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HomeMy WebLinkAboutMinutes 08/29/2000 CALL TO ORDER- REGULAR MEETING: ROLL CALL: Approval of Minutes Lodging Tax Revenues Copeland Marketing Agency Funding Requests LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington August 29, 2000 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 2:00 p.m. Members Present: Councilman Wiggins, Councilman Carnpbell, Zoe Bay ton, Carol Griffith, Jim Haguewood, Patty Hannah, Bob Harbick, John McCullough, David Morris, Steve Oliver. and Bill Rinehart. Members Absent: None. Staff Present: Manager Quinn, Economic Development Director Smith, and Clerk Upton. Others Present: Rick Hert, Troy Woody, and LouAnn Yager. Approval of Minutes: Bill Rinehart moved to approve the minutes of the August 8, 2000, meeting. The motion was seconded by Zoe Bay ton and carried unanimously. Lodging Tax Revenues: Tim Smith reviewed information prepared by the Finance Department on lodging tax revenues, noting that budget projections for 2000 were $174,000 each for the first and second 2% tax. Revenues are coming in better than projected, and if second half revenues for 2000 are similar to last year, the total should be at about $190,000 each for the year. Available reserves at year end should approximate $125,000-$130,000. Bob Harbick noted this to be an increase of 13%. and David Morris compared this figure to the increase in Park revenue which is at about 15%. Copeland Marketing: Rick Hert advised the committee that he and Troy Woody had been working with Copeland on the advertising campaign. It is planned to have a "roll out" of the campaign on Friday, September 15. Advisory Committee members, as well as the City Council, will be invited to attend this event. Agency Funding Requests: Rick Hert distributed copies of the room tax requests submitted by the different agencies typically funded by hotel/motel taxes. He advised the committee that the ChamberNCB plan to coordinate as many brochures as possible. In addition, every effort had been made to attract new projects and activities for next year's funding. Mr. Hert summarized the individual requests submitted and the amount suggested for funding by the ChamberNCB. A questionable item for funding was the Marine Lab, and Manager Quinn indicated he was attempting to obtain funds for the Lab through the City's General Fund. Discussion followed on possible ways of avoiding duplication on brochures, as well as the need to coordinate into one marketing tool the guide or planner for things to do while visiting Port Angeles. Also discussed were the various agencies/activities receiving funds and whether they attract out-of-town visitors who stay in the lodges. -1- LODGING TAX ADVISORY COMMITTEE August 29, 2000 Agency Funding Requests (Cont'd) Consideration was given to the need to coordinate activities with Victoria, and Rick Hert indicated conversations are ongoing with Victoria, and it is hoped Copeland can be of assistance in this area. The group discussed Parks & Recreation activities, and Manager Quinn expressed the hope to maximize entrepreneurial activities in Port Angeles to generate positive revenue ~ for the City. He expressed his commitment to make up the differen~r Parks & Y Recreation through the General Fund, with the contmgency that $500 would go to the Peninsula International Relations Association. Carol Griffith drew attention to the Lodging Tax Advisory Committee minutes of March 24, 2000, at which time Manager Quinn expressed his willingness to wean the Parks & Recreation funding out of the lodging tax arena. Manager Quinn confirmed this is still the case, as he felt it important to take as much pressure as possible off the committee in terms of funding Parks & Recreation. However, to that end, he urged ongoing support from the committee to fund capital facilities at the level of$IOO,OOO per year as previously agreed upon. Jim Haguewood felt there should be more events in the community. and he questioned why marketing of events is still funded in the original 2% consideration and not funded via the advertising campaign financed by the second 2%. Rick Hert responded that Copeland is working towards a broad-based plan in order to introduce a "get to know Port Angeles" campaign. Discussion followed, and Jim Haguewood clarified that some of the events should be blended into the Copeland plan in order to free up funds for new events and activities. Reference was made to the previously introduced concept of a "base camp" and how this might be relevant to the funding consideration. Lengthy discussion followed. and Jim Haguewood emphasized the need for thiS committee to commit to making funds available for a special and new events. Tim Smith discussed past and often unsuccessful efforts to solicit new events and activities. Troy Woody offered caution that the committee should not alter the funding to the extent that the broader scope of the advertising campaign will be jeopardized. Brief discussion was held on funding PlRA, and Rick Hert supported some funding by virtue of the international events in the Sister City arena. David Morris pointed out that there must have some miscommunication, as he was certain the Juan de Fuca Festival of the Arts would still need funding. The suggestion was also made that the Hurricane Ridge funding might need to be weaned. After much discussion, the following funding levels were agreed upon by motion of Steve Oliver, second by David Morris, and carried unanimously: Chamber of Commerce ................... ....... . . . . . . $50,000 Jet Ski Race ..... 2.500 Visitor & Convention Bureau . . . . . . . . .. . . 45,000 Big Hurt 1.500 Parks & Recreation ............. . . . . . . . . . . . . . . . . 2S.000 Bayrishe Radafunk Bike/Press Tour . . . . . . . . . . . . . . . . . . . . . . . . 2,200 Hurricane Ridge Ski Club .................................. 4.000 OBTA Baseball Association ................................. 200 Clallam County Historical Society ......................... 2.500 Jazz in the Olympics ................ . . . . . . . . . . . . . . . 2,500 Storytellers . . . . . . . . . . . . . . . . . . . . . . . . . . 2.500 Blue Grass Festival ......................... 1,000 LonghouseAssociation ................. ........ 1.000 PADA Art on the Town Brochure. . . . . . . . . . . . . . . . . . . . . . . . . . .. 1,000 Total........................................ $143,900 Contingency .................................. $ 10,000 - 2- LODGING TAX ADVISORY COMMITTEE August 29, 2000 Agency Funding Requests (Cont'd) The committee reviewed the funding levels just approved and calculated the financial projections as follows: $130,000 390.000 $520,000 Reserve Projected through 2000 2001 Projected Revenue - 153,900 - 50 000 $316,100 Programs / Contingency Vern Burton Debt Service Marketing (unknown beyond July, 2001) & Capital Consideration was given to the benefits of moving the contract for marketing to a calendar year, in keeping with the City's fiscal year, a matter which was supported by the conunittee. On a previously discussed matter, Steve Oliver expressed concern there was a lack of understanding about Hurricane Ridge and the marketing strategy. He noted that Hurricane Ridge will not compete with an alpine ski area but, rather, it can be packaged for many winter activities. He was further concerned with an earlier suggestion that Hurricane Ridge be weaned from lodging tax funds. Based on other future opportunities to generate revenue, it is hoped Hurricane Ridge won't need to ask for funding in the next couple of years. Councilman Wiggins acknowledged Mr. Oliver's commentaries, noting that the subject might deserve further discussion by the committee at a future meeting. In the ensuing discussion, the committee considered the level of reserves available, as well as convention center funding. It was suggested that a future meeting of the committee be held to consider melding the two taxes into one budget, to discuss the Hurricane Ridge funding opportunities, and to identify a means by which the committee could get the word out to the public that funds are available for special events in the area. Next Meeting Next Meeting: It was agreed the next meeting will be held on Tuesday, September 19, 2000, at 2:00 p.m. Adjournment Adjournment: The meeting adjourned at approximately 4:00 p.m. ~' ~ginS' Chair b~ih~ .J.Jptn^ Becky J. Up, Clerk - 3-