TDA 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.
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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
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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.
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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.
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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.
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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
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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.”
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(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.
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Kim noted that our June 20 TDA Board meeting will be held at the Hilton
Wilmington Riverside.
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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
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