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HomeMy WebLinkAboutMinutes Corpus Christi Convention & Visitor Bureau - 03/23/1994 El \ \ 4.0 / CCACVB BOARD OF DIRECTORS MEETING 1'n 4 °1 MINUTES f ,,„'WC 6 r::E WEDNESDAY, MARCH 23, 1994 1�" 1:30PM -Pee `/ SHERATON CORPUS CHRISTI BAYFRONT, RIVIERA ROOMS 2 & 3 1. Call to Order The meeting was called to order at 1:40PM by Chairman Jones. ll. Roll Call Directors attending: Al Jones (Chairman), presiding Marco Arredondo, Rosario Carrizo, David Coggins, Ralph Ehrlich, Cathy Harrison, Rex Kinnison, Lillian Murray, Bill Pruet, Ricardo Sanchez, E.J. Schanfarber, Barbara Sheppard, Gene Urban and Erich Wendt. Absent: Jean Titus. Attending Staff: Keith E. Arnold, Mary Etta Brundidge, Diana Otton, Marilyn Pierce, Dana Stephens, and Dottie Sylvester. Guests: Fred Dotts (MDLI, Dianne Mendoza Freeman (TDOC), KDF-TV, KIII-TV3, KORO-TV, KRIS-TV, Holly Osborn (MDL), Linda Simmons (MDL), Jim Steinberg (Corpus Christi Caller Times). Ill. Motion to approve Minutes of February 15, 1994 Board of Directors Meeting The above minutes were accepted as written. IV. USS Lexington Board of Directors Nominees Chairman Jones asked if there were any questions regarding the nominations for next 0 year's Lexington Board of Directors (ATTACHMENT Al. Lillian Murray asked why there were no women on the Board. Cathy Harrison stated that she had sent a note to that Board asking that as well. Ms. Murray pointed out that it would be important for them to have such representation especially when any fund-raising is done for the Q ship in the future. Bill Pruet and Barbara Sheppard stated that it was their V understanding that the CCACVB was to have four representatives on the Lexington (n Board. Gene Urban noted that to-date there is only one CVB representative on the Lexington Board. Chairman Jones noted that "it is our prerogative to ask them tt��,�,,,, ,,Q reconsider their nominations". A motion was made by Mr. Pruet to send back th�V✓V, CORM._5 CHRISTI AREA CONTENTION&V(SProRS BC.RI AF .,.. CJI N.SHOHeuNE,P.O.BOX 21.*4.CORPUS CHRIST(.TES AS 7/4405-2664 USA • 5I:-SS2s601 • I,N00-1,7s-OCE VS(6232( • FAX V V 2 slate of nominees and ask for appropriate CVB representation on the Lexington Board. It was also recommended in the motion that a diversity of the Lexington Board be considered. The motion was seconded by Ms. Murray and approved by the Board. V. Long Range Planning Issues Discussion Keith Arnold stated that "we need to make a serious decision about our efforts in Mexico". It was felt by the Bureau that a staff person was needed who would be dedicated solely to Mexico. It was also emphasized that a concentration be placed on Monterrey as the Bureau does not have the budget to work on marketing to all the major Mexican cities. As Monterrey is in the "backyard" of Corpus Christi it was felt that it would hold great potential for Corpus Christi. It was also noted that the Bureau should endeavor to piggyback with the State of Texas in Monterrey. Corpus Christi will be invited to participate in educational seminars that will be held in Mexico by the State of Texas. A question arose as to where the staff person for marketing to Mexico would work. The response was that the staff person would work out of Corpus Christi, making cal/s to Mexico. The funding of the Monterrey Information Center by the CCACVB was stopped in September. Attention was given to the fact that there are 3.3 million people in Monterrey. During the CVB's recent visit to Monterrey they met with Aeroliterol regarding air service to Corpus Christi. Aeroliterol will be coming to the City on April 28th to consider direct service as early as June. It was also pointed out that Conquest Airlines currently has two daily flights to Monterrey with a stop in San Antonio. The total travel time is 2 1/2 hours. Although Aeroliterol is interested in offering flights between Monterrey and Corpus Christi, their problem is that they are "doing too well". All of their planes are currently in use and they are waiting to receive new planes on order which will be used for service between Monterrey and Corpus Christi. The Bureau will be going to a meeting in Dallas in order to talk to American Airlines who is also considering direct air service to Monterrey. The Mexican airline, Saro, which flies to 10 major cities in Mexico has also expressed an interest in Corpus Christi. Ralph Ehrlich noted that "Monterrey is the biggest untapped market for Corpus Christi. " He asked that the CVB staff prepare a detailed wish list with the amount it would cost to market to Mexico. He then suggested that that list be taken to the City Council to obtain the additional money needed to market to Mexico. At this point, Mr. Arnold noted that it would take "creative thinking" to obtain additional money from the City, i.e. the Jesse Benavides fight. He asked the Board for their thoughts on creative input. 3 Mr. Pruet agreed with Mr. Ehrlich that increased funding be asked of the City Council. He felt if the Bureau designates a new marketing effort to Mexico, it could request the additional money from City Council. He also noted that one way the Bureau could obtain additional money is by having their current funding formula changed. Rather than the City receiving 75% of occupancy tax received over $3.2 million and the Bureau receiving 25%, that would be switched to where the Bureau would receive 75% while the City would receive 25%. E.J. Schenfarber remarked that the Japanese have become disenchanted with Florida. He added that they like beaches and golf which is something Corpus Christi has to offer. The last few days he has hosted people for potential Japanese business. Their initial response to Corpus Christi was very positive. What is most important to Japanese people are their personal safety -- then golfing and culinary experiences. The greatest challenge to Corpus Christi regarding Japanese business is the amount of available air seats. The wholesaler he has been in contact with starts in blocks of 25,000. He added that Canadian travelers have increased also. Mr. Arnold informed the Board that the Bureau recently had 8 meeting planners in from Washington, DC. Their response on seeing Corpus Christi was "where have you been?" He added that the Bureau is "missing the dollars to reach people like this. " It was stressed that there needs to be preparation of product done in order to deal with international markets, i.e. bilingual signs, bilingual literature. The CVB has a new bilingual rack piece. It will be a mandate for 1995 to have a Spanish video made. Ms. Murray noted that the Marketing Committee is in the process of developing the Marketing Plan which will be presented to the Board in May. Mr. Arnold stated he would like to have a marketing contingency budget again for the upcoming year. The $700/month that was being spent by the CCACVB on the Monterrey Information Center will be spent on trade missions. Chairman Jones asked that the staff submit a recommendation to the Board for marketing to Monterrey. Mr. Arnold responded that the Bureau would have that for the next Board meeting. Chairman Jones asked Mr. Pruet, Mr. Ehrlich and Rosario Carrizo to work with Mr. Arnold on the recommendations. VI. CCACVB Financial Report Mr. Arnold noted that the figure under Accounting, Legal, Professional Fees (ATTACHMENT B) was high because Peat Marwick had been called in to oversee the Bureau's operations until the new Financial Administrator, Mary Etta Brundidge, was able to step in. Telephone was high as well due to the fulfillment service being taken in-house. Overall, the Bureau is "very much on budget for the fiscal year". The CVB will recommend how the current contingency dollars will be used at the next Board meeting. They also emphasized a need to talk in terms of 36 months rather than yearly for the budget. Approval of the Financial Report was unanimous. 610 1/41110 4 VII. Departmental Reports Mr. Arnold asked Diana Otton, the Bureau's computer consultant, to give the Board a summation of key programs that have changed within the Bureau. Ms. Otton thanked the Board for their support of the new efforts. To-date, there are 18 staff members on the Novell network which has eliminated duplication of the work effort. She noted that she has been working on the Visitor Information Center. There are now 3 computers set up in the Center, 2 of which are active. The Sparklers have been inputting potential history for Corpus Christi on the computers from visitors that call in, i.e. information on fishing, restaurants. The Bulletin Board will be ready next week. The database established by fulfillment service will be available for others to download for a fee. In order to see a return on investment, the Bureau will charge businesses within the city limits of Corpus Christi $350 for the right to download information. Not-for-profit attractions will have free use of the database. Businesses outside of the limits of Corpus Christi will pay $500. Ms. Otton added that packets will soon be ready on the above services. A FACSYS program has also been installed for CVB staff which will enable them to fax things through the network rather than having to send materials through the use of a fax machine. This will enable the Public Relations Department to more readily send information to Corpus Christi media. Telemagic has also been installed which is a contact management program. This program will allow staff members to fax leads to hotels every night. This will cut down on postage, paper and staff efforts. In the past leads have been copied and mailed out every Friday. The sales staff are now equipped with headsets and have begun using Telemagic. The program should enable them to be very efficient. Mr. Arnold invited the Board to go over to the Bureau and see it in operation. Ms. Otton and travel counselor, Nancy Rehfeld, have, been developing a detailed description for each job at the Bureau which will help in the evaluation of positions. Mr. Arnold noted that the Bureau had lost the 1999 ABC bid to Syracuse, NY and the 2000 ABC bid to Albuquerque, NM. At this point, he asked Mr. Pruet to elaborate on the details of the presentations which he was a part of. Mr. Pruet noted that there were 5 cities that made presentations on the 1999 bid on Friday as well as 5 presenting for the 2000 bid on Saturday. The CCACVB had gotten an advanced "scoop"before leaving for Mobile that the 2000 site had already been determined and the CCACVB was encouraged to pursue the 1999 bid. The Bureau changed its plans and went after the 1999 bid in addition to the 2000 bid. After arriving at Mobile, they found out that Syracuse was going to get the 1999 bid. Unfortunately the secret ballots are tabulated by the staff and Corpus Christi will never know why they weren't selected. He noted that MDL had done a great job on the video and that Mr. Arnold had rewritten the presentation for Saturday so that it would be more effective in light of what happened on Friday. There was a ABC survey that had been sent to 1500 bowling captains asking them for their ranking of 40 cities. Corpus Christi was listed at the top while Syracuse was placed at the bottom of the list. He ended his overview by stating "I would never vote to go for another ABC bid. " 5 Mr. Arnold stated that the video for the CCACVB is 85% done. The video will be produced with three variations --meetings and conventions, motorcoach/tourism and lure or image oriented. The lure video is designed to build attendance of delegates and will be sent to travel agents as welt There will be a mass quantity of the videos produced. The cover for the video will be shown at the next Board meeting. It was noted that the work on the video had been done by Linda Simmons of MDL with over 150 still shots in the 7 minute video. At this point the video was played for the Board members. Mr. Arnold thanked MDL for their fine job on the video. CVB sales staff Jill Borelli will be taking over a new market -- fraternal and sorority reunions. The Winter Texan market remains strong with good traffic from the Valley. Winter Texans have been increasing their stays in the Corpus Christi area to 3-4 days. The services of the Reunion Network company will be utilized by the Bureau in order to pursue the military reunion market. Renovations are now complete in the Information Center. VIII. Old Business Ms. Murray noted that she had met with the Marketing Committee yesterday. The information gathered from the 4 Focus Groups that had met during the past month was presented to the Marketing Committee. She reiterated that the Marketing Plan for FY94-95 will be presented to the Board by the end of May. IX. New Business Mr. Arnold has spoken with Jim Steinberg of the Corpus Christi Caller Times regarding the paper's use of inaccurate bars depicting hotel occupancy tax. The CVB is going to pay Smith Travel Research 5200 to obtain accurate information. It was added that the company puts out their information on REV PAR and hotel occupancy within 45 days after the close of a month. In April, the Board will be receiving a report from the CVB on what conventions are booked for 1994, 1995, etc. The report will show where the "holes" are that will need to be plugged in by the Bureau and show them where they need to shift marketing contingency money. Mrs. Sheppard will be appearing next Wednesday before the Governor's Task Force on Nature Tourism. She will be reporting on birding, fishing and hunting. She will also be participating in the upcoming Texas Travel Fair in Beaumont. X. Adjournment The meeting was adjourned at 2:45PM. Dottie Sylvester Recording Secretary 1110 10, USS LEXINGTON MUSEUM ON THE BAY Board of Directors Terra ending March 1994 (expiring) : Joe B. Jessel Jeff Jung George Lyford Robert Bowling Term ending Match 1995: Gary Bushell Mike Carrell Al Jones Nolan Rhodes Bob Lacy, Jr. Term ending March 1996: Frank Adams Alan Lucke Phil Plant Billy Sullivan Royce Tate Robert Welch Tom Wimberly Nominations for term ending March 1997 : Joe Fulton Joe B. Jessel Jeff Jung Richard Leshin George Lyford Robert Rowling Jim Scott ATTACHMENT A • • -try?". C n1 tili, 111100 Date 03/16/94 CC Area Convention/Vis Bureau Page 1 07-93-2852 Budget vs Actual Rept 5990 For the Period 02/01/94 Through 02/28/94 Account - - - - Current Period - - - - - - - Year-To-Date - - - Annual Description Actual Budget Variance Actual Budget Variance Budget INCOME Cash Over/Under 0 0 0 15 0 15 0 COST OF GOODS SOLD Merchandise/Material Purchases 0 0 0 445 0 -445 0 Discounts Taken 0 0 0 0 0 0 0 COST Of GOODS AVAILABLE 0 0 0 445 0 -445 0 COST OF GOODS SOLD 0 0 0 445 0 -445 0 GROSS PROFIT 0 0 0 -430 0 -430 0 OPERATING EXPENSES Salaries 43304 44275 911 311465 309448 -2011 530825 Fica Contributions 3189 3005 -184 20549 21754 1205 36779 Uneiployaent Contributions 0 589 589 823 4262 3439 7207 Insurance, Personnel Benefits 4536 4035 -501 29772 29223 -549 49402 Pension Contributions 2327 2182 -145 8153 19460 11307 30371 Pre-Tax Deductions 25 0 -25 252 0 -252 0 TOTAL SALARY RELATED EXPENSE 53381 54086 705 371015 384141 13132 654584 GENERAL EXPENSE Bank Service Charges 0 0 0 120 0 -120 0 Sub - Contracts 8815 5400 -3415 49230 41800 -7430 61000 Accounting,Legal,Profssnl Fees 286 980 694 12801 5100 -7701 10000 Bad Debt 0 0 0 495 0 -495 0 Directors Expenses -494 250 144 1029 1250 221 2500 Dues and Subscriptions 597 620 23 5990 6436 446 9550 Travel/Entertainient 0/S 2016 1339 -671 12124 9223 -2901 15900 Equipient Rental / Lease 354 1435 1081 5218 6675 1457 13852 Rent/Utilities/Bldg Maint 2318 3461 1143 18974 21616 2642 38443 Bgpit Repair/Service/Maint 950 718 -232 5299 4168 -1131 7729 Event Hosting-Local 5025 1818 -3207 22911 26908 3997 65479 Event Hosting-Transportation -2298 118 2416 64 1318 1254 1879 Autosobile Lease Expense 487 490 3 2928 2950 22 5400 Telephone 5021 4499 -522 28140 25181 -2358 51802 Postage/Freight 2109 4817 2708 19351 27277 7920 50282 Local Meetings/T & E 200 440 240 2216 3706 1490 5879 Coiputer Supplies/Kaint 1127 0 -1127 35058 36069 1011 36469 Insurance-General 5 0 -5 10610 10150 -460 19150 Photography 1700 0 -1700 5525 7000 1475 7000 Marketing Research Fees 0 3000 3000 815 21000 20185 36000 Faas/Site Inspections 211 7950 7739 3120 15550 12430 25000 Trade Shows 8366 7600 -766 37902 38120 218 49000 Staff Developaent/Educations 2946 3000 54 4933 3300 -1633 5800 Copying/Printing 1038 1029 -9 6175 8419 2304 13342 Office Supplies 606 2189 1583 11158 12449 1291 23112 Cinet/Tnet 116 122 6 2418 1190 -1228 1800 Capital Equipaent 2123 0 -2123 12672 24600 11928 24600 ATTACHMENT B-1 *11110 *00 Date 03/16/94 CC Area Convention/Vis Bureau Page 2 07-93-2852 Budget vs Actual Rept 5990 For the Period 02/01/94 Through 02/28/94 Account - - - - Current Period - - - - - - - Year-To-Date - - - Annual Description Actual Budget Variance Actual Budget Variance Budget Sparkler Expenses -255 1259 1514 2990 7814 4824 12977 Miscellaneous Expenses 211 465 254 2910 1825 -1085 4032 Magazine Advertising 21672 7232 -14440 222474 212752 -9722 365940 Broadcast Advertising 0 0 0 25468 25000 -468 50000 Prograi Inserts 1265 0 -1265 0 0 0 0 Collateral: Production 362 10355 9993 61453 56355 -5098 96012 Collateral: Printing 702 1717 1075 26406 54177 27771 68454 Visitor Infortation Services 0 0 0 15284 15284 0 15284 Other Operational Expenses 50 0 -50 4851 0 -4851 0 Marketing Contingency 1000 7746 6146 4129 37011 32882 75141 TOTAL OPERATING EIPENSE 122014 134195 12121 1054261 1156480 102219 1923992 TOTAL OPERATING INCOME -122074 -134195 12121 -1054691 -1156480 101789 -1923992 OTHER INCOME Hotel-Motel Tax/Marketing Fees 100000 100000 0 936627 936627 0 1536627 Lexington - Debt Repayient 0 0 0 264738 264738 0 264738 Metbership Incoie 56 0 56 0 0 0 0 Event Hosting Inco.e 0 0 0 1105 0 1105 0 Cooperative Proiotions 2538 0 2538 31529 23300 8229 23300 Service Fees 10 0 10 6810 0 6810 0 Dividends Received 0 0 0 188 0 188 0 Interest Earned 698 0 698 5492 0 5492 0 Museut Co-op Incoae 8334 8334 0 58338 58338 0 100000 TOTAL OTHER INCOME 111636 108334 3302 1304827 1283003 21824 1924665 NET INCOME BEFORE TAX -10438 -25861 15423 250136 126523 123613 673 NET INCOME AFTER TAI -10438 -25861 15423 250136 126523 123613 673 : :::::: :: :::::::::::: -::: 2 zest 22:2222222:e: ATTACHMENT B-2 11100 Date 03/16/94 CC Area Convention/Vis Bureau Page 1 07-93-2852 Balance Sheet Rept 6005 As of 02/28194 ASSETS CURRENT ASSETS 000007 Petty Cash $ 75.00 000000 Checking-CCNB 39,487.28 000008 Checking-CCNB 4,605.93 000000 Honey Harket-CCNB 270,905.95 000007 Checking/Visa/HC-TCB 24,752.54 000001 ML Ready-asset account 21,360.52 TOTAL CASH $ 361,181.22 000000 USS Lexington Receivable $ 30,085.03 000000 Accounts Receivable-Trade 27,392.41 TOTAL RECEIVABLES $ 57,477.44 000007 Inventory-Merchandise $ 12,897.00 000000 Travel Advances 500.00 000002 Travel Advances 994.00 000003 Travel Advances 100.00 000005 Travel Advances 250.00 TOTAL OTHER CURRENT ASSETS $ 15,341.00 TOTAL CURRENT ASSETS $ 434,005.66 LAND/BUILDING/EQUIPMENT 000000 Buildings $ 1,080.00 000000 Furniture & Fixtures 75,226.00 000004 Furniture & Fixtures 315.00 000000 Less: Accuaulated Depreciation (51,591.78) 000000 Machines & Equipaent 113,643.00 000000 Less: Accuaulated Depreciation (69,479.24) TOTAL LAND/BUILDING/EQUIPMENT $ 129,192.98 DEFERRED ASSETS 000000 Other Prepaid Expenses $ 7,944.09 000002 Other Prepaid Expenses 1,995.77 000003 Other Prepaid Expenses 4,323.04 000005 Other Prepaid Expenses 281.42 TOTAL DEFERRED ASSETS $ 14,544.32 TOTAL ASSETS $ 577,742.96 ATTACHMENT B-3 4410 411110 Date 03/16/94 CC Area Convention/Vis Bureau Page 2 07-93-2852 Balance Sheet Rept 6005 As of 02/28/94 LIABILITIES & OWNER'S EQUITY LIABILITIES CURRENT LIABILITIES 000000 Accounts Payable-Trade $ 25,582.31 000000 Accounts Payable-Other 4,400.00 000002 Unearned Revenue 31,363.10 TOTAL SHORT TERM PAYABLES $ 61,345.47 OTHER CURRENT LIABILITIES 000007 Accrued State Sales Tax $ 342.38 TOTAL OTHER CURRENT LIABILITIES $ 342.38 TOTAL CURRENT LIABILITIES $ 61,687.85 TOTAL LIABILITIES $ 61,681.85 SHAREHOLDER EQUITY 000000 Fund Balance $ 1,573,433.71 000002 Fund Balance (506,781.95) 000003 Fund Balance (442,464.71) 000004 Fund Balance (244,616.08) 000005 Fund Balance (69,212.84) 000007 Fund Balance (2,929.36) 000008 Fund Balance (48,664.45) 000000 YTD Net Incoie 962,461.50 000002 YTD Net Incoie (297,164.98) 000003 YTD Net Incote (249,403.54) 000004 YTD Net Incote (119,380.10) 000005 YTD Net Incoie (46,383.10) 000007 YTD Net Incoae 7,157.01 TOTAL SHAREHOLDER EQUITY $ 516,055.11 TOTAL LIABILITY/OWNER EQUITY $ 517,742.96 ATTACHMENT B-4 V MONTHLY OPERATING BUDGET VARIANCE REPORT - BOD 5010 - Salaries 5020 - FICAI Contributions 5021 - FICA2 Contributions 5030 - Unemployment Contributions 5040 - Insurance/Personnel Benefits 6020 - Sub-contracts Computer Services over Budget 6030 - Professional services 6540 - Directors Expenses 7020 - Rent,Utils,BIdg Maint. 6550 - Dues & Subscriptions 6560 - Travel/Entertainment O/S American Bowling Congress was not budgeted $619.16. 7030 - Eqmt Repair/Service/Maint. Typewriter Maint Agrmnt - Not budgeted $330.00 Alarm System in lobby not budgeted $260.00 7040 - Event Hosting - Local Over for the period - YTD is under budget. 7050 - Telephone Additional usuage due to Fulfillment Service being in House. 7060 - Postage/Freight 7070 - Local Meetings T & E 7080 - Computer Supplies/Maint. Over for the period - YTD is under Budget. 7100 - Photography Over for ther period - YTD is under Budget. ATTACHMENT B-5 W I V 7130 - Fams/Site Inspections 7140 - Trade Shows Over for the period - YTD is within Budget. 7150 - Staff Development/Education 7160 - Copying/Printing 7170 - Office Supplies 7210 - Capital Equipment Over for the period - YTD is under budget. 7230 - Sparkler Expenses 7310 - Magazine Advertising 7320 - Newspaper Advertising 7330 - Broadcast Advertising 7350 - Program Inserts This is an offset to last month - YTD is -0-. 7360 - Collateral: Production 7370 - Collateral; Printing 7390 - Operational Expenses 7400 - Hotel Reservation Expenses 8010 - Membership Income 8020 - Event Hosting Income 8030 - Cooperative Promotions ATTACHMENT B-6