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2020, 10-15 minutesMINUTES LODGING TAX ADVISORY COMMITTEE MEETING October 15, 2020 8:00 a.m. Spokane Valley City Hall Council Chambers 10210 East Sprague Avenue Meeting Held via Zoom _____________________________________________________________________________________ Attendance: Lodging Tax Advisory Committee Members: Staff: Chair: Mayor Ben Wick Chelsie Taylor, Finance Director Lee Cameron, Mirabeau Park Hotel Sarah Farr, Accounting Technician Colleen Heinselman, Hampton Inn Suites Erik Lamb, Deputy City Attorney Wayne Brokaw, Spokane County Fair Board Christine Bainbridge, City Clerk Gregory Repetti, The HUB ------------------------------------------------------------------------------------------------------------------------------ Chair Mayor Wick called the meeting to order at 8:00 a.m. and welcomed everyone, after which there were self-introductions. Deputy City Attorney Lamb went through his Open Public Government PowerPoint training for Committee members and he explained various portions of the Public Records Act, and the Open Public Meetings Act. Mayor Wick made some opening comments about tax trends and what the COVID pandemic /Motel Association) request to the state legislature to change the room tax rates from its current $2.00 a night to $5.00 a night and that there was a request from the Sports Commission to have the change at $4.00 a night Lodging Tax Advisory Committee (LTAC) and said the goals have not changed from the previous year. Finance Director Taylor went through the information contained in the Memorandum included with the packet materials, about projected revenues and transfer of funds to Fund 104; followed by Deputy City Attorney Lamb explaining the use of funds and any proposed changes as per RCW 78.28.1817; he noted that for this LTAC meeting, committee members should think about how to award for 2021, keeping in mind impact on 2020 and where the ending cash fund might be as well as uncertainty for cash collections for 2020 and 2021. Mr. Lamb stated that comments Committee members might want to pass to Council regarding funding include award recommendations for 2021, as well as any other motions or comments, and that Council will take final action on 2020 through a 2020 budget amendment in December. Mr. Lamb also noted that regarding the applications, some were for marketing and some for actual operations, and due to Covid restrictions, some were not able to proceed as planned; he also reminded committee members the LTAC funds are awarded on a reimbursement basis; so if some applicants used the funds for marketing, those can be reimbursed, but we will not pay for events that did not occur. Finance Director Taylor said she has been in contact with all awardees to let them know that the exact amount the City will be paying is uncertain. Director Taylor also went over the contents of the meeting binder, and mentioned which events some could still have mentioned that the NW Winterfest event for this year is still uncertain; she noted the $30,000 set aside for CenterPlace, which is allowed by state statute as it constitutes historic use of the tax. Director Taylor mentioned the $710,000 anticipated amounts for 2021, minus the $30,000 to CenterPlace which leaves $680,000 for award allocations. LTAC Minutes October 15, 2020 Page 1 of 3 Presentations were made in the following order: 1. Historic Flight Foundation Mr. John Sessions Chair of the Board John Sessions noted they seek $15,000 for marketing their Vintage Aircraft Weekend, which will be a community and family event to celebrate vintage aircraft and history. 2. The HUB Mr. Phil Champlin Mr. Champlin explained that the HUB seeks $45,000 for recruiting events to the facility. 3. JAKT Brews, Beats & Eats Mr. Tom Stebbins and Executive Director Ms. Katie Lee Mr. Stebbins seeks $20,000 for the Brews, Beats & Arts community event, which is an event for all ages celebrating local beer, food and music; and the funds will be used to assist in conducting the event as well as with infrastructure costs. 4. JAKT Crave Mr. Tom Stebbins Mr. Stebbins seeks $25,000 for the Crave event, which will include cost for a social media team that includes photography and video assets and PR outreach. 5. JAKT Farmers Market Mr. Tom Stebbins Mr. Stebbins seeks $20,000 to continue the Farmers Market at CenterPlace; that the requested amount is for the market manager position, a position to maintain organized vendors to bring vendors and the public to the community and the event and to boost attendance. 6. Northwest Winterfest Mr. Sam Song and Ms. Charity Doyl The applicants seek $50,000 to assist with this event to include operation and marketing. 7. Spokane County Fair and Expo center Ms. Erin Gurtel and Ms. Rachelle Buchanan The applicants seek $50,000 to market and advertise the Fair and interim events to an audience in and beyond the Spokane area. 9. Valleyfest Ms. Peggy Doering Ms. Doering seeks $18,000 for marketing Valleyfest in and beyond the Spokane region. 10. Valleyfest Cycle Celebration Ms. Peggy Doering Ms. Doering seeks $5,000 for marketing the City of Spokane Valley as a destination to cyclists and their families. 8. Spokane Sports Commission - Ms. Ashley Blake The Sports Commission seeks $55,000 to support tourism events in 2021. There was some discussion about the Sports Commission Tax. Ms. Blake explained that the City of Spokane has had a bit of a delay in their process and she is hopeful to secure a little more from them. Chair Mayor Wick called for a five-minute recess at 11:04 a.m.; he reconvened the meeting at 11:09 a.m. Lodging Tax Advisory Committee members develop funding recommendations Ms. Taylor distributed a blank spreadsheet to each committee member; went over the actuals for 2016 through 2019 and 2020 as well as the 2021 budget figures; and mentioned the $163,000 minimum for cash flow purposes. There as brief discussion about the minimum cash flow amount and Director Taylor LTAC Minutes October 15, 2020 Page 2 of 3 explained she is hesitant to reduce that figure. There was also discussion about the budget and presumed revenues, and the amount of the cash reserve. There was a great deal of discussion about the overall budget for the lodging tax fund and fund 104 with discussion focused on whether to make any transfer of funds into fund 104. Chair Mayor Wick recommended that there be no transfers in 2020 to fund 104. Deputy City could be made based on the desire of the committee. There was ultimately consensus from the committee that LTAC would cancel any transfers from fund 105 to fund 104 in the year 2020. Lodging Tax advisory Committee members discussion and award recommendations. Director Taylor then asked each committee member to complete the allocation sheet and that she and Ms. Farr would be by in a few minutes to collect the sheets allocation, after which Ms. Taylor would enter the figures on the spreadsheet. Mr. Lamb reminded everyone that the meeting is still in session. Ms. Taylor entered the figures on the master spreadsheet, which figures where then slightly modified by several of the committee members. The final recommended amounts after calculating the averages, are as follows: Historic Flight Foundation $15,000; HUB Sports Center $45,000; JAKT Brews, Beats & Eats $2,600; JAKT Crave $15,200; JAKT Farmers Market $7,200; NW Winterfest $49,000; Spokane County Fair and Expo Center $49,000; Spokane Sports Commission $27,000; Valleyfest $12,600; and Valleyfest Cycle Celebration $1,800 for a total of $224,400. It was moved by Lee Cameron, seconded, and unanimously agreed to accept the average amounts in the total amount of $224,400. Ms. Taylor said she would email a final distribution sheet to each committee member. Discussion resumed about the transfer of funds and the ending fund balance, which finally culminated in a motion by Mr. Repetti as follows: It was moved by Mr. Repetti and seconded that all remaining funds be transferred to fund 104 after complete adjudication of all awards and allowing a reserve fund balance of $165,000 at the end of year 2021. Discussion included mention by Director Taylor that getting to exactly moved by Mr. Cameron and seconded to amend the motion by changing the reserve fund balance of $165,000, to Vote by acclamation on the amended motion was unanimous in favor. Committee members then voted by acclamation on the fully amended motion with all members voting unanimously in favor. Director Taylor said an administrative report is scheduled to come before Council November 24, with final action scheduled for the December 8 Council meeting. It was moved by Mr. Repetti, seconded and unanimously agreed to adjourn. The meeting adjourned at 12:46 p.m. Respectfully submitted, Christine Bainbridge, Spokane Valley City Clerk LTAC Minutes October 15, 2020 Page 3 of 3