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99-23059 RESO RESOLUTION NO. 99-23059 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR 1998/99 BUDGET FOR THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (VCA), IN THE AMOUNT OF $829,844. WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) is a tourist development authority established pursuant to the provision of Chapter 67-930, Laws of Florida, 1967, and Miami Beach City Code Chapter 102, Article 4, entitled "Visitor and Convention Authority"; and WHEREAS, Section 102-251 (a)(3) requires that the VCA annually prepare and submit a budget for the expenditures of the portions of the Resort Tax allocated to the VCA; and WHEREAS, accordingly, the VCA has submitted the attached FY 1998/99 budget to the City of Miami Beach for approval by the Mayor and the City Commission. 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 hereby approves and adopts the attached Fiscal Year 1998/99 revenue and expense budget for the Miami Beach Visitor and Convention Authority, in the amount of $829,844. PASSED AND ADOPTED this 3rd day of February 1999. ~~ MAYOR ATTEST BY: Ubr r~ CITY CLERK APPROVED ,4.5 TO FORM & LANGUAGE & FOR EXECUTION f: lfi na I$dirlgeorgiel vCaJ"cso2. wpd 1l~ .J ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 tp :\\ci.miami-beach.f1.us ;ITY OF MIAMI BEACH COMMISSION MEMORANDUM NO. ,\ 2-tl5- TO: Mayor Neisen O. Kasdin and Members of the City Co mission DATE: February 3, 1999 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUTI N OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE VISITOR AND CONVENTION AUTHORITY (VCA) BUDGET FOR FISCAL YEAR 1998- 1999IN THE AMOUNT OF $854,844. RECOMMENDATION: Adopt the Resolution. BACKGROUND: Pursuant to Ordinance 93-2829 and Section 102-251(3) of the Code of the City of Miami Beach, the VCA must submit to the City Commission annually a budget for the expenditures of the portion of the resort tax allocated to the Authority. The budget must specify, "with particularity, the expenditures anticipated and proposed to be made by the authority; and no budgetary provisions shall be made in broad or all-inclusive terms; and such proposed budget shall be in conformity with the requirements for a line-by-line budget." Additionally pursuant to the ordinance, the city commission's review and approval of the authority's budget should be limited solely to a determination of the legality of the proposed expenditures. It should also be noted that pursuant to a resolution of the VCA adopted January 6, 1994, payments required to be made to the VCA under Section 102-251 of the Code of the City of Miami Beach are deemed satisfied to the extent such payments are made to the Greater Miami Convention and Visitors Bureau. CONCLUSION: Therefore, it is recommended that the Mayor and City Commission adopt the FY 1998-1999 VCA Budget in the amount of $854,844. SR:.:GE AGENDA ITEM 8,C '2-3-9.9. DATE MIAMI BEACH VISITOR AND CONVENTION Al./THORITY (VCA) MIAMI BEACH VISITOR AND CONVENTION AUTHORITY FY1998-99 REVISED BUDGET SUBMISSION BEVENUES: Account Reserve BalanCe/Carry-over from FY98 Resort Tax Revenues (VeA Share) FY99 Increase in VCA Share of Resort Tax Revenues City of Miami 8e!lCh Match to FY99 Resort Tax Increase Transfer from General Fund $167,344 $637,500 $25,000 $25,000 .subject to City Commission Approval -($200,000) .. Recommended to bo appropriated to CulbJral Arts CouneR in f'(9g ==-:r:---'" - TOTAL REVENUES $a5~.z~ EXPENDITURES: Cash Flow reserve VCA Ac2ministration VCA Office I Overhead & mIse. expenses Grants Administration Transfer to Miami Beach Cultural Arts Council for grants Tourism Advanclilment Grants and Projects General Fund Appropriation to Cultural Arts Council $75,444 $46,400 $8,000 $25,000 $300.000 $400,000 -($200,000) ==:-.i-, - Prior veA General Fund allocation rec:ommended to be approriatecl to Cultural Arts CouneR in FY99 TOTAL EXPENDITURES $854,844 -~.- . Ba&ed on the December 1996 City af Miami e"ch projections of 2% Resort Tax collections and subject to VCA renewal at paymen1S, it is estimated that in FY1998-99 the VCA will remit to the GrutBr Miami Convention and VISitors Bureau up to $6,242,912 in monthly increments. Revised; 12110198 "'00) Q) 0)' --' o CO! .!2. 0) 0)- .... u.' Q.. , CO 0') - ,..... 0') )- u. ,....., 0')' -' CO 0') )-, u.' 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"<;to "<;to "<;t-...., .. o o o o o 0') o o o o o 0') ...., Vl- ...., rcl s:: o ..-j +J ..-j '0 '0 rcl s:: rcl Q) () .~ Q) C/) Q) .j.J . :J~ ..0 U ..-j rcl l-l Q) +JiIl s:: o ..-j co u 8 > rcl () ...., ..-j ~';ri~ C)~4-I o UJ 0 - OJ z - ..0 Q) o :J ;>; rcl.j.J Q).,.; l-lU :J iIl Q) ~ Q)+J ~ E-t 0 iC +J 1998 - 1999 AGREEMENT BETWEEN CITY OF MIAMI BEACH AND THE GREATER MIAMI CONVENTION AND VISITORS BUREAU THIS AGREEMENT, is made and executed as of this '6 Ii d~y of J1'tfJtll\(I.~. 19~ by and between the CITY OF MIAMI BEACH, a municipal corporation organized and existing under the laws of the State of Florida (the City or Miami Beach), and GREATER MIA1\1I CONVENTION AND VISITORS BUREAU, INC., a Florida not-for-profit corporation (the Bureau). RECITALS: WHEREAS, the City of Miami Beach was formally a party to an Interlocal Agreement dated September 30, 1993, by and between Miami-Dade County, the City of Miami Beach, the City of Miami, the Village ofBal Harbour (the Former Agreement); and WHEREAS, the Former Agreement stood to be automatically renewed at the end of each fiscal year or, most recently, September 30, 1998, unless the City delivered vmtten notice to terminate the Agreement to the Bureau ninety (90) days prior to the end of the current fiscal term; and WHEREAS, on June 17, 1998; September 23, 1998; and October 21, 1998, respectively, the Mayor and City Commission approved extensions of the Former Agreement, said extensions also waiving the ninety (90) day notice period required to terminate the Former Agreement and giving the City, under the most recent extension, until November 30, 1998, to terminate same; and WHEREAS, by letter dated November 25, 1998, and pursuant to the most recent extension of the Former Agreement, the City advised the Bureau of its intention not to renew the Former Agreement; said Agreement effectively terminating as to the City as of the conclusion of the last extension date, or November 30, 1998; and WHEREAS, pursuant to the recommendation of the City's Finance and Citywide Projects Committee at its meeting on December 10, 1998, the Administration has negotiated the foregoing new Agreement. said Agreement having a term commencing on December 1, 1998, and ending on September 30, 1999, pursuant to the following terms and conditions, as more specifically set forth herein (this Agreement). NOW THEREFORE, the parties agree as follows: SECTION 1. CONTRACT WITH THE BUREAU. SECTION 1.01 Bureau Functions. Miami Beach hereby contracts \\lith the Bureau for the performance by the Bureau of the following tourism and convention sales and promotion functions: (a) Todevelop, promote, market, book and secure conventions, trade shows and group business; (b)- . To expand, develop and promote tourism in the domestic and world markets, through consumers, travel agents, tour operators, wholesales, airline marketing, media, advertising, and other modalities determined by the Bureau; (c) To maintain programs and services, where practical, in connection with the marketing and promotion of conventions and tourism, including convention services, tourist reservation services, and other operational and administrative programs in connection therewith; to prepare and distribute brochures, pamphlets and other advertising information, in a manner generally accepted in the tourism and convention industry, disseminating information about Miami Beach; to cooperate with segments of the private tourism and convention business community for the booking of hotel reservations, tour packages, car rentals, and other such services, and conducting activities normally provided by like convention and visitors bureaus in other parts of the nation; Cd) To engage in tourism and convention research and planning, and to conduct campaigns of information, advertising, publicity, marketing or sales relating to tourism, conventions and convention events; 2 .- (e) In general, to conduct or assist in the conducting and carrying out of any program or project designed to attract visitors and conventions within the market area of the City of Miami Beach, and to encourage and cooperate ""ith public and private organizations or groups, hotels, motels, restaurants and other tourist related entities in their efforts to promote and attract tourists and conduct conventions to and in Miami Beach; (f) To employ, engage, compensate and discharge personnel necessary to carry out the foregoing functions, and to budget, administer and implement the funds received by it; (g) To accept, receive and expend private monies, gifts, fees, revenues and donations, in addition to the public funds transferred to it by the terms of this Agreement; (h) To enter into contract with agencies, corporations, persons, or other entities to accomplish any or all of the above; (i) To perform any other function reasonable related to the policy and purpose of this Agreement; U) To the maximum extent possible provide economic opportunities to all businesses through the Bureau's acquisition of goods and services; (k) To develop a Strategic Tourism Plan; (1) To involve in Bureau activities to the maximum extent possible policy makers of Miami Beach; (m) To host the "1999 Pow Wow Night", to be held on Lincoln Road in South Beach on May 19, 1999, based on the existing joint financial contribution by the City and the Visitor and Convention Authority (VCA) to the Bureau as follows: that said contribution, in the agreed amount of$175,000, shall result in no reduction in the scope of the proposed event; that said existing contribution from the City and the VCA shall be equal to the level of funding previously provided by the City and the VCA to the Bureau, such that the proposed" 1999 Pow Wow Night" shall result in an event of comparable ., ,) scope and quality as the" 1994 Pow Wow" event, previously held on Ocean Drive in South Beach; and that said contribution shall comprise the City's total obligated pledge to the Bureau, toward sponsorship of the proposed event. Miami Beach acknowledges that priority for booking shall be given to convention and group business that results in hotel room occupancy. SECTION 1.02 Reports. Records and Evaluation. The Bureau agrees: ( i ) t 0 provide to Miami Beach, within ninety (90) days after the end of the fiscal year of the Bureau during the Term of this Agreement, an annual audited report covering the receipt and expenditure of public and private funds, prepared by an independent certified public accountant, in accordance with generally accepted accounting principles and practices consistently applied; (ii) to prepare and submit to Miami Beach, a copy of the Bureau's budget for said fiscal year; (iii) to submit an Annual Report to Miami Beach before the end of October, 1999; (iv) to permit Miami Beach to carry out monitoring and evaluation activities in such manner as will effectively insure the cooperation of the Bureau and its Board of Directors in the performance of the Bureau's functions, so long as such inspection and monitoring does not unreasonably impede or interfere with the functions of the Bureau, and such monitoring and evaluation activities may include inspection of records of all expenditures from public and private funds; (v) to provide to Miami Beach such reports as may be reasonably requested by it, and to provide, nor less often than quarterly, an activity and financial report, setting forth generally the activities of the Bureau during the previous quarter; (vi) to permit Miami Beach to conduct, at its own expense, a full and detailed annual audit of the Bureau's records to determine how the Bureau utilized public money contributed under this Agreement and to permit Miami Beach to conduct, at its own expense, quarterly inspections of the Bureau's records to the extent that those records relate to public funds. Any such audits or inspections shall be conducted in such manner and at such times so as not to unreasonably interfere with the day to day operations of the Bureau. In order to satisfY the provisions of this Section l.02, the City and the Bureau herein agree and acknowledge that said provisions shall survive the Term of this Agreement, as set forth herein. 4 SECTION 1.03 Compliance with Law. The Bureau shall comply with all applicable laws of the Federal, State and local governments relating to its activities. SECTION 1.04 Status of Bureau as Independent Contractor: Indemnification. The parties hereto understand and agree that the relationship of the Bureau and Miami Beach is that of an independent contractor. In carrying out its fimctions under this Agreement, the Bureau is not, nor shall it ever be construed as, the agent or representative of Miami Beach, and this Agreement is not intended to establish a partnership, a joint venture. or the relationship of principal agent. The Bureau shall indemnify and hold harmless Miami Beach from any claims, suits, demands or liability, of whatever nature, brought by others wherein Miami Beach is made a party, through suit, claims, demands or otherwise, arising out of any activity of the Bureau under this Agreement. The Bureau shall take out and maintain adequate liability insurance, in reasonable amounts, consistent with general practices in the industry, insuring against those types of claims, suits, demands normally covered by liability insurance relating to convention and visitors bureaus, and shall name Miami Beach as co-insured by endorsement. Policies or certificates of such insurance shall be remitted to Miami Beach upon execution of this Agreement by the parties hereto. SECTION 1.05 The Bureau Board of Directors. The Bureau shall be managed by a Board of Directors, having such number of members and such composition as may be determined from time to time by the Bureau. Such Board shall be representative of the hotel and visitor industry and shall reflect the ethnic and multi-cultural nature of the community recognizing that industry involvement is critical. At the option of Miami Beach, the Mayor of Miami Beach or his designated representative (who shall be a member of the elected governing body of Miami Beach) shall sit as a voting member of the Board. The City Manager of Miami Beach, or his designee, shall also sit as a voting member of the Board. The Board of the Bureau may act through an Executive Committee, which shall meet bet\.veen meetings of the Board. The composition of the Executive Committee shall be determined from time to time by the Bureau. One representative, either from the governing body of Miami Beach or the City Administration of Miami Beach, shall be invited to sit as a voting member of the Executive Committee on a rotating basis for a one year term. 5 SECTION 2 FUNDfNG. SECTION 2.01 Contribution from Miami Beach. The manner in which Miami Beach will provide financial support for the purpose set forth in this Agreement shall be as follows: Miami Beach shall contribute, for the Term of this Agreement, said Term commencing on December 1, 1998, and ending on September 30, 1999 (the Term), the lesser of (i) fifty percent (50%) of the net revenues colle~tedJrom its Municipal Resort Tax, levied and collected pursuant to Chapter 67-930, Laws of Florida, and the respective municipal ordinances applicable thereto, as amended from time to time, less $250,000 annually for special events and less four percent (4%) of the gross revenues collected from its Municipal Resort Tax, which shall be deducted prior to distribution of such revenues, for collection costs; or (ii) the net revenues collected from. its above-referenced Municipal Resort Tax, less any and all payments required under any resolutions or ordinances pursuant to which bonds or other indebtedness of the City of Miami Beach are issued which are secured by the Resort Tax, and less $250,000 annually for special events and less four percent (4%) of the gross revenues collected from its Municipal Resort Tax, which shall be deducted prior to distribution of such revenues, for collection costs. Notwithstanding the foregoing, the City's total contribution to the Bureau shall be capped at $4.5 million dollars throughout the City's Fiscal Year, said Fiscal Year commencing on October 1, 1998, and ending on September 30, 1999. Said $4.5 million dollar cap amount shall represent the net portion of the Resort Tax revenues to be received by the Bureau pursuant to this Agreement, after the distributions and deductions contemplated by subsections (i) and/or (ii) above, and the Bureau's contribution to the City, as contemplated in Section 2.02(c). Any and all monies in excess of that figure, collected pursuant to this Section 2.01, shall be distributed by the City to the VCA, in a manner consistent with Chapter 67-930, Laws of Florida, and as further provided in Chapter 102, Article IV, Section 102-251(a)(3), et. seq., of the Miami Beach City Code, as same may be amended from time to time. The City's contribution~, as described in this Section, shall only be used for purposes authorized by the Florida Local Option Tourist Development Act. 6 SECTION 2.02 Public Funds. The Bureau shall maintain public funds in an account or accounts segregated from and not commingled with any privately raised funds. (a) Method ofPavment and Disbursement. Throughout the Term of this Agreement. Miami Beach shall transfer to the Bureau its required share of the tax revenues described herein within thirty (30) days after the last day of the month in which Miami Beach received the funds. (b) Prohibited Expenditures from Public Funds. The Bureau shall not expend public funds for the following: Bureau staff travel and entertainment, except that travel and entertainment expenses for up to eighteen (18) persons whose Bureau positions appear in Exhibit A will be permitted when soliciting or promoting a major convention or corporate meeting booking or travel trade; any matters relating to the Bureau's function as an association, including but not limited to membership dues and salaries of personnel whose duties relate to membership marketing; the salary, benefits and prerequisites of the Chief Executive Officer; interest expenses on loans to the Bureau and expenses relating to activities beyond the scope of this Agreement. (c) Additionally, the City and the Bureau acknowledge that the Bureau may intend to use public funds for the construction of the Bureau's proposed headquarters and visitor center (to include a sea plane and helicopter facility), to be located on Watson Island, in the City of Miami, Florida (the visitor center or the facility). The City agrees to the use of any public funds for this purpose, only to the extent that the Bureau agrees that any City funds used for the visitor center be used solely for that purpose. Accordingly, the Bureau herein warrants, and agrees to memorialize same in any current or future agreement regarding said visitor center, that any change in use of the proposed facility, other than the stated public purpose of a visitor center (which may include the Bureau's headquarters and administrative offices as well) shall not be made without the prior written consent of the City. In the event the City does not agree to a change in use of the facility, then the Bureau shall, upon notice from the City, immediately remit any City funds 7 (i.e. the City's proportionate share) that were utilized toward the construction of said facility. Pursuant to this subsection (c), the City reserves the right to audit the Bureau to determine the City's proportionate contribution toward the construction of said facility. (d) Contribution from the Bureau to Miami Beach. In consideration of Miami Beach's Participation in this Agreement, the Bureau shall contribute to Miami Beach, throughout the Term of this Agreement, the sum of Two Million Dollars ($2,000,000), to be paid by the Bureau as follo\vs: (i) $900,000 - upon execution of this Agreement; said payment representing the Bureau's third and final contribution to\vard payment of Miami Beach's required payment on the bonds issued for the Loews Hotel Project, and pursuant to that certain Agreement between the City and the Bureau dated September 28,1995; (ii) $600,000 - to be paid prorated monthly, commencing on December 1, 1998, through June 1, 1999; and (iii) $500,000 -lump sum payment due on or before June 1, 1999. With the exception of the $900,000 payment, set forth in (i), which shall be applied by Miami Beach toward payment of its required payments on the bonds issued for the Loews Hotel Project, the remainder of the funds due from the Bureau, as set forth in (ii) and (iii) above, shall be unrestricted as to the City's use of said funds. Said funds shall be paid unconditionally by the Bureau, particularly as to the City's manner of usage of same; except that said funds shall be used by the City in a manner and for purposes consistent with Chapter 67-930, Laws of Florida. SECTION 2.03 No Impairment of Bond Obligation. In the event Miami Beach determines that the allocation of tax revenues required to be made under Section 2.01 may impair the obligation of any contractual arrangement between Miami Beach and the holders of its bonds secured by said tax revenues, said commitments by the City attached hereto as Exhibit B, Miami Beach's participation in this Agreement shall be forthwith terminated; provided, however, that in the event of such termination, Miami Beach shall continue to be bound by any prior committed contract, convention reservation or other commitment duly made by the Bureau during and up to the end of the Term 0 f this Agreement. 8 SECTION 3 Public Records and Open Meetinfl Policy. The Bureau shall adhere to the policy attached as Exhibit C to this Agreement regarding access to its Board of Directors and Executive Committee meetings as well as its corporate records. SECTION 4. Duration of this A~reement. The Term of this Agreement shall commence on December 1, 1998, and terminate on September 30, 1999 (the Term). Notwithstanding the foregoing, Miami Beach may terminate this Agreement at any time, upon thirty (30) days \VTitten notice to the Bureau, in [he event that the Bureau fails to providJMiami Beach \vith its required monetary contributions, in the manner as se[ forth in Section 2.02 (I) herein or, in the sole discretion of Miami Beach, fails to comply with any of the other terms and conditions set forth in this Agreement. Upon receipt of said \VTitten notice from the City, the Bureau shall have seven (7) days within which to cure the default(s) set forth therein. In the event that said default(s) is not cured within" the aforestated cure period, this Agreement shall terminate \Vith no further notice from the City required; said termination effective thirty (30) days from the date of the City's written termination notice; and the City shall have no further liability under this Agreement. In order to equalize the cash flow of resort taxes to Miami Beach, the City enacted Section 102-251 of the Miami Beach City Code, which provides for a witWlolding or deferral of accrued payment to the Bureau until May of each year. In the event of a termination of this Agreement prior to the end of its Term, the money owed to the Bureau is the amount described in Section 2.01 above and not the lesser amount due to a withholding or deferral of payments pursuant to Section 102-251 of the Miami Beach City Code. Similarly, in the event of termination of this Agreement on or before May 31, 1999, the Bureau shall pay to the City'the pro-rated amount due at the time of termination of the required contributions set forth in Section 2.02(d)(ii) and (iii). SECTION 5 Goods & Services. The Bureau shall procure goods and services on a competitive basis and shall provide opportunities for African American, Hispanic American and women o\vned businesses and services. SECTION 6 Notices. All notices, demands and requests which are given by the parties shall be in writing and shall be deemed to be properly given ifsent by United States mail, postage prepaid, addressed as follo\vs: 9 As to Miami Beach: Attention: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 With copies to: City Attorney City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 As to the Bureau: Attention: President Greater Miami Convention & Visitors Bureau 701 Brickell Avenue, Suite 2700 Miami, FL 33131 Any such names and addresses may be changed at any time upon the giving of written notice of such change sent by United States mail, postage prepaid, to the other parties affected by the change. A copy of any notice sent by one party to another shall be sent to all other parties noted above. SECTION 7. Entire Agreement. This Agreement, together with all Exhibits referenced herein, represents the entire and integrated agreement between the parties. The City and the Bureau herein agree and acknowledge that that certain prior InterIocal Agreement, dated September 30, 1993, by and between Miami-Dade County, the City of Miami Beach, the City of Miami, the Village of Bal Harbour and the Greater Miami Convention and Visitors Bureau (the Former Agreement), is effectively terminated as to the City, as of November 30, 1998. Accordingly, the City and the Bureau further agree that this Agreement is intended to and shall supersede the Former Agreement and, as to said Former Agreement, the Bureau hereby waives any and all prior or existing defaults, claims or causes of actions of any nature, that the Bureau may have as to the City under said Former Agreement, and the Bureau further agrees that the City has fully performed under said Former Agreement, up to and until the termination of said Former Agreement as to the City on November 30, 1998. 10 IN WITNESS WHEREOF, Miami Beach and the Bureau have caused this Agreement to be duly executed in their name and on their behalf by their duly constituted officers, and the Bureau has caused this Agreement to be duly executed by its duly authorized corporate officers, all as of this ~ day of 'vI 991 ' . J"~uiM1-'1 Attest: CITY OF MIAMI BEACH YfJ/J!l ~rp~ City Clerk Neisen Kasdin, Mayor Attest: GREA TER MIAl\U CONVENTION & VISITORS BUREAU 1kr.52-e(~ William D. Talbert, III Acting President & CEO STATE OF FLORIDA ) ) COUNTY OF DADE ) ~ 9 The foregoing instrument was acknowledged before me this?< b day of Q,-~ ' 199*, by Mayor Neisen Kasdin and Robert Parcher, City Clerk, or their design~ respecti I ely, on behalf of the CITY OF MIAMI BEACH, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WTINESS my hand and official seal, ~,;< {, -ri,~y of;ffLlJlL ~ ' 19~5: 'i ;t;.b~(jLU I :J .etL([(tJ/{Ai~ Notary Public, State of Florida at Large Commission No.: My Commission Expires: SS: ~~l-L~~~N" NOTARY5EN '-V\j 3EAu~H ~ NOTARY Pt:BUC Sf An O~.\4P COMMISsION NO _;.. FlORIDA .'4YC()~'f;"'I1SSfON ~XP c_rJdJi'2 . . APR. 29,2COz APPROVED AS FORM & lANGUAGE & FOR EXeCUTION 11 lI~w,,-~ STATE OF FLORIDA ) ) SS: COUNTY OF DADE ) .rt.. u-.yJ 'i The foregoing instrument was acknowledged before me this I tj -day of :1;";;),,, / , 199.8, by William D. Talbert, III Acting President & CEO, and Mehdi Ghomeshi, Treasurer, or their designees respectively, on behalf of the GREATER MIAMI CONVENTION& VISITORS BUREAU, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this ~ day of .J It"'/(Nf -'f.,'7 , 1998. c:~~ 7- Not ublic, State Florida a Commission No.: My Commission Expires: ,,~) Maria R Enazqui1 *. ,*Mv COIMlIIIlcxI CC738213 '\;..:-' Explrea ApI1l29. 2002 RJAIJcw ':IA T1'OIACU1\IAGIII!I!MNnINTRLOCL.8UR 12 Miami Beach VlSitnr~Converition Authority 555 Seventeenth Street, Miami Beach, F1orid:133139, U.S.A. ---.. ME MORA.NDUlVI Vl4 FACSIMILE To: From.; Date: Subject: Pages: Members, Miami B~C ~ Lisa Cole. Chairpe Thursday, Decemb 3 1998 Comments on Draft Agreement 2 (including this) Upon initial review of the draft Agreement which was distributed by fax to you yesterday. I have the following recommendations &11 I would like you to consider for revisions: · Section 2.01. page 6, line 6, revise as follows "...time,. 1e33 :E2SG,eGg 8!t!ltl.a:Hy for 3peeiall)" e.eats $662,500 for alJocation bv the VeA and..." · Section 2.01, page 6, line 12. revise as fOllows .....Tax, and lesS $2Se.eee 8:fm~y for 3peeiaHy C""1eat:! $662.500 for allocation bv the VeA and...." · Section 6, add after the address block beginnin3 "As to the Bureau" '"As to the VCA: Attention: Chairman Miami Beacb Visitor and Convention Authority 555 17th Street Miami Beach., Florida 33139" These changes: 1) update the Agreement to account for the accurate amount of money which is being carried in the VCA's FY1998-99 budget for its activities (see attached copy of approved budget); and 2) require that any notices rcgarditlg the Agreement be sent to the VCA. Please note that still outstanding is the City COmmission's action on the additional $25.000 of City support which has been recommended for our budget this year. By copy of this memorandum. I am requesting that Harold Rosen advise us at our meeting next week regarding the legal implications of having the VCA sign this Agreement. r am concemed about this particularly since the VCA is not fully incorporated into the Agreement nor do We have some of the standard contractual rights given to other signatories (one of many examples if that the Agreement does llot provide for the VCA'~ ability to termiDate the Agreement - see Section 4 of the, Agrecmcnt). I would like Harold to advise us as'to methods - other than signing the Agreement - which the VCA could use to endorse the Agreement (such as a VeA resolution). Please carefully review this docwnent in preparation for our meeting. fc: Neisen Kasdin, Mayor and Conunissioncrs, Cit} of Miami Beach Commission Harold Rosen, VCA Attorney Sergio Rodroguez, City Manager Bill Talbert, President and CEO. Greater Miami Convention and Visitors Bureau v'Mayra Diaz-BucracavolIi, Assistant City Manager Executive Director: (305) 673-i080/Convcnlion Bw'eau: 673-7060/M~g Divi~ion: 673.7070/.'Jews ilnd Publicity Bureau: 673-7083 finance Division: 673-7050 Telex: 512316/Cilblc: MIITOllru:,.,. MmniBeach Viitor and ConwntitmAutlxJri!y Memorandum Via Facsimile To: From: Date: Subject; .:vlayra Diaz-B~t savo~' - - ~s r:.:.c.jiry Manager Lisa Cole, Ch. ' JJI" Wednesday, Janu' - 2 , 199 Commission Rcsolution Regarding the City's 525,000 Incre3Se to the VCA for FY1998-99 and Commission Resolution Approving the VCA Budget for Fl1998-99 1 (including thIS) Pages: The memo~lrtdum!resolutions and attachments that were forwarded to me regarding the City's $25,000 increllSe to the VCA for FY1998-99 and the apprO"lal of the VCA's budget for FY1998-99 accurately reflect veA action on this maner, as rcHecred in my correspondence to your office on October 6, 1998 and December 11, 1998. I would apprec~.te these items being scheduled for Commission review at the earliest opportunity. Thank you DJr keeping us apprised of the progress on thl;:se issues. cc: VCA. Members Mayor ~eisen K1Sdin, Mayor Harold Rosen, VeA .-\ttomey Natalie Casrallane, Vel',. Administrator 555 17 Street ~liam.i Beach, Flancia 33139 Phone: (305) 673-7050 FA.:"X.: (305) 532- 2119 ..... .... lVlivtn'zi &ach Vzsito'yand Con/{)ention Authority Transmittal Memo r'-" ..... :-::; ~ - - -- , '. . I"'om: Scr~io Rodri~ucz ~ City Manager, City ot MIamI Bcach Lisa Cok Chair, Miami Beach Visitor and Convl,;nlion Authorily (VCA) Tucsday, October 6. 190:\ Revised FY 19l)X-9l) VeA Budget 2, including this 1':lge To: D:ltc: Subject: Tot:11 P:lgcs: Please find attacllcd the revised FY 199:<-99 budget for the Miami Beach Visitor and Convention Authority (VCA), based on VCA action at its September 22, 1998. This budget supersedes the previous budget submitted to you 011 August 3, 1998. TIle enclosed. revised budget reflects a $25,000 addition in Resort Ta.'( revenues retained by the VCA for its FY 1998-99 budget. 111is addition would build upon itself on a yearly basis (i.e., $25,000 in FYI998-99, $50,000 in FYI999-2000, etc.). At the September 22, 1993 VCA meeting. the VCA endorsed the arrangements among the City, the Greater Miami Convention and Visitors Bureau and Miami-Dade County subject to the confirmation by the City of Mayor Neisen Kasdin's .lropose~ dollar-to-dollar match of the additional money to be retained by the VCA. As reflected in the att;lched budget. this 'would result in a tot.'ll of $50,000 in addition;ll revenues to the VCA's FY 1998-99 budget ($25,000 in additional, retained Resort Ta.'X revenues plus $25,000 in proposed. matching City funds). It is the VCA's understanding that the City's matching share would also build upon itself on a yearly basis. We would appreciate your confirming the City's matching $25,000 for FY1998-99 at your earliest con velllcnce. On behalf of the VCA, we look forw;lrd to continue to work closely with the City of Miami Be;lch to further our common goal of developing Miami Beach as one of dle world's greatest communities and tourism destination. ec: VCA Board Members / Mayor Neisen K;lsdin Mayra Di:lZ-Butbcavoli, Assistant City M~agcr Harold Rosen, Esq. 555 17th Street Miami Beach, Florida :n l)<J PhOlle: (30:1) (,n-70S0 FJcsimilc: (305) ))2-2119 01/28/99 THU 11:49 F.~! 3055322119 12/11/88 1~:44 F.~! CO~CERT ASSOC. l4IOOl IaJOOll004 lvfiami Beach V * and ContmIionAutlniJy Via_ To: From.: Date: Subject: Pa&es: Mayea DidZ-Buttaca.voli, Assistant City Manager ~ Ii f} o~'-..l1 Lisa Cole, Chair, Mia.mi Beach Visitor and Convention Auth. ) ~ QW:J Friday, December 11, t 998 Resubmission of 'lCA Bud~t for FY1998-99 4 (including this) PUr3uant to your requ~st at the December 10, 1998 YCA meeting. the following is me VCA budget: for FY 1998-99 which ha.5 been updated to reflect the most recent projections of the 2% Resort l':ax collections pro,,;ded to us by the City- Copies of previously submitted memor-anda to the office of City Manager Set'gio Rodrigut2 are also included, for your ieferenc~. Tn compliance with section 41.68 (e) of the Code of the City of Miarni Beach, we t"espc:ctfullj" ask that this budget be submitted to the City of Miami Beach Commi"ion on the no."t' available agenda for rr;:'\riew. As mentioned at our va board meeting this morning. we would likf: to reiter-ate that section 41-69 of the Code of the City ofMiarni Beach smres that "the council's review and approval of th~ authority's budget shall be limited solely to a. determination of the legality of the proposed expenditurc~,." N; always, pk3.'lc feel free to contact me at (305) 535.3226 should y'ou require any further assi:iT:IlI1ce. cc: ~fembers, Miami Beach VCA Ser:gio Rodriguez, City Manager, City of Miami Beach Patricia Walker:, DIrector:, City of Miami Beach Finance Department Harold Rosen, Esq. 7671 Co. Post-it"' Fax Note 11:1 Dale Pllone u P~one . F'u* Fax' 355 17 Street Miami BeacQ, Flotili1. 33139 Phone: (30'1) 673-1050 FA-X: (305) 532- 2119 01/28/99 THU 11:50 FAX 3055322119 12/11/98 15:44 FAX CONCERT ASSOC. @002 141002/004 MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (YCA) MIAMI BEACH VISITOR AND CONVENTION AUTHORITY. FY1998-99 REVISED BuoaeT SUBMISSION REVENUES; Account Reserve 8alancalCarry-over from FY~e Resort Tax Revenues (yeA Snare) FY9Sllnorease in VCA ShQre of Resort rex Revenues City of Miami 8each Match to FY99 Resort Tax IncreasllI Tran9fer from Get,eral Fund $187,344 $1537,500 $25,000 125,000 .subJllct to Cily Commlaelan Approval ."(S200, 000) - Recommemlell to b.lJlpropnaU!d tg Cultural Arts Counofl in FY99 TOTAL RI!VENUES $854,844 EXPENDrTURES~ Cash Flow rase(V~ VCA AdrninistraticJn VCA cmes / Overhead &. misc. expenuSi Grants Administration Trnnsfer to Miami Beach Cultural Arts Counon for grants Tourism Advancement Grants and Projects Gl'lneral Fund Appropriation to Cultural Arts Council TOTAL E:XPE!NOITURES 575,444 $46,400 S8,000 $25,000 $300,000 $400,000 -($200,000) .. PriorVCA General Fund allocation roccmm.nded to be ltpprcr1.twd fer Cultural Arts Council In FY99 $854,844 . BMed on the Decllmber 19a5 City of Miami Beach proJeetions of 2% Resort Tax coltecllons and subject to VCA renewal of payments, it i. ..rimatad that in FY19SB-S9 the VCA will remit to thQ Groatlar MI8mi Convamion and Vloltors Bureau up to 36,242,912 in mQnthly IncremClne;. Revised: 12/10/98 01/27/99 16:50 FAX ~OOl/002 Miami Beach Visitor e--Convention Authority ~55 Seventeenth Street. Miami Be:!ch. Florida 33139. U.S.A. January 26, 1999 VIA FACSIMILE Mr.. William Talbelt, Acting President Greater Miami Convention and Visitors Bureau 701 Brickell Avenue, Suite 2700 :Miami, FL 33131 Dear Bill: At our VCA meeting last Thursday morning, Assistant City Manager Mayra Diaz-Buttacavoli advised our Board that the agenda item slated to heard by the City Commission on February 3, 1999 (attached hereto for your referen.ce) was predicated upon the comrnilment of $25,000 in matching funds being retained from the Mlaini Beach Resort Tax collections which are remitted to the GMCVB through the yeA. We reitt:rated to Mayra that the commitment of these increased funds this year, and as a regular growth increment in future years, was understood and agreed to by both our Board and yours. We noted that in the YCA budget presented in the City's draft resolution as an attachment, the so-called "Increase in VCA Share of Resort Tax Revenues" is a specific revenue line item. Notwithstanding the evidence of commitment contained within the City's own draft resolution, Mayra was insistent that a separate letter of understanding between uS regarding these increased funds was needed. Therefore, please accept this letter as a statement of our formal, mutually agreed to understanding that, beginning in FY 1999 and annually in all subsequent years, the VeA is retaining an additional $25,000 in Resort Tax Revenues. Of course, this arrangement is dependent upon the overall continuation of an agreement in future years among the City, the VCA and the GMCVB regarding :Miami Beach Resort Tax Revenues. In addition, the VeA will annually be seeking a dollar-far-dollar match for these increments of growth, i,e., $25,000 additional per year, from the City of Miami Beach. Lastly, the recommended changes in language to the draft Agreement between the Greater Miami Convention and Visitors Bureau and the City of Miami Beach that we submitted to the City within 24 hours of receiving the draft language were not incorporated into the final approved document. Consequently, the terms contained in Section 2.01, page 6, lines 6 and 12, continue to misrepresent the actual financial arrangements regarding the share of Miami Beach Resort Taxes retained by the VCA for its allocation. Therefore, plea,se accept this letter as clarification of the actual tenns by which we currently and by mutual underSL:mding will continue to operate with regard to the share of Miami Beach Resort Tax Revenues retair..ed by the VCA for its allocation. Specifically, $662,500 in Nliami Beach Resort Tax: Revenues (which includes this year's increment of an additional $25,000 increase in the VCA share of Resort Revenues) is retained for allocation by the VCA in FY1998-99, not $250,000 as the Agreement language appwved by the GMCVB and the City states. E~ccutive Di;ecrol': (30~) G7:\-70110/Convention Bureau: 673-7060/Markcring Division: 673-7070/i\ews and Puhlicity Bureau: 673-7083 Finance Division: 673-7050 Tclc)C: 512316/Cable: MBTOURIsr 01/2i/99 16:51 FAX I4J 002/002 Miami Beach Visitor e'rConvention Authority 555 Seventeenth Street, Miami Beach. Florida 33139. C.s.A. Mr. William Talbert I Page 2 January 26, 1999 1 asked Mayra to be celtain that my memo dated December 3 1, 1998 requesting these revisions to the Draft Agreement be attached as a formal exhibit/addendum to the City Commission R.esolution to be acted upon on February 3, 1999, and she assured me that it would. It is my expectation that this correspondence will satisty the City's request for corroborating evidence of our mutual understanding and actual current practice. Please advise us as soon as possible and in advance of February 3, 1999 if your understanding of these arrangements differs from that outlined above J;IYllliIL Lisa Cole Chairperson fc: Neisen Kasdin, Mayor and Commissioners, City of Miami Beach Commission All Members, Miami Beach Visitor and Convention Authority Murray Dubbin, City Attomey Harold Rosen, VCA Attorney Sergio Rodriguez, City Manager v'Mayra Diaz-Buttacavoli, Assistant City Manager ~atalie Castel1ane, VeA Administrator Execl..tive DL'Wor: (305) 6i3-7080/COllvenlion Burcau: 61:J-7060/Markc:ling DiVision: fj73-7070/~ews and Publicity rlun':au: 673-7083 Finance Division: 673-7050 "lelex: 512316/Cable: M8TOURIST