Okaloosa County BOCC — May 29, 2014 — reading text

1.b explained the value the FWBCC provides to the TDD and presented an overview of what advertising and support costs the Chamber. Minutes Acceptance: Minutes of May 8, 2014 9:00 AM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale Ms. Joyce asked if the Chamber reports online responses and Mr. Corcoran stated he could provide such a report upon request. Mr. Rice asked about cost of membership and Mr. Corcoran provided information on the costs of different memberships, stating the average cost is $295. Mr. Dixon commented that whatever amount Destin Chamber of Commerce is receiving, Fort Walton Beach Chamber of Commerce should receive the same amount. Mr. Rice asked Mr. Corcoran if the FWBCC did not receive any money, what would go away in the relationship with the TDD. Mr. Corcoran replied that it would not change the relationship and they would still promote the community. Mr. Rice asked how many members are in the FWBCC and Mr. Corcoran replied there are 1,031 paid members and 1,800 active members. Commissioner Windes commented that both Chamber presenters stated a very good case for continuing support from the TDC and he recommended an increase. Mr. Rice asked how the Sunshine Law relates to the Chambers receiving this money. Mr. Moody, President & CEO of the Destin Chamber, responded to Mr. Rice’s question and explained the process, provided detailed information of the “open records law,” and stated it is not incumbent upon the organizations that receive the funds. Motion to call the question to fund the Chambers at $30K each annually. RESULT: MOTION APPROVED [7-1] MOVER: Guidry SECONDER: Dixon AYES: Gossom, Rigdon, Windes, Peterson, Joyce NAYES: Rice Motion to Approve an Annual Budget Funding Increase to $30K each for the Greater Fort Walton Beach Chamber of Commerce and the Destin Chamber of Commerce. RESULT: MOTION APPROVED [7-1] MOVER: Guidry SECONDER: Dixon AYES: Gossom, Rigdon, Windes, Peterson, Joyce NAYES: Rice Okaloosa County Tourist Development Department Page 5 of 10 May 8, 2014 Packet Pg. 22  1.b Mr. Rice was concerned the Chambers do not offer non-members any benefits and do not abide by the Sunshine Laws. We are paying them money for them to subsidize their Minutes Acceptance: Minutes of May 8, 2014 9:00 AM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale organizations. They each stated there would be no change in their relationship to the TDC if they received no funding. He added we should hold the Chambers to the same standards as special event applicants. Further discussion included comments from Mr. Dixon and Ms. Joyce. Ms. Joyce was concerned if the investment would generate heads in beds, and needed more info on advertising special events. Mr. Peterson stated the Chambers support us. f. Budget Discussion – Charlotte Dunworth Charlotte Dunworth reviewed the budget financials and listed some areas requiring discussion: - current revenue amount for next year and operating expenses - three new positions and reclassification requests for existing positions - non-operating expenses - TDC reserve policy - 5-year capital expenses - 5-year capital improvements - strategic marketing plan First Penny – Mr. Dixon asked if health insurance increases are included in the budget and Ms. Dunworth responded this info will be reported in Gary Real’s report. Mr. Dixon asked if the TDC repays for beach cleaning and Lynn Hoshihara stated the TDD funds include beach cleaning. Second Penny – Ms. Dunworth explained the Second Penny is primarily for operation of research and the visitors center, and includes a three month operating reserve. Mr. Dixon asked if a contract amount is included for providing lifeguards and Ms. Hoshihara said it is included. Third Penny – Ms. Dunworth stated there are currently four divisions combined into two departments for ease of accounting, and highlighted funding for promotional activities. Mr. Guidry questioned why training and education figures dropped. Mr. Schroeder explained this is what was asked for and added it does not include further education for him. Fourth Penny – Ms. Dunworth commented the Fourth Penny is restricted to capital improvements and disaster related repairs and future capital improvement projects. Fifth Penny – This includes the Chambers of Commerce funding. Regarding promotional expenses, Mr. Peterson suggested listing the Film Commission and the TDC travel Okaloosa County Tourist Development Department Page 6 of 10 May 8, 2014 Packet Pg. 23  1.b expenses separately. Commissioner Windes recommended listing the fisheries as habitat sustainability. There is a 900K operating reserve and $1M for promotional activities. Minutes Acceptance: Minutes of May 8, 2014 9:00 AM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale The current Operating Reserve amount is $3.3M and Ms. Dunworth recommended an increase using a percentage of the annual marketing plan instead of a flat dollar amount. Mr. Schroeder suggested three or four months of operating funds would be adequate. Mr. Dixon recommended increasing Operating Reserves to 35% and to include the information in the Ordinance. Motion to Approve Increasing the Operating Reserves Budget from 25% to 35%. RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Dixon SECONDER: Rigdon AYES: Gossom, Guidry, Windes, Peterson, Dixon, Joyce Mr. Peterson asked Jim Trifilio to lead a discussion on the budget for Beach Restoration reserves. Mr. Schroeder recommended spreading the cost to three pennies. Ms. Dunworth stated the TDC does not have a beach restoration reserves policy and could use the full cash balance in the first and third pennies for beach restoration reserves, approximately $10M. Ms. Hoshihara confirmed Florida Statutes do not say which penny the Beach Restoration reserves should come from. Mr. Trifilio added you can never have enough money for beach restoration. State and Federal funds may or may not become available following a hurricane. We would need to restore 3 miles of beach on Okaloosa Island and 6 miles in Destin. Mr. Schroeder said $500K spread across 3 pennies per year might be sufficient annually to build up to a level of $14M. Motion to Approve Budgeting $500K Per Year To Build Up Beach Restoration Reserves to a Level of $14M. RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Dixon SECONDER: Rice AYES: Gossom, Guidry, Rigdon, Windes, Peterson, Joyce Commissioner Windes stated it is of the utmost importance to have East Pass dredging in the event of a catastrophic beach event and the East Pass is in dire need of help. The East Pass is right behind the beaches in our order of an economic engine and having the Pass operable. So, he added it is of the utmost importance to keep that reserve there, and it is at just about the right amount. The Army Corps of Engineers is going to help a little. The City could help and the County could help and that would mostly do it. Jim Trifilio agreed the amount needed would be about $2.5M. Commissioner Windes said in a catastrophic beach event you might need that money to go to a restoration project too. Okaloosa County Tourist Development Department Page 7 of 10 May 8, 2014 Packet Pg. 24  1.b It’s really not just in one individual pot. He said we should keep that money, but with the lack of Federal assistance in recent years it may come down to where it is up to us. So, it Minutes Acceptance: Minutes of May 8, 2014 9:00 AM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale is a big deal for the whole County because of the tax base it maintains and saves. Mr. Dixon agreed, stating the beaches are our economic engine. He added he would like to have some data of how many boats come in and out of the East Pass as it is very much utilized. Commissioner Windes said $2M in our coffers should be enough and that surely we could get other entities in a bad situation to help us out. He recommended we keep $2M in reserves for the East Pass dredging. Motion to Retain $2M in Reserves for the East Pass Dredging. RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Windes SECONDER: Dixon AYES: Gossom, Guidry, Rigdon, Windes, Peterson, Joyce g. Risk Mgmt Cost Allocation – Gary Real Gary Real gave an overview of the different cost allocations for county