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Agenda 11/10/2009 Item #17B Agenda Item No. 178 November 10, 2009 Page 1 of 9 EXECUTIVE SUMMARY /.-.-~ Recommendation that the Board of County Commissioners adopts an Ordinance amending Ordinance No. 92-60, as amended, the Collier County Tourist Development Tax Ordinance, in order to: (1) reallocate $500,000 of the annual funds set aside for Catastrophe Resen'es for tourism destination marketing for a period of one year; and (2) to reallocate $500,000 of the $2,000,000 per year set aside for Major Beach Renourishment Reserves for tourism destination marketing for a period of one year. OBJECTIVE: That the Board of County Commissioners (Board) adopts the attached Ordinance amending Ordinance No. 92-60, as amended, the Collier County Tourist Development Tax Ordinance, in order to: (1) reallocate $500,000 of the annual funds set aside for Catastrophe Reserves for tourism destination marketing for a period of one year; and (2) to reallocate $500,000 of the $2 million per year set aside for Major Beach Renourishment Reserves for tourism destination marketing for a period of one- year. ,- CONSIDERATIONS: At its October 27,2009 regular meeting (Agenda Item lOA), the Board was asked to review Tourist Development Council (TDC) Subcommittee recommendations, as approved by the TDC, and provide direction to the County Manager for further action to include authorization to process all necessary budget amendments should the Board direct the movement or use of TDC funds. Discussion included the Subcommittee's recommendation to annually reallocate $500,000 from both the Catastrophe Reserves and the Major Beach Renourishment Reserves (Fund 195) to the Marketing Fund (Fund 1 84) for use in tourism destination marketing. Although the TDC Subcommittee recommended this reallocation for two years, the Board directed the County Attorney to prepare an amending Ordinance redirecting these funds for a period of one year. LEGAL CONSIDERATIONS: The proposed amending Ordinance was drafted by the County Attorney, duly advertised, and is legally sufficient for Board action. - JAK FISCAL IMP ACT: The estimated cost of advertising the amending Ordinance is $300.00. GROWTH MANAGEMENT IMP ACT: None. RECOMMENDATION: That the Board of County Commissioners adopts the attached Ordinance amending Ordinance No. 92-60, as amended, the Collier County Tourist Development Tax Ordinance, in order to: (l) reallocate $500,000 of the annual funds set aside for Catastrophe Reserves for tourism destination marketing for a period of one year; and (2) to reallocate $500,000 of the $2 million per year set aside fo~ Major Beach Renourishment Reserves for tourism destination marketing for a period of one year. Prepared By: Jeffrey A. Klatzkow, County Attorney ,.-- ..L \,AS'-' ..L V1. ..L Aoenda Item [\]0. 178 fbvember 10, 2009 Page 2 of 9 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 17B Recommendation that the Board of County Commissiollers adopts an Ordinance amending Ordinance No. 92-60, as amended, the Collier County Tourist Development Tax Ol-dinance, in order to: (1) reallocate S500,000 of the annual funds set aside for Catastrophe Reserves for tourism destination marketing for a period of one year; and (2) to reallocate Sl500,OOO of the S2,OOO,OOO per year set aside for Major Beach Renourishment Reserves for tourism destination marketing for a period of one year. Meeting Date: 11/10/20099:00:00 AM Prepared By Jeff Klatzkow County Attorney Date County Attorney County Attorney Office 1012912009 4 :02:02 PM Approved By Jeff f-(latzkow County Attorney Date County Attorney County Attorney Office 10/30'2009 3:17 PM Approved By OM8 Coordinator OMS Coordinator Date County Manager's Office Office of Management & 8udget 11/2/20095:00 PM Approved By Mark Isackson Budget Analyst Date County Manager's Office Office of Management & Budget 11/3120098:41 AM Approved By Leo E. Ochs, Jr. County Manager Date Board of County Commissioners County Manager's Office 11/3/2009 i2:58 PM 10,2:J09 Page 3 of ~3 ORDINANCE NO. 2009-_ 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) REALLOCATE S500,000 OF THE ANNUAL FUNDS SET ASIDE FOR CATASTROPHE RESERVES FOR TOURISM DESTINATION MARKETING FOR A PERIOD OF ONE YEAR; AND (2) TO REALLOCATE S500,000 OF THE $2,000,000 PER YEAR SET ASIDE FOR MAJOR BEACH RENOURISHMENT RESERVES FOR TOURISM DESTINATION MARKETING FOR A PERIOD OF ONE YEAR; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LA \VS 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 and development tax throughout Collier County for the purposes permitted in Section 125.0 I 04, Florida Statutes, as amended; and \VHEREAS, through adoption of Ordinance No. 95-56 and Ordinance No. 2005-43, the Board levied an additional 3rd and 4th percent tourist development tax; and WHEREAS, the Board, by an extraordinary vote, desires to amend the uses of tax revenue and the tourist development plan for a single year only; and WHEREAS, the proposed amendments were presented to and approved by the Collier County Tourist Development Council. ~OW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: AMENDMENT TO SECTION THREE OF ORDINANCE NO. 92-60, AS AMENDED. Section Three is hereby amended by adding new subsections (a)(6) and (a)(7) to read as fo11o,vs: 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: Words Underlined are added; Words &ffi€k-1'fB'BBgl=t are deleted. Page] of3 Agenda Item f'Jo. 178 November 10. 2009 Page 4 of 9 ************** (6) The sum of $500.000 annually allocated for Catastrophe Reserves from County Fund 195 shall be reallocated to Fund 184 to be used for destination marketing for a period of one year from enactment of this amendment, at which time this provision will expire and be of no further force or effect unless further extended bv the Board. (7) Five hundred thousand dollars ($500,000) of the Two million dollars ($2.000.000) that is annually allocated for Maior Beach Renourishment Reserves from Countv Fund 195 shall be reallocated to Fund 184 to be used for destination marketing for a period of one year from enactment of this amendment. at which time this provision will expire and be of no further force or effect unless further extended by the Board. E61ill 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 LA \VS 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. SECTION FOUR: EFFECTIVE DATE. This Ordinance shall be effective upon filing with the Department of State. Words Underlined are added; Words Sffil€k Through are deleted. Page 2 of3 5 of:j PASSED AND DGL Y ADOPTED by a vote of a majority plus one of the Board of County Commissioners of Collier County, Florida, this _day of ,2009. ATTEST: DWIGHT E. BROCK, CLERK BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: , Deputy Clerk By: D01\T}{A FIALA, CHAIRMAN Words Underlined are added; Words &ffitcl<-+ht~ are deleted, Page 3 of3 Agenda Item No. 178 I\~ovember 10, 2009 Page 6 of 9 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- O. 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 r,Jo. 178 r'Jove~lber 10, 2C09 Page 7 of 9 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 Renourishment 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 ~,Jo. 178 '(jovember 10, 2009 Page 8 of 9 $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 t 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 CAG 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 76 uylS1 NOTICE OF INTENT TO CONSIDER ORDINANCE Notice is hereby giveri that on Tues- day. November 10, 2009, in tl1e Board, room, 3rd Floor, Administration Build, Ing. Collier county Government Ceo, ter. 3301 East Tamlaml Tro.i1, Naples, Florida, the Board of County Commis- sioners witl consider the enactment of a County Ordinance. The meeting will commence at 9;00 A.M. The title of the propos..d, Ordinance is astol' lows: ..' '-':"-,-... ',' AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA. AMENDING ORDI, NANCE.NO~ 92-60, AS AMENDED (THE COLLIER COUNTY TOURIST DEVELOP, MENT TAX ORDINANCE) BY AMEND, ING,. . SECTION. THREE , USES OF TAX REVE' NUES; IN ORDER TO: (1) REAllOCATE $ 500,000 OF THE ANNUAL FUNDS SET ASIDE FOR CATASTROPHE RESERVES FOR TOURISM DESTINATION MARKET' ING FOR A PERIOD OF ONE YEAR: AND (2)TO REALLOCA Tf $500,000 OF THE $2 MilLION DOLLARS PER YEAR SET ASIDE FOR MAJOR BEACH RENOUR- ISHMENT RESERVES FOR TOURisM DESTINATION MARKETING FOR A PE- RIOD OF ONE YEAR; PROVIDING FOR CONFLICT A,ND SEVERABILITY; PRO- VIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES: AND PROVIDING FOR AN EFFECTIVE DA TE- Copies of. the proposed Ord inance are on file-witl1.the Clerk to the Board and <Ire available for inspection. All interested' parties are invited to at~ tend and be heard,' N6TE:NIj,:erson~wishing to speak ~7tha~he a8~~~~ j~a~,;;'I~t~~t~~gbSr;;~ to presentation: of the agenda item to be adC1ressetf: Individual speakers ~!'~;beT~~I~~~~~o~ ~t:,':,t~~d~~id~':J to speak. on behalf of an organization or group is encouraged. If recog- nized by the Cr.alrman. a spokesper. son tor a group or organization may be allotted 10 minutes to speak on an item. Persons wishing to have written or graphic materials included i.1 the Board agenda packets must sobmit said material a minimum of 3 weeks r.riorto the respective publiC hearing, t~n3~l tga g:' c~:; ~ ~;ed mb~t~h~a ~ o;'d shall be submitted to the appropriate County staff a minimum of seven ~a!t~,r;lo~s~~ \~e p~~~~~ta~roa~~n5'efo~~ the Board will become a permanent part of the reco,d. ~~[iJ;~sgr th~c8g:;dd~111t~ea:!~a~e~ card of the proceedings pertaining' thereto and therefo'e. may need to ensure that a v~rbatim record of the proceedings IS made. wrnch record Includes the testimony and evidence upon which the appeal IS bas..d. If you are' a' ~~rson with 'a cl'sa'bility who needs any accommodation in or- der to partiCipate in tnis proceeding, you are entitled, at no cost to you, to the provisJon of certain c.ssistar1ce. Please contact tne Collier County Fa- ciljt.les ..Management Df'partm~n~. lo- cated at 3301 Tamiaml Trafl East, Building W. Naples, FloClda 34!12, (239) 252-8380. Assisted listening oe' vices for the heartng impaired are available in the County Commission, ers' Office. BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA DONNA FIALA. CHAIRMAN DWIGHT E. BROCK, CLERK 8y: Martha Vergara. Deputy Clerk (SEAL) October 3D 20M NolP"41::; Item i'~o. 178 10.2009 Page 9 of 9 --rit--r Ordih,C'