Annual report - fiscal year 2000/2001

Annual Report - Fiscal Year 2000/2001
The Jekyll Island
Authority

OUR MISSION
The Jekyll Island State Park Authority shall provide trustworthy stewardship and conservation of our natural and cultural resources, and generate appropriate revenues to sustain, enhance and develop services, programs and amenities that maximize benefits to our customers, guests and employees.
OUR VISION
The standard for Jekyll Island will be continuing improvement and excellence through progressive stewardship, product and service delivery, employee career development and financial responsibility. Jekyll Island will be recognized as the choice destination among all who discover and enjoy its unique environment, services and amenities.

FROM THE EXECUTIVE DIRECTOR

Bill Donohue Executive Director Jekyll Island Authority
COVER: In 1904, Munsey's Magazine referred to the Jekyll Island Club as the "richest, the most exclusive club in the world." Today, the former club is open for public enjoyment as the Jekyll Island Authority leads on-going revitalization to the Jekyll Island Historic Landmark District. Partnerships are essential to this progress, and pictured on the cover is the Jekyll Island Club Hotel, a privately operated four-star resort that is the centerpiece to the 240-acre District.

It is my pleasure to share with you our Annual Report for Fiscal Year 2001 and the great news it contains. The accomplishments outlined in the following pages represent significant progress on our journey towards realizing the long-range vision for Jekyll Island. By reviewing this progress report, I hope you will share my excitement in seeing our plans from previous years turn into completed projects. The resulting product and service enhancements are important in enriching the guest experience on Jekyll Island.
It is only through the dedication of the women and men that comprise the Jekyll Island Authority team that such progress is possible. The hard work, long hours and strong commitment are paying off. I am proud to be a part of this team, and I thank them for their continuing dedication.
We are proud of what we accomplished in FY2001. We are especially proud of and thankful for the support of our stakeholders. The strong support of Governor Barnes and the General Assembly is opening doors to additional sources of revenue. The Authority Board Chairman and eight dedicated board members continue to provide great interest and steadfast guidance to the Authority team. The newly established Jekyll Island Foundation and its Board of Directors, comprised of eleven of the most highly respected individuals, will allow us to accomplish what could only be dreamed about previously.
The pages of this report could not hold the names of all the individuals and groups that continue to support Jekyll Island. The enthusiasm of the many volunteer and support groups continues to be one of our strongest assets.
It is an honor to serve as Executive Director for such a great team. Thank you for the trust you have placed in us to guide Jekyll Island into the future. I pledge to continue to provide the leadership for the Jekyll Island Authority and to be a responsible steward of this public treasure whose future is filled with exciting promise.
3

ABOUT JEKYLL ISLAND, GEORGIA and THE JEKYLL ISLAND AUTHORITY
Jekyll Island is a barrier island off the southeastern coast of Georgia. It was purchased by the State of Georgia in 1947 from the Jekyll Island Club, a group of wealthy industrialists that owned the island since 1886.The 7-mile long, 1-mile wide island is leased by the state to the Jekyll Island Authority, which is comprised of a nine-member board of individuals from business, government and education throughout the state.The board is appointed by the Governor for four-year terms to set policy for the island's operation.An Executive Director and a staff of four Senior Division Directors oversee the operation, maintenance and promotion of the island's amenities and Historic Landmark District, and the provision of municipal services for the island's residential community, 10 hotels, rental cottages and businesses.
FROM THE CHAIRMAN
The Jekyll Island Authority Board of Directors is proud to present this Annual Report and the accomplishments reported within.This past fiscal year was one of action as many plans came to fruition. It has been exciting to see support from all quarters come together and drive this tremendous progress.
I want to personally thank Governor Barnes for his continued support. His notable visits to Jekyll, including the dedication of the new Welcome Center, are public testimony to his commitment to this precious resource.The General Assembly has also continued to see the importance of Jekyll Island to the state's tourism business, and have acted positively on many support issues.And it has been my pleasure to serve as chairman to this board, comprised of eight of the finest people with whom I have worked.
Support from the private sector has been profound also.The formation of the Jekyll Island Foundation will prove to be one of the most significant events for the future of Jekyll Island.The local groups, Friends of Historic Jekyll and the Jekyll Island Citizens Association, continue to be a steady current for positive change.
This will be my last year as Chairman and I am grateful to have had this opportunity to serve. No other extracurricular activity has provided as much enjoyment as working with the Jekyll Island Authority. I look forward to continued association with Jekyll Island as I finish my term on the Board of Directors and avail myself to other opportunities to protect and improve this beautiful public resource.

Tom Lewis, Chairman

JEKYLL ISLAND AUTHORITY BOARD OF DIRECTORS

THOMAS C. LEWIS , Chairman Cartersville, Georgia
DAN WILLIAMS,Vice-Chairman Kingsland, Georgia
TALITHA RUSSELL, Secretary McDonough, Georgia

CHARLES JENKINS Blairsville, Georgia
SHARON ADAMS Atlanta, Georgia
LONICE BARRETT Atlanta, Georgia

RANDALL BOOKER Savannah, Georgia
JACK COLLINS Marietta, Georgia
DANIEL HALPERN Atlanta, Georgia

4

Jekyll Island Foundation

T he Jekyll Island Foundation is an independent 501(c)(3) foundation incorporated in 2000. It serves solely to support the historic preservation, environmental conservation, education and planning programs at Jekyll Island, Georgia. Governed by an autonomous board of directors, it solicits the advice, counsel, and participation of the Jekyll Island Authority, residents of and visitors to Jekyll Island, descendants of members of the original Jekyll Island Club, and other interested parties who seek to protect the natural and cultural resources of Georgia's 4700-acre barrier island.
Careful consideration has been given to the relationship between the Authority and the Foundation. The Authority acknowledges its primary responsibility to sustain and operate the Island and the Foundation recognizes its mission to seek significant funds and capital support for projects that lay outside the ability of the Authority's operating budget. This symbiotic relationship will provide for the expansion of opportunities for residents and visitors to be fully engaged in the Jekyll experience while setting an appropriate standard for the conservation of the Island's rich natural and cultural resources.

The Jekyll Island Foundation has been active in bringing family descendants of Jekyll Island Club members back to Jekyll. Here, descendants of William Rockefeller gather for a reunion at Indian Mound, the
former cottage of William and Almira Rockefeller.

JEKYLL ISLAND FOUNDATION BOARD

Clay C. Long, Chairman Founding Partner and Chairman,
Long Aldridge & Norman
Tricia Allen Chair of the Board of Trustees
The Nature Conservancy of Georgia
Elizabeth W. Bean Managing Director,
OFFITBANK, a Wachovia Company
D. Bailey Izard Secretary-Treasurer Breckenridge Capital, LLC

Thomas W. Kitchin Vice-Chairman
Chairman and CEO, Jameson Inns, Inc.
June Hall McCash Graduate Director, Department of Foreign Languages and Literatures, Middle Tennessee State
University
DuBose Porter Editor and Chairman, Courier Herald, Dublin, GA
Jonathan Roseman Director - Community Affairs
The Home Depot

Richard J. Hutto Executive Director Director of Planned Giving Wesleyan College, Macon
Michael W. Trapp Chairman & CEO Sands Partners, Inc.
Connell Stafford Vice President Government Relations, Coca-Cola North America
Landon K. Thorne, III Managing Director, Midas Advisory Group

5

FUNDING THROUGH PARTNERSHIPS
How the Jekyll Island Authority must meet its mission of stewardship and conservation
Case Study: The Horton House
The Jekyll Island Authority is focused on partnerships as a method of achieving our mission of stewardship and financial growth. Partnerships have been achieved in a variety of combinations; with private investment, State and Federal Government investment, and local/regional support. Each partnership yields an expansion of Jekyll Island Authority's ability to implement activities that enhance the guest experience while conserving and protecting the islands resources. A particularly appropriate example is found in the activity associated with the Horton House historic site.
The Horton House is a nationally significant Tabby structure that is one of only two pre-revolutionary standing structures in the state. The museum staff worked closely with the Friends of Historic Jekyll Island to successfully secure a grant from Georgia DNR to study the site as a first step towards its conservation and public interpretation. An architectural conservator was hired to research the site and develop a plan to protect and display the site. The results of this study enabled the museum staff to successfully apply for a matching grant from the U.S. Department of Interior. These funds will be matched with private, corporate, Friends of Historic Jekyll Island and Jekyll Island Authority funds to accomplish the long-term conservation of the site.
This formula of planning and coordination of assets and resources has many potential applications in the future and the Authority staff has devoted strategic planning to this purpose. Enhancements to the island and to the guest experience are achieved at a much higher quantity and quality through this effective Partnership strategy. The chart below shows how the Jekyll Island Authority has used $4.91 million to leverage an additional $9.35 million over the last ten years.

Funding Partner Georgia State Legislature

Amount

Type

$4.225 million Budget Allocation

Purpose
Golf Course Renovation Historic District Infrastructure

Georgia Dept. of Transportation $400,000

Matching Grant Bike Path Extension

Georgia Dept. of Natural Resources $12,000

Grant

Horton House/Site Study

Georgia Building Authority

$120,000

Budget

ADA Improvements

Ga. Hist. Records Advisory Bd. $10,000

Grant

Archive Inventory

Jekyll Island Foundation

$20,000

Unrestricted Gift

Indian Mound Exhibits Servants Dormitory

Jekyll Club Hotel Associates

$3.5 million Direct Investment Crane & Cherokee Cottage

Friends of Historic Jekyll Island $80,000

Restricted Gift

Faith Chapel/Horton House

Jekyll Island Garden Club

$12,000

Restricted Gift

Landscape Improvements

U.S. Dept. of Interior

$250,000

Matching Grant Horton House/Site

6

PROGRESS... 2001 HIGHLIGHTS
OPERATIONS

The staff of the Operations Division are on the front lines of guest service, and are dedicated to delivering top quality everyday. They must meet the needs and strive to exceed expectations of a diverse customer - from meeting planners and conference attendees to group tour operators and family vacationers. Through a variety of business units, Operations generates over $8 million in revenues and delivers a positive guest experience to the 11/2 million visitors to Jekyll each year. Division highlights include:

Museum and Historic Preservation Opened Crane Cottage and Cherokee Cottage as part of the
Jekyll Island Club Hotel after $5.15 million dollar renovation New surface and traffic pattern improvements for pedestrian,
tram and vehicle traffic within Historic Landmark District Addition of public restrooms and changing room facilities
adjacent to Faith Chapel Awarded $400,000 from the Georgia Department of
Transportation TE Program for Bike Path extension Established and hosted SEMC Training Institute Received National Park Service Save America's Treasures award
for Horton House site preservation

Horton House is an important part of Jekyll Island's colonial history and will be preserved as a premier historic site thanks to the Department of Interior's Save America's Treasures program.

Summer Waves Water Park Reduced attraction down-time through preventative parts
replacement program Achieved third highest attendance and record gift shop sales
Campground Resolved #1 guest complaint with improved road service using
recycled asphalt material

Respected golf architect Clyde Johnston, left, provided golf course master planning services in addition to the renovation design for Pine Lakes 18-hole course.

Convention Center Hosted many returning conventions and several new events
like Spirit & Co.'s All Star Challenge Cheerleading Contest Facility improvements included 6,600 square feet of new
carpet in Atlantic Hall and Beachside Ballroom
Golf Course Governor Barnes and the State Legislature allocated
$2.5 million for Pine Lakes' 18-hole course renovation
Cheer and dance teams from across the country descend on Jekyll Island to compete for honors at the annual All Star Challenge, "Clash of the Titans" competition.
7

FACILITIES, ENGINEERING & CONSTRUCTION

Managing municipal, public park and resort destination elements presents a unique challenge to the Facilities, Engineering and Construction Division. The dedicated staff is called upon everyday to serve a variety of customers - from island residents to resort guests. Their work is critical to a positive Jekyll experience, and their success lies in the dedication to prevention and quality workmanship. This year's highlights:

Facility Maintenance Rebuild and re-deck Glory Boardwalk using recycled
plastic/wood product Construction of new cart barn at Great Dunes golf course
Fire and Emergency Medical Services Grant application approved for $128,000 for American with
Disabilities Act island-wide improvements. Emergency volunteers raised $6,000 for additional fire fighting
equipment EMS staff completed 1,000 hours of fire skills and 1,000 hours of
physical training Acquired second fire engine through cooperation with
Brunswick City Fire Department Instituted Authority-wide Health Awareness program

Authority staff and senior management participated in Earth Day activities by helping to plant 40,000+ dune grass seedlings along reconstructed sand dunes.

Landscape and Grounds Beachview bike path rebuilt incorporating tabby concrete
surface and sand dune reconstruction Complete landscape renovation at new Welcome Center utilizing
native sod grass with higher drought resistance and salt tolerance Completed historically interpreted landscape overlay to
Circulation Plan Phase I in Historic Landscape District

In coordination with the Georgia Department of Natural Resources and SeaWorld, Jekyll Island Turtle Project participated in the rescue, rehabilitation and release of "Cecelia"- an endangered loggerhead sea turtle.

Vehicle Equipment Maintenance and Sanitation Completed vehicle maintenance training classes

The Authority is proud of its hard-working Water and Wastewater Department which received six awards for plant and lab operations.

Water and Wastewater Completed south-end sewer and storm drain project,
replacing problematic septic systems for 21 residences Continued proactive water conservation efforts with the
conversion of Pine Lakes Golf Course irrigation from Floridan to Miocene aquifer Received six awards for outstanding water and wastewater plant and lab operations

8

HUMAN RESOURCES

The Jekyll Island Authority seeks excellence through empowerment of a talented and diverse workforce. Continuous improvement is seen in developmental programs and the utilization of feedback. The goal is competitive compensation and a wide range of excellent benefits. Most important is the Authority's commitment to caring for its employeesa true and sincere appreciation and gratitude for quality and a job well done. The result is a caring employer who employs good, quality people empowered as a team and as individuals towards delivering our guests the total "Jekyll Island Experience." Human Resources highlights include:

Island-wide Employee Orientation - partnerships with local businesses HOPE scholarship funds helped educating new personnel on Jekyll's history, current and future changes JIA staff attend accredited



Support for Diversity - continuous scheduling of seminars/classes for our

Hospitality Training courses conducted by Coastal Georgia

diverse employees on culture, human relations, and different languages Community College.

spoken in the workplace

Community Relations - increased participation in United Way, local charities, Partners in Education, Job Corp partnerships, Beach Sweeps and Chamber of Commerce

MARKETING

Marketing is the engine that drives the tourism and convention business which is critical to the financial stability of the Jekyll Island Authority. The Marketing Division operates several departments that are focused on driving economic impact through hotel occupancy, island commerce, direct special event revenue and amenity traffic. The senior director also serves as Director of the Jekyll Island Convention and Visitors Bureau, a member-based organization that includes all ten island hotels and representatives from the real estate and business community. Marketing highlights include:

Advertising and Public Relations

Media relations focus resulted in prominent editorial coverage of Jekyll Island in 646 articles with over 83 million circulation
Convention Sales and Service

Governor Barnes officially opened the new Welcome Center and Georgia State Patrol Post with a ribbon-cutting ceremony.

Successfully hosted All-Star Challenge cheerleading competition,

resulting in a return commitment for March 2002. The event has 2,000 plus participants and generates

over 2,600 hotel room nights.

The Jekyll Island Soccer Complex is the host site for the region's Olympic Development Program Tournament.

Soccer Complex Achieved 140 field rental days generating traffic of over fifteen
thousand participants Established host site for prestigious United States Soccer Federation
National Coaching School
Welcome Center Accomplished successful opening of new Welcome Center Implemented new database management tool to increase response
time to requests for information

9

FINANCIAL HIGHLIGHTS

As a self-funded organization, financial performance is critical to the Jekyll Island Authority's mission. Fiscal Year 2001 saw the beginning of an economic slowdown in the tourism industry forcing adjustments to operating budgets. In the face of smaller revenue growth, costs saving measures were implemented including restricted overtime hours and a hiring freeze for nonessential positions. A strong convention calendar offset weakness in other areas. Total revenues for the year grew by 1.7% from the prior year and the Authority was able to generate $1,449,582 in Net Operating Revenue.

JEKYLL ISLAND AUTHORITY REVENUE & EXPENSE TRENDS

$1,600,000

Authority Revenue

Operating Expenses

Available For Capital Equipment and Improvements

1,500,000

1,400,000

1,300,000

1,200,000

1997

1998

1999

2000

2001

Revenue

$ 13,532,043 $ 14,508,995 $ 14,653,618 $ 15,825,308 $ 15,978,367

Operating Expenses 13,231,472 13,460,778 13,460,778 13,847,721 14,528,785

Capital Equipment

300,571

196,631

334,666

344,268

82,258

Capital Improvements 356,400 370,882 126,103 1,406,770 1,215,441

Net revenues are used to purchase Capital Equipment and fund Capital Facility Improvements. These projects are given a priority based on their impact on guest safety and guest experience. Major projects funded in FY01 include:
FY01 Capital Projects
Beachside Playground Project ............................................................$150,000 Convention Center Carpet .....................................................................140,000 Museum Interpretation Development ...................................................125,500 Island-wide Signage .............................................................................125,000 North Beach Bike Path Improvement....................................................125,000 Summer Waves Capital Repairs............................................................100,000 Tennis Center Restroom Addition .........................................................100,000 Beach Crossover Repair & Maintenance.................................................70,000 Holiday Lights.........................................................................................50,000 Welcome Center Landscape Construction ..............................................50,000 Beach Ranger Program...........................................................................46,000 Beach Parking Lot Resurfacing ..............................................................30,000 Preventative Tree Trimming and Cutting .................................................25,000

JEKYLL ISLAND HOTEL TRENDS
Occupancy 70%
60%
50%
40% 30%
1997 1998 1999 2000 2001 56% 58% 62% 57% 58%
Average Daily Rates
$90
80
70
60 50
1997 1998 1999 2000 2001 $74.33 $77.37 $81.16 $84.31 $87.55

JEKYLL ISLAND AUTHORITY AMENITY TRENDS

CONVENTION CENTER
Revenue
$ 2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

1997 1998 1999 2000 2001

$1,143,700

$1,437,061

$1,893,255

$1,439,191

$1,351,501

$1,700,000

SUMMER WAVES
Revenue

1,500,000

1,300,000

1,100,000

900,000

700,000

500,000

1997 1998 1999 2000 2001

$1,080,456

$1,288,835

$1,445,818

$1,492,589

$1,543,699

CAMPGROUND
Occupancy
60%

50%

40%

30%

20%

10% 0

1997 1998 1999 2000 2001 29% 35% 36% 38% 36%

10

JEKYLL ISLAND AUTHORITY

Consolidated Statement of Earnings For the Fiscal Year Ending June 30, 2001

Revenues
Administration Business Leases Parking Hotel Tax Capital Outlay Surcharge Interest Lot Rentals
Amenities Golf Food & Beverage Summer Waves Campground Museum Convention Center Rentals Miniature Golf & Bikes Special Events
Municipal Services
Other
Total Revenues

FY-2001
$2,128,479 1,264,389 1,226,281 648,140 255,162 209,130
$5,731,581
$2,820,876 2,231,813 1,445,818 553,205 385,676 254,627 190,604 108,751
$7,991,370
$1,327,309
$928,107
$15,978,367

FY-2000
$2,064,061 1,246,061 1,236,757 679,161 300,239 209,130
$5,735,409
$2,923,569 1,844,218 1,543,699 571,260 457,861 227,693 169,046 221,959
$7,959,305
$1,350,936
$779,658
$15,825,308

Expenditures
Human Resources Supplies & Materials Repairs Utilities Insurance Advertising Contracts Equipment Purchase Debt Service Other
Total Operating Expenditures
Net Operating Income
Capital Equipment Capital Facility Improvements*
Net Income

$8,119,262 1,375,015 864,983 810,621 591,297 945,870 414,028 16,238 840,190 551,281
$14,528,785
$1,449,582
82,258 1,215,441
$151,883

$7,348,978 1,415,457 918,963 790,863 585,572 624,967 621,132 24,520 892,085 625,184
$13,847,721
$1,977,587
344,268 1,406,770
$226,549

*The Authority also invested $421,535 in FY2001 and $1,725,000 in FY2000 in restoration of Crane and Cherokee Cottages, Historic District structures.

11

Governor Roy Barnes presented Board Chairman Tom Lewis, Jekyll Island Club Hotel General Manager Kevin Runner and Executive Director Bill Donohue with an official Proclamation in celebration of the opening of Crane and Cherokee Cottages.
THE JEKYLL ISLAND AUTHORITY 100 James Road
Jekyll Island, Georgia 31527 912-635-2236
For Vacation Planning Information, please call or write: JEKYLL ISLAND CONVENTION AND VISITORS BUREAU
P.O. Box 13186 Jekyll Island, GA 31527 Toll Free: 877-4JEKYLL (877-453-5955) or 912-635-3636 www.jekyllisland.com
Printed on recycled paper, 10% post consumer content. Please recycle.