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HomeMy WebLinkAbout10-27-2010 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS OCTOBER 27, 2010 PRESENT: Bill Caster, New Hanover County Commissioner David Cignotti, Mayor Wrightsville Beach Scott Cromartie Greater Wilmington Chamber of Commerce Kim Hufham, President/CEO NHC TDA Frank Jones, Hotel (-)150 Wilmington Mike Keeler, Hotel 150 (+) Wilmington Dean Lambeth, Mayor Kure Beach Carl Marshburn, County Attraction Bob McKoy, NH County Vacation Rentals Chuck Pennington, County Bed and Breakfast Ronnie Pernell, Hotel Kure Beach Bill Saffo, Mayor City of Wilmington EXCUSED: John Andrews, Avril Pinder, Mayor Joel Macon, Anne Marie Hartman ABSENT: STAFF: Jeanette Foster, Administrative Services Manager/Recording Secretary Shawn Braden, Executive Vice-President of Marketing Mikie Wall, Vice-President Sales and Services Connie Nelson, PR/Communications Director Sheila Boyd, NHC Finance GUESTS: Shannon Bowen, Wilmington Star-News Kemmy Goodson, CPA, Goodson and Taylor Patricia Matson, Lumina News Kip Damrow, Alliance Hospitality Kemp Burpeau, Assistant County Attorney Chairman Bob McKoy called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:30 p.m. at the New Hanover County Government Complex, Room 500. He congratulated Carl Marshburn on his reappointment back to the TDA Board. 1 ITEM #1 EXCUSED ABSENCES John Andrews, Avril Pinder, Mayor Joel Macon, Anne Marie Hartman. ITEM #2 MINUTES APPROVAL AUGUST 25, 2010 [Motion made by Bill Caster, seconded by Scott Cromartie and unanimously carried that the minutes of August 25, 2010 be approved as read.] ITEM #3 FINANCIALS AND ROT REPORT SHEILA BOYD We are 1% above expenditures over last fiscal year, however we paid one more payroll last quarter. This really means the TDA is holding expenditures lower than last fiscal year. The Convention Center is up in expenditures over last fiscal year for the same period of time which is justified by promotions and trade show expenditures having already been paid. Revenues are in line with budgeted amounts. More importantly, they are up from the previous year for the first 3% by 8.9% FY; 4.3% calendar year. In reference to the second 3%, each of the beaches is up for fiscal and calendar years. Report represents July and August. Kim mentioned that according to the Smith Travel Research Report which represents approximately one-half of our properties, September shows occupancy is up 7% county wide. Not only are revenues up, but occupancy is up as well through September. [Motion made by Bill Caster, seconded by Mayor Bill Saffo and unanimously carried to approve the Financial/ROT report as presented.] Budget Amendments: President/CEO Kim Hufham advised we have two budget amendments to consider. The first one is for our server (Budget Amendment BA#2011-002). When our FY 2010-2011 budget was presented to the Board, we knew at that time that the server might not last through the new Fiscal Year. We are now at that point. The server has been malfunctioning now for several days and we would like to replace it before it completely dies on us. The need for the new server was brought before the 2 Executive Committee on Monday, at which time they did approve the budget amendment. The total cost for the new server, including taxes and installation, is $7,872.00. The audit, which Kemmy Goodson will be presenting tonight, will show that due to having higher revenue last year and holding expenses lower, we actually have a better fund balance than had been anticipated. Originally, we were going to appropriate $99,122. The additional appropriation is within the amount available for appropriation from our total fund balance of $199,047. [Motion made by Bill Caster, seconded by Bob McKoy and unanimously adopted by the New Hanover County TDA Board of Directors to appropriate fund balance in the amount of $7,872 for the purchase of a Dell PowerEdge T410 Windows Server as a replacement for the current server which has reached its maximum capacity.] Second Budget Amendment - (Budget Amendment BA#2011-001) : The first portion of the second budget amendment is to appropriate funds balance as outlined in the FY 09-10 annual audit from remaining funds of the second 3% ROT for promotions at Carolina, Kure and Wrightsville Beaches. At June 30, all with the exception of Wrightsville Beach, met the established guidelines for Promotion Fund Balance of 25%. Wrightsville Beach will increase from 8% FY 09- 10 to 14% for current Fiscal Year 2010-2011. They will incrementally increase to the 25% level through the annual budget process. The second portion of the amendment is to appropriate the available fund balance nd as outlined in the Fiscal Year 09-10 annual audit from remaining funds of the 2 3% ROT for Tourism Activities at Carolina, Kure and Wrightsville Beaches. The third portion of the amendment is to appropriate remaining funding received Fiscal Year 09-10 from the City of Wilmington for convention center marketing. [Motion made by Bill Caster, seconded by Frank Jones and unanimously carried that Budget Amendment 2011-001 amending the annual budget ordinance for Fiscal Year ending 6/30/11 is hereby adopted by the New Hanover County TDA Board of Directors.] Copies of amendments can be found in Exhibit Book IX. ITEM #4 AUDIT REVIEW KIMMIE GOODSON (Copy of Audit Review can be found in Minutes Book IX July 2010 June 2011). Mr. Goodson stated that the audit is divided into four sections: Independent Convention & Visitors Bureau has been given an unqualified report (no deficiencies, 3 no concerns, etc.) He indicated that page opinion, pages two through six contain the Management Discussion and Analysis giving financial highlights for 2009-2010; pages seven through twenty show Basic Financial Statements containing net assets, statement of activities, fund financial statements, balance sheet, statement of revenues, etc., reconciliation of the statement of revenues, expenditures, changes in fund balance, etc. Pages twenty-one through twenty-three contain the Supplementary Financial Information which is the schedule of revenue, expenditures and changes in fund balance (budget and actual, which are totaled by category.) Kemmy explained each of the above areas with figures and explanations as needed and/or as requested by the Board. A summary report from the audited financial statements of the Authority was distributed to give the Board a quick review of the more pertinent facts from the statements. In addition to the first 3%, the second 3% and what the beaches had spent was discussed as well as a convention center breakdown. He noted that overall, even though revenues are down, we did not do bad. He advised the Authority had done a good job in watching expenses with the revenue that was coming in. Kemmy did indicate fund balance had built up some and the TDA is in good shape. Following some comments from the Board, [Motion made by Mayor Bill Saffo, seconded by Bill Caster and unanimously carried to approve the Fiscal Year Audit for 2009-2010 as presented by Kemmy Goodson of Goodson and Taylor.] ITEM #5 FUNDING REQUESTS KURE BEACH KIM HUFHAM The Town of Kure Beach respectfully requests funding for provision of lifeguard services on the beachfront for the summers of 2009 and 2010. The requested funds cover the Kure Beach Lifeguard Program for two budget years, 2009-2010 and 2010-2011 (2009-2010 - $124,695.60; 2010-2011- $63,139.02). This program is directly related to tourism as it acts to protect vacationers and visitors from harm as they swim and enjoy the beach strand in the incorporated Town limits of Kure Beach. Visitors are attracted to beaches that offer lifeguard services, particularly those with young children and older adults. Funds are available. [Motion made by Mayor Bill Saffo, seconded by Bill Caster and unanimously carried to approve the Kure Beach request for lifeguard services on the beachfront for the FY 2009-2010 in the amount of $124,695.60 and 2010-2011 in the amount of $63,139.02 for a total of $187,834.62.] 4 ITEM #6 KIM HUFHAM At the August meeting, a request had been made that new pictures be submitted from each of the beaches past beach activities fund requests. Kim presented a slide show from the three beaches on projects which have been completed. Chairman Bob McKoy and Kim gave an annual update of the TDA to the New Hanover County Commissioners. This will be an annual report given at the request of the Commissioners. weeks ago on economic development. A presentation to the Bed and Breakfasts/Inns and a tour of the Wilmington Convention Center was given working with Chuck Pennington. Spoke to Wilmington Downtown, Inc. Marketing Committee: Presented CVB Marketing Plan. Presentations to the marketing committees at the beach communities on the Rooms Occupancy Tax and its breakdown, etc. The Communications Department had a successful Homewood Suites Family Friendly Media FAM in September. In marketing, our season campaigns have been launched. Just finished with the fall campaign; our Holiday campaign to launch next week. New website is underway. We are at the wireframe phase and presently getting approval from the marketing committees. Meeting with Wrightsville Beach tomorrow. Have received approval fro on their portions. The Visitors Guide is in the final proofing stage. Will be ready by the end of December. The Sales Department has been very busy attending tradeshows or those yet to come to include: TEAMS, Affordable Meetings, MPI, Meetings Quest, Rejuvenate, Connect, AENC Annual Show. Have been able to make plans Center marketing side. Continued interest in the new Wilmington Convention Center. First event to take place November 14 (Cape Fear Wedding Show.) Our January Board meeting will be held there. John has been extremely busy with site inspections and working with SMG. Tourism Forum being hosted by the Wilmington Star-News on November 17 from 7 to 9 p.m. at the Wilmington Convention Center. Everyone is encouraged to attend. Kim as well as Chuck Pennington will be panelists. Mikie Wall, Vice President of Sales and Services, reported on the Sports Breakfast which she attended recently here in Wilmington. She noted from the meeting that sports events held here will definitely increase our tax base. There was talk of having a baseball stadium downtown and what it could do for the community. If this does become a reality, it would be beneficial to have a performing arts center as well along with retail space. Popularity as an entertainment and sports venue would 5 increase the area as a wholesome family activity area and not depend only on tourism to support it. Mikie indicated sponsorships to bring in teams for various events was also discussed. She also said she had just returned from TEAMS which is the largest sports event meeting in the country. Received several leads from this. She said during the Awards Luncheon at TEAMS, Wilmington had two events mentioned: the NCAA Battleship Triathlon. Mikie also noted that an advisory committee is being put together to help with sports efforts here. She said down the line, need to look at putting money in our budget to help with sponsorships to bring sports events to the area. Kim discussed recent articles concerning the beach marketing committees, etc. Concerns have been expressed through some members of the committees reference distribution and use of the Rooms Occupancy Tax, the Convention Center marketing by the Wilmington/Cape Fear Coast CVB and using the name Cape Fear Coast in our marketing efforts and branding. Kim indicated she had been working with Avril Pinder and had asked Kemp Burpeau, Deputy County Attorney, to be here tonight in case of questions. She has also asked Kemp to give a legal ruling of the Legislation. Kemp has provided this to her. Kim had a discussion of this matter with the TDA Executive Committee on Monday morning. Avril along with the Committee recommends that the Tourism Development Authority Board write a letter to our beach town mayors to clarify the distribution and use of Rooms Occupancy monies as well as clarification on how the Wilmington Convention Center monies are spent according to Legislation. We also need to address how we are going to be handling things through our new creative agency and our RFP distribution brand. Kim advised again the importance of this being a letter of clarification only to the towns so they know we are aware of their concerns and issues. It will be up to them whether or not to share the letter with their marketing committees. It was the recommendation of the TDA Executive Committee that the letter be written with interpretation that was provided to us from Kemp Burpeau of the County Board discussion followed on the reasoning behind the letter being sent to clarify some issues which have come up. [Motion made by Scott Cromartie, seconded by Chuck Pennington and unanimously approved to send a letter of clarification to the beach town mayors on the distribution and use of ROT monies and to clarify how the Wilmington Convention Center monies are spent according to Legislation. Other issues as presented will also be clarified.] 6 Kim advised that the CVB has been approached by the City of Wilmington reference office space they will soon have available. She noted that even though we love the beautiful building we are in and would hate to leave, we have run out of space and no other space is available in the building. Would like to see what the Board any time or effort on it. The space being proposed by the City is where SMG currently has their offices. It is located behind the Railroad Museum. It has 4,638 square feet of space. We currently have 3,481 square feet of space (would be an increase of 1,200 square feet.) We would also have storage space which is sorely needed. A big plus is parking for our visitors (10-12 spaces.) We would be close to the convention center and the Chamber of Commerce. Another thing to consider at this time, the City is moving forward with their signage project for the Wilmington Convention Center so we would be able to get included in that effort with our signage as well. Annual rent would increase, but currently talking with Steve Bridges on negotiating rental costs and doing some incremental increase in the rent for this Fiscal Year as we do not have any additional funds available in the budget for increased rent. Consensus of the Board for Kim to move forward with getting information together and either do a conference call with the Board or perhaps have a special called meeting at the new office space ASAP. This consensus made by Scott Cromartie and seconded by Chuck Pennington. ITEM #7 OLD BUSINESS/NEW BUSINESS No old business. New Business: Plaque presented by Chairman Bob McKoy to Commissioner Bill Caster for his many years of service on the TDA Board. ITEM #8 BOB MCKOY No comments. [Motion made to adjourn at 6:35 p.m.] 7 ______________________________ __________________________ Kim Hufham, President/CEO Jeanette Foster, Recording Secretary Minutes located in TDA Board Minutes Book IX 8