Ordinance 2018-4171ORDINANCE -NO. - 2018 -4171
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 12 OF THE
CODE OF THE CITY OF MIAMI BEACH, ENTITLED "ARTS, CULTURE
AND ENTERTAINMENT," BY CREATING ARTICLE III, ENTITLED "CITY
SPONSORSHIP OF EVENTS," BY CREATING SECTION 12 -6,
ENTITLED "DEFINITIONS;" BY CREATING SECTION 12 -7, ENTITLED
"REQUIREMENTS FOR CITY SPONSORSHIP OF EVENTS," TO
ESTABLISH CRITERIA AND REQUIREMENTS FOR APPROVAL OF
CITY SPONSORSHIP FOR CERTAIN EVENTS; BY CREATING
SECTION 12 -8, ENTITLED "SPONSORSHIP REQUESTS BY
ADVISORY BOARDS OR ADVISORY COMMITTEES," TO ESTABLISH
REQUIREMENTS FOR APPROVAL OF SPONSORSHIP REQUESTS
FROM ADVISORY BOARDS OR ADVISORY COMMITTEES; BY
CREATING SECTION 12 -9, ENTITLED "SPONSORSHIP TERMS AND
CONDITIONS," TO PROVIDE CERTAIN MINIMUM TERMS AND
CONDITIONS FOR SPONSORSHIP CONTRACTS; AND BY CREATING
SECTION 12 -10, ENTITLED "APPLICABILITY," TO PROVIDE
EXEMPTIONS; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION, AND AN EFFECTIVE DATE.
WHEREAS, the City currently provides a wide variety of grant opportunities for events and
cultural programming through the City's Visitor and Convention Authority ( "VCA ") and Cultural
Arts Council ( "CAC "), in an effort to promote tourism and provide enhanced recreation and cultural
offerings in the City of Miami Beach; and
WHEREAS, in view of the existing grant funding opportunities available to event
organizers through the VCA and the CAC, the Mayor and City Commission desire to establish
requirements and criteria for approval of City sponsorship of events and cultural programming;
requirements for approval of sponsorship requests by City advisory boards or advisory
committees; and minimum terms and conditions for sponsorship contracts.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1.
That Chapter 12 of the Code of the City of Miami Beach is hereby amended as
follows:
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Sec. 12 -6.
Chapter -12
ARTS, CULTURE, AND ENTERTAINMENT
ARTICLE III.
CITY SPONSORSHIP OF EVENTS
Definitions. For purposes of this article, the following definitions shall apply:
Lal "City Costs" means the actual costs incurred by the City to provide police, fire, ocean
rescue, sanitation, emergency management, parking, and transportation services to
support an Event.
"Event" means any event, program or activity produced by a third -party organizer (whether
such organizer is a for- profit or not - for - profit entity) including, without limitation, (i) events
requiring a City of Miami Beach special events permit pursuant to Section 12 -5 of the City
Code; (ii) events taking place in the City of Miami Beach that do not require a City special
event permit, including, without limitation, theatrical or live performances or cultural
programming at any venue located in the City of Miami Beach; and (iii) sporting or
recreational events taking place within the City of Miami Beach. For purposes of requests
for funding pursuant to Section 12 -8 of this article, an Event shall also be deemed to
include any program, event or activity of any kind, for which a; City advisory board or
advisory committee has requested funding or a waiver of permit fees or user fees.
Lcl "Sponsorship" or "Sponsorship Contract" means any contract, grant, or commitment made
by the City of Miami Beach, to underwrite or fund any portion of, or otherwise provide
financial support to, an Event, either through a City cash contribution, in -kind contribution,
waiver of City of Miami Beach special event permit fees, square footage fees,
administrative fees, or user fees of any kind, or reimbursement for City Costs, including
arrangements by which the City may receive promotional, marketing, or other benefits in
connection with the Event, in consideration for the City's cash contribution, in -kind
contribution, or other financial support for the Event.
Sec. 12 -7. Requirements for City Sponsorship of Events.
(a) Requests for City Sponsorship of an Event shall only be considered through the City
Commission's annual budget process, pursuant to Section 5.02 of the City Charter, or
through applications for grants funded by the Miami Beach Visitor and Convention
Authority or the City's Cultural Arts Council.
(b) Except for Sponsorships approved pursuant to Section 12 -7(a) of this article, any other
request for City Sponsorship of an Event shall require (i) an advisory recommendation of
the Finance and Citywide Projects Committee; and (ii) approval, by a five - sevenths (5 /7th)
vote, of the City Commission.
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(c)- In considering- approval of a Sponsorship for an Event, the City Commission may consider
(i) whether the Event organizer has exercised good -faith diligent efforts to apply for grant
funding that may be available from the City's Visitor and Convention Authority or Cultural
Arts Council; (ii) the Event organizer's history and performance in delivering quality
Events; (iii) any benefits being directly provided to the general public with respect to the
Event, such as free or discounted tickets to persons residing in the City of Miami Beach,
seniors, veterans, or members of disadvantaged groups; (iv) whether the Event is
accessible to the general public (either as a ticketed Event or otherwise); (v) the
demonstrable economic impacts associated with the Event; (vi) the demonstrable media
commitments secured by the Event organizer for the Event; or (vii) the efforts undertaken
by the Event organizer to mitigate any quality of life impacts associated with the Event,
including noise, littering, traffic, or parking impacts associated with an Event.
Sec. 12 -8. Sponsorship Requests by Advisory Boards or Advisory Committees.
Requests by a City advisory board or advisory committee for Sponsorship of an Event shall only
be considered through the annual budget process pursuant to Section 5.02 of the City Charter.
Except for requests for funding approved as part of the City's annual budget process, any other
advisory board or advisory committee request for Sponsorship of an Event shall require (i) an
advisory recommendation of the Finance and Citywide Protects Committee, and (ii) approval by
a five - sevenths (5 /7th) vote of the City Commission.
Sec. 12 -9. Sponsorship Terms and Conditions.
(1) In no event shall any Sponsorship Contract provide for a waiver of City Costs.
(2) All Sponsorship Contracts shall, at a minimum, include the following provisions:
a. That the Event organizer shall provide a final report to the City, which report shall
include third -party verification of Event outcomes including, without limitation, Event
attendance figures, media impressions generated by the Event, and number of City of
Miami Beach room nights generated by the Event.
b. That no more than fifteen percent (15 %) of any City cash sponsorship contribution
may be made in advance of the Event, with all remaining cash contributions to be
made on a reimbursement basis, following the conclusion of the Event and submission
of the final report referenced in subsection (d)(2)(a) herein;
c. That the Event organizer shall comply with all governmental requirements and laws
applicable to the conduct of its business and the production of the Event;
d. That the City shall have the right to audit the Event organizer's compliance with the
Sponsorship Contract and performance thereunder, in accordance with generally
accepted accounting principles; and
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e. That the City shall receive sponsorship recognition, on all media or promotional -
platforms related to the Event, at the same sponsorship level as other sponsors
providing financial or other support comparable to the City's Sponsorship.
Sec. 12 -10. Applicability. The requirements of this Article shall not apply to any of the
following:
(a) any Sponsorship Contract with a governmental entity;
(b) film incentives;
(c) any City- produced or City- organized programs, events, or activities; or
(d) any executed Sponsorship Contracts which existed prior to October 1, 2018, provided,
however, that unless such Events are exempt pursuant to Section 12 -10(a) through (c) above,
the requirements of this Article shall apply to such Events upon the expiration of the Sponsorship
Contract which existed prior to October 1, 2018 (including any renewal periods thereof).
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 3. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 4. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is
hereby ordained that the provisions of this ordinance shall become and be made part of the Miami
Beach City Code. The sections of this ordinance may be renumbered or relettered to accomplish
such intention, and the word "ordinance" may be changed to "section," "article," or other
appropriate word.
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SECTION 5- EFFECTIVE DATE.-
This Ordinance shall take effect on the / day of a/4er, 2018.
PASSED AND ADOPTED this /1/ day of F hrei4r/ , 2018.
ATTEST:
R'ael E. Gr. nado, Cit Clerk
Underline denotes additions
Strikethrough denotes deletions
Dan Geler, Mayor
INCORP ORATED
(Sponsored by Commissioner Arriol
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APPROVED AS 10
FORM & LANGUAGE
& FOR EXECUTION
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City Attorney P 1 Date
AAAM
BEACH
Ordinances - R5 D
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: February 14, 2018
10:15 a.m. Second Reading Public Hearing
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 12 OF THE CODE OF THE CITY
OF MIAMI BEACH, ENTITLED "ARTS, CULTURE AND ENTERTAINMENT," BY
CREATING ARTICLE III, ENTITLED "CITY SPONSORSHIP OF EVENTS," BY
CREATING SECTION 12 -6, ENTITLED "DEFINITIONS;" BY CREATING SECTION
12 -7, ENTITLED "REQUIREMENTS FOR CITY SPONSORSHIP OF EVENTS," TO
ESTABLISH CRITERIA AND REQUIREMENTS FOR APPROVAL OF CITY
SPONSORSHIP FOR CERTAIN EVENTS; BY CREATING SECTION 12 -8,
ENTITLED "SPONSORSHIP REQUESTS BY ADVISORY BOARDS OR ADVISORY
COMMITTEES," TO ESTABLISH REQUIREMENTS FOR APPROVAL OF
SPONSORSHIP REQUESTS FROM ADVISORY BOARDS OR ADVISORY
COMMITTEES; BY CREATING SECTION 12 -9, ENTITLED "SPONSORSHIP
TERMS AND CONDITIONS," TO PROVIDE CERTAIN MINIMUM TERMS AND
CONDITIONS FOR SPONSORSHIP CONTRACTS; AND BY CREATING SECTION
12 -10, ENTITLED "APPLICABILITY," TO PROVIDE EXEMPTIONS; PROVIDING
FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.
RECOMMENDATION
Administration recommends the adoption of the Ordinance.
ANALYSIS
This Ordinance was heard at the January 17, 2018 Commission meeting, where the following
amendments were suggested and have been incorporated to the attached and revised Ordinance:
a. clarify that the ordinance does not apply to sponsorships that are approved as part of the City's
regular budget process;
b. revise the approval threshold for sponsorships approved pursuant to this ordinance, so as to
only require a 5/7 vote;
c. eliminate the 5/7 vote requirement for amendment or repealer of the ordinance; and
d. provide that sponsorships existing prior to October 1, 2018 are exempt from the ordinance
(changed from April 1, 2018).
Over the past several months, the Mayor and Commission have been asked to consider funding to
support special events -- in some instances funding has been requested to fill a fundraising gap, to
help offset City service costs, to support local non- profit organizations, and often to help launch
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first time events on Miami Beach. As these requests have been considered, Administration was
asked to review and propose criteria for this type of special event sponsorship. At the June 7, 2017
Commission - Meeting,, Commissioner- Steinberg- - specifically asked staff to look at the issue
holistically and to come up with funding protocols. At the October 17, 2017 meeting of the Finance
and Citywide Projects Committee, the Committee voted unanimously to return to the full
Commission with an ordinance whereby all funding requests would flow through the two peer -
appointed and fully audited bodies, as detailed herein.
BACKGROUND:
The City of Miami Beach currently has two formal and fully audited funding entities -- the Miami
Beach Visitor and Convention Authority (VCA) which funds activity supporting tourism in the City,
and which is an audited grant administered by a Board of Directors; and the Cultural Arts Council
(CAC) grant which is focused on supporting not- for - profit arts and culture groups and which is also
an audited grant administered by the Cultural Arts Council members.
These two entities are designed to support promote tourism and media exposure, and to enhance
the arts and cultural landscape in the City of Miami Beach.
Following the October meeting of the Finance and Citywide Projects Committee, the VCA has
worked collaboratively with the Administration to conceptualize and implement a new funding
stream which is designed to support first -time and emerging events which may fall below the
criteria needed for the regular VCA grant structure. This new grant program, Development
Opportunities, has been approved by the VCA Board of Directors, and is now actively available for
applicants to pursue, offering another avenue for smaller, local, and first -time event producers to
secure seed and launch funding.
HISTORY:
VCA
The VCA was created under Chapter 67 -930, Section 8 of the Florida Statues, including 102 -254
of the Code of the City of Miami Beach. The VCA is appointed by the City Commission to
administer a portion of the collections of the municipal resort tax determined by a legislated funding
formula in order to promote tourism and convention center business. 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.
The adopted VCA budget for FY 2017/18 is $2.908 million, of which $1,700,500 is allocated to the
Tourism Advancement Program (TAP)that promotes 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 City of Miami
Beach and strengthen the City's brand.
In fiscal year 2016/2017, the VCA funded the TAP in eight categories:
1. Major One Time Special Event
2. North Beach Incentives
3. Special Events Recurring
4. Special Projects
5. Special Projects Recurring
6. Tourism Partnerships
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The VCA criteria for grant funding includes:
1 -. Contracted room nights-in -Miami Beach hotels
2. Media impressions secured /contracted
3. A contractedbroadcast TV or film feature documenting the event in Miami Beach
The VCA Board will evaluate applicants based on these criteria, and then determine funding. VCA
grants are awarded on a reimbursement basis, following a final report documenting all criteria have
been met and satisfied; the event has been fully executed as described in the application; and all
criteria have been met.
Applicants must meet two out of the three substantial criteria in order to qualify. Most grants range
from $10,000- 90,000.
CAC
The CAC is established by City Code which states that the CAC 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. In furtherance of this purpose, the councilshall attempt to accomplish the
following objectives:
(1) Develop and prepare a master plan for the arts. The master plan shall be based upon a
survey of available resources and shall assess and prioritize the needs of the various arts
organizations within the city.
(2) Develop and establish criteria and guidelines for review and funding of qualified not -for-
profit arts organizations, as such shall be approved by the mayor and city commission.
(3) Stimulate greater governmental and public awareness and appreciation of the importance
of the arts to the residents of and visitors to the city.
(4) Encourage and implement greater and more efficient use of governmental and private
resources for the development and support of the arts.
(5) Encourage and implement opportunities for city residents to participate in artistic activities.
(6) Promote the development of city artists and institutions and community organizations
sponsoring arts activities and audiences.
(7) Survey and assess the needs of the arts, and of the people of this city relating thereto,
and make such information promptly and regularly available to all interested agencies and
persons upon request.
(8) Support and implement the preservation and growth of the city's artistic resources.
(9) Foster the development of a receptive climate for the arts to culturally enrich and benefit
the citizens of the city in their daily lives, to make city visits and vacations all the more
appealing to the world and to attract to the city residency additional outstanding creators in
the field of the arts through appropriate programs of publicity, education, coordination and
sponsor activities such as the presentation of lectures and exhibitions and central compilation
and dissemination of information on the progress of the arts in the city.
(10) Encourage and coordinate the artistic activities of other governmental agencies,
including those concerned with the public educational system.
(11) Provide city cultural organizations with information and assistance.
(12) Coordinate with and assess the roles of other organizations, institutions and agencies,
public and private, which provide similar functions and serve a similar purpose."
Eligibility for a CAC grant includes the following:
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1. Non - profit status; 990 submission; Organizational Operating Budget; Board of Directors
2. Organizations must be in compliance with all previous grants from the City
Once -an organization- meets - these basic requirements, the CAC then evaluates each applicant and
makes a determination based on artistic merit. CAC grants are awarded in two installments: upon
execution of a contract, and upon submission and approval of a final report.
CAC grants are also designed to be a 1:1 match, so that organizations must fundraise
independently to match City funds. Most grants range from $10,000 - 35,000.
The CAC adopted budget for FY 2017/18 is $1,359,000, of which includes Cultural Arts
grantawards totaling $850,000.
Further, the City also has a Community Benefit Fund which represents a portion of ticket sales
from The Fillmore, and which is currently used to fund rent waivers for culturalevents at both The
Filimore and The Colony Theatre. Arts and cultural organizations must meet non - profit status
requirements in order to apply. These grants are also approved and awarded by the CAC.
PROPOSED ORDINANCE
Due to the potential for an overwhelming amount of City funding requests for special events and
the many associated concerns regarding the thorough and careful auditing of production
budgets, fundraising, contracts, experience and track record, accountability and transparency,
the Administration is recommending that all City funding flow through Commission appointed
bodies with full auditing procedures, criteria, and reporting involved.
Based on meetings with the VCA and CAC regarding best practices for transparent and audited
grant funding, the Finance and Citywide Projects Committee recommended the following new
guidelines and criteria be adopted for all funding of special events as detailed in the attached
Ordinance and summarized below.
1. All special event funding requests must flow through either the VCA (tourism and media
related events) or the CAC (arts and culture events) via the grant making process. In the event
that a special event is both culture and tourism related, the applicant would choose which
funding entity to pursue.
2. Per Section 12 -7 of the Ordinance, the City would only consider direct funding outside of the
VCA and CAC processes:
• if an event met the Priority 1 booking status (1,500 room nights on peak and more than
4,000 room nights in total) representing a citywide impact event, and received a 5/7
approval vote by the Commission; or
• if a funding request was directly referred with a favorable advisory recommendation by the
Finance and Citywide Projects Committee and then received a 6/7 approval vote by the
Commission based on consideration of the following factors:
• Event organizer has exercised good faith efforts to apply for a VCA or CAC grant
• Event organizer has a proven track record of producing events of similar scope and
magnitude
• Public benefit will be provided to the community (free tickets, etc.)
• Accessibility of the event
• Media commitments secured
• Mitigation efforts to ensure local quality of life is not disrupted
As per the attached Ordinance, Section 12 -9,in the event the Commission approved a City
Sponsorship event by either the required 5/7 or 6/7 commission approval vote, as applicable,
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Section 12 -9 provides that City Sponsorship Terms moving forward would include:
1. In no event would City sponsorships provide for a waiver of City Costs (i.e. direct costs
-- incurred for- Police,- Fire,Sanitation, Parking Transportation - etc. -) as -these costs would have to -
be budgeted and a funding source determined.
2. Sponsorship agreements would provide, at a minimum:
• Event producer must provide a final report to the City, including third -party verification of
outcomes, attendance, media coverage, etc.
• No more than 15% of the cash sponsorship should be made in advance of the event, with
all remaining funds distributed after the conclusion of the event and upon submission of the
final report.
• Event producer will comply with all governmental requirements.
• City shall have the right to audit.
• City shall receive sponsorship recognition on all associated event collateral and marketing
materials.
Excluded from the requirements of this Ordinance, per Sectionl2 -10, are a sponsorship
agreement with a government entity; film incentives; any City - produced events; and any
executed sponsorship agreements prior to April 1, 2018.
Pursuant to Section 12 -11 of the Ordinance, any amendment to this Ordinance shall require the
affirmative vote of 5 /7ths of the City Commission.
CONCLUSION
Based on meetings with the VCA and CAC regarding best practices for transparent and audited
grant funding, the Finance and Citywide Projects Committee recommended the following new
guidelines and criteria be adopted in an ordinance for all funding of special events . The
proposed ordinance is attached.
Legislative Tracking
Tourism, Culture and Economic Development
Sponsor
Vice -Mayor John Elizabeth Aleman and Commissioner Ricky Arriola
ATTACHMENTS:
Description
a Ordinance
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