State Parks, Recreation & Travel Commission Garvan Woodland Gardens, Hot Springs, AR February 16, 2012

Commission Present

Cindy Smith, Vice Chair John Gill Steve Arrison Debbie Haak Bill Barnes Barbara Harvel Jay Bunyard Billy Lindsey LeRoy Dangeau Montine McNulty Danny Ford Mike Mills Jim Gaston Jim Shamburger

Commission Absent

Darin Gray, Chair Bob Knight Ness Sechrest

Department Staff Present

Richard Davies, Executive Director Greg Butts, Director, State Parks Joe David Rice, Tourism Director Marla Crider, Assistant Tourism Director Gloria Robins, Executive Assistant Jon Brown, Operations Manager Stan Graves, Planning & Development Manager Joe Jacobs, Marketing & Revenue Manager Joan Ellison, Public Information Officer Tom Stolarz, Region 1 Supervisor Tony Perrin, Region 2 Supervisor Marcel Hanzlik, Region 3 Supervisor Shea Lewis, Region 4 Supervisor Grady Spann, Region 5 Supervisor Kat Robinson, Communications Manager Renee Robison, Group Travel Manager Donna Perrin, Tourism Development Manager Joanne Hinson, Research & Information Services Manager Kris Richardson, Administrative Specialist Dottie Boyes, Administrative Specialist Zoe Clift, Travel Writer

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Aristotle

Marla Norris Jonathan Eudy Dina Pruitt

CJRW

Shelby Woods Wayne Woods Karen Mullikin Joy Phillips Brandi Childress Amy Frazier Rob Anderson

Guests

Robert Bledsoe, Executive Director, Garvan Woodland Gardens Bob Byers, Associate Executive Director, Garvan Woodland Gardens James Starkel, Audio Visual Technician, Garvan Woodland Gardens Gene Eagle, Vice President, Arkansas Development Finance Authority Richard Boyes, Superintendent, Lake Catherine State Park Lee Howard, Superintendent, State Park Caleb Howell, Superintendent, Ben Rawles, Intern, Lake Dardanelle State Park

Roll Call

Vice Chair Smith called the meeting to order at 8:36 am on Thursday, February 16, 2012. Gloria Robins called the roll.

Approval of Agenda

Danny Ford made a motion to accept the Agenda as presented. Barbara Harvel seconded and the motion carried.

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Presentation of Minutes from Previous Meeting

Steve Arrison made a motion to accept the Minutes from the January meeting. Mike Mills seconded and the motion carried.

Introduction of Guests

Vice Chair Smith welcomed and introduced guests to the meeting. Bob Bledsoe, Executive Director of Garvan Woodland Gardens welcomed the Commission, stating he was glad to have the group.

FINANCIAL REPORT

Cynthia Dunlap presented the year-to-date financial report for the period ended January 31, 2012. The expenditures were: Parks Division, $41,485,834; including construction and grants; Tourism Division, $6,633,459; Keep Arkansas Beautiful, $272,377; Administration Division, $1,958,466; and History Commission, $1,070,172. Expenditures for the Department totaled $51,420,309; a decrease of 11% over the same period FY11. The year-to-date operating revenue Parks Division totaled 12,204,175 a decrease of 8% over the same period FY11; 1/8% Cent Tax $16,210,515 a decrease of .07% over the same period FY11; and 2% Tax $8,139,211, an increase of 4.9% over the same period FY11.

Steve Arrison made a motion to approve the Financial Report. Montine McNulty seconded and the motion carried.

EXECUTIVE DIRECTOR’S REPORT

US Army Corp of Engineers Update

Richard Davies reported in response to the US Army Corps of Engineers (USACOE) proposed changes in operation at 29 of its parks due to budget cuts, the State Parks, Recreation and Travel Commission has sent a resolution requesting a cost savings analysis on the parks slated for closure and the impact it will have on the state’s economy. Davies advised that he has not received a report from the USACOE as yet but will keep the Commission posted.

Miscellaneous

Richard Davies advised Representative John Burris had submitted an alternative budget proposal shaving $21 million in revenue from Governor Beebe’s budget, recommending budget cuts to state agencies of 3.5%. Governor Beebe has requested state agencies to detail the impact of the cuts, either in the form of employees or direct services. Mr. Davies advised if passed, $678,000 would be cut from ADPT. ADPT is preparing information of where cuts would be implemented (if approved) for consideration.

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Bill Barnes reported there has been an experiment at Lake Ouachita since January 1, 2012 as the USACOE is continuing to operate the campground but the revenue generated goes to a non-profit organization. The non-profit organization handles light maintenance while the USACOE is responsible for heavy maintenance with good results so far. McNulty noted that the USACOE is in favor of the idea.

Montine McNulty reported that the State Procurement Office is proposing a state hiring contract for all state meetings with a budget of $5,000 + with the low bidder being awarded the meeting. McNulty is strongly opposing the idea and wanted to make the Commission aware of the proposal.

Billy Lindsey reported in spite of looming budget cuts proposed for the Norfolk and Greers Ferry Trout Hatcheries, the hatcheries were successful in receiving funding for this year’s budget. However, budget cuts are proposed for next year’s budget which brings them back to the same challenges.

Montine McNulty invited Commissioners to attend the Bass Angler’s Sportsman Society (BASS) reception at Gaston’s Resort on April 20, 2012.

PARKS DIVISION

Spring Radio and TV Spots

Joe Jacobs presented new and previously approved TV and radio spots to be utilized for the spring advertising campaign. These NCSA TV and radio spots will run on stations throughout Arkansas beginning March 1, 2012 and continuing until further notice.

Debbie Haak made a motion to approve the TV and radio spots as presented for the spring ad campaign:

TV Spots (30-second spots) TV Cut # 1: “Arkansas State Parks: Get Outside and Play” (new spot) TV Cut # 2: “Arkansas’s State Parks: So Close and So Much to Do” (return)

Radio Spot (60-second spots) Radio Cut # 1: “Arkansas State Parks: Get Outside and Play (new spot) Radio Cut # 2: “Mather Lodge at Reopens This Spring (new spot) Bill Barnes seconded and the motion carried.

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Delta Heritage Trail

A. Video of UALR Campus Life

Joe Jacobs presented a video of UALR campus life of students enjoying a camping/bicycling/kayaking trip to the Delta Heritage Trail State Park with a side trip to Helena’s historic spots.

B. Rohwer Entry Sign Request

Stan Graves presented a request from Arkansas State University to install a new entry sign (Rohwer Japanese American Relocation Center) in the right of way of the Delta Heritage Trail State Park to replace the worn, faded sign that is currently at the location.

Mike Mills made a motion for approval for Arkansas State University to install a new entry sign (Rohwer Japanese American Relocation Center) in the right of way of the Delta Heritage Trail State Park. LeRoy Dangeau seconded and the motion carried.

Hobbs – Use Permit Agreement

Stan Graves requested approval for ASP to enter into a Use Permit Agreement with a new land owner (Lynn Campbell) of privately owned land (3320 feet long by 15 feet wide, covering approximately 1.14. acres) adjacent to Hobbs State Park Conservation Area to provide access to the residence. Graves advised the Commission had previously approved the Use Permit Agreement to the seller in 1999. Based on realtor estimates for the linear permit area, access is valued at $400.00.

Steve Arrison made a motion to approve an access Use Permit Agreement for Lynn Campbell land adjacent to Hobbs State Park Conservation Area for $400.00 as follows:

Part of the Northeast Quarter of the Southwest Quarter and the Southeast Quarter of the Southeast Quarter of Section 33, Township 19 North, Range 28 West, Benton County, Arkansas, containing 1.14 acres, more or less.

Danny Ford seconded and the motion carried.

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Land and Water Conservation Fund Grant Request

Stan Graves reported that ADPT is eligible for $193,700 in matching grant funds from Arkansas’s 2011 apportionment of the Land and Water Conservation Fund. Funding will be used to construct additional hike/bike trail at Delta Heritage Trail State Park. Graves requested a resolution of support from the Commission.

Jim Gaston made a motion to approve a resolution to utilize funding from the Land and Water Conservation Fund to construct additional bike/hike trail at Delta Heritage Trail State Park. Debbie Haak seconded and the motion carried.

Woolly Hollow – Structure Removal; Seasonal Residence

Stan Graves requested approval for removal of a mobile home (1976) from inventory that has been used for a seasonal residence, due to the structure is dilapidated and no longer serves its intended purpose.

Billy Lindsey made a motion to approve the removal of a seasonal employee residence (Building No. 59.08/AASIS No. 120006565) from the inventory. Debbie Haak seconded and the motion carried.

John Gill made a substitute motion that based on the information presented; the Commission finds the seasonal employee residence obsolete not withstanding its insured value. Bill Barnes seconded and the substitute motion carried.

Greg Butts provided clarification that the insurance policy insures structures for replacement purposes, not for today’s market value.

DeGray Lake Resort State Park – Removal of Water Treatment Plant

Stan Graves requested approval for removal of a water treatment plant (circa 1975) from inventory that has not been in use since 1995.

Debbie Haak made a motion to approve the removal of a water treatment plant (Building No. 14.07/AASIS No. 120005676) from DeGray Lake Resort State Park inventory. John Gill seconded with a substitute motion that based on the information presented; the Commission finds the water treatment plant obsolete not withstanding its insured value and the substitute motion carried.

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Lake Catherine State Park – Removal of Water Storage Tank

Stan Graves requested approval for removal of a 75,000 gallon water storage tank (circa 1970) from inventory that is no longer in use.

John Gill made a motion that based on the information presented; the Commission finds the water storage tank obsolete not withstanding its insured value. Bill Barnes seconded and the motion carried.

Staff Certificates of Appreciation

Greg Butts requested two certificates of appreciation for ASP staff upon their retirement, March 1, 2012, after many years of excellent service:

A. Bryan Kellar, Director of the Outdoor Grant Recreation Program, in recognition of 38 years of outstanding service, dedication and leadership to ASP and

B. Mike Brawner, Park Superintendent at Village Creek State Park, in recognition of 39 years of outstanding service, dedication and leadership to ASP.

Jim Shamburger made a motion to approve a certificate of appreciation for Bryan Kellar and Mike Brawner. Debbie Haak seconded and the motion carried.

Mount Magazine - Refinancing Lodge Bond Issue

Richard Davies advised there is an opportunity to refund the Mount Magazine State Park bond issue due to the low interest rates. Davies advised the issue came up recently when the Arkansas Development Finance Authority (ADFA) had issued a request for a proposal to refund another state agency’s bonds, generating interest among investment bankers for other state bonds issued that might qualify for significant savings. Davies reported the bonds were issued in 2004 and may be called in 2014 with an average interest rate of 4.25%. Davies estimated the range of interest rates is currently 2.1% to 2.5%, generating a savings of an estimated $96,000 to $140,000 annually or $1.2 to $1.69 million over the remaining life of the bond. ADPT would be required to borrow money to buy government securities to escrow until 2014. The cost would be part of the expense for the refunding. Davies noted refunding can only be done one time.

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Greg Butts introduced Gene Eagle, Vice President at Arkansas Development Finance Authority, to address questions from the Commission. Gene Eagle advised that three other state agencies are going through this process, therefore the ADFA wanted to offer an opportunity for ADPT to save money as well. He advised proposals from three competent firms may be requested to lock in the best rate available to offer the best deal available for the state. He advised the ADFA target on these refunding issues is 5% on Net Present Value, which is higher than the normal 3%.

After discussion ensued with the Commissioners and staff, Danny Ford made the following motion.

Danny Ford moved to:

A. Approve a resolution authorizing the Directors of the Arkansas Development Finance Authority and the Arkansas Department of Parks and Tourism, along with the Chair of the State Parks, Recreation and Travel Commission to make a final decision on refunding the Mount Magazine State Park Lodge Bond Issue based on costs, savings, interest rates and timing of the market.

B. Given today’s historically low interest rates, request the Arkansas Development Finance Authority to review the Village Creek Golf Course loan and determine the feasibility of lowering the rate.

Debbie Haak seconded and the motion carried.

John Gill refrained from the discussion and the vote.

In response to a question regarding tourism development funding opportunities, Eagle advised there is a program that was implemented during Governor’s Huckabee’s term, requesting agencies to assist tourism projects in the state. ADFA has set aside loan funds for new ventures or expansions in the tourism industry. Eagle advised there have been several successful projects resulting from the program. With much interest and questions from the Commission, he will forward program details to the Commissioners.

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Village Creek

A. Memorandum of Agreement Approval; Cross County Rural Water System

Stan Graves requested approval for ASP to enter into a Memorandum of Agreement with Cross County Rural Water System (CCRWS) to supply water for the planned golf course developments. ASP would construct the line and the CCRWS would maintain the line.

Bill Barnes suggested placing fire hydrants adjacent to structures and planned facilities, as it less costly to install fire hydrants during the construction phase. Staff advised that some hydrants have been installed and would review any locations where future facilities are planned.

John Gill made a motion for Arkansas State Parks to enter into a Memorandum of Agreement with Cross County Rural Water System with terms approved by Richard Davies. Billy Lindsey seconded and the motion carried.

B. Golf Course Update

ASP staff provided an update on the progress of the golf course. Jon Brown reported that the golf course is looking great and the west and north “nines” will re-open May 4, 2012, with the east nine scheduled to open July 4, 2012. Ten of the seventeen positions have been filled at this time. Fifty electric golf carts will be leased and additional carts are available for tournaments. Stan Graves reported restrooms will be built on the course. Construction bids for the clubhouse and cart barn will be solicited in early July. Joe Jacobs advised a marketing budget of $38,000 was approved for FY 2012 and includes print ads, online advertising and outdoor billboards. There will be additional promotion prior and during the opening. Richard Davies suggested organizing familiarization golf outings from surrounding areas to introduce the course to the golf industry. Shelby Woods advised Governor Beebe has committed to playing the course, as soon as it’s ready. In response to the Arkansas Golf Trail, Greg Butts advised the goal is to become part of the Arkansas Golf Trail, once the required elements are in place.

Petit Jean; Mather Lodge

Stan Graves presented a power point on the renovation of Mather Lodge restaurant and kitchen noting an effort to blend new construction with the Civilian Conservation Corps style construction. The renovations look great with completion estimated for March 17 and opening date estimated in late April or early May. Greg Butts advised there will be a media tour to promote the re-opening closer to the actual opening date.

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Reservation System

Greg Butts provided a brief history of the current Maestro reservation system since its origin in ASP (1999) and advised it is time to move to the next level. ASP staff has been exploring various reservations systems and are interested in negotiating a contract with Active Network. Active Network is a full service reservation system offering “one stop shopping” and provides services for 21 other state park systems and federal outdoor recreation agencies. Discussion ensued regarding the many capabilities and advantages that Active Network would offer to park guests, staff and the park system ultimately assisting in growing the business. Butts noted any applicable policy directives would be modified as necessary at one time to streamline the process with plans for the new user friendly reservation system estimated to go into effect January or February 2014.

Jim Shamburger made a motion for Arkansas State Parks to proceed with negotiating a contract with Active Network for a new reservation system. Debbie Haak seconded and the motion carried.

Miscellaneous

Greg Butts reported that a contract has been signed to begin construction on five overnight guest cabins at Lake Fort Smith State Park, with $1.8 million received as low bid. Stan Graves estimated a completion date of December 16, 2012.

Greg Butts reported that ASP staff has met with six different companies regarding the Delta Rail Sale and the bids are due by March 15, 2012.

Greg Butts reported that the annual Polar Bear Plunge took place at Crowley’s Ridge State Park January 28, 2012 raising over $40,000 for Area 1 Special Olympics, with over 100 plungers in 40 degree water and approximately 900 people in attendance for a great cause.

Jim Gaston requested that the ASP staff review the current pet policy at cabins and lodging with the possibility of expanding pet friendly inventory.

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TOURISM DIVISION

38th Annual Governor’s Conference on Tourism: Update

Marla Crider gave an update on the 38th Annual Governor’s Conference on Tourism to be held March 4-6, at Southland Park Gaming and Racing, in West Memphis. To date 300 registrations and 23 sponsorships have been received. This year’s keynote speakers, Dave Carroll, the man who garnered the attention of United Airlines with a YouTube music hit, and Lt. General Russel L. Honoré (Ret.), known best for his role as Commander of Joint Task Force Katrina, have created much discussion and excitement about the Conference. Troy Keeping of Southland Park has continued to be helpful in making sure the Conference runs as smooth as possible. Joe David Rice encouraged the Commission to collect items for the auction.

Research and Information Services Section

The Research and Information Services Section processed 6,761 requests for travel information during January 2012, a decrease of 15.1% from January 2011. The Section received 182 requests for retirement and relocation information in January 2011, down 53.9% from January 2011.

Arkansas Welcome Centers received 38,316 visitors during January 2012, up 5.2% compared to January 2011.

Joanne Hinson gave an update on the progress of the upcoming Welcome Centers. Demolition of the old motel on the Helena/West Helena site has been completed and construction crews can now begin the prep work needed for the foundation. Stone work has been added to the outside of the building at the West Memphis site.

Tourism Development Section

Donna Perrin reported on the Winter Breakthrough Solutions Conference held at the Holiday Inn Airport in Little Rock on January 23. The event was hosted by the Cooperative Extension Service. The purpose of the conference was to address how communities can sustain their vibrancy in a rapidly changing environment.

The 2012 Spring & Summer Arkansas Calendar of Events was distributed. The front cover features Thorncrown Chapel near Eureka Springs, while the back cover depicts one of the many festivals held around the state.

Ms. Perrin announced the finalists for the Henry Awards have been notified, and video interviews for the Hall of Fame and Tourism Person of the Year recipients have been completed. The program for the Henry Awards Banquet has been sent to tourism artist Max Gilbert for final art layout.

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Communications Section

Kat Robinson reported on the 2012 Professional Association of Innkeepers International (PAII) Conference held January 23-26, 2012, in Little Rock. It was one of the larger conferences for PAII, with 468 attendees and 160 vendors from all over the country. The P. Allen Smith session, sponsored by the Department, was standing room only with more than 350 people in attendance.

Arkansas Tourism is now represented on the website Pinterest with 32 boards and more than 300 pins so far. The Department began populating the site with photos in January 2012 and to date has grown to 84 subscribers. Pinterest was introduced in May 2011 and currently has 10.4 million users. Demographics range strongly female in the 18 to 34 age category.

The 2012 Media Kit has been completed and is available online at Arkansas.com. A thumb drive or paper copy of the kit can also be requested.

The story, Kayak Fishing in Arkansas, written by Travel Writer Zoie Clift, has been picked up by Travel Savvy West magazine; Arkansas Wild; ArkansasMatters.com; North Texas e-News; GuidebookAmerica.com; and the Outdoors with Larry Rea radio show on Memphis, Tennessee station, Sports 790 AM.

Group Travel Section

The Monthly Tracking Report indicated there were 91 inquiries for January 2012 compared to 40 inquiries for January 2011. Leads were generated from the American Bus Marketplace held in Grapevine, Texas; the Religious Conference Management Association Conference, in Kansas City, Missouri; and from Arkansas.com.

Renee Robison reported that Patti Tours, a privately owned tour company that focuses on group travel, is putting together a tour through Arkansas in June. The trip named “Unforgettable Arkansas” will stop at DeGray Lake and Mount Magazine State Park, before continuing on to Bentonville for a tour of the Crystal Bridges Museum of American Art.

In the April 2012 issue of RoadRunner Motorcycle Touring & Travel magazine, the article “Borderland” featured a motorcycle trip taken through Arkansas, Missouri, and Oklahoma. Several locations around Arkansas were mentioned in the article including, Fort Smith National Historic Site, Eureka Springs, Mount Magazine State Park, and Mena Mountain Resort.

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Internet-Related Items

There were 356,122 visitor sessions during the month of January 2012, an increase of 11% over January 2011, and 93,092 links to industry partners. The Arkansas.com website placed fourth among all 50 state tourism sites and first amid the contiguous state sites.

The Hot Deals and Packages iPhone application had 3,993 downloads from March 1, 2010 through February 5, 2012, with 440 visits in January, and 3,161 page views. During January 2012, there were 51,451 visits from mobile devices to Arkansas.com, by way of 13 operating systems, an increase of 182% over January 2011.

A link to the 2012 Governor’s Conference on Tourism has been added to the Arkansas.com website. Visitors to the site can download registration and auction donation forms, information on local hotels, and a program.

Microsites added to Arkansas.com include water sports, birding, fishing, kids, relocation, and reunions. Information on the 40th anniversary of the designation of the as America’s first national river has also been added. The site will be interactive and will include a terrain map with points covering each landing on the river, and the closest amenities.

The Spring Summer 2012 television advertisements, from Cranford Johnson Robinson Woods, are posted on the Arkansas Tourism’s channel.

A culinary video featuring Chef Ryan Dubasak, executive chef at Luna Bella in Hot Springs, has been added to the dining website. The new family-owned Italian American restaurant opened in early 2010.

Advertising/Marketing

Spring/Summer 2012 Television Schedules

The 2012 Spring/Summer Television Campaign Schedules were presented. This 13-market buy targets an audience of adults ages 25-54. A six-week flight targets key in-state and out-of-state markets. Schedules will be flighted to air from April 2 to June 10, 2012. Spring/Summer broadcast schedules reach an average of 50% of adults ages 25-54 about 4.5 times over the six-week period.

2012 Spring/Summer Television Campaign Schedules

In-State $ 96,303.00 Out-of-State $598,571.00 2012 Television Total: $694,874.00

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Hispanic television schedules will run in Little Rock, Fort Smith/ Fayetteville, and Dallas/Fort Worth on the local Univision affiliate. Schedules are flighted for four weeks from April 16-May 27, 2012.

Spring/Summer 2012 Hispanic Television Summary

Little Rock, Fort Smith/Fayetteville $ 15,000.00 Dallas/Fort Worth $ 30,320.00 2012 Television Total $ 45,320.00

Cable television schedules have been added to supplement the broadcast investment in Fort Smith/Fayetteville, Jonesboro, Little Rock, Monroe/El Dorado, Shreveport/Texarkana, Dallas/Fort Worth, Kansas City, Memphis, Oklahoma City, Springfield, St. Louis, Tulsa, Tyler/Longview, and Waco/Temple/ Bryan. All schedules, flighted to run for five weeks from April 16-May 27, 2012, were placed using the National Cable Communications “SMART Buy,” with the exception of the Little Rock market, which was placed through Comcast cable’s Interconnect system. Total cost for the Cable television schedule is $847,688.00.

Spring/Summer 2012 Cable Television Summary

Fort Smith/Fayetteville $ 25,600.00 Jonesboro $ 22,800.00 Little Rock $ 26,800.00 Monroe/El Dorado $ 16,215.00 Shreveport/Texarkana $ 29,585.00 Alexandria $ 5,400.00 Austin $ 51,330.00 Dallas/Fort Worth $156,870.00 Houston $230,460.00 Jackson $ 17,399.00 Kansas City $ 67,500.00 Lafayette $ 16,500.00 Memphis $ 30,000.00 Oklahoma City $ 30,004.00 Springfield $ 15,005.00 St. Louis $ 57,015.00 Tulsa $ 13,500.00 Tyler/Longview $ 14,100.00 Waco/Temple/Bryan $ 21,605.00 2012 Cable Television Total $847,688.00

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Mike Mills moved to accept the 2012 Spring/Summer Television Campaign Media Recommendations for $694,874.00, the Hispanic television schedule for $45,320.00, and the Cable television schedule for $847,688.00. Jay Bunyard seconded and the motion carried.

Spring/Summer 2012 Radio Spots

The Spring/Summer 2012 Radio Spots were presented. The schedules are flighted to run April 16 – May 27, 2012, in conjunction with the spot television campaign.

Radio Cut # 1: “Paint a Picture” Radio Cut # 2: “Waterfall” Radio Cut # 3: “Watercolors”

Debbie Haak moved to approve the Spring/Summer 2012 Radio Spots as presented. Barbara Harvel seconded and the motion carried.

Miscellaneous

A Public Broadcasting Service (PBS) special on the Johnny Cash Music Festival, held Thursday, August 4, 2011, at Arkansas State University’s Convocation Center is currently in preparation. Footage from the event has been completed and sent to Cranford Johnson Robinson Woods.

Without any further business, the State Parks, Recreation and Travel Commission adjourned at 2:30 p.m. at Garvan Woodland Gardens in Hot Springs, Arkansas.