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2009-27217 ResoRESOLUTION NO. 2009-27217 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SUBSTANTIVE TERMS, ASSET FORTH IN THAT CERTAIN TERM SHEET ATTACHED AS EXHIBIT "A" TO THIS RESOLUTION, TO THE NEW AGREEMENT BETWEEN THE CITY AND THE GMCVB, WHICH AGREEMENT SHALL BE FOR A FIVE(5) YEAR TERM, COMMENCING ON OCTOBER 1, 2009, AND ENDING ON SEPTEMBER 30, 2014; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND FINALIZE THE NEW AGREEMENT WITH THE GMCVB AND, IF SUCCESSFUL, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT, SUBJECT TO AND CONTINGENT UPON THE FOLLOWING CONDITIONS: 1.) EXCEPT FOR THE INCLUSION OF THE NEW SUBSTANTIVE TERMS IN THE ATTACHED TERM SHEET (AS WELL AS DELETION OF ANY PRIOR TERMS FROM THE EXISTING CMB/GMCVB AGREEMENT WHICH MAY NO LONGER BE APPLICABLE), THE NEW AGREEMENT SHALL BE IN SUBSTANTIALLY THE SAME FORM, INCLUDING, WITHOUT LIMITATION, INCORPORATING THE SAME STANDARD MINIMUM TERMS AND CONDITIONS SAFEGUARDING THE CITY, AS THE EXISTING (I.E. 2004-2009) CITY-GMCVB AGREEMENT; 2.) THE FINAL VERSION OF THE NEW AGREEMENT SHALL BE SUBJECT TO FINAL REVIEW AND SIGN OFF BY THE CITY MANAGER AND SUBJECT TO FORM APPROVAL BY THE CITY ATTORNEY; AND 3.) IN THE EVENT THAT THE CITY AND GMCVB DEEM IT NECESSARY TO INCLUDE ANY NEW SUBSTANTIVE TERMS (WHICH ARE NOT CONTAINED IN THE ATTACHED TERM SHEET) THEN, PRIOR TO FINALIZING THE NEW AGREEMENT, THE CITY MANAGER SHALL BE REQUIRED TO REPORT SAME TO THE CITY COMMISSION. WHEREAS, on December 8, 2004, the City Commission adopted Resolution No. 2004- 25767, which approved an agreement with the Greater Miami Convention and Visitors Bureau (GMCVB) for a term of five (5) years from, October 1, 2004, through September 30, 2009 (the existing Agreement); and WHEREAS, on July 7, 2009, the Finance and Citywide Projects Committee directed the Administration to negotiate a new five (5) year agreement with the GMCVB (the new Agreement); and WHEREAS, the City Administration and GMCVB have concluded negotiations on the substantive terms of the new Agreement, which would also have a five (5) year term, commencing on October 1, 2009, and ending on September 30, 2014, and including a termination for convenience by the City, with sixty (60) day notice; and WHEREAS, the parties have agreed to a Base Fee in the new Agreement, in the amount of five million dollars ($5,000,000) per year, with an adjustment, beginning in the second contract year, by 3% or the increase in CPI-U, whichever is less; and WHEREAS, the GMCVB will annually support sub-market initiatives developed by the City (in partnership with the GMCVB) of not less that nine hundred and fifty thousand dollars ($950,000); and WHEREAS, additional terms are outlines in the attached Term Sheet (Exhibit A), which include annual performance objectives, monthly/annual reports, additional marketing supportforthe City and Miami Beach Convention Center, European sales efforts and City representation on all boards and committees of the GMCVB; and WHEREAS, the substantive terms of the new Agreement are incorporated in the Term Sheet, attached as Exhibit "A" hereto; the form of the existing Agreement will also serve as the boilerplate for the new Agreement; and WHEREAS, the City Manager recommends the Mayor and City Commission approve the new Agreement, subject to the conditions set forth in this Resolution. 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 of the City of Miami Beach, Florida, hereby approve the substantive terms, asset forth in Exhibit "A" to this Resolution, of the new Agreement between the City and the GMCVB, which Agreement shall have a five (5) year term, commencing on October 1, 2009, and ending on September 30, 2014, and further authorize the City Manager to negotiate and finalize the new Agreement and, if successful, approving and authorizing the Mayor and City Clerk to execute the Agreement, subject to and contingent upon the following conditions: 1.) except for the inclusion of the new substantive terms in the attached Term Sheet (as well as deletion of any prior terms from the existing CMB/GMCVB Agreement which may no longer be applicable), the new Agreement shall be in substantially the same form, including, without limitation, incorporating the same standard minimum terms and conditions safeguarding the City, as the existing Agreement; 2.) the final version of the new Agreement shall be subject to final review and sign off by the City Manager and form approval by the City Attorney; and 3.) in the event that the City and GMCVB deem it necessary to include any new substantive terms (which are not contained in the attached Term Sheet) then, prior to finalizing the new Agreement, the City Manager shall be required to report same to the City Commission. PASSED and ADOPTED this 24th day of September, 2009. ATTEST: ~~C~~ CITY CLERK MA OR Robert Parcher Matti Herrera. Bower JMG/HMF/MAS T:WGENDA\2009\September 24\Regular\GMCVB Contract Renewal RESO.doc APPROVED AS TO FORM & LANGUAGE ~ FOR F,XECUTION ZZ Get ,J St8 COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving the substantive terms, as set forth in that certain term sheet attached as exhibit "A" to this Resolution, to the new Agreement between the City and the GMCVB, which Agreement shall be for a five(5) year term, commencing on October 1, 2009, and ending on September 30, 2014; further authorizing the City Manager to negotiate the final Agreement with the GMCVB and, if successful, approving and authorizing the Mayor and City Clerk to execute the Agreement, subject to and contingent upon the following conditions: 1.) except for the inclusion of the new substantive terms in the attached term sheet, as well as any other prior negotiated terms which may no longer be applicable, the new agreement shall be in substantially the same form, including, without limitation, incorporating the same standard minimum terms and conditions safeguarding the City, as the prior (i.e. 2004-2009) City-GMCVB Agreement; 2;) the final version of the new Agreement shall be subject to review and sign off by the City Manager and subject to form approval by the City Attorney; and 3.) in the event that the Ciry and GMCVB deem it necessary to include any new substantive terms (which are not contained in the attached term sheet), then, prior to finalizing the Agreement, the Ci Mana er shall be re uired to re ort same to the Ci Commission. Ke Intended Outcome 5u orted: Increase community rating of cultural activities and improve availability and accessibility of major events. Supporting Data (Surveys, Environmental Scan, etc )• The City's 2009 Community Satisfaction Survey results shows that while more than two-thirds of all residential respondents, 69.2%, suggested the tourism industry in Miami Beach contributes "about the right amount" to the quality of life of residents, another 13 3% indicated the industry contributes "too little." Issue: Shall the Ci Commission a rove and authorize the execution of the A reement? Item Summa /Recommenaation: 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 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. 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 8, 2009, the Finance and Citywide Projects Committee directed the Administration to negotiate a new five (5) year agreement with the GMCVB. The parties have reached agreement on the following terms, and the Administration is seeking authorize to conclude negotiations with the GMCVB as to the remaining points in the agreement; providing that the final negotiated agreement shall be subject to the final review and approval of the City Manager and City Attorney's Office, and that any substantive changes shall be brought back to the Mayor and City Commission. Advisory Board Recommendation: On July 8, 2009, the Finance and Citywide Projects Committee directed the Administration to negotiate a new five (5) year agreement with the GMCVB Finanr_ial Information Source of Amount Account Approved Funds: ~ 5,000,000 FY09/10 Resort Tax Budget 2 OBP Total 5,000,000 FY09/10 Resort Tax Budget Financ al Impact Summary: This Agreement provides for a savings of approximately $600,000 from the current GMCVB Agreement Ci Clerk's Office Le islative Trackin Max Sklar, ext. 6116 Si n-Offs: De artment Director As Man er Ci Mana er MAS H JMG r:WGENDA\2009\September 24\Regular\GMCVB Contr~t Renewal SuMM.tloc ?~ MIAMIBEACH U / ~ ~.__~ AGENDA ITEM ~ / _' DATE (- 2 ~'"0 m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 24, 2009 SuB.IECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SUBSTANTIVE TERMS, AS SET FORTH IN THAT CERTAIN TERM SHEET ATTACHED AS EXHIBIT "A" TO THIS RESOLUTION, TO THE NEW AGREEMENT BETWEEN THE CITY AND THE GMCVB, WHICH AGREEMENT SHALL BE FOR A FIVE(5) YEAR TERM, COMMENCING ON OCTOBER 1, 2009, AND ENDING ON SEPTEMBER 30, 2014; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE THE FINAL AGREEMENT WITH THE GMCVB AND, IF SUCCESSFUL, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT, SUBJECT TO AND CONTINGENT UPON THE FOLLOWING CONDITIONS: 1.) EXCEPT FOR THE INCLUSION OF THE NEW SUBSTANTIVE TERMS IN THE ATTACHED TERM SHEET, AS WELL AS ANY OTHER PRIOR NEGOTIATED TERMS WHICH MAY NO LONGER BE APPLICABLE,THE NEW AGREEMENT SHALL BE IN SUBSTANTIALLY THE SAME FORM, INCLUDING, WITHOUT LIMITATION, INCORPORATING THE SAME STANDARD MINIMUM TERMS AND CONDITIONS SAFEGUARDING THE CITY, AS THE PRIOR (I.E. 2004-2009) CITY-GMCVB AGREEMENT; 2.) THE FINAL VERSION OF THE NEW AGREEMENT SHALL BE SUBJECT TO REVIEW AND SIGN OFF BY THE CITY MANAGER AND SUBJECT TO FORM APPROVAL BY THE CITY ATTORNEY; AND 3.) IN THE EVENT THAT THE CITY AND GMCVB DEEM IT NECESSARY TO INCLUDE ANY NEW SUBSTANTIVE TERMS (WHICH ARE NOT CONTAINED IN THE ATTACHED TERM SHEET), THEN, PRIOR TO FINALIZING THE AGREEMENT, THE CITY MANAGER SHALL BE REQUIRED TO REPORT SAME TO THE CITY COMMISSION. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING Funding is available from the Fiscal Year 2009/10 Resort Tax Budget. ANALYSIS 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 also engages in local, national and international marketing of the GMCVB Agreement City Commission Meeting September 24, 2009 Page 2 of 7 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. BACKGROUND 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. In 1998, the CMB advised the GMCVB of its intention not to renew the Interlocal Agreement and the CMB negotiated a one (1) year Agreement with the GMCVB ending on September 30, 1999. Concurrent with its approval of the Agreement, the City Commission directed the Administration to establish a Blue Ribbon Committee on Conventions and Tourism (Committee) that would evaluate the Bureau and determine whether the City should continue with a new agreement with the Bureau after September 30, 1999, or issue a Request for Proposals (RFP). After several Blue Ribbon Committee meetings, on June 24, 1999 a workshop was conducted with the Mayor and City Commission. Based upon the findings and recommendations ofthe Blue Ribbon Committee, as amended in part by the Administration, 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. In anticipation of the expiration of the initial term of the contract, on March 20, 2002, a referral was made to the Finance and Citywide Projects Committee to discuss the City's renewal option. On April 8, 2002, the Finance and Citywide Projects Committee met and discussed the renewal option at length. The Committee instructed the Administration to meet with the GMCVB staff to evaluate the Bureau's performance on the specific elements stipulated in their agreement and report on the findings at the May 8, 2002 Commission Meeting, with a recommendation on how to proceed with thetwo-year extension to the GMCVB agreement, including specific goals to be accomplished. In addition, the Committee also asked staff to develop an RFQ for consultant services to review the current structure, model and scope of services of the Bureau, as compared to other similar organizations and alternatives. On May 22, 2002, the Mayor and City Commission adopted Resolution No. 2002-24854, authorizing the renewal of the Agreement between the City of Miami Beach and the Greater Miami Convention and Visitors Bureau (the "Bureau") conditioned upon the issuance of a Request for Proposals (RFP) to review and assess the current Bureau governance, structure, processes and overall operations, and make recommendations as towhat model and/or structure should provide the services to achieve optimal sales, marketing, and public relations efforts to enhance the City's Tourism and Convention Industries. On November 13, 2002 the Mayor and City Commission adopted Resolution No. 2002-25072 and authorized a contract with ERA to: Review and assess the Bureau governance, structure, processes and overall operations; Make recommendations as to what type of model/structure should exist to enhance the City of Miami Beach's tourism and convention industries; Compare and provide a comprehensive report on Bureau operations relative to industry standards; Evaluate and recommend strategic approaches for the CMB to meet objectives identified in the Market Assessment; and Assess any adverse/positive impact as a result of the Bureau's efforts to market Greater Miami versus Miami Beach only. GMCVB Agreement City Commission Meeting September 24, 2009 Page 3 of 7 On March 15, 2004, the Finance & Citywide Projects Committee discussed the City's review assessment and recommended structure of the GMCVB conducted by ERA. The Committee instructed the Administration to review and analyze the GMCVB's latest contract to rate how they have fulfilled their obligations and compare the City's consultant report in conjunction with Miami- Dade County's and the GMCVB's strategic plan. The Strategic Plan incorporates the findings and recommendations ofthe independent studies performed and the recommended priorities adopted by the GMCVB Board. Subsequently, 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. The parties have reached agreement on the following terms, and the Administration is seeking authorization to conclude negotiations with the GMCVB as to the remaining points in the agreement; providing that the final negotiated agreement shall be subject to the final review and approval of the City Manager and City Attorney's Office, and that any substantive changes shall be brought back to the Mayor and City Commission. GMCVB PERFORMANCE The 2004 Agreement requires the GMCVB to provide the City with monthly and annual performance reports which measure and benchmark the Bureau's success in achieving their goals identified in the Strategic plan. The data reported covers GMCVB operating policies and procedures, tourism sales, GMCVB membership, return on investment (ROI) analysis (conventions and meetings, advertising, tourism sales, etc.), as well as other resource reports. Attached are copies of the Destination Strategic Plan Update and a summary of their monthly/annual performance report for the term of the current Agreement. Additionally, below is a brief synopsis of their performance during this current contract. 2004-2009 MBCC Bookings: 323 Est, Room Nights: 972,804 Est. Economic Impact: 605,792,268 Hotel Bookings: 2,639 Est, Room Nights: 1,245,320 Est. Economic Impact: 510,985,053 Meetings Express: Bookings/Meetings: 973 Est. room Nights: 72,651 Est. Economic Impact: 73,120,440 MBCC Leads: MBCC Leads Generated: 538 Hotel Leads Generated: 6,907 Other Leads: 516 GMCVB Agreement City Commission Meeting September 24, 2009 Page 4 of 7 AGREEMENT TERMS: The terms below reflect adjustments to the previous Agreement in certain areas to address changing or new needs relative to our Convention business and marketing expectations. The prior (i.e. 2004-2009) City-GMCVB Agreement is attached for your reference, which will also serve as the boiler plate for the new Agreement. TERMS Five (5) years commencing on October 1, 2009, and ending on September 1. Term 30, 2014; termination for convenience with 60 day notice. A "contract year" shall be defined as the period from October 1 through Se tember 30 of the followin ear coincidin with the Ci 's Fiscal Year . $5,000,000 per year. 2. Base Fee 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 ad~usted b 3% or the increase in the CPI-U, whichever is less. GMCVB agrees that not less than $950,000 will be targeted annually to 3. Sub-Market Initiatives 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. The Bureau's Marketing and Tourism Committee must fully reflect and be re resentative of the sub-market initiatives referenced above. GMCVB will make an annual contribution to the City's Cultural Arts Council 4. Cultural Arts Council of $50,000 er ear. The following performance objectives shall be included in the 5. Performance Agreement for achievement during the Agreement term: Objectives A. Organizational Improvement o Report on/update the status of the current five-year Strategic Plan (year 1) o Develop and present for approval a new Strategic Plan (year 1) o Conduct an annual retreat (year 1, year 3) o 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. GMCVB Agreement City Commission Meeting September 24, 2009 Page 5 of 7 TERMS Provide at beginning of term and subsequently as needed/updated: 6. Reports 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 center related) o In-kind Partnership Reports o 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 o 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) o 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.) o Survey results as required per agreement • Convention Center Sales Customer Service Feedback Re orts GMCVB Agreement City Commission Meeting September 24, 2009 Page 6 of 7 TERMS 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 GMCVB publications in-room ma azines, 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 develo annual international sales and marketin 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. CONCLUSION The proposed agreement re-sets the base agreement fee at the same level as the base agreement fee of the current Agreement that expires on September 30, 2009 ($5 million). The FY 08/09 allocation under the current agreement was $5.6 million. Based on the foregoing, it is recommended that the Mayor and City Commission adopt the attached Resolution and authorize execution of a new five (5) year contract between the GMCVB and the City of Miami Beach; further authorizing the City Manager's Office to conclude negotiations with the GMCVB; providing that the final negotiated agreement shall be subject to the final review and approval of the City Manager and City Attorney's office, and that any substantive changes shall be brought back to the Mayor and City Commission; and authorizing the Mayor and City Clerk to execute the final negotiated agreement. JMG/HF/MAS 0 'o M h 3 L t TM GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update - FY 2009/2010 GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #1-Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets 'Rc~pous~tilrl'arties Str~teg}~~~~ _ Short'Rer.rii Steps::' ,r ; GMCVB A. Miami Beach Convention • Secure Funding. City of Miami Beach Center • Finalize Design Plan. Global Spectrum • Assess Facility Miami-Dade County l.A.l. Continue to support Competitiveness/ and advocate for the planned Needs. expansion of the Miami Beach Convention Center as well as providing collaborative input and assessment of the facility as possessing the latest and emerging state-of--the-art services/facilities. GMCVB City of Miami Beach Global Spectrum Miami-Dade County City of Miami GMCVB Member Hotels A. Miami Beach Convention Center 1.A.2. Continue to monitor industry trends, best practices as well as competitive challenges to provide and support incentives required in order to effectively compete. • Assess Industry Trends/Needs. Develop Appropriate Incentive Packages. • Develop Criteria to Monitor Effectiveness. • Meet Global Spectrum/Bureau. • Align with Miami Dade Sports Commission for summer business. GMCVB City of Miami Beach Global Spectrum Miami-Dade County City of Miami GMCVB Member Hotels B. Other Meetings Facilities 1.B.1. Continue to support and advocate for the optimum use and promotion of other meetings venues within the community. • Assess Industry TrendslNeeds. • Assess Facility Competitiveness/Needs. • Profile & Target "High Value" Customers. • General Obligation Bond measure passed ($55 million approved). • Convention Sports & Leisure (CSL) Study completed. • 05/06 dialogue with MB and county on how best to proceed • Architects input and stakeholders meeting completed • Ongoing meetings with City Miami Beach/County/Global Spectrum to identify additional funds for overall project • Updated CSL Study in FY 07- 08 • Ongoing analysis of trends • $60,000 Incentive Fund proposed for FY 08-09 • Criteria established internally. • MB Task force/General Managers meeting provide opportunity for continued analysis of needs, trends, etc. • In FY 08-09 analyze International potential for MBCC. • Assessment ongoing/ with hotels/ task force meetings, general managers, etc. • "High Value" implementation underway through the implementation of a Meetings Express Department (direct mail), website profile and subsequent programs directed to this audience. • Downtown incentives used as additional sales tools for shoulder business. • Added Carnival Center for the Performing Arts as venue i.e. Choral Directors in FY 06-07 and GALA Choruses in FY 07-08. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination 1 Rev: 8-27-09 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #1-Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets ,.r`9#~ ~~.'`x ~tit~ ~KLi~~ ?R"es 'onsihle'P,ai-ties. ~"~4 r~j",.i,f ~ -: ] I , s, -~trnte~ y'' ~ ~'~ ," ~ s ''t e .F; d - ,.. i 1 s YY r ~ ,1. ~ ,Short.Term,Ste s'? ~'_ .,, ~ - t< ^~5 ~ < r '~ Tit ~ t'~' 1YtE'tij. '«~;~ ~. "'~ ~ ,, ; °,Status~+ ~. GMCVB C. Airport/Seaport . Assess Industry TrendsMeeds. • Initial Customer Service Miami-Dade County Productivity • Solidify Strategic Alliance Program launched at MIA. Miami International I.C.I. Continue to support Partners. • Pre & Post Cruise Promotion Airport strategic alliances with • Develop and Implement Program funded with Port of Port of Miami Miami International Airport Integrated Sales and Customer Miami for FY 06-07 and Miami Airline Carriers and the Port of Miami Service Marketing Plans proposed for FY 07-08. GMCVB Member designed to maximize the Involving All Partners. • Citywide welcome program Cruise Lines number of overnight visitors launched in FY 06-07 for larger GMCVB Member generated. meetings and conventions. Hotels • New Route Development opportunities continue being explored with MIA. • Comprehensive Customer Service program launched in partnership with all key stakeholders including airport, seaport, taxis and hotels including secret shopper program and branding initiative. • Developed a co-op marketing program with MIA, the Port of Miami, American Airlines and the Beacon Council to promote Greater Miami and a preferred destination to live, work and play. • Participated in Miami Beach Mayor's Blue Ribbon Task Force on Tourism. • Establish partnership with Miami Beach VCA to help develop additional enhancements of the guest experience at MIA and the Port of Miami. • Worked with MIA to coordinate multi-agency participation in comprehensive customer service initiative for POW WOW delegates. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Rev: 8-27-09 2 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #1 -Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets ;Rc •'ble,Parties bi ~~ , ~"~.., ~St site v . 'Short-Term Ste s.~~ ~ ~f ~ •~' ~' ~: .~h ~ GMCVB D. Attractions • Conduct Assessment of Current • Attractions Sub-Committee Attractions Alliance "Attractions Package" established. 1.D.1 Take an active role in (SWOT). • Attractions Co-Op Advertising monitoring the • Profile and Target "High Program implemented in FY competitiveness of Value" Customers. OS-06, FY 06-07, FY 07-08 to "attractions" assets and their be continued in FY 08-09. relevance to the expectations • Working with the established of current or potential visitor GMCVB Attractions profiles. Subcommittee, Staff developed and implemented a regional cooperative advertising program that generated an additional $50,000 in partner revenue under the "Amazing Miami Attractions" umbrella. • New website and brochure dedicated to attractions was launched under the umbrella of Amazing Miami Attractions. • New cooperative advertising program showcasing for the first time a combined ticket offer by three of the major attractions. • Evolve the GMCVB definition of "attraction" to be consistent to that established by the Florida Attraction Association (FAA) and update marketing channels accordingly. • Work with the attractions to help promote new and significant developments (i.e. Miami Seayuarium's Dolphin Harbour, Metrozoo's Amazon & Beyond, etc.) • Committed to have consistent presence for an attractions representative at major Trade and Media efforts. • Develop plan for afirst-ever "Miami Attractions Month" in FY 09/10 modeled after Miami Spice and Miami Spa. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Rev: 8-27-09 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #1-Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets Regponsible:'Purties, _ 'Skrategy Short,Ter~m'Steps, ;:Status;>~z. , ~~,, ~~"; Miami-Dade County E. Beach Renourishment Establish/Strengthen • No current GMCVB funds State of Florida and Revitalization "Coalition". committed. Coastal Communities • Review/Assess Current Plan. Beachfront Properties ].E.l Ensure the • Establish Consensus on Next GMCVB maintenance, protection and Steps. optimum accessibility of the region's beaches by working with local municipalities, County, State and Federal agencies to ensure that a proper and coordinated plan is in lace. Miami-Dade County F. Way Finding and • Establish/Strengthen • $25,000 allocated in FY OS-06 State of Florida DOT Transportation "Coalition". to support initiative. Funds Local Municipalities • Review/Assess Current rolled-over to a new proposed GMCVB 1.F.1. Encourage, advocate System(s) including Signage $50,000 for FY 06-07. and support the development and Collateral Materials. • In FY 07-08, GMCVB stands and expansion of a • Establish Consensus on Next ready to partner with community-wide way- Steps. municipalities and FDOT and finding program. will earmark funding to '~, leverage in the development of a community-wide program. • GMCVB is working with Miami Dade Consumer Services Division to develop updated collateral material to be distributed at Rental Car counters to assist visitors. • GMCBV is working with Miami-Dade Consumer Services to include additional ~~ information on collateral materials distributed to visitors that would include details on the SiJNPASS program. • Actively supporting the development and promotion of the Miami Intermodal Center at MIA that will serve a -arge number of visitors. The Rental Car Center component is schedule to open in May 2010. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Rev: 8-27-09 4 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #1-Enhance the Destination's Tourism and Related Infrastructure and Continue to Develop and Expand Attraction Assets above 1 F 1 S Miami-Dade County F. Way Finding and • Establish/Strengthen . . . ee • State of Florida DOT Transportation "Coalition". Local Municipalities • Concurrent with 1.F.1, GMCVB 1.F.2. Encourage, advocate Review/Assess Current Private Transportation and support the development System/Services. and expansion of • Establish Consensus On Next Public/Private Steps. Transportation services that assist in serving visitor needs. Miami-Dade County F. Way Finding and • Establish/Strengthen • See 1.F.1. above State of Florida DOT Transportation "Coalition". Local Municipalities • Identify Funding Source. 1.F.3. Forge a • Based on Findings/ public/private partnership Recommendations of 1.F.1. & with stakeholders to design 1.F.2 Develop Overall Funding an optimum and efficient Requirements. funding mechanism to support transportation systems and services. A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Rev: 8-27-09 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #2 -Enhance the Visitor Experience t.,. ~Responsiblc `Part GMCVB GMCVB Member Hotels Related Hospitality Industry Associations ------~-----T-;z ~ fitrateg~~ A. Service & Attitude • 2.A.1. Support and advocate for the creation and establishment of a collaborate "Service & Attitude" culture within the broadest possible scope of the hospitality industry ensuring that service levels and customer perceptions exceed leading industry standards. `Short Term `Ste s ~'' Establish/Strengthen "Coalition". Survey/Evaluate Current Service LevelsMeeds. Identify/Review "Best Practices". Collaborate with Stakeholders to Develop Action Plan for Next Steps. Establish a "Branding Strategy" to launch initial program. Miami-Dade County GMCVB Taxi & For Hire Vendors GMCVB Member Hotels Miami International Airport Port of Miami Greater Ft. Lauderdale CVB Ft. Lauderdale/Hollywood International Airport B. Taxi Service I • 2.B.1. Continue to take an active and supportive role in the ongoing commitment of ensuring the highest levels of Taxi and for-hire service including operating standards, service and attitude and distribution , systems including maximizing the arrival and departure of visitors at Ft. Lauderdale/ Hollywood International Airport. Establish/Strengthen "Coalition". Survey/Evaluate Current Service Levels/Needs. Identify/Review "Best Practices". Collaborate with Stakeholders to Develop Action Plan for Next Steps. Establish annual taxi industry recognition activity on-site at key hubs (Airport/Convention Center/Hotels). • FY 04-OS Service & Attitude Program collaboration with Miami Beach VCA funded. GMCVB has budgeted "Seed" dollars for expanded collaboration in both the FY OS-06 and newly proposed FY 06-07 budget. GMCVB launched comprehensive customer service initiative in FY 06-07 with secret shopper component and branding effort. In FY 06-07, GMCVB formally launched the "Miami Begins with Me" customer service brand, produced various customer service tools as well as an advertising awareness campaign. In FY 08-09, Expanded Customer Service effort under Miami Begins with Me in partnership with Miami-Dade College in preparation for POW WOW. Comprehensive Customer Service program launched in FY 06-07 in partnership with all key stakeholders including airport, seaport, taxis and hotels including secret shopper program and branding initiative. GMCVB partnering with Consumer Service Division to recognize taxi drivers of the quarter and year. Taxi Appreciation Event launched in FY 07-08 in cooperation with Miami Dade County CSD and MIA. Special customer service recognition in GMCVB publications • In FY 07-08, developed close partnership with Miami Dade Consumer Services Taxi 6 }. s . ~r, MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #2 -Enhance the Visitor Experience Division and helps train new drivers and co-sponsors recognition award for exemplary drivers. • Developed a Taxi Driver Handbook to assist drivers in finding key visitor locations in the communi GMCVB C. Repeat Visitors • Develop/Implement Research • See 3.C.1. GMCVB Members Methodologies to Miami International 2.C.1. Incorporate Establish/Expand "Repeat Airport strategies in both research as Visitor" Profile Including Port of Miami well as service and attitude Strengths, Weakness, programs designed to Opportunities and Threats. support the maximum . Evaluate Funding and Develop generation of "repeat Recommendations to Support visitors" to the destination. Program to Target and Attract "Repeat Visitor". A Shared Vision: To be America's Premier Tropical, Cosmopolitan Destination Rev: 8-27-09 7 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results ~ ~~:~ ;~/r~-"1 k~ 'k ~ ~. ~ [ ik~u~ tit iiA~i t ~SIY'S s i Nt t _ _.jjr R/. 7}-~'4 ,k1' t f~'~' 1 ~ 1 ~~ ' ~~ kJ~ Sri w ~ .Res pn~ ble;l'arties'; . ~ ''s~~'`~'; ~,~..•Strat. St~, s `'~~ , 'z ,..~ (Short Term fi ~~ _ ,. r. ~?~ At ~ . GMCVB A. Leisure Sales and . Design Plan for FY 04-OS in FY OS-06 Marketing Plan Marketing conjunction with Development established and implemented. of Program of Work Utilizing . FY 06-07 Marketing Plan 3.A.1. Design and implement Template Outlined in SP established and implemented. a fully- integrated Sales and Section III. . FY 07-08 Marketing Plan Marketing Plan in support of established and implemented. this desired outcome while . FY 08-09 Marketing Plan defining and targeting High established and implemented. Value Customers that will o timize available resources. GMCVB A. Leisure Sales and . Incorporate Specific Strategies • FY OS-06 Marketing Plan Industry Stakeholders Marketing in Fully-Integrated Marketing established and implemented. Plan and Program of Work. . FY 06-07 Marketing Plan 3.A.2. Continue to grow . Monitor Results. established and implemented. domestic and international • FY 07-08 Marketing Plan overnight visitors while established and implemented. maintaining optimum . FY 08-09 Marketing Plan average daily room rates and established and implemented. occupancy performance for area hotels. GMCVB A. Leisure Sales and Incorporate Specific Strategies • FY OS-06 Program of Work Industry Stakeholders Marketing in Fully-Integrated Marketing established and implemented. Plan and Program of Work. . FY 06-07 Program proposed. 3.A.3. Continue to focus on . Monitor Results. • Summer Festival Season Sales growing summer and Initiatives continue to be shoulder overnight visitation. expanded. • First-ever "Family" themed summer TV spot developed. • Television program expanded with private co-op funds (Liberty Travel) in FY OS-06. • Further expanded Miami Spice Restaurant month in August and September with record number or participating restaurants in FY 06-07 with 87 and added attractions component. • Most aggressive festival season sales blitz to date in FY 06-07 with 59 cities targeted • New TV spot in FY 06-07 running in all key domestic markets incorporating SummerbyMiami.com url. Program continuation proposed for FY 07-08. (continued on next page) g MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results • In FY 07-08, launched a new brand positioning utilizing art, culture and design under the umbrella of "Express Yourself' in print, Internet and TV strategically timed to increase summer travel to Miami. • In FY 07-08, established first ever Miami Spa Month in July to encourage incremental national and regional summer tourism. • In FY 07-08, significantly expanded Miami Spice Restaurant Month to include more than 100 restaurant and hotel packages. • In FY 07-08, leveraged Miami Spa and Miami Spice as part of ', summer "Vacation in your own Backyard" strategy. • In FY 07-08, continued summer sales blitz strategy visiting all major primary and secondary domestic markets meeting with travel trade. • In FY 07-08, conducted a promotional "Express Yourself' summer stunt in NYC's Bryant Park to generate ', incremental media impressions. ', • In FY 08-09, summer efforts included launching MIAMI 443 value-centric promotion, ~ Buy Local efforts, secured record number of participants in Miami Spice and Miami Spa promotions, staged a promotional stunt in Chicago. GMCVB B. Convention Sales and • Incorporate Specific Strategies • FY 08-09 Program of Work City of Miami Beach Services in Fully-Integrated Sales and established and proposed. Global Spectrum Marketing Plan and Program of • Streamlining Meeting Planner City of Miami 3.B.1. Design and Work. RFP's on the web, with 24 implement a convention hour response and upgrade of sales and service strategy the services provided will that targets the optimum continue in FY 08-09. conventions, meetings and • Geographical task force with events utilizing area hoteliers continues. Beach, Convention Centers as well Downtown, and Airport. as specific meetings venues • FY 07-08 established close in partner hotels. working relationship with Miami-Dade Sports Commission which will MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results continue in FY 08-09 as we solicit summer/shoulder business. • Partnership with Hinton & Grusich netted good results with a higher ROI . We will expand sales efforts and partnerships opportunities in FY 08-09. • Developed the MIA-ROI program showcasing and packaging incentives to the meetin Tanner. Res onsible Parties Strafe y~ Sho~r`t=tPerm'Ste s ~, ~si,Status' GMCVB B. Convention Sales and • Incorporate Specific Strategies • "Meetings Express" division Industry Stakeholders Services in Fully-Integrated Sales and continues and has expanded. City of Miami Marketing Plan and Program of . Staff reorganization and 3.B.2. Expand current Work. redeployment once again programs and strategies reviewed to meet expectations designed to stimulate and of hotels. support generation of leads • Expanded D.C. Regional office and bookings of shoulder to include bookings, as well as and summer business. lead generation, and ownership of house accounts. • Generation of shoulder business in the works with our partnership with Miami-Dade Sports Commission. • In FY 08-09 a fully developed and enhanced D-3000 software for Sales and Services will be implemented. • Pursue International Market with Tourism Sales Department. • Expand Web Advertising to drive corporate leads. GMCVB B. Convention Sales and • Incorporate Specific Strategies • Convention Services Services in Fully-Integrated Sales and department continues to Marketing Plan and Program of redeploy staff to better meet 3.B.3. Design and implement Work. the demands of the smaller a comprehensive Convention meetings market. Services Plan that provides • Enhanced website presence optimum service and with toolkit feature, providing coordination to meet the clients with local information, needs of meeting planners, press releases, photography and delegates and vendors. other resources. • Continuation of web-based post-convention Client Survey tool; return rate in excess of 35%to date. • Newsletter for clients will be 10 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results expanded in FY 08-09 to educate and inform meeting professionals interested in Greater Miami.. Circulation expanded to over 1,800 quarterly recipients. -- ?R `oi~siblc]',~r'ttes:~ s.. f'~'~Strafc ~ '~ ~ Short.~'eq~ i'Ste s ; 3 : 'Status ~, GMCVB C. Research • Evaluate Current Research • In addition to ongoing Models. research, $90,000 earmarked 3.C.1. Expand upon current . Design Additional Research for FY 07-08 to support research methods (intercept Methodologies. additional "strategic" research. surveys) to validate and • Implement Program. • In addition to the "Repeat" further define and profile • Monitor and Evaluate Results. research and the on-going visitors and potential GMCVB survey program, the visitors. GMCVB is looking to expand its use of syndicated research to compliment its current efforts. This will provide validation for the current assumptions being drawn from the existing database. • In FY 08-09, develop additional research programs that will help better evaluate emerging markets that have the potential to positively or negatively impact the destination. • In FY 08-09, developed monthly dashboard of key performance indicators; research partnership with FIU ~ Hospitality school to assess the im act of an "o en" Cuba. GMCVB C. Research • Identify, Revised, Expanded • See 3.C.1. above and/or New Research 3.C.2. Develop research Methodologies in support of models that help define and Strategy. delineate High Value • Incorporate Current and New Customers including areas of Research Models in FY OS-06 interest, visitor expectations, Program of Work. seasonal travel patterns, party size and composition, related activities and com etitive destination. GMCVB C. Research • Identify Expanded and/or New In FY 08-09, utilize syndicated 3.C.3. Develop research Research Methodologies. sources and partnerships to models that further identify • Incorporate Current and New better establish profiles of non- current "non-visitors" to the Research Models in FY OS-06 visitors and potential revenues destination. Program of Work. not being captured. 11 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results GMCVB On-Line Partners GMCVB Interlocal Partners Industry Stakeholders GMCVB 3.C.5. Develop GMCVB website capabilities and menus and page-view options to assist in developing "profiles" of visitors both in terms of quantitative traffic to and within the site and qualitative interests of users. C. Research D. Funding 3.D.1. Strengthen interlocal partnerships and maximize prioritization, use and leverage of tax dollars in support of destination sales and marketing. D. Funding 3.D.2. Evaluate the current Membership dues and services structure identifying opportunities to increase member participation and investment. Design and Implement Capabilities As Part of New Website Expansion and Redesign. • Identify and Strengthen Coalition. • Develop Process for Establishing Prioritization and Leveraging of Resources. • Design and Implement Assessment. • Research and Identify "Best Practices". • Develop Recommendations for Next Steps. • Phase I of website expansion and redesign implemented. • Phase II to be implemented at the end of FY OS-06. • "Opt-In" and "Customer Relationship Marketing Programs expanded. • Implemented expanded website analysis program utilizing industry standard "Google Analytics" to fully measure visitation patterns. • In FY 08-09, launch a major development of the core GMCVB website fully integrating various web 2.0 strategies & D3000 • Long-term contract secured with Miami Beach. • GMCVB assisted in passage of General Obligation Bond program ensuring additional resources for numerous industry-related needs. • New Corporate Sponsor Program launched in FY 05-06 to be expanded upon in FY 06- 07. • Additional corporate sponsors secured in FY 06-07. • Researching new member dues structure in line with industry standards for implementation in FY 07-08 which will result in incremental revenue. • In FY 08-09, finalize implementation of new member dues structure that was launched in FY 07-08 and establish a new base level of revenue that includes several anticipated new properties and expansions. • FY 08-09 was first full year of new dues structure which has resulted in revenue growth year over year. 12 MinmiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results GMCVB D. Funding • Research and Identify "Best IMG contract secured. Practices". Sponsorships of 3.D.3. Develop and • Identify and Prioritize "Menu" Programs/Events such as implement a comprehensive of Opportunity. Sunglass Hut Swim Show and "sponsorship" program . Identify and Recruit Campo Viejo Restaurant designed to generate private Cooperative Partners. Month secured. investment/sponsorship . Design and Implement • In FY 07-08, renewed opportunities. Comprehensive Plan. sponsorship support of Miami Spice with Pernod Ricard via IMG and also secured American Express as presenting sponsor internally. Exploring additional partners for launch of Miami Spa month in July 08. • In FY 07-08 successfully expanded the American Express relationship to include sponsorship of Miami Spa Month - a first time initiative - in addition to Miami Spice; Looking to renew and expand this partnership in FY 08-09. • In FY 08-09, large-scale partnership with American Airlines and the Beacon Council resulted in dramatically increased private revenue and expansion of key marketing programs like Miami Spice, Miami Spa and new efforts like Miami Museums Month also resulted in significant private revenue increases. - ?Res ~unsidle Parties `Stra#eRy. - S1liirt-`I'erm'Ste s ~" + : StAtus, GMCVB D. Funding • Research and Identify "Best • In FY 06-07, GMCVB secured Practices". a grant to help promote our 3.D.5. Develop agrant- • Identify and Recruit heritage assets through the seeking and foundation Cooperative Partners. Community Relations solicitation program. committee and will be aggressively seeking additional grants through our Cultural efforts and other niche programs. • In FY 08-09, the GMCVB successfully secured grants from the Miami-Dade County TDC and Miami VCA to support POW WOW; GMCVB was a finalist for a highly competitive Knights foundation arts Brant. 13 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results GMCVB D. Funding Evaluate Current Programs and • FY 05-06 Co-op Program "Cooperative Menu". implemented. 3.D.6. Expand current Research and Identify "Best In FY 04-OS and in FY OS-06 cooperative advertising Practices". the GMCVB expanded its programs and solicitation Develop and Implement portfolio of cooperative efforts to optimize Expanded Program Offerings. marketing opportunities to investment and leveraged include programs showcasing opportunities for cooperative the following aspects of our partners. community: cultural institutions, attractions, meetings and conventions, boutique hotels, retail establishments, gay and lesbian offerings and events, as well as a Festival Season cooperative effort aimed at generating incremental business for the shoulder/ summer season. • FY 06-07 Program was expanded and incorporated an industry first "magalog" program showcasing major hotel partners; Additional programs were launched with attractions, restaurants and new initiatives in FY 07-08 will include spas, luxury hotels to target additional high value customers. • In FY 07-08, programs were expanded in the areas of digital marketing and launched the most comprehensive menu of options to date in addition to traditional print efforts; further transition to digital will occur in FY 08-09. • In FY 08-09, GMCVB digital co-op programs expanded dramatically in sales and scope; Miami Spice and Miami Spa also secured a record number of partner dollars. GMCVB E. Marketing • Evaluate Current Research • Using additional research Methodologies and Finding. methodologies and partners to 3.E.1. Produce a Market Identify and Incorporate supplement data from the core Assessment that will assist Additional Methodologies. research program allowing identification and targeting . Produce Assessment. GMCVB to better target its of High Value Customers for marketing efforts. sales and marketing efforts. 14 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results ----~'T'~t- ,itc~A.G GMCVB + T ~Piirfies_ ~'~Strate y ~` ~ E. Marketing • 3.E.2. Design and adopt a fully-integrated marketing plan for all sales and marketing initiatives as part of the budgeting and planning cycle. GMCVB F. Internet/Website • Marketing 3.F.1. Continue the • expansion and evolution of the GMCVB website. r 'y - - T Short `Cerm)titeRS - ~ . ` Develop Plan (Using Template in SP Section III) as Part of FY 05-06 Program of Work. • FY OS-06 Program established and implemented. • FY 06-07 Program established and implemented. • FY 07-08 Program established and implemented. • FY 08-09 Program established and implemented. Assess Current Website and Internet Marketing Strategies. Based on Findings -Design and Implement Comprehensive Program. • Ongoing • The GMCVB partnered with USDM, a national leader in website marketing, to redevelop its website and to assist on an on-going basis in the development of marketing efforts. The website was re- launched in fall `04 with particular emphasis on integrated promotions and other channels that will allow us to better develop better profiles of visitors to the website utilizing eC1ZM. This includes proactive, opt-in registered user programs not only for consumers but for meeting planners and travel professionals. In addition to the redevelopment, the GMCVB contracted with USDM for an on-going relationship to develop and implement year- round marketing efforts including a-mail promotions, strategic banner placement, search engine optimization and other push and pull marketing strategies. • This program was expanded in FY 06-07 to incorporate multiple on-line cooperative initiatives with an emphasis on summer visitation as well as community server and extreme desktop technologies. • In FY 08-09, launch a major development of the core GMCVB website fully integrating various web 2.0 strategies as well as D3000 functionality; In addition, 15 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #3 -Optimize Sales Marketing Activities Resulting in Maximum Performance and Results I ~ Res ansible~Parties-~ . r ,~~ 4 ~ ~ r ~ ~ ,,fr~ ~Strate~l"_ r _~Sliort-~1erm.S s _~,, solicit partners for additional search engine marketing (SEM) and search engine optimization (SEO) efforts. • In FY 08-09, launched a GMCVB Social Media team that is proactively leveraging all social media networks to organically promote the destination. ~ ', ~ ~ 1 ~ °1 '.~.kStat s .,~ ,Y GMCVB F. Internet/Website • Incorporate Specific Strategy • In FY OS-06, internal GMCVB Marketing into Overall Assessment and web team undertook a major Expanded Program. overhaul of the main GMCVB 3.F.2. Expanding website to further improve "interactive" components navigability, visual resulting in a change from an representation of our informational channel to a community, and more efficient deliverable product for the advertising channels. consumer/visitor. In FY 07-08, GMCVB will further evolve its website and interactive strategy to incorporate additional web 2.0 social networking capabilities. • In FY 08-09, redesigned the homepage of main GMCVB website fully integrating various web 2.0 strategies as well as D3000 functionality; In addition, solicit partners for additional search engine marketing (SEM) and search engine optimization (SEO) efforts. GMCVB G. Professional Staff • Conduct Assessment. Current assessment underway. • Based on Findings, In FY OS-06 the incentive 3.G.1. Review and evaluate Recommend Next Steps. compensation plan for our current GMCVB personnel Convention Sales & Membership policies (including Director was revised. The Incentive compensation and staff Plan is now comparable to industry and provides an upside incentive develo ment that ensure P ) opportunity for outstanding maximum staff performance. professionalism and • In FY 07-08 we started the review performance. of the staff salary and compensation program. We anticipate the completion and implementation in the coming fiscal year. • In FY 08-09 we will perform a functional analysis of Administrative Assistants and Executive Secretarial staff ositions. 16 MiamiandBeaches.corn GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #4 -Position GMCVB as "True Stewards" and "Voice" for Visitor Industry v ~ ~ ~Rcs ~onsitilc-~nitics :.: ~ 'Strate~ '°. ~ Short Ter, Ste s~~ 4 ~..St8tU5*_ .ti -~~~ ~ r:'~~~. ~ ~~ GMCVB A. Community Relations • Identify and Recruit "Strategic" • Community Relations Manager Partners retained. 4.A.1 Design, adopt and • Design Program and • FY 06-07 program in implement a comprehensive Incorporate Program of Work conjunction with private Community Relations sponsorship program proposed. Program as well as • Newly organized Community continuing to promote the relations Committee impact and importance of the established for FY 06-07. Visitor Industry and its • In FY 06-07, Community partners. Relations committee successfully secured significant grant to promote heritage tourism within the Community. • In FY 07-08, additional publications will be introduced to highlight strategic community partners and emerging subdestinations • In FY 08-09, large scale partnerships will be explored with media partners that may assist in the development of major heritage tourism initiatives. • In FY 08-09, the GMCVB utilized POW WOW to showcase the various unique aspects of our community to the travel trade and journalists through a variety of sightseeing tours. GMCVB B. Governance • Review IACVB Standards and • Board and Executive "Best Practices" Committee restructure adopted 4.B.1 Ensure that GMCVB . Assess Current Structure and designed. Executive Committee, Board of Directors and Standing Committees are representative and foster interaction with the key sectors of the visitor industry and the community while providing for an efficient and responsible oversight of GMCVB operations and direction. 17 MiamiandBeaches.com GREATER MIAMI CONVENTION & VISITORS BUREAU Destination Strategic Plan Update Goal #5 -Establish Measurement Criteria for Each Element of the Strategic Plan (Both within GMCVB and the Community) Including Clearly Defined Leadership Roles, Timelines and Funding Requirements F'~..3.~ R~s~" v. s~ ~ t~w`~5~ } fi`~ ~ ~ ~~ ~ ` r.~- -~~~~s+ „ ~ a'~ r'~ t ~ '~A ' ~,~, , ~.~ ~ '!`ml'"~ ~ r~i,at ~~~: ~ `~ _ ~ ~z ~ , k~~ ;; S us~ ~" ; :~ ~ ,. .;dRes onsib e,~la ,_:e r~ h Stcate ~ s ~ 4~ 5 t r t ~ ~ ~ b , , GMCVB A. Timelines for • Develop and Adopt Short-Term • Short Term steps identified. Implementation Steps and Monitoring • FY OS-06 program designed Methodologies and implemented. S.A.1. Develop and • Based on Findings, Establish • FY 06-07 program proposed periodically monitor Short- Time-Line and Work-Plan for and implemented. Term, Mid-Term or Long- the Identification of Mid-Term • FY 07-08 program proposed Term Steps. Steps and implemented. GMCVB B. Retum on Investment • Design and Implement Systems • Initial formula(s) identified Criteria Based on Findings Outlined in (Section III of Strategic Plan). SP Section IV. • ROI on convention business S.B.I. Establish Return on booked is provided in monthly Investment criteria and reports. monitoring systems that • ROI Broken down for Center supervise results and the business versus In-Hotel impact of each of the Bookings. Bureau's Programs. • Direct and indirect economic impact of the visitor industry is compiled based on industry best practices. GMCVB B. Return on Investment • Based on Findings and • FY OS-06 summary report Criteria Performance, Establish a currently being finalized. "Value Position" for Return on . Analyzing results of findings S.B.2. Evaluate programs for Community and Bureau on a continuous basis. their effectiveness based on Resources. established performance goals. A Shared Vision: To Be America's Premier Tropical, Cosmopolitan Destination Rev: 8-27-09 18 MiamiandBeaches.com AGREEMENT BETWEEN CITY OF MIAMI BEACH AND THE GREATER MIAMI CONVENTION AND VISITORS BUREAU THIS AGREEMENT, is made and executed as of this /s r day of pc 7o&t 2004 by and between the CITY OF MIAMI BEACH, a municipal corporation organized and existing under the laws of the State of Florida (the City or Miami Beach), and the GREATER MIAMI CONVENTION AND VISITORS BUREAU, INC., a Florida not-for-profit corporation (the Bureau). RECITALS: WHEREAS, the City was formally a party to an Interlocal Agreement, dated September 30, 1993, by and among the Bureau and Miami -Dade County, the City of Miami Beach, the City of Miami, and the Village of Bal Harbour; and WHEREAS, on January 6, 1999, the Mayor and City Commission negotiated a one year Agreement with the Bureau, with a term commencing on December 1, 1998, and ending on September 30, 1999; and WHEREAS, following extensive meetings with the City's Blue Ribbon Committee on Conventions and Tourism, the Mayor and City Commission negotiated a new agreement with the Bureau, said agreement having a term commencing on October 1, 1999 and ending on September 30, 2002; and WHEREAS, on May 22, 2002, the Mayor and City Commission adopted Resolution No. 2002-24854, authorizing the execution of a renewal of the aforestated Agreement between the City and the Bureau; said renewal having a term commencing on October 1, 2002, and ending on September 30, 2004, and further conditioned upon the issuance of a Request for Proposals (RFP) to review and assess the current Bureau's governance, structure, processes and overall operations, and make recommendations as to what model and/or structure should provide the services to achieve optimal sales, marketing, and public relations efforts to enhance the City's tourism and convention industries; and WHEREAS, on July 31, 2002, the Mayor and City Commission discussed whether the City should participate with Miami -Dade County and the City of Miami in a collaborative study and 1 (i) To the maximum extent possible, provide economic opportunities to Miami Beach businesses and vendors through the Bureau's procurement of goods and services, and to proactively market, promote and disseminate information to Miami Beach businesses and vendors with regard to the Bureau's procurement policies in an effort to provide increased competition and awareness as to new and future prospective bids, proposals, and other procurement opportunities; (j) To implement the "Strategic Plan for Greater Miami and the Beaches Visitor Industry", dated July 21, 2004, and attached hereto and incorporated herein as Exhibit "A" (the Strategic Plan), , as further provided in Section 1.03 of the Agreement; (k) To involve in Bureau activities, to the maximum extent possible, policy makers of Miami Beach; (1) In addition to actively seeking out and raising funding from the private sector, as set forth in subsection 1.01(g) herein, to do increased partnering, as well as co -promotions, with hotels, restaurants, retail venues, and other tourist draws and attractions within the City of Miami Beach; {m} To continue to emphasize Miami Beach as a "destination resort" by way of campaigns of information, advertising, publicity, marketing and/or sales, and/or event production and promotion; (n) To aggressively pursue and "court" television and other comparable media events including, but not limited to, the Super Bowl; Latin Grammys; MTV Video Music Awards, etc., that will air from, or host events from, the City of Miami Beach, and draw national and international media attention to the City; (o) To support and contributefunds for. the Miami Beach Convention Center Market Incentive Fund; and (p) To perform any other function reasonably related to the policy and purpose of this Agreement. Miami Beach acknowledges that priority for bookings shall be given to convention and group business that results in hotel room occupancy, in accordance with the Miami Beach Convention 4 Center Booking Policies, as same may be amended from time to time. SECTION 1.02 Sub -market Initiatives. Sub -market initiatives have been developed by the City, in partnership with the Bureau, and are detailed in Exhibit B, which is attached and incorporated hereto. These initiatives are organized in a manner that meets the new established goals for the Bureau, as set forth in the Strategic Plan. The Bureau will be responsible for implementing these identified initiatives during the first contract year, (October 1, 2004 -- September 30, 2005), of the Agreement. These initiatives will be revisited annually and established by the City, at its reasonable discretion, on an annual basis; such updated/re-established initiatives shall be evidenced each contract year with an updated Exhibit B, and shall be implemented by the Bureau during the respective contract year. The Bureau agrees that no less than $950,000 will be targeted annually during the Term of the Agreement to support and implement the sub -market initiatives in Exhibit B, and as may be revisited and re-established by the parties. Additionally, the Bureau hereby agrees to re -structure its Marketing and Tourism committee to fully reflect and be representative of the sub -market initiatives referenced in this Section 1.02 and in Exhibit B attached hereto, as same may be revisited and re-established by the parties. SECTION 1.03 Implementation of Strategic Plan. The Bureau has developed the Strategic Plan, attached as Exhibit A hereto, and hereby agrees, to implement the recommendations as set forth in Exhibit C. Additionally, the Bureau hereby agrees to further perform and conduct such additional research, as is identified in Task 4 of the Market Assessment prepared by ERA, dated August 25, 2003, and attached as Exhibit D, which is attached and incorporated hereto. SECTION 2 TERM The.term of this Agreement shall commence on October 1, 2004, and terminate on September 30, 2009 (the Tenn). Notwithstanding the foregoing, the City mayterminate this Agreement at any time, upon sixty (60) days written notice to the Bureau, in the event that the Bureau, in the sole discretion of the City, fails to comply with any of the terms and conditions set forth in this Agreement. Upon receipt 5 of said written notice from the City, the Bureau shall have thirty (30) days within which to cure the default(s) set forth therein. In the event that said default(s) is not cured within the aforestated cure period, this Agreement shall terminate with no further notice from the City required; said termination effective thirty (30) days from the date of the City's written termination notice; and the City shall have no further liability under this Agreement. In the event of termination of this Agreement pursuant to this Section, or otherwise prior to the expiration of the Term herein, the City shall have no further obligation to fund and/or otherwise allocate and/or appropriate any remaining funds pursuant to .this Agreement. Additionally, in the event of termination or other early expiration of this Agreement, the Bureau shall immediately remit back to the City any and all unencumbered City funds allocated to the Bureau including, but not limited to, the City's Contribution (as set forth in Section 4.01) and the funds allocated by the City toward the Bureau's Business Recovery Fund (as set forth in Section 4.02(c)). Notwithstanding the preceding paragraph, the parties hereto acknowledge that the Bureau and the City may, during the term of this Agreement, enter into partnership ventures and/or solicit business ventures and other opportunities that are expected to predominantly benefit the City of Miami Beach in future years, and which may entail a funding commitment(s) beyond (i) a termination of this Agreement, and/or (ii) the term of the Agreement. In such cases, the City and the Bureau shall expressly agree, in writing, on a case by case basis, that the particular partnership(s) and/or business venture(s) is intended to be funded by the Bureau and/or the City beyond an early termination and/or expiration of the Agreement. SECTION 3 CITY PARTICIPATION ON BUREAU BOARD OF DIRECTORS, EXECUTIVE COMMITTEE, COMMITTEES AND/OR SUB- COMMITTEES The Bureau shall be managed by a Board of Directors (Board), having such number of members and such composition as may be determined from time to time by the Bureau. Such Board shall be representative of the hotel and visitor industry and shall reflect the ethnic and multi -cultural diversity of the community, be gender representative, and recognize that industry involvement is critical. The Bureau shall act through an Executive Committee which shall meet between meetings of the Board. The composition of the Executive Committee shall be determined by the Board. 6 The Bureau shall also establish, as it deems appropriate, working committees and/or sub- committees, which may include, but not be limited to, a Finance Committee; Marketing and Tourism Committee; Convention Sales Committee; Nominating Committee, and Community Relations Committee. The composition of such committees and sub -committees shall be determined by the Board. Notwithstanding the foregoing, the Bureau herein recognizes the significant financial contributions made by the City of Miami Beach pursuant to this Agreement; accordingly, the Bureau and the City herein agree that, throughout the Term of this Agreement, the City's representation and membership on the Board, Executive Committee, and any and all committees and/or sub- committees, respectively, shall be as follows: (a) Board of Directors. The City's representation and membership on the Board shall be a number proportionate to the percentage amount of the City's total annual financial contribution to the Bureau, as set forth in this Agreement, in relation to the Bureau's total operating budget; but in no event shall said percentage be less than 30%. The aforestated members shall be voting members of the Board, selected by the Board from a slate submitted by the City Manager, and shall be (i) residents of Miami Beach; and/or (ii) representative of the hotel and visitor industry in Miami Beach; and (iii) reflect the ethnic and multi -cultural nature of the City of Miami Beach, and be gender representative. (b) Executive Committee. The City's representation and membership on the Executive Committee shall be a number proportionate to the percentage amount of the City's total annual financial contribution to the Bureau, as set forth in this Agreement, in relation to the Bureau's total operating budget; but in no event shall said percentage be less than thirty percent (30%). The aforestated members shall be voting members of the Executive Committee, selected by the Board from those members of the Board selected from the ,City's slate for the Board; however, 7 the City's proportionate representation and membership on the Executive Committee must include the following: (i) At the option of the City, the Mayor of Miami Beach or his/her designated representative (who shall be a member of the Miami Beach City Commission); and (ii) the City Manager of Miami Beach. (c) Committees and/or Sub -Committees. The City's representation and membership on any and all Bureau committees and/or sub -committees, respectively, shall be a number proportionate to the percentage amount of the City's total annual financial contribution to the Bureau, as set forth in this Agreement, in relation to the Bureau's total annual operating budget; but in no event shall said percentage be less than 30%. The aforestated committees and/or sub -committee members shall be voting members and shall be (i) residents of Miami Beach; and/or (ii) representative of the hotel and visitor industry in Miami Beach; and (iii) reflect the ethnic and multi -cultural diversity of the City of Miami Beach, and be gender representative. Notwithstanding the above, throughout the Term of this Agreement (i). the City Manager or his designee shall be a voting member of the Finance Committee; and (ii) the General Manager of the Miami Beach Convention Center shall be a voting member of the Convention Sales Committee. SECTION 3.01 Re -structure of Bureau, Board, Executive Committee, and/or Committees and Sub -Committees. The parties acknowledge that on October 28, 2004, the Bureau approved a new governance plan, as recommended and set forth in the Strategic Plan (Exhibit A), and the March 5, 2004 Final Report prepared for the City by ERA; accordingly, by the end of the first contract year of the Term of the Agreement (September 30, 2005) the Bureau shall also implement the re -structure and make-up 8 of the Board, Executive Committee, and any and all committees and/or subcommittees, as the aforestated Final Report relates to recommendations as to "Board Size" (page 4, IV -13 of the Report), and as attached and incorporated as Exhibit E hereto. Notwithstanding the preceding paragraph, any new governance plan and re -structure shall, at a minimum, maintain the City participation, representation and membership on the Board, Executive Committee, and committees and/or sub -committees, respectively, as referenced and required by this Section 3. SECTION 4 FUNDING. SECTION 4.01 Contribution from Miami Beach (the City's Contribution). (a) The City's total annual contribution to the Bureau for the Term of this Agreement shall be $5 million dollars (the City's Contribution). The City's Contribution shall be paid from the Municipal Resort Tax revenues levied and collected by the City pursuant to Chapter 67-930, Laws of Florida, and the respective ordinances applicable thereto, as amended from time to time (the Tax). For purposes of this Agreement, the Tax shall be further defined as derived only from the two percent (2%) portion of the Municipal Resort Tax collections generated from the sale of hotel rooms, food and beverage, and alcohol throughout the City of Miami Beach. (b) The City shall distribute the City's Contribution to the Bureau after the following distributions and deductions have been made: (i) Less four percent (4%) of the total gross revenues collected from the Municipal Resort Tax, for collection costs; and (ii) All payments shall be junior and subordinate in all respect to any and all obligations of the City required under any resolutions or ordinances pursuant to which bonds or other indebtedness of the City of Miami Beach are issued which are secured by the Municipal Resort Tax. (c) At the commencement of the 2nd contract year of the Agreement, and at the beginning of every contract year thereafter, the annual City's Contribution 9 will be adjusted by 3% or the increase in the CPI -U, whichever is less. (d) The City's Finance Director shall be responsible for making such debits and credits, collection costs, and monies pledged to bonds or other indebtedness of the City, as set forth in this Section 4. (e) The sole funding authority for payment of the City's Contribution pursuant to this Agreement shall be from the Tax revenues, and the City shall have no obligation to continue to pay the . City's Contribution to the Bureau, or to provide an alternate funding source, in the event that adequate funds from the Tax revenues do not become available at any time during the Term of this Agreement. (f) The Bureau and City herein agree and acknowledge that the Bureau may generate a surplus (excess revenues over expenses) from time to time. The portion of the surplus coming from Miami Beach shall be defined as the proportionate share of the City's Contribution, as defined in this Section 4.01, to total Bureau Revenue which shall be defined as all public and private revenues collected by the Bureau. The Bureau and the City agree that the Bureau shall utilize such surplus funds for any Strategic Plan initiative that is mutually agreed to in writing in advance by the Bureau and the City manager. In the event that the Bureau does not utilize surplus funds in the manner prescribed in this. subsection, then the Bureau shall either (i) immediately remit any and all such surplus funds to the City, or (ii) apply and utilize the surplus funds toward the sub -market initiatives referenced in Section 1.02 and Exhibit B (assame may be amended) to the Agreement (over and above the $950,000 targeted amount). SECTION 4.02 Public Funds. The Bureau shall maintain the City's Contribution and any and all other public funds allocated and/or appropriated to the Bureau pursuant to the Agreement, in an account or accounts segregated from and not commingled with any privately raised funds. (a) Method of Payment and Disbursement. Throughout the Term of this Agreement, Miami Beach shall transfer to the Bureau its required share of the 10 revenues described herein within thirty (30) days after the last day of the month in which Miami Beach received the funds. (b) Prohibited Expenditures from Public Funds. The Bureau shall not expend public funds for the following: Bureau staff travel and entertainment, except that travel and entertainment expenses for up to eighteen (18) persons whose Bureau positions appear in Exhibit F, will be permitted when soliciting or promoting a major Convention or Corporate meeting, booking, or travel trade; any matters relating to the Bureau's function as an association, including but not limited to membership dues and salaries ofpersonnel whose duties relate to membership marketing; the salary, benefits and prerequisites of the Chief Executive Officer; interest expenses on loans to the Bureau; and any and allother expenses relating to activities beyond the scope of this Agreement. (c) Disposition of Citv Funds Formerly Pledged for Watson Island Visitor Center Facility. Pursuant to Section 2.02 of the Agreement between the City and the Bureau, dated July 7, 1999, the City agreed to the use of certain City funds, currently estimated by the parties to be a minimum of $1,000,000, but said final exact amount to be verified by the City's Chief Financial Officer, for the construction of the Bureau's proposed headquarters and visitor center, which was to be located on Watson Island, in the City of Miami Beach (the visitor center or the Facility). The City agreed to the use of said public funds solely for that purpose. Any change in use of the proposed Facility could not be made without the prior written consent of the City; which consent has heretofore not been given by the City. The Bureau has since advised the City, and hereby represents, that it has determined not to proceed with the construction of the Facility. Accordingly, in reliance on the Bureau' s representation, the City hereby consents to the use of the City funds formerly pledged by the City toward the construction of the Facility as follows: {i) An amount equal to the two thirds (2/3rds) portion of any and all City funds formerly pledged . by the City toward the 11 Facility, and currently held by the Bureau in that certain separate account/fund referred to by the parties as the "Watson Island Trust", shall be re-directed to a separate fund/account, to be maintained by the Bureau and referred to by the parties as the "Business Recovery Fund" (the 2/3rds portion). (ii) While the parties agree and acknowledge that the entire 2/3rds portion shall be placed in the Business Recovery Fund, the Bureau agrees that its ability to access the 2/3rds portion shall be limited to five equal installments, each installment available for access to the Bureau at the commencement of each contract year (October 1st) during the Term of the Agreement (in this way, and notwithstanding the placement of the entire 2/3rds portion into the Business Recovery Fund, the net effect would be such that the City were essentially allocating a one-fifth (1/5) of the 2/3rds portion per contract year, for access and use by the Bureau). (iii) In the event of termination or other early expiration of this Agreement, the Bureau shall immediately refund to the City, the unearned remaining balance of the 2/3rds portion due for the remainder of the Agreement. (iv) An amount equal to the remaining one third portion of the City funds formerly pledged by the City for the construction of the Facility shall be reimbursed by the Bureau to the City concurrent with the Bureau's execution of this Agreement. (the 1/3rd portion) (v) The City, at its discretion, shall reserve the 1/3r1 portion, to be used at a future date(s) by the City, in its reasonable discretion, toward initiatives, 'studies, projects, and/or other activities consistent with the purpose of this Agreement. (vi} The Bureau agrees to amortize and accrue the 2/3rds portion 12 over the Term of the Agreement. However, if an event, as defined in the Business Recovery Fund, and as attached and incorporated as Exhibit G hereto, were to occur during the Term of the Agreement which necessitated the use of all or a portion of the 2/3rds portion then, and only then, shall the Bureau be entitled to the use of said funds. Additionally, in the event that the Bureau is required to use all or a portion of the 2/3rds portion, it will immediately advise and notify the City Manager of any proposed use prior to allocation of same, and shall obtain the prior written consent of the City Manager prior to such use/allocation. (d) Contribution from the Bureau to City In consideration of the City's participation in this Agreement, throughout the Term herein, the Bureau shall make the following annual contribution to the City, as follows: (i) $200,000 for the first Contract year, $100,000 for the second contract year, and thereafter $50,000 per year - the first annual payment due upon execution of this Agreement and, thereafter, each year throughout the Term of this Agreement, payable on October 1st of the. fiscal year then in effect; said contribution to be used by the City to provide continued funding for the City of Miami Beach Cultural Arts Council. SECTION 4.03 No Impairment of Bond Obligations. In the event Miami Beach determines that the allocation of Tax revenues required to be made under Section 4.01 may impair the obligation of any contractual arrangement between Miami Beach and the holders of its bonds secured by said Tax revenues, Miami Beach's participation in this Agreement shall be forthwith terminated; provided, however, that in the event of such termination, Miami Beach shall continue to be bound by any prior committed contract, convention reservation or other commitment duly made by the Bureau up to the date of termination of this Agreement. 13 SECTION 4.04 Additional Services. Throughout the Term of this Agreement, the City may elect at its sole discretion, to contract with the Bureau for additional services, which may be funded from the City's Resort Tax Contingency Fund, or such other source of funding that the City may deem appropriate, and upon prior approval by Mayor and City Commission. SECTION 5 INSURANCE. The Bureau shall not commence any work and/or services pursuant to this Agreement until all insurance required under this Section has been obtained and such insurance has been approved by the City's Risk Manager. The Bureau shall maintain and carry in full force during the term of this Agreement the following insurance: 1. Consultant General Liability in the amount of $1,000,000. 2. Consultant Professional Liability/Errors and Omissions in the amount of $1,000,000. 3. Workers Compensation & Employers Liability, as required pursuant to Florida Statute. 4. Crime Insurance/Employee Dishonesty which provides third party r subj. es liability in the amount of $ Q?5, o v o . WO - 5. The insurance must be furnished by insurance companies authorized to do business in the State of Florida and approved by the City's Risk Manager. 6. Original certificates of insurance for the above coverage must be submitted to the City's Risk Manager for approval prior to any work commencing. These certificates will be kept on file in the Office of the Risk Manager, 3rd Floor, City Hall, Miami Beach, Florida. All insurance policies must be issued by companies authorized to do business under the laws of the State of Florida. The companies must be rated no less than "B+" as to management and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Manager. Compliance with the foregoing requirements shall not relieve the Bureau of the liabilities and obligations under this Section or under any other portion of this Agreement, and the City shall have the right to obtain from the Bureau specimen copies of the insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required overage. 14 SECTION 5.01 Endorsements. All of Bureau's certificates, above, shall contain endorsements providing that written notice shall be given to the City at least thirty (30) days prior to termination, cancellation or reduction in coverage in the policy. SECTION 5.02. Certificates. Unless directed by the City otherwise, the Bureau shall not commence any work and/or services pursuant to this Agreement until the City has received and approved, in writing, certificates of insurance showing that the requirements of this Section (in its entirety) have been met and provided for. SECTION 6 INDEMNIFICATION. The Bureau agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees, for personal, economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Bureau, its employees, Board members, committee and/or sub -committee members, agents, sub -consultants, or any other person or entity acting under Bureau's control, in connection with the Bureau's performance of any work and/or services pursuant to this Agreement; and to that extent, the Bureau shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses, including appeals. The parties agree that one percent (1%) of the total compensation to the Bureau for performance of the work and/or services under this Agreement is the specific consideration from the City to the Bureau for the Bureau's Indemnity Agreement. The Bureau's obligation under this Section shall not include the obligation to indemnify the City of Miami Beach and its officers, employees and agents, from and against any actions or claims which arise or are alleged to have arisen from negligent acts or omissions or other wrongful conduct of the City and its officers, employees and agents. The parties each agree to give the other party prompt notice of any claim coming to its knowledge that in any way directly or indirectly affects the 15 other party. The City and Bureau hereby agree and acknowledge that the provisions of this Section 6 shall survive the Term of this Agreement. SECTION 7 REPORTS, RECORDS AND EVALUATION. The Bureau agrees, each contract year during the Term of this Agreement: (i)to provide to Miami Beach, through its City Manager, within ninety (90) days after the end of its fiscal year, an annual audited report covering the receipt and expenditure of public and private funds, prepared by an independent certified public accountant, in accordance with generally accepted accounting principles and practices consistently applied; (ii) to prepare and submit to Miami Beach, through its City Manager, a copy of the Bureau's annual budget, prior to approval of said budget by the Bureau, for said fiscal year; (iii) to submit an Annual Report to Miami Beach before the end of October of each year; (iv) to permit Miami Beach to carry out monitoring and evaluation activities in such manner as will effectively insure the cooperation of the Bureau in the performance of its functions, so long as such inspection and monitoring does not unreasonably impede or interfere with the functions of the Bureau, and such monitoring and evaluation activities may include inspection of records of all expenditures from public and private funds; (v) to provide to Miami Beach such reports as may be reasonably requested by it (including, but not limited, to the IACVB containing annual comparisons of similar bureaus throughout the country); (vi) to provide, not less often than quarterly, an activity and financial report, setting forth generally the activities of the Bureau during the previous quarter; and (vii) to permit Miami Beach to conduct, at its own expense, a full and detailed annual auditof the Bureau's records to determine how the Bureau utilized public monies contributed under this Agreement and to permit Miami Beach to conduct, at its own expense, quarterly inspections of the Bureau's records, to the extent that those records relate to public funds. Any such audits or inspections shall be conducted in such manner and at such times so as not to unreasonably interfere with the day to day operations of the Bureau. In order to satisfy the provisions of this Section 7.02, the City and the Bureau hereby agree and acknowledge that said provisions shall survive the Term of this Agreement, as set forth herein. 16 SECTION 7.01 In addition to the reports, records and evaluations set forth in the preceding Section 7, the City, at all times during the Term, reserves the right, at its sole option and discretion, to engage an independent consultant to review and assess the Bureau's governance, structure, process and operations, particularly with an emphasis on the impact of same related to the Bureau's performance pursuant to the Agreement. Accordingly, the Bureau herein warrants and represents to the City that it shall grant said consultant full and complete access to any and all records, documents, correspondence, as the Bureau may maintain throughout the normal course of its business, for inspection by the consultant, at the Bureau's main place of business, during normal working hours. SECTION 7.02 Public Records and Open Meeting Policy. TheBureaushall adhere to the policy attached as Exhibit H to this Agreement regarding access to its Board, Executive Committee, and committee and/or sub -committees meetings, as well as its corporate records. SECTION 7.03 Performance Reports. The Bureau agrees to provide the City with monthly and annual reports measuring and benchmarking the Bureau's success as identified in the Strategic Plan. These reports shall include, but not be limited to, the following categories: Operating Policies & Procedures: Visitor Center Guidebook Convention Sales Standard Operating Procedures Convention Services Standard Operating Procedures SMG/MBCC & GMCVB Marketing Agreement Tourism Sales: New leisure visitor generated and estimated visitor receipts New tour operator sales leads generated and attendant dollar value GMCVB Membership: Increase Private Membership participation Leverage and In-kind Support 17 ROI Analysis: Conventions & Meetings (annual number of conventions/meetings booked, anticipated delegates/visitors, room nights and total estimated delegates/visitors receipts) Advertisings (conversion analysis estimating actual new visitors, hotel room nights and visitors receipts) GMCVB Website (hotel booking results) Tourism Sales Revenue Per Available Rooms (Rev Par) Total Number of Positive Media Impressions Resource Reports to be submitted: Lost Business Reports Cancelled Business Reports In-kind Partnership Report Conversion of Sales Leads to Business Booked Convention Income Survey Convention Summary Reports E-Autofeedback Sample Survey An additional detailed list of required reports is provided in Exhibit I, attached and incorporated hereto. SECTION 8 PROCUREMENT OF GOODS & SERVICES. In addition to the provisions of 1.01(i), the Bureau shall procure goods and services on a competitive basis and shall provide opportunities for African American, Hispanic American and women owned businesses and services. In order to promote a broader outreach and encourage new and diverse potential bidders and proposers, the Bureau shall use its best efforts in cooperating with the City to establish a broader-based "pool" from which to procure said goods and services. This may include, but not be limited to, workshops to be co-sponsored by the City and the Bureau for that purpose, said workshop(s) and to be held on Miami Beach. 18 SECTION 9 NOTICES. All notices, demands and requests which are given by the parties shall be in writing and shall be deemed to be properly given if sent by United States mail, postage prepaid, addressed as follows: As to Miami Beach: As to the Bureau: Attention: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 Attention: President Greater Miami Convention & Visitors Bureau 701 Brickell Avenue, Suite 2700 Miami, FL 33131 Any such names and addresses may be changed at any time upon the giving of written notice of such change sent by United States mail, postage prepaid, to the other parties affected by the change. A copy of any notice sent by one party to another shall be sent to all other parties noted above. SECTION 10 STATUS OF BUREAU AS INDEPENDENT CONTRACTOR. The parties hereto understand and agree that the relationship of the Bureau and Miami Beach is that of an independent contractor. In carrying out its functions under this Agreement, the Bureau is not, nor shall it ever be construed as, the agent or representative of Miami Beach, and this Agreement is not intended to establish a partnership, a joint venture, or the relationship of principal agent. SECTION 11 GOVERNING LAW AND EXCLUSIVE VENUE. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami -Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, THE CITY AND THE BUREAU EXPRESSLY WANE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. 1.9 IN WITNESS WHEREOF, Miami Beach and the Bureau have caused this Agreement to be duly executed in their name and on their behalf by their duly constituted officers, and the Bureau has caused this Agreement to be duly executed by its duly authorized corporate officers, all as of this j Si day of CkTbL1t , 2004. Attest: 1th/a Pcutdt,u._ City Clerk Attest: Syetary i%ja, Pthtir- Print Name CITY OF B ACH GREATER MIAMI CONVENTION & VISITORS BUREAU President Wji/'am b.7aitrt Print Name F:1atto\AGUR\AGREEMNTIGMCVB Agreement (2004) - Final (12-29-04).doc STATE OF FLORIDA } 20 11r APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION SS: COUNTY OF DADE The foregoing instrument was acknowledged before me this/Q day o AV' , 200)5, by Mayor David Dermer and Robert Parcher, City Clerk, or their designees respecti(ely, on behalf of the CITY OF MIAMI BEACH, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this /0 day of 4/900,y' , STATE OF. FLORIDA Notary Public, State of Florida at Large Commission No.: My Commission Expires: 21 A Comet 00023048iboss 7 Sawed Ivo 000)02.425. COUNTY. OF DADE } } SS: The foregoing instrument was acknowledged before me this of kiaAttalq 2004 b 11 ,)am , President, and 0 "Xerx..i.c.$ecretary, or their designees respectively, on behalf of the GREATER MIAM CONVENTION& VISITORS BUREAU, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS myhand and official seal, this /t --da of off i(,C , 2004. Y Notary PubligYState of Florida at Large Commission No.: My Commission Expires: 22 Toni Johnston • •� My Commission D0118281 ale' J Expires May 09, 2008