Okaloosa County BOCC — September 16, 2014 — reading text

Ed Schroeder SUBJECT: PM TO 148 FY15 SMP Leisure Broadcast Packages Pass-Through Costs DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: Request approval for Chairman to sign Task Order 148 “FY15 SMP Leisure Broadcast Packages Pass-Through Costs”, contract C12-2007-TDC Peter A Mayer Advertising, in the amount of $546,475. BACKGROUND: The Board approved the FY 2014-2015 Strategic Marketing Plan on August 19, 2014, which included a line item for Media Campaign in the amount of $1,914,775. Task Order 148 authorizes cable and radio broadcast media packages targeting leisure travelers to run in various outlets. Broadcast packages negotiated by the agency may include email blasts, online banners, print, and/or other non-broadcast advertising components. The actual broadcasters for National Cable, Spot Market Radio, and Radio Promotional Costs will not be known until after the agency finalizes negotiations. Sole source and conflict of interest forms have been provided for all potential vendors. OPTIONS: Approve or Disapprove RECOMMENDATION: Approve Peter Mayer task order 148 “FY15 SMP Leisure Broadcast Packages Pass-Through Costs” in the amount of $546,475. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 616 Packet Pg. 617 Packet Pg. 618 Packet Pg. 619 Packet Pg. 620 Packet Pg. 621 Packet Pg. 622 Packet Pg. 623 Packet Pg. 624 Packet Pg. 625 Packet Pg. 626 Packet Pg. 627 Packet Pg. 628 Packet Pg. 629 Packet Pg. 630 Packet Pg. 631 Packet Pg. 632 Packet Pg. 633 Packet Pg. 634 Packet Pg. 635 Packet Pg. 636 Packet Pg. 637 Packet Pg. 638 Packet Pg. 639 Packet Pg. 640 Packet Pg. 641 Packet Pg. 642 Packet Pg. 643 Packet Pg. 644 Packet Pg. 645 Packet Pg. 646 Packet Pg. 647 Packet Pg. 648 Packet Pg. 649 Packet Pg. 650 Packet Pg. 651 Packet Pg. 652 Packet Pg. 653 Packet Pg. 654 Packet Pg. 655 Packet Pg. 656 Packet Pg. 657 Packet Pg. 658 Packet Pg. 659 Packet Pg. 660 Packet Pg. 661 Packet Pg. 662  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 16, 2014 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: Special Event Funding Request - Destin Seafood Festival DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: Request approval to accept the Destin Seafood Festival’s 2014 Special Event and Sponsorship Funding Application. BACKGROUND: Pursuant to the TDD Operations & Procedures Manual, special event and sponsorship funding applications shall be submitted no later than sixty (60) days prior to the start of the Event. The Destin Seafood Festival’s application was not submitted within the requisite timeframe prior to the event’s October 3, 2014 start date. The Destin Seafood Festival is a signature event for the area and drives incremental room occupancy during the fall shoulder season. The TDC unanimously recommended to allow an exception to the application deadline at its August 28 meeting. Staff respectfully requests Board approval to accept the application. If accepted, the application will be reviewed and approved pursuant to the TDD Operations & Procedures Manual. OPTIONS: Approve or Disapprove RECOMMENDATION: Accept the Destin Seafood Festival’s 2014 Special Event and Sponsorship Funding Application. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 663 Packet Pg. 664 Packet Pg. 665 Packet Pg. 666 Packet Pg. 667 Packet Pg. 668 Packet Pg. 669 Packet Pg. 670 Packet Pg. 671  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 16, 2014 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: Tourist Development Quarterly Update DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: As required by Ordinance 12-21, the Board of County Commissioners (BCC) shall receive, at a minimum, quarterly reports on tourism promotion and marketing campaigns. BACKGROUND: Financial and Advertising Agency updates are provided monthly to the TDC. The financial update aggregates budget to actual information for the tourist development department overall, as well as by categories within each bed tax percentage (the “level of restriction”). Financial information including the quarter ending June 30 would have been provided to the TDC in July, but there was no TDC meeting in July. To provide the most up-to- date information to the TDC, data was pulled from the accounting system on August 19. The Tourist Development Council unanimously approved the Financial Update at its August 28 meeting. The agency report summarizes current and upcoming marketing activities, and was presented for informational purposes only to the TDC at its August 28 meeting. OPTIONS: n/a RECOMMENDATION: For informational purposes only; no action required. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 672 Financial Update August 2014 FY 2013-14 AMENDED BUDGET: $36,823,319 Financial data as of 08/19/14 The adopted budget of $33,967,750 has been amended during the year to record BP grant funds for marketing, FDEP grant funds for Okaloosa Island dune restoration, FDOT grant funds for seasonal transit service on Okaloosa Island and Destin, FDEP grant funds for Okaloosa Island dune walkovers, and reserve carryforwards. REVENUE ANALYSIS Reserves are the largest component of budgeted revenues because the budget reflects anticipated revenues as well as current cash on hand. Reserves/cash on hand is a budget “placeholder” and represents the accumulation of unspent prior year bed tax dollars; it’s not an actual source of incoming revenues for the year. Tourist development taxes comprise the largest part of actual annual revenue collections. Each percentage is anticipated to generate $2.4M, for a total of $12M in bed taxes. Lodging establishments th remit bed tax collections to the tax collector by the 20 of each month for the preceding month. The tax th collector reconciles and remits the revenues to the County by the 10 of the following month. Due to the timing of this process, $8.4M in actual revenue represents collections through June. Based on these receipts, tourist development tax revenues are on track to generate $13.9M this year, which is $1.9M or 16.2% more than budgeted and $415K or 3.1% more than prior year collections. August 21, 2014 Packet Tourist Development Department, Okaloosa Pg.FL County, 673 Financial Update – August 2014 EXPENSE ANALYSIS Reserves are the largest component of budgeted expenses because budgeted expenses must equal budgeted revenues. The budgeted use/drawdown of reserves is reflected in the amount by which budgeted reserves expenses are less than budgeted reserves revenues: $21M reserve revenue – $15M reserve expenses = $6M budgeted use/drawdown for capital projects. Each percentage of the bed tax is required to be spent in a certain way per County Ordinance. August 21, 2014 Tourist Development Department, Okaloosa County, FL 2 of 6 Packet Pg. 674 Financial Update – August 2014 EXPENSES BY LEVEL OF TOURIST DEVELOPMENT TAX RESTRICTION FIRST PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • beach park facilities or beach improvements • beach & waterway maintenance, renourishment, restoration, enhancement, access • tourist destination facilities SECOND PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • visitor services, brochure distribution, communication and research • tourist bureau administration • lifeguard services and protection August 21, 2014 Tourist Development Department, Okaloosa County, FL 3 of 6 Packet Pg. 675 Financial Update – August 2014 THIRD PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • operations, maintenance, improvement of Visitor Welcome or Information Centers, Convention Center, and Tourist Destination Facilities • promotion of the Convention Center and Tourist Destination Facilities FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • expansion, renovation, reconstruction of the convention center and outdoor venues August 21, 2014 Tourist Development Department, Okaloosa County, FL 4 of 6 Packet Pg. 676 Financial Update – August 2014 FIFTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • tourism promotion STRATEGIC MARKETING PLAN RevPAR Revenue per available room (RevPAR) is a widely used performance metric in the lodging industry. RevPar is a measurement for a point in time, so it is most appropriately used when comparing equivalent time periods (e.g. February 2014 to February 2013). However, since year-to-year comparison is not possible until twelve months of data are obtained, it is being presented here to establish benchmarks. RevPar = gross monthly receipts divided by days in month divided by number of units (data taken from Tax Collector’s monthly reports) August 21, 2014 Tourist Development Department, Okaloosa County, FL 5 of 6