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HomeMy WebLinkAboutMinutes Corpus Christi Convention & Visitor Bureau - 06/22/1993 ar3 - 1 4 SM 004 ' CCACVB BOARD OF DIRECTORS MEETING MINUTES TUESDAY, JUNE 22, 1993 3:00 PM CORPUS CHRISTI MARRIOTT BAYFRONT BALLROOM "C", THIRD FLOOR 1. Call to Order The meeting was called to order at 3: 10PM. II. Roll Call Chairman Jones called the roll. Directors attendinq: Al Jones (Chairman), presiding Stern Feinberg, Cathy Harrison, Lillian Murray, Shirley Pagan, Bill P-ruet, Ricardo Sanchez, E.J. Schanfarber, Berney Seal, Barbara Sheppard, Eugene Urban and Erich Wendt. Absent: Roy Mayo. Attending Staff: Keith E. Arnold, Rob Earley, Marilyn Pierce, Pat Rousseau, Dana Stephens, and Dottie Sylvester. Guests: Channel 3 reporter, Channel 6 reporter, Fred Dotts (MDL), Elaine Motl (E.M. Marketing), Holly Osborn (MDL), and Jim Steinberg (Caller Times). Ill. Motion to Approve Minutes of May 25, 1993 Board of Directors Meeting W On a motion made by Erich Wendt which was seconded by Bill Pruet, the above minutes were approved by the Board. Q IV. Presentation of Proposed Final Draft Budget for FY 93-94 CO Keith Arnold began by stating that the above (ATTACHMENT A) had minimal adjustments in it from the proposed budget the Board had received at its last meeting. Corpus Christi Area Convention & Visitors Bureau MM��� 1201 N. Shoreline, p IP G Box 2664. Corpus Christi.Texas 78403-2664 USA 'B (512)882-5603, I-800-678-OCEAN, FAX: (512)882-4256 2 The Addendum (ATTACHMENT B) to the budget was being provided for clarification on issues shown in the budget. It was stressed that account #6020 was "imperative" for the Bureau as a better job of marketing in Mexico is needed for Monterrey and the State of Tamaulipas. The CVB will not proceed with getting a representative firm for Mexico until they have three competitive bids. As there are approximately 3500 associations headquartered in Washington, D.C. the Bureau plans on seeking a representative firm to help with that area as welt. Regarding account #5010 it was noted that the Bureau plans on placing "more dollars in direct sales". A question arose regarding salaries and where the CVB "stacks up" with percentage-wise against base salary. Pat Rousseau offered to call surrounding CVBs to find out comparative figures. Erich Wendt pointed out that some CVBs might include their vacation time in their figures. Mr. Arnold asked if the Board wanted to specifically look at the benefits package itself. Gene Urban responded by stating only the benefits the Board has control of should be looked at rather than mandated ones. It was determined an informative piece on benefits would be presented by Mr. Arnold to the Board at their July meeting. It was noted that the Bureau cannot join with what the City has as the Bureau is a not-for-profit corporation as opposed to a municipal body. Mrs. Rousseau added that a salary survey had been done three years ago which showed the CCACVB on the lower end of the scale. It was stressed that the Addendum on account #7040 was an indicator to the Board. "We have a high amount of money committed this year to booked conventions in order to be competitive ($90,000). We anticipate only S30,000 coming back via rebates -- we don't want to go over 4% of our budget. " He has asked the Bureau staff to print out all such commitments to the year 2,000. An example of local event/hosting costs was given of the Texas Municipal League which cost the Bureau $70,000. As a rule, money is not offered "carte blanche" to associations. Rather, the Bureau looks at what Corpus Christi's competitors have to offer before making any such decisions. It was noted that large conventions cannot be handled solely by Sparklers but requires additional paid registration assistance. The question was asked as to who signs off on final deals. The response was the Convention Department head. It was asked whether there was any threshold amount that would require the President's approval. The response was that that would be addressed in the Sales Policy & Procedures Manual being developed by Marilyn Pierce. Another example of subsidizing was given of the Water Board which will meet next year in July. To lure them away from South Padre Island to Corpus Christi, the offer has been made to provide the Convention Center at a total cost of $5,000. Account #7080 was addressed next. Currently there are 6-8 hardware components of personal computers needing replacement, i.e. terminals going out. The Board was welcomed to take a look at the computer consultant's report which recently evaluated the Bureau's software needs. In her report, the consultant recommended Convention Bureau 2,000. A question was asked as to how old the hardware at the CVB was. The response was four years although the file server has recently been updated and cabling has been adjusted. It was added that the eight original workstations are "starting to die"and will need replacement. It was stated that the Convention Bureau 2,000 sets up on a LAN, works with Novell and can be integrated with the Lexington. :M Gam 3 Chairman Jones expressed a concern with a four year life span on the personal computers. The company from which the Bureau purchased the computers quit servicing the hardware soon alter the purchase. It was added by Mr. Arnold that the Bureau's system needs a "comprehensive fix rather than a bandaid". Regarding account #7100 -- it was noted that it is a lot less expensive to build your own stock of photography and develop it rather than purchasing it from others. A contract would be established with a local photography to do the photography. For account #7170 -- it was noted that $35,000 was being recommended as it is "time to nail down an index for Corpus Christi". The market research would not only be verifiable and third party but would show how the Bureau is producing and what that means for the community. It was felt regarding account #7130 that more money should be spent in bringing qualified customers to Corpus Christi, i.e. convention planners, travel writers, tour operators, etc. Regarding account #7140 -- the Bureau plans on being more selective on tradeshows it attends. They will show the Board what each trade show nets. It was noted that with Convention Bureau 2,000 the capability would exist to show how many trade show contacts become conventions, motorcoach tours, etc. Account #7150 would have a cut in budget from last year. For account #7370 a Visitors Guide and Destination Planning Guide at no cost would be the Bureau's goal. They would have control over the creative and the "look" of the guides. The floor was opened for a question and answer period regarding the budget and addendum. E.J. Schanfarber asked if a list and schedule of trade shows would be available. The response was that they are in place and would be out shortly. Cathy Harrison asked why figures were so high under local events in October and April. The response was that those months would have big conventions in town to whom the Bureau has committed a lot of dollars to. In October 7993 the Worldwide Church of God will be in Corpus Christi while in April 1994 the Texas Library Association will be in town. Ricardo Sanchez asked if a spreadsheet was available that would show increases and decreases between the '93 budget and the '94 budget. Mr. Arnold stated that the Bureau would be able to provide such a spreadsheet. He also added that, in general, the '94 budget has for the most part reduction across the board except for advertising and promotional materials. Barbara Sheppard had a question regarding the $ 700,000 from the Lexington. It was her understanding that the money from the Lexington would be the CVB's. The response was that the Lexington: 1. Agreed to prepay the Bureau's commitment to the debt service for FY '94 2. Agreed to commit $ 100,000 to the Bureau for advertising 3. Agreed to pay the salary for the Marketing Director of the Lexington 4. Committed $20,000 to the Bureau for publications. Shirley Pagan asked about the financial statements for the Lexington for the months of April and May. It was clarified that to-date there is no budget for the Lexington G0 G/at+ 4 yet. The CVB has just recently received the financial statements for May. The Board will be sent financial statements for both months. Mr. Schanlarber felt that a wage survey and competitive benefits analysis was needed for next month's Board meeting. At this point, Chairman Jones asked Mr. Schenfarber to head a Budget Task Force that would work on the above in the interim. Mr. Sanchez a/so agreed to work on this Task Force. It was also pointed out that the City Council would need a draft form of the Bureau's budget before the next CVB Board meeting. Mr. Schanlarber will get together with Mrs. Rousseau to provide the City with such a draft. On a motion made by Mr. Feinberg which was seconded by Mrs. Sheppard, the Board gave provisional approval to the Proposed Final Draft Budget for FY 93-94. V. Slate of Board of Directors Nominees for FY 93-94 Lillian Murray, Chairman of the Nominating Committee, thanked the other Committee members for their input. In all, the Committee received 30 individual recommendations for the vacant Board seats. The Nominating Committee met on two separate occasions to go over the nominations. They felt that Padre Island representation was important as the beaches are Corpus Christi's number one attraction. They also felt a representative was needed who could tie in with the Winter Texan market. After narrowing down the recommendations, twelve candidates were interviewed for the Board slots. The final proposed slate was provided in today's Board packets (ATTACHMENT C) which incorporated six new appointments -- Ralph Ehrlich (for the Winter Texan contingency), Russ Tracy (for Padre Is/and), Dave Coggins(for the Padre Island business contingency), Marco Arredondo (an outstanding representative of small business in tourism as well as the President of the Corpus Christi Hispanic Chamber), Rex Kinnison (an active volunteer in the community who, as a CPA, can also provide the Board with needed financial expertise) and Jean Titus (General Manager for American Airlines). More candidates were submitted for the Business/Professional category than any other. Although only one restauranteur is represented in the Restaurant/Attractions category, it was felt by the Nominating Committee that an Advisory Council of one year terms should be appointed for restaurants. A/so pointed out was the reclassification of two current Board members- - Al Jones from the Community At Large to Business/Professional and Lillian Murray from the Restaurant/Attractions Industry to Community At Large. Ms. Murray asked for the Board's approval. Whatever slate the Board approved would then be directed to Ed Martin the Board's ex-officio member representing the City Council. He in turn would present the nominations to the City Council at their July 6th meeting. It was suggested that under the Area Council category, Chairman of the Area Council be submitted rather than an individual's name as the Area Council has not yet voted on its Chairman for next year. On a motion made by Ms. Murray which was seconded by Mr. Feinberg, the Board approved the slate of nominees for the next fiscal year. In addition to the nominations, two more recommendations were made to the Board of Directors by the Nominating Committee. They believed that a term limitation policy needed to be set. They felt it would be a "healthy move to ensure fresh ideas". It Golisat 5 was added that many of the City boards have such limitations. Ms. Murray stated that the Nominating Committee would like the CVB to direct their attorney to change the Bylaws reflecting this change in policy. After a brief discussion it was decided to change the wording of the recommendation (ATTACHMENT D) from "two consecutive terms" to "no more than six years". Ms. Murray added that John Bell would need to address this change in accordance with City policy. On a motion made by Berney Seal and seconded by Mrs. Pagan the Board approved the term limitation policy. It was mentioned by Ms. Murray that the Nominating Committee also plans on recommending to the City Council a slate of officers for next fiscal year's Board of Directors and Advisory Council. VI. CCACVB Financial Report Mr. Arnold noted the variance report (ATTACHMENT EI will likely be restricted to a plus or minus 2% of budget to actual expenses by the end of the fiscal year. He felt it would more likely be 1%. He also pointed out the monthly balance sheet is being included in the financial report package. V/I. Departmental Reports (ATTACHMENT F) Mr. Arnold reiterated that Marilyn Pierce is busy putting together a Sales Policy & Procedures Manual. The Bureau staff recently had an office-wide cleanup and renovation with sales and service personnel offices now located on the same floor. Next week the sales staff and President will be participating in an off-site sales training program being done by Peter Ferretti, a consultant with expertise in hospitality sales. Currently, Mr. Ferretti is working with the Texas State Aquarium and Las Carabelas. It was pointed out that the Bureau is using area attractions to sell meetings to come to Corpus Christi with the Lexington as it's "hook". Mention was made of the "Meetings & Tour"magazine which were provided in the Board's packets. That issue will be passed out by the Bureau staff at TSAE this week. In addition to Bureau Staff, six hotel personnel will also be attending TSAE. Bureau sales and management staff met with sales and management staff of the Bayfront Connection in order to develop a camaraderie and stronger working relationship. Mention was also made of the New York Times photo of the Santa Maria sailing by the Lexington. It was noted that a new head teller had been hired for the Lexington and that development of new Policy and Procedures for cash management for the Ship was underway. The inquiry level at the Bureau was emphasized as being "massive". It was further noted that the huge demand started with the Bureau's summer advertising campaign. Mr. Arnold thanked Mrs. Rousseau for her work on the budget and Dana Stephens for her work on several Public Relations programs. A question arose on how many people have come to Corpus Christi through the package guide. The response was approximately 200. An off-season package guide will be out in September. It was also noted that people have been calling the package operator for off-season rates. tga • 6 VIII. Old Business Elaine Motl gave a report on the Miss Texas Pageant. A financial statement for the East-West Powerboat Shoot-Out was passed out (ATTACHMENT GI which had been prepared by KPMG Peat Marwick. It was pointed out that Peak Marwick had been the "driving force" behind the event. They not only contributed $25,000 towards the event but supplied other services free of charge, i.e. financial statement, phone cal/s. It was explained that cash contributions were sponsorships and added that some of the racers had also taken part in sponsoring the event. The American Powerboat Association had cut their fees in half as this was their first race of the year and they did not want it canceled. For the first time in three years the event did not end in debt. IX. New Business Rob Earley noted that Dr. Pepper and 7-UP had done a 15 minute film onboard the Lexington for their stockholders. He noted that Disney had "come and gone"and that he hadn't heard anymore from them. Dana Stephens added that they would be back in Ju/y if the Lexington was a possible selection. Chairman Jones brought up the proposed ban on smoking in restaurants being considered by the City Council. He added that he has received a number of phone calls the past few days expressing concerns about the ban that were both pro and con. He asked if the Board had a sense of whether or not it should get involved in the issue. Mr. Pruet felt that the Board didn't have a choice to not get involved as restaurants and conventions will be affected by the ban. He thought the City Council would appreciate the CCACVB Board's input in providing information and experiences of other cities and CVBs on this issue. The question arose as to whether there were any other cities involved in such a ban. The response was that there are some cities in California and that the El Paso Convention Center nonsmoking ban has been changed to allowance of smoking at the request of a convention. Mr. Pruet felt that "if we're dedicated to nurturing the tourism industry, we need to be sensitive to issues affecting our restaurants". It was mentioned that the proposed nonsmoking ordinance would not apply to the Convention Center. Mrs. Sheppard felt that the ratio of smoking vs. nonsmoking in restaurants should be "flipped" to have 75% nonsmoking and 25% smoking. Mr. Feinberg believed in the short-term the ban would hurt Corpus Christi but not in the long run. He felt the Board ought to oppose it right now and follow someone else's lead on it, i.e. San Antonio or Houston. Mr. Earley added he thought the ban would lead to other areas, i.e. softball areas and have a "snowball effect". Mr. Schanfarber remarked that the Bayfront Connection has conventions that want no smoking and some that want smoking available. He added, however, that they have had to increase the number of their nonsmoking rooms dramatically over the last twelve months. Because of the size of the Bayfront Connection hotels, there is enough room to accommodate either policy. He believed the ban would hurt them short-term which could mean up to five years adding that it "could kill smaller restaurants". Mrs. Rousseau stated that if Corpus Christi is going after the Mexican Gatjirc�Gkt 7 and South American markets, they should keep in mind that these countries have a high percentage of people who smoke. Mr. Feinberg suggested that the City Council be told "we don't agree with your proposal but how about a 75%/25% ratio of nonsmokers/smokers". Mr. Seal urged the Board "let's lead one time"reminding them that smoking is a life or death effecting matter. Mr. Arnold stated that there is no broad statistical data to show that a smoking ban would hurt and pointed out that the majority of people in America are nonsmokers. Mr. Schenfarber felt that the tobacco industries would look poorly on the smoking ban. Chairman Jones recommended that a pro and con paper be put together which would be presented to the City Council before their vote on it. The Board agreed to ask Mr. Arnold to put together such a paper that would present the facts on the issue. Mr. Arnold stated that he would send the paper to the Board and give them time to look it over before sending it onto their CVB Council liaison (Ed Martin). X. Adjournment The meeting was adjourned at 4:55PM. Dottie Sylvester Recording Secretary Go