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TDC Minutes 08/10/2009 Subcommittee August 10,2009 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE MEETING Naples, Florida, August 10,2009 LET IT BE REMEMBERED, that the Collier County Tourist Development Council Subcommittee, in and for the County of Collier, having conducted business herein, met on this date at 10:00 AM in a REGULAR MEETING at the Collier County Community Development Services Building, 2800 N. Horseshoe Drive, Naples, Florida, with the following members present: Chairman: Murray H. Hendel Susan Becker Clark Hill Robert Miller (Excused) ALSO PRESENT: Jack Wert, Tourism Director Colleen Greene, Assistant County Attorney Kelly Green, Tourist Tax Coordinator Gary McAlpin, Director, Coastal Zone Management August 10, 2009 I. CALL TO ORDER - CHAIRMAN HENDEL Chairman Hendel called the meeting to order at 10:01 a.m. A quorum was present. II. CHANGES/APPROVAL OF AGENDA There were no changes to the Agenda. III. APPROVAL OF SUBCOMMITTEE MEETING MINUTES 1. Regular Meeting August 3, 2009. Ms. Becker moved to approve the minutes of the August 3,2009 meeting. Second by Chairman Hendel. Carried unanimously 3-0. IV. OLD BUSINESS 1. TDC Final Report and Recommendations. It was noted a Final Report of the Subcommittee will be prepared for the Tourist Development Council. 2. Staff Comments related to Recommendations. Jack Wert, Tourism Director submitted the documents "TDC Sub-Committee Recommendations - August 3, 2009 Meeting and "Staff Comments pursuant to TDC Sub-Committee Recommendations" for consideration by the Committee during review of the proposed recommendations. The Subcommittee reviewed the following recommendations considered at the previous meeting for final comments. Recommendations considered 1. The Funding of County Museums Operating Expenses by Tourist Tax Funds be phased out over a 3-year period beginning in FY 11 and ending in FY 13, reducing funding by 1/3 of the original total each year. It was noted, there should be an explanation provided with the recommendation outlining the rationale of eliminating the funding (competitors do not fund museums in this manner; reports indicate museums are not "tourism drivers," etc.) Gary McAlpin, Director of Coastal Zone Management stated he was speaking for Ron Jamro, Executive Director of the Collier County Museums and Marla Ramsey, Public Services Administrator and referenced the written comments in the document "Staff Comments pursuant to TDC Sub-Committee Recommendations. " He expressed concern that eliminating TDC funding for the Operation of the County Museums will have a detrimental affect on the Operation of the Museums. The Museums will need to seek alternative funding (General Funds, etc.) that is currently not available and may force the Museums to greatly reduce services or cease operations. 2 August 10, 2009 The Subcommittee noted it is not the intent to create a situation where the Museums would cease operations. The recommendation would initiate in FY '11 and be phased over 3 years with General Funds being utilized for funding County Museum Operations. Consensus reached. Jack Wert noted the opening of the Marco Island Museum will create further funding impacts on the Operations of the Collier County Museums (i.e. the funding amounts for Non-County Museums may need to be redirected to the County Museum funding, etc.) 2. The interest earned on Tourist Tax Funds currently being utilized by the County Clerk for Operating Expenses be re-instated to the Tourist Development Council Budget. Colleen Greene, Assistant County Attorney noted the interest would be transferred back to the County General Fund. The recommendation will need to include language requesting the interest be transferred from the General Fund to the Tourist Development Council Budget. Consensus Reached 3. The Grant Funding Process for Non-County Owned Museums should be revised to require specific funding amounts be approved for the Organizations, with the Organizations submitting expenditure requests back to the Tourist Development Council (TDC) for approval of a specific advertising campaign(s). Said advertising to be conducted by a TDC approved Consultant (i.e. Paradise Advertising). Consensus Reached. 4. The $500,000 annually dedicated to Emergency Beach Reserves be redirected to Marketing for a period of two years. Gary McAlpin, Director, Coastal Zone Management referenced his written comments in Staff Comments pursuant to TDC Sub-Committee Recommendations noting these funds are for "Emergency Purposes" and should be utilized in this manner. He expressed concern the redirection of funds may leave a shortfall for any expenditures required for Beach Repairs in the event of a Storm emergency. He noted specific assurance will need to be in place to repay the funds such as the specific term of the loan, the terms and rate of interest, etc. 3 August 10, 2009 The Subcommittee noted the recommendation is not for the redirection of funds being a "loan". The intent is to not require repayment of the funds, but extend the timing for reaching the cap of the fund by an additional two years. Colleen Greene noted the recommendation will require a Funding Policy change. Consensus Reached 5. The Tax Collection Department dedicate a person, (employee or outside individual or Organization) to be solely responsible for collecting unpaid Tourist Taxes. It was noted this recommendation may need to incorporate participation by the Code Enforcement Department regarding registration of rental units. Consensus reached. 6. Supporting the litigation by other Counties to determine the format 3rd party online Hotel Room booking Agencies collect Tourist Taxes. Consensus Reached. 7. The Convention and Visitors Bureau (CVB) and the Greater Naples Chamber of Commerce should combine the Tourist publications "Florida's Last Paradise" produced by the Naples, Marco Island, Everglades Convention and Visitors Bureau and "Naples on the Gulf' produced by the Greater Naples Chamber of Commerce. Consensus Reached 8. The creation of a Staff Position "Information Center Coordinator" or similar title to be under the direction of the Greater Naples Chamber of Commerce. The position to be jointly funded at approximately $90,000 by the Convention and Visitors Bureau and the Greater Naples Chamber of Commerce via a Private/Public partnership. Consensus Reached 9. Redirecting $500,000 of the $2M a year currently allocated to the Beach Re- nourishment Reserve Fund to Marketing for a period of 2 years. Discussion occurred on the merits of the recommendation. Colleen Greene stated the recommendation will require a Funding Policy change. Gary McAlpin stated the logistics for the recommendation will be at the time of the annual transfer from the 195 Fund to the Reserve, a $500,000 portion of this transfer would be redirected to Marketing. 4 .~^"'"-~-"~-~'>-"""'_'_"""""~""-~~"""''''-''''-"_,_""-~,.",--"""--,,,,,"~".,~_....=,,._._.._>...-..,,,-"'''''''''--''''---'-<'''''''''--''''-'-'''''''^~''''''-'-'''--''''-''''''-''''''''_'''~___'_""_'__~"""'___"_~'"_"""'-"_.__"'OT'" '~"',_,_._~.,_,~.__..,_~__,..,__....___ August 10,2009 The Subcommittee stated the intent is to transfer the monies from Fund 195 to Marketing. It will not be a loan, but a redirection of funds. Mr. Hill moved to redirect $500,000 of the $2M a year currently allocated to the Beach Re-nourishment Reserve Fund to Marketing for a period of 2 years. Second by Ms. Becker. Gary McAlpin expressed concern the recommendation will extend out the time frame for accruing the necessary funds for Beach Re-nourishment and may cause increased costs for the re-nourishment. Motion carried 2 'j,'es" -1 "no." Chairman Hendel voted "no." Jack Wert requested an update on the availability of Federal Funding for Beach Re-nourishment. Gary McAlpin stated Coastal Zone Management is now very active in acquiring Federal sources for funding Beach Re-nourishrnent. The funding is through' WRDA (Water Resources and Development Act) and there are two steps- Authorization and Funding. The County applied 2 years ago for "Authorization," which status was awarded 3 months ago. The County is waiting to see when/if any funds will be awarded to the County. 10. Ms. Becker moved to recommend not increasing the Tourist Tax Rate at this time given the current economic conditions. Second by Mr. Hill Rick Medwedeff, General Manager of the Marco Island Marriott Beach Resort and Spa was not present, but submitted a letter dated August 8, 2009 - Ref Bed Tax increase discussion outlining the reasoning for his opposition to raising the Tourist Tax at this time. Speaker Steve McIntyre, Collier County Hotel and Lodging Association addressed the Subcommittee and reported the Association voted unanimously to recommend not increasing the Tourist Tax Rate in Collier County. Carried unanimously 3-0. It was noted, there should be an explanation provided with the recommendation indicating the rationale for not raising the tax at this time (existing economic conditions, etc.) The Subcommittee directed Chairman Hendel to coordinate with Jack Wert, for preparation of the Final Report including the exact wording for the recommendations outlined herein. Said Report to be submitted to the Tourist Development Council. 5 m."',~.~~.,,"_.......... _~'_""" ",,,~,,,,,,,.,,,,,"""'.;.,, __,~_~"-___."__' _,_..".._",~"w""."..~_.."""""",,, ,."'._",.,."...."."',~_.~.._"~_",.._.....",_.,"".""""',,..___,._~...__ August 10, 2009 3. Review of Marketing Budget Scenarios. Jack Wert submitted "Marketing Plan FY 10" for consideration. It was noted even with the recommendations, there is a shortfall of approximately $800, 000 if the Department wishes to undertake budget Option C outlined in the August 3, 2009 TDC Subcommittee meeting. Jack Wert stated the Staff will propose "Option B" as outlined in the August 3, 2009 meeting and will propose further Marketing efforts based on funding that may become available during the Fiscal Year (the re-directed funds as recommended herein, increased tax collections, interest income earned on funds returned to the TDC, etc.) Gary McAlpin requested clarification on the logic of creating a new Staff position of" Visitor Center Coordinator" outlined in recommendation #8 during this economic time. The position may be funded through the proposed re- direction of Beach Funds. The Subcommittee noted testimony throughout their proceedings indicated a lack of coordination of the Visitor Centers and Area Chambers of Commerce. The goal ofthis proposed Staff position would be generation of additional Tourist Tax Revenue by increasing the functionality and coordination of the Visitors Centers and area Chambers of Commerce's. The Subcommittee noted there is a proven history that increased marketing efforts provides significant additional Tourist Tax Revenue. The additional revenue is utilized for all Funding Items controlled by Tourist Development Council activities. 4. Review of Fund 195 & 183 Budget for FY 10 and 10- Y ear Plan. Jack Wert submitted the document "FY09/10 - 195 Budget and Analysis" for informational purposes. V. SUBCOMMITTEE DISCUSSION None VI. AUDIENCE INPUT None VII. NEXT MEETING DATE/LOCATION Regular TDC Meeting, August 24, 2009, BCC Chambers There being no further business for the good of the County, the meeting was adjourned by order of the chair at 11: 15 A.M. 6 "'fu~"____,""."...._.".",_...",._.","~<,;,-,._,,-....-.,,",______..._,,,""""'''':''''''_"__'~_''''_'''_'''"~".=,~."",-<".~;,~~_",,,.,_.~,,=.-.-",,____";_'_"_""'"""'_'_.">'''_'_~'_"~,,,_"~~__ August 10, 2009 COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL SUBCOMMITTEE Murray Hendel, Chairman These minutes approved by the Board/Committee on as presented or as amended 7