CAPC Executive Director Mike Maloney told commissioners last Wednesday he had spoken with Municipal League attorney David Schoen three different times in the past two weeks regarding whether it would be considered commingling of public and private funds for the CAPC to pay $17,000 annually for three consecutive years so all lodging owners who pay the CAPC tax would have access to Jackrabbit, an online booking system with whom the Chamber of Commerce has contracted.
At the July 24 workshop, Chamber President Paul Miller said using Jackrabbit would mean online booking fees would not go to an online booking agent somewhere else, therefore keeping $750,000 or more per year in town. If a lodging property paid the $375 annual Chamber fee, it would get enhanced listing on the website, a grid listing and access to the services of Jackrabbit. The Chamber asked the CAPC to pay for all lodging collectors because some cannot afford it.
Maloney said he had received the Chamber’s letter regarding the request that he sent unedited to Mayor Butch Berry who then sent the letter to the Municipal League. Maloney said Schoen was still researching the details, but he did not like the possibility of commingling of funds. He asked Maloney for more time for his final opinion. He also had questions about the claim of $750,000 supposedly remaining in town.
Maloney observed, however, the commission could deny the request regardless of Schoen’s final answer. He said staff had surveyed lodging owners about Jackrabbit, and the 38 collectors who responded were overwhelmingly negative. Only one person responded positively. The typical reason was owners were unsure their reservation system would integrate with Jackrabbit.
Another issue Maloney saw was the fee for Jackrabbit covered properties inside city limits. He saw possible legal issues because of the status of properties outside city limits who pay to be on the CAPC website.
McClung stated if there had been a push by lodging owners to have this service, he might see things differently. Plus, Harman reminded commissioners, the money is not budgeted.
Mitchell moved to approve the request, but there was no second. Therefore, the request was denied.
Commissioners agreed it was still important to get an opinion from the Municipal League about whether this would have been a commingling of public and private funds.