Okaloosa County BOCC — October 7, 2014 — Action Item Printout

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: October 7, 2014 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: Special Event and Sponsorship Funding DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: Request approval of payments for Special Events and Sponsorships in a reasonable and consistent manner for documented marketing activities that do not involve payment to third-party vendors. BACKGROUND: Pursuant to the TDD Operations & Procedures Manual, special event and sponsorship funding is awarded on a value-based or results-based approach: “up to $10 per historically documented or anticipated room night.” However, reimbursement is on a cost-based or efforts-based approach: “Substantiating backup per activity or copy of proof of payments such as cleared check record showing front and back of checks, or detailed credit card receipts. For all media buys please provide tear sheets, copies of advertisements, schedules and signed station affidavits.” There is definitive marketing value in website exposure and the County has historically paid third-party vendors on a per-impression basis as part of the strategic marketing plan. A rate of $0.20 per impression has been consistently used to compensate special events for promoting the Emerald Coast in their online marketing. Examples of events include: Previous Payments Pending Payments Emerald Coast Golf Tour Emerald Coast Volleyball Emerald Coast Sports Camps Destin Seafood Festival Emerald Coast Volleyball In addition to the per-impression methodology discussed above, there is also definitive marketing value in: • Appearing on the first page of Google search results and the County has historically paid third-party vendors for search engine optimization. A rate of $150 per month has been used to compensate Emerald Coast Sports Camps for search engine optimization; and • Telephone sales calls approach to attracting out of state coaches to the area and thereby driving room occupancy. Were it not for these efforts, the event would not have occurred. A rate of $3.50 per out-of-town visitor has been used to compensate Emerald Coast Sports Camps for bringing a sporting event in the Emerald Coast. Although the County has historically reimbursed entities for the marketing activities discussed above, payment has recently been denied for such expenditures. Staff is in the process of revising the Special Event and Sponsorship Funding guidelines to address the inherent policy contradiction between the basis of awarding funding and the basis of payment/reimbursement as well as marketing activities that do not involve payment to third-party vendors. In the meantime, Board approval is requested to recognize that the TDD is essentially contracting with special events for the aforementioned marketing exposure, not all of which may involve payment to third-party vendors. OPTIONS: Approve or Disapprove RECOMMENDATION: Request approval of payments for Special Events and Sponsorships in a reasonable and consistent manner for documented marketing activities that do not involve payment to third-party vendors. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator