Agenda 10/24/2017 Item #11E10/24/2017
EXECUTIVE SUMMARY
Recommendation to reject the most recent proposals from the City of Naples related to the
renewal of the Interlocal Agreement governing reciprocal use of City and County beach
parking facilities and park and recreation programs.
OBJECTIVE: To provide direction regarding the stalemated negotiations between the County
and the City of Naples for a successor Interlocal Agreement governing reciprocal use of City and
County beach parking facilities and park and recreation programs.
CONSIDERATIONS: On March 7, 2017, the City and County held a joint workshop that
discussed, among other topics, public beach parking supply, access and utilization patterns
throughout the County. The Board and the City Council directed their respective managers to
work on a successor Interlocal Agreement and report back on progress.
The Board and City Council approved an Interlocal Agreement effective October 1, 2008 that
allows City and County residents to enjoy use of each other’s facilities and programs on the
“same terms and conditions.” In consideration for the use of City facilities by non -City residents,
the Agreement obligates the County to issue an annual payment of $1,000,000 plus or minus an
adjustment indexed to the City’s relative payment of taxes to the County’s General Fund. For the
FY 2016 period, the total payment made to the City was $1,177,000. The total payment for the
FY 2017 period is expected to be $1,137,864. The Agreement expires on September 30, 2018.
To lend context to the County’s point of reference in these negotiations and to help demonstrate
the reasonableness of its position, it is important to recall the fundamental objectives of the
current and former Interlocal Agreements on these matters. The first objective was to avoid a
deficit in the City’s annual beach fund by including a contribution to the fund from the County in
recognition of County residents’ use of City public beach parking facilities. The second
objective was to ensure that County residents would not be charged a different rate for
participation in City parks and recreation programs than the rate charged by the City to its
residents. The original metrics that were used by the County to help determine its level of
contributions were the following:
With respect to the City Beach Fund, the County had historically funded a portion of the
City’s actual annual beach fund deficit based on the percentage of non-City residents
using City beach parking spots. The County’s contribution averaged $450,000 per year.
This would ensure that the fund operated on a break-even basis.
With respect to the utilization of park and recreation programs, the County would make a
contribution to ensure that the level of cost recovery (revenues generated by user fees as a
percentage of total program expenses) was generally the same for both the County and
the City. The cost recovery percentage for the County’s park and recreation system is
approximately 35% in FY 2017.
Based on the budget information supplied by the City for FY 2017, the amount of County
funding needed to satisfy the objectives above was approximately $710,000 ($360,592 to bring
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the beach fund into balance and approximately $350,000 to bring the City’s parks and recreation
fund to a 35% level of cost recovery).
The County payment under the agreement for the FY 2017 period, including the adjustment
factor, is expected to be $1,137,864 and according to the City budget would be applied as
follows:
$0 to the Beach Fund
$1,137,864 transferred to the General Fund, which when applied to parks and recreation
programs would result in a level of cost recovery in excess of 60%.
Clearly, the County payment under the agreement is more than sufficient to cover the City’s
annual beach fund deficit and bring its parks and recreation fund cost recovery level to 35%,
identical to the County’s cost recovery benchmark.
Furthermore, a review of the City’s recently adopted FY 2018 budget reveals that the Naples
Beach Fund is projected to have a surplus of $183,842 by year end, without receiving any
allocation of the County funding derived from the Interlocal Agreement. The City and County
continue to operate their respective Parks & Recreations programs at comparable cost recovery
levels.
The 2008 Interlocal Agreement, and those enacted previously, have been based on the principles
of “fair share” and preserving resident access. County staff continues to believe that both of our
entities should view access to the beaches of Collier County and the City of Naples as a valued
public benefit, and the importance of this view is reinforced by the structure of our current and
previous Interlocal Agreements. However, the City has made it clear they wish to modify the
paradigm and operate their beach parking fund as a profit center.
Understanding the City’s desire to increase revenues, one strategy that has been discussed to help
meet this goal, without restricting resident beach access, is the elimination of the non -resident
beach parking pass. Currently, visitors to Collier County can purchase an annual pass that allows
access to all City of Naples and Collier County beaches at the cost of $50. In 2016, the County
issued 9,916 beach parking stickers to non-residents, netting annual revenues of $495,800. The
City issued 900 more per their internal data, generating minimal revenue. Elimination of this
pass will result in increased revenue generation from user parking fees to the City, with the
County hoping to recover the loss of non-resident parking pass revenue through point of sale
parking fees. Based on staff projections, the elimination of the non-resident parking pass could
generate approximately $500,000 annually for both the City and the County.
The City Manager and County Manager have exchanged multiple proposals over the past several
months in a good faith effort to arrive at a mutually agreeable position. To fulfill the City’s
desire to increase the amount of revenue from beach parking fees and preserve the long-standing
program of reciprocal use of City and County public beach parking spaces, t he County Manager
presented an offer to the City Manager to provide $1,250,000 per year in return for continued
free parking for County residents at City public beach parking facilities, along with equal terms
and conditions for use of the City’s Parks & Recreation programs. In addition, the County
Manager would recommend elimination of the non-resident beach parking pass, resulting in
additional revenue for the City.
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The proposed annual payment of $1,250,000 would cover about 53% of the expenses associat ed
with an already profitable Naples Beach Fund. That percentage is comparable to the percentage
of non-City resident usage of City beach parking spaces based on a one-time peak season
“survey” reported by the City. Importantly, the County Manager’s proposal also ensures parity in
City & County Parks and Recreation program fees. The proposed increase in the annual contract
payment, together with the addition of revenue generated from the elimination of the non -
resident beach parking permit, estimated at $500,000 annually for the City, represents a
substantial increase in discretionary revenue for the City.
The latest proposal from the County Manager offered the following terms on September 29,
2017:
Collier County to provide $1,250,000 annually to the City.
Free parking permitted at all Naples public beach parking spaces. Applicable to the
residents of the City and unincorporated Collier County.
No sale or distribution of non-resident beach passes, effective immediately upon formal
acceptance of this proposal. Applicable to the City and Collier County.
Continue to make Parks & Recreation Programs available to unincorporated area
residents on the same terms and conditions as City of Naples residents.
New interlocal agreement to replace the existing agreement for a term of five years.
After consideration of the County Manager’s offer, the City Manager communicated that he
would prefer the County Commission consider his previously presented offer to the County
Manager proposing the following, which did not include terms on Parks & Recreation programs:
Collier County to provide $1,500,000 annually to the City, effective January 1, 2018.
Free parking permitted at all Naples public beach parking spaces. Applicable to the
residents of the City and unincorporated Collier County.
No sale or distribution of non-resident beach passes, effective immediately upon
acceptance of this proposal. Applicable to the City and Collier County.
New interlocal agreement to replace the existing agreement for a term of three years,
beginning January 1, 2018.
Should the Board wish to consider the City’s last offer, the term should be extended to ten years.
Additionally, the City should be prohibited from charging County residents using City parks and
recreation programs a higher user charge than those applied to City residents.
Alternatively, if the Board rejects the City’s proposal, the City Manager offered another proposal
to continue with all provisions of the existing Agreement until expiration on September 30, 2018,
provided that the County and City cease the sale of non-resident beach parking passes
immediately. County staff does not favor this proposal as it provides an immediate substantial
revenue increase to the City without requiring a long-term commitment on the primary issues of
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free County resident use of City public beach parking spaces and equal terms and conditions for
use of the City’s Parks & Recreation programs.
FISCAL IMPACT: Pursuant to the terms of the existing Interlocal Agreement, the County
remits a base payment of $1,000,000 plus or minus an adjustment that is indexed to the City’s
relative payment of taxes to the County’s General Fund. For the FY 2016 period, the payment to
the City was $1,177,000. For the FY 2017 period, the payment is expected to be $1,137,864.
The City’s current proposal would require an annual payment of $1,500,000. In addition,
elimination of the non-resident beach pass would reduce current County revenues by
approximately $500,000. However, this loss is projected to be offset through direct point of sale
parking fee revenues to the County and could provide an additional $500,000 of parking revenue
to the City.
Acceptance of the County Manager’s proposal is projected to net the City an additional estimated
$612,000 annually. If the Board accepts the City’s proposal, net revenue will increase by
approximately $862,000 annually compared against projected FY17 revenues, with no guarantee
that disparate user fees for use of City parks programs won’t be assessed against Cou nty
residents.
GROWTH MANAGEMENT IMPACT: There is no growth management impact.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises
no legal issue at this time, and requires majority vote for approval. -JAK
RECOMMENDATION: To reject the City’s proposals and provide further guidance to the
County Manager for subsequent negotiations.
ATTACHMENT(S)
1. September 29 2017 EMail from County Manager Ochs to City Manager Moss (DOCX)
2. County Proposal #3 Beach Parking-Recreation 9-5-17 (DOCX)
3. October 3, 2017 E-Mail from City Manager Moss to County Manager Ochs (DOCX)
4. City Proposal #3 Beach Parking-Recreation 9-1-17 (DOCX)
5. City Proposal #4 Beach Parking-Recreation 10-2-17 (DOCX)
6. Interlocal Agreement 2008 (PDF)
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10/24/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.E
Doc ID: 3981
Item Summary: Recommendation to reject the most recent proposals from the City of Naples
related to the renewal of the Interlocal Agreement governing reciprocal use of City and County beach
parking facilities and park and recreation programs. (Sean Callahan, Public Services Operations Support
Division Director)
Meeting Date: 10/24/2017
Prepared by:
Title: Executive Secretary to County Manager – County Manager's Office
Name: MaryJo Brock
10/18/2017 12:00 PM
Submitted by:
Title: County Manager – County Manager's Office
Name: Leo E. Ochs
10/18/2017 12:00 PM
Approved By:
Review:
Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 10/18/2017 9:35 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 10/18/2017 3:07 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 10/18/2017 3:23 PM
Board of County Commissioners MaryJo Brock Meeting Pending 10/24/2017 9:00 AM
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From: OchsLeo
Sent: Friday, September 29, 2017 10:52 AM
To: Bill Moss (bmoss@naplesgov.com) <bmoss@naplesgov.com>
Subject: County Proposal #3 Beach Parking-Recreation 9-29-17.docx
Greetings Bill,
The summary version of the proposal I briefly discussed with you this morning is attached for your
consideration. As I mentioned, I believe this is a very fair offer and essentially represents my best
and final without involving my Board. Please give it serious consideration and advise soonest. I’d
like to get this done so we can advise visitors before they return about the elimination of the non-
resident sticker program. Thanks.
Leo
11.E.1
Packet Pg. 173 Attachment: September 29 2017 EMail from County Manager Ochs to City Manager Moss (3981 : City of Naples Interlocal Agreement)
Collier County
City-Collier County Beach Parking and Parks/Recreation
Proposal #3
September 29, 2017
1. Non-resident Beach Passes
a. No sale or distribution of non-resident beach passes, effective upon a
mutually agreed upon date.
b. Applicable to the City and Collier County.
2. Beach Parking in Naples for vehicles with Collier County Beach Pass
a. Free parking permitted at all Naples public beach parking spaces.
b. Applicable to the residents of the City and unincorporated Collier
County.
3. Parks & Recreation Programming
a. Continue to make Parks & Recreation Programs available to for
unincorporated residents on the same terms and conditions as City of
Naples residents.
4. Interlocal Agreement
a. Collier County to provide $1,250,000 annually to the City.
b. New interlocal agreement to replace the existing agreement for a term
of five years.
11.E.2
Packet Pg. 174 Attachment: County Proposal #3 Beach Parking-Recreation 9-5-17 (3981 : City of Naples Interlocal Agreement)
From: Bill Moss [mailto:bmoss@naplesgov.com]
Sent: Tuesday, October 03, 2017 11:56 AM
To: OchsLeo <LeoOchs@colliergov.net>
Cc: Ann Marie Ricardi <aricardi@naplesgov.com>; Gary Young <GYoung@naplesgov.com>; Lisa Douglass
<ldouglass@naplesgov.com>; Dana Souza <DSouza@naplesgov.com>
Subject: FW: County Proposal #3 Beach Parking-Recreation 9-29-17.docx
Leo:
Thank you for your latest proposal regarding Collier County and the City of Naples
beach parking and parks/recreation agreement. I regret that we are not willing to
recommend acceptance of your Proposal #3 to the Naples City Council.
We prefer that you advance the City’s Proposal #3 to the Board of County
Commissioners. However, if you and/or the Board do not find that Proposal to be
acceptable, we offer Proposal #4 attached, which provides a continuation of the terms
of the existing Interlocal Agreement until its termination on September 30, 2018 with the
understanding that, effectively immediately, Collier County and the City will no longer
provide non-resident beach stickers.
Proposal #4 will allow the City and County time to consider other alternatives over the
next year.
Bill Moss
City Manager
City of Naples
bmoss@naplesgov.com
11.E.3
Packet Pg. 175 Attachment: October 3, 2017 E-Mail from City Manager Moss to County Manager Ochs (3981 : City of Naples Interlocal Agreement)
City of Naples
City-Collier County Beach Parking and Parks/Recreation
Proposal #3
September 1, 2017
1. Beach passes to non-residents.
a. No sale or distribution of non-resident beach passes, effective immediately
upon acceptance of this proposal.
b. Applicable to the City and Collier County.
2. Beach Parking in Naples for vehicles with Collier County Beach Pass
a. Free parking permitted at all Naples public beach parking spaces.
b. Applicable to the residents of the City and unincorporated Collier Count y.
3. Interlocal Agreement
a. Collier County to provide $1,500,000 annually to the City, effective January 1,
2018.
b. New interlocal agreement to replace the existing agreement for a term of
three years, beginning January 1, 2018.
11.E.4
Packet Pg. 176 Attachment: City Proposal #3 Beach Parking-Recreation 9-1-17 (3981 : City of Naples Interlocal Agreement)
City of Naples
City-Collier County Beach Parking and Parks/Recreation
Proposal #4
October 3, 2017
1. Beach passes to non-residents.
a. No sale or distribution of non-resident beach passes, effective immediately.
b. Applicable to the City and Collier County.
2. Interlocal Agreement
Continue with all provisions of the existing Interlocal Agreement until expiration
on September 30, 2018.
11.E.5
Packet Pg. 177 Attachment: City Proposal #4 Beach Parking-Recreation 10-2-17 (3981 : City of Naples Interlocal Agreement)
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Packet Pg. 178 Attachment: Interlocal Agreement 2008 (3981 : City of Naples Interlocal Agreement)
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Packet Pg. 179 Attachment: Interlocal Agreement 2008 (3981 : City of Naples Interlocal Agreement)
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Packet Pg. 180 Attachment: Interlocal Agreement 2008 (3981 : City of Naples Interlocal Agreement)