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HomeMy WebLinkAboutWRFC Minutes 2012-4-19MINUTES OF SPECIAL MEETING OF THE BOARD OF DIRECTORS OF WILMINGTON REGIONAL FILM COMMISSION, INC. A North Carolina Non-Profit Corporation PURSUANT TO NOTICE, a copy of which is attached as EXHIBIT A, the Board Of Directors of the Wilmington Regional Film Commission, Inc. (WRFC) held a special meeting at 8:00 AM, on April 19, 2012. Ms. Carey Jones, Mr. William Vas Bill Saffo, and Mr. Jimmy Smith were present in person. In addi Fisher and Tori Jones of Clove Marketing were also present. APPROVAL OF MINUTES FROM JANUARY 25, 2012 BOARD 1. MEETING. The minutes from the Board Meeting on January 25, 2012 a copy of attached as EXHIBIT B, were unanimously approved. DICUSSION OF TERM LIMITS FOR CHAIRPERSON AND VICE 2. CHAIRPERSON. Discussion was held regarding term limits for the Chairperson Chairperson. Board will elect vice Chairman. Previous Vice Cha seat. Chairman and Vice Chairman will be from different appointing authorities. REPORT ON PRODUCTION ACTIVITY. 3. Currently there are seven shows in town, 2 are prepping, 3 are shooting, 2 more shows are on the wa production expenditures have grown from $45 million in 2010 to $113 million in 2011. In 2012, production expenditures have grown to $125-145 million to date. ADOPTION OF MEMBERSHIP PLAN. 4. Tori Jones of Clove Marketing and Johnny Griffin explained the new film commission membership plans EXHIBIT C. Since we are moving to a more tech savvy way of life we have dec guide and have an online directory only. This will save the co therefore reducing expenses and increasing efficiency. An added benefit is that memberships can be sold year round. APPROVAL OF REQUEST TO SPEND $5,000 IN CONTINGENCY FUND OF 5. 2011/2012 BUDGET. The board approved the request to spend $5,000 in contingency purchase a computer for interns to work on photo database and to provide funding to change the Production Coordinator position from full-time to part-time. 6. DISCUSSION OF FY 2012-2013 BUDGET INCLUDING FUNDING SOURCES. Johnny Griffin presented a preliminary budget for FY 2012-2013 attached as EXHIBIT D.. The budget highlights are: *No increase in funding from the City or County for the fourth c *A 250% increase in private sector support over the FY 2011-2012 budget. *An almost 200% increase in marketing expenditures. *Funding to change the part-time Production Coordinator position to full-time status. 7. DISCUSSION OF ITEMS NEEDED FOR GROWTH. Johnny reviewed a list of unfunded items attached as EXHIBIT E that are needed to advance Film Commission. The board instructed Johnny to communicate with and New Hanover County and inform them that the Commission is as restored to the levels detailed in the funding contracts which srease in funding based upon the Consumer Price index. 8. PRESENTATION OF LEGISLATIVE UPDATE. Bill Vassar gave a legislative update. Discussion focused on the Film Incentive program. The has been successful in recruiting the film and television industry to North Carolina. The board discussed the sunset date of January 2014 and the need to extend certainty to clients. There being no further business, the meeting adjourned at 9:50 A Respectfully submitted, Carey Jones, Chairperson MINUTES OF SPECIAL MEETING OF THE BOARD OF DIRECTORS OF WILMINGTON REGIONAL FILM COMMISSION,INC. A North Carolina Non-Profit Corporation PURSUANT TO NOTICE,a copy of which is attached as EXHIBIT A,the Board } Of Directors of the Wilmington Regional Film Commission,Inc. (WRFC) held a special meeting at 8:00 AM,on April 19,2012. Ms.Carey Jones,Mr.William Vassar,Hon.Ted Davis Jr.,Hon. Bill Saffo,and Mr.Jimmy Smith were present in person. In addition Johnny Griffin,Anna B. Fisher and Tori Jones of Clove Marketing were also present. 1. APPROVAL OF MINUTES FROM JANUARY 25.2012 BOARD MEETING. The minutes from the Board Meeting on January 25,2012 a copy of which is attached as EXHIBIT B,were unanimously approved. 2. DICUSSION OF TERM LIMITS FOR CHAIRPERSON AND VICE CHAIRPERSON. Discussion was held regarding term limits for the Chairperson and Vice Chairperson. Board will elect vice Chairman. Previous Vice Chairman will move into Chairman seat. Chairman and Vice Chairman will be from different appointing authorities. fi 3. REPORT ON PRODUCTION ACTIVITY. Currently there are seven shows in town,2 are prepping,3 are shooting,2 more shows are on the way. Johnny Griffin stated that production expenditures have grown from$45 million in 2010 to $113 million in 2011. In 2012, production expenditures have grown to$125-145 million to date. 4. ADOPTION OF MEMBERSHIP PLAN. Tori Jones of Clove Marketing and Johnny Griffin explained the new film commission membership plan attached as EXHIBIT C. Since we are moving to a more tech savvy way of life we have decided not to print the production guide and have an online directory only This will save the commission a lot of time and money therefore reducing expenses and increasing efficiency. An added benefit is that memberships can be sold year round. 5. APPROVAL OF REOUEST TO SPEND$5,000 IN CONTINGENCY FUND OF 2011/2012 BUDGET. The board approved the request to spend$5,000 in contingency funds to g 3 u 1 1 purchase a computer for interns to work on photo database and to provide funding to change the Production Coordinator position from full-time to part-time. 6. DISCUSSION OF FY 2012-2013 BUDGET INCLUDING FUNDING SOURCES. Johnny Griffin presented a preliminary budget for FY 2012-2013 attached as EXHIBIT D..The budget highlights are: *No increase in funding from the City or County for the fourth consecutive year. *A 250% increase in private sector support over the FY 2011-2012 budget. *An almost 200%increase in marketing expenditures. *Funding to change the part-time Production Coordinator position to full-time status. 7. DISCUSSION OF ITEMS NEEDED FOR GROWTH. Johnny reviewed a list of unfunded items attached as EXHIBIT E that are needed to advance the recruiting efforts of the Film Commission. The board instructed Johnny to communicate with the City of Wilmington and New Hanover County and inform them that the Commission is asking that funding be restored to the levels detailed in the funding contracts which specify an annual increase in funding based upon the Consumer Price index. 8.PRESENTATION OF LEGISLATIVE UPDATE. Bill Vassar gave a legislative update. Discussion focused on the Film Incentive program. The board agreed that the program has been successful in recruiting the film and television industry to North Carolina. The board discussed the sunset date of January 2014 and the need to extend the credit in order to provide certainty to clients. � I There being no further business,the meeting .djsurned at 9:50 A.M. 3 Respectf ly susmitted, 1 i Carey Jones,Chairperson WILII INGTON BOARD OF DIRECTORS Carey Jones,Chairperson REGIONAL FILM COMMISSION,INC. William Vassar,Vice-Chairman is 1223 NORTH 23rd STREET • WILMINGTON, NC 28405 Honorable Bill Saffo --- Mgr www.wilmington-film.com • commish@wilmington-film.com James L.F.Smith MEMO DATE: April 12,2012 TO: Carey Jones, Chairperson William Vassar,Vice-Chairman Ted Davis,Jr. Bill Saffo I€I James L.F.Smith CC: Johnny Griffin FROM: Anna B. Fisher RE: NOTICE OF SPECIAL MEETING OF THE DIRECTORS OF WILMINGTON REGIONAL FILM COMMISSION, INC. Notice from the Chairperson is hereby given that a special meeting of the directors of Wilmingtonitegional Film Commission, Inc. shall be held as follows: PLACE OF MEETING: Wilmington Regional Film Commission,Inc. 1223 N.23rd Street,Wilmington,NC 28405 (910)343-3456 DAY&HOUR OF MEETING: April 19,2012 8:00 AM PURPOSE OF MEETING: The primary purpose of the meeting is to: 1. Approve Minutes from the January 24, 2012 WRFC Board meeting. 2. Discussion of term limits for Chairperson and Vice Chairman 3. Report of production activity 4. Adoption of membership plan beginning in calendar year 2013 5. Approval of request to spend$5,000 in contingency funds of 2011/2012 budget 6. Discussion of FY 2012-2013 budget,including funding sources 7. Discussion of items needed for growth 8. Legislative update 9. Presentation of Reel Scout system 1 i EXHIBIT Member of afcI ASSOCIATION OF A FILM COMMISSIONERS INTERNATIONAL E WILMINGTON BOARD OF DIRECTORS Carey Jones,Chairperson REGIONAL FILM COMMISSION, INC. William Vassar,Vice-Chairman f Honorable Ted Davis,Jr. 1223 NORTH 23rd STREET • WILMINGTON, NC 28405 Honorable Bill Saffo -- „ www.wilmington-film.com • commish @wilmington-Film.com James L.F.Smith fi BOARD OF DIRECTORS OF THE WILMINGTON REGIONAL FILM COMMISSION, INC. Agenda for Board Meeting April 19,2012 8:00 a.m. 1)Approve minutes from January 24, 2012 Board Meeting (Attachment"A") 8:01 a.m. 2) Discussion of term limits for Chairperson and Vice Chairman 8:10 a.m. 3) Report on production activity 8:15 a.m. 4)Adoption of membership plan beginning in calendar year 2012 (Attachment"B") 8:30 a.m. 5)Approval of request to spend $5,000 in Contingency fund of 2011/2012 budget 8:40 a.m. 6) Discussion of FY 2012-2013 budget, including funding sources (Attachment"C") 9:00 a.m. 7) Discussion of items needed for growth (Attachment"D") 9:15 a.m. 8) Legislative update 1 *9:30 a.m. 9) Presentation of Reel Scout system *Time permitting 1 } Member of afcI ASSOCIATION OF FILM COMMISSIONERS INTERNATIONAL 1 • MINUTES OF SPECIAL MEETING OF THE BOARD OF DIRECTORS OF WILMINGTON REGIONAL FILM COMMISSION,INC. A North Carolina Non-Profit Corporation PURSUANT TO NOTICE,a copy of which is attached as EXHIBIT A,the Board of Directors of the Wilmington Regional Film Commission,Inc.(WRFC)held a special meeting at 8:00 AM,on January 25,2012. Mr.Jimmy Smith,Mr.William Vassar,Hon.Ted Davis,Jr.,Ms. Carey Jones,Hon.Bill Saffo were present in person. In addition Johnny Griffin and Ms.Anna B. Fisher were also present. 1. APPROVAL OF MINUTES FROM OCOTBER 11,2011 BOARD MEETING. The minutes from the Board Meeting on October 11,2011,a copy of which is attached as EXHIBIT B,were unanimously approved. 2. APPOINTMENT OF FIFTH DIRECTOR BY THE OTHER FOUR DIRECTORS REPRESENTING NEW HANOVER COUNTY AND THE CITY OF WILMINGTON. James L.F.Smith was appointed to a second three-year term as the fifth director. 3. ELECTION OF OFFICERS FOR 2012. Carey Jones was appointed chairperson for 2012,Bill Vassar was re-appointed vice-chairman,Johnny Griffin was re- ? appointed secretary. 4. UPDATE ON 2012 WILMINGTON REGIONAL PRODUCTION GUIDE. Johnny Griffin stated the 2012 Production Guide is being printed and should be ready for distribution by end of the month. The Production Guide is the largest ever because of growth in advertisers. 5. UPDATE ON PRODUCTION ACTIVITY. Johnny Griffin reported we have four productions currently on the studio lot.He also,reported that there is a strong continued interest in the Wilmington Region. 6. DISCUSSION OF FUNDING SOURCES. Johnny Griffin requested the board look into additional sources to fund the film commission. We need to consider funding for full time position of director's assistant. { 7. ENTER INTO CLOSED SESSION FOR THE PURPOSE OF CONDUCTING AN EMPLOYEE EVALUATION. Johnny Griffin and Anna B.Fisher were excused from the room. Discussion was held among the board.No action was taken. EXHIBIT B 3 8. RETURN TO OPEN MEETING. Johnny Griffin and Anna B.Fisher returned to meeting. There being no further business,the meeting adjourned at 9:45 A.M. Respectfully submitted, 400" James L.F. Smith Chairman 1 WRFC 2013 REVENUE PLAN—BECOMING A MEMBER-BASED ORGANIZATION OVERVIEW: A confluence of events has created some unique opportunities for the WRFC. 2013 will mark the 20th anniversary of the founding of the commission, at the same time that the local industry is experiencing a banner year. Thanks to the strong foundation provided by a competitive incentive structure,the studio,generations of experienced crew, depth of support services, and supportive local governments and community, Wilmington seems firmly entrenched as a location leader for the industry. The film industry here is a beacon in otherwise unsettling economic times. Over 2 Billion dollars have been spent locally since 1993. That averages out to 109 Million dollars per year pumped into the local economy over the past 2 decades. Together, these things indicate that the time is now to move from relying on advertiser support for revenue. It is time to become instead a membership-driven organization through increased buy-in from the private sector. OBJECTIVES: Maximize annual revenue related to private sector support. Encourage support from businesses and individuals not directly involved in the industry. STRATEGY: Discontinue printing the annual production guide. Develop an enhanced version of our website's support services section, and offer a variety of membership level benefits for businesses wanting exposure to productions. These will be referred to as Support Services Members. Develop and implement a membership program that allows businesses and individuals not directly involved in the industry to support and receive recognition from the industry. These will be referred to as General Members. REASONING: Printing costs consume a large percentage of advertising sales revenue. Informal surveys of users of the guide indicate that the majority of them would prefer to go to the website to get support services information. This trend will only continue. Informal surveys of long-time advertisers, both large and small, indicate that they would understand and support the switch from print to online. If a client wants a printed copy of the support services and crew listings,we have functionality built into the website that will allow us to print an easy-to-use, paginated copy of those sections,complete with table of contents. On the other end, if digital users want to access the same information through an application,the NC Film office has developed a smart phone app though which users can easily search our information. EXHIBIT i By making the switch,there is an opportunity to not only decrease expenses, but to increase revenue. This is due in part to the limited number of high-dollar ad spaces (inside covers, tabs) in the printed guide. The website offers much more opportunity, as will be explained. Additionally,given the increase in industry activity in the area,the time is right for businesses and individuals not directly involved in the industry to be approached for their support. TACTICS: FOR SUPPORT SERVICES MEMBERS Offer logo links on the home page. Offer listings and enhanced listings on the vendor portion of the site Offer banner displays on the bottom of the home page. Logo links across the top of the home page would be discreet yet effective. They don't take up a lot of home page real estate, but allow vendors whose name are known, such as the big equipment rental companies and hotel chains,to have a major presence with links to more information on their services. Banner displays across the bottom would allow lesser known businesses to showcase their offerings. } { The support services tab would go to an alphabetical listing of all vendor categories. When a category is clicked on (accommodations—hotels,for example), it would go to that section of the directory. Those who purchase a membership in that category would have their company name and contact information listed. Those who would like more attention drawn to their listing could join at a higher level of membership to have a mark, indicating a special designation, next to their listing. This mark would be uniform for all businesses wanting more attention drawn to their listing. This designation, possibly to be called "Wilmington Loves Film"would appear as a logo, next to the listing. When the logo is clicked on,the explanation of what the designation stands for would appear. The explanation might read as follows: { "Wilmington Loves Film" businesses recognize the significant positive impact that the film industry has on the local economy,and support efforts to attract and service productions to the best of their ability." I � FOR GENERAL MEMBERS Offer corporate, business and individual memberships at various contribution levels. List them in a separate section of the website. 3 EXAMPLE OF WHAT SUPPORT SERVICES MEMBERSHIP OPPORTUNITIES MIGHT LOOK LIKE: 1. LEVEL ONE MEMBERSHIP (HOME PAGE PLUS PACKAGE-$2,250/Year) Includes: Logo Link or Banner Display on Home Page Listing with 'Wilmington Loves Film' designation in Support Services Section The ability to attach a PDF to the listing that could highlight provide more information on the business (Listing includes company name, contact person, address, phone, email, website address and link to your website) Only 12 Logo Links and 8 Rotating Banner Displays Available 2. LEVEL TWO MEMBERSHIP (ENHANCED LISTING PACKAGE -$795/Year) Includes: Listing with 'Wilmington Loves Film' designation in Support Services Section The ability to attach a PDF to the listing that could highlight provide more information on the business (Listing includes company name, contact person, address, phone, email,website address and link to your website) 3. LEVEL THREE MEMBERSHIP (LISTING -$400/Year) Includes: Listing in your chosen category of the Support Services section,which includes company name, contact person,address, phone, email, website address and link to your website EXAMPLES OF WHAT GENERAL MEMBERSHIP OPPORTUNITIES MIGHT LOOK LIKE: Corporate Level $1,000/Year Business Level $500/Year Individual $100/Year • MEMBERSHIP PROJECTIONS: SUPPORT SERVICES MEMBERS LEVEL ONE- HOME PAGE PLUS The supporters that currently have tabs or multiple full pages would be good candidates for this package. There are currently 9 of these. If you count supporters that wanted a tab but didn't get the one they wanted, and bought a full page instead,that adds 3 more,for a total of 12. In addition,there are at least 8 supporters who, now that they don't have the option for a full page ad, should be persuaded to trade-up to this level of exposure and support. There are 12 logo links and 8 banner opportunities available, which I believe can be sold the first year. (note:there are 2 banners which can accommodate 4 ads each in rotation) 20 x$2,500= $50,000 LEVEL TWO- ENHANCED LISTING Other supporterss who currently have full pages or 1/2 pages could be good candidates for this level. There are approximately 45 of these. 45 x$795=$35,775 LEVEL THREE- LISTING The supporters who currently have 1/4 pages or listings could be good candidates for this level. There are approximately 60 of these. 60 x$400= $21,000 As with any projection, this is a rough estimate. There will be supporters who won't renew, and new businesses that come on board. Some categories will shrink, and some will grow. 1 That being said, a revenue goal of$106,775 can be projected. It should be noted that reaching this goal will involve an intensive education effort, on a supporter-by- ! supporter basis, on why the switch to completely online is being made, how it will work, and how it will benefit them. 1 GENERAL MEMBERSHIPS Projecting revenue here is difficult, as general memberships will be a new offering. The following are rough estimates based on an understanding of the companies and individuals that ought to become members. Corporate level Members: 10 at$1,000 each 10 x$1,000= $10,000 Business Level Members: 15 at$500 each 15 x$500=$7,500 Individual Level Memberships: 50 at$100 each 50 x$100=$5,000 This leaves us with a projected goal of$22,500 SUMMARY OF REVENUE: Based on the above projections, a full-force effort could potentially yield gross revenue of $129,275 { EXPENSES: There will be expense involved in changes to the website to accommodate the logo links and banner displays on the home page. A safe estimate is$2,000. A larger expense could have been the changes to the support services section of the website, but the Film Commission has negotiated this work to be done for free by the vendor. An additional expense will be the design and development of the sales materials necessary for the membership drive effort, including support services memberships and general memberships. A safe estimate is$5,000. The other expense would be the commissions paid to the membership coordinator. If we estimate a 30%commission on the support services memberships of$106,775,the commission would be $32,032. Commission on general memberships should be less, at 10%, as they will require less effort, and are a donation to the organization rather than a direct benefit to the member. Further, commission should be paid only on general memberships directly solicited and executed by the membership coordinator. If half of the general membership revenue generated falls into this category,then commission of$1,125 can be estimated. a _ WRFC PROFIT: Given the above rough estimates and projections, this would leave a net profit of$89,118. CASH FLOW: Expenses for website changes and sales material development would occur in March/April. Although the membership awareness campaign would begin in April, most collections will not occur until November and December, although we will have signed membership forms for all membership commitments ahead of time. Commissions would be paid as collections aggregated. The difficulty here is that the recruitment/education effort would likely need to begin almost immediately, and be ongoing through December. One solution might be to front a portion of the commissions to be earned throughout the year. $2,500 a month,starting in March, and going through the beginning of collections, in November,would mean $22,500. We will be able to gauge the success of what the overall effort will be pretty quickly, and could adjust any agreement on the fronting of commission accordingly. In an effort to support the membership drive by keeping WRFC in the news, I will gladly write and distribute press releases throughout the year on varying topics at the commission's direction at no charge. TIMELINE: (based on approval of plan by 3/31) Support Services Membership material developed and produced 4/15 Membership forms developed and produced 4/15 News release developed and sent 4/15 � 3 Meetings with key media personnel 4/15 Membership drive begins 4/15 Develop and produce General Membership recruitment materials 4/30 Talk to and or meet with all 2012 tab, full page and%2 page supporters 4/15—5/30 Develop list of General Membership prospects 4/30 ) Email all previous supporters 4/15—4/30 I f }: f p Call and or meet with General Membership prospects 4/30—5/30 Develop new Support Services Membership prospect list 5/30 Call and or meet with all 2012% page and listing supporters 5/30—7/15 Contact new Support Services prospects for meetings 5/30—7/15 Follow-up with General Membership pros ects 5/30—7/15 Develop second General Membership prospect list 7/15 Develop second new Support Services prospect list 7/17 ry Follow-up with all 2012 supporters contacted so far 7/15—9/1 Follow-up with new Support Services prospects list#1 7/15—9/1 Contact new Support Services prospect list#2 for meetings 7/15—9/1 Contact General Membership prospect list#2 for meetings 7/15—9/1 Lock down all 2012 supporters not yet committed 9/1-10/15 Follow-up with new Support Services prospect lists#1 and#2 9/1-10/15 Follow-up with General Membership prospect lists#1 and#2 9/1-10/15 Invoice all members 10/15 Gather any missing listing information, banner ad input or logos 10/15—11/30 News release announcing launch of new site 11/30 Collections 11/30—12/15 NOTE: Note that all efforts during 2012 will be geared towards obtaining members for the 2013 calendar year,with the official switch to becoming a membership-based organization occurring at the end of the year. It is significant to note that beginning in January of 2013, members can be added at any time, and revenue can be sought and collected on a monthly basis. This represents the final shift from the annual printed production guide cycle,to a rolling monthly annual membership basis for revenue. sY 1 i WILMINGTON REGIONAL FILM COMMISSION, INC. Proposed 2012 - 2013 Budget Annual Budget INCOME City of Wilmington-same as 08/09 w/no CPI inc. 109,869 New Hanover County-same as 08/09 w/no CPI inc. 109,585 Memberships 75,000 Interest Income 100 Transfer from Reserve 0 EXPENSES Salaries-NO INCREASE SINCE 08/09 127,500 Payroll Taxes-9%of gross wages 11,500 Car Rental Expense 5,000 I Retirement- 10%of gross wages 12,750 Insurance- Employee 16,000 Insurance-Auto 1,400 Insurance-Workman's Comp 1,200 Insurance- Liability 1,500 Membership Drive 27,500 Communication/Postage 3,500 Promotion/Travel/Conf. Part. 15,000 Copier Rental 2,500 Online Services 1,500 Equipment 500 Office Supplies 1,000 Rent 15,350 Marketing 15,000 Property/Liability Insurance 1,100 Location Scouting 4,654 Policy Board 2,000 Contingency 10,000 Accounting 4,000 Bank Fees 100 Income Taxes 0 Reel-Scout Lease 14,000 EXHIBIT ID ITEMS NEEDED FOR GROWTH 1 I FUNDED IN PROPOSED 2012/2013 BUDGET • Full time assistant-need$22,000-25,000 (covered in 2012/2013 budget) (salary,benefits,taxes) • Additional marketing funds-need$5,000- 10,000 ($7,000 covered in 2012/2013 budget) (sales trips,advertising/sponsorships,unique opportunities,scout expenses,gifts) • Additional promotion/travel/conference participation funds-need$5,000- 10,000 ($7,000 covered in 2012/2013 budget) (educational/promotional conferences,festivals,networking events) UNFUNDED • Part-time Location Scout-need$30,000-35,000 • Two computers (one for scout and one for intern) for working on pictures - need $3,000 (can purchase one now with current year fund balance or reserves) • Legislative advocacy-(participate in ongoing lobbying efforts)need$10,000-20,000 • Additional marketing- (host receptions in L.A., host executives in the region for FAM tours) -need$10,000-20,000 EXHIBIT