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
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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.
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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
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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
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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
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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.
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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
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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.
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