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HomeMy WebLinkAboutWORKSHOP re Tourism Boards JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners FROM: Mark McCauley, County Administrator DATE: April 21,2025 SUBJECT: WORKSHOP re: Tourism Boards (TCC & LTAC) STATEMENT OF ISSUE: The BoCC has expressed an interest in revising TCC & LTAC board composition,priorities, and operations, consistent with respective legal authority and BoCC priorities. ANALYSIS: The Tourism Coordinating Council (TCC) is an overarching tourism-related BoCC board that helps set tourism priorities and implement BoCC's annual strategic tourism plan for Jefferson County. The Lodging Tax Advisory Committee (LTAC)reviews and makes annual funding recommendations to BoCC regarding specific requests for proposals that promote tourism within Jefferson County. Starting last year, BoCC signaled it would be reviewing the county's tourism related boards and their respective roles in relationship to the BoCC's priorities and strategic goals for tourism within Jefferson County. Jefferson County Resolution Number 78-03 authorizes the Tourism Coordinating Council (TCC),and By- laws were most recently amended in March 2008. TCC may wish to update their By-laws to align with the proposed Resolution Repealing and Replacing Resolution Number 78-03 Setting New Priorities for the Jefferson County Tourism Coordinating Council (TCC). RCW 67.28.1817 authorizes the Lodging Tax Advisory Committee(LTAC)and outlines the scope of the committee. Specifically, "The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate."RCW 67.28.1817(1). LTAC has no By-laws. Adopting LTAC By-laws may be helpful moving forward into the new LTAC cycle. Attached for the BoCC's consideration: • Proposed Resolution Repealing and Replacing Resolution Number 78-03 Setting New Priorities for the Jefferson County Tourism Coordinating Council (TCC). • Resolution Numbers 59-94 and 78-03 (for historical context). • Proposed Bylaws for LTAC. • Program Evaluation of Lodging Tax Investments by Greg Brotherton • Previous guidance issued by BoCC to LTAC (for historical context): o LTAC Resolution Number 33-98 o BoCC Priorities for 2025 LTAC RFP, October 14, 2024 o LTAC Appointments, February 5, 2025 FISCAL IMPACT: There is no fiscal impact at this time. RECOMMENDATION: BoCC should workshop the attached materials related to BoCC's tourism related boards, TCC and LTAC, and provide staff with guidance regarding desired next steps. REVIEWS BY: / Mark McCauley ounty Administrator Date Understanding Lodging Tax Revenue and Investments Event Marketing, Destination Marketing, Development and Operations in Jefferson County, Washington Evaluation Plan for 2025 Prepared by Greg Brotherton 4/18/2025 ky I .Y Executive Summary How should we prioritize lodging tax use in Jefferson County, WA? Who should prioritize lodging tax use in Jefferson County?The few bits of the Revised Code of Washington (RCW) that speak about lodging tax use in Washington speak to three allowed uses, and they are not ranked or prioritized, but merely listed. There is no state law or Attorney General Opinion (AGO) which prioritizes within these allowed uses of lodging tax revenue for smaller municipalities: • Tourism promotion • Acquisition of tourism-related facilities • Operation of tourism-related facilities There are several AGOs that speak to the relationship between the Lodging Tax Advisory Committee (LTAC) and the legislative authority, the Board of County Commissioners (BoCC). The most recent informal AGO from Assistant Attorney General H. Lee Overton indicates that: The final authority to determine the distribution of lodging tax revenues is clearly vested in the municipality and not in the advisory committee. RCW 67.28.1816(2)(b)(ii) (providing that the committee must submit its recommendations "to the municipality for final determination"). The committee is "advisory" in nature, and its work product is "a list of such candidates and recommended amounts of funding to the municipality for final determination. (Overton, H. Lee, 2016) The opinion goes onto to establish the process for how a municipality might change an award that the LTAC recommends, while establishing clear guidelines as to the statutory power of the LTAC. What is not discussed in the opinion, nor in any other AGO, is who decides what the priorities are that informs the Request for Proposals (RFP) the LTAC interprets, according to state law. The amount of lodging tax collected is an easy output to measure as we evaluate lodging tax investments, but not the only one. Since the BoCC appoints the LTAC and is the final authority on awards, this paper assumes that the BoCC has the legislative authority to define priorities, but needs the buy-in of the LTAC to advance those priorities. This evaluation attempts to explain the trends in Jefferson County lodging tax over the last decade, and how Jefferson County investments of lodging tax impact lodging tax revenue in order for the BoCC and LTAC to work from a shared understanding of existing inputs. This paper serves as a beginning to the measurements of lodging tax investments to act as a guide for the necessary collaboration between the LTAC and BoCC. Representing the municipality, I also interviewed six members of the tourism industry including several members of the LTAC and the Tourism Coordinating Council (TCC). With the aid of ChatGPT o1, I applied a thematic analysis to identify and connect the themes and sub- themes of these interviews. This analysis pulled themes out of the six conversations that we will explore in more depth here. The interviews reflected the tension implicit in the dynamic between a member of the legislative body interviewing local tourism representatives. It might have been the first concrete example in Jefferson County of the embodiment of the third priority in the Olympic Peninsula Tourism Master Plan (OPTMP): public-private sector alignment. It was a theme that the interviews frontloaded, and also validated in these conversations between Jefferson County tourism professionals and their counterpart in local government. Program Description In Jefferson County, Lodging Taxes of 4% are collected on every night of short-term accommodation (hotels, motels, campgrounds, and transient rentals in private homes) per Revised Code of Washington (RCW) 67.28.180. Jefferson County has a Lodging Tax Advisory Committee that makes recommendations which the Board of County Commissioners (BoCC) can affirm, reject or request modification to from the LTAC. Our past practice has been to utilize a request for proposals (RFP)that has changed very little and simply restates the simple rules outlined in the RCW. The convention has been to treat the order of the listed allowable uses to act as a priority list. Going again to the latest informal AG Opinion, Overton writes, "this statute is susceptible of competing plausible interpretations. While I believe that the reading I offer here best effectuates the legislative intent, this is certainly a statute that could benefit from clarification as to its intended meaning." (Overton, H. Lee, 2016) What is not laid out in the RCW or any AG Opinions is how priorities are set for the applications or RFP that the LTAC makes recommendations to the BoCC about. Which brings us to September of 2024 when the BoCC, in the middle of the annual application period, sent a memo to the LTAC directing them to prioritize first "destination development," second "event marketing," and third "destination marketing." The LTAC did not want to change criteria in the middle of an RFP cycle and voted to ignore the direction from the BoCC. The LTAC made contrary recommendations to the requests from the BoCC. The BoCC approved all recommendations to put the lodging tax revenue to work. Subsequent to the awards, the BoCC used its RCW mandated annual review of LTAC to open all positions on the LTAC for new or returning members to apply. The BoCC has held off on posting those positions until they establish bylaws for the LTAC. This evaluation is working to provide information to inform the new direction of the TCC and the bylaws for the LTAC. I am attempting to understand the inputs and outputs related to lodging tax and lodging tax revenue from the perspective of the legislative authority which has distinct priorities that differ from the tourism industry that is at the table currently. Below is a logic model which lays out a potential future process for evaluating investment of lodging tax revenue. Goals orprobNms: Resources Activities/lnpub outputi Short-Terre Intermediate Long-Terra outcomes Outcomes Outcomes Revenues from lodging tax are...used solely for the purpose of paying all or any real collaboration Tourism more data review and part of the cost of tourism promotion, Coordinating analysis of local Evaluate and review between efficacy of change Thriving year-round acquisition of tourism-related facilities,or Council conditions and ROI lodging tax investments government and can be evaluated tourism industry operation of tourism-related facilities." tourism industry RCW 67.28.1815. Connect tourism More nuanced Sustainable and Work with BoCC to define Annual Priority White industry into county dialogue about long measurable tourism priorities Paper planning range planning impact on region Lodging Tax Tourism invesments County-wide Advisory Create bylaws Lodging Tax Investments More heads in beds connected to Economic Committee county-wide Development through investments Tourism Build consesus on Manage annual RFP appropriate investments Develop metrics for Annual reporting from Measurement of evaluation beyond"heads return on Lodging in bed, Lodgingn Tax awards Tax Investment Table 1:Logic Model I conducted interviews with six members of the Tourism Coordinating Council (TCC) and LTAC. I conducted the interviews as an active stakeholder as the County Commissioner who initiated the memo of re-prioritization. I spoke with Amy Neil, the General Manager of Kalaloch Lodge; Aaron Terada, the Assistant Park Manager of Fort Flagler State Park, Diana Smeland, President of Inn at Port Ludlow; Tara McCauley, President of the Jefferson Historical Society; Dan Ventura, President of the North Hood Canal Chamber of Commerce and owner of The Cove RV; and Marsha Massey, Executive Director for the Olympic Peninsula Visitor's Bureau. I performed thematic analysis on an Al platform, ChatGPT o1, Deep Research. This program evaluation concerns how we can use the TCC, which is a county advisory board, and the LTAC to develop an understanding about lodging tax revenue expenses and build a framework for collaboration that can overcome the conflict between priorities of the past year and bolster the partnership between the tourism sector and local government, while building an investment framework that uplifts a sustainable tourism economy in Jefferson County. A Slumped Shoulder Season with no Backbone Unwinding the inputs to lodging tax in Jefferson County is very complicated, with many potential influences on lodging tax revenue. I come into this evaluation very aware of the steep decline in lodging tax revenue in the winter, with the fall and spring shoulder seasons as the focus of destination marketing. I'm also aware how little Jefferson County has invested in tourist infrastructure—like all other infrastructure traditionally in our rural county. I brought some questions to the data and to the tourism professionals in TCC and LTAC. In the last decade there has been a steep increase in the amount of revenue. Taking a moment to look at the Jefferson County Treasurer's chart of the last decade's performance looks like an unmitigated success if our metric is increasing lodging tax revenue. Special Hotel/Motel&Transient Rental Sales Tax-Fund 125 December 2024 1,000.000 900,000 ■December 800,000 ■ November ■ Ober MOD0 ■ September 600,000 ■ ■August 500,000 ■July 40D,000 ■lure 300,000 ■April 200,000 ■ March ■ 100,000 February 0 January 2012 2c11 111 1 4— 2c16 1.17 )I;IA .�,l 1UA1 2M 2022 2023 2M4 Chart 1.Jefferson county Lodging Tax 2012-2024 We can see some expected aberrations, including a dip during the beginning of the COVID-19 in 2020. Lodging Tax revenue is reported and remitted two months after collection, so tax collected in January will show up on the above chart in March. Seasonality of tourism has a large impact on the Olympic Peninsula and the emphasis of destination marketing emphasized increasing tourism during the "shoulder" seasons of Fall and Spring. While we don't have complete data for the region, looking at the occupancy rates of the Kalaloch Lodge in 2023 and 2024 illustrates the seasonality trends that many hoteliers and short-term rental operators report with near full occupancy in the summer, slumping down precipitously in the shoulder seasons and running at a challenging 40%occupancy in the depths of winter. "We gear up and we have lots of business, lots of activity... and then we gear down," said Diana Smeland of the Inn at Port Ludlow's pattern. In the busy months, "you're flush,"but then you need to have "hopefully saved enough money to get you through the nine months"of slower times. "Sometimes you do, and sometimes you don't. This is not ideal for the business or the employees, but it's the reality of a tourist economy that "ebbs and flows"dramatically with the calendar and even the weather. Kalaloch Lodge Occupancy Rates 120% 100% v 80% a C 60% CL u 40% O 20% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -2023 -2024 Chart 2.Occupancy Rates,Kalaloch Lodge Seasonality is a known challenge in lodging tax revenue and tourism on the Olympic Peninsula writ large, and is the thrust of the OPTMP's first strategic initiative: "Destination Marketing... to improve, expand and diversify targeted seasonal promotions..." This small example is borne out in the interviews with tourism professionals. (quote) Perhaps the most pressing shared challenge discussed in the interviews is the difficulty of staffing, especially due to a lack of affordable housing for workers. This theme came up repeatedly and passionately. "Housing," said Amy immediately when asked about her organization's biggest struggle. She went on to describe the situation as a "total nightmare."At her remote lodge, they normally need about 60 employees for the summer high season, but "at the moment we're looking at about 15 people we can't hire because we can't house[them]." Even in the more developed part of the county, housing poses a retention problem. Tara McCauley pointed out that many of her museum's young staff have had to relocate out of the area over the past few years. "We've had many, many people...move out of Port Townsend, move out of the county, move out of the state,"she said. Most recently, one staffer "had to move to Olympia"because, after having a baby, they "couldn't find stable housing for their family, and also couldn't find any childcare." The seasonal ebb and flow as well as the challenges in housing and the lower wage that many touristic jobs pay contribute to a real worker shortage. Many things in the tourist housing, or short-term rental market has changed with the proliferation of platform based short term rentals, like AirBNB, and with the lack of infrastructure, a negative development pattern on more traditional short term rentals like hotels or lodges. One clear indicator of lodging tax revenue is the rooms themselves. Since lodging tax is a 4%tax on every night of short-term accommodation, the number of units for short term rent (STR) multiplied by the average occupancy rate (AOR) of the units, by the average daily rate (ADR) by .04 should result in our lodging tax revenue for the year. So, in Jefferson County for 2022, with $793,215 in lodging tax revenue, the calculation looks like the following: $793,215.00 = (STR*AOR*365*ADR*.04) $19,830,375.00 = (STR*AOR*365*ADR*) $54,329.79 = (STR(1000)*AOR(.6)*ADR) $90.55 = ADR Table 1.Hypothetical STR Average Daily Rate We've added some assumptions to do the calculation as if there were 1000 total STR units of all types in unincorporated Jefferson County, and average occupancy rate of 60%for the year. With those assumptions the average daily rate across the county would be $90.55, which averages all types of units, lodge rooms, hotel rooms, platform-based STR and rustic campgrounds together. The number of traditional STR units in 2012 is fairly easy to establish at around 750, including rustic camp sites. In the intervening decades, however platform-based STRs have grown exponentially, changing the landscape of units throughout Jefferson County. Traditional hotel rooms and campsites have decreased since 2012 with some campgrounds losing spots to climate change as well as the Kalaloch Lodge losing ten cabins to erosion of the bluff in 2023 and 2024. The Port Hadlock Motel closed at the end of 2022, to be re-opened as permanent supportive housing. The decrease in traditional units is likely a contributing factor to the recent trend in Jefferson County compared to neighboring municipalities. I compared the Lodging Tax growth from 2012-2024, on an annual basis, with neighboring municipalities including the city of Port Townsend, which collects its own lodging tax, as do the rest of our neighbors on the North Olympic Peninsula. As you can see in Chart 3, Both Jefferson County and Port Townsend trend downward in 2023 and 2024, but Clallam County and its three cities trend upward. Lodging Tax Growth-North Olympic Peninsula 1,200,000.00 �Clallam County -Forks 1,000,000.00 ✓ort Angeles ---6equim -lefterson County -Port TownseM 800,000.00 600,000.00 400,000.00 200 0W 00 - 2020 2021 2022 2023 202 Chart 3.Lodging Tax North Olympic Peninsula 2012-2024 Please note these numbers are from the state Department of Revenue and represent 2% of the total 4% lodging tax. It seems likely that the decrease in rooms contributed to the decrease in lodging tax revenue, but what accounts for the quadrupling of lodging tax revenue in the past two decades? It is almost certainly the increase in platform-based STR units. We don't have accurate numbers of platform based STR's in Jefferson County, but it appears that we might have moved from about 30 platform based STR's in 2012 to over 400 platform based STR's in 2022. There is more flexibility in adding or removing platform-based STR units than conventional hotel rooms so it is clear that platform-based STR's are a critical piece of increasing lodging tax. There is also political pressure to reduce the number of platform-based STR units, so having this estimate and developing a true economic coefficient will facilitate the conversation about platform-based STR's and the affordable housing crisis in Jefferson County. Conventions with No Center Since 2012,Jefferson County has prioritized Operation of Tourist Facilities, mostly Visitor Information Centers (VIC) and Destination Marketing and some in Event Marketing, but very little has been invested in Destination Development, as Chart 4 shows: JeffCo LTAX Investment 2012-2024 $111,483 $17,160 ■Destination Marketing ■Event Marketing ■Destination Development ■Operations Chart 4.LTAX Investment 2012-2024 It is clear that for the past decade at least, developing destinations and infrastructure for the tourist industry has been invested in much less than operations of tourism facilities (mostly VICs and museums) and Destination Marketing in Jefferson County. Motel Model for a Mobile Modality The reasons I asked about visitor information centers (VIC's) is that they have received a significant portion of lodging tax revenue historically as Chart 6 shows. The overall share of lodging tax revenue (LTAX) has decreased as costs have risen slower than the increase in LTAX, but still doubled over a decade to over$200,000 lodging tax revenue per year. VIC Operations $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 LLLL L $0 ■Total L AX ■ I Aperations 2012 2013 2014 2015 2016 2017 20n 2019 2020 2021 2022 2023 2024 Chart 6.VIC Operation to Total LTAX The interviews mostly supported the funding of VICs. Aaron Terada, , who works at a state park, described his ideal VIC as one with "volunteer staff...to answer questions, give directions,"plenty of "brochures for all the local attractions, maps,"and even real-time info on lodging availability. In his view, many visitors (especially less tech-savvy ones) still appreciate having a human "to give them a, you know, basically in-park virtual tour"or even a personal tour, rather than being forced to navigate everything on a phone. He noted that while digital tools are useful, handing someone a paper brochure or map with "pretty pictures"can be more user-friendly for certain visitors. Marsha Massey noted that many visitors arrive with only a rough idea of plans, and "they don't even know what to ask about"until a knowledgeable local staffer helps them 'figure out how to put it all together."Several interviewees emphasized that personal interaction at VICs or other front desks can greatly enhance visitor experience. Tara McCauley observed that many people treat her museum front desk as an "ad hoc Visitor Center", asking basic questions like "Where am 1? What's the story of this place? What is there to do here?" Marketing, Promotion and Collaboration Another dominant theme is the importance of destination marketing and the power of collaboration among local stakeholders. Interviewees widely felt that working together across organizations and regions is essential to attract visitors and encourage them to explore. Marsha Massey, who oversees regional marketing, credited "the collaboration"between the different towns and counties on the Olympic Peninsula as a key strength. She noted that local tourism leaders regularly "reach out and hold hands with one another", recognizing that visitors don't stop at jurisdictional boundaries. Aaron Terada expressed that his site, a state park, is somewhat a "hidden gem"that many travelers overlook. He believed "a little bit more advertising...media stories...would boost our attendance"at Fort Flagler. In fact, whenever an article or travel guide does feature them, "people do refer to that"and visitation bumps up, showing the latent demand if awareness grows. Aaron's perspective underscores a common refrain: smaller or more remote attractions feel they would benefit if the "big"marketing players devoted more spotlight to them. At the same time, the interviews revealed challenges in coordination and gaps in integration. Dan Ventura, representing the Hood Canal area, praised the "draws"that naturally attract visitors to his region — "the orcos and the eagles and the elk,"the state and national parks, and abundant trails. Those assets "all work really well"to bring people in, he said, "but integration with those draws...there seems to be a barrier." In other words, the local businesses and chamber have difficulty working in concert with the public land agencies to fully capitalize on these attractions. "We don't have a good pathway to[work] with State Parks, [the] Forest Service, ... to highlight, advertise and expand the accessibility of those areas," Dan explained. The interviews highlighted various collaborative marketing initiatives that have been used to stretch budgets and amplify reach. Diana Smeland detailed how her organization partners through the county's Tourism Coordinating Council (TCC) and a regional coalition (OPTC) to pool funds for larger campaigns. "Our marketing dollars go about that far,"she laughed, holding her fingers an inch apart. By sharing the cost of advertising with others, "maybe our marketing dollar goes that much further", allowing participation in a —$100,000 multi-partner campaign with only a —$6,000 contribution from her business. "That$6k of mine would have gone nowhere"if spent alone, Diana noted, but by banding together all of Jefferson County in an OPTC promotion, they got a professional ad with broad exposure. Tourism Coordination and Governance A significant theme that emerged —especially in conversations with Tara, Dan, and Marsha —is the structure and function of tourism coordination bodies in the county, namely the Tourism Coordinating Council (TCC) and the Lodging Tax Advisory Committee (LTAC). There was consensus that the roles of these groups need to be clear and that their composition and purpose may need adjustment to better serve the community. The reimagining of TCC was a hot topic in our interviews. When I signaled that I intend to revamp the TCC into more of an interface between the tourism sector and county government, Tara reacted very positively. She said it "makes great sense"to use the TCC for "intersectional conversations"about tourism's impact on the community. In her words, there is a "real opportunity for the county to bring...all of the places that there can be rubs"(frictions) into the discussion — "workforce, housing, infrastructure, places to stay", etc., in the context of building "sustainable, beneficial, enjoyable, positive"tourism. This aligns with my concern that tourism be balanced with local quality of life (e.g. preventing a situation where no locals can afford to live in a tourist town). Dan Ventura's interview also delved deeply into issues of governance and fairness in these bodies. He raised the question: "Who owns a board seat?Is it a person, or is it an entity that designates a representative?". This was in reference to both TCC and LTAC. Historically in Jefferson County, a small number of organizations have held those spots year after year—he noted "the same four organizations"(two museums on the "receiver" side and the two largest lodging entities on the "collector" side) have dominated LTAC. While he acknowledged those make sense (the largest tax contributors and cultural institutions), he also felt it created "some incestuousness'-'—essentially the major players ended up funding their own projects repeatedly. In summary, the governance theme highlights a community in the midst of adjusting how it manages tourism. The past model focused on promotion and was led by a few major players; the emerging model aims to be more inclusive, more transparent, and more attuned to community impacts.The interviews indicate support for the new direction: stakeholders want a venue (TCC) to discuss big-picture issues— "long-term planning", "the impact of tourism on the place", as Tara said—and they want the allocation of tourism funds (LTAC decisions)to be fair and beneficial system-wide. As Marsha succinctly put it, "set priorities...refer back to the RCW" for the tax use, but also use TCC to "represent a multitude"of voices for broader strategy. Embracing Local Identity and Community Benefits Finally, a powerful theme that emerged —cutting across several discussions—is the idea that tourism should enrich, not erode, the local community and culture. Interviewees stressed that it's important to cultivate tourism that is respectful, authentic, and adds value to both visitors and residents. In part, this means educating visitors about the place and its heritage, and in part it means making sure tourism growth doesn't undermine the very qualities that make the community special. One aspect frequently mentioned is providing historical and cultural context to visitors. Tara, as director of a historical society, is passionate about this: "As a lover of history and place, 1 want every visitor's experience to be rooted in...an understanding of the history of that place." Diana Smeland echoed a similar sentiment from a marketing perspective: today's travelers "want an authentically local perspective. They want to understand something real about this place". In essence, the interviews convey a philosophy of tourism as a two-way street: it should provide meaningful experiences to visitors and tangible benefits to the host community. When done thoughtfully, tourism can help fund facilities, preserve culture, and foster pride. But it requires constant attention to keep the relationship healthy—ensuring locals are not priced out or overrun, and that visitors are integrated respectfully. The emphasis on local storytelling, educating visitors, collaborating on planning, and balancing priorities like marketing vs. workforce needs all point to an overarching theme of sustainable tourism development. Stakeholders want tourism that celebrates the local character and enhances the community, rather than one that diminishes it. As Tara beautifully summarized, the hoped-for outcome is a visitor who leaves not only having had fun, but perhaps with "more curiosity about the world around them"and a budding empathy for the places they visit. That, ultimately, is a tourism experience that benefits everyone—visitor, host, and the broader world. Conclusion This evaluation is prepared for both the tourism professionals on LTAC and TCC, and also for the BoCC to understand how we got here. It shows a path forward where the tourism industry and county are having the challenging conversations about platform-based STR's, the vague nature of intent with the law on use of lodging tax revenue, and where the missions of the tourist industry and the legislative body intersect—and where they are in tension. The quantitative measures here are an iterative attempt at framing the conversation. Where we have estimates now, we can fill in with data to have an evolving and increasingly accurate understanding of what is impacting our lodging tax revenue, and start to evaluate outcomes with a stronger feeling of community impact. Proving that seasonality is a big challenge is elementary, but connecting it to the print vs. digital conversation and the workforce challenges in the interviews adds context to our shared experiences. In the diagram below, the themes from the interviews are laid out, showing some intersections. The interfaces between the circles reflect connections. VIC's use a lot of the pamphlets and online destination marketers, and sit at the middle of the conversation about print vs digital marketing assets (the thoughts shared in the interviews is that both are important). Destination Marketing, while difficult to measure impacts from touches the orientation hubs of VICS, leads the conversation about print vs. digital and is a major tool to combat the direct and indirect impacts of seasonality - all touch the workforce and housing challenges. Governance of lodging tax revenue as well as these public sector boards has been siloed in the past with the local government deferring to a model that did not include it in setting the table. Under governance is the largest circle which is community impact which touches our workforce and housing, our marketing campaigns and the potential impacts of over-tourism. This is a responsibility of the BoCC. JeffCo Tourism Intersectionality DigitalOrientation Hubs Destination Marketing Governance Print vs. Workforce Housin seasonality There is a reason we need to have better communication between the tourist sector and county government. There is a lot to consider in a changing time. Understanding how we have prioritized lodging tax in the past is a way to help us define a different future as desired by the BoCC, that also works for the tourist sector. It all comes back to lodging tax. This report is a first attempt at unraveling what makes up the lodging tax by exploring its seasonality, the changing demographics of platform-based STR's, our relative performance with our neighbors on the Olympic Peninsula, and our past priorities. By also digging deeper into the conversations between stakeholders we can connect the past decisions, current landscape and future planning together. If we understand what goes into the lodging tax, that will inform the conversation with TCC and LTAC, and ultimately the BoCC in making priorities for the use of lodging tax. The more all the stakeholders can agree on the outcomes of an investment, the more invested we will all be in those choices. STATE OF WASHINGTON County of Jefferson In the Matter of Repealing and Replacing Resolution No. 78-03 and Setting New DRAFT Priorities for the Jefferson County Tourism RESOLUTION NO. Coordinating Council(TCC) WHEREAS, the tourist industry is an important segment in Jefferson County's economy; and, WHEREAS, it is important to unincorporated communities within the County that their unique tourist and recreational assets are known to the visiting traveler; and, WHEREAS, it is equally important to coordinate the efforts among individual communities to present a coordinated and uniform message to the visiting traveler; and, WHEREAS, the changing landscape in short term accommodations with platform based transient accommodations, and significant increases in lodging tax revenue seem to be correlated, but are not measured,currently; and, WHEREAS, Jefferson County wants to understand and measure the inputs and outputs of the tourist economy including destination development, destination marketing, event marketing, and workforce housing; and, WHEREAS, in September, 2025 the Jefferson County Board of County Commissioners unanimously signed and sent a memo to the Tourism Coordinating Council (TCC) indicating a significant change in mission,process and management; NOW, THEREFORE, THE BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY,WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Whereas Clauses are Findings of Fact. The Jefferson County Board of Commissioners hereby adopts the above "Whereas"clauses as Findings of Fact. Section 2. Purpose. The purpose of this resolution is to re-establish the Tourism Coordinating Council (TCC)as an instrument of Jefferson County that: (1) Develops a consistent message and standard operating procedure for visitor interactions. (2) Coordinates with stakeholders, including but not limited to,tourist professionals, retailers, and Jefferson County staff to develop metrics for evaluating the impacts of public investments in destination development, destination marketing, event marketing, and the development of workforce housing. (3)Plans local destination development in partnership with other stakeholders such as the Gateway Visitor Center and the Quilcene Campground. 1 Section 3. TCC Board Membership. Members of the TCC shall be appointed by the Board of County Commissioners as follows: The Tourism Coordinating Council shall consist of a minimum of seven(7)members including at least six (6) members representing the accommodation/tourist industry from unincorporated Jefferson County, and one (1) County Commissioner who will serve as chair. The Tourism Coordinating Council shall develop a new set of by-laws and operating procedures to be approved and retained on file by the Board of County Commissioners. Section 4. Repealing and Replacing Resolution No. 78-03. This resolution repeals and replaces Resolution 78-03. Section 5. Severability. If any section, subsection, sentence,clause,phrase of this resolution or its application to any person or circumstance is held invalid, the remainder of this resolution or its application to other persons or circumstances shall be fully valid and shall not be affected. Section 6. SEPA Categorical Exemption. This resolution is categorically exempt from the State Environmental Policy Act under WAC 197-11-800(19). Section 7. Effective Date. This resolution shall take effect and be in full force immediately upon adoption by the Board of County Commissioners. (SIGNATURES FOLLOW ON THE NEXT PAGE) 2 ADOPTED and APPROVED this day of ,2025. SEAL: JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS Heidi Eisenhour, Chair Greg Brotherton, Member Heather Dudley Nollette, Member ATTEST: APPROVED AS TO FORM: Carolyn Gallaway, CMC Date Philip C. Hunsucker, Date Clerk of the Board Chief Civil Deputy Prosecuting Attorney 3 STATE OF WASHINGTON County of Jefferson IN THE MATTER OF ESTABLISHMENT } OF TOURISM COORDINATING COUNCIL } RESOLUTION NQ. 59-94 FOR UNINCORPORATED JEFFERSON } COUNTY } WHEREAS, Jefferson County is the recipient of tax funds generated by the use of hotel and motels; and WHEREAS, this fund is restricted to specified uses under Chapter 67.28, Revised Code of Washington; and WHEREAS, the County is desirous for these funds to be utilized, in part, to promote Jefferson County as part of a ongoing strategy to develop the tourism industry; and WHEREAS, a number of organizations in Jefferson County are involved with tourism promotion in one form or another; and WHEREAS, the use of hotel-motel funds could be maximized if these organizations were coordinated in a unified effort. NOW, THEREFORE BE IT RESOLVED, that Jefferson County hereby establishes a Tourism Coordinating Council for the following purposes: 1. Develop, adopt, and implement a strategy for the unincorporated area of Jefferson County to promote tourism activities. 2. Be the focal point for community involvement, act as a clearinghouse for community organizations, and participate in the distribution of Hotel Motel Tax funds budgeted for tourism promotion. 3. Prepare and submit an annual budget request to the Board of Commissioners, based on the adopted strategy, for consideration for appropriation. 4. Coordinate with the City of Port Townsend, State of Washington, United States Government and other public and private agencies in the use of Hotel Motel Tax funds and the promotion of tourism activities BE IT FURTHER RESOLVED, that the Tourism Coordinating Council will establish By-Laws, recommend a membership structure and provide names for appointment to the Council and otherwise coordinate its efforts with the Board of County Commissioners. Approved this day of 1994. FERSON COUNTY o w BOAR COMMISSIONERS G 1. Repealed & Replaced by Resolution No. 78-03 aCc�J (I� l�• C� STATE OF WASHINGTON County of Jefferson In the Matter of Re-establishing the } Jefferson County Tourism } Coordinating Council } RESOLUTION NO 78-03 WHEREAS,the tourist industry is an important segment in Jefferson County's economy; and WHEREAS, it is important to unincorporated communities within the County that their unique tourist and recreational assets are known to the visiting traveler; and WHEREAS,it is equally important to coordinate the efforts among individual communities to present a coordinated and uniform message to the visiting traveler. NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners that the Jefferson County Tourism Coordinating Council is hereby established to perform the following functions: 1. Annually recommend a marketing approach and strategy for the unincorporated areas of Jefferson County. 2. Annually recommend a budget consistent with the requirements of Ordinance No. 02- 0622-98,to carry out said marketing approach and strategy. 3. Represent the unincorporated communities as a voting member of the Lodging Tax Advisory Committee. 4. Assist in the development of countywide(city/county)and regional(Clallam/Jefferson) marketing materials. 5. Support the Gateway Visitor Information Center by providing marketing material to satisfy the informational needs of the visiting public. 6. Advise the Board of County Commissioners and/or the Lodging Tax Advisory Committee on issues and matters related to the growth and maintenance of the tourist economy in unincorporated Jefferson County. BE IT FURTHER RESOLVED, that membership on the Tourism Coordinating Council shall be as appointed by the Board of County Commissioners as follows: • The Tourism Coordinating Council shall consist of a minimum of eight(8)members, including two(2)members representing the accommodation/tourist industry from each of the unincorporated areas of Brinnon/Quilcene,Port Ludlow, Port Hadlock/Tri-Area, and two (2)members from the West End of the County. • The Board of County Commissioners may expand the voting membership and appoint ex- officio non-voting members to the Council as deemed appropriate to represent the interests of the accommodation/tourism industry. • Members appointed to the Tourism Coordinating Council should,whenever possible,be members of their respective Chambers of Commerce. Re-establishing the Jefferson County Tourism Coordinating Council Page 2 BE IT FURTHER RESOLVED, that the Tourism Coordinating Council shall develop a set of by-laws and operating procedures to be approved and retained on file by the Board of County Commissioners,recommend names for appointment as vacancies arise, and as deemed appropriate,recommend a membership structure beyond the minimum structure provided in this resolution. BE IT FINALLY RESOLVED, the effective date of this Resolution shall be January 1,2004 and that Resolution 59-94 adopted on June 6, 1994 is hereby repealed and replaced. APPROVED AND ADOPTED this day of���i`1 h��e ,2003. JEFFERSON COUNTY r BOARD OF COMMISSIONERS SEAL: Dan Titterness,Chairman � � J• .y ATTEST: Glen untm for , er ulie Matthes, CMC Deputy Clerk of the Board Patrick M. Rodgers,Member BYLAWS of the JEFFERSON COUNTY TOURISM COORDINATING COUNCIL ARTICLE I PURPOSE The Jefferson County Tourism Coordinating Council was formed to promote the tourism industry in the unincorporated areas of Jefferson County, in accordance with Jefferson County Board of Commissioners(hereinafter Board of County Commissioners or BOCC)Resolution No. 78-03, dated December 8, 2003, which is incorporated herein by reference. The council will achieve this by: 1. Promoting tourism in Jefferson County rural regions through individual and cooperative marketing efforts that present a coordinated message to the visiting traveler, 2. Advising/educating businesses about the benefits of tourism and the tourism industry through chambers of commerce and other outreach methods, and 3. Providing tourism marketing products to visitor centers and local businesses, particularly the Olympic Peninsula Gateway Visitor Center and the East Olympic Forest Visitor Center facilities. Bylaws Amended March 3,2008 ARTICLE II REPRESENTATION Section 1. The Jefferson County Tourism Coordinating Council, hereinafter the council, consists of representatives from each of the four regions in unincorporated Jefferson County: Quilcene, Brinnon, West End(Rain Forest Country), Port Ludlow, and Port Hadlock/Tri-Area. There shall be at least two council members from each region. Section 2. The total number of voting council members may be changed, so long as repre- sentation is equivalent among the regions. Following a majority vote of the current council, the council shall make recommendations to the BOCC. Section 3. Unless otherwise stipulated herein, the council members may decide matters by consensus or by a majority vote. On matters coming before the members for a vote, each member shall have one vote. A member may vote in person or by mail, including electronic mail(e-mail), or may vote by proxy executed in writing. No proxy shall be valid after four months from its execution. Section 4. Any representative may vacate her/his seat by submitting a written resignation to the BOCC. Such resignation will become valid without action other than immediate notification to the affected region, as appropriate, citing the urgency for a replacement council member to ensure balanced representation. The resignation also will be recorded in the minutes of the next meeting of the council. When any vacancy occurs in representation, a recommendation shall be forwarded by the council to the BOCC within 60 days. Any new or replacement council member will be appointed by the BOCC. Section 5. With regards to members being elected as officers of the council, refer to Article III Management Section 2. Bylaws Amended March 3,2008 ARTICLE III MANAGEMENT Section 1. Members of the Tourism Coordinating Council shall perform their duties(including the duties as a member of any committee of the council) in good faith, in a manner believed to be in the best interests of the council, and with such care, including reasonable inquiry, as ordinarily prudent persons in like positions would use under similar circumstances. (regarding duties, see Article IV, regarding meetings see Article VI.) Section 2. At each annual meeting, the council members shall elect from their number the following officers: Chair, Vice Chair, and Recorder. Officers of the council so elected shall hold office during the following calendar year, and may be re-elected to the same position. (Regarding duties see Article Y; regarding meetings, see Article VI.) Any officer may be suspended or removed by the consensus or by a majority vote of all of the council members. Vacancies resulting from the resignation or removal of any officer shall be filled by appointment of the council. Bylaws Amended March 3,2008 ARTICLE IV POWERS AND DUTIES OF THE COUNCIL The following responsibilities apply to all council members jointly, subject to any limitations provided in these bylaws: 1. Advise, consult with and represent respective chambers of commerce and/or rural region(s) for the purpose of establishing tourism marketing strategies. 2. Maintain awareness of marketing efforts, products and advertising opportunities particularly suited or relating to the Olympic Peninsula. 3. Establish short-teen and long-term marketing strategies. 4. Establish strategies for single and cooperative marketing efforts. 5. Develop proposals for marketing. 6. Draft an annual budget for marketing; recommend budget to the BOCC. 7. Approve marketing materials for production. 8. Indicate that work has been performed and invoice is ready to be processed. 9. Design/develop/proofread/distribute tourism material. 10. Continuously conduct outreach to chamber of commerce memberships and others in each region in support of the purposes of this organization. 11. Evaluate the affairs and business of the council, and make such changes in the prescribed powers and duties or make any procedures/regulations as may be warranted to carry out the purpose of promoting tourism and the tourism industry. Bylaws Amended March 3,2008 ARTICLE V POWERS AND DUTIES OF OFFICERS Section 1. The Chair shall, under the direction of the council, supervise all activities and affairs of the council, and execute all instruments on its behalf. The Chair or her/his designee(s) shall represent the council at Jefferson County Lodging Tax Advisory Committee meetings and Olympic Peninsula Joint Marketing Cooperative meetings, and shall establish records pertaining to such activities. The Chair shall preside at all meetings of the council and meetings of the officers, call special meetings as s/he shall deem necessary, and shall perform such other duties usually inherent in such office. The Chair shall present a full report to the regular annual meeting of the council members showing in detail the condition of the affairs of the council. Section 2. The Vice Chair shall create and maintain a history of the council's marketing and promotional efforts; shall perform such other duties as the Chair may direct. In the absence or disability of the Chair, the Vice Chair shall preside at all meetings and perform all other duties of the Chair which are incidental to the office. The Vice Chair shall present a full report to the regular annual meeting of the council showing in detail the promotional efforts of the past year and marketing strategies overall. Section 3. The Recorder shall have charge of the books, records, and papers of the council, to include the current bylaws; the records of the officers and the council members, including names, addresses, telephone and fax numbers, and a-mail addresses, and including dates of election and terms of office of all officers; correct and adequate records of accounts as submitted by the council members; minutes of the proceedings of the council, the officers, and any minutes which may be maintained by committees. Records may be written, or electronic if capable of being converted to writing. The Recorder shall issue all notices and shall attend and keep the minutes of all meetings of the council members and officers, and shall perform all such other duties as are incidental to the office. The Recorder shall send a copy of meeting minutes to the BOCC for their information. The Recorder shall present a full report of changes in council membership or officers during the past year, and shall oversee the election of officers at each annual meeting. Bylaws Amended March 3,2008 ARTICLE VI MEETINGS OF THE COUNCIL Section 1. Regular annual meetings of the council shall be held in November of each year at a place to be determined by the Chair. Notice of the place, day and hour shall be given by the Recorder to each council member(by communicating personally or by mail, a-mail, fax, or telephone)not less than 30 days prior to the date of the meeting. Section 2. A regular meeting schedule for the following calendar year is established by the council at the annual meeting. Notice of the place, day and hour of regular meetings(other than annual) shall be given by the Recorder to each member not less than 30 days prior to the date of the meeting. For the first year(2004),the meetings shall be the last Wednesday of every odd- numbered month(e.g.,May, July), at 1:00 PM. Locations may vary. Section 3. Special meetings may be called by the Chair or a majority of the council members. Notice of a special meeting of the council, stating the object thereof as well as the place, day and hour shall be given by the Recorder to each member at least five days prior to the date on which such meeting is to be held. Section 4. Council members shall notify the Recorder of each meeting they will not be attending. At any meeting of the council, four members shall constitute a quorum. 4.1 Un-excused absence: If any voting member fails to attend a regularly scheduled meeting and fails to follow the notification procedure,that absence will be considered un-excused. This, however, does not preclude the Council from making a determination at a later time to excuse the absence. 4.2 Vacancy due un-excused absence: Any voting member who has three(3)un- excused absences, i.e. misses three meetings for un-excused reasons, in a year will be considered as having vacated his/her seat on the Council. (For notice to the BOCC of a vacancy on the Council and how to fill that vacancy see Artcile II Section 4.) 4.3 The Recorder will promptly notify voting members if at any time they have 2 un- excused absences. Section 5. With regards to voting and proxy voting, refer to Article II, Representation, Section 3. Bylaws Amended March 3,2008 ARTICLE VII COMMITTEES Section 1. The officers may establish such standing and special committees as necessary to carry out the purposes of the council. Each committee shall include two or more council members. Any committee may be abolished by the officers at any time. Section 2. The chair of each committee shall be appointed by the council Chair, and shall be responsible for organizing the committee and carrying out the directives of the officers. Section 3. Committee chairs who are not members of the council shall become ex officio members of the council, without voting privileges, for the duration of their chairmanship. ARTICLE VIII AMENDMENTS These bylaws may be amended at any meeting of the council by a two-thirds majority vote of the members and concurrence of the BOCC. Whenever possible, meeting announcements shall include the existing text and the change(s) being recommended. Bylaws Amended March 3,2008 ARTICLE IX ADOPTION OF BYLAWS The bylaws of the Jefferson County Tourism Coordinating Council as set forth herein,together with any subsequent amendments,are hereby adopted this 16th day of AVr 4-,-201~7. The effective date of these bylaws shall be April 16,-2AA4. TIC ,P_ Counci Member Region Represented Council Member Region Represented ��%i� Council Member Region Represented Co it Member Region Represented Council Member Region Represented Council Member Region Represented Council Member Region Represented Council Member Region Represented Council Member Region Represented Council Member Region Represented Bylaws Amended March 3,2008 I DRAFT Jefferson Count LTAC B - Laws v v . • I , my CIA—) ING LTAC By-Laws Draft By-laws, A. ~ 04/21/2025 Jefferson County LTAC By-Laws Table of Contents 1 AUTHORITY..........................................................................................................................2 2 ROLE OF THE LTAC...............................................................................................................2 3 DUTIES OF THE LTAC............................................................................................................2 4 COMPOSITION OF THE LTAC................................................................................................6 5 APPOINTMENT AND TERM OF MEMBERS OF THE LTAC.....................................................6 6 NO COMPENSATION FOR MEMBERS OF THE LTAC.............................................................7 7 LTAC OFFICERS, THEIR DUTIES, AND THEIR TERM OF OFFICE.............................................7 8 PROCEDURE FOR REMOVAL OF LTAC VICE CHAIR...............................................................8 9 SUBCOMMITTEES OF THE LTAC...........................................................................................8 10 LTAC MEMBER ROLES AND RESPONSIBILITIES....................................................................8 11 REGULAR MEETING SCHEDULE ...........................................................................................9 12 QUORUM REQUIREMENT....................................................................................................9 13 VOTING ................................................................................................................................9 14 CONFLICT OF INTEREST/APPEARANCE OF FAIRNESS FOR MEMBERS OF THE LTAC ...........9 15 REPORTS, RECOMMENDATIONS AND CORRESPONDENCE FROM THE LTAC....................10 16 COMPLIANCE WITH THE OPEN PUBLIC MEETING ACT IS REQUIRED ................................10 17 NOTICE OF EACH MEETING OF THE LTAC..........................................................................10 18 AGENDA FOR EACH MEETING OF THE LTAC......................................................................11 19 ABSENCES...........................................................................................................................11 20 CONDUCT OF EACH MEETING OF THE LTAC......................................................................11 21 RECORD OF MEETINGS OF THE LTAC.................................................................................12 22 MINUTES OF MEETINGS OF THE LTAC...............................................................................12 23 AMENDMENT OF THESE BY-LAWS.....................................................................................12 24 SAVINGS CLAUSE................................................................................................................13 25 EFFECTIVE DATE.................................................................................................................13 11 ° age Jefferson County LTAC By-Laws 1. AUTHORITY The Jefferson County Lodging Tax Advisory Committee (JCLTAC or LTAC) was established on April 20, 1998 by Jefferson County Resolution 33-98. RCW 67.28.1817 requires: Before proposing imposition of a new tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter, a municipality with a population of five thousand or more shall establish a lodging tax advisory committee under this section. RCW 67.28.1817(1). 2. ROLE OF THE LTAC The LTAC was formed for the purpose of developing a comprehensive tourism development strategy and assisting in the administration of the lodging tax fund, including recommending annual expenditures consistent with Chapter 3.25 of the Jefferson County Code to the Board of County Commissioners (BoCC) through the annual budget cycle. JCC 3.25.020(1). Pursuant to RCW 67.28.1816(2)(b)(ii),the local lodging tax advisory committee makes recommendations to the BoCC regarding how the local lodging tax revenue should be distributed. Procedurally, the LTAC must select the candidates from amongst the applicants applying for use of revenues under chapter 67.28 RCW and provide a list of such candidates and recommended amounts of funding to the BoCC for final determination. RCW 67.28.1816(2)(b)(ii). The LTAC maintains a close relationship with the Tourism Coordinating Council (TCC), which is a separate BoCC advisory committee, established by Jefferson County Resolution No. 78-03, and is tasked with making recommendations to the BoCC that help inform local tourism policy. When prioritizing Requests for Proposals (RFPs) for lodging tax revenue, the LTAC shall take into consideration the TCC's annual strategic plan approved by the BoCC. The County Administrator assigns a BoCC staff member to serve as the primary staff contact for the LTAC. The primary staff contact for the LTAC shall be called the LTAC Coordinator. The LTAC Coordinator shall meet annually with the Chair to review staffing and budget constraints. 3. DUTIES OF THE LTAC Chapter 67.28 RCW limits how lodging tax revenue can be distributed in at least six ways. 2 � Jefferson County LTAC By-Laws First, RCW 67.28.1815 clearly states that the revenues must be used: ...solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities. Second, RCW 67.28.1815 requires that all lodging tax revenue be "credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities." (Emphasis added.) Third, chapter 67.28 RCW limits the types of entities than can receive lodging tax revenue. RCW 67.28.1816: (1) Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: (a) Tourism marketing;' (b) The marketing and operations of special events and festivals designed to attract tourists; (c) Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW; or (d) Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) of the internal revenue code of 1986, as amended. RCW 67.28.1816. 1 "Tourism marketing" is not defined in Chapter 67.28 RCW. However, RCW 67.28.080(6) defines "tourism promotion" as "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." 3 1 P a g e Jefferson County LTAC By-Laws Fourth, chapter 67.28 RCW requires applicants for lodging tax funds to submit applications and "estimates of how any moneys received will result in increases in the number of people traveling for business or pleasure on a trip." RCW 67.28.1816(2). Subsection (2) says in full: (2)(a) Except as provided in (b) of this subsection, applicants applying for use of revenues in this chapter must provide the municipality to which they are applying estimates of how any moneys received will result in increases in the number of people traveling for business or pleasure on a trip: (i) Away from their place of residence or business and staying overnight in paid accommodations; (ii)To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or (iii) From another country or state outside of their place of residence or their business. (b)(i) In a municipality with a population of five thousand or more, applicants applying for use of revenues in this chapter must submit their applications and estimates described under (a) of this subsection to the local lodging tax advisory committee. (ii)The local lodging tax advisory committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the municipality for final determination. The municipality may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee. (c)(i) All recipients must submit a report to the municipality describing the actual number of people traveling for business or pleasure on a trip: (A) Away from their place of residence or business and staying overnight in paid accommodations; (B)To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or (C) From another country or state outside of their place of residence or their business. A municipality receiving a report must: Make such report available to 41 Jefferson County LTAC By-Laws the local legislative body and the public; and furnish copies of the report to the joint legislative audit and review committee and members of the local lodging tax advisory committee. (ii)The joint legislative audit and review committee must on a biennial basis report to the economic development committees of the legislature on the use of lodging tax revenues by municipalities. Reporting under this subsection must begin in calendar year 2015. (d) This section does not apply to the revenues of any lodging tax authorized under this chapter imposed by a county with a population of one million five hundred thousand or more. (Emphasis added). Fifth, RCW 68.27.1817 requires that municipalities create local lodging tax advisory committees (LTAC), which receives the applications and estimates required by RCW 67.28.1816(2). "The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate." RCW 68.27.1817(1). Sixth, the LTAC reviews the applications and estimates and makes recommendations to the legislative authority of the municipality, which the municipality's legislative authority may change, after giving 45- days' notice and an opportunity to comment to the LTAC. RCW 68.27.1817(2). The LTAC process for RFP cycles flows as follows: LTAC reviews proposals, BoCC approves or BoCC signs LTAC LTAC sends out RFP deliberates,and makes rejects LTAC contracts recommendations recommendations END RFP L CYCLE A 5 t> s Jefferson County LTAC By-Laws The LTAC is an advisory body only and makes recommendations to the BoCC on lodging tax revenue distribution prior to final action by the BoCC. Before taking final action on a matter on which the LTAC has made a recommendation,the BoCC shall consider the LTAC's recommendations and other available information. 4. COMPOSITION OF THE LTAC LTAC membership composition shall comply with all requirements of RCW 67.28.1817(1), including at minimum: • Consist of at least five (5) members, appointed by the BoCC; • Include at least two members who are representatives of businesses required to collect tax under chapter 67.28 RCW; • Include at least two members who are persons involved in activities authorized to be funded by revenue received under chapter 67.28 RCW; and • One member shall be an elected official of the BoCC who shall serve as Chair of the committee. The number of members who are representatives of businesses required to collect tax under chapter 67.28 RCW shall equal the number of members who are involved in activities authorized to be funded by revenue received under chapter 67.28 RCW. RCW 67.28.1817(1). Organizations representing businesses required to collect tax under this chapter, organizations involved in activities authorized to be funded by revenue received under this chapter, and local agencies involved in tourism promotion may submit recommendations for membership on the committee. RCW 67.28.1817(1). The LTAC member composition requirements here are pursuant to RCW 67.28.1817(1) and are consistent with JCC 3.25.020(2) Lodging tax advisory committee. The BoCC shall review the membership of the LTAC annually and make changes as appropriate. RCW 67.28.1817(1). 5. APPOINTMENT AND TERM OF MEMBERS OF THE LTAC The Chair shall be the County Commissioner serving on the committee. This position has no term limits. The BoCC Chair is Position 1. The remaining member terms shall be staggered as follows: 6 � Jefferson County LTAC By-Laws (a) Members listed as representatives of businesses required to collect tax. These are Positions 2 and 4. (b) Members listed as persons involved in activities authorized to be funded. These are Positions 3 and 5. The initial board member terms shall be as follows: Positions 2 and 3 shall serve two-year (2) terms. Positions 4 and 5 shall serve three-year (3) terms. After the initial board members are appointed, all subsequent term limits shall be two-year (2) terms, equal in length, for Positions 2, 3, 4, and 5. LTAC member terms may serve consecutive terms, but shall not exceed two consecutive terms. All members are appointed to LTAC by the BoCC. As stated in Section 4 above, the BoCC shall review the membership of the LTAC annually and make changes as appropriate. RCW 67.28.1817(1). 6. NO COMPENSATION FOR MEMBERS OF THE LTAC Members of the LTAC shall serve without compensation. 7. LTAC OFFICERS, THEIR DUTIES, AND THEIR TERM OF OFFICE There shall be a Chair and Vice Chair.The Chair is the BoCC elected official.The Vice Chair shall be elected by the LTAC committee during the first meeting of each year. The Chair shall preside over the LTAC meetings and coordinate development of the agenda with the LTAC Coordinator staff representative(s). The Chair shall sign all correspondence originated by the LTAC. The Vice Chair shall preside over the LTAC meetings in the absence of the Chair. The Vice Chair of the LTAC shall serve for one year from the date of election. The Vice Chair shall not serve for more than two consecutive terms as Vice Chair. 7 � Jefferson County LTAC By-Laws 8. PROCEDURE FOR REMOVAL OF LTAC VICE CHAIR The LTAC may remove the Vice Chair,whom they elect by the following procedure: Any member of the LTAC may offer a motion for removal at a meeting. If the motion is seconded, it shall be considered and voted on at the next regular meeting of the LTAC. Approval of a motion to remove shall require a two-thirds majority of the members present and voting. 9. SUBCOMMITTEES OF THE LTAC The Chair may appoint such standing and ad hoc sub-committees as may be considered useful and appropriate to investigate any matter of interest to the LTAC. At the Chair's discretion, or by a majority vote of the LTAC voting members, an item may be transmitted to a subcommittee for review and comment. The Chair shall establish a deadline for subcommittee review, provide members with direction or any specific review questions, and schedule regular updates from the sub-committee, as necessary. If the sub-committee fails to meet the review deadline,the LTAC shall proceed to take action without sub-committee or Advisory Group comment. No sub-committee shall contain more than two (2) LTAC members. No LTAC member who is not a member of a sub-committee may attend a sub-committee meeting; otherwise, all OPMA requirements would apply to the sub-committee meeting. If more than two (2) LTAC members are present at a sub- committee meeting, the sub-committee meeting shall be adjourned immediately. Sub-committees may meet informally, without minutes; however, the sub-committee shall keep the LTAC Chair informed, and report to the full LTAC at each LTAC meeting which occurs while the sub- committee exists. 10. LTAC MEMBER ROLES AND RESPONSIBILITIES LTAC members shall: • Act as a participant, reviewer, and advisor regarding the LTAC's statutorily mandated duties. • Serve at the pleasure of the BoCC, taking into account BoCC identified priorities. • Actively participate in the LTAC discussions and official LTAC comments. • Keep the LTAC discussions and activities focused on topics relevant to the LTAC's duties. • Attend regular and special meetings of the LTAC. 8 a �, e Jefferson County LTAC By-Laws • Read background material, review agenda and notes for each meeting of the LTAC, and prepare questions and comments in advance of the meeting as needed. • Be a respectful participant, treating others with respect and kindness. 11. REGULAR MEETING SCHEDULE LTAC shall hold at minimum one regular meeting per calendar year. LTAC shall hold at minimum one joint meeting with the TCC per calendar year. LTAC Special Meetings are held in the BoCC Chambers and set as needed or at the direction of the Chair. All special meetings are open to the public as required by Chapter 42.30 RCW, the Open Public Meetings Act (OPMA). 12. QUORUM REQUIREMENT A quorum is required to be present before an official, regular or special meeting of the LTAC can take place. A simple majority of the members of the LTAC shall constitute a quorum. 13. VOTING Each member shall be allowed one vote on items considered by the LTAC. Proxy votes are not permitted. If a proposal for funding is recommended by LTAC and forwarded to the BOCC, the number of votes for and against are included with the forwarded proposal. Except in the event of breaking a tie vote, the Chair shall abstain from voting on recommendations to the BOCC. 14. CONFLICT OF INTEREST/APPEARANCE OF FAIRNESS FOR MEMBERS OF THE LTAC Members of the LTAC shall not be disqualified from participating in any meetings, or in the preparation of any reports, recommendations or correspondence of the LTAC based on any potential or actual conflict of interest. A LTAC member is not prohibited from using their general expertise to educate the LTAC or provide general information to the LTAC on a decision item. 9 � Jefferson County LTAC By-Laws However, members of the LTAC shall disclose personal or business interests to the committee that might tend to prejudice the member's participation in any meetings, reports, recommendations and correspondence of the LTAC. The LTAC members shall comply with the code of ethics for municipal officers, chapter 42.23 RCW, in the performance of their duties. Specifically, at any time a proposal is received by the LTAC that appears to benefit any member of the committee that person shall recuse themselves from any discussion or decision related to that proposal. 15. REPORTS, RECOMMENDATIONS AND CORRESPONDENCE FROM THE LTAC Reports, recommendations and correspondence from the LTAC shall be made by consensus, if possible, and will seek opportunities to develop group solutions and resolve conflicts. To reach a consensus decision, LTAC members will make proposals, hold additional discussion, and then the Chair will call for the consensus decision on the proposal. If consensus is not possible, then reports, recommendations and correspondence shall be submitted to the BoCC on behalf of a majority of the members over the signature of the Chair. Minority reports, if any, shall be attached to, and forwarded with such reports, recommendations or correspondence without comment by the Chair. Concerning items of less formal advice: after discussion in one or more meetings, the LTAC shall adopt, by consensus, a written report on the LTAC's findings. 16. COMPLIANCE WITH THE OPEN PUBLIC MEETING ACT IS REQUIRED Because the Board is required to consider LTAC recommendations before taking final action, all meetings of the LTAC are subject to and shall conform with the provisions of the OPMA. 17. NOTICE OF EACH MEETING OF THE LTAC A meeting of the LTAC will be either a regular meeting pursuant to the regular meeting schedule in Section 11 or a special meeting. A meeting of the LTAC that is not conducted in the place or the time posted in the regular meeting schedule is a special meeting. Special meetings shall comply with the special meeting notice requirements in OPMA, RCW 42.30.080. For special meetings, RCW 42.30.080 requires at least 24-hour notice that specifies the time and place of the special meeting and the business to be transacted. Notice for a special meeting must be: (a) 101 Jefferson County LTAC By-Laws Posted on an agency's website; (b) Prominently displayed at the main entrance of the agency's principal location and the meeting site if it is not held at the agency's principal location; and, (c) Delivered to each local newspaper of general circulation and local radio or television station that has on file with the Board a written request to be notified of such special meeting or of all special meetings. 18. AGENDA FOR EACH MEETING OF THE LTAC The Chair shall place the item on an upcoming agenda or may set a date for the LTAC to solicit comment from the community. The LTAC shall make the agenda of each regular meeting of the governing body available online no later than twenty-four hours in advance of the published start time of the meeting. LTAC members wishing to review issues not requested by the LTAC Coordinator shall consult with the Chair to have the item placed on a future agenda. 19. ABSENCES Members will notify the Chair and the LTAC Coordinator if the member is unable to attend a LTAC regular meeting. The Chair, with assistance the LTAC Coordinator, shall document the excuse provided for the absences in question. If no excuse is giving for a particular absence, it shall be considered unexcused. At the start of each meeting, the Chair will ask the LTAC Coordinator to call the roll of LTAC members. For any member absent, the Chair shall announce whether the member's absence is excused or unexcused. The LTAC Coordinator will record the roll call, and notify the Chair if a quorum is present. The LTAC Coordinator will maintain an ongoing attendance record for all LTAC members and provide this record to all LTAC members, in writing, at least quarterly. A LTAC member who accrues three (3) consecutive, unexcused absences from regular or special meetings may be recommended to the BoCC for removal from the LTAC by the Chair with the concurrence of a majority of the members. 20. CONDUCT OF EACH MEETING OF THE LTAC a. All meetings of the LTAC shall comply fully with OPMA, including but not limited to: (a) The limitation on taking action on items not listed on the notice for a special meeting;and, (2)OPMA's public comment requirements. 11 , - Jefferson County LTAC By-Laws b. Roberts Rules of Order apply for the conduct of the LTAC meetings, and compliance with the Roberts Rules of Order are encouraged to the degree practicable, except where they conflict with these By-laws in which case these By-laws control. c. Members and visitors at the meetings will treat each other with respect, will not monopolize meeting time, and will listen to and try to understand each other's views. d. The meeting agenda shall be constituted as follows: i. Call to Order and Roll Call ii. Public Comment iii. Approval/Correction of Minutes from Previous Meeting(s) iv. Committee Reports v. Staff Reports vi. Old Business vii. New Business e. Committee and Staff reports may be held in abeyance if they relate to old or new business items. f. No new agenda item(s) will be taken up ONE (1) HOUR AND THIRTY (30) MINUTES AFTER COMMENCEMENT OF THE MEETING. However, this does not apply to Special Meetings, where no agenda items may be added that were not previously noticed on the Special Meeting Agenda. 21. RECORD OF MEETINGS OF THE LTAC Regular and special meetings of the LTAC shall be electronically recorded by audio or video, and the recording shall be made available online for a minimum of six months. 22. MINUTES OF MEETINGS OF THE LTAC The minutes of all regular and special meetings of the LTAC, except executive sessions, shall be promptly recorded and such records shall be open to public inspection. The LTAC Coordinator shall prepare minutes which shall be considered, revised (if necessary), and adopted by the LTAC ideally at its next regular or special meeting. 23. AMENDMENT OF THESE BY-LAWS 12 Jefferson County LTAC By-Laws These By-laws may be amended by the LTAC by majority vote of the members, provided the BoCC approves the By-law amendments by a majority vote. 24. SAVINGS CLAUSE Should any portion of these By-laws be declared unconstitutional or otherwise contrary to law, such decision shall not affect the validity of the remaining portion of these By-laws. 25. EFFECTIVE DATE These Bylaws are effective upon immediately after approval. ADOPTED this day of 2025. JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS Heidi Eisenhour, Chair Greg Brotherton, Member Heather Dudley-Nollette, Member 13 - - 14.ssez-cr q. Tur&.CGS r�o. 7 STATE OF WASHINGTON County of Jefferson In the Matter of Creating a Jefferson County Lodging RESOLUTION NO 33-98 Tax Advisory Committee WHEREAS,the Board of Commissioners wish a thorough review and recommendation regarding the implementation of a Local Option Excise Tax on lodging; and, WHEREAS, RCW 67.28 requires that a Lodging Tax Advisory Committee be formed before imposing said tax. NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners that: 1. A Jefferson County Lodging Tax Advisory Committee is hereby formed for the purpose of reviewing and making a recommendation on the proposed adoption of an ordinance to implement the optional excise tax provisions of RCW 67.28. 2. Said Committee shall consist of five(5)persons as provided herein: a) Two (2)persons representing the lodging industry who are engaged in business interests subject to the excise tax. b) Two (2)persons from organizations who have been traditional recipients of funds from the Jefferson County Hotel/Motel Fund. c) One (1)member of the Board of County Commissioners. BE IT FURTHER RESOLVED,that the Clerk of the Board is hereby directed to advertise for membership by publication.in the Port Townsend Leader and direct contact of parties of record, meeting the requirements stated above. APPROVED AND ADOPTED this J,6 41 day of 199-1. JEFFERSON COUNTY BOARD OF COMMISSIO E SEAL: . en or , an chard ATTEST: fo Delaney, CMC Damel H ole, ber Clerk of the Board 'VOL 24 rac,�f5� pj co c ssr Board of County Commissioners 1820 Jefferson Street aka ti PO Box 1220 Port Townsend, WA 98368 Sys ING,* Kate Dean,District 1 Heidi Eisenhour,District 2 Greg Brotherton,District 3 DY MEMO TO: Jefferson County Lodging Tax Advisory Committee FROM: Jefferson County Board of County Commissioners DATE: October 14,2024 RE: BoCC priorities for 2025 LTAC RFP Jefferson County, under the direction of the Board of County Commissioners is directing the Lodging tax Advisory Committee to the following ranked priorities as they look at appropriate applications for the 2025 Lodging Tax revenue in Jefferson County: 1. Destination development, such as supporting a Public Facilities District to build a pool, public campground improvements, and developing the Gateway VIC are examples of the allowed use listed in RCW 67.28.1816 and represent our county's top priority after an extended period of de-emphasizing this type of investment. 2. "The marketing and operations of special events and festivals designed to attract tourists," as listed in the RCW is our second priority, continuing years of investment in event marketing. 3. Destination marketing, often called "Tourism Marketing" is our lowest priority for 2025 Lodging tax funding. Further we encourage the use of digital media over printed material where practical. Sincerely, Kate Dean, Chair,Dist. No. I Heidi Eisenhour, Dist.No. 2 Greg Brotherton,Dist. No. 3 Phone(360) 385-9100 jeffbocc@co.jefferson.wa.us 0V CON r Board of County Commissioners � eo 4. " �� 1820 Jefferson Street 0 ti PO Box 1220 Port Townsend, WA 98368 �9 0 Heather Dudley-Nollette,District I Heidi Eisenhour,District 2 Greg Brotherton,District 3 ShtlN(,,` February 5,202; TO: Jefferson County Lodging Tax Advisory Committee RE: LTAC Appointments As you may know, the BoCC voted unanimously on December 231 to open all seats on the LTAC for new or existing applicants. We're writing to you today to encourage and welcome applications from all existing LTAC members who want to engage in an open dialogue about how best to use LTAC funding for the benefit of all Jefferson County residents, visitors, and tourism-related businesses. We hope that you will also work within your strong local networks to encourage a broad range of tourism-related businesses to apply from all geographic areas within Jefferson County,ensuring that we maintain diverse representation on the LTAC across the county and across all areas of our tourism economy. As part of the shared effort to promote tourism in Jefferson County, the Jefferson County Board of County Commissioners(BoCC) intends to refocus the revenue Jefferson County receives for tourism promotion that is distributed through the Local Tax Advisory Committee (LTAC). In accordance with RCW 67.28.180, which authorizes the BoCC "to levy and collect a special excise tax of not to exceed two percent on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW', the Lodging Tax Advisory Committee makes recommendations to the BoCC for distribution of this special excise tax revenue through a request for proposal process. The BoCC accepts, rejects or modifies the LTAC recommendations. Alignment of county legislative and tourism-related priorities for use of this special excise tax revenue is ensured through the BoCC's appointment of LTAC members under RCW 67.28.1817(1). With public input, and LTAC involvement, the BoCC will work to develop a set of LTAC bylaws consistent with RCW 67.28.1817(1) that incorporate county priorities, the priorities of county residents and tourism- related businesses, an annual review process, and metrics for evaluating lodging tax investments. Once those bylaws are finalized, the BoCC will advertise the LTAC positions — which we anticipate doing in the first quarter of 2025. We understand and acknowledge that this process has caused some disruption within our tourism community, and we are sincerely hopeful that we can use these changes to build an even more robust network of Jefferson County tourism professionals, with the solidarity and support that we will need to move forward together to create the strongest economy possible. We thank you for the deep commitment you have shown to our community and we look forward to building a new LTAC together. Thank you for your service, JEFFERSON COUNT BOARD OF COUNTY COMMISSIONER Hea udley-Nollette, leidi Eisenhour, Gre Brotherto , District 1 District 2 District 3 Phone(360)385-9100 jeffhocc a'co.jefferson.wa.us