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HomeMy WebLinkAbout05-14-2003Lodging Tax Advisory Committee Meeting Minutes May 14, 2003 Opening: The meeting of the Lodging Tax Advisory Committee was called to order at 10:07 a.m. on May 14, 2003 in the Conference Room 3 of Auburn City Hall. Committee Members Present: Jeanne Barber, David Kwok, Khara Litscher, Mike Morrisette, Jana Raasch Staff: A1 Hicks Guests: Mary Bartlett, A. Approval of Agenda The agenda was approved as distributed. B. Approval of Minutes The minutes were corrected to read the spelling of Jana Raasch name with one "n". C. Open Issues Newspaper Ads Mike Morrisette reported on the research done concerning the cost, preparation and presentation ora newspaper advertisement. Mike prefaced his report by indicating that he befieved any ad campaign would be most successfully conducted by offering an entertainment and lodging "package" to potential out of town visitors. The package should contain discounts for entertainment attractions, restaurant; and lodging. It would be necessary to spend some time working with local providers of these services to arrange the package. However, the ensuing enticement of a "package" opportunity would be an important ingredient in persuading travelers to select Auburn as a destination. The research was conducted in such a way as to follow the guidefines indicated by the Committee at its previous meeting. Mike selected two potential "test" markets, Yakima and Wenatchee. Two day; of the week were selected. In Yakima the day; were Saturday and Sunday. In Wenatchee the day; were Sunday and Thursday, taking advantage of the Wenatchee newspaper's weekly travel section. Each ad was for ~ page Black and white with 1 color. Remaining consistent with the Committee's discussion at its' previous meeting, the timing selected for placing the ads' was late summer and mid-autumn and around events'. Labor Day and Feteran's Day were selected. In late summer £meraM Downs continues to ham race events' and the area's summer activities, such as golf and swimming continue to be enjoyable. At the same time there is an impetus for back to school shopping. Veteran's Day is a major event in Auburn with a flyover, floats' andparade. This year the event offers the opportunity to recognize the contribution of veterans from previous conflicts' while recognizing the sacrifices of those who have served in the Middle East. Considering the recent war in Iraq, this may be an auspicious time to advertise the opportunity to join in the celebratory event. An advertisement placed in the Yakima HeraM on Saturday and on Sunday wouM be expected to reach approximately 200, 000 adult readers. An advertisement placed in the Wenatchee World on Sunday and on Thursday, using the travel supplement, would be expected to reach approximately 55, 500 adult readers. The Yakima ad could be placed on August 16 and 17, the Wenatchee ad on August 24th and 28th. The cost for the Yakima ad wouM be: First Insertion: $ 2, 472 Second lnsertion: $ 2, 039 Total: $ 4, 509 The Cost for the Wenatchee ad wouM be: First Insertion: $1,812 Second lnsertion: $ 854 Total: $ 2, 955 Total Cost of Both Ads 7, 464 For the Feteran's Day Campaign the ad wouM be placed in the Yakima HeraM on November ]st and 2'd and in the Wenatchee Worm on November 2'~ and November 6t~. An advertisement campaign conducted in advance of the Feteran ' s Day event wouM result in the same costs' and the same circulation for both newspapers. The Total ad costs for the Labor Day campaign and the Feteran's Day campaign wouM be $14,928. The Chamber offered to manage the development, layout and placement of the ads' if the production costs' and staff time were reimbursed. These efforts' wouM entail: Negotiating, contracting and placing the advertisements'. Formating, proofing and designing the ad layouts'. Soliciting a consensus for the ads' and meeting management as well as contacting, soliciting and organizing the special traveler's package options. The cost for this effort wouM be about $4,000. The total cost of the ad campaign test marketing effort wouM be $18,928. The opinion was expressed that tying the ad campaign to an event tike labor is necessary. The question was raised as to when schools opened in those markets and how that might influence travefing decisions. David Kwok expressed the opinion that the timing for the Labor Day ad was right on target but that the placement of the Veteran's Day ad shouM be moved up "a couple of weeks" to allow people to plan for the trip. dana suggested attempting to involve the track in joining in the ad Mike indicated that he befieved that the ultimate goal is to develop a coordinated effort among Auburn's entertainment, restaurant, shopping and lodging venues to attract visitors to Auburn. Concerning the placement of the ad, dana offered to help and suggested looking at column inches the ad would commit to and that the cost should be on the rate card Motion: The Lodging Tax Advisory Committee recommend to the City of Auburn that two newspaper advertising campaigns be conducted in the markets of Yakima and Wenatchee to attract visitors from those communities to Auburn during the for Labor Day and Veteran's Day Holiday periods and that the City allocate up to $14, 928for that purpose. Moved by David Kwok and Seconded by dana Raasch Approved by acclamation. Motion: The Lodging Tax Advisory Committee recommend to the City of Auburn that the Auburn Chamber of Commerce be retained to manage the development of the campaign to include: Negotiating, contracting and placing the advertisements. Formatting, proofing and designing the ad layouts. Soliciting a consensus for the ads and meeting management as well as contacting, soliciting and organizing the special traveler's package options; that the City allocate $4,000 of Lodging Tax funds for this purpose and allocate an additional $1,000 of Lodging Tax funds to be used as a contingency to cover unanticipated expenses for the advertisements or the cost of managing the placement and layout of the ad Moved by David Kwok, seconded by Khara Litscher. Approved by acclamation. It was further suggested that "tracking" was essential the ad include a "tear out "for use by consumers that wouM enable the lodging industry to know the number of stays generated as a result of the ad. Use of a 1-800 number was discussed but it was decided that the expense involved in the number, postage for materials and staff time to answer calls and mail materials wouM be better incurred as revenues increased. It was suggested that e-mail might be a potential tool to be used in place ora 1-800 number at the current time. C. New Business Lodging Tax Funds Staff provided the Committee with a report showing Lodging Tax revenues by month for 2002 and the amount currently in the Lodging Tax Account. The Committee asked for a simplified spreadsheet showing the amount of revenue, expenditures and the account balance. The Committee also asked if it couM briefly meet with the Finance Director to discuss revenues at its next meeting. D. Agenda for Next Meeting It was the consensus of those present that the Committee shouM meet again on June 5, 2003 at 10:00 am. to review the progress concerning the ads. The next general meeting is scheduled for 10:00 a.m. on Thursday, June 5, 2003 in Conference Room 2 at Auburn City Hall. Adjournment: Meeting was adjourned at 11:15 a.m. Minutes submitted by: A1 Hicks Approval Date: