Agenda 11/10/2009 Item #17B
Agenda Item No. 178
November 10, 2009
Page 1 of 9
EXECUTIVE SUMMARY
/.-.-~
Recommendation that the Board of County Commissioners adopts an Ordinance amending
Ordinance No. 92-60, as amended, the Collier County Tourist Development Tax
Ordinance, in order to: (1) reallocate $500,000 of the annual funds set aside for
Catastrophe Resen'es for tourism destination marketing for a period of one year; and (2)
to reallocate $500,000 of the $2,000,000 per year set aside for Major Beach Renourishment
Reserves for tourism destination marketing for a period of one year.
OBJECTIVE: That the Board of County Commissioners (Board) adopts the attached Ordinance
amending Ordinance No. 92-60, as amended, the Collier County Tourist Development Tax
Ordinance, in order to: (1) reallocate $500,000 of the annual funds set aside for Catastrophe
Reserves for tourism destination marketing for a period of one year; and (2) to reallocate
$500,000 of the $2 million per year set aside for Major Beach Renourishment Reserves for
tourism destination marketing for a period of one- year.
,-
CONSIDERATIONS: At its October 27,2009 regular meeting (Agenda Item lOA), the Board
was asked to review Tourist Development Council (TDC) Subcommittee recommendations, as
approved by the TDC, and provide direction to the County Manager for further action to include
authorization to process all necessary budget amendments should the Board direct the movement
or use of TDC funds. Discussion included the Subcommittee's recommendation to annually
reallocate $500,000 from both the Catastrophe Reserves and the Major Beach Renourishment
Reserves (Fund 195) to the Marketing Fund (Fund 1 84) for use in tourism destination marketing.
Although the TDC Subcommittee recommended this reallocation for two years, the Board
directed the County Attorney to prepare an amending Ordinance redirecting these funds for a
period of one year.
LEGAL CONSIDERATIONS: The proposed amending Ordinance was drafted by the County
Attorney, duly advertised, and is legally sufficient for Board action. - JAK
FISCAL IMP ACT: The estimated cost of advertising the amending Ordinance is $300.00.
GROWTH MANAGEMENT IMP ACT: None.
RECOMMENDATION: That the Board of County Commissioners adopts the attached
Ordinance amending Ordinance No. 92-60, as amended, the Collier County Tourist Development
Tax Ordinance, in order to: (l) reallocate $500,000 of the annual funds set aside for Catastrophe
Reserves for tourism destination marketing for a period of one year; and (2) to reallocate
$500,000 of the $2 million per year set aside fo~ Major Beach Renourishment Reserves for
tourism destination marketing for a period of one year.
Prepared By: Jeffrey A. Klatzkow, County Attorney
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..L \,AS'-' ..L V1. ..L
Aoenda Item [\]0. 178
fbvember 10, 2009
Page 2 of 9
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
17B
Recommendation that the Board of County Commissiollers adopts an Ordinance amending
Ordinance No. 92-60, as amended, the Collier County Tourist Development Tax Ol-dinance,
in order to: (1) reallocate S500,000 of the annual funds set aside for Catastrophe Reserves
for tourism destination marketing for a period of one year; and (2) to reallocate Sl500,OOO of
the S2,OOO,OOO per year set aside for Major Beach Renourishment Reserves for tourism
destination marketing for a period of one year.
Meeting Date:
11/10/20099:00:00 AM
Prepared By
Jeff Klatzkow
County Attorney
Date
County Attorney
County Attorney Office
1012912009 4 :02:02 PM
Approved By
Jeff f-(latzkow
County Attorney
Date
County Attorney
County Attorney Office
10/30'2009 3:17 PM
Approved By
OM8 Coordinator
OMS Coordinator
Date
County Manager's Office
Office of Management & 8udget
11/2/20095:00 PM
Approved By
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
11/3120098:41 AM
Approved By
Leo E. Ochs, Jr.
County Manager
Date
Board of County
Commissioners
County Manager's Office
11/3/2009 i2:58 PM
10,2:J09
Page 3 of ~3
ORDINANCE NO. 2009-_
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NO. 92-60,
AS AMENDED (THE COLLIER COUNTY TOURIST DEVELOPMENT
TAX ORDINANCE) BY AMENDING SECTION THREE - USES OF TAX
REVENUES, IN ORDER TO: (1) REALLOCATE S500,000 OF THE
ANNUAL FUNDS SET ASIDE FOR CATASTROPHE RESERVES FOR
TOURISM DESTINATION MARKETING FOR A PERIOD OF ONE
YEAR; AND (2) TO REALLOCATE S500,000 OF THE $2,000,000 PER
YEAR SET ASIDE FOR MAJOR BEACH RENOURISHMENT
RESERVES FOR TOURISM DESTINATION MARKETING FOR A
PERIOD OF ONE YEAR; PROVIDING FOR CONFLICT AND
SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF
LA \VS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, Section 125.0104, Florida Statutes, provides for the levy of a local option
tourist development tax by any county; and
WHEREAS, on August 18, 1992, the Board of County Commissioners (Board) adopted
Ordinance No. 92-60, which levied and imposed a 2% tourist and development tax throughout
Collier County for the purposes permitted in Section 125.0 I 04, Florida Statutes, as amended; and
\VHEREAS, through adoption of Ordinance No. 95-56 and Ordinance No. 2005-43, the
Board levied an additional 3rd and 4th percent tourist development tax; and
WHEREAS, the Board, by an extraordinary vote, desires to amend the uses of tax
revenue and the tourist development plan for a single year only; and
WHEREAS, the proposed amendments were presented to and approved by the Collier
County Tourist Development Council.
~OW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
SECTION ONE: AMENDMENT TO SECTION THREE OF ORDINANCE NO. 92-60,
AS AMENDED.
Section Three is hereby amended by adding new subsections (a)(6) and (a)(7) to read as fo11o,vs:
Section Three - Uses of Tax Revenues.
a) The tax revenues received pursuant to this division shall be used to fund the county
tourist development plan, which is hereby amended as follows:
Words Underlined are added; Words &ffi€k-1'fB'BBgl=t are deleted.
Page] of3
Agenda Item f'Jo. 178
November 10. 2009
Page 4 of 9
**************
(6) The sum of $500.000 annually allocated for Catastrophe Reserves from County
Fund 195 shall be reallocated to Fund 184 to be used for destination marketing for a period of
one year from enactment of this amendment, at which time this provision will expire and be of
no further force or effect unless further extended bv the Board.
(7) Five hundred thousand dollars ($500,000) of the Two million dollars ($2.000.000)
that is annually allocated for Maior Beach Renourishment Reserves from Countv Fund 195 shall
be reallocated to Fund 184 to be used for destination marketing for a period of one year from
enactment of this amendment. at which time this provision will expire and be of no further force
or effect unless further extended by the Board.
E61ill The above and foregoing tourist development plan may not be substantially
amended except by ordinance enacted by an affirmative vote of a majority plus one additional
member of the Board of County Commissioners.
SECTION TWO: CONFLICT AND SEVERABILITY.
In the event this Ordinance conflicts with any other ordinance of Collier County or other
applicable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held
invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and such holding shall not affect the validity of the
remaining portion.
SECTION THREE: INCLUSION IN THE CODE OF LA \VS AND ORDINANCES.
The provisions of this Ordinance shall become and be made a part of the Code of Laws and
Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or
relettered to accomplish such, and the word "ordinance" may be changed to "section," "article,"
or any other appropriate word.
SECTION FOUR: EFFECTIVE DATE.
This Ordinance shall be effective upon filing with the Department of State.
Words Underlined are added; Words Sffil€k Through are deleted.
Page 2 of3
5 of:j
PASSED AND DGL Y ADOPTED by a vote of a majority plus one of the Board of County
Commissioners of Collier County, Florida, this _day of
,2009.
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
, Deputy Clerk
By:
D01\T}{A FIALA, CHAIRMAN
Words Underlined are added; Words &ffitcl<-+ht~ are deleted,
Page 3 of3
Agenda Item No. 178
I\~ovember 10, 2009
Page 6 of 9
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners reviews the TDC
Subcommittee recommendations as approved by the Tourist Development
Council and provides direction to the County Manager or his designee for further
action including the authorization to process all necessary budget amendments
covering direction that involves the movement or use of TDC funds.
OBJECTIVE: Review the TDC Recommendations and direct the County Manager or
his designee for further action.
CONSIDERATIONS: A Sub Committee of the Tourist Development Council (TDC) was
appointed on March 23, 2009 by Chairman Fiala and held nine publically noticed
meetings - April 16, May 1 & 5, June 1 & 15, July 13 & 20, August 3 & 10, 2009.
The members of the Sub Committee included Murray Hendel, Chairman, Clark Hill, GM
Naples Hilton, Susan Becker, Tourism Concierge and Bob Miller, Everglades City
restaurateur.
At the Sub Committee's final meeting on August 10, the three members present (Mr.
Miller was absent) agreed to present their recommendations to the full TDC on August
24. The TDC then reviewed the recommendations and voted to recommend the
following to the County Commission:
1. The Funding of County Museums Operating Expenses by Tourist Tax Funds
should be phased out over a 3-year period beginning in FY 11 and ending in FY
13, reducing funding by 1/3 of the total County Museums operating budget each
year. TDC Vote 7-1.
2. The interest earned on Tourist Tax Funds should remain within those respective
funds (follow the principal) and not re-directed to the General Fund (001). Vote 8-
O.
3. The $500,000 annual set aside by County policy for catastrophe reserves from
Fund (195) should be redirected to Fund 184 for destination marketing for a
period of two years in the amount of $500,000 for each of the next two fiscal
years for a total of $1 million. It was further clarified that these funds would not be
a loan, but a redirection for two years. Vote 6-2.
4. The Collier County Tax Collector's Office or County Code Enforcement should
dedicate a person, (employee or outside individual or organization) to be solely
responsible for collecting unpaid Tourist Development Taxes due on short term
rentals of 6 months or less. Vote 8-0.
Agenda item r,Jo. 178
r'Jove~lber 10, 2C09
Page 7 of 9
5. Support a Class Action Lawsuit if agreed to by the Collier County Commission to
collect the accurate amount of tourist development tax due the County for online
bookers of hotel rooms such as Expedia, Travelocity, Hotels.com and others.
Currently these companies are charging the consumer a service fee based on
the net amount of the transaction, rather than the full consideration. This fee may
or may not cover the correct amount of taxes due. Vote 8-0.
6. The Convention and Visitors Bureau (CVB) publication called "Florida's Last
Paradise" and the Greater Naples Chamber of Commerce publication called
"Naples on the Gulf' should be combined into one official tourism publication for
the entire destination. Vote 7-0 (seven members present; one member excused).
7. Create a new position called "Information Center Coordinator" or similar title to be
under the direction of the Greater Naples Chamber of Commerce and funded
jointly by the Chamber and the CVB to coordinate literature, training and
research for all area visitor centers in Naples, Marco Island, Everglades City and
Immokalee. Vote 7-0.
8. Redirect $500,000 of the $2 Million per year currently allocated by County Policy
from Fund 195 for Major Beach Renourishment Reserves be redirected to Fund
184 for destination marketing for a period of two years. It was further clarified that
this would not be a loan of funds, but a redirection of funds for marketing for two
years. Vote 4-3.
9. Recommend to not increase the Tourist Development Tax Rate at this time given
the current economic recession. Vote 6-1.
10. $750,000 from Emergency Tourism Advertising Fund (196), supplemented by
$350,000 in excess unobligated fund balance from year ending FY 2009 within
Marketing Fund (184) should be approved for use in the late spring and through
the summer to fund the continuance of the destination marketing program from
mid January through August 2010. This plan would replicate the highly
successful marketing campaign of 2009. Vote 7-0.
In a letter dated August 21, 2009, The Naples City Council has asked "that the Board of
County Commissioners reject the recommendations of the TDC subcommittee to divert
beach renourishment funds for tourism marketing and promotion."
In a letter dated September 25, 2009, The Marco Island City Council requested "that the
County Commissioners safeguard the integrity of the Emergency Beach Renourishment
Reserves on behalf of our constituency."
FISCAL IMPACT: Regarding TDC Subcommittee recommendation number 2, note that
interest is following the principal pursuant to Board direction and interest has been
posted to TDC funds since July 2009. Assuming the Board concurs with
recommendation number 3 and 10 under Considerations, a budget amendment totaling
AGenda Item ~,Jo. 178
'(jovember 10, 2009
Page 8 of 9
$1,000,000 will be necessary re-directing budget in FY 2010 from Catastrophe and
Beach Renourishment reserves within Fund (195) to Marketing Fund (184) increasing
the destination marketing appropriation. The fiscal impact associated with other
recommendations contained within this report is uncertain and will require time to
process and implement - if direction is provided. However, if TDC funds are not
earmarked for County Museum operations, General Fund (001) revenues will be
necessary to cover expected budget shortfalls.
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management
Plan as a result of this action.
COUNTY ATTORNEY FINDING: The TDC recommendations are in compliance with
section 125.0104, Florida Statutes, Tourist Development Tax. Several
recommendations above (1 t 3, 8, and 9) would require an amendment to the Tourist
Development Tax Ordinance which requires a super majority vote (majority plus one).
This item is legally sufficient for Board action and direction. - CMG
ADVISORY BOARD RECOMMENDATIONS: The Coastal Advisory Committee (CAC)
met on August 13, 2009 and reviewed the Sub Committee recommendations related to
the $500,000 per year redirection from the catastrophe set asides and major beach
renourishment reserve from Fund 195. The CAG voted 6-2 to oppose the redirection of
both beach renourishment reserve fund recommendations.
The TDC reviewed the Sub Committee recommendations on August 24, 2009 and
voted on each item as indicated above.
RECOMMENDATION: That the Board of County Commissioners reviews the
recommendations from the TDC Sub Committee as approved by the Tourist
Development Council and provide direction to the County Manager or his designee for
further action including authorization to process all necessary budget amendments
covering direction that involves the movement or use of TDC funds.
SUBMITTED BY: Jack Wert, Tourism Director
76 uylS1
NOTICE OF INTENT TO CONSIDER
ORDINANCE
Notice is hereby giveri that on Tues-
day. November 10, 2009, in tl1e Board,
room, 3rd Floor, Administration Build,
Ing. Collier county Government Ceo,
ter. 3301 East Tamlaml Tro.i1, Naples,
Florida, the Board of County Commis-
sioners witl consider the enactment
of a County Ordinance. The meeting
will commence at 9;00 A.M. The title
of the propos..d, Ordinance is astol'
lows: ..'
'-':"-,-... ','
AN ORDINANCE OF THE BOARD OF
COUNTY COMMISSIONERS OF COLLIER
COUNTY, FLORIDA. AMENDING ORDI,
NANCE.NO~ 92-60, AS AMENDED (THE
COLLIER COUNTY TOURIST DEVELOP,
MENT TAX ORDINANCE) BY AMEND,
ING,. .
SECTION. THREE , USES OF TAX REVE'
NUES; IN ORDER TO: (1) REAllOCATE
$ 500,000 OF THE ANNUAL FUNDS SET
ASIDE FOR CATASTROPHE RESERVES
FOR TOURISM DESTINATION MARKET'
ING FOR A PERIOD OF ONE YEAR: AND
(2)TO REALLOCA Tf $500,000 OF THE
$2 MilLION DOLLARS PER YEAR SET
ASIDE FOR MAJOR BEACH RENOUR-
ISHMENT RESERVES FOR TOURisM
DESTINATION MARKETING FOR A PE-
RIOD OF ONE YEAR; PROVIDING FOR
CONFLICT A,ND SEVERABILITY; PRO-
VIDING FOR INCLUSION IN THE CODE
OF LAWS AND ORDINANCES: AND
PROVIDING FOR AN EFFECTIVE DA TE-
Copies of. the proposed Ord inance
are on file-witl1.the Clerk to the Board
and <Ire available for inspection. All
interested' parties are invited to at~
tend and be heard,'
N6TE:NIj,:erson~wishing to speak
~7tha~he a8~~~~ j~a~,;;'I~t~~t~~gbSr;;~
to presentation: of the agenda item to
be adC1ressetf: Individual speakers
~!'~;beT~~I~~~~~o~ ~t:,':,t~~d~~id~':J
to speak. on behalf of an organization
or group is encouraged. If recog-
nized by the Cr.alrman. a spokesper.
son tor a group or organization may
be allotted 10 minutes to speak on an
item.
Persons wishing to have written or
graphic materials included i.1 the
Board agenda packets must sobmit
said material a minimum of 3 weeks
r.riorto the respective publiC hearing,
t~n3~l tga g:' c~:; ~ ~;ed mb~t~h~a ~ o;'d
shall be submitted to the appropriate
County staff a minimum of seven
~a!t~,r;lo~s~~ \~e p~~~~~ta~roa~~n5'efo~~
the Board will become a permanent
part of the reco,d.
~~[iJ;~sgr th~c8g:;dd~111t~ea:!~a~e~
card of the proceedings pertaining'
thereto and therefo'e. may need to
ensure that a v~rbatim record of the
proceedings IS made. wrnch record
Includes the testimony and evidence
upon which the appeal IS bas..d.
If you are' a' ~~rson with 'a cl'sa'bility
who needs any accommodation in or-
der to partiCipate in tnis proceeding,
you are entitled, at no cost to you, to
the provisJon of certain c.ssistar1ce.
Please contact tne Collier County Fa-
ciljt.les ..Management Df'partm~n~. lo-
cated at 3301 Tamiaml Trafl East,
Building W. Naples, FloClda 34!12,
(239) 252-8380. Assisted listening oe'
vices for the heartng impaired are
available in the County Commission,
ers' Office.
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
DONNA FIALA. CHAIRMAN
DWIGHT E. BROCK, CLERK
8y: Martha Vergara. Deputy Clerk
(SEAL)
October 3D 20M NolP"41::;
Item i'~o. 178
10.2009
Page 9 of 9
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