Door County Tourism Zone Commission : Meeting Minutes

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November 18, 2010 Door County Tourism Zone Executive Committee - Minutes

DOOR COUNTY TOURISM ZONE COMMISSION
Executive Committee
Minutes of November 18, 2010 � 8:30 a.m.
Kerber Rose & Assoc./Sister Bay

ACTION ITEMS:
Nelson moved to approve the agenda; Larson seconded. Motion passed unanimously.

Nelson moved to approve the October 21 minutes as amended; Weddig seconded. Motion passed with Kufrin abstaining as he was not at the meeting.

Larson moved to accept the reports and payables; Starr seconded. Motion passed unanimously.

Starr moved to recommend the Tourism Zone Commission 2011 budget to the full Commission. Weddig seconded. Motion passed unanimously.

Larson moved to adjourn; Starr seconded. Motion passed unanimously.

Committee Members Present by Roll Call: Robert Kufrin, Bill Weddig, Dick Skare, Bob Starr Jeff Larson, Bryan Nelson

Also in Attendance: Dianne Lensert, Kerber Rose & Assoc.; Kathy Kirkland, Administrative Assistant; Bill Vande Castle, Esq. (9:50 a.m.), Ja�Tame Schabo/Valley Credit Services (11 a.m.).

Call to Order
Chair Bob Kufrin called the meeting to order at 8:35 a.m.

Approval of the Agenda
Nelson moved to approve the agenda; Larson seconded. All ayes.

Approval of October 21, 2010, Minutes
Nelson noted that a couple of misspellings of �Weddig� came through. Nelson moved to approve the October 21 minutes as amended; Weddig seconded. Motion passed with Kufrin abstaining as he was not at the meeting.

Report from Administrative Assistant on Current Activities, Projects & Permit Issues
Kirkland noted that the Official Payments credit care option is now in place for both regular room tax payments as well as lates/penalties; a sheet talking about lates/penalties will be sent with all late notices, including initial notices from Kerber Rose. There have been some lags in Bay Lake Systems� upgrades but all seems to be working now. Kirkland�s report included a Google Analytics assessment of October 2009 versus October 2010, web hits and length of time online have increased. Kufrin noted that the US map can be enlarged to show from where the permit holders are viewing.

Kufrin asked Kirkland to send out e-mails (perhaps bimonthly) that are newsy (e.g., year-end activity, remember you can pay online, updated statistics on website, etc.). She is currently sending out reminder notices of upcoming deadlines and will include web links and news. She sent out 67 �missing reports� around the 12th; reconciliation took longer than usual due to high activity. September room tax will be higher than shown on the reports because of these late submissions. There were just two new permits issued since the October 21 meeting; one in Ephraim, one on Washington Island, both single unit/seasonal.

Vande Castle is about to offer the Commission�s payment plan to Jon Hanson for paying the legal fees and forgiving the lates/penalties; the offer is in stages depending on when he pays. If he becomes noncompliant in the future, any remaining lates/penalties are back on the books. Kufrin felt it�s a good offer and that he would have the most cash now.

Report on Marketing Efforts by the Door County Visitors Bureau
Nelson stated that most trends have continued as per Denis�s assessment at October�s meeting, although the new web design would seem to boost hits, that has not been the case. Larson noted that we�re now paying for clicks. However, anecdotally, others are saying re: the same shift to social media. Unique website hits are up, and Weddig pointed out that pay-per-clicks are up substantially from last year. Kufrin felt that the �time on site: should increase if you have better content; Weddig said if it�s better, it could be faster to navigate. Larson felt that if people are unfamiliar with Door County, they�d use the website; if they�ve been here, they�d go straight to the sources (lodging, etc.). Kufrin felt that eBrains is getting a lot of money and we still have no eBrains report that definitively shows that they�ve fulfilled their contractual commitment. Starr agreed that typical customers would be more likely to go to a website than to social media. Nelson went to a conference last week, and a branding/marketing guru said exactly the opposite for our target group: Growth on social media for ages 20-35 has been static; the explosion is for those ages 50-65.

Kufrin had met with eBrains and Moneypenny, and it was a disappointing meeting. The DCVB didn�t know certain answers and eBrains was also at a loss. EBrains is supposed to generate additional customers based on demographics; Kufrin�s own calculations didn�t come close to that. Weddig feels they stepped into the middle of the recession and projected forward without knowing how it�d go. Nelson felt if eBrains doing the same thing as when they started, they�re doing it wrong; technology has changed rapidly. Larson asked if eBrains should be placing more online ads for area newspapers and other sites that click-thru to the DCVB website. Starr asked if Jack is satisfied with eBrains or frustrated. Kufrin felt that Moneypenny seems to have the opinion that auditing eBrains is not worth the money; Kufrin felt it would provide evidence that strategies are working. Another thought is that eBrains may be as good as anybody else; what would be different elsewhere? EBrains has been doing ala carte buying, but the current reports suggest the strategy doesn�t match last year, which was more of a recession year. Is this a forerunner of tourism activity next year? Larson noted that DCVB walk-in traffic is up substantially, so eBrains� activity is just one more tool: Overall business is our best indicator through our statistics. Nelson recalled that we were supposed to see an eBrains metric after 18 months, which never came. Kufrin felt the Executive Committee should meet with eBrains and Moneypenny. Larson stated that he�d like to see an eBrains quarterly or semi-annual report or else we won�t support the DCVB contracting with them. Kufrin stated there�s no one at the DCVB who is a statistics person; perhaps on the DCVB board someone would know more. Moneypenny looks at the end results and say it�s fine, but he may not be able to say why. Nelson stated that since eBrains is the DCVB�s single biggest expenditure�an initial buy was $450,000 for 18 months and subsequent annual contacts of about $200,000-$250,000�this seems like a red flag.

Kufrin recalled that Larson had said that only 50% of anyone�s marketing is working at any given time; you�re just never sure which 50%. That�s the underlying response. Kufrin will send his previous reports and notes that identify where he feels there�s an eBrains problem. Bottom line: Is eBrains achieving its goals with DCVB? Larson would like to know what three to four other visitor center bureaus are doing. Larson said the Strategic Conversation will be in the mail soon and Moneypenny is presenting it to December�s Commission meeting. If eBrains is still large in the budget, we need to revisit this. Kufrin felt that the Executive Committee should meet with Moneypenny and eBrains before that December 16 meeting to discuss, perhaps at the Landmark. Kufrin will ask Moneypenny about December 7 or 9 about 1 p.m., and Moneypenny can invite whomever he wants.

Weddig�s interest is not letting the DCVB keep repeating the same techniques. Weddig said that we may have concerns, but they�re nothing compared to when the Zone first started and dealt with early marketing and financial problems

Weddig said the numbers going up dollar-wise but he wasn�t sure actual room nights are going up in the same way; ADR and room nights should go up, too. He noted that he has upgraded rooms so dollar numbers are good but some who have done the same may have fewer rooms. Kufrin wants to see a shoulder season activity graphs, discounting for summertime, as a way to demonstrate the income as well as ADR and room nights. Kirkland is working on these. Kufrin wonders if Moneypenny is pulling our financial information and looking at, for instance, competitors to show that his work efforts have made a difference. Kufrin had the Sister Bay Advancement people do that with local competitors to assess marketing efforts.

Regarding the website, for October, there were 64,000 people first-timers on the site. October was the only month that beat last year�s in visitors.

Consideration of Approving Reports and Payables plus Receipts to Date
Lensert noted on the comparative figures, August is 0.8% up with most lates in but not all. September is already a positive at 0.9% and will improve when lates come in. Year to date is up 4.7% at this point. ADR September did come up from $122 in 2009 to $126; August was the same both years at $151. Occupancy for both months is up a couple of percentage points, so it�s all encouraging. Weddig noted the puzzling June through August available rooms: down 3,000 in June, July down 2,000, August showed a little increase. Lensert felt that with late collections, those numbers will be rerun at year�s end and meet last year�s. Those figures will be available at February 2011�s meeting.

Kufrin asked the innkeepers, looking January through April, the occupancy is so low, why do so many places stay open? By type, it�s mostly commercial properties that stay open. The single units go up much more in season. Nelson said his lodging stays open to keep his core group of employees; he doesn�t want to hire new people every year. He does lose money in winter but he�d have less money if shut down completely. Starr said the entire county is up about 9% in real estate sales.

Lensert said we�re ahead on the budget YTD. There are no unusual payables this month. Larson moved to accept the reports and payables; Starr seconded. All ayes.

Discussion on 2011 Tourism Zone Budget
Kufrin, Nelson, and Lensert met briefly on the prior Tuesday to look at numbers. The substantive change from the draft budget is that Lensert had built in a 5% increase for room tax for 2010; however, it was thought that 3% was more conservative and it is the figure the DCVB is using for its 2011 budget. The other change related to the CMF agreement dropping again on the third-year schedule to $256,500.

Starr asked where the 5% came from; Nelson noted that YTD actual growth is 5% but 3% was a more comfortable figure. Lensert said if there�s excess, it builds our equity fund. She noted that if the DCVB budget has excess, it has to be specially dealt with, not funneled back into the general fund. Starr asked what happens if the numbers are flat, not up 3%. Lensert said then the DCVB has to make cuts or have reserves. Nelson noted that Moneypenny has built a contingency into the budget.

Weddig is concerned about the weather affecting certain months. If we have a good July and October, can we grow anymore? Most take in the most money on peak weekends such as Fall Fest, Pumpkin Patch. We�ll have to start relying on shoulder seasons. There is some room to grow in August. Lensert felt it�s not just occupancy; it�s room rate as the economy continues to recover.

Weddig asked about the DCVB keeping a reserve. Kufrin�s understanding is the DCVB wants to spend 3% more than they expect to collect, not 3% over their budget. Nelson said there are two contingencies: one is a rainy day and the other is a what-if sunny day contingency, to have plans for spending that if things go better than expected. Lensert said they still have deferred revenue that is sitting on their liability; so far, they haven�t used those special funds. Consensus was that people are booking closer to their travel times; anecdotally, some places have only regulars booking far out. Also, as the economy recovers, people may have money to fly instead of drive locally.

Consensus was that 3% is a reasonable number to raise the budget. Kufrin briefly talked about the need to conduct an evaluation on Kirkland to confirm any wage increase or benefit change for 2011. Lensert said Kerber Rose�s fees will stay the same but they have revised the rent up from $200 to $250, still a bargain deal. The switch from using the attorney less to using the collection agency/credit cards more, it�s hard to tell if that will change. Regarding Bay Lake Systems, we have an annual contract with them. Switching from using Sister Bay�s copying/paper costs to The Zone�s own copier seems to be equal. The annual audit fee from Schenck is fixed according to the three-year contract.

On the final page with projected income, Lensert noted that January thru September are actual collections but not prior year lates (there will always be some of that). September doesn�t include late collections; October through December are using 2009 figures and adding 5%. The last line is the DCVB allocation without CMF (their 66%). Total projected CMF and DCVB share is $2,154,827. Kufrin asked Starr if he has heard anything about the Sturgeon Bay Visitor Bureau that would throw this into question. Starr said it won�t be unanimous; we will have some work to do to continue the relationship. Kufrin: Will the City�s 2011 budget revolve around that allocation? Starr said it has been budgeted that way, but it�s not a commitment. They are committed to having CMF money in 2011. All felt Larson�s letter to the DCVB on behalf of the Egg Harbor Business Association is good; all visitor bureaus need to stay in to create the troops in the field.

Lensert said with last year�s budget, we wound up with $233 Net Income while this year, we have $16,088 and 2010 projected is $17,000 Net Income. Starr moved to recommend the 2011 budget to the Commission. Weddig seconded. All ayes.

Regarding the $17,000 surplus, it shouldn�t come into question. Nelson felt it�s a legal defense fund/rainy day fund, or if we have cash flow deficit problem. In a year or so, it may be enough to run without borrowing early in the year from the DCVB. Lensert said if it hits a point of excess, then it would go to DCVB for special projects and not retained by the Tourism Zone

Vande Castle arrived (9:50 a.m.). It was discussed that he should make an adjustment in the timeline for Hanson�s agreement; he�ll have it out by Monday at the latest.

Discussion on Collection and Input from Two Collection Bureaus
Kufrin called Dennis Donohue, vice president of Associated Collectors, Inc., of Green Bay. Kufrin asked if Associated has had dealings with our type of organization; i.e., taxes as per opposed to regular bills. Donohue said they have collected court costs, assessments, and for municipalities and cities with traffic violations but not taxes. Most of their work is medical and non-government but they�re familiar with government/debt. Kufrin noted that the challenge is collecting from people who don�t live right here; we have owners and businesses in other states. Donohue said there are federal laws but states have their own laws; Michigan and others require license or bonds. They�d have to know which states and if they�re allowed to call; they have problems with Arizona and Massachusetts laws. Nelson asked about Florida. Donohue said that Florida doesn�t require a license so they�re allowed to collect there. Weddig asked if they have issues dealing with estimated values if a permit holder fails to file reports; it wouldn�t be a known value but would be taken from the property�s history or comps. Donohue said they had been talking about that very thing. They are required to state in their first notice to the debtor how much is owed; if The Zone makes a good, reliable estimate, they�d go with that. He has seen the same thing with consumer medical debt that often gets adjusted. Associated would say, �Here�s how much you owe; if you dispute it, let us know.� It�s up to them to answer, then Associated would come back to The Zone with their answer and an itemized statement for approval, and they�d go from there. Disputes are fairly common in their line. Weddig asked if Associated has its own attorney. Donohue said they have several around the state, and one in Green Bay handles Door County. They have their own networks for other parts of the state, and there is someone always available to cover. Before they�d sue, they would send The Zone a suit authorization; in WI, the suit would be filed in the name of The Zone. In that case, The Zone could use its own attorney or Associated�s. Once legal gets involved, the commission goes up, but Associated covers the legal feels and collects as part of the judgment.

Kufrin asked about bankruptcy claims. How effective is Associated with bankruptcy? Donohue said the courts decide; in his experience, they do prioritize claims such as secured debt; some are non-priority like a tax. Kufrin asked if delinquencies are owed by a business rather than an individual. What difference does it make if it�s a business as compared to individual to ability to collect? Do you do it differently? Donohue said it is different. With consumer debt, the consumer has protections such as the Wisconsin Consumer Act, whereas corporations don�t have the same protections. They talk to a corporation differently and find out who pays the bills. The corporation will try to settle for a lesser amount. For individuals, they sue only if they believe they can get the money; if there�s a liquid asset, wage garnishment, bank account over $1,000 and so on. You can get a lien on the real estate. Kufrin asked how they deal with individuals, who make up approximately 70% of permit holders. Donohue said legally, they have to send a letter and give the permit holder 30 days to respond. If income is under a business name, that�s not considered consumer debt. The debtor has 30 days to dispute the debt. Generally, letters don�t bring collection because they�ve already gotten our letters. Associated has to talk to them, so they call the individual or accounts payable, ask when they pay bills, go over the debt. If they don�t hear in five days, they call again. Starr asked if the threat of reporting to credit agencies is effective. Donohue said it is, especially individuals, because corporations have their own credit sources and aren�t as affected by credit reports. Once Associated files with the credit agencies, it stays on the credit report for 7 years, even if it�s resolved. They have a short time from delinquency to reporting to the credit agencies, typically 40 to 45 days. Starr is concerned about alienating the permit holders if it goes to the credit agencies too soon; Donohue said we can give him a time frame to use if we want it longer; however, their letter will state that they intend to report if it�s not resolved by X-point. They can also make a payment plan, saying they�re �not on the credit report yet� and use it as leverage. You�re not supposed to barter if it�s already gone to the report, but if there are mitigating circumstances, you can remove it.

Weddig asked about a good time frame for letters after the tax is late. Should that happen more quickly than we�re doing it? Donohue felt we need internal procedures, but we have political concerns as well as money. It�s best to establish a collection procedure; send letters and maybe make a call. Generally, give them to them between 90 and 120 days. If haven�t come back by then, a phone call might be effective in finding out if something�s going on, marital difficulties, health, etc. When get to 120 days, send it down to Associated and tell the debtor, �Sorry, this has gone to collections. Call the toll-free number.�

Kufrin asked who The Zone would deal with in terms of collections. Donohue would designate Kirkland as authorized to list the accounts, and she can log onto website and send accounts or send electronically. She can check the website to make sure there are no discrepancies. The debtor can come into the Green Bay office, which doesn�t happen often, but there�s always a live person by phone.

Kufrin asked what kind of documentation is needed to submit to substantiate collection. Donohue said the name of debtor/responsible party, amount, date incurred, and then send out from there. If we have other demographic information - corporate contract, DOB, Social Security number, or different mailing address - that�s fine. Associated doesn�t need the itemized statement as to how we came up with an estimate. If the debtor disagrees, they�re asked where the figures are wrong. If they have a cogent answer, Associated tells The Zone; The Zone can negotiate a payment schedule or settle for a lesser amount. Associated will settle for less only if we give them that authority. The Zone could give blanket instructions such as �settle for 80%� but it could be individual.

Kufrin asked why The Zone should pick Associated over somebody else. Donohue said they�ve been in business since 1955 and in Green Bay for 11 years. They know what they�re doing. He urged us to call the references. Associated will either know the answer or know where to find it. They pride themselves on customer service. Nelson asked if we need a contract. Donohue said it�s a simple two-page agency agreement that states the fees but there is no length of service terms.

Kufrin said the step of using a collection agency would require a vote at the December meeting. Donohue appreciates that we�re sensitive to public opinion and the press; they handled Wausau school district and had similar concerns. The conference call ended with Donohue.

Consensus is that LifeQuest is not the right company to go with. Starr noted that he�d rather not see any collection agency going quickly to credit reporting; we don�t want to alienate permit holders.

Ja�Tame Schabo arrived. She is from Valley Credit, based in Appleton. She has a good understanding of what we do. Kufrin asked if Valley collects for other municipalities? She said yes, other counties, but not room tax; it�s mostly health and human services, sheriff�s fees, TRIP program.

Kufrin asked about the company background. Schabo said they�ve been in business 22 years, specializing in a wide variety of collecting including medical and other clients. Valley has a great reputation as far as following State guidelines. They�ve had no complaints.

Kufrin gave a scenario of a B&B that has stopped paying and asked Schabo to take us through collecting from an individual versus a business. Schabo said the overall collection would be the same. They�d immediately send out a letter giving the debtor 30 days to dispute. They also make phone calls; after 30 days, it goes to the credit agency reporting and TRIP program. Weddig asked about the credit report: How long from the first contact to reporting to credit agencies? Can Valley go by estimates rather than actual amounts owed? Schabo said they can legally collect from an estimate; the debtor has to dispute the amount. It�s up to The Zone how long we want to hold it before sending it to collection. If there has been no contact within 90 days, no they probably won�t respond to us. When we turn over the account to Valley, we�d send them the figures/invoices we�ve been sending the permit holder. If the debtor is now willing to talk to collection and they dispute the amount, Valley would come back to The Zone, and The Zone would work it out with the debtor. Once amount is agreed, Valley would collect and take a commission based on that. For collection, Valley needs paper documentation, itemized statement even if not the exact amount but the amount we�re trying to collect, address/phone, as much info as we have. They can use TRIP if it�s a private collection. A letter goes out immediately, and within a week, phone attempts are made. They�re constantly trying to reach the debtor; if no response, it automatically goes on credit reporting after 30 days. If do hear from the debtor, they can delay going to credit reporting.

Kufrin said we have permit holders across three main states but they own businesses here. Do you treat a business different than homeowner? Schabo said business collection is not ideal; you don�t have the leverage of affecting credit, so it�s a lower percentage of recovery rate. In her experience, most corporations are more protected. If you have banking information, EIN number, they can attach a bank account. Usually, if businesses aren�t paying, there�s no money.

Weddig said the majority of debts are late fees/penalties. Schabo said they can collect either interest or penalty. Vande Castle said that�s an aspect of the statute that deals with the enforcement aspect, provides a series of penalties including interest and late fees. Schabo said that�s different from most of their clients but they�d follow what our policies say legally. Weddig and Kufrin asked if there�s potential for a variety of accounts that have never filed and we give estimates based on comps. Vande Castle asked if they also handle post-judgment accounts. Yes. If Zone takes a judgment but gets no action, they can collections for attorneys, too, and can garnish wages, etc.

Kufrin: noted that 70% are private owners, some are LLCs, trusts, the owners live in several states. If someone�s in Chicago, what do you do? Schabo said they have a list of restricted states [Note: mistakenly listed on Comparison Sheet as �approved states� - mea culpa]. Those states collections are forwarded to another collection agency. It is hard to collect out of state. Starr asked if it�s harder if the ownership is a trust. Schabo would have to check into it. Vande Castle said a common vehicle for estate planning is a revocable trust; while the owner is alive, it�s still individually owned and operates off Social Security numbers with no separate tax ID number. Some are irrevocable with separate ID number but it�s unlikely for what we�re doing. Schabo said they can research personal information and SS numbers.

Kufrin noted that Schabo had identified a minimum amount to pursue as $350. Schabo said to make it cost-effective for legal action, that would be the minimum. But they collect on lower amounts. Vande Castle cited the provisions in the statute and local ordinances that allow the addition for cost of collection. We can get court costs but also the cost of prosecution. Schabo asks if we could also get what Valley would get in commission. Vande Castle said it�s possible, but so far he has dealt with court costs, accounting and legal fees, which are defined as part of collection costs, and the local court ruled it that way. He�s not sure pre-litigation costs could be added. The bill would include service of process fees, expert witnesses, accounting with prosecution, legal fees submitted to the court (�Bill of Costs�) and becomes part of judgment. Schabo said they�re able to get those back if they win the judgment. Weddig noted that after a judgment, could we tack on Valley�s fees if the law allows us to do that? Schabo said with their regular medical clients, they can only do one or the other (collection, interest or penalty).

Kufrin asked why the Commission should pick Valley. Schabo said she has been with the company three years, has dealt with clients using other state agencies. They have good customer service and collect more. If they feel the odds are in their favor, they will go the legal route. Some larger agencies may not with lower volume of accounts. Valley tries to service all clients. She�s the liaison. They have four collectors, a researcher, data entry, and Jim/owner, who was a CPA for Schenck. The other owner is Roger Schavlik. No clients in Door County. Valley�s overall recovery rate is 34%; that is on the higher end for collection agencies. If we�ve gone through procedures and had no luck, collections are difficult. Have to have a mindset of writing them off. The main office is in Appleton.

Nelson asked about the contractual relationship and term. Schabo said there�s no time for a contract, although collections do take time. The longer they leave it in collections, situations/finances could change for the debtor. Starr asked if something is entered into credit reports, then things work out within two months, what happens to credit report? Schabo says it�s taken off as settled but it still affects the report, even though it�s seen as a past issue.

Kufrin asked what kind of reports we would get. Schabo said it�s up to The Zone. Some clients go to the website, look at accounts any time. The website has brief notes, judgment entered, �debtor ignoring� and so forth, entered by collectors. They aren�t detailed notes but give an overview. Or we could get a hard copy in mail.

Vande Castle is currently working on the largest claims, about $15-20,000. It�s difficult if the owner is out of the area. His firm isn�t licensed to start lawsuits in other states. Schabo said Valley doesn�t do out-of-state legal, either. Kufrin asked if someone in Illinois owed an estimated $10,000, can they file to the credit agencies? Schabo said it does go on credit file, reported to TransUnion, but they don�t file legally out of state.

Vande Castle felt that even though an owner is out of state, we can still sue them in the State of Wisconsin even if we have to serve them out of state. They own property here, so we can get a judgment by suing the property; judgments are good for 10 years. It�d be a lien when try to sell, and it�ll be on their credit report. Schabo said they can garnish for 20 years except out of state. Vande Castle felt we could garnish out of state if we re-sue them in their state. Once the judgment is filed, we have an interest in property but have to wait for a sale. We can garnish if they have a bank account in Wisconsin.

Weddig cited the need to bring this to the full Commission in December. Schabo left the meeting.

Starr asked if the office goes through our three-letter system, aren�t we talking about going to the collection agency rather than the attorney to minimize legal fees. Vande Castle said if the permit holder has ongoing problems, late every month, not filing, it presents a problem for him. They�re used to dealing with single-event debts. Starr and Kufrin noted that if it�s ongoing, the letters sent start overlapping re: first, second, third notices. Kirkland concurred that it can get complex. Starr asked about looking at an account once a year, going back and sending overdue people to the collection agency. Kufrin said if wait 6 to 10 months before collection, do we stop sending letters in the meantime? It may work better on a quarterly basis where everyone who�s reached 120 days goes off to collection and we aggregate them. At that point, we�d stop sending notices because we turned them over to collection. If late again in the new year, we�d have to start sending letters again for 2011 and only 2011; those that occurred in 2010 or earlier are already sent to collection.

Kufrin noted the revenue stream and best time to pay. Once we choose a collection agency, we can tell them our current practice and ask if the agency feels it�s appropriate and workable in the real world. Vande Castle felt a collection agency will run into same problem in dealing with multiple events. Does WPS have a collection procedure? They shut off power. Weddig: If late and got letter, will go to collection in 90 days, I know it right away, will be reported. Vande Castle said a water utility has to provide service; anything late is put on property taxes, but we don�t have that option. Lensert said the Dept. of Revenue sales tax statements come out with multiple periods and time frames, an intent to levy, similar to what we�ve been doing but we need to revisit.

Starr asked if the Executive Committee should make a selection and make an effort to put a policy together. We could pick a time window, do it annually or seasonally at the end of the season, at that point is cut-off date. Then any delinquency is forwarded to a collection agency. Lensert suggested interim steps if the amount is large.

Kufrin asked Kirkland get written answers from Valley and Associated on out-of-state collection. For the December 7 or 9 meeting, we need copies of their agreements, a list of who�d we turn over to an agency, who owes us money beyond 90 days, and estimated amounts. Then we can make a decision who to recommend for the December 16 meeting.

Larson would vote to recommend Associated now. Valley seems restricted and its fees are higher. Valley is a smaller business. Associated would go after lower amounts. Larson had the feeling that Donohue could do it and it seemed more professional. Nelson said it comes down to personalities; he didn�t disagree and Associated would be his primary choice. Starr liked both. Larson moved to recommend Associated; Nelson seconded. All ayes. Kirkland will still follow up on out-of-state procedures, etc.

Discussion on Specific Enforcement Actions on Noncompliant Properties
None beyond what has been mentioned.

Adjournment
Larson moved to adjourn; Starr seconded. All ayes. The meeting adjourned at 12:30 p.m.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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