Door County Tourism Zone Commission : Meeting Minutes

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June 17, 2010 Door County Tourism Zone Commission & Annual Meeting Minutes

DOOR COUNTY TOURISM ZONE COMMISSION
& Tourism Zone Commission Executive Committee
Minutes of June 17, 2010
Annual Meeting/Presentation of the Audit
Sister Bay Fire Station

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

Cyrus moved to accept the May 20, 2010, minutes as amended; LeClair seconded. Motion passed unanimously.

Nelson moved and Cyrus seconded to approve the Kerber Rose reports and payables. Motion passed unanimously.

Nominations for one-year officer positions are as follows:
Kufrin as Chair
Weddig as Vice-Chair
LeClair as Secretary
Nelson as Treasurer
Skare moved and Larson seconded to close nominations. Motion passed unanimously. Larson moved to approve the nominations as presented; Zacek seconded. Motion passed unanimously.

Kufrin moved and Nelson seconded to add Nancy Bertz as an At-Large Commissioner. Motion passed unanimously.

The proposed makeup of the combined Finance/Executive Committee is as follows: Kufrin, Weddig, Nelson, Skare, Starr, Larson, and Bertz. Kufrin moved and Larson seconded to approve the joint committee members as stated. Motion passed unanimously.

Committee Members Present by Roll Call: Bob Kufrin, Mary Boston, Richard Briggs, Pauline Cyrus, Sandy D�Amico, Dave Holtz, Diane Jacobson, Mike Johnson, Jeff Larson (9:15), Little Bit LeClair, Bryan Nelson, Dick Skare, Bob Starr, Chuck Tice, Bill Weddig, Nora Zacek

Excused: Debra Jeanquart, Mike Johnson, Jennifer Laughlin, Tom Olsen, Carol Stayton

Absent: Paul Flottman

Also in Attendance: Jack Moneypenny, Mary Denis, Jon Jarosh, Sally Everhardus, Bruce Hill/ Door County Visitor Bureau (DCVB); Mark Price/LifeQuest, Dianne Lensert/Kerber Rose & Assoc., Kathy Kirkland/TZC Administrative Assistant

Audience: Missy LeBelle/High Point Inn; Frank Forkert/Liberty Grove

Call to Order
Chair Bob Kufrin called the meeting to order at 9:08 a.m.

Welcome New Members
Kufrin introduced Bob Starr as the new commissioner for the City of Sturgeon Bay, replacing Tom Benzshawel. He has been in real estate and served in political office. All around the table introduced themselves.

Approval of the Agenda
Tice moved and Weddig seconded to approve the agenda as submitted. All ayes.

Presentation of the Tourism Zone Commission 2009 Annual Report
The presentation included a PowerPoint, attached and made part of these minutes. Kufrin started at pg 6, the Commission�s tasks and Mission Statement. He explained the beginnings of the Commission and the Mission Statement. The amount of information on the website has grown. The Tourism Zone is expecting to disburse $3.5 million this year; in 2009, it took in $3.062 million in room tax, of which approximately $2 million went to the DCVB and $900,000+ to the municipalities. Kufrin noted the municipal impact and noted that the Town of Forestville and Brussels do not have commission representation at this point. On the pie charts, the percent of lodging by type (hotel/motel, private, etc.) is in reverse to the number of units; that is, hotels/motels make up a much lower number of permits but a much higher number of units. Kufrin stated that the Zone intends to accomplish even more in 2010, and as we come closer to the end of the five-year commitment, we�re hoping to get early re-up from the municipalities. In addition, we�ll be adding credit card payment online sometime this month. We�ve had two compliance enforcement actions n circuit court and won them both. The Commission reviews both monthly and annually the DCVB�s effectiveness in marketing.

Jack Moneypenny presented the DCVB annual report. He noted that originally, all wondered what the room tax would do for Door County or if it would make a difference. He feels the room tax has offered the county, through the DCVB, an unprecedented opportunity to market throughout the Midwest. The DCVB put together a thoughtful communication/advertising plan including use of the media/electronic media. They have raised staff levels and how they present Door County to the country. There is an increase in organic users (someone who comes to the site and wants information) from 16,000 to about 200,000 at this point. Website users have grown. Journalists have made 17 trips so far, 173 travel writers, mostly niche travel journalists. Noise, an ad agency, was hired in 2009 to wrap all promotions and have a branding message that blends, not just shot gunning. Last year, tourism was able to hold flat while overall spending went down slightly. Davidson-Peterson did a 2009 Door County study showing, among other statistics, that tourism employs 7,563 full-time job equivalents. The national average is that a dollar turns over 3.6 times before it leaves a community; we easily match that. Explore the Door is on YouTube and the videos can be downloaded; this year, Jarosh took all those episodes (12 to 15 min) and broke them into shorter pieces. Group sales are beginning to pay off; there has not been a formal process in place before this. On the PowerPoint presentation, �contacts� are those coming from us to groups; �inquiries� are other direction. The DCVB put in place a meet-and-greet program at the Visitor Bureau, where the bus tourists get information on Door County and the DCVB gathers information from the group tour driver.

Advertising highlights in 2009 included Madden inserts were 500,000 to targeted ZIP codes, print/radio ads, AAA Living, continued eBrains support for the online, and Geiger for print publicity. There were many co-op marketing opportunities and new niche brochures. Regarding Community Marketing Fund (CMF) money, the first year of the program in 2009 was a bridge for Sturgeon Bay to find alternate funding as well as give extra marketing money to the municipalities. Bruce Hill has been explaining to municipalities how to use the money. We�re now in Year 2, and Year 3 (2011) is the last year, although we may go into a new phase. The ad value equivalency (AVE) has gone from $904,000 to $1.1 mil, impressions from 11 million to 15 million. After analyzing the �fam� trip program and how to diversify funds, visiting journalists were brought on fewer press trips, but we still had 12 to 15 quality journalists on each trip. The DCVB hosted four seasonal trips, and the return on investment (ROI) was 292% in AVE.

Media monitoring: Geiger is driving visitors to the county and Cision is monitoring the media results. The measurement criteria moved from AVE to �publicity value,� which is calculated differently. The Welcome Center had 45,000 people go through in 2009 and the lobby has been refurbished. May 2010 alone went up by 2,000 people. Looking ahead: �Noise� is a smaller agency, which is to our benefit. Their people always go the extra mile. They developed the branding catchphrase, �Your stories. Our setting. Like nowhere else,� which is starting to resonate. We�re now able to spend money doing some B-roll footage to develop short videos for the web or TV, etc., who request B-roll. The DCVB stuck close to game plan except for adding National Tourism Week in May, which included an 8-page booklet sent to all Door County residents and communities. Kufrin asked about social networking. Look for �Door County Scrapbook� on Facebook and sign up to be a �fan� (more than 2,000 now); the ad agency manages those. For Twitter, it�s �Door County.� Threads of conversations are emerging, including homage to Al Johnson this week.

Weddig asked about a counter on the highway from the DOT. Moneypenny said they counters have been there forever and stats are collected every month. They can furnish those numbers to people but it�s unscientific: Are the cars local? Visitors? How many people in each car? The formula was developed by Tom Lyons to estimate total number of visitors based on car count. Moneypenny added that the new member website will be up soon; there are statistics on that site. Weddig is interested in day tripper figures. Also, the figure of $430.5 million from Davidson-Peterson; he was under the impression it included local/state taxes but tourists spent $488 million. Moneypenny said it�s �economic impact� and �visitor expenditures.� Davidson-Peterson surveyed 67% of lodging properties last year; this year, 68% answered and 50% overlapped. Davidson-Peterson will gladly tell us to the penny at a cost of $150,000-$200,000, but the DCVB won�t do that. Weddig asked if we took in $3 million in room tax, was WI State tax also $3 million? Moneypenny said the WI State figure includes more, such as property taxes, not just sales or room tax. It�s only a barometer. Our own tax collections figures are the best barometer. Kufrin said if there were $160 million of resident income and that generated 10% income taxes, that�s $16 mil, which would be part of the $58 mil.

Approval of May 20, 2010, Minutes
LeClair noted on pg 3 line 3 there should be a �be� at end, and Nelson noted that on pg 3 line 12, we should spell out Good Morning America. Cyrus moved to accept the minutes as amended; LeClair seconded. All ayes.

Administrative Assistant Report
Kirkland noted that the Audit and Management Letter was either e-mailed or snail mailed to all permit holders at a cost of $148. Both are posted on the website and went to the municipalities, and the PowerPoint presentation will also be posted/sent. The late fees and penalties have stayed nearly static from last month, with one more property adding to the largest percentage of money owed (three properties account for 71% of lates/penalties right now). As the season brings in more money, it is hoped that people will pay off their debt. Hanson has not paid anything in months, and Maple Grove has been late on one month�s filing in 2010. Of the five properties given to Vande Castle for follow-up in April, Vande Castle states there has been no reply or movement from any of them. Second and Third notices are being sent on a monthly basis. She sent a note to the Gullhaven/Fish Creek owners acknowledging their fire; they�re to let her know when they can rent again. There are currently 904 active permit holders and several on the radar as renting but not yet permitted.

Report on Marketing Efforts by the Door County Visitors Bureau
Moneypenny recalled the request two months ago to go through the DCVB budget and detail out the split between DCVB and membership funds. He handed out reports. Utilities and salaries are split 70/30 between DCVB/membership. The percentage of administrative budget went from 70/30 to 34% for marketing and 66% membership. The second page of the split is done by square feet. With the Visitors Center, utilities, etc., the math shows it could be 77.7% to marketing, but to be fair and equitable, it is 70/30. Kufrin said when you see the DCVB budget presentation in the fall, these percentages are used in how they prepare the budget. Now is the time to ask Jack any questions so he can build his budget correctly. Moneypenny said under publications, staff time, etc., the Visitor Guide is largest guide, and it�s all paid by membership dues, even though they could make a case for marketing dollars. He would be glad to explain any changes at budget time. Nelson asked about pg 2, line 2, what�s Membership E&P; it�s entertainment and promotion expense. Larson asked about the percentage of marketing. Moneypenny said it�s whatever touches the consumer (including $300,000 CMF); 68 cents of every dollar touches a potential consumer. Larson asked if marketing expenses were part of that. Moneypenny said �no� because staff doesn�t touch the consumer. He feels they�re being good stewards of the money and making a bigger impact. Weddig asked about interest income under membership; $22,000 what is that? Moneypenny says it�s rolled in together whether interest or other sales. Kufrin asked for a motion to formally concur with his percentage allocations. Weddig moves to accept the DCVB percentages as shown; Nelson seconded. All ayes. Tice asked about total employment. Moneypenny stated they employ 13.25 people; the figure hasn�t changed.

Mary Denis talked about the monthly report. Marketing and communication: YTD we�re up 255,000 more web visits than last year. Unique visits are up, as are Visitor Center visits in May. Everything is starting to work. Denis stated they�re getting interest from wedding planners; she attended a wedding show in January and they have a new niche brochure. Festival of Blossoms had more than 400,000 impressions and 38,000 opt-ins from hotels. Facebook had 2,000 people and is picking up. Weddig asked if the DCVB saw any spike from the White Gull�s Best Breakfast win on Good Morning America. Jarosh said in publicity value, Good Morning America was worth $300,000; Nielsen shows 4 million viewers per day. It was the same weekend as Madden newspaper drop; web increase almost doubled for a few days, and it was hard to tell which publicity caused what part of the spike. Kufrin asked about the Top 10 referring sites, with No. 9 being TravelWisconsin.com (State�s website); it seems lower than the others. Is that typical in the industry that people don�t look at the overall state? Denis said if they know the destination, they go right to it. Kufrin noted that page 3, advertising programs and campaigns, most reports are number comparisons; perhaps this should be more narrative than numbers. Moneypenny added that all member newsletters are online and available. Nelson asked if they�ve invested less in pay-per-click? It�s down. Denis said �no�; they just started it later, after the web redesign.
Jarosh said the first press tour starts this Sunday, with 17 coming up through Thursday, then peak-season break and start tours again in September and October. Kufrin said there was a State Administrators conference in Sturgeon Bay, and he contacted DCVB to send out the Visitors Guide to all members, Jack gave talk about visiting the county, and someone was at registration to help arrange restaurants and talk about what to do. The DCVB was helpful in providing information to the conference members (150 to 180 people); he got positive feedback. If you have an event, ask the DCVB for that type of assistance; it�s partly paid by room tax dollars. Moneypenny wants to do dine-arounds and on-site information. Skare noted a Restaurant Association meeting up here in a couple of weeks; Moneypenny hasn�t been contacted but will follow up.

Presentation of LifeQuest Collection Process by Mark Price
Mark Price gave a presentation. The company started as EMT/ambulance/fire billing. The current owner, Jerry Miller, saw the need for a billing service, and it has been steadily growing. LifeQuest is a licensed collection agency in WI, IL, IA, TX, FL, IN, PA, and SC, and they do municipal collections. They�ve been doing the Tax Refund Intercept (TRIP) program for six years. They�re considered a �soft collections� company, and they provide every opportunity to pay the bill. They have their own IT department, which designs programs to keep schedules on time. There�s a need contact debtors on a regular basis. From what the TZC has told them, we�re looking at collection only, not billing. Phase 2 of collection has to follow State rules and federal regulations, and there are several laws they have to follow. When accounts come to them, they send out a �dunning notice,� a letter to the debt holder that gives them 30 days to pay or deny the debt. That first billing is under the Tourism Zone letterhead but states �billed by LifeQuest.� LifeQuest must wait 30 days before it can continue unless the debt holder contacts them earlier. LifeQuest can also set up a payment program, which would remain in Phase 2. They skip-trace people we can�t find. The debt holder is entered into the TRIP program after the first 30 days; TRIP is a refund intercept that established a lien against tax refunds (only for WI residents and those who file taxes in WI). The debt holder receives a letter stating that tax refunds will be taken for the debt; at that point, nearly half the debt holders pay the debt rather than lose their refunds through TRIP. Of the tax refunds, child support debt is paid first; if any debt is owed to municipalities, that comes next. LifeQuest retains 33% of any money collected in Phase 2.
Phase 3: If LifeQuest hasn�t heard from the debt holder after the first notice, they send out collection notices every 27 to 30 days. Price provided samples of collection notices; each steps it up a bit. Now the bills are from �LifeQuest, A Collection Agency.� LifeQuest can tag their credit reports. Starr asked if collection automatically affects credit. Price said the debt holder has to validate the debt first; at that point, they tag credit. The debt holder is placed in an automatic dialer and has a live agent work the account. All phone calls are recorded, and we can get digital recording if we want one. Every call is answered by a live person. The debt holder is still getting a bill and being called every 13 to 14 days at legal hours (9-9 M-Th, Fri 9-5:30. Sat 9-1:30. No Sundays). LifeQuest retains 50% of money collected in Phase 3. LifeQuest quoted 33% in Phase 2 and 50% in Phase 3, but it would go lower if they also do billing, and the owner could negotiate for a longer term.

All money collected is sent to LifeQuest, which sets up an account at Hometown Bank in the Tourism Zone�s name. On a monthly basis (can be more often), The Zone gets an online statement and can call to transfer to our local account at any time. LifeQuest offers the debt holder different ways to pay: check, check by phone, credit card (some fee). There are hardship discounts (used more for health care). We can change our options in the future. Kirkland asked about the statute of limitations. LifeQuest said if it�s past due or never paid; the statute of limitations is six years from the last contact with the debtor. Kirkland asked about a minimum due; is there a point at which LifeQuest feels it�s not worth it? LifeQuest said they try to collect a minimum of $30 for a payment plan/month. If the Tourism Zone has 20 people owing just $20, they�ll attempt to collect. Kirkland can send the bills in an Excel spreadsheet format or through a secure FTP site. LifeQuest is bonded and licensed, and they have video cameras in all parts of their building.

To be able to TRIP someone, we have to have either a driver�s license number or Social Security number [NOTE: or the State FEIN number, Price later added after talking to the State]. Kufrin said if we have cause, we can talk to the sheriff about running the names/addresses. Price said municipalities have more leeway to get them; however, we do act on tax collection on behalf of the municipalities. Perhaps we should make the driver�s license number part of the permit. Weddig asked if we don�t get a room tax report, can we estimate the tax owed and begin collections. Price noted that the first �dunning� notice is for validation, so we can do an estimated bill. Price recommends it, and the debt holder has a chance to reply, �I don�t owe $X, I owe only this much: $X.� LifeQuest needs to know how we came up with the estimate and will send it to the debt holder. Kirkland said it would be a combination of any past room tax the permit holder had paid or a �comp� of like properties in the permit holder�s municipality.

Kufrin asked if the debt holders stay on TRIP list beyond the first year. Price said �yes,� the State keeps them on there. Kufrin noted that a husband and wife could file; what happens then? Price said if they�re both listed as property owners, they can go after both tax accounts. If the property is listed as a corporation or trust, it�s more difficult to TRIP. He would have to research that. Weddig asked if TRIP starts going after someone, would The Zone we know about it? Yes, we would be noticed on that right away. Tice asked if LifeQuest can garnish wages. Price said they do not have a way to do that and don�t recommend small claims because it�s not worth it for $500 to $800 with legal fees, etc. The ROI is not worth it. The Zone can take back accounts if we want or ask for any accounts over $X, etc., if we want to pursue them legally. Weddig asked if LifeQuest doesn�t collect anything is there any fee? Price: No. Starr asked if LifeQuest has $affiliated with entities similar to ours. Yes, municipalities, but not tax collection such as the Tourism Zone. Nelson felt that, in the overview, this is probably something we should do; in the scope of collections, we may not use LifeQuest that often. Is there an upfront cost? Price said the startup fee has been waived. There�s no charge to establish a bank account; it�d be in our name, an FBO account. Skare asked what the contract length is. Price said it�s a one-year contract, and he can send us a draft; contracts are negotiable. If we don�t want to renew, they require 180-days� notice.

Moneypenny asked if the debt holder talks about hitting credit report. Price said it happens without their knowing it. LifeQuest also add interest on accounts, a tool to get someone to pay the debt: �will waive interest if pay in full today.� Tice asked if LifeQuest handles all bargaining. Price said the Tourism Zone gives LifeQuest the authority about what kind of settlements we�re willing to accept, set up payment programs, etc. There�s a start-up book in which we have to answer a lot of questions as to what we�ll accept and the procedures; it can be customized. Kufrin said that consensus was that the Executive/Finance Committee look at contract in July, discuss with Vande Castle, and then come back to the Commission in August to finalize.

Consideration of Approving Reports and Payables plus Receipts to Date
Lensert stated that April is up 9.9% against last year, which is encouraging. YTD is up 9.3%. For Profit & Loss budgeting we expected to be -$37,000 and we�re -$34,000, so it�s better than expected. Regarding website upgrades, Bay Lake Systems states that the password function is in flux. Part of the challenge is trying to keep the password out of our database so it�s totally private. Kirkland mentioned a call from an agent with 17 properties, and online submissions required 393 different fields to fill in; she suggested to Bay Lake that they add as much �auto fill� as possible on the submission form. When will online pay begin? Kufrin would like to see it by the end of the month; Lensert reminded that most online payers are year-round, so we don�t need to think of it in seasonal terms. Kirkland will fax the signed Official Payments bank information today; things should move ahead quickly. Nelson moved and Cyrus seconded to approve the Kerber Rose reports and payables.

Discussion of Specific Enforcement Actions before the Door County Circuit Court
No response from anyone, according to Kirkland and Vande Castle.

Report from the Nominating Committee
Weddig said the Committee�s response was less than enthusiastic. Kufrin has agreed to take another year with the reduced schedule as Chair. Applause for Kufrin. Weddig nominated himself to be Vice-Chair; LeClair is willing to re-up as Secretary, as is Nelson as Treasurer. Skare moved to close nominations; Larson seconded. All ayes. Larson moved to accept the nominations as presented; Zacek seconded. All ayes.

Kufrin reminded that the Commission moved last month to meet in the even-numbered months. He�s pleased that the City of Sturgeon Bay appointed Bob Starr, a valuable connection along with Holtz. Steve McNeil looking for at-large member to represent their interests. It�s important that the Common Council and business communities feel their interests are represented vis-a-vis collections. Kufrin nominated Nancy Bertz to fill the second necessary At-Large commissioner seat. She is general manager/co-owner of Stone Harbor Resort and on the SBVB board of directors. She brings a different perspective as a large hotel owner that has convention facilities. Nelson seconded. All ayes.

In combining the two committees�Finance and Executive�Kufrin would like to see the following: Kufrin, Weddig, Nelson, Skare, Starr, Larson, and Bertz. Weddig asked if all the meetings would be at Kerber Rose. Kufrin said because of the municipalities expecting their checks on a regular schedule, the date or at least week (third Thursday or week) will remain the same; the location could change and the time could be afternoon instead of morning. Moneypenny asked if they should still send a monthly report and if all will still get a monthly packet. Kufrin said yes. Moneypenny said if anyone has questions in odd-month meeting packets, give him a call. Nelson wants to work toward becoming digital so he can just bring his laptop with him. It saves on paper and mailing costs. If someone wants meeting packet materials digitally and not paper, let Kirkland know. Kufrin moved and Larson seconded to approve the joint committee members as stated. All ayes.

The Commissioners applauded Tice for serving as Vice-Chair the years as well as his work on the Intergovernmental Agreement, Bylaws, and as Chair of the Compliance Committee. He has brought the local municipality perspective to the Commission. Cyrus noted that Gardner will not do a resolution to re-up for the Tourism Zone beyond 2011 but that is the municipality�s intention.

Adjournment
Larson moved to adjourn. Boston seconded. All ayes. The meeting adjourned at 12:15 p.m.

July Meeting
The July 15 meeting will be Finance/Executive Committee, possibly at the Kerber Rose offices in Sister Bay; final venue and time TBD. The August 19 Commission meeting will be at the City of Sturgeon Bay�s Community Room.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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