The URL can be used to link to this page

Home My WebLink AboutTDA 05-25 2011 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS MAY 25, 2011 PRESENT: John Andrews, County Restaurants Jonathan Barfield, Chairman – New Hanover County Commissioners David Cignotti, Mayor – Wrightsville Beach Kim Hufham, President/CEO – NHC TDA Mike Keeler, Hotel – 150 (+) Wilmington Dean Lambeth, Mayor – Kure Beach Carl Marshburn, County Attractions Bob McKoy, NH County Vacation Rentals Sabina Newman, Greater Wilmington Chamber of Commerce Avril Pinder, Authority Finance Officer Jimmy Pope, Hotel – Carolina Beach Bill Saffo, Mayor – City of Wilmington EXCUSED: Frank Jones, Anne E. Brodsky, Anne Marie Hartman, Chuck Pennington, Councilman Dan Wilcox 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 Jette’ Ferrell, NHC Finance GUESTS: Shannon Bowen, Wilmington Star-News Kip Damrow, Scott Hazle - Hilton Garden Inn Brandon Agency (Andy Kovan, George Durant, Barry Sanders, Wendi Burrell) Clean Design (Stephanie Perri) Patricia Matsen, Lumina News Chairman Bob McKoy called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:35 p.m. at the Hilton Garden Inn at Mayfaire. 1 ITEM #1 – EXCUSED Frank Jones, Anne Brodsky, Anne Marie Hartman, Chuck Pennington, Dan Wilcox ITEM #2 – MINUTES APPROVAL – MARCH 23, 2011 [Motion made by Sabina Newman, seconded by Mike Keeler and unanimously accepted to approve the March 23, 2011 TDA Board minutes as read.] ITEM #3 – FINANCIALS AND ROT REPORT – AVRIL PINDER Avril Pinder, New Hanover County Finance Director, advised the Board that th expenditures are 89% spent as of May 25, 2011 with no overages. Through March, Room Occupancy Tax Collections for first 3% show a 9.5% increase compared to same time last year. That is good. Beaches are also looking good (through March compared to same time last year) – Carolina Beach up 14.93%; Kure Beach up 12.89%; Wrightsville Beach up 21.27%. [Motion made by John Andrews, seconded by Mayor David Cignotti and unanimously carried to approve the financial report as presented.] Ms. Pinder noted that RFP’s had gone out for the selection of an auditor to do the TDA books for FY 2010-2011. Goodson and Taylor (has done the books for the past three years) came in with low bid of $3,800.00. Would like to contract Goodson and Taylor for another three-year period. [Motion made by John Andrews, seconded by Mayor Bill Saffo and unanimously carried to approve Goodson and Taylor to do the TDA’s audit for the next three Fiscal Year periods.] ITEM #4 – 2011-2012 BUDGET REVIEW – KIM HUFHAM President/CEO Kim Hufham presented detail points to summarize the 2011-2012 budget compared to prior year.  Total budget presented is $3,443,815 compared to previous FY 2010-11 budget of $3,229,080. New Fiscal Year total budget represents a 6.65% increase over prior year. Revenues will continue to be monitored closely for any changes in the current trends.  Revenues are based on current adjusted year and show an 8% increase from projected fiscal year 2010-2011. First 9 months of current budget is running a 9.58% increase as compared to 5.57% decrease same time last fiscal year. 2 Industry indicators continue to remain strong for the upcoming summer season.  First 3% budget shows a 4% increase in expenditures.  First 3% budget continuing to focus on marketing and promotion representing 73% of the budget. Marketing and advertising programs are being based on the strategic direction recommendations working with our new agency.  Salaries and Benefits – 2.5% cost of living increase has been included (there have been no salary increases in the last 3 budget cycles). Current frozen position of the Marketing Assistant will continue and be evaluated mid-year dependent upon revenues. SEP contributions to employees have been incrementally increased to 7.5% for this fiscal year with a goal of returning to the original 10% in the 2012-2013 fiscal year.  Capital expenditures budgeted for new fiscal year are: 5 replacement PC’s and laptops, 2 printers, 2 thin client hard drives (VIC). Total budget for FY 2011-2012 discussed which showed revenues and expenditures compared to one another: REVENUES: st Rooms Occupancy Tax – 1 3% $1,444,684 nd Rooms Occupancy Tax – 2 3% $1,535,785 Convention Center Marketing $ 288,960 Administrative Revenue $ 102,386 st Appropriated Fund Balance (1 3%) $ 72,000 Total Revenues $3,443,815 EXPENSES: st Marketing/Promotions – 1 3% $1,177,853 nd Marketing/Promotions/ – 2 3% $ 716,700 Administrative $ 318,607 Visitor-Inquiry Fulfillment $ 122,610 Convention Center Marketing $ 288,960 nd Activities (Beaches -2 3%) $ 819,085 Total Expenses $3,443,815 Chairman of the New Hanover County Commissioners Jonathan Barfield inquired about some ROT funds being used for outside grants. The major one he is interested in getting TDA funds for would be the Arts Council. Wants to set up a meeting with Kim along with another Commission member to discuss this issue. Kim advised Chairman Barfield that we do not have funding available for grants, because we receive such a limited amount of the funds ourselves. It was noted that the CVB would be happy to participate in a regular meeting to discuss how the budget for the TDA/CVB works. 3 Kim did a breakdown of the first 3% budgeted item expenses: 7% of the dollars allocated goes to Visitor Information Services. All Visitor Center staff parking will come out of this category this year instead of administrative. 20% of dollars allocated goes to Administrative of which the biggest expense this year is rent. 73% of dollars allocated goes to Marketing and Promotion. Increases include mailing house services, but hopefully with a self mailer of the new Visitors Guide will save on envelope and processing costs. Smith Travel Research has been reinstated. This is a very vital report in tourism trends for our area. Joining one new Association this year (National Association of Sports Commissions.) Significant jump in the Visitors Guide due to decrease in ad sales. Bids put out for publication, but even with ad support, will still cost more for the new guide. With our new branding, will be updating inserts for Group Tour Guide, preparation of new press kit and electronic press kit. Will have to redo a lot of our photography and video items also due to our new branding. Several of our advertising dollars being shifted to promotional side to promote new web site. On line advertising has gone up significantly. More to be spent monthly on social media. In group sales, adding the American Bus Association. Pay Per Click budgeting now $45,000. Pushing new web site marketing as we put the new one on line. (Brandon Agency presented an overview of the PPC and the reports which we will receive monthly.) Mills Marketing being added this year as another way to reach Triple AAA offices and other military shows. Two persons will attend the Tourism Leadership Conference. Will need to replace some PC’s and printers. nd Kim reviewed the beach accounts (2 3%) as well as convention center marketing. Kim noted that in convention center marketing, we work closely with the Wilmington Convention Center itself on what shows each of us does individually as well as cooperatively and also advertising aspects, etc. After some further discussion, Kim advised that a public hearing notice to advertise the budget would be placed in the Wilmington Star News prior to our June meeting at which time we will adopt the formal budget. Kim further advised that instead of a short meeting for the public hearing/formal adoption of the budget only in June, a full Board meeting will be held so that the Brandon Agency can present our new branding. ITEM #5 – THE BRANDON AGENCY – PRESENTATION – ANDY KOVAN, GEORGE DURANT, BARRY SANDERS, WENDI BURRELL George Durant started the meeting by stating that the process of coming up with branding for our area had been lovingly laborious. They had been charged with a unique challenge of taking all that is different and collective in New Hanover 4 County and put it together in one manageable look, feel, brand and family. He said we have unique features, unique downtown area, unique attractions unique dining and 3 beaches. He also mentioned that the CVB has an adventuresome soul, an independent spirit and that we do things like no one else does. George said they had discovered romance, great dining, humor and with all that said, they have boiled it down to a couple of things they wanted to include in the brand platform tonight. Andy Kovan then introduced the fact that to create a distinctive brand that captures the spirit, that branding must be able to inspire. Has to be able to generate emotion and the Brandon Agency feels they have captured that here. He said it is a known fact that “people inquire on emotion and buy on facts.” Their main focus for this meeting’s presentation is to present structural, platform development. Brand idea and brand development will be the vocal point of what they will be looking at. Mr. Kovan walked the Board through some of the things they had learned mainly from the planning sessions:  Challenges/Awareness – People do not know what is here = story that needs to be told.  Cohesiveness = Need to figure out a way for the tourism industry to work better together.  Budgets relative to the competition.  Why people come here and who is the core customer.  Use of human attributes = warm, friendly, easily defined, unique, romantic, comfortable.  Why we are not like Myrtle Beach, Outer Banks, etc. = we are authentic, unique, not pretentious.  Uniqueness = historic, beaches, diversity, balance, natural resources, independent spirit.  Beach and river important = view, environment, relaxation, wildlife, less stress, peaceful.  Micropolis (Breed of small charming cities) = us = sense of community and place.  Brand values = quality, not quantity of life takes priority. Mr. Kovan says the definition for us for the brand process is: BE – to have presence in the realm of perceived reality, to exist and to live. BECOME – to come to be, to grow and to develop into something. NOURISH – to cherish, to foster and to keep alive. He said these three words make up the core of our brand position. “Where the River and the Sea nourish the Soul – we become.” 5 (Video shown of generic branding – said had been put together for the evening only.) He indicated the next steps include conducting a research study, creative brief and creating development. Creative presentation to be presented at the next TDA Board meeting. ITEM #6 – PRESIDENT’S COMMENTS – KIM HUFHAM President/CEO Kim Hufham thanked New Hanover County Commissioner  Barfield for sending the letter. We are trying to solicit the 2014 Annual Meeting of the North Carolina Association of County Commissioners to hold their 2014 meeting at the Convention Center. National Tourism Week went very well. Went to Raleigh for National  Tourism Day and had a display in the Legislative Building. Was able to meet with all four of our legislative delegation while there. All of our Visitor Information Centers are up and running.  Have all been busy (especially Shawn’s Department) working with the Beach  Marketing Advisory Committees, as well as with the Brandon Agency and Clean Design. Kim said this is a great partnership we have going and feels good about the direction we are headed in. In next couple of weeks, we will be hosting the Society of Government  Meeting Planners annual meeting between the Hilton Wilmington Riverside and the Wilmington Convention Center. Have heard the National President for this group will be in attendance. Will be hosting the Association Executives of North Carolina for their June  annual meeting again at the Hilton and WCC. Note that our June Board meeting will be on a Monday, June 20 and will be a  full Board meeting. The North Carolina GOP will be here June 3-5.  ITEM #7 – OLD BUSINESS/NEW BUSINESS John Andrews inquired about Save Our Summers. President/CEO Kim Hufham advised the latest information she has is there has been a bill that would be an either/or bill where they require a 1,000 hours or 180 days, but it does not touch the start or the end date. They are trying to give some reprieve for the mountain counties where they’ve had such bad weather. The tourism industry has said we can live with that; just don’t change the start dates. Lobbyists are on top of it. Kim said she would keep the Board informed. th Kim noted that our June 20 TDA Board meeting will be held at the Hilton Wilmington Riverside. 6 Some discussion on the recent Seaside Tournament and the amount of business it generated. ITEM #8 – CHAIRMAN’S COMMENTS – BOB MCKOY Chairman Bob McKoy said we have a vacancy on the Executive Committee which needs to be filled. Normally the past Chairman fills this slot; however when Ronnie Pernell left this position, his time on the Board also expired. The Chairman proposed that Carl Marshburn be elected to fill the vacancy. [Motion made by Commissioner Jonathan Barfield, seconded by Jimmy Pope and unanimously carried to approve Carl Marshburn to fill the vacancy on the Executive Committee.] Adjourn at 7:10 p.m. ______________________________ __________________________ Kim Hufham, President/CEO Jeanette Foster, Recording Secretary Minutes located in TDA Board Minutes Book IX 7