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HomeMy WebLinkAboutMinutes 12/03/1999 CALL TO ORDER- REGULAR MEETING: ROLL CALL: Approval of Minutes Summary of Revenues & Expenditures Art Feiro Marine Life Center Funding LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington Decem ber 3, 1999 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 4:00 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Carol Griffith, Jim Haguewood, Patty Hannah, Bob Harbick, John McCullough, and David Morris. Members Absent: Zoe Baylon, Clay Oakes, and Steve Oliver. Staff Present: Manager Quinn, Economic Development Director Smith, Clerk Upton, Finance Director Ziomkowski, and Parks & Recreation Director Brodhun. Others Present: Erl Hansen, Rick Hert, and Karen Hanan. Approval of Minutes: David Morris moved to approve the minutes of the Lodging Tax Advisory Committee meetings of October 14 and 29, 1999, The motion was seconded by John McCullough and carried unanimously. Summary of Revenues & Expenditures: Tim Smith reviewed the summary of revenues and expenditures from 1997 through the projected 2000 budget. The contract for the tourism marketing program commenced in June, 1998, in the amount of $150,000 per year, or $12,500 per month. It is anticipated there will be approximately $221,000 available for distribution in 2000, out of which the committee may wish to hold funds in reserve. The reserve currently stands at approximately $99,000. Also, the City Manager has asked for consideration of funding the Art Feiro Marine Life Center in the amount of $80,000. Art Feiro Marine Life Center Funding: City Manager Quinn distributed a memorandum to the committee members, asking for consideration of funding the Art Feiro Marine Life Center from lodging tax revenues in 2000. Manager Quinn summarized the memo, explaining the rationale for this request. Discussion followed, with questions being raised as to the 2000 budget for the Marine Life Center, the level of operating costs, and the revenue projections. Parks & Recreation Director Brodhun joined the meeting to explain the arrangement between Peninsula College, the Olympic Park Institute, and the City. He reviewed the operating budget for the Marine Life Center, noting that this is the first year the City has been responsible for the Center's summer operation as a tourist facility. After further discussion, the committee agreed to hear the presentation from the ChamberlVCB before making a determination on this request. -1- LODGING TAX ADVISORY COMMITTEE December 3, 1999 ChamberNCB Tourism Promotion Proposal Chamber/VCR Community-wide Tourism Promotion Praposal: Rick Hert and Erl Hansen distributed the recommended 2000 allocations for the community-wide tourism promotion proposal, to include the Parks & Recreation Department, Chamber of Commerce, Jet Ski Race, Visitor & Convention Bureau, Fine Arts Center, Juan de Fuca Festival of the Arts, Historical Society, Hurricane Ridge, Long House, Tandem Bike, Jazz Festival, Story Tellers, and contingency funds. Mr. Hansen explained some of the funding requests that remained questionable. Further, Mr. Hansen indicated the recommended allocation for Juan de Fuca was decreased because of the committee's position on providing seed money. Rick Hert noted five new events had been included in the recommendation in keeping with the committee's hope that new events could be supported with lodging tax revenues. Also, he stressed the fact that all of the funding requests were not intended to be independent of one another but, rather, they are meant to fold together in terms of marketing and advertising efforts. Karen Hanan, Juan de Fuca Festival, expressed disappointment at the amount of funding requested for her organization. She advised the committee that Juan de Fuca conducts events all year, most of which are held in the shoulder season. However, Juan de Fuca only asks for fmancial assistance for the largest festival, as the others are self- supporting. Ms. Hanan distributed a fact sheet pertinent to the Festival and indicated a large marketing program has been targeted for Victoria and the 1-5 corridor. She indicated she fully understood the concept of seed money; however, a non-profit agency such as hers is not in the business of making a profit. She felt the Festival couldn't be successful without the City's financial partnership at a level of more than $3,000. Discussion then centered around the importance of knowing how many people are staying in hotels and motels by virtue of their attendance at the various events and activities. This data is important in determining the success of the events. Tim Smith summarized the City's efforts to confidentially maintain a database of occupancies, a project that has not met with much success. In the ensuing consideration of allocations, a question was raised as to the purpose of the reserve funds, to which the response was submitted that the reserve has been set aside for future capital projects. Tim Smith referenced the convention center proposal and the urging of several business committees and agencies for the City to give the proposal due consideration. In its past deliberations, the committee had taken the position that "bricks and mortar" made sense. Further, it was intended that reserve funds be maintained in order to provide financial assistance to new events or activities that may arise mid-year. Lengthy discussion ensued. Marketing Plan Review Marketing Plan Review: Rick Hert indicated the marketing plan is nineteen months into the contract at $150,000 per year for three years, with a two-year renewal clause. A status report is forthcoming and will include input from Wendt Advertising, as well as the Gilmore report. In reviewing the program thus far, Mr. Hert concluded they may not grow the lodging tax fund to the level anticipated due on a large part to the poor weather experienced. He felt it may be time to put the $150,000 on the table fur further consideration. Tim Smith indicated that, if the $150,000 is reconsidered, then the 5%/year performance factor should be reconsidered as well. Lengthy discussion followed with regard to the possibility of looking at the tax revenues as an aggregate 4% as opposed to splitting them into two different segments. Also, it was suggested that the status report should be received before any firm decisions are made as to allocations of the tax revenues. Manager Quinn supported the "marriage" of the two contracts in 2000, and he summarized the means by which this could be accomplished. Finance Director Ziomkowski indicated the revenue budgeted for 2000 - 2- LODGING TAX ADVISORY COMMITTEE December 3, 1999 Marketing Plan Review (Cont'd) was a conservative $348,000 and, after due consideration, Bob Harbick moved to allocate $348,000 at a later date for the year, 2000. The motion was seconded by John McCullough and carried unanimously. It was clarified that the above figures is not inclusive of the reserve funds referred to earlier in the meeting. It was agreed the next meeting will be held on Friday, January 7, 2000, at 2:00 p.m., at which time the committee will receive the status report from the ChamberlVCB. ADJOURNMENT: The meeting adjourned at 5:25 p.m. - - ~~~~~ . ___ enn 199ms, alT -bo~~~ -LAptD~ Becky 1. Up , C Clerk - 3-