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Agenda 11/01/2010 W (w/TDC) BCC/TDC JOINT WORKSHOP AGENDA November 1, 2010 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS TOURIST DEVELOPMENT COUNCIL JOINT WORKSHOP AGENDA NOVEMBER 1, 2010 9:00 AM - 12:00 PM I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. CHANGES/APPROVAL OF AGENDA IV. NEW BUSINESS 1. Funding for Year Round Destination Marketing - Jack Wert 2. Tourist Tax Ordinance Review - Mark Isackson 3. Stakeholder Meeting Recommendations Coastal Advisory Committee Collier County Sports Council *Collier County Lodging and Tourism Alliance Everglades Chamber of Commerce *Friends of the Collier County Museums *Marco Island Chamber of Commerce Marco Island City Council Naples Chamber of Commerce Naples City Council Non-County Owned Museums Parks & Recreation Advisory Board * Recommendations to be presented at Workshop 4. Beaches/Inlets Revenue vs. Expense Analysis - Gary McAlpin V. QUESTION & ANSWER PERIOD VI. BCC/TDC DISCUSSION VII. NEXT MEETING DATE/LOCATION 9:00 AM November 22, 2010 TDC Monthly Meeting, BCC Chambers VIII. ANNOUNCEMENTS IX. ADJOURNMENT EXECUTIVE SUMMARY Review funding options for year round destination marketing of Collier County and discuss input from Stakeholder Meetings. OBJECTIVE: Review funding for year round destination marketing and discuss the input from tourism industry stakeholder groups. CONSIDERATIONS: The Board of County Commissioners directed County staff to meet with area tourism and business community groups and committees to discuss possible reallocation of the current tourist development tax allocations. The Tourism Director and Coastal Zone Management Director scheduled these meetings during October to gain input for a November 1, 2010 joint workshop with the Board of County Commissioners and Tourist Development Council (TDC). Meetings were scheduled and conducted with the following groups: Coastal Advisory Committee (CAC) Collier County Sports Council Collier County Lodging and Tourism Alliance Everglades Chamber of Commerce Friends of the Collier County Museums Marco Island Chamber of Commerce Marco Island City Council Naples Chamber of Commerce Naples City Council Non-County Owned Museums Parks & Recreation Advisory Board (PARAB) Written communications from some of the above groups is included as part of this document. Others have expressed their desire to deliver their recommendations directly at the joint workshop on November 1. FISCAL IMPACT: Will be determined once a consensus of recommendations has been received. GROWTH MANAGEMENT IMPACT: There is no impact on the Growth Management plan with this action. RECOMMENDATION: Review and discuss input from the stakeholder group meetings concerning funding year-round destination marketing of Collier County. 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In -- C U c t- O u m ~ I- (J) ( o u ~ c:= C'd ~ ~ ~ o u ~ C'd w ~ ~ (J) ~~- ~ C'd C) ~.~( ~ ~ a: z~~ ~ ...- RESOLUTION NO.1 0- A RESOLUTION OF THE COASTAL ADVISORY COMMITTEE OF COLLIER COUNTY, FLORIDA PROVIDING ITS SUPPORT FOR YEAR ROUND DESTINATION ADVERTISING, SUPPORT FOR ADDING ONE PERCENT TO THE TOURIST DEVELOPMENT TAX FOR THIS PURPOSE, AND OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR PERCENT OF THE TOURIST DEVELOPMENT TAX. WHEREAS, the Coastal Advisory Committee of Collier County, Florida is charged with assisting the Board of County Commissioners (BCC) with its establishment of unified beach erosion control and inlet management programs and to advise the BCC and Tourist Development Council (TDC) of project priorities with respect to funding sources that are available to the County for restoration and protection of its shoreline pursuant to Ordinance No. 01-3; and WHEREAS, the Coastal Advisory Committee has discussed and carefully considered options presented regarding the County's need for year-round destination advertising, the potential to add one percent to the current four percent Tourist Development Tax, and whether to reallocate the current four percent tax which would negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the Coastal Advisory Committee is in support of year-round destination advertising and in support of adding one percent to the current Tourist Development Tax for this purpose. The CAC is opposed to reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the Coastal Advisory Committee finds that the current level of funding (approximately fifty percent of the total tax collected) is necessary for beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the Coastal Advisory Committee forwards this Resolution and recommendation to the Tourist Development Council and the Board of County Commissioners for consideration. NOW THEREFORE, BE IT RESOLVED BY THE COASTAL ADVISORY COMMITTEE OF COLLIER COUNTY, FLORIDA, that the CAC supports year-round destination advertising, supports adding one percent to the current Tourist Development Tax for a total of five percent, and opposes reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s). BE IT FURTHER RESOLVED that the CAC forwards this Resolution and recommendation to the Tourist Development Council and Board of County Commissioners for consideration. PASSED AND DULY ADOPTED by the Coastal Advisory Committee of Collier County, Florida, this I Zf ril day of 0\.' f-O/)-CF ,2010. BYift:n '?-7~ / HN F. SOREY, III COASTAL ADVISORY COMMITTEE, CHAIRMAN Approved as to form and lee!t~7n ~ Colleen M. Greene Assistant County Attorney 200S-00 I /44 ne Greater Naples C~amber of Commerce ~.~ . ~Hvlng-all of Collin County October 26, 20 I 0 Tourist Tax Recommendation The Greater Naples Chamber of Commerce supports the permanent reallocation of the 4% tourist tax revenue in order to fund a $4.5 million, year-round destination marketing program. The Chamber believes this positive investment will assist our local businesses to advance the economy. Improving our economy should create more job opportunities and spark increases in our revenues for the benefit of all in our community. Respectfully submitted on behalf of the Chamber's public policy leadership, ilr-- Michael V. Reagen, Ph.D. President & CEO The Greater Naples Chamber of Commerce & Leadership Collier Foundation Jack W. Wert Executive Director Naples, Marco Island, Everglades Convention & Visitors Bureau Dear Jack, Thank you for your presentation here in Everglades City. The Everglades Area Chamber of Commerce recommends a reevaluation offunds for the beaches. We are in favor of taxing the Districts for beach imProvement. That would allow more of the Tourist Development Money to be used for promoting tourism year rOWld. We are also in favor of increasing the Bed Tax to 5%. . . Sincerely, ~~ #M?f:hv Gene Wooten President Everglades Area Chamber of Commerce rd ~L ~ 8-969-682 e!UU!M d9~:lO O~ II I Post Office Box 130. Everglades City, Aorida 34139 239-695-3172 -MARCOdl .rJISLAND< CHAMBER OF COMV\ERCE 1102 N. Collier Blvd. . Marco Island, FL 34145 239.394.7549 Fax: 239.394.3061 www.marcolslandchamber.orQ.info@marcolslandchamber.orQ October 29, 2010 Jack W. Wert Executive Director Naples, Marco Island, Everglades Convention & Visitors Bureau 2800 N. Horseshoe Drive Naples, FL 34104 RE: Funding - Year Round Promotion & Advertising Dear Jack: The Board of Directors of the Marco Island Area Chamber of Commerce has reviewed the various options potentially available to the TOC for the implementation of a year-round promotion and advertising campaign for Collier County. After reviewing the options put forth, we have agreed to a resolution that we believe places the burden on all parties in an equitable manner and produces the most benefit for all parties involved. The basic premise behind the resolution is this - In this time of economic strain, it is incumbent upon all of us to re- evaluate the way we spend money. It would be nice if government were no different. With that goal in mind, we believe that all parties should share in some of the burden of these decisions. After reviewing the budgets and line-item expenditures (acknowledging that we do not have the specifics of each expenditure), we believe that certain projects can certainly be put off for a period of time, until the economy as a whole is better and we have managed to re-capture the tourism market share that we have lost as a result of the economy, the oil spill and a lack of year-round promotion and advertising. The three issues, combined, have created that perfect financial storm to adversely impact all of our businesses. Currently, $300,000,000 of lodging dollars generates $12,000,000 ofTDC revenue. This is allocated as follows: Beaches - SO% or $6,000,000 TDC - 37% or $4,400,000 Museums -13% or $1,560,000 The TDC's calculations indicate that every promotional dollar yields $20 in tourist spending. So, by virtue of the changes we are proposing, $2,800,000 ($1.3mm + Ya%) of additional promotional spending would yield $56,000,000. Conservatively, let's say it would actually generate $15 per $1, or $42,000,000, of which, 40% is actual lodging dollars, or $16,800,000 in taxable dollars. Stay with me folks...$316,8oo,000 at 4.5% is $14,256,000, or $14,250,000 in round numbers. Using the same percentages: Beaches - $7,125,000 TDC - $5,272,500 Museums - $1,852,500 FACP ~Jm~o~~rce MARCO ISLAND AREA CHAMBER OF COMMERCE This may mean that, for one year, the museums may have to generate $60,000 each (average) in order to meet the requirements of their operating budget (In fairness, shouldn't they have to contribute in some way to their own existence?). But after that, there will be a surplus of dollars for the Museums, based upon the current percentages. Based upon these figures, even with the ongoing contribution by the beaches and museums, the truth is that the Beaches and the Museums coffers are only adversely affected for 1 year; after that they are made whole or better than their current position. Over time, the "overage" created can go directly into the promotion of tourism, creating greater benefit for everyone. Jack, this scenario seems to be a win-win - for all involved. We hope that you will be an advocate for this solution and that all parties involved will see the merits behind this option. Sincerely, MARCO ISLAND AREA CHAMBER OF COMMERCE Cc: Jim Colletta; Fred Coyle; Donna Fiala; Frank Halas; Tom Henning; Joe Batte; Jerry Gibson; Chuck Keister; Larry Magel; Frank Recker; Bill Trotter; Wayne Waldack -MARCOjJ .rJISLAND< CHAMBER OF COMtV\ERCE 1102 N. Collier Blvd. . Marco Island. FL 34145 239.394.7549 Fax: 239,394.3061 WWN.marcoislandchamber.orq . info@marcolslandchamber.orq The Marco Island Area Chamber of Commerce (MIACC), through this resolution, offers the following suggestions for the purposes of implementing and maintaining a year-round promotion and marketing campaign for Collier County. The resolution has been voted on and approved by the majority of the Board of Directors of the MIACC. A successful tourism development plan requires a year-round promotion effort. The dollars currently being afforded to tourism development in Collier County are significantly less than those being afforded to our competing markets through their tourist tax dollars. In a time when personal, business and governmental dollars are all at a premium, decisions about how allocated dollars should be spent must be reviewed and re-considered on an ongoing basis. Our recommendations are as follows: 1) $500,000 be re-allocated from the beach re-nourishment fund and put toward advertising and promotion. 2) $500,000 be re-allocated from the Beach Park Facilities budget and put toward advertising and promotion 3) $300,000 be re-allocated from the museum operating fund and put toward advertising and promotion 4) The Tourism Development tax be increased from 4% to 4.5%, with dollars generated by this additional 1/2% to go directly and only into a year-round advertising and promotion campaign The re-allocated funds in items 1-3 above, may also be re-allocated as a percentage, in ordEH to maintain consistent re- allocation as the total tourism dollars increase as a result of re-structuring. These changes are to be implemented for a period of 3-5 years, as determined by the Board of County Commissioners, with a full review of the impact of these changes at the end of that pre-determined period. We believe that the terms of this resolution provide for an equitable level of participation in this process by all concerned parties and create an incremental funding mechanism that benefits all involved in the long-run. Respectfully submitted, Vip~r President - 2010 Marco Island Area Chamber of Commerce FACP' ~~ao~~~rc~ RESOLUTION NO.1 0-33 A RESOLUTION OF THE CITY OF MARCO ISLAND CITY COUNCIL, FLORIDA, PROVIDING ITS SUPPORT FOR YEAR ROUND DESTINATION ADVERTISING, SUPPORT FOR ADDING ONE PERCENT TO THE TOURIST DEVELOPMENT TAX FOR THIS PURPOSE, AND OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR PERCENT OF THE TOURIST DEVELOPMENT TAX. WHEREAS, the Coastal Advisory Committee of Collier County, Florida is charged with assisting the Board of County Commissioners (BCC) with its establishment of unified beach erosion control and inlet management programs and to advise the BCC and Tourist Development Council (TDC) of project priorities with respect to funding sources that are available to the County for restoration and protection of its shoreline pursuant to Ordinance No. 01-3; and WHEREAS, the City of Marco Island City Council has discussed and carefully considered options presented regarding the County's need for year-round destination advertising, the potential to add one percent to the current four percent Tourist Development Tax, and whether to reallocate the current four percent tax which would negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the City of Marco Island City Council is in support of year-round destination advertising and in support of adding one percent to the current Tourist Development Tax for this purpose. We are opposed to reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the City of Marco Island City Council finds that the current level of funding (approximately fifty percent of the total tax collected) is necessary for beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the City of Marco Island City Council forwards this Resolution and recommendation to the Tourist Development Council and the Board of County Commissioners for consideration. NOW THEREFORE, BE IT RESOLVED BY THE MARCO ISLAND CITY COUNCIL, FLORIDA, that we support year-round destination advertising, support adding one percent to the current Tourist Development Tax for a total of five percent, and oppose reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s). BE IT FURTHER RESOLVED that the Marco Island City Council forwards this Resolution and recommendation to the Tourist Development Council and Board of County Commissioners for consideration. PASSED AND DULY ADOPTED by the City of Marco Island, Florida, this Lj JI'l day of 0 cj~ ~~......... , 2010. By: Frank R. Recker, Chairman Marco Island City Council (SEAL) Attest: ~ By: ...... 4&(ura Lit , City Clerk ( Book 135' Page _ Agenda Item 20 Meeting of 10/20/10 RESOLUTION 10-12793 A RESOLUTION OF THE CITY COUNCIL OF NAPLES, FLORIDA, PROVIDING ITS SUPPORT FOR YEAR-ROUND DESTINATION ADVERTISING, SUPPORT FOR A FIFTH CENT OF TOURIST DEVELOPMENT TAXES t'oR THIS PURPOSE, OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR CENT TOURIST DEVELOPMENT TAX, AND REQUEST TO PROVIDE ADDITIONAL FUNDING FOR BEACH RENOURISHMENT AND BEACH PARK FACILITIES. WHEREAS , WHEREAS , WHEREAS , the Naples City Council has received presentations from Collier County staff regarding a proposed year-round destination advertising program, the potential to add a fifth cent to the current Tourist Development Tax, and whether a potential reallocation of the current four cent tax would negatively affect beach maintenance, beach renourishment, and beach park facility fund(s); and the Naples City Council strongly requests that the Collier County Board of Commissioners allocate at least 60% of the first two cents of the Tourist Development Tax to beach maintenance and beach renourishment, as was the intent of the referendum to adopt the Tourist Development Tax, and continue to allocate 100% of the third cent for Category A (beach maintenance, beach renourishment, and beach park facilities); and the Naples City Council is in support of year-round destination advertising and supports adding a fifth cent to the current Tourist Development Tax. The Naples City Council is opposed to reallocating the current four cent Tourist Development Tax and to the diversion of additional funds from beach maintenance, beach renourishment, and beach park facilities. Section 1. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF NAPLES, FLORIDA: Section 2. That the Collier County Board of Commissioners be strongly requested to allocate at least 60% of the first two cents of the Tourist Development Tax to beach maintenance and beach renourishment, and 100% of the third cent for beach maintenance, beach renourishment, and beach park facilities so as to insure financial support for the Collier County public beaches, the primary attraction for visitors to Naples and Collier County. That the Naples City Council supports year-round destination advertising, supports adding a fifth cent to the current Tourist Development Tax, and opposes reallocating the current four cent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s} . I hereby certify I/'!a,l the above and foregoing is a lrue and correct copy,:Of records appearing in the lea d i~ CI':" ""Oc, "~ - ;~ x: 11fe- Book 135' Page __ Resolution 10-12793 Page 2 PASSED IN OPEN AND REGULAR SESSION OF THE FLORIDA, THIS 20TH DAY OF OCTOBER, 2010. Attest: .....j and legality Tara A. Norm , City Clerk K:\REF\COUNCIL\RES\2010\lO-12793 Date filed with City Clerk: /0 _ ,2(0 -/(J October 28, 20 I 0 Tourist Development Council 330 I E. Tamiami Trail Naples, FL 34112 Dear TDC Members: The undersigned representatives of noncounty-owned museums that have received Category C-2 grants in the past few years appreciate the opportunity to share our united opinions regarding the recent discussions about the CVB's request for additional funding to provide year-round marketing efforts and the possibility of reallocating the Tourist Tax collections. We would like to note the following: - There is no line item in the Collier County budget to support the arts, so the money we receive through the TDC grants are the only arts funding provided by the County. Many other counties across the country provide more financial support for these important cultural programs that enhance the quality of life for residents and visitors. · The $300,000 allocated for FYII Category C grants is only 2.5% of the entire $12 million tax collected, so the impact of redistributing it to the CVB is negligible yet those funds make a significant difference to each of our organizations. - We work closely with the Collier County Concierge Association, hotels, Chamber and CVB to provide attractive packages for group and leisure travelers. For example, we provide discounted admission tickets, off-site facility rentals (allowing hotels to bring their own catering staff), and collaborate on packages (hotel stay with attractions tickets and other goodies) that can be sold by the hotel websites. We believe that: · Grants to the non county-owned museums should continue at the current level or be expanded because: o We promote our attractions and our destination to niche markets that the CVB does not reach, including environmental and cultural targets who have been proven to show an interest in our destination and also, in the case of cultural visitors, to stay longer and spend more money. o As not-for-profit organizations, we obtain lower advertising rates than the CVB is able to purchase and, in most cases, do not pay agency commissions. o As not-for-profit organizations, we are able to leverage TDC grant dollars in return for media sponsorships, thereby receiving free advertising (often I: I and sometimes 2: I) and greatly extending the ROI of the TDC grant funds, something the CVB cannot achieve. o Our advertising differentiates Collier County from the focus on the beach, which many communities in our competitive set have, to instead include the extensive cultural offerings. o Without TDC grant support for marketing, special events that draw tourists - such as the Naples Zoo's Summer ofSeuss and The von Liebig Art Center's Princess Diana exhibition - could not be held. · The suggestion that the Category C-2 monies remain within the CVB organization, which would offer the not-for-profit organizations coop advertising opportunities with those dollars, is not advisable because: o This does not allow us the flexibility to advertise in the ways we currently find to be successful, as each organization has niche areas in which to reach our audiences. o We need to purchase advertising based on the timing of our special events, exhibit openings, etc. and not necessarily on the timing of these coop opportunities. o The coop opportunities are expensive and well beyond our budgets; we can negotiate better deals and provide a higher ROlon her own. Additionally, we would like to suggest that you consider appointing a noncounty-owned museum representative to the Tourist Development Council, as we believe our perspective about and impact on destination marketing are a valuable asset. Respectfully submitted on behalf of: Friends of Rookery Bay Golisano Children's Museum of Naples Holocaust Museum and Education Center Naples Art Association Naples Botanical Garden Naples Historical Society Naples Zoo South Florida National Parks Trust RESOLUTION NO. 10- A RESOLUTION OF THE PARKS AND RECREATION ADVISORY BOARD OF COLLIER COUNTY, FLORIDA PROVIDING ITS SUPPORT FOR YEAR ROUND DESTINATION ADVERTISING, SUPPORT FOR ADDING ONE PERCENT TO THE TOURIST DEVELOPMENT TAX FOR THIS PURPOSE, AND OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR PERCENT OF THE TOURIST DEVELOPMENT TAX. WHEREAS, the Parks and Recreation Advisory Soard (PARAS) of Collier County, Florida is charged with assisting the Board of County Commissioners (BCC) on issues relating to Collier County's Parks and Recreation Department; and WHEREAS, the PARAS has discussed and carefully considered options presented regarding the County's need for year-round destination advertising, the potential to add one percent to the current four percent Tourist Development Tax, and whether to reallocate the current four percent tax which would negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the PARAB is in support of year-round destination advertising and in support of adding one percent to the current Tourist Development Tax for this purpose. The PARAB is opposed to reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the PARAS also opposes using beach parking fees for beach park facilities as the current beach parking fee policy provides that these funds are used to offset the operating expenses associated with the beach park facilities and By: John P. Ribes WHEREAS, the PARAB finds that the current level of funding (approximately fifty percent of the total tax collected) is necessary for beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS. the PARAB forwards this Resolution and recommendation to the Board of County Commissioners for consideration. NOW THEREFORE, BE IT RESOLVED BY THE PARKS AND RECREATION ADVISORY BOARD OF COLLIER COUNTY, FLORIDA, that the PARAB supports year-round destination advertising, supports adding one percent to the current Tourist Development Tax for a total of five percent, and opposes reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment. and beach park facility fund(s). BE IT FURTHER RESOLVED that the PARAB forwards this Resolution and recommendation to the Board of County Commissioners for consideration. PASSED AND DULY ADOPTED by the Parks and Recreation Advisory Board of Collier County. Florida. this 26th day of October, 2010. y -- Approved as to fonn and ~I sufficiency: ~lIeen M. Greene Assistant County Attorney PARKS AND RECREATION ADVISORY BOARD, CHAIRMAN 2005-001/44 EXECUTIVE SUMMARY Provide information to the BCCITDC regarding the Beaches/Inlets Revenue Vs. Expense Analysis along with additional supporting documentation relative to the reallocation of TDC beach funding for future year-round tourism advertising. OBJECTIVE: This item is provided for information only to support the BCCfTDC in decision making relative to the reallocation of existing beach/beach park facility funding for year-round tourism advertising. CONSIDERATIONS: Most organizations within Collier County recognize that our beaches and the visitor "beach" experience are the single most important factor in attracting visitors to Collier County. This has been consistently restated in visitor exit surveys conducted by the TDC. Keeping our beaches and the "beach experience" one that our visitors enjoy should be the most important objective of this community. Beaches are Collier County's economic engine that drives the tourism industry. A four-year analysis of Fund 195 Revenues and Expenditures indicates that TDC funds are not sufficient to meet our current level of service without additional funding. In the past, we have augmented our TDC funding with federal, state or other funding grants. Federal and state funding however is harder and harder to obtain and a successful program cannot be built or maintained by relying on unreliable, sporadic, unpredictable federal funding or by cutting TDC funds to maintain our beaches/park facilities. Local communities that in the past have benefited from federal and state funding are now seeking a more reliable and consistent source of revenue. Collier County's program more desired than other local governments throughout the state. Some key points to remember from our beach program are that: 1. A major renourishment reserve of $2 million and emergency reserve of $500,000 is required by BCC approved Funding Policy to be set aside each year to fund future beach work. Our yearly operation for Inlet maintenance, regulatory compliance, hot spot renourishments and beach maintenance does not have access to these funds to perform our required yearly operations. 2. The major beach renourishment reserve does not include any funding for Inlet Maintenance or Marco Island beach work at all. 3. Collier County maintains five inlets that are dredged for maintenance/beach renourishment on an 18-month to 5-year sequence. Funds for these activities have not been set aside. 4. Marco South Beach is renourished on a five-year sequence. Set aside funds have not been allocated for this activity. 5. Major beach renourishment is based on a 10-year renourishment cycle. If a shorter cycle is required, fund allocation may be insufficient. To have a successful beach experience we also cannot forget our beach park facilities. Our beaches must be well maintained, clean, attractive, and environmentally healthy with adequate parking access. In addition, our beach park facilities must provide water; a clean well maintained and attractive bathroom; a concession and the ability to provide for personnel protection from lightning, storm and sun. These facilities are critical to our inland hoteliers and visitors that do not have direct access to the beach. All these items make our beach program successful. We need adequate funding to maintain our program and positive beach experience. To support these considerations, the following attachments are offered: 1. A four-year analysis of TDC Beach Fund 195 revenues and expenses 2. A 10-year Capital Plan for Fund 195 Beaches and Inlets and a 5-year Capital plan for TDC Fund 183 Beach Park Facilities. 3. A resolution by the City of Naples supporting year-round destination advertising, Support for a fifth cent of Tourist Development Tax for this purpose, opposition to the reallocation of the current Tourist Development Tax, and a request to provide additional funding for beach restoration and beach park facilities. 4. A resolution by the City of Marco Island supporting year-round advertising but against any reallocation of existing TDC funds for beaches, inlets or beach park facilities for year-round advertising. This resolution also supports an additional fifth penny to support year-round tourism advertising. 5. A resolution by the Coastal Advisory Committee supporting year-round advertising but against any reallocation of existing TDC funds for beaches, inlets or beach park facilities for year-round advertising. This resolution also supports an additional fifth penny to support year-round tourism advertising. 6. A resolution by the Parks and Recreation Advisory Committee supporting year-round advertising but against any reallocation of existing TDC funds for beaches, inlets or beach park facilities for year-round advertising. This resolution also supports an additional fifth penny to support year-round tourism advertising. 7. A letter dated 10/25/2010 from the Florida Association of Counties identifying the difficulties and possibilities of obtaining federal beach funding. 8. A letter dated 10/20/2010 from The Ferguson Group, Collier County's federal lobbyists identifying the difficulties and possibilities of obtaining federal beach funding. 9. Meeting minutes from a 10/20/2010 telephone call with Dan Rowe, Executive Director of Bay County (Panama City) TDC and also CEO of Bay County Convention and Visitors Bureau. 10. Meeting minutes from a 10/15/2010 telephone call with Jim Trifillio, TDC/CVB from Okaloosa County (Fort Walton Beach/Destin). 11. Meeting minutes from a 10/18/2010 telephone call with Brad Pickle, TDC of Walton County (Panama City). 12. Meeting minutes from a 10/15/2010 telephone call with Bill Leaman, Okaloosa County Convention Center General Manager. ADVISORY COMMITTEE RECOMMENDATIONS: The CAC approved this item 5 to 1 at the October 14, 2010 meeting. The PARAB approved this item 5 to 0 at the 10/18/2010 meeting. FISCAL IMPACT: The Source of funds is from Category "A" Tourist Development Tax fund 195. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan related to this action. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office and is legally sufficient for Board action. - CMG RECOMMENDATION: This item is provided for information only to support the BCCITDC in decision making relative to the reallocation of existing beach/beach park facility funding for year-round tourism advertising. PREPARED BY: Gary McAlpin, CZM Fund 195 - Beaches/Inlets Revenue Vs. Expense Analysis Coastal Zone Management Department FY 2006/07 FY 2007/08 FY 2009/10 FY 2010/11 Four Year Avg Annual Revenue From TOC $4,556.000 $4,857,500 $4,355.000 $4,194,531 $4,490,758 less Major Renourishment Reserves ($2,000,000/yr.) ($2,000,000) ($2,000.000) ($2,000,000) ($2,000,000) ($2.000,000) less Emergency Reserves ($5oo,000/yr) ($500,000) ($500.000) ($500,000) ($500.000) ($500,000) less Tax Collector Fee (2.5%) ($1B,900) ($121.438) ($108,875) ($104,863) ($112.269) less Revenue Reserve (5%) ($227,800) ($242.875) ($217,750) ($209,727) ($224.538) less Debt Service and Transfers ($593,500) $0 $0 $0 ($148.375) Revenue Remaining $1,120,800 $1.993.188 $1,528.375 $1,379,941 $1,505,576 Expenses Regulatory and Permit Compliance $825,900 $961,100 $703,159 $442,100 $572,630 Beach/Pier Maintenance and Cleaning $397,000 $241,200 $285,000 $340,850 $312,925 Admistrative Fee's $374,400 $480,000 $500,000 $511,100 $505,550 Indirect Administrative costs - County $0 $0 $0 $117,700 $S8,8S0 Sub-total Expenses $1.597,300 $1,682,300 $1,488,159 $1,411,750 $1,449,955 Revenue Remaining without any Inlet or Marco Projects -$476,500 $310,888 $40.216 -$31,809 $55.621 Authorized Projects less Major County Beach Renourish Wiggins Pass Master Plan permit/Engr $160,717 Clam Pass Ebb Shoal Modeling $125,000 Marco Beach Breakwater/Renourish Study $100,000 Hideaway Beach Erosion Control Structures $1,600,000 Sand Source permitting - Cape Romano $50,000 Marco Breakwater and Doctors Jetty Rebuild $700,000 Naples Drainage Study $50,000 Park Shore Emergency Dredge Engineering $40,000 Emergcy Truck Haul - Park Shore/Doctors Pass $1,500,000 Wiggins Pass Intermediate Dredge Engineering $20,000 Wiggins Pass Inlet Management Plan and EIS $125,178 Wiggins Pass Intermediate Dredging $750,000 Clam Pass Water Quality Modeling $50,000 FY12/13 Marco Beach/B'water Analysis/Design $150,000 Sub-total Authorized Projects $685,000 $3,734,700 $2.785,717 $2,635,178 $2.460,149 Revenue Remaining with Authorized Projects -$1,161,500 -$3,423.813 -$2,745.501 -$2,666,987 -$2,404,527 III Z o 1= u w a Ill: IL o Z :;) '"' II) ~ I :t >- ~ CI I!! c u ~ ~ < l- e l~l((("'l~ ~:!~liil~ ~~ ~ - .. . 2 , ... 2 i:: .. 2 i:: l ~ (( ~ I .. ~ ~ ~ ... ~ li ~ . 5i ii .. .. ~ ;; ii ~ .. ~ .. .. l l ... 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Page_ Aqenda Item 20 Meeting of 10/20/10 RESOLUTION 10-12793 A RESOLtnION OF THE CI'l'Y COUNCIL OF NAPLES, FLORIDA, PROVIDING ITS SUPPORT FOR YEAR-ROUND DESTINATION ADVERTISING, SUPPORT FOR A FIF'l'H CENT OF TOURIST DEVELOPMBNT TAXES jooR THIS PURPOSE, OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR CENT TOURIST DEVELOPMENT TAX, AND REQUEST TO PROVIDE ADDITIONAL FUNDING FOR BEACH RENOURISHMENT AND BEACH PARK FACILITIES. WHEREAS , WHEREAS , WHEREAS , the Naples City Council has received presentations from Collier County staff regarding a proposed year-round destination advertising program, the potential to add a fifth cent to the current Tourist Development Tax, and whether a potential reallocation of the current four cent tax would negatively affect beach maintenance, beach renourishment, and beach park facility fund(s); and the Naples City Council strongly requests that the tol1ier County Board of Commissioners allocate at least 60\ of the first two cents of the Tourist Development Tax to beach maintenance and beach renourishment, as was the intent of the referendum to adopt the Tourist Development Tax, and continue to allocate 100\ of the third cent for Category A (beach maintenance, beach renourishment, and beach park facilities); and the Naples City Council is in support of year-round destination advertising and supports adding a fifth cent to the current Tourist Development Tax. The Naples City Council is opposed to reallocating the current four cent Tourist Development Tax and to the diversion of additional funds from beach maintenance, beach renourishment, and beach park facilities. Section 1. NOW, THEREFORE, BE IT RESOLVED BY THE CI'l'Y COUNCIL OF NAPLES, FLORIDA: Section 2. That the Collier County Board of Commissioners be strongly requested to allocate at least 60\ of the first two cents of the Tourist Development Tax to beach maintenance and beach renourishment, and 100\ of the third cent for beach maintenance, beach renourishment, and beach park facilities so as to insure financial support for the Collier County public beaches, the primary attraction for visitors to Naples and Collier County. That the Naples City Council supports year-round destination advertising, supports adding a fifth cent to the current Tourist Development Tax, and opposes reallocating the current four cent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s) . I hereby certify ll'lal'lhe above and fonIglIIng .'We and correct cop~ records appearing In ..... tI ily CI~'s f:)fo~,.('. Cltv of Na FIaddL . Book 135. Page _ -;;' Re.olution 10-12793 llage 2 .. llASSED IN OPEN AND REGULAR SESSION OF THE FLORIDA, THIS 20TH DAY OF OCTOBER, 2010. , '~.,J ~ved as tfl\form and legality - i<'~ \)/ ~~ Robert D. pritt~- ~ily Attorney No . City Clerk N:\RBP\OOUMCIL\asS\2010\lO-12793 Date filed with City Clerk: 10 _ ,2~ -/() s, ( . -,- .. RESOLUTION NO.1 0-33 A RESOLUTION OF THE CITY OF MARCO ISLAND CITY COUNCIL, FLORIDA, PROVIDING ITS SUPPORT FOR YEAR ROUND DESTINATION ADVERTISING, SUPPORT FOR ADDING ONE PERCENT TO THE TOURIST DEVELOPMENT TAX FOR THIS PURPOSE, AND OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR PERCENT OF THE TOURIST DEVELOPMENT TAX. WHEREAS, the Coastal Advisory Committee of Collier County, Florida is charged with assisting the Board of County Commissioners (BCC) with its establishment of unified beach erosion control and inlet management programs and to advise the BCC and Tourist Development Council (TDC) of project priorities with respect to funding sources that are available to the County for restoration and protection of its shoreline pursuant to Ordinance No. 01-3; and WHEREAS, the City of Marco Island City Council has discussed and carefully considered options presented regarding the County's need for year-round destination advertising, the potential to add one percent to the current four percent Tourist Development Tax, and whether to reallocate the current four percent tax which would negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the City of Marco Island City Council is in support of year-round destination advertising and in support of adding one percent to the current Tourist Development Tax for this purpose. We are opposed to reallocating the current four percent Tourist f. ' II Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the City of Marco Island City Council finds that the current level of funding (approximately fifty percent of the total tax collected) Is necessary for beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the City of Marco Island City Council forwards this Resolution and recommendation to the Tourist Development Council and the Board of County Commissioners for consideration. NOW THEREFORE, BE IT RESOLVED BY THE MARCO ISLAND CITY COUNCIL, FLORIDA, that we support year-round destination advertising, support adding one percent to the current Tourist Development Tax for a total of five percent, and oppose reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s). BE IT FURTHER RESOLVED that the Marco Island City Council forwards this Resolution and recommendation to the Tourist Development Council and Board of County Commissioners for consideration. ,. ., . PASSED AND DULY ADOPTED by the City of Marco Island, Florida, this 4 In day of 0 cJ~ b"./ , 2010. By: Frank R. Recker, Chairman Marco Island City Council (SEAL) Attest: ~ By: ra Lit , City Clerk ....- RESOLUTION NO.1 0- A RESOLUTION OF THE COASTAL ADVISORY COMMITTEE OF COLLIER COUNTY, FLORIDA PROVIDING ITS SUPPORT FOR YEAR ROUND DESTINATION ADVERTISING, SUPPORT FOR ADDING ONE PERCENT TO THE TOURIST DEVELOPMENT TAX FOR THIS PURPOSE, AND OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR PERCENT OF THE TOURIST DEVELOPMENT TAX. WHEREAS. the Coastal Advisory Committee of Collier County, Florida is charged with assisting the Board of County Commissioners (BCC) with its establishment of unified beach erosion control and inlet management programs and to advise the BCC and Tourist Development Council (TDC) of project priorities with respect to funding sources that are available to the County for restoration and protection of its shoreline pursuant to Ordinance No. 01-3; and WHEREAS, the Coastal Advisory Committee has discussed and carefully considered options presented regarding the County's need for year-round destination advertising, the potential to add one percent to the current four percent Tourist Development Tax, and whether to reallocate the current four percent tax which would negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the Coastal Advisory Committee is in support of year-round destination advertising and in support of adding one percent to the current Tourist Development Tax for this purpose. The CAC is opposed to reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the Coastal Advisory Committee finds that the current level of funding (approximately fifty percent of the total tax collected) is necessary for beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the Coastal Advisory Committee forwards this Resolution and recommendation to the Tourist Development Council and the Board of County Commissioners for consideration. NOW THEREFORE, BE IT RESOLVED BY THE COASTAL ADVISORY COMMITTEE OF COLLIER COUNTY, FLORIDA, that the CAC supports year-round destination advertising, supports adding one percent to the current Tourist Development Tax for a total of five percent, and opposes reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s). BE IT FURTHER RESOLVED that the CAC forwards this Resolution and recommendation to the Tourist Development Council and Board of County Commissioners for consideration. PASSED AND DULY ADOPTED by the Coastal Advisory Committee of Collier County, Florida, this /!.j /-;" day of 0(' -I-otJ-e ,- ,2010. By~r~:~ / HN F. SOREY, III COASTAL ADVISORY COMMITTEE, CHAIRMAN Approved as to form and le~7n ~. Colleen M. Greene Assistant County Attorney 2005-001/44 .. "4. 'S RESOLUTION NO. 10- A RESOLUTION OF THE PARKS AND RECREATION ADVISORY BOARD OF COLLIER COUNTY, FLORIDA PROVIDING ITS SUPPORT FOR YEAR ROUND DESTINATION ADVERTISING, SUPPORT FOR ADDING ONE PERCENT TO THE TOURIST DEVELOPMENT TAX FOR THIS PURPOSE, AND OPPOSITION TO THE REALLOCATION OF THE CURRENT FOUR PERCENT OF THE TOURIST DEVELOPMENT TAX. WHEREAS, the Parks and Recreation Advisory Board (PARAB) of Collier County, Florida is charged with assisting the Board of County Commissioners (BCC) on issues relating to Collier County's Parks and Recreation Department; and WHEREAS, the PARAB has discussed and carefully considered options presented regarding the County's need for year-round destination advertising, the potential to add one percent to the current four percent Tourist Development Tax, and whether to reallocate the current four percent tax which would negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the PARAB is in support of year-round destination advertising and in support of adding one percent to the current Tourist Development Tax for this purpose. The PARAS is opposed to reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s); and WHEREAS, the PARAB also opposes using beach parking fees for beach park facilities as the current beach parking fee policy provides that these funds are used to offset the operating expenses associated with the beach park facilities and WHEREAS, the PARAB finds that the current level of funding (approximately fifty percent of the total tax collected) is necessary for beach maintenance, beach renourishment, and beach park facility fund(s); and ... ........- ~ WHEREAS, the PARAB forwards this Resolution and recommendation to the Board of County Commissioners for consideration. NOW THEREFORE, BE IT RESOLVED BY THE PARKS AND RECREATION ADVISORY BOARD OF COLLIER COUNTY, FLORIDA, that the PARAB supports year- round destination advertising, supports adding one percent to the current Tourist Development Tax for a total of five percent, and opposes reallocating the current four percent Tourist Development Tax if the reallocation will negatively affect the beach maintenance, beach renourishment, and beach park facility fund(s). BE IT FURTHER RESOLVED that the PARAB forwards this Resolution and recommendation to the Board of County Commissioners for consideration. PASSED AND DULY ADOPTED by the Parks and Recreation Advisory Board of Collier County, Florida, this day of ,2010. By: PARKS AND RECREATION ADVISORY BOARD, CHAIRMAN Approved as to form and legal sufficiency: Colleen M. Greene Assistant County Attomey 2005-00 1144 r:~ F~- FLORIDA ASS< >ClATION OF COUNTIES All About Florida lu!N1! LIDERM^," I)M""'II)FNT I\tlC'IW'\HU DoUG5M1TH flltt-~~rrW.Nr' r-:1J~:''' M.\KI1N BILL WILUAMS fo'lI("\ r \'U:r: Pttlo.!lII>l.....t1 C.llt- BRYAN DESLOGE Su:",clNJ> VII'e I-HF:lIIWN I 1_t-'llN RODNEY J. LoNG ho,n'llI^"l1~ P.\trr J)~~~IDH~T .'\L\C1IlM CtuusTOPHER L. HOLLEY f:xl"1~1fnVF I>IIU:CI1)1.( October 25, 2010 Debbie Wight 3301 E. Tamiami Trail Naples, FL 34112 Re: Federal and State Beach Funding Dear Ms. Wight: FAC is writing this letter in response to your request of October 14, 2010, for information regarding federal and state beach funding. Federal Beach Funding Process In order to secure funding for a federal shore-protection project, which includes initial restoration and periodic renourishment, there are several steps that must be completed: 1. In order to determine whether there is any federal interest in funding a project, a reconnaissance study must be completed and submitted to the Army Corps of Engineers for review and a determination of federal interest; 2. If there is a federal interest in the project, the next step is a feasibility study. The study must examine sand availability and construction feasibility, as well as project costs, maintenance requirements, and environmental impacts; 3. Federal project authorization in a Water Resources Development Act (or WRDA) must be secured. This authorization can occur biannually but may be far less frequent, consuming years oftime. This can only be received following a demonstration of federal interest, as well as economic and environmental feasibility; and 4. Federal appropriation can only be sought after all of these steps are complete. The appropriation process can also be time consuming and take several years. The completion of these steps generally requires assistance from consultants, including professional engineers and federal governmental consultants. State Beach Funding Process In order to secure funding for a state beach nourishment project, the applicant must complete a form requesting funding and submit it to the Florida Department of Environmental Protection (DEP). After reviewing all the applications, DEP determines which projects to fund. Then, state designated projects are ranked, considering several factors. ----- P.o. Box 549. T ^l~AH^SSF.F.. FL 32:~U2' PHONE: (850) 922-4:100 . SlJNCOM: 292-4300 . fAX: (850) 488.7501 WWW.FL-COUNTIES.COM letter to Debbie Wight October 25, 2010 Page 2 Because state funding is now so limited, readiness to proceed and federal funding are the two most important factors to receiving state dollars. This policy should be a temporary one that will ease as Florida's economy Improves. State funding also depends on whether the statewide beach management program is funded year to year by the legislature. While the intended $30 million in annual funding from documentary stamp revenues has not been appropriated in the past few years, the beach program has continued to receive significant non-recurring general revenue. In the 2010-11 fiscal year, $16.5 million was appropriated for beach projects. Because your question was limited to funding, this letter does not describe the permitting process. However, permits must be received from both the Army Corps of Engineers as well as the DEP, regardless of how the project is funded. Feel free to contact Diana Ferguson, legislative Staff Attorney, at 850-922-4300 or dferguson@fl- counties.com should you have any further questions. Sincerely, CHI df cc: Gary McAlpin, Collier County THE FERGUSC)N GRC)UPi i ( ! I \(1 Connt.'l !l( ul AVPIlUt', "\\' Suitt. H}{) \V.),h,n~101\. [) C :O{lll. _~I".l:. n 1.o"j(}() ~ln2, 3 t 1 I -)'}R i.l\. MEMORANDUM FROM: DATE: RE: Board of County Commissioners Collier County, Florida Val Gelnovatch and Amanda Wood, The Ferguson Group October 20, 2010 Outlook for Federal Beach Renourishment Funding TO: The following memo outlines the actions Collier County would need to take in pursuit of federal beach renourishment funding. While establishing a partnership with the federal government to fund beach renourishment activities can ultimately be achieved, this process requires a number of years and would require the County to prioritize this effort above other pending funding requests that you have identified in this area, including Naples Bay Restoration, Vanderbilt Lagoon and the Tri-county water interconnect projects. Please note that successful implementation of this strategy, under the very best of conditions, will still require non-federal funding to support your beach renourishment program for at least the next 5 years. These projects have sometimes been known to take even longer, as much as 10 years. Background The Water Resources Development Act (WRDA) is the primary legislative vehicle that is dedicated to authorizing U.S. Army Corps of Engineers (USCOE) activities, and establishing policies for the USCOE civil works programs. It authorizes the USCOE to conduct studies, construct projects, and make major modifications to previously constructed projects. Beginning in 1986, Congress enacted WRDA legislation every two years; however, due to conflicts related to proposals to reform the way the USCOE conducted its work, there was no WRDA bill between the years of 2000 and 2007. Collier County currently has a WRDA 2007 authorization which states: "The Secretary shall conduct a study to determine the feasibility of carrying out a project for hurricane and storm damage reduction and flood damage reduction in the vicinity of Vanderbilt, Park Shore and Naples beaches, Collier County, Florida." We assisted the County in obtaining an authorization for the study in 2007, but the County has not yet been able to obtain a congressional line item for the $500,000 appropriation needed for the USCOE to complete this study. Process and Timeline for Obtaining Federal Beach Renourishment Funding Completion of the current WRDA-authorized study, by the USCOE, is the necessary first step to a WRDA authorization for beach renourishment construction. In order to obtain this funding the County staff, in coordination with TFG, will work with the USCOE regional office to determine why the office has not recommended funding for this project to date, and we will pursue funding again in FY12. If the County can obtain funding through the FY12 Energy and Water appropriations process, the USCOE would receive the funds to carry out the project during the spring of 2012. Once the study is completed, the County could be eligible to seek a WRDA authorization. If Congress has not yet passed its current WRDA bill by the time your study is completed (2012 - 2013), the County could seek WRDA authorization at that time. If the County successfully obtains an authorization, the USCOE would take over the beach renourishment project and the County could seek a federal appropriation for the USCOE for the following year, which would be FY 2014. If the County successfully obtained an appropriation for its beach renourishment project in FY2014, the USCOE would receive the funds and be able to begin work on nourishing Collier County beaches during the spring of 2015. In short, pursuit of federal beach renourishment funding can be an onerous, drawn out process, and one that could make planning your County program quite difficult. Additional Items for Consideration . The last WRDA was passed in 2007. It took Congress 7 years to pass the 2007 WRDA bill. If the Congress were to pass its current WRDA bill prior to the USCOE completion of the County study, the County would have to wait for the next WRDA bill to seek beach renourishment authorization, which could be quite some time from now. . As a coastal county, Collier has a variety of Energy and Water appropriations needs such as Naples Bay Restoration, Vanderbilt Lagoon and the Tri-county water interconnect projects. In order to maximize the chance of receiving beach renourishment appropriations, the County would have to prioritize beach funding over its many competing Energy and Water projects. . WRDA authorization does not assure annual federal funding. Shore protection funds are highly competitive, politically driven, and as a result funding for authorized projects can be undependable. . WRDA authorized projects do not always receive the level of funding required to continue the project as per its construction timeline. When this happens the USCOE slows down construction. . Reimbursement - Some Florida beach renourishment projects are authorized as reimbursement projects, which allows the local sponsor to expend funds and then seek reimbursement from the federal government for the local share. Historically, local governments did this in order to move the project along at a faster pace than the USCOE might be able to move it along. As federal Energy and Water resources have become more and more constrained, the reimbursable projects have dropped to the bottom of the list for Energy and Water funding-- leaving some local sponsors unreimbursed for the past several years. TFG does not recommend pursuing an authorization for reimbursement. Recommendations It would be unwise to rely on federal funding at this time. If the County is successful during every step of the way during this process, the soonest federal funding would flow to the project would be the year 2015, and even then the County would not be assured of annual federal funding that would meet its needs. The Ferguson Group recommends that the County first work with the USCOE to complete the currently authorized study. Once that study is complete, the County can pursue a WRDA authorization for beach renourishment construction. Once WRDA authorization is completed, TFG recommends the County go through one full year with an appropriations request to see if the project receives funding and how much. Only then would we recommend the Board consider whether to reduce or discontinue TDC funding. 10/26/2010 Meeting minutes from a 10/20/2010 telephone call with Dan Rowe, Executive Director of Bay County (Panama City) TDC and also CEO of Bay County Convention and Visitors Bureau with Gary Mcalpin and Debbie Wight. Contact information for verification if desired: - drowe@visitpanamacitvbeach.com - Office - 850-233-5070 - Cell - 850-819-5196 Kev Comments: 1. Federal funding for beaches is not a priority for the government. Budgets are exceedingly tight and getting tighter. Wide beaches are not more important than other federal government funding obligations. 2. Bay County is applying for federal funding and they are confident they will receive it sometime in the future. It will probably take 10 to 15 years to obtain federal funding if starting from scratch. 3. 18 months ago Bay County approved an increase from 3% to 5% in TDC funding. 4. A 1 % increase in TDC funding will not deter visitors from coming to Collier County. Bay County has experienced a year over year increase in tourism and was not affected by the increase in tourist taxes. 5. Hoteliers will find a way to offset the 1 % increase in taxes in the bid process of the convention business when pulling together their bids. 10/26/2010 Meeting minutes from a 10/15/2010 telephone call with Bill Leaman, Okaloosa County (Fort Walton Beach/Destin) Convention Center General Manager with Gary McAlpin and Debbie Wight. Contact information for verification if desired: - bleaman@co.okaloosa.fl.us - Office: 850-609-3800 Kev Comments: 1. Okaloosa County went to 5% Tourist Tax approximately 1.5 years ago. 2. Going to 5% from 4% in Okaloosa County has done nothing but help the convention business. The additional 1 % was transparent and has not affected sales. 3. There has been no impact on the additional penny increase to the hotelier industry. The convention center has not experience one complaint since the increase was enacted. 4. Okaloosa convention business has increased for the last 8 years, every year. There has been no impact to the convention center by a tax increase. 10/26/2010 Meeting minutes from a 10/15/2010 telephone call with Jim Trifilio, TDC/CVB from Okaloosa County (Fort Walton BeachlDestin) with Gary McAlpin and Debbie Wight. Contact information for verification if desired: - itrifilio@co.okaloosa.f1.us - Office: 800-322-3319 Kev Comments: 1. Okaloosa County is currently seeking federal funding for their beach renourishment program. 2. 10 years are not unreasonable to expect in obtaining authorization for federal funding. Once authorized, yearly funding through the appropriation process is still required. Prior to 2007, it had been 7 years before a funding appropriation through WRDA was approved by congress. 3. Federal funding can't be counted on to maintain your program. 4. Okaloosa County added a dedicated individual to collect tourist tax funds with significant success. 10/26/2010 Meeting minutes from a 10/15/2010 telephone call with Brad Pickle, TDC of Walton County (Panama City) with Gary McAlpin and Debbie Wight. Contact information for verification if desired: - Office: 843-379-1005 - Cell: 850687-9825 Kev Comments: 1. Federal funding is a 10 year project. Walton County is currently applying for federal funding with Marlow and Associates and believe they will get the authorization. They began the process in 2003 applying for federal funding and are still waiting for authorization. After authorization they must also wait for an appropriation of funds. 2. They are currently at 4.5% tourist tax, having increased funding in 2005/06. 3. Walton County has used a variety funding mechanisms to fund beach renourishment. The first beach renourishment was performed by the County borrowing $10M to perform renourishment. 4. County Commission can't afford a $40M beach renourishment project and is dependent on federal funding which appears uncertain at this point.