2022-08-22 - Agendas - FinalFayetteville Advertising and
Promotion Commission
August 22, 2022
Location: Fayetteville Town Center, 15 W. Mountain Street
Commissioners: Todd Martin, Chair, Tourism & Hospitality Representative
Katherine Kinney, Tourism & Hospitality Representative
Chrissy Sanderson, Tourism & Hospitality Representative
Elvis Moya, Tourism & Hospitality Representative
Andrew Prysby, Commissioner at -large
Sarah Bunch, City Council Representative
Mark Kinion, City Council Representative
Staff: Molly Rawn, CEO
Agenda
Call to order at 2:00 p.m.
Old Business
A. Review and approval of July 2022 minutes.
III. New Business
A. CEO Report, Molly Rawn. An executive overview of the previous month's activity,
issues and opportunities facing the organization.
B. Financial Report, Molly Rawn, CEO
C. Marketing Report:
i. Molly Rawn, CEO
ii. Mike Sells, Sells Agency
D. Vote. Office lease for Fayetteville Town Center staff. Authorizing the CEO to begin
lease negotiations with the Fayetteville Chamber of Commerce for office space. Memo
attached.
E. Vote. Parking Gate Equipment for Fayetteville Town Center parking deck. Staff
recommends approving a quote for $35, 459 from IPS Group for equipment, installation
and software. Memo attached.
F. Discussion. Fayetteville Town Center's participation in the city of Fayetteville's
Energy Savings Performance Contract with Johnson Controls Inc. More information
will be made available when received from city staff.
G. Additions to the agenda may be added upon request from a majority of the
commissioners
IV. Adjourn
Fayetteville Advertising and Promotion Commission
Minutes July 25, 2022
Fayetteville Town Center
Commissioners Todd Martin, Chair, Tourism & Hospitality Representative
Present: Elvis Moya, Tourism & Hospitality Representative
Chrissy Sanderson, Tourism & Hospitality Representative
Andrew Prysby, Commissioner at -large
Sarah Bunch, City Council Representative
Mark Kinion, City Council Representative
Commissioners
Absent: Katherine Kinney
Staff: Molly Rawn, CEO; Jennifer Walker, Vice President of Finance;
Hazel Hernandez, Vice President of Marketing and Communications
Chair Martin called the meeting to order at 2:02 pm.
Old Business
A. Chair Martin asked commissioners to review the June minutes and asked if there
were any additions or revisions. Hearing no additions or revisions, he stated that
the minutes stood approved as presented and Commissioner Sanderson moved to
approve them with Commissioner Prysby giving a second.
III. New Business
A. CEO Report. An executive overview of the previous month's activity, issues and
opportunities facing the organization. Complete memo attached.
In August, we will be issuing a couple of Request for Proposals, one for our IT
provider and one for our Advertising Agency of Record. We will also unveil our
process for distributing tourism incentives. We will also in this next quarter, be
hearing an update from Theatre Squared.
Rawn highlighted the motorcycling promotional work EF Sales is doing to promote
motorcycling in our area with the numerous trails and gravel road rides.
Destinations International conference was in Toronto last week and three team
members attended: Molly Rawn, Tina Archer -Cope and Hazel Hernandez.
We are doing some finishing work on Vanny such as wrapping tables and games.
Marketing is also attending the Hog Walk Symposium this week to learn more
about this option to see if there are potential influencer marketing opportunities for
EF.
We are excited for Fayetteville to host another UCI Cyclo-cross World Cup this
October and will be partnering with Arkansas Children's Hospital as the charity to
benefit.
The June First Thursday was well executed and well received with an attendance
of approximately 1,500, even with the high temperatures and the Gulley Park
concert. Rawn stated that that we've had a conversation with the city's Parks and
Recreation office to discuss future years scheduling to perhaps avoid a Gulley
Park concert on the night of a First Thursday event.
Also, Chloe Bell is working on Lights of the Ozarks elements; we'll be hearing
more about that soon and we will be hosting Dog Daze, our most popular First
Thursday theme, next week.
The Fayetteville Town Center has hosted 10 events since our last meeting. They
continue to work closely with Food Loops on waste diversion goals and will be
implementing a new score card for events. By including this practice, it will help
highlight the sustainability organizers can achieve when booking their event with
the town center. The town center team also reported good results from the
Christmas in July promotion of 22% off a holiday party rental.
HMR and Lodging.
Our occupancy rate in June was 75%, which is 13% higher than June of 2021.
Year to date we see an occupancy rate of 63%, which is 15% higher than last
year. We are also seeing our ADR, Average Daily Rate, increase. We are seeing
a 17% increase in lodging collections from last month and a 67% increase in
lodging collections compared to last year.
June restaurant collections were down compared to May's, but if you'll recall, May
collections are April activities which included the Pro Cup cycling event, Garth
Brooks concert and other activities. Year to date, we've had a 19% increase in
HMR tax collections over the same period in 2021.
Commissioner Martin asked how we marketed First Thursday. Hernandez
responded that we created a Facebook event and several other advertising items,
including some bilingual advertising. A discussion of advertising options for First
Thursday occurred with ideas such as a text reminder system or a partnership
with an organization such as TheaterSquared or the Library where we could have
a reminder in their communications.
B. Financial Report. Jennifer Walker, Vice President of Finance
June financial statements are included in the commission packet and they show
revenue projections are 50% and we are ahead with 54% in actual revenue and
expense projections at 50% and we are currently at 42% actual expenses.
These financial statements reflect the revised budget that the commission approved
during June's meeting.
Our net operating income at the end of June was $545,983. The balance sheet
shows cash and investments totals of approximately $4.6 million and the town
center's unearned revenue is $147,000, reflecting upcoming events at the town
center.
C. Marketing Report. Hazel Hernandez, Vice President of Marketing and
Communications
We've officially rolled out our new branding campaign, "Authentic Fayetteville,"
showing a very high energy campaign. Hernandez showed two commercials
featuring Coach Nolan Richardson as the voice over talent and bilingual media.
Our social media continues to grow with our page reach on Facebook up 600%,
with First Thursday and Pride being the main drivers of that reach.
Hernandez also shared Buxton data on Pride Weekend, showing us peak times for
attendance, household characteristics and age demographics.
Mike Sells began his presentation by stating that our DMO marketing team was the
most outstanding DMO marketing team in the state. He gave a review of our new
campaign launch which has been received very well with two weeks of data.
He also shared Longwoods travel sentiment survey which shared that rising gas
prices is the largest factor impacting travel plans. He also pointed out that other
factors related to expenses are beginning to factor into trip planning.
Chair Martin asked if we could have the new commercials in a downloadable
format so establishments could loop them. Commissioner Prysby also
recommended that we include "Voice of Coach Richardson" both as text in the
commercial and the YouTube videos.
E. Presentation of the 2021 Audit
Cynthia Burns with FORVIS, LLP gave an overview of the audit, starting with the
management letter which stated that we do our bookkeeping on the regulatory basis
of accounting which is allowed by Arkansas state law. The letter has two opinions
issued in it. It has an Unmodified Opinion on regulatory basis of accounting which
she stated is the best opinion an organization can get and an adverse opinion on
GAAP as we do not follow GAAP accounting procedures.
In the management letter she pointed out that it is the A&P's management's
responsibility to evaluate if there are any conditions or events that would raise any
concerns and that it is the auditor's responsibility to also identify if there are any
conditions or events that show a concern and she reported that neither party found
any issues.
In discussing the report on Internal Control, the document included at the end of the
audit report, she stated that it was also an Unmodified Opinion and there were no
material weaknesses or significant deficiencies to report.
The rest of the report is consistent with the prior year's audit report. The only note
Burns wanted to point out is Note 7 which is the Paycheck Protection Program, (PPP)
Loan which the commission had not had before.
On the second page of the management letter, Burns pointed out there were no audit
adjustments to be recommended, no disagreements or difficulties encountered with
performing the audit and no significant issues discussed with management.
With no questions, Jennifer Walker stated that she appreciated working with Forvis
this year. It was clarified that the audit did not need a vote to be accepted.
F. With no further agenda items, Chair Martin called for a motion to adjourn the
meeting. Commissioner Kinion made the motion with Commissioner Sanderson
seconding it and the meeting was adjourned at 3 pm.
Minutes submitted by Amy Stockton, Director of Operations, Experience
Fayetteville
I Vrd I rill I I I Monthly A&P Tax Collections 2022**
0
•
$62,69U + S359,U48
Lodging Restaurant
$26,Y46b
Prior Dues Collected
Total HMR Collected
wious YTD (Jan -July) HIVIR A&P Tax Collection Totals
?018 2019 2020 2021 2022
.......................................................................................
6210411191 $21127,076 $1,688,304 $2,182,175 S29576997E
3.97% 4.21% -20-63% 29.25% 18-09%
% change over previous year
jan
S
I
S
apr
may
S
jul
aug I
sep
oct I
S
I
dec
S3969004
S4099478
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
o o 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
C� o C�
LO CO 00 M O N M � Ln QO I_ 00
M CD N CO � LSD C0 I- 00 M 0 CN
l �
N N N N N N N N N
N CO CM C'7 CO CO CO CM C'7 CO CO �t
This represents one half of the total HMR collections.
The other half supports the Parks and Recreation department.
34.04% 28.38%
-0.15%-17.18%
35.69% 42.55%
7.91% 14.90%
24.93% 31.20%
13.80% 25.00%
11.02% 21.17%
change
% change
from
from
2021
2019
Memo P l[AY�
To: Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Experience Fayetteville
Date: August 10, 2022
Re: Financial Statements — July 2022
This packet contains Experience Fayetteville Financial Statements for the month ended
July 31, 2022. The following reports are included in the packet:
• Summary P&L Financials for month ended July 31, 2022
• Balance Sheet for month ended July 31, 2022
Target Budget July — 58%
• Revenue target 58% of budget or higher by the end of July 2022.
Expenditures target 58% or lower at July 2022.
Total Revenue YTD: $3,031,543 or 63%; We are 5% ahead of target.
Tax Receipts - $2,576,978 (over budget by 4% ytd)
Town Center - $211,748 (under budget by 4% ytd)
Other - $242,817
Total Operating Expenditure YTD: $2,576,332 or 53%; this is 5% under budget.
EF Main - $2,144,938
Town Center - $431,394
HMR tax — YTD July Collections (June activity) were above seasonally adjusted budget
expectations by 8%.
Operating Net Income is $455,211 year to date.
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ July 31, 2022
CONSOLIDATED
Year -to -Date
Actual
Budget
over/(Under)
Budget
% of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
2,576,978
4,154,500
(1,577,522)
62.0%
Rental Revenue
191,373
346,000
(154,627)
55.3%
Event Revenue
22,011
40,700
(18,689)
54.1%
Visitor Center Store Revenue
45,072
51,200
(6,128)
88.0%
Parking Revenue
17,795
33,000
(15,205)
53.9%
Advertising Revenue
1,525
3,000
(1,475)
50.8%
Grant/Other Revenue
171,725
182,255
(10,530)
94.2%
Interest and Investment Revenue
5,064
8,250
(3,186)
61.4%
Total Revenue
3,031,543
4,818,905
(1,787,362)
62.9%
Expenses
Operating Expenses
Rental Expenses
24,975
88,500
(63,525)
28.2%
Event Expenses
34,126
79,450
(45,324)
43.0%
Visitor Center & Museum Store
39,059
48,200
(9,141)
81.0%
Downtown Initiative
1,406
100,000
(98,594)
1.4%
Personnel
842,718
1,616,044
(773,326)
52.1%
Sales & Marketing
726,355
1,134,553
(408,198)
64.0%
Office and Administrative
376,471
707,773
(331,302)
53.2%
Bond Payments
409,255
707,000
(297,745)
57.9%
Contribution to Capital Reserves
100,000
100,000
100.0%
Other grants
21,968
39,815
(17,847)
55.2%
TheatreSquared Contribution
-
200,000
(200,000)
0.0%
Total Operating Expenses
2,576,332
4,821,335
(2,245,003)
53.4%
Net Operating Income/(Loss)
455,211
(2,430)
457,641
0.0%
Other Income
Unrealized Gain/(Loss) on Investments
(32,780)
0.0%
Other Expenses
FFE & Improvements
281,391
595,000
(313,609)
47.3%
Depreciation Expense
77,859
0.0%
Cost of Goods Sold
(5,779)
0.0%
Net Income/(Loss) (without cx Grants)
68,959
(597,430)
699,170
-11.5%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ July 31, 2022
Experience Fayetteville
Year -to -Date
Actual
Budget
Over/(Under)
Budget
%of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue
2,576,978
4,154,500
(1,577,522)
62.0%
Rental and Event Revenue
19,512
37,700
(18,188)
51.8%
Visitor Center Store Revenue
45,072
51,200
(6,128)
88.0%
Advertising Revenue
1,525
3,000
(1,475)
50.8%
Grant & Other Revenue
171,725
182,255
(10,530)
94.2%
Interest and Investment Revenue
4,983
8,000
(3,017)
62.3%
Total Revenue
2,819,795
4,436,655
(1,616,860)
63.6%
Expenses
Operating Expenses
Event Expenses
24,755
76,450
(51,695)
32.4%
Visitor Center & Museum Store
39,059
48,200
(9,141)
81.0%
Downtown Initiative
1,406
100,000
(98,594)
1.40
Personnel
602,534
1,134,973
(532,439)
53.1%
Sales & Marketing
722,180
1,118,553
(396,373)
64.6%
Office and Administrative
223,781
402,523
(178,742)
55.6%
Bond Payments
409,255
707,000
(297,745)
57.900
Contribution to Capital Reserve
100,000
100,000
100.0%
Other Grants
21,968
39,815
(17,847)
55.2%
TheatreSquared Contribution
-
200,000
(200,000)
0.0%
Total Operating Expenses
2,144,938
3,927,514
(1,782,576)
54.6%
Net Income/(Loss) Before Other Revenue and Expenses
674,857
509,141
165,716
132.5%
Other Income
Unrealized Gain/(Loss) on Investments
(32,780)
-
(32,780)
0.0%
Other Expenses
FFE & Improvements
122,860
90,000
32,860
136.5%
Depreciation Expense
43,944
Cost of Goods Sold
(5,779)
Net Income/(Loss)
481,052
419,141
94,692
114.8%
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year -to -Date @ July 31, 2022
Town Center
Year -to -Date
Actual
Budget
Over/(Under)
Budget
o of Budget
/
Revenue
Rental Revenue
191,373
346,000
(154,627)
55.3%
Event Revenue
2,499
3,000
(501)
83.3%
Parking Revenue
17,795
33,000
(15,205)
53.9%
Interest and Investment Revenue
82
250
(168)
32.7%
Total Revenue
211,748
382,250
(170,502)
55.4%
Expenses
Operating Expenses
Rental Expenses
24,975
88,500
(63,525)
28.2%
Event Expenses
9,371
3,000
6,371
312.4%
Personnel
240,184
481,071
(240,887)
49.9%
Sales & Marketing
4,175
16,000
(11,825)
26.1%
Office and Administrative
152,690
305,250
(152,560)
50.0%
Total Operating Expenses
431,394
893,821
(462,427)
48.3%
Net Income/(Loss) Before Other Revenue and Expenses
(219,646)
(511,571)
291,925
42.9%
Other Expenses
FFE & Improvements
158,532
505,000
(346,468)
68.6%
Depreciation Expense
33,916
Net Income/(Loss)
(412,093)
(1,016,571)
604,478
40.5%
Fayetteville A&P Commission
Balance Sheet
As of July 31, 2022
ASSETS
Current Assets
Cash
3,271,803
Investments
1,172,877
Accounts Receivable
418,391
Prepaid Expenses
31,280
Deposits
30,617
Visitors Guide Trade
2,877
Inventory Asset
23,089
Total Current Assets
4,950,933
Other Assets
Capital Assets
Furniture & Fixtures
96,641
Equipment
641,976
EF/CVB Building
940,410
EF/CVB Land
198,621
Building Additions
971,952
Walker -Stone House
1,167,218
Construction in Progress
27,109
Accumulated Depreciation
(1,444,293)
Total Other Assets
2,599,634
TOTAL ASSETS 7,550,567
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 107,253
Unearned Revenue 129,110
Total Liabilities 236,364
Equity
Unreserved Fund Balance
4,236,564
Operating Reserve
1,000,000
Capital Reserve
2,100,000
Temporarily Restricted Funds
439,895
Net Revenue
Gain/(Loss) on Investments
(32,780)
Net Revenue without Cyclocross
216,323
Net Revenue for Cyclocross
(645,798) (462,256)
Total Equity
7,314,203
TOTAL LIABILITIES AND EQUITY 7,550,567
AUGUST 2022 MARKETING REPORT
ARTCOURT OPENING
Sent out a press release
Opened August 19
Social media posts
Updated the EF website to
show the banner
PWY
FIRST THURSDAY
AY ad - AY is a state-wide magazine
Fayetteville Flyer ads
Vinyl sticker on EFVC
First Thursday related posts on
Experience Fayetteville, Fayetteville
Town Center, and Fayetteville Ale
Trail Instagram, Facebook, Twitter
Facebook event
Quarterly Tourism Newsletter
First Thursday reminder email -
one week out and day of
Article on EF website
Listed on EF event calendar
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PWY
ARKIE TRAVELS
Itinerary created
Highlighting the outdoors,
food and SOAR NWA
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THE CYCLO-CROSS WORLD
RETURNS TO ARKANSAS
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JOIN US TO WATCH, RACE, EAT, DRINK, SHOP AND EXPERIENCE.
ALL WHILE SUPPORTING A GREAT CAUSE.
OZCX Weekend will be a fantastically fun party for all. It all happens at the World
Championship venue, Fayetteville's Centennial Park, October 14-16.
The party will include multiple races and events: from one of only 14 UCI World Cup
races this season to OZkidsCX - A family friendly event for kids as young as two.
Other events throughout the three days will include:
Elite/Professional Racing
OZCX Community Street Sprints
USA Cycling Amateur CX Races
Walmart Corporate Team Relays
Ticket sales and registration fees support Arkansas Children's Northwest,
the local Children's Miracle Network Hospital.
CYCLO-CROSS
mu WORLD CUP
FAYETTEVILLE-ARKANSAS USA
BIKE AR OZCX AD
PfH11
ALE TRAIL WEBSITE (fayettevillealetrail.com)
YTD Sessions +27% YOY
A.R
TX.
IL
Channels
Direct
+36%
Organic Search -13%
.................................................................................
Paid Search
......................................
Referrals
......................................
Social
EXPFAY WEBSITE
July Sessions
+52,j
AR +2%
.........................
IL _ _ _ +1,v113%
.................................................................................
TX
_ +24%
OK ___
__ _ .....................
__ +29%
_
mo _ _
__ ..................
_ +93%
.................................................................................
CA
+154%
Channels
Organic Search +10%
..... .......................................................................
Social +466%
.................................................................................
Paid Search +25%
.................................................................................
Display +1,v415%
......... ...................................................
Direct+3%
Online Visitors Guide
FI.ip.book Views r44%
...... .....................................................................
Download PDF +41%
.................................................................................
Monthly Total
1,471
/FIRST=THURSDAY PAGE
Monday - Thursday Pageviews
July: 51
August: ^ 1,
• 40% increase MOM
• Fayetteville: •61%
Springdale: 154%
Bentonville: +24%
Rogers: +40%
Memo
To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission;
Fayetteville Advertising and Promotion Commissioners
From: Tyler Wilson, General Manager, Fayetteville Town Center
Date: August 15, 2022
Re: Fayetteville Town Center Intent to move offices
Background:
The Fayetteville Town Center staff leases office space at 5 West Mountain, outside of
the Town Center Venue. The current office lease expires April 30th of 2023. Current
rent is $2,000 per month.
We have an opportunity to terminate the lease early in a way that is mutually
beneficial to both the landlord and the A&P Commission. Doing so would require us to
have new office space beginning October 1.
Staff considered several options, including moving offices in to the Town Center. The
Chamber of Commerce building at 21 W Mountain Street has office space available
that would meet our needs.
Recommendation:
Staff recommends the commission authorize the CEO to pursue a lease agreement with
the Chamber of Commerce for office space with the lease agreement to be voted on at
the September commission meeting.
Memo
To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission;
Fayetteville Advertising and Promotion Commissioners
From: Tyler Wilson, General Manager, Fayetteville Town Center
Date: August 15, 2022
Re: Parking Gate Equipment at Fayetteville Town Center
Background:
Per our lease agreement with the city, the Fayetteville Town Center collects the
revenue from the parking deck. The city's parking department maintains the gate
equipment and performs regular maintenance, but does not pay for replacement of
the equipment.
The Fayetteville Town Center parking gate and payment machine have failed and are
beyond repair. We have been without the ability to close the gate or charge for daily
parking since July 2022.
City staff is recommending a move to an upgraded, gateless system which would
feature license plate recognition for the monthly parking tenants. Additionally, Town
Center staff is recommending a rate increase to help offset these costs.
Three price quotes were not solicited for this replacement as the city has already
selected a vendor to maintain standard equipment across multiple parking areas.
Recommendation:
Accept the $35,459 quote from IPS Group for equipment, installation and software for
the new gateless parking system and raise daily parking rates in the Town Center
deck from $4 to $6.
QUOTE FOR:
CITY OF FAYETTEVILLE, AR
8/3/2022
Fixed LPR Hardware
VSF-016-L5F
L5F Fixed LPR Camera
2
$6,755.00
$13,510.00
VS-FX-UNI
Fixed LPR Camera Bracket
2
$364.00
$728.00
BCAVIF2-
C600-W
Fixed Camera Communications Box - Windows
1
$3,373.00
$3,373.00
VS-SHIP-02
Shipping Charges
1
$150.00
$150.00
Sub -Total:
$17,761.00
Fixed LPR Software & Services
Item #
ltCM
Qty
Unit Price
Total Price
VSBSCSVC-01
Vigilant LPR Basic Service Package
2
$559.00
$1,118.00
*Priced per camera peryear
VS-VPS-PT-01
Parking Enforcement System Toolkit
1
$1,040.00
$1,040.00
*Priced per system peryear
SSU-SYS-COM
Vigilant System Start -Up & Commissioning of In-
1
$2,275.00
$2,275.00
Field LPR System
VS-TRVL-01
Vigilant Technician Travel to Client Site
1
$2,015.00
$2,015.00
VS -INSTALL
LPR Camera Installation
1
$6,850.00
$6,850.00
*Final price to be confirmed after site visit and
complete Scope of Work.
CDFS-4HWW
Fixed LPR System Extended Warranty. Years 2-5
1
$4,400.00
$4,400.00
Software &
$17,698.00
Services
Sub -Total:
Hardware
$17,761.00
Sub -Total
Project Total:
$35,459.00
Annual Cost:
$2,158.00/year
* *Includes I year factory warranty. Extended warranty is available for years 2-5. This purchase must be
made with the original procurement or within the year one factory warranty period for all the additional
years you wish to cover.