2009-27089 ResoRESOLUTION NO. 2009-27089
A RESOLUTION OF THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
APPROVING AN ALLOCATION, IN THE AMOUNT OF $137,000,
FROM GENERAL FUND ACCOUNT 011.0930; SAID
ALLOCATION TO BE PROVIDED AND UTILIZED BY THE
FRIENDS OF THE BASS MUSEUM, INC., FOR THE PURPOSE
OF FUNDING OPERATING EXPENSES AT THE BASS
MUSEUM OF ART, THROUGH SEPTEMBER 30, 2009; AND
FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE
A LETTER AGREEMENT WITH THE FRIENDS OF THE BASS
MUSEUM MEMORIALIZING THE PARTIES' RESPECTIVE
OBLIGATIONS WITH REGARD TO CERTAIN MANAGEMENT
AND OPERATION RESPONSIBILITIES OF THE BASS
MUSEUM THROUGH SEPTEMBER 30, 2009.
WHEREAS, the Administration is working closely with the Bass Museum staff, Board of
Trustees, and the Friends of Bass Museum to streamline the current governance model; and
WHEREAS, both the Administration and the Museum agree that additional operating budget
items should be transferred to the Friends of the Bass Museum, Inc., aNot-for-Profit Corporation for
it's oversight and management of the Museum through the end of Fiscal Year (FY) 2008-2009,
which will allow the Friends to pursue potential savings by using non-City contracts for services; and
WHEREAS, on May 5, 2009, the Finance and Citywide Projects Committee approved the
recommendation to transfer a portion of the remaining funding from identified current Fiscal Year
operating expenses from the City to the Friends of the Bass Museum, and directed the
Administration to come back before the end of the fiscal year as part of the budget process to review
recommendations for next fiscal year.
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 approve
an allocation, in the amount of $137,000, from General Fund account 011.0930; said allocation
to be provided and utilized by the Friends of the Bass Museum, Inc., for the purpose of funding
operating expenses at the Bass Museum of Art, through September 30, 2009; and further
authorizing the City Manager to execute a Letter Agreement with the Friends of the Bass
Museum memorializing the parties' respective obligations with regard to certain management
and operation responsibilities of the Bass Museum through September 30, 2009.
PASSED and ADOPTED this 3rd day of June, 2009.
ATTESTED BY:
M IHERRERA O R
MAYOR
A!'P'RO'VED AS TO
ROBERT PARCHER, CITY CLERK FQ~~ ~ ~~ '~~~(~~
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T:WGENDA\2009\June 3\Consent\Bass Museum Reso.doc.RTF
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving the allocation of $137,000 from General Fund account 011.0930 to the Friends of the Bass
Museum for the purpose of funding operating expenses at the Museum through September 30, 2009; and further
authorizing the City Manager to execute a Letter Agreement with the Friends of the Bass Museum in the amount of
$137,000.
Ke Intended Outcome Su orted:
Increase communit ratin of cultural activities.
Supporting Data (Surveys, Environmental Scan, etc.):
The 2009 Community Satisfaction Survey shows that 73.3 % of residents and 58.7 % of businesses feel the City has the
"right amount" of cultural events available. The same survey shows that residents attend museums on average 6.85
times per year. However, 29.3% of residents also feel the City has "too fev~' museums.
Issue:
Should the Cit Commission ado t the resolution?
item summaryircecommenaat~on:
The Bass Museum was established from its inception as a strong public/private partnership through a contractual
agreement entered into 45 years ago when the City accepted the gift of the art collection of John and Johanna Bass.
This agreement stipulates that the City will maintain the collection in perpetuity, keep it open to the public, and provide
basic funding for the maintenance and exhibition of the collection. The agreement further stipulates that the Bass
Museum, as an operating entity, should be overseen by a Board of Trustees. In addition to the City and the Board of
Trustees, a third entity exists to promote and further the mission of the Bass Museum of Art: The Friends of the Bass
Museum, Inc. This private and separate 501(c)3 organization was established in 1978 as the membership and
fundraising arm of the Museum.
The current Museum staff consists of City employees (both classified and unclassified) and Friends employees, with
substantial differences in benefits and pay scales. This has created inequities between the employees. To remedy this
situation, the Administration is working closely with the Museum's staff and Boards to streamline the current govemance
model and to standardize employment practices. While the City remains committed to the Bass Museum, both the
Administration and the Museum feel that the City can continue to fulfill its contractual obligations without having actual
City employees working at the Museum. The objective is to transition all Bass Museum positions to the Friends of the
Bass over time, which will allow for significant savings to the City in salaries and benefits. Pursuant to our contractual
obligations, we would continue to financially support the Museum.
Further, both the Administration and the Museum agree that additional operating budget items should be transferred to
the Friends of the Bass Museum as well for their oversight and management. In addition to allowing the Friends to
pursue potential savings by using non-City contracts for services such as carpet cleaning or for the purchase of office
supplies, for example, transferring the budget allocations for certain line items would also begin the process of
transitioning much of the day-to-day administration and oversight to the Friends. This is an important step in the move
towards increased simplification of the Museum's governance structure, which has been considered essential for the
future well-being of the institution and was included in the Museum's own five-year strategic plan, completed in March
2007.
The Finance Committee approved the transfer of the aforementioned operating line item balances and recommended
that the Administration come back before the end of the fiscal year as part of the budget process for next fiscal year with
an explanation of what recommendations are being made going forward. Since the time of the Finance Committee
meeting, a more current analysis of the Bass Museum budget was completed and the Administration is recommending a
transfer of a total of $137,000. This is made up of $85,000 is salary savings and $52,000 in operating expenses. The
Administration recommends the City enter into a letter agreement with the Friends, which memorializes the services the
Friends are obligated to perform in exchange for the funding.
Adviso Board Recommendation:
The Finance and Cit ide Pro'ects Committee endorsed this recommendation at the Ma 5, 2009 meetin .
Financial Information:
Source of Amount Account Approved
F ~ 137,000 011.0930
2
O I Total 137,000
Financial Impact Summary:
Cit Clerk's Office L
Max Sklar, ext. 6116
Sign-Offs
D a it r A i an er Ci ana er
MAS HM JMG
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: June 3, 2009
SUBJECT A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AN ALLOCATION, IN THE AMOUNT
OF $137,000, FROM GENERAL FUND ACCOUNT 011.0930; SAID
ALLOCATION TO BE PROVIDED AND UTILIZED BY THE FRIENDS OF THE
BASS MUSEUM, INC., FOR THE PURPOSE OF FUNDING OPERATING
EXPENSES AT THE BASS MUSEUM OF ART, THROUGH SEPTEMBER 30,
2009; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A
LETTER AGREEMENT WITH THE FRIENDS OF THE BASS MUSEUM
MEMORIALIZING THE PARTIES' RESPECTIVE OBLIGATIONS WITH REGARD
TO CERTAIN MANAGEMENT AND OPERATION RESPONSIBILITIES OF THE
BASS MUSEUM THROUGH SEPTEMBER 30, 2009.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funding is available in the FY 2008/09General Fund, Bass Museum of Art Budget.
ANALYSIS
The Bass Museum was established from its inception as a strong public/private partnership
through a contractual agreement entered into 45 years ago when the City accepted the gift of the
art collection of John and Johanna Bass. This agreement stipulates that the City will "maintain
the collection in perpetuity...providefnr the exhibition of the collection, keep it open and available
to the public," and provide basic funding for the maintenance and exhibition of the collection. The
City fulfills this obligation by funding the operational elements of the Museum, and maintaining the
building, which is a City asset. The agreement further stipulates that the Bass Museum, as an
operating entity, should be overseen by a Board of Trustees. The Board has the responsibility for
Museum policies and procedures, as well as day-to-day management through the staff it
employs. The Museum's Executive Director/Chief Curator, for example, is a City employee with
full benefits, but is hired by, and answers to, the Board of Trustees.
In addition to the City and the Board of Trustees, a third entity exists to promote and further the
mission of the Bass Museum of Art: The Friends of the Bass Museum, Inc. This private and
separate 501(c)3 organization was established in 1978 as the membership and fundraising arm
of the Museum. The President of the Friends chairs the Board of Trustees. The Friends' Board
of Directors serves as advisory to the Trustees, advocates and raises funds for the Museum, and
sponsors Museum programs, which include all special exhibitions and educational programs.
The Museum's membership, education, development and marketing efforts are realized by
employees of the Friends of the Bass Museum. Thus the current Museum staff consists of City
employees (both classified and unclassified) and Friends employees, with substantial differences
in benefits and pay scales.
To remedy this situation, the Administration is working closely with the Museum's staff and
Bass Museum of Art
June 3, 2009
Page 2 of 2
Boards to streamline the current governance model and to standardize employment practices.
While the City remains fully committed to the Bass Museum and its success, both the
Administration and the Museum feel that the City can continue to fulfill its contractual obligations
without having actual City employees working at the Museum. To this end two recently-vacated
City positions at the Bass, the Assistant Director and Curator, have been filled as employees of
the Friends. The objective is to transition all Bass Museum positions to the Friends of the Bass
over time, which will allow for significant savings to the City in salaries and benefits (especially
pension).
Further, both the Administration and the Museum agree that additional operating budget items
should be transferred to the Friends of the Bass Museum as well for their oversight and
management. In addition to allowing the Friends to pursue potential savings by using non-City
contracts for services such as carpet cleaning or for the purchase of office supplies, for example,
transferring the budget allocations for certain line items would also begin the process of
transitioning much of the day-to-day administration and oversight to the Friends. This is an
important step in the move towards increased simplification of the Museum's govemance
structure, which has been considered essential for the future well-being of the institution and was
included in the Museum's own five-year strategic plan, completed in March 2007.
The item was discussed at the May 5, 2009 Finance and Citywide Projects Committee. At the
time of the meeting the estimate from the Administration was $109,131 in salaries to be used by
the Friends for salary expenses related to the Museum's Assistant Director and curatorial
services. These funds are available as a result of recent vacancies in these two positions.
Additionally, it was also estimated that an additional $107,800 be transferred to the Friends for
operating expenses. These funds are can-ently available in the City's Bass Museum General
Fund budget for professional services (carpet cleaning), sanitation fees, rent/building/equipment
(art storage), contract maintenance (security alarm, alarm monitoring and dust mats), office
supplies, repairs/maintenance, other operating expenses and dues. The combined total at the
time of the meeting was $216,931 and represented the balance of funds remaining in the
aforementioned line items for the current fiscal year. The Administration also requested the
Committee consider a transfer of similar line items in future years as well.
The Finance Committee approved the transfer of the aforementioned operating line item
balances and recommended the Administration come back before the end of the fiscal year as
part of the budget process for next year with an explanation of what its recommendations are.
Since the time of the Finance Committee meeting, a more current analysis of the Bass Museum
budget was completed and the Administration is recommending a transfer of a total of $137,000.
This is made up of $85,000 is salary savings and $52,000 in operating expenses.
The Administration recommends the City enter into a letter agreement with the Friends
delineating the responsibilities the Friends would be required to meet in exchange forthe funding.
These obligations would be very similar to functions currently carried out jointly between the City
and Friends.
CONCLUSION
The Administration recommends approving the transfer of currently-budgeted operating funds
from the City to Friends of the Bass Museum, Inc.
JMG/HMF/mas
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