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TDC Minutes 07/26/2010 R July 26, 2010 MINUTES OF THE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL MEETING Naples, Florida, July 26, 2010 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 Fred Coyle Vice Chairman: Murray H. Hendel Susan Becker Jerry Gibson Clark Hill Rick Medwedeff Robert Miller Ed (Ski) Olesky John Sorey III ALSO PRESENT: Jack Wert, Tourism Director Gary McAlpin, Coastal Zone Management Director Heidi Ashton-Cicko, Assistant County Attorney Kelly Green, Tourist Tax Coordinator 1 Collier County July 26, 2010 Page 1 of2 July 26, 2010 MEETING AGENDA 8< NOTICE COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Collier County Government Center, Administration Bldg. F, 3rd Floor, 3301 East Tamiami Trail, Naples, Florida 34112 JULY 26, 2010 9:00 a.m. Collier County Commission Chambers * Requires TDC Action I. Call to Order - Chairman Coyle II. Pledge of Allegiance III. Roll Call IV. Changes and Approval of Agenda V. Approval of TDC Minutes * 1. * Reaular Meetina June 28. 2010 VI. New Business 1. * TDC Ordinance Review 2. * BP Emeraencv Oil SDiII Fundina Reauest 3. * Clam Pass/Clam Bav Svstem Modelina Proaram VII. Old Business VIII. Staff Report Presentations 1. Section I - Marketina Partners a. Tax Collections - Jack Wert b. Paradise Advertising c. Klages Research Report d. Website Activity - Jack Wert e. Search Engine Optimization - Jack Wert f. Fulfillment 8< Inquiry Summary - Jack Wert 2. Section II - Staff Department ReDorts (Jack Wert) a. Director's Report b. Sales Manager Report c. P.R. Manager Report d. Film Coordinator Report e. Sports Marketing Report f. International Representatives IX. Detailed Staff ReDorts X. Announcements XI. Audience Input 8< Discussion XII. Council Discussion XIII. Next Scheduled Meeting Date/Location - August 23, 2010 - 9:00 a.m. Collier County Government Center, Administration Bldg. F, 3rd Floor, 3301 East Tamiami Trail, Naples, Florida 34112 XIV. Adjournment http://www.colliergov.net/index. aspx?page=3 066 8/412010 July 26, 2010 I. Call to Order - Chairman Coyle Chairman Coyle called the meeting to order at 9:00 AM II. Pledge of Allegiance Pledge of Allegiance was recited. III. Roll Call A quorum was established. IV. Changes and Approval of Agenda Mr. Olesky moved to add the following item to the Agenda: Item VII. 1 - Discussion of August Regularly Scheduled TDC meeting. Second by Ms. Becker. Carried unanimously 9-0. Mr. Hill moved to approve the Agenda subject to the above change. Second by Mr. Sorey. Carried unanimously 9-0. V. Approval of TDC Minutes 1. Regular Meeting June 28, 2010 Ms. Becker moved to approve the minutes of the June 28,2010 meeting. Second by Mr. Olesky. Carried unanimously 9-0. VI. New Business 1. TDC Ordinance Review Jack Wert submitted the Executive Summary "Review Tourist Development Tax Ordinance 92-60 as amended and County Beach and Beach Park Facilities Policy (I 0/25/2005) for possible changes to allocations in Category A and Category C to support a year-round marketing effort" dated July 26, 2010. Also provided for informational purposes was Fla. Stat. 125.0104 (2009) (regulating the Tourist Develorment Tax); Collier County Ordinance 2005-43 (establishing the levy of the 4t cent of Tourist Tax); Collier County Ordinance 2009-58 (amending the Ordinance to re-allocate Emergency Beach Funds to Marketing for 1 year) and the Collier County Tourist Development Category "A" Funding Policy. He noted the funds redirected from Emergency Beach reserves in the amount $1 M were invested in advertising beginning in January of2010 and has provided an overall rate of return of $17.64 for every dollar invested. In addition, there has been an increase of approximately $Y2M of Tourist Tax Revenue over the past year. He presented a Slideshow noting without adequate dedicated funding sources for year around tourism marketing, the TDC must constantly request emergency marketing funds from the BCC. In order to initiate a year around marketing campaign for the region, the following may want to be considered: 1. Allocate a portion of the funds set aside for Beach Park Facilities (Fund 2 July 26, 2010 183) currently set at an average of$2 million per year. 2. Allocate a portion of the Beach and Inlet Management funds (Fund 195) for marketing purposes. If pending FEMA reimbursements are received, the reserve funds should be sufficient to handle future re-nourishment projects. 3. Reduce or eliminate the amount in Category C-2 for non-county owned or operated Museum grants. 4. Reduce the amount allocated to County Museum Operations in Category C-1 and stipulate that an increased amount of the remaining funds be allocated to marketing of the Museums. 5. Recommend an increase in the Tourist Development tax to 5% and dedicate the entire amount to destination marketing. Commissioner Coyle noted the Board of County Commissioners would want to ensure any decisions to alter the funding policies are vetted by all necessary stakeholders. Mr. Hendel noted he was Chairman of the TDC Subcommittee which previously recommended $1 M dollars of funds be re-directed from the Emergency Beach Reserves to advertising for FYI0 and FYll ($2M total.) The Board of County Commissioners did approve the redirection of funds for FYI0. Ifthe Subcommittee had been aware funds were available from Fund 183, their recommendation would have differed. He recommended $lM from Fund 183 be redirected to advertising (for a 1 year period.) Mr. Sorey opposes redirecting funds from Beach re-nourishment. The County does not have the necessary funds to complete Beach re-nourishment projects without additional FEMA funds. He is in favor of a year-round marketing and to effectively fund it; consideration should be given to adding an additional cent to the Tourist Tax rate. Mr. Medwedeff noted the discussion is for the re-direction of Beach Park Facilities funds, not Beach re-nourishment funds. He opposes the concept of adding an additional cent to the Tourist Tax as it would negatively affect the hotel industry, especially in the area of group sales. Year-round marketing is necessary to help support the 30,000 tourist related jobs in the region. He requested clarification on when a decision for additional funding for advertising would need to be made by the BCC for the campaign to effectively be implemented and the amount of funds required. Jack Wert stated November, at the latest, would be when a decision should be made to increase marketing for FYll. At this point, $2M is budgeted for FY 11 advertising. To conduct a proper year-round campaign, approximately $4M would be required. On a related note, 25 percent of funds re-directed from Emergency Beach funds have been returned to its account due to Tourist Tax revenues. 3 July 26, 2010 Mr. Miller noted there has been a large increase in tourist activity in the Everglades. Ceasing the year-round advertising would lead to a halt in the momentum being gained from the implementation of the campaign. Mr. Hill noted the TDC Subcommittee was informed that the funds in Fund 183 were not available for re-direction. He recommended the Committee consider re- adjusting the funding allocations of the Tourist Tax to provide a long term solution in implementing a year-round advertising campaign. Ms. Becker noted the C-2 category has created a positive return in Tourist Tax revenues and the funding should remain or be increased. Speakers Bruce Gear noted tourism is a substantial revenue driver for the region and additional tourists lead to additional revenue. He is in favor of re-directing funds from Fund 183 to advertising and marketing and recommended the Committee review the funding requirements in general to provide additional funds for advertising. Hunter Hansen, Naples Grande Beach Resort stated a Committee member vote for an additional cent to be added to the Tourist Tax, or a vote to not increase funding year-round advertising is a "vote against tourism." Ed Staros, Ritz-Carlton noted the company employed 1,500 persons 2 years ago, with only 1,200 persons employed currently. He recommended the Committee review the funding allocation policy for the Tourist Tax. He opposes an increase of 1 percent to the Tourist Tax as it has a major negative effect on group sales as these planners do factor in the Tourist Tax rates when determining the location to hold events. Michelle Klinowski, Greater Naples Chamber of Commerce noted tourism is a significant percentage of area business which indirectly supports many other industries (construction, real estate, restaurants, retail, etc.) She is in favor of re- evaluating the current funding policy. Joyce McFarland, Marco Island Chamber of Commerce supports year-round marketing as the previous campaign was highly successful with a $17.64 return on investment for every dollar spent. Jill Barry, Naples Botanical Garden noted C-2 funding is utilized for out-of- area marketing in a different format than that of the CVB advertising campaign. She recommended continuing the funding source. Kathy Curatolo, CBIA supports the concept of year-round marketing for tourism as it stimulates more year-round tourist visits and assists in promoting business relocations to the area. 4 July 26,2010 Steve McIntire, Collier County Hotel and Lodging Assoc. is not in favor of raising the Tourist Tax rate. The Association is in favor of maintaining the beaches, but expressed concern on the utilization of funds for capital expenditures for beach facilities such as the proposed improvements at Vanderbilt Beach. C-2 funding does provide a re-imbursement of revenues and is in favor of maintaining the funding. David Galloway recommended increased advertising not only in the US, but in international markets as well. The area needs a consistent marketing campaign. As an example, he noted Coca Cola is the most recognized product in the world, but still spends approximately $1 B per year on advertising. He recommended additional funds be expended to promote year-round advertising. Robin Demattia, Friends of Rookery Bay and Naples Art Assoc. noted the C-2 funding category is only 2 percent of the budget, but does provide a good rate of return on investment to the County. The advertising conducted by the organizations utilizing the funds is a different format than that of the CVB and assists in providing diversity in promotions for the region. She recommends the funding continue. Mr. Sorey requested clarification from Mr. Wert ifre-directing $lM to advertising, (increasing the FYll budget to $3M total) would be adequate to conduct an effective year-round campaign this fiscal year? Mr. Wert noted the $3M would allow an adequate campaign, without developing any new markets. $4M would be more advantageous and would allow for additional marketing, increased web site production, additional market research and public relation campaigns. Eventually, an annual expenditure of $5M would be optimal. Mr. Hendel recommended an update be provided at each TDC meeting on the status of the FEMA funds being sought by the County for beach repairs due to storm events. Mr. Hendel moved to recommend to the Board of County Commissioners that $1 M of Reserve funds in Fund 183 be redirected to advertising for a period of one year only (the second year of the funding as previously recommended by the TDC Subcommittee). Second by Mr. Hill. Gary McAlpin, Director, Coastal Zone Management recommended postponing a vote on the motion until the concept is analyzed by Staff and vetted by the Parks and Recreation Advisory Board and/or any other affected stakeholders. The Committee requested an update on the application for FEMA funds filed by the County to be potentially expended in the area of beach re-nourishment. 5 July 26, 2010 Gary McAlpin noted the funds are sought due to beach damage caused by various storm events. There are 3 funding applications in process: . Hurricanes Katrina and Wilma - The requests have been approved in the amount of$IM. No funding is available as of yet, and the County is "in the queue" for the awarding of the funds. . Tropical Storm Gabrielle - Staff is addressing questions posed by the various Agencies. The request is still being reviewed by FEMA Regional Office in Atlanta. . Tropical Storm Fay - The fund request is awaiting approval by the State of Florida. Motion carried 8 'yes" -1 "no." Mr. Olesky voted "no." Commissioner Coyle stated at the Tuesday July 27, 2010 BCC meeting, he will advise the BCC of the TDC recommendation approved above. He intends to introduce a motion to direct the Parks and Recreation Advisory Board to review the recommendation and provide input to the BCC for their second meeting in September. The proposed re-direction of funds would be envisioned as an accelerated "short term solution" for funding advertising for FYll. In conjunction with the TDC's recommendation, he will recommend the BCC conduct a comprehensive review of the entire allocation requirements for the Tourist Development Tax. It shall be vetted by all stakeholders (Parks and Recreation Advisory Board, Coastal Advisory Committee, Convention and Visitors Bureau, County Museum Staff, etc.). This would be envisioned as a "long term solution" to promote year around marketing campaigns. Discussion occurred on the ramifications of adding 1 percent to the Tourist Development Tax, with Commissioner Coyle noting it is not under consideration at this time. 2. BP Emergency Oil Spill Funding Request Jack Wert presented the Executive Summary "Update ofTDC recommendation for an emergency funding request to Governor Crist and BP" dated July 26, 2010. He noted: . The $25M awarded to the State of Florida from BP for advertising has been expended with no direct funds made available to Collier County. . Collier County was able to "piggy back" advertising with Visit Florida with a direct value to the County of$lM. . Miami-Dade, the Panhandle Counties and Lee County did receive direct funds as they applied approximately 10 days before Collier County. . It is difficult for Collier County to document revenue losses as the losses were not in the area of cancellations, rather, no tourists making reservations to visit the area. 6 July 26, 2010 . Staff has re-filed a request for advertising funds directly to BP and is awaiting a decision. Mr. Hill recommended Staff develop a program to address emergencies ofthis nature should they occur in the future. 3. Clam Pass/Clam Bay System Modeling Program Gary McAlpin provided the Executive Summary "Recommendation for approval by the TDC for the Clam PasslClam Bay system modeling program to P BS&J on a time and material, not to exceed basis of$132,517" dated July 26,2010. He noted the request for the modeling was previously approved by the Coastal Advisory Committee and the Board of County Commissioners. Staff is now moving forward with the contract for services and requesting TDC approval to expend the funds. Any funds not expended for the contract will be returned to unallocated TDC fund accounts. Mr. Sorey moved to recommend that the Board of County Commissioners approve expenditure of funds as outlined in the Executive Summary. Second by Mr. Hendel. Motion carried unanimously 9-0. VII. Old Business 1. Discussion of Regularly Scheduled August Meeting. Mr. Hendel moved to not hold the regularly scheduled August TDC meeting unless business warrants a meeting. Second by Ms. Becker. Carried unanimously 9-0. Break - 10: 34am Reconvened - 10: 40am VIII. Staff Report Presentations 1. Section I - Marketing Partners a. Tax Collections - Jack Wert b. Paradise Advertising Fran Vaccaro presented an update on marketing efforts directly related to the Oil Spill in the Gulf of Mexico including web site, television and the Visit Florida Advertising Campaigns. c. Klages Research Report - Jack Wert d. Website Activity - Jack Wert e. Search Engine Optimization - Jack Wert f. Fulfillment & Inquiry Summary - Jack Wert 2. Section II - Staff Department Reports Jack Wert provided the following reports: a. Director Report 7 July 26,2010 b. Sales Manager Report c. P.R. Manager Report c. Film Coordinator Report d. Sports Marketing Report e. International Representatives IX. Detailed Staff Reports See attached reports submitted by Staff. X. Announcements Jack Wert noted the meeting scheduled for August 23rd will not be held unless business warrants it. The next scheduled meeting is September 27,2010. XI. Audience Input & Discussion None XII. Council Discussion Mr. Sorey reported the emergency beach re-nourishment in the area of Doctors Pass was completed with the placement of 2800 c.y. of sand obtained locally. Re-nourishment that occurred in the Seagate area was a result of "mother nature." Ms. Becker noted there are two new publications available at the Visitors Centers produced at the direction of Nancy Kearns. XIII. Next Scheduled Meeting Date/Location - August 23, 2010 - 9:00 a.m. Collier County Government Center, Administration BLDG. F, 3rd Floor, 3301 East Tamiami Trail, Naples, Florida 34112 (if necessary) There being no further business for the good of the County, the meeting was adjourned by order of the chair at 11:23 A.M. COLLIER COUNTY TOURIST DEVELOPMENT COUNCIL Commissioner Fred Coyle, Chairman These minutes approved by the Board/Committee on as presented or as amended 8