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HomeMy WebLinkAboutMinutes Corpus Christi Convention & Visitor Bureau - 05/25/1993 • a • SM • coop- It CCACVB BOARD OF DIRECTORS MEETING MINUTES TUESDAY, MAY 25, 1993 3:00 PM CCACVB BOARD ROOM, 2ND FLOOR !. Call to Order The meeting was called to order at 3:10PM. Chairman Jones thanked the other Board members for changing the Board meeting date from May 18th to the 25th. He explained that last Tuesday important Texas legislature was being handled which would affect community banks. II. Roll Ca!! Chairman Jones called the roll. Directors attending.: Al Jones (Chairman), presiding Stern Feinberg, Cathy Harrison, Roy Mayo, Lillian Murray, Shirley Pagan, Bill Pruet, Ricardo Sanchez, E.J. Schenfarber, Berney Seal, Barbara Sheppard, Eugene Urban and Erich Wendt. Absent: None. Attending Staff; Keith E. Arnold, Rob Earley, Marilyn Pierce, Pat Rousseau, Dana Stephens, and Dottie Sylvester. Guests: John Bell (Wood, Boykin & Wolter), Fred Dotts (MDL), Ron Fulton (Channel 6), David Gutierrez (KZTV Channel 10), Carlos Haney (KZTV Channel 10), Holly Osborn (MDL), and Jim Steinberg (Caller Times). Ill. Motion to Approve Minutes of April 20, 1993 Board of Directors Meeting The above minutes were moved by Berney Seal, seconded by Gene Urban and approved by the Board. SCANNED Corpus Christi Area Convention & Visitors Bureau • 1201 N. Shoreline, P. 0. Box 2664.Corpus Christi.Texas 78403-2664 USA !NCNB (512)882-5603, 1-800-678-OCEAN, FAX: (512)882-4256 2 IV. Presentation of Proposed Marketing Plan & Proposed Budget for FY 93-94 Chairman Jones asked Lillian Murray, Chairman of the Marketing Committee, to introduce the Marketing Plan for FY 93-94. Ms. Murray began by stating that the Marketing Plan being brought before the Board today was short term. It would be the basis for developing a long term strategic plan. She noted that the Marketing Committee responsible for today's Marketing Plan had been designed to incorporate marketing people from general business as well as hotels and attractions. Earlier in the year a series of meetings had been held with the hospitality industry. The input from those meetings was used to come up with a structure that the newly formed Marketing Committee could work on. Yesterday, the hospitality industry was shown the Marketing Plan being presented to the Board today. She felt the plan had "clearly defined goals and objectives". At this point, Ms. Murray asked Mr. Arnold to present the plan to the Board (ATTACHMENT A). It was pointed out that a "fall out" in large national conventions has been a trend lately and that this puts Corpus Christi in a good position to market to those groups. Southwest/Regional Associations were noted as including associations which involve Texas and 3-4 other states. Mr. Arnold stated that the Board would be sent under separate cover a list showing staff members responsible for the specific target markets. For 1994, separate guides would be done for meeting planners, tour operators and visitors. It was pointed out that a Washington, DC representative firm would be sought due to the many major associations which have offices there. They intend on contracting with a firm that handles 2-3 noncompeting cities and hotels. The goal is for Corpus Christi to have a "top-of-mind awareness"in DC. The Bureau would not be interested in a large representative firm but rather a "smaller, hungrier firm". The cost for such a firm would be approximately S15,000 - 18,000 a year. The firm would be a lead generator for the CCACVB. Trade show attendance is being cut down by the Bureau to include only those shows that have a good return on investment. The Bureau suggested having pre and post tradeshow events, i.e. co-sponsoring a hotel suite with a hotel, having a special boat cruise for people from the trade show. It was pointed out that pre-appointments can be set-up with tour operators and group leaders at trade shows. It was noted that an increased tourism traffic from Mexico is available to the CVB. As it is still an international market, they felt it would best be opened up with someone strong in that market who would also know the "political powers that be". The Bureau noted that it would like to solicit bids from representative firms for this purpose. The CVB would like to create an additional $ 100,000 advertising fund from the area hotels. They also stressed that they need to find out how many visitors Corpus Christi n 3 really has. The best way to determine this would be to allocate a budget for research. The research wou/d also indicate what the Bureau's productivity is. They expressed an interest in having the following done: o Point of origin studies o Expenditures in spending patterns o Finding out the CVB's marketing effect o Conversion study -- is it worth it for the CVB to be doing the advertising it's doing? Before the printing of the Marketing Plan, the CVB envisioned receiving 5100,000 from the USS Lexington and $ 100,000 from hote/s, attractions and the visitor industry for advertising purposes. The Lexington has committed $ 100,000 to the CVB for advertising. /n terms of media schedules, September will be the kickoff month for the off-season while April will be the kickoff month for the on-season. They felt strongly that "advertising works for leisure travel". Regarding the Budget (ATTACHMENT B), it was noted that it is preliminary. The Bureau will not need it approved until June. A finalized Budget will be sent to the Board members prior to the June Board meeting. It was pointed out that under account #5010, a provision for 4% raises was being allotted although that did not necessarily mean everyone on staff would receive a 4% increase in salary -- it was just being allotted. Regarding account #7370 -- this would be set aside for a "lure piece" for tour operators and meeting planners. It would consist of a four color brochure which wou/d get people to think about Corpus Christi in a graphic, image- building manner. A pay-for-performance study of the CVB was also being proposed. It was reiterated that a $50,000 cap had been put on local events at the Board's Retreat. The question was raised if this cap would apply to the Los Barcos fund. $16,000- $20,000 would be needed to upgrade the Bureau's software and hardware. It was added that an office expansion plan was also needed by the Bureau to redo the visitors desk, setup a conference room for 4-5 people, etc. When asked for her thoughts on the Marketing Plan, Holly Osborn commented that she felt it was a "good framework". Ms. Murray agreed and added that "we need to convince our prospective partners to join with us". It was confirmed that the visitor inquiry level is up compared to last year. There has been a 59.4% increase in inquiries. On a motion made by Shirley Pagan and seconded by Gene Urban, the Board of Directors approved adoption of the FY Marketing Plan. Gam 4 V. Approval of CVB Bylaws Chairman Jones asked John Bell to make a presentation on the above (ATTACHMENT C). Mr. Bell noted that the changes involve the promotional pool of associate nonvoting members, adding six additional directors from affiliated agencies and adding an Executive Committee which would be comprised of three officers and three directors at-large. Chairman Jones inquired about establishing a standing Audit Committee for the Board. Mr. Bell responded that a Finance or Audit Committee is a "typical function" for a Board. Mrs. Pagan brought up a question regarding categories. It was her understanding that the Board had previously discussed having more business people incorporated into the makeup of the Board rather than limiting itself to specific categories. The response was that the Board is adding six extra people to the Board who would be nonvoting advisory members. It was verified that the Board is currently short one representative each from the hotel industry and the restaurant/attractions industry categories. It was suggested that the Board adopt the Bylaws "as is"and then make changes later on. Mr. Bell was asked if the Chamber membership could be left "as is". His response was that a legal requirement has been ignored for the last six years. By current Bylaws, Chamber membership can legally vote on changes to the CVB Board Bylaws, changes to the organization of the Bureau and their current method of selecting members. A/though the Chamber doesn't "really care"about exercising its voting rights, the legal matter should be "tied up". He added that the Board could adopt the proposed Bylaws and then deal with the City and the Chamber. Chairman Jones asked if anyone wanted to entertain adding a standing Audit Committee of the Board. A motion was made by Gene Urban for the Board to establish a standing Audit/Finance Committee to the Board which would be responsible for general financial oversight and review of the organization. The motion was seconded by Lillian Murray and approved by the Board. It was clarified that two 3 year terms was "not written in stone". Regarding Board membership, it was stressed that three absences would be allowed per fiscal year. If a Board member were to miss three Board meetings, he or she would receive a notice after missing the third meeting. After missing the fourth meeting he would forfeit his place on the Board. If after four absences someone wanted to remain on the Board, he would have to go before the City Council and petition their request. Mr. Urban pointed out that the Bylaws stipulate a person who for 91 days is no longer employed in the category they represent on the Board, must be dropped from Board membership. It was determined that the Board itself cannot "flip"a person from one category to another -- the authority to do so lies with the City Council. nn :M 5 Mr. Feinberg brought up the issue regarding term limitation on the Board. He felt that turnover was healthy as no one is "indispensable". He asked if the Board wanted such controls built in. The response was that if someone has not been beneficial to the Board they wouldn't be reappointed. A motion was made by Mr. Feinberg to set two term limits. The motion was not seconded. A motion was made by Ricardo Sanchez to accept the Bylaws as proposed. The motion was seconded by Cathy Harrison and approved by the Board. VI. CCACVB Financial Report (ATTACHMENT D) Mrs. Pagan noted that she had recently met with Pat Rousseau and Keith Arnold regarding a decision on the auditor for next year. It was decided that Flusche, Van Beveren and Kilgore would do the audit for the CVB and the Lexington. The CVB's audit would cost approximately $6,000. A motion was made by Mr. Urban to have Flusche, Van Beveren and Kilgore handle next year's audit for the CVB. The motion was seconded by Bill Pruet and approved by the Board. Chairman Jones reiterated that the Budget before the Board today was "preliminary" and that is needed work done on it. He added that the Lexington's Budget will mirror the CVB's fiscal year. The Lexington has been asked to wait on adopting a Budget until July. That will enable them to find out more about what traffic is like in order to "get a better handle on things". The following suggestions were approved by the Lexington Board: o Out of net revenue for fiscal year 93, money be set aside for next year's debt service (5260,000) to be paid to the Bureau in advance as available. o 5150,000 of their Budget be allocated to advertising of the Lexington ($ 100,000 would be used for direct marketing, some would be used toward their Marketing Director's salary, etc.) VII. Departmental Reports Mr. Arnold briefly reviewed this month's "Tidings" (ATTACHMENT El issue which he felt was becoming a "consistent newsletter". He pointed out that the Convention Department had recently booked two large groups (Texas Society of Hospital Pharmacists plus one military group). He thanked Pat Rousseau for her work on the Budget within a short period of time. Dana Stephens pointed out that the date for the BBQ in honor of the Las Carabelas had changed from June 19th to June 17th. Erich Wendt thanked Ann Neese and Kim Lemley for their efforts in overseeing the visit of 4600 German sailors to Corpus Christi. Rob Earley noted that 237,000 visitors have been onboard the Lexington since October 14th. In May alone, the ship had 40,000 visitors. Barbara Sheppard stated that the Area Council would be making a Team Tourism presentation tomorrow at 3PM at Port Royal. It will be hosted by the Port Aransas Chamber of Commerce. She invited the Board of Directors to attend. GarLjitekitt 6 VIII. Las Carabelas Resolution The above was not handled at this time. Mr. Arnold stated that it would be ready for the ships arrivals in June. IX. Old Business No old business was brought forth. X. New Business Chairman Jones informed the Board that he had received a memo from the Las Carabelas Board regarding ratification of their Board membership. The names of the Board were read (ATTACHMENT Fl. On a motion made by Mr. Urban and seconded by Mrs. Sheppard, the Board approved the Board of Directors for the Las Carabelas Columbus Fleet Association. Chairman Jones next read a listing of people that the Lexington wanted elected or re- elected to its Board(ATTACHMENT G). On a motion made by Mr. Pruet and seconded by Mr. Urban, the Board approved the people submitted for the Lexington Board of Directors. Chairman Jones stated that he wanted to appoint a Nominating Committee made up of five people on the Board of Directors. He added that he wanted the Committee to be chaired by Lillian Murray with E.J. Schanfarber and Bill Pruet on the Committee. He gave Ms. Murray the authority to select two other members of the Board to be on the Committee. A question arose regarding having people on the Nominating Committee who's term would either expire or who would be up for renomination. At this point, Chairman Jones read the current list of the Board of Directors and their expiration dates (ATTACHMENT Hl. It was noted that the slate of nominations would be due at the June Board meeting. A question arose regarding the package guide. Mr. Arnold stated that he had not received a report from Noel Robin to present to the Board for this month. It was noted that by the end of June 74,000 package guides will have been distributed. Another question arose regarding the upkeep of the Lexington. Mr. Earley informed the Board that 25% of the Lexington's staff paints the ship (13 painters). One third of the total maintenance budget goes to painting the ship. As it takes four years to paint the entire ship, it is an ongoing process. On behalf of the Board of Directors, Chairman Jones officially wished good luck to the Pagan racing team. Mrs. Sheppard remarked that the attitude of the CVB employees was "upbeat". She has sensed that the present staff is "del ed" to be a part of the CVB. God 7 XL Adjournment The meeting was adjourned at 4:29PM. Dottie Sylvester Recording Secretary Oa 0