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2012-27958 Reso RESOLUTION NO. 2012 -27958 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A REQUEST BY THE MIAMI BEACH GARDEN CONSERVANCY, INC., TO INCREASE THE FACILITY RENTAL RATES FOR THE MIAMI BEACH BOTANICAL GARDEN, AS RECOMMENDED -BY THE FINANCE AND CITYWIDE PROJECTS COMMITTEE ON JULY 10, 2012 WHEREAS, on January 17, 2007, the City executed a Management Agreement with the Miami Beach Garden Conservancy, Inc., for the management and operation of the Miami Beach Botanical Garden ( the Management Agreement ) and WHEREAS, the Management Agreement expressed that the Botanical Garden shall be managed and developed as a multi- purpose community resource centered on an outstanding public botanical garden, and that the City and the Conservancy intend that the activities programmed in and pertaining to the Botanical Garden continuously increase in scope and number; and WHEREAS, on June 6, 2012, the Mayor and City Commission approved a renewal of the Management Agreement for an additional five -year term, commencing on July 1, 2012, through June 30, 2017; and WHEREAS, the Management Agreement requires that the Miami Beach Garden Conservancy, Inc. present, for approval by the City Manager and /or her designee, on or before July 31st of each year, a proposed line item budget identifying the funding it anticipates raising through facility rentals, grants, donations, and other sources, as well as the level of funding it is requesting from the City to subsidize the operations at the Botanical Garden; and WHEREAS, the Garden Conservancy has requested authorization for an increase of the rental rates at the facility; and WHEREAS, the Garden Conservancy maintains that, without City approval for the proposed rate increases, it cannot accurately project revenues for the next fiscal year; and WHEREAS, the Garden Conservancy conducted extensive market research and visited other facilities in Miami -Dade and Broward Counties, and compiled a proposed rate structure based upon comparable. conditions in other facilities; and WHEREAS, compared to the rates charged by venues like Fairchild Tropical Garden in Coral Gables; the Deering Estate in Miami; the Bonnet House and Gardens in Ft. Lauderdale; and the Shane Rowing Center and Bass Museum in Miami Beach, the rates being proposed for the Miami Beach Botanical Garden are reasonable and viable; and WHEREAS, the proposed rate structure was discussed by the City's Finance and Citywide Projects Committee on May 17, 2012, and July 10, 2012; and - C WHEREAS, the Finance and Citywide Projects Committee approved the proposed rate structure on July 10, 2012., NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Commission hereby approved a request by the Miami Beach Garden Conservancy, Inca to increase the facility rental rates at the Miami Beach Botanical Garden; with such' new rate structures attached and incorporated as Exhibit "A" to this Resolution. PASSED and ADOPTED this 18 day of July 2012. :INCORP ORATED: T HER RA I ff0V\/tR, MAYGR ATTEST: 2 h •�� RAFAEL E. GRANA O, CITY CLERK APPROVED AS TO. FORM & LANGUAGE 8 FOR EXECUTION oh it Attorney Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving a request by the Miami Beach Garden Conservancy, Inc., to increase the facility rental rates for the Miami Beach Botanical Garden, as recommended by, the. finance And Citywide Projects Committee on July 10, 2012. Key Intended Outcome Supported: Increase resident satisfaction with the level of services and facilities and with recreational programs: Supporting Data (Surveys, Environmental Scan, etc:): Approximately 85% of residents surveyed ranked Miami Beach recreational programs as excellent or g ood. issue: Shall the Miami Beach Botanical Garden increase its event rental rates to be comparable with other g arden facilities? Item Summary /Recommendation: The Agreement between the City and the Garden Conservancy requires the Garden Conservancy to present for approval by the City Manager and /or his designee on or before July. 31st of each year, a proposed line item budget identifying the funding it anticipates raising as well as the level of funding it is requesting from the City to subsidize the operations at the Botanical Garden. Several months ago, the Garden Conservancy requested authorization for an increase of the rental rates at the facility. In light of the City's annual contribution to the Garden Conservancy, approval of the proposed increased rates was deferred by the Finance and Citywide Projects Committee (FCWPC) until the City's budget review process was underway. During the May 17, 2012 meeting of the FCWPC when the Garden Conservancy's contract renewal option was discussed, the Garden Conservancy's request for authorization to increase the rental rates of the facility was also discussed, but FCWPC requested that a revenue projection be provided to the City demonstrating the proposed rate structure and resulting income, and that this projection be submitted in July for consideration during,the budget meetings. The Garden Conservancy notes tha, due to the typical lead time involved in booking the larger events at the facility, which.in some cases can be as much as a year ahead of time, most of the events on the books for the next fiscal year will,have been booked at the current rate structure. if the new increased rates are approved by the City, they will go into effect on January 1, 2013, and the additional revenue will not be consistent in FY12/13. A full year of increased rates will be realized in FY13/14. Garden Conservancy staff conducted extensive market` research and visited other facilities to compile comparable rates. The results of this research and the proposed increased rental rate structure for the Miami Beach Botanical Garden are summarized in the attachment to the Commission Memorandum. Compared to the rates charged by venues like Fairchild Tropical Garden, the Deering Estate, and other venues, the proposed rates are reasonable and viable. In addition, increased rental revenues may assist in reducing the need and /or level of the City's subsidy funding for the Garden. Advisory Board Recommendation: Finance and Citywide Project Committee May 17, 2012, and July 10, 2012. Financial Information: Source of Amount Account Funds: N/A 2 3, OBPI Total Financial Impact Summary: Garden Conservancy's prediction that revenues under the new rate structure would not significantly impact its budget until the second quarter of FY13/14. On July 10, .2012, the FCWPC deferred review of the City's contribution until the City's final budget and other City contributions are reviewed, but recommended that the proposed rate increase be immediately approved. City Clerk's Office Legislative Trackin Anna Parekh ext. 7260 Sign -Offs: Department Director Assi t Cif Meyager I Cit anager AF MAS KGB 4 AGENDA 11TEM MIAMBEACH ..DATE I Z M 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: Kathie G. Brooks, Interim City Manager DATE: July 18, 2012 SUBJECT:, A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A REQUEST BY THE MIAMI BEACH GARDEN CONSERVANCY, INC., TO INCREASE THE FACILITY RENTAL RATES FOR THE MIAMI BEACH BOTANICAL GARDEN, AS RECOMMENDED BY THE FINANCE AND CITYWIDE PROJECTS COMMITTEE ON JULY 10, 2012. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND On June 6, 2012, the Mayor . and City Commission approved a renewal of the Management Agreement between the City of Miami Beach and the Miami Beach Garden Conservancy, Inc., for an additional five -year term, commencing on July 1, 2012 through June 30, 2017. The Agreement between the City and the Garden Conservancy requires the Garden Conservancy to present for approval by the City Manager and /or his designee on or before July 31st of each year, a proposed line item budget identifying the funding it anticipates raising through facility rentals, grants, donations, and other sources, as well as the level of funding it is requesting from the City to subsidize the operations at the Botanical Garden. At the time the Garden Conservancy requested to exercise its five -year renewal option, it also requested authorization . for an increase of the rental rates at the facility. 'in light of ' the City's annual contribution to the Garden Conservancy, approval of the, proposed increased rates was deferred 'by the Finance and Citywide Projects 'Committee' ( FCWPC) - until the City's budget review process was underway. During the May 17, 2012 meeting of the FCWPC when the Garden Conservancy's contract renewal option was discussed, the Garden Conservancy's request for authorization to increase the rental rates of the facility was also discussed. At that time, the FCWPC requested that,. in order to determine the Garden Conservancy's level of funding for FY 2012/13, a revenue projection be provided to the City demonstrating the proposed rate structure and resulting income, and that this projection be submitted in July for consideration during the budget meetings. While the FCWPC had requested at the May 17, 2012 meeting that a detailed income projections be provided, the Garden Conservancy maintains that, without City approval Proposal for Increased Rates for the Miami Beach Botanical Garden Commission Memorandum July 18, 2012 Page 2 of 3 for the proposed rate increases, it cannot accurately project revenues for the next fiscal year. Also, revenue projections cannot be based on prior years because they will not take into account any potential drop -off in bookings that may result due to increased rates. The Garden Conservancy notes that, due to' the typical lead time involved in booking the larger events at the facility, which in some cases can be as much'as a year ahead of time, most of the events on the books for the next fiscal year will have been booked at. the current rate structure. If the new increased rates are approved by the City, they will go into effect on January 1, 2013, and the additional revenue .will not be consistent in .FY"12/13. A full year of increased rates will be realized in FY13/14. Therefore, the Garden Conservancy has requested that the City's contribution remain at $137,228 for FY12/13. This is the same amount as the Garden Conservancy received during the.past two fiscal years. On July 10, 2012, the FCWPC deferred review of the City's contribution until the City's final budget and other City contributions are reviewed, but recommended that the proposed rate increase be immediately approved. PROPOSED RATE INCREASE During the time. the Botanical Garden was closed for construction, Conservancy staff conducted extensive market research and visited other facilities in Miami -Dade and Broward counties, to learn about their respective rental policies, pricing and amenities. The results of this research are summarized in the side -by -side comparison attached matrix, which includes the current and proposed rental rate structures for the - Botanical Garden.. It should be noted that the rates reflected for each of the venues is strictly limited to rental of their respective facilities and does not include catering or any additional services. Based on the attached schedule, the ,Conservancy is proposing to increase the rate for rental of the Banyan Room, which can accommodate up to 120 people, from $850 for a period of up to four hours, to $2,500 for non -City residents and /or business and $1,500 for City residents. Each .additional hour would be charged at a rate of $200, per hour, reflecting an increase of $25 from the current plan. Also, under the new plan,` the rental rate would also include access to the Great Lawn, which previously was mostly reserved for stand -alone events for up to 600 people. However, since the renovations have converted much of the area occupied by the Great Lawn into a signature water feature, it is now included as an additional amenity for. renting the Banyan Room. For the remaining areas of the Garden that can still be rented out for smaller events, including the Palm Grove and the Japanese Garden, the rents under the new plan would also remain the same. Additional charges including state sales tax and insurance; an annual family membership fee of $50.00 for non - members; $25 per hour for a garden attendant and $125 per hour for janitorial services, shall also still apply under the new plan. Copies of the current and proposed rate plans for the Botanical Garden are included as Exhibit B to this Memorandum. It should be noted that compared to the rates charged by venues like Fairchild Tropical Garden in Coral Gables, the Deering Estate in Miami, the Bonnet House and Gardens in Ft.. Lauderdale and the Shane Rowing Center and Bass Museum in Miami Beach, the rates being proposed for the Botanical Garden are reasonable and certainly viable. In addition, increased rental revenues may assist in reducing the need and /or level of the City's subsidy funding for the Garden in the future. Proposal for Increased Rates for the Miami Beach Botanical Garden Commission Memorandum July 18, 2012 Page 3 of 3 RECOMMENDTION In light of the results of the market analysis, the proposed rates appear reasonable. Therefore, The Administration recommends authorization be granted for the, proposed increased rental rates as they were presented to the FCWPC on May 17, 2012, and recommended for approval by FCWPC on July 10, 2012. Once approved by the Mayor and City Commission, the new rates could be in effect immediately. Regarding the City's annual contribution, it is difficult for an informed recommendation to be made by the Administration without having the benefit of projections or forecasts for revenues. Therefore., and in light of the Garden Conservancy's prediction that the revenues under the new rate structure would not significantly impact its budget until the second quarter of FY13/14, the Administration recommends that the City's contribution be considered as part of the annual budget process as in previous years. KGB /MS /AP /KOB Attachments: Miami Beach Botanical Garden Proposed New Rental Rates i EXHIBIT W Miami Beach Botanical Garden Proposal New Rental Rates AREA DESCRIPTION INCLUDES RENTAL RATE ` ADD :HOURS Butterfly Size- .i&.X35' 3 Tables and $350.001 oy Hours Event And A s aoo.00:ParAdd Room Venue for qo yo Chairs. Security Deposit: Hour People s 25o.00 (From thisdeposit.we.will retain a! non - refundable application fee of sa0000 thatwon't be refunded)'. Banyan Room Size 3o',k (2a) B'ft rectangular s 21500.001 oy Hours Eyent sr2oo.00 Peradd Room 50 banquettables & ioo Security Deposit: s000 0o Hour � Venue forioo- oo folding chairs (From this deposit we will retain a non Terrace& 3 9 P (includes facility Great People refundable application fee of attendant fee): Lawn S a0000'that won't be refunded) Japanese Venue for 5o For Ceremonies and s556.001 op Hours:Event =And A. 3 s2S.00 Per-Add Garden People• Cocktails receptions Security' Deposit: S2S0.00 Hour • Landscaped Area ONLY' (From this deposit we wil[retain a non '(includes facility refundable :applicationfee;ofszoo;oo attendnntfee) thatwon't be refunded)' ` The-Entire All areas (i2) 8 ft rectangular s ys00 -oo14 Hours Event And A s 500.00 ,Per Add` Garden Venue for 500: banquet tables & (22) Security Deposit: Hour People 6o ' round 'tables & $2000.00 (includes facility 200 folding chai (From this deposit we will retain non- • attendant -) refundable application'fee of s ioo.00 that won'tbe refunded) Please Note: Additional fees to the base rental fee and security deposit Will'be charge: ►Annual Membership fee of s5o.00. if not yet a member of the garden. 1,7,46:SalesTa' Xtoall rental amounts due Miami Beach Botanical "Garden: Fee for Garden Attendant is saS.00 an hour and $125:00 fee for janitorial :services:. ► Insurance,premium(s)charge s s.00 per expected number of,participantslprojected number of people in attendance liquor sold; If•any, upon.Miami Beach Botanical Garden premises: . Miami' Beach - Resident.Rate s 1.,500.00 plus• additional fees. (Please provide ID proof or utility balls);