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HomeMy WebLinkAboutColumbia Basin College Foundation - 2023 Lodging Tax Funding AgreementLODGING TAX FUNDING AGREEMENT Between City of Pasco and Columbia Basin College Foundation THIS AGREEMENT is made and entered into by and between City of Pasco, a municipality within the State of Washington, with its principal offices at 525 N. 3rd Ave., Pasco, Washington 99301 (hereinafter "City"), and Columbia Basin College Foundation, a non-profit organization with its principal address at 2600 N. 201h Avenue (hereinafter "Subrecipient"). DEFINITIONS Tourism Promotion. "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 the marketing of or the operation of special events and festivals designed to attract tourists. 2. Fund(s). "Fund(s)" is defined as any amount of compensation derived from the lodging tax monies of the City of Pasco which is allocated to subrecipient for tourism promotion. WHEREAS, lodging tax, also referred to as the hotel -motel tax, is a consumer tax on lodging charges for periods of less than 30 consecutive days for hotels, motels, rooming houses, private campgrounds, RV parks, and similar facilities; and WHEREAS, lodging tax revenues are limited to parameters established by RCW 67.28.1816 for activities, operations, and expenditures designed to attract visitors and create business and revenue in the City of Pasco; and WHEREAS, the Pasco Municipal Code 3.161 outlines how Hotel/Motel Excise Tax Funds are received and, the process for application of funds; and WHEREAS, the Lodging Tax Advisory Committee meets annually to make recommendations to Pasco City Council on the allocation of lodging tax revenues. IN CONSIDERATION of the terms and conditions contained herein, the Parties covenant and agree as follows: 1. Effective Date and Term. This Agreement shall commence when executed by all parties remain in effect until December 31, 2023, unless terminated by the City in writing. This Agreement consists of this Agreement and the following attached Exhibit A, B, and C, which are incorporated herein by this reference. 2. Purpose of Agreement. The purpose of this Agreement is for City and subrecipient to Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation promote tourism in the City of Pasco. City agrees to make funds available to subrecipient for the purpose of tourism promotion in an effort to attract visitors and create business and revenue in the City of Pasco. 3. Administration. The Assistant City Manager or designee shall administer and be the primary contact for subrecipient regarding terms of this Agreement. For good cause, as solely determined by City, City may direct that subrecipient is no longer entitled to the use of said funds for tourism promotion and terminate this Agreement. 4. Lodging Tax Funds. The City agrees to reimburse the subrecipient a total sum not to exceed $10,000, as approved by Pasco City Council, within 28 days of submittal of a request for reimbursement and reporting requirements under RCW 67.28.1816. Payment. City shall pay the subrecipient upon presentation of an invoice and reporting requirements to City. Subrecipient shall be responsible for showing that the City funds were used for tourism promotion. City reserves the right to withhold payment of funds under this Agreement which is determined in the reasonable judgment of the Assistant City Manager or designee to be noncompliant with the scope of work, City standards, and City ordinances, or federal or state law. 6. Restriction on Expenditures. The [Subrecipient] understands that this Agreement is governed by the restrictions mandated for use of Lodging Taxes and all expenditures are subject to full disclosure to the City in order to show compliance with said requirements. The [Subrecipient] further understands that all expenditures shall be for the purpose of promoting tourism into the City of Pasco. The [Subrecipient] shall provide documentation in support of its efforts. The [Subrecipient] further agrees to cooperate with and furnish any requested documents to the State Auditor upon request. 7. Reporting. RCW 67.28.1816 as amended includes reporting requirements for the subrecipient and the City on the use of funds distributed pursuant to this Agreement and the estimated and actual number of increased visitors. These reports are required to be provided from the subrecipient to City and from the City to the Joint Legislative Audit and Review Committee (JLARC). The following provisions allow the subrecipient and City to meet their respective requirements under RCW 67.28.1816. a. Estimated Increase in Visitors. As part of its LTAC application (Exhibit A), the subrecipient shall provide the City with an estimate of the number of visitors resulting from the use of funds under this Agreement. b. Final Report on Increase in Visitors. Upon completion of the tourism promotion as specified in Exhibit A of this Agreement, but no later than the last working day in January of the year after funding was received, the subrecipient shall complete a report substantially in the form of Exhibit B and provide to the City a final report of the number of visitors resulting from the use of funds under this Agreement and expenditures and uses of funds under this Agreement. The numbers of visitors shall be based on an actual count, or if it is not practical to make an actual count, a good faith best -estimate of the number of visitors Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation 2 resulting from the use of funds under this Agreement. The final report shall describe the methods used to determine the actual number of visitors, or in the event such numbers were determined from an estimate, the methods used to determine such estimates. c. City Reporting. The City shall provide the subrecipient's estimates in Exhibit A and final report in Exhibit B to MARC as part of its annual report. 8. Termination. The City may terminate this Agreement, for convenience or otherwise and for no consideration or damages, upon prior notice to the Subrecipient. 9. Independent Contractor. Each party under the Agreement shall be for all purposes an independent Contractor. Nothing contained herein will be deemed to create an association, a partnership, a joint venture, or a relationship of principal and agent, or employer and employee between the parties. The Subrecipient shall not be, or be deemed to be, or act or purport to act, as an employee, agent, or representative of the City for any purpose. 10. Indemnification. The Subrecipient agrees to defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from and against any and all claims, injuries, damages, losses or expenses including without limitation personal injury, bodily injury, sickness, disease, or death, or damage to or destruction of property, which are alleged or proven to be caused in whole or in part by an act or omission of the Subrecipient, its officers, directors, employees, and/or agents relating to the subrecipients' performance or failure to perform under this agreement. The section shall survive the expiration or termination of this agreement. 11. Compliance with Laws, Guidelines. The Subrecipient shall comply with all federal, state, and local laws and all requirements (including certifications and audits) and Program Guidelines, to the extent applicable, when seeking reimbursement. 12. Maintenance and Audit of Records. The subrecipient shall maintain records, books, documents, and other materials relevant to its performance under this agreement. These records shall be subject to inspection, review and audit by the City or its designee, the Washington State Auditor's Office and Program Guidelines for seven (7) years following termination of this agreement. If it is determined during the course of the audit that the subrecipient was reimbursed for unallowable costs, the subrecipient agrees to promptly reimburse the City for such payments upon request. 13. Notices. Notice provided for this Agreement shall be sent by certified mail, or by electronic transmission by e-mail to the Subrecipient representative listed as follows: Subrecipient Columbia Basin College Foundation Attn: Scott Rogers 2600 N. 20th Avenue srogers@columbiabasin.edu Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation 14. Improper Influence. Each party warrants that it did not and will not employ, retain, or contract with any person or entity on a contingent compensation basis for the purpose of seeking, obtaining, maintaining, or extending this Agreement. Each party agrees, warrants, and represents that no gratuity whatsoever has been or will be offered or conferred with a view towards obtaining, maintaining, or extending this agreement. 15. Conflict of Interest. The elected and appointed officials and employees of the parties shall not have any personal interest, direct or indirect, which gives rise to a conflict of interest. 16. Amendment. No amendment or modification to the Agreement will be effective without the prior written consent of the authorized representatives of the parties. 17. Governing Law; Venue. The Agreement will be governed in all respects by the laws of Washington State, both as to interpretation and performance, without regard to conflicts of law or choice of law provisions. Any action arising out of or in connection with the Agreement may be instituted and maintained only in a court of competent jurisdiction in Franklin County, Washington or as provided by RCW 3.66 18. Non -Waiver. No failure on the part of the City to exercise, and no delay in exercising, any right hereunder shall operate as a wavier thereof, nor shall any single or partial exercise by the City of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedy available to the City at law or in equity. 19. Binding Effect. This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors. 20. Assignment. The subrecipient shall not assign or transfer any of its interests in or obligations under this Agreement without the prior written consent of the City. 21. Entire Agreement. This agreement constitutes the entire agreement between the City and the subrecipient for the use of funds received under this agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the parties with respect to this Agreement. 22. Severability. In the event that one or more provisions of this agreement shall be determined to be invalid by any court of competent jurisdiction or agency having jurisdiction thereof, the remainder of the agreement shall remain in full force and effect and the invalid provisions shall be deemed deleted. 23. Dispute Resolution. In the event of a dispute arising between the parties regarding the enforcement, breach, or interpretation of this Agreement, the Parties shall first meet in a good faith effort to resolve the dispute, however, with or without agreed meditation. Any remaining dispute shall be resolved by binding arbitration pursuant to RCW 7.04A, Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation 4 as amended, and the Mandatory Rules of Arbitration, with venue placed in Franklin County, Washington, and the arbitrator shall award to the substantially prevailing party, judgement of its attorney fees and costs against the other. In the event of de novo review, both parties waive their rights to a jury trial. 24. Counterparts. This agreement may be executed in one or more counterparts, any of which shall be deemed an original but all of which together shall constitute one and the same instrument. 25. Authorization. Each party signing below warrants to the other party, that they have the full power and authority to execute this Agreement on behalf of the party for whom they sign. 26. Exhibits. Exhibits attached and incorporated into this agreement are: Exhibit A: LTAC Application Exhibit B: Final Report on Number of Visitors Exhibit C: Scope of Work; Completed IN WITNESS WHEREOF, the parties have caused this Agreement to the signed by their duly constituted legal rep sentatives and is effective on the last date signed. Adam Lincoln, City Manager Scott Rogers, Athletic Director City of Pasco 1 Dated: %bD IZUZ- Columbia Basin College Dated: Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation ATTEST: Debra Barham, CMC City Clerk APPROVED AS TO FORM: Kerr Ferguson LC City Atto Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation Exhibit A ON FILE WITH CITY CLERK Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation Exhibit B Final Report on Numbers of Visitors and Paid Room Nights Actual (or Estimated) Total Overall Attendance 2,500 Methodology* Structured Estimate Attendees who traveled 50 miles or more to attend Total 2,000 Of total, attendees who traveled from another state or country 700 Methodology* Structured Estimate Attendees who stayed overnight Paid Accommodations 2,000 Unpaid Accommodations 500 Methodology* Structured Estimate Paid Lodging Nights** 740 Methodology* Direct Count *JLARC defines the Paid Lodging Night as "One Lodging night = one or more persons occupying one room for one night" **Methods in determining actual or estimated number of visitors and/or paid room nights: • Direct Count: Actual count of visitors using methods such as paid admissions or registrations, clicker counts at entry points, vehicle counts or number of chairs filled. A direct count may also include information collected directly from businesses, such as hotels, restaurants or tour guides, likely to be affected by an event. • Indirect Count: Estimate based on information related to the number of visitors such as raffle tickets sold, redeemed discount certificates, brochures handed out, police requirements for crowd control or visual estimates. • Representative Survey: Information collected directly from individual visitors/ participants. A representative survey is a highly structured data collection tool, based on a defined random sample of participants, and the results can be reliably projected to the entire population attending an event and includes margin of error and confidence level. • Informal Survey: Information collected directly from individual visitors or participants in a non- random manner that is not representative of all visitors or participants. Informal survey results cannot be projected to the entire visitor population and provide a limited indicator of attendance because not all participants had an equal chance of being included in the survey. • Structured Estimate: Estimate produced by computing known information related to the event or location. For example, one jurisdiction estimated attendance by dividing the square footage of the event area by the international building code allowance for persons (3 square feet). • Other: (please describe) Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation Exhibit C Scope of Work; Completed Please describe how funds received under this Agreement were used: "Attach proof of expenses Columbia Basin College was selected to host the NWAC Basketball Championships for 2023, 2024, and 2025. The tournament was held over two weekends (Sweet 16 and Elite 8 first weekend; Final Four and Championships on second weekend). 16 men's teams and 16 women's teams participating. Expenses include custodial and security support; hospitality room for officials and coaches; broadcast production: livestream, play by play and color commentators; official's fees; scorer's table staffing; credentials, publications, posters, signage; championship t-shirts; athletic award. Total expenses estimate is $69,869.97 Lodging Tax Subrecipient Agreement — Columbia Basin College Foundation 9