Okaloosa County BOCC — November 20, 2014 — VII.b. Local Event Funding — reading text

TOURIST DEVELOPMENT DEPARTMENT MEMORANDUM DATE: November 20, 2014 TO: Tourist Development Council FROM: Ed Schroeder, Tourist Development Department Director SUBJECT: Local Event Marketing Funding Background Section Three of the Tourist Development Department Operations and Procedures Manual provides for special event and sponsorship funding to increase awareness of the Emerald Coast and drive room occupancy, particularly during low or shoulder seasons. Discussion A draft policy revision has been prepared for TDC review and discussion. The purpose of the revision is to clarify authorized uses of funding and the payment process, integrate the application process into the budget cycle, and provide for a point-based funding methodology. TDC Recommendation to BCC Approve the Local Event Marketing Funding policy as presented.  SECTION THREE: LOCAL EVENT MARKETING FUNDING ANNUAL APPLICATION DEADLINE: MAY 1 F.100 PURPOSE The goal of the Tourist Development Department’s Local Event Marketing Funding program is to increase out-of-market awareness of the Emerald Coast as a tourist destination and to drive lodging room occupancy in the sub-county taxing district by funding the marketing and promotional efforts of local event organizers. As used for purposes of this Section: “Event” means festival, sports event, performance, concert, meeting, conference, or other happening. "Out-of-Market" means outside of Santa Rosa, Okaloosa, and Walton counties to ensure that funds will be used to attract overnight visitors to the sub-county taxing district. F.200 AUTHORIZATION The Tourist Development Department will set aside a portion of the overall annual budget as a budgeted line item to fund local event marketing applications approved as part of the County’s annual budget process. When funding is approved, it will be to promote and attract tourism through marketing, advertising, and/or promotional activities and not to support administrative costs of the event itself. Examples of prohibited administrative costs include, but are not limited to, event personnel, management, and operations, facility rental, food and beverage, prizes and giveaways, and marketing and promotional items distributed at the event. F.300 FUNDING GUIDELINES 1) Requirements for Local Event Funding a. The Event must be open to the public. b. The Event must have as one of its main purposes the attraction of overnight visitors to the sub-county taxing district. c. The Okaloosa County Tourist Development Department’s “Emerald Coast” logo and/or web link, shown below and provided in electronic format at the time of funding status notification, must appear in Event marketing materials (printed, audio, broadcast, online) and may not be altered in any way. Broadcast advertisements may include the tag line “Sponsored in part by the Emerald Coast Convention and Visitors Bureau” in lieu of mentioning the web address. or www.emeraldcoastfl.com Any request for a waiver of the logo or web link requirement must be documented next to the relevant line item in the "Authorized Marketing Activities Requested for Funding" section of the application and shall be subject to County approval. 1 BCC Adopted xx-xx-2014  Funding recipients shall work with Tourist Development Department staff to enhance joint attendance stimulation outreach efforts. Such efforts include, but are not limited to, social media, public relations and publicity initiatives, webpage links and landing pages, lodging facility reservation channels, and joint photograph and video. 2) Authorized Uses of Local Event Funding In general, marketing and promotional efforts of Event organizers will be substantiated by proof of payment to third-party vendors. However, payment may be made by the County directly to the vendor providing the Event’s marketing/advertising rather than on a reimbursement basis to the Event organizer. Any requests for such a payment arrangement must be documented next to the relevant line item in the "Authorized Marketing Activities Requested for Funding" section of the application and shall be subject to County approval. Furthermore, the Tourist Development Department recognizes that there is definitive value of certain marketing and promotional exposure for which the Event organizer does not incur an actual cost in attracting overnight visitors to the sub-county taxing district. If an actual cost is not incurred (e.g. website impressions) or the reimbursable expense is negligible (e.g. phone sales calls), computation of the marketing value of the activity must be documented next to the relevant line item in the "Authorized Marketing Activities Requested for Funding" section of the application and shall be subject to County approval. a. Print – May include production, talent fees, design, creative, and media costs. Examples of supporting documentation may include insertion order, print tear-sheet, invoice, and canceled check or other proof of payment. b. Online – May include production, talent fees, design, creative, and media costs. Examples of supporting documentation may include insertion order, banner ad screen shot, invoice, and canceled check or other proof of payment. c. Television and Radio – May include production, talent fees, design, creative, and media costs. Examples of supporting documentation may include insertion order, DVD or CD ad copy, run schedule, station affidavit, invoice, and canceled check or other proof of payment. d. Direct Mail – May include production, design, creative, printing, and distribution. Examples of supporting documentation may include printing orders, product sample, postage receipt, invoice, and canceled check or proof of payment. e. Website and Social Media – May include website design, social media postings, online engagement activities, and search engine optimization. Examples of supporting documentation may include web-based screen shot, website analytics report or other web-based tracking, invoice, and canceled check or proof of payment. f. Direct Sales – May include phone calls, personal distribution of fliers, emails, and industry show attendance. Examples of supporting documentation may include phone record, proof of industry show registration, contact list, or other proof of performance, invoice, and canceled check or proof of payment. 2 BCC Adopted xx-xx-2014  g. Concert and Performance Fees – May include a booking fee to bring an entertainer or headliner to the area. Examples of supporting documentation may include a contract or agreement, invoice, and canceled check or proof of payment. h. Other advertising and promotional activities consistent with Florida Statutes may be considered. 3) Funding Criteria Applications are awarded points based on three criteria. As noted on the application, points awarded in categories denoted with an asterisk “*” must be substantiated with the Payment Request. Failure to do so will result in points being deducted from the total application points and may result in a lower funding tier for payment after the event. • Seasonality • Event Management • Room Nights 4) Funding Levels a) Tier 1 – up to $10,000 per Event (15 points minimum) • No room nights minimum b) Tier 2 – up to $20,000 per Event (25 points minimum) • No room nights minimum c) Tier 3 – up to $50,000 per Event (65 points minimum) • 5,000 room nights minimum • Ticket sales/Event registration tied to room nights • Verification of 100% of lodging nights reported on Payment Request through lodging partner reports, ticket sales data, or registration roster 5) Application Process a) Applications are due by May 1 to be considered for the upcoming fiscal year budget. For example, applications for events to occur October 1, 2015 through September 30, 2016 are due no later than May 1, 2015. b) An exception to the May 1 application deadline may be granted for new, previously unfunded events upon a recommendation of the Tourist Development Council and approval by the Board of County Commissioners. 3 BCC Adopted xx-xx-2014  c) Applications received by May 1 shall be reviewed by Tourist Development Department staff and awarded points based on the applicant's response to each question. Applications are funded to the extent budget funds are available for appropriation for this purpose. d) Applications and their proposed funding shall be presented to the Tourist Development Council for consideration during its May budget meeting. e) The recommended budget shall be presented to the Board of County Commissioners in August. f) Upon final adoption of the annual budget by the Board of County Commissioners in mid-September, the Tourist Development Department Director may execute the approved applications. g) Applicants shall be notified of their funding status in mid to late September. h) If payment by the County directly to the vendor providing an Event’s marketing/advertising is approved for an applicant, a purchase order shall be issued for that marketing/advertising activity. The purchase order number shall be noted next to the relevant line item on the Application. 6) Payment Request Process a) Payment may only be requested after the Event has occurred. No Payment Request forms will be processed in advance of the Event. b) Payment Requests are due by September 30. Funding lapses at fiscal year end (September 30) and no payments will be made thereafter, except for events conducted in September. For those events occurring in September, the Payment Request must be received no later than thirty (30) calendar days after the end date of the Event. c) Payments are generally on a reimbursement basis. Copies of invoices, proof of payment, and proof of performance for approved promotional and marketing activities must accompany the applicant’s invoice and Payment Request. d) If payment by the County directly to the vendor providing an Event’s marketing/advertising is approved for an applicant, the purchase order number must be documented next to the relevant line item on the Payment Request. e) If an actual cost is not incurred (e.g. website impressions) or the reimbursable expense is negligible (e.g. phone sales calls), computation of the marketing value of the activity must be documented next to the relevant line item on the Payment Request in the same manner as computed on the Application. f) The Tourist Development Department recognizes that line item quantities and dollar amounts reported on the Payment Request may vary from line item quantities and dollar amounts estimated on the Application. While variances in line item quantities and dollar amounts are acceptable, the total amount requested for payment on the Payment Request may not exceed the total amount approved on the Application. 4 BCC Adopted xx-xx-2014 g) If an event is cancelled due to force majeure, promotional and marketing activities may remain eligible for payment contingent upon