Item Coversheet

New Business and Commission Requests - R9  J




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:October  18, 2017
 



SUBJECT:DISCUSSION OF AN AMENDMENT TO THE AIR & SEA SHOW AGREEMENT WHICH WOULD ALLOW THE EVENT PRODUCER TO EXPAND THE SHOW TO RUN FROM 10:00 A.M. - 9:30 P.M., INCLUDING TWO MAJOR TELEVISED CONCERT PERFORMANCES AND A FIREWORKS DISPLAY ON BOTH SATURDAY AND SUNDAY EVENINGS; AND TO DISCUSS A POTENTIAL INCREASE IN CITY RESOURCES TO SUPPORT THE LARGER PRODUCTION.

RECOMMENDATION

The Administration is seeking direction from the Commission.

ANALYSIS

On February 1, 2016, the City of Miami Beach (“City”) entered into an Agreement (Exhibit A) with A National Salute to Heroes, LLC (“Producer”), a for-profit company, to produce the first ever Miami Beach Air and Sea Show, which took place on the park, beachfront and offshore areas of Ocean Drive and Lummus Park in the City on Saturday, May 27, 2017 and Sunday, May 28, 2017.  Per Section 20 of the Agreement, the term is for a period of five years, beginning with the 2017 Air and Sea Show, with the City Commission provided an opportunity under Section 20(a) of the Agreement to consider discontinuing the Agreement only after the conclusion of the first Air and Sea Show.  At the July 24, 2017 meeting of the City Commission, the Commission voted to continue with the existing Agreement and Producer, under the requirement the 2018 Air and Sea Show maintain the same event area and schedule as was executed in 2017. 

 

The Producer of the Air and Sea Show believes the continued success of the Show relies on expansion of the event footprint beyond the 2017 execution, and inclusion of an evening concert portion and fireworks display, all to be televised nationally on Memorial Day. The Producer has provided the attached deck to detail the following proposed changes to the Air and Sea Show, scheduled to take place May 26 and 27, 2018, from 10:00 am to 9:30 pm. 

 

·       The beachfront event footprint would expand to the originally conceived area, stretching from 10 Street to 14 Place.  In 2017, this area was reduced to a footprint from 13 Street to 14 Place.

·       The expansion would allow for a larger ticketed area and concert stage, with top headliners to perform from 6:00 pm to 9:00 pm each night, followed by a fireworks display until the show formally concludes at 9:30 pm.  The 2017 Show concluded at 4:00 pm, without a concert performance or fireworks.

·       The 8:00am to 12:00 pm powerboat and jetski demonstrations in the ocean next to the event area would not begin until 10:00 am. 

·       The Lummus Park area from 10 Street to 14 Street would remain an event activation area, as in the 2017 event, but convert into an interactive athletic venue, featuring an extreme sports exhibition, kids water zone and obstacle course.

·       The military display village, featuring all branches and sponsor tents and activations, would be relocated to the east side sidewalk of Ocean Drive, from 10 Street to 14 Street, within the existing Memorial Day closure of Ocean Drive.

·       The Show would be recorded and broadcast nationally in prime time on Memorial Day, Monday, May 28, 2018. In addition, the Show would continue and expand upon the media impressions derived from the 2017 Show, which the Producer’s research suggests had a net reach of 3,017,000, over one million social media impressions, fifteen affiliated South Florida radio stations, over 8,000 radio commercials and promotions, for a total overall estimated 50 million impressions.

·       The Show would work in tandem with veteran’s groups, including the Salute 365 Foundation, a 501(c)3 not-for-profit.

 

At the April 26, 2017 City Commission Meeting, the Commission voted to provide a sponsorship to offset the City resource costs for the 2017 Air and Sea Show.  The following are the costs from the involved Departments that were absorbed by the City associated both directly for the 2017 Air and Sea Show defined event area and indirectly for areas in proximity to event area that required resources above and beyond the annual Memorial Day Weekend staffing area.

 

                                                              Direct Event           Proximity

                          Agency                        area                       costs                      TOTAL

·       Police                          $62,000                 $70,000                 $134,000

·       Fire                             $69,720                  $0                          $69,720

·       Emergency Mngmt.     $10,200                  $0                          $10,200

·       Sanitation                    $0                          $4,500                    $4,500

·       Ocean Rescue            $2,500                    $25,000                  $27,500

         TOTAL                        $144,420                $99,500                  $245,920

 

The proposed expansion of the event footprint, timeframe and activities for 2018 will require added resource allocation to properly execute, as well as will require implementing counter surveillance techniques and teams that would aim to offset the type of threat experienced in the recent tragedy in Las Vegas. The initial estimated expenses from these Departments to execute the 2018 Air and Sea Show, with the proposed changed, is as follows:

 

                                                             Direct Event            Proximity

                          Agency                        area                       costs                      TOTAL

·       Police                          $95,000                 $125,000              $220,000

·       Fire                             $76,220                 $0                          $76,220

·       Emergency Mngmt.     $20,700                 $0                          $20,700

·       Sanitation                    $0                          $7,500                   $7,500

·       Ocean Rescue             $14,600                $7,600                   $22,200

         TOTAL                        $206,520                $140,100               $346,620

 

These direct event related expenses and expenses associated with the Special Event permit would require an approved City Commission sponsorship as they could not be waived for a for-profit company, pursuant to Resolution 2014-28515. While the Show is generally free and open to the public, any sponsorship agreement would seek to include public benefits similar to other sponsor agreements, such as potentially free tickets to the restricted area for City resident veterans. Should we move forward with this expanded footprint, the Administration recommends obtaining a commitment by way of a Resolution from Miami-Dade County to provide additional Police and Sanitation support for the event.

 

The City has included $350,000 for the 2018 Air and Sea show event in the proposed FY 2017/18 operating budget.  

CONCLUSION

The Administration is seeking direction from the Commission.

KEY INTENDED OUTCOMES SUPPORTED
Enhance Cultural and Recreational Activities

Legislative Tracking
Tourism, Culture, and Economic Development

ATTACHMENTS:
Description
Additional Information
Map
Supplemental Information