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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. -1- 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. - 2- 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. L <~~7~/~~ ~~ 14da -- /" 0" ~ A Glenn Wiggins, Chair Becky J. Up , Ci lerk - 3 -