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HomeMy WebLinkAboutCH-OCVB minutes 081810Minutes Chapel Hill/Orange County Visitors Bureau Board August 18, 2010 The Chapel Hill/Orange County Visitor’s Bureau Board met at Durham Tech, Orange County Campus, Room 105 Board Members Present: Bob Ward, Jim Ward, Dave Gephart, Lydia Lavelle, Jim Norton, Mike Gering, Lee Pavao, Dwight Bassett, Jim Parker, Greg Overbeck Members Absent: Barry Jacobs, Valerie Foushee, Laura Morgan, Anthony Carey, Rick Strunk and James Harris Staff Present: Laurie Paolicelli, Willie Best, Linda Ekeland and Tina Fuller Staff Absent: Brad Broadwell Advertising Agency Reps: Bruce Wlach and Dewey Mooring Special Guest(s): Orange County Arts Commission board members: Robert Kintz, Chair Leah Rade, Vice Chair and Gordon Jameson CALL TO ORDER Chair Gephart called the meeting to order at 8:05 a.m. APPROVAL OF MINUTES Dave Gephart requested a motion to approve the June 18, 2010 minutes. Jim Ward so moved with Bob Ward seconding the motion. With all members in favor, the June 18th minutes were approved as submitted. INTRO AND WELCOME Chair Gephart welcomed everyone back from the summer hiatus. Chair Gephart welcomed members from the Orange County Arts Commission board of directors and asked for introductions, in which all obliged. COMMITTEE REPORTS Budget & Finance The floor was given to Finance Chair Bob Ward for the monthly financial reports. Mr. Ward reported that the Orange County Tax Administration Department collected all occupancy tax arrears, from one hotel, for the fiscal year 2009-2010. The amounts were collected in two lump sums thus affecting the reporting of several months by inflating the percentage with last year’s comparison. However June’s collection is norm and up from last June. With regard to the final budget of 2009-10, Ward discussed the overages on Salaries and Credit Card acceptance accounts explaining that departments were told to budget salaries at less than 100% to accommodate any employee turnover. For the credit card acceptance account, the card machine vendor required a mandatory compliance assessment, which carried a fee that was not originally budgeted. With that, Mr. Ward then questioned Willie Best, Asst. County Manager, if other departments had to pay rent and an administrative fee to the County. Mr. Best replied, to the best of his knowledge, the rent and fee is the product of the Visitors Bureau’s status as a partially independent agency, given by the BOCC about 8 years ago. Lee Pavao confirmed that the fee did start about 8 years ago. Mr. Best stated he would find out and report back. Ward continued reporting that overall, the budget ended with a revenue surplus of $58,276. Ward then questioned if that revenue surplus would go back to the Visitors Bureau or would it be added to the VB’s fund balance that was given to the EDC’s small business loan program. Mr. Best replied that the County Manager was looking at all departments with a fund balance and pulling those funds to balance the budget as well as fund other departments in need. Bob Ward questioned whether other departments had as much in their fund balances as did the Visitors Bureau. Discussion ensued with Ms. Paolicelli giving the example of the need for emergency funds. Jim Ward agreed that having a fund balance is a smart way to do business and Mike Gering, also agreeing, commented that their should be a policy dictating that occupancy taxes be used only for tourism . Lee Pavao commented that it is loose legislation. Paolicelli then gave the Arts Commission board members a brief history of the occupancy legislation. Paolicelli then made the comment that with all the new hotels going up around us in surrounding counties, it is getting harder and harder to fill our lodging facilities that are older and have exterior corridors. She stated that we [the county] are not in good shape and for 2009 show poor statistics. Ward continuing, reported on the 2010-2011 budget, stating that with the 15% cut required by the Commissioners, revenue was budgeted for less than last year and again questioned what would happen to any excess revenue if made. On the expense side, huge cuts were made in advertising, strategic alliances, and research; eliminating the third year of Touch Downtown (the third year is usually the point of success); eliminating research needed for a Hillsborough hotel assessment and UNC Alumni visitor assessment. Discussion turned to Arts Commission Director Martha Shannon on how the state and local Arts Grants work. Ms. Shannon explained that monies from the State are (in recent years) given twice yearly; the first half of the fiscal year and the second half of the fiscal year, however the grants are issued to recipients in advance and therefore budgeted funds by the department would be used in advance. Shannon noted that the State could change the amount of the grant and reimbursement dates with each budget year so the Arts Commission generally budgets for less than anticipated. Bob Ward noted that the Arts Commission was not subject to the 15% cut (nor EDC) as was all the other county departments. Paolicelli noted that for budget purposes, the $35,000 for grants would be taken from the remaining VB fund balance until the State sends full reimbursement. Bob Ward reiterated on the question of usage for the $58,276 surplus in revenue. Willie Best again stated he would check and report back. Jim Norton commented that it is the economy that is hurting visitors and hotel guest occupancy, noting the 5% downtown retail vacancy rate. Ms. Paolicelli commented that there is nothing wrong with Chapel Hill only that surrounding towns are increasing expenditures and relaying the message ‘don’t go to [Chapel Hill], there are things to do right here’. Paolicelli also commented that there is a management company in Raleigh that uses Orange County leads for their properties in Durham and Wake counties. On another note, Bob Ward motioned to have Mike Gering fulfill his position as Finance Chair beginning with the September 15th meeting. Mike Gering accepted. Jim Ward seconded and with all members in favor, the motion was passed. Discussion continued on the fund balance issue. Jim Ward commented that it is the County Manager that looks like the bad guy but it is the Commissioners that make the final decisions. Ward suggested making it a high priority to speak with the Commissioners and if they are not on board, then speak out publicly to find out the communities priorities. In conclusion of the financial reporting, Dave Gephart pointed out that the commissioners on our board try to attend our meetings however it is difficult after their Tuesday late night meetings. Lydia Lavelle suggested having meetings on another day. Laurie Paolicelli replied she would keep that in thought. The floor was then given to Paolicelli for the marketing report in the absence of Rick Strunk. Marketing Report Ms. Paolicelli gave a quick overview of the Visitors Bureau origins to the Arts Commission board members and pointed out that only 5 years ago the Town of Chapel Hill contributions were $67,000 and thanks to the advocacy and efforts of Lee Pavao and Jim Ward are now up to $150,000 and with that Laurie gave the floor to Bruce Wlach, of Jennings & Co. With a PowerPoint presentation, Mr. Wlach reviewed the past years marketing Plan results: website updates, meeting planner page update, new banners, e-music letter and social media happenings. Dewey Mooring took over with a proposed plan for 2010-2011 budget year. Mr. Mooring explained to members that with the 25% cut in advertising, they would concentrate on the most effective of ads this budget year. He also explained that the summer and some early fall ads have already been paid out of last budget year including the GoDuke.com web ad. Discussion between Jennings and the VB added a Fayetteville blitz for the troops coming home but that would mean dropping the meeting ads and is probably unlikely. Delivery test on trip advisor v. ad stack? Dave Gephart pointed out that he did not see anything for Ladies Night Out. Mr. Mooring replied that it might come out of a different part of the budget not necessarily media but the promotional end. Continuing, Mooring discussed phone apps and how they felt it important to explore. He proposed producing a mobile friendly version that would pull straight from the website content. Concluding the presentation, Dewey proposed to reduce AAA online ads, Alumni advertising and cancel athletic advertising to keep within budget. He also stated they would get back to the Visitors Bureau on the results of the GoDuke.com ad. NEW BUSINESS Chair Gephart gave the floor to Arts Commission Director, Martha Shannon. Ms. Shannon gave handouts to board members showing the Commission’s services, programs and upcoming projects. Ms. Shannon informed members that the Commission was created February 4, 1985 and 2010 marks the 25th anniversary. It was created as a non-partisan agency. Shannon explained the grant process, State and local. She also informed that this year the Commission would provide funding for a North Carolina Arts Study, which would study the economic impact made by the arts and cultural sectors of North Carolina. The study will begin early 2011. With that, Chair Gephart informed Ms. Shannon and the Arts Commission board members that there are plans to add a new seat to the VB board for the representation of the Arts Commission and if they could start thinking about whom they would like to appoint. In regard to the open North Carolina Lodging Assoc. seat on the Visitors Bureau board, Bob Ward motioned to have Mark Sherburne, new General Manager at the Aloft, fill the open NCLA seat. Laurie Paolicelli commented that she felt the BOCC would be more open to having someone from another hotel (other than the Carolina Inn because of their tax exemption status) represent the seat. Mike Gering questioned whether anyone else was interested in filling the seat just to be fair in the appointment. To this Paolicelli and Gephart explained that they felt it needed to be a General Manager due to the nature of business discussed at the board meetings and they must reside in Orange County. Paolicelli informed that no other General Managers from Orange County hotels reside in the County with the exception of Anjan Desai from the Holiday Inn Express in Hillsborough. When asked however, Mr. Desai declined due to the time restraints in running his hotel. With no other comment, Chair Gephart asked if all board members were in favor to which all replied yes and Mark Sherburne was voted in to fill the second NCLA seat. In more new business, Linda Ekeland informed the board that the hotels are reporting a strong summer but are leery of the upcoming last qtr of 2010 and 1st qtr of 2011. She also gave news of BCBS’s plans to close their Chapel Hill based meeting department resulting in a significant loss of local meetings here. OLD BUSINESS No old business to report OTHER BUSINESS For Bob Ward’s last meeting as a board member representing Economic Development, Executive Director Laurie Paolicelli presented Mr. Ward with a proclamation for his 5 years of service to the Visitor Bureau. Ward thanked everyone and commented that he is and all others should be proud of the Visitors Bureau for their achievements, especially recently in their ability to absorb one county department and give financial support to another. Gephart commented that he has known Bob Ward for over 20 years and that Bob has been his mentor on this board. ADJOURNMENT With no further business to discuss, Dave Gephart requested a motion to adjourn the meeting. So moved by Jim Parker and seconded by Jim Ward. With all members in favor, the meeting was adjourned at 9:40 am. _______________________________ _________________________________ Mi nutes Drafted by: Minutes Accepted by: Laurie Paolicelli, Executive Director Dave Gephart, Chair ________________________________ _________________________________ Date Date