Okaloosa County Tourist Development Council — April 25, 2013 (meeting #1135) — reading text

for their own benefit. Members may not do business with the Council if they own more than a 5% interest in the company. They also may not engage in any conflicting employment or contractual relationships. Ms. Hoshihara went on to state that members may not vote on a matter that would result in personal gain to themselves, a business associate or relative. If there is no conflict or appearance of conflict, then by law, members have a responsibility to vote. Ms. Hoshihara explained a conflict would be voting on a matter that affected a family member. The appearance of a conflict could be voting on a matter that affected a previous business partner. If a member believes there is a conflict, they are responsible to announce the conflict at the meeting, abstain from voting, and file a memorandum of voting conflict (Form 8b, included in the binder provided) There is also a Quarterly Gift Disclosure for Gifts of more than $100 from private entities (Form 9), included in the binder for members. Mr. Rice asked Ms. Hoshihara about any conflict of interest for the Doolittle Raiders and the member’s conducting business in the area of their visit, as business owners. Ms. Hoshihara answered that any conflict of interest would have to be more direct. By statute, the composition of the committee is required to have a certain number of owners and operators of varying types of businesses in the tourist related industry. Mr. Stewart added, as long as there is a generalized benefit, consistent with the committee’s function, there is not a conflict of interest. Ms. Hoshihara stated one area ripe for conflict, would be special events and sponsorship funding. Due to the revised operations and procedures manual, those decisions would be made by staff. Mr. Bass asked about personal liabilities as board members. Mr. Stewart responded that there would be no liability for making a recommendation. Mr. Rice asked about whether the members are required to file financial disclosure. Mr. Steward responded they are not. Mr. Stewart and Ms. Hoshihara encouraged the committee to contact them with any questions or concerns. Okaloosa County Tourist Development Department Page 4 Printed 4/17/2013 Regular Meeting Minutes January 23, 2013 III. Election of Officers (Chairman and Vice-Chairman) per TDD Operations & Procedures Manual (Nabors, Giblin & Nickerson PA) Mr. Stewart reviewed how to vote for the chairman and vice-chairman positions. He stated, historically, election officials have not been elected as chairperson. The terms for each position are for a one year term, but may be reelected for a second year. Following Mr. Stewart’s information, the positions were put to a vote. Motion to nominate Dale Peterson for Chairperson RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Tom Rice SECONDER: Kelly Windes AYES: Bass, Gossom, Guidry, Rigdon, Dixon ABSENT: Empson, Peterson Motion to nominate Tom Rice for Vice chairperson RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Kelly Windes SECONDER: Tuffy Dixon AYES: Bass, Gossom, Guidry, Rigdon, Dixon ABSENT: Empson, Peterson IV. Approval of current Tourist Development Council & Committee(s) meeting minutes (Chairperson/Dan O’Byrne) a. TDC Selection Committee Meeting – March 27, 2013 b. TDC Selection Committee Meeting – March 25, 2013 c. TDC Regular Meeting – January 23, 2013 d. Marketing Committee Meeting – January 22, 2013 e. Marketing Committee Meeting – January 16, 2013 Members questioned the responsibility of approving minutes from meetings they were not present for. Mr. Stewart suggested the committee delegate the responsibility of reviewing and approving previous meeting minutes in items, IV. And V., to Mr. O’Byrne. Okaloosa County Tourist Development Department Page 5 Printed 4/17/2013 Regular Meeting Minutes January 23, 2013 Motion to Delegate Approving Authority to Mr. O’Byrne for Previous Meeting Minutes RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Tuffy Dixon SECONDER: Kelly Windes AYES: Bass, Gossom, Guidry, Rigdon, Dixon ABSENT: Empson, Peterson V. Consider Previous TDC & related Committee(s) meeting minutes per Auditor General Finding No. 25 (Nabors, Giblin & Nickerson PA) a. TDC Meetings Aug. 22, Sept. 26, Oct. 24 and Dec. 5/2012 b. TDC Marketing Committee Meetings Oct. 10 and Oct. 31/2012 Approval delegated to Mr. O’Byrne, as stated in item IV, above. VI. Dissolution of the Emerald Coast Convention and Visitors Bureau, Inc. (Nabors, Giblin & Nickerson PA) Mr. Stewart gave a brief history of the nonprofit organization, Emerald Coast Convention and Visitors Bureau, Inc. The organization was created to protect the name, but had no assets or members. Due to changes in the statute, there is no longer a need for the corporation. The existence of the Council now protects the name. Under the bylaws of the corporation, the members of the TDC are the board of directors of the corporation. Mr. Stewart advised the names of the new committee members be added to reflect the new composition of the TDC and then be authorized to file a dissolution of the corporation. Motion to Authorize Legal Counsel and Mr. O’Byrne to File Amendments to the Corporate Documents to Reflect the New Composition of the Tourist Development Council. RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Joe Guidry SECONDER: Tuffy Dixon AYES: Bass, Rice, Guidry, Rigdon, Dixon ABSENT: Empson, Peterson Okaloosa County Tourist Development Department Page 6 Printed 4/17/2013 Regular Meeting Minutes January 23, 2013 Motion to Authorize Legal Counsel and Mr. O’Byrne to Approve a Resolution of Dissolution and File a Notice of Dissolution with the Secretary of State for the Emerald Coast Convention and Visitors Bureau, Inc. RESULT: MOTION APPROVED [UNANIMOUS] MOVER: Thom Gossom SECONDER: Tuffy Dixon AYES: Bass, Rice, Guidry, Rigdon, Dixon ABSENT: Empson, Peterson VII. Review Month End February Tax Receipts and March YTD TDD Expenditures by Penny (Dan O’Byrne) Mr. O’Byrne reviewed tax receipts, financial statements and expenditures by the penny. He stated he would send members reports each month. Mr. Bass questioned whether the former Council reviewed where money was coming in from and going out to. Mr. O’Byrne stated they did, but not as intensely as the Council will henceforth. Commissioner Windes suggested changing the dates reported for the pennies, to illustrate when all five pennies were being collected and review from that point forward. Mr. O’Byrne agreed. Mr. O’Byrne reiterated that each penny has a very specific use, and must be accounted for separately. The ordinance change governs how each must be spent. Additionally, responses to auditor general findings changed the way expenses are processed and paid. There is now a far greater discipline to how bills are paid, as opposed to a year ago. All pennies sit in the tourist development trust fund. Bills are no longer pay for goods or services until they are received. Mr. O’Byrne showed a summary of October 1, 2012 to March 31, 2013 expenditures. The 1st penny is set aside for beach renourishment projects. The 2nd penny due is the only penny that has a defined split in its usage. In the ordinance, 30 percent can or must be spent on administration. The other 70 percent can or must be spent on other things beaches, waterways, etc. The 3rd and 4th pennies the Clerk of Court handles in a separate fund. The 4th is debt repayment. Lastly, the 5th penny is a pure tourism penny. A significant amount of this money is invested. Okaloosa County Tourist Development Department Page 7 Printed 4/17/2013 Regular Meeting Minutes January 23, 2013 Mr. Guidry asked where we were on the debt for the convention center. Mr. O’Byrne answered that there are two nominal payments left and next October the building would be paid off. They have asked the legislature for more latitude on how the funds are used after that point. Once the debt is paid off, bed tax would still flow into the fourth penny. Fourth and fifth pennies are narrow, but the fourth penny can remain in place once debt is paid off. Mr. Rice questioned the 2nd penny, and a story in the newspaper about discouraging the use of the money being used for lifeguard services. The article stated a change in statute allows for payment of lifeguards in the second penny, whereas it was in question before. Mr. Guidry asked about security. Mr. Stewart answered that security is a little bit different. He said Sheriff Leslie has asked the legislature and that’s where it sits now. But, said other counties do not use tourist tax funding for security. Mr. Bass asked about building public restrooms with the 2nd penny. Commissioner Windes asked about parking lots. Mr. Steward responded yes, they could be used for those things. Mr. O’Byrne mentioned that staff will be bringing more suggestions to the Council soon. Mr. Windes mentioned Okaloosa Island needs more walkovers, and Destin needs more lifeguards, suggesting discussion during the next meeting. Mr Guidry asked for an update on special events and sponsorship updates from previous