2011-27756 Reso 2011 -27756
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING AND APPROVING THE MIAMI BEACH
VISITOR AND CONVENTION AUTHORITY (MBVCA) FY 2011/2012 BUDGET, IN
THE AMOUNT OF $2,337,729.
WHEREAS, the Miami Beach Visitor and Convention Authority (MBVCA) was created
pursuant to Chapter 67 -930 of the Laws of Florida, and Sections 102 -246 through 102 -254 of the
City of Miami Beach Code; and
WHEREAS, the MBVCA's mission is to support, maintain and develop quality programs,
which generate, satisfy and enhance the year -round tourist attractiveness of Miami Beach; and
WHEREAS, the MBVCA strategically focuses its funding investments in a balanced manner,
fostering outstanding existing programs, stimulating new activities, and encouraging partnerships;
and
WHEREAS, the MBVCA is committed to a careful, long -term plan for allocation of resources
to build the uniqueness of Miami Beach as one of the world's greatest communities and tourist
destinations; and
WHEREAS, pursuant to its enabling legislation, the MBVCA's budget for each FY shall be
approved by the Mayor and Commission; and
WHEREAS, accordingly, the MBVCA recommends approval of the proposed budget for FY
2011/2012, in the amount of $2,337,729, to continue implementation of its programs.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission adopt the
Miami Beach Visitor and Convention Authority's FY 2011/2012 budget, in the amount of
$2,337,729.
PASSED AND ADOPTED THIS a DAY OF S 2011.
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution adopting and approving the Miami Beach Visitor and Convention Authority (MBVCA) FY
2011/2012 budget in the amount of $2,337,729
Key Intended Outcome Supported:
Increase community ratings of cultural and tourism related activities.
Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Survey, High satisfaction
levels (those providing "excellent" or "good" rating) were recorded for each of the following City
destinations /attractions by those respondents suggesting annual use: "City park /recreational facilities"
(84.1%), "beaches" (81.9 %) and "recreation programs /family friendly activities" (81.6 %).
Issue:
Shall the Mayor and Commission approve the Miami Beach Visitor and Convention Authority (MBVCA) FY
2011/2012 budget in the amount of $2,337,729
Item Summary /Recommendation:
This budget allows the MBVCA to continue its mission to support, maintain and develop quality programs, by
strategically focusing its investments which generate, satisfy and enhance the year -round tourist attractiveness of
Miami Beach. The MBVCA's budget funds programs and special events designed to promote the destination.
The MBVCA is committed to a careful, long -term plan for allocation of resources to build the uniqueness of Miami
Beach as one of the world's greatest communities and tourist destinations.
Advisory Board Recommendation:
The Miami Beach Visitor and Convention Authority (MBVCA) board unanimously approved the FY
2011/2012 budget during its' August 22, 2011 board meeting.
Financial Information:
Source of Amount Account Approved
Funds: 1 $1,817,729 2% Resort Tax Revenue
-----,-- 2 $200,000 Rollover from FY 2010/11 year
3 $320,000 Unrestricted Reserve
4
OBPI Total $2,337,729
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Grisette Roque Marcos
Sign -Offs:
Department Director Assistant City Manager City Manager
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T.\AGENDA\2009 \September 24 \Regular \VCA Budget Comm Summary.doc
M IAM I BEACH AGENDA ITEM la 1 I
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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 27, 2011
SUBJECT: A RESOLUTION ADOPTING AND APPROVING THE MIAMI BEACH VISITOR AND
CONVENTION AUTHORITY (MBVCA) FY 2011/2012 BUDGET IN THE AMOUNT OF
$2,337,729.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The Miami Beach Visitor and Convention Authority (MBVCA) was created and exists pursuant to
Chapter 67 -930 of the Laws of Florida and Sections 102 -246 through, and including 102 -254 of the
Code of the City of Miami Beach (CMB).
According to Sec. 102 -251, the MBVCA is to take "all necessary and proper action to promote the
tourist industry for the city, including but not restricted to causing expert studies to be made,
promotional programs, the recommendations and development of tourist attractions and facilities
within the city, and to carry out programs of information, special events, convention sales and
marketing, advertising designed to attract tourists, visitors and other interested persons." The
MBVCA also has the duty of making all necessary rules and regulations for the efficient operations
of the authority.
The MBVCA is a seven - member authority. Each member is appointed by the City of Miami Beach
(CMB) Commission, with the goal of encouraging, developing and promoting the image of Miami
Beach locally, nationally and internationally as a vibrant community and tourist destination. To this
end, the MBVCA strategically focuses its funding investments in a balanced manner, fostering
outstanding existing programs, stimulating new activities, and encouraging partnerships. The
MBVCA is committed to a careful, long -term plan for allocation of resources to build the uniqueness
of Miami Beach as one of the world's greatest communities and tourism destinations.
A budget revenue projection is provided to the MBVCA by the City of Miami Beach Budget Office
annually based on 5% of the 2% Resort Tax, calculated on 96% of the collections. On an annual
basis the MBVCA must provide the City with a budget, on City forms, based on this projection as
outlined in Sec. 102 -252, before October 1 The MBVCA normally budgets funding below the City's
projection, as the collection of funds can differ substantially from projection, such as the result of
unanticipated problems like an airline strike, terrorism, economic issues or storms. When and if there
are unallocated funds remaining at the end of the budget year, those funds are either rolled over and
allocated in the next budget year, or retained in MBVCA's accounts for future reserves. (e.g.
endowment funding, to address any funding reductions in future years) In 2001, by statute, the
MBVCA began investing into the creation of an endowment fund.
ANALYSIS
The MBVCA is required by law to maintain reserve bank accounts in approved public depositories,
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Page 2 of 6
VCA Budget FY 11/12
with sufficient reserves to cover two years of funding, which it does. Reserves are maintained to pay
grant recipients (contracted) for the previous program funding cycle, and to ensure that sufficient
funds can be invested to stimulate tourism in the future. The level of reserves was modified in 2011
in order to maximize the value and impact of tourism directed funds.
The MBVCA submits to the CMB an annual Program of Work as required by Sec. 102 -281, and is
audited annually by the City of Miami Beach as required in Sec. 102 -281. MBVCA audits have been
positive for the past 10 years.
Tourism Advancement Program
The MBVCA Tourism Advancement Program (TAP) was established to promote Miami Beach as a
sophisticated tourist destination by increasing the number of visitors and through enhancement of
visitors' experience, through the allocation of funds granted to events or programs that bring visitors
to the CMB and strengthen the CMB brand. In fiscal year 2010/2011, the MBVCA funded TAP in
nine categories, including: Cultural Tourism, Development Opportunities, Film Incentive, Initiatives,
Major One Time Special Event, Special Events Recurring, Special Projects, Special Projects
Recurring, and the Tourism Partnerships. And, in 2011, the MBVCA began new investments,
utilizing funds rolled over from several years past.
A total of $1,463,000 was awarded in FY 2010/2011, compared to $1,042,800 in FY 2009/2010.
The increase in awards reflects an increase both in the number of applicants, income and the
creation of a Film Incentive Grant in fiscal year 2010/2011. Grants funded in partnership with the
CMB are critical, branded tourism - related programs, such as the South Beach Wine & Food Festival
and Art Basel Miami Beach, both examples of events whose beginning in Miami Beach stems from
grants provided by the MBVCA- events that could be recruited by other destinations.
The MBVCA strategically focuses funding to maximize tourism and brand, to improve Miami Beach
by focusing on events and projects that generate significant publicity, strengthen brand and increase
tourism (generating critical resort taxes for Miami Beach). The Board pays significant attention to
marquee events.
Review process:
For the past decade, the MBVCA has used a multi -level review process for grant review; the process
is reviewed annually. The process includes a mandatory pre - proposal staff conference regarding
MBVCA policies and procedures and TAP. During the interview, MBVCA administration advises
each potential applicant regarding eligibility and appropriateness of the proposed project and defines
the grant category best suited to the potential grant. If eligible, the applicant will then meet with
administration to discuss the process in further detail, including required attachments and meeting
dates. All grant formats and policies are available on the MBVCA website. By Florida law, all
MBVCA meetings are posted and are open to the public; all records are public records.
Annually, the MBVCA reviews and refines grant guidelines with respect to efficacy and
effectiveness. In FY 2010/2011, the MBVCA implemented several changes to the existing declining
scale in the "Special Projects Recurring" and "Special Events Recurring" categories in order to better
support and fund grant recipients, allowing for more competitive funding. After review in 2011, it was
determined that room nights are generated equally by non - profit and for - profit organizations.
The MBVCA guidelines and application process place emphasis on defining and measuring the
economic impact of each event, as well as considering the impact and value of marketing, publicity
and television origination /viewership. Questions concerning the economic impact of the program,
including requiring an explanation of various aspects of the marketing plan, and how the numbers of
hotel room nights are calculated, are also included in the application, as are the event's or
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VCA Budget FY 11/12
organization's name, publicity plan, community and residential involvement, or special residents'
considerations. Standardized recap sheets have been developed to give each applicant a score that
rates potential success. Using this tool, the MBVCA can better evaluate the recipient's long -term
commitment to the community, commitment to brand enhancement, value to tourism, and economic
impact. The application requires contract confirmation for hotel room blocks, letters of media
confirmation and /or viewership contracts to be attached to the completed application; that data must
be confirmed before and after funding is awarded. The MBVCA vote on each specific and individual
grant, and evaluates the grant request, funds available and possible extenuating circumstances after
a formal presentation by the grant applicant, a question and answer period and after further
discussion.
Recurring projects:
The MBVCA also has a current policy in place to fund recurring projects on a declining scale, as
necessary. The declining scale encourages recurring events to recruit corporate and private
sponsorship and, therefore, not solely rely on MBVCA funds as a means of sustaining the event year
after year. The award category establishes funding caps for recurring events, funding that can be
reduced based on the maximum request for the specific grant category. This new scale,
implemented in FY 2010/11, has a smaller annual percentage decrease. The following is the current
declining scale:
Year 1 Initial Grant Award
Year 2 No more than 90% of Eligible Request
Year 3 No more than 80% of Eligible Request
Year 4 No more than 70% of Eligible Request
Year 5 New Cycle Begins
Categories:
As previously noted, Tourism Advancement Program funds are awarded in nine categories,
including: Cultural Tourism, Development Opportunities, Film Incentive, Initiatives, Major One Time
Special Event, Special Events Recurring, Special Projects, Special Projects Recurring and Tourism
Partnerships. The MBVCA has developed pre - eligibility criteria for grants for these categories. The
criteria allow staff to determine eligibility and the appropriate grant category. Applicants must meet
two of three of the criteria noted.
Grant Category Hotel Room Nights Impressions Viewership
Cultural Tourism 200 500,000 1,000,000
Development 75 200,000 1,000,000
Opportunities
Film Incentive* 250 N/A N/A
Initiatives ** N/A N/A N/A
Major One Time 250 500,000 1,000,000
Special Event
Special Events 250 500,000 1,000,000
Recurring
Special Projects 2,500 250,000,000 15,000,000
Special Projects 2,500 250,000,000 15,000,000
Recurring
Tourism 200 500,000 5,000
Partnerships ( visitors /attendees /participants)
* Industry specific eligibility criteria in place for this program
** Initiatives are specifically targeted towards organizations chosen by the MBVCA to carry out the
designated initiative
Page 4 of 6
VCA Budget FY 11/12
Budget (TAP) FY 2011/2012:
The MBVCA has budgeted $1,627,650 for FY 2011/2012 for its Tourism Advancement Program.
This grant funding reflects an increase of $164,650, from FY 2010/2011. The MBVCA rolls over
funds from the previous fiscal year to cover the increase in fund allocation.
• The Special Projects Recurring category is budgeted at $629,000. Anticipated applicants
include Art Basel Miami Beach; Orange Bowl Marketing Campaign and its team hotels;
South Beach Comedy Festival; ING Miami Marathon and Half Marathon and Tropical 5K; the
South Beach Wine and Food Festival; the Miami International Film Festival; and
FUNKSHION Fashion Week Miami Beach. These events, recruited and sustained by the
MBVCA, are all marquee events and annually fill the City's hotel rooms.
• The Major One Time Special Event Category was budgeted at $150,000 in FY 2011/2012,
which is the same level as FY 2010/2011, as the MBVCA expects the same number of new
events to apply. The MBVCA works tirelessly to stimulate and recruit new events and is
willing and prepared to fund valuable tourism and brand related events. In fact, the MBVCA
works with all partners, city leadership and media to solicit appropriate new projects. New
events are expected to include Miami Beach International Bridal Week and the National
Association of Television Program Executives (NATPE).
• The Special Events Recurring Category has been calculated at $575,400 for FY 2011/2012
based on the established declining scale and on the number of applicants anticipated to
return.
• The Tourism Partnerships Category is budgeted at $78,250, for FY 2011/2012 currently
including applicants at the maximum request cap of $30,000. Three applications are
anticipated to be received.
• The Development Opportunities category is budgeted at $30,000 for FY 2011/2012. The
maximum award for one applicant is $30,000. Two applications are anticipated to be
received. Examples include the Pan American International Karate Tournament. The MBVCA
has committed to invest in new events to be recruited in FY 2011/2012.
Destination Marketing
The Destination Marketing allocation reflects a 17% increase from FY 2010/2011. This increase is
due to the placing of stories on the PR Newswire.
Research & Development
The MBVCA will research major events to bring to the destination in FY 2011/2012 and fund any
additional requirement for event recruitment from this fund. j
New Initiatives
The MBVCA expects to support new initiatives in FY 2011/2012 at the request of partners and
community and industry leaders. Strategic plans, goals and initiatives are developed through
consultation, the result of ongoing communications. Some of these initiatives include the
enhancement of the SHOP Miami Beach Program; Art Deco exhibit in MIA; a new contest for Miami
Beach students; and additional support for the Mayor's Blue Ribbon Task Force on Tourism
initiatives; such as the efforts of the Lincoln Road Beautification Sub - Committee.
The MBVCA is also taking a leadership role in recruiting / encouraging events of mass appeal to
take place in Miami Beach. Strategic goals and initiatives will be developed through consultation
with partners and continued outreach.
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VCA Budget FY 11/12
Public Relations Initiative
Following a competitive Request for Proposals (RFP) search, the MBVCA selected Hill & Knowlton
(H &K) as P.R. agency of record to enhance Miami Beach's image. H &K will support the MBVCA
effort by increasing brand awareness through strategic media outreach to consumer and travel
trades, major event recruitment, and business and corporate communications programs. H &K has
an extensive presence in the US and internationally. The agency's ability to network and leverage
its global relationships is crucial to the growth of brand 'Miami Beach.'
The MBVCA will invest $250,000 in FY2011/2012 in this effort, and expects to do so for the next
several years. However, the MBVCA is precluded by law from entering into multi -year contracts.
Objectives include increased public relations or tourism related activities in CMB, recruitment on new
events and meetings, improvement of CMB global reputation. CMB leaders have been active
participants in planning and in oversight.
Visual Memoirs Project
The MBVCA issued an RFP for qualified entities to record, catalogue and warehouse personal and
eyewitness accounts of the history of the City of Miami Beach. These deliverables are to include a
recorded detailed history of Miami Beach through personal interviews, creating collateral materials
about the history of Miami Beach and identifying comprehensive exhibit concepts that can be
implemented to execute a comprehensive visual memoir library and promotional campaign. Review
of submissions will be completed in August 2011, and the award is expected before September
2011.
IT /API Development
The MBVCA wishes to provide visitors with timely and relevant information about the City of Miami
Beach, its public and private attractions, services, hotels, businesses, and events in order to
enhance visitors (and residents) experience. Visitors to Miami Beach - all visitors worldwide -
increasingly use technology to navigate cities or make decisions about leisure experiences, dining,
parking, entertainment and travel in general. Worldwide, technology is king. Many visitors already
use the Miami Beach Wi -Fi service to access the information they need at locations around town.
Miami Beach visitors and residents are using smart phones and tablets to communicate and acquire
information to make these kinds of decisions on- the -go. It is now critical for these visitors and
residents to have access to mobile applications that can help them obtain the information they need
to make a timely and informed decisions.
The MBVCA believes that the development of multiple applications must be developed to answer
the varied needs before and during a CMB visit; appropriately designed and crafted applications can
and should positively impact residents' experiences, as well. Providing superior information - access
experience will become a differentiating factor for our community. Visitors leave with the knowledge
that CMB is au courant. The MBVCA is taking immediate action to create a platform for future IT
development through a substantial financial investment. The MBVCA's preliminary review of
opportunities and needs was initiated in spring 2011 in consultation with area experts, and
subsequent to a public meeting sponsored by the MBVCA as a situational analysis. The MBVCA
expects to release an RFP for this initiative in September 2011 and will use unused funds from 2011
to fund this effort.
Projected Cash Flow Reserve
The MBVCA has budgeted $7,000 in the cash flow reserve for FY 2011/2012. The City of Miami
Beach allots resort tax payments to the MBVCA a month after its collection. Therefore, as a fiscal
responsibility, the MBVCA has built in a $7,000 projected cash flow reserve to its budget to ensure
Page 6 of 6
VCA Budget FY 11/12
that all grants awarded will have the necessary funds to be reimbursed upon proper request and
documentation.
Fy 2011/2012 Administration and Overhead
The MBVCA's administrative and overhead costs are budgeted at $311,350 for the FY 2011/2012.
The administration and overhead allocation is an increase from FY 2010/2011, and is attributed to
the hiring of a full -time clerk, necessary equipment purchases and upgrades, web and internet,
increases in medical insurance and pension contribution. This figure is also inclusive of the
maintenance of the office space and equipment.
Fy 2010/2011 Rollover
A total of $200,000 will be rolled over from FY 2010/2011 into the FY 2011/2012 MBVCA budget to
fund special projects. This rollover of funds is primarily from the grants that were either not awarded
and /or were rescinded for noncompliance.
CONCLUSION
It is recommended that the Mayor and Commission adopt and approve the proposed Miami Beach
Visitor and Convention Authority Budget for FY 2011/2012 in the amount of $2,337,729, as reflected
in Exhibit A.
T.IAGENDAl201119 -27 -111 VCA Budget Memo. doc
MIAMI BEACH VISITOR AND CONVENTION AUTHORITY
FY 2011/2012
APPROVED BUDGET PROPOSED BUDGET
FY 2010.2011 FY 2011.2012 VARIANCE
-
REVENUES
Unrestricted (2 year planned expenditure) $ - $ 320,000 $ 320,000
Rollover 175,000 200,000 25,000
Projected Resort Tax 1,599,511 1,817,729 218,218
TOTAL REVENUES 1,774,511 $ 2,337,729 $ 563,218
EXPENDITURES
Administration & Benefits $ 200,000 $ 250,000 50,000
Operating Expenses 45,000 54,350 9,350
Capital 2,151 7,000 4,849
Total Administration $ 247,151.00 $ 311,350 $ 64,199
GRANTS - Tourism Advancement Program
Tourism Partnerships $ 62,600 $ 78,250 15,650
Cultural Tourism 30,000 30,000 -
Major One Time Special Event 240,000 150,000 (90,000)
Special Events Recurring 456,000 575,400 119,400
Development Opportunities 48,000 30,000 (18,000)
Special Projects 80,000 75,000 (5,000)
Special Projects Recurring 486,400 629,000 142,600
Film Incentive 60,000 60,000 -
Total Tourism Adv. Program $ 1,463,000
$ 1,627,650 $ 164,650
Reinvestment plan over 2 years
Marketing /Communications and PR RFP $ - $ 250,000 250,000
IT Development - 50,000 50,000
Visual Memoirs Project RFP - 20,000 20,000
Total $ - $ 320,000.00 $ 320,000
Other
Destination Marketing 33,360 40,000 6,640
R &D 5,000 7,729 2,729
Initiatives 24,000 24,000 -
Projected Cash Flow Reserve 2,000 7,000 5,000
Total Other $ 64,360 $ 78,729 $ 14,369
TOTAL $ 1,774,511 $ 2,337,729 $ 563,218
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