In the News

Letter Submitted to the Red Rock News on 1/30/23.
Printed in the Red Rock News on 2/1/23

Say No to Divorce!

A recent editorial suggested that the City of Sedona and the Sedona Chamber file for divorce due to struggles over the need to better manage marketing and tourism. The Tourism Bureau side of the Chamber has cooperated with the City over time to market Sedona, bolster the local economy, and help manage tourism. It’s now time for the Tourism Bureau to become independent and fully assume its critical role in our community.

Let’s explore taking the Tourism Bureau (TB) to a new level that is independent from the Chamber. Other towns use this model. Its board of directors could include businesses, residents, government, and nonprofits. It could be funded by a portion of tourism tax receipts and have an agreement with the City to perform certain services and tasks. It must operate flexibly and efficiently. The TB could create and maintain an appropriate brand for Sedona, and market as needed (more at times, less at others). It should engage visitors (and residents) to respect the environment, honor our culture, and mitigate negative aspects of tourism. The TB must be a willing, enthusiastic, innovative, proactive, and motivated partner to the City, businesses, and residents. It must seek to balance the sometimes-competing needs in our community.

The growing conflict between the City and the Chamber isn’t healthy. If businesses, freed from their partnership with the City, begin an unconstrained marketing campaign, the conflict may widen and drag residents into a three-way argument. Nobody wins.

Managing tourism properly and effectively is a top priority for Sedona. This requires businesses, government, and residents to work together. This is no time for divorce. Everyone needs to pull together and make Sedona a great place to live, work, and raise a family.

Submitted by Pete Furman

“Opinions contained herein are my own, and do not necessarily reflect the views of the City of Sedona or the Sedona City Council.” 

The joint work session between the Sedona City Council and the Sedona Chamber of Commerce & Tourism Bureau on the afternoon of Wednesday, Jan. 11, revealed sharp differences in the priorities of both organizations and provoked discussion about the future of the SCC&TB as an organization.

While members of the City Council and city staffers focused on discussing the chamber’s organizational structure and the need for separate responsibility for decision-making on management and marketing, members of the chamber’s board expressed concerns over the ongoing availability of sales tax funds for marketing and the unity of destination management and marketing.

Clarity

Both council members and chamber staff went into the meeting looking for greater clarity from one another. Bed taxes, paid by tourists, can only be used on tourism promotion per Arizona state law, thus the city contracts with the nonprofit chamber to spend those funds to manage tourism programs and run the Uptown Visitors Center.

“We are where we are because I don’t think any iteration of council has given clear direction,” Councilwoman Kathy Kinsella said, adding, “More clarity needs to come from both sides.”

“At some point we really do need to determine what kind of relationship we want to have,” chamber president Michelle Conway agreed.

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“We really need you all to come to a clarification,” chamber Board Chairwoman Jennifer Perry suggested.

Conflict of Interest

Both council members and chamber staff differed in their views as to whether the city or local businesses should be the chamber’s primary customer.

“We are the customer,” Mayor Scott Jablow said. “I felt we weren’t being listened to.”

Vice Mayor Holli Ploog commented that the chamber board were “constantly telling us ‘we’re not your membership, your businesses are’ … and that’s the inherent conflict: ‘We’re the chamber and we’re not satisfying our chamber members.’”

Ploog added that what the chamber wants is not necessarily where the city wants to spend its money.

“Our job is to advocate for the businesses,” Perry agreed, which Councilwoman Jessica Williamson commented was “absolutely correct.”

“You need to be hearing from these businesses,” Perry added.

Conway pointed out that the chamber had agreed to pause destination marketing in 2021 in response to council and public concerns over tourism negatively affecting residents’ quality of life, and referred to ongoing claims on social media that the chamber is spending millions of dollars in city money on business marketing.

“We know better,” she told council.

Williamson remarked that the topic of city funds being spent on tourism marketing is a political issue, and that no matter how often the chamber tells Sedonans that city money isn’t being spent, “they’ll still say, ‘I don’t care.’”

Management vs Marketing

Chamber board member Al Comello reviewed the evolution of the chamber and its gradual development, with the growth of tourism, from a marketing organization into a marketing and management organization and then into a management organization as management became the overall mission.

“Be real careful trying to fix something that’s not broken,” Comello advised.

Comello also reminded councilmembers that the 0.5% bed tax that Sedona collects for tourism management and marketing should not be thought of as public funds. “It came from us taxing the tourists for the purpose of benefiting the city’s management needs,” Comello said, arguing that residents should “segregate it in our minds.”

“My interest first and foremost, beyond the structure, is that public funds are managed with propriety,” new Councilman Brian Fultz said after the meeting. “We’ve got to make sure that the funds are handled appropriately … and not to wind up benefiting chamber members. That’s the right thing to do.”

Consent to Separation

As the dicussion progressed, new Councilwoman Melissa Dunn wanted to clarify that there was a proposal for “a divorce” between the nonprofit chamber and its tourism bureau.

“Personally, I think separation is the right answer,” Ploog said. “I knew it had to be two separate entities. I was surprised that was news to you guys.”

“If you don’t make a clean split, it becomes very, very difficult to have two masters,” Dunn commented.

“There needs to be a clear separation,” Kinsella said.

“If you want to split it, it’s doable,” Comello said, but he advised the council to leave things as they are.

Holistic Tourism Bureau

“I think the solution is a new generation of tourism bureau,” new Councilman Pete Furman proposed. “A holistic bureau … it looks a little different.”

He suggested that the current SCC&TB, with all its employees, become a dedicated tourism bureau controlled by a board composed of business, city, resident and nonprofit representatives, thereby resolving issues of trust and control, and “we spin off a new chamber.” The chamber could then contract with the tourism bureau for needed services on behalf of private businesses, he suggested.

Sedona could be “one of the pioneers” for this model, Furman said, calling for the new bureau to be enthusiastic, proactive and “inherently motivated to think of the pluses and minuses of tourism management.”

Public Option

“Obviously, there is not consensus among council,” City Manager Karen Osburn said.

“Holistically, there is a need to morph into more destination management,” Osburn continued, replying to Furman’s proposal. She went on to say that the chamber may not be the right entity to do that, and that city staff might do a better job of handling destination management.

“Are you the right entity to take on tourism management and what does that mean?” Osburn asked. “Maybe those things are better suited for us.”

“As a city, we have the responsibility to do significant management,” Osburn said, noting that the chamber and its tourism bureau would still play a role in that process and could focus on branding and marketing.

Osburn emphasized to the council that the city’s Sustainability Department was concerned about the sustainability certifications being offered by the chamber, stating that they felt strongly that there was only room for one such program in the city and that the chamber effort did not have any teeth to ensure compliance.

“Some of this needs to come in-house to Sedona,” Kinsella said, adding that the city would likely have to hire an expert to help it assess and identify its needs.

“Sustainable tourism is really new,” Williamson said. “We don’t really know what it is, either,” commenting that eventually it will be someone’s job to figure that out.

“That already exists with Michelle [Conway],” chamber board member Lonnie Lillie countered. “You have an expert in tourism, just not under the city roof.”

“The problem is that she’s answering to the chamber,” Kinsella said. “There’s a conflict there.”

“It isn’t the staff, it’s the leadership,” Ploog said.

“I don’t think it’s city,” Furman differed. “Our plate’s full.”

“I would be cautious about assuming that we could just bring in the functions the chamber currently provides for us,” Fultz commented afterward, noting that the city does not have the chamber’s marketing skill set.

Fee for Service

As an interim measure, the council eventually agreed to accept the chamber’s proposed alternative of a fee-for-service business model for Fiscal Year 2023-24 while evaluating future options. Some council members nevertheless expressed concern about that model, particularly in the long term.

“The health care industry is fee for service. It doesn’t get good press,” Furman said. “Fee-for-service models look more transactional than partnerships.”

He added that it would open the door to higher prices for contracts that the chamber did not want or was not equipped to undertake.

Williamson pointed out that a fee-for-service model would require putting out a separate RFP for everything the council wanted to do.

“That’s not really the direction I’m interested in going at this point,” she said.

Ploog argued that fixed-price contracts produce better outcomes than time-and-materials contracts. “I’m supportive of going to fee-for-service for the upcoming fiscal year,” Kinsella said, identifying it as an “interim step” in the process of making a final decision about what functions should be incorporated into city government. She noted that “that fee-for-service model already exists on one side” of the chamber, as businesses can pay additional fees for services not included in their membership benefits.

“I would like to look more toward fee-for-service to start,” Jablow said. He suggested that although the city could permanently alter its relationship with the chamber in the future, if the fee-for-service model works out, it might not need to be changed.

Perry expressed that she would have preferred to continue with the existing partnership model, but she likewise concurred on a fee-for-service model as a temporary solution. She clarified that the chamber will contract with the city for specific services and will also have the ability to accept other clients.

“We’re talking about 2024 as the year of the exploration,” Kinsella said.

“This was very helpful. This was a conversation that needed to happen,” Conway concluded.

City councilors, staff explore splitting Chamber of Commerce from tourism bureau – Sedona Red Rock News

By Juliana Walter -August 8, 2022

Six candidates vied for the three open spots on the Sedona City Council and by Wednesday morning, the results appear to indicate candidates Pete Furman, Brian Fultz and Melissa Dunn won the seats.

The Yavapai County Recorder’s Office estimated at 9 a.m. on Wednesday, Aug. 3, that 17,000 early ballots dropped off at vote centers and drop boxes and 231 provisional ballots had yet to be counted. The county did not return calls indicating how many may affect Sedona’s election.

The top two candidates, Furman and Fultz, both have been longtime resi­dents of the city. Furman finished with 1,674 votes for 21.12% of the total votes and Fultz finished with 1,519 votes for 19.16% of the total votes.

“I am happy, honored and humbled by the support I received from so many Sedonans.” Furman said. “I look forward to working on City Council to enhance our quality of life, protect our environment and main­tain local control.”

“I am grateful to have been elected to the council at the primary and look forward to joining Pete Furman and Melissa Dunn as new councilors,” Fultz said. “ I’m also pleased that voters strongly supported the re-authoriza­tion of Home Rule budgeting. With the election complete, there is a lot to work on to address the concerns our resi­dents have, and I’m eager to get started.”

In a different turn of events from previous election cycles, three of the six candidates moved to the city within the past two years. But for Dunn, this did not seem to make a difference after receiving 1,409 votes.

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“I am excited by the opportunity afforded me by the residents of our community and grateful to my fellow candidates,” Dunn said. “Our problems are complex and complicated by the magnificence of our surrounding natural environment, which attracts large numbers of visitors, State laws and Federal Land Use principles. There is no simple or even single solution, but I believe by listening to each other we can find small, measurable, time-bound, steps forward to reach the vision and goals set out in our shared community plan.”

Incumbent Councilman Jon “J.T.” Thompson finished in fourth, followed by newcomers Jennifer Strait and then Scott Moffatt.

“I’m especially glad that they have also elected the best two candidates to council, Pete Furman and Brian Fultz. And while I had hoped to join them, I am sure that Melissa Dunn will provide a strong new perspective as well,” Thompson said. “I wish them and the existing council all the best.”

Although not elected, two other candidates both ran on the same platform, behind mayoral candidate Samaire Armstrong. As the city heads into the general election, Strait will continue to support Armstrong’s campaign.

“I want to thank you all for standing behind me to run for City Council. I am honored to have met and connected with you in heart and spirit,” Strait wrote on her Facebook page. “These past five months of campaigning, each and everyone one of us has planted the seeds for greatness. Birthing a new vision. Believing in a new way of living and being …. Now let’s continue this positive wave. I believe we can make that change.”

Scott Moffatt, who came in last, said “no comment.”

Furman, Fultz and Thompson all support Vice Mayor Scott Jablow as the next city mayor. Dunn has not given her support to either of the runoff candidates. The general election will take place on Tuesday, Nov. 8.

http://www.redrocknews.com/2022/08/08/furman-fultz-dunn-elected/

Published June 23, 2022 in the Sedona Red Rock News

I’m Pete Furman, candidate for Sedona City Council. I’m running to improve the quality of life for Sedona residents, help protect our environment and maintain local control.

Talking with residents and business owners, I hear fears and concerns about a declining quality of life. People cite negative forces like traffic congestion, high housing costs and strangers filling our neighborhoods. They believe that short-term rentals have decimated the availability of rental housing, causing workers to leave.

Crowded restaurants, slow service and rising prices are common. Trailhead parking is difficult and trails are overcrowded and trashed. Irresponsible ATV operators damage the environment and cause noise and congestion problems. Everyone suffers as our doctors and teachers move away. Residents blame overtourism and it’s hard to argue otherwise.

While we can do more, I believe city and community leaders are working to improve our quality of life. But public policy issues are difficult because our many needs and desires pull in different directions. And the process is darn slow. Improving quality of life takes time, money and effort.

In Sedona, tourism funds most of the city budget. Our challenge is to use tourism tax revenues to solve needs of residents and the local businesses we depend on. Managing tourism and mitigating its negative impacts on resident quality of life has become essential. City, [Sedona] Chamber [of Commerce] and [U.S.] Forest Service leaders all play vital roles. It’s important for residents to participate in Sedona’s budget process because that’s where city officials decide how to improve our lives and spend available revenues.

If elected, I will be laser focused on improving quality of life. I’ll seek to increase residents’ understanding of the budget. I’ll track our traffic, STR and housing efforts and will ask for outcome-based measures to gauge progress.

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I support the Sedona In Motion projects.

I believe unregulated, commercially operated STRs are mini hotels using state-protected loopholes and don’t belong in our neighborhoods.

I believe workers, families and retirees all enrich our community. I want more teachers, police officers, firefighters, nurses, city employees, artists and hospitality and service workers living in Sedona.

We can’t solve everyone’s needs for housing within city limits, but we’ll do what we can and work regionally to encourage more supply.

My attention will also be on protecting our environment.

Sedona’s Climate Action Plan is a significant body of work. I support it. Government has a legitimate role in advocating for and modeling good choices. Water and fire issues are particularly crucial. Flood protection, water supply and quality, conservation and reuse will get my attention. As will fire prevention, risk reduction and preparedness and evacuation planning.

Another key focus is local control, which means Home Rule. I’ve studied Home Rule and its impact on our city budget.

I presented to council about it. I support Home Rule. Maintaining local control al so means working with state legislators who understand that local leaders know what’s best for their communities and need flexibility implementing state laws.

Through experience, I’ve learned to work with the public, elected officials and city staff. I understand how local governments set policy and I enjoy the public process. I’m energized and ready to work for Sedona’s residents.

Pete Furman is one of six candidates for three seats on the Sedona City Council. Election day is Tuesday, Aug. 2.

http://www.redrocknews.com/2022/06/23/candidate-essay-pete-furman-will-use-outcome-based-measures-to-gauge-progress/