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HomeMy WebLinkAbout2026-10-26-minutes-ec-study-sessionKITTITAS COUNTY COMMISSIONERS EC Study Session Regular Meeting Monday October 26, 2026 - 10:00 AM BOCC Conference Room 206 West 5th Room 108 - Ellensburg 1. Call to Order 2. Citizen Comments (1 min. time limit) 3. Executive Session under RCW 42.30.110 (1) To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. 4. Sponsor Budgeting 5. Other Business - No Action to be taken 6. Concluded Kittitas County is committed to making its services, public meetings, programs, and activities readily accessible to individuals with disabilities in accordance with the Americans with Disabilities Act (ADA). Reasonable accommodations will be provided upon request. To request an accommodation, please contact the Kittitas County ADA Coordinator as soon as possible to allow sufficient time for the County to make the necessary arrangements. A Request for Accommodation form is available at the Kittitas County Courthouse. You may also request a form or submit an accommodation request by contacting the Kittitas County ADA Coordinator at (509) 962-7082 or hr@co.kittitas.wa.us. Created on 10/23/2026 10:23:02 PM KITTITAS COUNTY EC STUDY SESSION MINUTES BOCC CONFERENCE ROOM, 205 WEST 5TH ROOM 108 - ELLENSBURG Regular Meeting MONDAY 1 10:00 AM October 26, 2026 Board members present: Chairman Brett Wachsmith, Vice -Chairman Laura Osiadacz, Commissioner Jeff Leichleiter Others: Event Center Director Kady Porterfield, Civil Deputy Prosecuting Attorney James Mccubbin 1. Call to Order 10:01 a.m. 2. Citizen Comments (1 min. time limit) None 3. At 10:01 a.m. Chairman Wachsmith announced the Board, Porterfield, and Mccubbin would recess into Executive Session, for 5 minutes under RCW 42.30.110 (i) To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. Action to direct staff was anticipated. At 10:06 a.m. the board reconvened out of executive session. At 10:06 a.m. the board recessed into executive session for 8 minutes. At 10:14 a.m. the board reconvened out of executive session with directions for staff to draft a letter with legal advisement and return to BOCC for review and approval. 4. Sponsor Budgeting: Porterfield presented the attached staff report, after which the Board discussed the options presented to them. Vice -Chairman Osiadacz asked whether issuing a Request for Proposals (RFP) was an additional option. Porterfield explained that the amended agreement is limited to the existing relationship among Legends Casino and Hotel, the consultant, and the Event Center. Staff will pursue any future sponsorships in-house, with no commission paid. However, if the Board preferred not to have staff pursue new facility sponsorships internally, an RFP process could be used to procure outside services for sponsorships not associated with the existing Legends Casino and Hotel agreement. Mccubbin asked about the intent and purpose of the original agreement. Chairman Wachsmith explained that it was intended to generate unique funding for capital improvements at the Event Center. Porterfield added that, when the consultant was retained in 2019, she had identified several Event Center facilities for potential naming -rights sponsorships; however, the Legends agreement was the only sponsorship secured by the consultant. 2026-10-26 MINUTES Commissioner Leichleiter stated that the staff report's research findings aligned with his experience in the private sector and confirmed that the current commission rates are above typical market rates. He recommended a 15% commission rate moving forward, with an incentive for the consultant to negotiate higher sponsorship amounts. Vice -Chairman Osiadacz agreed and recommended a 20% commission on sponsorship revenue above the current annual agreement amount during the first year of a renewal. For example, the consultant would receive 15% of a $75,000 annual sponsorship and 20% of any additional amount above $75,000. If the consultant negotiated an annual payment of $100,000, the consultant would receive 15% of the first $75,000 and 20% of the additional $25,000. Following further discussion, Porterfield asked whether the 20% incentive would apply to each year of a multi -year Legends agreement or only to the first payment year. Commissioner Leichleiter confirmed that the incentive should apply to each payment year under the negotiated multi -year agreement. The Board directed staff to update the draft Professional Services Agreement for legal review. The revised agreement will provide for a commission of 15% of the renewed sponsorship amount, up to the amount of the immediately preceding Legends Casino and Hotel sponsorship arrangement, and 20% of any sponsorship revenue above that amount. These commission rates will apply each time the Legends Casino and Hotel sponsorship arrangement is renegotiated, which is expected to occur every three years. 5. Other Business: None Meeting adjourned at 10:50 a.m. Kady Pa,p4errield 2026-10-26 MINUTES 2 KITTITAS COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Brett Wachsmith, Chairman �S�roEs...ru r�E KITTITAS VALLEY EVENT CENTER �• ' s"` °� Home of the Kittitas County Fair and Ellensburg Rodeo TAS VALLEY' ��° _ v 901 E. 7`h Ave, Suite 1, Ellensburg, WA 98926 �{](,at e1' EventCenter@co.kittitas.wa.us Office (509) 962-7639 ti KITTITAN. Ct7RElYTY Fax (509) 962-7010 STUDY SESSION STAFF REPORT STUDY SESSION DATE: October 26, 2026 AGENDA ITEM: Sponsor Budgeting LEAD STAFF: Kady Porterfield, CFE Kittitas Valley Event Center Director ACTION REQUESTED: Decision and Direction BRIEFING SUMMARY: - The KVEC Director is seeking direction from the BOCC on how to proceed with sponsorship consulting as it affects the 2027, 2028, and 2029 budgets. - The current consulting contract is being updated to require compliance with the County's Sponsorship and Donation Policy, originally approved by the BOCC on March 24, 2025. The proposed revisions also remove the restriction on others securing sponsorships for KVEC and specify that the consultant's work will continue for the existing sponsor. Legal counsel has also advised that the agreement should be executed under the County's general Professional Services Agreement (PSA) to meet the County's other contracting requirements. - The sponsorship agreement with Legends Hotel and Casino is currently set at $75,000 per year through 2027. Payment for the 2027 sponsorship year is expected in the fourth quarter of 2026. - Because of personal ties between the KVEC Director and the consultant, the BOCC is being asked to provide direction to ensure the decision -making process is clear and unbiased. BACKGROUND: In December 2024, when discussions about the County policy first began, the KVEC Director notified the consultant in person that contract updates would be needed once the policy was approved. The Director also expressed an interest in developing new sponsorships in-house. The consultant agreed and said they wanted to continue working only on the sponsorship arrangement with Legends Hotel and Casino. On November 26, 2025, the KVEC Director met with the consultant to resume discussions about the contract amendments. Following advice from counsel, the Director explained that the amendments would be made through the County's Professional Services Agreement to ensure the agreement addressed all County requirements for professional services. The Director told the consultant that a revised PSA would be available for review in December. On December 16, 2025, the KVEC Director emailed the consultant to say that the draft agreement was nearly ready for review. The Director also raised the possibility of discussing compensation for any future sponsorship renewal work related to a 2028-2030 sponsorship agreement. Following education and research at the annual International Association of Fairs and Expos (IAFE) Convention, and inquiries to other fairs, the Director believed that reviewing the compensation rate was important as KVEC worked on longer -term County budgeting goals and capital -planning projects. The original contract did not distinguish between the commission rate for a renewal and the rate for securing a new sponsor. Instead, it provided for a staggered commission of 30% on amounts up to $50,000 and 35% on amounts above $50,000. The sponsorship arrangement and renewal process are now more established and straightforward. The budget cannot sustain the existing flat commission structure, which research indicates is higher than industry standards. The County has paid this rate for six years: three years under the original agreement and three years under the first renewal agreement with Legends Hotel and Casino. The consultant asked to cancel a scheduled meeting with the KVEC Director to discuss the contract and provide input on revising the commission rate. The consultant wanted additional time for legal counsel to review the contract and said they would follow up to reschedule. On June 1, 2026, the KVEC Director followed up because she had not heard back. The Director explained that she had limited time remaining to work on the contract before becoming occupied with the Fair/Rodeo and Grandstands. The consultant responded that there was an issue with complying with the policy because the Tribe that operates Legends Hotel and Casino would not sign a formal sponsorship agreement. The KVEC Director brought the issue to Legal and the Treasurer's Office to review the County's Sponsorship and Donation Policy and determine whether it could be amended to allow a different, acceptable form of official documentation for Tribal sponsorships with the County. On July 24, 2026, the consultant sent the KVEC Director a list of other requested changes to the PSA. The Director advised that the policy changes were progressing, but that work on the PSA would need to resume after Fair and Rodeo because of the time of year. The Director also requested an updated commission proposal, with justification, for consideration. No response was received. The KVEC Director's proposed policy language was agreed upon by Legal and the Treasurer's Office and advanced to the BOCC for final approval. The BOCC approved the amended policy by resolution on September 28, 2026. The KVEC Director is now seeking direction from the BOCC on the commission rate. A meeting with the consultant is scheduled for Wednesday to review the contract in -person. The Director would like to present the consultant with the commission rate that will apply to future Legends sponsorship renewal, which is expected to be negotiated in the coming year. DISCUSSION: The KVEC Director's research indicates that the majority of fairgrounds and event centers manage sponsorships in-house and do not pay additional commissions for securing sponsors. The Director found the following examples of commission arrangements: - A slightly smaller fair and comparable event -center operation in Lloydminster, Canada, pays 12% for new sponsorships and 8% for renewals to a contractor. - A larger county fair in Redmond, Oregon, pays a contractor a flat 20% for both new sponsorships and renewals. - The Central Washington State Fair pays a staff member a base salary, plus commissions that vary according to the type and scope of the sponsorship. Commissions for sponsorships range between 6% to 30% with only brand-new sponsorships being as high as 30. The highest commission paid for renewals is 12%. - The Cow Palace in Daly City, California, which hosts the Grand National Rodeo each year (operates as both a rodeo and a fair) has comparable event attendance to the Kittitas County Fair and Ellensburg Rodeo. However, the Cow Palace has more than one million annual visitors, compared with fewer than 250,000 for the local events, and is located in a city with a population approximately 80% larger. The Cow Palace pays a flat 10% commission for both new sponsorships and renewals. The KVEC Director also surveyed an independent, unaffiliated sponsorship professional based in Central Washington with more than 35 years of industry experience. This professional has worked both as internal staff with a salary -and -commission arrangement and as an independent contractor paid by commission. The Director asked what they would consider a fair market rate for managing a facility sponsorship relationship under a multi -year agreement, they said 15% to 20%. Setting a renewal commission for the Legends sponsorship would allow capital -improvement funding to go further and help keep projects moving. It would still provide compensation for the work involved in managing the renewal every three years and handling the Yakama Nation vendor -license application and payment process each year. The KVEC Director supports a fair approach that recognizes the consultant's role in establishing the sponsorship arrangement while providing reasonable compensation to the consultant and the County, based on industry standards and the amount and complexity of the work involved. Option A: Continue with the rates in the original 2019 contract: 30% on amounts up to $50,000 and 35% on amounts above $50,000. Option B: Set a renewal commission rate of either 10%, 15%, or 20%. Option C: End the consulting services and assign responsibility to staff, with a 0% commission rate. The KVEC Director advises against this option. FISCAL IMPACT: Option A - $23,750 Expense Option B — Variable Range: $7,500, $11,250, or $15,000 Expense Option C — Savings of $23,750 RECOMMENDATION: Decide on a renewal rate under Option B, providing direction to the KVEC Director on how to proceed INTERACTION: Kittitas Valley Event Center Kittitas County Prosecutor's Office Board of County Commissioners Legal Review? Yes Finance Review? No