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Agenda 02/28/2023 Item #16F 5 (Authorized expenditures through an exemption from competitive process to JW Marriott Marco Island for tourism promotional expenses)Proposed Agenda Changes Board of County Commissioners Meeting February 28, 2023 Move Item 16F5 to Item IID: *** This Item continued from the December 10, 2022 BCC Meeting.*** Recommendation to approve an increase of authorized expenditures through an exemption from the Competitive Process to JW Marriott Marco Island for tourism promotional expenses up to $85,000 per fiscal year for a five-year period and to make a finding that this expenditure promotes tourism, and that the exemption waiver is the best interest of the County. (Via separate requests of Commissioners Saunders, LoCastro, and McDaniel) Move Item 16177 to Item 11E: Recommendation to approve Change Order No. 3 and Change Order No. 4 under Agreement No. 19-7650, Golden Gate Golf Course Redevelopment Project, providing for a time extension of 730 days and a realigning of task funding with a zero -dollar change and to approve payment of invoices for work associated with Change Orders No. 3 & No. 4, which was verbally staff directed prior to approval of those change orders. (Project No. 80412) (Via separate requests of Commissioners Saunders and LoCastro) Move Item 16176 to Item 11F: *** This Item continued from the December 10, 2022 BCC Meeting. *** Recommendation to approve an increase of authorized expenditures through an Exemption from the Competitive Process to Visit Florida for membership fees and destination marketing programs up to $150,000 per fiscal year for a five-year period, to allow purchasing card use when the use of purchase order is not possible or practical, to make a finding that these expenditures promote tourism, and that the exemption waiver is in the best interest of the County. (Via separate requests of Commissioners McDaniel and LoCastro) Notes: Item 10D references 241h Avenue NW. That road is now known as Autumn Oaks Lane. TIME CERTAIN ITEMS: Items 10A to be heard at 9:30 AM: Discuss the request by Quiet Florida to reduce the noise pollution from illegal vehicle modifications. (Sponsored by Commissioner Saunders) Item 10B to be heard following 15B Staff Project Updates: Recommendation to review a draft Escrow Agreement from the Florida Department of Veterans' Affairs (FDVA) and Department of Financial Services (DFS) for the County to appropriate $30 million for the "State Veterans' Nursing Home" project using Infrastructure Sales Surtax Funding (Fund No. 318), convey property interest in the project site, and to approve and authorize the Chairman to execute the final version of the Escrow Agreement once received from the State. (Sponsored by Commissioner Saunders) 2/28/2023 11:53 AM 16.F.5 02/28/2023 EXECUTIVE SUMMARY Recommendation to approve an increase of authorized expenditures through an exemption from the Competitive Process to JW Marriott Marco Island for tourism promotional expenses up to $85,000 per fiscal year for a five-year period and to make a finding that this expenditure promotes tourism, and that the exemption waiver is the best interest of the County. OBJECTIVE: To promote Collier County as a preferred destination for group meetings, social events, sports activities, and vacations and bring more visitors which will increase the spending in Collier County. CONSIDERATIONS: The current Fiscal Year (FY) 2023 adopted budget for the Request for Proposal Enhancement program is $200,000 to be provided to various hotels and resorts in Collier County as incentive for specific events and conferences. While the amounts are paid directly to the hotel, the request for proposal enhancements are for specific events. No specific event receives more than $10,000 in Request for Proposal Enhancement expenditures. In FY 2023, the funds for requst for proposal enhancements have been spread across the hotels for events and conferences. Enhancements for six events are planned for the Naples Grande Beach Resort and for four events for the Ritz -Carlton. The determination for the Request for Proposal Enhancements is based on the potential hotel room nights and anxillary anticipated funds that will be brought to Collier County businesses that contribute to the Tourist Development Tax. The enhancement program is focused on promoting off-season or shoulder season to have continuous events year round that bring additional business to Collier County and increases tourism. On February 11, 2020, the Board approved an increase of the expenses to $100,500 per fiscal year for the prior exemption for JW Marriott Marco Island (Item 16.17.4) for a three year period. The form for the exemption expired in September 30, 2022. In FY 2021, the County spent $49,957 under the exemption. The Tourism Division has obtained exemption approval for up to $50,000 for FY 2023 by Procurement Division in compliance with the Procurement Ordinance. Currently, JW Marriott Marco Island has been allocated $37,500 for four separate events in FY 2023. However, it is anticipated that there will be additional request for proposal enhancements for JW Marriott Marco Island that may exceed $50,000 in FY 2023 because travel has been increasing for in person events and conferences. Additionally, these expenditures may include promotional expenses, such as, accommodations, food and beverage, audio visual equipment rental, event transportation for familiarization visits, meeting planner site visits, public relations journalists, tour operators and travel agent visits. This is value added because it provides the Convention and Visitor Bureau (CVB) the opportunity to address the guests, provide promotional materials, and add their logo to the hand out materials. Packet Pg. 1244 16.F.5 02/28/2023 Staff is requesting that the Board approve increase of authorized expenditure amount of the existing Exemption from $50,000 to $85,000 per fiscal year and approve the exemption for a period of five years, to accommodate our ongoing participation in the additional marketing and promotional opportunities. Pursuant to Section Eight, subsection Fifteen, of the Procurement Ordinance 2017-08, as amended, entertainment services for County sponsored events are a category of procurements which may be eligible for an exemption to the competitive process based upon the determination of the County Manager or Procurement Services Director that approval of such an exemption waiver is in the best interest of the County. The required exemption form, approved by Procurement Services, is attached. FISCAL IMPACT: Funding for these JW Marriott promotional opportunities and marketing programs is included in the FY 2023 Tourism Division budget in Tourist Development Tax Supported Tourism Promotion Fund (184). Funding for FY 2024 - FY 2027 will be included in the annual Tourism Division marketing budget request. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan with this Executive Summary. ADVISORY BOARD RECOMMENDATION: The Tourist Development Council recommended approval of this item (8-0) at the meeting on November 28, 2022. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. - CMG RECOMMENDATION: To approve an increase of authorized expenditures through an exemption from the Competitive Process to JW Marriott Marco Island for tourism promotional expenses up to $85,000 per fiscal year for a five-year period and to make a finding that this expenditure promotes tourism and is the best interest of the County. Prepared by: Paul Beirnes, Executive Director, Naples, Marco Island, Everglades CVB ATTACHMENT(S) 1. FY23 Exemption Request - JW Marriott signed (PDF) 2. Business Case JW (DOCX) Packet Pg. 1245 16.F.5 02/28/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.17.5 Doe ID: 24239 Item Summary: *** This Item continued from the December 10, 2022 BCC Meeting.*** Recommendation to approve an increase of authorized expenditures through an exemption from the Competitive Process to JW Marriott Marco Island for tourism promotional expenses up to $85,000 per fiscal year for a five-year period and to make a finding that this expenditure promotes tourism, and that the exemption waiver is the best interest of the County. Meeting Date: 02/28/2023 Prepared by: Title: Sr. Operations Analyst — County Manager's Office Name: Geoffrey Willig 12/29/2022 12:29 PM Submitted by: Title: Division Director — Tourism Name: Paul Beirnes 12/29/2022 12:29 PM Approved By: Review: Procurement Services Geoffrey Willig County Attorney's Office Geoffrey Willig Procurement Services Geoffrey Willig Procurement Services Geoffrey Willig Procurement Services Geoffrey Willig Procurement Services Geoffrey Willig Tourism Paul Beirnes County Attorney's Office Geoffrey Willig Office of Management and Budget Geoffrey Willig Office of Management and Budget Geoffrey Willig Corporate Compliance and Continuous Improvement Procurement Services County Attorney's Office County Manager's Office Board of County Commissioners Level 1 Purchasing Gatekeeper Level 2 Attorney Review Additional Reviewer Additional Reviewer Additional Reviewer Additional Reviewer Additional Reviewer Level 3 County Attorney's Office Review Additional Reviewer Level 3 OMB Gatekeeper Review Megan Gaillard Sandra Herrera Procurement Review Colleen Greene Additional County Attorney Reviewer Dan Rodriguez Level 4 County Manager Review Geoffrey Willig Meeting Pending Skipped 12/29/2022 12:26 PM Skipped 12/29/2022 12:26 PM Skipped 12/29/2022 12:26 PM Skipped 12/29/2022 12:26 PM Skipped 12/29/2022 12:26 PM Skipped 12/29/2022 12:26 PM Completed 02/21/2023 3:12 PM Skipped 12/29/2022 12:26 PM Skipped 12/29/2022 12:26 PM Skipped 12/29/2022 12:26 PM Additional Reviewer Completed 02/21/2023 3:09 PM Completed 02/21/2023 4:34 PM Completed 02/22/2023 1:21 PM Completed 02/22/2023 2:49 PM 02/28/2023 9:00 AM Packet Pg. 1246 16.F.5.a CoVev County Exemptions from the Competitive Process Instructions The following procurement categories may be eligible for exemption from the competitive process based upon the determination of the County manager or Designee that approval of such an exemption is in the best interest of the County. Purchases greater than $50,000 will require final approval by the Board of County Commissioners. Requester Name: Lisa Chamberlain vendor Name: JW Marriott Marco Island Division: Tourism Item / Service: Promotional expenses and RFP Enhancements Budget Year: FY23-27 Not to Exceed Amount: $85 OOO Fiscal Year One time urchase: p ❑ Multi le urchases: ✓ p p ❑ Requested FY23 - FY27 Is there associated agreement ❑ ❑ with this Yes No ✓ date range: Exemption? ExemLion? ❑ 1. Government Agency/Non- ❑2. Registrations/dues/ ❑ 3. Subscriptions/periodicals/ ❑ 4. Advertisements Profit training printed materials 05. Utility services — subject ❑ 6. Education/academic ❑ 7. Legal services ❑ 8. Purchases required by to government control programs/trainers, speakers grants/gifts ❑9.Compatibility/proprietary ❑ 10. Shop estimates on ❑11. Personnel/recruitment ❑ 12. Works of art for public with current systems disassembled equipment services display ❑ 13. Direct purchases ❑14. Financial instruments ❑✓ 15. Entertainment services ❑ 16. Management studies as for County sponsored events directed by County Manager 717. Resolution/BCC direction (Indicate resolution number and approval date): Description of Purchase: Enter a description of the item(s) items that will be purchased under this exemption. These expenditures include Request for Proposal Enhancement funds that are used to attract group meeting attendees to Collier County, which increases business revenue and tourism. Additionally, the expenditures may include promotional expenses, such as, accommodations, food and beverage, audio visual equipment rental, event transportation for familiarization visits, meeting planner site visits, public relations journalists, tour operators, and travel agent visits. Purpose: Describe in detail, the purpose of the requested item(s). The overall purpose of these expenditures is to promote Collier County as the preferred destination for group meetings, special events, sports activities, and vacations with an overall goal of bringing more visitors and spending to Collier County businesses which brings in more tourism tax revenue. (see attached business case for further detail) Requester: Lisa B. Chamberlain d by Signature: ChamberlainLisa Chamlberlai�l- Date: Date: 2023.02.17 11:46:19-05'00' Division Director: Paul Belrnes Digitally signed by BeirnesPaul Signature: BeirnesPaul Date. 2023.02.1711:55*26 Date: 05'00' Procurement Strategist: Matthew Ciatoe Signature: Digitally signed 30 t057-05ew CatoeMattheW Date 20signe 21 Catoem tthew' Date: Procurement Director: Or designee Sandra Herrera Signature: Digitally signed byHerreraSandra g HerreraSandra Date 2023.02.21 11:28:09 -05'00' Date: For Procurement Use Only: ❑One time approval ❑One year approval RIMulti-Year Approval: Start 2/21/2023 End 9/30/2027 Revised 06/17/2021 Packet Pg. 1247 1 6.F.5.b Business Case JW Marriott Marco Island The current Fiscal Year (FY) 2023 adopted budget for Request for Proposal Enhancement program is $200,000 to be provided to various hotels and resorts in Collier County as incentive for specific events and conferences. The determination for the Request for Proposal Enhancements is based on the potential hotel room nights and anxillary anticipated funds that will be brought to Collier County businesses that contribute to the Tourist Development Tax. The enhancement program is focused on promoting off-season or shoulder season to have continuous events year round that bring additional business to Collier County and increases tourism. Events hosted in hotels that receive Convention and Visitor Bureau's (CVB) Request for Proposal Enhancement funding must include the CVB Logo on the event program / App or signage as an event sponsor. Destination marketing collateral, such as, the CVB welcome postcards, visitor guides or other destination promotional materials are provided to meeting attendees. The CVB also has the opportunity to deliver a welcome message to the meeting attendees, and time to show the CVB destination video during each of the sponsored events. The majority of the events and conferences that have request for proposal enhancements are from the Ritz - Carlton Beach (447 guest rooms), the Ritz -Carlton Golf Resort (295 guest rooms), Naples Grande Beach Resort (474 guest rooms), and JW Marriott Marco Island (809 guest rooms). There are additionally some smaller hotels and resorts that may patricipate in the Request for Proposal Enhancement program. Request for Proposal Enhancement Expenditures Name FY 2021 FY 2022 FY 2023 JW Marriott Marco Island 20,200.41 49,957.00 7,500.00 Naples Grande 16,748.63 31,597.08 20,800.00 Hilton Naples 5,400.00 3,819.40 - The Ritz -Carlton 3,000.00 29.53 - La Playa 2,000.00 2,086.12 - Innovation Hotel 1,546.66 597.00 - Note — the expenditures include Food and Bevarage expenses In FY 2023, the funds for Requst for Proposal Enhancements have been spread across the hotels for events and conferences. The amount of $37,500 has already been committed for the Request for Proposal Enhancement Expenditures for JW Marriott Marco Island. Enhancements for six events are planned for the Naples Grande Beach Resort and for four events for the Ritz -Carlton. On February 11, 2020, the Board approved an increase of the expenses to $100,500 per fiscal year for the prior exemption for JW Marriott Marco Island (Item 16.F.4) for a three year period. The form for the exemption expired in September 30, 2022. In FY 2021, the County spent $49,957 under the exemption. M M N N Packet Pg. 1248 1 6.F.5.b The Tourism Division has obtained exemption approval for up to $50,000 for FY 2023 by Procurement Division in compliance with the Procurement Ordinance. The reason JW Marriott Marco Island is anticipated to receive request for proposal enhancements for up to $85,000 per fiscal year is because they have the largest meeting space in the area, so the resort is more desired by the larger groups to have their events and conferences in Collier County. Additionally, the JW Marriott Marco Island business model is heavily leveraged toward large conventions and business meetings, more than the other locations. While the amounts are paid directly to the hotel, the request for proposal enhancements are for specific events. No specific event receives more than $10,000 in enhancement program funds. Currently, JW Marriott Marco Island has been allocated $37,500 for four separate events in FY 2023. It is anticipated that there will be additional request for proposal enhancements for JW Marriott Marco Island that will exceed $50,000 in FY 2023 because travel has been increasing for in person events and conferences. Additionally, these expenditures may include promotional expenses, such as, accommodations, food and beverage, audio visual equipment rental, event transportation for familiarization visits, meeting planner site visits, public relations journalists, tour operators and travel agent visits. This is value added because it provides the CVB the opportunity to address the guests, provide promotional materials, and add their logo to the hand out materials. It is necessary to provide JW Marriott Marco Island the exemption from competitive process because they o have the largest meeting space and guest rooms. It is in the County's best interest to waive the competitive process. The overall purpose of these expenditures is to promote Collier County as the preferred destination for group meetings, special events, sports activities, and vacations with an overall goal of bringing more�� visitors and spending to Collier County businesses which brings in more tax revenue. M N N Packet Pg. 1249