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2001-24621 RESO RESOLUTION NO. 2001-24621 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROVING THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (VCA) FISCAL YEAR 2001/2002 BUDGET IN THE AMOUNT OF $ 1,121,073. WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) was created pursuant to Chapter 67-930 of the Laws of Florida and Sections 102-246 through 102-254 of the City of Miami Beach Code; and WHEREAS, the VCA's mission is to support, maintain and develop quality programs, which generate, satisfy and enhance the year-round tourist attractiveness of Miami Beach; and WHEREAS, the VCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships; and WHEREAS, the VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as ones of the world's greatest communities and tourist destinations; and WHEREAS, pursuant to its enabling legislation, the VCA's budget for each fiscal year shall be approved by the Mayor and Commission; and WHEREAS, accordingly, the VCA recommends approval of the proposed budget for Fiscal Year 2001/2002 in the amount of$I,121,073, to continue implementation of its programs. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission adopt the Miami Beach Visitor and Convention Authority's Fiscal Year 2001/2002 budget, in the amount of$ 1,121,073. PASSED AND ADOPTED THIS 21st DAY OF September ,2001. ATTEST: APPROVED 1>$ TO FORM & LANGUAGE & FOR EXECUTION ~k' r(Jft.~ CITY CLERK 1'1~ ~ )0-01 0(11. Miami Beach Visitor and Convention Authority Proposed Budget FY 2001/2002 TOTAL REVENUES: Projected 2% Resort Tax Collections per Finance Department: $1,121,073 EXPENDITURES Proposed Approved Budget Budget FY2001-2002 FY2000-2001 VCA Administration i. Director (salary + Iringe/25%) (approx. $58k + $12k) $ 123,000.00 $ 120,000.00 ii. Administrative Assistant (approx. $28k + $7.5k fringe) Hi. Office Expenses (approx. $17.5k) Tourism Advancement Grants Program Yearlona Grant Cateaories i. Tourism Partnerships $ 48,073.00 $ 50,800.00 v. Cultural Tourism Joint Funding Program $ 55,000.00 $ 48,000.00 (with the Miami Beach Arts Council) **vi. Low-Season Marketing $ 100,000.00 $ 100,000.00 Quarterlv-based Grant Cateaories ii. Special Events (recurring) $ 232,400.00 $ 175,000.00 1st Quarter $ 45,000.00 2nd Quarter $ 45,000.00 3rd Quarter $ 45,000.00 4th Quarter $ 40,000.00 iii. Major Event (New or One- Time)*** $ 185,000.00 $ 185,000.00 1st Quarter $ 50,000.00 2nd Quarter $ 50,000.00 3rd Quarter $ 45,000.00 4th Quarter $ 40,000.00 iv. Development Opportunities $ 125,000.00 $ 125,000.00 1st Quarter $ 35,000.00 2nd Quarter $ 35,000.00 3rd Quarter $ 30,000.00 4th Quarter $ 25,000.00 New Investment CategorieslStrategic Initiatives i. Destination Marketing $ 150,000.00 $ 125,000.00 ii. Tourism Related Research & Development Projects $ 52,600.00 $ 52,600.00 Projected Cash Flow Reserve $ 50,000.00 $ 50,000.00 PROJECTED RESORT TAX ALLOCATION $ 1,121,073.00 $ 1,031,400.00 TOTAL EXPENDITURES $ 1,121,073.00 $ 1,031,400.00 m. Special Projects $ $ 143,920.32 PROJECT RESERVE/CASH FLOW FUND $ $ 143,920.32 TOTAL PROPOSED BUDGET $ 1,121,073.00 $ 1,175,320.32 Exhib,+ It Miami Beach Visitor and Convention Authority Proposed Budget FY 2001/2002 TOTAL REVENUES: Projected 2% Resort Tax Collections per Finance Department: $1,121,073 EXPENDITURES Proposed Approved Budget Budget FY2001-2002 FY2000-2001 VCA Administration I. Director (salary + fringe/25%) (approx. $58k + $12k) $ 123,000.00 $ 120,000.00 ii. Administrative Assistant (approx. $28k + $7.5k lringe) iii. Office Expenses (approx. $17,5k) Tourism Advancement Grants Program Yearlong Grant Cateaories i. Tourism Partnerships $ 48,073.00 $ 50,800.00 v. Cultural Tourism Joint Funding Program $ 55,000.00 $ 48,000.00 (with the Miami Beach Arts Council) 1O*vl. Low-Season Marketing $ 100,000.00 $ 100.000.00 Quarterlv-b;:u;ed Grant C:::Iteoories ii. Special Events (recurring) $ 232,400.00 $ 175.000.00 1 st Quarter $ 45,000.00 2nd Quarter $ 45,000.00 3rd Quarter $ 45,000.00 4th Quarter $ 40,000.00 Iii. Major Event (New or One- Time)*** $ 185,000.00 $ 185,000.00 1st Quarter $ 50,000.00 2nd Quarter $ 50,000.00 3rd Quarter $ 45,000.00 4th Quarter $ 40,000.00 iv. Development Opportunities $ 125,000.00 $ 125,000.00 1 sf Quarter $ 35,000.00 2nd Quarter $ 35,000.00 3rd Quarter $ 30,000.00 4th Quarter $ 25,000.00 New Investment Categories/Strategic Initiatives i. Destination Marketing $ 150,000,00 $ 125,000.00 Ii. Tourism Related Research & Development Projects $ 52,600.00 $ 52,600,00 Projected Cash Flow Reserve $ 50,000.00 $ 50,000.00 PROJECTED RESORT TAX ALLOCATION $ 1,121,073.00 $ 1,031,400.00 TOTAL EXPENDITURES $ 1,121,073.00 $ 1,031,400.00 iii. Special Projects $ $ 143,920.32 PROJECT RESERVEICASH FLOW FUND $ $ 143,920.32 TOTAL PROPOSED BUDGET $ 1,121,073.00 $ 1,175,320.32 Detail of Administration Costs Administration $ 123,000.00 Director $ 58,260.00 Administrator $ 28,860.00 Fringe benefits $ 19,500.00 Professional Services Telephone $ Postage $ 400.00 Equipment rental $ Printing $ 2,000.00 Advertising $ 600.00 Office Supplies $ 3,000.00 Other operating $ 1,880.00 Memberships $ 300.00 Promotion Travel $ 3,000.00 Local mileage Capital Central Services Property Management Communications Self insurance Computers $ 4,000.00 Property/Electric Payroll Fee $ 1,200.00 CITY OF MIAMI BEACH m 1700 Convention CenterDrive, Miami Beach, FL 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM TO: Mayor Neisen O. Kasdin and Members of the City Commission DATE: September 21, 2001 FROM: J~ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROVING THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (VCAl FY 2001/2002 BUDGET IN THE AMOUNT OF $1,121,073 Jorge M. Gonzalez City Manager SUBJECT: ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS The Miami Beach Visitor and Convention Authority (VCA) was created and exists pursuant to Chapter 67-930 of the Laws of Florida and Sections 102-246 through, and including 102-254 of the Code of the City of Miami Beach. The VCA is a seven member authority. Each member is appointed by the City of Miami Beach Commission, with the goal of encouraging, developing and promoting the image of Miami Beach locally, nationally and internationally as a vibrant community and tourist destination. To this end. the VCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships. The VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourism destinations. FY 2000/2001 Review/Tourism Advancement Program The VCA Tourism Advancement Program helps promote Miami Beach as a sophisticated tourist destination through the allocation of grant funds to events or programs of work that enhance tourist attractiveness. In fiscal year 2000/2001, the program allocated funds in one of six categories, including: Tourism Partnerships, Special Events Recurring, Major One Time Event. Cultural Tourism, Development Opportunities and Low Season Marketing. The Tourism Advancement Program awarded $720,220 in fiscal year 2000/2001, a 60% increase from fiscal year 1999/2000. These funds helped maintain worthwhile tourism incentives such as the Latin Billboard Awards, The Miami Beach Watersports Center and supported new events on Miami Beach, such as the JVC Jazz Festival and the World Music Festival. AGENDAITEM~ DATE - September 21, 2001 Commission Memorandum VCA Budget FY 2001/2002 Page 2 Marketing The Destination Marketing Campaign continued in fiscal year 2000/2001 to focus on increasing tourism in Miami Beach through cooperative efforts with the Greater Miami Conventions and Visitors Bureau (GMCVB), the City of Miami Beach (CMB) and other community and civic organizations. The campaign for the upcoming fiscal year 2001/2002 will continue that focus and, will stimulate awareness about Miami Beach with the general public, potential tourists. and travel industry professionals. The campaign is based on market research compiled by Strategy Research Corporation, requests and responses from other community, civic organizations and the CMB. According to the Strategy Research Corporation, there were 10.1 million overnight visitors to Miami and the Beaches in 2000. Of the 10.1 million overnight visitors, 40% (404,000) stayed on Miami Beach, 67% (676,700) visited the South Beach area and 17% (171,700) visited Lincoln Road. For fiscal year 2001/2002, the VCA has recommitted to 1) producing a Miami Beach Summer 2002 brochure, 2) an advertising placement campaign and 3) a live radio promotion with the GMCVB as part of its' ongoing commitment to promoting the low season. The VCA is committed to producing marketing opportunities that will enhance this campaign. The campaign will use a wide variety of media including: Internet, magazines, newspapers and radio. Programs inClude co-op advertising with the GMCVB, which will allow the VCA to leverage its limited advertising dollars. Festival Season The VCA, the CMB, the GMCVB and the Miami Beach Chamber of Commerce Travel and Tourism Committee, (MBCC) created an aggressive collaborative destination marketing campaign for the upcoming summer season. The alliance brought together professionals from Miami-Dade County and the CMB who, through their collaboration, developed comprehensive long-term marketing strategies designed to communicate the desirability of traveling to Miami Beach in the low-season of May through September. The campaign included the development of a new brand identity and advertising platform for the low-season that resonated with consumers, tourists, event producers and travel industry professionals. It included the creation of new events and new opportunities for producing events during the low-season. The ultimate goal is to transform current concepts about the summer season. The VCA and its partners are committed to driving new business, increased visits, new experiences and an enhanced image for the CMB during what has traditionally been the low- season with the expectation of significant positive economic impact for hoteliers, restaurateurs, and local businesses. The campaign was designed to appeal to both consumers/tourists and event producers. New looks, logos, tag lines and images as well as venue cost reductions and resource information are expected to encourage event producers to actively consider Miami Beach as a location to host their events during the low-season. A parallel goal is to entice tourists to visit Miami Beach during the summer season, with information about summer rates and activities and events. V:/SHARED/FY OI-Q2IBUDGET COMMISSION MEMORANDUM September 21, 2001 Commission Memorandum VCA Budget FY 2001/2002 Page 3 Turkel and Schwartz was retained by the GMCVB to develop and create a logo and tagline and collateral piece to brand the low-season. The piece was advertised nationally in all Knight Ridder publications. Knight Ridder currently has 28 publications and over 50 affiliate newspapers. 2001/2002 Tourism Advancement Program Grant funding for fiscal year 2001/2002 reflects an approximately 28% increase, or a total of $166,673 from fiscal year 2000/2001. The monies will be awarded in our Tourism Advancement Program in six categDries, including: Tourism Partnerships, Special Events (Recurring), Special Events (New or One-Time), Development Opportunities, Cultural Tourism and Festival Season. The grant application was streamlined in the fiscal year 2000/2001. The changes were designed to make the applications more accessible and readable for VCA applicants. Grants were determined on a quarterly basis to ensure better funding allocation throughout the fiscal year. A corrections period of approximately one week was added to the timetable to provide counseling to applicants to ensure the application is in best form. The application went through many revisions to better evaluate the strengths and weaknesses of the proposed projects, placing high importance on publicity and economic impact. The revised applications include more background information about the events themselves, event producers, and require significant additional documentation. The applications are web-friendly, and could be sent over email, or downloaded from the VCA website. Marketing The destination marketing allocation reflects a 20% increase, or $25,000, from fiscal year 2000/2001. This allocation includes the VCA portion of production of the Miami Beach Summer 2002 brochure, radio, magazine and newspaper advertisements. In addition, the VCA played a decisive role in developing what is now called "Festival Season." The efforts of destination marketing on behalf of the VCA board, in conjunction with several partners, including the GMCVB, the CMB. and the MBCC helped initiate this campaign which encourages potential tourists to "See and be Scene" in Miami Beach. As part of the VCA's continued outreach, the website will be enhanced, and will playa larger role as an informational tool. This marketing initiative is being strategically designed by Cre8tive Juice to better promDte the image of the VCA as a grant giving organization. The website will get the attention of event planners, and will ultimately help lure events to Miami Beach. Research and Development In fiscal year 2001/2002 the VCA will undertake several new research and development projects, including enhancing the architectural survey of the Collins Avenue Corridor in Miami Beach. The VCA is also focusing attention on facilitating the creation of summer-long events in Miami Beach. Much of these efforts will be focused on seeding the Miami Beach calendar of events in the months of May through September, during the "Festival Season." V:/SHAREDIFY 0l-02IBUDGET COMMISSION MEMORANDUM September 21, 2001 Commission Memorandum VCA Budget FY 2001/2002 Page 4 Prqjected Cash Flow Reserve The VCA has budgeted $50,000 in the cash flow reserve in fiscal year 2001/2002. The $50,000 cash flow reserve reflects a 0% increase from fiscal year 2000/2001. The City of Miami Beach allots resort tax payments to the VCA a month after its collection. Therefore the VCA has built in a $50,000 projected cash flow reserve to its' budget to ensure that all grants awarded will have the necessary funds to be reimbursed upon proper request and documentation. Special prqjects The VCA expects to support new initiatives in FY 2001/2002 at the request of partners and community and resort leaders. Strategic plans, goals and initiatives will be developed after consulting with all partners and as the result of on-going communications. Some of these initiatives include the implementation of summer long events on Miami Beach, including - but not limited to - supporting a food and wine festival. The VCA is enhancing its website that will give event producers easy access to essential information about the grant giving process and a downloadable application. The website also gives tourists the web links they need to enjoy their stay on Miami Beach. The VCA is also taking a leadership role in encouraging events of mass appeal to take place in Miami Beach. Strategic goals and initiatives will be developed through consultation with partners and continued outreach. Administration and Overhead The VCA's administrative and overhead costs are budgeted at $123,000 for the fiscal year 2001/2002. The $123,000 administration and overhead allocation reflects an approximately 2% increase from fiscal year 2000/2001. This figure is inclusive of the office space and equipment, and a fully staffed VCA administrative office. Conclusion It is recommended that the Mayor and Commission should adopt the 2001/2002 budget in the amount of $1,121 ,073, as setforth in Exhibit A. JMG/C~/GR -@; V,/SHAREDIFY OI-02IBUDGET COMMISSION MEMORANDUM