Fort Walton Beach Resolution — 2021-10--Conflict Resolution--TDD — reading text

RESOLUTION 2021 - 10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA INITIATING CHAPTER 164, FLORIDA STATUTES CONFLICT RESOLUTION PROCESS; SETTING FORTH THE NATURE OF CONFLICTS WITH OKALOOSA COUNTY; AUTHORIZING THE CITY ATTORNEY AND THE CITY MANAGER TO IMPLEMENT SAID PROCESS; PROVIDING FOR NOTICE TO OKALOOSA COUNTY AND OTHER MUNICIPALITIES; AND PROVIDING FOR AN EFFECTIVE DATE. RECITALS: WHEREAS, the City of Fort Walton Beach, Florida ( the " City") is a Florida municipal corporation and political subdivision of the State of Florida; and WHEREAS, the City of Fort Walton Beach is within the Subcounty Tourist Development Special Taxing District (" the Current TDD") along with the City of Mary Esther, City of Destin, Town of Cinco Bayou, and Okaloosa Island; and WHEREAS, the Okaloosa County Board of County Commissioners has scheduled a referendum for October 5, 2021, where voters who reside outside of the Current TDD will vote on whether to affirm the expansion of the Current TDD from a sub- county special district to a single countywide district; and WHEREAS, the City of Destin, Florida initiated the dispute resolution process with Okaloosa County under Chapter 164, Florida Statutes on July 19, 2021, related to Okaloosa County' s planned expansion of the Tourism Development Tax District countywide and provided notice of the dispute to all other municipalities in Okaloosa County inviting them to join; and WHEREAS, the City has its own legal questions and concerns with the expansion process of the Tourist Development District, whether the method and procedures for collections of bed taxes in the Current TDD and proposed expanded TDD are legally sufficient and will preserve the Current TDD bed tax collections, and the proposed amendments to the Tourist Development Plan which will control the makeup of the Tourist Development Council; and WHEREAS, the City believes it necessary and prudent for it to join the conflict resolution process as a primary conflict governmental entity to ensure that the processes and procedures proposed by Okaloosa County are legally sufficient and does not disproportionately affect the City and other members of the Current TDD; and WHEREAS, the City Council after being advised by the City Attorney and City Manager believes the City' s best chance to resolve any conflicts with Okaloosa County is to be a primary conflicting governmental agency as defined in Chapter 164, Florida Statutes; and WHEREAS, the law requires the City Council to pass a resolution to employ the conflict conflicting governmental entity with Okaloosa County. resolution process as a primary  RESOLUTION 2021 - 10 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, AS FOLLOWS: Section 1. Recitals Adopted. Each recital stated above is adopted herein and confirmed. Section 2. Nature of the Conflict. The City of Fort Walton Beach has both legal and policy concerns with whether the proposed expansion of the tourist development district method, the proposed method and procedures for collections of bed taxes in the Current TDD and the proposed expanded TDD, whether the expansion will jeopardize the current TDD members ability to maximize bed tax revenues, and how the tourist development plan will need to be amended should the expansion of the TDD to all of Okaloosa County be successful. Likewise, the City Council recommends the Board of County Commissioners of Okaloosa County postpone the referendum a minimum of sixty ( 60) days to resolve these outstanding conflicts. Section 3. Conflict Resolution Implementation. The City Council directs its City Attorney and City Manager to take all steps to begin the conflict resolution process provided for in Chapter 164 of Florida Statutes while preserving the City' s rights at law and in equity. The City Manager and City Attorney are authorized and directed to take all steps necessary and appropriate to implement this resolution and to use their discretion in such implementation to protect the interests of the City. Section 4. Notice to County and Other Municipalities. The City Attorney and City Manager shall mail a letter as referenced in section 164. 1052, Florida Statutes, along with a certified copy of this resolution to the Okaloosa County Administrator. Copies of the letter and resolution shall also be sent by email and regular mail to the head administrators/ managers and mayors of Destin, Mary Esther, Cinco Bayou, Crestview, Niceville, Valparaiso, Laurel Hill, and Shalimar as each municipality has a substantial interest that may be affected by resolving the stated conflict. If these municipalities so elect, each may join in this proceeding, but no other municipality is required to join. Section 5. Effective Date. This resolution shall be effective immediately upon adoption by City Council and signature by the Mayor. Adopted: mil, z 1 o'% yl yi. 1.). Richard A. Rynearson, Mayor Attest: Approved for form, legal s to. w447. I": 4 40,,, 416 - ,„....... V,=,# .,-.v/., . th& .:•-_ -_, ./..'._../_ 1 i• ir' II Kim M Barnes, City Clerk ' 114\ rrflirD kes, Jr., C.--- 7y iI T! nAa FlO1p1  FtCity of Fort Walton Beach 4 44,::;;\ The Treasure of the Emerald Coast" S`/ 7' 107 Miracle Strip Parkway SW* Fort Walton Beach, FL 32548 7:." '‘' A , 850) 833- 9504* Fax( 850) 833- 9640 TDD( 850) 833- 9925 Michael D. Beedie City Manager mbeedie(dfwb.org July 28, 2021 9171 9690 0935 0250 9980 48 Mr. John Hofstad County Administrator Okaloosa County 1250 N Eglin Parkway Shalimar, FL 32579 RE: TDD Expansion Dispute— Chapter 164, Florida Statutes, Alternative Dispute Resolution Process Between the City of Fort Walton Beach& Okaloosa County Mr. Hofstad: On July 27, 2021, the Fort Walton Beach City Council unanimously adopted Resolution 2021- 10 initiating the Chapter 164, Florida Statutes, Local Governmental Alternative Dispute Resolution Process between the City of Fort Walton Beach, Florida ( City) and the Okaloosa County Board of County Commissioners BOCC) in relation to the proposed expansion of the Tourist Development Taxing District( TDD). Resolution 2021- 10 sets forth the City' s points of conflict with this matter, which are summarized below: The City has both legal and policy concerns with the method of the proposed expansion of the TDD, the proposed method and procedures for collections of bed taxes in the current TDD and the proposed expanded TDD, whether the expansion will jeopardize the current TDD members' ability to maximize bed tax revenues, and how the Tourist Development Plan will need to be amended should the expansion of the TDD to all of Okaloosa County be successful. Submittal of this letter and a certified copy of Resolution 2021- 10 shall serve as the initiation ofthe Chapter 164 dispute resolution process, which requires the following steps: Adoption of Resolution 2021- 10 by City Council initiating the Chapter 164 process as a primary conflicting governmental entity. Notification to Okaloosa County within five( 5) days of the adoption of the resolution via letter and certified copy of the resolution. The coordination of a conflict assessment meeting between the City and BOCC. This meeting must be held within thirty( 30) days of the date of the letter initiating the conflict resolution process. Because other municipalities in Okaloosa County are adopting similar resolutions to initiate the Chapter 164 process, coordination of a joint conflict assessment meeting with the BOCC and all other municipalities is desired by the City. In addition to the City of Fort Walton Beach, the following municipalities may have similar conflicts related to the proposed expansion of the TDD with Okaloosa County: Town of Cinco Bayou, City of Crestview, City of Destin, City of Laurel Hill, City of Mary Esther, City of Niceville, Town of Shalimar, and City of Valparaiso. It is our understanding that the City ofDestin proposed an initial meeting date ofAugust 11, 2021. However, the City of Fort Walton Beach is unable to meet on that date or anytime during that week. The City would like to propose the afternoon of August 18, 2021, at the Destin-Fort Walton Beach Convention Center on Okaloosa Island for the initial conflict assessment meeting. The City is open to other dates and locations to accommodate everyone involved as long as the meeting takes place within thirty( 30) days of the receipt of this letter. The City of Fort Walton Beach suggests that at least one( 1) County Commissioner be present at the conflict resolution meeting along with yourself and the County' s legal counsel. The City of Fort Walton Beach prides itself on maintaining a cooperative relationship with Okaloosa County and the other municipalities and are confident this issue can be resolved through a civil and amenable manner. It is unfortunate that this issue has gotten to this point, but the initiation of the Chapter 164 conflict resolution process was viewed as necessary by the City Council to encourage continued dialogue in developing the ordinance for the