Req. #12861
RESOLUTION NO. 3 8 213
A RESOLUTION relating to economic development; authorizing the execution of
an Amendment to the Interlocal Agreement for Establishment of Pierce
2 County Tourism Promotion Area to resolve ambiguity in the language
relating to the supplanting of funds.
3
4 WHEREAS chapter 35.101 RCW authorizes counties to establish
5 tourism promotion areas to permit the levy of special assessments to be
6 expended exclusively for tourism promotion, and
7 WHEREAS, in March 2009, the operators of lodging businesses located
8 within Pierce County ("County") presented an initiation petition to the Pierce
9
County Council ("County Council") seeking to have the County Council
10
establish a Pierce County Tourism Promotion Area ("TPA"), and
I 1
12 WHEREAS, on October 13, 2009, the Tacoma City Council adopted
13 Resolution No. 37886, and on November 24, 2009, the County Council adopted
14 Resolution No. R2009-119, both authorizing the execution of an interlocal
15 agreement ("Agreement") with the cities of DuPont, Fife, Gig Harbor,
16 Lakewood, Puyallup, Sumner, and Tacoma (collectively the "Parties") with the
17
County establishing a TPA to include the collection of special assessments
18
19 from lodging businesses within their respective jurisdictions, and
20 WHEREAS the County is requesting an amendment to the Agreement to
21 clear up ambiguity in the language related to supplanting funds, and
22 WHEREAS the term "supplant" has specific rules under state law that
23 are having unintended consequences in fund distribution, accounting, and
24
auditing, and
25
26
41
Res12861.doc-JHC/1ad
LEG 004 (11/89)
WHEREAS the County has had several conversations with the state
auditor about the administration of the fund, and the Auditor's Office has
2
3 generously assisted in implementing the program, and
4 WHEREAS the Hotel Commission is aware that the County is asking for
5 this change, and
6 WHEREAS, to correct the ambiguity, the amendment will delete the phrase,
7
g, and are not intended to supplant existing funding," in Section 7, paragraph E, of
8
the Agreement, and
9
10 WHEREAS the proposed amendment was presented to the Economic
I I Development Committee on February 22, 201 1, and received a "do pass"; Now,
12 Therefore,
1 3 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
14 That the proper officers of the City are hereby authorized to execute an
1 5
amendment to the Interlocal Agreement for Establishment of Pierce County
16
Tourism Promotion Area to resolve ambiguity in the language relating to the
17
18 supplanting of funds, said document to be substantially in the form of the proposed
19 amendment on file in the office of the City Clerk.
20 Adopted MAR 8 2011 IJNA4-51@2@ -
21 Attest: Mayor
22
23 City Clerk
24 Appr to
25 r
26 DepUFC (ty Xttorney
42 - 2 -
Res12861.doc-JHC/1ad
LEG 004 (11/89)
CITY CLERK USE ONLY
REQUEST FOR k64uest IZ8&/
booma
n ORDINANCE 0 RESOLUTION Ord-/Res. 38213
1. DATE: February 10, 2011
2. SPONSORED BY: COUNCIL MEMBER(s) N/A (if no sponsor, enter "N/A")
3a. REQUESTING 4a. CONTACT (for questions): PHONE:
DEPARTmENT/DmsioN/PRoGRAm Ryan Petty 253-591-5139
Community & Economic
Development
3b. "Do PASS" FROM Economic 4b. Person Presenting: PHONE:
Development Committee Ryan Petty 253-591-5139
NYes
No
To Committee as information only 4c. ATTORNEY: PHONE:
Did not go before a Committee 253-591-5638
3c. DID THIS ITEM GO BEFORE THE Jeff Capell
PUBLIC UTILITY BOARD?
Yes, on
Notrequired
N/A
DepaftmentDir Division Budget Officer/Finance Director Ci
5. REQUESTED COUNCIL DATE: March 8, 201 1
6. SummARY AGENDA TITLE: (A concise sentence, as it will appear on the Council agenda.)
Authorizing execution of an amendment to the Interlocal Agreement for establishment of Pierce County
Tourism Promotion Area to resolve ambiguity in language.
7. BACKGROUND INFORMATioN/GENERAL DISCUSSION: (Why is this request necessary? Are there legal
requirements? What are the viable alternatives? Who has been involved in the process?)
In November, 2009 Pierce County Council approved Resolution No. R2009-119 which authorized the
County Executive to enter into an Interlocal Agreement with the cities of DuPont, Fife, Gig Harbor,
Lakewood, Puyallup, Sumner and Tacoma for the establishment of a Pierce County Tourism Promotion
Area (TPA) pursuant to RCW 35.101. This RCW authorizes the levy of special assessments to fund
tourism promotion upon receipt of a petition requesting the creation of a TPA from people who represent
the hotel rooms that would be subject o the special assessment. Pierce County received such a petition
that was signed by individuals representing at least 60% of the hotel rooms within the TPA area. The
Interlocal Agreement was approved by Tacoma City Council in October, 2009. The County has
requested an amendment to the agreement to clear up ambiguity in the language related to supplanting
funds. The term "supplant" has specific rules under State law that are having unintended consequences
in fund distribution, accounting, and auditing. The County has had several conversations with the State
Auditor about the administration of the fund and the Auditor's Office has generously assisted in
implementing the program. The Hotel Commission is aware that the County is asking for this change. To
correct the ambiguity, the amendment will delete the phrase "and are not intended to supplant existing
funding" in Section 7, paragraph E of the TPA Agreement.
This topic is scheduled to come before the Economic Development Committee on February 22, 201 1.
A C1
Li -11
cotclerk\fortns\RequestResolutionOrdinance.doc Office of the City Clerk (01/0 7/2 01 1)
CITY CLERK USE ONLY
REQUEST (CONT) Request #: I
Ord/Res 3 82 1 h 77771
t)
8. LIST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:
Source Documents/Backup Material Location of Document
Pierce County Resolution R2009-119 City Clerk's Office
Interlocal Agreement City Clerk's Office
Amendment to Interlocal Agreement City Clerk's Office
Resolution 37886 City Clerk's Office
9. WHICHOFTHECITY'SSTRATEGicGoALsDOEsTHISITEMSUPPORT?(CHECKTHEGOALTHATBESTAPPLIES)
A. F-1 A SAFE, CLEAN AND ATTRACTIVE COMMUNITY
B. A DIVERSE, PRODUCTIVE AND SUSTAINABLE ECONOMY
C. A HIGH-PERFORMING, OPEN AND ENGAGED GOVERNMENT
10. IF THIS CONTRACT IS FOR AN AMOUNT OF $200,000 OR LESS, EXPLAIN WHY IT NEEDS LEGISLATIVE APPROVAL:
Amendment of agreement previously approved by Council.
11. FINANCIAL IMPACT: EXPENDITURE R REVENUE
A. No IMPACT (NO FISCAL NOTE)
B. F@ YES, OVER $1 00,000, Fiscal Note Attached
C. F@ YES, UNDER $1 00,000, (NO FISCAL NOTE)
Provide funding source information below:
FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & Name: State $ city $ Other $ Total Amount
If an expenditure, is it budgeted? F@ Yes r-1 No Where? Cost Center:
Aect
4d
cotclerk@forms\RequestResolutionOrdinance.doc Office of the City Clerk (01/07/2011)
41 __,@
ripoll!
p7i@@.A
bcmla City of Tacoma Memorandum
TO: Eric Anderson, City Manager
FROM: Ryan Petty, Director
Community and Econo ent
SUBJECT: Proposed Amendment to the Interlocal Agreement for Establishment of the
Pierce County Tourism Promotion Area, Request No. 12861 on Council's
March 8,2011, Agenda
DATE: March 1, 2011
Background
The proposed amendment would remove language from the above referenced agreement
which Council authorized be executed in its meeting of October 13, 2009. The specific
language is a phrase indicating that the agreement was "not intended to supplant existing
funding."
Because the language has been found by the State Auditor to be ambiguous, it has proven
difficult to administer, requiring segregation of old and new funding, pre- and post-agreement.
For the future, administration will become more difficult, the effect of compounding of
complexity over time.
Pierce County, as the party administrating the agreement and responsible for accounting for the
funds, has requested this amendment, urged forward by their Director of Economic
Development, Denise Dyer. All funding partners, including the Hotel Commission (advisory to
Pierce County and consisting primarily of representatives of the Hotel community who are
assessed the relevant fees) remain committed to the agreement and to the continued funding
of the Tacoma-Pierce County Convention and Visitors Bureau.
Recommendation
The authorization to amend the agreement received a "do pass" from the Economic
Development Committee on February 22, 201 1.
45
3 82 13
Resolution No.
Adopted: MAR - A mi
Maker of Motion:
Seconded: LJO
Voice Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr. Boe
Mr. Campbell
Mr. --ey
Mr. Lon@@@-
Mr. Manthou
Mr. Mello
Ms. Walker
Ms. Woodards
Mayor Strickland
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr. Boe
Mr. CaTpbell
Mr. Fey
Mr. Lonf@rgan
Mr. Manthou
Mr. Mello
Ms. Walker
Ms. Woodards
Mayor Strickland
iAccagendMagenda procedures and formsVesolutionvotingrecorddoc