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HomeMy WebLinkAboutMinutes 01/12/1998 CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: Organizational Structure Dean Runyan Study LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington January 12, 1998 Chairman Wiggins called the meeting to order at 3 :05 p.m. Members Present: Councihnan Glenn Wiggins, Councilman Orville Campbell, Bob Harbick, Dick Vogel, John Platt, David Morris, Steve Oliver, Randy Johnson, Bill Rinehart, Bob Grattan, and Jim Haguewood. Members Absent: None. Staff Present: Manager Pomeranz, Attorney Knutson, Clerk Upton, and Contracts/Projects Administrator Smith. Public Present: Rick Hert. Dick Vogel moved to approve the minutes of the Lodging Tax Advisory Committee meeting. of December 1, 1997; December 5, 1997; December 8,1997; and January 5, 1998. The motion was .econded by Bob Harbick and carried unanimously. Cbainnan Wiggins opened the meeting by inquiring as to what organizational structure the committee members would like to consider with respect to evaluation ofRFPs, as well as the performance of the successful bidder. What would be the recommendation to the City Council, particularly since the group wants to enter into a contractual arrangement for 3 - 5 years? Chairman Wiggins suggested the possibility of having a smaller group meet on a regular basis, perhaps quarterly, for the purpose of monitoring the expenditure of the funds as well as the overall results. Dick Vogel countered that the entire group should be involved in this effort, particularly since it is likely that some members won~ be able to attend on a regular basis. Further, Bob Harbick didn't feel it would become a burden, as he was certain there wouldn't be a great demand for numerous meetings. David Morris suggested it may be somewhat premature to address an oversight fimction; he felt the committee should turn its sights to determining the specifics. Discussion was generated pertinent to the merits of the Dean Runyan Study, which clearly defined most tourists to the Olympic Peninsula as being highly educated and wealthy. John Platt noted certain discrepancies between the data set forth in the study, as opposed to actual information he has gathered at his business. He felt it would be worthwhile to gather data from the lodging owners to create a more accurate picture of tourism on the Peninsula. Discussion then led to the need for an information clearing house and, in that regard, the need to establish mutual trust in order to gather meaningful information. It was suggested that a letter be sent to the lodging owners, advising them of the committee's intentions. John Platt offered to assist Tim Smith and Chairman Wiggins in writing a draft letter for the committee's review. Jim Haguewood didn't feel the report was inaccurate to the point that the infOlmation should not be utilized; he felt it could serve as a base. Tim Smith noted that the report -1- LODGING TAX ADVISORY COMMITTEE January 12, 1998 Dean Runyan Study (Cont'd) suggests marketing concentration in the Puget Sound area. Rick Hert urged the committee members to not place too much emphasis on the anecdotal information; he felt most of the information in the report was still relevant. Rick offered the VCB for assistance in collecting data gathered from the lodging owners. Draft RFP Tim Smith briefly reviewed the draft RFP, noting that it will be subject to revision at the next committee meeting. He advised the committee members that he envisioned a 3-year program, with the option for renewal. In the ensuing discussion, the question was raised as to whether the implementation of the additional tax needed to be tied to the RFP. It was agreed that it did not. Conunittee members made suggestions as to minor language modifications in the RFP. Councihnan Campbell cautioned the committee that a contractor may want some funds paid up front, and it is not likely that the additional tax will actually generate revenue until next fall. Consideration was then given to how much time would be given for responses to the RFP, and it was agreed that the shorter time allowed would result in responses of a lesser quality. Further discussion involved the specifics of the RFP and certain requirements that the committee may want to establish. Manager Pomeranz and Attorney Knutson indicated that some of these details could be addressed within the realm of the contract. Discussion was also held with respect to the desired results for the first 3 years. It was agreed that the results may vary on a yearly basis, but that the overall aggregate increase should be at least 15%. Tim stated his intention to rewrite the draft RFP, incorporating suggested changes, for committee review at the next meeting. Discussion of Categories to be Funded Steve Oliver submitted a proposal for consideration, wherein the following categories would be funded with the additional tax revenues: capital projects - 35%, long term programs - 25%, general marketing - 35%, and seed money for new events - 5%. Lengthy discussion and debate followed, with the suggestion being made that the public should be asked for input as to what they think will help improve business. Also, the committee addressed the future utilization of the original 2% tax, and Chairman Wiggins felt the members should be in philosophical agreement as the group proceeds. The committee has not agreed how to spend the original 2% in ensuing years. Randy Johnson urged the group to be objective in detenuining what needs to be achieved. Jim Haguewood distributed and reviewed in detail a revised copy of the Base Camp Port Angeles proposal. This led to further discussion as to whether the revenue and, therefore, the allocations of the two taxes would be separated or merged together. Bob Harbick felt the two taxes should be kept separate, but Chairman Wiggins reminded the group that the committee's purpose was to increase tourism. There had been no boundaries placed on how the committee would proceed for the next 3 - 5 years. Because of time restraints, the committee had made allocations relative to the initial 2% tax. However, there is nothing that requires a separation of the fimds in the future, and Steve Oliver expressed the opinion that in future years, the public will view this as a 4% tax. Discussion was again held concerning the involvement of area lodging owners, the need for their input, as well as the need for their support. There was stated support for sending a questionnaire to the lodging owners to seek their input. David Morris noted that, if the chosen consultant is "worth his salt", he will seek the same kind of information from the lodging owners. Chairman Wiggins wanted direction at this meeting as to the level of funding for a marketing program. Also, the question was addressed as to whether a specific dollar figure or a range should be included in the RFP. The committee considered the merits of the different approaches. Subsequently, after lengthy discussion, Steve Oliver moved to -2 - Discussion of Categories to be Funded (Cont'd) ADJOURNMENT: LODGING TAX ADVISORY COMMITTEE January 12, 1998 proceed with the RFP incorporating a range of $450,000 - $550,000 over a 5-year term. The motion was seconded by Jim Haguewood and, after further discussion, carried unanimously. Brief discussion was held with regard to the City of Port Angeles recently being named by Sports Afield as the best outdoor sports town in Washington State. The meeting was adjourned at 5: 10 p.m. / , -~~ f)c (ll.?~ j )dnA._ Becky J. Upt City erk I Glenn Wiggins, Chair - 3 -