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2002-25010 Reso RESOLUTION NO. 2002-25010 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 (VCA) FISCAL YEAR 2002/2003 BUDGET IN THE AMOUNT OF $ 921,600. WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) 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 VCA'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 VCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships; and WHEREAS, the VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as ones of the world's greatest communities and tourist destinations; and WHEREAS, pursuant to its enabling legislation, the VCA's budget for each fiscal year shall be approved by the Mayor and Commission; and WHEREAS, accordingly, the VCA recommends approval of the proposed budget for Fiscal Year 2002/2003 in the amount of $ 921,600, 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 Fiscal Year 2002/2003 budget, in the amount of$ 921,600. ~rf~ CITY CLERK September ,2002. PASSED AND ADOPTED THIS ATTEST: APPROVED AS 10 FORM & LANGUAGE a FOR EXECUTION -4ft.~ ?;Jj ~dv l.i:l~~__>r.:___,-:-_" CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m - Condensed Title: A resolution of the Mayor and City Commission of the City of Miami Beach approving the Miami Beach Visitor & Convention Authority's (VCA) FY 2002/2003 budget in the amount of $921,600.. Issue: To approve the Miami Beach VCA's FY 2002/2003 budget in the amount of $921,600 Item Summary/Recommendation: I Approve the budget. Advisory Board Recommendation: I N/A Financial Information: Amount to be expended: D Finance Dept. Source of Funds: AGENDA ITEM DATE f?7G- 9-:l?-o2- CITY OF MIAMI BEACH m 1700 Convention Center Drive, Miami Beach, FL 33139 http:\\ci.miami-beach.fI.us SUBJECT: Mayor David Dermer and DATE: September 26,2002 Members of the City Commission Jorge M. Gonzalez 'J ~ City Manager (1~ - 0 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 (VCA) FY 2002/2003 BUDGET IN THE AMOUNT OF $ 921,600Cl TO: FROM: ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The Miami Beach Visitor and Convention Authority (VCA) was created and exists pursuant to Chapter 67-930 of the Laws of Florida and Sections 102-246 through, and including 102-254 ofthe Code of the City of Miami Beach. The VCA 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 VCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships. The VCA 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. FY 200112002 ReviewlTourism Advancement Proaram The VCA Tourism Advancement Program helps promote Miami Beach as a sophisticated tourist destination through the allocation of grant funds to events or programs of work that enhance tourist attractiveness. In fiscal year 2001/2002, the program allocated funds in one of six categories, including: Tourism Partnerships, Special Events Recurring, Major One Time Event, Cultural Tourism, Development Opportunities and Festival Season. The Tourism Advancement Program (TAP) awarded $487,700 in fiscal year 2001/2002, compared to $720,220 in fiscal year 2000/2001. The reduction of award in the TAP reflected the anticipated 20% budget deficit by the City, as well as an additional 10% by the VCA, and focus on funding turnkey initiatives. The TAP funds helped maintain worthwhile tourism incentives such as the 2002 Billboard Latin Music Awards, The Miami Beach Sports & Fitness Festival, and supported new events on Miami Beach, such as the South Beach Wine & Food Festival. V:lSHAREDIFY 02-03IBUDGET COMMISSION MEMORANDUM September 25, 2002 Commission Memorandum VCA Budget FY 200212003 Page 2 Residential Services CampaionNCA Action Committee The Residential Committee of the Mayor's Blue Ribbon Task Force on Tourism identified a resident-focused marketing/PR campaign that emphasized tourism's benefits to our community including the need to celebrate our community's diversity and re-instill the importance of hospitality towards our visitors, and towards one another. The VCA recognized the importance of this campaign and took the lead in organizational efforts. Think Penny, a local Miami Beach advertising and design firm volunteered the campaign, donated their creative services for this effort and continue, pro bono, to oversee production, budgets, and to attend meetings on this campaign. The theme is MB: "Miami Beach: My Beach, Yours, Mine and Ours." The bilingual campaign will use initials MB to relay what is special about the Miami Beach community. Examples are My Boardwalk, My Bodega, and My Ballet. There is a list of more then 100 other options that can be used. The campaign will begin in the fall of 2002 and continue for 18 months. It will include an advertising initiative, and a service & attitude training component that meets the objectives of the Service and Attitude Committee of the Blue Ribbon Task Force. The training component meets the objectives to create a warm and friendly city where residents, tourist and merchants can patronize and conduct business. Developing a Service and Attitude Training Video, Print manual and PSA will attain this. The first phase for the campaign will start in the 200112002 fiscal year. It will include vivid and colorful images on available spaces, such as the side of buildings and will also be implemented on a smaller scale with marketing collateral on light poles, and bus shelters. These images will be used to 'decorate' city property. A media launch will take place the first week in October in order to avoid the September memorials supported by GMCVB. Though many of the services are free, there are costs for the production of the marketing collateral. Funding for production will come from a partnership of the VCA and the GMCVB. Additional future partners will also be identified to help provide financial and creative resources. The campaign has enjoyed wide-scale commitment from the City of Miami Beach (CMB), VCA, GMCVB, video partner ACT Productions and Think Penny. Steve Haas and his employees at the Tuscan Stake House have committed to becoming a roving troupe to introduce the video through live performance whenever possible. The Sun Post & Welcome Magazine will run print ads gratis and Charter Communications will air the PSA, gratis. The Greater Miami & the Beaches Hotel Association has offered assistance with distribution of the training manual and assistance with video presentations. The various Miami Beach Chambers of Commerce will provide distribution assistance. V:/SHAREDIFY 02-03/BUDGET COMMISSION MEMORANDUM September 26, 2002 Commission Memorandum VCA Budget FY 2002/2003 Page 3 The PSA will be hosted by a high-profile celebrity spokesperson. The spot will be 60 seconds, but have the capability to be cut to 30 seconds. The PSA will serve double purpose of being adaptable for businesses and residents. The campaign's goal is to re- instill community pride, and strengthen message of welcome. What Makes You Happy The VCA, the CMB, the GMVCB created an aggressive collaborative marketing campaign in the wake of the tragic events in September. Turkel and Schwartz was retained by the GMCVB to develop and create a logo and tagline and collateral piece to brand the low season. The piece was advertised nationally in all Knight Ridder publications. Knight Ridder currently has 28 publications and over 50 affiliate newspapers. Administration and Overhead The VCA's administrative and overhead costs are budgeted at $129,000 for the fiscal year 2002/2003. The $129,000 administration and overhead allocation reflects an approximately 9% increase from fiscal year 2001/2002. The 9% increase is attributed to the rising cost of insurance coverage and a standard cost of living increase. This figure is also inclusive of the office space and equipment, and a fully staffed VCA administrative office. 2002/2003 Tourism Advancement Proaram The VCA has budgeted $394,850 for fiscal year 2002/2003 for its Tourism Advancement Program. This grant funding reflects an approximately 25% decrease or a total of $149,712 from fiscal year 2001/2002. The decrease in funds is reflective of the decrease in the projected resort tax allocation. The monies will be awarded in our Tourism Advancement Program in six categories, including: Tourism Partnerships, Special Events (Recurring), Special Events (New or One-Time), Development Opportunities, Cultural Tourism and Festival Season. The grant application was again reviewed and revised in 200212003. New questions about the economic impact of the program, such as the various aspects of the tourism directed marketing plans, and how the numbers of hotel room nights were calculated were enumerated. The final report and contract were also updated. The final report now includes quantitative and qualitative measures of event success. The contracts were revised to be more readable; initials are required after every clause to ensure that it is read and understood by the applicant. In addition, the application now requires written confirmation of hotel room blocks, and letters of media confirmation as application attachments. V:fSHAREDIFY 02-03/BUDGET COMMISSION MEMORANDUM September 26, 2002 Commission Memorandum VCA Budget FY 2002/2003 Page 4 The VCA website was updated for the 2002/2003 fiscal year. The TAP applications and guidelines can now be accessed in several formats, including Microsoft Word and PDF at www.miamibeachvca.com. Destination Marketino The destination marketing allocation reflects a 33% decrease or $50,000 from fiscal year 2000/2001. This allocation includes the VCA portion of production_costs for the Miami Beach Civic Pride Campaign. This resident-focused marketing/PR campaign emphasizes tourism's benefits to our community, including the need to celebrate our community's diversity and re-instill the importance of hospitality towards our visitors. Research and DeveloDment In fiscal year 2002/2003 the VCA will undertake several new research and development projects, including the promotion of the city's shopping districts. The VCA is also focusing attention on facilitating the creation of summer-long events in Miami Beach. Much of these efforts will be focused on seeding the Miami Beach calendar of events in the months of May through September, during the "Festival Season." SDecial Proiects The VCA expects to support new initiatives in FY 2002/2003 at the request of partners and community and resort leaders. Strategic plans, goals and initiatives will be developed after consulting with all partners and as the result of on-going communications. Some of these initiatives include the implementation of summer long events on Miami Beach, including - but not limited to - supporting a food and wine festival and a Miami Beach based film festival. The VCA is also taking a leadership role in 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. Proiected Cash Flow Reserve The VCA has budgeted $30,000 in the cash flow reserve in fiscal year 2002/2003. The $30,000 cash flow reserve reflects a 67% decrease from fiscal year 2001/2002. The City of Miami Beach allots resort tax payments to the VCA a month after its collection. Therefore the VCA has built in a $30,000 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. Conclusion It is recommended that the Mayor and Commission should adopt the 200212003 budget in the amount of $921,600, as set forth in Exhibit A. V:/SHAREDIFY 02-03/BUDGET COMMISSION MEMORANDUM Miami Beach Visitor and Convention Authority Proposed Budget FY 2002/2003 TOTAL REVENUES: Projected 2% Resort Tax Collecflons per Finance Department: $921,600 EXPENDITURES Adopted Proposed Budget Budget FY2001/2002 FY2OO2I2003 VCA Administration i. Director (salary + frlnge/25%) (approx. $60k + $12k) $ 123,000.00 $ 129.000,00 Ii. Administrative Assistant (approx. $30k + $7,5k fringe) Iii. Office Expenses (approx, $17.5k) Tourism Advancement Grants Program Yearlong Grant Categories I. Tourism Partnerships $ 48.073.00 $ 55.000,00 v. Cultural Tourism Joint FundlnQ Program $ 55.000.00 $ 47.750.00 (with the Miami Beach Arts Council) ..vl. Festival Season Marketing $ 100.000.00 $ 100,000.00 Quarterly-based Grant Categories II. Special Events (recurring) $ 232.400.00 $ 146,000.00 III. Major Event (New or One-nme)... $ 185.000,00 $ 150.000,00 lv, Development Opportunities $ 125.000,00 $ 98.850.00 New Investment Categories/Strategic Initiatives I, Destination Marketing $ 150.000,00 $ 100.000.00 II. Tourism Related Research & Development Projects $ 52,600,00 $ 30,000,00 iiI. Special Projects $ $ 35.000.00 Projected Cash Flow Reserve $ 50.000.00 $ 30.000.00 PROJECTED RESORT TAX ALLOCATION $ 1,121,073.00 $ 921,600.00