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Home My WebLink AboutR-78-0747RESOLUTION NO. `, .w A RESOLUTION CREATING A NEW LINE.tTEM ACCOUNT IN THE GENERAL FUND, SPECIAL PROGRAMS AND ACCOUNTS ENTITLED, TRADE FAIR OF THE AMERICAS . IMPORT '78 AND TRANSFERRING THERETO AN AMOUNT OF $71,822 FROM THE CONTINGENT FUND; FOR THE PURPOSE OF MAt:ING A PAYMENT TO THE TRADE FAIR OF THE AMERICAS IMPORT'78 TRUST AND AGENCY FUND TO OFFSET THE DEFICIT INCURRED BY THE TRADE FAIR Or THE AMERICAS IMPORT'78 BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA Section 1. The transfer of $71,822 from the Contingent Fund to a new line -item account in Special Programs and Accounts entitled, Trade Fair of the Americas - Import'78 for the purpose of making a payment to the Trade Fair of the Americas Import'78 Trust and Agency Fund to offset the deficit incurred by the Trade Fair of the Americas - Import'78 is hereby authorized. PASSED AND ADOPTED this 14- day of ATTEST: G. NGIE, CITY CLERK BUDGETARY REVIEW HOWA�RD V. GARY IIRECTOR DEPARTMENT OF NAGEMENT AND BUDGET fprpmher 1978. Maurice A'. Ferre MAURICE A. FERRE MAYOR' "DOCUMENT INDEX ITEM NO. "SUPPORTIVE DOCUMENTS FOLLOW» APPROVED AS TO FORM AND CORRECTNESS: LEGAL REVIEW: 4 etot‘ OBERT F. CLARK, ASSISTANT CITY ATTORNEY CITY COMMISSION MEETING OF, DEC L41978 =woo Rol: 7 City Manager Howard V► Gary, di rector, Management and tudget • • seph R. Chassis December 1, 078 Pnoposed Pesofution foe the December 14 City mi ss i on meeting a Trade rain of the Americas Import '78 Please find attached a memorandum from Charles Crumpton, Assistant City Manager, informing you that the Trade Fair of the Americas - Import '78. received $1,015,674 in revenues and expended $1,087,496 in operational expenses resulting in a $71,822 deficit. The attached resolution proposes to offset this deficit by making a payment of $71,822 from the fiscal year 1978-79 Special Programs and Accounts, Contingent Fund to the Trade Fair of the Americas - Import '78 Trust and Agency Fund. It is necessary to create a new line -item in Special Programs and Accounts entitled Trade Fair of the Americas- Import '78 to identify the payment of the aforementioned sum to the Trust and Agency Fund. ab t✓itt tit P.iiAf0i. $L+ohI A INtt,P402W ide f tMONA I UM P8i d iseph Aa• ctassie dity - 40agef 'PP bkii Charles L . Cruh'ipton Assistant City Manager bMt Stit'JLtt• October 6, 1978 Trade Fait of the Ameticas Itpott ' 78 Fihal keport fri•thtIt Ls: tNCLoSUhtt: The. Trade Fair of the Americas Import '78 closed its doors to what has been expressed as a resounding success, The Coordinator's1ieport (attached and made'a part hereof) gives a good statistical accounting of the results of the Fair and its 57 million in sales. The services of Mr. Gustavo E. Casado, CPA, were utilized to exatiiine the financial position of the Fair and his report is attached and made a part hereof, With the exception of the balance of the funds ($2,000) due from the Economic Development Administration (E.D.A.) and an $80 catalog ad fee, all monies have now been received. The F.b.A. has responded to the draft of its required report and has authorized the final report to be prepared It is doubtful that the ad fee will be collected. The expenditures of $1`,058,834:presumes the accomplishment of the recovery of $21,000 of Fair assets from other City sources. This has not yet taken place and until such time, it is more realistic to charge the amount to the Fair. Also, only $7,662 in interest was expended of a $30,960 possibility, which also is allocated to expenses. The sum of these three items brings the total expense of the Fair to $1,087,496 or less than 1.8% in excess of the $1,069,000 amount indicated in the budget. The revenue side of the picture was not up to expectations and therefore below that indicated in the:budget. The original budget approved in April, 1977, for $1,069-,000retrained: intact as regards the total amount, however,' the detailed distribution of funds within the budget changed as the needs changed. A number of -activities occurred which were not forseen at the time of the budget preparation and thus affected both expenses andrevenues, the more pertinent ones are as follows: The cancellation: of participation in 'the Fair by Peru, due to that country's -:financial situation, caused loss of programmed revenue and necessitated an additional cost to the Fair to fill the space previously reserved by Peru. Nicaragua, because of domestic complications, cancelled.- its space, creating a loss of revenue and a cost to the Fair to develop the void left by their action. ;l ►=.: : rJ:V: t t"r, . L. r AT ,°/ 7 ,,.. brdtit reduted its spaCe,pteviously resettled With the consetuehces.- resulting` iti do eXpehd tune by the fair and a concotitaht loss Of, reVehLie. The Fair had designed for a V, 1 . p. Lounge with a sponsor to defray the cost of constructioh The sponsor withdrew its support, thus the Pair expended Monies which Was hot anticipated. 8ecutity expenses exceeded those initially budgeted because of not only the F'irst Lady's visit, but also due to tequirethcnts of the site owners, insurance coVerage had to be increased to accoMmodate the site Owners' requests, thus the costs to the Fair were more than double that budgeted. Additional labor costs at the Fair site were incurred due to union requests to employ labor in the construction of facilities, mounting and dismantling of exhibits, and .freight handling in lieM of the freight forwarder. The Fair had to absorb or share, where possible, these costs. Hosting costs at the Vizcaya reception exceeded those estimated as the First Lady's presence created additional requests for participation as well as maximum attendance of those with invitations. Revenues from general ticket sales were much lower than expected and considerably less than budgeted. The participating countries, and the buyers strongly requested that the public not be admitted. Bach meet- ing with the export directors and representative buyers reinforced their desire for a completely commercial Fair, thus no public. Because of public funds, eminating from various sources, being a part of the Fair's revenues, the Fair sponsors believed that the general public must be allowed to attend. As a compromise, a reduced number of days as well as hours in each day ensued. This also resulted in the necessity to conduct a "low-key" ticket sales program. Other sources of revenuesas well as increasing the revenues from known sources were explored. The cost to the countries of their space was committed, thus the most natural source of revenue was not an option for increasing income. Additional revenue was generated from new sources such as reception services, sale of catalogs, communication center services as well as income from sale of photographs. Needless to say, these other incomes did not totally compensate for the loss dueto lack of ticket sales. The total revenues, adjusted by the above outlined circumstances, amounted to $1,015,674. Thus, the Fair cost the City i$71,022 over its original commitment.