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HomeMy WebLinkAboutHuffman Farms Agreement with changes2016 LODGING TAX SERVICES AGREEMENT BETWEEN KITTITAS COUNTY AND HUFFMAN FARMS This Contract, effective January 1, 2016 is made and entered into by and between KITTITAS COUNTY ("County"), a subdivision of the State of Washington, and Huffman Farms ("Contractor"). WHEREAS, the purpose of this Agreement is to provide for activities and expenditures designed to increase tourism, NOW THEREFORE, in consideration of the terms and conditions contained herein, or attached and incorporated and made a part hereof, the County and the Contractor mutually agree as follows: Section 1. Scope of Work. Contractor shall provide the services and staff described in its Application for Lodging Tax Funds submitted to the Lodging Tax Advisory Committee, attached hereto as Exhibit "A" which is attached hereto and incorporated herein by this reference. Except as otherwise specifically provided in this Agreement, Contractor shall furnish the following as required to perform the services, described in Paragraph (a) above, in accordance with this Agreement: Personnel, labor and supervision; technical, professional and other services. All such services, property and other items furnished or required to be furnished, together with all other obligations performed, or required to be performed, by Contractor under this Agreement are collectively referred to herein as "Services." c. Contractor shall commence, perform and complete such Services in accordance with Exhibit "B" which is attached hereto and incorporated herein by this reference. Section 2. Payment. a. As full compensation for satisfactory performance of the Contractor's Services, the County agrees to pay Contractor the sum of five thousand dollars ($5,000.00). b. Additional payment terms: The County will make payment to the Contractor only on a reimbursement basis, as receipts/invoices for any items including marketing and/or advertising are submitted to the County, not to exceed the sum of five thousand dollars ($5,000.00). c. Services/Expenses that are reimbursed must be dated during the current year and final date to submit reimbursements requests is January 15, after this date funds lapse. d. Requests for reimbursements must be submitted to: Kittitas County Auditor Attn: Auditor's Accounting 205 West 5th Ave — Suite 105 Ellensburg, WA 98926 2016 County Lodging Tax Funding Agreement Page 1 auditorsaccountine@co.kittitas.wa.us e. Reporting requirements of your events will be required on prescribed forms from the County Auditor. f. Contractor is eligible to claim reimbursement for the following items and amounts (if applicable) only: • Television Advertising • Radio Advertising • Online and Social Media • TV Production & Voice Over • Parade Expenses • Banner • Magazine Advertising • Visitor Guides • Newspaper Advertising • Posters g. Contractor is not eligible to claim reimbursement for any items not listed in Section 2 (f) and is further expressly denied funding for the following items as requested in the application as defined in Section 1(a): h. Contractors requesting reimbursement for event -specific expenses shall submit all claims as no more than two reimbursement requests with supporting documentation. I. Contractors must complete the Lodging Tax Reimbursement online training course provided by the County Auditor's office prior to filing reimbursement claim. Requests for reimbursement will not be accepted by the County Auditor prior to the training being completed. The training may be found online at the Kittitas County Auditor's website at the following address: http://www.co.kittitas.wa.us/auditor/default.aspx Section_ 3._ Performance by Contractor. a. Contractor shall not (by contract, operation of law or otherwise) delegate or subcontract performance of any Services to any other person or entity without the prior written consent of the County. Any such delegation or subcontracting without the County's prior written consent shall be voidable at the County's option. b. Contractor shall at all times be an independent contractor and not an agent or representa- tive of the County with regard to performing the Services. Contractor shall not represent that it is, or hold itself out as, an agent or representative of the County. In no event shall Contractor be authorized to enter into any Agreement or undertaking for or on behalf of the County. It is understood that the Contractor and the Contractor's staff and employees are not employees of the County and are not, therefore, entitled to any benefits provided employees of the County. c. Contractor shall comply with all applicable laws, ordinances, rules, regulations, orders, licenses, permits, and other requirements, now or hereafter in effect, of any governmental 2016 County Lodging Tax Funding Agreement Page 2 authority (including, but not limited to, such requirements as may be imposed upon the County and applicable to Services). Contractor shall furnish such documents as may be required to effect or evidence such compliance. All laws, ordinances, rules, and orders required to be incorporated into agreements of this character are incorporated into this Agreement by this reference. Contractor agrees to obtain all required licenses and permits, and further agrees to keep them in full force and effect during the term of this Agreement. d. The County and the Contractor agree that in fulfilling the terms and conditions of this Agreement neither shall discriminate on the basis of race, creed, color, national origin, age, sex, marital status, or the presence of a physical, sensory, or mental handicap. e. The Services shall at all times be subject to inspection by and approval of the County, but the County's making (or failure or delay in making) such inspection or approval shall not relieve Contractor of its responsibility to perform the Services in accord with this Agreement, notwithstanding the County's knowledge of defective or non -complying performance, or the substantiality or ease of discovering the same. Contractor shall provide the County with sufficient, safe, and proper facilities and equipment for such inspection and free access to such facilities. f. This contract is subject to review by any Federal or State auditor. Contractor shall promptly furnish the County or its designee, or such Federal or State auditor with such information related to the Services as may be requested by the applicable governmental entity, Contractor shall preserve and maintain all financial records and records relating to performance of Services under this Agreement for six (6) years after contract termination. For such duration after the County makes final payment of compensation due hereunder, Contractor shall provide the County access to (and the County shall have the right to examine, audit and copy, with or without notice) all of Contractor's books, documents, papers and records related to the Services or this Agreement. g. Contractor understands and acknowledges that Contractor is solely responsible for its own reporting and accounting of all state, federal, social security, and local taxes, of every nature, arising from Contractor's performance of this Agreement. All compensation received by the Contractor will be reported to the Internal Revenue Service at the end of the calendar year in accord with the applicable IRS regulations. Section 4. Release, Indemnity, and Hold Harmless. The County assumes no liability for the Contractor's actions under this Agreement. Contractor releases and shall defend, indemnify, and hold harmless the County, its officers and employees, agents, representatives, attorneys and/or volunteers, from and against all claims, costs, liabilities, damages, and expenses, (including, but not limited to, reasonable attorney fees) which arise or may arise or be alleged to arise out of or by reason of this Agreement including: • Any fault, negligence, strict liability or product liability of Contractor in connection with the Services for this Agreement; • Any lien asserted upon any property of the County in connection with the Services for this Agreement; • Any failure of Contractor, or of the Services, to comply with any applicable law, ordinance, 2016 County Lodging Tax Funding Agreement Page 3 rule, regulation, order, license, permit and other requirement, now or hereafter in effect, of any governmental authority; or • Any breach of or default under this Agreement by Contractor Section 5. Compliance with Public Records Law. a. In compliance with Washington's public records law, the County will retain copies of any documents associated with this Agreement, which may be required by law unless legally exempt from such retention, for any applicable legally required retention period. b. In the event a public records request is made to the County for documents created in relation to this Agreement, should legal uncertainty arise regarding the disclosability of any documents under federal or state public records laws, the County shall provide notice to Contractor pursuant to Washington's public records act, chapter 42.56 RCW, to allow Contractor to seek a court injunction. c. The County specifically shall not be liable to Contractor for the County's release under public records laws of any documents not protected by trademark, copyright or other law. Section 6, Indt>iWal Insurance Waiver. With respect to performance of this Agreement and as to any claims against the County, its Additional Insureds, officers, agents and employees, the Contractor expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to Contractor's employees and agrees that the obligations to indemnify, defend and hold harmless provided in this Agreement extend to any claim brought by or on behalf of any employee of the Contractor. This waiver is mutually negotiated by the parties to this Agreement. Section 7. Insurance and Endorsements. a. The County may require through a request in writing that the Contractor provide the County with a certificate, binder, or policy of liability insurance, acceptable to the County in an amount specified by the County. b. Such liability insurance shall be such as will protect Contractor, its employees, agents and representatives, from all claims, losses, harm, costs, liabilities, damages and expenses arising out of personal injury (including death) or property damage that may result from performance of the Services or this Agreement, whether such performance is by Contractor or any of its employees, agents or representatives. c. Should the County require such liability insurance, the Contractor agrees to provide proof of insurance prior to commencing performance of this Agreement. d. Copies of the County's written request and the insurance documents provided by Contractor shall be attached to this Agreement and by this reference will be made part hereof. 2016 County Lodging Tax Funding Agreement Page 4 e. Where insurance is requested by the County, all liability insurance policies shall be endorsed to include the County as an Additional Insured and shall stipulate that the insurance afforded by the policies shall be primary insurance, and that any insurance, self-insured retention, deductibles, or risk retention trusts maintained or participated in by the Parties shall be excess and not contributory to any other insurance maintained by the County. Contractor shall furnish the County a certificate of insurance with Endorsement as evidence that the required policies are in full force and effect. Section 8. Termination. The County may, by written notice thereof to Contractor, terminate this Agreement as to all or any portion of the Services not yet performed, whether or not Contractor is in breach or default. Upon receiving such notice of termination, Contractor shall, except as otherwise directed by the County, immediately stop performing the Services to the extent specified in the notice. In the event the County terminates the Contractor's Services, the Contractor is obligated and hereby agrees to refund to the County all monies paid for Services not yet rendered by the Contractor, if any, as of the date of the notice of termination. Section 9. Miscellaneous. a. Contractor shall not (by contract, operation of law or otherwise) assign this Agreement or any right or interest in this Agreement without the County's prior written consent. b. This Agreement embodies the entire Agreement between the County and Contractor, and supersedes any and all prior oral or written communications, proposals, conditions, promises, representations, or understandings regarding the Services. No change, amendment or modification of any provision of this Agreement shall be valid unless set forth in a written amendment to the Agreement signed by both parties. c. Notice for any purpose under this Agreement, except service of process, shall be given by the Contractor to the Kittitas County Commissioners and the Kittitas County Auditor, 205 W. 5th Ave. Ste. 108, Ellensburg, WA 98926. For all purposes under this Agreement, any notice by the County to the Contractor shall be given to the Contractor's address provided on the signature page. Notice may be given by delivery or by depositing in the U.S. Mail, first class, postage prepaid, certified mail, return receipt requested. The section and paragraph headings of this Agreement are for reference convenience only and are not intended to restrict, affect or be of any weight in interpreting or construing the provisions of such sections or paragraphs. This Agreement may be executed in one or more counterparts and by facsimile, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Contractor warrants to the County that the individual signing on Contractor's behalf has the requisite power and authority to enter into and to perform Contractor's obligations under this Agreement. Contractor further warrants to the County that Contractor has made no misrepresentation or misleading statement in connection with this Agreement, and is not in 2016 County Lodging Tax Funding Agreement Page 5 violation of any applicable law, ordinance, or regulation the consequence of which will or may materially affect Contractor's ability to perform its obligations under this Agreement. g. If any term or condition of this Agreement or the application thereof to any person(s) or circumstances is held invalid, such invalidity shall not affect the other terms, conditions or applications which can be given effect without the invalid term, condition or application. To this end, the terms and conditions of this Agreement are declared severable. h. The exclusive venue for any action brought to enforce this Agreement or any of its terms shall be in Kittitas County, State of Washington. KITTITAS COUNTY BOARD OF COUNTY COMMISSIONERS CONTRACTOR Chair Vice Chair Commissioner ATTEST: , Clerk of the Board APPROVED AS TO FORM: Deputy Prosecuting Attorney [Print Name] [Address] [Telephone] 2016 County Lodging Tax Funding Agreement Page 6 EXHIBIT A APPLICATION FOR 2016 LODGING TAX GRANT FUNDING Name of Organization: Huffman Farms Organization mailing address: 444 Buckboard Lane - Ellensburg, WA 98926 Organization contact person & title: Hilary Huffman, President Organization/contact phone: Email: Organization Website: 509.899.2002 Hilary@huffmanfarms.com huffmanfarms.com Federal Tax ID Number: 46.3418867 UBI Number: 603.428.666 Organization is a (select one): Government Entity 501(c)3 501(c)6 X Other S Corporation (note: you must submit 501(c)3, 501(c)4, or 501(c)6 approval documentation — see sample document) Project/Event Name: U -Pick Pumpkin Patch/Pumpkin Festival and Haunted Forest & Corn Maze Project/Event Date: Pumpkin Festival - Every Saturday and Sunday in October (10 days) Haunted Forest & Corn Maze — Every Friday and Saturday night in October, beginning the second Friday of the month Project/Event Location: 6181 Wilson Creek Road, Ellensburg (Our working farm) Amount of Funding Requested: $8500.00 For which funding category do you qualify (check one) (see instructions for definitions): X New Project/Event Ongoing Project/Event Support Estimated # of overnight stays: 120 Tourism Seasons: From the list below, what season will your project enhance tourism? Please indicate the appropriate season. Season: Year-round Off season X Shoulder season High season Months: January — December November — February October or March — May June - September County -wide Lodging Tax Application P a g e 19 APPLICATION QUESTIONS 1.) Huffman Farms launched its month-long Pumpkin Festival style festivities in 2013. We are a u -pick pumpkin patch, open every Saturday and Sunday in October, offering the following for both the young and young at heart: ■ Pumpkins straight off the vine ■ Gourdy's Corn Maze ■ Hayrides ■ Petting zoo ■ Pony hop races ■ Jack's Kid Zone ■ Pumpkin chucking ■ Duck races ■ Farm fresh food from the Farm Kitchen Cafe ■ Gift shop full of fall decor and seasonal items New this year, we are introducing our Friday and Saturday night Haunted Forest and Corn Maze. In order to gauge interest, we did a "soft launch" in 2014 on Thursday and Friday nights. It was such a success that we are launching it this year on what are expected to be far busier nights, with twice the frights! While there is some overlap, these two traditional fall festivities attract distinctly different guests, broadening the overall appeal of Huffman Farms and increasing the chances of an overnight stay. Targeted guests include: Saturday and Sunday day time events attract: • Families • Grandparents • Couples • College kids who grew up attending pumpkin patches with their families Friday and Saturday night events attract: • Families • Middle and high school aged kids • Groups (i.e. sports groups, church groups, clubs, etc.) • College kids Grant funds will be applied to all marketing efforts that extend 50 -miles beyond Ellensburg, as well as any local efforts that allow for an allocated amount. Our marketing plan includes, but may not be limited to: County -wide Lodging Tax Application P a g e 110 In partnership with Kittitas County Chamber of Commerce and Genesis Marketing Charter Cable Tri -Cities $ 2,000.00 Wenatchee area radio $ 1,000.00 Online $ 1,500.00 TV Production & Voice Over $ 1,650.00 Total budget $ 6,150.00 Bonus received as a partner of the Ellensburg Tourism Campaign: Exposure from MyEllensburg.com social media posts promoting upcoming events Exposure on MyEllensburg.com Campaign Overview: "Once the order is booked Genesis will declare official number of ads this buy will receive TV :30 ads "Estimated # of ads Charter Cable Tri -Cities TBD Facebook Campaign will target North Bend, Moses Lake, Yakima, Chelan and cities within a one hour drive from Huffman Farms. With a $1000 30 -day budget, between 204,000 and 230,000 people are expected to be reached In addition to partnering with the chamber of commerce and Genesis Marketing, we will be utilizing the following marketing tools as well and will seek reimbursement if and when applicable: • Groupon.com offer/Facebook campaign built around the offer and targeted to specific west side zip codes and demographics - $500 • Parades - $750 • KXLE Radio - $500 • University banner - $850 • BusyBee Magazine (Greater Yakima) - $500 • Visitor Guide - $500 • Daily Record - $300 • Bloggers - $500 • Posters - $200 County -wide Lodging Tax Application P a g e 111 We believe that offering both a day and night time attraction increases the distance people will travel to attend, as well as the amount of time they will stay once in Ellensburg. Through our marketing efforts and continued partnership with the chamber of commerce, we've been able to tap into the popularity of fall and all the activities and traditions that come along with it. Improving on and expanding those efforts are estimated to have the following effect*: 2.) I. Overnight paid accommodations: 120 (5% of out of county guests) II. Day travelers: 2400 (40% of overall guests) III. Out of state or country: 24 (1% of out of county guests) *In 2014, we estimated 5,000 overall guests throughout the month of October. Of those guests, we were able to survey 266. Based on the information given, we learned that 32% were from outside Kittitas County. With increased marketing efforts aimed at 50+ miles outside Ellensburg, we are conservatively estimating that the number of overall guests will grow to 6,000 with 40% coming from outside the county. 3.) First, we will continue to use a prize/give-a-way offer to obtain guest data. The information we gather will include email, zip code, how they heard about us and if they are staying overnight. Secondly, we will continue to conduct impromptu surveys with as many of our guests as possible. Our event runs throughout October, with the pumpkin patch festivities taking place Saturdays and Sundays from 10AM to 4PM and the Haunted Forest and Corn Maze running Friday and Saturday nights from 7PM to 10PM One, in an effort to attract tourists who are already here, we will continue to take advantage of other holiday/seasonal events (i.e. 411 of July parade, Labor Day parade, etc.). Two, we will continue to target specific zip codes and demographics through all online efforts (i.e. Groupon, Facebook, bloggers, etc.). Finally, we will broaden the scope of our ad buys (i.e. radio, TV, print, etc. in the greater Tri -Cities and Wenatchee areas.) III. We will continue to work with and expand on local partners (i.e. Winegars Huffman Farms Pumpkin Ice Cream, Tim's Cascade Potato Chip give -a -ways, kids eat free at The Roadhouse Grill, ticket sales at Jerrols, serving and selling Saddlehouse Coffee, etc.) 4.) No. At this point, we haven't qualified for other grants. However, we will be looking into all grant opportunities that present themselves. County -wide Lodging Tax Application P a g e 112 As to volunteers/in-kind sources, we wouldn't have this event without our volunteers. Volunteer hours for each month are as follows: 2015 September 2 volunteers at 100 hours each 200 hours October 20 volunteers at 85 hours each 1700 hours 1900 hours total These volunteer hours equal 1900 in total, or $50,768 at the Washington State rate of volunteerism ($26.72/hour) - Wow! We have GREAT volunteers! This does not include any owner hours, including the number of hours for marketing, public relations, events, web site maintenance, etc. Volunteer hours are expected to go down by approximately 15% in 2016. As more infrastructure is put in place, there is less preparation work needed leading up to the event. Projected in-kind contributions for 2016 is $43,153. If this funding request is not approved, we would have to drastically cut our marketing plan and market closer to home, where efforts are not as costly, thus impacting the number of overnight stays this event generates. 5.) Throughout the past three years, we have partnered and/or collaborated with the following local businesses through sponsorships and cross marketing: • KXLE Radio —Sponsor • Tim's Cascade Potato Chips — Sponsor and give -a -ways • Ardor Designs — Sponsor • The Burg —Sponsor • Winegars — Huffman Farms Pumpkin Ice Cream • Roadhouse Grill — Give -a -way • Saddlehouse Organic Coffee — Service and sales on-site • Jerrols — Haunted Forest and Corn Maze ticket sales • Ellensburg Parks and Recreation — We've provided pumpkins for their events • Ellensburg Downtown Association — We provide pumpkins for their Buskers event We've also partnered with the Kittitas County Chamber of Commerce for marketing and have worked together on various events (i.e. we've provided children's activities at the Barn Quilt Show, 4t" of July event, etc.) County -wide Lodging Tax Application P a g e 113 6.) As this event grows, we plan to become more self-sustaining by revisiting sponsorship agreements, introducing new revenue sources and expanding our days/hours of operation. Most importantly, we see a tremendous potential for overall attendance growth, thus growing overall sales. 7.) As Huffman Farms grows, we continue to focus on the impact we have, and can have, in the community. Success as an event will allow us to continue our ancillary activities including field trips, outreach programs and custom farm visits for special needs groups. Over the past three years, we've had the pleasure of hosting hundreds of preschool and kindergarten aged children from as far as Mattawa and Yakima, giving them a hands-on farm experience. We've also gifted our time and farm to some incredible groups such as Young Life, Capernaum, teen moms, Elm View residents, Ellensburg School District special needs kids, Family Christian Center and many more. The more success we experience, the more we will have to share ... and that's very exciting for us! a County -wide Lodging Tax Application Page 114 2013 ` 2014 2015 (Projected) 2016 (Projected) Sales 6014.12 9781.00 11248.15 14060.19 Grant Monies 8500.00 In -Kind Contributions Labor 65000.00 60000.00 50768.00 43153.00 Expenses Activities 6255.74 4759.49 3807.59 3600.00 Facilities 8200.25 6869.90 5495.92 5000.00 Food/Food service 1968.86 2522.22 2800.00 3100.00 Rentals 1000.00 1262.26 1262.26 1400.00 Marketing 850.00 1863.90 2200.00 10750.00 Office 480.00 416.33 400.00 400.00 Services 1500.00 1152.87 1200.00 1200.00 20254.85 18846.97 17165.77 25450.00 Net profit/loss -14240.73 -9065.97 -5917.62 -2889.81 County -wide Lodging Tax Application Page 114 9. Has your event received Lodging Tax funds in previous years? Yes No X If yes, please list each year and the amount received for that year. All applicants must also provide the following information regarding the event/project: Prior Year* Projected A. How many participants and spectators attended last years activity and/or will attend this year? 5,000 6,000 B. How many days did/will your event occur? 8 10 C. How many room nights were and /or will be booked as a result of your project/event? (You must provide a verifiable source of information as evidence for your response to item C. Failure to do so will disqualify your application. ) 80 120 *This reflects 2014, as we do not yet have data for 2015 10. Application Certification: The applicant here certifies and affirms: 1. That it does not now, nor will it during the performance of any contract arising from this application, unlawfully discriminate against any employee, applicant for employment, client, customer, or other person who might benefit from said contract, by reason of age, race, color, ethnicity, sex, religion, military status, sexual orientation, creed, place of birth, or disability; 2. That it will abide by all relevant local, state and federal laws and regulations and; 3. That it has read the information contained in the In,striKtions on ages 1 and 2 and understands and will comply with all provisions t eof. Certified by: (signature) (print name) Title: _ Date: q 1z 15 -- County -wide Lodging Tax Application P a g e 1 15 Criteria Supports County as Tourism Destination Length of Impact Lodging Tax Grant Application Rating Form Points Possible Application Questions Points Awarded 15 yes= up to 15 Question 2, 3, 5, 7 No=O 15 Date specific = 5 Seasonal = 10 Year Round = 15 15 Attracts Tourists yes = up to 15 from at least 50 miles No = 0 away Applicant's Matching Funds Partnerships Sustainable Future Funding Identified Attributable Lodging Stays 20 Less than 5% = 0 5% - 25% = 5 25%-49%= 10 50% - 99% = 15 100% or more = 20 5 Yes = 5 No=O 10 yes = 10 No=O 20 0=0 1-30 = 5 31-100 = 10 101-250 = 15 More than 250 = 20 Question 3 Question 3 Question 4, 8 Question 5 Question 6 Question 9 Total Points: /100 County -wide Lodging Tax Application P a g e 116 Applicant Checklist For applicant use prior to submission My application title page states: Request for Proposals, 2016 Lodging Tax Fund. My application is for a new project/event and/or for an ongoing project/event as defined on page 2 of the application packet. I have attached proof of non-profit status if applicable which matches the sample document provided. I have included an itemized list in response to item 1 in the application of how any grant funds awarded will be utilized. `f I have attached additional information in response to item 7 in the application, if needed, which includes written information limited to one page and other attachments limited to three pages. have attached a project budget, properly formatted according to item 8 in the application. If this event is ongoing for more than one year, I have also submitted actual financial data from the previous three years if applicable, formatted properly according to item 8 in the application. application certification in item 10 is signed and dated by the proper authority. �I have included one copy of the entire original application according the submittal instructions on page 4. My application is being sent on or prior to September 25, 2015 and will be delivered by 5:00 PM either in person or electronically (email or fax) or postmarked on that date. My application is being delivered to: Kittitas County Commissioners Attn: Lodging Tax Grant Application 205 W 5th Avenue, Suite 108 Ellensburg, WA 98926 Or, is being emailed to: bocc@co.kittitas.wa.us Or, is being faxed to: 509-962-7679 County -wide Lodging Tax Application Page 117 Submission Checklist For office use only H 4(46kaK rano� T k "yes" or "no" to each criteria below: Applicant filled out the proper application version for this Z -1,9 -rant cycle. Applicant answered each question. A budget is attached which includes revenues, expenses and anticipated profit or loss (plus previous 3 years --actuals for ongoing projects/events). The applicant has signed and dated the certification statement required in item 10 of the application. The application was submitted on time. Proof of non-profit status is included if applicable). p ( Please date stamp the application and initial. County -wide Lodging Tax Application For Office Use Only P a g e 1 15 uo z r W, 0 i !z i W cz O c6 w O �� cz v w V E i C6 L.. w C� -4—J E O Blum.O O c-- tl E i C6 L.L. CL O LD �A CL) tri rl%Q IV t/7 O ~ Cz i i =� Ln CZ .4.j LJ Ntloo VCIO O MMMMMN% rol �� cz v w V E i C6 L.. w C� -4—J E O Blum.O O c-- tl E i C6 L.L. CL O LD 0 r Cmft-�m 'QA i V � 1 W cz E cz O O ry� cei E a� O � v a 'O c6 � c oN c6 E W cm W 0 r Cmft-�m 'QA i W E cz O O ry� cei E a� cz �164 N o c oN c6 E C7; cm � coco Q L0 Lm SEP 2 g 7 Request for Proposals 2016 Lodging Tax Fund Submission Deadline: Friday, September 25, 2015 Kittitas County Commissioners 205 W 5th Avenue, Suite 108, Ellensburg, WA 98926 509-962-7508 • t -j 2416 Lodging Tax Funds — General information Various municipalities within Kittitas County impose a lodging tax assessed on the sale or charge made for furnishings of lodging according to RCW 67.28.180 and RCW 67.28.181. In accordance with the tax and Washington State Law, Lodging Tax Advisory Committees may also be established by various jurisdictions. The committees' purpose is to advise and recommend to the legislative authority of the city or county how excise taxes on lodging should be allocated to support tourism which in turn generates revenue. Uses According to Law: According to State Statute and the interlocal agreement between the Kittitas County and the Cities of Cle Elum, Ellensburg, and Roslyn, funds awarded under this process may be used for the following: 1. Tourism marketing; 2. The marketing and operations of special events and festivals designed to attract tourists; 3. Supporting the operations of tourism -related facilities owned or operated by nonprofit organizations described under 26 U.S.0 Sec. 501 (c) (3) and 26 U.S.C. Sec. 501 (c) (6) of the internal revenue code of 1986, as amended. Definitions included in state law which should be considered in any application requesting funding include: (1) Tourism means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. (2) Tourism promotion means activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing or the operation of special events and festivals designated to attract tourists. (3) Tourism -related facility means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is: (a) (i) Owned by a public entity; (ii) owned by a nonprofit organization described under section 501 (c) (3) of the federal internal revenue code of 1986, as amended; or (iii) owned by a nonprofit organization described under section 501 (c) (6) of the federal internal revenue code of 1986, as amended, a business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce and (b) used to support tourism, performing arts, or to accommodate tourist activities. Review Process• Cle Elum, Roslyn, Ellensburg, and Kittitas County have all agreed to collaborate in review of grant applications and awarding lodging tax funds for special events and festivals. Each municipality's committee or designees will review all complete applications, score them based on the information provided by the application, rank the applications, recommend any funding County -wide Lodging Tax Application N a g e 11 awards, and forward the score sheets, ranking, and funding recommendations to Kittitas County. County staff will compile the score sheets, rankings, and funding recommendations for further consideration by a county -wide Lodging Tax Advisory Committee (LTAC). The county -wide LTAC will be comprised of an equal number of members from each participating jurisdiction. The county -wide LTAC will receive the scoring, ranking, and recommendations list and will conduct a public meeting where each applicant which received a funding recommendation will have the opportunity to present their application and answer questions. The county -wide LTAC will publicly deliberate on the applications and the list to produce a final recommendation which will be forwarded to each participating jurisdiction's legislative authority for final action. Scoring sheets which determine the overall ranking of applications are included in this packet for your reference and information. Applications which do not receive an average minimum score of at least 50 points or who do not follow the submission instructions will not be eligible for funding. Local Policv on Disallowed Uses: The Lodging Tax Advisory Committees have determined that certain types of activities are not eligible for funding awards even if they may be tourism related. These include anything affiliated with the following: prizes for contestants, resale items, food and drink, beautification, fundraising, and membership drives. This list should not be considered comprehensive and all funding recommendation decisions are at the discretion of the committees and subject to change by majority opinion. Application Definitions: Below is a list of terms and phrases which have specific meaning within this application. It may be helpful for you to review these as you prepare responses so that you have a better understanding of the reviewers' expectations. Date -specific is an event or project which occurs over less than one month. Matching Funds is the amount of funding your organization is contributing to the project or event. This includes both direct and indirect fund support. Direct funds can be in the form of cash funding from your organization or funding secured from elsewhere but dedicated to the project or event such as other grants, loans, donations, etc. Indirect funding support includes in-kind support like labor, volunteer support, supplies, and services which directly relate to the project or event, including those provided by your organization and others. New Projects/Events are projects/events which are in the first four years of existence. For example, a proposal for a barbeque competition which is in its third year would be defined as a new project/event. Likewise, a project by an existing museum which expands its current offerings, or a specific new strategy for appealing to a different target market that is in its first year, would be considered a new project. Ongoing general marketing and advertising campaigns or general operational support requests for organizations/event which have existed for longer than four years are not defined as a new project/event. County -wide Lodging Tax Application P a g e 12 Ongoing Projects/Events are defined as projects/events that have been established for more than four years. Applications that qualify under this definition may be awarded up to 10% of the project's/event's expense budget. Partnerships are agreements between events/organizations/groups which enhance the overall project/event by providing additional value-added benefits or opportunities for attendees as well as the participating partners. For instance, as part of your event, you may have partnered with a local hotel or campground for a special group rate for overnight attendees. You may have also partnered with a local restaurant to provide a special meal discount or drink offer. You may have also agreed to refer your attendees to another event simultaneously occurring in another part of the county. Project Budget is a written description of the complete budget for your project or event. It must include anticipated revenues, expenses, and any potential profit or loss. Seasonal means a project or event which operates at least 1 month and up to 6 months, and during at least 2 seasons (Spring, Summer, Fall, Winter). Self -Sustaining is being able to provide for your own needs without the assistance of grant funds. Supports County as a Tourism Destination means including strategies within your proposal which will assist in attracting tourists to our County during times of the year other than for your project/event alone. This may include cross -promotion agreements with other projects/events, it may include active marketing of other projects/events at your project/event, it may include referring attendees directly to other tourist opportunities in the County, etc. Year-round means a project or event is ongoing and actively working to attract tourists for at least 6 months, and at least 3 seasons (Spring, Summer, Fall, Winter). County -wide Lodging Tax Application P a g e 13 SUBMITTAL INSTRUCTIONS Please return ONE COPY of the entire original application (including the cover sheet and instructions sheets) and answers to narrative questions to: Kittitas County Commissioners Attn: Lodging Tax Grant Application 205 West 5th, Suite 108 Ellensburg, WA 98926 Applications must be received no later than 5:00 p.m., Friday September 25, 2015 or postmarked no later than September 25, 2015. Incomplete and/or late applications will not be considered. Applications may not be changed or amended by the applicant after the deadline for submission. Electronic Submissions: Applications may be submitted to the following email address: bocc@co.kittitas.wa.us Applications may be faxed to: 509-962-7679 Schedule: ■ Applicant Workshops (attendance at one workshop is strongly encouraged) Ellensburg City Hall Council Chambers 8/18/2015, 5:30 PM & 8/21/2015, 5:30 PM Upper Kittitas District Court, Cle Elum 8/11/2015, 5:30 PM & 8/13/2015, 5:30 PM ■ Application deadline 9/25/2015 ■ Oral presentations of proposals to county -wide LTAC 11/20/2015 ■ Applicant Award Notification and fund availability 12/31/15 Project Management: Successful applicants shall be required, as a condition of the funding award, to enter into a contract. The agreement may include, but not be limited to, the specific amount of the award and what it may be used for, all reporting requirements associated with this funding, payment terms, and any and all other appropriate terms of the funding. Kittitas County will be the contracting agent for all approved projects. A condition of the grant award which includes funding from the City of Ellensburg may be that the MyEllensburg.com website be named on any organizational website. All funds awarded under this program will be available in the form of reimbursable grants. The funds will be available for reimbursement beginning January 31 and ending December 31 of the calendar year immediately following award notification. Any unexpended funds will be returned to the Lodging Tax accounts from where they came and made available for re - appropriation. All requests for reimbursement shall be made to the Kittitas County Auditor's office at the following address: County -wide Lodging Tax Application P a g e 14 Kittitas County Auditor Attn: Lodging Tax Grant Funds Reimbursement 205 W 5th, Suite 105 Ellensburg, WA 98926 For specific information and requirements regarding the reimbursement process, please contact the Auditor's office at 509-962-7504. Project Reporting Requirements: State law requires that all recipients of Lodging Tax revenues must submit a report to the municipality describing the actual number of people traveling for business or pleasure on a trip: A. Away from their place of residence or business and staying overnight in paid accommodations; B. To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or C. From another country or state outside of their place of residence or their business. A report form will be provided as part of the contract for receiving funds. We ask that you provide this information within 60 days after your event is complete once you have critiqued your event. In addition, any reports which are produced as a result of a grant award must be submitted within 60 days of completion as part of your project reporting requirements. This will provide evidence that the work paid for by the grant has been completed. Applicant Categories and Eligibility: Grants from lodging tax funds are provided for two types of applicants, New Projects/Events and Ongoing Event Support. An organization may only apply for funding from one category per year. The categories are defined as follows: The New Project/Events category is for applications from events/projects which are within the first four years of existence. Applications may be considered in this category from established events (older than four years) which are proposing a new or expanded project designed to increase tourism as part of an ongoing event. The Ongoing Project/Event Support category is for applications from established events (ongoing for more than four years) which may request continuing support. Grant awards are limited in this category to no greater than 10% of the event's expense budget. This category includes project/events which may be operating under a new board or organization, moving venues, changing dates, or implementing other non - substantial changes to a project/event which is ongoing for more than four years. Other Information: Insurance: As part of its contract for performance, a municipality may require contractors to maintain liability insurance in the amount of $1,000,000 or more and name the municipality as an additional insured on its liability insurance policy. County -wide Lodging Tax Application Application Form: This packet will be available on the website of each participating municipality as a word document and as a pdf. It can also be obtained directly as a hard copy or in digital format by contacting the Kittitas County Board of Commissioners office at 509-962- 7508. Website addresses where the application maybe found areas follows: • www.ci.ellensburg.wa.us ■www.cityofcleelum.com ■ www.ci.roslyn.wa.us ■ www.co.kittitas.wa.us Grant Preferences: In the review of applications, the Lodging Tax Advisory Committee or designees will grant preference to those proposals which (1) increase tourism, and (2) demonstrate ability toward eventual self -sustainability. Applications from not-for-profit organizations will be given preference over those from for-profit entities. Guidelines and Requirements for Advertising Expenditures of Lodf:ing Tax: Branding Contractors who have been approved to utilize grant awards for advertising expenditures must incorporate Kittitas County and the appropriate City of Cle Elum, Ellensburg, or Roslyn tourism information as follows: A. Websites and Social Media Sites must include the County's and appropriate City's tourism website logo with an operational link to the site(s). The logo must be displayed on the contractor's home page, it must be sized no smaller than inch in height, and must be surrounded by appropriate white space to allow easy recognition and legibility. Contractors shall not change the logo(s) in color or appearance. B. Print Advertising and Online Display Advertising of all types ( including but not limited to newspaper, periodicals, flyers, posters, billboards, direct mail, e - newsletters, third -party websites, streaming displays, etc.) must include the County's and appropriate City's tourism website logo. The logo must be sized no smaller than % inch in height, and must be surrounded by appropriate white space to allow easy recognition and legibility. Contractors shall not change the logo(s) in color or appearance. C. Video Advertising of all types (including but not limited to television, online, electronic kiosks, motion billboards, etc.) must include the County's and appropriate City's tourism website logo. The logo must be size no smaller than inch in height, and must be surrounded by appropriate white space to allow easy recognition and legibility. Contractors shall not change the logo(s) in color or appearance. All logos and website information may be obtained by contacting the Director of Tourism, Kittitas County Chamber of Commerce. County -wide Lodging Tax Application P a g e 16 Advertising Reimbursements Contractors seeking reimbursement from Lodging Tax Funds for advertising expenditures must adhere to the following guidelines and requirements for each type of advertising media utilized: A. Print Advertising: Print advertising placed with any media provider which operates exclusively outside of Kittitas County may be reimbursed at 100% of the cost, including any production costs. To operate exclusively outside of Kittitas County, the provider must not be physically located in the County and/or not distribute any media within the County. 2. Print advertising placed with any media provider which operates inside Kittitas County may be reimbursed as follows: a. For date -specific events, advertising the day of the event and up to 7 days prior to the event may be reimbursed at 100% of the cost, including any production costs. b. For seasonal or year-round events, or for date -specific events outside of the time -frame in Section 2 A, (2)(a) above, advertising reimbursement requests must include a statement from the media provider specifying the percentage distribution to areas outside of Kittitas County. Reimbursements will be allowed for the amount distributed outside of Kittitas County, including any production costs. B. Television Advertising: 1. Television advertising placed with any media provider outside the Yakima/Kittitas DMA will be reimbursed at 100% of the cost, including any production cost. 2. Television advertising placed with any media provider inside the Yakima /Kittitas DMA will be reimbursed as follows: a. For date -specific events, advertising the day of the event and up to 7 days prior to the event may be reimbursed at 100% of the cost, including any production costs. b. For seasonal or year-round events, or for date -specific events outside of the time -frame in Section 2 B, 2(a) above, advertising may be reimbursed at the rate of 70% of the total cost, including any production costs. C. Online Advertising: 1. Online advertising and promotion may be reimbursed at 100% of the cost, including any production cost. 2. Streamed media (radio, television, other) requests for reimbursement must include a statement from the media provider specifying the percentage of recipients which are outside of Kittitas County. Reimbursements will be allowed for the percentage distributed outside of Kittitas County, including any production costs. County -wide Lodging Tax Application P a g e 17 D. Direct Mail: 1. Direct mail advertising may be reimbursed at 100% of the cost, including any production cost, for each item mailed or shipped to a destination outside of Kittitas County. In order to receive reimbursement, a list of the addresses and a signed statement from the contractor that the list is accurate, or other proof of delivery, must be provided along with other required documentation. E. Flyers/Posters: 1. Flyers or posters which are placed outside of Kittitas County may be reimbursed at 100% of the cost, including any production cost. In order to receive reimbursement, a list of the locations where flyers or posters were posted outside of Kittitas County and a signed statement from the contractor that the list is accurate must be provided along with other required documentation. F. Radio Advertising: 1. Radio advertising placed with any media provider located outside of Kittitas County may be reimbursed at 100% of the cost, including any production cost. 2. Radio advertising placed with any media provider located inside of Kittitas County may be reimbursed as follows: a. For date -specific events, advertising the day of the event and up to 7 days prior to the event may be reimbursed at 100% of the cost, including any production cost. b. For seasonal or year-round events, or for date -specific events outside of the time -frame in Section 2 F, 2(a) above, advertising may be reimbursed at the rate of 30% of the total cost, including any production costs. County -wide Lodging Tax Application P a g e 18