Door County Tourism Zone Commission : Meeting Minutes

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September 9, 2010 Door County Tourism Zone Executive Committee Meeting

DOOR COUNTY TOURISM ZONE COMMISSION
Executive Committee
Minutes of September 9, 2010 � 8:30 a.m.
Kerber Rose & Assoc./Sister Bay

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

Starr moved and Skare seconded to approve the August 19 minutes as submitted. Skare seconded. Motion passed unanimously.

Starr moved and Weddig seconded to approve Kerber Rose reports and payables. Motion passed unanimously.

Kirkland to compile legal fees on Hanson compliance case.

Kufrin to contact Vande Castle regarding authorization before pursuing individual requests.

Kirkland to compile comparison chart of collection agencies for October meeting.

Skare moved to adjourn and Starr seconded. Motion passed unanimously.

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

Excused: Jeff Larson, Bryan Nelson

Also in Attendance: Dianne Lensert, Kerber Rose & Assoc.; Kathy Kirkland, Administrative Assistant

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

Approval of the Agenda
Starr moved and Skare seconded to approve the agenda as submitted. All ayes.

Approval of August 19, 2010, Minutes
Starr move to approve the August 19 minutes as submitted. Skare seconded. All ayes.

Report from Administrative Assistant on Current Activities
Kirkland reported that the Official Payments and Bay Lake Systems people are working on final touches for the credit card payment; it�s almost ready for us to beta test. The password-change function will be done within the week. Weddig asked if the password will expire at, say, 180 days. With seasonal properties, it could get tedious. Consensus was that once permit holders change the logins to their preference, they can keep it with an option to change it but with no time period attached. Lensert will discuss with Bay Lake.

Kirkland had not yet sent July �no report� late letters due to the early meeting date. Late fees/penalties owed to date were paid down by $4,000 since the August meeting, and the balance owed of approx. $7,650 is mostly penalties but $2,565 is room tax itself. The prior week, Vande Castle sent out final notices to nine permit holders but hasn�t gotten any definitive responses except for two owners who paid up immediately.

Hanson has been paying, but the money beyond room tax (on which he is current) has been going to Beach Harbor�s tab since that was the property in the Circuit Court order. Weddig asked if we have recovered legal fees yet. Kirkland and Kerber Rose have been itemizing those fees, and Kirkland will check to see if legal fees (up to that date) were included in the Circuit Court judgment. Consensus was that once the Tourism Zone�s legal fees are satisfied, we could offer a Hanson a more expansive deal because he owes on all four properties. Starr felt that he�s making an effort, and we may want to offer a payment plan for legal fees with relief of late fees/penalties unless he becomes noncompliant again, at which point those old fees/penalties are back on the table and owed. Lensert agreed that it gives him incentive to stay current. With slower months coming, we would have a better chance of collecting our own costs and showing good will. Kirkland will compile a list of legal fees. Skare felt this is part of a training process, that we�re serious about collecting. Weddig agreed but noted the responsibility to collect and pay it; they shouldn�t co-mingle funds. Weddig isn�t totally onboard with credit card payments or the resulting fees to permit holders; however, some may use the credit card option over winter months.

Kirkland researched statistics that might be available for tourist spending/room tax from trade magazines and other sources. JAX FAX magazine stated it doesn�t do stats themselves but referred her to PhoCusWright, an organization that mostly deals with travel companies. A subscription site, it has reports that can be purchased and has seminars, etc. Kirkland handed out a typical (gratis) report and schedule of seminars. PhoCusWright told her that Smith Travel is the best source for detailed stats. Kufrin noted that the DCVB was looking into a mobile version of its website but he hoped it was more than just Apple (iPod), which can�t be accessed here. Consensus was that Kirkland should contact some similar areas to see if they have statistics; e.g., Traverse City region which is similar to Door County, Mackinaw Island, etc. If we find good ideas or statistics, we can pass them on to the DCVB. Starr asked if innkeepers are taking ideas to Moneypenny. Innkeepers have to feel welcome to give input. The �Coffee with Jack� events are mostly social or listening sessions unless someone is upset about an issue. It�s still hard to measure results through eBrains. Weddig said the Community Marketing Fund is a topic of discussion and what it means for Sturgeon Bay.

Starr noted an article in the Green Bay Press Gazette that stated Green Bay innkeepers are behind substantially in compliance with room tax, although the article says the city has its �hands tied.� It was noted that Door County has set precedents for room tax and success in collecting; Green Bay should follow suit (so to speak). Weddig wanted to know if now that we have one-and-a-half years� of statistics on Sturgeon Bay if we know how that stacks up to the City�s previous room tax collection. Starr felt they didn�t have detailed statistics but it is higher. Kirkland noted that Sturgeon Bay didn�t make a strong effort toward full compliance when doing the room tax on its own. Starr said some private homeowners are probably permitted now; Kirkland said no, it�s all commercial because of the City�s zoning restrictions.

Report on Marketing Efforts by the Door County Visitors Bureau
The DCVB did not turn in the monthly report in time for the meeting; it will be forwarded to the Commissioners when it�s received.

Consideration of Approving Reports and Payables plus Receipts to Date
Kerber Rose reports were in the packets, and Lensert handed out the Checks to be Paid report. Collections YTD are up 6.7% against 2009, with the month of July up nearly 7.3% without late collections. Percentages all the way around are encouraging. July ADR is $146 versus $144 in 2009. All municipalities are up except for Washington Island, Clay Banks, and Liberty Grove. Looking at commercial versus noncommercial can be arbitrary since B&Bs, condo hotels are commercial but other condos are non-commercial. It�s just one more measurement.

In the Financials report, budget section, the Net Ordinary Income YTD is a loss of $11,447.80 but we had budgeted for a loss of $21,200.00. Lensert said this is a reflection of collections being higher and expenses staying in line. Retaining late fees/penalties also helps.

Kufrin noted that an issue has come up with individual commissioners contacting Vande Castle on compliance issues. Kufrin felt that authorization for such contact should come from the chair or the Commission as a whole. All agreed that any contact with the attorney should be by directive. Consensus was that Kufrin should contact Vande Castle regarding authorization he needs before pursuing requests.

Because Nelson, the other signatory for the checks, is not at the meeting, Bill Weddig as new co-chair needs to be on the signature card. Kirkland will go with Weddig to Associated Bank after the meeting. Starr moved to approve payables; Weddig seconded. All ayes.

Kufrin left the meeting.

Consideration of LifeQuest or Other Collection Agencies and Recommendation to Full Commission
There are three options to consider: LifeQuest, Associated Collections, and Valley Credit Services (the last two from Green Bay and Appleton, respectively). Valley Credit sent a full proposal with fees; Associated said they could let us know about fees and sent only a brochure.

Weddig asked if LifeQuest will do collections only on absolute debt. Kirkland said they�ll take estimates, too. Starr noted the fee structure is different for Valley Credit versus LifeQuest (e.g., LifeQuest is 33% to Valley Credit�s 25%, etc.). He is aware of Valley Credit�s CEO if he�s from Sturgeon Bay. There�s concern about LifeQuest still not knowing who we are, still calling us a �municipality� until this third version of the contract. Weddig noted in Article 1 that LifeQuest uses the terminology of the Tourism Zone Commission �issuing fees� and on page 2, talking about validity of accounts, in compliance with state and federal law, which we don�t monitor. Can we take back an account if someone starts making monthly payments, or does Article 3.3 suggest we have to continue with collections? Kirkland recalled that Price said we could pull any account back from them whenever we wanted; however, does that conflict with 3.3 on Subsequent Account Activity? Starr said LifeQuest would have to get their cut; if they have an account and have begun the process, then we�re obligated to let them know if payments are received. Starr�s concern (page 3) is that LifeQuest wants an initial contract term of 36 months, which is too long and has automatic renewal or three-month notice of termination. Starr felt an initial term of 12 months is more appropriate, especially with a new relationship; if it�s working, then consider longer term.

Further, LifeQuest�s Phase 3 (page 4) discusses client responsibility for attorney fees and for filings. Starr felt it�s due diligence to submit to a collection agency; 50% is better than nothing. Consensus was that the Executive Committee not move on this today. As long as someone is making efforts and there is discussion about getting caught up, the last thing they need is to receive letter about a collection agency. However, there is an appropriate time to turn an account over to an agency.

Skare asked which agency everyone is most comfortable with. All agree that Valley Credit is best so far. We�d be teaching LifeQuest. Skare felt if a collection agency has experience in government debt, it has a basis to give advice.

Kirkland will get further details from Associated and do a comparison chart of the three companies for the October meeting. If the Commission feels that one company is the best choice, we can ask that representative (e.g., Ja�Tame Schabo for Valley Credit) to come to the November Executive Committee meeting. There was no urgency in getting it done.

Discussion on Specific Enforcement Actions on Noncompliant Properties
Nothing beyond what was already discussed.

Adjournment
Skare moved to adjourn and Starr seconded. All ayes. The meeting adjourned at 10 a.m.

October Meeting
October 21, 9 a.m. on Washington Island � place TBD.

Respectfully submitted,

Kathy Kirkland
Administrative Assistant

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