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HomeMy WebLinkAboutLTAC Agenda Packet 09182019LODGING TAX ADVISORY COMMITTEE AGENDA September 18, 2019 at 3:00 pm City Hall Council Chambers 321 E. Fifth Street, Port Angeles, Washington I. Call to Order II.Public Comment III.Ratify Motion – Amend Council Resolution Regarding Event Grant Time Frames Action Item – Motion with recommendation to Council IV.Proposed Budget Allocation for Lodging Tax Fund 2020 30% to capital 5% Master Plan priorities 20% to marketing 35% to operations 10% to events Action Item – Approve Budget Allocation V. Discuss Goals & Priorities – of Lodging Tax Advisory Committee VI.Review Application Criteria and RFP Process for 2020 Projects VII.Update on County Master Planning Effort VIII.Adjournment -1- RESOLUTION NO. A RESOLUTION of the City of Port Angeles, Washington, adopting policies to ensure a balanced approach to funding promotions, events, operations and capital investments from the City’s Lodging Tax Fund. WHEREAS, on July 18, 2018, City Council conducted a work session to discuss lodging tax fund distributions, reserves for capital projects, and event grant awards; and WHEREAS, City Council agreed that no less than 25% of annual lodging tax expenditures should be dedicated to tourism-related capital projects, and in addition, no less than 5% dedicated to capital reserves; and WHEREAS, it was agreed that in allocating lodging tax funds for event grants, priority should be given to events held between mid-October and mid-May; and WHEREAS, the City should include in event grants sufficient funds for City right-of-way permits, traffic control, and utility expenses associated with events receiving awards; and WHEREAS, the City should ensure efficient and timely execution of tourism-related contracts; and WHEREAS, the policies adopted in this Resolution enable the City to achieve a balanced and sustainable approach to promoting our local tourism economy. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: September 18, 2019 Pg. 1 -2- Section 1 - Policies. The City Council approves and adopts the following policies regarding the application and budgeting of lodging tax funds. Guided Policy: The allocation and administration of lodging tax funds shall be the following: 1. Allocate no less than 25% of annual lodging tax receipts to capital projects, and in addition, no less than 5% to capital reserves. If in any year, the amount of lodging tax fund distributed to capital projects is less than the 25%, the difference shall be set aside for capital projects through reserves. 2. In determining the recipients and amounts of event grants, priority shall be given to events held Mid-October through Mid-May. The Lodging Tax Committee is expected to consider this timeframe relative to the percentage of grants awarded and dollars received. 3. For events receiving grants of lodging tax funds, in addition to the funds awarded to support the event, additional funds shall be allocated for City right-of-way, traffic control, and utility expenses in conjunction with events receiving awards. 4. To expedite the efficient and timely execution of lodging tax allocations, the City Manager is hereby authorized, and the right is hereby delegated to the City Manager, to execute contracts and agreements. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of ____________, 2018. __________________________ Sissi Bruch, Mayor ATTEST: _______________________________ Kari Martinez-Bailey, City Clerk APPROVED AS TO FORM: ______________________________ William E. Bloor, City Attorney PUBLISHED: , 2018 By Summary September 18, 2019 Pg. 2 Total 2020 projected revenues 707,800 Expenditures Per Allocation: Capital 30%212,340 Master Plan priorities 5%35,390 Marketing 20%141,560 Operations *35%247,730 Events 10%70,780 Total 100%707,800 Total amount of reserves 457,804 Less 25% reserve balance, plus 5% for capital res 212,340 Total excess reserves available 245,464 * There are currently $136,700 in fixed operating costs for the Lodging Tax fund. These include administrative services, debt payments and transfers to Parks & Recreation. 2020 Lodging Tax Available Funds September 18, 2019 Pg. 3 1 SAN JUAN COUNTY 2020 LODGING TAX FACILITIES GRANT PROGRAM I. DESCRIPTION San Juan County has established a tourism facilities program, funded by a portion of the revenue collected under the state Lodging Tax excise statutes. The purpose of this posting is to seek proposals from qualified entities interested in: 1) Funding single project proposals concerned with acquiring, improving or developing County facilities for enhancing the tourism experience; AND/OR 2) Funding the operation and promotion of tourism facilities that enhance the tourism experience AND/OR 3) One-time grants to establish or enhance events that draw tourists AND/OR 4) Projects that carry out the tourism-related goals of the adopted San Juan County Lodging Tax Advisory Committee (LTAC) Master plan. II. APPLICANT QUALIFICATIONS FOR GRANT TYPES Amendments to the Lodging Tax program adopted by the Washington Legislature in 2013 permit Lodging Tax grant funds to be awarded to Municipalities (the County), nonprofit organizations described under U.S.C. Sec. 501 (c)(3) and 501(c)(4), and visitors bureaus or destination marketing organizations for the following purposes: 1) Supporting marketing and operations of special events and festivals designed to attract tourists. 2) Supporting the operations and capital expenditures of tourism-related facilities owned or operated by San Juan County. 3) Supporting the operations of tourism-related facilities owned or operated by qualifying (see above) nonprofit organizations. Note: The 2013 Amendment requires applicants to estimate how many individuals their project or operation will attract from more than 50 miles away and stay in paid lodging. At the end of the grant period, the legislation requires grantees to report on their success in attracting those visitors. September 18, 2019 Pg. 4 2 III. BACKGROUND San Juan County is one of the most desirable tourist destinations in the country due to its natural beauty and variety of outdoor activities. It currently experiences an uneven tourism year, with a strong summer season, and substantial unused lodging and facility capacity in the remainder of the year. This was recognized in a 2002 report of the Lodging Tax Advisory Committee in two important ways – first, in a recommendation of an additional 2% special Lodging Tax (that was enacted); and second, that the special lodging tax be used to promote tourism year-round. The corollary to the need for year-round promotion is a planned, logical and integrated facilities and amenities program that provides an attractive “package” for the special tax to promote. The 2020 process is intended to be an evolution and refinement of the prior facilities investments to date. In the current grant offering, San Juan County is interested in a cohesive investment model in which the grants support the goals of a long-range tourism plan. In the cohesive investment model, the County will contract directly with the entities, selected under this process, which have submitted in the four identified categories. In these grants, accountability and return on the expenditure of public monies is important. It is also important that these grants emphasize investments that can be supported by the tourism promotion program (special 2% lodging tax). It is especially important that special emphasis be given to those facilities, events and facility operations that enhance tourism throughout the year. IV. PROJECT DESCRIPTION Total available funding for 2020 will be approximately $ 1,023,533; however, applicants should recognize that approximately 75% of those funds are traditionally used to sustain operations of Historical Museums, Performing Arts Centers and Public Parks. In recent years, first time grants have generally ranged from $1,000 to $12,000 with a strong preference for non-operational grants (e.g. one-time start-up expenses, advertising, or production of special programs, rather than ongoing expenses such as staff salaries). The expected outcome of the funded activities is to increase economic activity in San Juan County in 2020 and beyond through the overnight lodging of tourists, through tourism-related expenditures, and construction of tourism-related facilities. Program categories are: o Tourism facilities capital expenditures (County owned or operated facilities only):  Construction  Improvement  Renovation o Grants for Tourism Events and Festivals designed to attract tourists o Grants for operation of existing eligible tourism facilities that meet the criteria of this RFP and the long-range tourism plan (including, but not limited to historic museums, performing arts, visual arts) September 18, 2019 Pg. 5 3 o Special Investments that help to accomplish the goals and objectives of the LTAC Master Plan V. 2020 AREAS OF EMPHASIS Funded projects will be expected to achieve the following objectives:  Advance the priorities set in the LTAC Master Plan (Available on County web site AT: http://sanjuanco.com/614/Lodging-Tax-Advisory-Committee).  Emphasis on tourism may include a variety of methods: i. Development of key community assets that function as point destinations, or venues for multi-purpose events, and serve on a year-round basis; ii. Special Events or festivals that exemplify the natural resources, cultural offerings or history of the San Juan Islands; iii. Meetings or retreats that focus on the “best of the San Juan Islands” as identified above;  Developing innovative opportunities (i.e. new events, interesting partnerships); creativity and synergy are encouraged. Use of capacity in existing community facilities is encouraged.  Improving the tourist/islander relationship/enhancing the tourism experience:* i. Visitor education events (i.e. eco-tourism, agri-tourism) ii. Community involvement strategies iii. Improved effectiveness of coordinated transportation and trail linkages including streetscapes and signage  Projects that promote coordination and cooperation in tourism activities  Projects that demonstrate countywide benefit *(Note: The category of enhancing the tourism experience is based on the increasing recognition that the tourist is purchasing “experience(s)”. The concept is to encourage facilities, events and tourism facility operations that heighten, expand, improve, or lengthen the tourism experience with the idea of encouraging longer stays or more frequent returns.) VI. SELECTION PROCESS All applications will be received by the County Council Staff, which will make a preliminary evaluation as to whether they meet the minimum eligibility requirements, and then forwarded to the LTAC. Applications received after the deadline will not be accepted. Applications that do not meet minimum eligibility requirements will not be evaluated. Those applications that do meet the eligibility requirements (below) will be evaluated by the LTAC which will make recommendations to the County Council. Qualified applicants will have an opportunity to make a presentation to the LTAC during the evaluation process. After receiving LTAC’s recommendations, the Council will consider the grants recommended by LTAC and may choose to increase or decrease the recommended funding levels. At its discretion, the Council may invite applicants to make a presentation prior to making its funding level decision. September 18, 2019 Pg. 6 4 The Council generally makes its final decision on grant awards in the mid to late-summer months, depending on the grant submission schedule. After Council approval, County staff will prepare contracts with the sponsors of all approved projects. All contracts will include a requirement for liability insurance, that the sponsor submit a final report at the end of the project, and may include a requirement that periodic reports be submitted. The committee may elect to convene for the purpose of considering off-cycle requests for LTAC funds which meet the legal requirements for lodging tax funding, provided funds are available, for projects that meet the priorities for tourism development as provided herein. Any off-cycle request(s) shall be considered using the same application process and procedure as the annual process, beginning with advertising for RFP. Note: Payment cannot be made for expenses incurred prior to the 2020 grant year. VII. SELECTION CRITERIA The criteria used by the LTAC to evaluate and rank the applicants are as follows below. A. Scope of Work: This is the project description. It will clearly describe the type of application, the category of funding sought, the value of the project to tourism in the San Juan Islands and the relative applicability to year-round tourism. B. 2020 Areas of Emphasis: Lodging tax grants should help the LTAC and San Juan County achieve its goals and priorities as defined in the LTAC Master Plan. C. Community Economic Impact: Lodging Tax grants should be directed to those facilities and events that generate maximum economic benefit. This will describe the anticipated economic value of the project. The successful proposal(s) will show specific and comprehensive strategies to draw visitors including multiple islands, areas and visitor options. Successful proposal(s) will show strategies to create and lengthen overnight stays, in line with the goals and definitions set forth in RCW 67.28 D. Available Resources: This will describe how your project taps into community support, capital and labor to make a successful project. It will demonstrate the relative reliance on lodging tax funds of your project. E. Objectives: 1. Coordination: Coordinate with other events, facilities, promotion and marketing events. 2. Use Special Natural Features and History: Show how your project takes advantage of the natural, green, eco-friendly and special cultural attributes of the San Juan Islands. September 18, 2019 Pg. 7 5 3. Innovation. Does the project represent a new or unusual approach to furthering the goals of the grant program? F. Build on Community Assets. Does your project distinguish and promote the San Juan Islands in areas such as: visual or performing arts, area history, natural amenities -- including the special marine environment, other special facilities? G. Countywide Benefit. Tourism activities that provide value to all county residents and visitors H. Cost-effectiveness. Projects that offer more value for the investment of these public funds will be rated higher. Will the project be an efficient, economical use of the funds? How will this be shown or measured? a. Degree of Participation. What percentage of the project’s costs will the proponent pay for with granted funds? b. Likelihood of Participation. In a scenario with multiple fund sources, how clearly does it appear that the proponent’s share of the funds will be available when required? I. Clarity. Are the components of the project broken into a progression of logical steps with dates or milestones when each will be undertaken and/or completed? Proposals should include milestones, benchmarking, and must include performance measures that can be tracked and reported to show effectiveness. Proposals should abide by the word limits as noted on the application form. Applicants are asked to refrain from attaching supporting documentation and marketing samples. J. Cooperative Nature. What kind and degree of inter-organizational partnership does the project exhibit? Proposals should show strategies to partner, pair, and coordinate to increase benefits to all. K. Self-evaluation. Benchmarking and performance evaluation are an important part of judging an effective investment in the project. Does the applicant provide for an adequate method of evaluating the effects of the proposed project upon completion? How will the applicant do this and report it to the grantor? This must meet the requirements set out in RCW 67.28 as amended in 2013. L. Scale of Project. Is the project of such scale that the applicant can be reasonably expected to complete it by the end of the project timeline? VIII. ELIGIBILITY A. Proponent Eligibility Applications may be submitted by any non-profit entity, any public agency, or any group of eligible organizations (Please review legal requirements set out by the state in RCW 67.28 as revised - effective July 1, 2013). September 18, 2019 Pg. 8 6 San Juan County does not discriminate on the basis of race color, national origin, sex, religion, age or disability, and its contracts require the same of its contractors. B. Project Eligibility State Requirements – The most basic eligibility requirement is that the applicants demonstrate clearly and convincingly that funding of the proposed project would be used in compliance with the State law, which governs the use of hotel-motel funds. Funding for federal projects is not permissible. Chapter 67.28, RCW provides authority for cities and counties to adopt a lodging tax of up to four percent of lodging charges made by hotels, motels, rooming houses, tourist courts, trailer camps or any similar charges for a license to use real property. The County currently levies a tax of four percent with two percent in a special account reserved for tourism facilities and two percent in a special account reserved for promotion of tourism. Eligibility will also be measured against any relevant Attorney General or State Auditor opinions. County Requirements - The County uses tax revenue each year for grants that will clearly meet the State’s requirements and falls within the purposes set out in the LTAC Master Plan. In addition, the County has established the following eligibility requirements for all projects: a. Project Requirements: i. The project must be entirely within the corporate limits of San Juan County. ii. The project must be specifically related to tourism in San Juan County and prominently mention the San Juan Islands in all printed materials; iii. The project must be designed for the purpose of attracting off-Island visitors to the County; b. Contracting Requirements: i. All contracts include a normal requirement for liability insurance of at least $1,000,000.00 per incident, with San Juan County named as an additional insured on the policy or a written waiver of this requirement from County’s risk manager; ii. Project costs can not be paid in advance with grant money; that is, the sponsor must expend its own funds on approved items and seek reimbursement under the terms of the contract that will be signed by the County. (Generally, funds awarded primarily for year-round operating expenses will be dispersed quarterly). The County will periodically review reimbursements and monitor for compliance; iii. Project costs incurred prior to both the grant approval and execution of a written contract with the County will not be reimbursed; September 18, 2019 Pg. 9 7 iv. Funding may be requested for expenditures in only one year’s budget of an event/festival project. A facility, operations or special investment project may be proposed for one or more years; however RCW 67.28 does not permit the funding of capital expenditures on non-publicly owned facilities. County approval will be, in part, contingent on prior successful performance and meeting of project goals in other projects. Applications that seek the “risk” of multiple years’ investment must sell the “reward” that would not be achieved with single year appropriations. Keep in mind that the stability in the funding of your organization is not the same as the stability of the lodging tax fund. v. If the project involves co-sponsors, a written commitment must be submitted from each co-sponsor, signed by a person with authority to obligate that sponsor; vi. Every project must have one designated individual to act as a contact for the project throughout the duration of the project and that person must have authority to obligate all sponsoring parties. c. Compliance Requirements: i. If the applicant is a non-profit corporation, a copy of its current Annual Report filed with the Office of the Secretary of State must be provided and if the non-profit corporation claims to be a tax exempt charitable, religious or educational organization, a copy of the IRS 501 C3 or C6 recognizing that status must be provided, as well as the most recent IRS return if applicable; ii. All applicants must provide financial statements accounting for the use of grant funds as required in the recipient contract. IX. APPLICATIONS Each application is to develop and outline one project which meets these requirements and provides an economic benefit to San Juan County. The specific amount of the applicant’s proposal is open, to be defined by the applicant. Applications are available at the Office of the Council Office, located at 55 Second Street, 1st Floor, Friday Harbor, Washington. Applications are also available on the County’s website at http://sanjuanco.com/614/Lodging-Tax-Advisory-Committee LTAC encourages applicants to submit applications electronically (as PDF, word processing or other generally readable files). Completed applications will be accepted and processed by the following schedule: September 18, 2019 Pg. 10 8  Advertisement: Wednesday, June 19 and June 26, 2019. RFP Posting to the County website: No later than June 19, 2019.  The Lodging Tax Advisory Committee will hold a pre-application meeting on Monday, July 15, 2019 at 11:45 am in order to answer questions, provide guidance and to assist applicants in the process. If you plan to attend this meeting, please RSVP by July 5, 2019 so that we may better plan the day.  Final Acceptance of Proposals: RECEIVED BY August 9, 2019. Proposals received after that date will not be accepted. It is the responsibility of the applicant to verify that each application, however it was transmitted, has been received.  Review of Applications/Presentations to LTAC: September 17 and 26, 2019 (Tentative - applicants will be contacted to schedule appearance)  Final LTAC Funding Recommendations to County Council: approximately October 1, 2019  Council Deliberations: Anticipated October 8, 2019. Applications must be received by the end of business on Friday, August 9, 2019. The applicant is responsible for confirming timely delivery. Applications must be delivered to: Email Deliveries: sueko@sanjuanco.com Hand Deliveries: San Juan County Council Office 55 Second Street 1st Floor Friday Harbor, WA 98250 Mail Deliveries: San Juan County Lodging Tax Promotion Proposals 350 Court Street #1 Friday Harbor, WA 98250 X. MONITORING All funded projects will be monitored for progress and consistency with the scope and timeline of the project, as outlined in the application. Recipients must file required progress/financial reports in a timely manner. The 2013 legislature placed some prescriptive requirements on reporting (including a requirement to quantify how many individuals were attracted from more than fifty miles away and spent the night in paid lodging), and the reporting of expenditures and activities shall meet those requirements. In the event the sponsor of any approved project fails in a material way to perform under the terms of the signed contract, the County Council has the right to suspend or terminate funding for the September 18, 2019 Pg. 11 9 remainder of the project. However, the Council can make no such decision until the sponsor has been notified of the apparent failure and given an opportunity to address the Council. XI. REIMBURSEMENT FUNDING Funds available under this program are revenues received by the County from the Transient Rental Income section of Washington State Excise Tax levied on the lodging industry. LTAC, appointed by the County Council, is the advisory body for these funds. Generally, funds awarded primarily for year-round operating expenses will be dispersed quarterly without a requirement for presenting invoices. For all other grants, reimbursements will be made to the applicant within approximately 30 days of submittal of invoices. Requests for reimbursement for approved costs shall be in writing and shall have supporting documentation to verify the expenditure of the funds included in the request. All requests shall be verified as complete and accurate by the project sponsor. Applicant must submit invoices for payment by no later than December 31, 2020. The applicant is responsible for all incurred financial obligations (i.e., applicant pays vendors, County pays applicant). Applicants are required to maintain original receipts and financial records relative to funds awarded per Washington State requirements. Applicants are liable for funds not used in accordance with the award. September 18, 2019 Pg. 12 LTAC RECENT AWARD HISTORY 2015 2016 2017 2018 2019 1 Agricultural Guild Project 15,225 15,000 2 Agricultural Resource Committee 3,000 10,000 3-5 San Juan Performing Arts Centers 90,000 94,500 104,000$ 105,000 114,000 6-8 Historical Museums 67,500 70,875 $ 79,000 99,000 101,475 9 Conservation District - Farm Tours 5,000 10 DHPRC Trails - (thru Public Works Dept)50,000$ 50,000 11 Friends of the San Juans Maritime History 8,500 12 Friday Harbor Film Festival 5,500 10,000 8,740$ 7,000 8,500 13 Historic Strawberry Barreling Plant 10,000 14 Island Stage Left 5,530 5,200 15 KWIAHT 1,500 2,900 2,000 16 Land Bank/Terrestrial Mgr Visitor Study 120,164 76,000 17 Lime Kiln State Park 5,000 18 Long Live the Kings Glen Wood Hatchery 10,000 9,000 19 Lopez Center Community & Arts-Facility 14,500$ 24,200 20,000 20 Lopez Chamber (Sponsored Project)20,000 2,700 21 Lopez Chamber (Sponsored Project)1,575 1,775 22 Lopez Island Grange - Island Life 13,445 12,500 23 Lopez Island Conservation Corp.6,000 10,000 24 Lopez Island Historical Society - (Project)15,600 25 Master Gardener Foundation 3,500 26 Orcas Chamber - Birding Festival 5,800 5,100 0 27 Orcas Chamber - Eastsound Village Green 5,000$ 28 Orcas Chamber - Shakespeare Festival 3,500 4,200 29 Orcas Chamber - Wayfind Signage 1,500$ 30 Orcas Chamber Music 2,700 31 Orcas Comm Foundatn - Eastsound Landsca 7,600 32 Orcas Historical Museum - Exhibit Shed 7,500$ 33 Orcas Island Farmers Market 3,500 34 Orcas Island Off-Leash Area 21,000$ 35 Orcas Lit Fest 10,000 10,000 36 Orcas Open Arts (Imagine Convergence)10,000 37 Orcas Open Arts (Orcas Anthology)12500 38 Orcas Open Arts (Orcas Intn'l Film Festival)10,000 15,000$ 20,000 17,000 39 Orcas Open Arts (Orcas Island Jazz Festival)5,000$ 5,000 5,000 40 Orcas Open Arts (TedX Orcas Island)10,300 10,000$ 41 Orcas Theatre - (Project)20,000 20,000 42 Parks & Fair 200,000 207,000 $246,000 284,450 285,000 43 Parks & Fair for Island Stage Left - Lighting 10,025 44 Parks & Fair with BLM - Canoe Journey 6,900 45 Parks & Fair - Eastsound Village Green 26,700 46 Parks & Fair - Eastsound Playground 55,000 47 Patos Island Lighthouse 10,000 5,000 48 Port of FH at FH Airport with US Customs 25,000$ 49 San Juan Community Theatre - Facility 25,000 20,000 50 San Juan County - Orcas Landing 50,000$ 51 San Juan County - (Special Project)6,200$ 20,000 93,900 52 San Juan County - Deer Harbor Parking 200,000September 18, 2019 Pg. 13 53 San Juan Historical Museum (Project)12,000 54 San Juan Islands Farmers Market 2,500 2,750 55 San Juan Islands Sculpture Park 3,800$ 56 SJI Museum of Art 10,000 12,000 7,950$ 57 SJI's Arts Council - 5,000 2,500 58 SJI's Libraries Salish Speaker Series 6,000 59 TEDx San Juan Island 10,000$ 60 WA State Parks Fire Rings 2,250 61 Hold for Affordable Housing tourist related 100,000$ 62 Funding to Chambers 36,000 80,000$ 150,115 129,210 63 TOTAL 406,500 513,800 850,190$ $1,259,779 1,080,085 September 18, 2019 Pg. 14 San Juan County Lodging Tax Advisory Committee (LTAC) Master Plan for the Lodging Tax Facilities Grant Program Mission: To invest in activities and facilities that increase tourism related revenue through a sustainable visitor experience. Goals: 1. Fully utilize existing facilities 2. Promote creative uses of existing facilities 3. Promote partnerships through coordination and cooperation 4. Improve visitor experience 5. Improve visitor/resident relationship 6. Focus on unique San Juan experience 7. Emphasize County wide benefits 8. Cooperate with Town of Friday Harbor’s LTAC 9. All recipients follow state and local laws in collecting and remitting taxes and fees when applicable Funding Philosophy  LTAC will annually evaluate the institutions it has traditionally supported and pledges that – barring extraordinary circumstance – it will not dramatically decrease its support for these institutions without at least a year’s warning. Those institutions include:  County Parks  Community Theaters  Historical Museums  County Fairgrounds LTAC will consider recommending multi-year awards to these institutions, on a percentage basis, in order to facilitate their long-range planning and for time efficiency for the institutions and LTAC alike. In the event the funding for year(s) beyond the current year sees a dramatic decline, LTAC reserves the right to adjust the award for future years accordingly.  Recognizing its limited ability to provide ongoing operating funds to organizations, LTAC will emphasize grants for fixed -term projects, such as: September 18, 2019 Pg. 15  Start-up funds for promising organizations or events. The Lodging Tax Advisory Committee has the discretion to fund projects. The Committee’s operating philosophy is to fund projects for up to three years, with the right to extend on a year -by-year basis.  Onetime grant funds for facilities improvement projects for County owned or operated facilities only.  Seed money to conduct research and develop concepts and grant applications that dovetail with LTACs priority areas.  Lend support to a diverse range of sustainable activities to encourage visitors to enjoy longer stays and return often.  Help establish a visitor friendly infrastructure including such things as signage, restrooms, transportation, and information on attractions and facilities.  The committee may elect to convene for the purpose of considering off-cycle requests for LTAC funds which meet the legal requirements for lodging tax funding, provided funds are available, for projects that meet the priorities for tourism as provided herein. Any off-cycle request(s) shall be considered using the same application process and procedure as the annual process, beginning with advertising for RFP.  Endeavor to use or reserve 10% of its available grant funds annually to fund new or innovative proposals. No more than 2 projects will be funded from these reserved funds. Areas of Emphasis LTAC has historically given priority to funding proposals that encourage and enhance tourism beyond the peak months of July and August  Promoting tourism that typifies the “best of the San Juan Islands” – its natural beauty, geology, outdoor activities, anthropology, agricultural attractions, lifelong learning opportunities, history, culture and the arts.  Strategies include:  Development of key community assets that function as point destinations, or venues for multipurpose events, and serve on a year round basis;  Special Events or festivals that exemplify the natural resources, cultural offerings or history of the San Juan Islands;  Meetings or retreats that focus on the “Best of the San Juan Islands” as identified above;  Creating partnerships and synergies with existing organizations to develop and promote attractions and events for visitors. September 18, 2019 Pg. 16  Developing innovative opportunities  Use of capacity in existing community facilities is encouraged;  Improving the tourist/islander relationship/enhancing the tourism experience*  Visitor education events (i.e. ecotourism, agri-tourism)  Community involvement strategies  Improved effectiveness of coordinated transportation and trail linkages including streetscapes and signage  Supporting projects that promote coordination and cooperation in tourism activities  Supporting projects that demonstrate countywide benefit *(Note: The category of enhancing the tourism experience is based on the increasing recognition that the tourist is purchasing “experience(s)”. The concept is to encourage facilities, events and tourism facility operations that heighten, expand, improve, or lengthen the tourism experience with the idea of encouraging longer stays or more frequent returns.) 2020 LTAC PRIORITIES FOR TOURISM DEVELOPMENT (Listed in alphabetical order)  Arts o Assist arts festivals and events to get underway with funding, and encouraging partnerships with existing facilities.  Fairgrounds o Support efforts to enhance and use the fairgrounds and its facilities for visitor related activities beyond the fair itself.  Parks o LTAC considers County Parks critical and necessary to the tourist industry and to the County’s economy. o It will actively support efforts to provide an alternative, sustainable funding system for the County’s parks.  Place-based Food o Support food related markets, festivals and events September 18, 2019 Pg. 17 o Support facilities and programs to expose visitors to locally grown and/or prepared food, wine and other beverages.  Restrooms o Assisting in the development of a “comfort station” plan with standards, identification of existing restrooms available to the public, indications of where more restrooms are needed and a strategy for financing them.  Museums & Theatres o Encouraging partnerships with sponsors of other local activities and events to provide income and help communities take full advantage of their facilities.  Seasonal Tourism Industry Employee Housing  Signage o Encourage the creation and installation of “welcome” and directional signs identifying communities and attractions. Signs should reflect the County’s unique culture and draw on the talent of its community of artists. (Proposals must comply with San Juan County Code).  Transportation o Encourage development of transportation options for visitors  Wildlife & Environment o LTAC will support projects to provide visitors with nonintrusive opportunities to enjoying the County’s abundant land, air and marine wildlife and environment – including such things as birding, nature hikes and marine activities. September 18, 2019 Pg. 18 ACTION ITEMS FOR LODGING TAX ADVISORY COMMITTEE  Establish priority areas of concern and encourage applicants to come up with creative approaches  Designate a percentage of LTAC funds to devote to an area of interest or project (e.g., funding artists to do visitor-oriented signage)  Conduct a bidders' conference after issuing an RFP for a project  Stay in communication with other committee members  Establish a rolling five year funding plan to be updated annually  Participate in the creation of a tourism master plan for the San Juan Islands September 18, 2019 Pg. 19 LTAC 2020 Grant Proposal Worksheet Organization Project Name Amount Requested PAPER REVIEW PRESENTATION RATING CRITERIA POINTS POINTS 1. Will their marketing attract off-island visitors to Friday Harbor? (MAX 10 POINTS) (MAX 10 POINTS) 2. Will their marketing materials specifically and predominantly promote Friday Harbor? (MAX 10 POINTS) (MAX 10 POINTS) 3. Is it likely that their marketing and/or event could result in longer lodging stays and/or return visits? (MAX 10 POINTS) (MAX 10 POINTS) 4. Is this a shoulder season/off-season event? (MAX 10 POINTS) (MAX 10 POINTS) 5. Is the event and marketing well-structured with measurable and attainable goals? (MAX 5 POINTS) (MAX 5 POINTS) 6. Will they coordinate their marketing and event with that of other organizations? (MAX 5 POINTS) (MAX 5 POINTS) 7. Is this a new, unusual, innovative, and/or proven approach to tourism? (MAX 5 POINTS) (MAX 5 POINTS) 8. Is this proposal an efficient, economical use of LTAC funds? (MAX 5 POINTS) (MAX 5 POINTS) TOTAL POINTS AWARDED (maximum of 60 points): Should this project be considered for funding? YES / NO YES / NO Recommended amount of funding: $ $ NOTES: ____________________________________________________________________________________________________________________________ September 18, 2019 Pg. 20 Goals and Priorities for Lodging Tax Grant Programs Lodging Tax Advisory Committee (LTAC) Vision: To best utilize Lodging Tax funds to create a welcoming and inviting community with activities and facilities that increase tourism related revenue through a sustainable visitor experience. Goals: 1. A healthy and diverse tourism sector that continues to thrive. 2. Fully utilize and promote creative uses of existing facilities. 3. Improve the quality of experience and relationships for tourist and residents while diminishing any negative impacts from tourism-related activities and traffic. 4. Promote partnerships and increase tourism by concentrating on priorities identified by both residents and the tourism industry. 5. Focus on our unique Port Angeles assets that make us a premier destination for environmentally and fiscally sustainable recreation and tourism. a. Transformational Travel (authentic and personalized) b. Have economic measures 6. All tourism in the peninsula supports and benefits each other. Cooperate and collaborate with all, including Clallam County. Funding: The expected outcome of the funded activities is to increase economic activity in Port Angeles in 2020 and beyond through the overnight lodging of tourists, through tourism-related expenditures, and construction of tourism-related facilities. Program categories are:  Tourism facilities capital expenditures – 25% plus a 5% set aside: o Construction o Improvement o Renovation  Marketing – 20%  Tourism Events and Festivals designed to attract tourists – 10% o 75% of Event Grant funds are allocated for off-peak events??? o 15% of Event Grant funds are not allocated and are flexible??? o Grant funds are capped at $5,000 for each event???  Operation of existing tourism facilities – 35% o 90% of City staff administration for …..(Youth sports?) o $20,000 allocated for Events to cover City right-of-way, traffic control, and utility expenses.  Plan priorities – 5% The Committee’s operating philosophy is to:  Fund projects or events for up to five years, with the right to extend on a year-by-year basis. Events are encouraged to become self-sustaining by year 5. September 18, 2019 Pg. 21  Lend support to a diverse range of tourism sustainable activities to encourage visitors to enjoy longer stays and return often.  Help establish a visitor friendly infrastructure including such things as signage, restrooms, transportation, and information on attractions and facilities.  Recognizing its limited ability to provide ongoing funds to organizations, LTAC will emphasize grants for fixed-term projects, such as: o Start-up funds for new or innovative proposals for organizations or events. o Grant funds for facilities improvement projects for City owned or operated facilities. o Seed money to conduct research and develop concepts and grant applications that dovetail with LTACs priority areas. General Focus Areas:  Time of Year – LTAC will give priority to funding proposals that encourage and enhance tourism during the off-peak time as stated below. o January – May with exceptions for Martin Luther King’s Day and Presidents Weekend due to AAU basketball tournaments. o June – the first two weeks of June with exceptions for the first weekend for North Olympic Discovery Marathon. o July – any Sunday – Thursday o August – Sunday’s o September – any date outside of Labor Day weekend o October – any date outside of Crab Festival. o November – December  Promotion – Promoting tourism that highlights Port Angeles assets – its natural beauty, geology, outdoor activities, anthropology, community events, lifelong learning opportunities, history, culture and the arts. Strategies include: o Development of key community assets that function as point destinations, or venues for multipurpose events, and serve on a year-round basis; o Special events or festivals that exemplify the natural resources, cultural offerings or history of Port Angeles; o Meetings or retreats that focus on our assets; o Creating partnerships and synergies with existing organizations to develop and promote attractions and events for visitors.  Developing innovative opportunities o Use of existing community facilities is encouraged; o Improving the tourist/resident relationship while enhancing the tourism experience, recognizing that the tourist is purchasing “experience(s). The concept is to encourage facilities, events and tourism facility operations that heighten, expand, improve, or lengthen the tourism experience with the idea of encouraging longer stays or more frequent returns.  Visitor education events (i.e. ecotourism)  Community involvement strategies  Improved effectiveness of coordinated transportation and trail linkages including streetscapes and signage September 18, 2019 Pg. 22  Supporting projects that promote coordination and cooperation in tourism activities  Supporting projects that demonstrate countywide benefit 2020 LTAC Priorities for Tourism Development - LTAC came up with these 6 priorities and they are ranked as to their importance. There was a tie for second place so there are two number 2 priorities. Zero means that they did not make the top 3 1. Infrastructure (feeling that this place is being cared for / pride of ownership). Projects include, but are not limited to bathrooms, sidewalks, emergency phones, overall maintenance (clean and painted) of streets and buildings, signage, tables and chairs, safe environment (needles, homeless), zig zag, and pier railings. 2. Transportation 2. Experiences – unique, etc. a. Paddle lessons b. Bikes to ride c. Cultural d. Historical 3. Digital presence (including web, apps, booking, etc.) 0. Need for one Visiting Bureau to handle all event and visitor arrangements – like coordinating hotels for a large conference. 0. Better coordination – county and downtown association Other areas of interest are:  Tourism industry employee housing  Tourism related solid waste disposal Rating Criteria for Grants: Events:  There will be a weighted factor that elevates scores for new and off-peak events.  Events that request over $5,000 will be required to submit the following information: o Profit and loss statements 60 days after event is completed. o The actual numbers of attendees in comparison to the predicted numbers 60 days after event is completed. o Feedback received on the event o Were invoices/materials turned in on time? o Did “Sponsored by Lodging Tax” appear in their marketing? Event applications need to fill out the following table Status (?) Funds Requested September 18, 2019 Pg. 23 Number of expected attendees Number of expected lodging stays Time of Year Age of Event Age of Organization Category: (Event, Capital or Marketing) Does Event address LTAC 2020 Priorities CITY ADMINISTRATION INFORMATION Past Requests Past Invoices turned in on time Completed grant report on time If request was over $5,000, was profit/loss statement turned in on time Actual numbers of attendees in past events RATING CRITERIA FOR EVENTS POINTS Overall tourism impact to the City/Region  Will their marketing attract visitors to Port Angeles?  Will event use City facilities?  Will it promote and highlight our assets? (Max.10 Points) Value of event based on grant request and anticipated local revenue and tax generation (cost/benefit)  Events less than 4 years old add 2 points.  Will they coordinate their marketing and event with that of other organizations? (Max. 20 Points) Meets LTAC priority and General Focus Areas.  Infrastructure (feeling that this place is being maintained well)  Transportation  Unique Experiences  Digital presence (including web, apps, booking, etc.) (Max. 20 Points) Is this a non-peak/shoulder season/off-season event? (Max. 20 Points) Have a proven or high potential to result in overnight stays by tourists in lodging establishments within the City.  Is it likely that their marketing and/or event could result in longer lodging stays and/or return visits? (Max. 30 Points) TOTAL POINTS AWARDED (maximum of 100 points): Should this project be considered for funding? Yes / No Recommended amount of funding: $ September 18, 2019 Pg. 24 Need to add Criteria for Capital Grants Need to add Criteria for Marketing Action Items for Lodging Tax Advisory Committee  Review and update yearly o Priority areas of concern and encourage applicants to come up with creative approaches o Percentages of LTAC funds to devote to various areas. This may include a new designated area of interest or project, such as funding artists to improve visitors experience. o Calendar o Off-peak times o Criteria for grant funding distribution  Consider conducting an informational session regarding lodging tax uses for potential projects after issuing an RFP.  Establish a rolling five-year funding plan to be updated annually for multi-year funding items. o Crabfest o Juan De Fuca Festival o Marketing  Participate in the creation of a tourism master plan for the Clallam County September 18, 2019 Pg. 25 Calendar Lodging Tax Advisory Committee Annual Timeline Task Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Review Master Plan and Annual Priorities X Review and Approve Application for Event and Projects X Review Timeline (Off- Peak) X Review Budget and prior year's grants X RFP Packets for Events Available & Distributed X RFP Packets for Projects Available & Distributed X Events Proposals Due X Project Proposals Due X Reviews Applications/ Hear Presentations X Formulate, then Present Final Recommendation for Events to Council X Formulate, then Present Final Recommendation for Projects to Council X County Council Deliberates and Grants Event Awards X 45+ County Council Deliberates and Grants Event Awards X 45+ September 18, 2019 Pg. 26