Okaloosa County BOCC — November 4, 2012 — TDD Status Report to BCC Dec 18 -2

Special Counsel, Okaloosa County Commissioners Gregory T. Stewart Update to BCC – December 18, 2012 by Dan O’Byrne 1 Previous Recommendations REPORTING AUTHORITY  The Director of the Tourist Development Department will report directly to the County Administrator as any other County Department Head. The Policy adopted by the Board on November 6, 2005 is rescinded. [APPROVED BY THE BOARD MAY 15, 2012]  Improved management continuity and focus on running a department.  Direct accountability.  Day-to-day consistency with county / BCC leadership objectives. 2 Operating Procedures  All contracts and expenditures made by the Director on behalf of the Tourist Development Council will be made in conformity with the County’s Contract, Leases & Non-Grant Agreements, Policies & Procedures and the County’s Purchasing Manual. [APPROVED BY THE BOARD MAY 15, 2012]  The operating policies and procedures of the Tourist Development Council shall be revised to eliminate inconsistent provisions of the County policies. [APPROVED SEPTEMBER 18, 2012]  Extensive revision to tourist development operating policies and procedures manual to incorporate requirements of the County’s Contract, Leases & Non-Grant Agreements, Policies & Procedures and the County’s Purchasing Manual.  Formal presentation to council made on Aug 6, 2012. Council voted to recommended adoption.  Amendments to the Operations & Procedure Manual and TDC Ordinance were adopted on September 18, 2012.  Broaden contract reviews by multiple levels vs. a single person.  Structured financial management at the department level.  Corrections made to inaccuracies.  Action taken on non-conforming items such as leases or unauthorized services. Created review process for special events & sponsorships 3 Operating Procedures continued APPROVAL OF PROMOTIONAL ACTIVITIES Project activities of the Advertising Agencies shall only be allowed utilizing the written task order procedures of the County’s Contract Policy. A written task order will be required for the engagement of any promotional activity or any expenditure.  A task order for services up to $25,000 requires approval by the Department Head (Director) and Purchasing Director.  A task order for services above $25,000 and up to $50,000 approval by the Department Head (Director), Purchasing Director and County Administrator.  A task order for services over $50,000 by the Board of County Commissioners. [APPROVED BY THE BOARD MAY 15, 2012]  Past authorized promotional or advertising activities that are ongoing shall not be allowed to proceed without the issuance of a task order. [APPROVED BY THE BOARD MAY 15, 2012 AND JUNE 5, 2012]  Top to bottom review of existing TDD campaigns. All projects have been vetted with approval, modified to meet standards, or have been cancelled.  Task Order system has been fully implemented. Worked with other departments and agencies to achieve better consistency. Improved level of communication, presentation of specifics to Council –use of IQM2 video meeting and minutes system implemented. Campaign development underway, commenced with hiring of new director August 27, and advertising agency on Dec. 4, 2012. 4 Operating Procedures continued APPROVAL OF PURCHASES No purchases for real or tangible personal property shall be made by the Advertising Agencies, the Tourist Development Council or Director unless written authorization accompanies that request. Such authorizations shall be in advance. The scope of the written authorization will be as follows:  Purchases Acquisitions up to $25,000, approval by the Department Head (Director) and Purchasing Director  Purchases and Acquisitions above $25,000 and up to $50,000 approval by the Department Head (Director), Purchasing Director and County Administrator.  Purchases and Acquisitions over $50,000 by the Board of County Commissioners. [APPROVED BY THE BOARD MAY 15, 2012]  The Advertising Agencies will be required to confirm in writing their understanding and acceptance of these requirements. [APPROVED BY THE BOARD MAY 15, 2012 – both Zimmerman and Lewis complied]  Task Order procedure has been implemented and consistently applied.  Greater detail provided to Council – particularly expense of projects. 5 Additional Recommendations- Operating Procedures  Advancement of funds should be limited and additional guidelines and procedures prepared to restrict this activity.  Widespread prepayment for services has been stopped.  Funds being held by agency ($305,484.20) returned.  Limitations on the advancement of funds has been incorporated into both the Operations & Procedures Manual and within the new ad agency contract. 6 Operating Procedures continued DOCUMENTATION  No invoice will be processed through the Clerk’s Office without the executed task order and/or purchase order approved by the respective County officials. No invoice will be approved unless the actual invoice from the vendor accompanies the form.  The County should attempt to make media purchases whereby the vendor is paid directly by the County rather than through the advertising agency.  Operational procedures manual and new ad agency contract agreement mandate the invoice and back up be provided prior to payment. County has the right and ability to direct pay on media buys. 7 Operating Procedures continued PLANNING  Annually, the Director will be required to prepare a detailed Strategic Marketing Plan which will set forth the proposed marketing expenditure for the upcoming fiscal year. That Plan will be reviewed by the TDC and presented to the Board for final approval. Expenditures during the upcoming year shall be in conformity with the Plan. Amendments to the Plan shall be reviewed by the TDC and subject to the Board for final approval.  Establishing a Strategic Marketing Plan is a top priority for new director and advertising agency. 8 Operating Procedures continued DEVELOPMENT OF ADEQUATE STANDARDS  The Tourist Development Department (TDD) shall develop stricter standards for the evaluation of Special Event and sponsorship funding.  The TDD shall prepare detailed rules and restrictions to govern any contest or sweepstakes program.  The payments for the funding of Special Events and sponsorships should be directly to the entity applying for the funding and the payment should not be paid through the advertising agency.  Tourist Development operating standards have been rewritten.  Subjectivity of award levels to special events and sponsorships have been incorporated into the Operations & Procedures Manual to be more objective and will be further refined in the future.  Prerequisites and applied standards from other tourism development groups.  Detailed after action reports and impact calculations will be required. 9 Operating Procedures continued FINANCIAL REPORTING  At a minimum, quarterly expenditure reports shall be provided to the TDC and to the Board for their review. These reports shall reconcile all payments that have been made and provide the extent of funding that remains available.  Council members provided monthly expense reports.  List of all checks written in the past 30 days.  Comparative analysis of outflow to budget timeline.  Improved financial management at the department level. Board to be provided quarterly expenditure report beginning in January. 10 Additional Recommendations ACCREDITATION AND CERTIFICATION  The International Association of Convention and Visitors Bureau has partnered with Purdue University to develop an accreditation program for official destination marketing organizations. The County should explore possible accreditation of the TDD.  There is also a Certified Destination Management Executive Program. The County should encourage any future TDD Director to complete this program.  Director has established a relationship with Florida Association of Destination Marketing Organizations, National Destination Marketing Association International and U.S. Travel Association.  Future peer reviews and industry assessments.  Staff goal to become accredited – both individually and as an organization. 11 Additional Recommendations continued REVIEW OF ADVERTISING CONTRACTS AND CONTRACT EMPLOYEES  The County should review the existing contracts with the advertising agencies and require conformity with the County’s purchasing policies and operations manual.  New contract now conforms with county purchasing requirements and TDC policy manual.  New Ad agency contract as of Dec. 4, 2012.  Uniformity with existing policy – such as per diem limits – have been included in the new Ad Agency contract. 12 Additional Recommendations continued  Current Advertising Agency Contract  Any work performed under New Product Development Services will require a task order, which shall contain a detailed scope of services and an estimated not-to-exceed costs.  No invoice will be approved unless a copy of the actual invoice from the vendor accompanies the invoice and reflects the acquisition of goods/services.  The county has the discretion to pay vendors directly for paid media and pass through costs  Article IV, Section 4.1 of the contract deems Peter Mayer to be an independent contractor, rather than an agent of the county. 13 Additional Recommendations continued ADOPTION OF A CODE OF ETHICS  The County should consider the preparation of an ordinance adopting a Code of Ethics for the Board, County employees and all appointed committees and boards.  Board direction on Aug. 21, 2012 meeting to consider after new commissioners take office. 14 Future Updates  Recovery of expended funds from sale of unauthorized purchases in progress; report in January.  Public Documents available on website on the Tourist Development Department page at www.okaloosafl.com  TDC Policy Manuals  County Ordinance  Penny Distribution  Tourist Tax Collections  Meeting Schedule  TDC members & application 15