Door County Tourism Zone Commission : Meeting Minutes

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August 21, 2008 Door County Tourism Zone Commission Meeting

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OF THE AUGUST 21, 2008 MEETING
Baileys Harbor Town Hall

ACTION ITEMS:
Tice moved and Boston seconded to approve the July 17, 2008 minutes as submitted. Motion carried unanimously.

Coulson moved and Goss seconded to institute an Executive Committee consisting of the Commission�s four officers plus a member At-Large, chosen by the Chair, with the power at this point limited to approving bill payments. Motion carried unanimously.

Tice moved and Coulson seconded to contract with eDoorCounty for website building, domain name(s), and maintenance. Motion carried unanimously.

Kufrin moved and Neddersen seconded that, effective January 1, 2009, any Door County Visitor Bureau building, facility, program, service, website, staff member, or other activity, whether or not it is administrative or marketing based, that is funded in whole or in part by Room Tax funds not include any references or provide services to any community and its businesses not participating in the Tourism Zone. Motion passed 10-3.

Coulson moved and Tice seconded to approve payables. Motion passed unanimously.

Commissioners Present by Roll Call: Mary Boston, Andy Coulson, Nancy Goss, Diane Jacobson, Bob Kufrin, Jeff Larson, LittleBit LeClair, Craig Neddersen, Richard Skare, Carol Stayton, Chuck Tice, Bill Weddig, and Nora Zacek.

Excused: Bryan Nelson.

Also Present: Dianne Lensert, Kerber Rose; Jack Moneypenny, Jon Jarosh, Sally Everhardus, and Bob Kaczmarowski, Door County Visitor Bureau; Kathy Kirkland, TZC Administrative Assistant; Bill Casey, Liberty Grove Chairman; Kristen Kubisiak, Door County Advocate.

Call to Order: Chairperson Kufrin called the meeting to order at 9:05 a.m. at Baileys Harbor Town Hall. He asked for changes in agenda; there were none. Kufrin noted there would be no closed session.
Tice moved and Boston seconded to approve the July 17, 2008 minutes as submitted. Motion carried unanimously. Kirkland will send the approved minutes to the municipalities.

Door County Visitor Bureau Report (DCVB)
Stayton stated that she liked the Harley Davidson report by the Visitor Bureau. The maps and the connection with Harley were done well. Could be in the visitor centers? Jarosh said it�s online at www.visitmilwaukee.org under Official Bikers Guide. Jarosh said there will be a separate motorcycle interest page. He noted that website visits are up 44% YTD.
eBrains and Geiger: Kufrin asked about eBrains� analysis, if it correlates with Google or other analytics to show that numbers are accurate. Jarosh said the DCVB own software tracks it since May 2006. Kufrin asked about Dashboard stats. Is that Door County Computer? Jarosh said that comes from eBrains as does Inside Tip.

Coulson asked about Geiger and in-kind contributions. The equivalent in articles that, if purchased, would�ve cost $718,000+, which represents a 145% return on investment; does that mean we paid $300-400,000? Jarosh said yes. The next paragraph said that doesn�t include the cost that members put into it. Does that mean had the DCVB spent the money plus individual municipalities, we would�ve gotten 46 cents back on the dollar? Jarosh said it�s 46 cents above the original $1. In paragraph 4, ROI is calculated through July 2008.

Neddersen asked about the statistics flattening out over the last three years at the DCVB. Any thoughts? Are we better informed now? Jarosh said Sturgeon Bay didn�t have the smaller information center open for a couple years but now it is. It could be that or a combination of people being better informed, using the Internet, and so on. Moneypenny said, anecdotally, that the Sturgeon Bay visitors who come into the center are looking for information. Those who come prepared drive past the center, so it�s hard to say.

Kufrin asked about the ad equivalency on Geiger coverage. Kufrin quoted that the figures are �separate from Geiger�not all get picked up by BurrellesLuce.� Why would that be? Where would the articles be appearing that our monitoring people aren�t catching them? Jarosh said it comes down to BurrellesLuce not tracking every publication out there. Geiger provides DCVB with all articles; photographs weren�t included in number. BurrellesLuce doesn�t include photographs in calculating ad equivalency; a full-page photo, in their way of working, would count as nothing when it really does. Jarosh said any media monitoring service has a disclaimer that they try as much as possible but can�t find everything. Originally, Jarosh narrowed his search to Bacon�s and BurrellesLuce. Each said they find more than the other, but they went with BurrellesLuce. Stayton asked how they decide what BurrellesLuce picks up? Jarosh will look into how they pick the publications. The clips cover a wide variety from newsletters to large publications.

Coulson if someone takes out full-page ad with photos, do they deduct the photos so it�s 2/3 actual value? It doesn�t make sense to devalue photos. Jarosh concurred. Moneypenny said that BurrellesLuce needs to explain if they can count photos; so far, BurrellesLuce just says, �We�ll look into it.� Moving forward, we might use a clipping service that�s more inclusive and accountable. Jarosh has recontacted Bacon to see their response but hasn�t heard back.

Kufrin asked about monthly/quarterly hits; is that articles? Jarosh says article, blog hits, TV news. Mostly it�s Wisconsin stations but also all are included. Kufrin asked about joint TV ads on Fox? Jarosh said Fox 11 ads aren�t counted; they count only news stories. He�ll have to look at other publications; he presumes they�re articles, except possibly Midwest Living insert. Kufrin asked if they count what DCVB does in-house; does it have the same value as a travel writer or news? Jarosh said nothing done by DCVB is included; in fact, they don�t count anything from Door County papers (except the first six months).

Jarosh explained that negative publicity is not counted. Each item is tagged green, yellow, or red: a positive, neutral, or negative �tone.� For example, the Pioneer Store settlement in Ellison Bay made the Milwaukee Journal but it wasn�t included as a hit. Stayton asked if the stories about cherries on Ch. 11 were included; Jarosh said yes because the reports weren�t negative, said cherry products were available, etc.
Kufrin had a question about Mary Denis�s information in the DCVB report. What is �Joined Circle Wisconsin, MPI and WSAE�? Moneypenny said it�s the state motor coach initiative; Denis represents us there as a member. She can plan fam tours through that organization. MTI is the corporate Meeting Planner Int�l for the state. WSAE is an association of executive association meeting planners. Denis is establishing relationships and networking for meeting planners to come to Door County. Moneypenny passed out print materials on motor coach travel and �off the beaten path.� There will be an additional piece as well to support tourism efforts. The surveys on participation have taken a long time but are in now.
Geiger & eBrains Contracts: Jarosh has a quarterly report from Geiger on new articles. Kufrin stated that since Geiger and eBrains represent a large percentage of the budget, can we get their contracts upfront so we can familiarize ourselves with our expectations before the two entities give their reports? Can the DCVB point out not only what�s been delivered but also the commitments made upfront? Jarosh said eBrains arrived at their numbers through two conversion. Under Guaranteed Results, it talks about return on investments of 50 to 1. The first study is underway right now; 40,000 PI leads last fall. The Texas A&M research team suggests a minimum of 6 months to act on what they�ve gotten back. Based on fall 2007, the study is underway now. Renee should have the results by the end of September. The second conversion study is going to be approximately 6 months after the latest PI, which ended last month. We�ll get results in March/April 2009. One conversion study was based on a program mentioned in their original contract. If we try to extrapolate, there�s a gross conversion of 34% of those who responded who then came to Door County as a result of eBrains, so that would get us in the vicinity of $21.5 million. EBrains also does search engine marketing and other components. Renee doesn�t have a problem expecting $22.7 million; the return on investment is realistic. We�ll have a better idea at the end of September. Moneypenny said he has asked eBrains to be in Door County on October 16 and doing a formal presentation. Is that appropriate or do we want a special meeting? Kufrin felt the regular meeting date would be fine; Moneypenny will confirm.

Kufrin said that on pg 3 of their contract, �leads� talks about qualified leads and an opportunity to dispute a �qualified lead.� What does that mean? Jarosh said when they�re harvesting leads, the validation is to make sure it�s a real person and not a spider or automated system. Based on the contract, he�s confident that they are qualified leads. Stayton said that, as per pg 9, we pay only for actual leads.

Jarosh talked about the Geiger contract, which called for four press tours. They did seven with no additional fee because the first tour had 30 travel writers, which was too many and unrealistic. Geiger added tours to reach the 120 number originally requested. On pg 10, the ad value equivalency in the monthly report and number of travel writers is part of the monthly report. Moneypenny said the 5-month extension has a clause where they guarantee 18-23 travel writers per three trips in the next 5 months, whereas before there were no numbers. We need to tighten it up and add more expectations. Kufrin said while they are good measures to look at, you�re just counting stories but not necessarily accomplishing a goal. In addition, the advertising equivalent is a good goal, but what should it be? Should there be an articulated standard that they have to guarantee something beyond having people come here? Stayton said Geiger (or similar company) is just one tool we need in the arsenal. The quality of articles concerns her. In June, an article was about �what is a B&B?� and one Door County name was mentioned, but it wasn�t about their business specifically. She noted blogging and that one included a vague itinerary, nothing solid or positive about the county. It mentioned a cherry recipe but no one bothered to get the recipe to print it. In the blogging world, it�s 20- to 30-year-olds. Should they be in there? It�s one component, but the quality of writing is important. She felt we have to tighten it up.

Coulson asked about Geiger and eBrains. What is the purpose of the marketing program except to increase occupancy? With the economy, gas prices, etc., we can try to measure and evaluate both companies, but it may not be a fair comparison. If we could measure against occupancy in relationship to statewide tourism or areas similar to ours, that would be a great way to do it. If we�re fighting a tide but the rest of the state is worse, we�re benefitting from Geiger and eBrains. If it�s about the same, what�s the value of the program? Jarosh said he can get a Geiger rep to do a follow-up. Stayton said we understand the contract, but whether or not they�re hitting the mark is the question; a �Geiger-like� company in a long-term plan is important, but should we be doing more events like Harley that will bring recognition and partnerships with others?

Moneypenny understands the need for measurements. Geiger giving an in-person report is an opportunity. Door County used to be 3rd and has slipped in popularity to 9th or 10th. We have to go back and rebuild the county in people�s minds and hit them many times. It�s a numbers game to convert them to visitors. We can�t make it in one year; it�s not realistic. A travel site in Washington, D.C. talks about travel miles; in our North Central region, last year it was 59.1 billion travel miles; this year it�s 57.1 billion, so 2 billion less. With the Consumer Price Index up 6.2%, other increases in double digits, it�s hard to compare June to June. If we�re merely flat, and Gardner and Washington Island weren�t in those numbers last year, where would we be if we haven�t invested? We would�ve been worse off.

Kufrin reiterated that if Geiger makes a report, they should have something quantifiable for us to. The Marketing Plan from 2007 said we won�t know until 2008; now, we should be able to determine if it�s good enough. Moneypenny says we now have a baseline; what can we expect next year and in three years? Now we can put numbers to the expectations. Kufrin said Geiger is returning a little more than the value of what we�re spending. eBrains is bringing more to the table. Moneypenny feels they�re different types of programs; one is here and now, the other pays off in the future. Comparing the two programs isn�t fair. Historically, writers do continue to write articles. Larson said ROI is biggest measurement you have; right now, the percentage is good. Kufrin, at a minimum, would like to see taking out the comped value. Neddersen noted a benchmark is in the Media Markets listing 120-130 specific target publications. They should make a list of those they actually got.
Kufrin stated that the DCVB says that for fam trips, they�re �not required to work with regional tourism industry member unwilling to provide goods and services on a complimentary basis.� Jarosh said unless the room/meals are comped, they�re not required to work with them. On the press tour recently on Washington Island, Moneypenny said they were three rooms and three meal periods short. To solve it, the DCVB went back to businesses who had comped in the past and offered to buy the services for the press. Any other questions for Jarosh? None.

Discussion of Current Comparable Occupancy Numbers � 2008
Kufrin said the first time we saw the numbers was a July finance meeting. Lensert did them again and generated a report comparing May and June 2007 to those months in 2008. May was up, June was down. What do these trends mean? Have they reversed themselves? Lensert said the cutoff timing is scheduled for the meeting time. Lensert said the cutoff period makes a big difference. June 2007 includes everybody who filed late because in December, the numbers updated and reran into those June figures. However, June 2008 is reported through the cutoff period of 8/5. Rooms available last year were 101,000 and only 96,000 this year, so there are still non-reporters and late reporters. At the time of the reports, things look flat; however, as of this morning, reports continue to come in for June 2008, but it�s already up to $301,000 in room tax versus $284,000, so as the numbers come in, it�s not as flat as it looks. Lensert said it�s a 2.9% increase at this point. It�s not apples to apples from last year. Coulson noted that the average room rate in June is $10 higher than last year; you�d assume they would be flat or lower. It�s encouraging, especially a 10% increase.

Kufrin asked when we can have updated numbers. Lensert said it depends on how often the Commission wants reports. If we want the reports run every month, it�s possible. Lensert said this morning�s figures are unofficial; the reports have to be balanced. Kufrin said the report shows a decline, but as of this morning, it�s a 2.9% increase. Lensert said May 2008 have not been rerun; the lates are not in the figures. The summary listing the months includes late pays but not for June yet (cutoff was before that); there have been $16,968 in late collections through May reporting. Kufrin feels it should be consistent. Lensert said cutoff has been the 5th or 6th of the month; looking at June, there were properties coming in after that date with significant dollars�and different again tomorrow. Coulson asked if the previous year�s figures can have the same cutoff date; Lensert says that�s not possible because of updates. If we have June�s figures as of August 5 and have June 2009�s on the same day, then we�d be comparing apples to apples. If we�re always compared unadjusted from adjusted, it�s not telling us anything.

Larson asked if the cutoff date could be printed on the report and if we could list 3 or 4 months instead of just 2. Kufrin said putting dates on the reports and whether the figures are adjusted or unadjusted would help. Lensert said none would have been adjusted for lates; while late reports come in the week after cutoff, additional reports take time�it takes two days to reconcile. Weddig said he�d rather get a report at the meeting that was more accurate than done a few weeks prior. It could be done later if she can bring reports to the meeting rather than send out early. Weddig liked the idea of bringing one report. Tice asked if we should be looking at May figures instead of June�s? Lensert said that�s a decision to be made. Kufrin said part of the report�s value is to have reasonably contemporaneous numbers; if we look at numbers 3 to 4 months old, it�s going to lose its value.

Stayton asked if we could work through next couple months and see figures in October to decide how to approach it. How many people are late? Lensert stated �a lot.� Stayton said Moneypenny can figure out a delay in numbers as well. Moneypenny and all felt more comfortable.

Kufrin told Lensert to continue to run on the same cutoff date, and if there�s a substantive change, come with a handout at the meeting. Then every quarter or periodically, revise. Weddig said his board would be discouraged by this month�s report but it�s good to know it�s already changed for the better. All agree the current reports do have value.

Skare asked about units available; is that units rented? No, it�s available units reported. Lensert noted that if there are missing reports, unless someone dropped rooms, there are a couple thousand rooms missing. Skare asked how could it fluctuate by 2,000? Lensert said they�re unreported or late. Stayton asked if municipalities have these figures. Kufrin said they�re reported on website and Kirkland said each municipality gets its own listing of businesses and totals (not per business, of course). Neddersen said in June, totals at the bottom, about 5,000 available rooms missing from last year; if we�re short 5,000, it�s short 5%, so statistically it�s 95% of rooms, so occupancy and rate should be pretty viable and not change dramatically when those 5,000 do report. Lensert said as of this morning 44.14% and still 122 the average. So it went down a slight amount. Coulson said May was a positive month but it�s confusing because number of units reporting went up despite the cutoff date, and money raised went up despite the cutoff date, so there�s a difference between May and June. Weddig said Washington Island wasn�t in May 2007. Kufrin said it�ll take awhile before year-to-year makes sense.

Weddig said his board likes to see the comparative months from last year. He�d hate to report that it was down if we�re actually not. What is the correct number? Lensert said as of this morning, it says $301,000, and there�s still a fair amount of reports to enter.

Consideration of Approving an Executive Committee
Kufrin noted that under the new Intergovernmental Agreement and Bylaws, the Commission has the ability to create an Executive Committee. The executive committee can be endowed with such authority as the Commission grants. For example, if we were unable to achieve a quorum and had bills to pay Kufrin like to see such a committee able to approve bills. A full quorum now would be 9; if we don�t have that, it could create operational problems. Tice mentioned ongoing legal matters as well. Kufrin said the powers have to be authorized by the Commission; specific powers have to be assigned. The composition needs to include one At-Large member. Weddig asked how many members have to be on the Executive Committee; is it a quorum of those people? Kufrin said it�s 2/3 vote of Commissioners to create the committee, but the size of the Executive Committee is not stated�only that it has to include an At-Large member. If the executive committee consisted of 5, a quorum would be 3. The creation of the committee is done by motion; powers granted are part of that motion. Coulson asked if the powers can change? Kufrin said yes. Coulson moved to establish a five-member Executive Committee, appointed by the Chair. Kufrin asked if it should it be the four officers plus 1 At-Large? Coulson felt the officers are just as likely to be absent as others, but Coulson amended his motion to state that the Executive Committee consist of the four officers plus a member At-Large, and the powers of that Executive Committee should be to pay the bills of the organization. The Executive Committee acts if there is no quorum on the date of a regular meeting. Goss seconded. Neddersen felt the At-Large person should be appointed by the Chair. Further discussion? None. Anyone have a concern about it being a good idea? None. Motion carried unanimously.

Consideration of Approving a Contract for Website Services for the TZC
Kirkland reported on the three proposals in the Commission�s packet and made part of these minutes: Boettcher Communications, Build My Own Site, and eDoorCounty. LeClair recused herself due to conflict. Larson stated that Landmark and the YMCA uses Build My Own Site with no issues. Neddersen from a budget standpoint, Commission budgeted $18,000 for the year; we have a windfall coming. Kufrin asked about interaction; which site works better to online payments? Kirkland explained that Swain would give us the website domain name and the reporting could be a click-through for permit holders to log in. All felt that there should be click-thrus in both directions: to log in and to the TZC Home Page. Goss stated that Build My Own Site is user friendly and Kirkland noted they have a beginning rate that includes 50 pages; Goss said PDFs aren�t counted. It was discussed that since Kirkland would be the main person dealing with it, it could be her choice. Kufrin said he uses PDFs because when printed, it�s as it looks as it does originally; you have to use Word 2003 and not 2007 because not everyone�s upgraded. Kirkland noted that if you post both Word and PDF, eDoorCounty�s search engine can find keywords. Tice moved and Coulson seconded to contract with eDoorCounty for website building, domain name(s), and maintenance. Motion passed unanimously with LeClair abstaining.

Recommendation for DCVB 2009 Programs and Services to Non-Zone Communities
It was noted that three communities have joined since the initial group, and we continue to reach out to additional communities including Sturgeon Bay, which represents an important part of Door County�s economy. Recently, Sturgeon Bay decided not to consider joining for 12 months; Moneypenny noted that at last night�s meeting, Sturgeon Bay voted to raise its room tax to 5.5% and stated again that they would not reconsider for 12 months. Kufrin noted that our attorney has been giving us advice all along about how money has been spent; Kufrin sent an e-mail a few days ago to Moneypenny and TZC members to state that it�s is not legal by state statute for TZC communities to benefit non-Zone communities. The statute is specific that Room Tax is to be spent solely on Zone business and municipalities to increase overnight stays. The DCVB needs to be told that as of January 1, 2009, start of our mutual fiscal year, TZC dollars cannot be comingled with businesses or communities not in the Zone. The timing provides 4 months for Sturgeon Bay to make a decision about joining, and setting a time-certain would give enough time in advance of budget prep make needed changes. The statutes also say the entity needs to be located within the Zone; this was not addressed initially because we felt Sturgeon Bay would be likely to join. This is not going over well. Sturgeon Bay board member Starr is upset by the action but state law is specific, and we must use the literal interpretation of the statute. The Bylaws are clear that a municipality has to join under the same terms and conditions as others. Jim Sarkes (then at-large Commission member) and Bryan Nelson appeared before Sturgeon Bay Council, and Moneypenny has talked with them. Kufrin�s recommends that next year has to mark the separation between Room Tax dollars being used to benefit of non-Zone businesses or municipalities.

Moneypenny stated that the DCVB supports the TZC in partnership and believed that 16 months is ample opportunity for Sturgeon Bay. He felt January 1 is a challenge because of the Bureau�s current membership drive, and it makes no sense to bring in 150 members they can no longer represent after January 1. If that�s the case, he�ll have to pull the plug on Monday. Ads for the Visitor Guide would have to be refunded; there�s lead time for publication. Financial ramifications of losing the membership are huge, but the DCVB is prepared to deal with it. He cannot move offices by January 1. Neddersen noted that the physical address is not the legal address; the DCVB just has to have the address of record be in the Zone. Moneypenny said his biggest concern was the offices but surmised he could set up in Sevastopol, spent a certain amount of time there; the PO Box mailing address wouldn�t change because it�s a Sturgeon Bay address from Sevastopol. Calls could be forwarded if he were in a different office. Kufrin said the final determination of office location/address would be run through the lawyer. Larson asked if this is a legal decision or one to put pressure on Sturgeon Bay? Kufrin said the law is specific: The entity has to be located in the Zone, but tourist information centers don�t have to be in the Zone. There has to be some type of legal presence in the Zone to continue a legal contract with the DCVB.

What�s the definition of �legal presence�? Moneypenny asked if there�s a presence he has to maintain: 51% of his time in a certain office? Kufrin said he reviewed it several times with Vande Castle, and nothing said there was nothing having to be in a physical building.

Moneypenny asked about the levels of membership; there are people in the Zone, such as Sevastopol, but they have Sturgeon Bay mailing addresses; therefore, there will still be people on the website showing up with a Sturgeon Bay address. Also there are people who do business in the Zone but the corporate office is elsewhere. We need a clear direction on what constitutes a member in the Zone. He needs to have an answer for questions. Kufrin didn�t take into account the membership drive; he had no reason to know. Coulson said it creates a situation if you join the DCVB; however, if this letter�s intent is not to protect from the law but also to try to let Sturgeon Bay know, �If you want the benefits, you�ve got to be part of this.� This will apply pressure. If we pull the plug Monday and we�re not offering memberships and pulling them from the book, by December you may be scrambling. If we take this tack, we�ll have a timing problem unless we pick a time later so organizations can either fall into line or not and have more time before we do this. Moneypenny said Sturgeon Bay�s City Council meeting the other night had Room Tax on the agenda; raised room tax from 4% to 5.5% with all of 70% going to Sturgeon Bay Visitors Center and everything from $100,000 and up. It was clearly stated that we�re doing this to position to join the Zone, and when a councilman said he was contradicting the council, the guy backed down and said it doesn�t have to join the Zone for at least a year. There�s a strength of will. Moneypenny felt they�re not going to do it until members rise up and say, �This is what our livelihoods depend on.� Kufrin said Sarkis and Starr called him, �Why are you proposing this? It�ll cause problems. Why don�t you go and speak up?� He told them he�d never go to another�s board meeting unless specifically invited. Skare said he�s been to a number of meetings and made a good pitch at one of their meetings and was ignored. He�s concerned that the 150 businesses that are members get the picture. He felt with this proposal means we no longer consider those people in Sturgeon Bay. The DCVB is our agent, but can we tell them who they can represent otherwise? Kufrin says �no� that it�s just that money that can�t be mixed. Skare asked who�s willing to keep track of all that? If we go ahead and say it�s all or nothing, if they say �no,� are we prepared to have a continued rift with them? He�s not sure he�s willing to take that stance.

Neddersen said we can soften the approach with a motion that requests that the DCVB create a strategy to commit to compliance over time. But we as a Commission have to be in compliance with State statute; we�re drawing a line in the sand but not attacking Sturgeon Bay.

Kufrin said we don�t want to concern ourselves with DCVB membership. Moneypenny�s area and member benefits should be decided by the DCVB. Kufrin was thinking about what Moneypenny said about non-Zone businesses and the corporate limits of Sturgeon Bay; when someone looks for that business, if that physical business is inside the city or town limits of Sturgeon Bay, then it�s considered Sturgeon Bay no matter where the ownership is. How the TZC marketing dollars can be removed from Sturgeon Bay business is the challenge for Jack. We�re now paying 100% for the value of the website, but there are many references to Sturgeon Bay businesses; that�s an easy one to figure out. If we�re paying all of it, they shouldn�t enjoy the benefits of our preeminent marketing tool. Kufrin was hoping that drawing the line would create urgency. The Commission has never gone on record as to the implications of the status quo; but we�ve tried, done all these things, and here are the implications and a deadline after which it will be different. If the room tax dollars are paying for something in whole or part, it cannot benefit someone not in the Zone. Moneypenny said the Commission has never asked the DCVB to give up members; however, the only benefits they get are being in the Visitors Guide and on the website. If these two vehicles go away, why would they need membership? He�d rather not have people asking, �What can I have?� The answer is �nothing.� It�s impractical for the DCVB to pretend we can represent people. He�d rather say that as of December 31, he may have to refund money. The Commission is following the statute, and the DCVB will stand by the Commission because the law hasn�t been strictly enforced for the past 16 months. We�re merely enforcing a statute. If we want December 31 to be the date, he�ll give full notice that it may only be valid to December 31. So far, 67 members have bought advertising, about $150-170,000 that might go away. He just needs direction.

Kufrin felt that January 1, 2009, is a fiscal year date, intended to give everyone an opportunity to have cooler heads prevail with a due date than a general ennui and we never give a date certain. The hazard is that if a member municipality or permitted business raises an objection, we�d be hard pressed to say that after 16 months, we still haven�t gotten in compliance. Stayton reminded that it�s Sturgeon Bay that�s drawing the line; the Commission has been flexible. Sturgeon Bay is making the decision. Stayton said municipalities and business owners have complained; have they made it formal, in print? No, but they are unhappy that services are going to Sturgeon Bay. Moneypenny said there are seven other communities we�re approaching even though Sturgeon Bay is the largest.

Kufrin said that circling a date to ensure compliance needs to be done by vote. Weddig felt the hang-up in Sturgeon Bay is the loss of festival money; has anyone challenged the Sturgeon Bay Visitors Bureau whether they put heads in beds? Are they following State statutes in terms of tax dollars? Goss said our responsibility is to be in compliance ourselves, not to challenge them. Stayton said Sturgeon Bay people were unhappy with the way funds were spent; there are internal issues, and we don�t need to get involved. Zacek asked if there�s a way to allow people to be DCVB members but not totally cancel their membership? Can they really accomplish anything in a couple months? Kufrin said the room tax locally was done quickly. Kufrin said Sturgeon Bay could meet tomorrow night. Stayton and Goss reiterate that it�s Sturgeon Bay�s issue; should the TZC be noncompliant another year?

Moneypenny has another six weeks to decide what the book will look like. Skare was concerned about timing but the budget cycle is starting, it�s not a bad time to do something definitive. The townships not involved can take a look at it as well as Sturgeon Bay. Kufrin said September/October is budget time, and you set the levies around November 1, so there�s 2� months for municipalities to make decisions. Moneypenny said that�s the only fly in the ointment: members that have been supported for 25 or 30 years.

Larson would be more comfortable giving another year and looking at July 1 or August 1 next year. Kufrin was opposed to extending beyond December 31. Going out further, there�s no urgency. It just drags it on. Moneypenny wanted to give a deadline of December 31. If, for instance, the second week of November, Sturgeon Bay comes before the Commission and gives a report of something positive they�re doing, perhaps we could extend to February 28 or adjust the date�if there�s just cause for an extension. Kufrin felt we would certainly consider that; those dates are established by the Commission. He didn�t want to rely on State legislation changes next summer and we stay out of compliance. Kufrin and others expected people to show up to complain about the memo; no one did. Tice explained that Sturgeon Bay�s idea was to raise their room tax, and their next step is approach the legislature and get the statute changed so a municipality within the Zone can charge a different rate of tax. His observation is that it may help if the Commission would raise the tax to 7% at where Sturgeon Bay is looking at going. The 70% of money at 7% gives them the money they�ve been used to. Coulson said the room tax in the rest of the Zone would go to 7%. Most people do not seem to support that. Tice said we might have more problems if the state changes and each municipality can charge what they want. Kufrin said our role is to comply with whatever the statute is; if they change, we have to comply with it.
Coulson asked why can�t Sturgeon Bay join, charge 5.5% and institute its own tax (a �tourism tax� or �surcharge� whatever they want) for 1.5% to solve its own problems, but the room tax would be 5.5%, with 70% sent to the DCVB. If that solves their problem, they could do it, but we don�t raise our taxes to solve it. Kufrin said Sturgeon Bay also can have a business improvement district tax, specific to a geographic boundary and tax the businesses in that zone for festival purposes. We�re trying to second-guess what Sturgeon Bay would do.

Tice said the room tax is on lodging, and the restaurants, gift shops do benefit from it. Kufrin asked for an end to discussion. He felt there has been adequate time for Sturgeon Bay to understand the concept, and many have made presentations to encourage them. It�s appropriate and timely to give a date certain and things will change and the DCVB will not be providing certain services to non-Zone members. It needs to be sooner than later. December 31 gives normal government budgeting time to make decisions. Kufrin moved that �my recommendation is that, effective January 1, 2009, that any Door County Visitor Bureau building, facility, program, service, website, staff member, or other activity whether or not it is administrative or marketing based that is funded in whole or in part by Room Tax funds not include any references or provide services to any community and its businesses not participating in the Tourism Zone.� Neddersen seconded. He asked if those actions occur, they benefit communities and businesses not within the Zone. Kufrin said during the four-month period of time is Jack�s challenge on how to accomplish the motion; it doesn�t mean the Commission can�t change the date. Discussion? Moneypenny asked if we�re all in agreement on Kufrin�s reference regarding what a member outside the Zone constitutes. He mentioned Mitch Larson, On Deck, who has businesses all over the county but also in Sturgeon Bay. We can support his businesses within the Zone but that particular store cannot be mentioned. Kufrin called the question: 10 ayes and 3 nays. Motion passed.

Approving Reports and Payables plus Receipts to Date: Coulson moved and Tice seconded to approve payables. Questions? Motion passed unanimously.

Kufrin noted that the next meeting is on Washington Island on September 18; Kirkland will coordinate travel options with Stayton and poll members. Kufrin will be out of town; Tice will chair.

Jacobson moved to adjourn, seconded by Stayton. Motion passed unanimously. Kufrin adjourned the meeting at 11:57 a.m.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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