HomeMy WebLinkAbout99-23255 RESO
RESOLUTION NO.
99-23255
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
APPROVING AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A FIRST AMENDMENT TO THE
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE
CITY OF MIAMI BEACH AND ECONOMIC RESEARCH
ASSOCIATES (ERA), DATED NOVEMBER 4,1998; SAID
AMENDMENT, IN AN AMOUNT NOT TO EXCEED $25,000,
FOR THE PURPOSE OF APPROVING ADDITIONAL TASKS
FOR THE REVIEW OF AN ADDITIONAL ALTERNATIVE,
REVISION OF A FINANCIAL ANALYSIS, AND REPORT, IN
CONNECTION WITH THE IMPROVEMENT OF THE
CITY'S MUNICIPAL GOLF COURSES.
WHEREAS, pursuant to Resolution No. 98-22988, on November 4, 1998, the Mayor and
City Commission approved a Professional Services Agreement with Economic Research Associates
(ERA) to provide for a feasibility consultant in connection with the improvement ofthe City's three
municipal golf courses (the Agreement); and
WHEREAS, the Agreement with ERA did not contemplate the review of additional
alternatives; and
WHEREAS, ERA has completed its analysis and review and has delivered a comprehensive
report to the City; and
WHEREAS, the purpose of the attached Amendment is to approve additional tasks for the
review of an additional alternative; the revision of the financial analysis and report; attendance at a
City Commission meeting to make a presentation on the proposed project; and to perform a legal
review to include the projects in a bond offering document.
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 herein approve the attached First Amendment to the Professional Services Agreement
with Economic Research Associates to provide for additional services of the feasibility consultant
in connection with the improvement of the City's Municipal Golf Courses, in an amount not to
exceed $25,000.
PASSED and ADOPTED this
21st
day of
July
vj9990
MAYOR
ATT~} r~~
CITY CLERK
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
4JtJtL ~
COMMISSION MEMORANDUM NO. 55.3 - ~)4
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
TO:
Mayor Neisen O. Kasdin and DATE: July 21, 1999
Members of the City Commission
Sergio Rodriguez "/i~ _
City Manager ~
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FIRST
AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND ECONOMIC RESEARCH
ASSOCIATES (ERA) DATED NOVEMBER 4, 1998 IN THE AMOUNT NOT
TO EXCEED $25,000.
FROM:
SUBJECT:
ADMINISTRA TION RECOMMEND A TION:
Adopt the Resolution.
BACKGROUND:
On November 4, 1998 the Mayor and City Commission approved Resolution No. 98-22988
authorizing the Administration to enter into a professional services agreement with Economic
Research Associates (ERA) to act as a feasibility consultant in connection with the improvement of
the City's municipal golf courses for an amount not to exceed $25,000. The tasks in the agreement
include :
1. A comprehensive survey and evaluation of fees charged at golf courses and facilities
within southeast Florida comparable to the proposed fully renovated facilities ofthe City and
owned or operated either by governmental agencies or privately;
2. A recommended schedule of fees including ranges for each course, by season and for
all fee categories from those appropriate for a destination resort to those for year round
residents;
3. A comprehensive forecast of prospective operating and maintenance costs for each
of the facilities, including periodic maintenance and acquisition of capital equipment; and
4. Development of alternative financing/operating strategies.
AGENDAITEM~
DATE~
95
ANALYSIS:
The consultant has presented a comprehensive report to the City outlining the financial feasibility
of the City's approved alternative and an alternative recommended by ERA that would provide
revenue sufficient to cover the operating, maintenance and debt service costs of the three courses.
The Administration has carefully reviewed the results of the study and has requested that the
consultant perform some or all of the additional services as outlined in the attached proposal. The
cost ofthese services is included by proposed task and the City would only be charged for the tasks
that the City specifically authorizes. The total ofthe proposed tasks, should all be authorized by the
City,would not exceed $25,000.
CONCI,USION:
The City Commission should adopt the Resolution approving the first amendment to the
professional services agreement with Economic Research Associates ERA in an amount not to
exceed $25,000.
~
S~/OdP
2
96
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Ecot'lomic$ Il:esearch Associates
July 12, 1999
Ms. Trish Walker, Finance Director
. City of Miami Beach
City Hall
1700 Convention Center Drive. Third Floor
Miami Beach, Florida 33139
Phone: 305-673-7000
ERA No. 13220
Dear Trish,
Pursuant to your request. Economics Research Associates (ERA) has prepared the
following proposal to complete additional services for the City of Miami Beach relating
to the City's proposed renovation and redesigning of Bayshore, Bayshore Par 3, and
Normandy Shores golf courses. Specifically. based on the City's requests, ERA
proposes to complete the following additional services:
Task 1: Attendance in Meetings in Miami Beach on July 1sU' and 16th
Jon Peterson and David Leininger will travel to Miami Beach on July 14th to attend the
meetings scheduled for the 15th and 16th. Jon Peterson will arrive before dark in order to
briefly inspect Doral and possibly Crandon Park before these meetings. Both gentlemen
will also tour Bayshore with City officials on the morning of the 15th, paying particular
attention to the stash site. before attending other scheduled meetings. ERA's
professional costs and expenses for preparing for and attending these meetings are
summarized as follows:
David Leininm
16 hours at $220 per hour - $3.520.
Expenses (air, hotel, transportation, food, etc.) - $1,000.
Jon Peterson
24 hours at $135 per hour -- $3,240.
Expenses (air. hotel, transportation, food, etc.) - $1.000.
los A"9Cl." S..n Fr~""cisco S." Diego Ch;calflo UV.:tC.hin9'ton DC London
388 M:ork€t Street Suite'li60 San F'ranC::i!;co, CA 9411'
415.9513.g152 FAX 415.956.5274 WWW.9(:onre!l r.om
"itA h. "frili"ted \lvi_*- Dr;v~I'S Jon.;ll:;
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Thus, total expenses associated with preparing for and attending these meetings are
estimated at this time at about $8,800. Please note that we will limit our professional
expenses and reimbursable expenses wherever possible.
Task 2: Revision of Financial Analysis and Final Report
Following completion of the meetings on the 15th and 16th, ERA, Arthur Hills &
Associates, and the City will work together to determine the best market positioning and
facility characteristics for each of the three City golf courses. The goal of this exercise
will be to identify the best development plan and market positioning (i.e., strongest
financial potential, greatest appeal to visitors and residents, etc.) reasonably available
within existing political and physical constraints. ERA will then revise ERA) s original
financial analysis and final report to fully reflect the selected marlcet positioning and
facility characteristics for each golf course. ERA estimates total professional fees and
expenses for this analysis.and completing these revisions at $6,000.
Task 3: Attendance at Final Presentation
If desired, Mr. Peterson could return to Miami Beach for a one-day fmal presentation
meeting to the City. In this meetin& Mr. Peterson would review all key
recommendations, assumptions, and projections, and answer any questions that may
arise regarding ERA's final report and the proposed improvements and repositionings of
the City's golf courses. Total professional fees and expenses for this final presentation
are estimated as follows:
Jon Peterson
16 hours at $135 per hour - $2,160.
Expenses (air, hotel, transportation, food, etc.) -- $1,000.
Estimated expenses assume discounted airfare is available. (Note: if desired, this final
meeting could be completed at significantly less cost through a conference call.]
Task 4: Legal Review for Inclusion in a Bond Offering Document
If ERA ' s marlcet and financial feasibility study is used as part of a bond offering or if
the study is referenced in a bond offering, it will be necessary for ERA's legal counsel
JUL-12-88 15,08 FROM,ERA SF
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to review the docmnent If this is the case~ additional fees will be charged on a time-
and-expense hasis. Moreover, additional work completed by ERA (associated with
review of the P.O.S. and the O.S., and revisions resulting from the legal review) will
be completed on a time-and-expense basis. ERA estimates total professional costs for
such a review associated with a bond offering at approximately $5~OOO to $7,000.
Total Expenses and Billing
Based on the figures listed above, ERA's total professional fees and expenses for the
four tasks listed above are estimated at about $23,000 to $257000. ERA will not
complete any of the above tasks before receiving verbal authorization from the City, and
ERA will bill the City only for time and expenses actually incurred. ERA will invoice
the City on a monthly basis.
Acceptance
To accept this proposal for additional ~rvices7 please sign below and fax this document
back to the San Francisco office of ERA.
Respectfully submitted,
~4J.~
Jon H. Peterson
Principal
Enclosures! Attachments: Proposal Addendum
Accepted By:
Date:
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PROPOSAL ADDENDUM
It is understood by the client that Economics Research Associates (ERA) can make no guarantees
concerning the recommendations that will result from the proposed assignment, since these
recommendations nmst be based upon facts discovered by ERA during the course of the study and
those conditions existing as of the date of the report To protect you and other clients, and to
ensure that the research results of ERA's worlc will continue to be accepted as objective and
impaniaI by the business coIIJD:1UDity. it is understood that our fee for the undertakmg of this
project is in no way dependent upon the specific conclusions reached or the naInre of the advice
given by us in our report to you.
It is agreed by the client that the report is not to be used in coqjunction with any public or private
offering of debt or equity securities without prior written eoosc:m.
It is further agxeed that the client will in~fY ERA against any losses, claims, damages and
liabilities under federal and state securities laws which may arise as a result of ~ts or
omissions in public or privare offerings of securities.
II: is agreed by the client tbat payment for the services of ERA is due upon receipt of the invoice;
that full payment is due upon receipt oftbe completed report; and that ERA has the right to
withhold delivery of the final n:port pending receipt of any overdue paylt1eIlts.
In the event any invoice is not paid within 30 days after ~ of the invoice it shall commence
bearing interest on the date the invoice was rendered at the rate of 18 pen:ent per aonum. (or such
lesser rate as JJJay be the ~imum interest pennis$lble tmdec applicable law) and the client agrees
to pay all accroed interest, togetbcr with the charges for services rendered as proVided for in this
agreement In addition. should an Ullpaid invoice be refeaed to our attomeys for collection,. the
client agrees to pay their reasonable fee for such wod; as well as any costs of suit which may be
incurred.
It is further agJeed by the client that the report will be presented to third parties in its entirety and
that no abstI3cting of the report wiD be made without first obtaining the permission of ERA.
It is understood by ERA that the findings of this report are the proprietary property of the client
and they will not be made available to any other orptn'7lltion or individual without the consent of
the client
This proposal will remain in force for a period of 60 days from The dare shown hereon.