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Home My WebLink AboutTDA Board Meeting May 27 2020 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS May 27, 2020 PRESENT: LeAnn Pierce – Mayor – Town of Carolina Beach Jason Bryant – Vacation Rental Properties Anne Brodsky, KB Hotel/Motel Nicole Jones, Hotel Manager/Owner – (150- rooms) Natalie English, Wilmington Chamber of Commerce Kim Hufham, President/CEO – NHC TDA Patricia Kusek – NHC Board of Commissioners Daniel Perkins, ILM Hotel Manager/Owner – (150+ rooms) Angela Rhodes, County Restaurant Bill Saffo, Mayor – City of Wilmington Lisa Wurtzbacher – NHC CFO Tom Ullring, CB Hotel Manager EXCUSED: Darryl Mills – Mayor – Town of Wrightsville Beach Craig Bloszinsky, Mayor – Town of Kure Beach Christine Divoky, Attractions, Friends of Ft. Fisher STAFF: Kim Little, Administrative Services Manager/Recording Secretary Karla Thompson, Systems Administrator Shawn Braden, Executive VP Marketing John Sneed, VP Sales Connie Nelson, PR/Communications Director Linda Brothers, Financial Analyst, New Hanover County Chairman Daniel Perkins called the meeting of the New Hanover County Tourism Development Authority Board of Directors to order at 5:00 p.m. as a WebEx virtual meeting at the NHC TDA offices. ITEM #1 EXCUSED MEMBERS Chairman Daniel Perkins noted excused absence for Darryl Mills – Mayor – Town of Wrightsville Beach, Craig Bloszinsky, Mayor – Town of Kure Beach, Christine Divoky, Attractions, Friends of Ft. Fisher 1 ITEM #2 – APPROVAL OF BOARD MINUTES – January 29, 2020 \[Motion made by Tom Ullring, seconded by Jason Bryant, and unanimously approved to accept January 29, 2020 TDA Board minutes as presented.\] ITEM #3 – FINANCIALS/ROT REPORT & BUDGET AMENDMENTS –LISA WURTZBACHER NHCTDA Treasurer Lisa Wurtzbacher reported for July 1, 2019 – April 30, 2020. ROT revenues received to date 49% through March 2020. Expenditures are at 54% through April 2020. Individual ROT collections are noted in attached report as presented by Lisa.  Budget Amendment- BA#2020-005 in the amount of $448,000. o To decrease budgeted revenues and budgeted expenditures that were reduced due to lower collections associated with the COVID-19 pandemic. Fund Balance is being utilized to offset the decrease of revenues not covered by budget cuts. o In the amount of $20,000 to utilize the District U Fund balance to cover expenditures made for District U due to the reduced collections associated with the COVID- 19 pandemic.  Budget Amendment- BA#2020-006- to correct past retirement contributions dating to when the NHC Tourism Development Authority was created in 2003. All eligible employees have been corrected according to SEP guidelines. \[Motion made by Craig Bloszinsky, seconded by Darryl Mills and unanimously carried to approve Budget Amendments BA#2020-005 & BA#2020- 006 as presented.\] ITEM #4 FUNDING REQUESTS- KIM HUFHAM President/CEO Kim Hufham presented funding requests from the Towns of Kure Beach and Wrightsville Beach 2 KURE BEACH:  The Town of Kure Beach respectfully requests funding for expenditures for lifeguard services for the summer of 2019. The requested funds include expenditures for two budget years 2018-2019 and 2019-2020. The expenses to be reimbursed are calculated as follows: Total Lifeguard expenses incurred FY 2017/2018 $212,364.53 Less Lifeguard expenses included on 1/22/18 TDA request $ 93,095.31 FY 2017/2018 Remaining to be Reimbursed $119,263.22 FY 2018/2019 Lifeguard Expenses Incurred from 7/1/18-12/31/18 $ 118,119.77 Amount of this request $237,388.99 This program is directly related to tourism to protect vacationers and visitors as they swim and enjoy the beach strand in the incorporated Town limited of Kure Beach. Visitors are attracted to beaches that offer lifeguard services, particularly those with young children and older adults. The Kure Beach Lifeguard Program budget indicates amounts previously received and the amount of this request. (2006.)  The Town of Kure Beach respectfully requests funds for expenditures that were incurred for the Pleasure Island Chamber of Commerce Free Summer Concerts held during the Summer of 2019 (FY 2019/2020). The six free summer concerts, held at the Fort Fisher Military Recreation area, attract tourists to Kure Beach by providing an enjoyable and affordable venue. (2006.) The Town of Kure Beach respectfully requests funding for expenditures that were incurred for entertainment provided at the Ocean Front Park during the summer and fall of 2019. The entertainment included concerts, story time, the Kure Beach Market and other family-oriented activities. These events attract tourists to Kure Beach by providing enjoyable and affordable entertainment. Expenditures were as follows: (2013.) Concerts: $13,000.00 Family Activities: $ 5,550.00 Kure Beach Market: $ 5,615.00 Amount of Request $24,615.00 3  The Town of Kure Beach respectfully requests funding for expenditures that were incurred for the 2018 Kure Beach Fantasy Christmas Show. The Show, coordinated by the Kure Beach Volunteer Fire Department, consisted of three performances on the evenings of December 13 to 15, 2019. The annual event provides family entertainment for tourists visiting Kure Beach and includes singing, dancing and holiday-related stories. FY 2019/2020 expenditures total $5,587.81. (2008.)  The Town of Kure Beach respectfully requests funding for expenditures that were incurred for the Annual Kure Beach Street Festival held on April 27, 2019. This event attracts tourists to Kure Beach by providing enjoyable activities and entertainment. The expenditures were as follows: Entertainment $3,520.00 Supplies, Food Etc. $ 508.24 Amount of This Request $4,028.24 Total funds are available in the amount of $271,170.04. WRIGHTSVILLE BEACH: The Wrightsville Beach Board of Alderman respectfully request TDA funding in the amount of $350,000 to assist in the completion of the Salisbury Street Ocean Access project. The Town of Wrightsville Beach is known for the Salisbury Street Ocean iconic ocean views, with one of the largest parking areas on the eastern North Carolina oceanfront. This area has approximately 00 parking spots, and is frequented by residents and visitors, alike. The Salisbury Street Ocean Access project will provide an enhanced aesthetic view when traveling to the beach destination. The project will provide new restroom facilities/pavilion, extended sidewalks, and improved greenery for a greater visitor experience. This area will be enhanced for the thousands of visitors that use this beach access and facility for recreation. The Salisbury Street Ocean Access project has been a joint partnership of private donation, TDA, New Hanover County, the Division of Coastal Management, and the Town of Wrightsville Beach contributing to the venture. Total funds are available in the amount of $350,000. 4 \[Motion made by Tom Ullring, seconded by Jason Bryant, and unanimously approved to accept the Funding requests for Kure Beach and Wrightsville Beach as presented.\] ITEM #5 – PERSONNEL POLICY REVISIONS – KIM HUFHAM  Furlough Policy- Resolution to be added to the Personnel Handbook. In accordance, with the North Carolina School of Government advisement. \[Motion made by Tom Ullring and seconded by Natalie English to pass the Furlough Policy Resolution. As presented, it passed unanimously. See resolution in Exhibit Book XIIII\]  Revised Personnel Handbook- to be approved at the August NHC TDA Board Meeting. ITEM#6 – 2020/21 BUDGET PRESENTATION- Kim Hufham  Revenue Projections - Down 33.92%  Overall Expenses cut by 27%  Fund Balance Request of $ 212,058 o $111,167 – Research (Phase 2) o $ 37,500 – Website o $ 63,391 – Budget Shortfall Significant Budget Cuts:  Staffing: Elimination of 3 full-time positions o Director of Marketing o Marketing Manager o Director of Sports Development o Part-time Staff (VIC) – CB/KB/WB staff cut for FY 20/21  Only Riverfront Booth funded  CVB offices/VIC to be staffed as needed by FT statt  SEP Retirement: o Retirement to be transitioned to Simple IRA (3% CVB match) o Recommending 2% Benefits adjustment increase to staff to partially off- set reduction from 10%  Travel/Trade Shows: o Group Sales – 1 show (AENC) (in-state planners) o PR – Cut all shows – will utilize memberships to contact writers, etc. 5  Fixed Costs: o Budget first to cover operations – no flexibility  Marketing: o Agency fees cut by 16.8% o Unified Campaign with beaches – cost savings for all budgets o Larger reach as one campaign & pooling funds  Advertising o Cut by 33% A copy of the FY 2020/2021 NHC TDA Budget is in Exhibit Book XIIII \[There being no further discussion on the FY 2020/2021 NHC TDA Budget, Tom Ullring moved that the FY 2020/2021 Budget in the amount of $5,331,990 be recommended for adoption. Motion was by Anne Brodsky and seconded by Pat Kuesk and carried unanimously. A copy of the proposed budget is attached for record. The formal budget adoption and Public Hearing is set for June 17, 2020 at 5:00 pm.\] ITEM#7 – UNIFIED CAMPAIGN PRESENTATION- Kim Hufham and Kimberly Vince Cruz, Destinations Analysts. \[A copy of the power point presentation can be found in the Exhibit Book XIIII\] ITEM #8– PRESIDENT’S COMMENTS – KIM HUFHAM None presented ITEM #9 – CHAIRMAN’S COMMENTS – DANIEL PERKINS None presented ITEM #8- OLD BUSINESS/NEW BUSINESS Additional information located in Exhibit Book XIII. ADJOURNMENT There being no further business to come before the NHDTDA Board of Directors, Motion to adjourn at 6:30 pm made by Jason Bryant. Motion was seconded by Anne Brodsky and carried unanimously. Next meeting – Public Hearing & Budget Adoption – June 10, 2020 at the New Hanover County Government Center. 6 ______________________________ __________________________ Kim Hufham, President/CEO Angela Rhodes, Secretary Minutes located in TDA Board Minutes Book XIIII 7