Door County Tourism Zone Commission : Meeting Minutes

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July 17, 2008 Door County Tourism Zone Commission Meeting

MINUTES OF THE JULY 17, 2008, MEETING

Commissioners Present by Roll Call: Mary Boston, Andy Coulson, Diane Jacobson, Bob Kufrin, Jeff Larson, Craig Neddersen, Bryan Nelson, Dick Skare, Carol Stayton, Chuck Tice, and Bill Weddig. Nancy Goss, Amy McClelland, and Nora Zacek arrived at 9:10 a.m. Little Bit LeClair arrived at 9:20 a.m.

Excused: Theresa Shepherd

Also Present: Dianne Lensert, Kerber Rose; Jack Moneypenny, Jon Jarosh, and Mary Denis, Door County Visitor Bureau; John Lowry.

Call to Order: Chairperson Kufrin called the meeting to order at 9:05 a.m. at the Ephraim Village Hall. Roll was called to establish attendance.

Approval of Agenda: Nelson moved to approve the agenda as submitted, Tice seconded. All ayes.

Approval of Minutes: It was noted June 19, 2008, minutes, pg 1/line 32 �Gardner� is misspelled; on pg 2/line 31, �Mary�s efforts� should be explained; Stayton�s name is misspelled on pg 5, and it should be noted why �Goss left the meeting.� Stayton moved and Nelson seconded to approve the minutes as amended. All ayes. For July 9, 2008, minutes of the Financial Committee, Kufrin asked for questions from those who attended. There were none. Kufrin moved and Nelson seconded to approve the minutes as submitted. All ayes.

Door County Visitor Bureau Budget
Consideration of the motion to reconsider the approval of the Door County Visitor Bureau (DCVB) five-month budget through December 2008: Kufrin explained that a motion for reconsideration must take place at the next possible Commission meeting; if approved, it renders null and void the first action; in this case, deliberation on the DCVB budget would start again. If the motion for reconsideration doesn�t pass, the Commission�s earlier action remains in effect.

Stayton moved and Tice seconded to reconsider the DCVB budget approval. Neddersen noted that anyone asking for reconsideration must have voted with the majority on the initial action, as Stayton did. Coulson said the July 9 Finance Committee meeting was nearly two hours of discussion, including a call to Moneypenny for verification, and that the Committee was comfortable with the projections. Anecdotal evidence aside, the figures are accurate. Coulson is against reconsidering the budget approval.

Nelson, who also attended the July 9 meeting, agreed. The May 2008 figures show that the year is a little better than budget. The Committee reexamined both TZC and DCVB budgets and the Committee voted to recommend to the full Commission against reconsidering the DCVB budget.

Stayton said her motion was more about how the process took place, hastily done. The Commission got the DCVB budget the same day as the meeting when it should have been looked at by the Finance Committee before the Commission saw it. At that time, we didn�t have numbers to go against. Our two organizations are still in the early stages of partnership; she didn�t want the DCVB to find out in December that we were having cash flow problems.

Neddersen felt the Finance Committee should bring a dollar figure that the DCVB to use for their budget. Stayton agreed the organizations should be on parallel courses; the DCVB has a rhythm and a path, but we need to be fiscally responsible.

Kufrin said part of the discussion was to ensure that the Commission is driving the dollars, not the DCVB. If we�re off the estimate, we�ll deal with it later. The Finance Committee also discussed getting budget information in a timely fashion to review numbers/projects and prepares estimates, then make recommendations to the full Commission, whose members would have also studied the materials.

Moneypenny said he needs to present a three-year strategic planning budget to his executive committee in August, then the board in October. He needs the 2009 TZC budget by next week. Kufrin said the Commission won�t have good summer numbers until October/November. Given that it�s a three-year plan, numbers we give now could be off by 50% three years out. He felt the DCVB could work on strategic vision, plans, and how to measure objectives�those activities can happen based on any numbers. The DCVB should plan, and then later apportion the dollars against the plan. Larson felt the DCVB has to use numbers because marketing strategies need money figures for TV ads, Geiger, and so on. The DCVB put everything on hold for a month due to the reconsideration, handcuffing the DCVB�s work; Kufrin wasn�t sure putting a hold had been necessary.

Coulson reminded there�s a motion on the floor to reconsider the budget approval. Stayton felt it would be responsible for her to withdraw her motion to reconsider. Tice withdrew his second. Kufrin said the motion to reconsider disappears.

DCVB Budget Proposal Timing: Nelson that the Finance Committee passed a motion to recommend that the DCVB have hard copies, as well as supporting documentation, in the hands of the Finance Committee by the 1st of the month of the full Commission meeting to vote on the DCVB budget. Nelson similarly moved in this meeting and Stayton seconded. Tice said the budget should be given to all Commission members at the same time so they can bring up questions to the Finance Committee. Moneypenny is concerned if the TZC knows figures in October/November, the DCVB budget proposal would be December 1. Kufrin said the Finance Committee could meet in early September to review June/July numbers. Unlike a municipality, we can�t set a tax rate and know how much is coming; it�s all projection. He urged Moneypenny to identify vision/programs and measurement of success before the concrete numbers in October. Neddersen felt we could supply numbers in September based on June/July; innkeepers will know how the season is going. There might need to be more contingency in the budget.

Stayton said we don�t want to repeat past missteps. August and September TZC meetings have to be productive in figuring what both entities need. When the budget was approved in June, it was all in good faith. We need to keep the rhythm until we have more of a history. The DCVB is our quarterback. Moneypenny replied that we take a leap of faith together and make it work.

Stayton felt her motion to reconsider brought about these good plans. Coulson said there�s an impact of a request like Carol�s on the DCVB; in effect, the DCVB should not have felt worried and should have gone ahead; if we had passed reconsideration, Moneypenny could then look at what he could change and contractual plans that he couldn�t. That there are commitments even prior to budgets being made; e.g., if an opportunity like Midwest Living comes up now and needs approval prior to budget, take it, and we can revise as we go. Coulson felt the DCVB should start developing a budget; if we call in September and say there�s a 3% decrease, Moneypenny hits the �3% decrease� key; if it goes to 10% increase, he can hit that key.

Kufrin called the question. All ayes.

Neddersen added that the Commission should understand that Moneypenny will come to the meeting and present the budget, and we�ll should expect to act on it at the same meeting. Kufrin said if the numbers in September look good, we�d go to the Commission at the September meeting and say, �Here�s the number we�re giving to the DCVB.� By October 1, we�d get a DCVB budget proposal. Nelson asked if we could push the DCVB back to November. Moneypenny said it has to go through his executive committee and the board, which would be in September. Kufrin said if we commit best guesses by the September meeting, then Moneypenny can decide the best date as a function of his own meeting schedule, whether October 1 or November 1. Moneypenny agreed.

REPORT BY DOOR COUNTY VISITOR BUREAU
New Figures in Report: Jarosh said there were a few questions in June that are added to this report: an in-kind projection and a monthly report of the meetings salesperson, Mary Denis. The ROI has been incorporated into the overall Geiger summary page.

E-Brains: Kufrin asked about E-Brains� original presentation; there was discussion on financial impact measurable for their efforts. At what point does that measurement occur? Jarosh explained there are two conversion studies; one is finished, the other starts in September. Based on the contract, we were guaranteed $22 million of travel to the county based on E-Brain�s activities. If they hit the mark, great; if not, E-Brains will continue services at no charge until they reach $22 million. Kufrin asked if they�ll be in time for budget approval, because if they perform, we�ll want to keep the relationship going; however, if it�s lower, free services may be less than useful and we may want to do something different. Moneypenny said he�ll make sure the formula is presented along with findings. Moneypenny proposes that E-Brains give their �year in review� at the October TZC meeting.

Room Tax Collection Summary Statistics: Neddersen noted a Commission Room Tax Collection Summary by municipality, and it shows good statistics. Should the DCVB do more in-depth reports as part of their work: bar graphs, etc., or should the Commission? Moneypenny said the DCVB would be able to have some stats by the second Wednesday of the month; however, Kufrin stated that he has asked Kirkland to create performance measurements independent of the DCVB. We should be measuring and stand or fall on the numbers and interpret our own indicators.

Geiger and Travel Writers: Stayton asked Jarosh about Geiger. There have been 96 travel writers lodged and entertained. The in-kind value adds to the cost. She may be missing some reports but listed writers and articles and came up with only one-third of the writers who�ve generated articles. Who would contract with someone producing only a third of what we�re paying for? Jarosh explained there�s a lag period between when a writer�s here and actual publication; anything from a couple months to a couple years; e.g., the winter tour people would�ve have had time to publish with the lead time on publications; it will be next winter year before their articles are in print. Freelancers pitch stories as they go. There�s no hard and fast way to compare the number of writers to the number of articles. Stayton wants to ensure that the dog-and-pony shows are kept to a minimum. She was told by Tracy that there�s no way to measure productivity but that. after five years, they write them off as being unproductive. Jarosh said with the 22 writers here since Sunday, Tracy can�t predict when articles are going to run; there are too many factors. Her report was based on previous trips and when articles hit. Letters are sent out to follow up with writers. Larson said you don�t know which guests might return and writers are the same; you have to treat them equally. That�s just marketing; put faith into the process.

Coulson added that dealing with Geiger and E-Brains, they�ll give us benchmarks based on their own interests. When putting together a budget, we need to generate our own numbers. If Geiger gets just 1% published but it�s targeted right, they�re doing the job; if 100% of the writers publish and occupancy is going down, we need to spend our money elsewhere. We have to look statewide to see if we�re spending money correctly. If we�re 3% down but the state is down 18%, we�re doing well with marketing.
Ultimately, it�ll be occupancy and room tax versus the state�s figures. Stayon said Coulson is correct; the goal is heads in beds, not just to bring day traffic. Murtaugh had predicted day traffic would increase first, but we can�t ignore heads in beds. She suggests there�s a red flag when only one-third of the writers are producing, and some are from six to nine months ago. Jarosh said the Commission should also hear a formal presentation from Geiger.

Moneypenny stated that he has been asked to go before the County Board to talk about the first year�s results; Forestville and other municipalities are asking him for time in front of Joint Boards to support the DCVB and that we may get more municipalities onboard. Commission members are invited to join him.

Administrative Assistant Report: Kirkland said the website design search was ongoing. We�re not obligated to advertise because of the budget, but we do have to ask for proposals and open them at one time, choosing the lowest credible bid. Skare felt we must consider website quality as well as money. Kufrin said he wanted all member municipalities to recommend their own web designers. Kirkland said the same names are coming up, and proposals will be ready by the August meeting. Since her written report, two more municipalities have signed the Agreements/Bylaws. There have been 20 new permits issued since June�s meeting, the majority being single cabins/condos (27 units). A Meadow Ridge timeshare owner was confused by the room tax; Meadow Ridge said they would appreciate a short TZC article for the Meadow Ridge newsletter on owner responsibilities.

Intergovernmental Agreements and Bylaws: Kufrin reported 10 out of 12 municipalities have now signed, representing more than the two-thirds needed. Goss said Liberty Grove has them tabled for review. No one has heard about Gardner. Kufrin said that, as of today�s meeting, we officially have new Intergovernmental Agreement and Bylaws. He will print new copies and send to all members and communities, stating that they�re approved and in effect.
He noted that compensation for mileage is now 58.5 cents, the federal rate, starting today. With the high cost of travel for Stayton, we pay her ferry expense and have also compensated for overnight stay if needed. LeClair said some in Jacksonport felt the reimbursement was �loosey-goosey� even though extra expenses are understood. Tice said the rules are that any reasonable expense can be reimbursed. Kufrin said members should e-mail to Kirkland showing meetings/miles for reimbursement.

Bonding for Officers: Kirkland contacted our current insurance company for bid ideas. We�re at a $50,000 bond; Tice said we can drop down to $25,000 but Kufrin noted that the Agreement reflects �not less than $50,000.� Nelson feels the two-year deal makes sense as well as bonding the title rather than the person. Kufrin said it�s currently $700 for each per year; the new rate would be about $373/year for all four bonds. Weddig moved and Nelson seconded to pursue Ohio Casualty for four bonds for two years. No discussion. All ayes.

Approving Reports and Payables plus Receipts to Date: Kufrin asked for questions on payables, receipts to date. None. Nelson moved and Stayton seconded to approve the Kerber Rose reports as submitted. All ayes.

Closed Session: At 10:10 a.m., Kufrin moved and Larson seconded to go into Closed Session pursuant to Wisconsin State Statues, Section 19.85(1)(a)(f) or (g) to consider enforcement action against certain businesses regarding the room tax permitting, late payments, and reporting. The Commission was polled: Larson, LeClair, McClelland, Skare, Coulson, Neddersen, Goss, Jacobson, Boston, Weddig, Stayton, Nelson, Tice, and Kufrin�all ayes.

[CLOSED SESSION]
The Commission came back into open session at 10:18 a.m. Nelson moved and Boston seconded to authorize our attorney, William Vande Castle, to file a suit against Sand Bay Resort & Suites, Ltd. for monies owed and also to successfully recover legal expenses from the defendant. No further discussion. All ayes.

Tice noted that September is on Washington Island. At the August meeting, we�d poll who will attend. We can carpool to Northport and then will have transportation on the Island, depending on the number of people. Kufrin said some talked about going overnight. Skare asked if it would still be a morning meeting; yes, it would.

Nelson said that we�re all aware that Sturgeon Bay voted to table joining the Tourism Zone for a year; however, his own detailed and anonymous discussion with a council member conveyed there�s no way it�ll remain on the table that long; hopefully before the next couple of months. Tice noted two articles in the Advocate; it was tabled for a year, the next stating they didn�t have the authority to do that because the agenda said �consideration.�

Nelson moved and Tice seconded to adjourn. All ayes. The meeting adjourned at 10:25 a.m.

Respectfully submitted,

Kathy Kirkland

Administrative Assistant

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