KXCI Board of Directors Minutes
Thursday, September 16th, 2010 5:30pm
Child and Family Resources, 2800 East Broadway, Tucson

I. Call to Order 5:37 pm
II. Attendance, Set Next Meeting Date and Time

Present: Susan Banes, Andrew Agnew, Cecily Crebbs, Marc Goodman, Michael Wyman, Katie Rogerson, Lois Grushka, Debra Rodriguez, Vance Sanders, Hardy Smith.

Absent: Mary Beth Haralovich, Keith Kanzler, Jamie Manser Anne Shivers (all excused).

III. Review and Adopt August 2010 minutes Vance Sanders asked about fiscal year end. Debra Rodriguez asked for a revision of the August minutes to include the addition of a volunteer at the development committee call party. Motion to adopt minutes by Vance Sanders, seconded by Debra Rodriguez.

IV. Committee Reports
a) Bylaws No meeting, nothing to report.

b) Finance The Finance Committee is looking at expanded financial reports in greater detail.

Report C – $14,588 loss for month of August, compared to a budgeted loss of ($17,136), for a positive variance of $2,549. Accountant fees were lower than expected in August. Net underwriting revenues were below budget by $2,300, a variance of about 10%. Total expenses were $4,618 less than budget. Susan Banes reminded the board that while we have done a great job of keeping expenses below budget and staying on budget overall, the best way to succeed financially is to grow. We need to increase revenues in order to succeed, and to continue meeting the needs of the station and the community.

Report D – The negative variances in underwriting revenue continue to be an issue and concern. Year-to-date revenues are below budget by $22,214, while overall net income is down only $6,690. This means that positive variances in other revenue catagories, as well as cost savings are making up for the negative variance in underwriting, i.e, the 1970 concert, which generated a profit of over $4000. The contract underwriting salespeople are not not doing as well as hoped. They are very effective with the downtown market, but they are not succeeding at attracting more lucrative or corporate

underwriters, not are they having success at maintaining adequate collection rates. A new strategy will be to hire a third person to target more mainstream business underwriters, i.e. banking, medical practices or other types of businesses that typically underwrite on public ratio stations. Discussion about concerns about the current salespeople’s feelings about this and whether corporate underwriting is the best move for KXCI was positive. The Board can set policy on underwriting, and all agreed that this can be a future Board conversation as the need arises. The staff also has the ability to exercise discretion when accepting underwriting. The economy is so tough on non- profits so many take donations from business they might not in perfect circumstances; all agreed that careful movement forward will be the best strategy. Meeting our goal to reach the Northwest part of town would also provide increased opportunities for underwriting support. Vance Sanders shared that if staff emphasized results and demographics to potential underwriters, i.e., a testimonial from Dr. Brian Davies, other medical practices like his would be more inclined to purchase underwriting.

Following up on the property tax issue. The county tax assessor denied our exemption application saying we didn’t fall under the appropriate categories of the Arizona Revised Statutes. Randy and Susan are going to appeal that decision. Vance Sanders mentioned Sage Property Tax as a possible resource to assist with our property tax issue.

Report E – Katie Rogerson had a question if we need to approve our financial reports. Susan said the Board approves the audit and that it is not a requirement that the Board approves the finance report. Andrew Agnew suggested we ask the auditor about this.

A special finance committee meeting will held on October 5th at the station at 6pm to review the draft budget. Following that meeting, a draft of the budget will go out to the full board for review and a vote at the next board meeting.

c) Personnel: Hardy Smith- nothing new to report. Need to have a meeting. As a result of the Board retreat we have some additional matters – we need to review the staffing plan. Randy Peterson has Duncan and Jason’s job descriptions done.

d) Board Development: Nothing to report

e) Development Next meeting was to be October 11 at KXCI at 6pm. Looking for love gifts and not corporate donations. Michael Wyman can’t do Mondays or Tuesdays. Debra needs to reschedule.
f) Election: Nothing to report.

g) Strategic Plan Implementation: Mary Beth not here. Nothing to report. h) CAB Development: Jamie absent, nothing to report.

i) Technology: Cecily Crebbs – the technology committee will meet after the pledge drive ends. Randy Peterson – We did change the template to a Public Interactive platform. We rearranged the buttons and blogs. It makes it easier to add links. We don’t have to worry about changing the HTML. We got the web pledging back up. It is much more user friendly. We have gotten more on-line pledging in this pledge drive than we have in the last five years. Currently the web form won’t allow for sustaining memberships. We need to redo the webstore so we can sell Tshirts and CD’s. Lois Grushka asked if you could choose your premiums over the website, that’s not available.

V. Volunteer Representative Report – Anne Shivers is not present.

VI. GM Report (staff report) Written report submitted by Randy Peterson. Additional comments: The membership drive is off to a good start, with $48,300 as of the meeting. We are officially taking a day off tomorrow, based on us reaching $50,000 by tonight. We will be running announcements. Randy has a meeting with the Fourth Avenue Merchants Association coming up to discuss enhancing the station’s presence of the street fair. 2nd Saturdays Downtown continue to do well for KXCI.

VII. New Business Randy Peterson presented a proposal for a 2011 meeting schedule for the Board of Directors. The proposed schedule calls for no meetings in April, July, September, and December. Discussion regarding the Board Retreat and why we have it in August. We can post all the dates ahead of time.

IIX. Call to Audience Alamo Steel – “I am thrilled to see the consistency on the subject of underwriting. We discussed that we don’t want the revenue from unscrupulous advertisers.”

IX. Executive Session No reason noted for executive session. X. Adjournment Debra Rodriguez moved to adjourn at 6:32pm.