Subject:
Title
Staff Direction, Re: Tourism Development Council’s Recommendation to Place a 12-Month Hold On Indian River Lagoon Grant Program and Lori Wilson Park Project Until End of Fiscal Year 2020-2021.
End
Fiscal Impact:
$6 million total reduction of expenditures from the Tourism Development Office Beach Improvement, Fund 1442 ($1 million reduction for the Indian River Lagoon Grant Program and $5 million reduction for Lori Wilson Park project).
Dept/Office:
Tourism Development Office
Requested Action:
Recommendation
It is requested that the Board of County Commissioners provide staff direction regarding the Tourist Development Council’s (TDC) unanimous recommendation to place Indian River Lagoon Grant Program for future grants and the Lori Wilson Park project on hold for 12 months, with the exception of expenses needed for Park maintenance and repairs. This recommendation would remove funding both items from the Tourist Development Office’s budget for the Fiscal Year 2020-2021 budget year. Both projects would be brought back to the TDC’s Beach Committee and the TDC for review next year for the Fiscal Year 2021-2022 budget.
If the Board agrees with the recommendation of the TDC to suspend spending for Lori Wilson Park, except for repair and maintenance for the next Fiscal Year, it is requested the Board further grant permission to reject all 6 submissions received to RFQ 5-19-12, Redesign of Lori Wilson Park for the reasons cited below.
If the Board rejects the recommendation of the TDC to hold on spending for 12 months for the Lori Wilson Park project, except for repair and maintenance, it is requested the Board grant permission to re-advertise revised Request for Qualifications as listed below and specify the budget level for that project (up to $5 million minus amount needed for repairs and maintenance):
- Reject all six submissions received in response to RFQ 5-19-12, Redesign of Lori Wilson Park
- Authorize Staff to Revise and Advertise a Request for Qualifications for a Redesign of Lori Wilson Park
- Appoint a Selection and Negotiation Committee Consisting of:
o Tourism Development Office Director, Peter Cranis, or Designee
o Central Services Director, Steven Darling, or Designee
o Facilities Manager, Tim Lawry, or Designee
- Authorize the County Manager, or Designee to Execute any and all resulting Contract(s) and Any Contract Related Documents upon review by the County Attorney’s Office, Risk Management, and Purchasing Services
- Authorize the County Manager, or Designee to approve all necessary Budget Change Requests
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Summary Explanation and Background:
The Tourist Development Council’s Beach Committee reviewed three potential 50-year Beach Plans (attached) that are related to the agreement with the Army Corps of Engineers (attached). Two of the beach plans show that if we continue with the current anticipated budget and do not adjust the Indian River Lagoon Grants for the future, and the Lori Wilson Park Project, the Beach Fund will be in the negative within the next several years and risk violating project cooperation agreements with the Army Corps of Engineers. This would result in loss of financial support for beach renourishment projects that could amount to multi millions of dollars. For example, in the last 20 years, the Army Corps has helped conduct beach renourishment projects in the total amount of $218 million. The TDC only had to pay $26 million of those construction costs. Having the agreement in place and a plan to make sure funds remain available to pay the Army Corps, when needed, are critical to ensure the County continues to receive the same level of support as in the past.
When the Indian River Lagoon Grant Program and Lori Wilson Park project, were included in the Beach Improvement Fund budget by the Board in 2018, it was during a time of unprecedented Tourist Development Tax collection growth. Both the grant program and park project funded as secondary priorities to beach renourishment projects. This was to account for potential reduction in expenditures to the Indian River Lagoon Grant Program and Lori Wilson Park project if a drop in TDT tax revenue were to occur. A drop in Tourist Development Tax Funds has occurred, with a projected decrease of $5.6 million (33.7%) in Fiscal Year 2020-2021
Regarding the previously issued RFQ, in July of 2019 Purchasing Services issued a Request for Qualifications for qualified firms to complete a redesign of Lori Wilson Park. At the time the RFQ was issued there was an expectation of $5M in funding for the project and the list of scope requirements was based upon that. The County received six responses to this RFQ. After RFQ submissions were received discussion was held with the City of Cocoa Beach about transferring the park to the City, which placed the awarding of the RFQ Services on hold. As discussions reconvened in 2020, they were again put on hold due to the COVID-19 pandemic.
There are several reasons that Purchasing Services is recommending the Board reject all proposals received and authorize a new advertisement (if the recommended hold on spending is rejected). Those reasons are:
- The new recommendation from the TDC that all spending for the Lori Wilson Park project be suspended for 12 months;
- The substantial amount of time that has passed since these responses were submitted (10 months);
- The potential for a significant adjustment of available funds and the timing in which those funds may be available (immediately or delayed);
- The timeline as outlined in the original RFQ was based on achieving substantial completion by September 2021 in preparation of an October 2021 Air Show (which may now be happening in April 2021); and
- The Scope of Work has changed and is no longer applicable and needs to be revised.
If approved, Purchasing Services will work with The Tourism Development Office to revise the Request for Qualifications and re-advertise in accordance with Policy.
Clerk to the Board Instructions:
Please send Board memo to Director, Tourism Development Office.