Agenda 10/27/2009 Item #10AAgenda Item No. 10A
October 27, 2009
Page 1 of 7
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners reviews the TDC
Subcommittee recommendations as approved by the Tourist Development
Council and provides direction to the County Manager or his designee for further
action including the authorization to process all necessary budget amendments
covering direction that involves the movement or use of TDC funds.
OBJECTIVE: Review the TDC Recommendations and direct the County Manager or
his designee for further action.
CONSIDERATIONS: A Sub Committee of the Tourist Development Council (TDC) was
appointed on March 23, 2009 by Chairman Fiala and held nine publically noticed
meetings - April 16, May 1 & 5, June 1 & 15, July 13 & 20, August 3 & 10, 2009.
The members of the Sub Committee included Murray Hendel, Chairman, Clark Hill, GM
Naples Hilton, Susan Becker, Tourism Concierge and Bob Miller, Everglades City
restaurateur.
At the Sub Committee's final meeting on August 10, the three members present (Mr.
Miller was absent) agreed to present their recommendations to the full TDC on August
24. The TDC then reviewed the recommendations and voted to recommend the
following to the County Commission:
1. The Funding of County Museums Operating Expenses by Tourist Tax Funds
should be phased out over a 3-year period beginning in FY 11 and ending in FY
13, reducing funding by 1/3 of the total County Museums operating budget each
year. TDC Vote 7-1.
2. The interest earned on Tourist Tax Funds should remain within those respective
funds (follow the principal) and not re-directed to the General Fund (001). Vote 8-
0.
3. The $500,000 annual set aside by County policy for catastrophe reserves from
Fund (195) should be redirected to Fund 184 for destination marketing -for a
period of two years in the amount of $500,000 for each of the next two fiscal
years for a total of $1 million. It was further clarified that these funds would not be
a loan, but a redirection for two years. Vote 6-2.
4. The Collier County Tax Collector's Office or County Code Enforcement should
dedicate a person, (employee or outside individual or organization) to be solely
responsible for collecting unpaid Tourist Development Taxes due on short term
rentals of 6 months or less. Vote 8-0.
Agenda Item No. 10A
October 27, 2009
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5. Support a Class Action Lawsuit if agreed to by the Collier County Commission to
collect the accurate amount of tourist development tax due the County for online
bookers of hotel rooms such as Expedia, Travelocity, Hotels.com and others.
Currently these companies are charging the consumer a service fee based on
the net amount of the transaction, rather than the full consideration. This fee may
or may not cover the correct amount of taxes due. Vote 8 -0.
6. The Convention and Visitors Bureau (CVB) publication called "Florida's Last
Paradise" and the Greater Naples Chamber of Commerce publication called
"Naples on the Gulf' should be combined into one official tourism publication for
the entire destination. Vote 7 -0 (seven members present; one member excused).
7. Create a new position called "Information Center Coordinator" or similar title to be
under the direction of the Greater Naples Chamber of Commerce and funded
jointly by the Chamber and the CVB to coordinate literature, training and
research for all area visitor centers in Naples, Marco Island, Everglades City and
Immokalee. Vote 7 -0.
8. Redirect $500,000 of the $2 Million per year currently allocated by County Policy
from Fund 195 for Major Beach Renourishment Reserves be redirected to Fund
184 for destination marketing for a period of two years. It was further clarified that
this would not be a loan of funds, but a redirection of funds for marketing for two
years. Vote 4 -3.
9. Recommend to not increase the Tourist Development Tax Rate at this time given
the current economic recession. Vote 6 -1.
10.$750,000 from Emergency Tourism Advertising Fund (196), supplemented by
$350,000 in excess unobligated fund balance from year ending FY 2009 within
Marketing Fund (184) should be approved for use in the late spring and through
the summer to fund the continuance of the destination marketing program from
mid January through August 2010. This plan would replicate the highly
successful marketing campaign of 2009. Vote 7 -0.
In a letter dated August 21, 2009, The Naples City. Council has asked "that the Board of
County Commissioners reject the recommendations of the TDC subcommittee to divert
beach renourishment funds for tourism marketing and promotion:"
In a letter dated September 25, 2009, The Marco Island City Council requested "that the
County Commissioners safeguard the integrity of the Emergency Beach Renourishiment
Reserves on behalf of our constituency."
FISCAL IMPACT: Regarding TDC Subcommittee recommendation number 2, note that
interest is following the principal pursuant to Board direction and interest has been
posted to TDC funds since July 2009. Assuming the Board concurs with
recommendation number 3 and 10 under Considerations, a budget amendment totaling
Agenda Item No. 10A
October 27, 2009
Page 3 of 7
$1,000,000 will be necessary re- directing budget in FY 2010 from Catastrophe and
Beach Renourishment reserves within Fund (195) to Marketing Fund (184) increasing
the destination marketing appropriation. The fiscal impact associated with other
recommendations contained within this report is uncertain and will require time to
process and implement — if direction is provided. However, if TDC funds are not
earmarked for County Museum operations, General Fund (001) revenues will be
necessary to cover expected budget shortfalls.
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management
Plan as a result of this action.
COUNTY ATTORNEY FINDING: The TDC recommendations are in compliance with
section 125.0104, Florida Statutes, Tourist Development Tax. Several
recommendations above (1, 3, 8, and 9) would require an amendment to the Tourist
Development Tax Ordinance which requires a super majority vote (majority plus one).
This item is legally sufficient for Board action and direction. -- CMG
ADVISORY BOARD RECOMMENDATIONS: The Coastal Advisory Committee (CAC)
met on August 13, 2009 and reviewed the Sub Committee recommendations related to
the $500,000 per year redirection from the catastrophe set asides and major beach
renourishment reserve from Fund 195. The CAC voted 6 -2 to oppose the redirection of
both beach renourishment reserve fund recommendations.
The TDC reviewed the Sub Committee recommendations on August 24, 2009 and
voted on each item as indicated above.
RECOMMENDATION: That the Board of County Commissioners reviews the
recommendations from the TDC Sub Committee as approved by the Tourist
Development Council and provide direction to the County Manager or his designee for
further action including authorization to process all necessary budget amendments
covering direction that involves the movement or use of TDC funds.
SUBMITTED BY: Jack Wert, Tourism Director
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Agenda Item No. 10A
October 27, 2009
Page 4 of 7
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BOARD OF COUNTY COMMISSIONERS
Item Number:
10A
Item Summary:
This item to be heard at 10:30 a.m. Recommendation that the Board of County
Commissioners reviews the TDC Subcommittee recommendations as approved by the
Tourist Development Council and provides direction to the County Manager or his designee
for further action including the authorization to process all necessary budget amendments
covering direction that involves the movement or use of TDC funds. (Jack Wert, Tourism
Director)
Meeting Date:
10/27/2009 9:00:00 AM
Prepared By
Jack Wert
Tourism Director Date
County Manager's Office
Tourism 9116/2009 4:27:37 PM
Approved By
Jack Wert
Tourism Director Date
County Manager's Office
Tourism 9/1612009 4:50 PM
Approved By
Colleen Greene
Assistant County Attorner Date
County Attorney
County Attorney Office 911712009 10:32 AM
Approved By
OMB Coordinator
OMB Coordinator Date
County Manager's Office
Office of Management & Budget 911812009 10:40 AM
Approved By
Jeff Klatzkow
County Attorney Date
County Attorney
County Attorney Office 9/22/2009 3:52 PM
Approved By
Mark Isackson
Budget Analyst Date
County Manager's Office
Office of Management & Budget 1011912009 5:16 PM
Approved By
Leo E. Ochs, Jr.
Deputy County Manager Date
Board of County
County Manager's Office 10/20/2009 11:17 AM
Commissioners
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Agenda Item No. 10A
October 27, 2009
Page 5 of 7
Cif-Y S➢7t IM'&TUO 131&nd
CAT 4
September 25, 2009
Honorable Donna Fiala, Chairman
Board of Collier County Commissioners
3301 E. Tamiami Trail
Naples, FL 34112
Dear Chairman Fiala:
On behalf of the Marco Island City Council, I am writing to express our concern
regarding the Tourist Development Council's (TDC) recommendation to redirect
$500,000 of Emergency Beach Re- nourishment Reserves toward tourism
marketing.
As you are probably aware, your coastal zone management staff, the Collier
County Coastal Advisory Committee, and the Marco Island Beach Advisory
Committee are all strongly opposed to the removal of any funds from emergency
reserves, and rightfully so.
As the engine that drives our economy, the beaches are critical to every aspect
of our community. We believe that the reduction of critical emergency reserves
specifically set aside to repair eroded beaches is not the solution to the need for
funding of additional tourism marketing.
We respectfully request that the Board of County Commissioners safeguard the
integrity of the Emergency Beach Re- nourishment Reserves on behalf of our
constituency.
Sincerely,
Robert J. Popoff
Council Chairman
BILL BARNETT
MAYOR
August 21, 2009
Agenda Itern No. 10A
October 27, 2009
Page 6 of 7
Honorable Chairman and Board of County Commissioners
Collier County Government .CoTpfex - -. --
3301 East Tamiami Trail
Naples, Florida 34112
Re: Opposition t" Tourisf-Development Council subcommittee
recomMen, ion to modify beach funding for tourism
promotlon:>
Dear Chairman FWa and Board of. Coy �tnissioners:.
1 R t 4 L �r�Si
The Naples�City: oil iii 1#�t10�1;i olhrli>e „�f the
4
Tourist Devi opment CouncU"(tDC haolpdsti thst beach
renourishment funds should ado .diverted 6T
tourism marketing and promotion. We believe the specific
recommendations provide that Collier County Fund 195 be
diverted to Fund 184.
We understand that the TDC subcommittee recommendations
were presented to the Collier County Coastal Advisory
Committee. The recommendations were considered and by a 6-2
vote they opposed the recommendation to divert beach
renourishment funds.
735 EIGHTH STREET SOUTH • NAPLES, FLORIDA 34102 -6796
TELEPHONE (239) 213 -10(X) FAX(239)213-1010 CELL 239) 777 -7952
EMAIL: MayorNaple0dlaolxom HOME FAX (239) 417 -5883
Agenda Item No. 10A
October 27, 2009
Page 7 of 7
Honorable Chairman and Board of County Commissioners
August 21, 2009
Page Two
At the request of the Naples City Council, 1 respectfully ask that
the Board of County Commissioners reject the recommendations
of the TDC subcommittee to divert beach renourishment funds
for tourism marketing and promotion. We believe the current
beach funding allocation has helped maintain a healthy,
beautiful, and well - appreciated beach system in Collier County.
This, in turn, has attracted visitors from throughout our nation
and the world, and it has well- served our city and county
residents.
Thank you for considering our request.
Sincerely,
Bill Barnett
Mayor
cc: Naples City Council
James Mudd
Jack Wert
Gary McAlpin