2013-28364 Reso 2013-28364
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 2013/2014 BUDGET, IN
THE AMOUNT OF $29664,000.
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
presented to the Mayor and Commission; and
WHEREAS, accordingly, the MBVCA recommends approval of the proposed budget for FY
2013/2014, in the amount of$2,664,000, 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 2013/2014 budget, in the amount of
$2,664,000.
PASSED AND ADOPTED THIS 0A DAY OF I.>e 2013.
ATTEST:
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution adopting and approving the Miami Beach Visitor and Convention Authority (MBVCA) FY
2013/2014 budget in the amount of$2,664,000.
Key Intended Outcome Supported:
Maximize Miami Beach as a destination brand.
Increase community ratings of cultural and tourism related activities.
Supporting Data (Surveys, Environmental Scan, etc.): .According to the 2012 Survey, around two out of
three businesses felt the number of restaurants and nightclubs was about right, while 60% of businesses
thought there were too few museums (61% of residents thought the City had the right number of museums).
Businesses' positive ratings for City's management of special events were down considerably from 74% in
2009 to 59% in 2012. Despite this result, the percentage of businesses that thought the City held the right
number of major events increased from 50% in 2009 to 66% in 2012. Residents in 2012 reported visiting
various venues and cultural activities more frequently in 2012 than in 2009. The typical resident ate in
restaurants 77 times in the past year, went to the beach 67 times and visited City parks and recreational
areas 58 times. Conversely, the typical resident went to museums and nightclubs only eight times in the past
ear.
Issue:
Shall the Mayor and Commission approve the Miami Beach Visitor and Convention Authority (MBVCA) FY
2013/2014 budget in the amount of$2,664,000.
Item Summa /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
2013/2014 budget during its'Au ust 7, 2013 board meeting.
Financial Information:
Source of Amount Account Approved
Funds: 1 $2,289,000 2% Resort Tax Revenue
2 $200,000 Rollover from FY 2011/12 year
3 $175,000 Unrestricted Reserve
4
PI Total $2,664,000
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Grisette Roque Marcos
Sign-Offs:
Department Director Assists City Manager City Manager
e
T:WGENDA\2012\9-27-12\VCA Budget Comm Summary.doc
AGENDA ITEM R7 M
MIAMMEACH
� DATE q-30-13
MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and embers o the City Commission
FROM: Jimmy Morales, City Manager
DATE: September 30, 2013
SUBJECT: A RESOLUTION OF THE MAY R AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ADOPTING THE MIAMI BEACH VISITOR AND CONVENTION
AUTHORITY(MBVCA) FY 2013/2014 BUDGET IN THE AMOUNT OF $296649000.
ADMINISTRATION RECOMMENDATION
Adopt the Budget
ANALYSIS
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 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, less 4% for administrative allowance. 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 1St
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. In 2008, revenue collections came in $48,000 under estimated projection, and in
2001- the revenue collection was down approximately $300,000 from projection. 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 accounts for future reserves, endowment funding, to address any
funding reductions in future years; in 2001, by statute, the MBVCA began investing into the creation on an
MBVCA FY 13/14 Budget
City Commission Meeting
September 30, 2013
endowment fund.
The MBVCA is required by law to maintain reserve bank accounts in approved public depositories, with sufficient
reserves to cover one year 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 an annual Program of Work to the CMB 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
13 years.
FY 2012/2013 REVIEW/TOURISM ADVANCEMENT PROGRAM(TAP)
The MBVCA Tourism Advancement Program (TAP) was established to promote Miami Beach as a sophisticated
tourist destination by increasing the number of visitors; through enhancement of visitors' experiences; through
the allocation of funds granted to events or programs that bring visitors to the CMB and strengthen the CMB
brand. In fiscal year 2012/2013, the MBVCA funded TAP in eight categories, including: Cultural Tourism, Film
Incentive, Initiatives, Major One Time Special Event, Special Events Recurring, Special Projects, Special Projects
Recurring, and Tourism Partnerships. In 2012, the MBVCA continued to fund investments, utilizing funds rolled
over from several years past.
A total of$1,432,000 was awarded in FY 2012/2013, compared to $1,683,650 in FY 2011/2012. The decrease in
awards reflects a revision to the declining scale in place and less applicants. Grants funded in partnership with
the CMB are critical, branded tourism-related programs, such as the South Beach Wine & Food Festival and
Winter Music Conference, both examples of events whose beginnings in Miami Beach stem from grants
provided by the MBVCA-events that could be recruited by other destinations.
FY 2013/2014 TOURISM ADVANCEMENT PROGRAM
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 over a decade, the MBVCA has used a multi-level review process for its grant program; 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 the eligibility and appropriateness of the proposed project and defines the grant category best suited
to the potential applicant. If eligible, the applicant will then receive further detail of the process, including
required attachments and meeting dates. All grant formats and policies are available on the MBVCA website.
By Florida law, all MBVCA meetings are advertised and open to the public; all records are public records.
Annually, the MBVCA Board reviews and refines grant guidelines with respect to efficacy and effectiveness. In FY
2012/2013, the MBVCA implemented changes to its funding caps and declining scale. The new declining scale
and funding caps allow the MBVCA to diversify their funding into other areas and initiatives as requested by the
City administration and/or the Board. The MBVCA also increased the criteria in place for the Major One Time
Special Event and Special Events Recurring grant categories requiring a total of 350 hotel room nights to be
contracted, from the original 250 hotel room nights required and the media impressions up from 500,000 to a
required 1,000,000. Although the declining scale was revised and the maximum request caps reduced, by
splitting the Special Events Recurring and Major One Time Special Event grant categories, and the Special
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MBVCA FY 13/14 Budget
City Commission Meeting
September 30, 2013
Projects and Special Projects Recurring grant categories to each having their own maximum grant requests, each
applicant was moved up by one year on the declining scale. This led to individual increases in their request caps
for the 2012/2013 fiscal year, even though it reduced the percentage cap requests over time.
The MBVCA guidelines and application process places 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
and where they are contracted, are also required as part of the application, as are the event's or organization's
publicity plan, community and residential involvement, or special residents' considerations. Standardized recap
sheets and point systems have been developed to give each applicant a score that rates potential success. Using
this tool, the MBVCA can better evaluate the applicant'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 votes
on each specific and individual grant, and evaluates the grant request, funds available and possible extenuating
circumstances after a formal presentation is made by the grant applicant. A question and answer period follows
with further discussion as needed.
RECURRING PROJECTS:
The MBVCA has a current policy in place to fund recurring projects on a declining scale. 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.
Below is the current scale, implemented in FY 2012/13; applicable to not and for profit agencies.
Year 1 Initial Grant Award
Year 2 No more than 80%of Eligible Request
Year 3 No more than 70%of Eligible Request
Year 4 No more than 60%of Eligible Request
Year 5 1 New Cycle Begins
CATEGORIES:
Tourism Advancement Program funds are currently awarded in eight categories, including: Cultural Tourism,
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 within
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
Film Incentive* 250 N/A N/A
Initiatives** N/A N/A N/A
Major One Time Special 350 1,000,000 1,000,000
Event
Special Events Recurring 350 1,000,000 1,000,000
Special Projects 2,500 250,000,000 15,000,000
Special Projects 2,500 250,000,000 15,000,000
Recurring
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MBVCA FY 13/14 Budget
City Commission Meeting
September 30, 2013
Tourism Partnerships 200 500,000 5,000
(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
Budget
Budget(TAP)FY 201312014:
The MBVCA has budgeted $1,589,500 for FY 2013/2014 for its Tourism Advancement Program which reflects
61% of the total budget. This grant funding reflects a decrease of$81,667 from FY 2012/2013. This decrease is
due to the decrease in the total grant amount being requested due in part to the declining scale.
• The Tourism Partnerships category is budgeted at $120,000, reflecting 5% of the total budget for FY
2013/2014. The category currently includes applicants at the maximum request cap of $30,000. Four
applications are anticipated to be received.
• The Cultural Tourism category, a joint grant with the City's Cultural Arts Council (CAC) is budgeted at
$30,000 with the CAC contributing an additional $30,000. A total of three applicants are expected, each
at a $30,000 request.
• The Major One Time Special Event category, representing 8% of the total budget, is budgeted at
$225,000 in FY 2013/2014,which reflects an increase from FY 2012/2013.The MBVCA expects five new
events to apply at a maximum request of$45,000. 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
applicants are expected to include Scope Miami Beach, Sweat Miami Beach, Live Ultimate Run South,
Miami Beach Jazz Festival,and Nature Capitale.
• The Special Events Recurring category, reflecting 24% of the total budget, has been calculated at
$616,000 for FY 2013/2014 based on the established declining scale and the number of applicants
anticipated to return.
• The Special Projects category is budgeted at $180,000 with a total of two applicants expected at the
maximum request of$90,000 each.
• The Special Projects Recurring category is budgeted at$433,500 and represents 17%of the total budget.
Anticipated applicants include the Orange Bowl Marketing Campaign; South Beach Comedy Festival;
Miami Marathon and Half Marathon and Tropical 5K; the Food Network South Beach Wine and Food
Festival; the Miami International Film Festival; FUNKSHION Fashion Week Miami Beach; and Miami
Beach International Fashion Week. These events, recruited and sustained by the MBVCA, are all
marquee events and annually fill the City's hotel rooms.
• The Film Incentive category is budgeted at $30,000 for FY 2013/2014, which represents 1% of the
budget; budgeting for a total of 1 possible applicant.
Destination Marketing
The Destination Marketing allocation reflects a 2%of the total budget for FY 2013/2014.This allocation provides
for the additional placement of stories and press releases on the PR Newswire.
New Initiatives
The MBVCA expects to support new initiatives in FY 2013/2014. Strategic plans, goals and initiatives are
developed through consultation, the result of ongoing communications with the Mayor, Commission and City
Administration. Some of these initiatives include Code for America, in conjunction with the City of Miami Beach
and the continued support of The Customer and You—Certificate Program in Service.
Public Relations Initiative
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MBVCA FY 13/14 Budget
City Commission Meeting
September 30, 2013
In FY 2013/2014, the MBVCA will again put out a Request for Proposals (RFP) for a P.R. agency of record
to enhance Miami Beach's image. The selected agency will support the MBVCA efforts by increasing brand
awareness through strategic media outreach to consumer and travel trades, major event recruitment, and
business and corporate communications programs. There is an allotment of$250,000, representing 9 %of the
total budget, towards this effort.
The MBVCA renewed the contract with H+K in FY 2012/2013. The contract runs through June 30, 2014 in FY
2013/2014. Objectives include increased public relations or tourism related activities in CMB, recruitment of
new events and meetings, and improvement of CMB global reputation. CMB leaders have been active
participants in planning and in oversight. 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 the 'Miami Beach'
brand.
H+K created and distributed a total of 15 press releases during their first year as agency of record, garnering
4,630,690,127 media impressions and 12 press releases during their second year, generating 3,913,341,910
media impressions as of June 2013. In the third and final year of the present contract, H&K has generated
126,686,517 media impressions to date,through two press releases.
Visual Memoirs Proiect
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 in FY 2011/2012. The deliverables were 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.
The Miami Design Preservation League in partnership with Close-Up Productions, was awarded a one year
contract on October 1, 2011 in the amount of$21,000, and the contract was renewed in FY 2012/2013 for an
additional $21,000, which represents 1% of the total budget. A total of forty interviews were conducted during
the Project's first year.
The proposed exhibit opened to the public daily for its initial run from mid-October through late November
2012, free of charge from 10:00am until 4:30pm and reopened during Art Deco Weekend 2013. The
documentary played on a loop in the lecture hall portion of the Art Deco Welcome Center. Seating was also
placed near the screen and accommodated approximately 25 people at a time with standing room in the back.
A total of twelve interviews have been conducted as of July 2013 with another eight interviews to be completed
by September 2013.
An educational component was developed for FY 2012/2013 that included a video and guide for Miami Beach
Middle Schools.
In FY 2013/2014,the videos will be prepared for archival as part of a statewide university consortium. MDPL will
also collaborate with various institutions to create links to the online materials.
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 — are increasingly using 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 free Miami Beach Wi-Fi service to access the
information they need at locations around town.
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MBVCA FY 13/14 Budget
City Commission Meeting
September 30, 2013
Miami Beach visitors and residents are using smartphones 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 (Apps)that can help them obtain the information they need to make a timely and informed
decisions.
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 released an RFP in January 2012 and awarded a one year contract to Just Program LLC dba Solodev on
May 22, 2012. The purpose of the RFP was to develop a Miami Beach-focused web-based digital content
management system (CMS) and modifiable database to support 3`d party mobile applications via an application
programming interface (API).
Currently, the API is fully functional with 230 different categories of businesses each averaging 90 different
services and amenities. Web and App developers will be able to use these attributes to create new and exciting
experiences for their end-users.
We have allocated $124,000 or 5 % of the overall budget in FY 2013/2014, to undertake a fine tuning and
release of a fully functional mobile App for the MBVCA API for both iPhone and Android platforms, expand the
API data to include local non-business information that can be useful in app development such as beach access
roads, public restroom,and life guard stands.
Research and Development
The MBVCA has budgeted$21,235 for the FY 2013/2014,to be used toward the development of a business plan
for the API. The allocation represents 1%of the overall budget.
Proiected Cash Flow Reserve
The MBVCA has budgeted $2,000, or 0%of the total budget, in the cash flow reserve for FY 2013/2014.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 $2,000 projected cash flow reserve to its budget to ensure that all grants
awarded will have the necessary funds to be reimbursed upon proper request and documentation.
FY 2013/2014 Administration and Overhead
The MBVCA's administration and benefits costs are budgeted at $311,265 for the FY 2013/2014. This figure
represents 12% of the total budget and includes a 3%COLA.' The overhead allocation is budgeted at $170,000
which reflects 7% of the overall budget. The increase from FY 2012/2013 is attributed to the hiring of an
additional staff person; the build out of new office space, cloud information hosting and redundancy, and capital
expenditures.The total administration and overhead is 19%of the total budget.2
FY 2012/2013 Rollover
A total of$200,000 will be rolled over from FY 2012/2013 into the FY 2013/2014 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
At their August 7, 2013 meeting, the MBVCA Board recommended the Mayor and City Commission adopt the
MBVCA Budget for FY 2013/2014 in the amount of$2,664,000 as reflected in Exhibit A.
1 Approved by the City Commission on March 21,2012
z This is below the non-profit industry standard of 20%(Source:BBB)
6
MIAMI BEACH VISITOR AND CONVENTION AUTHORITY
FY 2013/2014
ADOPTED BUDGET PROPOSED
FY 2012.2013 FY 2013.2014 VARIANCE
REVENUES
Unrestricted $ 269,331 $ 175,000 $ 94,331
Rollover 207,000 $ 200,000 $ (7,000)
Projected Resort Tax 2,118,361 $ 2,289,000 $ 170,639
TOTAL REVENUES $ 2,594,692 $ 2,664,000 $ 69,308
EXPENDITURES
Administration&Benefits $ 314,000 $ 311,265 $ (2,735)
Operating Expenses 140,000 $ 170,000 $ 30,000
Capital 25,000 $ 25,000 $ -
Total Administration $ 479,000 $ 506,265 $ (27,265)
GRANTS-Tourism Advancement Program
Tourism Partnerships $ 120,000 $ 120,000 $
Cultural Tourism 30,000 $ 30,000 $ -
Major One Time Special Event 190,000 $ 225,000 $ 35,000
Special Events Recurring 636,000 $ 616,000 $ (20,000)
Special Projects 155,167 $ 180,000 $ 24,833
Special Projects Recurring 510,000 $ 433,500 $ (76,500)
Film Incentive 30,000 $ 30,000 $ -
Total Tourism Adv.Program $ 1,671,167 $ 1,634,500 $ (36,667)
Reinvestment plan over 3 years
Marketing/Communications and PR RFP $ 250,000 $ 250,000 $ -
Visual Memoirs $ 21,000 $ 21,000 $
IT Development 100,000 $ 124,000 $ (24,000)
Total $ 371,000 $ 395,000 $ (24,000)
Other
Destination Marketing 41,525 $ 45,000 $ 3,475
Initiatives 30,000 $ 60,000 $ 30,000
R&D - $ 21,235 $ 21,235
Projected Cash Flow Reserve 2,000 $ 2,000 $ -
Total Other $ 73,525 $ 128,235 $ 54,710
TOTAL $ 2,594,692 $ 2,664,000 $ 69,308