Item O2 02
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
April 17, 2024
Agenda Item Number: 02
2023-2358
BULK ITEM: No DEPARTMENT: County Attorney
TIME APPROXIMATE: STAFF CONTACT: Bob Shillinger
AGENDA ITEM WORDING: Presentation on the overview of the Tourist Development Council
(TDC).
ITEM BACKGROUND:
The County Attorney's Office will present a primer on the statutory requirements for having a Tourist
Development Council(TDC) and various options for fulfilling those requirements. The TDC is a
statutorily required advisory board to the County Commission. The TDC's mission is to help manage
tourism, the County's leading industry, through various expenditures of the 4 penny Tourist
Development Tax (TDT) that is imposed on overnight stays in local lodging.
Section 125.0104 of Florida Statutes sets forth the basic requirements for levying and expending the
TDT. Sections 23-197 through 23-203 of the Monroe County Code implement those statutory
requirements and embody some local policy choices. The presentation will cover the statutory
requirements and those local policy choices.
Topics to be covered include the membership composition of the TDC, the applicable rules of ethics,
the permissible uses and requirements for expending TDT dollars, the tourist management plan set by
the BOCC by Code which allocates pennies and percentages of the TDT dollars and the staffing options
for supporting the TDC.
PREVIOUS RELEVANT BOCC ACTION:
The Board has enacted the following Ordinances since 1988:
Ord. No. 15-1988; Ord. No. 17-1988; Ord. No. 3-1990; Ord. No. 5-1990; Ord. No. 17-1990; Ord. No.
26-1990; Ord. No. 28-1990; Ord. No. 19-1991; Ord. No. 3-1993; Ord. No. 20-1993; Ord. No. 20-
1994; Ord. No. 45-1995; Ord. No. 50-1996; Ord. No. 31-1998; Ord. No. 38-1999; Ord. No. 052-
2000; Ord. No. 022-2004; Ord. No. 019-2006; Ord. No. 006-2008; Ord. No. 004-2009; Ord. No. 009-
2010; Ord. No. 033-2012; Ord. No. 017-2014; and Ord. No. 11-2023.
3458
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATION: None at this time.
DOCUMENTATION:
FINANCIAL IMPACT:
3459
Overview of the TDC
April 17, BOCC Meeting
Bob Shillinger, County Attorney
Christine Limb ert-Barrows,
Sr. Assistant County Attorney
Summary Membership of the TDC & DACs
Permissible Uses of TDTs
Tourist Management Plan
Structure of TDC- Current & Options
TDC Membership per F.S. 125 . 0104(4) (e ) :
Composed of nine (9) members who shall be appointed by the governing board/BOCC.
• One (1) BOCC chair or designee
• Two (2) elected municipal officials,
• At least one shall be from the most populous municipality in the county
• Six (6) members shall be persons who are involved in the tourist industry
• demonstrated an interest in tourist development
• 3 to 4 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 shall be electors of the county.
4 year staggered terms.
TDC Chairperson
BOCC shall have the option of designating the chair of
the council or allowing the council to elect a chair.
(Currently. the TDC elects a chair per Code)
The chair shall be appointed or elected annually and
may be reelected or reappointed.
Tourist Development Tax Collection Districts
DISTRICTS Sec. 23-199 (g) The geographical boundaries of the tax collection districts:
District I shall encompass the city limits of Key West
District II shall be from the city limits of Key West to the west end of the Seven
Mile Bridge
District III shall be from the west end of the Seven Mile Bridge to the Long Key
Bridge
District IV shall be between the Long Key Bridge and Mile Marker 90.939; and
District shall be from Mile Marker 90.940 to the Dade/Monroe County line
and any mainland portions of Monroe County.
Additional TDC Membership requirements
per County Code Section 23- 199
• Eight (8)members (not BOCC member) shall be appointed by the BOCC based
on % of funds collected in the five Districts
• Each District shall have at least 1 than one representative on the council.
• Each District must have 1 of the 6 tourism industry members.
• About % of the TDT collected in DAC I (KW) so 4 members are from DAC I
• 2 elected municipal members
• 2 industry members
TDC Vacancies & Removal
Statute
All vacancies shallbe filled by a person who is also qualified under F.S. § 125.0104(4)(e).
A seat shall also be considered vacant when a member is no longer an owner, operator,
partner, employee or director of a lodging or tourist-related business in that district.
County Code
Absences: 3 unexcused at consecutive meetings or total of 4 in a fiscal year.
Seat automatically deemed vacant
New appointee fills remainder of the term vacated
The Code doesn't specify removal grounds other than for absence or leaving position.
Other boards serve at the pleasure of the BOCC.
The Five District Advisory Committees
• Each DAC is comprised of 9 members serving 3-year terms
• 3 from the lodgingindustry
• Recommended by that district's nominating committee
• Appointed by TDC
• 3 from tourist-relatedi in the district
• Recommended by the district's nominating committee
• Appointed by TDC
• public
• Live or work in that district.
• Appointed by the BOCC
Code of Ethics applies to TDC/DAC Members
F.S. 112.313 - Standards of Conduct
(2) Solicitation of Gifts
(3) Doing business with own agency
(4) Unauthorized compensation
(6) Misuse of position
(7) Conflicting contractual relationship
(12) Ill iiriri�Illstiiiriirs fiio iiri��o '' 7 ,o ii ad iisoii Ilror.iid ii iirir Ilriirw;s
111113 gym' CC.fo iir ,IIII't �& IlDAC a.t large irin e in Ib iir s
I.Ilit C fc)r DA Cindustiry errIber's
F.S. 112.3148 & MCC 2-429 - Voting Conflicts
F.S. 112 .313 ( 12 ) exemption for advisory
board members
TDC Members Can Legally & Ethically Work
for Businesses that receive TDC funds
• Waivers of Standard of Conduct Form 4A
Disclosure of Business Transaction, Relationship
or Interest are completed per the Florida Code
of Ethics.
• We've recently done a review of TDC and DAC
members and with the assistance of TDC
administrative staff have updated forms for
members as needed.
Authorized Advertising and Promotion of the Florida Keys&Key West
uses of Capital Proiects:
Tourist
Development Only for Permissible Facilities: Sports Complex, Sports Stadiums,
Auditoriums, Zoological Parks, Nature Centers, & Museums
Tax Revenues
per F.S. Beach Park Facility (up to 10% in counties of few than 100,000)
12 5 .0104 Public Facilities (w/ conditions, 40% of TDTs spent on advertising)
Administrative Costs
Limitations on what TDTs can be spent on
F.S. 125.0104(5)(e)
Any use of the local option tourist development tax revenues collected
pursuant to this section for a purpose not expressly authorized by
paragraph (3)(l) or paragraph (3)(n) or of this
subsection is expressly prohibited.
Note: We don't impose tax under (3)(l) or (3)(n)- Those are for professional sports facilities or convention
centers
Tourist Development Plan - MCC 23-200
(1) The first two-cents of the four-cent tax shall be spent:
To promote and advertise Monroe County tourismin this state, nationally, and
internationally . . . ; including promotea advertise county festivals, . . . and
other tourist-related activities that have as one of its main purposes the
attraction of tourist. (advertisement r i )
The tllllf�hill r° , f iiii�tll i mints of fl r �� i�at tax shdIII IIIII be sII �iiiirii t
All of the other authorized uses per F.S. 125.0104, i.e., "bricks and mortar",
auditoriums, nature centers, museums, zoos, tourist bureaus, administrative
costs, beach park facilities, public facilities, advertise & promote the district &
events held in the district, etc. (DAC IIprojects & advertisement)
Current Structure
County contracts with non-profit entity (3406 N. Roosevelt Blvd. Corp d/b/a Visit Florida Keys)
with a board comprised solely of TDC members as the "executive director" to operate the
executive office. The Board of Directors serve due to their appointment by the BOCC to the TDC.
Visit Florida Keys employs by contract the Marketing Director - Visit Florida Keys' only contract
Contracts with agencies for advertising, public relations, website and all other contracts are
directly with County.
The (VFK) corporation has 15 employees. Employment is subject to the VFK Personnel Policies
and Procedures manual. We plan to make revisions as needed including working with Florida
Ethics Institute to incorporate best practices and make improvements to policies and to
implement training for TDC employees.
The current contract has a 120-day termination without cause provision.
Options for TDC Structure
• Maintain Visit Florida Keys corporation structure:
• Pros:
• Has worked well for many years,
• Allows for BOCC to have oversight by appointing membersto TDC that sit on corporation,
• Contract provides for corporation to provide all executive/administrative servicesfor the TDC.
• The corporation members,as TDC members,are subject to the Florida Ethics code.
• Cons:Will likely need to reviewand implement additional policies and procedures and best practices.
Notes
• We can require by contract for corporation to obtain annual audits.
• VFK Board recognizesthat need to expand by hiring a CEO& CFO/Finance Director.
• Risk Assessment Tool is underway and will recommend staffing& internal control needs.
• New Marketing Director/CEO may also be able to make improvementsto the administrative/executive
operations.
• Maintain Visit Florida Keys corporation structure, but directly contract with Marketing Director/CEO
• Pros/Cons:Same as above,but may provide direct oversight of the Marketing Director/CEO
Other Options for TDC Structure
• County Department:
• Pros: Direct oversight, employees will be subject to Florida Ethics Code
• Cons: More Government, Transition issues, lack of expertise
Update on MarketingDirector/CEO search
We have sought proposals and quotes from search firms recommended
Y
b Visit Florida and Destination Florida
To assist with a nationwide search
To assist with developing a scope/job description for the new director
To assist with composition of hiring committee
To assist with establishing criteria for applicants and evaluation criteria for hiring
committee
SearchWide Global is the lowest & recommended proposal.
Contract being drafted for CAD signature to retain
Potential Direction
1. Change selection method of TDC Chair.
2. Clarify that appointments serve at the pleasure of the BOCC
3. Policy on waivers for status conflicts under F.S. 112.313(3) & (7).
4. Tourist management plan changes
A. Adjustments to spend 1ngallocations
B. Public Facilities hold on accumulated surplus revenue (SB 1456)
5. Direction on Structure