Door County Tourism Zone Commission : Meeting Minutes

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October 16, 2008 Door County Tourism Zone Commission Meeting

DOOR COUNTY TOURISM ZONE COMMISSION
MINUTES OCTOBER 16, 2008
Egg Harbor - Village

ACTION ITEMS:
Nelson moved and Weddig seconded to approve the September 18, 2008, minutes as amended. Motion passed unanimously with exception of Kufrin, abstaining since he was not present.

Nelson moved and Neddersen seconded to approve the September 10 Finance Committee minutes as submitted. Motion passed unanimously.

Kufrin moved and Stayton seconded to approve Resolution No. 2 of the Community Marketing Program, authorizing the agreement between Sturgeon Bay and the Door County Visitor Bureau (DCVB). Motion passed unanimously.

Stayton moved and Skare seconded to schedule an extra meeting to review the DCVB budget at Sister Bay�s Fire Station at 9 a.m. on November 6. Motion passed unanimously.

Nelson moved and Larson seconded to pay the bills. Motion passed unanimously.

Nelson moved and Larson seconded to raise Kirkland�s hourly wage by 3%, effective immediately, and beginning in January to contribute the full 10.6% share of employer/employee contributions to the Wisconsin Retirement Fund. Motion passed unanimously.

Committee Members Present by Roll Call: Bob Kufrin, Chair; Bill Weddig, Bryan Nelson, Carol Stayton, Chuck Tice, Craig Neddersen, Diane Jacobson, Dick Skare, Little Bit LeClair, Mary Boston, Sarah Hastings-Sawyer
Excused: Andy Coulson, Amy McClelland, Nancy Goss, Nora Zacek
Also Present: Jack Moneypenny, Jon Jarosh, Mary Denis; representatives from eBrains and Geiger; Richard Briggs as new Town of Sturgeon Bay member and alternate Bob Brown; Dianne Lensert, Kerber Rose; William Vande Castle, Esq.; Kathy Kirkland, Administrative Assistant

Call to Order
Chair Kufrin called the meeting to order at 9:00 a.m.

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

Approval of Minutes of TZC Meeting September 18
Tice noted that in pg 1, line 23, �Intergovernmental Agreements expires in 2011.� Line 27, should be �did expect� some municipalities to exceed the limit. Line 29, should be �Jeff Larson joined� not �Chuck Tice.� Also throughout all, should be �Sturgeon Bay Visitors Center� not Bureau. Kufrin noted he�d also seen it as �Convention & Visitors Bureau.� On pg 3, line 25, add �archive� between �the� and �voice.� Nelson moved to approve as amended; Weddig seconded. All ayes with Stayton abstaining because she didn�t receive the minutes and Kufrin abstaining because he was not at the September 18 meeting.

Approval of Minutes of Finance Committee Minutes September 10
Nelson moved and Neddersen seconded to approve the Finance Committee Minutes as submitted. All ayes.

Update on Status of New Member Communities
The Town of Sturgeon Bay voted to join the DCTZ, and Richard Briggs, owner of The Orchid Inn B&B, will be on the Commission. His alternate, Bob Brown, owns Along the Beach B&B. They are present today but not able to vote at this meeting pending a signed Agreement. Tuesday evening, Brussels voted to join and signed the Agreement that night, Moneypenny stated. Kufrin asked about locations for meetings as we grow. Stayton said if we have a list in advance of who has a month, we can plan in advance.

Moneypenny said that on October 21, the Town of Union will vote and we�re hopeful. He has been there and talked to them, and because of the new highway, they will likely join the Zone and help re-identify the area. The Town of Forestville is putting it back on their agenda this month. Village of Forestville and the Town of Clay Banks will be left.

Approval of Community Marketing Program between City of Sturgeon Bay & DCVB
Kufrin met with Sturgeon Bay City representatives about a middle ground and �sunseting� into a Tourism Zone Agreement. He presented to several groups in August and September, and Moneypenny has also worked with the City. The Community Marketing program was presented to the City and Board of Directors; both approved the documents before the Commission. There�s a redlined version today. The Community Marketing program is drawn up between the City of Sturgeon Bay and the DCVB. Since it involves Room Tax dollars, we must approve that agreement.

Kufrin moved to approve Resolution 2, authorizing and approving community marketing by DCVB. Stayton seconded. Neddersen felt it�s a good concession to get the long-term goal and asked what the vision of the program is for three years and beyond; how is Moneypenny going to allocate staff to manage this cumbersome additional program?

While Moneypenny thoroughly endorses the program, but that doesn�t mean he feels it�s a great idea. It�s a bridge to take us where we need to be. It requires more time to manage 8 to 10 additional entities through the year and how they�re spending. The good will outweigh the challenges. A percentage of the money goes back to the communities, with each assigning a marketing entity that the DCVB will work with. These are marketing dollars and have to spent within State statute regulations; there will be a list of how local marketing entities can spend the money. Each will have to report back to DCVB as to how the money was spent. The DCVB is responsible for how these program dollars are spent; some communities have not dealt with this concept before and will need help in assigning those responsibilities to local marketing entities. He feels it will strengthen the visitor�s network to build a brand identity as a whole community and work with co-op opportunities to identifying each municipality.

At the end of three years, Moneypenny hopes the communities will have a sound base on spending, not just hiring someone with the money and then possibly having to let them go. There�s a staff readjustment at the DCVB. PR and Communications and Marketing � the marketing person will help manage the process. If there�s someone else needed, they�ll look at it, but it�s a good team for three years, at which time they�ll reevaluate. Ultimately, it�s to build community visitors centers to all have the same message. Neddersen asked whether the DCVB would take on the municipality employees and try to oversee all; Moneypenny would rather have partnerships with guidance and leadership to communities. So many are volunteers and don�t have staffs or background in marketing.

Kufrin said once the agreement is approved by the Commission, Moneypenny will send a letter to all member municipalities asking them to designate a local marketing entity, one that has been in business as of January 2008. Some will be a challenge because there is no existing entity or there may be multiples; the town board will have to be the one to decide the entity. This would be an irrevocable decision for three years. Moneypenny said once Sturgeon Bay signs, it�s drafted for every community; each has to agree to put together a marketing plan, specify a number of things for which they take responsibility. If a community does not assign a local marketing entity, their share automatically reverts back to the DCVB for marketing. Once all is in place, there�ll be a Community Marketing Fund (CMF) meeting to explain for everyone. Kufrin said communities can designate any local marketing entity; it doesn�t have to be one within their community limits. Nelson said the CMF funds have to be used under State statute for �heads in beds.� Kufrin said it�s the same criteria for DCVB�s marketing budget. These are restricted funds; only the 30% is unrestricted.

Stayton would like to avoid turf wars. She agrees it�s a bridge and a good strategy; it�s important to note that this is Moneypenny�s anniversary. Both Moneypenny and Kufrin have done an outstanding job to get us to this point. Moneypenny said when the plan started, it had to be fair and equitable; Stayton feels it will have to be tailored as we go. This is unchartered territory.

Kufrin and Moneypenny don�t want the new plan to be detailed with every issue addressed; it could die on the details. When Moneypenny prepares the grant operation, it will help communities flesh out what they need to do.
Tice asked if a town/village doesn�t have a local marketing entity, can the town or village board assume responsibilities? No, it has to be a marketing entity that was in place as of January 1, 2008; if, for example, the Town of Sturgeon Bay wants to hook up with others nearby, they could go to the same entity. The Town of Sturgeon Bay isn�t eligible for next year; you need a year�s history before you�re eligible, so it would be Years 2 and 3. Only funds going in to the CMF are extra dollars from Sturgeon Bay; communities still get the normal 30%.

Neddersen asked if Sturgeon Bay is clear that it�ll sunset in three years and everything goes back to the original formula. Discussion regarded the need for all organizations to channel these dollars into something that can go on beyond three years and requires investment. Some entities let everyone else handle it but they aren�t up to speed on what they need to do. This makes communities actively invest and have accountability.
Moneypenny said by March 1 of each year, the communities will have to report how the money was spent; the DCVB then brings that package to the TZC in April to talk about the investment and what differences it has made.

Tice asked when the community meeting will be? Moneypenny says if it passes today, he considers it a done deal with just the signing. Kufrin said he, Kirkland, and Lensert will meet with Sturgeon Bay�s clerk and people who need to draft the ordinance and transfer information so that over the next couple months, all permitting gets taken care of. The City needs postings in two meetings to pass an ordinance. When we send out permits in early December, it�ll be based on an actual ordinance.
Nelson called the question. Vande Castle asked that signature lines be added on the bottom of the marketing agreement. One correction on Line 33, �intending to increase lodging.� All ayes.

Report from Door County Visitor Bureau
Jarosh, Denis, eBrains, and Geiger are here for questions. Moneypenny felt that, anecdotally, he has heard everyone�s totals have risen in the county this year. The numbers prove it, the Visitors Guide and website drive people to us. Moneypenny feels that starting with no base, we�ve had a great first year to build a platform with organizations, distributing literature to other organizations through Denis. Busses will stop at the Visitor Bureau and get trinkets for a Meet �n� Greet. It�s great fillers/shoulder season business. Tice asked Moneypenny what we can do to change the way we�re promoting Washington Island. It keeps coming up as a day trip ride, which is a disservice. He can�t answer those journalistic preferences; campgrounds are the same way. We just have to make all choices available. In general, the Island was consistently presented by Geiger as a day-trip destination but not for overnight stays. Moneypenny wants to sit down and find out how it can be improved; Geiger is only one part of many things. The Island is different but has to be promoted faithfully. Kufrin said it�s up to the Washington Island Business Association to articulate the message they want broadcasted; Stayton feels it�s a Geiger project. Neddersen states this is an unhealthy conversation; we�re overseeing a year-round marketing, and individual community disagreements are out of place. Kufrin agreed.

Finance Committee
The Committee met on Tuesday and since that day�s report, additional dollars have been collected. Lensert said the August revenues of $612,130 is now $627, 965 or a 3.8% increase. (See box on Comparative Sheet A.) Lensert is not reconfiguring individual municipalities each time, so the box at the bottom is the accurate view. Kufrin said that now we�re into a year, we�re starting to see trends and consistency. Questions on reports? Weddig stated that numbers will continue to go up as collections come in; Kufrin agreed. We may be over 4% when all is collected. Nelson said in the Finance Committee meeting, it was suggested with Lensert that we close it out the previous year in February; most collections should be in by then.

GEIGER PRESENTATION
Debbie Geiger presented the report. It has been 1� years since the first press tour. Some of the objectives included positioning Door County as Wisconsin�s premier vacation spot, fairly undiscovered, capitalize on name recognition and brand identity. Geiger has helped unite various tourism offerings under the brand so they market as an overall destination. Introduced new components of county�s tourism; such as Gordon Lodge�s new meeting and conference abilities to approach different entities.

One increase in tourism is publicizing off-season advantages, encouraging four-season visits. Twenty-seven journalists came last winter. They�re reaching niche interests�cherries, arts experience, Christmas, ethnicity, bicycles, etc. They are differentiating the county from other upper Midwest locations, broadening into markets too expensive to reach through paid advertising. Educating about the scope and diversity increases stays; for example, 56% of visitors are staying three nights or less; a year ago, it was 65%, so 10% are staying longer.

Geiger has an updated report on media coverage to give a sense of specific articles. Most cover county wide. Many articles include DCVB contact information as well as hotels, restaurants, and places the individual reporter suggests.

Keywords spotlighted include the following:
�Outdoor recreation.
�Heritage tourism. Lighthouses, historic architecture, Swedish heritage.
�Group tours. Mary Denis is the liaison in targeting group tour publications.
�Canadian. The Canadian dollar does well here.
�Cape Cod of Midwest�to reinforce our past branding.
�Cuisine. Coverage of restaurants providing meals for journalists, fish boils, Al Johnsons.
�Retail. Individual stores are getting coverage.
�Agro tourism. Cherries, cows, you-pick-it.
�Accommodations. Geiger pushes all products but many journalists write about lodgings.
�Off-season travel. Winter coverage as a result of last February is starting to come out. Winter vacation packages, Valentines, etc.
�European publications. Some coverage has run in Europe and more is scheduled; it�s prohibitively expensive to advertise there.
�Art. More art coverage coming out.
�Non-traditional markets. Places such as Florida where people go to cooler weather in summer.
�Washington Island. Every community has gotten reasonable coverage but the Island has had the most of a standalone destination. All articles do mention places to stay. The church is an icon for the articles. There are more scheduled such as the culinary school.
�E-Media. Reinforce eBrains and add to Internet (AOL Travel)
�Passport Newsletter. For the more well-to do.
�Real estate. One journalist liked the angle of real estate for second-home buyers.

Complimentary air travel has been provided by sponsors valued at $59,100. Another press tour is this weekend. The DCVB does not have to pay.
So far, 142 journalists have visited, 136 articles already appeared. There are 38 new articles coming out as noted in the report. Three in-flight airline articles are scheduled. Editorial coverage for all articles published to date has reached more than 10 million readers. These figures are from the ad kits. If purchased as paid advertising, would�ve cost $861,295; the next month, it�s national coverage and would increase tremendously.

Questions? Neddersen wants to know with the number of articles yet to appear. If we didn�t spend one more dollar, what articles are in the pipeline? It�s hard for her to guesstimate. One journalist might write four articles but magazines have a longer lead time, so it could be a few years. Freelancers try to sell the story as many times as they can. They invite journalists who have a good track record for this market. Skare asked about screening of journalists; some don�t write well. She said no one has written negative comments. Geiger chooses from a pool of 14,000 journalists in their database and coordinates approximately 80 large group press trips a year for clients around the country. The client talks about the market, and that�s how the journalists are invited. The airlines are not interested in giving out tickets to just anyone; they�re also approved by the airlines. It�s not an exact science. Skare said there�s frustration when you say �we don�t pay them,� but businesses donate quite a bit on a businessperson�s level. She stated that no individual owner is providing in-kind value as much as it would cost them to have individual representation.

Nelson wants to know if Tracy briefs and influences journalists. She said yes do; Washington Island people have access to the journalists with Jon Jarosh on hand. Theoretically, each business is putting their own message out there, but the journalists pick and choose. Stayton said they get off the ferry, go to a Cherry Train, go to a restaurant, are put on a boat and they�re gone. Where was the DCVB representing in a balanced way? Jarosh said the tour in August, �Islands of Door County,� was based on Washington Island, and they were on the Island three nights.

Tice said when we set up a travel tour, please choose a writer willing to go to the Island for each group coming to the county. Kufrin said that may not be the tour�s focus; Moneypenny and Geiger need to discuss specific tours. Weddig asked about protocol if we see an article that was outstanding, can we suggest that writer for another publication? Geiger said they�re receptive to publications, and all the communities were asked about how it would work and sought input. Now, publications are looking for good-value destinations. Weddig is specific to the journalist; how can we get the writer and a paper like the Tribune together? Geiger said journalist contracts may restrict how they use the article; Geiger likes using syndicated journalists.

Neddersen asked if we�ve reached critical mass? Do we need 10 more years, tailoring the markets more? Where are we and where should we be going. Geiger said you fine-tune as you go along. Different tracks on different press tours. A lot of clients have been with them 10 to 20 years but haven�t felt they could stop marketing. Neddersen asked if we should spend more or less? Geiger said they�ve reduced the budget for next year because we already have a press kit and research�they have the foundation.
Moneypenny said we need to remember if we stop using an entity, it would continue for awhile, but once the articles stop, it takes time to build it up again. We need to continue the Geiger partnership. There are some problems but it�s an important tool that needs to continue.

eBRAINS
Larry Dickerson presented the report. eBrains presented recommendations 13 months ago for online presence. You need to get in at the right time. The eTourism Summit states that more than 80% of travelers start planning online. We need to establish a base first; if travelers are online, what kind of electronic community are you going to build? After you bring them in, you have to fulfill the promise. Online is an effective way to create longtime value and stay in touch on an ongoing basis. eBrains maximizes existing audiences and reaches new ones. The Zone gets a guaranteed 50-to-1 return on dollars invested. eBrains wants to get the core market but also new markets.

Plan Analysis finds full online initiatives, working with 18 to 20 states around the country. Plan Analysis sifts out what online consumers are looking for. Website Analysis and Opt-In Recommendations are �organic leads� are those who sign up for ongoing information. Online Brand Perception/Awareness Audit: Bloggers are huge, with more than 100 million blog sites.

What is the awareness of Door County? There�s room for more awareness, but it�s almost 100% positive. Across all sociodemographics, the common theme is �beautiful.� This means you can sell on the high and low end. There were challenges about what to do with kids, shoulder seasons�both are packaging items.

Results: eBrains has �harvested� 101,00 permission-based opt-ins to get information on Door County. The database previously was 18,000 people; it�s now 146,000. They�ve delivered 66,000 click-thrus to the DCVB. Another group of 25,000 to 30,000 opted-in on the DCVB website. �Paid Search� mechanism and Googling: There�s still room to do more through Paid Search Engine Marketing. Those people are travelers, staying longer and spending more, so it�s a good investment. If we already show up in an organic search, why pay? Consumers actually have more confidence if the search comes up with a paid ad; users don�t trust raw information. The video creation produced by Hastings Video has helped.

More than 2.25 million optimized and tested e-mails have been sent, which delivered 81,000 clicks to DCVB and its partners. A conversion study was done, asking about travel habits, another study is scheduled for spring 2009. Website visits are up 29% from Sept 2007 to Sept 2008, more than 51 million impressions of Door County (100,000 people to 51 million is 50-to-1). There have been 256,586 clicks to doorcounty.com. Twenty-five percent of fall leads led to visits, resulting in $9 million in spending here. The ROI is 179:1; 64.5% opt-ins reported visiting Door County. Next, they�ll take the next 60,000 folks who traveled after June.

Future: Continue to optimize and integrate Door County�s online marketing. It�s competitive, and in this economy, more domestic people will make decisions by whether they find us online. Online is here to stay. Stayton asked if there�s a way to see the effect on foreign travel. Washington Island had visitors from the U.K., France, Germany this year. Dickerson said you can�t overstate the issue of the value of the dollar. Optimization is key for a search engine to find Door County for an international audience. You could build sub-sites in other languages such as the Chinese market.

Kufrin comments that Sister Bay�s Bhirdo was looking for information about Door County events on the Internet and noted that many local sites have inaccurate dates, things that no longer exist, they�re not updated properly. All our groups need to look at our own messages, with all linking back to the DCVB. Stayton feels in the last year, there has been DCVB improvement on the website in getting events on, follow-up. Kufrin said many are niche, small groups are becoming active. Dickerson said the DCVB is attentive to content. Websites have to be easy to navigate, have current information. Even if we�re able to bring people to the �DC Mall� (our own website) the vast majority will go someplace else to book the lodging; each place should have a relationship with an online travel agency (with fee). Stayton said local sites should use CMF money to bring us up to speed. If someone is a consumer and Googling, it�s important that they end up at a site relevant to them, makes them purchase, stay longer, spend more. Our brand as a group needs to make sure that one of the sites has search engine optimization behind it.

FINANCE & BUDGET
Neddersen said the Finance Committee�s Tuesday meeting determined that we�re still using the number decided on September 18 as total revenue: $2,550,000. There�s has been no noted downturn in lodging even through October, so we do not predict changing our optimistic predictions. We�ll encourage the DCVB to have fallback funds for cash flow. The TZC will have numbers to Moneypenny in the next couple of days based on revenues. The committee meets again on October 28, and Lensert and Neddersen will report the budget for approval at a November 6 meeting. We can spend up to 4% for administrative, and we�re clear that with some of the expenses have already been complete, so we�ll have surpluses. We�ll have to decide how to handle surplus. Kufrin said that discussion will be in context with Moneypenny�s discussions.

Moneypenny will work from the $2,550,000. He has spread the dollars across the budget based on history, increase, CFM, etc. The executive committee and Board need to approve; he will sent out the preliminary budget and strategic plan on November 3 and present to the Commission on November 20. Kufrin feels Moneypenny should provide direction so he can plan for the beginning of next year; he does not want a delay on the November 20 meeting. Can we schedule an earlier date to go over things so that by November 20, any issues are resolved? There might be something on the agenda re: CFM or new municipalities, but it�ll be mostly budget. Moneypenny feels with the personalities involved and responsibility, he�s going to present a thoughtful schedule and budget as a PowerPoint presentation with 10 points. All will have time to read through it. Neddersen says we�ll have new members voting on it, so there may be a learning curve. The larger contracts to the third party should be attached to the budget to help eliminate questions. Kufrin said if there are questions once the members get the information on the 3rd, call Moneypenny before the 20th meeting. If there are serious issues, we can call a special meeting prior to the 20th; don�t drag it beyond November. Stayton wants to reinforce the point that it�s easier to cancel a meeting than set one up. Larson feels we shouldn�t micromanage; if the strategies match the big number, it�s Moneypenny�s responsibility.

Moneypenny would like to ask that, through the last five months of the year, once we have January�s payments, that anything left in the pot should be given to them. The pot doesn�t start building until the 5th month, and he doesn�t want to go for a 30-day loan. Stayton moved to schedule a DCVB to review the budget in Sister Bay�s Fire Station at 9 a.m. on November 6. Skare seconded. Moneypenny said each department head will talk about their responsibilities. All ayes.

Administrative Assistant Report
Kirkland asked for questions on her report. New permits are down, as expected, but she will spend time finding the new municipalities� lodging people. The website is fully functional now, and we have a link to the DCVB. Weddig read about issues with online filing in Finance Committee meetings�we need to encourage filing online. Kufrin said we�d talked about it at Finance; if there are 700 permit holders, about 150 are traditional businesses, with 550 or 600 being ones and twos. Online payers are mostly businesses; we need to get the one-two cottage condos, etc., that we�re having problems with. Nelson said it�s costing a lot of money to input checks, reconcile, etc. Lensert said we can reinforce use when we do mailings.

A Davidson-Petersen study will be contracted with the DCVB; they�re going to invest in their own survey and contact all members of visitors in Door County to get specific against the guesstimates.

Tice suggested that the Commission apply for a credit card assigned to several people so people don�t have to pay out of personal funds. Stayton asked if executive committee makes that decision? Kufrin said Kirkland has regular expenses but we have accounts for most vendors. Should it be on for November�s agenda? Vande Castle suggested that the Finance Committee or Executive Committee could decide.

Tice noted the problem with Kirkland�s paycheck signing since two signatures are required; can we have electronic deposit for payroll? Lensert said it just needs authorization. Tice said one signature could be put on a check now and then Kufrin sign. There are two options that will be looked into, and the Finance Committee will make that decision.
Nelson moved and Larson seconded to pay the bills. All ayes.

CLOSED SESSION
Kufrin moved and Nelson seconded to go into closed session as per Section 19.85(1)(c)(f). The Commission went into closed session at 11:40 and returned to open session at 12:10 p.m.

OPEN SESSION
Nelson moved and Larson seconded to raise Kirkland�s hourly wage by 3%, effective immediately, and beginning in January to contribute the full 10.6% share of employer/employee contributions to the Wisconsin Retirement Fund. All ayes.

Adjournment
Stayton moved and Weddig seconded to adjourn. All ayes. The meeting adjourned at 12:25 p.m.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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