HomeMy WebLinkAboutMinutes Corpus Christi Convention & Visitor Bureau - 10/19/1993 Arri V
THE ISLES OF TEXAS
CCACVB BOARD OF DIRECTORS MEETING
• MINUTES
•
TUESDAY, OCTOBER 19, 1993
3:00 PM
CONVENTION & VISITORS BUREAU, 2ND FLOOR BOARD ROOM
L Call to Order
The meeting was called to order at 3:05PM by Chairman Jones.
11. Roll Call
Directors attending: Al Jones (Chairman), presiding
Marco Arredondo, Rosario Chapa Carrizo, David Coggins, Ralph Ehrlich, Rex Kinnison,
Lillian Murray, Bill Pruet, E.J. Schanfarber, Barbara Sheppard, Eugene Urban and Erich
Wend). r
Absent: Cathy Harrison, Ricardo Sanchez and Jean Titus.
Attending Staff: Keith E. Arnold, Chuck Bradley, Mary Etta Brundidge, Susan Doss
(on loan from Peat Marwick), Marilyn Pierce, Dana Stephens, and Dottie Sylvester.
Guests: Channel 3, Lee Collier (San Jacinto Title),Mo Morehead (MDL) Holly Osborn
(MDL) and Brian Stone.
Chairman Jones asked the two candidates from the Leadership of Corpus Christi to
introduce themselves (Lee Collier and Brian Stone).
Motion to approve Minutes of September 21, 1993 Board of Directors Meeting
0 On a motion made by Lillian Murray which was seconded by Barbara Sheppard, the
1—U above minutes were approved by the Board.
IV. Joint Meeting - Consolidation Task Force Study
O Chairman Jones made reference to the above meeting which a large part of the Board
had recently attended. A summary report of the Task Force on Consolidation of the
EDC, Chamber and Bureau had been presented at that time. That report was being
presented to the Board again today to address any questions or concerns regardir4fl,,Nkk::VV
it as well as endorsing it. �����
CORPUS CHRISTI AREA CONVENTION VISITORS BUREAU
1201 N.SHORELINE.P.O.Box 2664.CORPUS CHRISTI.TEXAS 78403.2664 USA • 512.882.5603 • 1-800-678-OCEANI6232) • FAX 512-882.4256
7 111102
He noted that a 24 member Interim Board of Directors would be put together from the
three organizations with each organization being represented by 8 individuals from
their respective Boards.
A question arose regarding the use of funding that goes to the Bureau. The response
was that State law governs the use of bed tax and that the Alliance would comply
with that law. Fund accounting mechanisms would also be maintained. Money would
be co-mingled only in paying for administrative functions.
Another question addressed whether staffs would be combined. The response was
that the Task Force had started with a clean sheet of paper and designed a skeletal
organization chart of what was needed. It was uncertain how this would affect
staffing although it was felt that skill positions would not diminish but rather grow.
It was asked who would develop the equation of the formula of the occupancy tax
and if the formula could be changed on the Bureau. The response was that the
contract the Bureau operates under had been predetermined and put in place several
years ago. If the contract needed to be renegotiated the Alliance Board would handle
that. It was emphasized again that State law determines the occupancy tax. It was
also pointed out that 8 individuals from the CCACVB Board would be on the Interim
Board and would be a part of developing scenarios of all working relationship
procedures. If a "final deal" was struck it would come back to the Bureau for
approval.
Mr. Pruet stated that his primary concern was that the tourism industry represented
by the Bureau be as well off if not better as a result of the Alliance. He stressed that
the Bureau could give recommendations to the Interim Board and that the CVB is the
most financially viable of all 3 agencies involved in the consolidation.
Dave Coggins shared feedback he has received from the Padre Island Business
Association. They felt that the word "bay"focused on the bayfront. Their suggestion
was to have a Corpus Christi strategy as opposed to a bayfront or island strategy.
The entire limits of the City and its surrounding area should be embraced. They also
felt that the CEO of the Alliance should report to the Board rather than the Executive
Committee. Chairman Jones noted that an executive committee is comprised of Board
members which could not usurp the rightful position of the Board. He agreed that
there should be a community-wide focus.
It was explained that a marketing firm would be chosen by the Interim Board to find
an "all encompassing name" for the Alliance.
Mrs. Sheppard felt that the focus and interest of a chamber is different from that of
a CVB. She expressed concern that the funding worked out for the Bureau would be
looked at less favorably with the consolidation.
Mr. Urban responded that "none of us know where it'll be. If it doesn't do what we
want it to do, we need to stand up and say something". He made a motion to
approve moving forward with the consolidation but encouraged the Board to not close
their mind to changing direction if needed. "If it doesn't work out say we don't want
4 3
to go and protect the Bureau. " Mr. Coggins seconded the motion with the comment
"I'm not in favor of consolidation".
Before the motion was voted on, Mr. Pruet interjected his thoughts on the matter. He
pointed out that although the tourism industry is in good standing and receives
excellent support from the existing City Council, councils change. Mayor Rhodes has
already stated she will not run for Mayor again and Councilmen McComb and Martin
may not run again as well. He brought it to the Board's attention that the next council
could vote "that the CVB doesn't operate anymore". "If we can forge a stronger
contract which is less political and strengthen the industry, there's stability to be
gained with the consolidation. "
Mr. Arnold was asked to comment on the relationship between business development
and visitor development. With a co-board the CVB could focus on what they need
more of which in turn would enable them to be better at what they do, i.e. air service.
Another example mentioned was the development of an outlet mall so that Corpus
Christi wouldn't continue to lose tourists from Mexico. "Synergy from being governed
by the same board is extremely important. " He also felt the need to grow the
community overall rather than solely tourism. "A powerful board that brings together
influential individuals will be able to change things more effectively. "
Chairman Jones amended the earlier motion made-- that the CCACVB Board authorize
the establishing of an Interim group which would not abdicate any power from the
CCACVB Board. The Board approved the motion unanimously.
Chairman Jones recommended the following Directors be appointed to serve on the
Interim Board as well as himself: Marco Arredondo, Dave Coggins, Rex Kinnison,
Lillian Murray, Bill Pruet, E.J. Schenfarber and Gene Urban. He added that he would
want Keith Arnold to be very active with the Board in an advisor capacity. The eight
members will report back to the CVB Board of Directors. Should one of the eight
Directors listed above find they are unable to serve on the Interim Board a replacement
will be made from the remaining CVB Board.
V. Water Board Issue
Chairman Jones informed the Board that they were being asked to consider
endorsement of the sales tax for water as well as being asked to provide funds for this
effort. He added that he was in favor of passing the bond issue but did not think it
an appropriate use of the CVB's funds to provide money towards that effort. Mr.
Urban stated that "we need the water" and didn't think that the City has a choice.
The water board issue not only involves waste water improvements but water rights
as well. He felt that these should be obtained. "You're buying the rights for the water
-- then you have the decision how you'll use them". Mrs. Sheppard noted that she
was on the Board when there was a previous shortage of water. She pointed out that
"it had made it hard to bring groups here"because word had spread of the shortage.
On a motion made by Mr. Wendt which was seconded by Dave Coggins, the Board
unanimously approved support of the water board issue.
4
VI. CCACVB Financial Report
Keith Arnold introduced the people responsible for helping the Bureau get it's financial
management process in order. Susan Doss, on loan from Peat Marwick, has helped
in training the Bureau's new Financial Administrator, Mary Etta Brundidge. Together
with Mr. Arnold they have moved the CVB forward toward a total accrual accounting
basis.
At this point Mr. Arnold asked Ms. Doss to make a few comments. Ms. Doss pointed
out that in the year end closing for the past fiscal year,journal entries from '.93 did not
transfer over to '94. As a result, there was a $21,000 carry over from the past fiscal
year which was compensated for in the September financial report.
Mr. Arnold next went over key financial management changes (A TTACHMENTA) that
would be implemented by the Bureau. He felt that the Bureau was in a "good cash
position"now with $326,000 cash in hand at the end of September. A need was felt
to consider long term investments (6 months period) where the Bureau could receive
a good dollar return and percentages. The purpose of the new accrual accounting will
be to accurately project where the CVB stands on a cash basis by the Board's
November meeting. Year-to-date the variance for the Bureau is $5,300.
It was explained that the Board will be receiving a slightly revised budget in November
as the Bureau has realized more dollars than it anticipated. It will be receiving $1.8
million from the City rather than $1.7 million. A revised budget will be needed to
make use of the extra dollars.
E.J. Schanfarberpointed out that certain procedures were not enacted by the previous
financial team involving documentation or paperwork. As a result when the balance
came up it was a "surprise" to everyone. In addition to the budget being off$21,000
coding issues will need to be rectified. He stressed that it was important for the new
financial team to have a "new, clean, beginning point".
On a motion made by Rex Kinnison which was seconded by Rosario Carrizo the
September and revised August financial reports were approved by the Board.
VII. Departmental Reports
Mr. Arnold presented the "CEO Summary" (ATTACHMENT Bl. It was noted that the
occupancy tax received for August was one of the highest totals ever collected. The
financial formula for the Bureau's receipt of occupancy taxes was explained. The CVB
receives $1. 7 million for occupancy tax collected up to $3.8 million. If the occupancy
tax collected exceeds that amount up to $5 million the CVB splits the amount 50/50
with the City. After $5 million, the City and Bureau renegotiate. It was felt that the
occupancy tax will exceed $3.8 million this year. It was noted that the formula can
be viewed as "merit base pay".
A question arose as to when the $3.8 million had been reached. The response was
sometime during the fourth quarter. It was clarified that the formula is based on a
yearly time period which runs from April 1st through March 31st. The Bureau will
receive a total of $1.8 million for this year. The City found at some point that it had
400 tiso
5
miscalculated the occupancy taxes received which resulted in the Bureau receiving
$36,000 more than had been expected. The $36,000 will go into the Bureau's
current fiscal year budget(93-94) based on occupancy tax received April '93 through
March '94.
In December, the Bureau would like to take a half day of the Board's time to show
them the CVB's new computer software.
A copy of submitted logos for the Seaside Trail signage (ATTACHMENT C) was given
to the Board for their information. It was noted that the middle logo had been chosen.
At the next Signage Committee meeting discussion of integration of biking and hiking
programs with the Seaside Trail will take place.
10-12 hotel personnel helped with the Bureau's sales blitz of San Antonio. A copy of
an article out of the San Antonio Express News was given to the Board for their
information (ATTACHMENT D). It was emphasized that the article was put above the
"fold" on the front page of the business section which was excellent coverage.
Marilyn Pierce gave a report on the Convention Department's efforts over the past
month. They have already received 6 phone calls as a result of the San Antonio
article mentioned above from new meeting planner companies.
CVB staff were a part of the Lone Star Travel Exchange held October 3-6 which was
a first time occurrence for the State of Texas. Lone Star was directed towards
motorcoach tour operators from Mexico, Canada, the United Kingdom and Japan in
particular. Although there were only 90 buyers and 100 suppliers in attendance, it
was felt a good turnout was achieved for a first time show. From Lone Star 45
contacts were made 28 of which were considered "hot prospects". There was also
one site inspection immediately after the show. The Sales Department intends on
trying to bring the show to Corpus Christi in the Fall of 1995.
CVB Staff member, Lou Garcia, went to Monterrey recently as part of the International
Sister City delegation.
Kim Lemley went to the Ontario Motorcoach Association show October 3-4 in Canada.
From that endeavor 17 appointments have been made.
Ed Persall and Jill Borelli will be participating in the Dallas/Ft. Worth Society of
Association Executives Association Day.
Regarding the monthly Director of Sales meetings that the CVB sales staff holds, the
attendance for September grew by 4 participants. Several properties have noted an
increase of calls especially those with 800 numbers, i.e. German travelers. The
October DOS meeting was replaced by the San Antonio sales blitz.
The Tourism Department had 4 leads with 2 definite bookings.
The Convention Department had 17 leads with 15 definite bookings.
4 6
A total of 17,322 room nights were produced for the month of September which
exceeded the 12,000 room night goal.
Ms. Pierce urged the Board to let them know of any leads they may be aware of
whether it's a motorcoach or event happening in Corpus Christi. For instance, Erich
Wendt sent the Sales Department a lead on visiting German students and Mrs. Carrizo
let them know of volley ball people coming to Corpus Christi. She ended by
remarking, "give us a call and we'll follow up".
Ms. Murray gave input from the Marketing Committee which met earlier in the day.
One of their goals for this calendar year was to have a Long Range Plan by the end
of '93. However, enough changes have arisen which will postpone the plan till after
the first of the year. They would like to see what happens as a result of the Corpus
Christi Bay Business Alliance as well as give Stern Feinberg time to research the
information given to the Bureau by the Department of Commerce. The goal is to
narrow down the figures given to determine local figures. The Marketing Committee
would also like to add 3-4 new members to their committee for a broader base of
information.
VIII. Old Business
Mr. Arnold noted that a poll would be taken at the end of October and December of
the hotels that benefitted from the September 26th insert. One of the goals will be
to determine points of origin. Mr. Schanfarber added that the Bayfront Connection
had a tremendous response from the insert 1410 room nights). The majority of the
business booked came from Houston, then Dallas and San Antonio.
Mr. Arnold was asked to comment on the Miss Texas USA Pageant. He started by
saying that Al and Gail Clark were talked to at the close of negotiations last year.
They were asked to consider coming to Corpus Christi every third or fourth year. The
CVB also suggested that the Bureau not be the guarantor for the pageant. Crystal
Productions came back to the Bureau and asked for $60,000 although last year the
Bureau had paid Crystal Productions $40,000 with $10,000 going to the local events
producer.
Crystal Productions solicited other cities for the pageant and was chosen by the Padre
Island CVB which has a S3.5 - $4 million budget. The Padre Island CVB also bought
the Miss USA contest for $300,000 which will be held in February.
It was pointed out that it is difficult to quantify the value of the pageant to Corpus
Christi. The CVB received 600 - 700 inquiries related to the show, however, the
pageant cost the Bureau $50,000. During the previous month S40,000 had been
spent in advertising for the Las Carabelas which brought in 20,000 responses. The
Quality Inn and rental car agencies which were involved in the pageant last year lost
money from the event. San Antonio had held the pageant in the past but relinquished
it as a single hotel could not be found to book rooms for the event.
It was expressed by a few people that perhaps an event such as the Miss Texas USA
Pageant would have value on a rotational basis.
7
It was reemphasized that product development needs to be a part of a long range
plan.
Ms. Murray stated that the Marketing Committee decided not to comment on the Miss
Texas USA Pageant.
IX. New Business
No new business was addressed.
X. Adjournment
The meeting was adjourned at 4:20PM.
Dottie Sylvester
Recording Secretary
V
KEY FINANCIAL MANAGEMENT CHANGES
o Purchase orders for everything signed by department heads and CEO with
chart of account codes
o Yearly distribution of fixed annual payables (annualizing), i.e. dues,
premiums, etc.)
o Distribution over six to nine months of office supplies (a year's supply is
generally purchased in most cases during the first two months of the fiscal
year)
o CVB is moving off of cash basis, once and for all, and will:
1. Accrue off of all invoices received in mail through the fifth of the
month
2. Average expenses such as telephone, utilities, CINET and TNET
charges in order to forecast upcoming month's expenses
3. Open purchase orders, such as those involving advertising insertions
and creative, will be accrued (insertion costs, creative, and production)
4. Receivers without purchase orders will be accrued (soft drink, vendor,
photography, coffee service, direct purchases, i.e. Sam's Club, Office
Depot, Builders Square)
5. All expense accounts must be received and processed by the fifth day
of the following month
In other words, we will enact a true accrual accounting process immediately.
ATTACHMENT A
V to
CEO SUMMARY
O AUGUST OCCUPANCY TAX -- UP 19%
SALES TAX -- UP 17%
O SEPTEMBER 26 INSERT BRINGS IMMEDIATE INQUIRY
AND BOOKING RESPONSE TO AREA HOTELS.
(HOLIDAY INN-P.I. 50+ RESERVATIONS)
O COMPUTER SOFTWARE FOR
MARKETING/HOUSING/FULFILLMENT TO BE
INSTALLED 1ST WEEK IN NOVEMBER.
O FULFILLMENT SERVICE TO BE TAKEN IN HOUSE
DECEMBER 1ST -- SELF-MAILERS, SPARKLERS, AND
POSSIBLE VOICEMAIL SYSTEM WILL LEAD TO FASTER
TURNAROUND FOR VISITOR INQUIRIES, BETTER COST
CONTROL, AND MORE THOROUGH COLLECTION OF
MARKETING DATA FOR FUTURE USE.
O SUGGESTED LOGO FOR UNIFORM SIGNAGE PROGRAM
AND BEGINNING SELECTION OF SITES FOR SIGNAGE
SELECTION UNDERWAY.
O SAN ANTONIO SALES BLITZ YIELDS 200 PROSPECTIVE
ACCOUNTS AND GOOD NEWSPAPER COVERAGE IN SAN
ANTONIO.
ATTACHMENT B-1
O FALL AD PLACEMENT AND EDITORIAL YIELD STRONG
INQUIRY RESPONSE.
"HOME AND AWAY" "FIESTA"
"MIDWEST LIVING"
"SOUTHERN LIVING"
O LEXINGTON FINISHES 1ST FULL YEAR OF OPERATION
120,000 ADMISSIONS ABOVE PROJECTED NUMBERS
O NEW PUBLICATIONS ACHIEVE CONSISTENT LOOK AND
CONNECT WELL WITH ADVERTISING CREATIVE TO
BUILD CORPUS CHRISTI IMAGE AS A "TROPICAL
RESORT, FAMILY DESTINATION".
"BEACH & BAY GUIDE" - 2 0 0 , 0 0 0
(INQUIRIES)
"DESTINATION PLANNING GUIDE" - 6,000
(TRAVEL TRADE)
O NOVEMBER BOARD MEETING WILL INCLUDE REVISED
BUDGET REFLECTING INCREASED REVENUES FROM
OCCUPANCY TAX AND SAVINGS ON FINANCIAL
MANAGEMENT SALARIES.
ATTACHMENT B-2
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