TDC Minutes 08/24/2009 R
August 24, 2009
MINUTES OF THE COLLIER COUNTY TOURIST
DEVELOPMENT COUNCIL MEETING
Naples, Florida, August 24, 2009
LET IT BE REMEMBERED, that the Collier County Tourist Development
Council in and for the County of Collier, having conducted business herein,
met on this date at 9:00 AM in a REGULAR SESSION in Building "F" of
the Government Complex, Naples, Florida with the Following members
present:
Chairman: Commissioner Donna Fiala (via telephone)
Vice Chairman: Murray H. Hendel
Susan Becker
Clark Hill
Rick Medwedeff
Robert Miller
Ed (Ski) Olesky
John Sorey III
Rob Popoff (Excused)
ALSO PRESENT: Jack Wert, Tourism Director
Gary McAlpin, Coastal Zone Management Director
Colleen Greene, Assistant County Attorney
Kelly Green, Tourist Tax Coordinator
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Collier County: August 24, 2009
Page 1 of2
August 24, 2009
MEETING AGENDA &. NonCE
COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL
Collier County Government Center, Administration Bldg. F, 3rd Floor, 3301 East Tamiami Trail,
Naples, Florida 34112
l\UGUST 24, 2009 9:00 a.m.
Collier County Commission Chambers
· Requires TDC Action
L Call to Order - Vice-Chairman Hendel
[1. Pledge of Allegiance
[II. Roll Call
[V. Changes and Approval of Agenda
II. Approval of TOC Minutes *
l. * R.~gyliU"Meetil1gJlIne 2~/2_QQ9
III. Staff Report Presentations
l. Section I
3. Par~djse Adyertising
1:1. Klilges R.~_s_ej!rc;11 ReRQJ"1;
2. S~~tion II
3. Director's Report
0. Sales Manager Report
:. P.R. Manager Report
::I. Film Coordinator Report
~. Sports Marketing Report
f. Fulfillment &. Inquiry Summary-Phase V
IIII. New Business
l. Chicago Cubs Spring Training Discussion - Mr. Hendel
2. * CVBMe~lil1g Pliilnne1"E\fentSp~nsorshipRequest - Jack Wert
3. * MiJ!,!J;Medial/lleJ1Jiiite Agx!'!ement - Jack Wert
'l. * TDC!;LlIbcQmmittee Fillal R.ePQrt and Re_cQmrnendatiol1s - Mr. Hendel
5. *EY2QI0Strategicf)@ILR.!,!view - Jack Wert &. Paradise Advertising
"III. Old Business
l. Quarte1'ly_Ejnilnc;tiILReport
2. Online Travel Companies Class Action (tabled from June meeting)
[x. Detilile~taff Reports
K. Announcements
http://www.colliergov.net/index. aspx ?page=2 781
9/812009
Collier County: August 24, 2009
Page 2 of2
XI. Audience Input &. Discussion
XII. Council Discussion
XIII. Next Scheduled Meeting Date/Location - September 28, 2009 - 9:00 a.m.
Collier County Government Center, Administration Bldg. F, 3rd Floor,
3301 East Tamiami Trail, Naples, Florida 34112
XIV. Adjournment
All interested parties are invited to attend, and to register to speak and to submit their
objections, if any, in writing, to the board prior to the meeting if applicable.
For more information, please contact Jack Wert at (239) 252-2402.
If you are a person with a disability who needs any accommodation in order to participate in
this proceeding, you are entitled, at no cost to you, to the provision of certain assistance.
Please contact the Collier County Facilities Management Oepartment located at 3301 East
Tamiami Trail, Naples, FL 34112, (239) 252-8380.
Public comments will be limited to 5 minutes unless the Chairman grants permission for
additional time.
Collier County Ordinance No. 99-22 requires that all lobbyists shall, before engaging in any
lobbying activities (including, but not limited to, addressing the Board of County
Commissioners) before the Board of County Commissioners and its advisory boards, register
with the Clerk to the Board at the Board Minutes and Records Department.
http://www.colliergov.net/index. aspx?page=2 781
9/8/2009
August 24, 2009
I. Call to Order - Chairman Fiala
Mr. Hendel called the meeting to order at 9:00AM.
Commissioner Fiala was available via teleconference.
II. Pledge of Allegiance
Pledge of Allegiance was recited.
III. Roll Call
A quorum was established.
Mr. Sorey moved to allow Commissioner Fiala to participate in the meeting via
teleconference. Second by Mr. Olesky. Carried unanimously 8-0.
IV. Changes and Approval of Agenda
Mr. Sorey moved to approve the Agenda subject to the following changes:
Item VII. - New Business - to be heard after item V - Approval of Minutes
Item VIlA - TDC Subcommittee Final Report. . . to be heard after item VII. 1 -
Chicago Cubs Spring Training...
Item VIII Old Business - to be heard after Item VII - New Business
Item VI. - Staff Report Presentations to be heard after Item VIII - Old Business
Second by Ms. Becker. Carried unanimously 8-0.
V. Approval of TDC Minutes
1. Regular Meeting June 22, 2009
Ms. Becker moved to approve the minutes of the June 22, 2009 meeting.
Second by Mr. Olesky. Carried unanimously 8-0.
VII. New Business
1. Chicago Cubs Spring Training Discussion - Mr. Hendel
Mr. Hendel requested the above item be placed on the Tourist Development
Council Agenda for discussion. He noted a "Blue Ribbon Committee" may need
to be established to determine the feasibility of the concept.
David Moulton, Naples Daily News appeared before the Committee at the
request ofMr. Hendel to discuss the item. The following was highlighted during
his presentation:
. Through his columns in the Naples Daily News addressing the issue,
he has been contacted by many private individuals/organizations, etc.
who indicate they can bring the concept to fruition.
. Before proceeding, they need to be assured the Tourist Development
Council and Board of County Commissioners support the concept.
. The operation will require construction of a stadium and practice
facility on a 45-70 acre tract of land and take approximately 16 months
to complete.
. The construction will be primarily funded by the private sector
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August 24, 2009
. The Cubs Organization views a possible re-location to Florida
favorably for business and baseball reasons and has been considering
Sarasota.
. Estimates for the economic impacts are $30M - $60M annually during
the Spring Training season.
. Beyond a Spring Training season, the operation could have major
economic impact on the region by linking the Collier County economy
to the Chicago economy (vacation destination, real estate sales, etc.)
. It is envisioned the facility would also house the Cubs Class "A" team
competing in the Florida State League throughout the summer months.
. The cost to construct the facility is in the range of$75M.
. Most view the concept favorably, while a few question it.
. The re-location will need to occur for the 2012/13 spring training
season and the Cubs need to notify the officials in Mesa, AZ by
January of 20 lOon their intentions to remain or relocate.
He submitted comprehensive economic impact surveys completed by the State of
Florida and the State of Arizona to assist in analyzing the concept. He noted Lee
County could also be a valuable resource for Collier County in their consideration
of the concept.
Speakers
Tom White, General Manager Hawthorne Suites recommended the concept
move forward as it will have a great economic benefit to the County. He would
be in favor of raising the Tourist Tax to 5 percent ifit was utilized to bring the
Cubs to the County.
Larry Basik, Real Estate Developer addressed the Council noting there is a
possible site for the facility on US 41, east ofthe US 41/Collier Blvd intersection
adjacent to the Big Cypress Flea Market.
Garrett F.X. Beyrent, Real Estate Developer, addressed the Council noting
there is a possible site for the facility adjacent to Golden Gate High School.
Mr. Sorey moved to authorize Mr. Hendel to work with the Board of County
Commissioners (BCC) and Jack Wert, Tourist Director to develop a resolution
for consideration by the TDC at their next meeting for a recommendation to the
BCe. Second by Ms. Becker.
Jack Wert noted the concept should require a feasibility study and not create a
"drain" on County funds. The requirements for on-going, year round
maintenance of the facility should be analyzed to determine the costs and the
parties responsible. Substantial consideration should be given to the location, as a
location in the northern portion of the County may have more impact on Lee
County.
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August 24, 2009
Motion carried unanimously 8-0.
4. TDC Subcommittee Final Report and Recommendations - Mr. Hendel
Jack Wert presented the Executive Summary (ES) "TDC Subcommittee report
and recommendations" dated August 24, 2009.
Mr. Hendel provided an overview of the Subcommittee activities noting the
Subcommittee met 9 times. They spent numerous hours on the dynamics of the
Tourist Tax and related Ordinance and Policies. Included in the presentations
were Public Speakers, Marketing Studies for advertising and the economic
benefits associated with the expenditures. Based on all the input and
considerations, the Subcommittee developed the following recommendations as
provided in the Executive Summary:
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. Sub Committee members noted that other Florida destinations do
not fund operating expenses for County Museums in this manner and our
visitor research indicates that museums are not destination visitor drivers.
Commissioner Fiala noted although the museums are not destination points
for tourists, they are an essential part of tourism for the area.
Mr. Medwedeffprovided a chart, which indicated other destinations do not
utilize TDC funds for the Operations of County Museums. They do not
provide an essential draw for tourists as indicated in Dr. Klages' monthly
reports. The expenditure of these TDC funds provides limited, or no return on
investment.
Mr. Hill moved to approve the recommendation. Second by Mr. Miller.
Motion carried 7 'yes"- 1 "no." Commissioner Fiala voted "no."
2. The interest earned on Tourist Tax Funds currently being utilized by the
County Clerkfor Operating Expenses or to cover General Fund expenses
should be re-instated in the percentages indicated in County Ordinance 92-60
as amended to the Tourist Development Tax Funds.
Colleen Greene, Assistant County Attorney noted the request must be made
to the BCC, as the interest will be returned to the BCC who would need to
return it to the TDC.
Ms. Becker moved to request the Board of County Commissioners to return
any funds earned on Tourist Development Council Funds interest to the
Tourist Development Council Budget. Second by Mr. Hill. Carried
unanimously 8-0.
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August 24, 2009
3. The Grant Funding Process for Non-County Owned Museums should be
revised to require that all marketing funds approved for each organization be
spent with the oversight of the marketing agency of record for tourism
promotion (currently Paradise Advertising & Marketing, Inc.) and that paid
media be placed through that agency of record.
Mr. Sorey expressed concern the recommendation may reduce the creativity
and flexibility of the various organizations marketing efforts.
Jack Wert noted the recommendation, if approved should not take effect until
FY 2011.
Speakers
Joel Kessler, Naples Art Association, expressed concern the Grant Funds
would be further reduced by Commission Fees from the Counties outside
advertising Agency. Each individual organization has distinct branding and
imaging and merging it to one set of advertising could be problematic.
Godfrey Levy, Holocaust Museum of Southwest Florida, noted the funding
is not utilized for Operations, but advertising outside the County. Figures
indicate approximately 78% of their visitors are from outside the County. He
agreed with Mr. Kessler on the branding and imaging concerns expressed.
Mr. Sorey moved to maintain the current Program for Grant Funding for
Non-County Museums and strike recommendation #3. Second by
Commissioner Fiala. Carried unanimously 8-0.
4. The $500,000 annually set-aside by County Policy from Fund 195 for
Emergency Beach Re-nourishment Reserves be redirected to Fund 184 for
destination marketing for a period of two years. It was further clarified that
these funds would not be a loan, but a redirection for two years.
Mr. Hendel stated the Executive Summary indicates the Coastal Advisory
Committee voted unanimously to oppose this recommendation, however the
actual vote was 6 "yes - 2 "no."
He questions the statement in the Executive Summary, "When an emergency
does happen, sufficient funds would not be available to mitigate storm damage
to our beaches." The Emergency Beach Re-nourishment Fund currently has a
balance of approximately $3.5M dollars and has not been utilized to date, and
if an emergency were to occur, it may not require expenditure greater than
$3.5M.
Mr. Sorey, Chairman of the CAC, noted the Reserve has not yet met its
"cap" of $5M as required by the Board of County Commissioners. Dr.
Klages' surveys indicate the highest-ranking reasons tourists visit the area are
the beaches. He expressed concern on the difficulty on measuring the
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August 24, 2009
incremental return on dollars spent on advertising and cannot support
redirecting the funds.
Mr. Hill provided statistics, which indicate the average Tourist Tax
Collections from 1999 - 2004 and 2006 - 2008, as adjusted for rate increases.
1999-2004 generated 8.8M while 2006 - 2008 the average generated was
$10.7M. This indicates the activities undertaken by the Convention and
Visitors Bureau are working in a positive manner.
Mr. Medwedeff provided statistics indicating Collier County utilize the
highest percentages of TDC funds for maintenance of its beaches as compared
to its competitors within the State. He recommended the County re-examine
the mechanism for funding beach maintenance as other jurisdictions have
accomplished maintenance through other means of funding.
Commissioner Fiala noted beaches are the areas "greatest asset" and are a
draw for tourist and agrees with Mr. Sorey that the funds should not be re-
directed.
Ms. Becker noted the recommendation does not affect the Beach Re-
nourishment Reserve, rather Reserves for Emergency and the current
economic emergency outweighs a potential beach emergency.
Mr. Sorey moved not to approve recommendation #4. Second by
Commissioner Fiala.
Mr. Miller stated without "tourists" there will not be a demand for the
beaches and recommends the funds be redirected as provided in the
recommendation.
Mr. Hendel noted a letter from Bill Barnett, Mayor of Naples, indicated the
Naples City Council opposes the recommendation.
Speaker
Doug Finlay, Naples resident questions if an increase in advertising funding
provides a return on investment, why is the Hotel Industry against an increase
in the Tourist Tax which would be utilized for advertising? He expressed
concern on the condition of the beaches and cited examples where all the
Emergency Reserves could currently be spent on repairing the beaches.
Mr. Hill noted the Hoteliers do not want a tax increase, as it will be
counterproductive and may lead to an overall decrease in the number of
visitors to the area.
Motion failed 6 "no"-2 ''yes.'' Mr. Medwedeff, Mr. Miller, Mr. Hendel,
Ms. Becker, Mr. Olesky and Mr. Hill voted "no." Commissioner Fiala and
Mr. Sorey voted ''yes.''
Mr. Hill moved to approve recommendation #4 (The $500,000 annually set-
aside by County Policy from Fund 195 for Emergency Beach Re-
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August 24, 2009
nourishment Reserves be redirected to Fund 184 for destination marketing
for a period of two years. It was further clarified that these funds would not
be a loan, but a redirection for two years. Second by Mr. Miller. Motion
carried 6 'yes" - 2 "no." Mr. Sorey and Commissioner Fiala voted "no. "
Break: lO:35am
Re-convene: - lO:47am
Mr. Sorey requested the Council address recommendation #9 as it is related
to Beach Funding.
It was determined to take up the recommendations in the order provided in the
Executive Summary!.
5. The Collier County Tax Collector's Office 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.
Jack Wert noted the Tax Collectors indicate the item does not justify a full
time person. There are avenues to increase collections by improving the
database, etc.
Ms. Becker moved to recommend the Collier County Tax Collectors Office
work closely with Code Enforcement to collect unpaid Tourist taxes on
short-term rentals of 6 months or less. Second by Mr. Medwedeff. Carried
unanimously 8-0.
6. Support the 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 mayor may not cover the correct amount of
taxes due.
Ms. Becker moved to approve the recommendation. Second by Mr. Sorey.
Carried unanimously 8-0.
Mr. Sorey left at lO:53am
7. 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" and the Marco Island Chamber visitor
publication should be combined into one official tourism publication for the
entire destination.
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August 24, 2009
Discussion occurred if the Marco Island Chamber visitor publication should
be included in the recommendation.
Ms. Becker noted it was not included in the study she conducted.
Ms. Becker moved to approve the recommendation 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. Second by Mr. Medwedeff. Carried unanimously 7-0.
8. Create a new position called "Information Center Coordinator If 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 lmmokalee. The estimated annual cost is $90,000 via a
Public/Private partnership or TDC grant agreement.
Speaker
Michelle Klinowski, Greater Naples Chamber of Commerce provided an
overview of the recommendation and stated the purpose of the position would
be to "capture" more tourists for overnight stays as they pass through the
County.
Discussion occurred on the funding aspect of the position and ifit is prudent
to include it in the recommendation at this time.
Ms. Becker moved to approve the recommendation, with the omission of the
last sentence discussing the funding amount and source. Second by Mr.
Hill. Carried unanimously 7-0.
9. Redirect $500,000 of the $2M per year currently allocated by County Policy
from Fund 195 for Major Beach Re-nourishment 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 offunds, but a redirection offundsfor
marketing for two years.
Gary McAlpin noted the Fund balance is currently $6M.
Commissioner Fiala stated she is in opposition to the re-direction of these
funds and the money should remain allocated to beaches.
Colleen Greene, Assistant County Attorney noted this recommendation, as
well as recommendations #1 and #4 will require Ordinance changes.
Mr. Medwedeff noted beach maintenance is completely funded through
Tourist Taxes. He expressed concern there has not been dialog on identifying
alternate sources for funding beach maintenance.
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August 24, 2009
Gary McAlpin, Director of Coastal Zone Management noted the other
Counties do not have a dedicated source of funding and their Beach
Maintenance Programs and they are not planned or engineered and occur
somewhat haphazardly. Collier County has a dedicated source, which allows
it to maintain the beaches to a high quality.
Mr. Medwedeff agreed the County needs a dedicated, well-planned source of
funding for beach maintenance. He suggested the County attempt to identify
additional sources (other than solely TDC funds) for the funding.
Commissioner Fiala moved to decline recommendation #9. Second by Mr.
Hendel. Motion failed 4 "no" - 3 "yes." Mr. Medwedeff, Mr. Miller, Mr.
Hill and Mr. Olesky voted "no."
Mr. Medwedeff moved for the County to pursue alternate sources of
funding for beach maintenance and develop recommendations for providing
a reduction in Tourist Tax expenditures in the area. Second by Mr. Miller.
Carried unanimously 8-0.
Mr. Medwedeffmoved to approve recommendation #9 (Redirect $500,000 of
the $2M per year currently allocated by County Policy from Fund 195 for
Major Beach Re-nourishment 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 offunds, but a redirection offundsfor marketing
for two years.) Second by Mr. Hill. Motion carried 4 ''yes'' - 3 "no."
Commissioner Fiala, Mr. Hendel and Ms. Becker voted "no. "
1 O. Recommend to not increase the Tourist Development Tax Rate at this time
given the current economic recession.
Ms. Becker moved to approve recommendation #10. Second by Mr. Hill.
Motion carried 6 ''yes'' -1 "no." Mr. Miller voted "no."
2. CVB Meeting Planner Event Sponsorship Request
Jack Wert presented the Executive Summary "Request Approvalfor Sponsorship
of up to $20,000 for a Corporate Meeting Planner Familiarization event at
NGALA in October" dated August 24, 2009.
Mr. Hill moved to approve the expenditure. Second by Commissioner Fiala.
Carried unanimously 7-0.
3. Miles Media Website Agreement - Jack Wert
Jack Wert presented the Executive Summary "Recommend approval of the
award of RFP #09-5183 and agreement between Collier County and Miles Media
Group, LLLP for Website Development for the Collier County Tourism
Department in an estimated annual amount of$100, 000" dated August 24,2009.
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August 24, 2009
Ms. Becker moved to approve the Executive Summary. Second by Mr. Hill.
Carried unanimously 7-0.
4. FY 2010 Strategic Plan Review - Jack Wert & Paradise Advertising
Jack Wert presented the Executive Summary "Review and recommend approval
oj FY 10 Strategic Plan Jor the Naples, Marco Island, Everglades Convention &
Visitors Bureau (CVB) " dated August 24, 2009.
Jack Wert provided an overview noting:
. The proposed Marketing Plan replicates the activities that occurred in FY
09 where a base $2.1 M for the winter campaign and $1.1 M of emergency
advertising dollars were authorized for a total expenditure of
approximately $3.2M for Marketing.
. The TDC Subcommittee recommendations could generate up to $lM of
additional revenue for the fiscal year and provide a maximum of $4.2M
of expenditures.
. As requested by the TDC Subcommittee, Staff developed a year round
marketing plan that would require a total expenditure of approximately
$5M.
Fran Vaccaro of Paradise Advertising presented a Slide Show, which provided
an overview of the campaign.
Jack Wert included in the meeting packet a document entitled "Return on
Investment Analysis CVB Activities by Department" for review. The ROI ratios
represent "dollar returns" not "percentage returns."
Mr. Hill moved to approve the Convention and Visitors Bureau
recommendation for the FY 2010 Strategic Plan (for Naples, Marco Island,
and Everglades Convention & Visitors Bureau) in the amount of $4. 2M, which
includes the utilization of (Tourist Development Council) Emergency
Advertisingfunds ifnecessary. Second by Mr. Medwedeff. Carried
unanimously 7-0.
VIII. Old Business
1. Quarterly Financial Report
Jack Wert provided the Quarterly Financial Report. Estimates for total Tourist
Tax Collections for the calendar year (2009) have been revised to approximately
$12AM.
2. Online Travel Companies Class Action (tabled from June Meeting)
Addressed under item VIlA
VI. Staff Report Presentations
1. Section I
a. Paradise Advertising - Cedar Hames
Addressed under item VIlA
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August 24, 2009
b. Klages Research Report - Walter Klages
Dr. Klages provided a PowerPoint presentation on the "July 2009 Visitor
Profile. "
2. Section II
a. Director's Report
b. Sales Manager Report
c. P.R. Manager Report
d. Film Coordinator Report
e. Sports Marketing Report
f. Phase V - Fulfillment & Call Summary
IX. Detailed Staff Reports
See attached reports submitted by Staff.
X. Announcements
None
XI. Audience Input & Discussion
None
XII. Council Discussion
. Mr. Hill commended Mr. Hendel's work as Chairman of the TDC
Subcommittee.
. Jack Wert will notify the Council on the date for the presentation of the
TDC recommendations to the BCC addressed under item VIlA
XIII. Next Meeting Date/Location
September 28, 2009 - 9 a.m. Collier County Government Center, Administration
Bldg. F, 3rd Floor 3301 East Tamiami Trail, Naples Florida 34112
There being no further business for the good ofthe County, the meeting was
adjourned by order of the chair at 11 :59 A.M.
COLLIER COUNTY TOURIST
DEVELOPMENT COUNCIL
Murray Hendel, Vice Chairman
These minutes approved by the Board/Committee on
as presented or as amended
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