HomeMy WebLinkAboutMinutes 12/03/1994 2905
CITY COUNCIL SPECIAL MEETING
Port Angeles, Washington
December 3, 1994
CALL TO ORDER - Mayor Sargent called the special meeting of the Port Angeles City Council to order
SPECIAL MEETING: at 9:00 a.m.
ROLL CALL: Members Present: Mayor Sargent, Councilmembers Braun, Doyle, Hulett,
McKeown, and Ostrowski.
Members Absent: Councilman Sehueler.
Staff Present: Manager Pomeranz, Attorney Knutson, Clerk Upton, and
J. Pittis.
Public Present: E. Grief, J. Watson, B. Berezowsky, N. Denhart, M.
Fangen, T. LaDuron, B. Blake, and H. Gentry.
Special Agency Mayor Sargent opened the meeting by informing those present that, with respect to
Requests requests for hotel/motel tax funds, the City Council will have to cut in excess of
$50,000 from the total amount requested. Also, because the Council members need
to be present at the 11:00 opening of the new Fire Hall, Mayor Sargent asked that
the schedule be adhered to by those making presentations.
Clallam County Economic Development Council: Bart Phillips, Executive Director
of the Clallam County Economic Development Council, advised the Council that the
EDC was again requesting $22,500 plus $2,500 for in-kind services. The funding
essentially supports five functions: business assistance and business retention efforts,
which includes the Small Business Development Center and counselor and work with
existing businesses for expansion; the business recruitment and marketing program;
infrastructure development of industrial space at the airport; City directed and
specific consulting services on an as-needed basis; working with the. Chamber of
Commerce on £mancing and marketing the City as a retirement community, as well
as critical policy issues, such as the salmon closure.
Mr. Phillips' indicated he would be submitting' a more in-depth report in January as
part of the EDC's 1994 annual report. He advised the Council that the City's return
on investment is evidenced by the ability to secure other funds. Additionally, the
funding has created between 250-300 jobs, as well as $2 Million in private sector
investment and construction of new facilities. The cost to the City equates to
approximately $83 - $100 per job created. For every dollar spent, there is a return
of $80 in new investment.
Councilmember McKeown inquired as to the $70,000 contingency fund, which Mr.
Phillips indicated was established by the EDC board for unanticipated expenditures.
The fund alleviates the need to continually amend the budget throughout the course
of the year. Councilman Ostrowski commended the EDC for its ongoing efforts as
reported, and he encouraged continued diligence in meeting the goals.
Port Angeles Downtown Association: Naomi Denhart, Secretary of the Port Angeles
Downtown Association, presented a request for 1995 funding in the amount of
$10,000. The PADA is a private, non-profit corporation with 194 members and is
the second largest business organization in the City. The PADA has not approached
the City for budget support in the past, but they now recognize the need for financial
support in order to continue their level of service to the business community, the
City, and local residents.
Ms. Denhart advised the Council that the PADA and the City have worked
cooperatively for many years, mainly for the development of public, off-street
parking lots. In 1991, the Association forged an additional parmership by
successfully applying for a grant from the Washington Main Street Program, joining
other Washington cities in receiving technical resources for implementation of a
management strategy for revitalizing the downtown through image building,
economical development and physical improvements. Ms. Denhart indicated that
becoming a Main Street community has allowed a more comprehensive work plan
which is critical to downtown revitalization. The PADA's concerns are much
broader; it is much more than a parking lot manager.
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CITY COUNCIL MEETING
December 3, 1994
Special Agency Ms. Denhart indicated this downtown association is the only one to not receive
Requests (Cont'd) financial assistance or in-kind services from its City government. Recognizing the
City has been inundated with requests for financial assistance, the PADA would be
happy to receive support in the form of in-kind services. Ms. Denhart asked the
Council's favorable consideration of this request.
Mayor Sargent indicated she had heard previous presentations on the Main Street
Program, and she inquired of Ms. Denhart as to what improvements the PADA had
realized because of participation in tho Main Street Program. Ms. Denhart felt there
had been a significant increase in community involvement. In addition, a five-year
plan was written in 1989. Many of the goals included in that plan have already been
implemented, which is extremely heartening. Councilman Ostrowski inquired as to
what in-kind services would be appropriate. Ms. Denhart suggested such
possibilities as printing costs for walking tour brochures, parking lot sweeping, or
sidewalk sweeping. In response to an inquiry from Councilman Doyle, Ms. Denhart
indicated that all downtown businesses are members of the PADA, which is a
requirement.
Before commencing the presentations on hotel/motel taxes, Mayor Sargent asked that
Attorney Knutson provide information as to what restrictions are established in the
use of hotel/motel tax funds. She reminded those present that $50,000 will have to
be cut from the requests, particularly because the requests exceed the amount
available and also because the tax revenues were less than anticipated this year.
Councilman Doyle noted the $50,000 constitutes approximately one-third of the total
amount requested.
Attorney Knutson advised the Council that there are two basic categories, one being
the promotion of tourism and the other being acquisition, construction or operation
of stadium or convention center facilities. Attorney Knutson indicated there is a
specific State statute that goes into more detail as to how the funds have to be used,
i.e., for advertising, publicizing, or otherwise distributing information for .attracting
visitors and encouraging tourist expansion. Also, the statute allows the funds to be
used for acquiring or operating performing arts center facilities and visual center
facilities. Over the years, the City has entered into contracts with various entities,
and each con. tract sets forth the basis under State statute by which the funding is
awarded. Every effort is made to assure compliance on the part of the City and the
various funded entities.
Derby Days: Mable Fangen, Treasurer of Derby Days, was present to request
hotel/motel tax funding in the amount of $5,000. The Derby Days festival brings
a great deal of tourists into the City, usually the last weekend in August. The Derby
Days float travels to 20 other cities in order to advertise Port Angeles. Ms. Fangen
reviewed in detail the budget report, which is a progress report representative of the
last five months. She indicated the Derby Days committee is being very diligent in
managing its funds. She advised the Council that a portion of the City funds are
used toward construction of the annual float. Ms. Fangen expressed appreciation for
the City's past support.
In response to an inquiry from Councilman Ostrowski, Ms. Fangen indicated travel
expenses are paid from the matching funds.
Chamber of Commerce: Representing the Chamber of Commerce were Carol
Johnson and Erl Hansen, who were present to request funding in the amount of
$53,547. Ms. Johnson advised the Council that the Chamber has tried to hold the
line on expenditures, but certain items continue to escalate, such as postage, rent,
and utilities. In addition, advertising costs increase annually. She reminded the
Council that the Chamber is not asking for assistance to fund the Chamber itself, but
rather the funding is directed toward advertising on behalf of the City. Further,
hotel/motel tax funds assist in 50 % of the operational costs of the Visitor Information
Center.
Mayor Sargent noted that the Chamber's request was the only one submitted which
was less than that submitted last year. Ms. Johnson stated the Chamber was trying
to do its part in keeping costs down; she then reviewed some of the Chamber's
efforts to enhance Port Angeles' tourism. Councilman Ostrowski expressed surprise
at the costs involved in placing advertising, which generated a discussion as to the
various costs of advertising, the benefits gained from that advertising, and the ads
committed thus far.
Mayor Sargent inquired as to whether there are any grant opportunities available to
the Chamber, and Erl Hansen responded he would be happy to pursue this possibility
with the hope of gaining support for the operation of the Visitor Center. Discussion
followed.
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December 3, 1994
Special Agency Museum; Barbara Kaufmann, President of the Historical Society, presented a
Requests (Cont'd) request for hotel/motel tax funds in the mount of $12,500. She thanked the Council
for past support and noted that this request is the same as that submitted last year.
Ms. Kaufmann reviewed certain facts pertinent to the Museum, noting it serves
.approximately 11,000 peoPle each year. Eighty percent of these people, in the
summer, are non-County residents. In the fall and winter, the figure is
approximately forty percent. Much of the focus has been on the Lincoln School
project; however, the current Museum must still be operated. City funding is
directed toward the operational costs of the current Museum. County support is
received via free rent and utilities, which equates to approximately $30,000 per year.
Ms. Kaufmann reviewed the number of volunteers serving the Museum and the fact
that there are 375 paying members. Income is derived from membership dues,
memorial donations, and visitor donations. Ms. Kaufmann reviewed current
expenses and the efforts to keep expenses at a minimum. She summarized some of
the programs offered by the Museum throughout the course of the year.
In the ensuing discussion, Councilman Doyle queried as to the dues structure and the
number of members, to which Ms. Kaufmann responded there is a membership drive
underway at the present time. Councilman Braun inquired as to the target date for
moving into the Lincoln School facility, and Ms. Kaufmann indicated the move
should occur in 1998. Councilman Ostrowski clarified that none of the hotel/motel
tax funds are used toward the Lincoln School project.
Break Mayor Sargent recessed the meeting for a break at 9:45 p.m. The meeting
reconvened at 9:55 p.m.
SymphonF Orchestra: Representing the Port Angeles Symphony Orchestra were Ed
Grief, Past President, and Joy Watson, President. Mr. Grier indicated the
Symphony is the "granddaddy" of performing groups in the Port Angeles area,
having been in existence for about sixty years. The Symphony has five concerts per
year, all of which are sold out and represent 6,000 seats per year. There is a Pops
Concert, as well as other free events sponsored by the Symphony. There is now a
chamber orchestra performing three concerts in Port Angeles and three to four
outside the City, attracting approximately 300 people at each concert. Mr. Grier
reviewed performances and supportive efforts for other civic and cultural events in
the area.
Ms. Watson related that the Symphony's request for hotel/motel tax funds for 1995
is $2,500. They felt Orchestra events draw tourists, family, and friends to Port
Angeles, all of whom utilize hotel accommodations and restaurants. Ms. Watson
reviewed the Symphony's budget for advertising and promotion.
Councilman Ostrowski expressed the opinion that the Symphony might possibly
receive funding assistance from other than the hotel/motel tax funds, and he asked
Manager Pomeranz if this could be accomplished. Manager Pomeranz offered
caution in the use of the General Fund, because of ongoing efforts to keep that fund
in balance.
North Olvmoic Peninsula Visitor & Convention Bureau: Rick Hert, Executive
Director of the NOPVCB, distributed a handout setting forth information on
economic impact, visitor inquiries, the 1995 marketing schedule, and information
specific to Port Angeles. Mr. Heft indicated the NOPVCB has formed a partnership
with the City and functions much the same as the EDC by bringing more money into
the area. In working with tour groups, there were over 172 meetings with .tour
operators in an effort to bring in more tour groups and to expand the current tour
base. There is also an effort for stays to be lengthened. The result has been an
additional 30 groups at a value of $90,000.
In the area of conventions and meetings, there were 21 new meetings to the area, all
having a significant financial impact to the area. Port Angeles has gained a great
deal from these meetings because of the facilities available for the conduct of these
meetings. The film and video industry has been vigorously marketed, and 16
different productions were shot on the Peninsula with an impact of $531,000. Media
exposure has been significant as well. Mr. Heft indicated trade shows have been
directly marketed.
There has been interest expressed in the membership, and Mr. Hert reported
membership dues have been increased. Additionally, membership has increased by
34 %. Mr. Hert then reviewed the visitor inquiry tally and noted that the figure of
10,000 phone inquiries should be surpassed by the end of the year.
Mr. Hert reviewed the fact that the Visitor & Convention Bureau received a $95,000
EDA Grant requiring $32,000 in matching marketing funds. There will be in excess
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CITY COUNCIL MEETING
December 3, 1994
Special Agency of $130,000 spent over the next six months for marketing and advertising. In
Requests (Cont'd) addition, a $30,000 giant was received from the Forest Service as part ora $70,000
program to create more press for the area. The NOPVCB has been very successful
in acquiring the matching funds, and he indicated they are hopeful the City will be
able to assist in the area of matching funds. Mr. Hert referenced the budget and
noted budgetary increases since 1992. With these increases come increased work,
which has generated increased activities and promotion for the area. He presented
the 1995 marketing schedule by indicating that 99% of the 1994 list has been
accomplished.
Mayor Sargent noted her past interest in having promotional materials placed on the
ferries and with that accomplished, she inquired as to the response received. Mr.
Heft indicated it has been somewhat difficult to track, particularly because other
organization names/numbers were placed on the materials. Councilman Ostrowski
asked if the opening of the new Senior Services Community Center would be helpful
for future meetings/conventions, to which Mr. Hert responded most favorably. In
addition, Councilman Ostrowski asked about the application of the additional 2%
hotel/motel tax, if approved. Mr. Hert indicated he was most hopeful the additional
tax would be approved by the legislature. If approved, the tax would not take effect
until July, 1995.
Councilman Braun inquired as to cruise ship promotion, and Mr. Heft reviewed
efforts underway to market the cruise ships. He indicated there are ongoing efforts
to encourage passage of national legislation which would allow more cruise ships into
the Port Angeles harbor, particularly those directly from Vancouver. If there is an
increase in cruise ships, the NOPVCB would concentrate on making sure everyone
sees as much of the Olympic Peninsula as possible. Councilman Doyle inquired as
to the number of conventions committed, and Mr. Hert indicated they only included
figures for those organizations the NOPVCB contacted and committed. Any other
such meetings arranged by other organizations would not be included in the statistics
provided. Councilmember McKeown asked how many are employed by the Visitor
& Convention Bureau; Mr. Heft responded four. She also asked about audits, and
Mr. Hert stated there will be audits conducted, particularly because of grant funds
received.
Arthur D. Feiro Marine Laboratory; Terry LaDuron, Director of the Marine Lab,
reported to the Council that the Marine Lab had over 22,000' visitors during the
summer, which is an all-time high. For the first time ever, they had to limit the
number of peOple coming into the facility. They could not have accommodated these
people without the support provided by the City enabling them to have qualified staff
on hand. The Marine Lab has many dedicated volunteers as well.
The Lab conducted a survey over the summer asking what types of exhibits or
activity attractions would entice visitors to stay another day in Port Angeles. Nine
hundred of the surveys were distributed during peak periods, with 590 being
returned. Some requested more recreational activities, such as harbor tours, musical
events, or waterfront parks with some type of feature or theme. The Lab's summer
programs encourage visitors to stay another day and to become repeat visitors. Mr.
LaDuron stated a goal of establishing a series of activities in which the entire family
could participate. The Marine Lab has been serving as an educational facility for
fourteen years and has also been filling recreational and tourist needs. The Lab is
dedicated to doing its part. to increase and enhance visitation to Port Angeles,
something which could not have been accomplished without the generous support of
the City. He stated that ongoing City support is vital.
Councilman Ostrowski inquired as to the establishment of policy, which Mr.
LaDuron indicated is generally set by Peninsula College. With regard to governing
City hotel/motel funds, decisions are made jointly by Mr. LaDuron and the College.
Councilman Doyle raised a question about admission fees, and Mr. LaDuron
indicated the entrance fee was raised from $1.00 to $2.00 without significant impact
to the revenues. Councilman Doyle asked if the Lab Board would consider a
possible increase to $1.50 in view of the need to decrease allocations of hotel/motel
taxes. Mr. LaDuron indicated the Board is giving this consideration at the present
time.
Juan de Fuca Festival of the Arts: Karen Haunan, Executive Director of the Juan
de Fuca Festival of the Arts, briefly recapped the history and goals of the Festival
since its inception in 1993. A four-day festival of artistic and cultural events was
held in May, involving local talent as well as regional, 'national, and international
talent. The purpose was to make visible the rich local talent and to put on an event
which would showcase the area and have positive cultural and economic impacts.
The Festival has grown significantly, and Ms. Harman delineated some of the events
organized thus far, to include the London Ballet Theatre, Ladysmith Black Mambazo,
and the four-day festival. A Judy Collins concert is being planned for a future date.
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December 3, 1994
Special Agency Because of these events, many people from outside the area have been attracted to
Requests (Cont'd) the area. As an example, Ms. Hannah advised the Council that the Northwest Chief
of Sunset Magazine was very struck with the May Festival and, as a result, he hopes '
to feature the Festival in the May issue next year before the Festival.
Ms. Harman noted.the City's hope for the future is tourism, and if the Juan de Fuca
Festival of the Arts can market and put on high caliber cultural events to attract
tourists to the area, the economy stands to gain a great deal, as does the community
in terms of cultural enhancement. Ms. Hannan reviewed trips made to view events
from other visual and performing arts organizations; she noted the favorable
economic impact to those areas. Similar to the Juan de Fuca Festival of the Arts,
most of the other organizations started out very small. They have since grown
immensely and have sizable budgets.
Ms. Hannah foresees the Festival as having significant growth potential. At the time
of incorporation, the budget was $1,500. The budget for 1994 is in excess of
$75,000, and the organization will have put on 6 events, with the support of many
volunteers. In 1995, the Festival hopes to have at least one salaried staff member
which will be crucial to future success. Ms. Hannah asked for the Council's ongoing
support and specified that the requested $19,500 would be used partially to fund a
staff member and partially to fund the expanded May festival. She asked the Council
to view this as an investment in the community for the future. Councilman
Ostrowski questioned the appropriateness of the City paying for a staff member, and
Ms. Hannan explained the importance of hiring staff, and she asked for the Council's
support of the funding request.
Logos Musical: Howard Gentry, President of the Board of Logos Musical, was
present to request $5,000 on behalf of Logos. Mr. Gentry addressed four categories
which he felt apply to the criteria for hotel/motel tax funding. The Logos Student
Exchange Program involves the visit of approximately twenty families in Port
Angeles each year, with visits to host families and checking out local schools.
During that time, the families use hotels and restaurants. The Student Internship
Program is recognized by accredited universities throughout the country. Port
Angeles serves as an internship site for music and recreation therapy, clinical and
counseling psychology, minority health specialties, drama, theater and performing
arts and, as such, students utilize hotels and restaurants while interviewing for work
study or clinical practicum. Guest artists spend a great deal of time in Port Angeles,
also utilizing hotel and restaurant services. As an example, Mr. Gentry cited the
visit in 1990 of the Mutsu City dancers. Funds assist in defraying rental costs of
facilities throughout town. Guest artists and cast members use hotel/motel services
as they commute from around the world.
Mr. Gentry indicated the Logos group contributes greatly to international public
relations. Further, they pay their own travel costs to other states and countries, all
with airline tickets purchased through local travel agencies. Consequently, after a
visit from the Logos group, return guests purchase tickets and are inspired to take
a deeper look at the Peninsula. Mr. Gentry reported that Logos newsletters reach
audiences in 28 different countries. When Logos performers stay in host homes,
these host families form a deep attachment to citizens participating from this area.
Families represented by education and health and human services in the other
countries have the power to stimulate change in their nations, but they have the
opportunity to empower spending in hotels and restaurants in Clallam County. The
members of Logos feel they represent the birth of a dream from the people of Port
Angeles, as is evidenced by the many songs written and then translated into other
languages. As an example, Mr. Gentry advised the Council of these songs being
sung at the Sydney, Australia Opera House. He expressed hope that the City
Council's pride in its citizens would result in funding for the Logos group. In
addition, Mr. Gentry indicated Logos needs a different kind of support in that they
need to know the City has an investment of emotion and gratitude for its pioneers.
Friends o[the Fine Arts Center: Mira Foley spoke on behalf of the Friends of the
Fine Arts Center, who are requesting hotel/motel tax funding in the amount of
$3,000 to be used for the publication of a new informational brochure. The supply
of brochures is nearly depleted and is in need of being updated.
Ms. Foley reported that the current Chihuly exhibit has attracted 100 visitors per
day. Visitors have come to visit the Peninsula specifically because of this exhibit.
Past City funding assisted in the publication of the brochure presently being used.
Jake Seniuk, Director of the Fine Arts Center, reviewed the need for an updated
brochure, which will incorporate more color and photos. He indicated the Fine Arts
Center is drawing a significant destination audience, particularly for the Chihuly
exhibit, and he expects this will continue in the coming year. Ms. Foley felt the goal
of the hotel/motel taxes is to draw people to the City, something which has been
accomplished at the Fine Arts Center. She requested the Council's support. Mayor
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CITY COUNCIL MEETING
December 3, 1994
Special Agency Sargent inquired as to whether the hours would remain Thursday through Sunday,
Requests (Cont'd) and Ms. Foley indicated the hours would remain the same until the time a docents
program is ready to be instituted. Once it is in place, the Center can be open longer.
Docents are being trained in this regard at the present time. Mayor Sargent indicated
the Chihuly exhibit is probably the best exhibit seen in the Center, and she
encouraged everyone to visit the Center.
Mayor Sargent indicated the hotel/motel tax funding requests total about $150,000,
and the Council's task is to determine funding levels which would include cuts of
about $50,000. She noted it would not be an easy task, and she then expressed
appreciation for all the presentations.
ADJOURNMENT: The meeting was adjourned at 10:55 a.m.
Clerk q c~ -- /- -- --
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