Door County Tourism Zone Commission : Meeting Minutes

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August 19, 2010 Door County Tourism Zone Commission Meeting - Minutes

DOOR COUNTY TOURISM ZONE COMMISSION
and Executive Committee
Minutes of August 19, 2010 - 9 a.m.
City of Sturgeon Bay/City Hall � Community Room

ACTION ITEMS:
Tice moved and Goss seconded to approve the agenda as submitted. Motion passed unanimously.

Nelson moved and LeClair seconded to accept the July 15 Executive Committee minutes as submitted. Motion passed unanimously.

Larson moved and Nelson seconded to approve reports and payables. Motion passed unanimously.

Kufrin moved and Tice seconded to go into Closed Session pursuant to Wisconsin State Statutes, Section 19.5(1)(a)(f) or (g) to Consider Enforcement Action against Certain Businesses Regarding the Room Tax Permitting, Late Payments and Reporting. Vote by roll call: Ayes from Boston, Nelson, Johnson, D�Amico, Larson, Laughlin, Cyrus, Weddig, LeClair, Olsen, Tice, Kufrin, Starr, Holtz. Motion passed unanimously.

Kufrin moved and Tice seconded to return to Open Session. Vote by roll call: Ayes from Boston, Nelson, Johnson, D�Amico, Larson, Laughlin, Cyrus, Weddig, LeClair, Olsen, Tice, Kufrin, Starr, Holtz. Motion passed unanimously.

Larson moved and Olsen seconded to act on all 9 properties presented in Closed Session. Properties 1-7 and 9 will receive a strong letter, as discussed, from attorney Vande Castle with invoices/estimated invoices. With Property 8, Kirkland will send a Certified letter, giving two weeks for explanation; if none appears, that will also go to Vande Castle. Olsen seconded. Motion passed unanimously.

Nelson moved to adjourn; Boston seconded. Motion passed unanimously.
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Committee Members Present by Roll Call: Robert Kufrin, Mary Boston, Bryan Nelson, Mike Johnson, Sandy D�Amico, Jeff Larson, Jennifer Laughlin, Pauline Cyrus, Bill Weddig, Dick Skare, Elizabeth LeClair, Nancy Goss, Tom Olsen, Chuck Tice, Bob Starr, Dave Holtz

Excused: Richard Briggs, Deb Jeanquart, Carol Stayton

Absent: Paul Flottman, Diane Jacobson, Nora Zacek

Also in Attendance: Mayor Thad Birmingham/Sturgeon Bay; Jack Moneypenny, Mary Denis, Jon Jarosh/Door County Visitor Bureau; Dianne Lensert, Kerber Rose & Assoc.; Kathy Kirkland, Administrative Assistant; Warren Bluhm/Door County Advocate

Call to Order
Chair Bob Kufrin called the meeting to order at 9:02 a.m.

Welcome New Members
Kufrin introduced Mayor Thad Birmingham and thanked him for his ongoing interest in the Commission�s work. We have a joint history, and whenever he would like members of the Commission to meet with him or Council, just ask.

Approval of the Agenda
Tice moved to approve the agenda as submitted; Goss seconded. All ayes.

Approval of July 15, 2010, Executive Committee Minutes
Kufrin asked for any questions or clarifications. Nelson moved to accept the minutes as submitted; LeClair seconded. All ayes.

Report from Administrative Assistant on Current Activities
Kirkland noted an omission on her report: There are six properties that have not become permitted, and she has sent out five �first notices� of noncompliance within the past week. She understands that the password-change feature is nearly ready on The Zone website but has heard nothing about Official Payments but it seems to be on a back burner. She did get a call acknowledging that we now take credit cards, so part of the process seems to have been done.

Although there are still those who owe late fees and penalties, the total owed has dropped by $9,000+ since last month, leaving $11,617.07 still outstanding, with 84% of that owed by three permit holders. There are more properties to consider in closed session that should move forward in collections.

Moneypenny asked about classifications of types of units: Can we get them to match with Davidson-Peterson�s definitions? Lensert said the main differentiation is houses versus cabins, and it just depends on what the owner decides to call it. Moneypenny said Davidson-Peterson sent their of Door County properties and when matched against our list, there are different categories. Can we get them to jibe? Lensert said hotel/motel is lumped together for The Zone; there�s no distinction. Kirkland said she couldn�t find clear-cut definitions of an �inn� versus a �resort,� etc., or it would be easier to classify other than just what people want to be seen as. Moneypenny will forward the Davidson-Peterson list to Lensert. Kufrin asked if it would bump Door County�s ranking up in the polls if it�s more accurate. Moneypenny felt it could go either way, but the classification is the first thing they look at before calculating other stats. However, Davidson-Peterson�s numbers depend on phone calls and who they get, how much time they spend in questioning. They ask for average number of visitors and average stay, and the consensus is that most answers are guesstimates.

Kirkland mentioned that one property was found to be in the wrong municipality and highlighted the necessity to look over the Permitted/Removed lists for any anomalies. Since her report, Nasewaupee has also reported that they approve the lists. The five permits issued since July�s meeting are all new properties, not just new owners. Goss noted an extra word (�in�) in the form letter for late filings; Kirkland will take care of it. LeClair asked if she could be listed as Elizabeth instead of Little Bit in letterhead, etc.

Report on Marketing Efforts by the Door County Visitors Bureau
Moneypenny noted that web and unique visits are down over the past couple of months although overall, they�re ahead of last year. eBrains and Noise say it�s a trend out; there�s no specific reason but they�re trying to discover why. Visitor Center traffic has been crazy: Last July had 9,700, this year it was 14,693. They have moved some staff parking next door (for a stipend to the Sturgeon Bay Visitor Center) to make more room, which will continue through mid-October. In August, they already had 7,600 people through the door; last year was 8,600 for the entire month. Many are people new to Door County. Moneypenny urged lodging owners to continue to call on Thursdays with vacancies; it�s helpful for weekend traffic. Kufrin asked if they query what drives the visitor to the Visitor Center�the Guide, marketing, ads? Moneypenny said they don�t ask on site, only over the phone; it�s too hectic in the Center itself. Moneypenny applauded Mary Denis for getting a $12,806 grant from the State, which introduced a grant program for visitor centers; 35 applied and 15 were given grants. They will put that money back in the budget and filter it into marketing.

Moneypenny said they�re in middle of their membership drive and have gotten back 430+ members out of their 600. Businesses have a 30-day grace period but then will be shut off. They�re on target for their goal; they�ve added 54 new people since January and only two have dropped. Kufrin asked if municipal members have joined. Moneypenny said Berndt has sent out packets but most don�t see the value in joining. They feel they�ve gotten most of the low-hanging fruit now, and Martha Beller will become more of a service person (�what can we do for you?�) as opposed to selling membership. The DCVB has started working on the Strategic Plan for 2011.

Denis acknowledged that web visits are down for July but up every other month, perhaps a result of driving people to the web earlier this year. There�s also a trend away from official sites toward social networking. They get a monthly social networking report. Unique visits are up 10%, there are new people on the site. Kufrin asked if they use Google Analytics; Denis said they now use SmartStats which uses the same method as Google. When they changed services, the podcast and videos aren�t being counted, but that will be adjusted. Starr asked if the website is down historically. Mary said they measure July of last year to July of this year, which has always been historically the highest. June has been the highest this year. At some point, they�ll equalize numbers; next, they have to purge the eBrains list and start putting out PI leads for new people. That will happen at the start of next year; older leads will be put in a different category for less-frequent e-mails, etc.

Kingdom So Delicious has evolved from a spring campaign to a fall campaign, more of a harvest even. It was a hotel packaging opportunity for three weeks in September, and it used to be you could talk to a farmer and connect to local fishermen, which was labor intensive and drawing few people. It will be revamped to 10 days is 2011. This year, it�ll be six self-guided tours of Door County as a large culinary map, probably available next week: (1) Made in Door County, (2) Field to Table, (3) Freshly Caught, (4) Something Sweet, (5) Wineries, and (6) Orchards and Farmers Markets. They are doing behavioral targeting to online customers who read culinary articles and websites. Moneypenny said that the NetSeekers program patented by eBrains can determine if an article is positive or negative, and the DCVB banner ad goes on the positive articles with a click-thru. (Bluhm arrived, 9:30). Denis said it�s targeted for empty-nesters and people who have the freedom to travel (e.g., no kids in school) during the fall. Kufrin asked if members had to buy into the new map. Moneypenny said they took past information and researched a couple of extra topics.

Nelson noted the significant gain in media marketing numbers such as AVE and statistics; was it the result of a campaign? Jarosh said they had a decent July with two big hits: Relish, a national newspaper insert to 15.5 million throughout the country; the article was by a journalist who came up here in 2008 as part of the �fam� trips. The St. Louis Post Dispatch had decent coverage to bolster the numbers. The next press trip with 12 to 16 journalists will coincide with Kingdom So Delicious and feature a culinary theme with the maps, along with other activities.

Kufrin asked when the DCVB anticipates presenting the Strategic Plan and budget. Moneypenny said the plan will go to their board in October, they�ll ratify or make changes by October 15, at which time it�ll go out to Commission members. The presentation will happen in December at the full meeting. Kufrin said it would be discussed at the Executive Committee�s November meeting and before the board in December. Mary noted that they�ll send it earlier to ensure the Commission has time to review it. Moneypenny added that when The Zone has a budget meeting to let the DCVB know. Kufrin said The Zone will start pulling numbers at September�s meeting; we won�t have August room tax figures until October, so doing much before October won�t tell us the full picture. So far, we�re tracking up 5.4% YTD over last year but it could change. Anecdotally, Moneypenny has heard positive word, with the majority of lodging starting out slow in August but gaps filling in and overall having a very good summer. Retail/restaurant are up or down depending on the type; for example, high-end artwork has been up dramatically over the past two years. Wagon Trail and others stated that private campgrounds are up 10% this year. Skare noted that business has been about the same; LeClair has lost some regulars but at times it picked up. Boston experiencing the same thing but working twice as hard; people are coming last minute and staying fewer nights. September looks good. Weddig noted that reservations for fall have dropped off in the last two weeks; D�Amico felt people were concentrating on the new school year. Kirkland noted that Ephraim is very positive about their season. It was noted that condo hotels with full kitchens keep people out of restaurants.

Kufrin asked the Commissioners if they�ve gotten any feedback from their boards. Skare said that Gibraltar passed the Resolution to re-up for room tax. Olsen asked Kirkland to send him the Sister Bay template for that Resolution.

Consideration of Approving Reports and Payables plus Receipts to Date
Lensert has rerun and adjusted all months through May, so month-to-month is now directly comparable. May had a lot of late payments, and June lates are coming in. YTD, including June, room tax is up about 5.4% YTD and June is up 5.1%. Available rooms already show a nice percentage. Kufrin asked the innkeepers about unit availability and ADR: Last year, the average rate was $118 and this year $117, which suggests they�re discounting. Nelson said they are and it�s logical to see a slip in ADR in a year of recession, but for an average of just down $1, it�s not bad and YTD is up 5.4%. Nelson said he has seen some �panic discounting.� Some come in at the last minute and say, �Can you do any better?� If you�re not at capacity, there�s room to discount. Skare noted that he has done it, but in the 1990s, you couldn�t expect a last-minute room. Starr asked about the 40%-45% occupancy; what was it in the 1990s? There might be hard figures from some tourism trade magazines, but anecdotally, Skare said there was never a time where you had a vacancy; now you can come up at will. LeClair used to drive around and would see only a handful. Starr asked how 40%-45% occupancy compares to other tourist areas. Do we have an oversupply or undersupply? Larson noted that it�s always oversupplied. Skare noted we have a lot more 1s and 2s since the 1990s. Nelson asked if Davidson-Peterson can be asked about other locales; Moneypenny will try, or perhaps Smith Travel. Kufrin stated that when look at 129,000 available units, many are homes. How much building has taken place in the last 10 to 15 years? Back then, it might�ve been 60% occupancy but fewer units. How did inventory change? Nelson felt it had changed greatly. Kufrin felt we�re one of the few tourism zones that keep such detailed track; for example, the Dells has a room tax but no detailed reporting. Many do quarterly reports.

Weddig said we need to compare to other areas only if they have private homes woven into it; it�s hard to find a comparable area unless we look only at commercial. Kufrin noted that we�re now distinguishing between commercial versus non-commercial rentals. Part of that is useful for data mining, room rates, occupancy, so the DCVB is able to do something with it. Moneypenny said if you look at June numbers, the non-commercial ADRs are up, at $155 average rate; a huge difference. Starr is interested in industry standards and how we compare. Kufrin said Davidson-Peterson provides annual comparisons; Moneypenny could get them to Starr. Moneypenny indicated that it�s only the economic spend of tourism on a community, an impact of lodging. We�re 99% leisure; we don�t have meeting/convention, etc. Other municipalities have huge business and meeting business; it�s all lumped together in the Davidson-Peterson spend. It�s a challenge.

Nelson asked about professors at Stout�s Hospitality Science whom we can talk to regarding some of these questions. Kufrin said the apparent difference is non-commercial business, one-third of our economic activity. At the beginning, The Zone tried to estimate the number and quantifying the value but didn�t come close to how it evolved. Most of the 1s and 2s aren�t members of the DCVB or of local business entities. They benefit from DCVB programs but don�t participate. Weddig felt you reach a saturation limit as to how many will get rented. Most have weekly rental only. Moneypenny related that some people come on a short fact-finding mission to plan a longer vacation the next year. LeClair felt one drawback is that many places don�t allow pets; that�s a drawback for home rental; she just directs those to the �pets allowed� list on DCVB�s site.

Consideration of Approving Reports and Payables plus Receipts to Date
Larson moved to approve reports and payables; Nelson seconded. All ayes.

Update on Bay Lake/Official Payments Database Changes for Password, Credit Card/e-Check Features
Lensert said the password module is ready to go; will coordinate that in the next week. Kufrin felt it�s taking too long time to implement. He will call Greg Swain at Bay Lake. Kirkland was told it was a simple source code addition, a click-thru to the Official Payments� site.

Report from Commissioners on Feedback from Local Boards on Recent Issues
Kufrin asked if most commissioners are appearing before their boards. Skare does on a monthly basis; most seem to be doing so. LeClair said any agenda item has to include the speaker�s own agenda, which makes it more complicated but still doable. Starr said that was part of his discussions with the mayor when asked to join, to increase reporting to the City Council. Kufrin talked to him at ECDC meeting about the At Large member we need. Moneypenny reiterated that if any municipality wants a DCVB member at a meeting, let him know

Consider a Motion to Sign a Contract with the LifeQuest Collection Agency
Kufrin explained that Mark Price of LifeQuest had met with the Commission and that it was understood that the Commission was the client; LifeQuest wanted a municipality to sponsor The Zone and sent paperwork for Sister Bay. However, Kufrin is not prepared to have Sister Bay be the client; it would give the village too much liability and is not necessary. Olsen felt it might lead to every municipality having to sign on, which would be ponderous Tice noted that the contract language includes mentions of ambulance service and other boilerplate language that didn�t fit our circumstances, and they�re including a third party in the contract when it needs to be only two. Kirkland had sent Price the ordinance language, proving that we have the legal authority from the municipalities, our FEIN number, etc. Weddig felt the fact that we�re independently insured might make a difference; maybe it�s a liability issue. Kufrin said if LifeQuest is unable to provide a contract of benefit to us, then it doesn�t make sense to do business with them. Nelson said last month�s Executive Committee recommended a contract, but that was before the contract arrived; we can�t sign it as it is. Tice felt the idea is right and we need a collection agency. If not LifeQuest, try to approach someone else. Kufrin asked Kirkland to research a few more companies and we�ll come back to the full Commission at the October meeting with a recommendation. Kufrin will call LifeQuest.

Skare and Goss left the meeting.

Consider Motion to Convene into Closed Session pursuant to Wisconsin State Statutes, Section 19.5(1)(a)(f) or (g) to Consider Enforcement Action against Certain Businesses Regarding the Room Tax Permitting, Late Payments and Reporting
Kufrin moved to go into closed session; Tice seconded. Vote by roll call: Ayes from Boston, Nelson, Johnson, D�Amico, Larson, Laughlin, Cyrus, Weddig, LeClair, Olsen, Tice, Kufrin, Starr, Holtz. Motion passed.

CLOSED SESSION

Consider a Motion to Reconvene into Open Session
Kufrin moved to return to open session; Tice seconded. Vote by roll call: Ayes from Boston, Nelson, Johnson, D�Amico, Larson, Laughlin, Cyrus, Weddig, LeClair, Olsen, Tice, Kufrin, Starr, Holtz. Motion passed.

Consider a Motion to Take Action, If Required
Larson moved to act on all 9 properties presented: Properties 1-2 and 9 will receive a strong letter, as discussed, from attorney Vande Castle with invoices/estimated invoices. With Property 8, Kirkland will send a Certified letter, giving two weeks for explanation; if none appears, that will also go to Vande Castle. Olsen seconded. All ayes.

There was discussion about Vande Castle�s contract and rate, which is $125/hour (less for travel/attending meetings). Kufrin and others discussed Vande Castle�s experience with taxing bodies and the fact that he has no conflict of interest with local businesses or municipalities. The original attorney, Nesbitt, left due to conflicts.

Tice asked that, after reviewing collection and how money is paid down when finally received, should we readjust rules re: how payments are allocated to past-due accounts. Lensert said if a payment comes in with no instructions, it goes into outstanding accounts, paying the oldest room tax first, and then fees/penalties. However, when a check is sent in with a specific report�as it is with the State or IRS�it must be applied to what the report states. We cannot apply at will.

Adjournment
Nelson moved to adjourn; Boston seconded. All ayes. The meeting adjourned at 11:15 a.m.

September Meeting
The September meeting will be moved up a week due to scheduling conflicts. The Executive Committee will meet at Kerber Rose, 10568 Country Walk Lane, Sister Bay, on September 9 at 8:30 a.m.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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