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HomeMy WebLinkAboutReg 2023-07-17 Item 5B - Agreement - 2023-2024 Tourism Promotion with Starfire Sports for $110,000COUNCIL AGENDA SYNOPSIS A.ti�"' 4, Initials ITEM NO. 4 -- Meeting Date Prepared by Mayors review Council review 0 7/17/23 B)M 10 0 5.B. 1908 ITEM INFORMATION STAFF SPONSOR: B. MILES ORIGINAL AGENDA DATE: 7/17/ 23 AGENDA ITEM TITLE Authorize the Mayor to execute a tourism promotion agreement with Starfire Sports with an amount not to exceed $110,000 over two years. CATEGORY ❑ Discussion Mtg Date a Motion Mtg Date 7/17/23 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council 0 Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S On May 22 the City Council approved a lodging tax funding request by Starfire Sports for SUMMARY lodging tax funds for 2023/2024. The Council gave staff permission to place the service agreement, which implements the funding request, straight on the consent agenda. Starfire will use the lodging tax funds to promote Starfire for youth tournments and other tourism related promotions. No general funds wll be used. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance /1 Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 3/6/2023 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Mayor/Economic Development COMMITTEE Unanimous Approval; Forward to Consent COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $110,000 $600,000 $N/A Fund Source: 101 FUND Comments: Tourism funds. MTG. DATE RECORD OF COUNCIL ACTION 7/17/23 MTG. DATE ATTACHMENTS 7/17/23 Draft Agreement with Starfire Sports Minutes from the 3/6 Planning and Community Development Committee meeting 51 52 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: CONTRACT FOR LODGING TAX FUNDING This Agreement is entered into by and between the City of Tukwila, Washington, a non -charter optional municipal code city hereinafter referred to as "the City," and Starfire Sports, hereinafter referred to as "the Contractor," whose principal office is located at 14800 Starfire Wy, Tukwila, Washington, 98188. WHEREAS, the City imposes a special excise tax under Chapter 82.08 Revised Code of Washington (RCW), known as the "lodging tax," on furnishing of lodging in hotels, motels and similar business enterprises, as authorized under Chapter 67.28 RCW; and WHEREAS, the City is authorized to use the lodging tax revenue for tourism promotion, as defined by Chapter 67.28 RCW; and WHEREAS, Contractor is able to help promote the City to both overnight and day visitors, driving business to Tukwila restaurants, hotels, retailers, and entertainment establishments; and WHEREAS, on February 10, 2023, the City's Lodging Tax Advisory Committee considered and approved Contractor's request to obtain lodging tax revenue for tourism promotion; and WHEREAS, the City concurs with the Lodging Tax Advisory Committee's recommendation to provide lodging tax revenue to Contractor for tourism promotion; and WHEREAS, it is appropriate for the City to compensate the Contractor for the costs of promoting tourism (both day and overnight) in the City; and IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed $110,000. 3. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing upon execution, and ending December 31, 2024, unless sooner terminated under the provisions hereinafter specified. 4. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be CA Revised May 2020 Page 1 of 9 53 considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. 5. Indemnification. Contractor shall defend, indemnify and hold the City, its officers, agents, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Contractor and the City, its officers, officials, employees, and volunteers, Contractor's liability hereunder shall be only to the extent of Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 6. Insurance. Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products -completed operations aggregate limit. Commercial General Liability insurance shall be as least at broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products -completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide a per project general aggregate limit using ISO form CG 25 03 05 09 or an equivalent endorsement. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing at least as broad coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. CA Revised May 2020 Page 2 of 9 54 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 Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. 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. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. Upon request by the City, the Contractor shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Subcontractors. The Contractor shall cause each and every Subcontractor to provide insurance coverage that complies with all applicable requirements of the Contractor -provided insurance as set forth herein, except the Contractor shall have sole responsibility for determining the limits of coverage required to be obtained by Subcontractors. The Contractor shall ensure that the City is an additional insured on each and every Subcontractor's Commercial General liability insurance policy using an endorsement as least as broad as ISO CG 20 10 10 01 for ongoing operations and CG 20 37 10 01 for completed operations. G. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. H. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. 8. Record Keeping and Reporting. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 9. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. CA Revised May 2020 Page 3 of 9 55 10. Termination. This Agreement may at any time be terminated by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 11. Discrimination Prohibited. Contractor, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. Assignment and Subcontract. Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 13. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 14. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 15. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk, City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 With a copy to: Office of Economic Development City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 16. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. CA Revised May 2020 Page 4 of 9 56 DATED this day of , 20 CITY OF TUKWILA Allan Ekberg, Mayor ATTEST/AUTHENTICATED: Christy O'Flaherty, City Clerk APPROVED AS TO FORM: Office of the City Attorney CONTRACTOR: By: Printed Name: Title: Address: CA Revised May 2020 Page 5 of 9 57 Exhibit "A" Scope of Services General Contractor shall organize, promote, and facilitate soccer tournaments, leagues, and events at Starfire Sports with the goal of attracting over 10,000 overnight hotel/motel room nights and 1.3 million annual visitors (not unique visitors) in a collaborative working relationship with the City of Tukwila. The purpose of this agreement is for the tracking of hotel bookings, promotions, and marketing. 1. As needed, contractor shall refer teams and event directors directly to Explore Seattle Southside (Seattle Southside Regional Tourism Authority), a destination marketing organization for the City, for assistance with lodging, restaurants, attractions, and transportation companies, etc. or directly to the City. 2. Contractor will encourage, and where possible, require other 3rd party organizers holding tournaments and events at Starfire to utilize Tukwila lodging businesses. In the event that Tukwila hotels are unable to accommodate a group, referrals should lodging businesses in the cities of SeaTac and/or Des Moines before going to a non -Explore Seattle Southside city. Contractor will provide 3rhd party organizers a one- page promotional flyer as an attachment (to be provided by the City) to its rental agreements. 3. The contractor shall provide a prominently placed Experience Tukwila logo and link to ExperienceTukwila.com on the sponsor section of the landing page. 4. The contractor will promote City of Tukwila attractions and activities through its marketing department, league information, and tournament relations via links in email signatures and information in the event documents (to be provided by City). Information may be regarding non -city activities. Attractions and events promoted by the City, with the contractor, cannot be in conflict with the business interest of Starfire Sports. S. Contractor and City shall work in conjunction to provide content in the regular e -newsletters from Starfire Sports about Tukwila attractions and activities. Attractions and events promoted by the City, with the contractor, cannot be in conflict with the business interests of Starfire Sports. 6. In all collateral, press releases, medias, etc. where a location is mentioned, contractor shall always identify the location of Starfire as being located in "Tukwila." Contractor shall encourage third parties operating at or hosting events at Starfire to also list the location as "Tukwila." 7. Provide a minimum of four social media posts per month promoting activities, dining, shopping and/or hotels in the City (to be provided by City). 8. As deemed most appropriate by Contractor, use the #Tukwila or the name Tukwila in social media posts. Additionally, Contractor shall look for opportunities to tag the @ExperienceTukwila social media handles. 9. Contractor shall work with the City to promote events in the City, including but not limited to City sponsored events, events sponsored by third parties and grand openings of businesses within the City. CA Revised May 2020 Page 6 of 9 58 Event promoted by the City ,with the contractor, cannot conflict with the business interest of Starfire Sports. 10. The City of Tukwila shall also be considered a tournament partner for 2023 and 2024. As a tournament partner the City shall receive the following benefits: a. Tukwila shall be included as part of the tournament name and/or logo. Logos are already designed including the word Tukwila. b. A link to ExperienceTukwila.com on the Starfire homepage, youth tournaments landing page, tournament event page, and drop-down navigation menu. c. Six banners displayed during each day of the tournament; banner to be provided by the City. d. One booth during each day of the sponsored tournament. City, with Starfire permission, may assign this booth to another partner. e. One 8.5" by 11" promotional flyer in all sponsored tournament(s) coach's packet (to be provided by City). f. One marketing email sent to all tournament participants (to be provided by City). g. Rotating placement in the Starfire Media Center during the tournament season. h. Mentioned in Starfire's social media platforms. CA Revised May 2020 Page 7 of 9 59 Exhibit "B" Compensation and Payment Method Compensation and Method of Payment Contractor shall submit to the City a request for payment for services and sponsorships rendered under this Agreement. The total compensation to the Contractor under this Agreement shall not exceed $110,000 ($55,000 in 2023 and $55,000 in 2024). Invoices and requirement for payment shall be emailed to Brandon.Miles©Tukwilwa.gov. The following are the dates and amounts to be invoiced: Invoice # Date (no later than) Amount 1 August 30, 2023 $18,333 2 October 30, 2023 $18,333 3 December 31, 2023 $18,334 4 March 30, 2024 $13,750 5 June 30, 2024 $13,750 6 September 30, 2024 $13,750 7 December 31, 2024 $13,750 Should the Contractor choose to reduce or modify services outlined in Exhibit "A" of this Agreement, the City may choose to reduce the awarded funds. The amount reduced shall be at the sole discretion of the City. Reporting Requirements With each invoice, the Contractor shall provide the following to the City: 1. Estimate number of attendees for tournaments and events at Starfire. 2. Social media engagement. 3. Any other document the Contractor wants to provide to demonstrate success of the events and marketing activities. In addition to the items outlined above, the following information shall be submitted to the City no later than February 1, 2024 for the calendar year of 2023 and no later than February 1, 2025 for the calendar year of 2024. This information is required to be collected by the City and reported to the State of Washington. As a direct result of your proposed tourism related services, 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? CA Revised May 2020 60 Page 8 of 9 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 stated in PAID accommodations (hotel/motel/bed- breakfast) in Tukwila? g. Number of paid lodging room nights resulting from your proposed event/activity/facility (example: 25 paid room nights on Friday and 50 paid room nights on Saturday = 75 paid lodging room nights)? Provide information on how the above actuals were determined. Reports and Deliverables shall be submitted to: Brandon. Miles©Tukwilawa.gov. CA Revised May 2020 Page 9 of 9 61 62 City of Tukwila City Council Planning & Community Development Committee Meeting Minutes March 6, 2023 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Kathy Hougardy, Chair; De'Sean Quinn, Thomas McLeod Staff Present Rachel Bianchi, Nora Gierloff, Brandon Miles, Rachelle Sagan, Joseph Mose Chair Hougardy called the meeting to order at 5:30 p.m. BUSINESS AGENDA A. Permit Review Update Staff provided an update on the status of permit review procedures, staffing, timelines and revenues. Item(s) for follow-up: Provide information on processing time for rounds 2 and beyond of comment letters. Committee Recommendation Discussion only. B. Code, Permit Process and Culture Review Staff is seeking Committee approval to move forward with a review of City building and fire codes, infrastructure regulations, permit processes, and customer service culture. This effort is likely to require a budget amendment. Committee Recommendation Unanimous approval. C. Rental Housing Program Update Staff provided a program update. Committee Recommendation Discussion only. D. Lodging Tax Application: Starfire Sports The Lodging Tax Advisory Committee forwarded a recommendation to approve an application from Starfire Sports for the amount of $110,000 through 2024 for tourism promotion activities. Committee Recommendation Unanimous approval. Forward to March 20, 2023 Regular Consent Agenda. Unanimous approval to place the contract on a consent agenda when it is finalized. 63