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HomeMy WebLinkAboutMinutes Corpus Christi Convention & Visitor Bureau - 01/18/1994 V lur 1 , 11 , LiI II. Alam CCACVB BOARD OF DIRECTORS MEETING `s2 6��i v2�ZZ j/ MINUTES TUESDAY, JANUARY 18, 1994 3:00 PM CONVENTION & VISITORS BUREAU, 2ND FLOOR BOARD ROOM I. Call to Order The meeting was called to order at 3:10PM. Chairman Jones asked Dottie Sylvester to call the roll. ll. Roll Call Directors attending.: Al Jones (Chairman), presiding Marco Arredondo, Rosario Carrizo, David Coggins, Ralph Ehrlich, Rex Kinnison, Lillian Murray, Bill Pruet, Ricardo Sanchez, E.J. Schenfarber, Barbara Sheppard, Jean Titus, Gene Urban and Erich Wendt Absent: Cathy Harrison. Attending Staff: Keith E. Arnold, Mary Etta Brandidge, Ed Persall, Marilyn Pierce, Dana Stephens, and Dottie Sylvester. Guests: Fred Dolts (MDL), Mo Morehead (MDL), Holly Osborn (MDL) and Channel6. Ill. Motion to approve Minutes of November 23, 1.993 Board of Directors Meeting On a motion made by Bill Pruet which was seconded by Erich Wendt, the Board Q approved the above minutes. zIV. Approval of Columbus Fleet Association Bylaw Change Chairman Jones read a letter sent to the CCA CVB Board of Directors requesting their Q approval of a bylaw change for the Columbus Fleet Association (ATTACHMENT A). V He felt that although it was a routine change in bylaws, he wanted to ask the Byreau's CD attorney, John Bell, to review the change and see if it is in accordance. A motion was made by Ralph Ehrlich that the CCACVB Board approve the change pending sign-off by John Belt The motion was seconded by Dave Coggins and approved by the Boar (NOTE: John Bell saw no problem with the change in bylaws. Item stands approveonYLVA CORI'L0 CIIRI.71 AREA CON VEN11U.A S 11617010 Bt REAL 1:01 A 91012l11]LI'.0-Box 2604,CORM C.1110,011.1INAN 70401-:(c4 LSA • iCib03 • 14,00-670.00 I'.V•.(62 321 • FAX 5L2- :-L^0 11110 2 V. CCACVB Financial Report E.J. Schanfarber pointed out that the Board had the December financial statement for the Bureau in their Board books. It was noted that the Bureau is $83,000+ YTD against its annual. There is a $21,000 carry over in accounts payable from last year which affects the Bureau's operating expenses. Each item is being researched carefully to see why it is coming up as a variance (things were not properly coded in last year's budget). Telephone continues to be an issue as it is 'dust higher than it was last year". This is due to a greater number of sales calls and responses which could not be anticipated. A question arose regarding an IRS penalty. The response was that a late payment had been made for payroll taxes which were not filed by the former Financial Administrator. It was noted that it took a month and a half to get clarification from the IRS on the late payment. VL Departmental Reports Marilyn Pierce reported on the efforts of her departments over the last month. She started out by stating that there have been a number of changes such as the Visitor Information Center which had undergone considerable renovation. The mail room has been enlarged and the back area to accommodate more phones and computer stations. The phone will enhance the Bureau's sales and marketing efforts. Fulfillment service has been brought in-house. Communications has focused in on improving its reach. They are writing shell stories and now have the use of new photography. A question arose as to whether the convention calendar was available to the general public. It was pointed out that there is a charge for nonmembers. The calendar is updated monthly and sent to members. Members consist of people outside the city limits of Corpus Christi who pay dues. It was pointed out that the calendar will not be sent to hotels to avoid stealing of business by other hotels. A call will be placed to Mr. DeCou to clarify confusion regarding who can obtain a convention calendar. Ms. Pierce pointed out that sales numbers are ahead of target. She referred to the December figures and the five month update which had been placed in the Board books. 50% of their goal for the current fiscal year has already been met. During the entire fiscal year '.92-'93 they booked 76,000 room nights. Their goal for 1994 is 150,000. Thus far 79,000 room nights have been booked. The Tourism department has caught up with and passed their goal YTD (101 %). Mr. Arnold emphasized that the Sales department has doubled the number of room nights from last year. He thanked Ed Persall, Jill Borelli, Marilyn Pierce and Kim Lemley for their outstanding efforts. Ms. Pierce also pointed out that a good quality of leads was being produced by the Sales department which, in turn, leads to a higher conversion rate (73%). Kim Lemley has booked 988 room nights which is double what was ever done before by the Bureau for motorcoach business in that time frame. �► V 3 A question arose as to why hotels were being asked to fax back a response to the Bureau as to whether or not they were interested in responding to leads. The response was that the Bureau fee/s it is helpful to know which hotels are full. It enables them to be more knowledgeable when dealing with a client. Ed Persall was asked to share on the Sales Department's prospecting calls which he is heading up. He explained that they are basically doing cold calling. They are trying to talk to people they've never talked to before. They are calling people from such sources as TNET and IACVB reports. Once they reach an individual they talk to them about Corpus Christi and the meeting the individual is involved with. To-date 468 prospect calls have been made out of which 11 leads have been generated. Information is also sent to the individual talked to. The prospecting calls are made by the sales staff each morning from 9-1 1AM. It was added that groups are called who have a reason to be in Corpus Christi. Mr. Persall added that prospecting is a good way to find out about local contacts with whom the Bureau can work to bring their group here. Mr. Arnold stated that a rack sized card was being planned for production. One side of the card it will state "What you can expect from your CVB" while the other side will read "What the CVB needs from you". An orientation session will be held (dates not set yet) which will help the Bureau work with the hotels better in order to be more effective in selling Corpus Christi. A focus study of last year will also be updated. Mr. Arnold also expressed the need for the Bureau to orient the State Texas Department of Tourism on how the marketing program works in Corpus Christi. They plan on holding a breakfast in Austin to which the promotional personnel from the Dept. of Tourism will be invited (Don Clark and his management people, marketing personnel, etc.). The goal of the breakfast is to educate them as to what the Bureau does in Corpus Christi and to find out about each other's marketing efforts, i.e. Mexico. "Tidings" will be published on a quarterly basis rather than monthly as it is too time consuming. The Board was invited to come 15 minutes earlier to February's Board meeting in order to view the Bureau's new technological capabilities, Le. the Visitor In formation Center, the fax-sys system. A notice will be sent to the Board regarding this. Lillian Murray commented that she was pleased to see "wonderful, positive coverage" on the seaside trail project. Mr. Arnold elaborated that the Signage Task Force had come out of a presentation the CCACVB Board had made to City Council members and officials. Towards the end of that meeting the Mayor had asked "what do you need" at which time the signage issue was brought forth. The trail will enable someone in one fell swoop to see what there is to do in Corpus Christi. The trail will also be accompanied by a brochure. Add-ons to the trail will be quite easy -- the only challenge will be printing new brochures toward the end of the FY. 41) 4 VII. Discussion of Trends and Long Range Planning Issues Mr. Arnold noted Mr. Jones had suggested that it would be "more enlivening for the Board meetings to move away from straight information giving" Board meetings and deal more with "big issues that can affect what the CVB does". Included in the Board books was a listing of topics /ATTACHMENT B) that the Board might consider and prioritize. Then the issues would be addressed in Board meetings in order of priority. Board members were also asked to add to the list if they felt an important issue had been overlooked. One of the issues Mr. Arnold felt needed to be addressed was marketing to Mexico. A/though the Bureau currently has a representative for Mexico, there are many components to marketing to this country. There is a class of people the Bureau needs to target to which can only be reached through other people who are familiar with that group. There is also a credibility problem with advertising in Mexico. In addition, travel agents and tour operators have different commission structures than their U.S. counterparts and thus require different things. Overall, the CCACVB needs to select specific ways to penetrate the market in Mexico more effectively. Mr. Arnold also felt that lack of partnership with the airlines has hampered Corpus Christi. There is a need for better teamwork with the airlines. For instance, one of the airlines has established zones for convention groups that book their services. After 3 months the Bureau has still been unable to determine from the airline which zone Corpus Christi falls in. Another airline has every Texas location listed on their map except Corpus Christi. It was reemphasized that the Bureau needs better partnership with the airlines if it is going to take advantage of national groups. Another issue listed for the Board concerned service. As "service is the competitive edge for the 1990's"did the Board feel the Bureau should be involved in playing a role in training people to be more sensitive to tourist needs? Other issues mentioned for the Board's consideration was determining how big the Bureau's budget should be to be effective, if Board members wanted Bureau staff spending time on raising money for entrepreneurial activities, etc. Regarding the handling of such issues, Ralph Ehrlich noted that "I think it's more of what the Board should be doing. These items are what we should spend two hours on. " He added that he felt a blank space should be supplied for more topics and ideas and suggested that a time allotment be set. Marco Arredondo suggested that a topic be sent to the Board beforehand. Mr. Arnold added that the Bureau could tabulate a survey form which would be sent to the Board. Then the Board would start with whatever topic was determined as being the top issue. In addition, the Board will be sent trends and articles that would pertain to whatever topic would be discussed at the next Board meeting. Chairman Jones stated that there needs to be a clarification of the relationship between the CVB and the Lexington which would be addressed in an Executive Session. He felt that the Lexington has done well in many respects. One thing to be considered was "how much of our time and resources do we want to play in the V V 5 Lexington?" Another consideration was how much "hands-on capacity"did they want the President/CEO of the Bureau to have for the Lexington. VIII. Old Business Chairman Jones gave an update on consolidation efforts (ATTACHMENT C). He pointed out that the Interim Board of Directors has 3 subcommittees covering financial, legal and organizational aspects. Chairman Jones is the chair of the Organizational Subcommittee. In determining the makeup of the new Board the Interim Board has tried to strike a good balance with the public and private sector. They plan on going back to the three organizations looking at being consolidated and their funding organizations to see what their response is to the proposal being made. The composition of the new Board would be 12 Board members from the public sector, 12 from private with 3 elected positions. They have made suggestions for allocation/definition of slots of which all Board members would be representative of. From the private sector 6 board members would be elected from the general membership while the other 6 would be filled out by the Nominating Committee (to ensure Board balance). For the public sector, the Nominations Committee would make nominations for these slots. They would choose qualified people to represent each slot and would make an active recommendation to City Council. City Council would be able to make other recommendations. A revised dues structure is also being considered which would lessen the cost so that smaller businesses could be included. In addition to the above composition three officials would a/so be included in the Board makeup (Mayor or Council member, County Judge or Commissioner and Port Chairman or Commissioner). Mr. Pruet felt that the addition of the three officials was the "key to success". He added that he would like to see classification in categories which would allow one third of the Board to come from tourism or hospitality related businesses or organizations. Chairman Jones responded that the one third makeup was covered in the pro forma of the Board of Directors. Chairman Jones added that he felt the Alliance would be able to effect the type of changes which were brought up in the previously mentioned "issues"list. The Alliance "will be the mechanism needed to achieve results -- fire power. " A motion was made by Ms. Murray that the Board lend its support to the draft for organization structure. The motion was seconded by Mr. Schenfarber and approved by the Board. Mr. Arnold noted that the Bureau will only be bidding for the American Bowling Congress tournament in the year 2000. Originally it was going to bid for the 1999 tournament as well but since that time has booked other business for 1999. He expressed concern about bidding for the 2000 tournament. It was suggested for FY94-95 that the Bureau commit $100,000 of it's money to the bid. From 94-99 the V V 6 Bureau could commit $20,000 a year to the proposal. Mr. Arnold will need to go before City Council next Tuesday to make a presentation for the ABC bid. Mr. Schanfarber remarked that the four month use of the Convention Center plus the month before and after might not be the best use of the facility for such a long period of time. It was clarified that the ABC would not only be receiving $400,000 but the use of the Convention Center free-of-charge for 4 months. A question arose as to how much economic impact was derived from ABC. The response was $38 million although it was felt that figure was not credible. As the bid for the 2000 tournament would be made in March, a decision would need to be made now as to whether the Bureau would pursue the bid. Mr. Ehrlich stated that he felt it was the general consensus of the hotel industry to bring the bowlers back. Mr. Arnold pointed out that "some pieces of business are worth more than others". For instance, it would be desirable to win recurrent business such as a Texas State association which would return every 3rd or 4th year. If such an association is bumped for ABC, Corpus Christi would be out of the rotation pattern for another 6-10 years. Mr. Schenfarber added that Texas State associations are now considering Corpus Christi as they have been told by San Antonio that they "don't want them anymore". March through May is a big Texas State association period, i.e. Future Homemakers of America, Texas Library Association, Knights of Columbus. It was asked that Ms. Pierce do a study of her current booking pace which the Executive Committee could meet and review on Monday to determine whether pursuing the 2000 ABC bid would be necessary or viable. Mr. Arnold interjected that he felt the $300,000 should be sought from City Council in any event. IX. New Business No new business was brought forth at this time. X. Adjournment to Closed Session At 4:40PM the Board elected to go into Executive Session. Dottie Sylvester Recording Secretary Corpus_Chf iliii IIIII -,IIi III U 11 OF SCIENC AND HISTORY December 15, 1993 Mr. Keith Arnold President and C .E.O. Convention & Visitors Bureau P. O. Box 2664 Corpus Christi, TX 78403-2664 Dear Keith: The Columbus Fleet Association by-laws require that by-law changes be approved by the board of directors of the Convention and Visitors Bureau. In July, a change was made which needs the approval of this board. The change reads as follows : "Any director may be removed from the board at any time by a vote of a majority of members of the Board of Directors . " A pending issue will require approval of this by the January board meeting of the Columbus Fleet Association. Consideration by the Convention and Visitors Bureau board of this item would be appreciated. Sincerely, 41 Rick Stryker 121593 . 3 is so ATTACHMENT A A DEPARTMENT OF THE CITY OF CORPUS CHRISTI.TEXAS 1900 NORTH CHAPARRAL • CORPUS CHRISTI,TEXAS 76401 • (512)883-2962 410 `i POTENTIAL ISSUES FOR BOARD DISCUSSION o Develop a long range strategy for effective marketing to Mexico o Working with the airlines How can we create better partners? o Expectations of CEO and staff Board priorities. o Hospitality training What is the role of the Bureau in helping to make this destination "visitor friendly"? o Product development What should the CVB role be in such things as convention center expansion, development of a new HQ hotel, theme park, gaming, downtown and Padre Island overall development, etc? o Entrepreneurial activities Seeking joint ventures and partnerships from local businesses for special projects — Information centers -- Publications development -- Cooperative advertising -- Signage/cross-marketing indicators. o Lexington management What does the CVB Board feel our role should be in the day-to-day operations of the Lexington? ATTACHMENT B-1 V o Budget What do we need to be effective? How can we grow the budget to meet those needs? o CVB involvement with the minority community o CVB role in stimulating the educational process to include more tourism-related subject matter o Working more effectively with the Texas Department of Commerce-Division of Tourism ATTACHMENT B-2 DRAF r PROPOSAL' FOR BOARD ORGANIZATION PRIVATE PUBLIC SECTOR SECTOR 2 - Small Business 2 - Small Business 2 - Medium Business 1 - Mayor 2 - Medium Business 4 (or Councilmember) 2 - Large Business 1- County Judge 2 - Large Business (or Commissioner) 6 - Nominated by 1 - Port Chairman 5 - Visitor Industry Nominations (or Commissioner) Committee (3 from Area Councils*) 1 - Channel Industry (3 At Large) (nominated by Port) L J KEY FOR METHOD OF ELECTION Elected from membership by mail ballot or at an annual meeting; any person from a member business may file for election (procedure similar to current EDC method). r - - '1 Slate nominated by Nominations Committee after annual election; slate is deemed I elected if petition of at least 50 members is not submitted within 10 days (procedure L — — J similar to current Chamber method). Members are appointed by City Council with nominations coming from the Nominating Committee (Council can also make nominations). Pod Commission makes nomination for Channel Industry (procedure similar to current CVB method). Public officials are elected or appointed pursuant to applicable law; they are full voting A. members on the board. ATTACHMENT c-i * Area Councils initially are Northwest, Westside, and Padre Island/Flour Bluff. . DRAFT NOTES ON DIRECTORS All Directors serve three-year terms, except the three public officials who serve terms coterminous with their terms as public officials. Three-year terms are staggered, with 4 directors from each group up for selection each year. • Two directors elected from private membership • Two directors nominated by Nominations Committee • Two directors appointed by City Council from small/medium/large business; and • Two directors appointed by City Council from visitor industry/port industry. All Directors must be, or become, members. DRAFT ATTACHMENT C-2 DRAFT PRO FORMA OF BOARD OF DIRECTORS PRIVATE SECTOR PUBLIC SECTOR Small Business (general) Small Business (general) © 14 Small Business (professional) Small Business (professional) • Medium Business (hotel) Medium Business (retail) 0 Medium Business (manufacturing) Medium Business (manufacturing) Large Business (financial) Large Business (financial) Large Business (general) Large Business (general) Area Council (Northwest) Visitor Indus ry (restaurant) 20 Area Council (Westside) Visitor In.ustry (hotel) o Area Council (Padre Island/Flour Bluff) Visitor Industry (attraction) At Large (financial services) Visitor Industry (entrepreneurial) At Large (visitor attraction) Visitor Industry 7Bay Area Council) At Large (restaurant) Gee PorfiChann®el Industry Mayor, County Judge, Port ATTACHMENT C-3 Commissioner (or official designees)