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2003-25350 Reso , . RESOLUTION NO. 2003-25350 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 2003/2004 BUDGET IN THE AMOUNT OF $1,025,088 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 one 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 2003/2004 in the amount of $ 1,025,088 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 2003/2004 budget, in the amount of $ 1,025,088. PASSED and ADOPTED this 18th day of September, 2003. ATTEST: JUwo Pcwk CITY CLERK ~/k4 V\~-MPi OR . TO APPROVED AS FORM & LANGUAGE . FOR EXECUTION CITY OF. MIAMI BEACH COMMISSION ITEM SUMMARY m - Condensed Title: A Resolution adopting and approving the Miami Beach Visitor and Convention Authority (VCA) FY 2003/2004 Budget in the amount of $ 1,025,088. Issue: Shall the City Commission adopt and approve the Miami Beach Visitor and Convention Authority (VCA) FY 2003/2004 Budget in the amount of $ 1,025,088? Item Summary/Recommendation: It is recommended that the Mayor and Commission should adopt the 2003/2004 budget in the amount of $1,025,088, as set forth in Exhibit A. Advisorv Board Recommendation: Miami Beach Visitor and Convention Authority - August 6, 2003 - reviewed and recommended approval of the budget. Financial Information: Source of Funds: D Finance Dept. Ci Clerk's Office Le islative Trackin Christina M. Cuervo F:\cmgr\$ALL\CHRISTIN\2003-9-1 B VCA Budget.doc AGENDA ITEM Q i D DATE tJ9-/f-of C I T Y 0 F M I A M'I' 8 E A C H m 1700 Convention Center Drive, Miami Beach, FL 33139 http:\\ci.miami-beach.f1.us SUBJECT: Mayor David Dermer and Members of the City Commission Jorge M. GOnZa,ezCl c....~. City Manager ()v--/ 0 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) FY 2003/2004 BUDGET IN THE AMOUNT OF $ 1,025,088 DATE: September 1l\2003 TO: FROM: 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 a nd internationally a s a v ibrant community a nd 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 2002/2003 ReviewlTourism Advancement Proqram 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 2002/2003, the program allocated funds in one of six categories, including: Tourism Partnerships, Special Events Recurring, Major One Time Event, Cultural Tourism, Development Opportunities and Festival Season. The Tourism Advancement Program (TAP) awarded $796,290 in fiscal year 2002/2003, compared to $487,700 in fiscal year 2001/2002. The increase in awards within the TAP reflected the anticipated 20% budget reduction by the City, and focus by the VCA on funding turnkey initiatives. The TAP funds helped maintain worthwhile tourism initiatives such as the South Beach Wine & Food Festival, The Miami Beach Sports & Fitness Festival, and supported new events on Miami Beach, such as the Miami Tropical Marathon and Aqua Girl. V:/SHAREDIFY 03-04IBUDGET COMMISSION MEMORANDUM September 18, 2003 Commission Memorandum VCA Budget FY 2003/2004 Page 2 Residential Services CamDaiqnNCA Action Committee The Residential Committee of the Mayor's Blue Ribbon Task Force on Tourism identified a resident-focused marketing/PR campaign that emphasized tourism's benefits to our community, including the need to celebrate our community's diversity and re-instill the importance of hospitality towards our visitors, and towards one another. The VCA recognized the importance of this campaign and took the lead in organizational efforts, collaborating with Residential Chair Peter Rickman. Think Penny, a Miami Beach advertising and design firm, volunteered to produce the campaign and donated the original creative services. The theme was MB: "Miami Beach, My Beach, Yours, Mine and Ours." The bilingual campaign used the initials MB to relay what is special about the Miami Beach community. Some examples were My Boardwalk, Mi Bodega, and My Ballet. The campaign began in the fall of 2002. It included an advertising initiative, and a service & attitude training component that meets the objectives of the Service and Attitude Committee of the Blue Ribbon Task Force. The training component met the objectives of creating a friendly and service oriented city where residents, tourists and merchants can patronize and conduct business. Phase One of the campaign included vivid and colorful images on available spaces, such as the s ide of buildings and was a Iso implemented 0 n a smaller scale with marketing collateral on light poles and bus shelters. These images were used to 'decorate' city property. The City granted a Waiver of Development regulations pursuant to, section 142- 145 of the City Code, to allow the large-scale banner to be erected on City Hall. The campaign includes a 50-second PSA spot that will serve the dual purpose of being adaptable for businesses and residents. The campaign's goal is to re-instill community pride, and strengthen the message of welcome. With over 100 other options to the MB campaign, additional future partners will also be identified to help provide financial and creative resources. Though many of the services were free, there were costs for the production of the marketing collateral. Funding for production came from the partnership of the VCA and the GMCVB. The campaign has enjoyed wide-scale commitment from the CMB, VCA, Greater Miami Convention & Visitors Bureau (GMCVB), video partner ACT Productions and Think Penny. VCA board member, Steve Haas and his employees at the Tuscan Steak House, have committed to becoming a roving troupe to introduce the video through live performances whenever possible. Stu Blumberg, president of the Greater Miami & The Beaches Hotel Association (GMBHA) has offered assistance with distribution of the training manual and assistance with video presentations. The various Miami Beach Chambers of Commerce will provide distribution assistance. The campaign was adopted by the CMB and used successfully in the All - American City Application. V:/SHAREDIFY 03-Q4IBUDGET COMMISSION MEMORANDUM September 18, 2003 Commission Memorandum VCA Budget FY 2003/2004 Page 3 Reauest for Proposals The VCA and the GMCVB are partnering in FY 2003-2004 for the Summer Event Producers RFP. Each organization will provide $50,000 towards the RFP. The objective of the RFP is to offset the cost of programs and events taking place in the City of Miami Beach during the months of July and August. The RFP will facilitate the production of new quality performances undertaken by recognized event producers, This will encourage current a nd future tourism to Miami Beach a nd this region, as it enhances its image as a sophisticated tourist destination with outstanding visitor services, events. The Summer Event Producer RFP grant category allows organizations with a new or first-time event or program of work, that has the potential to become recurring and can generate an extraordinary national and/or international tourism return for Miami Beach between the months of July and August, to apply for this joint funding. Administration and Overhead The VCA's administrative and overhead costs are budgeted at $132,000 for the fiscal year 2003/2004. The $132,000 administration and overhead allocation reflects an approximate 2% increase from fiscal year 2002/2003. The 2% increase is attributed to the rising cost of insurance coverage and a standard cost of living increase. This figure is also inclusive of the office space and equipment, and a fully staffed VCA administrative office. 2003/2004 Tourism Advancement Proaram The VCA has budgeted $603,088 for fiscal year 2003/2004 for its Tourism Advancement Program. This grant funding reflects an approximate 1 % increase or, a total of $8,338 from fiscal year 2002/2003. The decrease in funds is reflective of the decrease in the projected resort tax allocation. The monies will be awarded in our Tourism Advancement Program in six categories, including: Tourism Partnerships, Special Events (Recurring), Special Events (New or One-Time), Development Opportunities, Cultural Tourism and Festival Season. The grant application was again reviewed and revised in 2003/2004. New questions about the economic impact of the program, such as the various aspects of the tourism directed marketing plans, and how the numbers of hotel room nights were calculated, were enumerated. The final report and contract were also updated. The final report now includes quantitative and qualitative measures of event success. The contracts were revised to be more readable; initials are required after every clause to ensure that it is read and understood by the applicant. In addition, the application now requires written confirmation of hotel room blocks, and letters of media confirmation as application attachments. V:/SHAREDIFY 03-04/BUDGET COMMISSION MEMORANDUM September 18, 2003 Commission Memorandum VCA Budget FY 2003/2004 Page 4 The VCA website was updated for the 2003/2004 fiscal year. The TAP applications and guidelines can now be accessed in several formats, including Microsoft Word and PDF at www.miamibeachvca.com. Once approved, VCA meeting minutes will also be available on the web. Destination MarketinQ The destination marketing allocation reflects a 0% decrease from fiscal year 2002/2003. This allocation includes the VCA portion of production costs for the Miami Beach Civic Pride Campaign. This resident-focused marketing/PR campaign emphasizes tourism's benefits to our community, including the need to celebrate our community's diversity and re-instill the importance of hospitality towards our visitors. Research and Development In fiscal year 2003/2004 the VCA will undertake several new research and development projects, including the promotion of the city's shopping districts. 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." Special Proiects The VCA expects to support new initiatives in FY 2003/2004 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, television origination projects and a Miami Beach based film festival. 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. Proiected Cash Flow Reserve The VCA has budgeted $30,000 in the cash flow reserve in fiscal year 2003/2004. The $30,000 cash flow reserve reflects a 0% decrease from fiscal year 2002/2003. The City of Miami Beach allots resort tax payments to the VCA a month after its collection. Therefore the VCA has built in a $30,000 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. Conclusion It is recommended that the Mayor and Commission should adopt the 2003/2004 budget in the amount of $1 ,025,088, as set forth in Exhibit A. V:/SHAREDIFY 03-04/BUDGET COMMISSION MEMORANDUM . , Miami Beach Visitor and Convention Authority Approved Budget FY 2003/2004 "EXHIBIT A" TOTAL REVENUES: Projected 2% Resort Tax Collections per Finance Department: $1,025,088 EXPENDITURES VCA Administration i. Director (salary + fringeJ25%) (approx. $65k + $12.5k) ii. Administrative Assistant (approx. $27k . $7.5k fringe) iii. Office Expenses (approx. $20k) Tourism Advancement Grants Program Yearlona Grant Cateaories i. Tourism Partnerships v. Cultural Tourism Joint Funding Program (with the Miami Beach Arts Council) vi. Festival Season Marketing Quarterlv-based Grant Cateaories ii. Special Events (recurring) 1st Quarter $ 46.588.00 2nd Quarter $ 70,000.00 3rd Quarter $ 35,000.00 4th Quarter $ 30,000.00 iii. Major Event (New or One-Time)'" 1st Quarter $ 27,000.00 2nd Quarter $ 26,000.00 3rd Quarter $ 26,000.00 4th Quarter $ 26,000.00 iv. Development Opportunities 1 st Quarter $ 2nd Quarter $ 3rd Quarter $ 4th Quarter $ 60,000.00 10,500.00 10,500.00 10,500.00 New Investment Categories/Strategic Initiatives i. Destination Marketing ii. Tourism Related Research & Development Projects iii. Special Projects iv. RFP Summer Event Producers Projected Cash Flow Reserve PROJECTED RESORT TAX ALLOCATION Proposed Budget FY2003/2004 $ 132,000.00 $ $ 75,000.00 50,000.00 $ 100,000.00 $ 181,588.00 $ 105,000.00 $ 91,500.00 $ $ $ $ 100,000.00 35,000.00 75,000.00 50,000.00 $ 30,000.00 $ 1,025,088.00