Door County Tourism Zone Commission : Meeting Minutes

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May 20, 2010 Door County Tourism Zone Commission Meeting - Minutes

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OF MAY 20, 2010
Gardner Town Hall

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

Nelson moved and Boston seconded to approve the minutes of April 15, 2010, as submitted. Motion passed with Goss abstaining.

Goss moved and Nelson seconded to approve Schenck, SC�s Management Letter and Audit as submitted. Motion passed unanimously.

Nelson moved and Goss seconded to approve the Reports and Payables. Motion passed unanimously.

Larson moved that, effective June 2010, the Commission will go forward meeting only six times a year in even-numbered months, the third Thursday at 9 a.m.; Olsen seconded. Motion passed unanimously.

Larson moved to combine Finance and Executive committees and their responsibilities into a joint committee with a total of 7 members, to become effective with the June 2010 meeting; Zacek seconded. Motion passed unanimously.

Nelson moved and Goss seconded to authorizing credit card payments and eChecks as proposed by Official Payments Corporation. Motion passed unanimously.

Larson moved to adjourn. Olsen seconded. Motion passed unanimously.

Committee Members Present by Roll Call: Bob Kufrin, Mary Boston, Pauline Cyrus, Nancy Goss, Dave Holtz, Debra Jeanquart, Jennifer Laughlin, Jeff Larson, Bryan Nelson, Tom Olsen, Chuck Tice, Bill Weddig, Nora Zacek

Excused: Richard Briggs, Sandy D�Amico, Paul Flottman, Diane Jacobson, Mike Johnson, Little Bit LeClair, Bob Starr, Carol Stayton

Also in Attendance: Jack Moneypenny, Mary Denis/DCVB; Mike Konecny, Schenck, SC; Dianne Lensert, Kerber Rose & Assoc., Kathy Kirkland/TZC Administrative Assistant

Audience: Charity Forsch/Administrator-Clerk, Ephraim

Call to Order
Chair Bob Kufrin called the meeting to order at 9:05 a.m. He noted that Bob Starr has been appointed to be Sturgeon Bay�s new commissioner, taking over Tom Benzshawel�s spot.

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

Approval of Minutes
Nelson moved and Boston seconded to approve the minutes of April 15, 2010, as submitted. All ayes; Goss abstained. Kufrin said we�ve been unable to have the Finance Committee approve its April 8, 2010, minutes; he will submit them for the record as unapproved.

Administrative Assistant Report
Kirkland noted that the new late notices are having an impact. Nearly $500 in late fees and penalties have been received in the last week or two (most in the $25-$50 range). Vande Castle has not given an updated report on the five properties designated at the April meeting. She has about nine properties on the radar as possible renters; Goss asked to be sent any that could be Liberty Grove.

The League of Municipalities returned $136 to The Zone as dividends earned. Kufrin explained that the League invests the money and shares the earnings with insured municipalities. Kufrin reiterated that the commissioners are also covered as they conduct business for The Zone. Kirkland announced that the new office copier is in place and seems to be working well.

Review of Audit
Mike Konecny from Schenck, SC, spoke about the 2009 audit, management letter, and recommendations. He said it was a fairly typical year with nothing missing from the Tourism Zone records and nothing amiss. He went through the financial statement and balance sheet (pg. 3), noting that equity is $40,000 year-end 2009 compared to $26,680 a year earlier. For Revenues and Expenses, (pg. 4), there was a change in accounting presentation, plus it included $14,040 in late fees & interest; Lensert said that The Zone now retains those amounts. Revenue is up $440,000. Operating expenses are in three categories: administration, payments to the DCVB, and distributions to municipalities. Administration totaled $132,248. The Visitor Bureau received $2,014,129; the figure was higher in 2008 because some 2008 payments were actually 2007 but not brought in with 2007 budget due to a change in accounting procedures. The 20089 Net Asset balance $925,110 is vastly different from the $26,680 in 2009 because of the method of distribution to the DCVB: reimbursement versus disbursement at an even 66%. The distributions to municipalities were $915,000 in 2009 compared to $790, 172 in 2008. This Statement is done on an accrual basis, not cash, so the figures differ from the actual disbursements shown on a separate sheet. Looking at operating income plus interest, there has been a positive change of $14,209. Tice asked about the payment to the DCVB of $2,014,000 but there�s a $13,000 difference on the Cash statement. Konecny said at the end of 2008 payables, there were amounts due from Nov/Dec collections paid in Jan/Feb 2009 but not reported as an expense; they�re required to be expensed the prior year. The same happened in 2009 with those not paid until 2010. On an accrual basis, it�s recorded as an expense even though paid the next year.

Kufrin explained that the original agreement was to reimburse the DCVB for expenses, ensuring money management and control, especially with a change in directors. By 2008, the agreement was modified to pay 66% as collected. That is due to Jack�s internal controls and audits.

Konecny explained Cash Flows (pg. 5), showing how revenue/expenses relate ins-and-outs. We had more municipalities in 2009, so receivables are higher and payables higher. Pages 6 through 8 is boilerplate technical language about how the room tax split is done, the change in cash and investments, the fact that The Zone is not really investing money over long periods. Page 9 discusses insurance, retirement commitments for the one employee. Page 10 shows payments by municipality, and Schenck will continue to keep all years on the list. Overall, room tax was down about .8% from 2008 to 2009; 4 municipalities went down, 8 went up.

Konecny went through the Management Letter, the first two-and-a-half pages of which are required communication, the scope of the audit. They found no control deficiencies, no uncorrected misstatements, and no disagreements with management, nothing unusual. He feels that Kerber Rose�s arrangement with The Zone works out well, with enough separation of powers and internal controls. With 19 municipalities and 900+ permit holders, the audit went smoothly. Kufrin noted that last year�s recommendation was a requirement that the DCVB submit its audit; Konecny now has that. The DCVB budget, operational plan, and audit are part of his files.

Kufrin thanked Lensert and staff for a positive audit, given the number of transactions and money flowing through. Finance talks about the controls during the course of the year, and Lensert has worked hard. Kufrin asked for a motion to approve the Management Letter and Audit. Goss moved and Nelson seconded to approve Schenck�s audit as submitted. All ayes.

Report by the Door County Visitors Bureau
Jarosh is at Midwest Travel Writers conference; Moneypenny and Denis are here. Moneypenny said that, last year, the DCVB asked its board of directors to discuss CMF, which was a lively debate. They put together task force of four board members to look at the overall effectiveness of dollars spent and, more important, the effect dollars have on Sturgeon Bay as part of Zone now and in the future. Staff is excluded from those meetings.

He has looked at the DCVB budget split as far as marketing versus membership. Payroll was easy but the rest is line by line (utilities, etc.). Next month is the Annual Meeting, although he can give a report if the Commission would like. Kufrin said the original purpose was having an early discussion about the DCVB budget. Unless the public shows up to the Annual Meeting, it will probably take 10 minutes; Kufrin would like MP to have that budget discussion. Nelson said we have to assume there will be two or three from general public. Kirkland sent PowerPoint for both Kufrin and Moneypenny to fill in; once done, she will send out most by e-mail.

Moneypenny said they heard good comments during National Tourism Week and will do something similar next year as far as the breakfast. He asked if anyone had heard feedback about the flyer sent to all residents. No one really had. Moneypenny said one woman called and asked good questions and that she was reporting back to her group. The goal is to understand the room tax better. Two or three management companies wanted a stack for meetings. He noted the newspaper insert and White Gull�s publicity for its winning breakfast. They�ll be watching to see if it spiked traffic. The Visitors Center asks all callers how they got the number. Some talked about Good Morning America, and 10 people in the Visitors Center asked directions to the White Gull. Moneypenny asked for suggestions or things they could do differently; he�s keeping a file.

There was discussion from Boston, Tice, and others about why certain municipalities�for example, Valmy, Institute, Sevastopol, Nasewaupee�were not on the map in the insert. Tice said Sevastopol spends money on identity and they�re being left off Door County. Sevastopol is not happy they�re annexed into Sturgeon Bay; they passed the resolution about re-upping as a Zone after 2011. Moneypenny said the challenge is that people don�t go to Gibraltar; they go to Fish Creek. They can�t find the place because it�s a township, we run into problems. Has to be easy from the visitors� point of view. Kufrin noted that there�s more going on commercially in Institute and Valmy than in West Jacksonport, which is just a bar. Laughlin also finds it frustrating. There�s a park linked to Sturgeon Bay that�s really in Nasewaupee. Tice noted that part of the problem is the postal address; all fall under Sturgeon Bay. Kufrin asked about the color coding purpose; Moneypenny said it matches the map used in the Visitor Guide; it�s coordinated with community descriptions, Denis said. Kufrin asked if they get feedback from business entities as to whether they think the map reflects their zone of influence. Moneypenny said no. Nelson said someone will have a sheath of papers, a map they use when they�re in Door County. Kufrin noted that none of the parks are in there. Ephraim Administrator Forsch said even on GPS, if you search for Sevastopol, it�ll show up as Sturgeon Bay. If a search is too specific to the township, the postal service might confuse people. The Visitor Guide, Denis said, is more detailed; this is not meant to be a full roadmap.

Kufrin suggested a slightly better level of detail and a few more location names in Southern Door. Part of the problem is having a business association in the community. Moneypenny talked about smaller communities joining a �Southern Door Business Association� to reflect all those communities. Kufrin said one advantage of commissioners is that they represent communities without business associations; for example, Laughlin can go back to Forestville with concerns and ask for suggestions, then provide feedback to the DCVB. Kufrin said the Internet is where the bulk of the people are shopping. Each municipality has to have its website up to date.

Moneypenny briefly talked about the lobby renovation; it�s open this afternoon. Please stop and see new lobby. A week ahead of schedule; it will be better for the customer.

Denis said the statistics on the website are indication that they�re giving people more to view. Kufrin had questions on length of stay and page views; refreshing the site should help because once someone�s used to the site, they go where they need. New and interactive content will get people moving around; however, the overall trend is that consumers are spending less time. Seven pages viewed are healthy; four or five is the national average. The site now has a trip planner that pulls things from all places; the viewer can send it to friends/family. EBrains has done a lot with PI leads, contest promotions. Insider tips had 60,000 people in 2006 but they continue to hone the list; it looks like they�re losing a lot of database people but it�s a better list when it�s refreshed. Moneypenny clarified the question on averages under views/length of session. He has asked Jarosh to add a formula to the cell. That will be corrected in next report.

Geiger is working with writers: worked with 33 journalists in the last month for itineraries, photos. White Gull Inn had 20,000 hits on its website last weekend.

Moneypenny�s quarterly report was in the packet, as requested. Kufrin asked about ZIP codes: Phoenix? Denis said ZIP codes are deceptive. Milwaukee has many ZIPS, for example, so it looks like less than Eau Claire. Nelson asked about how many journalists last week. Fifteen, and a new group in June, October, December. Individuals are coming in this weekend, too. Kufrin asked how the DCVB solicits for events to go on its Calendar. Do they just accept anything coming in? Denis said it has to come through a member; the member posts events, then they�re overseen at the office before going live. They also ask individual business associations.

Moneypenny did straw poll with his board; there was good feedback about business this season, with retail sales YTD up 12% to 15%. Lodging feels optimistic.

Report from the Commissioners on the Status of:
Early renewal. Sevastopol, Sister Bay, Liberty Grove are in so far.

Feedback on local issues: Sevastopol talked about putting a kiosk at the town hall. Jeanquart asked about the five-year contract; Kufrin said The Zone was contracted for five years (all municipalities expire December 31, 2011, no matter when they joined). It will be year-to-year beyond that, but the community has to provide a one-year notice.

Consideration of Approving Reports and Payables plus Receipts to Date
Lensert said March is up 3.3% on collections from 2009, and YTD remains at 8.8% above last year. Looking at March ADR and occupancy, everything is higher and the ADR s similar. March took at dip in ADR but came out with a higher percentage. In the check detail, some are overpayments by permit holders including one large one where both owner and agent were recording and paying.

Kufrin noted that Moneypenny has requested that The Zone provide the number of units by type and community, including ADR and occupancy; no individual info, but they could provide it for the State Tourism Impact Study so the accuracy is 100% based on room tax collections rather than guessing. Weddig asked if the $409 million in tourist spending is based on room tax or Smith. Denis said the State contracts with Davidson-Peterson, as does the DCVB for in-depth study. They do a quarterly survey on lodging that has 10+ rooms. This year, they reached 76% of innkeepers; 74% last year; half the people last year were half this year. So, there are different people and have to extrapolate it for the other 30%, so there are many assumptions. The ratio is $600 outside of lodging and $100 in lodging alone. Moneypenny is going to ask Davidson-Petersen what base minimum they need to get it to work. Goss asked if it�s a factual basis or is all anecdotal that more is spent by tourists on things besides lodging. Moneypenny said a group travels around and stops visitors for a survey. It�s a sampling from around the state but enough to be considered accurate. That data is not shared because the State pays for it; their formula is also proprietary. Goss wants lodging versus other spending; Denis will send it.

Nelson moved and Goss seconded to approve the Reports and Payables. All ayes.

Consideration of Establishing Meeting Times, Dates, and Frequency
This has been reviewed in December/January each year, and the Commission meeting has always been the third Thursday of every month at 9 a.m. Discussion ensued about skipping months. Larson moved that, effective in June (with the Annual Meeting), the Commission will go forward meeting only six times a year in the even-numbered months. Olsen seconded. Same time and date? Yes. Tice brought up the idea of a permanent home to make it easier. Weddig said the initial thought was having the meeting in different spots as a convenience for commissioners and locals. Olsen felt it takes a while to come to the meetings and learn what we do. Kufrin stated that on alternating months, the Executive Committee could take care of payables. All ayes.

Moneypenny asked if the municipality meeting spots get shifted. Nelson said Washington Island is a must-do; Baileys Harbor would yield. Kufrin said there is value in meeting in Sturgeon Bay, inviting the mayor and board members. Sturgeon Bay will take August; Liberty Grove will move to February 2011. Washington Island will take October.

Weddig asked if the months we�re skipping will be critical to budgeting. No, budget month is December. Tice said Executive/Finance would do the groundwork. Kufrin said if there were an issue the Chair or Executive Committee felt important, they could call everybody.

Consider a Motion to Expand the Membership of the Executive Committee to Seven Members to incorporate the functions of Finance Committee, effective on June 17, 2010
Kufrin explained that the Commission originally had a Finance Committee for budget and oversight on investments. Finance now meets four to five times a year, either on finance or personnel. When the Commission began having quorum issues, an Executive Committee was created to vote on ordinary business in absence of a quorum of the entire Commission. Finance has been unable to have a quorum, with only 3 members out of 5 left. Now the thought is to combine Finance and Executive committees and their responsibilities into a joint committee. Finance and Executive are each 5 members; Kufrin proposes the 5 become 7, combined. It would go into effect at the June meeting when other officers are appointed. Larson so moved; Zacek seconded. All ayes.

Consider Authorizing the Zone to Accept Credit Card Payments and eChecks as Proposed by Official Payments Corporation
Kufrin noted the fee schedule is on page 9 of Official Payments� contract; Kirkland stated it is as previously discussed. All fees, except $4 NSF fees, are paid by the user/permit holder. Nelson said our attorney has reviewed it, there are no land mines, and Finance has reviewed as well. Nelson moved to approve; Goss seconded. All ayes.

Discussion on the Collection Proposal from LifeQuest
LifeQuest had sent its fee schedule of percentages taken on late collections. Weddig felt they won�t take on any late collections unless there is absolute evidence; Kirkland said that�s the norm with collection agencies and even small claims court. There has to be some basis for collection. Kirkland said she didn�t feel there were upfront costs, although they do establish a bank account for us, which might entail some fees. She was instructed to bring in some historical numbers to the June meeting, the level of problem LifeQuest would address vis a vis using Vande Castle or the court systems. The representative could be invited to the June meeting. Legal fees are the second-biggest component of The Zone�s budget.

Nelson had a general question. Another board is going digital; everyone brings their laptops, downloads all paperwork onto laptops instead of bringing a mailed packet. Everyone should think about it. Kufrin said most files are small, and there are different sites to upload.

Consider a Motion to Convene 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.

No closed session. There was no report from Vande Castle and no specific properties to consider.

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

June Meeting
The June 17 Commission/Annual Meeting will be at Sister Bay Fire Station.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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