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TDC Minutes 09/09/2002 RSeptember 9, 2002 TRANSCRIPT OF THE MEETING OF THE TOURISM ADVISORY BOARD Naples, Florida, September 9, 2002 LET IT BE REMEMBERED, that the Tourism Advisory Board, in and for the County of Collier, having conducted business herein met on this date at 9:00 a.m. in REGULAR SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Commissioner Jim Coletta V.Mayor-Gary Galleburg Susan Becker Rhona Saunders Councilman E. Glen Tucker Kevin Durkin Joe DiNunzio Jerry Thirion, Jr. Gene Vaccaro ALSO PRESENT: D. E. "Bleu" Wallace, Director -CDES Operations Dept. Jacqueline Hubbard Robinso - Co. Attorneys Office Thomas Nohl- County Staff George Percel - Chr. Tourism Alliance of Collier Co. Susan Kelley - Kelley Swofford Roy, Inc. Kathy Prutos - Prutos Public Relations Inc. Sue Chapin - Manpower Services I. Call to Order Pledge of Allegiance was recited Roll Call was taken - a Quorum was established. II. Changes & Approval of Agenda "Bleu" Wallace had a request from Parker Beach Restoration Inc. to be placed on the agenda to address the Council. Jerry Thirion suggested it not be accepted so that materials can be reviewed ahead of time & should go before the CIC first. It was a consensus not to be placed on the agenda. It was also noted that KSR was present and would have a report on the Governors Conference & will be placed at the end of the Agenda. Mr. Vaccaro arrived at 9:10 AM. Mr. DiNunzio moved to approve agenda with changes as stated. III. Approval of Minutes -June 18, 2002 Mr. Wallace made a change to the minutes stating a correction to the staff communications memorandum (page 2) to state that Mr. Galleburg asked not to see any other expenses such as the $3,000 worth of operating costs to be reimbursed from TDC budget to Utility regulation. Mr. Wallace stated there would be no more operating expenses but would be sometime for staff to come back, & is included in the agenda later on. Mr. Wallace would like the Council to amend the minutes as stated by staff. Mr. Galleburg asked a change be made (page 6) under item 5 very end of the 3rd line, sentence begins after Sept. 1, 2001 - he suggests that it read "20% impact, which slowly "improved" rather than "increased" throughout January & February ending with about a 5% decrease. Gary Galleburg moved to approve the changes to the minutes of June 18, 2002 as discussed, seconded Susan Becket, Carried unanimously. IV. Items Requiring Action by the Tourist Development Council 1. Naples Botanical Gardens Request Mr. Wallace stated they received a letter from the Naples Botanical Gardens on July 31, 2002 and are requesting a one year extension on a TDC grant that they received July 1, 2001 that is supposed to be in effect this fiscal year. The funds can be rolled over into the next year and will require an amendment to the Contract or agreement changing the expiration date. It would not affect the 2003 grant that has already been approved by the TDC and the Board. Gary Galleburg moved to approve the request for the extension, seconded Mr. Durkin, carried unanimously. 2. Tourism Alliance of Collier County Request for Funding July 8, 2002 staff received letter from them and staff has no recommendation but to consider the legal opinion that has been rendered that's in the packet and the request from them. They are now under contract with the County to provide recommendation to staff only. He asked Council to hear from 2 Mr. Purcell. SPEAKER: George Percel - Chairman Tourism Alliance of Collier County. He stated that the Tourism Alliance is requesting funds and feels it is more of a moral obligation than a legal one. The Tourism Alliance was created by the County Commissioners in 1999. Many costs have been paid out of the administrative funds and the Tourism Alliance has no other funding and never has had any other source of funding other than what was provided by the County Commission and Bed Tax. So at this time Mr. Percel is asking for funds to terminate the affairs of the Tourism Alliance in an orderly fashion, and continue in an advisory position for the County. Mr. Tucker stated it is not a legal obligation to provide funds, but a moral one, and would move to approve the request for the funds both for the storage and the accounting services. Seconded Mr. Durkin. It was noted that the documents are being stored and need to be kept for 7 years. A question was asked if this has ever been done before to defray closeout costs to a vendor because they no longer will be doing business with the County. Mr. Wallace could not recall but has only been in this particular position for the past nine months. Jacqueline Hubbard Robinson, Co. Attorneys office, stated that in order for the BCC to approve this expense they would have to tie it into a public purpose. It appeared to her in reading of the contract that it wasn't part of the negotiating contract because it is an item that is personal to the corporation. The moral and legal issues were discussed. Mr. Galleburg questioned the $7,000 cost for storage and why? He commented they could be stored in his garage. Mr. Percel explained he researched several storage areas and the least cost was anywhere from $50-110.00/mo - he took a medium price range and multiplied it by 84 months. He would also be agreeable if the County would store them so they had access to them when needed. He also stated they exist only because it was requested, they are all volunteers and there are no other sources of funding for the corporation other than the Tourist Development, and it may not be a legal issue, but being that the original contract asked a corporation to be formed, he feels it is then implied that the County has asked the corporation to be formed in this matter. Commissioner Coletta suggested that when Mr. Percel takes the issue to the BCC he have some exact figures. Mr. Coletta stated the motion was amended to state the purpose of the motion that it is being made for a moral reason. Mr. Tucker agreed to the amendment and stated he is concerned about public purpose, supporting volunteers, and that it is a moral issue. Mr. Wallace felt the county could archive the records. Discussion followed on the moral & legal obligations. Motion was carried unanimously. Gary Galleburg stated it is not just the closeout costs, and not that they aren't legitimate, just that the proper information wasn't given along with the professional costs as well. He felt he didn't quite understand the $7-7,500 Hopefully the information given to the Commission will justify the amount. Commissioner Coletta asked staff if they would review the video tape and state exactly the wording of the motion to clear up any misunderstanding. 3. KRS Request for Extension for Unused Funds Mr. Wallace stated KRS is asking that the unused fimds (dedicated to advertising promotion to fiscal year 2002) of which the BCC can roll over in 2003 by amending the expiration date of the Contract. It was stated that the Council & County Commissioners made a decision that this is a good spot for funds and it will occur in the next fiscal year rather than this fiscal year. Mr., Galleburg moved to approve the funds. Seconded Rhoda Saunders. Carried Unanimously. 4. Contract with Mac Laughlin Tourism Management Mr. Wallace felt they need the help of tourism professionalism for next years advertising promotional plan and does not feel qualified himself to do the proper job. The Tourism effort of hiring someone has not been successful; due to the fact the person offered the position declined. Since Ms. MacLaughlin of MacLaughlin Tourism Management was already on board doing the background checks, she was asked to assist them for 90 days on a temporary basis in developing an advertising plan and to have a joint workshop with the BCC later in the year. She agreed with a fee schedule of $25,000 plus travel with the Contract not to exceed $30,000. Moved by Mr. Tucker to approve the above Contract. Seconded Mr. DiNunzio. Discussion followed on the time frame to develop the advertising plan and whether it can be done in 90 days. Mr. Wallace stated he hopes to have a Tourism Manager on board by the end of October. He also stated there are no provisions for additional monies at this time, nor extend the time of her contract if it takes longer than December 31st. The sum of the contract would be paid pro- rata & not up front upon approval. Any details will be worked out with Ms MacLaughlin. Motion Carried unanimously. 4 5. Reimbursement of Utility Regulation for Staff Time. Mr. Wallace recommended transferring $20,000 for the Advertising Fund to Utility Regulation for reimbursement of Utility Regulation staff time dedicated to the Tourism effort. He felt this was a modest amount and no TDC funds have been expended in the salary line item since December of 2001 and he felt it appropriate to be transferred. Commissioner Coletta moved to approve the transfer. Seconded Rhoda Saunders. Carried Unanimously. 6. Disposition of Dated Tourism Related Invoices. Mr. Wallace stated they are getting down to the older invoices and resolving some at this time & should have them all researched soon. There are 2 categories. One is Category 'T' Invoices, and Category "II" Invoices. He covered Invoices from I-1 through 1-5. Staff recommends approval of Invoices I-1 through 1-4. Mr. Galleburg expressed he fully understands the staff inherited the fact they don't have full information concerning the invoices in question but is questioning the delay on behalf of vendors not submitting their invoices in a timely manner, if that is the case. Mr. Wallace stated he is just now getting caught up with the invoices and in some cases a delay on the vendor's part. He also stated there was a value received for these services and that is why staff is recommending approval for the "I" category invoices. Commissioner Coletta moved to approve. Seconded Mr. Tucker. Discussion followed on Item "I-2" for Marketing Strategy. Ms. Saunders wondered if that was covered by retainer, and noticed that it stated "was recently provided to staff', wondering if it was missed on the books for over a year and a half. Susan Kelley, President of Kelley Swofford Roy, Inc. (KSR) stated they have a retainer which covers public relations and such things as strategy is broken out into what they call a "project" It is a special focus workload and a major document. As far as the timing on the billing was concerned she stated with the 5-700 invoices they do a month, sometimes they just screw-up. They try to do their best but sometimes do get behind. She answered Ms. Saunders question concerning the billing to one person. It is billed under one name, although others contribute to the workload or project. Mr. Durkin asked if the actual report could be seen by the Committee. Commissioner Colletta withdrew his motion and Mr. Tucker withdrew his second. Discussion followed and Mr. Vaccaro wondered whether it is the Committees responsibility to second guess the County and the Agency's recommendations - and stated they either except the creative responsibilities and rule on those or vote on the motion as presented. Mr. Wallace explained effective 12/01/2001 the county entered into a separate contract with each of the vendors. The KSR contract, after receiving the advertising plan in April that was approved became a part of the contract; and the committee has not seen any invoices dated since 12/2001 because the line items in the advertising plan made part of that contract 5 does not require the committees recommendation for approval. Since the plan has been recommended for approval by the Board or the committee, any invoices submitted under the line items are payable, without Board or Committee approval. The only things you are seeing are invoices prior to that time they are being cleaned up. You will not see any more invoices in the future. Ms. Saunders moved to approve items "I-1 through 1-5 except for 1-2". Seconded Mr. Tucker. Carried unanimously. Mr. Tucker moved to approve "1-2". Seconded Mr. Thirion. Discussion followed. Motion carried - 5 yes - 4 no - Durkin, Saunders, Vaccaro & Becker voting NO. Mr. Wallace continued with Category "II" Invoices. He stated Invoices "II-I" and Invoices "11-2" are questionable & not recommending for approval. He introduced Kathy Prutos, representing Prutos Public Relations, to discuss the invoices in question. She stated the invoices were for travel relating to "out of pocket" expenses for the Governors Conference ($1,481.99) and an Operator Familiarization Trip ($150.00). Mr. Durkin stated that this has been going on for some time and it is a fact- finding, net-working media event, a requirement for any convention or visitor bureau. He feels it needs to be paid. Mr. Durkin moved for approval. Seconded Mr. Thirion. Mr. Wallace stated that legally the contract did not provide for it and the BCC has already disapproved both payments. That was staffs basis for not recommending approval - he did not recommend disapproval. Commissioner Coletta mentioned his recollection of turning it down was because of the legal opinion they received. Mr. Galleburg stated the Board made a decision and that everything can't always come back to the committee. Mr. Wallace stated that the Deputy County Attorney asked if the item was reconsidered by the TDC could it be reconsidered by the Board. He then asked Kathy Prutos if she wished to ask for reconsideration. He also mentioned that KSR attended the Governors conference this year and apparently is in their budget & will not get a separate bill for that event. Mr. Wallace also stated he will be attending several meetings at his discretion & feels as a director of the County it is a beneficial. Ms Prutos stated she would never have attended the Governors Conference on Tourism and spent 4 days, would never have rented a car, would not have incurred these expenses for a FAM trip if she would not have been advised by the Tourism Alliance Tour Director. Jacqueline Hubbard Robinson clarified that in the verbatim minutes dated Nov 23, 2001 when the issue was raised before the Board and reviewed by her office - one point she wanted to make clear was that the contract that existed was the contract with the Tourism Alliance whom had a contract with the County, Ms. Prutos did not. The funds that were set aside for Tourism Alliance were used to fund her contract. Her agreement with the Tourism Alliance was drawn up between those 6 two parties and not the County. These expenditures should have been set forth in that agreement with the Tourism Alliance and they were not. She personally sees no reason to change the opinion legally. Kathy Prutos stated she had a contract for administrative expenses, and this was not administration, it was a travel industry expense- approved by the Tourism Alliance Board of Directors according to her Contract with them. She went so far as to ask the proper procedure for filing expenses. She feels she did a good job for everyone. Mr. Durkin felt it was the right thing to do and it should go back to the BCC. Discussion followed on the invoicing, legal opinion, legal obligation, what value was gotten, and whose responsibility it is to pay the invoice. Commissioner Coletta stated he will not approve it because it wasn't preauthorized by the Commission. He felt the subject could be talked about all day, and wondered if she had gone to the Clerk of Courts, Commission, or County Attorney - she stated she had not - she had a Board of Directors she reported to with monthly meetings that had been documented. The motion to approve payment Category "I-l"Invoice was voted upon and carried. S-Yes, 4-No. Becket, Saunders, Coletta & Galleburg voting no. Mr. Wallace presented "11-2" invoice and asked Susan Kelley to give her opinion of why it should be paid. The staff felt this was also questionable. She explained they were researching a Food & Wine event for the County. Travel was billed for her & John Berry, meeting with other areas that have held the event, and numerous hours spent on a proposal for a special events application. Other issues were given but put on the "back burner". She still feels it is a good idea for the County. Jacqueline Hubbard Robinson stated this matter has been reviewed numerous times and the BCC made it very clear that the Board would only support one Wine & Cheese event which is the one at the Ritz Carelton for the Boys & Girls Club. Her recollection was they were aware no funds were to be expended to support a second Wine & Cheese event. Mr. Durkin moved not to approve the Category "II-2" Invoice. Seconded Mr. DiNunzio. Mr. Vaccaro stated that they fund events and not "ideas" for events. He feels this is a concept brought to them to be paid for and would not want to start a precedent. Carried unanimously. Mr. Wallace got a consensus for the next meeting to be held on October 21, 2002 - 9:00-12:00. 7. KSR - Presentation of Governors Conference. Susan Kelley gave her report that it was the largest ever. The Governor attended for the first time to her recollection. He is now starting to embrace the impact of 7 tourism on the state of Florida. The mood and tone was not as upbeat in year's past. Each speaker spoke of slow recovery and an air of pessimism. She stated terrorism is a part of our lives now and we are learning to live with it. A consultant on security spoke about their impact on tourism & its implications. Mr. Tom Nohl, staff member, viewed the video tape concerning the motion made earlier in the meeting concerning the storage and accounting services for the Tourism Alliance dissolution. He stated there was an original motion made by Mr. Tucker to approve funds both storage and accounting services. Then a second by Mr. Durkin. After that he stated there was discussion regarding an amendment to the motion, (from what he could determine) and the Council was to add a preamble that the County has a moral obligation to support the Tourist Alliance volunteers based on direct involvement of the BCC. The volunteers supported the tourism effort which has served the public purpose, and the amount of the storage costs will be determined at a future date. Other things were discussed, but that is what he saw from the tape. He did not see a formal amended motion with a second, but there was discussion. Mr. Tucker stated he did say he agreed to have his motion amended accordingly with the above statements. Mr. Galleburg stated that his point was focusing on the fact that there was a proposal before the committee for a specific cost and was important to him that they did not adopt that cost. He received an acknowledgment from Mr. Tucker. Mr. Wallace mentioned after he determines what the costs would be for storage he would accept that as part of his operating budget. An invoice is still not paid for the original incorporation for the Tourism Alliance. The fees were $300.00 and now up to $600.00 with late fees. Mr. Durkin moved to pay the start-up costs. Mr. Durkin withdrew his motion for lack of a second. This will be brought back to the next meeting. (Invoices & legal fees.) Commissioner Coletta asked to have the late fees dropped. Ve Council Discussions: Mr. Tucker- no comments. Mrs. Becker- she wanted to reiterate the impressive job Mr. Wallace does in answering the Committees questions and the professionalism shown. Mr. DiNunzio- no comments. Commission Coletta - apologized to Mr. Thirion for over-reacting earlier in the meeting, also would like to bring up the 1% increase to 8 the tourist tax at the next meeting. Would like the item included on the next agenda. Mr. Thirion- no comments. Mr. Durkin - no comments. Mr. Galleburg - When addressing the Tourism tax at the next meeting he would like to know the parameters and freedom the committee can act upon. Mr. Vaccaro- no comments. Commission Coletta adjourned the meeting at 11:02 AM. 9