Okaloosa County Tourist Development Council — May 30, 2013 — Minutes — reading text

Okaloosa County Tourist Development Department 1540 Miracle Strip Parkway Ft. Walton Beach, FL 32548 Regular Meeting http://www.okaloosafl.com ~ Minutes ~ Thursday, June 27, 2013 2:00 PM Emerald Coast Convention Center Tourist Development Committee Members Attendee Name Title Status Arrived Departed Dale E. Peterson Chairman Present - - Thomas Rice Vice-Chairman Present - - Michael Bass Resigned - - - Daniel Empson Present - - Thom Gossom Present - - Joe Guidry Present - - Tuffy Dixon Destin Councilman Present - - Charles Rigdon FWB Councilman Present - - Kelly Windes Commissioner District 5 Present - - Daniel O'Byrne Director Present - - Lynn Hoshihara TDD Attorney Present - - Michelle Clarke & Peter Mayer Advertising Present - - Ellen Kempner I. Pledge of Allegiance & Welcome (Dale Peterson) Mr. Rice brought the meeting to order at 2:02 pm with the Pledge of Allegiance. II. Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale Peterson) Motion to Approve May 30, 2013 Meeting Minutes RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Dixon SECONDER: Rice AYES: Empson, Gossom, Guidry, Rigdon, Windes, Peterson III. Consider proposed updates to the Okaloosa County Tourist Development Plan presented in the form of an Ordinance pursuant to Section 125.0104 Florida Statutes. (Dan O’Byrne/Lynn Hoshihara) Mr. O’Byrne reviewed the purpose of the Okaloosa County Tourist Development Plan. He continued by discussing specific edits recently made to the plan’s language. Mr. Guidry asked why Lifeguard services are in the 2nd penny which pays for services, when lifeguards are a beach related expense. Mr. O’Byrne explained it is the lifeguard services that allow the lifeguards to be paid from the 2nd Penny. Okaloosa County Tourist Development Department Page 1 Printed 6/27/2013 Regular Meeting Minutes June 27, 2013 Motion to Accept the Proposed Changes to the Okaloosa County Tourist Development Plan and Recommend Approval to the Board of County Commissioners RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Dixon SECONDER: Rice AYES: Empson, Gossom, Guidry, Rigdon, Windes, Peterson IV. Consider Proposed 2013/2014 Tourist Development Department Budget Pursuant to Section D.200 BUDGET ADOPTION of the TDD Operations & Procedures Manual (Dan O’Byrne/Lynn Hoshihara) Mr. O’Byrne stated he would like to review the proposed budget, penny by penny, with the council in this public forum for approval. He stated he felt it was important to also review the process which should be followed to ensure the TDC is utilized in the manner it was intended. He stressed the Council is a recommendation board. The intent is for them to form recommendations which he will take back to the county administrator, who will in turn take the recommendation to the Board of County Commissioners. Mr. O’Byrne felt it extremely important to do so in a public forum. Mr. O’Byrne continued by reviewing each penny, line-by-line, for the Council’s approval. During the review of the 1st Penny, Mr. Dixon asked what the administration charges listed are. Mr. O’Byrne answered they are the charges paid to the Clerk for their services. Mr. O’Byrne stressed there is a reserve in each penny. Mr. Gossom questioned if the reserve in each penny could be used only in that penny. Mr. O’Byrne answered that was correct, they must be used based on the restrictions from the penny it belongs. Mr. Dixon asked if it was possible to borrow from one penny to another. Mr. O’Byrne responded it could not. The only way that would be possible would if the board was petitioned and approved the request, agreed Mr. O’Byrne and Ms. Hoshihara. Mr. O’Byrne stated the budget is a public document and anyone may view it if they wish to. Mr. Dixon questioned the 3rd Penny line item, Accounting and Auditing. He inquired the amount listed, remarking the amount seemed a low figure for such a service. Mr. Bill Leaman explained the amount covered the day or two outside accountants come to audit the center’s event revenue. Okaloosa County Tourist Development Department Page 2 Printed 6/28/2013 Regular Meeting Minutes June 27, 2013 Mr. Dixon also questioned why lifeguard pay is listed in the 3rd Penny as well as the 2nd Penny. Mr. O’Byrne explained they used to be paid from the 3rd Penny. The amount is listed at zero in the 3rd, and they are now paid out of the 2nd Penny. Mr. Rigdon identified the need for a headquarters hotel on or close to the convention center, in order to further the growth of the convention center. Mr. Dixon and Peterson both agreed. Mr. O’Byrne asked if the Council would be interested in procuring a consultant to investigate the possibilities. Motion to Recommend Hiring a Consultant to Investigate Possibilities for Convention Center Hotel RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Rigdon SECONDER: Dixon AYES: Empson, Gossom, Guidry, Windes, Rice, Peterson Continuing on in the review of the budget, Mr. Dixon questioned the fees paid to the chambers of commerce. Mr. O’Byrne answered it is paid as a service fee for marketing the destination to the Fort Walton Beach and Destin Chambers. Mr. Guidry queried Mr. O’Byrne on viewing last year’s budgeted items. Mr. Dixon echoed requesting a side-by-side view. Mr. O’Byrne responded he would work on the request. Council members commented that the summer numbers in their industries has been flat. Mr. Guidry questioned why the money spent on advertising for summer is so small in relation to the other seasons. Mr. O’Byrne commented the information received showed those season’s tourism numbers were lower so the money was allocated there. He went on to say money could be reallocated, if need be. He explained the budget is in place as a starting point and can be reworked. Mr. Guidry continued by stating projections for tourism this fall are said to be low/flat. He would like to investigate the potential for working this issue preemptively with marketing dollars. Mr. Guidry went on to question why the reserves in each penny are different. Mr. O’Byrne and members answered that it is because of the different restrictions placed on each penny. Commissioner Windes echoed the earlier request for a side-by-side view of the budget, as well as two-weeks prior to the meeting/approval to review the budget. Okaloosa County Tourist Development Department Page 3 Printed 6/28/2013 Regular Meeting Minutes June 27, 2013 Motion to Recommend Budget and Staff Recommendations as Proposed to the County Commission for Approval RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Dixon SECONDER: Ridgon AYES: Empson, Gossom, Guidry, Windes, Rice, Peterson V. Update on vacant TDC lodging industry seat (Lynn Hoshihara) Ms. Hoshihara briefed the TDC on the TDC Selection Committee’s vote; which occurred today at 1 p.m. Ms. Rachel Joyce was voted as the recommendation to the empty seat, by a 2 to 1 vote over Mr. Damon Becnel. She stated that the selection Committee’s recommendation will be presented to the Board of County Commissioners in July. Mr. O’Byrne stated he believes the individual will be seated by the July TDC meeting. VI. Destination Advertising Update (Peter Mayer Advertising) a. Shoulder Season Advertising Campaign Recap and Results Ms. Michelle Clarke, with Peter Mayer Advertising, provided the Spring Shoulder Season Campaign results. The season was March 19 through May 27. She identified a 22% lift in hotel sales year-over-year. The total hotel sales during this season were $4,128,858. b. Summer Season Campaign Update The timeframe of this campaign is June 17-Aug 31. The campaign uses online banners on RGM Alliance Network, TravelZoo, TripAdvisor, and Virtual Tourist. Different banners to appeal to different audiences, families, singles, and more. At this time, the Council revisited the need to raise the budget for the fall season from $100,000 to $300,000. Motion to Recommend Using $200,000 from 5th Penny Reserves for a Shoulder Season Campaign Budget Increase from $100,000 to $300,000 RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Guidry SECONDER: Dixon AYES: Empson,