by Richard Uhlhorn
Once again, the Chelan City Council has bowed to the Lake Chelan Chamber’s request that it extend its $700,000 funding for one more year as the Council tries to come to terms with a new contract, not to mention that the committed selected to write a new contract only met twice this past year.
The Council voted 5-2 to extend the contract negotiations for another year, giving the Chamber another run at attracting visitors to the valley with no accountability of how they actually spend the money they use.
During Council discussion on the topic, Councilwoman (Mayor Elect) Erin McCardle in answer to a written statement entered into the record by Councilman John Olson that the Chamber delivers a written report every month to the Finance Department. “The Chamber submits a line item every month of dollars spent,” she said, then added that if the Council members don’t access that report, it is their fault.
City Administrator Wade Farris remarked that an extension was needed “to make sure we get everything right.”
Councilman Chris Baker asked Farris what the sticking points were to make an extension necessary. Farris replied that there were no real sticking points.
Olson, who had proposed earlier in the year at a City workshop that perhaps the Chamber could give up $400,000 of its requested $700,000 for use on Tourism related infrastructure. Chamber Director Mike Steele shot back to Olson’s request that it wasn’t the Chambers responsibility to provide for infrastructure… it is the City’s.
At issue with many residents and others is the influx of visitors during the summer months that overcrowd the community creating traffic jams and other limitations for residents like access to the lake.
Olson wrote, A year ago, the Counci agreed enough with my concerns that a 5-yeare renewal request from the Chamber was tabled and a 1-year extension was instituted with an agreement to renegotiate a new contract and a negotiating committee was formed; that committee had one meeting without any consensus and no follow up. (It should be noted here that Olson was a part of the committee). Now the Council is offered antoher 1-year extension, more of “just kicking the can down the road.” The Chamber has never fulfilled their obligations under Paragraph 5 of the Funding Agreement Chamber Reporting Requirements. The Council has never seen a report. These funds have never seen an audit in many years.
(Editor’s note: A number of years ago, the Chamber, at the request of the City, was audited by the State which found a number of discrepancies in its use of Lodging tax revenues)
Councilman Tim Hollingsworth asked what the Lodging tax revenues were last year? Finance Director Jackie Tupling replied that she didn’t have those numbers in front of her. Hollingsworth remarked that there was a $2.7 million dollar balance. “I would like to see negotiations move forward.”
Steele gave a short history of the tax and said that nothing the Chamber does is related to infrastructure. “It is the clear responsibility of the City.”
Steele went on to say that transparency is very important and that the funds are a part of Chelan’s economy and is a business driver. “Our goal is to continue the conversation,” said Steele. “What kind of report is needed.”
Councilman Peter Jamtgaard reiterated that an extension was granted last year to write a new contract. (The Chambers old 5-year contract ended on December 31, 2022). “I’m in support of John’s comments. I don’t like kicking the can down the road.”
Councilman Mark Ericks (also a committee member) remarked that with the new proposal for another extension gave the committee good reason to work hard at crafting a new contract. “There needs to be more interaction between the Council and Chamber,” said Ericks. He added that he didn’t disagree with the comments on infrastructure. “‘m a big proponent of fixing infrastructure. I also recognize, as a resident, that the nature of the tourist industry has changed. I applaud the Chamber’s efforts of promoting family events.” He also remarked that it was the Chamber’s duty to do the right type of advertising and said he supports the extension.
Steele stated that he has enjoyed and appreciated working with the City and also appreciates the City Council. “I too want to get the contract right.”
Mayor Goedde remarked that a tremendous amount of money has been raised through the 3% lodging tax but that it isn’t a none way street. “I would like to see a breakout like Leavenworth has,” said Goedde. (Several months ago, the Mayor was in possession of an expenditure report by the Leavenworth Chamber that detailed exactly where each and every penny was spent.) “It’s a no brainer,” stated Goedde.
Hollingsworth added that he would like to see a comprehensive plan on how to use that money. “We need to leverage that wealth.”
Jamtgaard remarked that hates waiting until the last minute to address these issues.
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