2014-28745 Reso RESOLUTION NO. 2014-28745
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS
OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS
MEETING ON AUGUST 13, 2014 TO EXTEND THE INTERLOCAL
AGREEMENT WITH THE GREATER MIAMI CONVENTION AND
VISITORS BUREAU(GMCVB) ON A MONTH-TO-MONTH BASIS UNDER
THE CURRENT CONTRACTED TERMS, BUT NOT TO EXCEED ONE (1)
YEAR FROM SEPTEMBER 30, 2014; FOR THE CITY ADMINISTRATION
TO RE-NEGOTIATE AN INCENTIVE BASED AGREEMENT THAT
ESTABLISHES A BASE FEE AND AN INCENTIVE FEE TO BE PAID
BASED ON THE OVERALL ACHIEVEMENT OF ANNUAL
PERFORMANCE GOALS; AND FURTHER THAT FUNDING TO THE
GMCVB REMAIN AT THE CURRENT LEVEL OF $5,366,000; AND THAT
THE CITY HIRE AN OWNER'S REPRESENTATIVE IN AN AMOUNT NOT
TO EXCEED $161,000 AT THE CITY MANAGER'S DISCRETION.
WHEREAS, the City has been contracting with the Greater Miami Convention and Visitor's
Bureau (GMCVB) since 1984 for the purpose of promoting the Miami Beach Convention Center
("Convention Center") and Miami Beach; and
WHEREAS, the GMCVB is the entity primarily responsible for pursuing and securing convention
business for the Convention Center, with the Convention Center management company also
responsible for pursuing booking business, which typically includes shorter term uses; and
WHEREAS, on September 24, 2009, the City Commission adopted Resolution No. 2009-27217
approving a new five (5) year agreement commencing on October 1, 2009, and ending on
September 30, 2014; and
WHEREAS, on July 18, 2014, this item was considered by the Finance and Citywide Projects
Committee. The Committee made no recommendation and moved the item to its August 13, 2014
Budget meeting and then to the September 10, 2014 City Commission meeting for final discussion;
and
WHEREAS, the City contracted with Strategic Advisory Group (SAG) to assist the City in
analyzing the current GMCVB agreement and to recommend revisions which would change the
overall direction of the proposed terms to a performance-based agreement with a fee for services
approach; the City would establish a base fee and establish an incentive fee to be paid based on the
overall achievement of agreed-upon annual performance goals; and
WHEREAS, the Finance and Citywide Projects Committee discussed this item on July 18, 2014
and on August 13, 2014 and recommended to extend the Interlocal Agreement with the Greater
Miami Convention and Visitors Bureau on a month-to-month basis under the current contracted
terms, but not to exceed one (1) year from September 30, 2014. The Committee also recommended
that the City Administration re-negotiate an incentive based agreement that establishes a base fee
and an incentive fee to be paid based on the overall achievement of annual performance goals.
Finally, that the Committee recommended that funding for the GMCVB remain at the current level of
$5,366,000 and recommended that the City hire an owner's representative in an amount not to
exceed $161,000 at the City Manager's discretion.
NOW,THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, hereby accept the recommendations of the Finance and Citywide
Projects Committee to extend the Interlocal Agreement with the Greater Miami Convention and Visitors
Bureau on a month-to-month basis under the current contracted terms, but not to exceed one (1) year from
September 30, 2014; for the City Administration to re-negotiate an incentive based agreement that
establishes a base fee and an incentive fee to be paid based on the overall achievement of annual
performance goals; that funding remain at the current level of$5,366,000; and that the City hire an owner's
representative in an amount not to exceed $161,000 at the City Manager's discretion.
PASSED and ADOPTED this day of u2014.
i
ATTEST:
RafWel E.Granado,CITY CLERK Philip Levlr e, 44
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City Attomey pate
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The Recommendation Of The Finance And Citywide Projects Committee To Extend
The Interlocal Agreement With The Greater Miami Convention And Visitors Bureau(GMCVB) On A Month-To-
Month Basis Under The Current Contracted Terms, But Not To Exceed One (1) Year From September 30,
2014; For The City Administration To Re-Negotiate An Incentive Based Agreement That Establishes A Base
Fee And An Incentive Fee To Be Paid Based On The Overall Achievement Of Annual Performance Goals;
And Further That Funding To The GMCVB Remain At The Current Level Of$5,366,000 And That The City
Hire An Owner's Representative In An Amount Not To Exceed $161,000 At The City Manager's Discretion.
Key Intended Outcome Supported:
Maximize The Miami Beach Brand as a World Class Destination
Supporting Data (Surveys, Environmental Scan, etc.): A majority of residents of Miami Beach (64%) believed
that tourism adds to the quality of life in Miami Beach. This figure was down slightly from 2009 (69%) and 2012
(70%). About one in five residents (19%) claimed that tourism detracted from quality of life with results fairly
similar across districts.
Item Summary/Recommendation:
The City has been contracting with the Greater Miami Convention and Visitor's Bureau (GMCVB) since 1984
for the purpose of promoting the Miami Beach Convention Center and the destination. The GMCVB is the
entity primarily responsible for pursuing and securing Convention business for the Convention Center, with the
Convention Center management company also responsible for pursuing booking business, which typically
includes shorter term uses. On September 24, 2009, the City Commission adopted Resolution No. 2009-
27217 approving a new five (5) year agreement commencing on October 1, 2009, and ending on September
30, 2014. On July 18, 2014 this item was brought to Finance and Citywide Projects Committee meeting. The
committee made no recommendation and moved the item to the August 13, 2014 Budget meeting and then to
the September 10, 2014 Commission meeting for final discussion.
In anticipation of the expiration of the GMCVB agreement, the City contracted with Strategic Advisory Group
(SAG) to assist the City in analyzing the current GMCVB agreement and recommend revisions. SAG's primary
recommendation was to change the overall direction of the proposed terms for the GMCVB contract with the
City to a performance based agreement from a fee for services approach. This new direction focuses on the
hivm
ac e e e n t of key metrics and the overall measureable success of GMCVB in their contractual relationship
with the City. As part of this recommendation, the City would establish a base fee and establish an incentive
fee to be paid based on the overall achievement of agreed-upon annual performance goals.
The Finance and Citywide Projects Committee discussed this on July 18, 2014 and August 13, 2014 and
recommended to extend the Interlocal Agreement with the Greater Miami Convention and Visitors Bureau on a
month to month basis under the current contracted terms, but not to exceed one (1) year. The Committee also
recommended staff re-negotiate an incentive base agreement that establishes a base fee and an incentive fee
to be paid based on the overall achievement of annual performance goals. Finally, the Committee
recommended funding remain at the current level of $5,366,000 and recommended the City hire an owner's
representative in an amount not to exceed $161,000 at the City Manager's discretion.
Advisory Board Recommendation:
FThe-7F-Finance and Citywide Projects Committee discussed this on July 18, 2014 and August 13, 2014 and
made the aforementioned recommendation.
Financial Information:
Source of Amount Account
Funds: 1 5,366,000
Financial lm ummary:
City Clerk's Office Legislative Tracking:
Max Sklar, ext. 6116
Sign-Offs:
Departme it tor Assistant Cit alter City M a er
MAS KGB JLM
T:\AGENDA\2014\September\TCED\FCWPC Recommendation GMCVB SUMM.doc
MAMIBI
EACH AGENDA ITEM DATE 'I-10-/V
I
M I AM I B EAC H
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSI N MEMORANDUM
TO: Mayor Philip Levine and Members �f the City C mmission
FROM: Jimmy L. Morales, City Manager
DATE: September 10, 2014
SUBJECT: A RESOLUTION OF THE M YOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATIONS OF THE FINANCE AND CITYWIDE
PROJECTS COMMITTEE AT ITS MEETING ON AUGUST 13, 2014
TO EXTEND THE INTERLOCAL AGREEMENT WITH THE
GREATER MIAMI CONVENTION AND VISITORS
BUREAU(GMCVB) ON A MONTH-TO-MONTH BASIS UNDER THE
CURRENT CONTRACTED TERMS, BUT NOT TO EXCEED ONE
(1) YEAR FROM SEPTEMBER 30, 2014; FOR THE CITY
ADMINISTRATION TO RE-NEGOTIATE AN INCENTIVE BASED
AGREEMENT THAT ESTABLISHES A BASE FEE AND AN
INCENTIVE FEE TO BE PAID BASED ON THE OVERALL
ACHIEVEMENT OF ANNUAL PERFORMANCE GOALS; AND
FURTHER THAT FUNDING TO THE GMCVB REMAIN AT THE
CURRENT LEVEL OF $5,366,000 AND THAT THE CITY HIRE AN
OWNER'S REPRESENTATIVE IN AN AMOUNT NOT TO EXCEED
$161,000 AT THE CITY MANAGER'S DISCRETION.
ADMINISTRATION RECOMMENDATION
Accept the recommendation of the Finance and Citywide Projects Committee to extend
the Interlocal Agreement with the Greater Miami Convention and Visitors Bureau on a
month to month basis under the current contracted terms, but not to exceed one (1) year
from September 30, 2014. The Committee also recommended staff re-negotiate an
incentive base agreement that establishes a base fee and an incentive fee to be paid
based on the overall achievement of annual performance goals. Finally, the Committee
recommended funding for the GMCVB remain at the current level of $5,366,000 and
recommended the City hire an owner's representative in an amount not to exceed
$161,000 at the City Manager's discretion.
BACKGROUND
The City has been contracting with the Greater Miami Convention and Visitor's Bureau
(GMCVB) since 1984 for the purpose of promoting the Miami Beach Convention Center
and the destination. The GMCVB is the entity primarily responsible for pursuing and
securing Convention business for the Convention Center, with the Convention Center
management company also responsible for pursuing booking business, which typically
includes shorter term uses. A booking policy governs priority of bookings. The GMCVB
Accept FCWPC Recommendation-GMCVB
City Commission Meeting
September 10, 2014
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also engages in local, national and international marketing of the overall destination in
an effort to promote tourism. The goal of both the convention booking and destination
marketing is to secure hotel room nights in the City, and further enhance the City's
tourism economy. Funding for the City's Agreement with the GMCVB is derived from the
Municipal Resort Tax revenue. The GMCVB derives additional funding from Miami-Dade
County, Village of Bal Harbour, member fees and cooperative marketing partnerships.
The GMCVB's activities are focused primarily in marketing and convention
sales/meeting sales.
In 1984, the City of Miami Beach (CMB), Miami Dade County, the City of Miami and the
Village of Bal Harbour, entered into an Interlocal Agreement with the Greater Miami
Convention and Visitor's Bureau to perform tourism and convention sales and promotion
functions. On July 7, 1999 the Mayor and City Commission adopted Resolution No. 99-
23237 approving an agreement with the GMCVB for an initial term commencing on
October 1, 1999 and ending on September 30, 2002 with one, two (2) year renewal
option, at the City's discretion. On December 8, 2004, the City Commission adopted
Resolution No. 2004-25767 which approved an agreement with the GMCVB for five (5)
years from October 1, 2004 — September 30, 2009. On July 7, 2009, the Finance and
Citywide Projects Committee directed the Administration to negotiate a new five (5) year
agreement with the GMCVB. On September 24, 2009, the City Commission adopted
Resolution No. 2009-27217 approving a new five (5) year agreement commencing on
October 1, 2009, and ending on September 30, 2014.
On July 18, 2014 this item was brought to Finance and Citywide Projects Committee
meeting. The committee made no recommendation and moved the item to the August
13, 2014 Budget meeting and then to the September 10, 2014 Commission meeting for
final discussion.
CURRENT AGREEMENT TERMS:
The current agreement, which expires September 30, 2014 has the following terms:
TERMS
1. Term Five (5) years commencing on October 1, 2009, and ending on
September 30, 2014; termination for convenience with 60 day
notice.
A "contract year" shall be defined as the period from October 1
through September 30 of the following year (coinciding with the
City's Fiscal Year).
2. Base Fee $5,000,000 per year.
At the commencement of the 2"d contract year of the Agreement,
and at the beginning of every year thereafter, the annual City's
contribution will be adjusted by 3% or the increase in the CPI-U,
whichever is less.
3. Sub-Market GMCVB agrees that not less than $950,000 will be targeted annually
Initiatives to support and implement sub-market initiatives developed by the
City, in partnership with the Bureau, that market, promote or support
activities or events in the City, or that directly benefit the City. These
sub-market initiatives will be revisited annually and established by
the City, in its reasonable discretion, on an annual basis.
Accept FCWPC Recommendation-GMCVB
City Commission Meeting
September 10, 2014
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TERMS
The Bureau's Marketing and Tourism Committee must fully reflect
and be representative of the sub-market initiatives referenced
above.
4. Cultural Arts GMCVB will make an annual contribution to the City's Cultural Arts
Council Council of$50,000 per year.
5. Performance The following performance objectives shall be included in the
Objectives Agreement for achievement during the Agreement term:
A. Organizational Improvement
• Report on/update the status of the current five-year
Strategic Plan (year 1)
• Develop and present for approval a new Strategic Plan
(year 1)
• Conduct an annual retreat(year 1, year 3)
• Report on/update the status of the new Strategic Plan
developed in year 1 (year 3)
B. Develop, plan and/or implement certain mutually agreed
upon recommendations from the Mayor's Blue Ribbon Task
Force on Tourism
C. New Bookings at the Miami Beach Convention Center:
o Book a minimum of twenty (20) new conventions/
meetings/Corporate business
D. New Bookings at Miami Beach Hotels
o Book a minimum of 125 new
events/meetings/corporate business
E. Achieve no less than a 90% positive rating on customer
service surveys for convention bookings (positive =
excellent/good)
* Note: The term "Booking" will be further defined in the Agreement;
new refers to non-renewal business.
6. Reports Provide at beginning of term and subsequently as needed/updated:
• Operating Policies and Procedures
o Convention Sales Standard Operating Procedures
o Convention Services Standard Operating
Procedures
o GMCVB, Global Spectrum, Messe Schweiz
Marketing Partnership
Provide Monthly:
• Tourism Sales
o New Leisure visitor generated and estimated visitor
receipts
o Visitor Demographics (with breakdown for MB)
• Convention Sales
o Conversion of Sales Leads to Booked Business
■ Booked Business Report—sales closed (all)
■ Booked Business Report — sales closed
(convention center related)
■ Booked Business Report — sales closed
(Miami Beach Hotels)
o Business targets (leads, including bid opportunities
for major events and international business
opportunities)
o Lost Business Reports (all and convention center
related
o Cancelled Business Reports all and convention
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City Commission Meeting
September 10, 2014
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TERMS
center related)
• In-kind Partnership Reports
• Convention Income Survey
• Convention Summary Reports
• GMCVB Membership
o Private Membership participation
o Leverage and In-kind support
• Marketing
o Total number of paid media placements and media
impressions (all)
o Total number of paid media placements and media
impressions (convention-related)
o Total number of earned media opportunities and
impressions (all)
o Total number of earned media opportunities and
impressions (convention-related)
• Targeted Initiatives
• Boutique Hotel
• Marketing Report (number of media
placements, number of media impressions,
number of earned media opportunities)
• Sales Report (number of booked new
business- leisure and convention/meetings)
• Gay/Lesbian Travel/business
• Marketing Report (number of media
placements, number of media impressions,
number of earned media opportunities)
• Sales Activities (marketing efforts targeted
to leisure travel, convention/meetings,
leads, etc.)
• Survey results as required per agreement
• Convention Center Sales Customer Service Feedback
Reports
Provide annually (within 90 days after end of term)
• ROI Analysis
o Conventions and Meetings (annual number booked,
anticipated visitors/delegates, room nights and total
receipts/economic impact)
o Advertising (conversion analysis actual new visitors,
hotel room nights and visitor receipts)
o GMCVB Website (hotel booking results)
o Tourism Sales
o Revenue Per Available Rooms Rev Par
7. Marketing Support GMCVB will participate in monthly Sales and Marketing Meeting
held by the CMB and MBCC
• Minimum of 25% of GMCVB's total convention marketing
funds available per the approved GMCVB budget will be
used to promote the availability and use of the MBCC.
• All MBCC convention/meeting industry publication ads are
to be drafted and reviewed with the MBCC Director of Sales
and Marketing Manager.
• GMCVB's Advertising and Marketing Costs shall be at least
50% of the overall GMCVB annual budget.
• GMCVB will support and highlight targeted City events
and/or amenities (e.g. golf clubs, Sleepless Night), in
Accept FCWPC Recommendation-GMCVB
City Commission Meeting
September 10, 2014
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TERMS
GMCVB publications in-room magazines, etc.
8. European Sales: Partner with-Messe Schweiz for European convention sales and
marketing.
1. Coordinate at least one annual meeting with Messe Schwiez
to develop annual international sales and marketing Ian.
10. Governance • City representation on the Executive Committee and Board
will be not less than 30%.
• City's representation on any and all Bureau committees/
and//or subcommittees shall be a number proportionate to
the percentage amount of the City's total annual financial
contribution to the Bureau, but in no event shall be less than
30%.
• The City manager or his designee shall be a voting member
of the Finance Committee.
• The General Manager of the MBCC shall be a voting
member of the Convention Sales Committee.
Attached is a summary of their annual performance report Since FY 2003-04. 1 have
also attached for your review a summary of the GMCVB current annual revenues, as
well as a comparison of the City's funding allocation to the GMCVB versus the City's
resort tax collections. The GMCVB did meet their Performance Objectives but, in
hindsight, these objectives were not challenging. As a result, the City began to review
the agreement in an effort to make it more performance based.
GMCVB'S PROCESS FOR BOOKINGS
The GMCVB's Convention sales staff reaches out to clients through many different
avenues to obtain "leads".
1) Sales calls daily from their data base by 11 sales managers for both hotel and
MBCC business as well as prospecting new markets. One Sales manager is
located in Washington DC, which hosts more than 3,000 headquarters for
Association, Corporate and Tradeshow businesses.
2) Attending tradeshows and industry shows where clients are in attendance and
selling directly to them while building on relationships. The GMCVB attends over
60 events a year and typically has a representative from the MBCC staff and
partner hotels when appropriate.
3) Hosting clients and customers in Greater Miami for familiarization trips, sites
inspections and other industry shows going on in our destination.
4) Respond to inquiries that come in via email, phone, Convention Center staff,
hotel sales people, and local community leaders that want to bring business to
Miami Beach.
Once a client is interested in the MBCC for a future year, the GMCVB qualifies them
through their history of previous meeting destinations. The GMCVB looks at their hotel
pickup and contracts to verify that they meet the First Priority Status that will allow them
to hold dates 1st option beyond the 24 month window (per the MBCC booking Policy —
1,500 rooms contracted or greater). Once that is determined, the GMCVB works with
the Client on dates and the MBCC staff on proposals, and assists from start to finish with
the clients' visits to secure the hotels and room blocks. (example: American Academy of
Dermatology convention in 2013 used 55 hotels to meet their requirement for 5,600
rooms on peak which the GMCVB facilitated).
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City Commission Meeting
September 10, 2014
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For long term citywide groups, this process can take 4-6 years from the "lead to the
booking". In this timeframe, the GMCVB assist the clients as they weed out the
competition, facilitate hotel proposals that need fine-tuning, make presentations to
Boards and Executive committees and strengthen these relationships along the way.
Once the convention is booked, the Convention Services Team is in "All Hands on
Deck" mode. The GMCVB partners with the clients on promoting Miami Beach at the
convention in the city prior to Miami Beach (i.e. American Academy of Dermatology,
Cardiac Research Foundation TCT, etc. which can include: Personnel, Booth,
Promotional Material, Video, Handouts, Brochures, and Maps). Once on site, GMCVB
Convention Services does everything from the "day to day" liaison to the community,
media, transportation contacts, staffing needs, airport & city welcome signage, banners,
referrals, housing desk, off site venue recommendations, etc. The GMCVB is the "one
stop shop" for the client.
Additionally, the City engaged the GMCVB in 2009 to work more closely with the repeat
users for MBCC (i.e. Swimwear show, Printing Show, Cruise Shipping, Jewelry show,
Art Basel, etc.) by providing a more active Convention Sales and Services presence.
These services have included: arrival welcome at the MIA, Banners in Miami Beach
welcoming the group, marketing support, pre-mailers to increase attendance, registration
personnel provided on site, assistance with securing hotel rooms for the clients' room
blocks which would assist them to qualify their hotel pickup, conducting site inspections,
ideas for special events, etc. The intent of the City at the time was to make these repeat
customers feel welcomed and valued.
NEW AGREEMENT
In anticipation of the expiration of the GMCVB agreement, the City contracted with
Strategic Advisory Group (SAG) to assist the City in analyzing the current GMCVB
agreement and recommend revisions. As you know, SAG is the City's consultant for the
Convention Center Renovation Project. In addition to these services SAG also has
destination marketing experience. Mr. Daniel Fenton, Associate Partner with SAG, has
over 25 years of Hospitality and Destination Marketing experience. Prior to joining SAG,
Mr. Fenton was CEO of the San Jose Convention and Visitors Bureau and has held
senior management positions with Radisson, Amfac and Hyatt Hotels. He is a graduate
of the Cornell School of Hospitality Management.
Mr. Fenton specifically performed the following services for the City:
1. Reviewed and analyzed the current GMCVB agreement;
1. Reviewed historical bookings and recommended future production goals and
goal setting process;
2. Reviewed proposed Term Sheet by GMCVB;
3. Reviewed budget information from CMB and Bureau including summary data on
key measures from the past three to five years;
4. Reviewed hotel inventory data for Miami Beach and the Greater Miami area,
including trends in transient occupancy tax collections; and
Accept FCWPC Recommendation-GMCVB
City Commission Meeting
September 10, 2014
Page 7 of 9
5. Conducted interviews with stakeholders including City staff, and multiple
interviews with key staff of the Convention Center.
6. This research effort established industry standards, as well as suggest
alternative strategies that are currently working well in other locations (along with
lessons learned from failed experiments elsewhere).
7. Identifying opportunities to refine approach to guiding future performance; and
8. Proposing revisions to current GMCVB agreement.
SAG RECOMMENDATIONS
SAG's primary recommendation was to change the overall direction of the proposed
terms for the GMCVB contract with the City to a performance based agreement from a
fee for services approach. This new direction focuses on the achievement of key metrics
and the overall measureable success of GMCVB in their contractual relationship with the
City. As part of this recommendation, the City would establish a base fee and establish
an incentive fee to be paid based on the overall achievement of agreed-upon annual
performance goals.
Although the details still need to be negotiated and agreed upon by both parties,
recommended performance measures could include the following categories:
Citywide Conventions
• Definite Room Nights
o Associated with future Convention Center bookings
o Associated with agreed-upon future need periods
• Convention Center Fiscal Performance
As a key partner in the overall success of the Miami Beach Convention Center
(MBCC), the GMCVB will have performance metrics tied to the fiscal results. The
following are the performance metrics:
o MBCC Revenue
• Future Revenue booked into MBCC annually
• Future revenue will be determined based on the estimated revenues
in rent, food and beverage, electric and audio visual
• Current Revenue
• As an indicator of past sales efforts, current annual MBCC revenue
will be a performance metric
o Economic Impact
Using an agreed-upon formula, the economic impact of future citywide
bookings
Miami Beach Hotels "In house"group bookings
• Room Nights
o Room nights associated with future "in house booking"
• Economic Impact
o Using an agreed-upon formula, the economic impact of"in house" bookings
Accept FCWPC Recommendation-GMCVB
City Commission Meeting
September 10, 2014
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Leisure Groups
• The efforts to secure group tour/leisure business will be measured with the
following metrics:
• Consumed Room Nights
■ Consumed room nights are defined as actual rooms occupied by tour
groups and others verified through hotel rooming lists
• Economic Impact
■ Using an agreed-upon formula, the economic impact of leisure groups will
be determined
Individual Leisure Travel
• The marketing and conversion of leisure travel will be measured with the following
metrics:
o Room Night Conversion
■ Using an agreed-upon methodology, an annual conversion study will be
conducted to determine the direct impact of leisure travel marketing
efforts.
o Online Bookings
o Room nights booked through the online booking engine
Joint Goal Setting
In order to establish the annual performance measures the GMCVB will finalize a goal
setting process related to the contractual metrics that includes a defined internal process
and the participation of the hospitality industry and MBCC operator. The GMCVB will
collaborate with MBCC to create a singular marketing plan in the area of citywide
convention sales and marketing. The marketing plan will include an outline of the
agreed-upon ke vertical markets a collaborative approach to all marketing hannels
Y PP
9
and a deployment plan.
Reporting
GMCVB would also be required to create a monthly report that will encompass the
contractual performance metrics and the results in comparison to annual agreed-upon
goals and the previous year's results.
GMCVB will coordinate a joint reporting plan with MBCC incorporating all shared
metrics.
GMCVB will also produce a pace report that will indicate the current level of activity
and overall group performance for future years.
All GMCVB reports will be provided to the City, Convention Center, and Convention
Center Advisory Board.
FINANCE AND CITYWIDE PROJECTS COMMITTEE RECOMMENDATION
Transitioning to a performance based agreement requires the City and GMCVB to begin
a goal setting process with the hospitality industry, which will take place over several
months. Therefore, the City Administration recommends a one (1) year extension of the
Accept FCWPC Recommendation-GMCVB
City Commission Meeting
September 10, 2014
Page 9 of 9
current Agreement under the same terms and conditions to allow time for the goal
setting process to occur. This will allow the Administration and GMCVB to finalize
negotiations of a new agreement for consideration by the City Commission.
Additionally, this allows the Administration to finalize the Convention Center renovation
plans and timelines. Finally, this also provides time for the Administration to begin
drafting Convention Center Booking Policy amendments that will address future
bookings at the Center.
The Finance and Citywide Projects Committee discussed this on July 18, 2014 and
August 13, 2014 and recommended to extend the Interlocal Agreement with the Greater
Miami Convention and Visitors Bureau on a month to month basis under the current
contracted terms, but not to exceed one (1) year. The Committee also recommended
staff re-negotiate an incentive base agreement that establishes a base fee and an
incentive fee to be paid based on the overall achievement of annual performance goals.
Finally, the Committee recommended funding remain at the current level of $5,366,000
and recommended the City hire an owner's representative in an amount not to exceed
$161,000 at the City Manager's discretion.
CONCLUSION
The Administration recommends accepting the Finance and Citywide Projects
Committee recommendation.
JLM/KGB/
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