8) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. Experience Tukwila promotes the City's various lodging, restaurants, retailers, and entertainment establishments. ExperienceTukwila.com features pages for each specific category mentioned above. In addition, social media posts rotate through regularly promoting Tukwila businesses. 9) Is the City able to use your digital and print media for collaborative marketing? Yes. 10) Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? Experience Tukwila is all about Tukwila. The brand is focused on the Tukwila name. Tukwila is tagged as a physical location in social media posts. 11) Measurements and Metrics (Note: You will be required to report these metrics as part of the close out of the agreement between your organization and the City.) Page 3 of 7 11 As a direct result of your proposed tourism -related service, provide an estimate of: a. Overall attendance at your proposed event/activity/facility. 1,500,000 social media impressions. b. Number of people who will travel fewer than 50 miles for your event/activity. 90% However, hotel guests already in the Greater Seattle area are also a focus on Experience Tukwila. c. Number of people who will travel more than 50 miles for your event/activity. 10% (see note above) d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. 5% e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 5% f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 1,000 g. Number of paid lodging room nights resulting from your proposed event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) 3,000 Page 4 of 7 12 12) What methodologies did you use to calculate the estimates and what methodologies will you use to track outcomes, such as total participants, estimated visitor spending, etc? The impressions outlined above are a forecasted amount for the reminder of 2021. The forecast as built on the limited historical data we currently have for 2020 for Experience Tukwila. It is important to remember that Experience Tukwila is a pure marketing and branding effort. Tracking actual hotel stays and visitor spending through such efforts can be difficult and at best can only show a correlation and not causation. For the overall success of Experience Tukwila, we intend on tracking the following metrics. Metrics 2021 End of Year Goals Website visits: 7,500 Social media followers: 2,100 Social media impressions: 1,500,000 Social media engagement: 9,000 Email newsletter subscribers 450 Experience Tukwila is building it's digital followers and impressions primarily through organic engagement, with a limited amount of paid social media. 13) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? No. 14) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? No. 15) What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? Page 5 of 7 13 Ongoing Operations Estimated Costs Project Management and Reporting $ 9,000 Social Media Content and Management $ 27,000 Website Content Updates $ 18,000 Email Marketing Content and Management $ 6,750 Subtotal: $ 60,750 One Time Costs Estimated Costs Two Day Photo Shoot $ 15,000 Short Videos/Animations for Social Media $ 18,000 Subtotal: $ 33,000 Contingency and Social Media Ad Buys: $ 6,250 Grand Total: $ 100,000 Funds may be moved around categories but will not exceed the grand total. The City contracts with a firm to manage the day-to-day postings and updates for ExperienceTukwila.com. Posts are made on social media almost daily and the website is updated weekly with new content as it becomes available. Contracting with a firm to manage Experience Tukwila is cheaper and provides the City more flexibility than to do it in house, which would require the hiring of additional staff. In the "Tourism Six Year Financial Plan" we identified $75,000 for 2021 costs for Experience Tukwila. This cost was primarily related to ongoing upkeep, website management, and social media posts. The added funds for 2021 include doing another photos shoot and creating some small videos. Since Experience Tukwila launched, we are working to build out our digital content for use across the website and social media. A new photo shoot is needed because in 2020 we were operating under COVID-19 restrictions and were not able to fully capture activities and events that capture Tukwila. 16) What will you cut from your proposal or do differently if full funding for your request is not available or recommended? We would likely reduce the scope of the photo shoot and eliminate the short videos. Applications are considered on a rolling basis. Please contact staff to discuss the process for having the application reviewed by the City's Lodging Tax Advisory Committee. Completed applications should be submitted to: Lodging Tax Advisory Committee Page 6 of 7 14 c/o Brandon Miles City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 Or, Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Brandon.Miles@Tukwilawa.gov. Updated: January 5, 2021 Page 7 of 7 15 16 OTtl(liv ila Staff Memorandum Lodging Tax Advisory Committee Funding Request Name of Applicant: City of Tukwila Address: 6200 Southcenter Blvd. Tukwila, WA 98188 Total Funds Requested: $5,000 About the Applicant: The City of Tukwila is a non -charter City organized under the laws of the State of Washington. Founded in 1908, Tukwila is one of the oldest cities in King County. Since its founding, Tukwila has always been a community at the "crossroads." Tukwila lies at one of the busiest freeway interchanges in Washington State. The City has a small bedtime population of just under 20,000. During the day the City's population swells to over 150,000 people, with people coming to the City to work, shop, dine, stay in hotels, and to visit once in a life time experiences, such as the Museum of Flight or iFly. The City is one of the most diverse cities in the country. Over 70 languages are spoken in the Tukwila School District. Many well-known businesses are based in Tukwila, such as BECU, Westfield Southcenter, Seattle Seawolves, Seattle Sounders FC, Top Pot Donuts, Pop Gourmet, and the Sabey Corporation. The City has over 2,000 hotel rooms and over 100 restaurants Funds Previously Awarded: None for this event. The City has previously been provided funds for a variety of activities. Funding Request Narrative: The City of Tukwila is requesting lodging tax funds to help support the creation of a virtual event to celebrate Juneteenth. Juneteenth is the oldest nationally celebrated commemoration of the ending of slavery in the United States. A coalition of Tukwila community members, non -profits, and the City have started to plan a virtual event for 2021. The event is virtual this year due to COVID-19. In 2022 the goal is transition this to an in-person event in the City. City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 17 flii'tkyvik Unlike surrounding communities, Tukwila does not have a signature event. As one of the most diverse cities in the country a future Juneteenth event could serve as this signature event. Tukwila's diversity also serves as a strength for this event and allows for the creation of a truly authentic Tukwila event. Doing the virtual event for 2021 allows us to gain content and a following prior to the launch of an in- person event in 2022. Staff Comments: Unlike surrounding communities, Tukwila does not have a signature event. As one of the most diverse cities in the country a future Juneteenth event could serve as this signature event. Tukwila's diversity also serves as a strength for this event and allows for the creation of a truly authentic Tukwila event. Doing the virtual event for 2021 allows us to gain content and a following prior to the launch of an in- person event in 2022. In addition, as part of branding effort in 2017 Bill Baker suggested the City create events that highlight the City's diversity. This event helps achieve that goal. Consistency with Six Year Financial Model: For 2021, the Six Year Financial Plan shows the City spending $150,000 for sponsorship, such as this. There will be sufficient funds remaining in the budget for other 2021 sponsorships. Sponsorship Funds Provided in Six Year Financial Plan: $150,000 Spice Bridge Request (already approved) ($5,000) Juneteenth Request (Pending) ($5,000) Remaining Funds: $140,000 City of Tukwila Staff Recommendation to LTAC: Approval Notes: None. 18 City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Application to the City of Tukwila for Use of 2021 Lodging Tax Funds Event or Activity Name (if applicable): 2021 Juneteenth Celebration Amount of Lodging Tax Requested: $5,000 Applicant Organization: City of Tukwila Federal Tax ID Number: 91-6001519 Mailing Address: Office of the Mayor 6200 Southcenter Blvd Tukwila, WA 98188 Primary Contact Name: Brandon Miles Primary Contact Phone: 206-431-3684 Primary Contact Email Address: Brandon.Miles@Tukwilawa.gov Check all the service categories that apply to this application: Tourism promotion or marketing. Operation of a special event or festival designed to attract tourists. Operation of a tourism -related facility owned or operated by a non-profit organization. Operation and/or capital costs of a tourism -related facility owned by a municipality or a public facilities district. Check which one of the following applies to your agency: Non -Profit (Note: Attach a copy of your current non-profit corporate registration from the Washington Secretary of State Office) Municipality For Profit Corporation I am an authorized agent of the organization/agency applying for funding. I understand that: • I am proposing a tourism -related service for 2021. If awarded, my organization intends to enter into a services contract with the City; provide liability insurance for the duration of the contract naming the City as additional insured and in an amount determined by the City; and file for a permit for use of City property, if applicable. • My agency will be required to submit a report documenting economic impact results in a format determined by the City. Signature: /s/ Date: March 10, 2021 19 1) Describe your tourism -related activity or event. The City of Tukwila is requesting lodging tax funds to help support the creation of a virtual event to celebrate Juneteenth. Juneteenth is the oldest nationally celebrated commemoration of the ending of slavery in the United States. A coalition of Tukwila community members, non- profits, and the City have started to plan a virtual event for 2021. The event is virtual this year due to COVID-19. In 2022 the goal is transition this to an in person event in the City. Unlike surrounding communities, Tukwila does not have a signature event. As one of the most diverse cities in the country a future Juneteenth event could serve as this signature event. Tukwila's diversity also serves as a strength for this event and allows for the creation of a truly authentic Tukwila event. In addition, Bill Baker, who the City hired for brand development, suggested the creation of events that highlighted Tukwila's diversity. Doing the virtual event for 2021 allows us to gain content and a following prior to the launch of an in-person event in 2022. 1) If an event, list the event name, date(s), and projected overall attendance. 1,000 virtual attendees. 2) Is your event/activity/facility focusing on attracting overnight tourists, day tourists, or both? This is a pure branding and marketing initiative. The geographic focus are consumers within 50 miles of the City. This could include households, employees, and overnight guests who are already in the area. 3) Describe why visitors will travel to Tukwila to attend your event/activity/facility. Tukwila's central location, its transportation connections, and mass transit makes Tukwila a great destination to get away for a day or an overnight trip. The City is home to nearly 200 restaurants, the largest mall in the Pacific NW, Starfire Sports, and the Museum of Flight. The City has success is bringing people to the City. The goal is to get people to come more often, stay longer, and realize they are in Tukwila (versus other cities). This specific event will be virtual so viewers will likely be spread out across the country. 4) Describe the geographic target of the visitors you hope to attract (locally, regionally, nationally, and/or internationally). Primary within 50 miles of the City; however, hotel guests throughout the region are part of the target audience. This specific event will be virtual so viewers will likely be spread out across the country. Page 2 of 5 20 5) Describe the prior success of your event/activity/facility in attracting tourists. This is a new event. 6) If this your first time holding the event/activity/facility provide background on why you think it will be successful. The event organizers, including the City's Parks and Recreation Department, have experience hosting and managing events. 7) Describe the media strategy you employ to promote your event/activity/facility to attract overnight and/or day tourists? Please list any digital or print media (newsletters, e -blasts, social media, etc.) your agency uses or intends to use to promote your event/activity/facility. The organizers will use out of market signage to promote the event and Experience Tukwila resources will also be used to promote the event. This will include social media posts, paid social media posts, e -newsletters blasts, and perhaps some paid digital ads. 8) Describe how you will promote lodging establishments, restaurants, retailers, and entertainment establishments in the City of Tukwila. The event helps to promote the Experience Tukwila website and social media. The event website will likely be hosted on ExperienceTukwila.com and thus help drive visitors to the site. The site promotes the overall Tukwila visitor economy. 9) Is the City able to use your digital and print media for collaborative marketing? Yes. 10) Describe how you will use the name, "Tukwila" in publications, promotions, and for your event? This event will be promoted as being in Tukwila. 11) Measurements and Metrics (Note: You will be required to report these metrics as part of the close out of the agreement between your organization and the City.) As a direct result of your proposed tourism -related service, provide an estimate of: a. Overall attendance at your proposed event/activity/facility. 1,000 online views. b. Number of people who will travel fewer than 50 miles for your event/activity. 100% Page 3 of 5 21 c. Number of people who will travel more than 50 miles for your event/activity. 0 d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. 0 e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. 0 f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. 0 g. Number of paid lodging room nights resulting from your proposed event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) 0 12) What methodologies did you use to calculate the estimates and what methodologies will you use to track outcomes, such as total participants, estimated visitor spending, etc? These are estimates based on past experience with events. Actual views and impressions will be tracked as part of the promotion for the campaign. 13) Are you applying for lodging tax funds from another community? If so, which communities and in what amounts? No. 14) Are you applying funding from Seattle Southside Regional Tourism Authority (SSRTA)? If so, in what amount? No. 15) What is the overall budget for your event/activity/facility? What percent of the budget are you requesting from the City of Tukwila? Page 4 of 5 22 Total costs are estimated to be $5,000. Funds will be used to secure vendors, artists, administrative, and general promotion of the event. It's important to remember that year's event is about setting the stage for 2022. 16) What will you cut from your proposal or do differently if full funding for your request is not available or recommended? We would likely eliminate the social media posts for the event. Applications are considered on a rolling basis. Please contact staff to discuss the process for having the application reviewed by the City's Lodging Tax Advisory Committee. Completed applications should be submitted to: Lodging Tax Advisory Committee c/o Brandon Miles City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 Or, Brandon.Miles@Tukwilawa.gov Questions? LTAC Contact: Brandon J. Miles (206) 431-3684 Brandon.Miles@Tukwilawa.gov. Updated: January 5, 2021 Page 5 of 5 23 24 W i City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Community Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: March 25, 2021 SUBJECT: Agreement with True Blue Strategies for Experience Tukwila ISSUE Authorize the Mayor to sign an agreement with True Blue Strategies for the management and operation for the Experience Tukwila Digital Initiative. BACKGROUND In 2020, the City launched the Experience Tukwila Digital Initiative to aggressively promote the Tukwila community within the Seattle region. Experience Tukwila includes dedicated social media accounts and a website with original content highlighting restaurants, retailers, events, and the overall Tukwila community. The social media was very helpful in promoting Tukwila businesses during the Stay Home, Stay Heathy orders associated with the COVID-19 pandemic. These dedicated social media channels and website have allowed us to do sponsorships and partnership we were unable to do in the past, including being a partner for Seattle Restaurant Week and doing a campaign with the Seattle Seawolves. For 2021 Experience Tukwila will focus on growing its reach and followers on social media, with a focus on working to bring visitors back to the City following the pandemic. New original content will be created to highlight the community and businesses, including post COVID-19 photoshoot and the creation of short videos promoting the City. The overall goal of Experience Tukwila is to bring more visitors to the City, encourage them to stay longer, and to improve the City's brand within the region. DISCUSSION The City has been working with True Blue Strategies (formally Mammoth) for almost a year. True Blue is a woman owned company based out of Seattle and is responsible for the day-to-day management of the Experience Tukwila Initiative. The City selected True Blue in 2020 after interviewing several firms. True Blue was selected due to its small size and overall background in working in both public policy and marketing. FINANCIAL IMPACT The total agreement will not exceed $125,000. A lodging tax application is pending in the amount of $100,000 to fund this agreement. Additional expenditure authorization is being requested in case other funds (grants or additional lodging tax funds) become available during the contract term. RECOMMENDATION Staff recommends the Committee forward the agreement to the April 19, 2021 consent agenda for final action by the City Council. ATTACHMENTS 1. Draft Agreement between the City of Tukwila and True Blue Strategies. 25 26 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: PROFESSIONAL SERVICES AGREEMENT (Includes consultants, architects, engineers, accountants, and other professional services) THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred to as "the City", and True Blue Strategies, hereinafter referred to as "the Consultant" or "Contractor", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the City to perform marketing, advertising, and social media management services in connection with the project titled Experience Tukwila Digital Initiative. 2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A" attached hereto, including the provision of all labor, materials, equipment and supplies. 3. Duration of Agreement; Time for Performance. This Agreement shall be in full force and effect for a period commencing on April 1, 2021 and ending March 31, 2022, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement no later than December 31, 2021 unless an extension of such time is granted in writing by the City (email suffices). 4. Payment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement as follows: A. Payment for the work provided by the Consultant shall be made as provided on Exhibit "A" attached hereto, provided that the total amount of payment to the Consultant shall not exceed $125,000 without express written modification of the Agreement signed by the City. B. The Consultant may submit vouchers to the City once per month during the progress of the work for partial payment for that portion of the project completed to date. Such vouchers will be checked by the City and, upon approval thereof, payment shall be made to the Consultant in the amount approved. C. Final payment of any balance due the Consultant of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. D. Payment as provided in this section shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City and the state of Washington for a period of three (3) years after final payments. Copies shall be made available upon request. 27 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. City retains ownership of all social media accounts and the ExperienceTukwila.com website, including domain name. Upon expiration of this Agreement or demand by the City, Consultant shall transfer hosting of ExperienceTukwila.com to a provider of the City's choice and provide all login credentials for ExperienceTukwila.com and all Experience Tukwila social media accounts. City retains ownership of any photography, videography, and animation created in conjunction with this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services rendered under this Agreement. 7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in 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 the Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant'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. 8. Insurance. The Consultant 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 Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant 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 Amounts and Scope of Insurance. Consultant shall obtain insurance of the types and with the limits described below: 1. Commercial General Liability insurance with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop -gap independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO endorsement form CG 20 26. CA revised May 2020 28 Page 2 2. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 3. Professional Liability with limits no less than $2,000,000 per claim and $2,000,000 policy aggregate limit. Professional Liability insurance shall be appropriate to the Consultant's profession. B. Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher insurance limits than the minimums shown above, the Public Entity shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Contractor, irrespective of whether such limits maintained by the Contractor are greater than those required by this Contract or whether any certificate of insurance furnished to the Public Entity evidences limits of liability lower than those maintained by the Contractor. C. Other Insurance Provision. The Consultant's 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 Consultant's insurance and shall not be contributed or combined with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage. Consultant 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 Consultant shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Notice of Cancellation. The Consultant shall provide the City 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 Consultant 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 Consultant 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 Consultant from the City. 9. Independent Contractor. The Consultant and the City agree that the Consultant 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 the Consultant nor any employee of the Consultant 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 for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warrant, the City shall have the right to annul this contract without liability, or in its discretion CA revised May 2020 Page 3 29 to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 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. The Consultant shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City (e-mail suffices). 13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 14. Termination. A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days written notice to the Consultant. B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the Consultant and the City, if the City so chooses. 15. Applicable Law; Venue; Attorney's Fees. This Agreement shall be subject to, and the Consultant shall at all times comply with, all applicable federal, state and local laws, regulations, and rules, including the provisions of the City of Tukwila Municipal Code and ordinances of the City of Tukwila. 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. Venue for any action arising from or related to this Agreement shall be exclusively in King County Superior Court. 16. 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. 17. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: 18. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. No CA revised May 2020 30 Page 4 amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. DATED this day of , 20 CITY OF TUKWILA CONSULTANT By: Allan Ekberg, Mayor Printed Name: Title: Attest/Authenticated: Approved as to Form: City Clerk, Christy O'Flaherty Office of the City Attorney CA revised May 2020 Page 5 31 Exhibit "A" Scope of Services Contractor shall provide marketing, advertising, and social media management services to the City with the intent of bringing more visitors to the City and improving the City's image. The focus for 2021 shall be to restore consumer confidence following (hopeful) easing of COVID-19 restrictions that limited occupancy of retailers, restaurants, and which significantly impacted overnight travel. Day -to -Day Management of Experience Tukwila Contractor is responsible for the day-to-day management of the City of Tukwila Experience Tukwila social media accounts (Facebook, Instagram, Twitter, and Linkedln) and the ExperienceTukwila.com website. Contractor shall provide the following services outlined in Table 1 below. Special Services In addition to the work outlined in Table 1, Contractor shall provide the following additional special services to the City. 1. On dates mutually agreed by the City and Contractor, organize a two-day photo shoot within the City to capture more crowds, personal portraits, and b -roll footage. Total cost not to exceed $15,000. Work shall not begin until authorized by the City. 2. Produce six short videos or animations promoting the City. Total cost not to exceed $18,000. Work shall not begin until authorized by the City. 3. Provide on-call, on -demand graphic design services to the City. The specific projects shall be bid on request by the City. 4. Paid media recommendations, as needed, with the specific services added by the City upon request, with a cost estimate provided by the Contractor. 5. Earned media and community partners program. The specific work shall be negotiated by the City and the Contractor, with the Contractor providing the City an estimate for the proposed work. 6. Other marketing and advertising services deemed necessary by the City to achieve the goals of promoting the City to visitors. Specific services and costs shall be negotiated as specific projects are proposed by either City or Contractor. CA revised May 2020 32 Page 6 Table 1 Table 1 shows an estimate as to how funds will be allocated. The City may reallocate funds for specific tasks or eliminate tasks. The total funds for the contractor shall not exceed $125,000, unless mutually agreed by the City and Contractor. Nine Month Cost Monthly (April - Task Notes Rate December Project Management and Reporting Project Management, monthly analytics reporting on web and social analytics, site hosting and administration. $1,000 Social Media Content and Management Creation and posting of original social media content for existing Facebook, Instagram, Twitter, and Linkedln accounts including custom graphics and sourced photography. 5-7 posts per week. Community moderation. Identify externally generated content to share, retweet, or otherwise promote. Ongoing content creating for Linkedln one post per week. Expanded stories, videos, gifs, and interactive content. City retains ownership of all social media accounts. Upon request, Contractor shall provide the City sign in credentials for social media accounts. $3,000 $9,000 $27, 000 Website Content Updates Ongoing website support and content updates, editorial calendar management, blog content and event updates. Includes adding additional content to the site such as new restaurant and shopping listings, updating imagery including refreshing homepage content. Contractor is responsible for hosting ExperienceTukwila.com. City retains ownership of ExperienceTukwila.com website and the domain name. Upon termination of this Agreement, Contractor shall transfer hosting and the domain name ExperienceTukwila.com to the City. $2,000 $18,000 Email Marketing Content and Management. Deployment of one email per month to Experience Tukwila newsletter subscribers. Email content development and management including subscriber/engagement reporting $750 $6,750 Estimated Hours per month ($175 per hour) 6 17 11 4 CA revised May 2020 Page 7 33 34 W i City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Community Development Committee CC: Mayor Ekberg FROM: Rachel Bianchi, Deputy City Administrator DATE: March 8, 2021 March 29, 2021 SUBJECT: Follow-up on King County's Health Through Housing Presentation ISSUE On Monday, February 22, 2021 staff from King County presented to the Council an overview of the Health Through Housing Program. King County is seeking to purchase existing hotel/motel buildings within cities on a voluntary basis to provide rapid rehousing for chronically homeless individuals. DISCUSSION King County has indicated — and legislation currently moving forward in Olympia mandates — that implementation of this program within cities must be done on a voluntary basis. Before Tukwila determines whether it will be a "willing city," staff recognizes that the Council and community have many questions that must be answered. Staff recommends that the Committee develop a preliminary set of questions at the March 15, 2021 Planning and Community Development Committee meeting. A draft list is attached to this memo, which was culled from questions asked at the February 22, 2021 meeting, as well as from public social media posts on the topic and public comment received to date. Staff will return to the Committee on April 5, 2021 with available answers. In addition, staff recommends that IF the Council is willing to move forward as a "willing city," that the City remove the Tukwila International Boulevard (TIB) neighborhood and the Central Business District (CBD) from consideration. For various and different reasons, these two areas of the City are not good candidates for this program. The TIB neighborhood continues to be an emerging one, and ongoing planning and zoning deliberations will be coming before the Council later this year. These issues should be resolved to better understand the future of this critical neighborhood in Tukwila. As to the CBD, because this is a critical economic engine for the City and state, and is an employment, retail and entertainment district, it is not a good fit for this program. As Tukwila moves forward with investigating whether to participate in this program, there may be other criteria the Council wants to develop before moving forward with the program. Attached is a document that builds upon the March 22, 2021 Planning & Community Development Committee discussion and compiles questions from Committee and community members. Staff has inserted the available responses culled from two fact sheets developed by the County, also attached. Questions for which there are no responses will need to be answered in consultation with King County, and some depend on policy direction from the City Council. Ultimately, if there is interest in proceeding with a discussion with the County, some of these issues could be covered in an agreement between the City and County. Staff is seeking direction from the Committee as to whether it should initiate such discussions with the County. 35 INFORMATIONAL MEMO Page 2 RECOMMENDATION Staff is seeking Committee feedback and addition to the preliminary questions on the Health Through Housing Program as it relates to Tukwila. In addition, staff is seeking Committee guidance on whether it concurs with the recommendation to remove the two areas specified above from consideration. This discussion should not be construed as designating Tukwila a "willing city," but is to provide a framework and basic guidance for initiating discussions with the County on a potential role for Tukwila in this program. ATTACHMENTS Preliminary list of questions on the Health Through Housing Program with publicly available answers Health through Housing Frequently Asked Questions (prepared by King County) Health through Housing Proposal Summary (prepared by King County) 36 Questions on Health through Housing Program (compiled from various sources including members of the Council and community) 1. How is it funded? The State Legislature passed HB 1590 in 2020, which allowed jurisdictions to enact a 0.1% sales tax to provide housing for chronically homeless individuals. 2. What is the goal? The County's goal is to house 45% of the currently chronic homeless population, while reducing racial -ethnic disproportionality — roughly 2,200 people — by October of 2022 3. What will be the measure(s) of success? Beyond reducing the number of people experiencing homelessness in a significant way, staff is unaware of other measures. 4. How long will the Health through Housing program last? The program is expected to go in perpetuity and will be governed by the Initial Health through Housing Implementation Plan upon adoption by ordinance in June of 2021. In 2028 and every eight years after that, the executive will propose an update to the Health through Housing Implementation Plan. 5. How many cities may/will be involved? Unknown at this time. 6. How many facilities will be involved? Unknown at this time. 7. Where could such a facility be located in Tukwila? This depends on the policy direction from the City Council. 8. What zoning designation would the facility use fall under, and would the city consider changing zoning to accommodate this facility? This depends on the policy direction from the City Council. 9. Is the facility considered a shelter or multifamily housing? Staff believes it would be considered a shelter. 10. Would the facility be subject to the City's rental housing inspection and licensing program? Not currently, but that could change depending on the policy direction of the Council. 11. Who qualifies for this housing? All households served with these funds must earn at or below 30% of Area Median Income and meet the following qualifications, per the authorizing legislation: a. Persons with behavioral health disabilities; b. Senior citizens; c. Persons with disabilities; d. Domestic violence survivors; e. Homeless or at -risk of being homeless. Families with children' or f. Unaccompanied homeless youth or young adults. Households also must meet one of the following definitions: Health through Housing Questions 3/30/21 37 a. A household experiencing chronic homelessness must include an adult with a disability and either be currently experiencing homelessness for at least 12 consecutive months or have experienced homelessness for a cumulative 12 months within the prior three years. b. A household at -risk of homelessness describes a household that includes an adult with a disability and meets two additional criteria: 1. Currently experiencing homelessness for 10-12 months in the previous three years or previously experiencing homelessness for 12+ months within the last five years; and 2. Include one adult that has been incarcerated within the previous five years, or been detained or involuntarily committed, or identifies as a member of a population that is demographically overrepresented among persons experiencing homelessness. 12. Will there be barriers to becoming a resident? "Ongoing availability of HTH units to chronically homeless individuals is behavior -based. Each resident receives a code of conduct and a program agreement at the time of entry. These cover expectations for things such as visitors, accessing services, interpersonal behavior, etc. If residents are not able to comply with the code of conduct and the terms of the agreement, they may be asked to leave the program. These rules are balanced with the recognition that many people experiencing chronic homelessness will require support as they transition into their housing, and the goal of the program is to provide emergency housing for people who might otherwise live unsheltered." 13. Should Tukwila residents be prioritized? An amendment to HB 1070, which will give the County authority to use these funds for existing construction, requires that the "15% of the units provided at that facility to be provided to individuals who are living in or near the city in which the facility is located, or have ties to that community. The provisions of this subsection ...do not apply if the county is unable to identify sufficient individuals within the city in need of services that meet the criteria..." 14. How many chronically homeless individuals will be served? The County's goal is to house 2,200 individuals by October of 2022. 15. Are families eligible? Yes. See answer to number 11 above. 16. Are there maximum income limits to qualify? Yes. See answer to number 11 above. 17. How long will individuals or families stay in the units, on average? Unknown at this time. However, this response from a County fact sheet applies: "Health Through Housing is a housing program. There is no limit on length of stay. However, when appropriate, housing case managers will work with residents on securing alternate, long term housing while providing services to improve residents' health. This is important so that HTH sites are able to serve new local residents." 18. Will there be such demand for the program to necessitate a waiting list? Unknown at this time. However, this would only cover housing or 45% of the current homeless population in King County. 19. Is this long-term or temporary housing? If temporary, what are the next steps for residents to find more permanent housing? See answer to Number 17 above. 20. If the goal is to help people transition into stability, what is the pathway to this goal? See answer to Number 17 above. Health through Housing Questions 3/30/21 38 21. Is this effort meant to respond to houselessness or homelessness (the latter implies a holistic approach including stability, recovery and healthy relationships)? Staff is unable to answer this question. 22. Will the facility have 24/7 staffing including both security and service providers? "All Health through Housing facilities will have: a. Building Security b. Housing Case Management c. Connection to Medical and Behavioral Health Services d. Assistance in enrolling in entitlement programs and employment programs where appropriate" 23. What wraparound services will be available onsite? Staff does not have details on this at this time, except what is included in the answer to Number 22. 24. Who will provide these services? Staff understands that the County is going through a Request for Proposals (RFP) process currently for service providers. 25. Are support services budgeted per unit? Unknown at this time. 26. Will those refusing services be asked to leave? See answer to Number 12. 27. Will each individual have a case manager, and what will that case management load be? Yes; case management unknown and likely up to the provider. 28. How will residents be located in the facility (ex. will families be separated from individuals, will genders be separated, will certain areas be off limits to certain other residents) Specifics are unknown at this time. 29. How will safety be ensured for residents both in and near the facility? The County indicates there will be 24/7 on-site security. 30. How will safety be ensured for businesses near the facility? The County indicates there will be 24/7 on-site security. 31. Will common kitchens be built at the facility? Unknown at this time. 32. Will drug and/or alcohol use be permitted in the individual units? Unknown at this time. 33. Is it possible that children would be cohoused with people experiencing alcohol or drug use disorder? Unknown at this time. However, best practice in shelters is to have separate facilities for families with children. 34. How will a recovery culture be promoted? Unknown at this time. 35. Will there be drug tests or background checks to screen for criminal behavior including sex offenses? Unknown at this time. 36. Will residents have restrictions on access to come and go from the facility during certain times of day? No. Health through Housing Questions 3/30/21 39 37. Will there be safeguards in place to ensure there is no illegal drug or sex work activity onsite? The County indicates there will be 24/7 on-site security. 38. What will be enforcement strategies from illegal activities in units or in/on the surrounding premises? Unknown at this time. 39. Will the facility require increased city services in the form of Police/Fire, and how would such increases be funded? Unknown at this time. 40. Have the challenges faced by other communities with similar programs been adequately explored? The County has not yet implemented this program. 41. Once a facility is acquired by the County, will the city have the ability to alter how it is operated or ask the County to stop operating and sell the property? Unknown at this time. Presumably there would be an opportunity to negotiate such language in an Interlocal Agreement (ILA) or some other agreement between the City and County. 42. Is there an exit strategy for the city of the facility proves to be not a good fit for the community? See answer to Number 41. 43. Are there impacts from losing property tax revenue that would otherwise be collected from the commercial property? No. 44. Does the County plan to use future funding for constructing affordable housing or transitional housing? The funds associated with this program are restricted to the qualifications outlined in the answer to Number 11 above. 45. Which 10 cities were identified to be approached with the Health through Housing proposal? Unknown at this time. 46. Will there be volunteer opportunities for community members who want to help? Unknown at this time. Health through Housing Questions 3/30/21 40 Health Through Housing (HTH) Frequently Asked Questions Objective: By June 2021, local jurisdictions and King County will create up to 1,600 emergency housing and permanent supportive housing units for chronically homeless households. 1. What process will King County use to acquire a HTH emergency housing facility? (RFP, direct County purchase, etc.)? King County is committed to working with local jurisdictions to identify HTH properties. While the ultimate path to acquisition will likely depend on each individual property and jurisdiction, King County is planning to acquire buildings directly and then transfer properties to partner agencies for long-term operations and potential future ownership. King County does not anticipate using a general RFP process to identify and acquire properties. 2. Are there specific zoning or permitting requirements or best practices for HTH emergency housing? Zoning and land use requirements differ by jurisdiction, with each city governing its own policies. One objective of working directly with local jurisdictions to identify properties is to ensure that the eventual HTH sites comply with existing local codes, allowing for rapid acquisition and use. HTH facilities are housing for the purpose of zoning and permitting. 3. What types of buildings is King County looking for with HTH? King County is working with local service enriched housing providers to identify the necessary property characteristics. For example, while properties with internal corridors are preferred, they may not be necessary in all cases. Non -congregate, single -room settings are the preferred building type to ensure that HTH is providing housing, as required by the state statute that authorizes HTH. In addition, the ideal building would have • Units with private bedroom and bathroom • Recent construction, 1990 and later • ADA accessibility, including elevators 4. What services will be on site at HTH facilities and how frequently will they be available? (as many details as possible) All HTH projects will have the following services: • 24/7 staffing • Building Security • Housing Case Management • Connection to Medical and Behavioral Health Services • Assistance in enrolling in entitlement programs and employment programs where appropriate 41 5. Will there be rules for residents? (i.e curfews, visitors, etc) Ongoing availability of HTH units to chronically homeless individuals is behavior -based. Each resident receives a code of conduct and a program agreement at the time of entry. These cover expectations for things such as visitors, accessing services, interpersonal behavior, etc. If residents are not able to comply with the code of conduct and the terms of the agreement, they may be asked to leave the program. These rules are balanced with the recognition that many people experiencing chronic homelessness will require support as they transition into their housing, and the goal of the program is to provide emergency housing for people who might otherwise live unsheltered. 6. What is the expected size of a Health Through Housing property? To ensure the most effective staff and service to resident ratios and to create financially sustainable facilities, desirable properties likely include 75-100 units King County's recent experience is that few facilities with more than 150 rooms will offer effective staff and service to resident ratios. 7. How many staff will be at each site? Ultimately the number of staff will depend on the size of each property and the characteristics of its particular residents. However, all HTH facilities will have 24/7 staffing, including security, as well as sufficient staff to provide the case management and other services discussed in Question 4. 8. Is there a time limit on how long a household can remain at a HTH property? Health Through Housing is a housing program. There is no limit on length of stay. However, when appropriate, housing case managers will work with residents on securing alternate, long term housing while providing services to improve residents' health. This is important so that HTH sites are able to serve new local residents. 9. What are the HTH goals for residents? The goal for every resident is permanent housing and improved physical and behavioral health. For many residents residing in HTH units, with appropriate support and connection to assistance, they will likely be able to live independently. 10. How will you ensure long term upkeep of the properties? A key component to Health Through Housing is providing the long term operating and service support, ensuring that both residents and the property are supported. In a unique characteristic of the HTH program, the same funding source has the ability to fully fund capital, operating, and services needs for every HTH unit. 11. How will King County ensure that funding will be sustainable? Health Through Housing is expected to be a long term (permanent) funding source. King County is committed to maintaining operating and service support for every unit for as long as the property is part of the HTH program. 42 Health through Housing Proposal Summary The King County Executive is proposing Councilmanic enactment of a Health through Housing 0.1% Countywide Sales Tax authorized under RCW 82.14.530 (aka the Legislature's 2020 HB 1590). GOAL: HOUSE 45% OF CHRONIC HOMELESS POPULATION (based on HMIS) By October 2022, house 2,000 King County residents who are experiencing or at risk of chronic homelessness—while reducing racial -ethnic disproportionality—by: 1. acquiring single -room settings like hotels while economic conditions are favorable, 2. putting them into immediate service as emergency and affordable housing, 3. funding operating and supportive services within housing, including behavioral health services, to keep people healthy and housed; and 4. converting acquired single -room settings into permanent supportive housing over time while continuin , to develo s additional affordable housing. Why this concept, why this instrument, why now? • Housing is a Foundation for Health: Single Room Housing is Healthier; Congregate Shelters are Not a Long -Term Solution Our COVID-19 deintensification actions show that the basics that underpin health for most of us would do the same for people without a home: the ability to sleep in a bed, to use a bathroom, to feel safe, and to have the dignity of a place to be are foundations of health, preventing problems that we must otherwise treat at even greater personal and financial cost. • A Temporary Opportunity to Make an Immediate & Lasting Difference COVID-19 provides TEMPORARY economic conditions to purchase single -room properties like hotels that we can immediately convert to emergency housing—we must be nimble enough to leverage this window for change. We have a chance to immediately increase housing stock for less money than is normally possible. This window will close. • Reframing the Housing vs. Shelter False Policy/Funding Choice We can invest in immediate emergency housing for King County residents—people and resources that would otherwise go to congregate shelters or unsheltered homelessness—and then re -develop the purchased properties to build permanent supportive housing for even more people over time. The same resources can provide emergency housing now and support long-term affordable housing goals. • We Center the Most Affected. Nothing is More Regressive for a Person Than Experiencing Homelessness. Attempts at more progressive revenue sources have failed, leaving the sales tax as the only available tool. Meanwhile, the status quo is costing our society, community, and budgets. What is proposed? Upon a majority vote of the King County Council, proposed ordinance 2020-0311 (sponsored by Councilmember Joe McDermott) will implement a 0.1% sales tax across King County for affordable housing, housing -related services and behavioral health treatment. Current forecasts estimate the tax will generate $65-70 million/year. The ordinance authorizes funding for the following: • Affordable housing; • Behavioral health-related facilities; • Operations and maintenance costs of affordable housing, facilities for housing -related services, or newly constructed evaluation and treatment centers; • Operation, deliver, or evaluation of behavioral health treatment programs and services or housing -related services; The Executive's proposed 2021-22 budget appropriates $96 million from revenue generated in the first two years of the tax. These funds are appropriated for debt service payments for up to $400 million in bonds to finance affordable housing, operating and service expenses for those affordable housing units, and behavioral health treatment. Updated: September 25, 2020 43 Health through Housing Proposal Summary How will funds be spent? Proceeds collected in 2021 are directed by the County's 2021-2022 biennial budget. Proceeds collected in 2022-2028 will be governed by the Initial Health through Housing Implementation Plan (Initial Plan), upon adoption by ordinance. In 2028 and every eight years after that, the executive will propose an update to the Health through Housing Implementation Plan. Onroini' Implementation Plan MN- The Implementation Plan will: • Describe goals, strategies, performance measures, reporting requirements and annual expenditures • Include goals and performance measures for the annual reduction of racial and ethnic demographic disproportionality among persons experiencing chronic homelessness • Establish composition and responsibilities of a Health through Housing Advisory Committee to provide advice to the executive and council and report annually on the accomplishments and effectiveness of programs funded with the revenues. The committee will include: o Persons who have experienced homelessness; o Persons representative of racial and ethnic communities demographically disproportionately represented among persons experiencing chronic homelessness; o Residents of unincorporated areas and of cities with populations greater than 60,000 persons; and o Representatives from other county, city, and sub -regional boards, commissions or committees. INITIAL Implementation Plan (by 6/30/2021) The Executive will consult with the Affordable Housing Committee and the CEO of the King County Regional Homelessness Authority to develop the Initial Plan. 1. The paramount goal of the Initial Plan is creation and ongoing operation of 2,000 permanently affordable homes with housing -related services for eligible households that are experiencing chronic homelessness or that are at risk of experiencing chronic homelessness. 2. The Initial Plan will also support the creation and operation of a mobile behavioral health intervention program as an alternative to the use of law enforcement. This program will connect clients to housing created or operated with Health through Housing revenues. A portion of expenditures for 2022-2028 will also support and build the capacity of community-based organizations serving communities that are disproportionately demographically represented among persons experiencing chronic homelessness. 3. Specify the process to site affordable housing and behavioral health facilities funded from 2022-2028. Who will be served? All households served with affordable housing, or facilities providing housing -related services, with these funds must earn at or below 30% of Area Median Income and meet the following qualifications (required by RCW 82.14.530): • Persons with behavioral health disabilities; • Senior citizens; • Persons with disabilities; • Domestic violence survivors; • Homeless, or at -risk of being homeless, families with children; or • Unaccompanied homeless youth or young adults. Households must also meet one of the following definitions: • A household experiencing chronic homelessness must include an adult with a disability and either be currently experiencing homelessness for at least 12 consecutive months or have experienced homelessness for a cumulative 12 months within the prior 3 years. • A household at -risk of chronic homelessness describes a household that includes an adult with a disability and meets two additional criteria: 1. currently experiencing homelessness for 10-12 months in the previous 3 years or previously experienced homelessness for 12+ months within the last 5 years; and 2. include one adult that has been incarcerated within the previous 5 years, or been detained or involuntarily committed, or identifies as a member of a population that is demographically overrepresented among persons experiencing homelessness. How will you make decisions about siting housing and facilities? • Use an equity and social justice impact review process and consult with cities in which capital projects will be located. • Prioritize 2021 proceeds for sites/services within a city that submits a written statement of support. • Plan to spend at least 30% of funds collected in cities with over 60,000 residents in the community that generated those funds (consistent with RCW 82.14.530). Updated: September 25, 2020 44