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10/04/2018 - Minutes City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Lodging Tax Advisory Committee October 4, 2018; 6:00 p.m. at City Hall Committee Members present: Chair Jay Rosapepe; Lorraine Olsen, Mrs. Howe’s Bed and Breakfast; Keith Woyshnis, Saints Car Club; Jack Edwards, Days Inn; and staff City Clerk Brandy Rinearson. Absent: Kathy Garcia, Port of Bremerton Introductions/Roll Call - Chair Rosapepe introduced himself and so did each of the committee members and staff. The projected lodging tax revenue for 2019 is $100,000. Staff was asked to provide the committee the fund balance. The estimated fund balance as of 1/1/2019 is $95,000. The Mayor recommends the committee only allocate the projected revenue amount of $100,000. Review Applications and Provide Recommendations to Council The Lodging Tax Advisory Committee made the following recommendations for 2019: 2019 Lodging Tax Applicants Request Recommendation Visit Kitsap Peninsula-Tourism Marketing and Night-Life $24,000 $22,000 Port Orchard Bay Street Association – Operation and Events $27,013 $20,000 Port Orchard Bay Street Association – Tourism Marketing $10,925 $10,000 Sidney Museum and Arts Association- Tourism Marketing $5,070 $5,070 Fathoms O’ Fun Festivals-Events/Operations & Marketing $34,500 $28,000 Kitsap Mustang Club-Mustangs on the Waterfront $2,500 $2,500 Saints Car Club-The Cruz $2,400 $2,400 Chamber of Commerce- Seagull Calling Festival; $30,203 $28,530 Tourism & Visitor Marketing, and Visitor Center Operations City of Port Orchard-Summer Event Foot Ferry Services $6,500 $6,500 Totals: $143,111 $125,000 Committee members reviewed and discussed the applications submitted. The committee recognizes all the applicants are a part of the City’s Tourism and they are working hard to get people here, but struggle to account for who are staying in the hotels and B & B’s. Considering the fund balance being healthy, the committee is recommending using $25,000 of the fund balance paired with the $100,000, anticipated revenue for a total allocation of $125,000. The justification is to lower the fund balance that continues to grow, there are well-meaning programs that are bringing in tourism and want to support the organizations, and it still leaves a healthy fund balance; possibly the largest fund balance. October 4, 2018, Lodging Tax Advisory Committee Page 2 of 3 The following are summaries of the committee’s recommendation: Saints Car Club-The Cruz The Committee reviewed the application and supports the request. Each year they ask for very little and have a huge draw and recommends fully funding them.  Recommended allocation: $2,400 Kitsap Mustang Club - Mustangs on the Waterfront The Committee reviewed the application and supports the request. Each year they ask for very little and have a huge draw and recommends fully funding them.  Recommended allocation: $2,500 Visit Kitsap Peninsula – Tourism Marketing and Night-Life The committee reviewed the application and supports the funding request. They promote the City regionally; and can provide better, stronger, and broader reach of marketing. The committee is interested in seeing what the Night-Life marketing will offer. They hesitated in fully funding, as the ask was almost double in years past.  Recommended allocation: $22,000 City of Port Orchard – Summer Event Foot Ferry Services The Committee reviewed the application and supported the request. The thought is to maintain the services to building the trust and continue to gain people attending the downtowns to spend money; therefore, they recommend fully funding them.  Recommended allocation: $6,500 Fathoms O’ Fun Festival, Inc. – Marketing and Operations of Events The committee reviewed the application and supports the request. They have many events throughout most of the year, not just in the summer. The bulk of their expenses are the cost to run the events; but is hesitant on dedicating lodging tax funds to a purchase of a truck; therefore, they reduced the funding.  Recommended allocation: $28,000 Port Orchard Bay Street Association –Marketing and Operations of Events The committee reviewed the application and supports the request. Supports 100% of their marketing of events, but not supportive to fully fund all the operation expenses for events; therefore, they reduced the funding.  Recommended allocation: $20,000 October 4, 2018, Lodging Tax Advisory Committee Page 3 of 3 Port Orchard Bay Street Association – Tourism Marketing The committee reviewed the application and supports the request. They support the marketing plan, as they are reaching area’s that others are not; therefore, they support most of the request.  Recommended allocation: $10,000 Sidney Museum and Arts Association – Tourism Marketing The committee reviewed the application and supports the request. The ask is in line with the historical requests. They appreciate that 100% of the ask is for tourism marketing and recommends fully funding them.  Recommended allocation: $5,070 Port Orchard Chamber of Commerce – Seagull Calling Festival/ Tourism Marketing/ Visitor Center The committee reviewed the application and supports the request; with a minor reduction in funding.  Recommended allocation: $28,530 There being no further business, Chair Rosapepe adjourned the meeting at 7:14 p.m. Audio- only, recording was successful. Next meeting: TBD cc: Council/Mayor/Committee Members