Door County Tourism Zone Commission : Meeting Minutes

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December 17, 2009 Door County Tourism Zone Commission Meeting - Minutes

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OF DECEMBER 17, 2009
Liberty Grove Town Hall

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

Tice moved and Nelson seconded to accept the November 12 Finance Committee minutes as amended. Motion passed unanimously.

Tice moved and Nelson seconded to approve the November 19 TZC Meeting minutes as amended. Motion passed unanimously.

Tice moved and Nelson seconded to accept the November 23 Finance Committee minutes as amended. Motion passed unanimously.

Nelson moved and LeClair seconded to accept the minutes December 7 Finance Committee minutes as amended. Motion passed unanimously.

Larson moved and Cyrus seconded to accept the Kerber Rose Reports and pay Payables as submitted. Motion passed unanimously.

Tice moved and Nelson seconded to develop a Resolution to change the Bylaws to adjust the date of the Annual Meeting to a feasible time. Motion passed unanimously.

Goss moved and Larson seconded to have Bay Lake Systems configure software to add late fee calculations and ability to for permit holders to change password. Motion passed unanimously.

Nelson moved and Goss seconded that, effective December 17, 2009, the Tourism Zone Commission begin retaining 100% of late fees and penalties. Motion passed unanimously.

Larson moved and Weddig seconded to accept the 2010 Tourism Zone Commission Budget as presented. Motion passed unanimously.

Goss moved and Larson seconded to approve renewal of our insurance with the League of Municipalities based on the League�s proposal. Motion passed unanimously.

Larson moved and Weddig seconded to accept Schenck�s three-year proposal audit services. Motion passed unanimously.

Nelson moved and Goss seconded to convene into Closed Session pursuant to Wisconsin State Statues, Section 19.85(1)(c) to discuss personnel. Motion passed unanimously.

Jeanquart moved and Cyrus seconded that, effective January 1, 2010, Kirkland receive a 25 cent/hour increase plus 24 hours paid time off in 2010. Motion passed unanimously.

Larson moved and Weddig seconded to adjourn. Motion passed unanimously.

Committee Members Present by Roll Call: Bryan Nelson, Mike Johnson (9:20), Jeff Larson, Diane Jacobson, Jennifer Laughlin (9:20), Pauline Cyrus, Bill Weddig, Little Bit LeClair, Nancy Goss, Chuck Tice, Bob Kufrin, Dave Holtz, Richard Briggs, Deb Jeanquart

Excused: Andy Coulson, Mary Boston, Tom Benzshawel, Sandy D�Amico, Tom Olsen, Carol Stayton, Nora Zacek

Absent: Sarah Sawyer, Paul Flottman, Dick Skare

Also Present: Jack Moneypenny, Mary Denis, Jon Jarosh/DCVB; Dianne Lensert/Kerber Rose; Kathy Kirkland/Administrative Assistant

Audience: Kurt Rentmeester, Door County Advocate

Call to Order
Chair Bob Kufrin called the meeting to order at 9:11 a.m. We have a quorum of the Executive Committee, but are lacking one for a full quorum. He thanked Goss for letting us meet at Liberty Grove�s new town hall, a beautiful space.

Approval of the Agenda
Nelson moved and Tice seconded to accept the agenda as submitted. All ayes.

Acceptance of Minutes of November 12 Finance Committee
LeClair noted that on pg 2, line 40 has mixed language about Liberty Grove and Maple Grove. Remove the words �Maple Grove.� Tice moved to accept the minutes as amended; Nelson seconded. All ayes.

Approval of Minutes of November 19 TZC Meeting
Nelson noted on pg 3, line 10, it should be �LGBT� instead of �LGT.� Tice moved to approve as corrected; Nelson seconded. All ayes.

Acceptance of Minutes of November 23 Finance Committee
LeClair noted on pg 3, line 4, �because there are fees� and on pg 4, line 27, delete the �is� after $13,000. Tice moved to accept as amended; Nelson seconded. All ayes.

Acceptance of Minutes of December 7 Finance Committee
LeClair noted on pg 3, line 11, and take out �was felt.� Lines 15-17, LeClair just questioned passing on the cost of software changes to the permit holders. Kufrin said the discussion was that if there are Lodgical software modifications, there may be a reason to pass on some of the higher costs to permit holders who aren�t complying with our standard reporting forms. Kufrin said in locations such as hers, it�s simple to enter information; some properties or agents have 30 different units under different permit numbers and depending on how they�re received, it takes the Kerber Rose staff a long time to enter the information. (Laughlin and Johnson arrived at 9:19; a quorum was present allowing all present commissioners to vote). If they continue to make it more difficult to enter reports, we�d charge them for that. Lensert said multiple properties are the problem area; Bay Lake software would make modifications to link Lodgical. Kufrin said we�re exploring on how to modify software to save money for Kerber Rose expenses. Nelson concurred. Nelson moved to accept the minutes as amended; LeClair seconded. All ayes.

Administrative Assistant Report
Kirkland reviewed her report, noting that the report on aging late payments revealed that 97% to 99% of permit holders are up to date after two month beyond the deadline. The problem is a handful of permit holders who are habitually late or do not file at all, along with those who have yet to become permitted. Some newly found properties are trying to postpone becoming permitted until the season starts; however, they are already advertising, so legally they should have a permit. She noted that since the last Finance Committee meeting, she has spoken with the rep from Official Payments Corporation (they handle more than 4,000 municipalities and entities for credit card collection). They have a 2.75% credit card fee that is charged to the users (permit holders) that includes credit card charges (volume discount). While there is a charge to the credit card holder, lodgings may want to use it for convenience or mileage points, etc.; there�s the option of giving a �discount� as the State does. This may encourage people to pay promptly.

Report by Door County Visitor Bureau on Marketing Efforts
Moneypenny noted that he and Mary were in Chicago at the Holiday Showcase. Nationwide, everyone seems down about 16% to 18%, some in down by 20%+. So, looking at Door County, he is happy with the numbers but wishes they were better. Anecdotally, innkeepers feel November is up a little bit over 2008, and December has had last-minute reservations. Factoring in October (down 5%), we�re down 1.3%. September is up 5% from last year, and with late collections, we�ll probably be back under 1%. Without the room tax money, it would have been a bad year here. Regarding staff, two DCVB staffers aren�t doing well. Carole Counard has been with the Bureau 20 years and is scheduled to retired. She is diagnosed with lung cancer and undergoing chemo and radiation. She�ll be coming back for the two weeks before she retires so there�s no confusion about being laid off. The entire staff is helping and thinking of her. Martha Beller went in for double hip replacement last Monday. She has enough sick time to carry her through convalescence and will be back at the office after the first of the year; after three weeks, she�ll either be back in the field or in the office.

The DCVB Executive Board ruled on a huge change on December 16. The Board Development Task Force has met the last few months and recommended that the board go from a 36-member board to a 24-member board. Board meetings will replace Executive Committee meetings and will hear the business of the Bureau, meeting monthly. The Executive Committee will be the Personnel Committee and will retain a different format: immediate past chair, current chair, vice-chair, treasurer and an at-large Board member (five members); they can call an Executive Session for taking care of business. The Board Development Committee will continue to meet every month re: who rotates off the board (four yearly), interviewing candidates in second quarter, elections in third quarter to take seats in January; in November and December, newly elected members will audit meetings. This is a departure from the past, and Moneypenny and feels it�s a good move that will engage 24 people monthly. The makeup will still be 25% innkeepers, along with retail, restaurants, county government, economic development, and an education member. They�ll have a more rounded Board for the next five to 10 years. Kufrin asked when it will drop to 24. Moneypenny said many signed on for quarterly board meetings; this year, they moved to six. Some will drop off when they realize it�ll be monthly. Many have not been at a majority of meetings, and they can be asked to step down. It�s a commitment that has to be taken seriously.

Goss asked for a clarification on how much Door County is down; about 1% to 5%? Moneypenny said it�s 1.3% through October. He has to explain to people that we�re down compared to last year with existing communities but up in tax collections because of the added municipalities. Kufrin said the adjustment is taken out for new Zone communities to make the comparison. Moneypenny asked if we count January through October, can we count uncollected taxes. Lensert said those are fees and penalties, but there are those who don�t file, so it�s better to look at the way we do it currently.

Moneypenny said the Visitor Guide books are on press today; the shipment arrives the first week in January. Moneypenny said the biggest change is the use of two indices, A-Z and then by each municipalities with categories/alphabetized. He confirmed they�re printing 250,000; there is only a case of 2009 books left, so no waste. Kufrin asked if the website has information that�s not in the book. Moneypenny said the book itself is online; there can be changes made to it online (adding new members, etc.). LeClair mentioned they can take remove members, too.

Denis said they�re looking at the web for a new campaign and how the redesign will look; they�re working with the ad agency to interact with Innline. By end of the first quarter, it will have a new look. Ads begin in February and March; January will be only the Romance packages. On the last page of this month�s report, they won�t meet aggressive goals on the web stats but are keeping pace with last year. November to November is up 22% because there was a holiday advertising campaign. Time spent on the site is up 30% for October even though users are down. They�re continuing to meet with meeting planners; the Holiday Showcase collected about 60 cards to add to the database and they�ll be followed up. Kufrin mentioned that Google is changing how it does web search indexing; Denis said they�re on top of it and it�s Google�s reacting to Bing, a new search engine on the rise. Part of the redesign will be search engine optimization; they want to stay No. 1 and are entering keywords into the new site. They continue to work on social networking. Kufrin wants to know if the DCVB can help mentor individuals on their websites re: keeping their positions for web indexing. Denis said they�ve thought about bringing the ad people in for a seminar or giving them a white paper to share. They�ve already done a white paper on blogging best practices.

Jarosh said that aside from AVE, the DCVB is on track to meet or exceed goals. They had a very successful press trip last week. USA Today will feature Door County in a 10 Greats article in tomorrow�s Travel section. Nelson asked if the AVE difference is because of shift in how it will be tracked. Yes, Jarosh said they�re switching to �publicity value� as form of measurement instead of �ad value.� There is information on that in the Strategic Plan handed out last month. Moneypenny interjected that the new DCVB Board structure will be ensure categories geographical representation. They�ve to cut the peninsula into thirds and will try to find candidates come from diverse areas for good representation. Kufrin asked Denis about meeting planners; is there a guide for services that the DCVB provides? Denis has a list but with Destination Marketing Association Int�l certification, the DMAI wants a guide for group and meetings; they will be doing that. Some want financial help or leads on sponsorship; the DCVB does not do that. Most groups begin working with service departments at the hotel they choose. Kufrin feels the Board changes will work out better with more meetings and a smaller group. Moneypenny agrees.

Discussion of Current Comparatible Occupancy Numbers for 2009
Lensert said they delayed updating the blue box on the report, making it look negative; Kerber Rose backed it up because the majority of money comes in within 30 days. Through end of September, we�re down only 0.6%, a good number. October still has late collections out there. As far as occupancy percentages and daily averages, September pulled everything up. Most months have been a little lower, although increases in average rates balanced it out. September was a significant jump but with a slightly lower rate.

Lensert said in the headings, the first half of the year had been adjusted and remixed; from June on, they�re unadjusted; they�ll be rerun at the end of the year. The green section compares apples to apples; next year, they won�t need that except for late collections. October dollars by community wasn�t in the packets YTD. Kirkland will e-mail that to everyone. Weddig asked about seeing numbers of units available in Gibraltar drop by 1200 unit nights (approx. 40 units). What 40 units in Gibraltar went away? Lensert said it could be in late collections just one month late. Kufrin said to look at the municipalities report naming permit holders, compare them to last year�s report, and see which ones paid and which dropped off the list. Lensert said Gibraltar can be run as a report. Weddig said the decline starts in April.

Consideration of Approving Reports and Payable plus Receipts to Date
Lensert said the finance statement including YTD Budget; compliance costs, and Kerber Rose fees continue to add up. They�re trying to find ways of cutting that time to keep costs down. Larson moved to accept the Kerber Rose reports and pay payables; Cyrus seconded. All ayes.

Meeting Schedule for 2010
Kufrin asked for members to volunteer their communities for a meeting location. Tice requested that more meetings be held in the southern end of the county. Regarding the Annual Meeting, June 1 is the Tuesday after Memorial Day. Everyone felt it�s a reasonable date; several mentioned possible venues. LeClair remarked that Memorial Day is late this year; it�s Maifest in Jacksonport. Kufrin said we have to have time for an approved audit, which is done at the prior Commission meeting. Nelson said the earlier thinking was that day after Memorial Day would enable individual homeowners to attend; it sends a message that we make it easy. We�re mandated to have an Annual Meeting. Tice said it could be on a regular meeting day then move into Annual Meeting because we have few visitors anyway. We could hold it at June�s regular meeting in Sister Bay; it�s noted that the Bylaws call for a date during the month of May. Can we complete everything by May 20? Kufrin said we have to have the auditor review his findings at a Commission meeting; the annual meeting is a week or 10 days later after copying all the materials. Jacobson suggested changing the Bylaws to �May or June.� Tice said a change has to be taken back to the municipalities for vote. Rather than change one article, he recommends we wait until we have everything in order and take all three documents back. He moved to temporarily suspend the Bylaws and adjust the annual meeting to where it suits; Nelson second. We need two-thirds and we don�t have two-thirds at this meeting; we�ll need 16 votes. Tice said it can be done by conference call. All agree we can have the Annual Meeting in conjunction with the June 17 meeting. Kufrin will put together a Resolution for the January agenda. All ayes.

Finance Discussion on 2010 Annual Budget
Kufrin included materials in the packet about noncompliance, recommending certain software proposals from Bay Lake to enhance the operation. Lensert said the ones discussed are having the online software add a feature that calculates late notices automatically; they are currently generated manually. We would have to track it because it�s not an accounts receivable package but it would save time and costs, paying for itself over a period of time. Ability to change passwords is an enhancement to provide security; currently, there�s an assigned password that�s not changeable, and both Bay Lake and Kerber Rose/Kirkland have those lists. With a new system, if there�s a problem, it can be reset, but there would not be any record of login information. The issue of accepting credit cards is on hold until Navarro�s materials are reviewed; that may be a better alternative from the original thought. Confirmations have been an issue in the past; Bay Lakes can enable an e-mail sent that states the date and amount of money going to be deducted; right now, it�s onscreen only and many don�t print it out. There�s also a new option from Navarro that�s an e-check option. Kirkland said the check face is onscreen and the user has to enter routing/account numbers twice which will eliminate some human error. Until we look at Navarro�s package, Lensert suggests holding on Confirmations for another month. Auto-calc for late fees and ability to change passwords are her recommendations from Bay Lake�s proposal. Goss moved to add late fee calculations and password changing; Larson seconded. All ayes.

The budget challenge is the cost of compliance, and Nelson said in the 2007 meeting at Ephraim, the Commission looked at late fees and penalties and said we should distribute them to the municipalities. Subsequently, the Commission said we�d undertake all compliance enforcement, which put all the costs on us with no remuneration for the efforts. Finance would like to repeal the decision to distribute the late fees and penalties and retain them to offset compliance. We need it to balance the budget; the budget presented assumes we would be keeping the late fees, which would be approx. $8,000. Weddig asked if it�s the municipalities� decision; Nelson said the Commission made that decision itself, so we don�t need approval. Kufrin said $8,000 is a lot for us but across the $3 million collected, it�s not much and the municipalities will get more as a result of compliance. Weddig agrees and states that the fund can be redistributed if it builds up. Kufrin noted that our fund balance was started in 2007 and continues to decline. Nelson moved to repeal the decision to split late fees and penalties/interest with municipalities and the DCVB. Goss seconded. All ayes.

Lensert asked when that would take effect; there is still money outstanding. Nelson moved that the effective date for the TZC to begin retaining 100% of late fees and penalties begins December 17, 2009; i.e., anything collected on or after today. Goss seconded. All ayes.

Budget for 2010 and Comparison Information for 2009 to 2010
On the second page of the two-page set (colored sheets), Lensert said the budget was based on the money being collected through September actual, then (lighter blue) projections for October through December based on 2009 less 3% but we have to take an added reduction: The total projected for 2009 was $3,042,000. Within those collections are lates from prior years; going into 2010, $40,000 is deducted as being allocated for prior years. Deducting the $40,000 in late pays, that leaves $3,002,000 as the 2010 budget figure, and it�s spread over the months based on how the money came in during 2009. It�s basically a flat budget. The CMF money is based on percent of collections from 2009, projecting Sturgeon Bay�s number through the end of the year; it�s also being kept flat. The 2010 DCVB figure is a combination of the 66% and CMF.

Kufrin said projected revenue was a difficult number in trying to anticipate for next year; anticipating flat (down 3%) is conservative. Moneypenny asked about January and February numbers; are those collections from November and December? Lensert said it�s based on January for the month of January even though not collected. These aren�t cash numbers; they�re collections for that period. The DCVB runs their budget on cash; it is different.

On the budget�s yellow-and-white sheets (pp. 3�4), it compares 2009 expected expenses and revenues to 2010�s. The Finance Committee is recommending a 2010 budget that ends with a $233, balance which includes keeping the late fees and penalties. The Annual Meeting decision means not paying for location or catering, so that will change that figure. Larson felt it was conservative and a good budget. Kufrin said biggest outstanding question is Compliance enforcement. Larson moved to accept the 2010 Tourism Zone Commission Budget as presented; Weddig seconded. All ayes.

Kufrin thanked Finance Committee for their meetings; they�ll continue to meet in January and February re: credit cards. Credit card costs would be absorbed by credit card users; that seems to be standard. LeClair asked if permit holders could still pay by check; yes. Her credit card fees are high already; she didn�t feel owners would want to pay extra fees. Lensert said it�ll be an additional option. Finance will be looking at that carefully and have something at the January or February meeting. Weddig asked if municipalities are able to vary the cost and set the credit card fee higher. No, the merchant company (Official Payments Corp.) collects the fee automatically when the tax is paid. The County has been doing it awhile, Kufrin noted. LeClair said the late fee is just $25; she�d like to see the late fee more substantial � $100 or $200 � so permit holders take notice. People prioritize how they�re going to spend their money; $25 is nothing. Larson agreed; a study in an Israeli daycare center showed that when it imposed a small late fee, people would pay it. The center had to boost the late fee. Kufrin said it�ll be taken into account.

Consider Approving Renewal of Liability Insurance with League Program
There was discussion about insurance proposals and renewing with the League of Municipalities. It was felt that the League offers the most consistent and fair coverage for our category of insured. It also covers the Commissioners, for instance, when driving to meetings and performing Commission business. Goss moved to approve renewal of our insurance with the League of Municipalities based on the League�s proposal; Larson seconded. All ayes.

Consider Approving Renewal of Audit Contract with Schenck Auditors
Kufrin submitted three proposals from Schenck for audit prices based on one- to three-year contracts. Nelson asked if that means we can lock in the audit fees to 2011; it does. Johnson asked if Benzshawel had given the name of the City of Sturgeon Bay�s auditor; their audit was only $6,000. Nelson said when we solicited proposals several years ago, there were only two that submitted bids: Schenck and a Milwaukee office of a national firm (which was nearly $20,000). Weddig said the Schenck proposals are almost identical to Sanitary District in Fish Creek; he feels it�s fair. Goss supports Schenck; their prices are reasonable, she has had experience with them in Ephraim, and every year they become more familiar with what�s required. Nelson said his only doubt is that we�re a straightforward audit; it seems we shouldn�t be priced the same as more complicated audits such as the Sanitary District, but we may not be able to come up with cheaper. Weddig said Schenk gave us a good audit in a timely manner. Larson moved to accept Schenck�s three-year proposal for $6,500 (2009), $6,800 (2010), and $7,100 (2011) and look at additional options beyond that; Weddig seconded. All ayes.

Discussion on Specific Enforcement Actions before the Door County Circuit Court
Kirkland said that Jon Hanson has been given a judgment on the money he owed at one point in time; however, he stills owed a substantial amount and continues to pay late. This is only one of his four properties that have gone as far as court; the others have similar problems. Maple Grove has not been heard from; Drastata has not submitted for any of 2009 or 2007. We do have 2008 to go on for an estimate.

Consideration of Approving the Compliance Policy
Finance looked at compliance and provided the Commissioners with three reports: There is a sheet with properties offering rental but have not been permitted, so they are noncompliant. The second list is by municipalities of permitted properties that are not paying or filing. This gives you an idea of the scale. The third report is (green/yellow/white) the aging payments to identify the scope of who�s paying on time, who�s late, and how late. It�s broken down by 1-and-2s and by 3+ (commercial operations). Overall, about 93% are paying on time. Past the grace period, another 5% are paying, so up to 97% to 98% paying quickly. Beyond that, another 1% to 2%, and, the last column, the number paying after 30 days is 1%. Beyond noncompliant lodgings (not permitted or permitted and not paying, which could be substantial money), it�s only 1% late over 30 days.

Finance talked about addressing the compliance policy to what kind of policy would work. The Committee talked about alternatives that may address non-permitted as well as the permitted but non-compliant group. Benzshawel is going to come up with a proposal about collection agencies, which would avoid attorney fees (approx. 40% to 60% is the collection agency�s contingency). Kufrin drafted a short-term amnesty program (included in packet) to try to collect outstanding money before we engage the attorney. Weddig asked if a collection agency just makes an attempt and if they can�t collect, we�d continue with an attorney? Or does the collection agency itself proceed with its own attorneys and go to court? Kufrin isn�t sure; Benzshawel has experience using a collection agency. Weddig asked about municipalities or county trying to collect? Kufrin said when he was Administrator at Oak Creek, the city would turn over personal property and ambulance bills to a collection agency and then the city would get 25% to 30% of total owed. They were effective and didn�t require retaining the attorney. Cyrus brought up small claims court; it costs $90 or $100 to file. Perhaps a letter stating that the permit holder is �leaving us no recourse.� Gardner has had good results with that. Moneypenny said the DCVB had a lot of bad debt; last year, they chased $62,000 and in small claims court collected all but $800.

Kufrin said small claims court needs to see proof of amount owed; the DCVB would have had the specific amounts, but on most of ours, we�re not sure how much is owed. We�d have do an estimate based on comps, website ads, etc., and say, �Here�s how much you owe� and then go to small claims court. Further, should we go back to 2007, 2008 for collections? Kirkland said the Finance Committee discussed doing an estimate, sending a bill, and stating they had X-period of time to ask for a hearing in front of the Compliance Committee and bringing proof to refute the bill.

LeClair asked if you can get an audit without going through circuit court. Kufrin said Vande Castle has used a judge to authorize an audit. Kufrin said amnesty would encourage payment, we�d waive the past months if you get into compliance. While we may be foregoing some amount of money, it wouldn�t cost attorney or staff expense. Many are outstanding more than a year; do we pursue them back to the beginning? Start going forward? He suggests they make a payment that appears reasonable and we�ll waive penalties/fees. He needs direction from the Commission.

Weddig feels we need a combination; someone has been paying and suddenly stops, then after 30 to 60 days, we need to bill them. That information could be taken to small claims court because you have a record of past payments (as well as those filing but not sending in money). If a person has not been collecting tax in the past, that�s a different issue; that�s where amnesty might come into play. Non-permitted properties, someone not following the system at all, it�s unclear how small claims would deal with that.

Kufrin said the challenge for audit is that it�s $3,000 to $10,000 to do one, and we�re not sure we would collect that much in room tax or fees. Goss said if the goal is to cut back on legal costs and make compliance palatable, she likes amnesty so people can be tracked. She said it should include a �sunset� deadline. Tice said the amnesty was already given in the paper this past spring in the ads placed. Tice said it�s a tax on the patrons; the permit holders are supposed to pass it on. Moneypenny asked we can threaten to turn this over to the Wisconsin Department of Revenue; that might scare some people. Kufrin said the State would do an audit and it�s an option to turn in names. Kufrin noted two distinct problems: (1) non-permitted, never signed up, and continue to market themselves, and (2) permitted but noncompliant who aren�t paying as they should. Kirkland said there are some legitimate cases with out-of-town owners who haven�t been aware of their obligation; the notices in the property tax bills have gotten two people to voluntary ask for permit applications; Tice feels they shouldn�t be pursued for back taxes.

Amnesty Proposal
Kufrin restated the amnesty proposition: If non-permitted, if they become permitted by February 1, 2010, and make full payment (based on an estimate) by April 1, 2010, they owe everything from January 2009 (prior years would be wiped off), and no late fees/penalties will be levied. However, if they don�t take advantage of that, then penalties/interest will stick and we would go after years prior to 2009 (inception of room tax in that municipality), using an estimate for income, with money due whether or not they�d been collecting the tax. For permitted properties, all activity prior to January 2008 (or local adoption if later) would be waived. If the property makes payment by March 1, 2010, with estimated amount due (confirmed by Kerber Rose and Zone staff), then no late penalties/interest is due. If not paid by March 1, 2010, then penalties and interest are due, with all rentals counted from adoption of room tax ordinance in that municipality.

Tice said a collection agency is a good choice because being pursued by an agency can cause problems for a business with credit ratings, and so on. Owners are not going to want that. Laughlin feels collection agency is fine but if people are struggling; maybe it�d lead to a bankruptcy situation and we�ll be out the money anyway; if we do small claims, it would be less of a hit than the percentage from a collection agency.

Vande Castle sent a letter with his judgment as to whether room tax is lienable. Tice said the tax is really due to the municipalities; we�re just the collection agency. Johnson asked if it could be done as a special assessment. Vande Castle didn�t feel that would be possible for the municipalities to do so. Kufrin said his letter was specific as to how it applies to the TZC; can it be transferred back to the municipalities to file the lien? It seems the language of �special charge� is narrow. Moneypenny asked if you could use a collection agency on a couple cases and see what happens; give them comps and use it as a basis for what�s owed. Kufrin isn�t sure what agencies are out there. We have to establish what we think permitted and non-compliant properties owe us and then have the Commission vote on the estimates, late fees/penalties, and that�s what turned over to the collection agency. We have to be specific and have a backup trail for what is owed, which would be agreed upon by the Commission and not just Kerber Rose and Kirkland. General agreement.

Moneypenny suggested doing calculations and sending letter to the business with a narrative on how it was estimated. They have two weeks to refute it, and then it becomes a binding invoice to go to a collection agency. Weddig asked if we could take the same estimate to small claims. Nelson feels it�s worth trying amnesty and see how many we can get; we�d need it well publicized. Jacobson likes the idea but, added to it, the threat of going to a collection agency if amnesty deadline passes; then �enforcement begins.� Nelson said it would less expensive than the attorney to run ads and try amnesty, publicize it as best we can. LeClair asked if we can publish names; offhand, not sure, but probably has to become a court issue first/public record.

Tice offered that some collection agencies work by buying the debt from us, giving us 25% upfront and we�re done with it. They own the debt and go about collecting it. Others agencies agree to try to collect, and there�s a fee if they don�t succeed; if succeed, we get our percent and they get the contingency. Kufrin said the goal is to get these properties permitted and remain compliant. A collection agency may get money but we haven�t achieved compliance and will have made enemies. Larson agreed and doesn�t feel collection should be the first round; it�s tearing down a relationship. He felt using the small claims threat first, especially if you have a specific amount (filed but not paid, for example) and follow-through. Use phone and personal contact to find out the problem.

Laughlin suggested comps using a schedule or chart; e.g., for those 1-10 units, we�ll estimate the income and the penalties; if 20-50 units, etc. Is there an average? Perhaps base the amount on everybody else�s tax plus 5%. Lensert said averages are all there by type of unit and municipality. LeClair still felt if they�re permitted but habitually late, they�d get the message if they can�t advertise on the Visitor Bureau site. Nelson liked Laughlin�s idea but we need closer comparables. Kufrin said amnesty creates a relatively short period of time to become permitted and pay up; after that, we pursue them as we see fit.

Should Finance come back with estimated amounts next month? Get proposals from collection agencies? Amnesty? Goss feels it�s a good idea to get estimates on what�s out there; pointless to pursue until next month when we have a handle on what we�re dealing with. Larson can see putting out a press release next month that we are considering this type of action. Goss proposed that we see estimated amounts owed at the next meeting, then approve that list as the amount we believe is owed, due and payable, plus interest and penalties. Then we can then see the impact of amnesty.

Any other alternatives? None given. Kufrin proposes going into closed session briefly for personnel re: Kirkland. Nelson moved to convene into Closed Session pursuant to Wisconsin State Statues, Section 19.85(1)(c) to discuss personnel; Goss seconded. All ayes by roll call.

Closed Session

Consider a motion to reconvene into Open Session
Moved and seconded to return to Open Session. All ayes by roll call.

Consider a Motion to Take Action, if Required
Kufrin read the recommendation that Kirkland receive a 25 cent/hour increase plus 24 hours of paid time off in 2010, effective January 1, 2010. Jeanquart moved to approve; Cyrus seconded. All ayes.

Adjournment
Kufrin thanked all the Commissioners for their year of service. Larson moved to adjourn; Weddig second. All ayes. The meeting adjourned at 12:25 p.m.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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