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HomeMy WebLinkAboutMinutes 12/19/2000 CALL TO ORDER - REGULAR MEETING: ROLL CALL: Approval of Minutes Survey of Hospitality Industry LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington December 19, 2000 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 1 :55 p.rn. Members Present: Councilman Wiggins, Councilman Campbell, Zoe Bay ton. Carol Griffith, Jim Haguewood, Bob Harbick. John McCullough, David Morris, and Steve Oliver. Members Absent: Patty Hannah and Bill Rinehart. Staff Present: Economic Development Director Smith and Clerk Upton. Others Present: Jolm Brewer, Rick Hert, Kristi Agren, Russ Veenema, Duane Wolfe, and Jerry Nichols. Approval of Minutes: Zoe Hayton moved to approve the minutes of the September 19, 2000, meeting. The motion was seconded by David Morris. Clarification was sought as to the portion of the minutes relative to funding for the Juan de Fuca Festival of the Arts. Some committee members were under the impression that approval had been given for Juan de Fuca funding out of the $10,000 ChamberNCB contingency fund; however, other members thought the funding would come from the overall approved contract amount and not the contingency fund. After further discussion, a vote was taken on the motion to approve the minutes as written. The motion carried unanimously. Survey of Hospitality Industry: Rick Hert reviewed for the committee members the history of the City's previous efforts to obtain occupancy information for the lodging facilities in Port Angeles. The Chamber and VCB were asked to assist in this endeavor, as the occupancies would help in tracking an increase in tourism by virtue of the marketing program. The accounting firm of Burwell & Wolfe was engaged to survey the lodging industry in this regard. Duane Wolfe presented the committee with the survey results, which he reviewed in depth. Mr. Wolfe indicated that some facilities chose not to participate in the survey, so the report is not all inclusive for the past three years. He emphasized the fact that the report sets forth numerical summaries for those participating; it does not establish formal conclusions. Mr. Wolfe proceeded to review the report, to include occupancies by quarter, occupancies by month for hotels/motels. and total occupancies by year. In the ensuing discussion, there was concern expressed with the percentage of rooms not included in the survey. Mr. Hert felt the report served as a baseline, and he was uncertain as to how certain language barriers may have impacted the data gathered. Tim Smith felt this was an excellent start, and he expressed interest in also obtaining roorn rates. He felt this data would be extremely important in attempting to gain private support for a convention center. It was pointed out that some of the weaker facilities could impact the overall numbers, and it may be necessary to segregate the numbers so as to not negatively impact the true occupancies. Mr. Wolfe indicated this fact had been -1- LODGING TAX ADVISORY COMMITTEE December 19, 2000 Survey of Hospitality Industry (Cont'd) discussed, but he offered a word of caution. He felt the numbers would be much more meaningful once more facilities start participatmg in the surveys. Hurricane Ridge Public Development Authority Hurricane Ridge Public Development Authority: As a follow-up to the presentation made at the last meeting, Steve Oliver submitted a request for funding. He informed the committee that the fIrst organizational meeting was held, officers were elected, Bruce Skinner was hired as a consultant, and a work session has been set to begin planning for the submission of a proposal for the Hurricane Ridge concession. It is estimated that funding from $50,000 - $100,000 is necessary for the submission of an effective proposal. Thus far, $16,000 has been committed by the Hurricane Ridge Foundation, and because this committee had set aside a contingency fund of $1 0,000, he submitted a request for as much of that contingency fund as possible. In addition, the PDA will be approaching the County to seek funding support from the Opportunity Fund. Discussion followed with questions being asked regarding the level offunding needs. Steve clarified that this would be a sunk cost in order to develop a proposal that would be professional and competitive. David Morris felt that funding could be carried out over a two-year period, as the prospectus likely wouldn't come out until the latter part of 200 I. Bob Harbick asked for clarification as to the expenses associated with this type of proposal. Steve responded the proposal would include a business plan to substantially change food and beverage services, improve the interior of the facility, improve the gift shop, extend the hours, and improve transportation to the Ridge. Steve indicated the Public Developrnent Authority was not looking for lodging taxes to carry the project out for the long-term, as the effort needs to be able to stand on its own merit. Councilman Wiggins pointed out that the profits would be rolled back into the facility and the services. Jolm McCullough felt that, if the effort is successful, the benefit to the community would be an increase in tourism during the shoulder season. Russ Veenema reviewed the upcoming recreation summit to be held in January, noting the importance of marketing the recreational opportunities already in place in the Port Angeles area. Councilman Wiggins felt it would be appropriate to hear about the other funding request before taking a position. Seattle Press Expedition Seattle Press Expedition: Kristi Agren from the North Olympic Peninsula Visitor & Convention Bureau presented a request for funding associated with the Seattle Press Expedition, which is being organized by the NOPVCB in cooperation with The Seattle Times and Washington State Tourism. Ms. Agren explained details pertinent to the re- creation of the actual Seattle Press Expedition that took placed from 18S9 to lS90. The 5-day trek is scheduled to be held in August, 2001, and it would involve 12 key members of the media. It is anticipated that $300,000 worth of press coverage for the area would be gained. Ms. Agren noted the importance of funding to help defray costs, which would include transportation of these individuals to the area. The NOPVCB has requested $2,500 in lodging tax funds for this purpose. The overall budget for the Expedition has been set at $15,000. Councilman Wiggins opened the meeting to discussion regarding the two requests for funding. It was noted that other groups will likely be approaching the committee with funding requests for new activities and events. Tim Smith inquired as to whether funding for the Press Expedition could come out of the marketing budget. Mr. Nichols advised the committee that ads for the Expedition have been developed, but there are insufficient funds for placement of the ads. Rick Hert indicated the NOPVCB is also looking for funding from other sources. Discussion ensued with the suggestion being made that funding could possibly come out of lodging tax reserves. However, Tim - 2- LODGING TAX ADVISORY COMMITTEE December 19. 2000 Seattle Press Expedition (Cont'd) Arrangement of Chamber I VCB Contracts on Calendar Year Basis Terms of Office - Lodging Tax Advisory Committee Members Adjournment Smith pointed out that reserve funds could not be accessed absent a budget amendment by the City Council. Further, Mr. Nichols noted the marketing budget has been committed to an advertising schedule. The committee mernbers were in agreement that both projects were worthwhile and deserving of fmancial support. The suggestion was made that, because of the interest in new proposals, the committee may wish to revisit the matter of the reserve funds at a later date once more new ideas have come forward. After further consideration, John McCullough moved to fnnd the Hurricane Ridge Public Development Authority in the amount of $5,000 and the Seattle Press Expedition in the amount of $2,500. The motion was seconded by Councilman Campbell. After further discussion, a vote was taken on the motion which carried by a majorily vote, with Jim Haguewood voting in opposition and Steve Oliver abstaining. Arrangement of Chamber/VCB Contracts on Calendar Year Basis: Tim Smith referenced the current contract for marketing, noting there is approximately $13S.000 remaining for the contract that expires as of May 31, 2001. The committee has expressed interest in having both contracts for lodging tax funds established on a calendar year basis. Therefore, Tim suggested extending the marketing contract to December 31, 2001. He emphasized there would be no increase in funding unless there is a budget amendment by the City Council. Both Russ Veenema and Rick Hert spoke in support of changing the contract to a calendar year, and Tim Smith indicated this change would give the committee more time to obtain meaningful performance measures as to the success of the marketing endeavor. After further discussion, John McCullough moved to extend the marketing contract with the ChamberNCB to December 31, 2001. The motion was seconded by Jim Haguewood and carried unanimously. Terms of Office - Lodging Tax Advisory Committee Members: Councilrnan Wiggins noted that the terms of office for the members of the Lodging Tax Advisory Committee expire in the near future. He spoke to the advantage of having a representative of a large facility serving as a member of the committee. He asked that committee members contact Clerk Upton and indicate their desire to be reappointed to the committee. Russ Veenema announced that John McCullough's term on the Chamber Board of Directors expires at the end of December. Therefore, the new Chamber representative to the Lodging Tax Advisory Committee will be John Brewer. On another matter, Jim Haguewood expressed concern as to the status of the Valley Creek Estuary Project. He noted the funding provided by lodging taxes to support this project, which is not yet complete. He expressed interest in receiving a status report on the project. Adjournment: The meeting adjourned at 3:30 p.rn. ~~,'~.: Glenn Wlggms, Chair -Ao &~ J j~^- Becky J. Up , Ci lerk - 3-