Door County Tourism Zone Commission : Meeting Minutes

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April 15, 2010 Door County Tourism Zone Commission Meeting - Minutes

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OF APRIL 15, 2010
YMCA Camp Wabansi, Brussels

ACTION ITEMS:
Jeff Larson moved to approve the agenda as submitted. Little Bit LeClair seconded. All ayes.

Bill Weddig moved to approve the minutes of March 18, 2010, as submitted. Pauline Cyrus seconded. All ayes.

The Commission Bylaws will be amended to reflect a two-thirds �yea� vote from municipalities on the Resolution to set a different Annual Meeting date than May, currently stated in the Bylaws. This year�s Annual Meeting will be June 17 to coincide with the regular TZC monthly meeting.

Skare moved and LeClair seconded to adopt a Resolution from the Tourism Zone Commission, as read, celebrating National Tourism Week and National Tourism Day . Motion passed unanimously.

Consensus that Official Payments� proposal to add credit card and e-check functions to the room tax online submissions is a good one. Kufrin will add it to the May agenda and have the contract ready.

Larson moved to approve the Kerber Rose payables and the rest of the reports; Jeanquart seconded. Motion passed unanimously.

Kufrin moved and Olsen seconded to Convene into Closed Session pursuant to Wisconsin State Statues, Section 19.85(1)(a)(f) or (g) to consider enforcement action against certain businesses regarding the room tax permitting, late payments, and reporting. Motion passed unanimously by roll call.

Stayton moved and Larson seconded to return into open session. Motion passed unanimously by roll call.

Jeanquart moved and Weddig seconded to have Vande Castle move forward on compliance with Clemons, Johnson, Hanson, Lodge at Fish Creek, and Super 8 Motel. Motion passed with LeClair abstaining.

Committee Members Present by Roll Call: Bob Kufrin, Tom Benzshawel, Mary Boston, Richard Briggs, Pauline Cyrus, Sandy D�Amico, Dave Holtz, Diane Jacobson, Debra Jeanquart, Mike Johnson, Jennifer Laughlin, Jeff Larson, Little Bit LeClair, Tom Olsen, Dick Skare, Carol Stayton, Bill Weddig

Excused: Paul Flottman, Nancy Goss, Bryan Nelson, Chuck Tice, Nora Zacek; Dianne Lensert, Kerber Rose & Assoc.

Also in Attendance: Jack Moneypenny, Mary Denis/DCVB; Bill Vande Castle/Vande Castle SC; Kathy Kirkland/TZC Administrative Assistant

Audience: Cletus Fontaine, Union Town Chair, Charity Forsch/Administrator-Clerk, Ephraim

Approval of the Agenda
Jeff Larson moved to approve the agenda as submitted. Little Bit LeClair seconded. All ayes.

Approval of Minutes
Bill Weddig moved to approve the minutes of March 18, 2010, as submitted. Pauline Cyrus seconded. All ayes.

Administrative Assistant Report
Kirkland noted that compliance continues with late notices going out. There are specific properties that will be addressed in closed session. Kufrin had given Kirkland a notice on LifeQuest Services collection agency that goes through the regular collection process but also works with Wisconsin�s TRIP program, which allows LifeQuest to attach the tax due to any refunds due the permit holder from the State. Mark Price sent a PDF of fees and services, but there was not enough time to digest the information for this meeting; it will be something a re-formed Compliance Committee will address.

Kirkland noted that Finance Committee approved the lease of a refurbished printer from Wisconsin Imaging for the Tourism Zone office, which she had recommended instead of an outright purchase. Response time for service calls is about 4 hours. The cost for this copier is $/month plus a maintenance agreement charged by monthly copies. The machine can duplex, copy, and scan in addition to printing. Kirkland will copy meeting materials instead of the Village of Sister Bay. The average cost of Sister Bay�s printing invoice is $100-$150 a month (March was $211), so making this an in-house function instead of outsourcing will be cost-effective.

Report by the Door County Visitors Bureau
Moneypenny reiterated that the National Tourism Week breakfast is May 13 at 9:00. So far, he has 112 people who have RSVPd; they�re not the usual suspects. He urges everyone to attend and hear the speakers, Kelli Trumble (WI Secretary of Tourism) and keynote Bill Geist, Zeitgeist Consulting/Madison.

Moneypenny noted that the Visitor Bureau lobby needs more time to come into ADA compliance (roll-up service window, etc.). The refurbished lobby will open Memorial Day weekend, but the facilities will still function during the renovation period.

The 24 members of the DCVB Board went on a day-long retreat. It wants to look out 5 to 8 years for a long view and then have three-year goals. The Board looked at surveys from TZC commissioners, the DCVB Board and staff, and all comments were in unison: Visitor Bureau�s efforts are heading in the right direction, especially in terms of preserving Door County as we move forward with tourism. Bill Geist from Zeitgeist Consulting facilitated the retreat. The Board will come back in two weeks with a game plan, and Moneypenny will publish the finalized goals. Kufrin asked about sharing the visioning with the County board re: Smart Growth. Moneypenny said once it�s full approved, he wants everybody to buy into the goals.

He�ll �take the show on the road� to Rotary meetings, board and village boards, etc. The public piece for National Tourism Week will be distributed widely during that week in May to get more people thinking about tourism in a positive way. It explains the breakdown of the room tax in detail. Kufrin noted that the county�s Smart Growth plan identifies the DCVB as having responsibility for several tasks; Moneypenny said the county has never asked him about this.

Mary Denis stated that web stats are up, a 40% increase over last year. People are checking out Door County earlier this year. The DCVB sent out 350,000 e-mails for the spring Romance package, using a combination of its database and innkeepers� databases. Jarosh is attending the Society of American Travel Writers conference and representing us there. He has booked many travel writers for �fam� trips this year.

Kufrin asked about pay-per-clicks, up substantially; what�s the upper limit the DCVB pays for? Denis said they cap at 60,000. Kufrin asked if the DCVB is able to measure the value of pay-per-clicks. Denise said the ROI from eBrains tries to give a response to that. Because the pay-per-clicks are new customers, it�s hard to predict if they�ll stay on more than six months or so. At some point, they�ll purge the database so it�ll be tried-and-true customers. She noted that ad impressions don�t compare March to March because they had large publications last March. There will be increasing impressions in April/May.

Denis said the re-skinned website will be revealed in May 4; the Commission will have an opportunity to beta-test it in the next couple of weeks to look at all functions and report bugs. They feel the new look of the website will increase people going online.

Jeanquart asked about the Certificate Ambassadors. Denis said there are more than 200 now, and they�re arranging a CTA mixer on May 4. The next step is getting on top of recertification and when each person is due for additional training; some classes are mandatory, some aspects are self-monitoring

Report from the Commissioners on the Status of:
Annual Meeting Bylaw change. Kufrin asked which communities had passed the Bylaw Resolution to allow the Commission to set a different Annual Meeting date. Kirkland reported that we have the two-thirds (plus two or three additional) necessary to pass the Resolution. The Bylaws will be amended to reflect this vote, and the Annual Meeting will be June 17 to coincide with the regular TZC monthly meeting.

Discussion on Tourism Zone participation in National Tourism Week. Moneypenny had requested that the Commission do its own Resolution to recognize the week and National Tourism Day. The copy is similar to the municipalities� except for naming an official day in that village or town since that doesn�t apply. Kufrin read the draft of the Resolution from the TZC and asked if the commission wanted to approve it. Skare moved to adopt the Resolution as read; LeClair seconded. All ayes.

Stayton said that Washington Island did not official discuss it; Cyrus and Briggs stated that Gardner and the Town of Sturgeon Bay, respectively, had not. Stayton said Washington Island�s chair is against Resolutions on principle and against this one in particular. Kirkland received two Resolutions directly that she�s passing on to Moneypenny.

Feedback from local boards on recent issues. Kufrin asked if the commissioners meeting with own boards. If so, what kind of feedback are you getting? Larson said �apathy,� as long as the checks keep coming. Jacksonport is positive and thankful for the funds, LeClair said. Kufrin asked if there�s feedback about doing things differently. Skare said just keep the checks coming. There�s confusion on the local level about the township�s 30% and how it�s spent; it does not have to be spent strictly on tourism, it can be directed to any use. Stayton understands about the 30%, but if you want lodging to continue to participate and not demand to pull out, we have to have enforcement. We need local government cooperation. Moneypenny tells people �many communities have invested some of the funds� but he does not say they have to; he can�t tell communities �we must reinvest.� Stayton said part of the sales job to accept the room tax was getting help doing the Island�s own marketing. Stayton said that was inferred when the program was initiated. Laughlin noted that it�s a choice made by the municipality. Kufrin said the ordinance makes it clear that local officials decide how to spend the money; there�s no directive that they have to do one thing or another. Some municipality ordinances did commit an allocation, and local officials made that decision. Skare feels it�s right that each community do so. Whatever�s talked about in the community is what should transpire. Benzshawel asked if the confusion is between CMF money and regular room tax 30%. Stayton said no, that Washington Island wanted a specific percentage allotted to the Chamber, so it was a local decision, but when room tax was presented it was posited differently.

Kufrin said part of Commission�s job is to be an intermediary between the communities and DCVB as to the value and impact of tourism. There�s no other mechanism to get back to local boards, so commissioners must give and provide feedback, then question Moneypenny from the local level. Kufrin said many local officials don�t have familiarity that the commissioners do or the ability to interpret numbers. Each commissioner should report to their local boards on a regular basis. Moneypenny said that DCVB Board members also have to go back to their communities. If both bodies do that, then room tax can be explained. Weddig said having the DCVB Board members be liaisons is critical; he has questions about marketing programs that the DCVB decides upon. He would welcome seeing DCVB members at local meetings. Kufrin said if anyone sense their boards need a presentation on what the TZC is doing or the DCVB is doing, Kufrin or someone else could talk about it if it the local commissioner does not want to do it. We are a support system, so if feedback is important.

Adoption of early intent to remain in the Tourism Zone. Kufrin noted that some municipalities are passing resolutions on early continuation for the room tax; we also need input on value of CMF. Kufrin said there was a five-year commitment; anyone could pull out after that. One of the challenges is that the deadline looms in minds about what�ll happen to CMF; if communities re-up and saying, �We don�t want to wait five years,� some of the stress on DCVB is diminished, as is the lingering aspect of CMF funding to local communities. Sister Bay�s passed resolution can be a template for other communities.

Report from the Finance Committee
Community Marketing Fund. Finance talked about CMF. Kufrin felt it makes more sense to the DCVB Board to discuss the value of CMF with communities, what CMF allows them to do differently than in the past, future value, what would happen if CMF money went away. Washington said the CMF funds go directly to the Chamber, and the town could care less. Kufrin said it�s managed by the Visitor Bureau, so it�s up to Moneypenny�s board to discuss the issue and come with recommendations to the TZC as to whether it continues. CMF is in the DCVB budget; the Commission doesn�t direct what is included in that budget, but does have final approval authority. It makes more sense for DCVB to make a recommendation. Stayton said the sense was that the communities were experiencing positive things from CMF, and Washington Island was prepared with ideas as soon as CMF was ready. LeClair said Jacksonport now has a 20-page brochure, jazz in park; it has done a lot with that money. Holtz said it�s a concern among the City of Sturgeon Bay Council that it keeps CMF.

Stayton said Sturgeon Bay and Washington are at each end of the county; we all have to change how we�ve done business and embrace the county concept. If CMF can transition into the future, Sturgeon Bay can still do their marketing to make the city as unique as it is, just as Washington Island also has uniqueness. Benzshawel said the CMF program has enabled Sturgeon Bay to market its community; Hill was instrumental in making that happen. He feels it�s important to continue CMF.

Kufrin hopes the CMF fund fits in with the county story. He likened Moneypenny to a Five Star General with three One Star Generals but with only three troops (employees) in the field. It was CMF that put armies in the field working toward the established goals. Those dollars have allowed for 225 CTAs and activities that tie things together. The DCVB can get people here, but if the communities troops are rude or don�t care, it�s counterproductive. Stayton noted that the DCEDC is not in the forefront. Kufrin said that the City of Sturgeon Bay wouldn�t have joined The Zone if the business community didn�t say �it has to happen.� The Commission doesn�t have the ability to force someone to act.

Kufrin asked Moneypenny what would be a reasonable course of action. Moneypenny will put it on the DCVB agenda for the next board meeting. His one thought: He�s not anti-CMF, but he�s frustrated about losing the meaning as to why CMF was created. The intent to the municipalities was, �Don�t start something you can�t finish after three years; the money is going away.� CMF was supposed to bring local business associations to a new level and help them move forward. The intent was for the Sturgeon Bay Visitor Center to find alternate money after three years. If the rules have changed, then we can change direction. Kufrin referred to Stayton�s point about unintended consequences; it has blossomed beyond expectations. Moneypenny said of the $2 million a year, at 15%, that�s $300,000 into CMF. If $1.7 million has to go to CMF, then it diminishes the DCVB by $1.7 million.

Benzshawel said once visitors get here, we need to provide a quality visit; part of that is knowing the infrastructure of marketing in the communities. CMF doesn�t provide for visitors; it enhances the visitors� experience. Even taking Sturgeon Bay out of the equation, Kufrin views CMF as marketing dollars; it�s still part of the 68 cents Moneypenny talked about.

Laughlin asked if anybody is telling the innkeepers what money is being used for. She felt the business communities need to know, not just council/boards. Moneypenny said each community has to follow the CMF funding mandate, using the money to drive overnight stays. Laughlin feels the overall picture is important. Kufrin said the Sister Bay Advancement Association gave a detailed report to his board on what they�d be doing. He�s not aware if the SBAA sends it to its membership. Benzshawel asked if Hill come to talk about CMF. Moneypenny said that 100% will say �Yes, give us CMF money.� Moneypenny will determine how the presentation will be made.

Official Payments: credit cards/e-check.
In an effort to make it easier to pay room tax owed, the current ACH was initiated and is used mostly by larger businesses. Now we have the option of using credit card and e-checks. The initial dilemma was that with normal credit card transactions, the business pays the fee. In this case, the Official Payments Company charges the user (permit holder) a service fee. Vande Castle has looked at the agreement and says that there are no fee schedules. Jeanquart said her experience in adding a fee to book rooms online has not worked well. Kufrin said this option is voluntary. Jacobson asked if permit holders can still pay by check. Yes, they can. Kufrin is hoping more people will take the electronic route, which will save Kerber Rose expenses, especially in the high season. Weddig noted that Vande Castle�s assessment stated there are agency fees. Kirkland�s recollection is that there are no fees to the Commission. She will check with Rolando Navarro and get a full contract with fee schedules. There was consensus that this is fundamentally a good idea. Kufrin will put it on the May agenda and have the contract ready.

Consideration of Approving Reports and Payables
Larson moved to approve the Kerber Rose payables and the rest of the reports. Jeanquart seconded. Kufrin said an innkeeper wanted to use the online information to make marketing decisions on advertising and asked why the February 2010 information isn�t online. Kufrin�s inclination is to put information online only after the Commission has an opportunity to approve the numbers as well as the previous minutes. Vande Castle doesn�t feel the TZC should issue them as official documents until approved. Kirkland stated that the each month�s numbers are available only about a week before each Commission meeting anyway; Kerber Rose has to reconcile the month and do the reports. She posts them online the day of or the day after each meeting. Kufrin�s response will be that the TZC is entitled to see reports before they go on the website. There is consensus for that. Kufrin called the question re: approving payables and reports. All ayes.

Discussion on asking the DCVB to Present a Report on Budget Allocations
Finance also talked about budget presentations by Moneypenny occurring relatively late in the year, long after the numbers are put together and costs allocated between marketing and membership. Kufrin has looked at the percentage of allocations of room tax and what membership fees pay for. He talked with Moneypenny and feels it would be worthwhile to hear a presentation before the budget approval process that explains where the room tax dollars are going vis a vis membership dollars for all activities aggregated. As it is now, the DCVB looks like one organization; the Commission needs to understand how those dollars are split.

Moneypenny is happy to give that kind of presentation. He acknowledges that the fulfillment area is 100% marketing, and some line items such as payroll expenses were allocated 70% to marketing and 30% to membership, as that�s how the time is spent. His idea is that every dollar moved into the program area is a win for all of us. However, this year, he took a lot of the 70/30 splits and flipped them so that 34% is marketing and 66% is membership; this way, he could push more dollars into marketing. He�s comfortable saying that 68 cents of every dollar is touching the consumer. Benz said Finance would like to see how he did the work; Moneypenny said it�s primarily in salaries. Benzshawel said the City did it in a similar fashion but had the same challenge as how the room tax was split. Juggling two budgets, they ended up constantly explaining the two. Moneypenny wants transparency. He can�t topload it too heavy for marketing or they can�t pay staff. The process begins in July/August, and before they go into final declarations, he will explain to the Commission. Kufrin said the marketing budget has a lot of numbers and how they flow back and forth is a function of the percentages. Once people understand, the budget approval will be easier.

Report from the Nominating Committee
Kufrin said Andy Coulson resigned as At Large commissioner for business/scheduling reasons. He was also on Finance and Executive Committee; should we consolidate those committees? Weddig said the Nominating Committee has talked about meeting times, dates, frequencies. At the March meeting, Tice suggested moving it to 9:30 to accommodate Stayton and others. Kufrin said the meetings have always been the third Thursday at 9 a.m., and when new members come on, they�re told that. Does the TZC want to change the Commission meeting, change day of month or time of meeting? Our Bylaws provide for the Commission to decide frequency. Weddig�s feeling is that now that the heavy lifting is done, compliance is the main issue, and he personally doesn�t feel we need a monthly meeting with a full Commission. Finance is a separate meeting, Compliance is a separate meeting. It�s all volunteer. He feels we could eliminate March, July, August, perhaps one winter meeting. We definitely need a meeting at budget time. Perhaps Finance could meet on a monthly basis at Kerber Rose. We would probably need the DCVB to meet with the Commission only quarterly while still getting their information monthly.

Kufrin asked if people are interested in chairing. No volunteers to date. The other officers won�t be a problem. Weddig could take vice-chair. Kufrin said Finance had talked about that many items are routine now; if we went to a quarterly meeting and send out monthly reports, there�s no reason that couldn�t occur. Finance has evolved more into an Executive meeting; it�s tough to get a full Commission quorum. The time and date has worked out, but that may have kept people from serving. Kufrin noted that the perception that �only retired people� could serve is incorrect; only 1 out of 23 commissioners is retired. Nominating Committee needs to resolve the issues.

Larson suggested cutting out a month here and there, perhaps July and September, and then look at cutting January and March. LeClair said compliance shouldn�t have to wait three months; would Compliance Committee make the decisions and have to come to the board for approval? Benzshawel said we have to create a system where Commission as a whole doesn�t have to decide; it goes through a standard progression. Skare feels quarterly Commission meetings might be enough once compliance are in place. Kirkland asked if individual communities� commissioners would need to hear about their own compliance issues.
Briggs felt we need the strength of the Commission; we can�t cut out too many meetings. We represent groups of other people, so communication is necessary. We don�t want to lose what we�ve built. Laughlin felt the same, especially when trying to get communities to re-up.

Kufrin said the past year has been concentration on compliance. It could evolve to something simple and straightforward; catching them early enough that there�s not an enormous effort. Vande Castle said if there�s concern about the Commission members wanting more involvement, the Compliance Committee agenda and issues discussed could be circulated; anyone could go to Compliance meeting to address concerns about actions. His experience is that it�s best to have a regular rotation of commissioners assigned to show up in addition to Compliance Committee members; it builds up a historical background of knowledge when members transition out. Stayton noted that from a practical standpoint, it�s difficult for an Islander to come here. As far as compliance, her board turns deaf ear, and the community is frustrated.

Kufrin asked the commissioners to think about this until the May meeting. We need an appointment to replace Coulson. We have elections at the June meeting, so the commitment of time for officers shouldn�t be a surprise. If we modify Finance/Executive into one, it could continue as monthly. It�s appropriate to resolve those issues at the May meeting.

Stayton asked Vande Castle about consolidating Financed/Executive; are there any landmines there? Vande Castle said it�s possible. Weddig envision having some type of group meeting every month. Everyone is welcome at any committee meeting, such as Executive/Finance, but issues of a quorum wouldn�t come into play. How would Kirkland�s job be different? She said she would still be sending out monthly reports from Kerber Rose, whether by e-mail or regular mail (according to each commissioner�s preference). There would be less to copy/send out for monthly meetings, but the rest of her duties would not change.

Kufrin noted that time is of the essence to get reports from Kerber Rose, get them copied and out the door for the meeting. We have to time meetings to match Kerber Rose�s functioning. If the reports went out a week or so later, the urgency would decrease. Kirkland noted that it would also delay Internet reports that have to be approved. Briggs asked if the committees could approve those. Kufrin said there are issues sensitive enough
that you need an entire Commission; they�d just be held to next meeting, such as the issue of credit cards, CMF, and so on.

Vande Castle says if there are quarterly meetings, if an issues couldn�t be resolved, a special meeting could be called, perhaps the next month on the regular meeting date. It could be predetermined that the third Thursday would be an alternate/special meeting date. The City of Sturgeon Bay has a �consent agenda� with just one motion to approve all. An alderman has the right to move an item from the consent agenda to separate it out and discuss but not take action; it then appears before the Commission.

Consider a Motion to Convene into Closed Session pursuant to Wisconsin State Statues, Section 19.85(1)(a)(f) or (g) to consider enforcement action against certain businesses regarding the room tax permitting, late payments, and reporting. Kufrin so moved; Olsen seconded. All ayes by roll call: Kufrin, Benzshawel, Boston, Briggs, Cyrus, D�Amico, Holtz, Jacobson, Jeanquart, Johnson, Laughlin, Larson, LeClair, Olsen, Skare, Stayton, Weddig.

CLOSED SESSION

Consider a Motion to Reconvene into Open Session
Stayton moved to return to open session; Larson seconded. All ayes by roll call: Kufrin, Benzshawel, Boston, Briggs, Cyrus, D�Amico, Holtz, Jacobson, Jeanquart, Johnson, Laughlin, Larson, LeClair, Olsen, Skare, Stayton, Weddig.

Jeanquart moved to have Vande Castle move forward on compliance with Clemons, Leroy Johnson, Jon Hanson, The Lodge at Fish Creek, and Super 8 Motel. Weddig seconded. All ayes.

Adjournment
Larson moved to adjourn; Jeanquart seconded. All ayes. The meeting adjourned at noon.

May Meeting
The May 20 meeting will be at Gardner�s Town Hall.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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