Resolution 2020-31336 RESOLUTION NO. 2020-31336
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATIONS OF THE CULTURAL ARTS COUNCIL, AT ITS
JULY 9, 2020 MEETING, AND APPROVING THE GRANT FUNDING
RECOMMENDATIONS FOR THE "CULTURAL ARTS EMERGENCY
FUND", IN THE AMOUNT OF $879,086 TO PROVIDE FINANCIAL
ASSISTANCE TO MIAMI BEACH-BASED CULTURAL ORGANIZATIONS
EXPERIENCING REVENUE LOSSES DUE TO THE COVID-19 CRISIS,
AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE
THE GRANT AGREEMENTS RELATED TO THE APPROVED FUNDS.
WHEREAS, the Miami Beach Cultural Arts Grant Program, created in 1998, is an
essential component of the mission of the Miami Beach Cultural Arts Council and is charged to
develop, coordinate, and promote arts and culture in Miami Beach community; and
WHEREAS, in 2001, the City sets aside 1% of the Resort Tax for a Cultural Arts
Reserve Fund and the Quality of Life Fund; and
WHEREAS, currently, the 1% Resort Tax set aside is distributed as follows: 10% to
CAC, 30% to Quality of Life, and 60% to Transportation/Trolley operation; and
WHEREAS, the Resort Tax funding for cultural arts grants and programs is divided into
two restricted funds, the Cultural Arts Council Fund Balance and the Cultural Arts Council
Endowment, both managed by the Cultural Arts Council ("CAC"; and
WHEREAS, the CAC reviews and makes grant award recommendations for
Commission approval; and
WHEREAS, on September 10, 2014, the Mayor and City Commission, based on the
recommendation of the CAC, adopted Resolution No. 2014-28732, which established a Cultural
Arts Council Fund Balance ("Fund Balance"), in the amount of$2,467,000, which is capped and
provides for an annual increase for inflation; and
WHEREAS, the purpose of the Fund Balance is to set aside funds that will ensure the
cultural affairs program operation and grants continue for a period of two (2) years, in the event
of an emergency, unforeseen difficulties, trouble, or need; and
WHEREAS, all funds remaining in the Fund Balance at the end of each fiscal year are
rolled over to the following fiscal year; and
WHEREAS, the Cultural Arts Council Endowment ("Endowment") was recommended by
the CAC and created by the City Commission in 1998 in an attempt to make cultural arts
programming and operation self-sufficient by using the fund; and
WHEREAS, the Endowment is capped at $1,581,873, and is to be used for the purpose
of enhancing Miami Beach art institutions, collections and operations; and
WHEREAS, due to the novel COVID-19 pandemic, Miami Beach arts organizations are
facing unprecedented revenue losses; and
WHEREAS, to date, Miami Beach based cultural organizations are collectively reporting
nearly$7,000,000 in lost revenues, reflective of closures since March 12, 2020; and
WHEREAS, during its April 24, 2020 meeting, the Finance and Economic Resiliency
Committee ("FERC") recommended that in order to support the cultural arts programs, the City
should utilize the Fund Balance and Endowment, for a combined balance of$4,048,873, for the
purpose of covering the FY2020 Resort Tax contribution of $1,473,000 to the CAC, thereby
permitting available Resort Tax funds to be reallocated to other Resort Tax purposes: and
WHEREAS, FERC also recommended for the City to establish a "Cultural Arts
Emergency Fund" in the amount of $1,000,000 to provide financial assistance to Miami Beach
based cultural organizations experiencing revenue losses due to the COVID-19 crisis (the
"Cultural Arts Emergency Fund Grant Program"); and
WHEREAS, FERC further recommended that the City and the CAC develop the criteria
and procedures for the Cultural Arts Emergency Fund Grant Program, in order to review grant
applications and make advisory recommendations to the City Commission, with the final grant
awards being subject to prior approval of the City Commission; and
WHEREAS, on May 1, 2020, via Resolution No. 2020-31247, the Mayor and City
Commission established a Cultural Arts Emergency Fund, in the amount of $1,000,000, to fund
the Cultural Arts Emergency Fund Grant Program; and
WHEREAS, on July 9, 2020, the CAC made the following funding recommendations:
------ ------- --
ORGANIZATION NAME ELIGIBLE FUNDING FINAL RECOMMENDATION
REQUEST SCORE BASED ON SCORE
AND AVAILABLE $
Jewish Museum of Florida-FIU $75,000 ; 88
$ 62,370
Miami Beach Urban Studios-FIU j $75,000 j 86 $ 60,953 1
New World Symphony $100,000 l 90 $ 85,050
rUni•
versity of Wynwood (0, Miami) $5Q000 ; 91 $ 42,998
Miami Beach Botanical Garden $50,000 98 $ 46,305
Friends of the Bass Museum $100,000 88 $ 83,160
Wolfsonian-FIU $100,000 88 $ 83,160
Miami New Drama $75,000 98 $ 69,458
Holocaust Memorial Committee ; $75,000 l 89 i $ 63,079
Miami City Ballet ! $100,000 89 I $ 84,105
Miami Design Preservation League i $75,000 ! 92 $ 65,205
The Rhythm Foundation $75,000 96 1 $ 68,040
Living Arts Trust (0' Cinema) $75,000 ! 92 } $ 65,205
$
Total $ 1,025,000 �_ . 879,086
WHEREAS, the Cultural Arts Emergency Fund was established at $1,000,000, and
grant funding was awarded at$879,086; and
WHEREAS, on January 29, 2020, The Miami City Ballet entered into a $200,000
sponsorship agreement ("Ballet Sponsorship Agreement") with the City to support performances
at the Colony Theatre, New World Symphony and Lincoln Road, along with additional support
for the Ballet Bus program; and
WHEREAS, the Ballet's Sponsorship Agreement for FY 19-20 was slated to be funded
by Resort Tax funds, which are no longer available; and
WHEREAS, the Administration was required to fulfil the remaining balance of the
Sponsorship Agreement, in the amount of $120,000, from the Cultural Arts COVID-19
Emergency Fund to satisfy the Ballet Sponsorship Agreement, leaving a balance of$880,000 in
the Cultural Arts Emergency Fund; and
WHEREAS, the City Manager recommends approving CAC's funding recommendations
in the amount of$879,086.
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 accept the recommendation of the Cultural Arts Council, at its July 9, 2020
meeting, and approve the grant funding recommendations for the "Cultural Arts Emergency
Fund", in the amount of$879,086, to provide financial assistance to Miami Beach-based cultural
organizations experiencing revenue losses due to the COVID-19 crisis; and further authorize the
City Manager to execute all grant agreements related to the approved funds.
PASSED and ADOPTED this day of u�i , 2020.
l
ATTEST:
Dan Gelber, Mayor
®tsc
Rafael E. Granado, City Clerk
B
INCORPORATED`
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney Date
Resolutions-C7 S
MIAMI BEACH
COMMISSION MEMORANDUM
•
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 29, 2020
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA,ACCEPTING THE RECOMMENDATIONS OF
THE CULTURAL ARTS COUNCIL, AT ITS JULY 9, 2020 MEETING, AND
APPROVING THE GRANT FUNDING RECOMMENDATIONS FOR THE
"CULTURAL ARTS EMERGENCY FUND", IN THE AMOUNT OF $879,086 TO
PROVIDE FINANCIAL ASSISTANCE TO MIAMI BEACH-BASED
CULTURAL ORGANIZATIONS EXPERIENCING REVENUE LOSSES DUE
TO THE COVID-19 CRISIS, AND FURTHER AUTHORIZING THE CITY
MANAGER TO EXECUTE THE GRANT AGREEMENTS RELATED TO THE
APPROVED FUNDS.
RECOMMENDATION
The Administration supports the funding recommendations of the Cultural Arts Council (CAC) in
the grant funding allocation of$879,086 for the Cultural Arts Emergency Fund. The utilization of
these funds will maintain the strong cultural foundation and reputation the City has developed,
over the decade, by attracting quality art and culture programming, cultivating educated,
experienced and talented artistic and cultural thought leadership, and demonstrating to the great
community the importance of art on the Miami Beach community, culture, history and spirit. This
is the true purpose and mission of the CAC, to support and sustain the meaningful and
committed efforts of the City and our cultural institutions to continue to embed, develop and
democratize arts and build bridges between generations and cultures.
BACKGROUND/HISTORY
The Miami Beach Cultural Arts Grant Program ("Grant Program"), originally created in 1998 as
an essential component of the mission of the Miami Beach Cultural Arts Council, is charged to
develop, coordinate, and promote the arts and culture in the City of Miami Beach community.
Since the Grant Program inception in 1998, the Mayor, Commission and Cultural Arts Council
("CAC") have awarded approximately$18 million in cultural arts grants, supporting thousands of
performances, exhibits, and other cultural activities in Miami Beach. The Grant Program is
managed by Tourism and Culture Department.
In 2001, the City set aside 1% of the Resort Tax for a cultural arts reserve fund and those funds
support only cultural affairs grants and programs and the Quality of Life Fund for North Beach,
Mid-Beach and South Beach programming. Currently the 1% Resort Tax set aside is distributed
Page 367 of 2461
as follows: 10%to CAC, 30%to Quality of Life and 60%to TransportationlTrolley operation.
The funding to cultural arts grants and programs is divided into two (2) restricted funds, that are
managed by appointed members of the Cultural Arts Council, which reviews and makes
recommendations for Commission approval. The two (2) funds, essential to the operations,
quality and growth of Miami Beach cultural arts programming are as follows:
Cultural Arts Council Fund Balance
In 2014, the Cultural Arts Council recommended, to the City Commission, to create a Cultural
Arts Council Fund Balance ("Fund Balance") in the amount of $2,467,000, that is capped
(providing for an annual increase for inflation). This recommendation was approved
on September 10, 2014 by Resolution No. 2015-29045. The original City Commission
(Resolution No. 2014-28732)referencing the fund balance, contained a scriber error in the fund
amount referenced and was replaced by Resolution No. 2015-29045. The purpose of the Fund
Balance is to set aside rainy day funds that will ensure the Cultural Affairs program operation
and grants continue for a period of two (2) years, in the event of an emergency, unforeseen
difficulty, trouble or need. All funds remaining, at the end of each fiscal year, are rolled over to
the following fiscal year.
Cultural Arts Council Endowment
The Cultural Arts Council Endowment ("Endowment") was established by the CAC in an
optimistic attempt to become self-sufficient by using fund. The Endowment is capped at
$1,581,873, and is to be saved, spent, invested and distributed for the purpose of enhancing
Miami Beach's art institutions, collections and operations. Currently, $800,000 of the
Endowment is allocated to the renovation of the Rotunda in Collins Park. The Rotunda
construction isn't time sensitive and could be postponed, by City Commission, and revisited.
CAC, at its February 6, 2020 meeting, expressed it would be prudent to retain a rainy-day
balance, of no less than $500,000, for emergencies and unforeseeable situations,
circumstances and opportunities.
In April 2020, the combined fund balances for the Cultural Arts Council totaled $4,280,368. As
part of the FY 2020 budget balancing plan presented to the Finance & Economic Resiliency
Committee on April 17, 2020, the Administration recommended funding the FY 2020 budget
allocation of$1,540,000 from the CAC fund balance instead of the 1% Resort Tax for Quality of
Life to free that allocation up for other purposes such as supporting the trolley system or other
resort tax purposes.
The Administration then recommended, with the support of the CAC, the creation of a $1
million Miami Beach COV1 D-19 relief fund for cultural organizations to mitigate and alleviate the
financial and programmatic hardships created by the current COVI D-19 pandemic. On May 1,
2020, via Resolution No. 2020-31247, the Mayor and City Commission established a Cultural
Arts Emergency Fund in the amount of $1,000,000 to provide financial assistance to Miami
Beach-based cultural organizations experiencing revenue losses due to the COVID-19 crisis.
The $1,000,000 COVID-19 Emergency Relief grant, as well as the current FY 19-20 Grant
Program funding of$1,540,000 is being funded through the Cultural Arts Council Fund Balance,
reduced the fund balance from $4,280,368 to$1,740,368 (see table below).
Item Amount
CAC Fund Balance $2,653,448
CAC Endowment $1,626,920
Page 368 of 2461
FY 2020 CAC 1% Resort Tax for Quality of Life ($1540,000)
COVI D-19 Relief Fund for Cultural Organizations ($1,000,000)
Current Total $1,740,368
ANALYSIS
Due to the COVI D-19 pandemic, Miami Beach arts organizations are facing unprecedented
revenue losses. To date, Miami Beach based cultural organizations are collectively reporting
over $7M in lost revenue, reflective of closures since March 12, 2020. Depending on social
distancing guidelines and community perceptions, it may be more than a year or more before
Miami Beach institutions are able to operate at full capacity, if they survive at all.Venues such as
the Colony Theatre, managed by Miami New Drama, receive 40% of their annual revenue from
ticket sales. The management of Miami New Drama has estimated approximately $615,000 in
lost revenue since closures Staff is working with each organization to track revenue losses.
On May 1, 2020, via Resolution No. 2020-31247, the Mayor and City Commission established
a Cultural Arts Emergency Fund in the amount of$1,000,000 to provide financial assistance to
Miami Beach-based cultural organizations experiencing revenue losses due to the COVI D-19
crisis.The Relief Fund provides meaningful emergency grants that would mitigate and alleviate
the financial and programmatic hardships created by the current COVID-19 pandemic. Funds
would support administration, operations, programming, marketing, facility rentals, and contract
employees.
Eligibility was determined by the Cultural Arts Council as follows:
Current grantees (Cultural Anchors) of the City of Miami Beach Cultural Arts Council (FY 19-20)
who have been financially impacted by the Covid-19 pandemic were eligible to apply for
emergency relief. To apply, organizations were required to:
• Demonstrate need
• Provide proof of 1:1 match for requested amount;
• Operate and maintain a primary physical address within the City of Miami Beach.
An organization's need for emergency relief funding was determined by evaluating:
• The negative and immediate revenue and operational impacts of Covidl9;
• New or expanded needs of the organization, and its constituents, as a result of the
COVI D-19 pandemic (creation of digital platforms,technologies,etc.);
• Short-term and long-term recovery plans, including how grantee is mitigating any impact of
COVID-19, board participation,and efforts to find alternative funding sources;
• How funding will be leveraged to provide positive long-term recovery results and benefits;
and
• The strength of operational and fiscal plans and measures currently being implemented.
The Administration released the COVI D-19 Emergency Relief Grants on May 11, 2020. The
grant funding timeline is noted as follows:
1. Funding approval by City Commission-May 1,2020
2. Grant Guidelines presented to Cultural Arts Council- May 7,2020
3. Applications Open—May 11,2020
4. Mandatory Grant Workshop for Qualified Applicants-May 12, 2020 at 3:00 PM
5. Applications Due- May 29,2020
Page 369 of 2461
6. Internal Review of Applications/Corrections Period -June 1-5, 2020
7. Applications available for Cultural Arts Council review and scoring- June 8-19, 2020
8. Cultural Arts Council COVI D-19 Emergency Grant Panel-June 25, 2020
9. Cultural Affairs Council meeting to recommend grant funding for FY 20/21 Cultural Arts
Council Grants and COVI D-19 Emergency Grants: July 9, 2020
10. CAC Funding Recommendations for COVI D-19 grants presented to City Commission -
J my 29, 2020
11. Grant Contracts issued -August 2020
Miami Beach Cultural Anchors were eligible to request funding in segments up to $50,000 for
institutions with annual organizational budgets below $750,000, up to $75,000 for institutions
with annual organizational budgets between $750,000 and 3.5M, and up to $100,000 for
institutions with annual organizational budgets at or above $3.5. Thirteen Cultural Anchors
applied for the COVID-19 Emergency Relief Grant. On July 9, 2020, the CAC made the
following funding recommendations:
ORGANIZATION NAME ELIGIBLE FINAL RECOMMENDATION
FUNDING SCORE BASED ON SCORE AND
REQUEST AVAILABLE $
sh Museum of Florida-FIU $75,000 88 $ 62,370
ii Beach Urban Studios-FIU $75,000 86 $60,953
World Symphony $100,000 90 $ 85,050
;rsity of Wynwood (0, Miami) $50,000 91 -$42,998
II Beach Botanical Garden _$50,000 98 $46,305
rds of the Bass Museum $100,000 88 $83,160
ronian-FIU $100,000 88 $83,160
ti New Drama $75,000 98 $ 69,458
:gust Memorial Committee $75,000 89 $63,079
ti City Ballet $100,000 89 $ 84,105
�i Design Preservation League $75,000 92 $ 65,205
Thythm Foundation _ _ $75,000 96 $ 68,040
g Arts Trust(0' Cinema_) $75,000 92 $65,205
Total $ 1,025,000 $ 879,086
As noted in Resolution No. 2020-31247, the COVID-19 Emergency Relief Fund was
established at $1 M. On January 29, 2020, The Miami City Ballet entered into a $200,000
sponsorship agreement with the City to support performances at the Colony Theatre, New
World Symphony and Lincoln Road, along with additional support for the Ballet Bus program.
The Miami City Ballet's FY 19-20 sponsorship agreement was funded by Resort Tax funds,
which are no longer available. Staff was directed to fulfil the remaining balance of the
Sponsorship Agreement in the amount of $120,000 from the Cultural Arts Council Emergency
Relief Fund to satisfy the sponsorship agreement; therefore, $820,000 was available for
Emergency Relief grant funding.
Page 370 of 2461
FINANCIAL INFORMATION
Funding is available through the Cultural Arts Fund Balance.
CONCLUSION
The COVI D-19 Emergency Relief Grant funds help to maintain the strong cultural foundation
and reputation the City has developed, over the decade, by attracting quality art and culture
programming, cultivating educated, experienced and talented artistic and cultural thought
leadership, and demonstrating to the great community the importance of art on the Miami Beach
community, culture, history and spirit. This is the true purpose and mission of the CAC Reserve
Fund, to support and sustain the meaningful and committed efforts of the City and our cultural
institutions to continue to embed, develop and democratize arts and build bridges between
generations and cultures.
Applicable Area
Citywide
Is this a"Residents Right - Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
No No ,
Legislative Tracking
Tourism and Culture
ATTACHMENTS:
Description
o Resolution
Page 371 of 2461