HomeMy WebLinkAbout2018-04-10-minutes-solid-wasteKITTITAS COUNTY
SOLID WASTE, MAINTENANCE, AND FAIR OFFICE STUDY SESSION MINUTES
BOCC CONFERENCE ROOM, 205 WEST 5TH ROOM 108 - ELLENSBURG
Regular Meeting
TUESDAY 2:00 PM April 10, 2018
Board members present: Commissioner Paul Jewell, Vice Chairman Obie O'Brien
Absent: Chairman Laura Osiadacz excused.
Others: Patti Johnson, Lisa Lawrence, Tim Egan, Jill Scheffer, and four members of the public.
Meeting called to order at 2:03 p.m. Commissioner Jewell moved to start with agenda item 8.
Regular Meeting Rodeo Punch List
Event Center
Jill presented the Board with the 2018 Rodeo Punch List and informed them that she had a walk-
through of the facilities with Commissioner Osiadacz and members of the Rodeo Board.
Discussion was held on the items on the list, items that should not be included on the list,
prioritizing the list, taking into consideration health and safety items first, and the terms of the
Contract with the Rodeo Board. Board directed staff to revise and bring it back to Board.
Regular Meeting Other Business
Event Center
Jill informed the Board she had been notified on the lodging tax. The Board directed her to
schedule with staff a separate meeting with Commissioner Jewell.
Jill presented the Board with a Kittitas Valley Event Center Facility Use Report.
Regular Meeting Update on Second Floor
Jail
Phase 2 of the Project — HVAC System will begin tomorrow.
Regular Meeting Morris Sorenson Boiler
Maintenance
Maintenance
Tim informed the Board that the Boiler was almost done and that he is waiting on parts, that it is
producing heat and should be completed by end of the week.
Regular Meeting Request Board Approval on Maintenance
Change Order at Shady
Brook — pulled from agenda
2018-04-10 MINUTES
Regular Meeting Request Board approval on Maintenance
agreement for asbestos
removal at 809 Maple —
pulled from agenda
Regular Meeting
Glass Recycling
Solid Waste
A brief discussion was held on glass recycling and updating the Solid Waste Management Plan.
Regular Meeting Other Business
None. Meeting adjourned at 3:07 p.m.
r
ae -
Lisa awrence
2018-04-10 MINUTES 2
Solid Waste
KITTITAS COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
Laura Osiadacz, Chairman
G�0 u u ff AS OOMHTi Y COWHOM O MERS
SoNd Write, Pvgaa ntenance, and Farr Office ce Study Sessuon
Reagan Meeting
Tuesday AprH 10, 2018 - 2:00 PR/q
BOCC Conference Room
205 West 5th Room 108 - Ellensburg
1. Call to Order
2. Solid Waste Updates
3. Glass Recycling
4. Request Board approval on Agreement for Asbestos removal at 809 Maple
5. Request Board Approval on Change Order at Shady Brook
6. Update on Morris Sorenson Boiler
7. Update on Second Floor of Jail
8. Discussion on Rodeo Punch List
9. Other business
10. Adjourn
Created on 4/9/2018 8:38:19 AM
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Kittitas Valley Event
Center Facility Use
Weighing and balancing the need to generate revenue while providing community
benefit is no easy feat. Long-term planning and the ability to ensure the continuation of
the Event Center as a community resource relies upon being able to adequately fund
staffing, maintenance, and facility improvements. This report attempts to summarize the big
picture of facility use and community values while providing a proactive plan for the future.
im
Contents
ExecutiveSummary............................................................................................................................... a
Kittitas Valley Event Center Services...................................................................................................
3
EventPlanning Services................................................................................................................
5
Typesof Facility Use.............................................................................................................................6
Facility Rentals and Budget...........................................................................................................
7
TheChallenge........................................................................................................................................9
Facility Use of the Event Center by Kittitas County- Other County Departments ..................10
Facility Use of the Event Center by Community Groups............................................................
ii
Facility Use of the Event Center by the 4-H Youth Development Program ..............................
is
4-H Gives to the Event Center.............................................................................................................16
TheKittitas County Fair.......................................................................................................................17
The Kittitas County Fair Gives to the Event Center...........................................................................19
The Community Gives to the Event Center........................................................................................
ai
FacilityUse..........................................................................................................................................
as
Background Data for Long Term Planning........................................................................................
24
Strategiesand Approaches..................................................................................................................
27
Long -Term Funding Strategies...........................................................................................................i8
Corporate Sponsorship Program.................................................................................................
28
KVEC Presents - Self -Promoted Events.....................................................................................
28
GearShow....................................................................................................................................
29
HistoricBarn Fund......................................................................................................................
29
Grant Funding and Project Support...........................................................................................
29
Conclusion: The Big Picture... Community Benefit vs Revenue Generation .....................................
32
11 Page
Executive Summary
How do we balance the significant community benefit provided by the Event Center in a
way that supports continued community use while at the same time supporting facility
improvements? How do we account for all costs associated with the Event Center
including the capital and operating budget, volunteer inputs, and capital facility
investment? How do we accurately account for the benefits of the Event Center including
community events that are discounted or no cost, county department use that is no cost,
and the revenue stream created in the community through tourist traffic the facility
generates? What strategies can be employed to ensure the Event Center remains viable
for the community as both an economic generator and a facility that is supportive of our
rural community?
The capacity for rental (and by association, for revenue generation) of the Event Center is
influenced by the amount of free and reduced -cost rentals. Thus budgeting and long-term
planning should take into account the actual facility space, at any given time, which is
even available for rent. Therefore, budget expectations for revenue generation and
expenses should be predicated on the understanding that, for all intents and purposes,
the Event Center can only EVER rent out about 70% of its facility space.
Although there is a tangible loss of rental capacity from free and reduced -cost uses of the
facility, this is more than offset by the revenue generation from events like fair and rodeo,
direct and indirect spending in the community, local tax generation from 150,000 visitors,
in-kind support from volunteers, in-kind products and services provided, and community
benefit. All of these are important considerations weighing against the financial impact
borne by the county in operating the Event Center.
Overall, the Board of County Commissioners should understand that the Event Center is
an important community resource that not only provides economic generation for the
surrounding community, but also provides a sense of place to a significant number of
community members engaged in local traditions like the 4-H youth development
program, rodeo, community gift basket, and fair.
a
2
ID e
o�.
Kittitas Valley Event Center Services
The Kittitas Valley Event Center is home to the Kittitas County Fair, the Ellensburg
Rodeo, and 3,600 other uses annually. The Kittitas County Fair was established in 1885
with permanent facilities constructed in our current location in the spring of 1923. The
construction of the permanent structures also included the arena that is now home to the
Ellensburg Rodeo, a top 10 PRCA rodeo. The entire grounds are on the National Register
of Historic Districts and are referred to as the Kittitas County Fairgrounds Historic
District.
The Kittitas Valley Event Center is owned and operated by a municipal government,
Kittitas County, and is located within the boundaries of the City of Ellensburg. Our park-
like grounds are located within walking distance of downtown Ellensburg and are next
door to the campus of Central Washington University. The mission of The Kittitas Valley
Event Center is to serve the Central Washington area with a premier facility that provides
the perfect solution for meetings, family gatherings, equestrian and agricultural events,
trade shows, and other special celebrations.
We are guided by the principle that our clients are forever and we strive to exceed
expectations for quality service, event coordination and facility management. We strive to
have a safe and exceptional work environment for our staff, to provide a positive
influence and service to our community, while providing a clean, accessible, and
affordable facility to the public.
The Kittitas Valley Event Center hosts over 3,60o events every year - ranging from
weddings, barrel racing, dog shows, conferences, trade shows, and the annual Kittitas
County Fair and Ellensburg Rodeo. Thousands of visitors and locals use The Kittitas
Valley Event Center and we endeavor to serve our diverse audiences with equal attention
to detail.
The Kittitas Valley Event Center is an important economic generator for Kittitas County
and Ellensburg. Visitors to our region spend money on lodging, transportation, food,
entertainment, recreation, and retail shopping, generating local sales and lodging taxes.
The Kittitas Valley Event Center welcomes nearly 150,000 people to our grounds annually
and generates significant direct spending, sales tax, and lodging tax for our community.
The Kittitas Valley Event Center contributes approximately $18.1 million in direct
spending' to the regional economy annually including contributing $480,00o in lodging
based on an estimate of the number of annual Event Center visitors who are traveling from more than 50 miles away (-50,000 people)
who spend, on average, s18i/day in food and lodging, and z nights per visit (Dean Runyon report) about s18.i million direct spending
3 1 P a g e
tax', and $150,000 in local sales taxa making it one of Kittitas County's most important
economic engines.
Z WA State Lodging Tax is calculated at 49/6 of overnight stays; z% of lodging tax is collected by the Event Center for the City of
Ellensburg about $240,000 annually
3 WA State Sales Tax rate is 8.2%. The Event Center generates about $1.5m. Kittitas County receives 0.015% of that (—$22,500), while
the City of Ellensburg receives .o85% of that (—$127,500)
4 1 P a g e
Event Planning Services
From the time of contact through the end of an event, a Kittitas Valley Event Center staff
member is available to assist with the following:
• Creation of floor plans and room layouts
• Catering service provider recommendations
• Recommendations for other local services, hotels, music/lights, etc.
• Explanation of building, food/beverage service, security, liquor, and other permits
and policies
• Contracting services and assistance with event planning and preparation
• Event set-up and tear -down - moving tables/chairs between venues, cleaning, etc.
• Directions on the grounds, parking and on-call services during event
• Advice on how to make your event as zero -waste and low -impact as possible
• Kittitas Valley Event Center facility staff will set up and take down tables and
chairs in advance of, and after, events.
• Our facility staff follows event protocol and our Cleaning Action Plan to ensure a
clean facility that is prepared to client specifications.
• Our facility staff provides a Welcome Packet that includes keys for the facility, a
welcome letter, grounds rules, contact numbers for facility staff, and event
protocols.
• Our facility staff is on-call for assistance during and after events in the case of an
emergency, a problem with the facility, or a need for additional equipment or
support.
A typical event, when averaged over all events and all employees, involves:
Contracting and planning - 3 hours
Event set-up - z hours
On call services - i hour
Event clean-up - 3 hours
Billing/processing -1-z hours
Average staff time per
event = io-u hours
51 gage
Types of Facility Use
The Event Center proudly welcomes and supports a huge variety of events that range in
size, purpose, and audience that include:
• Social gatherings - reunions, dances, graduations, holiday parties, and more
• Non-profit fundraisers
• 4-H club meetings and events
• Memorials and remembrances
® Educational seminars
• Hobby and Recreational gatherings - like wood carvers, farriers, and fly fishers
• Corporate meetings
• Public and consumer trade shows
• Roping club and barrel racer events
• Retail shopping events
• Weddings and Receptions
• Community Events - like the Community Christmas Basket, Thanksgiving Dinner,
and Community Connect Day
• State Association conferences - like Back Country Horsemen and Search & Rescue
• Agricultural competitions and shows - like Junior, High School, and College
Rodeos, Cascade Cow Cutters, and more
• Government agency meetings
• The annual Kittitas County Fair & Ellensburg Rodeo
Many events are organized by local leaders and community groups, but the Event Center
also has significant use from organizers who appreciate the central location in the state
and the flexible spaces we offer. The Event Center rates are competitive and, in general,
well below par with other similar venues in nearby counties.
The County is obligated to provide a County Fair under Washington State Law. Through
an agreement - as detailed below - the County appoints an 18 -member Fair Board, who
works closely with Kittitas Valley Event Center staff, to plan and operate the annual fair.
The Ellensburg Rodeo, a non-profit entity, rents the Kittitas Valley Event Center under a
contracted fee each year.
The County Commissioners, over time, have supported the Event Center as a community
facility and, through contract or verbal approval, have agreed to provide the Event Center
to various groups/events for free or reduced -rate facility uses including:
Kittitas County Internal Uses
o facility use is free for department meetings, public hearings, and other
quasi -internal trainings/meetings
61Pa e
• Kittitas County 4-H Youth Development program
o most facility use is free under a contract with WSU; some use is provided at
a 70% discount
• Ellensburg Rodeo Posse
o facility use is free in exchange for promotional advertising for Fair/Rodeo
• Non-profit uses
0 20% discount to 501 c 3 eligible entities
• Other Free `Special' uses
o City of Ellensburg for 4 event rentals in exchange for use of Memorial Park
and Reed Park during Fair and Rodeo;
o Community Christmas Basket
o Moments to Remember
o Ellensburg Rodeo - Royal Court
o WA State Search and Rescue Conference
o Community Connect Day
o Elementary Ag Appreciation Day
Facility Rentals and Budget
Every facility rental influences the operations of the Event Center budget in the following
ways:
i. Staff Time
1. Event scheduling and contracting
2. Event planning assistance
3. Pre -event cleaning
4. Event set up - moving tables, chairs and other equipment between rooms
or between buildings or preparing riding arenas
5. Post -event cleaning
6. Revenue collection and processing of invoices
2. Operational Budget
i. Garbage disposal
2. Repairs to facilities or equipment damaged by renters
3. General facility maintenance and repairs
4. General equipment maintenance and repairs
5. Supplies and consumables
3. Capital Budget
1. Facility and equipment upgrades
71P -age
a. Large projects and capital expenses
Each time the Event Center hosts an event, we have to take into consideration expenses
and revenues and work to balance those needs through the annual budgeting process. We
also have to consider long-term wear and tear, deferred maintenance that occurs in any
government -run facility, expansion goals, project needs, equipment needs, and the larger
improvement projects identified by the Kittitas County Fair Board and the Ellensburg
Rodeo Association on an annual basis.
Income from short-term rentals of the facility is designed to cover expenses at the Event
Center. However, since its inception as a fairground, the revenue from facility rentals has
failed to meet the needs of regular facility maintenance, much less create revenue that
could be used for additional improvements at the facility. Thus, the Event Center relies
upon funding from the Kittitas County General Fund and grant funding from the Kittitas
County Lodging Tax fund on an annual basis just to cover annual expenses.
On average, unless there are special large projects planned, the Event Center runs a
$300,00o deficit which is backfilled by County general fund and lodging tax fund.
Create chart that tracks county contribution over io years - do we have that #?
81Pagee
The Challenge
The challenge identified by the Kittitas County Board of County Commissioners is for the
Event Center to become less dependent upon the general fund and the County lodging
tax program.
The contradictory nature of this challenge is that this must be completed while reducing
costs, controlling expenses, not undertaking major improvement projects unless outside
funding is secured, and not changing the existing free and reduced -cost community use
of the facility.
Thus, the Commissioners are in favor of strategies that include:
i. Increased revenue generation through:
a. Focusing on high ROI events
b. Increased rental fees
c. Other strategies as outlined in master plan (i.e.: dedicated sales tax)
z. Cost saving measures and strategies
a. Savings in regular maintenance
b. Savings in special projects
c. Securing grant funding or other funding for special projects
3. Maintaining existing staffing levels
4. Delaying major projects unless in the case of an emergency
5. Increased professionalism, customer service, and cleanliness
6. Providing high quality facilities and grounds while limiting expenses
91 'age
Facility Use of the Event Center by Kittitas County — Other County Departments
The Kittitas Valley Event Center provides meeting spaces for internal and quasi -internal
Kittitas County departments throughout the year. Most frequent uses include public
hearings, public advisory committee meetings, internal trainings, trainings that include
other government agencies, and use by the Sheriff for emergency training. The Event
Center is the identified evacuation facility in the event of a catastrophic emergency that
threatens animals in the County, like a fire, or that threatens the operations of County
government.
Financial Impact - $23,235 in lost potential revenue in 2017
2017 Lost Potential Revenue
$0.00 —
Free 4-H Non -Profit Free Special
($5,000.00) Discount
($10,000.00)
($15,000.00)
($20,000.00)
($25,000.00)
($30,000.00)
($35,000.00) t
($40,000.00)
Free 4-H -, Non -Profit Discount ■ Free County Free Special
4 For purposes of this report, "lost potential revenue" is the amount that the facility could collect IF it could
be rented out for the same time period at l00% of rental value
1oIPag
Facility Use of the Event Center by Community Groups
The Kittitas County Board of County Commissioners have identified several community
events that they feel are worthy of free use of the event center. Several of these events are
multi -day and none of them have contractual relationships with the Kittitas Valley Event
Center.
Financial Impact - $15,465 in lost potential revenue in 2017
2017 Lost Potential Revenue
$0.00 -- - ---
($5,000.00)
($10,000.00)
($15,000.00)
($20,000.00)
($25,000.00) - -
($30,000.00)
($35,000.00)
($40,000.00)
Free 4-H Non -Profit Discount Free County ■ Free Special
n�°age
Facility Use of the Event Center by the 4-H Youth Development Program
The Kittitas Valley Event Center is home to the annual Kittitas County Fair. From the first
organized Kittitas County Fair in 1885 to the modern five day event held each Labor Day
weekend, the fair has always been about agriculture. Now each year, as in 1923,
agricultural exhibits and competitions, a four day rodeo, a carnival, and other community
activities takes place at the Kittitas Valley Event Center.
4-H activities, families and their support systems figure heavily in the annual Kittitas
County Fair. Hundreds of 4-H kids exhibit everything from proudly grown pumpkins, to
knitted sweaters, constructed robots, to carefully stewarded steers and lamas. They and
their families commit hundreds of hours of effort, time, money and love over the year, all
leading up to the culminating show at fair. Some of them even go on to state and national
exhibitions.
Kittitas County has proudly supported 4-H over the years by providing facilities that
support the functioning of 4-H so that the bulk of funds raised through donations and the
highly successful livestock sale can go to support college educations, fledgling businesses,
or family vacations.
The Kittitas Valley Event Center holds a contract with Washington State University for
the operation of 4-H activities. The current contract is effective from January 1, 2017
through December 31, 2019.
The purpose of the contract is to accommodate facility reservations for fair related events,
special events, and all other qualified 4-H events, including club meetings. A qualified 4-
H event is defined as "an event by an actively enrolled club recognized by the statewide
WSU/Extension Oce and with activities that must lead to accreditation towards or
contribute to a performance level that leads to eventual judging or evaluation at the annual
Kittitas County Fair".
The scope of this contract results in the rental of various meeting spaces, barns, and
arenas to support the preparation of the 4-H Clubs for participation at the County Fair.
The contracted fee is $1.0o for the contracted dates and facility uses. In 2017 there were
402 individual facility uses by 4-H activities.
The contracted events include:
• Shooting Sports County Qualifier
• Dog Bowl & Judging Clinic
• Horse Novice Safety Training
• Beef Pre -Show
121Page
• Horse Judging Clinic
• Swine Clinic & Judging Contest
• Spring Leaders Show
• Horse Judging Clinic
• Poultry Show
• Rabbit/Cavy Pre -Show
• Sheep, Goat, Llama/Alpaca Pre -Show
• Swine Weigh -In
• Horse Fair Training Day
• Horse Pre -Show
• Recruitment Night
• Kittitas County Fair Carcass Awards
• Dog Clubs Practice Nights (unlimited)
• Regular Club Meetings (max 12/yr/club)
• Club Project Meetings (unlimited)
All other official 4-H club activities held on the Event Center are at a 70% reduction of
existing rates including usage of Bloom Pavilion, the Rodeo Arena, and the Hunt
Memorial Dog Arena. Normal bedding fees and exhibitors fees apply.
These 70% reductions include:
• Bits & Buckles Schooling Show
• Monday Night Horse Riding
• Recruitment Horse Show
• Bits & Buckles Gaming School Show
4-H also receives space to place a 25' trailer with 4-H concessions sold at other events
throughout the course of the year. Normal agreements that the Event Center has with
vendors do not apply to the 4-H concession trailer. This assists the clubs to raise funds for
their annual preparation for the Kittitas County Fair.
Financial Impact - $35,755 in lost potential revenue in 2017
131Page
2,017 Lost Potential Revenue
$0.00 - -
($5,000.00)
($10,000.00)
($15,000.00)
($20,000.00)
($25,000.00)
($30,000.00)
($35000.00)
($40,000.00)
❑ Free 4-H Non -Profit Discount Free County Free Special
14Page
151Page
4-H Gives to the Event Center
4-H, members, parents, and leaders volunteer a significant amount of volunteer labor
towards supporting the Kittitas County Fair and the Event Center annually. On average,
75-100 4-H volunteers set up the pens/stalls delivered to the barns by Event Center staff
every year during fair. In addition, 4-H horse/livestock clubs clean out stalls after some
non -4-H events. The hours reported below reflect pre-shows/county qualifiers, horse fair,
shooting sports fair events, judging events, fair -prep meetings, etc. These numbers only
reflect adult volunteers who officially logged hours. Youth do not log volunteer hours.
Total 4-H Program Volunteer Hours
6000
5000
4000
3000
Volunteer Hours
�J
2000
x 2%y i
1000
F '
0
2014 2015 2016 2017
201-7 Value of 4-H Program
Volunteers
$40,000 $35,609
$30,000
$20,000
$10,000 $7,284 $7,284
$0
4-H Fair 4-H Events Cow Cutter Events
$ Value
161Page
The Kittitas County Fair
As proclaimed in the Revised Code of Washington (RCW) 56.76.10o by the Washington
State Legislature, it is hereby declared that it is in the public interest to hold agricultural
fairs, including the exhibition of livestock and agricultural produce of all kinds, as well as
related arts and manufactures; including products of the farm home and educational
contest, displays, and demonstrations designed to train youth and to promote the welfare
of farm people and rural living. This proclamation is cross supported by RCW 36.37.010,
which states that the holding of county fairs and agricultural exhibitions of stock, cereals,
and agricultural produce of all kinds, including dairy produce, as well as arts and
manufactures, by any county in the state, and the participation by any county in a district
fair or agricultural exhibition, is declared to be in the interest of public good and a strictly
county purpose.
The board of county commissioners of any county in the state may acquire by gift, devise,
purchase, condemnation and purchase, or otherwise, lands, property rights, leases,
easements, and all kinds of personal property and own and hold the same and construct
and maintain temporary or permanent improvements suitable and necessary for the
purpose of holding and maintaining county or district fairs for the exhibition of county or
district resources and products (RCW 36.37.010).
The board of county commissioners of any county may appropriate and expend each year
such sums of money as they deem advisable and necessary for (1) acquisition of necessary
grounds for fairs and world fairs, (a) construction, improvement and maintenance of
buildings thereon, (3) payment of fair premiums, and (4) the general maintenance of such
fair. The board of county commissioners of any county may also authorize the county
auditor to provide a revolving fund to be used by the fair officials for the conduct of the
fair. The board of county commissioners may employ persons to assist in the
management of fairs or by resolution designate a nonprofit corporation as the exclusive
agency to operate and manage such fairs (RCW 36.37.040).
Under the authority from the State of Washington, the Kittitas County Board of County
Commissioners (BOCC) has tasked, by official resolution, the Kittitas County Fair Board
(KCFB) with the responsibility of producing an annual Fair in cooperation with the
BOCC. The KCFB's primary role of producing a county fair is to promote the importance
of the agricultural component of Kittitas County while emphasizing the positive impact of
the culture, economy, and history of agriculture of Kittitas County. The KCFB
accomplishes this task by highlighting education and appreciation of agriculture, natural
resources, environment, health, history, cultural enrichment, arts, entertainment, and
171 page
recreation. The KCFB is dedicated to continually upgrading the Fair and county facilities
in the belief that a strong county Fair benefits all residents of Kittitas County.
The KCFB performs its duties to the benefit of the residents of Kittitas County and to
those visiting our area. As an economic generator, the annual Kittitas County Fair attracts
thousands of visitors who stay overnight in local hotels, RV parks, and with friends and
family as they enjoy the Fair and Ellensburg Rodeo during Labor Day Weekend. These
visitors, on average, spend about 6181 per day between food, drink, lodging, and retail
shopping.
In 2017, which was a year beset by hot weather and smoke from local wildfires, the Fair
welcomed 64,92o attendees over the week with a local impact of approximately $3.5
millions.
Kittitas County Fair Board
First created in approximately 1920, the KCFB is an eighteen -member citizen advisory
board in which directors are appointed by the BOCC for three (3) year terms which report
directly to the BOCC. Director duties include overseeing areas which include but are not
limited to food concessionaires, commercial vendors, admissions, sponsorships, parking,
security, Home Arts, youth crafts and sciences, 4-H building, Bloom Pavilion,
entertainment, awards, fine arts, dogs, carnival, horses, cattle, swine, rabbits, cavies,
poultry, sheep and goats. As prescribed by county resolution, each KCFB director has full
charge of their respective area and is responsible for the proper management of said area.
It is the director's responsibility to organize their area, select superintendents, and
maintain a list of current duties and plans for their area of responsibility. Since each
KCFB director is a responsible for representing the Fair to the community, they are
required to promote the mission of the Fair in a strong, effective and professional
manner.
Although the BOCC has charged the KCFB with the responsibility of conducting and
managing the annual fair, the KCFB can only do so with help from the approximate —100
superintendent volunteers and Event Center staff. The KCFB, superintendents, and Event
Center staff work as a team towards the primary goal of putting on a quality community
event which celebrates local accomplishments while supporting and highlighting
educational experiences with local youth. As prescribed by county resolution, the Fair
budget is a sub -part of the county budget and is administered by the Event Center
5 Local impact is based on Dean Runyon report for tourists, who spend, on average, s18i/day in food and lodging, and i nights per visit;
many attendees to the Kittitas County Fair are locals, and so this number is calculated at a rate of 30% of attendees qualifying as
tourists.
181Paa
Director. As such, the Fair fiscal accounting, contracts, purchases of equipment,
materials, supplies, and services are in accordance with county accounting, contracts,
purchase order, and bid processes. The KCFB has authority to sign contracts up to $io,000
without Event Center Director signature.
Other Kittitas County Fair Associated Entities
The Kittitas County Friends of the Fair Grounds Foundation (FOF), a 501(03 non-profit,
was created in 1997 to help raise funds in support of capital improvement projects
associated with the annual Fair celebration. In past years, it has utilized funds generated
to support a 4-H brick project, bronze sculpture, equipment implements, drinking
foundations, livestock panels/pens, benches, picnic tables, bleachers and kitchen
equipment. In addition, it manages a low-income assistance program in which qualifying
patrons may obtain free entry into the annual Fair event and offers annual scholarships to
local high school graduating students.
The Kittitas County Fair Gives to the Event Center
The Event Center staff, even when hiring additional temporary staff for the months
ahead, would not be able to produce the high quality event that the community has come
to expect from the Kittitas County Fair. There is simply no way that the caliber and
substance of the current Kittitas County Fair could be completed without the astounding
personal sacrifices, passion, and dedication shown by the volunteers involved with the
Fair Board, the 4-H kids and their families, and the superintendents.
Although there is a financial impact in lost rental income to the Event Center due to
usage of the facilities by Kittitas County for the annual Kittitas County Fair event, the
celebration generates approximately -$450,000 in revenue during its five-day event. Fair
revenues are generated in support of the Kittitas County general fund. Fair revenue is
offset by event -related expenses, facility improvements, and Event Center staff expenses.
Fair event expenses are mitigated by many hours of effort being committed by KCFB
directors, superintendents, and volunteers on a year-round basis.
In addition to in-kind commitment levels, approximately --$125,000 of product and/or
services are donated or provided by local and regional entities in support of fair activities.
These in-kind volunteer hours, products and services are estimated below:
191 Pa'a -_
KCFB Directors
Fair Superintendents
Other Fair Volunteers
FOF annual donation
Donated products/services
Total In -Kind Commitment
Volunteer Hours
5,799
7,191
529
13.519
Value
$181,9957
$225,668
$14,302
$16,000
$125,000
$562965
Currently, there is no mechanism in the Kittitas County budget to capture the full value
of in-kind support, products and service of the Kittitas County Fair.
$2,50,000
$200,000
$150,000
$100,000
$50,000
$o
Value of Volunteer Hours
Value of Volunteer Hours
6 Calculated based upon the 2oi6 Bureau of Labor Statistics data figure, indexed by Independent Sector in April 2017
7 reduced by annual paid remuneration for Fair Board Members
20lPa,
The Community Gives to the Event Center
The Event Center also receives support from other community groups throughout the year. The
Ellensburg Rodeo Association rents the facility for their annual event and provides thousands of
hours of volunteer effort to generate the crowds and financial boon to the local economy. In
addition, the Kittitas County Sheriff is able to offer inmate workers to the Event Center on an
daily basis. On average, between 3 and 6 inmates are on the grounds nearly every day of the year
for up to 8 hours per day. This facility could not function and produce 3,60o events annually
without the support from the Kittitas County Sheriff.
• Rodeo Association - board members and top hands
• Church groups or other non 4-H groups/clubs volunteering time
• Inmate Worker hours
• WSU Master Gardeners and other garden clubs
2017 Volunteer Value
$1,451,520
$ia,000
$29,76o $60,000
Ellensburg Rodeo Community Volunteers WSU Master Gardeners Kittitas County Sheriff
Association & Garden Groups
8 Hourly value of volunteer time in WA State = $30.04
211Pagn-
Faculty Use
On an annual basis, if we were to calculate how much space is occupied by free and
reduced -cost uses9, the Event Center does not have access to approximately $107,849.99
in revenue (2017 value).
That $107,849.99 value reflects the amount of revenue that would have been generated if
the Event Center were fully booked during that time by full -price -paying events. We call
that lost potential revenue. This equates to an approximately 29% reduction in full rental
capacity.
That level of rental is not realistic;
but it does reflect the i00% capacity retail value of the Event Center for
those times when free or reduced -cost events are on the grounds.
If we accept that the numbers in the chart below reflect i00% use" of the Event Center,
then the free and reduced -cost uses are indicating how much reduced capacity there is for
full rental of the Event Center.
In other words, if we could rent at i00% full -price year-round, the Event Center would see
revenues in the $450,000,000-$500,00o range annually, rather than the $380,00o we
generate now. Our 2017 numbers reflect a $380,00o revenue level from full -price -paying
$450,000.00
$400,000.00
$350,000.00
$300,000.00
Free 4-H
Non -Profit Discount
$250,000.00
Free County
$200,000.00
- Free Special
$150,000.00
Free Posse
$100,000.00�o%
4-H Discount
$ 0,000.00
5
.
''
�;'
_ Rental Revenue
$0.00
_..
($50,000.00)
($100,000.00)
e This value does not include Fair and Rodeo
io These totals are based on individual space rentals per day
221 P age
rentals.
The capacity for rental (and by association for revenue generation) of the Event
Center is influenced by the amount of free and reduced -cost rentals approved by the
Kittitas County Board of County Commissioners.
Thus budgeting and long-term planning should take into account the actual space,
at any given time, which is available for rent.
Therefore, budget expectations for revenue generation and expenses should be
predicated on the understanding that, for all intents and purposes, the Event Center
can only EVER rent out about 70% of its space.
This example is just for the purposes of showing that the Event Center has reduced
capacity for full -price rentals - there is obviously no conceivable way we could run at full
capacity all the time, but it does show our ACTUAL/PRACTICAL full capacity is only
about 7o%.
If we were able to capture the full value of volunteer hours (at the volunteer
rate of $30.04) and in-kind support given to the Event Center on an annual
basis in our budget, as should occur given the extraordinary amount of time
given to the facility, our revenues would be in the $2,546,422.00 range.
231 page
Background Data for Coag Term Planning
Throughout 2017, the Event Center Director, in partnership with the Kittitas County
Board of County Commissioners, was tasked with looking at facility use as it related to
revenues, decreasing reliance on the general fund, and overall facility improvements.
As a result, the Event Center Director began several planning programs to address;
• Structural deficiencies
• Rental strategy and pricing strategy
• Daily maintenance needs
• Marketing goals
• Staffing planning and needs
• Long-term and Capital Planning
• Overall facility maintenance planning addressing buildings, grounds, and
equipment.
A requirement of long-term planning is having reliable background data upon which to
base decisions and strategies. Unfortunately, the Kittitas Valley Event Center does not
have a comprehensive software system that tracks our facility use statistics in an easily
reportable fashion. However, the staff spends time every year assessing our annual rentals
(3,656 space rentals in 2017) to highlight our patterns of use and to manage daily
operations of the Event Center. By compiling statistics we can inform long-term planning,
facility management planning, and capital planning.
In 2017 we looked through our data to find details relating to the following items:
i. What were the most frequently rented spaces or packages
a. this allows us to review and update our pricing policy on an annual basis
2. What types of events/rentals have the best ROI (return on investment)?
a. this allows us to target our marketing and recruitment efforts to
events/rentals that have low input and high return
3. What was the frequency and dollar amount of free and reduced space uses
a. this allows us to compile statistics that impact our revenue generation
potential and inform decision -makers about the implications of free and
reduced -cost facility use
24I PabP
i. Our research on the most frequently rented spaces includes the following results:
• Smaller rooms are rented more frequently
• Teanaway Hall is rented nearly twice as often as Umtanum Hall (57 times vs 28
times)
• 2 -hour minimum private rides in Bloom Pavilion are the most frequent use (350
rentals)
• Western Town is an underutilized resource - the VIP/Dancehall is rented
jprimarily. For the price and atmosphere, marketing should increase for this venue.
• RV camping is popular when associated with events, but not used much otherwise.
We should increase this use as the ROI is high.
• Haul -In Passes during winter are a huge revenue provider with little input. We
should consider an additional indoor arena to expand these offerings.
• Armory Hall is the most frequently rented large facility on the grounds. We should
expand this use to mid -week and day -time large groups.
• Kitchens are a fantastic resource for our clients and give us a competitive
advantage over other venues; they should be invested in to increase revenue.
• Overnight horse stalling is a huge revenue producer with very little input. Almost
all use is associated with a specific event.
2. Our research shows that the highest ROI on events include the following types":
State Agency Year -Round up to Public or by Low/High
Gatherings 2/month Invitation
RV Camping and Camping Spring -
Haul -In Passes
Summer
Haul -In Winter
Private Events,
Year -Round up to
Meetings, Parties,
20/month
and Rides
Trade Shows/Large
Commercial Events
Over -Weekends
20/year
Public Low/High
Private Medium/High
Public Medium/High
" This does not include Fair and Rodeo which both have high costs and high benefits
251Fage
3. Our research shows that the Event Center offers the following discounts or free
uses in terms of lost potential revenue:
Discount Description Discount Rate Estimated Lost Potential Revenue
(based on 2017 uses)
Non -Profit Discount 20% $ (23,846.99)
Free Special 100% $ (15,465.00)
Free Posse 100% $ (7,700.00)
70% 4-H Discount 70% $ (1,848.00)
Free 4-H 100% $ (35,755.00)
Free County 100% $ (23,235.00)
Total Lost Potential Revenue $ (107,849.99)
261Page
Strategies and Approaches
Since the effective rental capacity of the Event Center is about 70% on an annual basis, it
becomes important to strategically fill the Event Center with high ROI activities in order
to maximize revenue whenever possible.
Thus in 2oi8, the Event Center proposes the following strategies:
i. Adopt new rates that reflect an overall 5% increase
a. Create a 5% fund for maintenance and repairs that is supported by short-term
rentals of the facility
3. Create "quick rooms" for small meetings that do not require contracts or pre-
registration
4. Craft a "master contract" to facilitate easy rental for state agencies
5. Increase our direct marketing to and recruitment of high ROI events, customers
and target audiences
a. E.g.: State -Wide groups and associations
6. Create an Historic Barn Fund that is funded through self -promoted events
a. E.g.: ChillAxle car show
7. Design creative funding strategies that reduce reliance on County General Fund
and Lodging Tax Funds
8. Work with our larger events - like SAR Conference and others - to bring in
revenue -generating supportive events
a. E.g.: The Gear Show
9. Consolidate free and reduced -cost facility uses into the less -frequently rented
spaces in order to maximize revenue -generation
a. E.g.: larger 4-H groups could use Umtanum Hall during the week to free up
smaller, more frequently rented spaces
b. E.g.: County facility uses for internal meetings are moved into less
frequently rented spaces
c. E.g.: Full paying rentals are prioritized over non-profit rentals
d. E.g.: Contracts with entities are renegotiated to support Event Center
revenue generation whenever possible
io. Create and promote an Event Center Sponsorship Program including naming
rights and other innovative opportunities
a. Partner with Kittitas County Fair and Ellensburg Rodeo sponsorship
programs, to the extent possible
ii. Adopt a new Policy related to County internal use with cost -recovery mechanisms
identified
ia. Identify and apply for relevant state and local grant programs to support:
271 Page
a. Events
b. Facility improvements
c. Operations
13. Continue to identify and implement cost savings measures including:
a. Energy conservation strategy - turning down the heat and a/c, turning off
the lights, etc
b. Changing suppliers to local sources with more competitive rates
14. Pursue improved relationship with the City of Ellensburg and secure support from
lodging tax for Event Center operations
Long -Perm Funding Strategies
Corporate Sponsorship program
The last time you attended an event, whether large or small, you probably noticed
products and services from companies throughout the venue. A variety of corporations
display banners or advertisements with logos, products or services to arouse customers'
interest. This is a way for companies that serve the community to participate in special
events and causes. In addition, many companies sometimes invite consumers to
experience and interact directly with products to gain new customers or build brand
awareness.
An organization decides on the various levels of sponsorship, and the event organizer
negotiates with a company's marketing department about the level of sponsorship. This
also includes the items or benefits a company receives for sponsoring an event. Sponsor
levels vary and do not always involve an exchange of money.
The Kittitas Valley Event Center has structured a sponsorship program to engage with
local community businesses and organizations that includes several different levels and
opportunities to reach our 150,00o annual visitors. See Appendix A for DRAFT
sponsorship document.
KVEC Presents — Self -Promoted Events
ChillAxle 2018 -
Most people wonder what the big deal is with car shows and what is so good about them?
The answer is cars, cars, and more cars! Car shows build community and bring visitors
from far away with people traveling hundreds of miles to show off their cared -for custom
and classic cars. Add in a fun and energetic RC competition (remote control cars) that
brings in families to the grounds to watch these little cars careen and speed around a
temporary race track, and you have an unmissable event!
281Page
It just so happens that the Kittitas Valley Event Center is perfectly designed to plan and
host an event that welcomes hundreds of classic and RC cars to our grounds for a
Saturday of good family fun.
We will bring in concession vendors, commercial vendors and live music to round out
this event celebrating our cultural obsession with cars. The event will begin on Saturday
morning with a cruise -in of the classic cars - they will be parked along the inside parking
lots bordering the grassy areas on the grounds. Food and vendor tents will be set up on
the outside edges so that they are easily reachable. The large stage will be set up in the 4-
H seating area for entertainment. The RC car race course will be set up in Bloom Pavilion
and audience seating will be in the bleachers.
Gear Show
In partnership with the Washington State Search and Rescue annual conference, the
Event Center is planning a Gear Show to support the loss of rental revenue during the
week of the conference. The Board of County Commissioners has supported the week-
long rental of nearly the entire facility for the SAR Conference for free. Thus, in order to
capture some revenue during that time period, the Event Center has devised a supportive
Gear Show, that will also be open to the public, during the weekend of the Conference.
We hope to make this an annual event and encourage the conference to return on an
annual basis.
Historic Barn Fund
The Historic Barn Fund would be a dedicated source of funding to make approved
improvements to the barns and associated livestock facilities on the grounds of the
Kittitas Valley Event Center. Other County Fair facilities have established similar
programs/funds and have found it to be a successful way to raise capital for improvement
projects.
The Kittitas Valley Event Center Director would establish a list of projects - based on the
Master Plan - and approved by the Kittitas County Board of County Commissioners (with
concurrence from Fair Board/Friends of Fair and 4-H groups). The list would be
prioritized and projects would be implemented based on amount of funds raised in a
given year.
Grant Funding and Project Support
The Event Center qualifies for several state and local grant programs. The Kittitas Valley
Event Center Director should continue to identify and apply for grant funded projects
and programs including facility improvements, event support, and general operations.
291?Paae
D�
The Event Center staff is committed to the following goals in 2018.
1. To support community sponsored events continuing our long tradition of 4-H
Youth Development Program support and staffing the Kittitas County Fair
2. To maximize revenue-producing events during available rental periods (both EC -
produced and external events) to support implementation of improvement
projects, increase staffing, and reduce reliance on external funding sources.
3. To create a Long -Range Operating and Development Plan that contemplates a
Public Facilities District or a .oi% Sales Tax dedicated to the Event Center.
4. To implement the zoi8 Sponsorship Program that will increase funding to both
the Event Center while not negatively impacting the Kittitas County Fair or
Ellensburg Rodeo sponsor funding.
a. Include a Barn Fund program to improve 4-H facilities
b. Create an annual grants calendar and fundraising plan
5. To implement improvements in event venue management software systems
including ShoWorks (for Fair) and update our venue management software (for
Event Center) in order to maximize staff effectiveness.
6. To implement LEAN management principles:
a. The core idea is to maximize customer value while minimizing waste.
b. Simply, lean means creating more value for customers with fewer resources.
7. To provide outstanding customer service that is both consistent and professional.
a. All clients - including those enjoying free and reduced -fee facility uses are
equal and equally important to the functioning and community value of the
Event Center
8. To provide facilities and amenities capable of hosting a variety of corporate,
agricultural, community and special events.
9. To increase our marketing and promotional efforts in order to attract higher ROI
events to the facility.
a. Branding and marketing campaign - new logo and style guide
b. Online presence - YELP, UniqueVenues.com, FB and others
c. Website overhaul and launch
d. Lodging tax request - support of marketing efforts
e. Photo gallery - working with professional photographers
io. To upgrade, modernize, and enhance facility buildings, site and services, within
reasonable budget parameters and in consideration of historic site guidelines.
ii. To actively promote facility use to local, state, regional and national event and
meeting planners.
a. Include direct marketing to meeting planners and event venue publications.
12. To maintain and improve the partnerships with the Kittitas County Fair Board
and the Ellensburg Rodeo Association in support of the Annual Labor Day
weekend activities.
13. To maintain and improve the partnerships with local community organizations
and government extensions to support their programs and activities.
3olpzcc) o
14. To create policies and guidelines that are consistent with Event Venues and as
promoted by the International Association of Venue Managers.
15. To improve and prioritize employee safety, education and training, and support
workplace improvements for all Event Center staff.
311 Page
Conclusion: The Big Picture ... Community Benefit vs Revenue Generation
Weighing and balancing the need to generate revenue while providing community
benefit is no easy feat. However, long-term planning and the ability to ensure the
continuation of the Event Center as a community resource relies upon being able to
predictably create an accurate annual budget that adequately provides for staffing levels,
facility maintenance, and facility improvements.
How do you measure the importance of a facility that many people in the urban
community don't realize exists and/or don't understand how it is run/paid for/functions?
What is the loss to the urban community of Ellensburg if the Event Center no longer
functions? What is the loss to the rural community of Kittitas County if the Event Center
no longer functions? How many families are impacted? How do you measure community
benefit and the consequent loss of that benefit, and how does that impact budgeting and
being able to afford to operate the Event Center?
COMMUNITY BENEFIT:
FUNCTIONING EVENT CENTER, 4-H YOUTH
DEVELOPMENT PROGRAM, ELLENSBURG RODEO, AND
KITTITAS COUNTY FAIR
We can determine the economic impact were the Event Center to close - there would be
a significant loss of funding going directly to the City of Ellensburg and direct spending to
businesses located within the City - but how do you measure the loss to community
cohesiveness/identity, and family/feelings of ownership of the Event Center by some
members of the community?
If 4-H involves 1 in every io children in the lower county, where does that engagement go
if the Event Center closes? We know that 4-H does not just impact the children, but their
321Page.
extended family - siblings and parents and grandparents ... all become involved in 4-H by
default. Without 4-H Youth Development Programs, the Kittitas County Fair becomes
just some rides and food without a celebration of the agricultural heritage of our
community. The impact and community pride - really the reason for having a fair at all
(by charter they are to focus on agriculture) - goes away. As the popular TV show Parks
and Recreation says of fair "it's where fun meets awesome... meets agriculture."
Without understanding the big picture it is difficult to plan for the continuation of the
Event Center as a community resource. Currently, the Event Center accesses funding
from the County general fund that could otherwise be used for essential community
facilities (roads and bridges), public health funding, sheriff and safety services, and other
critical county functions.
The Event Center is not a critical county function - it is a benefit and an amenity to living
here - but other than serving as an evacuation facility in the event of a mass emergency,
the Event Center serves as a `quality of life' facility. Kittitas County Government structure
is not designed to provide quality of life facilities - it is designed to support critical
functions and public safety requirements. Financially, there are few ways for the County
Government to support a venue like the Event Center unless taxes (sales and property)
are raised and dedicated to the Event Center. That is not palatable with current
leadership nor with the voters.
The economic generation that the Event Center creates from hosting events - local sales
taxes, lodging tax and direct spending - all directly benefit the City of Ellensburg. Very
little of the sales or lodging taxes support the County and none of the revenue generated
replenishes the general fund (the exception being revenues from the Kittitas County Fair
go directly to the general fund). The City of Ellensburg does not currently support any
operational functions of the Event Center - a relationship that needs to evolve and
change, moving forward.
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The annual Kittitas County Fair is a community celebration in which many parties
(BOCC, KVEC, superintendents, 4-H, FFA and other volunteers) must work in tandem to
produce. For the annual event to be successful, each of the parties must be integrally
involved. One party, without the others, could not produce the successful event which it
has grown to become over the last 125 years.
Although there is a tangible loss of rental capacity from free and reduced -cost uses of the
facility, the revenue generation from fair, direct and indirect spending in the community
from events hosted at the Event Center, in-kind support from volunteers, in-kind
products and services provided, and focus on the interest of the public good, are all
important considerations against the financial impact borne by the county.
Overall, the Board of County Commissioners should take into consideration that the
Event Center is an important community resource that not only provides economic
generation for the surrounding community, but also provides a sense of place to a
significant number of community members engaged in local traditions like rodeo, 4-H,
community Christmas basket, fair, and others.
The Board of County Commissioners has agreed to provide approximately 30% of the
Event Center to free and reduced -cost uses on an annual basis. That means that of the
3,60o events we hosted in 2017, we were only able to charge full price for -1,610 of them.
From those 1,610 events the Event Center generated $380,00o in rental revenue. With
3,60o events last year - which does not include the month of Fair/Rodeo - the event
center had, on average, ii uses per day, every day of the year.
That means the Event Center is running at capacity.
More events are not necessarily going to get us to revenue neutral or revenue positive.
Instead, the Event Center should focus on maximizing revenues during those times when
we can welcome full -paying uses, and consolidating free and reduced -rate uses into less -
frequently rented spaces, using the strategies outlined above.
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