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HomeMy WebLinkAboutMinutes 10/04/2001 CALL TO ORDER: ROLL CALL: Approval of Minutes Financial Report - September, 200 I LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington October 4, 2001 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 2:00 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Zoe Bay ton, John Brewer, Carol Griffith, Jim Haguewood, Patty Hannah, Jack Harmon, Steve Oliver, and Bill Rinehart. Members Absent: Bob Harbick. Staff Present: Manager Quinn, Finance Director Ziomkowski, Economic Development Director Smith, and Clerk Upton. Others Present: Russ Veenema and Suzanne Cowart. Approval of Minutes: Zoe Bay ton moved to approve the minutes of the September 20, 2001, meeting. The motion was seconded by Carol Griffith and carried unanimously. Economic Development Director Smith distributed copies of an e-mail from Bob Harbick, who would not be present but wanted to provide input to the discussion to be held at this meeting. Councilman Wiggins directed attention to the next meeting scheduled for October 17, at which time more information will be forthcoming on the Cascadia Center Project. Members of the committee expressed opinions on the worthiness of the proposed project, noting the potential for success. Councilman Wiggins cautioned the group that the project must be viewed for its practicality in terms of financial projections, and Director Smith indicated the level of funding allocations for 2002 would be a consideration if the Lodging Tax Advisory Committee were to commit funds to the Cascadia project. It would be advisable to keep some funds in reserve to be used toward that project. Committee members discussed whether there would be a return on investment, and it was noted that the Cascadia group wanted funds committed by the City in order to attract other outside funds. Additionally, Cascadia has asked the City to donate the property for the project. Financial Report - September, 2001: Finance Director Ziomkowski distributed a summary of lodging tax revenues and expenditures through September, 2001, as well as an itemization oflodging taxes collected year to date. The projected year end fund balance is $115,000, and there has been an overall 5% increase in lodging tax revenues. Patty Hannah inquired as to how the outcome of annexation might impact this particular fund, and Director Ziomkowski indicated the 2002 budget has not been adjusted in that regard. Based on discussions at the previous Lodging Tax Advisory Committee meeting, Director Ziomkowski informed the committee members that funds set aside for a Convention Center were still retained in this fund. Additionally, any interest generated is also retained in this fund. Director Ziomkowski also offered clarification -1- LODGING TAX ADVISORY COMMITTEE October 4, 2001 Financial Report- September, 2001 (Cont'd) in that funds committed for a Convention Center did not come out of the General Fund but, rather, out of the lodging tax revenues. Director Smith provided information relative to the RFPs for a Convention Center in that there were twenty-four requests for the RFP proposal packet. There were approximately six groups working on a proposal; however, only two were ultimately submitted to the City. The two proposals are being reviewed, and an analysis should be complete in the next several weeks. Mr. Smith was encouraged by the proposals, and he expressed the opinion that it appears quite possible that something can be fmalized for a Convention Center. 2002 Funding - Special Events I Marketing 2002 Funding - Special Events / Marketing: Based on discussion at the previous meeting, Russ Veenema had been asked to return with additional information relative to 2002 funding requests for special events and marketing. At this time, Mr. Veenema distributed various documents setting forth the events funded in 200 I and proposed new and expanded events, options for tracking results, criteria for a special event to receive funding from lodging taxes, and information that is to be included in a brochure. Jim Haguewood provided commentaries as a follow-up to discussions held with Mr. Veenema on identifying the "product"; he noted his concern about the need to increase special events. Mr. Veenema reviewed in detail the list of proposed new and expanded events, as well as the criteria to be used in determining if an event would qualify for funding from lodging taxes. After discussion on the criteria, Mr. Veenema then summarized the information that would be included in a brochure, which is intended to entice people to the Peninsula for recreational purposes. He indicated every effort would also be made to direct people to the web site to gain information on other destination style events. He reviewed the options that could be instituted for tracking results of these efforts, and Director Smith felt it important to gain commitments from a group of hotels and motels to receive this information on a consistent basis. The information would prove to be helpful in determining the timing of events to be held. Mr. Veenema advised the committee that confidentiality statements will be signed by the Chamber of Commerce and the owners of the properties before this information can be gained. He expressed hope that this effort can commence as of January 1. The suggestion was made to also gain information as to ferry counts in order to track visits to the Peninsula. Director Smith inquired as to whether reports on the status of funding allocations would be forthcoming on a monthly basis, and Mr. Veenema expressed the preference to provide the information on a quarterly basis. After further discussion, Jim Haguewood moved to adopt the guidelines for tracking results, to include an update on programs and works in progress and anticipated projects, with reports being provided to the Lodging Tax Advisory Committee on a quarterly basis. The motion was seconded by Bill Rinehart. Discussion followed with clarification being sought on the intent of the motion, and Zoe Bay ton felt the information from the ferries would be subject to ferry participation. Mr. Veenema was complimented on the thorough proposals submitted, after which a vote was taken on the motion which carried unanimously. Councilman Wiggins asked Manager Quinn for clarification on funding possibilities for the Parks & Recreation programs, as Manager Quinn had indicated his willingness to attempt to transfer the recreation efforts into the General Fund. Manager Quinn indicated he could anticipate $10,000 in funding from lodging taxes, and the remainder would need to come out of the General Fund. Mr. Veenema felt there was no reason why Parks & Recreation couldn't put in a request for more events, particularly since the mechanism was in place. - 2- LODQING TAX ADVISORY COMMITTEE October 4, 2001 2002 Funding - Special Events / Marketing (Cont'd) Manager Quinn advised the group that, in 2002 and 2003, the City will not be able to maintain the same level of program funding that is currently in place. The Lodging Tax Advisory Conunittee will need to address this issue at some point in time, a matter that was acknowledged by the committee members. After further discussion, Steve Oliver moved to accept the following Lodging Tax funding allocations for 2002: Veffi Burton Conference Center Special Events Ad/Promo Visitor Center Parks & Recreation Peninsula Joint Mktg. Admin. Support TOTAL $ 48,680 100,000 50,000 149,000 50,000 10,000 20,000 15.000 $ 442,680 ) ) ) Funding to Chamber of Commerce ) ) ) The motion was seconded by Zoe Bay ton. Lengthy discussion followed on the matter of funding for events as opposed to marketing. Jim Haguewood shared his calculations that showed an overall increase in marketing and a decrease to the agencies. Russ Veenema, however, pointed out that the figures also reflect no funding for the Visitor & Convention Bureau, but there would be $20,000 funding for Peninsula Joint Marketing. Jim Haguewood proposed a goal of 10 new local events within the partnerships outside the Parks & Recreation Department, and Russ Veenema countered that it would be counterproductive to plan a certain number of events just to meet that goal. It was his preference to fund events only if the criteria had been met. Discussion centered around the reduction in cash flow for 2001 and forward and the need for the committee to review the negative budgeting that will likely take place. Lengthy discussion and debate followed, and Councilman Campbell felt that it may be advantageous to approve the budget as presently recommended, particularly in view of the tracking options adopted. He felt that cuts might be better timed next year, once outcomes have been evaluated for the expenditures just approved. Committee members offered input to the matter, and Steve Oliver cautioned the group against micro- managing the efforts of the Chamber of Commerce. Patty Hannah felt it less important as to the number of events held, as she urged expansion of the events currently held. Concern was again expressed with the declining reserves that will be available, and Manager Quinn indicated this particular fund does not involve on-going obligations and commitments. Therefore, it would be acceptable to work with a lower fund balance, particularly since there aren't a great deal of unknowns that may need to be anticipated. Director Ziomkowski suggested the possibility of the committee making allocations on a percentage basis. Jim Haguewood offered words of caution that future budgets for the lodging taxes may well reflect a 30% reduction. Patty Hannah emphasized the hope that this discussion would lead up to the development of some policies for future operation. Support was expressed for Mr. Veenema's proposals, and it was suggested the committee meet again in the third quarter to revisit the issue. A vote was taken on the motion to approve the allocations, which carried unanimously. Steve Oliver moved to adopt the criteria for special events to receive lodging tax funds. The motion was seconded by John Brewer and carried unanimously. Director Ziomkowski offered clarification as to whether or not the marketing budget had been overspent. The committee members were reminded that the marketing contract had been extended, and the overall expenditures had not exceeded the amount approved. Appreciation was then expressed to Mr. Veenema for his presentations. - 3- LODGING TAX ADVISORY COMMITTEE October 4, 2001 Next Meeting Next Meeting: The next meeting will be held on Wednesday, October 17, 2001, at 2:00 p.m. to further review the request for the Cascadia Center Project. Adjournment Adjournment: The meeting adjourned at 3:55 p.m. , ',.,,' . d'/' ,-~ -~/>7?J?~' Glenn Wiggins, Chair A()/I~~ )Jpfn^- Becky 1. U , C Clerk - 4-