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HomeMy WebLinkAboutMinutes 05/18/1998 CALL TO ORDER- REGULAR MEETING: ROLL CALL: APPROVAL OF MINUTES: Contract and Level of Funding for Marketing T aurism LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington May 18, 1998 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 1 :30 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Bob Harbick, Richard Vogel, John Platt, Steve Oliver, Randy Johnson, Bill Rinehart, and Jim Haguewood. Members Absent: David Morris and Bob Grattan. Staff Present: Projects and Grants Administrator Smith and Clerk Upton. Others Present: Rick Hert, Laurel Black, Ed Hansen, and Scott Hance. Dick Vogel moved to approve the minutes ofthe Lodging Tax Advisory Committee ~eetings of April 28, 1998 and May 5, 1998. The motion was seconded by Randy Johnson and carried unanimously. Contract and Level of Funding for Marketing Tourism: Tim Smith distributed the following documents to the committee members: a draft scope of work, lodging tax projections into 1999, and a copy of the request for proposals. He felt it would be helpful if the committee were to initially address the scope of work before determining the level of the budget and the term of the agreement. The scope of work was reviewed in detail, and the committee was in agreement that the inventory of existing tourism programs should be left to the contractor. However, it was noted the contractor could broaden the inventory by including county-wide programs. Rick Hert advised the committee that, on June 2 & 3, the VCB/Chamber will be hosting a 7 -step strategy session, during which time the attendees will discuss in depth the approach and direction for tourism marketing. The contractor is to identify and implement a tourism marketing and promotional approach, targeted for completion within 60 days from the signing of the contract. A written report and presentation is to be made to the City Council. It was noted that the members of the Lodging Tax Advisory Committee should also receive copies of the report, and Tim Smith urged the committee members to also attend the Council meeting when the presentation is made by the contractor. Steve Oliver expressed concern that the contractor will be overloaded with preparing and submitting reports. He urged caution in that the funding is to be spent on marketing. On the matter of a joint marketing campaign, the draft scope of work indicated cooperative strategies for joint marketing should be implemented with other tourism campaigns within 90 days from the signing of the contract. Rick Hert requested the date ofJanuary 1, 1999, as the contractor will be working with so many different people and organizations. The committee members agreed this will be a time-consuming task, and -1- LODGING TAX ADVISORY COMMITTEE May 18, 1998 Contract and Level of Funding for Marketing Tourism (Cont'd) the extension to January I would be acceptable. Laurel Black noted it will not only be time consuming to prepare something tangible for consideration, but that it takes a certain amount of time for the different entities to buy-off of an endeavor such as this. Additionally, this type of effort will be ongoing throughout the term of the program. Discussion followed about the need for cohesive marketing. Consideration was given to the level of funding, and it was noted that the ChamberlVCB felt it important to have sufficient funding in order to meet the City's goals on tourism marketing. Therefore, the amount of$150,OOO per year was requested. John Platt expressed the opinion that the group should award the full funding as a vote of confidence, especially because the two organizations are working together so well. John Platt moved to provide the amount of $150,000 as requested. The motion was seconded by Dick Vogel. Lengthy discussion followed with regard to the expenses associated with the ChamberlVCB proposal. The committee members then expressed their individual opinions as to the award of the $150,000. It was pointed out by Steve Oliver that he still felt a portion of the additional 2% should be kept in reserve for capital projects. Bob Harbick countered that there should still be a reserve of funds building in spite of the $150,000 expenditure. Jim Haguewood expressed concern with the possible duplication of funding for some projects covered by the original 2% tax. He felt it important that the 800 number be funded, as well as a strong Internet site. Lengthy debate ensued about the possibility of duplication of funding, and Rick Hert assured the group that the money being requested at this time is a completely separate issue from the original tax. Bill Rinehart indicated he would support full funding only ifhe received assurances that the other agencies funded with the original tax would not be jeopardized in the event the additional tax did not generate the expected revenue. Tim Smith pointed out that it would be to the contractor's advantage to bring the other successful activities and events into the fold. Lengthy discussion followed about the possibility of negotiating a lower range of funding; however, Randy Johnson did not support the micro management of the marketing effort. Cltairman Wiggins reminded the group that of the three proposals submitted, two were unacceptable. Discussion again centered around the different level of expenses associated with certain aspects of the proposal, such as the 800 number and the Internet web page. Because of the advantages the Internet offers, Jim Haguewood wanted to be certain we didn't shortchange ourselves by under funding that marketing effort. In responding to the consideration of different funding options, Rick Hert indicated the proposal that was submitted represents a comprehensive marketing program. Associated with that program is a comprehensive marketing budget; anyone part of that program and budget is key to the overall effort. After further discussion, a vote was taken on the motion, which carried by a majority vote, with Steve Oliver voting in opposition. Consideration was then given to the term of the contract. Tim Smith indicated that it was staffs recommendation that the contract be written for a period of three years, inclusive of a renewal option to be negotiated for an additional two years. Further, staff has recommended that, at the end of three years, there should have been a growth of 5% per year. The committee members, as well as the ChamberlVCB staff, supported the three-year term. Lengthy discussion was held on the matter of growth to be expected in lodging sales. Tim Smith asked the committee to consider what percentage of increase should be expected in the ftrst 18 months. Chairman Wiggins indicated that the City Council will want to know if the contract is working successfully long before three years has passed. He urged the committee to establish a target for growth. After further lengthy discussion, John Platt moved that, at the end of 18 months, the group should use as a target a 50/0 increase of bed tax generated dollars. The motion was seconded - 2- Contract and Level of Funding for Marketing Tourism (Cont'd) ADJOURNMENT: LODGING TAX ADVISORY COMMITIEE May 18, 1998 by Randy Johnson. The motion led to discussion as to whether growth should be based on revenues or room nights. Therefore, John Platt restated the motion that the group is looking for a 5% increase in room nights for an IS-month period. Therefore, the group was targeting the actual lodging night sales counts from the lodging establishments. The committee members also supported the receipt of information pertinent to the number of tourism inquiries with a conversion correlated formula. Jim Haguewood felt it important to receive data on the nurnber of inquiries, the head count, and the tax revenues. He acknowledged that the number of inquiries and the tax revenues could be considered as additionally reported items. A vote was taken on the restated motion, which carried unanimously. Bill Rinehart moved to establish the contract term at three years, with a two-year renewal option. The motion was seconded by Randy Johnson and carried unanimously. Tim Smith briefly reviewed the monthly and annual reports that would be required by contract. The reports afe to account for all funds expended, as well as to measurably document program effectiveness. The recommendations of the Lodging Tax Advisory Committee will be presented to the City Council at its meeting of May 19, 1998, 5:30 p.m. Committee members were urged to attend. The meeting adjourned at 3:20 p.m. ~: _------ Glenn Wiggins, Chair &~~ Lfpfu^ Becky J. U " Cler - 3-