Door County Tourism Zone Commission : Meeting Minutes

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August 20, 2009 Door County Tourism Zone Commission Meeting

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OF AUGUST 20, 2009
Baileys Harbor Town Hall

ACTION ITEMS
Goss moved and Nelson seconded to approve the agenda. Motion passed unanimously.

Tice moved and Jacobson seconded to accept the minutes as amended. Motion passed unanimously.

Coulson moved and Nelson seconded that the TZC should ask municipal clerks to include a room tax blurb on property tax inserts. Motion passed unanimously.

Goss moved and Larson seconded to approve this month�s Reports and Payables. Motion passed unanimously.

Holtz moved to adjourn; Larson seconded. Motion passed unanimously

Committee Members Present by Roll Call: Robert Kufrin, Tom Benzshawel, Mary Boston, Bob Brown (alternate for Richard Briggs), Andy Coulson, Pauline Cyrus, Sandy D�Amico (arr. 9:30), Paul Flottman, Nancy Goss, Dave Holtz, Diane Jacobson, Jeff Larson, Little Bit LeClair, Bryan Nelson, Chuck Tice, Bill Weddig

Excused: Debra Jeanquart, Carol Stayton

Absent: George Delveaux, Mike Johnson, Amy McClelland, Sarah Sawyer, Dick Skare, Edson Stevens, Tom Tostrup, Nora Zacek

Also Present: Jack Moneypenny, Sally Everhardus, Mary Denis, and Jon Jarosh from Door County Visitor Bureau; Dianne Lensert, Kerber Rose & Assoc.; Kathy Kirkland, TZC Administrative Assistant

Audience: Frank Forkert (Liberty Grove); Dave Elliot, Chairperson, DCVB Board

Call to Order
Chair Bob Kufrin called the meeting to order at 9:10 a.m.

Approval of Agenda
Goss moved to approve the agenda, Nelson seconded. All ayes.

Approval of Minutes of July 16, 2009
Jacobson noted that her name is spelled �on� instead of �en.� Tice moved to accept the minutes as amended; Jacobson seconded. All ayes.

Welcome Member from New Member Community
Kufrin noted that the Village of Ephraim has appointed Paul Flottman, owner of Anderson Workbench, to replace Nedd Neddersen, who resigned due to his growing business commitments. Kufrin congratulated Flottman for volunteering. Neddersen was on Finance; anyone with an interest, send an e-mail to Kufrin. Would be ideal for someone with skills similar to Neddersen�s.

The September 17 meeting is on Washington Island. Today there are only 14 members, just a quorum. We�ll ensure a quorum of the Executive Committee on the Island so that business can be conducted. Last year�s meeting involved an 8 a.m. boat and meeting at 9 a.m. The Commission pays for the ferry and mileage. Stayton is finding a bigger venue and may add extras to the day. People can carpool. By the end of the month, everyone should let Kirkland know if you can attend.

Administrative Assistant Report
Kirkland reported that compliance is coming along, but there are still properties with fines and penalties due as well as those not responding to becoming permitted. There were 21 permits issued since the July meeting. She gave Commissioners and municipalities a list of the Permitted and Removed Properties as of August 7 and asked municipalities to sign off on the accuracy or submit changes. She noted that several out-of-state owners are saying they didn�t know of their room tax obligations; there was discussion about including a notice in November�s property tax bills, which has to be done by October 1. She offered a short paragraph that could be inserted. Nelson feels it�s a good idea, and the wording is fine. He suggested Kirkland send it to the town clerks for inclusion; it�s one method of due diligence on our part. Tice said Sevastopol inserts a page with officers and other contacts, and intends to put the Tourism Zone Commission on the list. If the paragraph has to be shortened, that would be fine if it retains the meaning. Kufrin said it�s a motivator because the more found properties, the more income for the municipalities. Coulson felt the tax bill is ideal; all property owners get it, so it�s hard for them to say they didn�t have the opportunity. �If you�re renting, you�re legally required to register and collect room tax and sales tax��that covers our responsibilities.

Nelson asked what groups are in the county that we could ask about rental properties; e.g., homeowners associations, etc. Tice said we should ask for assistance; the majority have newsletters and they can publish a notice every six months or so. Nobody wants to squeal on a neighbor; Nelson felt people could contact their local Commissioner or send a tip anonymously. Brown asked if we go to the State and see where tax coming from? Coulson said if they�re not paying room tax, they�re probably not paying State tax, either. Weddig felt realtors should stay on top of it, and when properties change hands, let us know. Kufrin added that municipal clerks get a special assessment or property status; we could ask clerks to make us aware of any notices. Coulson moved to ask clerks to include a room tax blurb on property tax inserts; Nelson seconded. All ayes.

Report by Door County Visitor Bureau on Marketing Efforts
Moneypenny appreciated Kufrin�s letter breaking down the economy of the county. Although there�s a $35,000 deficit this year to last, that can be made up in a blink. For the first five months of 2009, there has been $522,000 collected; the DCVB is scheduled conservatively to take in $450,000 to $479,000 in one month. He said Milwaukee�s tourism is down 18%, and the Dells is down 13% with winter as their biggest season. Anecdotally, not everyone�s doing great, but we�re cautiously optimistic. The DCVB member newsletter goes out twice a month; anyone who wants to be on that e-mailing list, let him know. Statistics indicate that Visitor Center traffic is up 39% over last year; 9,917 people came through in July, with many new visitors. Visitor Guide distribution: They added 5% distribution over 2008, and they hit the goal in July. The combination of calls and online requests was over 10,000 in July; total distribution is 40,000. July and August are strong months.

He spoke about the different types of innkeepers and what they�re doing or not doing for marketing. If they�re not using tools available through the DCVB and are marketing the same as 15 years ago, it�s challenging in this economy. DCVB Members can ask for marketing help. Moneypenny asked Holtz and Benzshawel if they know how Sturgeon Bay is doing since we don�t have historical data. Holtz said it�s probably flat or down some. He said his own property is up 4%, but Sturgeon Bay in general looks down 1%-3% through May, with June down citywide. Kufrin asked if Sturgeon Bay generated quarterly reports; Jarosh said the DCVB did a survey only on occupancy and on only about 10-12 properties but has no data about room tax dollars. Kufrin asked if historical numbers could be given to the TZC; Benzshawel felt he could get totals but not broken down by property.

Moneypenny went to a nationwide Convention and Visitor Bureau meeting at end of July. There are a lot of businesses going bankrupt. Many cities have tax collection grandfathered in, where there�s no set amount have to give a marketing entity, and they often opt to use room tax money for city use instead of marketing. SMERF�Social, Military, Educational, Religious, Fraternal�markets are still strong. The DCVB is trying to build motor coach/small meeting business for the shoulder seasons. About two months ago, Washington, DC, blacklisted cities around the country that receive federal funding (e.g., Vegas, Los Angeles) for certain group travel. If �resort� is part of a pitch, those receiving federal money are shy about it. The DCVB will continue to make contacts so when they�re ready, the groups will have information. They�re still sending direct mail to be positioned as a �resort destination.�

Moneypenny stated that for the first year and a half, they�ve been plugging holes with money from the last 10 years when there was not enough basic image marketing; now we have a good base. The DCVB is in the process of hiring an ad agency to work with them on Internet, print, radio � all communications companies �have interviewed the final three and should have an answer in a week. The DCVB won�t spend any more than last year, but the leverage in buying power from an ad company will be the same; it will be worth the 15% agency fee. Social marketing (Facebook, Twitter) is not going away, and we have to stay on top of it. Ad agencies integrate messages into overall campaigns.

He realizes the DCVB needs to present a budget and marketing plan in October to its own Executive Committee and to the TZC in November. Mentally, they�re thinking �flat� next year, but if TCZ Finance Committee presents different numbers, they can revise. Nelson said for Finance, it would be helpful to see the broad trends.

Denis said the DCVB has looked at all numbers and those that did not hit the mark. They tried to increase web activity; last year, visitors stayed online 4:45 minutes, and the DCVB set a goal of 5 minutes. Visitors are now staying on 6 minutes, with Calendar of Events, information on wineries, and lodging keeping them on longer. EBrains said there are 80,000 new people on the web. The DCVB will be doing another postcard campaign about fall packages. With three years� history of web numbers, we can project more accurately and adjust if necessary. Other indicators show good news: 39% up in July in Visitor Center traffic, visitor inquiries 10,000 in July from ad campaigns, and they�re at 97% of goal for Visitor Guide inquiries. Group sales numbers look good; they�re looking how aggressive to be with meeting planners. In September, they�ll do a mailing to all Wisconsin and Chicago-area meeting planners. She feels the niche markets still strong are wedding destinations (DCVB did a Wedding Planner Guide), family reunions, car clubs, and motorcycle meetings. Denis states the campaign and ads are on the website. From spring until now, there have been more than 15 million impressions in all the Midwest and ancillary states. Go to www.doorcountyvisitorbureau.org/campaign.htm.

Jarosh talked about Communications/PR. Geiger is on target with its goals. There are still two press trips, one in October and a December (a winter shopping tour). Media monitoring has come up, and the DCVB is trying to figure out why the numbers are down from goal. The AVE is not meeting goals. A different company last two years; end of last year, we switched to Cision for overall scope of services. It�s a challenge comparing apples to apples from a dollar value, because the companies use different methodologies and won�t give their proprietary formulas, so it�s difficult to equate why figures are valued differently. So this will be a benchmark year because that comparison. The two articles in Midwest Living brought $1.1 million AVE, so a big hit can change the landscape. AVE is not the only number tracked; they also track total hits (total mentions), and to date, mentions show they�re up 430% over last year. Tracking impressions is the total number of people indicating a hit. Impressions this year are nearly 850% higher than last year. How could this be? Again, the different indicators in methodology for calculating publicity value. YTD, we�re down 13% AVE to July 2008, but we�ll see big hits toward year end. Kufrin asked that he put a note on the report re: the two companies so people not here for the explanation will have a reference.

Moneypenny said last year Impressions Year End was 72.5 mil. This year, 343 mil so far. Again, the formula is different. The decision was to go forward with Cision. Kufrin noted that Cision does track photos while the other company didn�t. Weddig asked if anyone is tracking nationally about writers in general. Moneypenny feels the ad agency will be helpful because they work with all different clients. Once they commit to an ROI, they have to meet it. Setting ROI is easier than it used to be; the measurable results meet expectations more closely. Nelson appreciates the explanation from Jarosh. He asks about the back page: What�s the difference between Media Marketing and Media Monitoring? Jarosh says the top box (Marketing) is 100% Geiger. Media Monitoring is a separate vendor, Cision. Weddig asked about tracking journalists through Geiger; Jarosh said that Geiger tracks all the articles. Because of the volume, Jarosh doesn�t submit formal reports; too massive. Are there more articles online versus print? Jarosh said anything in print is most likely also online, so it�s more than one opportunity, and copy can even be expanded online because there�s no space constraint.

Coulson asked about media monitoring: We got coverage from the car stuck on the bridge in Sturgeon Bay. If it�s hard news and perhaps not even complimentary but refers to Door County as being a cherry-growing tourist area, does that count? Jarosh said it does; someone has to make a judgment about what the story means to us as a client. Media monitoring has picked up only one story to date on the bridge incident, but Jarosh has final control; he looks through everything to review whether it qualifies. The tracking is all positive news outside of Door County, and the amount of space also determines publicity value. Coulson said the cherry crop was ruined last year but every story made a big deal about Door County as a vacation spot. Jarosh felt that�s true; the lack of cherries doesn�t take away from visitors� experience. This year, the crop is great, so the AP article got picked up and printed all over the country.

Discussion on Current Comparable Occupancy 2009
Lensert said the numbers and payments for January through May have been rerun, so the numbers are updated comparative to 2008. June is still being collected and will be indicated better at September�s meeting. There are still units unreported for June; they�re using it as a guide from averages. The bottom section removes new municipalities for better comparison. This will be re-run twice year. Kufrin reiterated that Commissioners should review the Permit Holders and Removed Lists with their municipalities.

Compliance Committee
Tice said Kirkland went through the accounts we have pending, Rockwell is squared away. We have not heard anything further on Maple Grove, which is falling further behind. Hanson has filed all reports but none of fines/penalties are paid; he�s indebted about $10,000, and Tice authorized Vande Castle to proceed to court with that. The Compliance Committee should have a draft to present to the Commission for finalization/ suggestions in September. Vande Castle will fine-tune at that point and the Committee will come back for final approval in November. They�re working on the letters, how many to send out. Now that all of Door County is in The Zone, we don�t have to worry about one group coming in at one time, another at a later date. All will be liable for whatever back taxes are due, depending on when municipality joined. They�re still working on ways of locating people; we haven�t used the private investigator but are discussing when to turn over a case to him. Nelson asked if one goal is to produce a uniform ordinance; Vande Castle talked about inconsistencies and the need for each municipality to pass enforcement ordinances. Tice said each community had the basic draft ordinance but attorneys or officers changed a few words here and there, not realizing the consequences. One municipality has a 10% penalty and another has a 5% penalty; it has to be equal. The Compliance Committee did not delve into changing ordinance at this point but will recommend it.

Ad Hoc Committee to Develop Performance Evaluation Process for DCVB
Kufrin said there have been two meetings in July and another scheduled for next week. So far, the members have talked about metrics and criteria. After the next meeting, the Committee will finalize criteria and ask Dave Eliot to meet with the Visitor Bureau for coordination on criteria/goals and what the DCVB Exec Committee is looking for. Then it can be presented to the TZC as a whole. This all may come up at the September meeting with Compliance, so everyone needs to go on the Island if at all possible.

Consideration of Approving Reports and Payables
Lensert said the DCVB�s final payment of $25,000 is included in this check. Goss moved to approve reports and payables, and Larson seconded. All ayes.

Comments from Audience
Frank Forkert (Liberty Grove) came in 1970 to Sister Bay and starting coming every month. He thanks all of the staff of each community for what they do. For 12 to 15 years, he had an advertising budget of $55,000; nearly 40 years later, when he left, it was up to $125,000, and that was 25 years ago. He�s pleased at all being done in a positive nature and that the county is doing so well last couple of years. Ann Miller in Liberty Grove has done a wonderful job of getting the Scenic Byways program together. All communities should get involved and get in next year�s fiscal budget for their advertising. It will bring in 80% funding for scenic outlooks, information centers, historical projects; they�ll be establishing a board to represent the communities with the DOT, and anyone interested can e-mail him at fforkert@gmail.com.

Adjournment
Next month: September 17, Washington Island. Holtz moved to adjourn; Larson seconded. All ayes.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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