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

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OF MARCH 19, 2009
Sister Bay Fire Station

ACTION ITEMS:
Tice moved and Stayton seconded to approve the February 16, 2009, minutes as corrected. Motion passed unanimously.

Annual Report and Audit to be sent by e-mail if e-mail addresses provided and monitored; otherwise, sent by U.S. mail. By consensus.

Kirkland to relay to Lensert the wish to include �unadjusted� vs. �unadjusted� on reports for better comparison. By consensus.

Resolution #1-031909 imposing a $35 NSF fee. Nelson moved and Stayton seconded to approve. Motion passed unanimously.
Resolution #2-031909 Establishing the Compliance Committee. Stayton moved and Larson seconded to approve. Motion passed unanimously.
Resolution #3-031909 Establishing the Finance Committee. Stayton moved and Goss seconded to approve. Motion passed unanimously.
Resolution #4-031909 Establishment of the Executive Committee. Nelson moved and Goss seconded to approve with amendment: removing Item No. 5. Motion passed unanimously.

The Annual Meeting was set for May 26, 2009, at Crossroads (with Stone Harbor as an alternate) with light refreshments at 5 p.m. and the meeting at 6 p.m. By consensus.

Nelson moved and Larson seconded to approve the bills as submitted. Motion passed unanimously.

Kufrin moved and Stayton seconded to Convene into Closed Session pursuant to Wisconsin State Statutes, Section 19.85(1)(a)(f) or (g) to Consider Enforcement Action. Motion passed unanimously by roll call.

Stayton moved and Larson seconded to reconvene into Open Session. Motion passed unanimously.

Coulson moved and Tice seconded to direct Vande Castle to pursue delinquency involving Wave Pointe Condo Association and take action against previously non-compliant/delinquent properties as directed at the February 19, 2009 meeting. Motion passed unanimously by roll call.

Committee Members Present by Roll Call: Bob Kufrin, Tom Benzshawel, Mary Boston, Richard Briggs, Andy Coulson (9:20), Nancy Goss, Dave Holtz, Diane Jacobson, Debra Jeanquart (9:15), Mike Johnson, Jeff Larson (9:20), Little Bit LeClair (9:15), Nedd Neddersen, Bryan Nelson, Sarah Sawyer, Dick Skare (9:20), Chuck Tice, Carol Stayton, Bill Weddig, Nora Zacek

Excused: Mark Stevenson; Dianne Lensert, Kerber Rose & Assoc.

Also Present: League of Municipalities CEO Dennis Tweedale; Bill Vande Castle, Esq. (10:10); Jack Moneypenny, Sally Everhardus, Mary Denis, and Jon Jarosh from Door County Visitor Bureau; Kathy Kirkland, TZC Administrative Assistant

Audience: Kristen Kubisiak, Door County Advocate

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

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

Approval of Minutes of February 19, 2009
Two corrections: A wrong date on pg. 1 (should be �minutes of January 15�), and pg. 1 lines 25-27 are duplicates of a few lines earlier. Tice moved to approve the minutes as corrected. Stayton seconded. All ayes.

Administrative Assistant Report
Kirkland noted that the Village of Forestville, as per attorney Vande Castle, still must sign the correct ordinance language, as all municipalities� language must match. Kirkland will resend the papers to both the Village offices and to Commissioner Tom Tostrup. The Village is changing clerks and that is partially the reason for the delay and mix-ups.

She also noted that nearly 250 more units were permitted since the February meeting, including a few from the Town of Forestville and Clay Banks. There are still some Sturgeon Bay properties not heard from, but they are slowly being accounted for. Results of the poll for the Annual Meeting were mixed and not a consensus. The plans will be discussed later this morning. Regarding sending out the Annual Report and Audit, Wisconsin Statutes regard e-mails as equal to snail mail if verifiable and if the e-mail was provided as a contact by the recipient; as confirmed at this meeting by League of Municipalities CEO Dennis Tweedale, proof must be kept of the recipients and any kick-backs (bad address, etc.) noted and followed up by snail mail. Kufrin suggested a Sperry Software program, Send Individually, to mail-merge the process and personalize the e-mails. Kirkland stated that only about 200 of the 800+ permit holders do not have e-mail addresses.

Update on Community Marketing Fund
Moneypenny said that the CMF has assessed a definite need for a community coordinator. He has spent 15-18 hours a week working on CMF; the Board unanimously voted to hire a community coordinator with the funds to come off the top of the funds. The March 12 meeting of one representative from each municipality�s business association went well, resulting in a job description and qualifications for the coordinator, which will go on the website March 24 and in the papers. On March 13, a meeting was held to lay out the do�s and don�ts of how to spend. Patricia Pugal of the Wisconsin Innkeepers Association is working with the Wisconsin Association of Convention and Visitors Bureau. Some municipalities have hired marketers instead of having a visitor�s bureau. We need strict guidelines for spending, and there was a presentation at the Governors Conference on the subject. Pugal sent a PDF laying out the State statute of how money can/can�t be spent (attached to these minutes and distributed to Commissioners). The DCVB gave every community 10 sheets to disseminate. Goss asked about the liaison at the DCVB. Is it a full-time, permanent position? For three years or longer? Moneypenny says it depends on the perceived usefulness after three years. At this point, it�s a contract labor position, but independent contractors have extra requirements (self-insured, etc.); if they can�t find someone with those requirements, they may hire someone for up to 30 hours a week, no benefits involved. They�re hoping to hire by the third week of April.

Stayton noted that Moneypenny and the DCVB were put in an awkward position; perhaps it should have been the TZC explaining the CMF money. She felt the whole concept was being missed by the community; people were talking about it as free money to spend however they wished. Kirkland noted that municipalities are refrained from involvement in CMF money, so the TZC would not be the right choice. Moneypenny kept trying to explain that it was the method of getting Sturgeon Bay in the Zone and that use of the funds would be defined as it rolled out. Further, CMF money doesn�t include arts associations, sports associations; it has to be for marketing, although those entities can go to their community marketing entity and make a case for some funding.

Weddig felt if we�d taken the salary for the person out of the fund to begin with and then split it up, it would have made it easier, having that liaison. Kufrin said it�s similar to the TZC; for the first year, it was handled internally before they realized they needed assistance to run smoothly.

Report by Door County Visitor Bureau on Marketing Efforts
Denis noted an increase in web visits in February over January, but visits are still down 23%. They have not been as aggressive as last year in pushing the website. They�ll have an April database marketing initiative, an e-based postcard, re-inviting people to the county and driving business to the website.

Denis stated that the Governors Conference talked about podcasting and Internet. �Explore the Door� was the demo for podcasts. Kufrin asked if eBrains has been able to establish any connection between when a click on the website/newsletter to making a decision about coming? Jarosh said a conversion study is done about six months later when visitors are asked if they actually came to the county as a result of web efforts. Even then, the visitor may eventually come as a result; it�s hard to extrapolate. Kufrin�s concern is that even though visits are up from last month, is there a trend we should be concerned about: If March is still down from last year, will that trigger different actions by the DCVB? Denis said April�s ad campaign is huge compared to last year; that will affect visits. At some point, a rise in e-mails and website visits has to plateau, so it�s hard to predict if this is an economic indicator or not. Kufrin said eBrains are internet specialists; if it�s down for March/April, can eBrains tell us what they think it means for summer? Moneypenny said they have asked the directional of the numbers; they cut $150,000 from the eBrains contract, so they�re picking and choosing what will work best based on the money they have. They can re-analyze the puzzle and add back in. Pay-per-click was big last year; this will start up again now.

Denis stated they�re layering campaigns for May 1-June 15 for bookings. Kufrin asked if they�re trying for the shoulder season. Denis said packages are offered from April 30-June 8 with incentives to book early and/or think about summer plans. Kufrin said that season is historically low; after school�s out, it picks up. Is there another campaign? Neddersen felt the timing of early campaign will drive occupancy throughout summer. Denis said not the packages are targeted for people who can travel any season, not specifically for families. Nelson asked about a recent e-mail about winter activities; was that a result of a contract? It was an �Insider Tips.� Denis said there�s still Nature of Romance packages and Festival of Blossoms now.

Denis reported that they�re starting to make an impact in Group Sales. She attended a �bank travel� group in Little Rock and had 30-some appointments; half had never been to Door County. There are loyal travelers in that area; they have no price point considerations. Bank travel is a good market. The Meeting Planner market hasn�t been penetrated much; Denis plans to hire an assistant to send out mailings for that group. Kufrin said they couldn�t market facilities in the City before they joined; now that they�re joined, are they marketing all meeting locations or just your member locations? Denis said just members who had filled out a profile stating that they�re interested in meeting business; all the large facilities are members. Stayton said the Washington Island community doesn�t feel that marketing represents Northern Door. With having to be a member and having so many rooms, it�s very specific; they�re looking for more diversification. Denis said 98% of marketing is to individual traveler; group is only 2%. Meeting groups also have specific needs. Stayton asked about smaller business meetings? Denis said that will become part of what they�re doing; they�re just starting on a proactive side. Moneypenny said the biggest challenge has been manpower. Denis and Jarosh are working on a huge campaign. Within a month, they�ll bring on a 20-hour-a-week assistant to help.

Denis said Ad Snapshots include spring campaigns, more than $130,000 for ad buys plus PR and an image campaign of more than $200,000. There are a variety of vehicles, targeting by ZIP and audience who meet our branding. The Madden insert is going out May 17 with co-op ads and advertorial about all communities (1/3 page each). Stayton asked about Madden; she�s dissatisfied with how it was handled. The information sent to her came in Japanese language, and the contact they used was the Chamber�s e-mail, which couldn�t get the information either. They did follow up with a call and regular mail but it took a couple weeks. Denis felt the Japanese was a bug of some kind as no other community had a problem of opening the attachment. Denis said the new person will assist with follow-up.

Jarosh said the new report layout is a result of last month�s conversation. Monthly Totals is a good way to track but some months will look lower; it�s an ebb and flow toward an annual goal. The last winter press tour was great and came on the eve of the big snowfall and white-out. Larson and The Landmark helped with journalists who were stranded. Everyone had fun, and Larson showed one positive article from one of those journalists that has already been published. Three more tours are coming up. Next month, they�ll have more of a breakdown and article clips will be available next month. Benzshawel noted the 174% investment; Jarosh said it�s ad equivalency versus actual spent. Kirkland asked about website click-thrus to the magazine articles; is the new person going to do this. Jarosh is contacting publishers for permission, and Geiger is helping with screen shots. They should be up by April at the latest.

Kufrin asked if the members felt anything was missing from the report that they want to see back in. Larson said showing a percentage of annual goal is good but perhaps also where the DCVB wanted to be in addition. All feel it�s a good report.

Stayton asked about the Welcome Centers. Washington Islanders met about the governor�s proposed budget and the closing of the Welcome Centers along state lines. The closures supposedly save $876,000, which they felt was a penny-wise, pound-foolish. Should we do anything as a county that generates $500 million in tourism? Centers make the contacts and disseminate materials. Moneypenny sat in on a conference call about the budget; the State equated it to saving $1.7 million, which included the building, heat, etc. Moneypenny said each agency given a mandate to cut 10%: had to be permanent changes and had to be operational, not marketing. They regretted having to do it but didn�t want to cut marketing programs. Other bureaus can pick up the slack for losing the Welcome Centers, carry the same materials and possibly operate them if the Department of Transportation will allow that. They tried keeping Beloit, Hudson, and Kenosha but couldn�t.

Viewing of DVD from the League of Municipalities: �In the Scope of Your Authority�
Kufrin said one of the early actions of the TZC was insurance and liability, because we�re a governmental entity. We have multiple communities, and the League�s plan has covered us since May or June 2007. This DVD is about liability of public officials, and we need to be concerned about what that means.

League CEO Dennis Tweedale been involved with the League since 1984, and the insurance company was formed in 2002. They ensure about 310 municipalities. He passed out handouts about the video. Most claims not negligence; they�ve been intentional decision. If there�s a fall, sewer backup, auto accidents are negligence; however, this DVD regards intentional actions of a board/commission. He�ll also cover statutory protections.

(Video viewed; included as attachment with minutes)

Tweedale reiterated e-mail liabilities. Regarding contracts we have, if we decide to cancel them (Internet marketer, etc.), we may lose a suit and have to pay. Most insurance companies exclude personal issues. If one of the members gets sued, you have to tell the Commission. Personal assets are at risk only when related to sexual acts or favors. Another instance not covered was a public official running against a candidate and making slanderous remarks. On a handout, it shows a �recipe� to bring a claim against. Anyone wanting to sue has to follow the rules in this statute. Once filed, the suit comes to the insurance company, which decides whether to pay or deny the claim. There�s a 6-month statute of limitations for the plaintiff to take action; that separates serious people from annoyance suits. There�s a $50,000 maximum that someone can collect if injured, including loss of wages, pain and suffering, attorney fees. This low amount has been challenged but the Wisconsin Supreme Court won�t change it. Under the insurance, the Commission has legislative and discretionary immunity. If we do an intentional act and someone doesn�t like it, we�d argue for legislative immunity. However, federal courts don�t recognize $50,000 or $250,000 limits (for audit); then the sky�s the limit if damages are awarded, and attorney�s fees become the issue. Example: If someone in town wants a stop sign, the village/town considers and decides against it; if someone gets hurt as a result, someone could sue the board, but the board would have legislative immunity for the action. However, if the board decides to put up the stop sign, there�s a ministerial duty to make sure it remains well maintained and in sight; if not, that could be proven as negligence. Wisconsin has broad and liberal recreational immunity statutes. For public sports/water properties, the city/villages have immunity. For vehicles, if we�re on Commission business in our own vehicles, state law says whatever insurance is purchased for a vehicle comes first; if that�s inadequate, statutes kick in to take care of excess. Kufrin asked if driving to a meeting is conducting business. Yes, because this is not our ordinary place of business.

Vande Castle asked Tweedale to talk about what board members can say or not say during a meeting and also in the public. Example: A board member speaks out at a subcommittee meeting but s/he is not actually a member of the committee. Tweedale said if the person is at a subcommittee meeting as a representative and identifies him/herself as such, they�re protected. If as an individual community member, you�re on your own. Tweedale said the rule is that when you speak as appointed government officials, you carry a little more weight with what you say; you have to be aware of what you�re saying. The litmus test: Would you want it in the newspaper, is family/business going to be okay with it? Kufrin said there have been conflict-of-interest issues. At what point does a member need to disclose a conflict? Only on enforcement or other issues? Tweedale would defer to the TZC�s legal counsel. Vande Castle said conflict of interest relates to an individual; if a member doesn�t disclose it and votes to favor their point of view, it�s not appropriate.

Kirkland asked about conflicts in regard to the DCVB promoting its own Bureau members (with group travel, etc.) versus promoting non-members who are permit holders. It seems they don�t receive the same promotion; will this come back to us at some point? Tweedale suggested the TZC attorney take that up.

Coulson stated that most Commission members are innkeepers who are competing against each other in price. If other lodging businesses aren�t collecting the tax, they have an advantage. When we enforce against, is that a conflict? No, Vande Castle said; it�s the TZC�s duty. If you have a personal interest in a non-compliant owner, lobbying against enforcement, that could be a conflict.
Stayton said that permit holders should be allowed to present their own case on a fine or why they�re delinquent. Vande Castle said they�re given that opportunity, and Kirkland said it�s stated in all �late notices� that go out. (Sawyer left, 11:05) So far, no one has asked for in-person hearings.

Kufrin said Kirkland had worked with Vande Castle on the e-mail policy, trying to get procedures approved and created so there are guidelines for the members. Tweedale said to keep good paper trails. Tweedale left the meeting.

Discussion on Current Comparable Occupancy 2009
Lensert was not available to attend. Coulson said it�s discussed at each meeting: When you look at the current �unadjusted� figures and then the former period�s �adjusted,� you�re looking at two different things. It�s hard to draw conclusions from it. He realizes Lensert can�t give current adjusted figures quickly, but at some point we should look at Jan 09 versus Jan 08 �unadjusted� as of the same date; also, as we pass May deadline to go back 2 years, go back to Jan 08 �adjusted� and then Jan 07 �adjusted.� Performance is easier to gauge. Kufrin said we can go back to unadjusted numbers; it�s too time-consuming to adjust numbers on an ongoing basis. We had said Kerber Rose would do so twice a year. Coulson and Vande Castle reiterated that adjusted figures contain late fees and penalties, so it doesn�t correlate well. The same with marketing reports; we should compare year to year in the same circumstances. Kufrin said it�s a challenge with 19 municipalities; it would be a lot of data on a page. It was felt we should just look at �unadjusted�: what came in came in. That will give a more accurate gauge. Weddig agrees with Coulson, but he looks at rooms available. Gibraltar dropped 1,800 room nights, so someone obviously didn�t report. Room nights can skew unadjusted reports as well. Kufrin said Kirkland can relay this to Lensert.

CONSIDERATION OF RESOLUTIONS
Based on last month�s discussion, there are four resolutions (as attachments to the minutes) to consider.

Resolution #1-031909 imposing a $35 NSF fee. Nelson moved to approve; Stayton seconded. All ayes.

Resolution #2-031909 Establishing the Compliance Committee. Stayton moved to approve; Larson seconded. Stayton felt it�s a good foundation; there may be suggestions later. All ayes.

Resolution #3-031909 Establishing the Finance Committee. Stayton moved to approve; Goss seconded. Stayton asked about No. 3: Who is �contractor�? Our contractor is Kerber Rose, Kufrin said, not the DCVB. All ayes.

Resolution #4-031909 Establishment of the Executive Committee. Kufrin said the Bylaws create an Executive Committee to approve payments and �such other business.� In the Resolution, he has included No. 5, which is reviewing annual performance of the DCVB and recommending goals and measurements. This is not addressed elsewhere. Nelson moved to approve; Goss seconded. Neddersen is concerned that having the Executive Committee alone reviewing the DCVB annual performance isn�t appropriate; it should be done as the whole Commission. Stayton agreed. Nelson amended his motion to exclude No. 5; Goss amended her second to concur. All ayes for the amendment; all ayes for Resolution #4.

Kufrin will come back with names for specific committees at April�s meeting.

Annual Meeting � Consideration of a Date and Place
There has been no consensus about a meeting time or place. Nelson argued in favor of holding the 2009 Annual Meeting in or around Sturgeon Bay to welcome new communities and make it accessible. Perhaps Stone Harbor, Cherry Hills. Skare suggested Crossroads as a neutral setting where food could be catered in. Kufrin said only a few people showed up last year, and if we�re doing e-mail transmittals, it may be fewer. All felt last year�s date was good timing. Coulson said it comes down to statutorily getting in reports. The same day (Tuesday after Memorial Day) has the added benefit of people being used to the same date. By consensus, May 26, 2009, was chosen as the Annual Meeting date, with 5 p.m. for refreshments and 6 p.m. for the meeting. Kirkland to check on Crossroads with Stone Harbor as an alternate.

Consideration of Approving Reports and Payables
Nelson moved to approve the bills as submitted; Larson seconded. All ayes.

Consider Motion to Convene into Closed Session pursuant to Wisconsin State Statutes, Section 19.85(1)(a)(f) or (g) to Consider Enforcement Action
Kufrin moved to go into closed session; Stayton seconded. All ayes by roll call. Vande Castle said three property owners are non-compliant. Those who have not permitted were given until given until March 15 to comply and have not. For those delinquent in paying, the deadline is April 1. (Jeanquart left, 12:05).

[Closed Session]

Consider a Motion to Reconvene into Open Session
Stayton moved to reconvene; Larson seconded. All ayes.

Consider a Motion to Take Action
Coulson moved to direct Vande Castle to pursue delinquency involving Wave Pointe Condo Association and take action against previously non-compliant/delinquent properties as directed at the February 19, 2009 meeting. Tice seconded. All ayes by roll call.

Kufrin reminded that the April 16 meeting will be at The Landmark/Stateroom in the Carrington Restaurant.

Adjournment
Zacek moved to adjourn; Coulson seconded. All ayes. The meeting adjourned at 12:23 p.m.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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