Door County Tourism Zone Commission : Meeting Minutes

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June 7, 2007 Door County Tourism Zone Commission Meeting

DOOR COUNTY TOURISM ZONE COMMISSION
MEETING MINUTES
Thursday June 7, 2007
Egg Harbor Town Hall

A regularly scheduled meeting of the Door County Tourism Zone Commission was called to order at 9:04 Am, on Thursday, June 7, 2007 by Bruce Hill. Bruce filled in for Robert Kufrin who was unavailable.

The following were present:
Charlie Most
Bill Weddig
Jim Sarkis
Paul Georgia
Bruce Hill
Bryan Nelson
Craig Neddersen
Andy Coulson
Chuck Tice
Patti Taylor
Barbara Lautenbach
Sally Everhardus
Jon Jarosh
Karen Raymore
Nancy Fisher
Randy Nesbitt

There were no minutes to report from last week, and nobody had any comments or correspondence.

Agenda
A motion was made by Charlie Most to approve the agenda. The motion was seconded by Patti Taylor. All voted in favor of the motion to approve the agenda. All Ayes no Nays

Operations and Issues
Bruce asked since Dianne is not here today if anyone else had any operational issues.

Nothing was given to Paul Georgia to report. We got the Bank Account open. Paul signed a signature card, as well as Bob and Diane. Charlie Most raised the issue/concern as to why Diane Lensert is an authorized check signer. Paul Georgia indicated that he had also raised the concern that allowing Dianne to be an authorized check signor could pose some operational issues. One of the issues is that there is not a proper separation of related organizational functions since Dianne already handles a number of the operational responsibilities. Bruce indicated that we should not be discussing that until we get to Item #5 on the agenda. So this issue was tabled until later in the meeting to maintain proper order.

Bruce Hill asked if everyone received the spreadsheet on Non-permitted businesses.

Spreadsheet on Non-Permitted Businesses
Have a discussion with our town chairs since they are local ordinances. Craig Neddersen indicated that we are in the compliance business, and Charlie indicated that this is part of the intergovernmental agreement. Bill Weddig had some concerns about enforcement and deferred to the Commission attorney Randy Nesbitt. Bruce indicated that we are merely required to notify them of the ordinances

The Non-permitted List Copies were given previously to everybody discussions open. It is in our general agreement that we will handle the businesses that are not in compliance with the ordinance. It is a good idea to go back to the municipalities with the permits and a list of businesses who are not complying with the ordinance. Maybe to the clerks, before we start doing nasty threats to people. There were also some legal questions brought up regarding notices to the businesses that are not in compliance. It was decided that maybe that would be a good question for Randy Nesbitt to address a little later on in the meeting so as to maintain proper order.

Bills to be Paid
Bruce asked Paul if we had any bills to be paid. Paul only has one bill for insurance that needs to be paid the amount is $2,200.00 and it is for the bonding. Motion was made by Bruce Hill Seconded by Bryan Nelson to pay the bill for insurance. All voted in favor of this motion. The motion carried.

Permit Listing
Dianne sent everyone a listing of the non-permitted business. The commission had discussions on enforcement of businesses who failed to obtain a permit. Bryan Nelson inquired as to how he would know who permits were issued to. There is a column on the far right indicating if a permit had been issued.

Discussions were open. There were numerous questions and concerns brought up.

Each municipality adopted at a different time, there is some enforcement issues. We need to give a reasonable time for them to comply. We definitely need in the letter that on May 1, 2007 you were sent a packet of information to apply for a permit, if you have not this is a friendly reminder that you need to apply for your permit. We need to give them some time to apply before we start fining them. If you no longer own the property please notify the commission.

The business owners have a double whammy going on; they have the Department of Revenue to worry about as well as the Tourism Zone Commission. If the state cannot fine them, then we cannot either. Randy Nesbitt discussed the enforcement issues, and whether or not they are beneficial at times from a cost-benefit perspective. We have the right to audit businesses books, if they are not reporting, under reporting.

Randy indicated that when these room tax ordinances were setup they did not give the room tax agencies the powers that they need for enforcement. Bruce mentioned that the more difficult task for the commission will be the fraud issue. Randy indicated that the enforcement agencies can only handle so much. It is difficult for the tax commissions to come along without the same powers that the Department of Revenue and other agencies have to encourage businesses to get in compliance. The commission for example cannot issue tax warrants or what not and the only real authority that they have is to take the businesses to district court.

Motion was made by Charlie Most seconded by Chuck Tice that Randy Nesbitt draft up a letter to send to businesses that may not be in compliance. Content of the letter would be for the group of businesses that have gotten information that have not applied for the permit. Permit Compliance and Tax Compliance. The motion carried with everyone voting in favor. Randy Nesbitt will draft a letter and the commission will review the letter and approve it prior to it being sent out. Charlie and Bruce indicated that we should get this letter out to get people into compliance. In order to offer for rent, these businesses must have a permit. The intergovernmental agreement provides that the cost of compliance comes off of the top of the room tax dollars collected. The cost of compliance is paid for prior to municipalities getting their 30 percent or the bureau getting their cut. Randy indicated that compliance enforcement has been minimal.

Consideration of Depository Resolution
Charlie Most inquired as to what motivated the decision for Dianne to be a signer? Is she ever going to be handling the bills? Patti indicated that businesses do not allow this lack of control to exist. Paul Georgia mentioned that we must have a system of checks and balances in place that separate these related organizational functions.

A motion was made by Charlie Most seconded by Bruce Hill to accept the depository resolution subject to taking/striking Dianne Lensert from check signing authority. Amendment was made that Dianne Lensert be removed as signer. All voted in favor yes. Nays (no�s) were zero.

Charlie mentioned that we should notify Robert Kufrin that the Tourism Zone Commission Entity Agreement should not be signed until Randy Nesbitt changes the remedy in Item #8 relative to conflict resolution clause. Charlie indicated that he would notify Bob.

With no further items on the agenda Bruce Hill made a motion to adjourn the meeting seconded by Bryan Nelson to adjourn the meeting. The motion carried to adjourn the meeting. All voted in favor yes. Nays (no�s) were zero. The meeting was adjourned at approximately 10:00 a.m.

Respectfully submitted,

Paul J. Georgia
Secretary/Treasurer

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