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Agenda 02/14/2012 Item #17B2/14/2012 Item 17.B. EXECUTIVE SUMMARY Recommendation to adopt amendments to the Tourist Development Tax Ordinance No. 92- 60, as amended. Amendments include (1) revise language relating to Category B use of funds; (2) delineate the allocation of administrative costs for tourism promotion and beach park facilities and beach improvements; (3) reallocate for a period of one year $100,000 from Fund 193, municipal owned museums and museums owned and operated by not -for- profit organizations open to the public, to Fund 198, County -owned or operated museums to be used for a one -time payment pursuant to a Category C(2) Agreement with the Marco Island Historical Society and approve necessary budget amendments. OBJECTIVE: That the Board of County Commissioners (Board) adopts an ordinance amending the Tourist Development Tax Ordinance No. 92 -60, as amended. CONSIDERATIONS: The TDC reviewed proposed amendments to the Tourist Development Tax Ordinance relating to the administrative costs in support of Fund 194 Tourism Promotion, Fund 195 Beaches, and Fund 183 Beach Park Facilities on September 26, 2011, and October 24, 2011. The Administrative costs for both the Tourism Department and Beaches and Beach Park Facilities remain the same; however the Ordinance amendment is recommended for clarity and consistency. The TDC approved both proposed amendments (8 -0) on October 24, 2011. The Coastal Advisory Committee (CAC) recommended approval on September 8, 2011 (8 -0). Proposed language: 4. Administrative costs. a. Tourism promotion administrative costs shall not exceed 32% of total Category "B" tourist tax revenues each fiscal year and shall be expended from the 23.236% of the two percent tax. b. Project Management, Indirect Overhead, and Program Administration in support of Fund 195 (Beaches) and Fund 183 (Beach Park Facilities) shall not exceed 15% of Category "A" tourist tax revenues. These charges to be split 75% to Fund 195 (Beaches) and 25% to Fund 183 (Beach Park Facilities). During the course of the discussion, one TDC member also suggested a change to the language in Category B. This change was also approved unanimously on October 24, 2011. The proposed change follows: Category B To promote and advertise county tourism within the State of Florida, nationally and internationally, which encourages tourism with an °w,,.,�, e ag season visiter -s to Collier County and to fund convention bureaus, tourist bureaus, tourist information centers and news bureaus as county agencies. If tax revenues are expended for an activity, service, venue or event, the activity, service, venue or event shall have as one of its main Packet Page -2399- 2/14/2012 Item 17.13. purposes the attraction of tourists as evidenced by the promotion of the activity, service, venue or event to tourists. The Board of County Commissioners approved the fourth proposed amendment at their meeting on December 13, 2011. The fourth proposed amendment is included in this Executive Summary for clarity. The advertisement will include all four amendments to save on advertising costs. The fourth amendment is to allow a one -time reallocation of earmarked TDC C -2 funds into the TDC C -1 category. (9) The sum of $100,000 shall be reallocated from Fund 193 Municipal owned museums and Museums owned and operated by not - for - profit organizations open to the public, to Fund 198 County -owned or operated Museums to be used for a one -time payment pursuant to a Category C (2) agreement with Marco Island Historical Society prior to the museum becoming a County owned and operated C (1) museum. This provision will expire and be of no further force or effect upon payment to Marco Island Historical Society. At its January 24, 2012 regular meeting, the Board authorized advertisement of the proposed amending Ordinance. FISCAL IMPACT: The cost to advertise the proposed Ordinance was $280.02 which funds are available from Funds 195 and 194. A budget amendment will be required in order to provide for the payment to the Marco Island Historical Society. GROWTH MANAGEMENT IMPACT: There is no impact on the Growth Management Plan from this action. ADVISORY BOARD RECOMMENDATIONS: Both the Coastal Advisory Committee (CAC) and the Tourist Development Council (TDC) have unanimously recommended the proposed changes to the Ordinance. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, requires super- majority vote by the Board, and is legally sufficient for Board action. — CMG RECOMMENDATION: That the Board of County Commissioners adopts the attached Ordinance amending the Tourist Development Tax Ordinance No. 92 -60, as amended. Amendments include (1) revise language relating to Category B use of funds; (2) delineate the allocation of administrative costs for tourism promotion and beach park facilities and beach improvements; (3) reallocate for a period of one year $100,000 from Fund 193, municipal owned museums and museums owned and operated by not - for - profit organizations open to the public, to Fund 198, County -owned or operated museums to be used for a one -time payment pursuant to a Category C(2) Agreement with the Marco Island Historical Society and approve necessary budget amendments. SUBMITTED BY: Colleen M. Greene, Assistant County Attorney Packet Page -2400- 2/14/2012 Item 17.13. COLLIER COUNTY Board of County Commissioners Item Number: 17. B. Item Summary: Recommendation to adopt amendments to the Tourist Development Tax Ordinance No. 92 -60, as amended. Amendments include (1) revise language relating to Category B use of funds; (2) delineate the allocation of administrative costs for tourism promotion and beach park facilities and beach improvements; (3) reallocate for a period of one year $100,000 from Fund 193, municipal owned museums and museums owned and operated by not - for - profit organizations open to the public, to Fund 198, County -owned or operated museums to be used for a one -time payment pursuant to a Category C(2) Agreement with the Marco Island Historical Society and approve necessary budget amendments. Meeting Date: 2/14/2012 Prepared By Name: GreenKelly Title: Tourist Development Tax Coordinator,Tourism 1/30/2012 4:55:18 PM Submitted by Title: Director - Tourism,Tourism Name: WertJack 1/30/2012 4:55:20 PM Approved By Name: WertJack Title: Director - Tourism,Tourism Date: 1/30/2012 5:05:07 PM Name: GreeneColleen Title: Assistant County Attorney,County Attorney Date: 1/31/2012 11:02:34 AM Name: KlatzkowJeff Title: County Attorney, Packet Page -2401- Date: 2/6/2012 2:51:13 PM Name: FinnEd Title: Senior Budget Analyst, OMB Date: 2/7/2012 4:44:18 PM 2/14/2012 Item 17.13. Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 2/7/2012 5:38:27 PM Packet Page -2402- 2/14/2012 Item 17. B. ORDINANCE NO. 2012 - AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NO. 92 -60, AS AMENDED (THE COLLIER COUNTY TOURIST DEVELOPMENT TAX ORDINANCE) BY AMENDING SECTION THREE — USES OF TAX REVENUES, IN ORDER TO: 1) REVISE LANGUAGE RELATING TO CATEGORY B USE OF FUNDS; 2) DELINEATE THE ALLOCATION OF ADMINISTRATIVE COSTS FOR TOURISM PROMOTION AND BEACH PARK FACILITIES AND BEACH IMPROVEMENTS; AND 3) REALLOCATE FOR A PERIOD OF ONE YEAR 5100,000 FROM FUND 193, MUNICIPAL OWNED MUSEUMS AND MUSEUMS OWNED AND OPERATED BY NOT -FOR- PROFIT ORGANIZATIONS OPEN TO THE PUBLIC, TO FUND 198, COUNTY -OWNED OR OPERATED MUSEUMS TO BE USED FOR A ONE -TIME PAYMENT PURSUANT TO A CATEGORY C (2) AGREEMENT WITH MARCO ISLAND HISTORICAL SOCIETY; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 125.0104, Florida Statutes, provides for the levy of a local option tourist development tax by any county; and WHEREAS, on August 18, 1992, the Board of County Commissioners (Board) adopted Ordinance No. 92 -60, which levied and imposed a 2% tourist development tax throughout Collier County for the purposes permitted in Section 125.0104, Florida Statutes, as amended; and WHEREAS, through adoption of Ordinance No. 95 -56 and Ordinance No. 2005 -43, the Board levied an additional 3rd and 4t` percent tourist development tax; and WHEREAS, the Board subsequently adopted Ordinance No. 2009 -58, Ordinance No. 2010 -44, and Ordinance No. 2011 -02 in order to reallocate or redistribute certain tourist development tax revenues for use in tourism destination marketing or marketing and promotion; and WHEREAS, the Board, by an extraordinary vote, desires to amend Section Three of Ordinance No. 92 -60, as amended, in order to: 1) revise language relating to Category B use of funds; 2) delineate the allocation of administrative costs for tourism promotion and beach park facilities and beach improvements; and 3) reallocate for a period of one year $100,000 to be used for a one -time payment pursuant to a Category C (2) Agreement with Marco Island Historical Society; and Words Underlined are added; Words ;Stmek T*eugh are deleted, Packet Page -2403- 2/14/2012 Item 17.13. WHEREAS, the proposed amendments were presented to and approved by the Collier County Tourist Development Council. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: AMENDMENTS TO SECTION THREE OF ORDINANCE NO. 92 -60, AS AMENDED. Section Three - Uses of Tax Revenues. a) The tax revenues received pursuant to this division shall be used to fund the County Tourist Development Plan, which is hereby amended as follows: (1) The categories of use of the two percent and one percent (3`d percent) and additional one percent (4d` percent) tax revenues by specific project or special use are hereby listed in the order of priority: CATEGORYA - To finance beach park facilities or beach improvement, maintenance, renourishment, restoration and erosion control, including pass and inlet maintenance, shoreline protection, enhancement, cleanup or restoration of inland lakes and rivers to which there is public access as these uses relate to the physical preservation of the beach, shoreline or inland lake or river, Percentage of Net revenue 50% of the 2% tax and 100% of the 1% tax (3rd percent), reduced by the amount required for Category D. CATEGORY B - To promote and advertise county tourism within the State of Florida, nationally and internationally, which encourages tourism iNith an enip as s en off seas,,n visitors to Collier County and to fund convention bureaus, tourist bureaus, tourist information centers and news bureaus as county agencies. if tax revenues are expended for an activity, service, venue or event, the activity, service, venue or event shall have as one of its main purposes the attraction of tourists as evidenced by the promotion of the activity, service, venue or event to tourists. Words Underlined are added; Words Stmek-Thrauo. are deleted. Packet Page -2404- 2/14/2012 Item 17. B. Percentage of Net revenue 23.236% of the 2% tax and 100% of the additional I% tax (4h percent). (3) The additional one percent tax (4th percent) collected pursuant to section TWO (G) shall be used entirely to finance tourism promotion including advertising, public relations, promotion, research and fulfillment. exeeed 32 % finaneed se ely f.,,,,., the 23.236094c , ei4i .n of the 204 +x_ The Disaster Recover Advertising Fund will continue to be financed from the 23.236% of the 2% tax to maintain a maximum level of $1 million. At the end of each fiscal year, any remaining funds in the 23.236% of the 2% tax after fulfillment of the above uses in the 23.236% of the 2% tax will be distributed to Category "B" (Marketing and Promotion). It is the intent of the Board of County Commissioners to maintain this new level of tourism promotion dollars in the future. 4. Administrative costs. a. Tourism promotion administrative costs shall not exceed 32% of the total amount collected each fiscal year for Category `B" revenue. b. Project Management. Indirect Overhead, and Program Administration in support of Fund 195 (Beaches) and Fund 183 (Beach Park Facilities) shall not exceed 15% of Category "A" revenues. These charizes to be split '750/0 to Fund 195 (Beaches) and 25% to Fund 183 (Beach Park Facilities). 4-.5, The revenues to be derived from the tourist development tax may be pledged to secure and liquidate revenue bonds in accordance with the provisions of Section 125.0104, Florida Statutes. Such revenue bonds and revenue refunding bonds may be authorized and issued in such principal amounts, with such interest rates and maturity dates, and subject to such other terms, conditions and covenants as the governing board of Collier County shall provide. This paragraph shall be full and complete authority for accomplishing such purposes, but such authority shall be supplemental and additional to, and not in derogation of, any powers now existing or later conferred under law. 6. The event bonds are issued by Collier County for any of the purposes enumerated by the Tourist Development Plan, the amount of tourist development tax receipts used to pay debt service on such bonds may exceed the percentages provided for the purpose for which such bonds were issued; provided, however, the maximum annual debt service on such bonds, together with any other obligations of Collier County which were issued to finance improvements for the same purpose and which are secured by the tourist development tax, must not exceed the stated percentage of tourist development tax receipts Words Underlined are added, Words S4uek Pffeugh are deleted. Packet Page -2405- 2/14/2012 Item 17.13. provided in the Tourist Development Plan for such purposes, as calculated as of the date of sale of such bonds. For purposes of performing the calculations described in this paragraph, the amount of tourist development tax receipts shall be assumed to be the amount provided as such in Collier County's immediately preceding annual audit, plus, if the levy of such tax was imposed or increased subsequent to the beginning of the period which was audited, an amount equal to the estimate by the County Manager of the moneys the County would have received if the tax imposition or increase had been in effect during the entire audit period. At or prior to the issuance of bonds the County Manager shall provide a certificate as to the findings required in this paragraph, which certificate shall be conclusive as to all matters provided herein. (9) The sum of $1005000 shall be reallocated from Fund 193 Municipal owned museums and Museums owned and operated by not for profit organizations open to the public, to Fund 198 County owned or operated Museums to be used for a one -time payment pursuant to a Category C (2) agreement with Marco Island Historical Society prior to the museum becoming a County owned and operated C (1) museum. This provision will expire and be of no further force or effect upon payment to Marco Island Historical Society. (93 LL01 The above and foregoing tourist development plan may not be substantially amended except by ordinance enacted by an affirmative vote of a majority plus one additional member of the Board of County Commissioners. SECTION TWO: CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION THREE: INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other appropriate word. Words Underlined are added; Words StFuck Thfoulph are deleted. Packet Page -2406- 2/14/2012 Item 17.13. SECTION FOUR: EFFECTIVE DATE. This Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by a vote of a majority plus one of the Board of County Commissioners of Collier County, Florida, this day of , 2012. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA By: Deputy Clerk Approved as to form and legal sufficiency: Colleen M. Greene Assistant County Attorney LIM FRED W. COYLE, CHAIRMAN Words Underlined are added; Words Stra� are deleted. Packet Page -2407- 4 NOTICE OF INTENT TO CONSIDER ORDINANCE Notice *is hereby given that on Tuesday, February 14, 2012, in the Boardroom, 3rd Floor, Administration Building, Collier. County Government Center, 3299 Tamiami Trail East, Naples, Florida, the Board of County_ Commissioners will consider the enactment of a County Ordinance. The meeting will commence at 9:00 A.M. The title of theyroposed Ordinance is as follows: AN ORDINANCE OF, THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE ;NO. 92-60, 'AS AMENDED (THE COLLIER. COUNTY TOURIST DEVELOPMENT TAX ORDINANCE) BY AMENDING SECTION THREE USES OF TAX REVENUES, IN ORDER TO: 1) REVISE LANGUAGE RELATING TO CATEGORY B USE OF FUNDS; 2) DELINEATE THE ALLOCATION OF ADMINISTRATIVE COSTS FOR TOURISM PROMOTION AND BEACH PARK FACILITIES AND BEACH IMPROVEMENTS; AND 3) REALLOCATE FOR A PERIOD OF ONE`YEAR $100,000 FROM FUND 193, MUNICIPAL OWNED MUSEUMS AND MUSEUMS OWNED AND OPERATED BY NOT -FOR- PROFIT ORGANIZATIONS OPEN TO THE PUBLIC, TO FUND 198, COUNTY -OWNED OR OPERATED MUSEUMS TO BE USED FOR A ONE -TIME PAYMENT PURSUANT TO A CATEGORY C (2) AGREEMENT WITH MARCO. ISLAND. HISTORICAL SOCIETY; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. Copies of the proposed Ordinance are on file with the Clerk`to the Board and are available for inspection. All interested parties are invited to attend and be heard. NOTE: All persons wishing to speak on any agenda item must register with the County administrator prior to presentation of the agenda item to be addressed. Individual speakers will be limited to 3 minutes on any item. The'selection of an individual to speak on behalf of an organization or group is encouraged.. If recognized by the Chairman, a spokesperson for a group- or organization may be allotted 10 minutes to speak on an item. Persons wishing to have written or'graphic materials included in the Board agenda packets must submit said, material 'a minimum of 3 weeks prior to the °resppective public hearing. In any case, written' materials intended. to be considered •by the. Board shall be submitted to the appropriate, County staff a minimum of seven days` prior to the public hearing. All material used in presentations before' the $oard will become a permanent part of the record. Any person who decides to appeal a decision of the Board will need a record of the proceedings pertaining thereto and therefore, may need to. ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is based. If you are a person with a disability who needs any accommodation in order tc . participate in this proceeding; you are entitled, at no cost`to you,.to.the provision of certain assistance. Please contact the Collier County Facilities.. Management Department, located at 3335 Tamiami Trail 'East, Suite. -101, Naples, Florida 34112,. (239) 252 -8380. Assisted listening devices for the hearing impaired are available in the County Commissioners' Office, BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA ' FRED COYLE, CHAIRMAN DWIGHT E. BROCK, CLERK By: Ann Jennejohn,DeputyClerk (SEAL) February 1. 2012 No 1g3gRdn . Packet Page -2408-