Port Angeles council approves $163,613 in lodging-tax reserves after legal dispute
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Summary
After a prolonged legal discussion about the Lodging Tax Advisory Committee’s (LTAC) membership, the council approved using $163,613 in excess lodging-tax reserves to partially fund 11 previously underfunded grant applications.
The Port Angeles City Council approved using $163,613 from excess lodging-tax reserves to fund 11 previously underfunded or unfunded applications, after a debate over whether the LTAC recommendation was legally valid.
The council action follows an LTAC recommendation made at a March 20 meeting and a legal discussion at the council meeting about whether the LTAC had the statutorily required membership when it made the recommendation. City Attorney Bloor told councilors the controlling legal issue was whether a quorum had existed for LTAC when it voted and said, “what you look at to determine the validity of a meeting is whether there's a quorum or not.”
Why it matters: Lodging-tax distributions must comply with Washington statutes that set committee composition and procedures, and the council was deciding whether to rely on LTAC’s recommendation now or delay until vacant committee positions were filled. Councilor Navarro moved to table the request until the LTAC vacancy was filled; that motion failed. Council then adopted LTAC’s recommendation.
What council discussed: Councilor Navarro argued for waiting, citing conflicting legal interpretations about whether the LTAC’s membership met statutory requirements and saying a conservative approach would reduce legal risk for the city and the applicants. Navarro moved to table the recommendation and direct LTAC to re-review after vacancies were filled. The motion failed on a voice vote.
City Attorney Bloor responded that the key legal test is whether LTAC had a quorum at the time of its vote and observed that many legal guidance sources (including MRSC) provide information but not binding representation; Bloor emphasized that the city’s legal staff would defend its opinion if challenged. Councilor Brendan said he would not support the motion to table and argued the city's legal department's opinion should be followed.
Council action: A subsequent motion to adopt LTAC’s recommendation—to use $163,613 from excess lodging-tax reserves for the 11 applicants and to have the finance director include the action in the next formal 2025 budget amendment—was moved and seconded and passed by voice vote.
Context and cautions: Councilors noted applicants typically receive lodging-tax awards by reimbursement, meaning recipients spend project funds first, then submit receipts for reimbursement. Some councilors said delaying awards could create hardship for event organizers who already spent money. Others worried an adverse legal challenge could expose the city or recipients to liability.
Where it goes next: The council requested that the finance director include the award amounts in the next formal 2025 budget amendment for appropriation and administration.
Votes and procedure: The transcript records voice votes and procedural motions but does not list an individual roll-call vote tally in the public transcript. The council recorded the motion to adopt LTAC’s recommendation and directed the finance director to include the funding in the next budget amendment.
