HomeMy WebLinkAboutMinutes 01/05/1998
CALL TO ORDER:
ROLL CALL:
Consideration of
Implementing Additional
2% Tax
LODGING TAX ADVISORY COMMITTEE
Port Angeles, Washington
January 5, 1998
Chairman Wiggins called the meeting to order at 3:05 p.m.
Members Present:
Councilman Glenn Wiggins, Councilman Orville Campbell,
Bob Harbick, Dick Vogel, John Platt, David Morris, Steve
Oliver, Randy Johnson, Bill Rinehart, and Jim Haguewood.
Members Absent:
Bob Grattan.
Staff Present:
Attorney Knutson, Clerk Upton, and Contracts/Projects
Administrator Smith,
Public Present:
Rick Hert.
Attorney Knutson opened the discussion by advising the committee members that, if a
change is made to the lodging tax rate, the State Department of Revenue likes to have such
changes implemented on the first of the quarter, i.e., April!. Additionally, the Department
of Revenue needs to have 45 days notice of such a change prior to actual implementation.
Therefore, if an increase is instituted, this committee would need to present a
recommendation to the City Council by its meeting of Febmary 3, in order to implement
by April I. Ifnecessary, a special meeting of the City Council could be held to take action
on a recommendation for an increase. Chairman Wiggins advised the committee members
of the importance of reaching consensus on a recommendation.
Tim Smith had been asked to research what other cities on the Peninsula have done with
regard to a lodging tax increase. He reported that both Sequim and Forks have approved
such an increase; as yet, no one has formally approached the County to request approval
of an increase. Forks has decided to invest $22,500 of the additional revenue in local
marketing; $2,500 would be dedicated to a regional, cooperative effort. Sequim has agreed
to use $19,000 of its additional revenue for local marketing and $25,000 for the
cooperative projects in the region. Rick Hert reported on how the cooperative effort is
progressing, and he indicated Jefferson COWlty has expressed interest in working
cooperatively with Clallam County. Tim Smith suggested the possibility of having
representatives from Sequim and Forks attend one of the L TAC meetings in order to share
information as to how they are proceeding.
Discussion was then generated as to what results the committee would want to see in five
years if the tax is increased and, further, how these results could best be achieved with the
additional 2% revenue. Jim Haguewood, citing the previously discussed Base Camp Port
Angeles, indicated the proposal will be modified somewhat and returned to this committee
for future consideration. However, he felt there must be a proactive approach to this
process, and there must be specific guidelines for the expenditure of funds in view of the
fact that next year's committee will be charged with the responsibility of administering the
funds. He noted the importance of organization, as he was unclear as to the structure and
identification of responsibilities. Jim recalled the Runyan Marketing Study previously
conducted, and he felt it would be beneficial to rely on information contained in that study
as a tool in this endeavor. He expressed the hope that there would be a 20% increase at the
end of a five-year period.
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LODGING TAX ADVISORY COMMITTEE
January 5, !998
Consideration of
Implementing Additional
2% Tax (Cont'd)
Bob Harbick expressed the desire to use the additional tax with the goal of achieving a 5%
per year increase, excluding the fIrst year. This led to discussion as to how results could
be measured, whether in terms of actual room sales or increased revenues. Bob felt any
results measured must be gauged by heads in beds. He wanted additional tax funds spent
on marketing, perhaps similar to the efforts of Ocean Shores.
John Platt indicated he had not changed his mind about a tax increase. He felt there would
be no gain achieved unless there is a drastic change in the way business is conducted in
order to get people to make return visits to Port Angeles. He has seen a great deal of
money invested in advertising to attract people to the Peninsula, with no effort to make
certain the return visits occur. John spoke of the need to enhance staff training as opposed
to further advertising. In addition, John addressed the need for accountability relative to
the additional tax. There must be changes realized a month-to-month basis, and he
indicated his willingness to participate in a grassroots effort dedicated to producing results.
Lengthy discussion ensued about the need to change attitudes in terms of customer service
throughout the community. Rick Hert noted that $5,000 of the VCB's budget had been
dedicated to customer service training.
Dick Vogel agreed with comments offered by John Platt, noting that additional tax revenues
should not be spent on advertising. He felt the funds should be invested in having things
to dowben the visitors are here. Dick felt there is nothing to do in Port Angeles after 6:00
p.rn. Bob Harbick suggested that each committee member make a list of five activities they
would like to have available in Port Angeles. Jim Haguewood was of the opinion that
much of the problem is one of perception. Tim Smith encouraged the group to pursue
goals that can be accomplished and controlled by the committee, and John Platt felt a
coalition of successful businesses should work with others in the community to share their
methods. Additionally, John felt there is a great deal to do in Port Angeles; there is just a
lack of promotion. Further, there is a lack of cooperation with the lodging owners, and
John cited possible ways that cooperative efforts could enhance the tourism industry
overall.
Discussion was held regarding how a baseline could be established in order to begin
monitoring successful investment of the tax funds. Tim noted that everyone seems to
support a collaborative effort, and maybe the hotel/motel owners should be brought
together in this regard. Also, Councilman Campbell supported the notion of having
business owners serve as role models. Rick Hert noted the importance of tracking tourist
business, and he indicated his budgets have not been able to support that effort in the past.
It would be a component if the joint proposals with the Chambers and VCB were
implemented. Lengthy discussion ensued on possible methods of tracking tourism. Bill
Rinehart felt it would be difficult to measure the success of marketing efforts as opposed
to events success. There appears to be a need for a clearing house of information and data
for tracking purposes. John Platt referenced a tourist promotion committee within the
realm of the Chamber of Commerce, a committee in which he plans to become involved.
He indicated his intention to try and get people involved through a spirit of cooperation.
Steve Oliver felt it important to change the perception we have of ourselves, as well as the
perception held by others. It is important to have this area viewed as an attractive tourist
destination. There is a need for accountability from the hotel industry. Also, Steve felt it
would be appropriate to set aside a percentage of the funds for capitol, a percentage for
events/programs, a percentage for marketing, and a percentage for start -up support of new
activities in the community. Steve supported the concept of issuing RFPs to have a
professional design a program. He was uncertain that the members of this committee had
the necessary expertise to create a marketing program. This led to discussion of what other
communities or regional areas have done cooperatively, such as White Fish, Montana.
David Morris agreed that this committee can look at outcomes, but not necessarily strategy.
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Consideration of
Implementing Additional
2% Tax (Cont'd)
ADJOURNMENT:
LODGING TAX ADVISORY COMMITTEE
January 5, 1998
Perhaps there is too much emphasis on measurement before it is actually known what will
be measured. This committee must identifY how to increase and build on success.
Discussion followed on the Runyan Study, and John Platt felt there was enough expertise
available in this community to outweigh any consultant from out of the area. He did not,
however, necessarily support the idea of engaging a consultant, but he did support the
concept of issuing an RFP. Jim Haguewood cautioned the group about the importance of
making certain that the pace is picked up and that professionalism is maintained.
Tim Smith urged that the committee moved forward on a five-year plan with a contractual
relationship. Jim Haguewood reiterated the need to know the organizational structure for
this eodeavor. Councilman Campbell felt enough discussion had been generated in order
for Tim to distill the information into a form ofRFP for the committee's review. It is very
clear that the committee's goal is to increase business. Randy Johnson felt there needs to
be defined objectives. He supported the issuance ofRFPs, and agreed there needs to be a
means of meastuing results, both long and short term.
Chairman Wiggins felt there is no way to consider "things to do in Port Angeles" without
addressing the issue of capitol. He felt that the future will bring a need for a public/private
partnership in the area of capitol, and he supported the suggestion that a list be created for
things to do. He supported the concept of creating a fund for this purpose. Tim asked the
members to come to the next meeting prepared with a list of five things to do in Port
Angeles, particularly in the off season. Also, committee members should be prepared to
discuss how additional tax funds could be dedicated to marketing, with a portion set aside
for capitol. Copies of the Runyan Report will be distributed to committee members for
review prior to the next meeting.
The meeting was adjourned at 5: 10 p.m.
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Glenn Wiggins, Chair Becky J. Up , Ci lerk
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