224-2000 LTC
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAMI BEACH
LEITER TO COMMISSION
L.T.C. No. :nJ.!-JOOO
TELEPH~) 673-7010
FAX: (305) 673-7782
OFFICE OF THE CITY MANAGER
October 17, 2000
TO: Mayor Neisen O. Kasdin and
Members of the City Commission
FROM:
Jorge M. Gonzalez
City Manager
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SUBJECT: Convention Center Telecommunications System
I am pleased to report that we are nearly 100% complete with the telecommunications retrofit
project at the Miami Beach Convention Center. We are currently awaiting final pennitting for
the core drilling required to run the cabling from the Center to the preferred parking lot, and
addressing small punch list items to reach final signoff.
We recently used the system for both switched telecommunications and data distribution
during the Ariba Live Miami 2000 event, which took place during the third week of
September. The system performed to expectations in both functions, and the client stated that
the Internet service received during the event was the fastest and most reliable that they had
encountered. We generated total gross revenues of $21,308 from telephone rentals and long
distance charges, and $89,032 in Internet services. Although we've not yet finalized month
end statements, assuming a conservative projection of net profits for the show of30%, a yield
of $33,102 would be realized by the City on this one show. I should also point out that the
revenue received from Intemet service provision is a completely new stream, which did not
previously exist. These numbers compare Ym favorably with the annual revenues as
itemized below received from National Data (NDCn, the previous vendor.
FY95-96 FY96-97 FY97-98 FY98-99 4 YR. AVG.
Telecomm Sales $739,144 $889,867 $777,438 $887,720 $823,542
NDCI Revenue 702,187 845,374 738,566 843,334 782,365
City Revenue 36,957 44,493 38,872 44,386 41,177
Percentage 5.00% 5.00% 5.00% 5.00% 5.00%
Override 17,530 10,011 31,546 68,686 31,944
Total City $ 54,487 $ 54,504 $ 70,418 $113,072 $ 73,121
Revenue
Blended 7.37% 6.13% 9.06% 12.74% 8.82%
Percentage
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As we have stated, we anticipate that, by doing telecommunications in-house, the City should
anticipate receiving approximately forty percent of total revenues after expenses. Therefore,
the above total net revenues to the City for the four years reflected above, $292,481, would
have increased to forty percent of $3,294,169, or $1,317,668. These calculations assume the
same gross sales for the period. For FY 2000-2001, we have projected total revenues of
$1,016,500, with associated estimated expenses of $584,942, showing an anticipated profit of
$431,558, or 42% of gross sales.
Should you require any further information, please contact me.
JMG/MDB/DWT/dwtN~. ~
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