LTC 210-2004 Jackie Gleason Theater - Rental Rate Increase Clarification of Resolution No. 2004-25583
CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. 210-2004
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From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez q"'~
City Manager ,f.r 0
Jackie Gleason heater - Rental Rate Increase
Clarification of Resolution No. 2004-25583
Date: August 5, 2004
To:
Subject:
Attached please find a revised Resolution No. 2004-25583 from the June 9, 2004 City
Commission meeting. This revision allows for clarification for intent of effective date, in
orderto allow consistency and compliance with executed Lease Agreements forthe Jackie
Gleason Theater.
If you have any questions, please contact me.
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C: Christina M. Cuervo, Assistant City Manager
Max Sklar, Acting Tourism and Cultural Development Director
Doug Tober, General Manager, SMG
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Private Management for Public Facilities
MEMORANDUM
Doug Tober
General Manager
Miami Beach Conu8ntIon Center
Jackie 01e.1III Theater
To: Robert Parcher
Cc:
Raul Aguila
Date: August 3, 2004
Re: Clarification to Resolution No. 2004-25583
Attached please find a revised Resolution No. 2004-25583 from the June 9, 2004 City
Commission meeting. This revision allows for a clarification for intent of effective date, in
order to allow consistency and compliance with executed Lease Agreements for the Jackie
Gleason Theater.
Thank you for your attention.
. Page 1
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
MAYOR AND CITY CLERK TO APPROVE AN INCREASE TO
THE COMMUNITY BENEFIT FUND SURCHARGE ON TICKETS
SOLD AT THE JACKIE GLEASON THEATER FROM $1.00 TO
$1.50 COMMENCING WITH EVENTS CONTRACTED AFTER
JULY 1, 2004, AND TO REDUCE THE SUBSIDY PERCENTAGE
PAID FROM THE COMMUNITY BENEFIT FUND ON SENIOR
AND STUDENT DISCOUNTED TICKETS FROM 80% TO
APPROXIMATELY 71 %.
WHEREAS, the City owns the Jackie Gleason Theater and is desirous of
facilitating the continued presentation of high-quality entertainment for the benefit of its
citizens; and
WHEREAS, the City has established the Community Benefit Fund in order to
provide reduced-price tickets to Miami Beach resident senior citizens and students, and
for funding for event beneficial to the citizens of Miami Beach; and
WHEREAS, trends in ticket sales reimbursed from the Fund have led to a
declining balance that, if left unrevised, could jeopardize the long-term viability of the
fund; and
WHEREAS, the City is desirous of continuing the Fund with its current self-
sufficient funding mechanism; and
WHEREAS, SMG as manager agent for the City at the Convention Center, has
recommended revisions to the reimbursement rates and surcharge of tickets sold for
events at the Jackie Gleason Theater that would revise such reimbursement rates from
80% of face value up to $35 to approximately 71 % of face value, allowing for rounding,
and increasing the surcharge from $1.00 per ticket to $1.50 per ticket; and
WHEREAS, the Administration, Convention Center Advisory Board (CCAB), and
SMG have determined that adoption of these revisions are in the best interest of the
City and the CCAB recommended these revisions at its meeting on May 25, 2007.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve an increase to the Community Benefit Fund surcharge on
tickets sold at the Jackie Gleason Theater from $1.00 to $1.50, commencing with
events contracted after July 1, 2004, and to reduce the subsidy percentage paid from
the Community Benefit Fund on senior and student discounted tickets from 80% to
approximately 71 %.
PASSED AND ADOPTED this 9th day of June, 2004.
Ir.A~.('r.A('.nT'rlt
Attest:
MAYOR
CITY CLERK
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION GENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: June 9, 2004
From:
Jorge M. Gonzalez
City Manager
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO APPROVE AN INCREASE TO THE COMMUNITY BENEFIT
FUND SURCHARGE ON TICKETS SOLD AT THE JACKIE GLEASON
THEATER FROM $1.00 TO $1.50 COMMENCING WITH EVENTS
CONTRACTED AFTER JULY 1, 2004, AND TO REDUCE THE SUBSIDY
PERCENTAGE PAID FROM THE COMMUNITY BENEFIT FUND ON
SENIOR AND STUDENT DISCOUNTED TICKETS FROM 80% TO
APPROXIMATELY 71%.
ADMINISTRATION RECOMMENDATION:
Approve the resolution authorizing the revision.
BACKGROUND:
In 1983 pursuant to Resolution 83-17447, the City established a $1.00 surcharge on all
tickets sold at the Jackie Gleason Theater of the Performing Arts (JGT), to provide better
access to culture for its senior citizen population, such surcharge was to be deposited in a
fund administered by the Community Benefit Committee of the City of Miami Beach, said
committee having been created pursuant to the same Resolution. The monies in this fund
are used to subsidize not less than 50% of the cost of theater tickets up to a face value of
$35.00, for the senior citizen residents of the City of Miami Beach. Accounting and
management of the fund was assigned to SMG, the City's managing agent for the JGT,
pursuant to Resolution 93-20871. In 1998, the Community Benefit Committee (CBC)
sunseted and the City Commission assigned its duties, including policy administration of
the Community Benefit Fund (CBF), to the Miami Beach Convention Center Advisory
Board (CCAB). Subsequent to its original formation, actions by the CBC, CCAB and City
Commission, including the most recent Resolution No. 97-22543, have increased the level
of subsidy to its current 80% of face value up to $35.00. Historically, users of the JGT
have provided a minimum of sixty (60) and a maximum of eighty (80) tickets per
performance for available sale to senior citizens and students, whom have been included in
subsequent actions expanding the availability of the reduced price tickets.
At its regular meeting on April 29, 2003, the CCAB reviewed the current financial condition
of the fund. SMG provided a historical recap of the CBF demonstrating that current
trending of ticket sales would create a concern of insolvency in the funding of the program
June 9, 2004
City Commission Memorandum
MBCC Rental Rate Increase
Page 2 of 3
absent any changes. Due to its concerns over the declining balance of the fund, and in an
effort to insure the continuing viability of the program, the CCAB approved a
recommendation to revise the subsidy of these tickets from 80% to 70% of face value up to
$35.00, and to limit the availability of the reduced price tickets to sixty (60) tickets per
performance. This revision was to be effective for events occurring on or after July 1,
2003.
The City Commission Finance & Citywide Projects Committee reviewed this
recommendation at its regular meeting of June 17, 2003, and voted to retain the current
parameters of subsidy and surcharge, directing SMG only to limit the sale to sixty (60)
tickets per performance, and to report periodically on the status of the fund to the CCAB.
Subsequent reports have been presented by SMG to the CCAB on September 2, 2003 and
on January 27,2004, and to the Finance & Citywide Projects Committee on January 28,
2004. At those times, trends showed the fund remaining fairly steady.
At its regular meeting on May 25, 2004, the CCAB again reviewed the current financial
condition of the fund. As of September 30, 2003, the Community Benefit Fund had a
balance of $97,018.66 decreasing from $141,353, a year earlier, the fund balance as of
September 31,2002. Strong demand for the senior program tickets, coupled with lagging
general ticket sales during the current year have dropped the fund balance to $70,080.83
as of April 30, 2004. If no changes to the program's subsidy and surcharge mechanisms
are made, current projections put its balance at $60,210.73 at the end of the currentfiscal
year. SMG recommended strongly that immediate steps be taken to stem this decline, lest
the fund continue toward insolvency. Agreeing with those concerns over the declining
balance of the fund, and in an effort to insure the continuing viability of the program, the
CCAB approved a recommendation to revise the subsidy of these tickets from 80% to
approximately 71 % (allowing for rounding to the nearest $1.00) offace value up to $35.00;
this revision is to be effective for events occurring on or after July 1,2004. The revision will
also raise the surcharge on tickets from the current (and original) $1.00 per ticket up to
$1.50 per ticket; this revision is to be effective for events contracted after July 1,2004.
In analyzing the effect of the proposed decrease in subsidy, limiting of ticket availability and
increase in surcharge, if effected immediately, the projected fiscal year end balance of the
fund is projected to be approximately $87,000, thus reversing the current trend of
decreasing balance. It should be noted that the net effect to the ticket buyer is an increase
in cost from the current maximum of $7.00 to a new maximum of $10.00, which still
represents an extremely cost effective benefit to the senior citizens and students of the City
of Miami Beach.
CONCLUSION
This resolution should be approved to effect an increase of the long-term viability of the
Community Benefit Fund ticket subsidy.
June 9, 2004
City Commission Memorandum
MBCC Rental Rate Increase
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