98-22680 RESO Incomplete
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE A ONE YEAR GRANT
AGREEMENT BETWEEN THE CITY, ON BEHALF OF THE MIAMI
BEACH CUL TUR~L ARTS COUNCIL (COUNCIL), AND THE MIAMI
BEACH VISITOR AND CONVENTION AUTHORITY (YCA), REGARDING
AN APPROPRIATION OF MONIES BY THE VCA FROM ITS FISCAL
YEAR 1998/1999 BUDGET TO THE COUNCIL EQUAL TO 65% OF THE
VCA'S FY 98/99 BUDGET, AND ALSO INCLUDING ANY CURRENT
BALANCE SHEET AMOUNTS; SAID AGREEMENT HA VING AN
EFFECTIVE DATE OF OCTOBER 1, 1998, AND EXPIRING ON
SEPTEMBER 30, 1999, WITH THE GRANT FUNDS TO BE
APPROPRIATED BY THE CITY FOR THE CULTURAL ARTS COUNCIL,
TO BE USED BY THE COUNCIL FOR CUL TURAL RELATED PURPOSES;
PROVIDING FURTHER FOR THE SET ASIDE OF $50,000 FROM THE
GRANT FUNDS, TO BE USED BY THE COUNCIL FOR JOINT CULTURAL
TOURISM RELATED FUNDING PROJECTS TO BE COORDINATED IN
CONJUNCTION WITH THE VCA.
WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) is a tourist
development authority established pursuant to the provisions of Chapter 67-930, Laws of Florida,
1967, and Article VI, Section 41-63, et seq. of the Code of the City of Miami Beach; and
WHEREAS, on March 5, 1997, the Mayor and City Commission adopted Ordinance No.
97-3075, creating and establishing the Miami Beach Cultural Arts Council (Council), which has the
purpose of developing, coordinating, and promoting the performing and visual arts in the City for
the enjoyment, education, cultural enrichment and benefit of the residents of and visitors to the City;
and
WHEREAS, in addition to having received an initial funding endowment from the City, the
Council is also charged with the responsibility to actively seek other revenue sources, including
private sector contributions and public grants, to further support its purposes and objectives; and
WHEREAS, in furtherance of this objective and other issues, the Council has been meeting
with the VCA to discuss the interrelation and future of the VCA and the Council; and
WHEREAS, throughout the course of these discussions, the following issues were raised:
a) A sunseUmerger of the VCA into the Council, thereby transferring the powers
and duties of the VCA, including all funding currently received by the YeA,
to be administered by the Councilor, in the alternative;
b) The continued maintenance of both the VCA and the Council as separate
entities, but with the VCA administering, and having proportionate funding
for, tourist-related projects and events, while giving the Council concurrent
jurisdiction, and proportionate funding, for cultural related purposes; and
WHEREAS, the VCA and the Council further discussed that the latter alternative; that is,
the VCA retaining jurisdiction over funding for tourism related events and the Council assuming
jurisdiction over funding of cultural related projects, would involve an appropriation, in the form of
a grant to the City, to be used by the Council, substantially equal to the proportionate amount in the
VCA's annual budget currently used to fund cultural projects and events by the VCA; and
WHEREAS, at a joint sub-committee meeting attended by members of the VCA and the
Council on January 12, 1998, the members in attendance recommended to maintain both entities,
but also recommend that the Mayor and City Commission negotiate an agreement with the VCA,
on behalf of the Council, regarding an annual appropriation, in the form of a grant from the VCA
to the Council, whereby the Council would receive funds equal to 65% of the VCA's annual budget,
including any current balance sheet amounts, to be used by the Council for funding consistent with
cultural related purposes; and
WHEREAS, at its regular meeting on February 12, 1998, the Council unanimously
recommended that the City enter into the aforestated grant agreement, with the additional proviso
that said agreement automatically renew itself on an annual basis, commencing on October 1st of
each fiscal year; and
WHEREAS, the aforestated history of the Council and VCA negotiations with regard to this
issue, along with a term sheet outlining the terms of the proposed grant agreement, were presented
to the Mayor and City Commission at their regular meeting on February 18, 1998; and
WHEREAS, the Mayor and City Commission requested that the Administration provide it
with additional background information regarding the interrelation of the VCA and the Council, and
that the City Attorney's Office draft the proposed agreement, said Grant Agreement attached hereto,
for consideration at the next regular Commission meeting on March 4, 1998; and
WHEREAS, additionally, the Mayor and City Commission requested that the Grant
Agreement be proposed for an initial one (1) year term, commencing on October 1, 1998 and
expiring on September 30, 1999, thereby allowing the City the option to review the interrelation of
the Council and the VCA at the end of said one year period.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission herein approve and authorize the Mayor and City Clerk to execute a one year Grant
Agreement between the City, on behalf of the Miami Beach Cultural Arts Council, and the Miami
Beach Visitor and Convention Authority, regarding an appropriation of monies by the VCA from
2
its Fiscal Year 1998/1999 budget to the Council equal to 65% of the VCA's FY 98/99 budget, and
also including any current balance sheet amounts; said agreement having an effective date of October
1, 1998, and expiring on September 30, 1999, with the grant funds to be appropriated by the City
for the Cultural Arts Council, to be used by the Council for cultural related purposes; providing
further for the set aside of $50,000 from the grant funds, to be used by the Council for joint cultural
tourism related funding projects to be coordinated in conjunction with the VCA.
PASSED and ADOPTED this
day of
,1998.
ATTEST:
MAYOR
CITY CLERK
F:IA TTOIAGURIRESOSICUL TARTS. VCA
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
d1fc~
i Attorney
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Date
3
;ITY OF MIAMI BEACH
fY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
p:\\cLmiami-beach. fI.us
COMMISSION MEMORANDUM NO. LLt- 0 - ~ ~
TO:
Mayor Neisen O. Kasdin and
Members of the City Com ission
DATE: March 4,1998
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
A RESOLUTI APPROVING AN AGREEMENT BETWEEN THE
VISITORS AND CONVENTION AUTHORITY (YCA) AND THE CITY FOR
A GRANT FROM THE VCA TO THE CULTURAL ARTS COUNCIL (CAC).
ADMINISTRA TION RECOMMENDATION
The Administration recommends that the Mayor and City Commission approve the Resolution.
BACKGROUND
In 1967, the State of Florida created a law allowing municipalities to collect a resort tax and
designate an agency to spend such funds. Thus, the City of Miami Beach created the Visitor and
Convention Authority (VCA) in 1979 pursuant to that legislation. The Authority was created to
streamline the requests for funding for tourist development to an autonomous source other than the
City Commission. In 1985, the VCA and the City Commission reasoned that, by combining forces
with other cities and the county, it could utilize the funds more effectively. Thus, the Greater Miami
Convention & Visitors Bureau, as it is known to us today, was created to handle the tourism portion
of the funds generated. Residual tax collected, which was left behind with the VCA and not given
to the Bureau, was to be used to promote tourism within the City through marketing, special events
and related activities.
ANAL YSIS
Analysis of annual expenditures of the VCA over the past nine (9) years reveals that over 70% of
the annual allocation for local grantees has been to cultural and cultural tourism-related events, rather
than tourism and special events. (The VCA allocates the largest percentage of its funding to
culturally-related events and local projects that also promote tourism and local benefits for the
citizens of Miami Beach.) A VCA budget breakdown is attached, showing a four year funding
history .
The Cultural Arts Council (CAC) was created in 1997 with the mission of assisting the art-related
organizations and individuals to enhance their area of expertise, promote awareness, engender public
participation and fund capital needs. The funding was not intended to replace funding support that
the VCA had provided, but rather, the Cultural Arts Council funding was to augment those funding
levels established by the VCA.
The VCA and CAC have met and agreed to a 65% and 35%
split of existing funds beginning in fiscal year 1998, and a
$50,000 set aside (from the CAC 65%) to be used for joint
AGENDA ITEM t I F
DATE~ 8""
allocations with the YCA. (These two groups need to agree on the terms under which the $50,000
will be allocated, prior to consideration.) The 35% left to the YCA for support of pure tourism
related items will continue to benefit this major industry.
CONCLUSION
Both the VCA Board of Directors and CAC Board of Directors have agreed to the terms of the
proposed Resolution. The proposed distribution of funds seems sufficient, based on past allocations,
to provide for the needs of these two aspects of the industry. This Grant Agreement is proposed for
an initial one (1) year term, commencing on October 1, 1998, and expiring on September 30, 1999,
allowing the City the option to review the interrelation of the CAC and the VCA at the end of the
first year. Therefore, the City Commission should approve the Resolution.
SR:t:PW
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