079-09 - Resolution - Contract with City's Finance Committee Chair Regarding Foot Ferry Funding------------------------------------------------------
Introduced by:
Requested by:
Drafted by:
Introduced:
Adopted:
RESOLUTION NO. 079-09
City Clerk
City Clerk
City Clerk
July 28, 2009
July 28, 2009
A RESOLUTION OF THE CITY OF PORT ORCHARD,
WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A
CONTRACT WITH THE CITY'S FINANCE COMMITTEE CHAIR
REGARDING FOOT FERRY FESTIVAL FUNDING
REIMBURSEMENT FROM THE HOTEL/MOTEL TAX FUND
WHEREAS, at its June 23, 2009, meeting the Council approved a recommendation
from the Lodging Tax Advisory Committee to use up to $1,900 in Hotel/Motel Tax Funds to pay
its portion of extended hours of operation of the foot ferry on Festivals occurring on Sundays;
and
WHEREAS, the City Attorney has determined that it is in the best interest of the public
to have the Chair of the Finance Committee enter into an agreement to utilize those funds; and
WHEREAS, the Chair of the Finance Committee and the Mayor met to review proposed
documentation for using Hotel/Motel Tax funds for a portion of the extended hours of operation
of the foot ferry; and
WHEREAS, the City Council agrees with the City Attorney's recommendation that an
agreement should be executed setting forth the terms of how the Hotel/Motel Tax funds will be
utilized, copy of which is attached and incorporated as Exhibit A; now, therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON,
HEREBY RESOLVES AS FOLLOWS:
THAT: The Mayor is authorized to execute an Agreement with the Chair of
the Finance Committee, in the form attached as Exhibit A, regarding the use of
Hotel/Motel Tax dollars for payment of the City's portion of extended hours of
operation of foot feny during festivals that occur on Sundays.
PASS ED by the City Council ofthe City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 28th day ofJuly 2009. ~
~~~.-w---
2009 LODGING TAX
Civic Festival Funding Agreement
An Agreement by and between the City of Port Orchard, a Municipal Corporation,
(hereinafter the "City") and the Finance Committee, a committee of the City Council for the city
of Port Orchard (hereinafter the "Committee").
WHEREAS, pursuant to the provisions of Chapter 67.28 RCW, the City of Port Orchard
has levied and continues to levy a special excise tax on charges made for the furnishing of
lodging in motels and hotels; and
WHEREAS, RCW 67.28.1815 -67.28.1816 authorizes the expenditure of such funds, or
portions, thereof, for tourism promotion with includes: 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; and
WHEREAS, the following are community events/festivals designed to attract tourists to
the City of Port Orchard, the City of Bremerton and the Port of Bremerton collectively:
Fathoms O'Fun, The Cruz, Cedar Cove Days, The Blackberry Festival, and The Murder
Mystery; and
WHEREAS, the provision of transportation services to and from civic festivals promotes
the accessibility of the festivals to the public; and
WHEREAS, the City of Port Orchard has entered into an agreement with the City of
Bremerton and Port of Bremerton, approved by Resolution No. 079-09, to share the costs of
providing extended hours for foot ferry service between the City of Bremerton and the City of
Port Orchard during the above-identified civic events and festivals; and
WHEREAS, the City desires to use lodging tax funds to pay for this enhanced foot ferry
service in furtherance of the goal of tourism promotion;
NOW, THEREFORE, IT IS HEREBY AGREED by the parties hereto as follows:
1. PAYMENT: The City of Port Orchard shall allocate to the Committee the sum of
$1,900 during the calendar year 2009 from tax revenue levied and collected
pursuant to RCW 67.28.180. The annual allocation is subject to potential funding
reduction as provided in Section 3 of this Agreement.
Payments will be disbursed to the Committee upon the City's receipt of an invoice or
claim for payment for services authorized by RCW 68.28.1815 and as further detailed
below in Section 2 of this Agreement, until such time that the total amount allocated
has been paid. The City will not reimburse the Committee for 2009 invoices and
claims for payment that are received after January 15, 2010. In the event any of the
funds allocated under this Agreement are not used for the authorized expenses, as
detailed below, then the remaining funds shall revert to the City to use and
distribute, as it deems apiJI'Qll~ri,_a~te__.. ______ _
2. COMMITIEE'S REPRESENTATIONS/COVENANTS. The Committee represents
and covenants as follows:
(a) The funds paid by the City of Port Orchard hereunder shall be used solely to fund
tourism promotion as defined by RCW 67.28.080. "Tourism promotion" means:
1) 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; and 2) funding the marketing of or the operation of special events
and festivals designed to attract tourists.
(b) The Committee shall use the allocated funds for the following expenditures as
they relate solely to tourism promotion:
For Foot Ferry Services Between Port Orchard and Bremerton for the
following festivals/ events:
1. Fathoms O'Fun, June 28, 2009
2. The Cruz, August 9, 2009
3· Cedar Cove Days, August 30, 2009
4. The Blackberry Festival, September 6, 2009
5· Murder Mystery, September 13, 2009
Total Expenditure: $1,900
(c) In the event that any funds are expended for any purpose not so authorized, the
Committee agrees to and shall reimburse the City of Port Orchard upon demand.
3· FUNDING REDUCTION: The City of Port Orchard shall have the right to reduce the
amount which it has agreed to pay hereunder in the event it determines, in its sole
and absolute discretion, that tax revenues from the tax authorized by RCW 67.28.180
are insufficient to generate sufficient revenues for the City of Port Orchard to make
said payment, considering that other commitments for a portion of said funds have
also been made. The City of Pmt Orchard shall have the discretion to determine the
appropriate allocation of such funds among those entities to which such
commitments have been made.
4· INSPECTIONS/AUDIT: The Committee shall make available to the City of Port
Orchard or the Washington State Auditor, or their duly authorized representatives, at
any time during normal business hours, all records, books, or pertinent information
which the Committee shall have in conjunction with this agreement and which the
City of Port Orchard or the State of Washington may reasonably require in order to
insure compliance with the terms of this agreement, as well as federal, state, or local
laws, rules or regulations.
5. REPORTING OBLIGATIONS: Pursuant to RCW 67.28.1816, the City is obligated to
report to the department of community, trade, and economic development beginning
January 1, 2008. This report on the economic impact must include information
related to the impact lodging tax revenue has on tourism promotion. As such, the
2009 City of Port Orchard -Foot Ferry Funding Agreement Page 2 of 4
Committee shall gather and provide all of the following information to the City upon
demand or by January 31, 2010, whichever comes first:
(a) The estimated number of:
1. Tourists attributable to the festival or special event. "Tourist" means a
person who travels from a place of residence to a different town, city,
county, state, or country, for purposes of business, pleasure, recreation,
education, arts, heritage, or culture;
n. Persons traveling over fifty miles to the destination to the festival or special
event;
111. Persons remaining at the destination overnight for the festival or special
event; and
iv. Lodging stays generated per the festival or special event.
(b) An estimated increase in sales and use tax revenues attributable to the festival or
special event (not limited to revenues generated by tourists).
(d) Any other measurements that demonstrate the impact of the increased tourism
attributable to the festival or special event.
6. TERMINATION: The City of Port Orchard may terminate this agreement
immediately by written notice thereof to the Committee if the tax itself is repealed by
appropriate authority or in the event the funds paid to the Committee are not used in
compliance with the provisions of this agreement and/or Chapter 67.28 RCW, as
determined by the City of Port Orchard or the State of Washington. Upon such
termination, the City of Port Orchard shall be under no further obligation to make
payments hereunder. Further, it is agreed that either party may terminate this
agreement for any reason whatsoever upon giving the other party at least 90 days
prior written notice thereof.
7· MISCELLANEOUS PROVISIONS:
(a) Nonwaiver: No failure of either party to insist upon the strict performance of any
provision of this agreement shall be construed as depriving that party of the right
to insist on strict performance of such provision or any other provision in the
future.
(b) Captions and Construction: The captions in this agreement are for the
convenience of the reader and are not to be considered in the interpretation of its
terms.
(c) Partial Invalidity: If any term or provision of this agreement or the application
thereof to any person or circumstance shall to any extent be invalid or
unenforceable, the remainder of this agreement, or the application of such term
or provision to person or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected thereby, and each term and provision of
this agreement shall be valid and be enforced as written to the fullest extent
permitted by law.
(d) Governing Law: This agreement shall be governed by the laws of the State of
Washington. Venue for any action or proceeding hereunder shall lie in Kitsap
County, Washington.
(e) Entire Agreement: This document contains the entire and integrated agreement
of the parties and may not be modified except in writing signed and
acknowledged by both parties.
(f) Interpretation: This agreement has been submitted to the scrutiny of all parties
hereto and their counsel if desired, and shall be given a fair and reasonable
2009 City of Port Orchard -Foot Ferry Funding Agreement Page 3 of 4
interpretation in accordance with the words hereof, without consideration or
weight being given to its having been drafted by any party hereto or their counsel.
(g) Number; Gender; Permissive Versus Mandatory Usage: Where the context
permits, references to the singular shall include the plural and vice versa, and to
the neuter gender shall include the feminine and masculine. Use of the word
"may" shall denote an option or privilege and shall impose no obligation upon the
party that may exercise such option or privilege; use of the word "shall" will
denote a duty or an obligation.
(h) Conflict of Provisions: In case of conflict, the more specific provision of this
agreement shall control.
(i) Notices: Any notice required or desired to be given hereunder shall be deemed
given if in writing and either personally served or sent by certified mail, return
receipt requested, to the Department's address set forth below or to the City's
offices as set forth below.
U) Binding Effect: This agreement shall be binding upon the parties hereto and upon
their respective executors, administrators, legal representatives, successors and
permitted assigns.
IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed
as of the 28th day of July 2009.
CITY OF PORT ORCHARD
By:--:::V~~>:T-~;7J<-;~---
Lary C-ypJIJK' 1
216 pect S t /
Port Orchard, WA 98366
Telephone: 360.876-4407
Fax: 360.895.9029
2009 City of Port Orchard -Foot Ferry Funding Agreement
CITY OF PORT ORCHARD
City Council Finance Committee:
Clauson, Councilmember
21 Prospect Street
Port Orchard, WA 98366
Telephone: 360.876-4407
Fax: 360.895·9029
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