Loading...
Resolution 2020-31247 RESOLUTION NO. 2020-31247 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA ACCEPTING THE RECOMMENDATIONS OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS APRIL 17, 2020 AND APRIL 24, 2020 MEETINGS, AND APPROVING THE USE OF CULTURAL ARTS COUNCIL ("CAC") FUND BALANCE AND CAC ENDOWMENT FUNDS (WHICH INCLUDE A COMBINED FUND BALANCE OF $4,048,873), FOR THE PURPOSE OF (1) COVERING THE FY2020 RESORT TAX CONTRIBUTION OF $1,473,000 TO THE CAC, TO THEREBY PERMIT AVAILABLE RESORT TAX FUNDS TO BE REALLOCATED FOR OTHER RESORT TAX PURPOSES; AND (2) ESTABLISHING A "CULTURAL ARTS EMERGENCY FUND", IN THE AMOUNT OF $1,000,000, TO PROVIDE FINANCIAL ASSISTANCE TO MIAMI BEACH-BASED CULTURAL ORGANIZATIONS EXPERIENCING REVENUE LOSSES DUE TO THE COVID-19 CRISIS; FURTHER, AUTHORIZING THE ADMINISTRATION AND THE CAC TO DEVELOP THE CRITERIA AND PROCEDURES FOR THE CULTURAL ARTS EMERGENCY FUND GRANT PROGRAM, AND TO REVIEW GRANT APPLICATIONS AND MAKE ADVISORY RECOMMENDATIONS TO THE CITY COMMISSION, WITH THE FINAL GRANT AWARDS SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION. WHEREAS, the Miami Beach Cultural Arts Grant Program, created in 1998, is an essential component of the mission of the Miami Beach Cultural Arts Council and is charged to develop, coordinate, and promote arts and culture in Miami Beach community; and WHEREAS, in 2001, the City sets aside 1% of the Resort Tax for a Cultural Arts Reserve Fund and the Quality of Life Fund; and WHEREAS, currently, the 1°A) Resort Tax set aside is distributed as follows: 10% to CAC, 30% to Quality of Life, and 60% to Transportation/Trolley operation; and WHEREAS, the Resort Tax funding to cultural arts grants and programs is divided into two restricted funds: the Cultural Arts Council Fund Balance and the Cultural Arts Council Endowment, both managed by the Cultural Arts Council ("CAC"), which reviews and makes recommendation for the City Commission's approval; and WHEREAS, on September 10, 2014, the Mayor and City Commission, based on the recommendation of the CAC, adopted Resolution No. 2014-28732, which established a Cultural Arts Council Fund Balance ("Fund Balance") in the amount of $2,467,000, which is capped and provides for an annual increase for inflation; and WHEREAS, the purpose of the Fund Balance is to set aside funds that will ensure the cultural affairs program operation and grants continue for a period of two (2) years, in the event of an emergency, unforeseen difficulties, trouble, or need; and WHEREAS, all funds remaining in the Fund Balance at the end of each fiscal year are rolled over to the following fiscal year; and WHEREAS, the Cultural Arts Council Endowment ("Endowment") was recommended by the CAC and created by the City Commission in 1998 in an attempt to make cultural arts programming and operation self-sufficient by using the fund; and WHEREAS, the Endowment is capped at $1,581,873, and is to be used for the purpose of enhancing Miami Beach art institutions, collections and operations; and WHEREAS, due to the novel COVID-19 pandemic, Miami Beach arts organizations are facing unprecedented revenue losses; and WHEREAS, to date, Miami Beach based cultural organizations are collectively reporting over$3,700,000 in lost revenue, reflective of the first few weeks after closures; and WHEREAS, during its April 24, 2020 meeting, the Finance and Economic Resiliency Committee ("FERC") recommended that in order to support the cultural arts programs, the City should utilize the Fund Balance and Endowment, for a combined balance of$4,048,873, for the purpose of covering the FY2020 Resort Tax Contribution of$1,473,000 to the Cultural Arts Council, thereby permitting available Resort Tax funds to be reallocated for other Resort Tax purposes: and WHEREAS, FERC also recommended for the City to establish a "Cultural Arts Emergency Fund" in the amount of $1,000,000, to provide financial assistance to Miami Beach based cultural organizations experiencing revenue losses due to the COVID-19 crisis; and WHEREAS, FERC further recommended for the City and the Cultural Arts Council to develop the criteria and procedures for the Cultural Arts Emergency Fund Grant Program in order to review grant applications and make advisory recommendation to the City Commission, with the final grant awards subject to prior approval of the City Commission. 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 hereby accept the recommendation of the Finance and Economic Resiliency Committee, at its April 17, 2020 and April 24, 2020 meetings, and approve the use of Cultural Arts Council ("CAC") Fund Balance and CAC Endowment Funds (which include a combined fund balance of $4,048,873), for the purpose of (1) covering the FY2020 Resort Tax Contribution of $1,473,000 to the CAC, to thereby permit available Resort Tax Funds to be reallocated for other Resort Tax purposes; and (2) establishing a "Cultural Arts Emergency Fund", in the amount of $1,000,000, to provide financial assistance to Miami Beach-based cultural organizations experiencing revenue losses due to the COVID-19 crisis; further, authorize the Administration and the Cultural Arts Council to develop the criteria and procedures for the Cultural Arts Emergency Fund Grant Program, and to review grant applications and make advisory recommendations to the City Commission, with the final grant awards subject to prior approval of the Mayor and Commission. PASSED and ADOPTED this / day of "174/ , 2020. Dan Gelber, Mayor ATTEST: 5-/V t Rafa E. Granado, Cit Clerk \11„11111 'i!CORP ORATED APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attomey Date Resolutions - R7 B MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: May 1, 2020 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS APRIL 17, 2020 AND APRIL 24, 2020 MEETINGS, AND APPROVING THE USE OF CULTURAL ARTS COUNCIL ("CAC") FUND BALANCE AND CAC ENDOWMENT FUNDS (WHICH INCLUDE A COMBINED FUND BALANCE OF $4,048,873), FOR THE PURPOSE OF (1) COVERING THE FY 2020 RESORT TAX CONTRIBUTION OF $1,473,000 TO THE CAC, TO THEREBY PERMIT AVAILABLE RESORT TAX FUNDS TO BE REALLOCATED FOR OTHER RESORT TAX PURPOSES;AND (2) ESTABLISHING A"CULTURAL ARTS EMERGENCY FUND", IN THE AMOUNT OF $1,000,000, TO PROVIDE FINANCIAL ASSISTANCE TO MIAMI BEACH-BASED CULTURAL ORGANIZATIONS EXPERIENCING REVENUE LOSSES DUE TO THE COVID-19 CRISIS; FURTHER, AUTHORIZING THE ADMINISTRATION AND THE CAC TO DEVELOP THE CRITERIA AND PROCEDURES FOR THE CULTURAL ARTS EMERGENCY FUND GRANT PROGRAM, AND TO REVIEW GRANT APPLICATIONS AND MAKE ADVISORY RECOMMENDATIONS TO THE CITY COMMISSION, WITH THE FINAL GRANT AWARDS SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION. RECOMMENDATION The Administration supports the creation of a Miami Beach COVID-19 relief fund for cultural organizations by leveraging established funding available in the Cultural Arts Council Fund Balance, in a one-time amount of $1 million in FY 2020. The utilization of the Fund Balance would maintain the strong cultural foundation and reputation the City has developed, over the decade, by attracting quality art and culture programming, cultivating educated, experienced and talented artistic and cultural thought leadership, and demonstrating to the great community the importance of art on the Miami Beach community, culture, history and spirit. This is the true purpose and mission of the CAC Reserve Fund, to support and sustain the meaningful and committed efforts of the City and our cultural institutions to continue to embed, develop and democratize arts and build bridges between generations and cultures. BACKGROUND/HISTORY Page 14 of 43 The Miami Beach Cultural Arts Grant Program ("Grant Program"), originally created in 1998 as an essential component of the mission of the Miami Beach Cultural Arts Council, is charged to develop, coordinate, and promote the arts and culture in the City of Miami Beach community. Since the Grant Program inception, the Mayor, Commission and Cultural Arts Council ("CAC") have awarded approximately $18 million in cultural arts grants, supporting thousands of performances, exhibits, and other cultural activities in Miami Beach. The Grant Program is managed by Tourism and Culture Department. In 2001, the City set aside 1% of the Resort Tax for a cultural arts reserve fund and those funds support only cultural affairs grants and programs and the Quality of Life Fund for North Beach, Mid-Beach and South Beach programming. Currently the 1% Resort Tax set aside is distributed as follows: 10% to CAC, 30%to Quality of Life and 60%to Transportation/Trolley operation. The funding to cultural arts grants and programs is divided into two (2) restricted funds, that are managed by appointed members of the Cultural Arts Council, which reviews and makes recommendations for Commission approval. The two (2) funds, essential to the operations, quality and growth of Miami Beach cultural arts programming are as follows: Cultural Arts Council Fund Balance In 2014, the Cultural Arts Council recommended, to the City Commission, to create a Cultural Arts Council Fund Balance ("Fund Balance") in the amount of $2,467,000, that is capped (providing for an annual increase for inflation). This recommendation was approved on September 10, 2014 by Resolution No. 2015-29045. The original City Commission (Resolution No. 2014-28732) referencing the fund balance, contained a scriber error in the fund amount referenced and was replaced by Resolution No. 2015-29045. The purpose of the Fund Balance is to set aside rainy day funds that will ensure the Cultural Affairs program operation and grants continue for a period of two (2) years, in the event of an emergency, unforeseen difficulty, trouble or need. All funds remaining, at the end of each fiscal year, are rolled over to the following fiscal year. Cultural Arts Council Endowment The Cultural Arts Council Endowment ("Endowment") was established by the CAC in an optimistic attempt to become self-sufficient by using fund. The Endowment is capped at $1,581,873, and is to be saved, spent, invested and distributed for the purpose of enhancing Miami Beach's art institutions, collections and operations. Currently, $800,000 of the Endowment is allocated to the renovation of the Rotunda in Collins Park. The Rotunda construction isn't time sensitive and could be postponed, by City Commission, and revisited. CAC, at its February 6, 2020 meeting, expressed it would be prudent to retain a rainy-day balance, of no less than $500,000, for emergencies and unforeseeable situations, circumstances and opportunities. ANALYSIS For fiscal year 2020, all grant agreements have been executed totaling $850,000 in grants. First payments (50%) have been distributed and $425,000 for second payments remain. In addition to the grants, the Cultural Arts Council Fund includes $254,000 for administration and operational costs, $127,00 for Arts for Learning,Arts in the Park and grant submission software, and $300,000 for temporary art installations. The total budget is $1,531,000 and the 1% Resort Tax Quality of Life contribution is $1,473,000. Page 15 of 43 Due to the COVI D-19 pandemic, Miami Beach arts organizations are facing unprecedented revenue losses. To date, Miami Beach based cultural organizations are collectively reporting over$3.7M in lost revenue, reflective of the first few weeks after closures. Depending on social distancing guidelines and community perceptions, it may be more than a year or more before Miami Beach institutions are able to operate at full capacity, if they survive at all. Venues such as the Colony Theatre, managed by Miami New Drama, receive 40% of their annual revenue from ticket sales. The management of Miami New Drama has estimated approximately $615,000 in lost revenue should the theatre remain closed through June 2020. To date, Miami New Drama is reporting $280,000 in lost revenue. Staff is working with each organization to track revenue losses. An overview of Miami Beach based cultural organizations reporting lost revenue may be found in Attachment 1. The Administration suggests that should a Miami Beach Cultural COVI D Relief Fund ("Relief Fund") be created, the budget should be $1 million to reflect a realistic amount that can truly support the recovery of our beloved non-profit cultural community. The Relief Fund would provide meaningful emergency grants that would mitigate and alleviate the financial and programmatic hardships created by the current COVI D-19 pandemic. Funds would support administration, operations, programming, marketing, facility rentals, and contract employees. A suggested criteria would include selecting applications from: • Current grantees of the City of Miami Beach Cultural Arts Council (FY 2020). (This will ensure all applicants have complied with grant requirements, including 501(c)3 verification and meet eligibility requirements of Cultural Arts Council grant process); • Grantees with proof of 1:1 match for requested amount; • Grantees operating and located within the City of Miami Beach; • Relief Funds need will be determined by the following: +evaluating demonstrated negative immediate revenue and operational impacts; +new or expanded needs the organization and its constituents are facing as a result of the COVI D-19 pandemic (creation of digital platforms, technologies, etc.); +evaluating how funding will be leveraged to provide positive long-term recovery results and benefits; +evaluating grantee short-term and long-term recovery plan, including how grantee is mitigating any impact COVI D-19, strong board participation, and efforts to find alternative funding sources; and +grantee must demonstrate strong operational, fiscal and programmatic measures, plans and processes; and • Selection of recipients and funding level will be reviewed and recommended by the CAC to the City Commission. With respect to the Cultural Arts Council Endowment, the renovation of the Rotunda in Collins Park($800,000), could be postponed and revisited by the City Commission at a later date. The combined fund balances for the Cultural Arts Council total $4,048,873. As part of the FY Page 16 of 43 2020 budget balancing plan presented to the Finance & Economic Resiliency Committee on April 17, 2020, Administration recommended funding the FY 2020 budget allocation of $1,473,000 from the*CAC fund balance instead of the 1% Resort Tax for Quality of Life to free that allocation up for other purposes such as supporting the trolley system or other resort tax purposes. This amount could potentially be less depending on how much the CAC actually spends during the fiscal year. The creation of a $1 million Miami Beach COVI D-19 relief fund for cultural organizations would further reduce the combined fund balance. The total impact from these items would reduce the fund balance from $4,048,873 to $1,575,873 as shown in the table below. During the April 24, 2020 Finance and Economic Resiliency Committee ("FERC") meeting, the utilization of the Balance Fund and Endowment to FY2020 and creation of a Cultural Emergency Fund was recommended. FINANCIAL INFORMATION Item Amount CAC Fund Balance $2,467,000 CAC Endowment $1,581,873 FY 2020 CAC 1% Resort Tax for Quality of ($1,473,000) Life COV IID-19 Relief Fund for Cultural ($1,000,000) Organizations Total $1,575,873 CONCLUSION The Administration supports FERC recommendation to create a Miami Beach COVI D-19 relief fund for cultural organizations by leveraging established funding available in the Cultural Arts Council Fund Balance, in a one-time amount of$1 million in FY 2020. The utilization of the Fund Balance would maintain the strong cultural foundation and reputation the City has developed, over the decade, by attracting quality art and culture programming, cultivating educated, experienced and talented artistic and cultural thought leadership, and demonstrating to the great community the importance of art on the Miami Beach community, culture, history and spirit. This is the true purpose and mission of the CAC Reserve Fund, to support and sustain the meaningful and committed efforts of the City and our cultural institutions to continue to embed, develop and democratize arts and build bridges between generations and cultures. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? No No Strategic Connection Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality Page 17 of 43 entertainment destination. Legislative Tracking Tourism and Culture Sponsor Sponsored by Commissioner Richardson ATTACHMENTS: Description ❑ FY 19 20 CAC Grant Summary D Resolution Page 18 of 43 • Cultural Arts Council Grant Contracts FY 19/20 Final Reports for Pending Payments are due 10/16/2020 Miami Beach Cultural Anchors FY 19/20 Total (To Date)Reported Revenue loss FY 19/20 Pending Funding Due to COVID-ANCHORS ONLY Florida International University-Miami Beach Urban Studios $23,496 $ 11,748.00 $ - Florida International University-Wolfsonian $28,028 $ 14,014.00 $ - Florida International University-Jewish Museum of Florida $23,232 $ 11,61.6.00 $ - Friends of the Bass Museum,Inc. $28,028 $ 14,014.00 $ 124,557.00 Friends of the Miami-Dade Public Library,Inc. $8,325 $ 4,162.50 $ - Miami Beach Film Society(Miami Beach Cinematheque) $19,360 $ 9,680.00 $ 4,000.00 Miami Beach Garden Conservancy $20,240 $ 10,120.00 $ 201,641.00 Miami City Ballet $23,496 $ 11,748.00 $ 2,608,435.00 Miami Design Preservation League $23,496 $ 11,748.00 $ 92,000.00 Miami New Drama $24,024 $ 12,012.00 $ 280,000.00 New World Symphony $29,568 $ 14,784.00 $ 499,140.00 O'Cinema(Living Arts Trust) $18,920 $ 9,460.00 Oolite $27,104 $ 13,552.00 The Holocaust Memorial Committee,Inc. $23,760 $ 11,880.00 The Rhythm Foundation,Inc. $24,288 $ 12,144,00 $ 66,500.00 SUBTOTAL $345,366 $ 172,682.50 $ 3,876,273.00 Miami Beach Cultural Presenters FY 19/20 Total FY 19/20 Pending Funding Payments FILM Center for the Advancement of Jewish Education(CAIS) $19,505 5 9,752.50 Inffinito Art&Cultural Foundation,Inc. (Brazilian Film Festival) $18,260 $ 9,130.00 Italian Film Festival(Cinema Italy) $17,638 $ 8,819.00__ Miami Gay and Lesbian Film Festival,Inc. $19,090 $ 9,545.00 SUBTOTAL $74,493 $ 37,246.50 MULTI-DISCIPLINARY FUNDARTE,Inc. $18,468 $ 9,234 00 Miami Light Project $14,608 $ 7,304.00 National Foundation for the Advancement in the Arts,Inc.(Young Arts) $19,298 $ 9,649.00 University of Wynwood,Inc.(O,Miami) $19,298 5 9,649.00 SUBTOTAL $71,672 $ 35,836.00 THEATER Fantasy Theater Factory 517,373 $ 8,686.50 Juggerknot Theater Company $17,430 $ 8,715.00 SUBTOTAL $34,803 $ 17,401.50 VISUAL ARTS Bas Fisher Invitational,Inc. - _ $17,015 $ 8,507.50 Edge Zones $14,276 S 7,138.00 South Florida Composer Alliance $17,223 $ 8,611.50 SUBTOTAL $48,514 $ 24,257.00 !OPERA Florida Opera Prima,Inc. $10,832 $ 5,416.00 The Opera Atelier $10,085 5 5,042,50 I SUBTOTAL $20,917 $ 10,458.50 Ballet Flamenco La Rosa,Inc. 517,845 $ 8,922.50 Cuban Classical Ballet of Miami Corp. $14,110 $ 7,055.00 Miami Hispanic Ballet Corp. $14,442 $ 7,221.00 Peter London Global Dance Company,Inc. $14,442 $ 7,221.00 Siempre Flamenco,Inc. $10,583 $ 5,291.50 The Dance NOW!Ensemble,Inc. $19,090 $ 9,545.00 SUBTOTAL "512 $ 46,256.00 MUSIC 4- Community Community Arts and Culture,Inc. $17,638 $ 8,819.00 Global Arts Project $18,260 $ 9,130.00 Miami Children's Chorus,Inc. . $9,027 $ 4,513.50 Miami Music Festival $18,883 $ 9,441.50 Nu Deco Ensemble,Inc. $19,505 $ 9,752.50 Orchestra Miami $10,583 $ 5,291.50 Patrons of Exceptional Artists,Inc. $18,883 $ 9,441.50 Power Access,Inc. $17,845 $ 8,922.50 Seraphic Fire $15,438 $ 7,719.00 South Beach Chamber Ensemble,Inc. 512,700 $ 6,350.00 SUBTOTAL $158,162 5 79,381.00 SUBTOTAL $499,673 $ 249,836.50 TOTAL I $845,038 $ 422,519.00 Page 19 of 43