Okaloosa County BOCC — May 29, 2014 — Minutes — reading text

a contract with them. 10 MS. HOSHIHARA: If we have I'm not aware of it. 11 MR. SCHROEDER: No. 12 MS. HOSHIHARA: The contract that I worked on with 13 the county was 20 -- was it 2013? 14 MS. DUNWORTH: The current contract that we have 15 with them took effect on October 1st of 2012. It was for 16 a two-year period with the option of two one-year 17 renewals. 18 MR. DIXON: Okay. 19 MS. HOSHIHARA: And that -- 20 MR. DIXON: Worked on something with them. I don't 21 remember what it was. 22 MS. HOSHIHARA: Right. And Destin Fire Control, 23 that was the first year. It was -- what we had to do was 24 apply it retroactively for that previous year since the 25 clerk's office was -- didn't actually have a written Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  98 1 contract and couldn't pay the money. 2 So under that contract the first year we made the 3 commitments, and then moving forward the contract 4 negotiation, the fire control district agreed that the 5 funds that they would perceive would be equal to whatever 6 the county's public safety received during its budget 7 process. 8 MR. DIXON: Okay. I seem to remember a discussion 9 of something like that six months ago, so ... 10 CHAIRMAN PETERSON: The issue is what we -- 11 whatever the county -- are the same? 12 MR. DIXON: Agreed. 13 MR. WINDES: Mr. Chairman? 14 CHAIRMAN PETERSON: Yes. 15 MR. WINDES: Historically, has there been any 16 consideration given to proportionality, or the -- the 17 number of tourists that these lifeguards look after, the 18 miles of beach, all that formula? I mean, isn't there a 19 -- isn't there a little consideration for that, or has it 20 never been the case? 21 CHAIRMAN PETERSON: You know, is -- the only thing 22 I know of that -- because my tenure here is exactly like 23 yours -- but the presentation that we got from Destin did 24 show some numbers that were showing Destin was 25 significantly more tourists. Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  99 1 And actually per tourist, the -- you know, it was, 2 like $.23 a head versus Okaloosa Island was $.60 cents a 3 head, or something of that nature. That's in our book 4 somewhere. Somewhere in the minutes. 5 MR. WINDES: We're getting the smell test here 6 again. Doesn't work for me. I'm one of nine. That 7 doesn't make any sense whatsoever. 8 CHAIRMAN PETERSON: Right. Then it's the same for 9 the -- Destin and for the county. 10 MR. WINDES: Well -- 11 CHAIRMAN PETERSON: I mean, I understand when you 12 put it that way. 13 MR. DIXON: I argued it the whole time. I was fire 14 chief of Destin, and, you know, it was to no avail, 15 but ... 16 MR. WINDES: Well, as far as I'm concerned, I 17 wouldn't have to split hairs and get right down to the 18 percentage point, but, I mean, it ought to be some 19 adjustment made, I would think. 20 MR. DIXON: I agree. I would hate to see the fire 21 district stay where it's at and the county lowered, 22 so ... 23 MR. WINDES: I'm sorry? 24 MR. DIXON: I said I would hate to see the first 25 district stay where it's at and the county's lowered, Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  100 1 though, so -- so just -- just -- I think the fire service 2 in both places, so ... 3 CHAIRMAN PETERSON: You know, in this -- you know, 4 you can almost go back to putting all the beach cleaning 5 and all the bathroom cleaning into one hand or one 6 basket. You could think the same thing here. There may 7 be some economy scale to have one entity cleaning -- I 8 mean, you know, lifeguarding all our beaches. 9 You know, and you might even could go in and have 10 some sort of police jurisdiction that's a liaison that's 11 an ambassador, you know, on the beach. Just -- just, you 12 know, from farther thought. You know, that's 13 tourist-friendly. 14 MR. WINDES: Well, we could open a big can of 15 worms -- 16 MR. DIXON: Yeah. 17 MR. WINDES: It's certainly something to think 18 about for the future, how that might be improved. 19 MR. DIXON: I agree with you a hundred percent. 20 CHAIRMAN PETERSON: All right, then. What are we 21 going to do with this? 22 MR. SCHROEDER: Can -- 23 CHAIRMAN PETERSON: Anybody have a recommendation. 24 MR. SCHROEDER: Really just at this meeting, the -- 25 you've covered all your choices on these items that are Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  101 1 -- that are brought before you. The rest of it is the 2 budget presentation, and then at the end of that we would 3 ask you to vote up or down. 4 MR. GOSSOM: What did you do on the fire district? 5 I'm sorry. 6 MS. HOSHIHARA: I'm sorry? 7 MR. GOSSOM: What did you say? 8 MR. WINDES: We discussed it. 9 MR. GOSSOM: Okay. 10 CHAIRMAN PETERSON: I think right now our hands are 11 bound because of the agreement. 12 MS. HOSHIHARA: The construction -- 13 CHAIRMAN PETERSON: The agreement that, you know, 14 both get the same amount of money. 15 MR. GOSSOM: Okay. 16 MR. SCHROEDER: When those contracts run their 17 course, that can be redesigned. 18 MR. WINDES: And that's two years away. 19 MR. SCHROEDER: Well, there's options for renewals. 20 So we can bring it up -- 21 MS. HOSHIHARA: It expires September 30th of this 22 year. But then the contract says there's an option to 23 renew. But it -- at the end of this year, we can always 24 renegotiate terms. 25 MR. WINDES: How about putting that on your task Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  102 1 list, Ed, look at it when it's time. 2 CHAIRMAN PETERSON: And let's look at if there's a 3 notice, whatever, of how the contract ends, how does that 4 option kick in. 5 MR. SCHROEDER: I'll have that next meeting; does 6 that suffice? 7 MR. WINDES: Whenever you see appropriate. 8 MR. SCHROEDER: Okay. 9 VICE-CHAIRMAN RICE: Where are you getting the at 10 least 7 or 8,000? We've increased film commission; where 11 does that money come from? 12 MR. SCHROEDER: If something else gets cut. I 13 couldn't sit here and tell you where. 14 CHAIRMAN PETERSON: That's why he gets the big 15 bucks. 16 VICE-CHAIRMAN RICE: Okay. So the chamber's going 17 back to -- 18 MR. SCHROEDER: 20,000. 19 VICE-CHAIRMAN RICE: Original 20? 20 MR. DIXON: Ed, make sure that the fire district 21 and the county are notified if this is going to be 22 discussed, and they can at least be here to -- 23 MR. SCHROEDER: (Nodding head affirmatively). 24 MR. DIXON: Thank you. 25 MR. SCHROEDER: You bet. Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  103 1 So now we -- rather than -- the extreme would be go 2 line item per line item. Nobody wants to do that. 3 Interest of time, Charlotte has created a delightful 4 summary. So if you'll look on page 176 she can walk you 5 through the budget summary. And it relates to the bold 6 numbers you'll see in the next 10-15 pages of the actual 7 budget. 8 MS. DUNWORTH: So here we just have a recap of the 9 different various revenue sources as -- by each 10 percentage point. So we can see that we are estimating 11 2.6 million in tourist development tax for each of the 12 five things we have. We have the beach restoration 13 assessment of $350,000 in a separate department, that's 14 the MSBU department; the convention center in the third 15 penny is anticipated to generate about $861,000 in 16 revenue. 17 We have interest in other earnings in each of the 18 pennies dependent upon what their cash balance is. There 19 really should be interest earnings in the third penny, as 20 well. That appears to have been overlooked during this 21 year's budget process when they moved the convention 22 center out of the enterprise fund and into the special 23 revenue fund. That -- those interest earnings appear to 24 have been overlooked at that point. 25 And then we have the anticipated cash balances for Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  104 1 each of those pennies, 10/1 beginning of the fiscal year 2 10/11/15. So we see that we have the overall proposed 3 budget of $34.8 million in revenue. That is balanced 4 with $34.8 million in expenditures, classified by 5 personnel. We have personnel in the first, second, and 6 third pennies. 7 We have operating expenses across all of the 8 pennies, the convention center, the capital improvement 9 penny. That's really just the tax collector's 3% fee. 10 That's not really an operating expense, per se. We have 11 some capital, outlaying capital improvements budgeted in 12 the first four pennies. 13 We have grants and aids in the first penny. That 14 would be the remaining balance of the inner local with 15 Destin for the monitoring associated with the beach 16 restoration. And then we have 520,000 in the second 17 penny for the Destin Fire Control District. Then we have 18 inner fund transfers in the first penny. That's the 19 public works, their beach cleaning activities, as well as 20 the restroom cleaning. 21 And then we also have $520,000 in the second penny 22 for the Okaloosa -- the public safety department due 23 Okaloosa Island's lifeguards. We have the first penny's 24 contribution to the debt service on the MSBU. And then 25 we have the cash balances per the recommended policies Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com  105 1 that the TDC set forth at our May 8th meeting. And then 2 we also have some other cash balance for future capital 3 improvements in the fourth penny. 4 So that's sort of a snapshot of the revenues and 5 expenses by category, as well as percentage. There's 6 further detail in the next page that