clerk of the circuit court - amazon web services...marketing committee as part ofthe final plan...

Clerk of the Circuit Court Board of County Commissioners

Marion County .:..:..:.

David R. Ellspermann Clerk of the Circuit Court Wallace K. Watford

Internal Auditor

Internal Audit Division

Post Office Box 1030, Ocala, Florida 34478-1030 110 NW First Avenue, Ocala, Florida 34475

Telephone: Facsimile:

(352) 671-5604 (352) 671-5600

MEMORANDUM

To: Lee A. Niblock, County Administrator

FROM: David R. Ellspermann, Clerk of the Circuit Court ~

DATE: January 11,2012

RE: REVIEW OF OCALA-MARION COUNTY VISITORS AND CONVENTION BUREAU

The Internal Audit Division has completed a review of the Ocala-Marion County Visitors and Convention Bureau (VCB). The principal purposes of the audit were to: confirm that Tourist Development Tax (TOT) funds were used in accordance with Marion County Code; determine compliance with internal controls; and ascertain whether appropriate Marion County policies and procedures were followed.

The Internal Audit Division in the past has performed limited reviews ofthe VCB beginning in 2006 to determine whether the required County internal controls over financial reporting and policy compliance were effective, as well as to gain understanding of TDT revenues and tax collection issues. We then performed an audit in 2008 (Report No. 2008-01, dated July 17, 2008) and a followup audit (Report No. 2009-03, dated March 2, 2009).

Our current audit procedures were begun in August 2011 and consisted of the review of financial transactions, examination of pertinent documents, discussions with VCB management and staff, discussions with other County management and staff, observations of procedures and employee activities and review of selected BCC and Tourist Development Council (TDC) meeting minutes. This review included testing expenditures, analyzing revenues and determining effectiveness of internal controls and adherence to County policies. We also had discussions with the TDC Chair and attended three TDC monthly meetings.

We have concluded that the VCB is organized as a County department that is under the oversight ofthe County Administrator and is subject to the same internal operational, financial, purchasing and budgetary controls ofany other department. The TDC provides an appropriate level ofoversight of VCB activities and fulfills its responsibilities under County Code and Florida Statute. TDT funds are used in accordance with County Code and there are no material internal control issues or weaknesses. We also determined that VCB and other County personnel are in compliance with relevant County policies and procedures.

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OCALA-MARION COUNTY VISITORS AND CONVENTION BUREAU

We present the following findings and recommendations for management's consideration, which were discussed in our exit conference with management on January 11, 2012. Included are certain transparency enhancements that the TDC has already implemented, with which we concur. This report includes the management responses obtained from Matthew Dunn, VCB Tourism Development Director, which were reviewed and approved by William Kauffman, Assistant County Administrator.

This review was conducted by Wallace Watford, Darla Smith and Sachiko Leon. We wish to express our appreciation to the VCB Tourism Development Director, County Administration and the TDC Chair for their cooperation and assistance during our review.

c: Matthew Dunn, VCB Tourism Development Director Jo Salyers, TDC Chair (during review period) William Kauffman, Assistant County Administrator John Garri, Finance Director George Albright, Marion County Tax Collector

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Findings and Recommendations

A. Background: Tourist Development Taxffourist Development Council

Marion County has imposed through ordinance a Tourist Development Tax (TOT) throughout Marion County of two (2) percent of the total amount charged on residential rents and leases of six months or less duration. Pursuant to Florida Statute 125.0104 and as compiled in Article XIII ofthe Marion County Code, Ordinance No. 04-17 was adopted by the Board ofCounty Commissioners on July 6, 2004 and was approved by voter referendum on November 2, 2004. The ordinance was subsequently amended on July 3,2007 to eliminate the required percentage allocations for marketing and grants expenditures; on January 22,2008 to provide for local collection and administration by the Marion County Tax Collector; and on March 17,2009 to adopt a broader Tourist Development Plan to include group and sporting event marketing. (See Attachment A for other significant actions and dates.)

Florida Statute 125.0104 was incorporated into Ordinance No. 04-17 in creating the Marion County Tourist Development Council (TDC) to be comprised ofnine members: (a) one BCC commissioner and two municipal elected officials; (b) three who are owners or operators of tourist lodging accommodations subject to the tax; and (c) three who are involved in the tourist industry. The present TDC is comprised of: (a) elected officials from Marion County BCC, City ofOcala and City ofDunnellon; (b) representatives from the county tourist accommodations industry subject to the tax; and (c) individuals whose businesses are related to tourism marketing and advertising.

The TDC is charged with reviewing proposals for expenditure of tax revenues and making recommendations to the BCC. The TDC is further charged with continuously reviewing all expenditures or revenue from the tourist development trust fund and informing the BCC of any unauthorized expenditures. (See Attachment B for excerpts from County Code 10-383.)

The qualifications for membership on a tourist development council are established by Florida Statutes. (See Attachment C for excerpts from FS 125.0104.) It appears the legislative intent was for all members to have knowledge ofthe tourism needs ofa county and at least six (elected officials and tourist accommodation businesses) have a vested interest in the economic effects of tourism. There had been a suggestion in a BCC public meeting that there was a perception of a conflict of interest. We were therefore alert to possible actual conflicts of interest during our review and have addressed the issue in this report.

B. VCB Organizational Structure and Relationship with TDC

The Ocala/Marion County Visitors and Convention Bureau (YCB) was created to administer the activities related to the expenditures ofTDT funds. It is accounted as a separate County Department (# 2870) and its activities and TDT revenues are recorded in the Tourist Development Fund (#117). The YCB was established as a County department in fiscal year 2005. The department is presently staffed with: Tourism Development Director; Tourism Development Sales Manager and Administrative Staff Assistant. The FY 2012 budget includes funding for an Event Coordinator position that is presently in the process of being filled.

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The VCB is subject to the same budgetary, financial, purchasing and human resources controls as any other County department, and must follow County policies and procedures. County Administration during FY 2011 strengthened the County's oversight over VCB operations and clearly placed the department under the authority of the Assistant County Administrator of Public and Administrative Services. One difference from other County departments: VCB is authorized by FS 125.0104 (9)(a) to purchase food and beverages related to marketing purposes. These purchases are appropriately monitored by County personnel.

We found that the County's method ofaccounting for and monitoring ofthe operations and financial transactions of the VCB and the tax revenues to be appropriate.

The TDC is significantly involved in VCB budget preparation for its submission to BCC and appears to effectively perform its assigned financial oversight role over revenues and expenditures. Large expenditures for grants and contracted marketing services are made pursuant to budget recommendations or specific event approval by the TDC and approval by the BCC.

We found that the TDC appropriately performs its oversight function in accordance with County Code, Section 10-383 (b).

The TDC is considered a Marion County citizen advisory board and is required to follow County Code and policies for such boards, as well as comply with Florida Statutes concerning the "Government In The Sunshine Law." The County has published the procedure guidebook entitled "A Helping Hand" to assist the boards with compliance.

In response to comments made in a BCC public meeting concerning the TDC and perceived conflicts of interest, the TDC Chair recommended, and was approved by the TDC on September 14, 2011, that certain improvements be made to TDC transparency. We concur with the following actions: • TDC will implement roll call voting procedure on all votes involving financial requests from

VCB and other financial matters. • TDC will implement voting procedure that each item be voted on individually, not collectively. • TDC members should recuse themselves and not vote on any item that may cause or be

perceived to be a conflict of interest.

TDC members are provided expenditure reports from the County's financial reporting system, but not always at each TDC monthly meeting. Such reports are required at least quarterly pursuant to FS 125.0104 (4)(e). To assist TDC members with sufficient information to make the recently enacted required votes on financial items, we recommend that the Tourism Development Director provide at each meeting the most recent financial reports from the County's financial system.

Management Response: We concur, however we are well up to date and consistent with the state statute that requires our Department to provide "quarterly" reports to the TDC.

C. MarketinglPromotional Activities

The Tourist Development Tax ordinance (04-17) included a Tourist Development Plan that initially stipulated that 65% of the TDC annual budget would be used for marketing and advertising purposes, including staffing and operation of the Visitors and Convention Bureau. This limitation

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was removed by BCC on July 3, 2007 by amending the ordinance. BCC again amended the ordinance on March 17,2009 to allow for enhanced promotions oftourism, to include marketing of Marion County as a sports venue and for group events.

Tourist Destination Marketing A significant VCB expenditure category pertains to marketing and promoting Marion County as a tourist destination. The principal marketing efforts have been performed through an agreement with Gold and Associates, Inc. (Gold). Gold representatives attend the separate monthly meetings ofthe TDC and its Marketing Committee to present the current status ofmarketing campaigns and other advertising matters. In addition, Gold developed and maintains the VCB website.

The Gold contract and expenditures we reviewed was renewed in August 2008 and expired October 1, 2011. That renewed agreement allowed for an amount not to exceed $444,000 for promotional activities, which included a monthly retainer fee of $8,510. Gold had elected to invoice a lesser monthly retainer fee at $7,500, resulting in an annual savings of $12, 120. (The prior contract was not to exceed $900,000 for promotional activities, including Gold's monthly fee of $17,250.)

The Gold contract expired effective October 1, 2011 and the provided services were publicly advertised. Three responses were received and evaluated by a five member selection committee, which unanimously recommended that Gold be awarded the new contract. The terms are essentially the same, with a total not to exceed of $400,000, including a monthly retainer fee of $8,51O. BCC approved the recommendation on October 18,2011, but made it subject to a one year agreement with two one-year renewals to allow further BCC discussion and action at those times. Gold obtains the media services that accomplish the approved annual media plan and is responsible to pay the media services vendors. Gold invoices the VCB for services rendered and the County pays Gold directly.

Our review ofTDC minutes disclosed that the Gold annual marketing plan and its cost components are presented with considerable specificity. The plan is discussed in detail by the TDC and its Marketing Committee as part ofthe final plan development. We do have a suggestion for additional transparency by Gold to assist the TDC in its decision making process. We recommend that Gold be requested to provide written explanations to the TDC, as part of each annual media plan, as to why specific media vendors were selected for inclusion in the media plan.

Management Response: We concur and Gold & Associates is providing written explanations why specific vendors have been chosen. This has been done on an annual basis but our Department will ask Gold & Associates to provide more detail. Additionally, the specific vendors of note have been chosen because they are local and have the most predominant placement to maximize visibility.

Sports Marketing: Ocala/Marion County Sports Commission To aid in the attraction of sporting events, the VCB made a presentation to BCC on December 15, 2009 to create a local sports commission. According to the meeting minutes, the BCC "...approved the presentation regarding branding of a Local Sports Commission" known as the Ocala/Marion County Sports Commission. The presentation stated that the sports commission duties include all the duties ofa visitors bureau, "...plus: Secures in-kind services, provides hospitality services, assists with equipment rental and purchases, creates and presents awards, may help with medical and insurance issues, arranges transportation, officials/judges/umpires, conducts events within the event,

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helps secure sponsorships, permitting, signage, ticketing and parking facilities as well as outfitting, outsourcing, budgeting and accounting."

The Sports Commission is a division of VCB and, as mentioned, this was a branding change to enhance VCBs ability to secure and promote sports events and group events. There are no separate commission members and the VCB Tourism Development Director is also established as the Sports Commission Executive Director. This branding change also allowed VCB to obtain grants from the Florida Sports Foundation of $11,000 for each of the past two years. We do note that sports sponsorship is another area requiring caution by TDC members concerning potential conflicts of interest.

D. Marketing Committee

The TDC formed the Marketing Committee shortly after the TDC was created. Marketing Committee members are not TDC members. The purpose was to provide advice in the TDCs marketing strategy and to assist in the design of the annual marketing plan. The expressed reason was the perceived need to obtain the needed expertise and input from many members of the local community. Each committee member is a uncompensated volunteer from the community and applied for membership following a publicly advertised period. The members serve for two year terms and can be reappointed for another two year term if approved by the TDC. (See Attachment D for current TDC policies for the Marketing Committee.)

The Marketing Committee presently has thirteen approved positions of which ten are filled. The number of committee members has varied depending upon the services needed by the TDC. We were unable to review any previous Marketing Committee policy concerning the authorized number of committee members. All Marketing Committee meetings are publicly noticed and meeting minutes are prepared in the same manner as TDC meetings. The minutes had been submitted to the BCC on subsequent meeting agendas as information items, but this was discontinued in 2011. The Tourism Development Director stated his intention to submit these minutes in the future.

A significant duty ofthe committee at its inception was to assist in designing the grants program and grant application form. Thereafter, committee volunteers began the process to evaluate and score the grantee requests, and then recommend applicants and grant amounts to the TDC.

We have concluded that the Marketing Committee has performed significant functions for the TDC. These functions have remained virtually the same from the time ofour first review. The committee meets four or five times each year as needed, particularly to review grant applications and recommend grantees and grant amounts. During the committee meetings, Gold presents a marketing update for information purposes and the VCB Director also presents updated information on VCB and TDC activities. Votes are not required, but members may make suggestions on any matter. Significant member input is provided to Gold in the development of media plans and votes have been taken to approve the plan. All Marketing Committee recommendations or votes are advisory and non-binding on the TDC.

The TDC Chair recently recommended, and was approved by the TDC on September 14,2011, that certain improvements be made to the Marketing Committee reporting. We concur with the following actions:

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• Marketing Committee meeting minutes will be placed on TDC agenda for specific approval. • Marketing Committee will implement roll call votes on all votes involving financial matters. • The Marketing Chair will attend the subsequent TDC meeting to provide information on actions

of the Committee at the prior meeting and to answer any questions of TDC members.

The TDC created the Marketing Committee to assist the TDC in accomplishing its duties. Formal BCC approval of the creation of the Marketing Committee does not seem to have been necessary. A county commissioner was on the TDC at the time the Marketing Committee was created.

We believe that the TDC policies for the Marketing Committee may require revision resulting from TDC actions during the September 14, 2011 meeting. We recommend that the TDC update its committee policy and procedures. These should be approved by TDC members by recorded vote.

Management Response: We concur. This will be completed working with both County Administration and VCB staff input.

We recommend that the updated policy include the minimum number of committee members.

Management Response: We concur for the same reasons listed above.

We recommend that the updated policy and procedures then be submitted to BCC to ensure continued transparency.

Management Response: We concur and will place the updated policy on a future BCC agenda.

E. Expenditures

As shown in Attachment F, TDC expenditures include salaries, promotional activities (marketing), grants/aids to private organizations, travel, training and rents, among many others. The significant expenditure categories are personnel costs, marketing and grants.

We tested the expenditures for the period of October 2009 to July 2011 to determine compliance with County policies and procedures. We found that the expenditures were incurred, approved and paid in accordance with County purchasing and payment policies. We did note some expenditure documentation issues which were separately addressed with VCB staffand cleared. These included expenditures related to sports events and marketing. We did not consider these significant but we present the following.

Some of the amounts expended for sports-related event expenses appeared to be based on verbal commitments between the VCB and sponsors that we think could be in writing to mitigate against later potential misunderstandings between the parties. Based on our attendance at three TDC meetings, the TDC generally is informed of the events and amounts and approves in advance, but the level of detail provided is not always clear from our review of TDC minutes. The events and budgeted costs are presented to TDC as part of fiscal year budget preparation. Additional substantiating documentation could be obtained and attached to or referenced in the request for payment.

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We recommend that all approved commitments of the VCB to provide expenditures for sports and group events be in writing to the extent practical and be included with, or clearly referenced in, the request for payment.

Management Response: We concur and modified procedures immediately.

The VCB was required to move its headquarters during FY 2011 due to the sale of its leased facility. The department is now located in the County-owned facility that had been known as Ocala National Bank. The VCB no longer pays rent but did provide funds ($23,473) for refurbishing the current premises. This resulted in recurring annual savings in rental expense of $36,000. The VCB continues to pay utilities (electric, water and gas) as it did at former location. Facilities Management determines the monthly amounts due; present cost allocation is one-halfofthe total facility monthly utilities bills.

There were also significant changes in staffing since our last report that affect personnel expenditures. A formal selection process to fill the position ofTourism Development Director was performed by TDC after the first Director retired. The BCC confirmed the TDCs recommendation on May 3, 2011. The resulting Sales Manager vacancy was filled in August 2011. The BCC also approved the new position of Event Coordinator to be filled during FY 2012. In addition, the Administrative Staff Assistant transferred to another County department and was replaced during FY 2011.

F. Grants

A portion of the TDT funds are budgeted to provide aid to private organizations for purposes provided by the ordinance. The Tourist Development Tax initial ordinance (04-17) included a Tourist Development Plan which stipulated that 35% of the TDC annual budget would be used for grants to assist non-profit organizations in marketing special events in Marion County. The TDC subsequently determined that it needed more flexibility in utilizing the revenues for enhanced marketing and sales efforts by the Visitors and Convention Bureau. The ordinance was amended in 2007 to allow the amounts ofgrants awarded to be determined by the TDC, subject to the subsequent approval by the BCe.

We reviewed the grants awarded for fiscal years 2010, 2011 and 2012. We examined the grants review and evaluation process to determine compliance with the procedures developed by TDe.

We noted that the grant funding has been significantly reduced over the years. For example, the total grants awarded for FY 2007 totaled $882,524, while the total grants awarded for FY 2010, FY 2011 and FY 2012 were totaled $43,403, $27,401 and $28,815, respectively.

We concentrated on the FY 2010 awarded grants because these were in the last fully completed fiscal year at the time ofour review. We examined the selected applications and supporting documentation to determine compliance with the grant requirements. We ascertained that the TDC Marketing Committee reviews each grant application, grades and ranks each funding request according to

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established criteria, and makes recommendations to the TDC. The TDC then reviews and approves each grant before forwarding its recommendations to BCC for subsequent approval.

Our examination disclosed no exceptions with the amounts paid to grantees. We concluded that the application process and the review process provided by the Marketing Committee members were appropriate and fairly applied.

We noted that it is difficult to locate grant availability and the application form on the VCB website. We recommend that the availability of grant funding be made more prominent on the website. (Note: The Tourism Director promptly directed that this be accomplished.)

Management Response: We concur and this was implemented by the VCB staff in October 2011.

Some of the members of the TDC and its Marketing Committee are involved in local community "not for profit" organizations. We reviewed the respective minutes to determine if members voted for grants to an organization on whose boards they serve. We found that the minutes periodically reflect a recusal due to a conflict of interest. The voting changes enacted by the TDC should eliminate this concern and enhance the documentation within the minutes.

G. Revenues

The principal source of revenues is from the Tourist Development Tax. Other sources include interest earned on unexpended funds and grants from the Florida Sports Foundation to be used for local sports events. (See Attachment F for the summarized amounts by fiscal years.

We prepared an analysis of revenues (see Attachment E) based on month collected. We analyzed monthly tax collections from the implementation of the TDT effective January 1, 2005 through current. The Florida Department ofRevenue (DaR) initially collected the 2% TDT through March 31,2008, and directly remitted to the County with no deduction for an allowable administrative fee. Effective April 1, 2008, the TDT has been locally collected through an agreement with the Tax Collector, who directly remits to the County after deducting 3% as the administrative fee. As the attachment shows, there has been a significant reduction in taxes collected during the implementation period, which appears to generally mirror the economic conditions in the state of Florida.

H. Related Party Transactions

We noted earlier that the qualifications for membership on a tourist development council are established by Florida Statute 125.0104. (See Attachment C.) The members are to be comprised ofone-third local elected officials and two-thirds "...shall be persons who are involved in the tourist industry and who have demonstrated an interest in tourist development, ofwhich members, not less than three nor more than four shall be owners or operators of motels, hotels, recreational vehicle parks, or other tourist accommodations in the county and subject to the tax." All TDC members would therefore have some vested interest in the economic effects of increased tourism.

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This vested interest can result in an inherent potential for the appearance of conflicts of interest. This potential was also mentioned in a previous BCC public meeting. We conducted our review to ascertain ifwe would find actual conflicts of interest for which there could be "special private gain" as such term is used in FS 112.3143 (see Attachment G). We identified a few instances that could be perceived as conflicts of interest, even if immaterial. These were appropriately addressed by the TDC Chair and TDC members and the Tourism Development Director, as well as County Administration.

We have referenced Florida Statutes and County Code in this report, but are not presenting any legal opinions. We submit the following recommendations for enhanced transparency:

We recommend that any TDC and Marketing Committee member with a direct or indirect business relationship with the TDC abstain from voting on any matter that could directly affect that business. This recommendation is a restatement and clarification of a procedural voting change recently enacted by the TDC.

Management Response: We concur, and additional procedures were enacted by the TDC on September 14,2011. Specifically, all votes by the TDC and Marketing Committee will be taken in a roll call procedure and by individual expenditure vs. voting on a list of related items.

We recommend that any TDC and Marketing Committee member involved in the grant evaluation and/or approval process abstain from participating if the member is also on the board or significant committee of a grant applicant. This recommendation is a restatement and clarification of a procedural voting change recently enacted by the TDC.

Management Response: We concur, and additional procedures were enacted by the TDC on September 14,2011.

We recommend that all TDC and Marketing Committee members be given a current copy of the County's advisory board member procedure guidebook entitled "A Helping Hand" if they do not have one. Advisory board members upon appointment are presently informed they must attend a training class provided by the County within a certain period oftime after appointment. This session provides guidance on duties and legal requirements and includes the procedure guidebook.

Management Response: We concur.

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ATTACHMENT A

Miscellaneous Matters Re: County Code, Article XIII

Si~nificant Actions and Dates: Tourist Development Tax (TDT)

1. 2/17/04: BCC appointed the members of Tourist Development Council (TDC)

2. 6/15/04: The TDT Plan was submitted to BCC and approved

3. 6/15/04: BCC approved placing TDT Initiative on 11/2/04 ballot

4. 7/06/04: BCC adopted Ordinance 04-17, including the TDT Plan in entirety

5. 11/02104: TDT placed on Voter Referendum and approved by majority, effective 1/01/05

6. FY 2006: Tourism Coordinator hired

7. 12/05105: BCC approved creation of the Director position

8. 5/16/06: First Tourism Director appointed

9. 7103/07: BCC amended the TDT plan through Ordinance 07-17 to remove required percentages for marketing and grants expenditures

10. 1/22/08: BCC amended TDT though Ordinance 08-01 to provide for local collection and administration ofTDT by Tax Collector

11. 5/20/08: First Tourist Development Sales Manager hired

12. 3/17/09: BCC amended TDT plan through Ordinance 09-07 to provide for promotion of tourism in Marion County and use of revenues pursuant to FS 125.0104

13. 12/15/09: BCC approved additional branding of Ocala/Marion County Sports Commission

14. 5/03/11: Present Tourism Director appointed

15. 1% 1/11: BCC approved new position of Event Coordinator during FY2012

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ATTACHMENT B

TOURIST DEVELOPMENT COUNCIL

Creation, Powers and Duties of the Tourist Development Council (Excerpted from County Code, Article XlII)

Sec. 10-383. Reestablishment of Marion County Tourist Development Council.

(a) Creation.

There is hereby reestablished, pursuant to the provisions of section 125.0 I04, Florida Statutes, an advisory council to

be known as the "Marion County Tourist Development Council." The council shall be composed of nine (9) members.

One member of the council shall be the chairman ofthe board of the county commissioners, or any other member ofthe

board ofcounty commissioners as designated by the chairman. The council shall elect its chairman. The remaining eight

(8) members of the council shall be appointed by the board of county commissioners and shall have the following

representative classifications:

(1) Two (2) members who are elected municipal officials, one of whom shall be from the most populous municipality

in the county.

(2) Three (3) members who are owners or operators of motels, hotels, or other tourist accommodations in the county

and subject to the tourist development tax.

(3) Three (3) members who are involved in the tourist industry and who have demonstrated an interest in tourist

development, but who are not owners or operators of motels, hotels, or other tourist accommodations in the county and

subject to the tax.

All members of the council shall be electors of the county. The members of the council shall serve staggered terms of

four (4) years. Members of the council may be reappointed, provided they continue to meet the qualifications of

membership. A vacancy on the council not occurring by expiration of term shall be filled by the board of county

commissioners by appointment to fill the unexpired term. The current members of the council are as appointed and

confirmed by the board of county commissioners on February 17,2004.

(b) Powers and duties.

(I) The council as established shall meet at least once each quarter and, from time-to-time, shall make recommendations

to the board ofcounty commissioners for the effective operation ofthe special projects or uses ofthe tourist development

tax revenues and perform such other duties as may be prescribed by ordinance or resolution of the board of county

commissioners. Prior to making recommendations to the board ofcounty commissioners as indicated above, the counci I

shall review each proposal for expenditure of funds and determine that such expenditures comply with the tourist

development plan of section 10-382 of this article.

(2) The council shall continuously review all expenditures or revenue from the county tourist development trust fund

and shall receive, at least quarterly, expenditure reports from the board of county commissioners, or its designee.

Expenditures which the council believes to be unauthorized by the provisions ofthis article shall be reported to the board

of county commissioners and the Florida Department of Revenue. The board of county commissioners, upon receiving

notification of expenditures believed to be unauthorized by the council shall review the council's findings and take such

administrative or judicial action as it sees fit to ensure compliance with this ordinance and the provisions of section

125.0104, Florida Statutes.

(Ord. No. 04-17, § 3, 7-6-2004)

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ATTACHMENT C


Creation, Powers and Duties of the Tourist Development Council

(Excerpted/rom Florida Statute 125.0104)

125.0 I04 Tourist development tax; procedure for levying; authorized uses; referendum; enforcement.

4) ORDINANCE LEVY TAX; PROCEDURE.

(b) At least 60 days prior to the enactment ofthe ordinance levying the tax, the governing board ofthe county shall adopt

a resolution establishing and appointing the members of the county tourist development council, as prescribed in

paragraph (e), and indicating the intention ofthe county to consider the enactment of an ordinance levying and imposing

the tourist development tax.

(c) Prior to enactment of the ordinance levying and imposing the tax, the county tourist development council shall

prepare and submit to the governing board of the county for its approval a plan for tourist development. The plan shall

set forth the anticipated net tourist development tax revenue to be derived by the county for the 24 months following the

levy ofthe tax; the tax district in which the tourist development tax is proposed; and a list, in the order of priority, of the

proposed uses of the tax revenue by specific project or special use as the same are authorized under subsection (5). The

plan shall include the approximate cost or expense allocation for each specific project or special use.

(e) The governing board of each county which levies and imposes a tourist development tax under this section shall

appoint an advisory council to be known as the" (name of county) tourist development Council." The council shall be

established by ordinance and composed of nine members who shall be appointed by the governing board. The chair of

the governing board of the county or any other member of the governing board as designated by the chair shall serve on

the council. Two members ofthe council shall be elected municipal officials, at least one ofwhom shall be from the most

populous municipality in the county or subcounty special taxing district in which the tax is levied. Six members of the

council shall be persons who are involved in the tourist industry and who have demonstrated an interest in tourist

development, of which members, not less than three nor more than four shall be owners or operators of motels, hotels,

recreational vehicle parks, or other tourist accommodations in the county and subject to the tax. All members of the

council shall be electors of the county. The governing board ofthe county shall have the option ofdesignating the chair

of the councilor allowing the council to elect a chair. The chair shall be appointed or elected annually and may be

reelected or reappointed. The members of the council shall serve for staggered terms of 4 years. The terms of office of

the original members shall be prescribed in the resolution required under paragraph (b). The council shall meet at least

once each quarter and, from time to time, shall make recommendations to the county governing board for the effective

operation ofthe special projects or for uses ofthe tourist development tax revenue and perform such other duties as may

be prescribed by county ordinance or resolution. The council shall continuously review expenditures of revenues from

the tourist development trust fund and shall receive, at least quarterly, expenditure reports from the county governing

board or its designee. Expenditures which the council believes to be unauthorized shall be reported to the county

governing board and the Department of Revenue. The governing board and the department shall review the findings of

the council and take appropriate administrative or judicial action to ensure compliance with this section. The changes

in the composition of the membership of the tourist development council mandated by chapter 86-4, Laws of Florida.

and this act shall not cause the interruption of the current term of any person who is a member of a council on October

L 1996.

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ATTACHMENT D


TDC MARKETING COMMITTEE POLICIES

The current policies of the TDC concerning the creation, duties and composition of its Marketing Committee are:

The Tourist Development Council shall have a Marketing Committee, and the Council may, by a majority vote, create other committees and appoint their members.

The creation, delegation of authority to or action by a committee shall not operate to relieve the Councilor any member ofthe Council from any responsibility imposed by law or alone constitute compliance by a member with the applicable standards of conduct.

No committee of the Council may (i) authorize distributions, (ii) recommend or approve the dissolution, merger or the

sale, pledge or transfer of all, or substantially all, of the Council's assets, (iii) elect, appoint or remove members or fill

vacancies on the Councilor on any of its committees or (iv) adopt, amend or repeal the Council's Ordinance or

Resolutions.

Procedures for meetings of any committee shall be as established by the Councilor, in the absence thereof, by the committee itself.

Marketing Committee:

1. The Marketing Committee shall be composed of thirteen (13) members.

2. The Marketing Committee shall include one hotelier from a full service property, one hotelier from a limited service property and one member from a bed & breakfast/campground property.

3. Marketing Committee members shall serve a term of two years, at which time each individual member can rotate off or ask to be reappointed with approval by the TDe.

4. The Marketing Committee shall recommend candidates for each vacant position of the Committee to the Tourist Development Council. VCS staff will also place advertisements with local media outlet announcing the vacancy and application process. The TDC will then review all applications and vote to appoint all new Marketing Committee members.

5. At least sixty (60) days prior to the end of the Council's fiscal year, the TDC shall appoint the members of the Marketing Committee. The Council shall also replace any Marketing Committee member who chooses to vacate their position on the Committee.

6. The Marketing Committee shall make recommendations to the Council on future destination marketing projects as well as recommend grant funding.

7. A Marketing Committee member may be removed in the event the member misses three (3) consecutive meetings of the Committee or two-thirds (2/3rds) ofall meetings ofthe Committee held in any fiscal year. In addition, a member may be removed, with or without cause, at any time, by the Tourist Development Council.

Report No. 2012-01


ATTACHMENT E

TAX REVENUES RECEIVED

The following are tax revenues received by month the tax was collected by the dealers (hotels, motels, lessors). At present, the dealers are required to remit the tax collections to the Tax Collector by the 20th day of the following month. The Tax Collector thereafter remits to the County by mid-month of the month following remittances from the dealers. Therefore, County receives the taxes in the second month following month of collections by dealers.

Based on Month Collected by Remitter

Month

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2005

76,076

123,815

127,725

127,665

86,179

62,855

70,322

81,701

72,087

91,238

95,264

82,041

2006

117,771

139,194

129,100

98,138

86,478

90,340

80,603

69,860

80,044

89,480

106,077

73,091

2007

101,649

130,604

146,491

98,037

83,658

80,220

63,959

66,322

71,643

81,015

86,318

78,800

2008

104,293

133,029

130,113

75,803

81,702

69,518

68,476

61,208

67,557

68,911

64,150

62,134

2009

89,838

104,951

106,381

71,165

59,850

61,285

60,300

48,310

50,188

60,924

64,075

62,014

2010

82,866

101,476

124,349

77,092

60,683

64,242

68,163

58,530

53,717

64,903

66,615

63,306

2011

77,207

96,644

121,675

82,577

60,298

70,152

65,475

55,039

Totals 1,096,967 1,160,176 1,088,717 986,894 839,281 885,942 629,067

** Effective April 1,2008, Marion County Tax Collector collected from dealers and distributed to County. This had been performed by the Florida Department of Revenue from January 1,2005 through March 31,2008. The following amounts are net of the administrative fee.

Report No. 2012-01


ATTACHMENT F

VISITORS AND CONVENTION BUREAU

Financial Summary per County Finance System

FUND 117000 - TOURIST DEVELOPMENT FUND

DEPT 2870 - TOURIST DEVELOPMENT TAX

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 REVENUES

Tourist Development Tax 756,337 1,152,113 1,119,633 1,041,918 864,832 874,800 877,610

Interest 6,090 42,175 55,769 23,870 10,291 1,890 1,960

Sports Foundation 11,000 11,000

Other 1,398 2,500 5,197 3,499 632

TOTAL 762,428 1,194,288 1,176,800 1,068,288 885,517 891,189 891,202

OTHER SOURCES: Cash Balances 0 730042 1 349335 969671 495751 630318 769566

TOTAL FUNDS AVAILABLE 762,428 1,924,330 2,526,136 2,037,959 1,376,072 1,521,507 1,660,768

EXPENDITURES

Salaries and Benefits 6,693 64,376 137,929 157,988 191,874 196,740 170,009

Grants 0 276,569 487,934 250,701 123,111 55,256 37,011

Promotional Activities 2,730 144,394 767,430 971,091 322,047 399,143 430,372

Other Contractual Services 0 34,350 33,827 50,262 8,429 4,231 4,909

Rents and Leases 310 13,168 51,584 51,474 36,000 36,000 14,311

Travel and Training 0 645 10,912 5,725 4,191 8,557 9,568

All Other Expenses 22653 41493 66849 49742 60102 52013 80104

TOTAL 32,386 574,994 1,556,465 1,536,983 745,754 751,939 746,284

NET - Cash Balances 730042 1 349336 969671 500976 630318 769568 914484

Report No. 2012-01


ATTACHMENT G


FS 112.3143 - Votine conflicts. (I) As used in this section:

(a) "Public officer" includes any person elected or appointed to hold office in any agency, including any person serving on an advisory body.

(b) "Relative" means any father, mother, son, daughter, husband, wife, brother, sister, father-in-law, mother-in-law, sonin-law, or daughter-in-law.

(2) No state public officer is prohibited from voting in an official capacity on any matter. However, any state public officer voting in an official capacity upon any measure which would inure to the officer's special private gain or loss; which he or she knows would inure to the special private gain or loss of any principal by whom the officer is retained or to the parent organization or subsidiary of a corporate principal by which the officer is retained; or which the officer knows would inure to the special private gain or loss ofa relative or business associate ofthe public officer shall, within 15 days after the vote occurs, disclose the nature ofhis or her interest as a publ ic record in a memorandum filed with the person responsible for recording the minutes of the meeting, who shall incorporate the memorandum in the minutes.

(3)(a) No county, municipal, or other local public officer shall vote in an official capacity upon any measure which would inure to his or her special private gain or loss; which he or she knows would inure to the special private gain or loss of any principal by whom he or she is retained or to the parent organization or subsidiary ofa corporate principal by which he or she is retained, other than an agency as defined in s. 112.312(2); or which he or she knows would inure to the special private gain or loss ofa relative or business associate of the public officer. Such public officer shall, prior to the vote being taken, publicly state to the assembly the nature of the officer's interest in the matter from which he or she is abstaining from voting and, within 15 days after the vote occurs, disclose the nature of his or her interest as a public record in a memorandum filed with the person responsible for recording the minutes of the meeting, who shall incorporate the memorandum in the minutes.

(b) However, a commissioner ofa community redevelopment agency created or designated pursuant to s. 163.356 or s. 163.357, or an officer of an independent special tax district elected on a one-acre, one-vote basis, is not prohibited from voting, when voting in said capacity.

(4) No appointed public officer shall participate in any matter which would inure to the officer's special private gain or loss; which the officer knows would inure to the special private gain or loss of any principal by whom he or she is retained or to the parent organization or subsidiary of a corporate principal by which he or she is retained; or which he or she knows would inure to the special private gain or loss of a relative or business associate of the public officer, without first disclosing the nature of his or her interest in the matter.

(a) Such disclosure, indicating the nature of the conflict, shall be made in a written memorandum filed with the person responsible for recording the minutes of the meeting, prior to the meeting in which consideration of the matter will take place, and shall be incorporated into the minutes. Any such memorandum shall become a public record upon filing. shall immediately be provided to the other members of the agency, and shall be read publicly at the next meeting held subsequent to the filing of this written memorandum.

(b) In the event that disclosure has not been made prior to the meeting or that any conflict is unknown prior to the meeting, the disclosure shall be made orally at the meeting when it becomes known that a conflict exists. A written memorandum disclosing the nature of the conflict shall then be filed within 15 days after the oral disclosure with the person responsible for recording the minutes of the meeting and shall be incorporated into the minutes of the meeting at which the oral disclosure was made. Any such memorandum shall become a public record upon filing, shall immediately be provided to the other members of the agency, and shall be read publicly at the next meeting held subsequent to the filing of this written memorandum.

(c) For purposes ofthis subsection, the term "participate" means any attempt to influence the decision by oral or written communication, whether made by the officer or at the officer's direction.

(5) Whenever a public officer or former public officer is being considered for appointment or reappointment to public office, the appointing body shall consider the number and nature of the memoranda of conflict previously filed under this section by said officer

HislOry.- s. 6. ch. 75-208; s. 2, ch. 84-318; s. I, ch. 84-357; s. 2, ch. 86-148; s. 5, ch. 91-85; s. 3, ch. 94-277; s. 1408, ch. 95-147; s. 43, ch. 99-2

Report No. 2012-01

clerk of the circuit court - amazon web services...marketing committee as part ofthe final plan...

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