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Home My WebLink AboutLUTC MINS 10-20-2009 LTAC Summary October 20, 2009 Page 1 City of Federal Way Lodging Tax Advisory Committee October 20, 2009 8:00 a.m. City Hall Hylebos Conference Room SUMMARY In Attendance: Mayor Jack Dovey, Mike Dunwiddie, Carrie Wells, Joann Piquette, and Gerry Lamontagne Guests: Councilmember Jeanne Burbidge, Rose Ehl, and H. David Kaplan Staff Present: Economic Development Director Patrick Doherty and Communications Specialist Natalie Rees 1. CALL TO ORDER Chair Dovey called the meeting to order at 8:02 a.m. 2. PUBLIC COMMENT None. 3. COMMITTEE BUSINESS A. Approval of Minutes It was m/s/c to approve the minutes of September 8, 2009 as presented. B. LTAC Membership Update Mr. Doherty reported that three applications have been received for the two vacant positions. Mayor Dovey asked Rose Ehl to attend today’s meeting, as she was the only applicant for the vacant tourism-attractions . As per the new policy, the mayor may appoint Ms. Ehl and can simply ask the City Council to confirm her. as a new member of the committee. The two applicants for the one vacant hotel position will be interviewed per the normal procedure and a recommendation will be sent to the Council. Mr. Dunwiddie and Ms. Wells are reapplying for their seats, and along with Ms. Ehl, will likely receive official approval at the City Council meeting on November 3. C. Tourism Enhancement Grant Recommendations David Kaplan discussed the TEG interviews held last week by the TEG Review Subcommittee. Three applicants were chosen to receive funding. He stated that one of the subcommittee’s objectives is to try to wean perpetual applicants from their dependency on tourism grants for regular funding. Judging is based on a value system: how much does this event promote and encourage tourism for Federal Way? Mr. Kaplan noted that the committee reserved $4,500 in funding to carry forward into next year’s budget, mindful of the economic climate and the fact that it may be difficult to maintain the $45K level in TEG monies distributed next year. A discussion followed on organizations that continually ask for more grant money than will logically be available for their event, wondering if LTAC should send out a letter regarding same. LTAC Summary October 20, 2009 Page 2 Councilmember Burbidge feels there is no need to send out correspondence and that organizations should make their own determinations on how much grant money to request, as each event has a unique set of costs (i.e., royalties, type of event, expected participation, etc.) Members voted unanimously to accept the TEG Review Subcommittee’s findings and will send the following grant recommendations to the City Council for final approval: Organization/Event Name Event Date Amount Requested Amount Recommended Federal Way Symphony/Mark Salman Concert Apr. 11, 2010 $ 3,000 $ 1,000 Centerstage/ ”Jack and the Beanstalk” Nov. 28 – Dec. 20, 2009 $ 5,000 $ 2,500 Pacific NW Swimming/AT&T Short Course National Championships Dec. 3-6, 2009 $ 10,000 $ 7,000 A total of $10,500 was recommended for Fall 2009 grants. $30,000 was granted to applicants in the 2009 Spring cycle. D. Budget Review and Revisions Mr. Doherty reviewed the 2009/2010 budget in light of recent revenue figures that have been received. While the earlier revisions to the current biennial budget dropped this year’s revenue forecast from approximately $200K to $180K, a review of year-to-date lodging tax receipts yields a projection of a substantial drop to something on the order of $150,000. To start with, members agreed to revise the revenue projection accordingly down to $154,800 for 2009 (including direct tax revenues plus interest and associated other minor revenues). The last approved 2009 budget included up to $186,750 in potential expenditures. Mr. Doherty informed the Members that staff has been holding back on expenditures associated with several budget line items in light of the soft revenues, leaving approximately $47,000 in potential cuts for consideration (from such line items as printing, TEG, administration, and the contingency fund). The Committee agreed to accept staff’s budget-cut recommendations, resulting in a working surplus of approximately $15,000 by year end. In light of the discussion (below) regarding the potential bid for the 2011 NCAA aquatic event, Members agreed to add $15,000 to the existing $15,000 in the budget line item for this year’s contribution to the “National/Olympics Events Fund,” resulting in a final expenditure total of $154,800 against the projected revenue total of $154,972. There was also discussion regarding the one-time items, such as the Triathlon, Han Woo-Ri Festival and Buds & Blooms, and the Pacific Rim Bonsai Collection reopening. No expenditures will log against the 2009 budget for Han Woo-Ri since City contributions to this year’s festival came from a carry-forward of the earmark for 2008, so that corresponding amount was deleted from the 2009 budget. The US Women’s Triathlon Series organizers have lately stated their intent to return to Federal Way next year, again allowing a deletion of the 2009 contribution, while signaling a need to hold the 2010 line item. As for Buds & Blooms, organizers are currently planning for next year’s event, and members discussed this item briefly. Mr. Lamontagne questioned the high expenditure allocated to Buds & Blooms, noting that it did very little for hotel night stays. He favors cutting funding back, or eliminating it altogether. There was no consensus on continued subsidy at the current level of $23,000 for 2010. They will take this issue up again at the next meeting. Regarding the Bonsai Collection, there was discussion about the notion of helping to fund an “opening event,” preferably to coincide with the Buds & Blooms Festival. Mayor Dovey asked staff to draft LTAC Summary October 20, 2009 Page 3 a letter to Weyerhaeuser asking for a definite response one way or the other so that we can go forward with budget planning for 2010. Mayor Dovey summarized that the Committee will need to figure out which events are most beneficial to Federal Way and make some tough decisions. For this reason, no revisions were made to the 2010 budget, which will be reviewed again in its entirety at the next meeting. The above changes for the 2009 budget were moved, seconded and approved. Upcoming National Aquatic Event Bids Mr. Dunwiddie reported that bids are due October 21 for the 2011 NCAA Men’s Swimming and Diving Championship, while the 2012 U.S. Olympic Diving Trial event bids are due on January 8. The NCAA event is the same event that was held here in 2008, for which the City and the Seattle Sports Commission (SCC) bid, with $10K in lodging tax monies going to help defray the hosting costs. That event was a very successful effort, resulting in outstanding economic/tourism benefits, as corroborated by Mr. Lamontagne and Ms. Wells’ comments. Mr. Dunwiddie noted that the Seattle Sports Commission has indicated they would need approximately $30K in additional funding in order to host to the next event due the increase in Aquatic Center rental/usage fees. The committee asked Mr. Doherty to call SCC while the meeting was in session to inquire whether $30K from the City’s lodging tax funds would ensure their ability to host and bid for the event. An agreement was reached immediately during the phone call, and SCC stated it would place the bid on October 21, 2009. Members will await the outcome of the bid for the NCAA championship before deciding if/how to proceed in bidding for the Olympic Dive Trials, which could cost at least $100K. E. Funding for World Sand Sculpture Championship The City Council has asked how much LTAC has to offer in funding to help fund the September 2010 Sand Sculpture event so that they know how much additional money will be needed from other sources to bring the competition to Federal Way. Before answering that question, members wanted to discuss other events already being funded. Since further information from the Sand Sculpture Competition organizers was not available today, Mayor Dovey suggested that LTAC delay consideration of this item until the next meeting when they take up the 2010 budget discussions. 4. NEXT MEETING DATE Members voted unanimously to move the next regularly scheduled meeting from November 10 to November 17, 2009, 8:00 a.m., in the Hylebos Conference Room. 5. ADJOURN Mayor Dovey adjourned the meeting at 9:19 a.m.