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HomeMy WebLinkAboutMinutes Corpus Christi Convention & Visitor Bureau - 12/17/1992 ,r ,y�y122232q �� 4006.104 iD "k�itait,.l S r1 • PIM isisxoM 2.• `EF, w' • cF Ck °`%S\‘' • N4% CCACVB BOARD OF DIRECTORS MEETING �r At ctcat a-'• MINUTES THURSDAY, DECEMBER 17, 1992 2:00 PM BEST WESTERN-SANDY SHORES 1. Call to Order The meeting was called to order at 2:07PM by Chairman Al Jones. He welcomed the guests present and introduced the CVB's new CEO, Mr. Keith E. Arnold. IL. Roll Call • Chairman Jones called the roll. Directors attending: Al Jones (Chairman), presiding Stern Feinberg, Ricardo Sanchez, Berney Seal, Cathy Harrison, Roy Mayo, Lillian Murray, Shirley Pagan, Bill Pruet, Barbara Sheppard, Erich Wendt and Eugene Urban. Absent: LeRoy Fuglsang and Ed Garza. Attending Staff: Keith E. Arnold, Barbara Cooper, Rob Earley, Pat Rousseau, Dottie Sylvester, Ellen Walker, and Jan Zook. Guests: Al Clark, Elaine Clark, Joe Jessel, Michael Levi, Mo Morehead, and Elaine Mott. III. Replacement of Board vacancies due to resignations during unexpired terms CI Chairman Jones read a letter of resignation from Director LeRoy Fuglsang z (ATTACHMENT A). A motion was made by Chairman Jones to accept Mr. Fuglsang's z resignation which was seconded by Cathy Harrison and approved by the Board. Q It was noted that due to Mr. Fuglsang's resignation, a vacancy for a representative from the hotel industry on the Board of Directors was now available. It was clarified Corpus Christi Area Convention & Visitors Bureau FMB 1201 N.Shoreline. R 0. Box 2664. Corpus Christi.Texas 78403-2664 USA FMB (512)882-5603. 1-800-678-OCEAN, FAX: (512)882-4256 �,a�W CCACVB Board of Directors Minutes December 17, 1992 Page 2 of 7 that the CVB Board of Directors vote amongst themselves for an individual to fill a vacancy which is then suggested to the City Council who must ratify the nomination. It was noted that there were two vacancies on the Board of Directors -- one from Mr. Fugisang's resignation and another from Mr. Sam Poteet's resignation. Mrs. Shirley Pagan reminded the Board that it had changed their by-laws regarding the industry categories represented on the Board. As the by-laws change was not official yet, she suggested waiting on the appointment for one of the openings. A motion was made by Mr. Stern Feinberg and seconded by Ms. Murray for the CVB Board to select an individual to fill only one vacancy at this time. The motion was passed unanimously. A motion was then made by Mrs. Pagan to nominate Mr. E.J. Schanfarber to fill one of the vacancies on the Board. It was seconded by Mr. Feinberg and approved by the ' Board. IV. Resolution pertaining to the management structure of the USS Lexington Museum on the Bay and the Corpus Christi Area Convention & Visitors Bureau Chairman Jones informed the Board about a management structure that had been devised for the USS Lexington and the CCACVB. The structure had been presented to the Lexington Board that morning who approved and accepted it. The Board was notified that the next called meeting regarding the above would be held on January 21st at which they were welcome. At this point, Chairman Jones asked Mr. Arnold to handle the presentation on the proposed management structure (A TTACHMENTBI. Chairman Jones pointed out that it is important to start good solid control over the financials over at the Lexington and stated that within the next 30 days there would be an operating budget for the ship. There would probably be a negative cash flow in the early months but after that it was expected that there would be a solid cash flow on an annual basis. A method of monitoring as well as proceeding cautiously was emphasized. Also a prioritized method of cutting expenditures if trends changed was stressed. There will be set limits on aggregate unbudgeted items. Per previous Board action, attorney John Bell would be involved in any agreements made in order to represent fully the CVB's interests. The structure would not be dependent on personalities but rather would be a "fluic situation". Mrs. Sheppard pointed out that the CVB Board had underwritten costs to get the Lexington operational with the understanding that once the ship became a money- making organization, the Bureau would receive money from the ship to do more marketing. She asked if this was still the case. The response was yes. It was noted by Mr. Joe Jessel, President of the Lexington Board of Directors, that the ship has been receiving grants. Of particular importance was a $100,000 grant recently / �+ vv/ $-` CCACVB Board of Directors Minutes December 17, 1992 Page 3 of 7 received from the McDonnell-Douglas Corporation. It was noted that grant money is usually something that is received "with strings attached". A question arose regarding the approval of unbudgeted items of $2500 or more. It was decided that a $20,000 limit would be the aggregate cap for unbudgeted items. It was affirmed that expanding the CVB Board to include 2 members of the Lexington Board would require City approval. It was also made clear that the CVB Board has ultimate approval of who will be on the Lexington Board. It was acknowledged that there would be a revamping of the By-laws for both the Lexington and the CVB Board of Directors which would employ John Bell's participation. On a motion made by Ms. Harrison and seconded by Mrs. Sheppard, the management structure document was approved by the Board with the $20,000 aggregate limit on unbudgeted items. V. Consolidation Task Force feasibility study Chairman Jones and Director Bill Pruet have, at Mayor Rhodes' request, been participating in a weekly Consolidation Task Force over the past several months. The Task Force was organized to explore the possibilities of consolidated back office operations among the various developmental organizations in Corpus Christi. They recommended to the CVB Board that they participate in a feasibility study that the Task Force wants done. They asked if the CVB would be willing to contribute S2,000 toward the study. The study would entail such things as finding out the facilities requirements of the entities involved by the year 2000, etc. It was noted that the Port has started looking into improvements of the old Parks & Rec building which is located behind the Bureau in the hopes that it could house meeting rooms that might be shared by the entities. It was pointed out that the $2,000 investment would not be directed towards co-mingling the CVB's money with anyone else. A question was posed as to what the end result of the study might be. The "best case" scenario given would be a type of coordinating body to oversee functions of the entities where there would be experts in each of the different areas of focus. Other examples given were a giant computer system with a database everyone could feed off of, a central office pool everyone could use, a single systems manager, etc. On a motion made by Roy Mayo and seconded by Berney Seal it was approved by the Board to invest $2,000 in the feasibility study. VI. Presentation and discussion of Miss Texas USA Pageant Chairman Jones introduced Mr. Al Clark of Crystal Productions and invited him to give a presentation on the Miss Texas Pageant(ATTACHMENT CI. Before proceeding with his presentation, Mr. Clark introduced two other members of Crystal Productions -- iism GaG CCACVB Board of Directors Minutes December 17, 1992 Page 4of7 his wife, Elaine, and their marketing person, Mr. Michael Levi. Among various points and comments, Mr. Clark noted that San Antonio, who had housed the Miss Texas Pageant for ten years straight, wanted the pageant back. He believed that the pageant was responsible for enhancing tourism in San Antonio. He stated that the pageant would be "glamorizing your beautiful city to a potential of 6 million households". Mr. Levi's presentation pointed out that if you reached 6 million households (which was done last year) it would cost less than 1 cent per household. He further explained that it would only cost you 5 cents to reach 736,000 people with fifteen minutes of live prime-time television coverage. A lengthy question and answer period arose following the presentations. One of the major concerns that the CVB Board had with the Crystal Productions document was that it was not clear what they were held responsible for beyond the $40,000 they were willing to commit to the pageant. Elaine Motl, a Corpus Christi events producer (E.M. Marketing), was asked to elaborate on the success of her efforts on negotiating and putting together funds for the Miss Texas Pageant. She listed the various commitments made to-date by the local businesses. Upon request, Ms. Motl gave Mr. Arnold a copy of Crystal Production's contract which was then reproduced and distributed to the Directors (ATTACHMENT DI. A motion was made by Mr. Seal and seconded by Mr. Pruet to sign the contract for the Miss Texas Pageant this year. It was added to the motion to not exceed$40,000 for Crystal Productions and$10,000 for Elaine Moth After further discussion, it was decided an amendment on Crystal Production's document and contract was needed so the motion was withdrawn by Mr. Seal. It was noted by Mr. Levi that the make-up of the people who watched the Miss Texas Pageant last year was a "heavily young adult market" of which it was specified was 60-62% female. The point was reiterated that not only would the CVB be giving Crystal Productions $40,000 but that it would also be paying 510,000 for Elaine Motl's services. In light of this, the CVB wanted the contract to state that they would make a "best effort" to help Elaine should she incur problems but that they would not be held responsible for any additional expenses (Le. a sponsor drops out and is not replaced). Mr. Arnold was asked to state the Board's viewpoint regarding the preceding discussion on the Miss Texas Pageant: "We are willing to invest 540,000 at front end. Additionally, we'll pay Elaine; our total expense to the Miss Texas Pageant will be 550,000 with no indemnity guaranteeing any of the other facilities", It was pointed out that $40,000 had been budgeted for the Miss Texas Pageant in light of a 520,000 rebate coming back in. oweppeattotL CCACVB Board of Directors Minutes December 17, 1992 Page 5of7 A motion was made Mr. Feinberg to end the relationship with Crystal Productions which was seconded by Mrs. Pagan. Crystal Productions was asked if the CVB would have control in the look of Corpus Christi during the broadcast of the Miss Texas Pageant. The response was that they would be able to have input. Mr. Feinberg asked for a roll call on the motion he had made. The vote was as follows: Chairman - no Feinberg - yes Sanchez - no Seal - no Harrison - yes Mayo - no Murray - yes Pagan - yes Pruet - no Sheppard - no Wendt- no Urban - no A motion was then made by Mr. Urban and seconded by Mr. Pruet for the CVB to participate in the 1993 Miss Texas Pageant with a limitation of $40,000 to Crystal Productions and a best efforts expression to deliver on the requirements they are outlining through a CCACVB separate contract with Elaine Moth A brief discussion arose in which it was decided that the CVB would work with their attorney to rework the Miss Texas Pageant contract and agreement. A roll call was taken on the motion made by Mr. Urban. The vote was as follows: Chairman - yes Urban - yes Wendel - yes Sheppard - yes Pruet - yes Pagan - no Murray - no Mayo - yes Harrison - no Seal - yes Sanchez - yes Feinberg - yes r Coopielektt CCACVB Board of Directors Minutes December 17, 1992 Page 6 of 7 VII. Discussion of American Power Boat Association "Shoot-Out" Elaine Motl gave a brief report of her efforts in bringing the APBA races to Corpus Christi for this coming year. She asked for $20,000 from the Board in order to pay for television coverage. The Board was willing to allot her $10,000 with the understanding that they would try to get other participants for the remaining $70,000 funding. They asked Ms. Mott if she could proceed with that kind of commitment from the Board. Ms. Motl's response was yes. A motion was made by Mr. Urban for the CVB to proceed with the APBA races by investing $70,000 which would be their top commitment to the races. It was seconded by Ms. Harrison and approved unanimously by the Board of Directors. VIII. President's report Mr. Arnold gave a brief overview of his efforts during the past several weeks. He noted the Hospitality Industry Input Sessions that he had held this past week which provided valuable information for revision of the marketing plan and pointed out that the retail segment would be held after the holidays. He felt cooperative advertising would be important among the various industries and noted that there would be a need to call on travel agents once a package was put together on Corpus Christi. A commitment was made to send the Board of Directors a summary report of the hospitality input sessions that had been held to-date. A newsletter entitled "Tidings" (ATTACHMENT E) was distributed. It was explained that the newsletter will be published monthly highlighting activities of the CVB departments. It was noted that a special event had recently been held for the Sparklers who have contributed 24.000 hours over the past 3 years (which would have totaled close to $250,000 in salary at 310/hour). Mr. Jim Leister had been persuaded to extend his stay with the CVB as Chairman of the Sparklers. Mr. Arnold also noted an Austin event that he had recently attended which involved 80 associations with 180 people in attendance as well as the media exposure he has received. He reminded the Board of the CVB's holiday party which would be held later on that evening at which they were welcome. IX. Old Business It was decided by the Board that their monthly meetings would be held every third Tuesday of every month beginning at 3PM (except for January, which will take place on January 21st). 000dalger CCACVB Board of Directors Minutes December 17, 1.992 Page 7of7 X. New Business Chairman Jones recommended that the Board continue to fine-tune the salary package for the CVB CEO and suggested handling the matter at a future time. Xl. Adjournment to Closed Session Ther being no other business to cover at this time, a motion was made by Chairman Jones to adjourn the meeting at 5:15PM. Dottie Sylvester Recording Secretary a4Pa