Transient Lodging Tax Committee Minutes
June 25, 2020
Baker County Commission Chambers
Meeting called to order @ 9:00 am
Members Present: Loran Joseph, Tyler Brown and Buell Gonzales. Present via teleconference: Lea Gettle and Chelsea Judy.
Guest Present: Fred Warner, Timothy Bishop, Samantha O’Conner, Shelly Christensen and Bill Harvey. Present via teleconference: Shelly Cutler and Bryan Tweit.
Approve Minutes:
Meeting minutes from March 19, 2020 were reviewed. Loran moved that the minutes be approved and Buell seconded the motion. Motion carried.
Approve Agenda:
Tyler moved that the agenda be approved and Loran seconded the motion. Motion carried.
Marketing Update: Timothy
Timothy gave an update on the effects COVID-19 has had on the tourism industry. Tourism revenue plummeted in April and is slowing creeping forward. People started to travel as early as the Memorial Day weekend. There have been many event cancellations this summer. Some events that will take place are the 4th of July rodeo and fireworks show in Haines, Halfway fireworks and Sumpter Valley Railroad will open with a modified and restricted schedule.
The fiscal year 2020-21 Marketing Budget was reviewed line by line along with revenue projections. The Marketing Committee estimates revenue for fiscal year 2020-21 to be approximately $293,763. The Marketing budget reflects total expenses of $140,000 with the addition of $202,000 for the professional services agreements and the grant program bringing total expenses to $342,000. This creates a shortfall of $136,365 which will be covered by a transfer in the amount of $170,000 from the TLT contingency fund. Buell recommended reducing the Visitors Services contract expenditure of $78,000 for the months of closure. Loran moved to accept the Baker County Marketing budget with the recommendation that the Professional Services Agreement with BCU be reduced for the months of closure in FY 2020-21. Tyler seconded the motion. Motion carried.
Timothy recommended a recapitalization of the matching fund pool at $11,000. This grant fund pool is used for local projects applying for outside grant dollars through Travel Oregon and other sources. He also recommended a limit on the grant awards of 20% of project cost not to exceed $2,000. Loran moved to approve recapitalization of the matching fund pool at $11,000, Tyler seconded the motion. Motion carried.
Travel Oregon has put together an ad buy for a digital campaign with Expedia. The total cost of the investment is $175,000 and Travel Oregon is asking RDMOs (Regional Destination Marketing Organizations) to contribute $25,000 per region. Although Travel Oregon’s investment in the ad is to market travel to Oregonians within Oregon, our investment would allow us to target any markets we choose for the duration of the campaign. Timothy suggests targeting the Boise and Seattle areas. This ad campaign will run through shoulder season, election season and into early ski season. There was discussion regarding format of the ad and the concern in advertising outside of Oregon during the COVID 19 event. Loran moved to approve the $25,000 ad campaign, Tyler seconded the motion. Buell opposed the motion. Motion carried.
Travel Oregon COVID 19 Recovery Grants were awarded to Travel Baker County ($10,000), Geiser Grand Hotel ($5,000) and Baker County Chamber ($5,000). These grants are to be used for operational expenses which include salaries. Timothy recommended the $10,000 awarded to Travel Baker County be used to offset the reduction of his contract payment during the COVID-19 event. This amount would be $9,150 (3 x $3,050). Baker County amended the Professional Services Agreement’s monthly payment from $7,000 per month to $3,950 due to lack of tourism revenue and Timothy was reassigned to work with the Baker County Business and Economic Recovery Team. He recommended the remaining $850 be allocated toward the PIO in the 20/21 fiscal year. Loran pointed out to the Committee that although Timothy’s contract payment was reduced substantially he continued to perform the duties outlined in his contract with no pay. Loran moved to recommend to the Commissioners the Travel Oregon COVID 19 Recovery grant be allocated to lost contract payments for Timothy’s contract in the amount of $9,150 and the remaining $850 to be allocated toward utility expenses at the Visitors Center. Tyler seconded the motion. Motion carried.
Timothy asked for the Committee to give him policy direction in Travel Baker County’s response on our social media site relating to current social justice rallies and protests. He has received numerous calls to action from statewide industry partners to take a position in support of social justice. The Committee discussed this issue and stated the Travel Baker County site is for advertising travel and not a political platform. The Committee recommended Timothy delete any political posts to the site.
Timothy presented a letter that he drafted on behalf of Travel Baker County outlining the importance of following CDC guidelines. Upon approval of the Committee this letter will be posted to our website, social medial channels and released to the local media. Loran stressed the importance of following CDC guidelines for economic recovery. There was some discussion about the reluctance of the Economic Recovery Team to endorse the letter. Tyler moved to approve the letter for publication, Buell seconded the motion. Motion carried.
Visitor Services Update: Shelly
Shelly indicated the Visitors Center has been closed for the past three months. The Center is operating on a volunteer basis in order to share materials and answering phone messages. In the kiosk, in front of the building, they have distributed 180 Travel Oregon guides, 300 Eastern Oregon Visitor guides, 275 Baker County Visitor guides and 175 Oregon highway maps. They have responded to 350 phone messages and have had 34,795 hits on their website. They are looking forward to reopening the Center. Bill indicated the Commissioners will determine when the Center will be reopened based on revenue.
Financial Reports:
Reports reflecting first quarter lodging tax payments were provided. Shelly indicated that the number of past due payments/reports was substantial. Collection efforts have been made up to certified letter mailings. To date there are two large local houses and one large online intermediary that still have not filed a report or made payment.
Shelly had a request from House #54 for penalty abatement of $31.92 due to medical reasons. The house requesting abatement has no history of late payments. Loran moved to abate the penalty, Buell seconded the motion. Motion carried.
Citizen’s Participation:
None
Strategic Planning Update: Lea
None
EDC Update: Bryan
Brian indicated that the Regional Committee is reluctant to move toward Phase 2a or 3 at this point. The Health Department in Malheur County has been tasked with enforcement and issuing citations to businesses for CDC non-compliance. This has resulted in some pretty serious threats. They will not be shutting businesses down but rather quarantining the business for non-compliance. Bryan also clarified that mask are not a statewide requirement and cleared up confusion relating to if a mask is worn does that eliminate the requirement for social distancing. Wearing of a mask does not eliminate the social distancing requirement it is in addition to. On the business support side, they have been providing online training and providing tips and tools for social media, customer service and employee training. They are working on a campaign to find out how they can do a better job of helping businesses in the County.
By-Laws Update: Lea
To be done next month.
Staff Comments:
Bill shared that the Hewitt/Holcomb parks are open and doing well and practicing social distancing. He indicated that there is a lot of cleaning happening and the water level is full. There is concern from local residents regarding out-of-state visitors.
Committee Comments:
Lea indicated that her term on the Committee will expire in August. As Chairperson of the Committee we need to elect a new Chairperson. She asked for nominations or volunteers. Loran indicated that his term as the Baker City’s representative expires in August so he did not want to commit to the position until the City Council approves his re-appointment next month. Chelsea nominated Tyler Brown for Chairperson, Loran seconded the nomination. Lea asked for Tyler’s acceptance. Tyler accepted unwillingly but offered to fill the position of no one else was available. Unanimously Tyler Brown was elected as Chairperson.
The Committee received two Baker County Board/Commission Volunteer Forms to fill the vacancy created by Lea Gettle’s term expiration. The applicants were Kurt Miller and Toni Thompson. After review of the applications Loran moved to recommend to the Board of Commissioners that Toni Thompson be appointed to the TLTC, Tyler seconded the motion. Motion carried.
Next Meeting:
July 23rd 2020 @ 9:00 am
Meeting adjourned at 10:40
Respectfully Submitted:
Shelly Christensen