Tag: visitors

Farris retires… Chamber presents quarterly report and looks at future

by Richard Uhlhorn

City Administrator retirement:
City Administrator Wade Farris attended his last official city meeting at the Tuesday evening City Council meeting. He was praised for his six years of service to the community.

After six years of service as the City’s administrator, Wade Farris has retired. His position will be filled by one of three candidates in the near future.

Farris’ accomplishments included guidance on infrastructure development, Chean Airport business which is still ongoing with negotiations with the Port.

“Wade has had a remarkable career and leaves a lasting impact on the community,” said Mayor Erin McCardle.

Farris was honored with a retirement party at Wheatland Bank on Wednesday evening where an estimated 50 City staff, councilmen, business owners, other agency personnel and friends gave him a send off.

Farris will continue to help the city’s new administrator get settled.

Special Presentations:
Mayor McCardle read several proclamations into the record including one for First Responders. Public Works personnel respond to emergencies throughout the year, but in particular, during wildfires and other natural disasters. She stated the importance of Public Works and other emergency first responder services and declared October 28 First Responders day.

Mayor McCardle also read into the record the annual Arbor Day Proclamation

Chamber Update:
Lake Chelan Chamber of Commerce Executive Director Mike Steele was on hand to give is quarterly report on chamber activities.

Executive Director Michael Steele presented the City Council with the Lake Chelan Chamber of Commerce’s quarterly report.

He started his presentation by saying, “We are very proud of the work that we do.” Steele has been the chamber director for 20 years.

He explained that the chamber is funded through the City’s 3% bed tax, Chelan County tourism dollars, membership dues, sponsorships and advertising.

Steele also reminded the council that the chamber is not just handed $750,000 from the city, but that it has to pay out-of-pocket expenses from Chamber funds and/or its Line of Credit after which they can request payment from the city after it has reviewed the warrants. “We don’t get a check,” said Steele. “We have to pay up front.”

A number of business owners came the Council meeting on October 28 to support the Chamber.

Steele presented the chamber’s marketing strategy and what it plans on doing this winter. Obviously, the chamber will be advertising its Winterfest event but Steele also mentioned doing more with Echo Valley and Echo Ridge.

The Chamber sends out weekly and monthly news to its members and others. “We send out 30,000 monthly updates.”

“There is always a lot of conversations about community building,” said Steele. McCardle stated that the chamber’s efforts have been successful.

Zoning Code Amendment – co-living and ADUs:
Community Development Director John Ajax led a public hearing on the State mandated Growth Management Act (GMA) changes.

The updates to the Chelan Municipal Code are intended to increase housing options and affordability. The new regulations for co-living housing and a mandated requirement for cities to allow at least two ADUs on all lots zoned for single family homes.

Tim Hollingsworth said he hoped the new requirements will inspire more living opportunities for the community’s citizens. Mark Ericks feels it will be a positive move but still has issues with parking. Jon Higgins asked about square footage which is 1,200 sq. ft. per ADU. Ajax said, “They can’t go below 1,000 sq. ft.” Terry Sanders echoed Erick’s comment about parking and wondered how it may affect parking.

There were no public comments.

Motion Considerations:
                A. – Lake Chelan Airport Joint Operating Agreement entered into its seventh amendment. City Administrator Farris stated that the Port wants to extend the negotiations to December 31. “We are pretty close to an agreement,” said Farris. The current JOA expires on October 31.

                B. – The council unanimously approved a $53,100 prosecution agreement that is based on the $300.00 per case rate from previous years.

                C. – The council approved an expenditure of $53,600.00 Cascade Heating to replace two existing rooftop heating, ventilation and air conditioning units at City Hall and the Sheriff’s Office. “It costs a lot of money,” said Farris. “But in the long run it will save us money.”

                D. – Z Electric LLC Bid was accepted by the council to retrofit and upgrade the existing lighting systems to high efficiency LED technology at City Hall, the Library, 100 Building, the Water Treatment Plant, and the Wastewater Treatment Plant

The goal is to reduce energy consumption, lower operating costs, and improve lighting quality. This project will take advantage of the Chelan PUD’s Energy Efficiency Rebate Program.

                E. – City Council unanimously approved a not to exceed $125,630 Additional Services Addendum (ASA) to Ardurra Group Inc. to provide the scope and fee for the completion phase of the SR150 Sewer Main Replacement Project. The following additional services are as follows: 1. Project Coordination; 2. Design Services; and 3. Bid Support.

                F. – Transpo Group has been approved by the City Council to help with the 2026 Comprehensive Plan Update. Transpo Group will provide project management, coordination and engagement, existing conditions inventory, travel forecasts and needs, plan development, and implementation at a cost of $125,000+.

Brad Chitty remarked that it is a pretty small scale of what they are looking at. City Engineer Travis Denham said. “We are looking at Manson’s population growth.” Mayor McCardle added that the Woodin Avenue Bridge project has been separated from this project.

Chitty said if the bridge is not a part of the project, is it being taken into account. Denham replied that the bridge will end up operating as a one-way or two-way.

                G & H – PUD Interlocal Agreements. Denham reported that the PUD and City are entering into Interlocal Agreements to discharge wastewater from Chelan Falls PUD Park, Powerhouse Park and the Chelan Falls Fish Hatchery to the City’s Wastewater Treatment Plant.

In addition to the discharge the City and PUD have worked out a Lift Station No. 1 Project Contribution to improve that aesthetic and architecture components at the site which is located at the northeast end of Riverwalk Park. The council approved the Mayor to finalize

Construction on the Lift Station will begin in the summer of 2026.

                2025 Finance Qtr. Three report:
                In-coming Finance Director Heidi Neal Evans reported that sales taxes are lower and lower while city expenditures are increasing. “It is a perfect storm, if you will,” she told the council. As of September, sales tax revenue totaled $1,871,817 compared to 2024’s revenue of $1,982,343, a decrease of $110,526. With early fall collection months remaining Evans reported that the City is on pace for a budget expectation of $2,517,881 by the end of the year.

Councilman Brad Chitty said that there are a lot of cause and effects to seeing shortfalls. “Part of my job is to look at these things,” said Chitty. He added that it might be time to make some hard decisions like adding fee schedules for public works and the possibility of adding utility costs to customers.

Evans did report that park revenues are up over last year. Parks revenue over all departments was at $4,206,284 at the end of September.

Evans also reported that wages have increased from $5,400,000 to $10,423,000 over the past five years.

Overall lodging tax (2% and 3%) revenues are also on track to exceed the 2025 budget expectations.

                Boys & Girls Club MOU:
Communications Director Chad Coltman reported to Council that there has been no change to the Memorandum of Understanding with the Boys and Girls Club which is a two year partnership between the City and the Club to provide year-round recreational sports and a youth development programs for Chelan kids aged 5 to 18.

The City’s annual contribution is $45,000 and is included in the 2026 budget. The decision to continue will be addressed at the next City Council workshop.

                2025 Parks Communication Plan:
Assistant Parks Director Audrey Cooper reported in Director Paul Horne’s absence that a lot of effort went into the 2025 communications plan. “The security team provided daily reports to us,” said Cooper. Out of 1,000 security contacts at the City’s parks, Cooper reported that only three instances required Chelan County Sheriff intervention.

With Paul Horne’s resignation as director of the Parks Department, his assistant director Audrey Cooper will assume the position as interim director for the rest of the year.

The City’s parking enforcement staff cited 3,000 vehicles throughout the summer months.

This is a visitor distribution map for both Don Morse Park and Lakeside Park showing where they came from over the summer months based on cell phone data.

Mayor McCardle remarked from the parks attendance data, that the activity at Lakeside Park changed dramatically. “It became family friendly and the BBQ crowd moved to other areas.”

                Administration reports:
City Engineer Travis Denham told the Council that the Lakeside Trail contractor is in the paving mode of the construction and hopes the weather will cooperate so it can be finished up.

Assistant Parks Director Audrey Cooper told council that the Lakeside Park renovation is on schedule.

City Administrator Wade Farris remarked that he has had a remarkable life and career. He also said ending up in Chelan as his last stop has been a pleasure. “The council and mayor have been incredibly involved.”

                Mayor/Council comments:
Terry Sanders asked Denham if there would be any more traffic controls on the Lakeside Trail construction. Denham replied that there might be a couple of hours, but essentially traffic control will end when the paving is complete. Sanders also mentioned that difficult discussions will have to be made during the upcoming budget hearings.

The rest of the council members all congratulated Wade Farris on his tenure and retirement. Mark Ericks thanked him for his service to the country and the city.

Mayor McCardle reminded the council that a workshop would be conducted on the 11th and the final budget hearing on December 9.

She then told Farris that she couldn’t say enough about his service to the city. “Your leadership is exceptional and you are leaving this place a better place then when you arrived. You will be missed.”

She then congratulated councilman Brad Chitty for receiving his advanced certification from the Association of Washington Cities.

NOTE: Parks Director Paul Horne has tendered his resignation and in his absence from the department, Audrey Cooper will serve as the interim director through the rest of the year.

City Council approves new contract with Chamber of Commerce

by Richard Uhlhorn

The Lake Chelan Chamber of Commerce has a new and revised contract that will be in effect until December, 2026. The contract was approved by four of the seven person council on Tuesday, April 8. Voting No, was councilman Brad Chitty; abstaining was Jon Higgins; and absent from the meeting was Terry Sanders.

Prior to voting on the motion to approve the new contract, councilmembers had a robust discussion concerning several aspects of the new contract.

“When this discussion started it was for a five-year extension and $700,000 per year,” said Chitty. “It is time to regroup. I propose to keep it at $700,000 for the next two years while we plan.”

Councilman Brad Chitty was the lone councilmember to vote No on the current iteration of the Chamber contract.

At issue was Point 5 a 2 extending for the period through December 31, 2026 where the city would agree to pay the Chamber 20% of the average total city lodging tax collections from the two prior calendar years.

City Administrator Wade Ferris asked about the 20% concept. “What does that 20% look like. Higgins replied that it was a considerable amount of money that would be added to the $700,000 on a yearly basis.

Chitty stated that it was his understanding that the committee would review the $700,000. “I think transparency is important,” he said. Shari Dietrich stated that she supports Chitty’s proposal to keep it at $700,000.

Shari Dietrich agreed with Chitty but ended up voting for the new contract that will end December 2026.

However, Tim Hollingsworth said things had gotten more expensive. “Twenty percent of 2024 is $400,000. We need the resources to provide for people who come here,” he said. “I would like consensus on the board that instead of a minimum of $700,000 we make it a maximum of $750,000 in the two-year contract. That is a modest increase.”

“I understand what you are saying,” said Farris. “There is a reason why we spent so much time to put this together.”

Tim Hollingsworth suggested an amendment to the contract.

Hollingsworth admitted that the council doesn’t know what the chamber is spending money on. “Right now we don’t know and are just second guessing.”

Mayor McCardle replied that the chamber has to report exactly what they are doing (in the new contract). She stated that the city needs to take a look at what is spent. However she said that for every dollar spent, the city gets back $2.5.

Hollingsworth added that it is lodging tax money. “We are not limited to how we spend it.” He then mentioned the Golf course and that the city needs to find a way to make an investment. “We did determine we could use lodging tax money for this.” Hollingsworth stated he would support the contract as it is.

He then suggested an amendment to the motion as follows: “I move to authorize the mayor to finalize and execute the LCCC Lodging Tax Fund Agreement subject to the following changes:

  • 1.- Sec. 5 (c) Remove the words “not fall below” and replace with “not to exceed $750,000.

Final Agreement Change

5c. Minimum Funding Guarantee. Notwithstanding any other provision of this Agreement, the combined total reimbursement paid to the Chamber for Advertising and Promotion Services and Visitor Information Center Operations shall not exceed $750,000 in any Agreement Year during the term of this Agreement.

Chamber Reporting Requirements.

 a. Annual Report: The Chamber shall submit a written annual budget and performance report to the City by January 15th of each calendar year for the upcoming year. The report shall include:

(1) Overall Performance Metrics: i. Lodging Tax collection growth, overall as well as Q1 and Q4; ii. Sales Tax growth, overall as well as Q1 and Q4.

(2) Traditional Marketing Performance Metrics, including but not limited to: i. PR impressions by target audience; ii. Social media engagement by platform iii. Website traffic (e.g., page views, unique visitors); iv. SEO key words and click-thru rates v. Social media engagement (e.g., followers, engagement).

b. Mid-Year Review: A mid-year discussion shall be held during the July Council Workshop of the current calendar year. The review shall include: (1) Review of year-to-date Lodging Tax collections and marketing performance as defined in section 4; (2) Adjustment to Q4 strategies if necessary.

c. Quarterly: during the April, July, October and January workshop, a Chamber representative will provide an update on marketing efforts to City Council.

d. Monthly Expenditure Reports: Payment shall be made following the receipt of a report from the Chamber showing the previous month’s expenditures. The report shall be submitted by the 5th business day of each month and include: (1) Date, vendor, check number, and purpose of each expense; Page 4 of 7 (2) Categorization of expense (e.g., Wages, Supplies & Materials, Marketing, Legal & Prof. Fees, Permits, Utilities, Insurance) (3) The City percentage of each expense. (4) Any other information reasonably requested of the Chamber by the City, provided that the Chamber is permitted adequate time to prepare the information requested.

Public input: John Olson, a past city council member told the council that the City of Chelan is falling behind in its infrastructure needs. He mentioned the burgeoning second home sales, the population, number of retirees and new developments like the Wiedner Apartment

Citizen advocate John Olson reminded the council that the city is falling behind on infrastructure needs despite the growth.

Tourism:
Tourism in Chelan and around the world has become a double edged sword. Tourism has surpassed agriculture as the Valley’s number one economic driver.

In 2020, lodging tax receipts hit $1,357,013 which is the year that COVID hit and began to shut down air travel and other vacation locations. The pandemic drove lodging tax receipts up to S2,602,445 and $2,019.330 in 2021 and2022 respectively. Since then, receipts have remained above the $2 million mark.

With the increase in lodging tax receipts (more heads on beds) some unintended consequences arose with overcrowding at Chelan and other Valley public parks. Most notable were major issues of overcrowding at Lakeside Park which resulted in residents forming “Friends of Lakeside’ coalition to bring the overcrowding issue to the City Council.

Last summer, Lakeside Park overflowed with visitors.

This overcrowding issue didn’t just materialize from out- of-town visitors. It also included weekend issues wherein local users of Lakeside would show up at the park early in the morning, set up tent camps for large family gatherings that included loud music, barbeques and potentially illegal consumption of alcohol.

The Friends of Lakeside and the City worked together to change the city’s park rules that will hopefully eliminate most of these issues. To help, new signage, new parking kiosks and $100,000 contract to a company to help enforce those rules.

Don Morse Park also receives its quota of visitors on a hot summer day.

In 2024 there were over five million visitors to North Central Washington. Over 10 million visitor days were recorded with July and August being the busiest months.

“International travel to the United States has plummeted in recent months following President Donald Trump’s return to office, with global tourists increasingly avoiding the country due to fears of detentions, deportations, political rhetoric, and heightened border scrutiny,” Travel and Tour World wrote in a March report.

The steepest drop off in travel to the US comes from Canada. Border crossings fell by 12% in February and 18% in March. Tourism industry losses could exceed $90 billion dollars this year.. If the above reports are true the 2025 tourism season should be calmer with the advent of the current federal administration’s trade wars that will keep Canadians and other international travelers from visiting the Lake Chelan Valley.