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February 19, 2009 Door County Tourism Zone Commission Meeting - Minutes

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OF FEBRUARY 19, 2009 (as amended 3/19/09)
Ephraim Village Hall

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

Tice moved and LeClaire seconded to approve the January 15 minutes as submitted. Motion passed unanimously.

Neddersen moved and Goss seconded to accept Associated�s ACH Filter and Positive Pay additions. Motion passed unanimously.

Goss moved and Stayton seconded any two among the Chair, Vice-Chair, and Treasurer can make banking relationship decisions and that any action be reported within five business days to Finance Committee. Motion passed unanimously.

Committees:
�Nelson moved and Stayton seconded that we authorize the Executive Committee to be comprised of seven members: the four officers plus three to include one At-Large member. Motion passed unanimously. A formal Resolution will be presented at the March meeting.
�Kirkland will work on the Annual Meeting with input from others; no formal committee. Kirkland to poll TZC members for suggestions on locations, dates for March agenda.
�Tice to chair the Compliance Committee. Kufrin will have a list of possible members for a Compliance Committee and a Mission Statement at the March meeting. Possible need to change Bylaws to allow committee to act independently.
�Add Benzshawel to the Finance Committee with Neddersen, Coulson, Nelson, and Kufrin.
�As per Vande Castle, should create a formal resolution to approve Committees. Kufrin will have a list of members for the March meeting.

Larson moved and Goss seconded to approve Payables. Motion passed unanimously.

New Business for March: Washington Island activities and other suggestions.

Closed session as per WI Statute Section 19.85(1)(a)(f) or (g). Open session motion by Johnson, seconded by Larson to authorize Vande Castle to begin legal proceedings against Roger Rockwell, Maple Grove Motel LLC, and audit Jon Hanson for Beach Harbor Resort.

Committee Members Present by Roll Call: Bob Kufrin, Mary Boston, Sandy D�Amico, Debra Jeanquart, Mike Johnson, Bryan Nelson, Sarah Sawyer, Jeff Larson, Nedd Neddersen, Diane Jacobson, Mike Stevenson, Bill Weddig, Dick Skare, Little Bit LeClair, Nancy Goss, Chuck Tice, Nora Zacek, Tom Benzshawel, Dave Holtz, Richard Briggs, Carol Stayton (arr. 9:40).

Excused: Andy Coulson

Absent: George Delveaux, Amy McClelland, Tom Tostrup, Edson Stevens

Also Present: Jon Jarosh and Sally Everhardus, Door County Visitor Bureau; Dianne Lensert, Kerber & Rose; Kathy Kirkland, TZC Administrative Assistant

Call to Order
Chair Bob Kufrin called the meeting to order at 9:03 a.m.

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

Approval of January 15 Minutes
Tice moved to approve the minutes as submitted; LeClair seconded. All ayes. Minutes from the January 28 Finance Committee minutes are in the packet as informational. Tice suggested that after these minutes have been approved by Finance, then bring it back to the whole to recommend a change of committee status. Agreed. Kufrin explained that Finance is an ad hoc group that meets about six times a year to come up with recommendations. It has been recommended that Finance becomes a formal subcommittee of the Commission so that it would have a slightly different standing than ad hoc. The January meeting included considerable discussion on banking services. Finance will likely meet again in June.

Administrative Assistant Report
Kirkland cited that she is still waiting for paperwork from the Village of Forestville. Year-end reports include a list of Sturgeon Bay (City and Town) properties that had not yet permitted (first filing is due February 28). She gave a list of the non-conforming Sturgeon Bay properties to those Commissioners. There are several permitted properties that have not filed any reports for 2008. Included in the packet are lists of Removed Properties and Permitted Properties as of January 22, 2009; Kufrin asked all to look for non-permitted properties or those inadvertently removed. He anticipates a list from Steve Bell, WI Department of Health that will help us identify other renters.

Discussion on DVD Training Program from our Insurer
Our insurer has passed along a DVD produced by the WI League of Municipalities, �In the Scope of Your Authority: Preventing Public Officials� Liability.� If the Commissioners and Kirkland watch the DVD, we could get $125 incentive. The League�s representative would like to be on hand to answer questions; they�re hoping for compliance within a year, with 80% of the Commissioners viewing. Kufrin said it would be good for new members not previously involved in local government, and our insurer recommends this. Sister Bay Fire Station has a TV with DVD for next month�s meeting; Kirkland will check the League�s schedule for the agenda.

Welcome Members from New Member Communities
Kufrin welcomed Sandy D�Amico to the Commission for the Village of Egg Harbor. There are four communities now collecting $300,000+ in room tax per year, entitling them to a second member; we have four communities at that level, and there are higher levels for extra members.

Update on the Community Marketing Program
Jarosh noted Moneypenny is at a trade show selling Door County to bank travel groups. Kufrin asked if the DCVB proposed a contract employee. Jarosh said there is a member feedback but he�s not aware of a decision. Moneypenny will meet with individual civic associations and hopefully the municipality�s board. Right now, if only one or two attend, the information gets distorted. Meetings will be completed by the end of March. Feedback will help craft the job description.

Report by the DCVB on Marketing Efforts
Jarosh explained that this month�s report is different. Moneypenny, Denis, and Jarosh feel it better reflects activity. The Strategic Conversation Key Measurements on page 2 is per the 2009 Conversation. A couple stats show the goal with no measurable results. Kufrin suggested the monthly goals show a percentage of annual goal, 1/12th; Jarosh agreed for some items but because the season has a �seasonal curve,� it won�t work for all. Kufrin felt the bulk of promotion should occur in the first four months and the last four months.

Everhardus said training 125 ambassadors will conclude in April/May so there won�t be activity. Larson cautioned against our getting to get to the end of the year and saying �we missed it.� He would like to see the progress against last year�s numbers�comparison of YTD against goals. Kufrin said the DCVB should provide an indicator of where they thought they�d be to where they are; that�s better than a percentage. Everhardus will look at a different format. Neddersen suggested categorizing: Some are media, some are Internet, some are sales. If broken down into category of effort, they can compare. Benzshawel asked for a monthly goal as opposed to percentage of annual goal. Jarosh said they will try to incorporate monthly so we can see how things are going. Kufrin wanted to see indicators on reports matched to the 25 major tasks on the Strategic Plan; if they if Meeting Planners is �3c,� mark it for identification so indicators can be quickly matched. Everhardus said there are six major goals; tie these to the goals? Kufrin said yes.

Neddersen asked about web visits being off from previous year. Jarosh said January numbers are down; Denis talked to Renee at eBrains. We need to see the contract for the rest of the year to get the most for our dollars. If we need to shift around, we will. Renee felt site visits were down due to the general economy. Further, one promotion was not done this year, Pay-Per-Click, but will be ramping up in March. eBrains said that Pay-Per-Click is not worthwhile in winter but save it for peak season. An e-mail just went out to the subscriber base of the Visitor Guide; that will impact impressions. Kufrin asked if website visits correlate to lodging results. Jarosh said conversion studies measure website traffic versus who comes up here (their �guarantee�)�the last graph on page 4 discusses that. Jarosh felt the average daily traffic correlated to business, but that was proven wrong last year. Average traffic down 10% last year but overall business was not down 10%. Some traditional indicators don�t mean what we thought. Neddersen stated that the conversion study is done by a third party; Jarosh said it�s Texas A&M. Kufrin asked if web numbers continue to reflect a 30% decline through February or March, what will they do differently? Jarosh said they�ll discuss with eBrains. The DCVB found that more people are planning vacations closer to when they actually come; if so, the 30% may not mean as much. They�re working on a re-skin of the website for a new look and additional content, which will get the website showing growth.

Kufrin asked the percentage of web-based travel of versus total travel. If web activity is declining, do throw money into web-based or do more into print ads in Chicago, Minnesota, Iowa and other media? Jarosh said it�s a conversation; they�ll remain flexible. Neddersen said all ads and marketing are tailored to visit the website, so how do you decide where the booking came from? Has eBrains mined all the possible user groups? Jarosh said they added 101,000 people; he felt there are more out there. There are 80,000 PI leads, and they�ll start harvesting those in March. Nelson stated DCVB marketing maintains �top of mind awareness.� For his own business, web is responsible for 80%+ of new guests, but he has to remind old guests as well.

Jarosh they�re moving forward for media tracking with image recognition. January�s numbers show a three-week lag time; ad equivalency will go up. �Publicity value� is their normal formula but to compare last year, we needed ad value equivalency, which takes longer to calculate. Cision will be tracking editorial and images. Kufrin asked about Geiger update; if we�re looking at calendar year, 2007 is irrelevant; it should be 2008, not an 18-month first group. Jarosh agreed, but the number they give is programmed date, it�s tricky to compare one month to next; we�re getting credit for ad value equivalency from a tour a year ago. Kufrin said of �11 tours since July 2007,� they should stop going back so far, just 2008 and stick to a contract year. Weddig would like to see a year or two back, if the writers are reappearing in other publications, are writers returning or are they all new people? Kufrin said if this is keystone to the marketing strategy (editorial versus press releases), that�s important; still feels it should be annual. Kufrin said the contract discussed number of journalists, about 120 or so between January 2008 and December 2008; that�s the comparative number for 2008 to our similar 2009 contract. Would also like to see a comparison of �in-kind contributions� for 2008 compared to 2009. We pay more if in-kind declines. Kufrin said there�s a disconnection of total value of articles written and people who are coming, in-kind contributions.

Kirkland asked about �Feed the Fish� follow-up for publicity. Jarosh said they�re still filming, looking for extras. Once they�re in post-production, the DCVB will work with them. The producers want a local premier in August or September. Jarosh is hoping to talk to Shaloub about promoting films in general and is working with Film Wisconsin as a location all times of the year. We�ll use this film to promote to other production companies. Is there a way to measure economic impact? Sister Bay Village Hall is their production headquarters; they�re having three meals a day for 30 people. Top Shelf is catering, and they�re also going to local restaurants.

Neddersen asked about Geiger; there are now 180 articles. Can they look at the markets where articles appeared and measure any added visitors from those areas? Jarosh felt it was a good idea. On February 26, 15 journalists are here all over the county again. Kufrin asked about linking articles to their home pages on the website; that should happen next week.

Discussion on Current Comparative Occupancy Numbers for 2008
The reports are now updated through January 31; the 2008 average percentage is 37% occupancy, ADR $129, total collections including late 2007, $2,633,905. On the last page of that report, the extra columns of adjustment explain the totals. There were a of couple significant municipality corrections. Kufrin caught one for Sister Bay, one for Jacksonport, Liberty Grove. Kufrin asked Kirkland if municipalities signed off on the reports. Kirkland got only about five replies as to correctness of reports. Kufrin asked if there�s another one this year that was wrong from 2007, what do we do? Lensert said it�ll be adjusted no matter how far back.

Year-End balances were reconciled for the upcoming audit. The first year was May-December and deliberately compared this year, but now we have 12 months in 2008; should we do a 12-month? Neddersen said it should be how we budget, so 2007 numbers will drop off the chart when we have through April 2008. Going through 2009, we�ll remove new municipalities for comparison so it�s apples to apples, as we did with Gardner and Washington. Kufrin asked about numbers on page 4, from an average room rate of $129 up to $134; why are we able to charge more despite decline in demand? Lensert said it�s adding municipalities such as Gardner and Washington, not taking them out as in the other chart. Prices went up 3%, Neddersen noted it�s just cost of living. Also, Sturgeon Bay numbers will be in these figures now, and with a number of branded hotels, their off-season is not as slow as Northern Door�s, so figures will look better but we have to keep the reason for that in mind. It may bring the average rate down because branded hotels have a different price point.

Kufrin asked if Benzshawel and Briggs could find out the historical collection information for the aggregate group, then we can have a better educated guess of impact of City and Town of Sturgeon Bay on The Zone. Benzshawel said those figures may be proprietary but he�ll ask.

Briggs asked about permits, how does a single unit affect the numbers? Kufrin explained that each permit has to indicate the number of units and months available. A single house would be 1 unit nut one house could have 15 �beds.� We look at aggregate to protect confidentiality. Kirkland noted that many one- or two-unit places are shutting down early, and even some hotels are closing certain units; that has to be considered against their originally stated number of units.

Consideration of Approving Finance Committee Recommendations
Nelson talked about Associated Bank dealings and account. Lensert had said our sweep account that had been earning interest is now offset by account charges; Nelson made a decision to shut off the sweeps until the seasonal revenues start coming in, and they can start them up again until revenues fall off once more. Between times, the money will be in an interest-bearing checking account. Kufrin explained there�s a CDARs program for certificates of deposit to stay below the insured limit. We�re on a disbursement basis with the DCVB, so we won�t have large amounts; the risk goes to the DCVB then. What is the DCVB�s contingency plan and tools to ensure their safety?

The Finance Committee met with Associated on January 28 to look at the entire picture; details are in those minutes. Associated reassured the TZC about long-term viability; the bank is in much better shape than some. Associated brought up issues we hadn�t dealt with such as risk of ACH and check fraud. People can buy check stock easily; there�s an increase in fraud in the area. The Finance Committee voted to recommend to the Commission to spent $65/a month to protect against those; the modules are ACH Filter and Positive Pay. Lensert�s office and Kirkland will authorize individual checks. He recommends the Commission accept this to minimize risk. Neddersen moved and Goss seconded to accept the ACH Filter and Positive Pay additions.

Tice said the size of the FDIC insurance was discussed. Nelson said the FDIC is insuring up to $250,000 and Associated purchases additional insurance up to $1 million for any account earning less than 1/2%, which basically incentivizes keeping it at low yield. CDARs will break up big account into covered-size accounts. Kufrin said all the TZC Associated accounts are counted as a single account; however, Nelson said it can be broken up among institutions. Vande Castle said when it was $100,000, if it were below, you got paid out immediately; if it was at $100,000, payback would be 6 to 9 months. His client worked with CDARs at $99,000 each to avoid the long payback. Kufrin called the question. All ayes.

Kufrin said that Finance also talked about adding a $35 fee for NSF checks, which Associated said is typical. Vande Castle said we need to make it a formal resolution; it has come up into court issues. The court will want a certified copy of resolution for our authority. Kufrin said we�d consider it at next meeting.

Kufrin said as we�re evolving, the Treasurer is not specifically authorized to take action on closing the sweep account, although Nelson did so prudently. Some actions may need to take place between meetings. Discussion was that the Commission designates the Chair and Treasurer to jointly make changes in the banking relationship, to report to the Finance Committee, and ultimately the Commission, within 30 days. Associated requires documentation with Titles (not specific names), to allow this. Johnson moved to allow the Chair and Treasurer to jointly make decisions in a banking relationship, with the Commission being informed within 30 days. Weddig felt it should be 24 hours instead of 30 days. Larson asked about making it two out of three people due to availability issues. Kufrin said could amend to include Vice-Chair, two out of three. Goss moved and Stayton seconded that decisions about banking relationships be made any two amongst the Chair, Vice-Chair, and Treasurer and that any action be reported within five business days to Finance Committee. Benzshawel asked about if policy needs to be written out and then approved. Kufrin said if need to come back for NSF checks, we could bring this one back as well. Tice said if we changed banking policy, the Finance Committee could be notified within 24 hours and brought back to the Commission within 30 days or at next meeting. Kufrin said we need to promulgate rules/policies as they�re documented and voted on so there�s a record. If this should be written out more formally for a formal action, we should.

Larson took it broader and asked if we need an entire Finance Committee a set of procedures to be written out, formalized, voted on. Kufrin approved of the idea; the policy writing could be done over next few months to flesh out (some are already approved), but we can act next month on NSF and the procedure of who has powers Nelson noted that Associated is eager to get a document from decisions made at this meeting. Skare said financial situations have changed; it�s hard to do specific policies. He�d be more comfortable to be conservative and let policies evolve over time. In the meantime, be good custodians of the money. The entire policy can be written up and then amended. Johnson said if substantive resolutions come out of Committees, they should be written up in exact language. Tice added that the Executive Committee should be an overseer. Kufrin agreed about language of policies; the Committees have limited powers as delegated. Committees do ground work and come to the full Commission with minutes, discussion, and recommendations; no unilateral commitments have been made in his recollection.

Kufrin restates that the bank has asked for specific authorization regarding banking decisions. All in favor of calling question; all ayes. In favor, all ayes.

Consideration of Confirming Various Appointments to Committees
Kufrin stated the need for an Annual Meeting committee. Last year, it was Coulson and Weddig plus discussion by the Commission. Weddig noted that the planning was simple; Kirkland could set it up on her own with input. Kufrin said we do need recommendations on a location and date that can be voted on. Nelson said last year it was Tuesday after Memorial Day for second homeowners to come but there wasn�t any interest. Audit has to be submitted to the TZC by 1st or 2nd week of May (as stated in the audit proposal), time to print and mail. Can it be electronic? Kirkland said only 50% or so have e-mails. Kirkland will poll TZC members for recommendations and compile the list of locations and dates. Kufrin said it will be on next month�s agenda.

It has been recommended that a Compliance Committee be appointed to meet in closed session with Vande Castle when enforcement is needed. When done in full meeting, it�s difficult to manage confidentiality. Tice will chair the Compliance Committee to address nonpaying or non-permitted, then come with specific recommendations on what enforcement should occur. Also, we need a specific compliance policy; at this point, there�s nothing beyond the letter of the law and ordinance for fees and interest. It will be easier for Vande Castle to work in a smaller group. It was agreed by consensus that the Compliance Committee makes sense. Kufrin asked Tice as chair to seek out members interested in compliance and report at the March meeting to recommend members and give them a specific authorization to do. Nelson asked if we should amend Bylaws to authorize the Committees? The Bylaws do not address committees, just the Commission itself. Benzshawel felt if the Committee can take action on its own, closed session won�t be a confidentiality issue. Vande Castle felt that the TZC would need to change the Bylaws to authorize committees to act alone. However, his concern is if it�s appropriate for a Committee to authorize a lawsuit without the rest of the Commission knowing about it, perhaps even without the individual municipality Commissioner knowing. Perhaps there�s a mechanism to keep everyone involved but not fully involved. Kufrin will have a Mission Statement for this committee at March�s meeting.

The Finance Committee has been Neddersen, Coulson, Nelson, and Kufrin since fall 2007 and meets 4 to 5 times a year. They�d like to add Benzshawel to represent the City. Its primary task has been meeting with auditors and projecting income as well as doing a budget for consideration. Do we need to approve Committees by resolution? Vande Castle said we should.

The Executive Committee was authorized in the Bylaws because, as we get to 26 members, we need 14 present to conduct business. We may not always have a quorum but still need to conduct certain business such as paying bills. The Executive Committee is authorized to take any action the Commission can with the specific goal to conduct necessary business without a quorum; it�s not intended to meet outside that parameter. The Bylaws state it�s to be the officers plus one At-Large member but could be up to seven (i.e., 3 more people). What�s appropriate? Nelson moved that we authorize seven members: four officers plus three others to include one At-Large member. Stayton seconded. All ayes. Kufrin will come back with specific resolutions/committees next month. All volunteers step forward.

Consideration of Payables
Lensert noted that some of the checks issued are to take care of overpayments. Larson moved to approve; Goss seconded. All ayes.

New Business
Kufrin asked for New Business to add to the March agenda. He has discussed concerning Washington Island activities with Stayton. If there�s a topic the members want to see, such as severability clause, etc., let him know. Tice suggested a �communications or concerns of municipalities� on every agenda for 3 to 5 minutes to speak. Kufrin noted there are some concerns regarding individual performance and contractual relationships that need a closed session. (Goss left the meeting) (Stayton left the meeting) (Neddersen left the meeting)

Consider Motion to Convene into Closed Session pursuant to WI Statute 19.85(1)(a)(f) or (g)
Vande Castle said most actions can be handled in small claims court normally, including getting someone to comply with permitting. Circuit court is more complicated and expensive. In the context of enforcement, the TZC has the authority to audit at the property owner�s expense. The property owners should be aware that although we have confidentiality within the TZC, once a court is involved, it�s automatically public record by law. If we audit, that information could alert the IRS, Dept. of Revenue, and result in other complications for owners. The Commission has not audited to date. We would need to go to court for authority to audit, which is enforced by local police authorities. If the owner doesn�t comply, we go back to court for contempt of court. Likewise, if we find discrepancies, we take action on that; Kufrin noted instances where payments were submitted but not supporting information re: occupancy and availability. Ultimately, it was resolved before it went to that level. Vande Castle said if we go to court, we can recoup legal fees from the owner as well. For court costs, mall claims is about $150�$200; circuit court is about $300�$350. Kufrin moved and Tice seconded to go into closed session at 11:15 a.m. (LeClair left the meeting)

Open Session
Motion to come back into open session and take actions as recommended. Motion by Johnson. Larson seconded. Vande Castle is authorized to begin legal proceedings against Roger Rockwell (Dogg House and Outback Cottages), Maple Grove Motel LLC, and obtain court permission to audit Jon Hanson for his Nasewaupee Beach Harbor Resort property. All ayes.

Adjournment
Motion to adjourn by Nelson, seconded by Tice. All ayes. Meeting adjourned at 12:15 p.m.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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