Loading...
94-21408 RESO Incomplete RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE MAYOR AND ADMINISTRATION TO PAY ARTHUR ANDERSON &: CO., SC FOR SERVICES RENDERED IN CONNECTION WITH THE CONVENTION CENTER HOTEL PROJECTS. WHEREAS, Arthur Andersen &: Co., SC ( "Arthur Andersen" ) performed various services for the City of Miami Beach in connection with the Convention Center Hotel projects, pursuant to a contract between Arthur Andersen and the City; and WHEREAS, the contract with provision for the performance of itemized services; and Arthur Andersen additional work contains a beyond the WHEREAS, the City Commission requested additional work from Arthur Andersen in connection with the hotel projects; and WHEREAS, such additional work consisted of, among other things, preparing a financial evaluation of the qualified proposers, preparing a joint report on the short-listed proposers and attendance and participation at the short-listed proposers' presentations; and WHEREAS, Arthur additional work, plus amount includes a 25% Andersen expenses, discount; has billed in the amount and the City for such of $90,548.00, which WHEREAS, as a result of the efforts of Commissioner Eisenberg in negotiating with Arthur Andersen for a fee reduction, that balance to the City has now been reduced to $70,548.00; and WHEREAS, additional services in an amount not to exceed $20,000.00 are expected to be requested from Arthur Andersen in the future in connection with the hotel negotiations; and WHEREAS, this $20,000.00 in expected future work added to the balance due for prior work equals a total balance of $90,548.00. WHEREAS, the Greater Miami Convention and Visitors Bureau ("GMCVB"), under a reimbursable agreement of up to $150,000 per year, has a credit remaining of $28,341.50, which will pay for a portion of the monies owed to Arthur Andersen, leaving a net balance to the City/Agency in the amount of $62,206.00; and WHEREAS, the City/Agency will receive that credit from GMCVB after the City/Agency pays the monies to Arthur Andersen. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and the City Administration hereby are authorized to pay Arthur Andersen the sum of $90,548.00 as provided above. PASSED and ADOPTED THIS day of , 1994. MAYOR ATTEST: CITY CLERK FORM APPROVID 1Apl~ By Tt...3) DIIe_I\- I'\-'i'\ Total paYJllents made on Arthur Andersen coutraet to dllte: Date Billed Amount 8/93 2/94 5/94 $ 26,200.00 $ 40,862.50 $ 82,937.50 $ 30.491.50 $113,429.00 $ 91,167.00 8/94 Total: $271.658.50 Pllid Bv Explanation GMCVB Initial invoice Step I services GMCYB RFP production &. printing. Paid directly to Grafilto, Inc. GMCYB Redev Agency. Total Balance Step I scrvices Redev Agency. Initial invoice Step 2 services Actual Amount Received by Arthur Andersen: $230,796.00 Nnte: (.) To be reimbursed by GMCYR as 01' 1Il/1/94 Total fees currentlv and anticipated outstandine Amount Status $ 70,548.00 $ 20,000.00 $ 50,000.00 $ 25.000.00 $165,548.00 EXDlanntion Billed 9/13/94, pending Preparation of joint financial report with Bear Steams, not within original scope of contract. Not billed yet Additional authorized services Not billed yet Upon execution of Loews contract Not billed yet Upon execUlion of HCF contract Total Estimated Fees Outstanding $271.658.50 $165.548.00 $437,206.50 Billed Outstanding Total Anticipated payments on Arthur Andersen Contract: GMCVR Reimbursement Schedule Total Available (FY 93/94 + 94/95): Less: 8/93 Invoice paid 2/94 Invoice paid 5/94 Invoice paid 5/94 Due Redev Agency 8/94 Due Redev Agency Total: 5300.000.00 $ 26,200.00 $ 40,862.50 $ 82,93750 $ 30,49 I.50 $ 91.167.00 $271,658.50 $ 28,341.50 (Relllaiuing Credit as of 11/1/94) Estimated Remaining Fees to Arthur Andersen: Less Remaining Credit from GMCYR Total Estimated Out-of.Pncket Expenses to City: $165,548.00 28.341.00 $137,206.50 SUMMARY OF ARTHUR ANDERSEN INVOICES AND PAYMENTS Contract fee stMldure as anuroved bv Citv Commission on 7/31/94: Step 1. $50,000 Development and marketing of RFP Step 2. $10,000 Per proposal received meeting RFP criteria Step 3. $50,000 Signed contract for first hotel $25,000 Signed contract for each additional hotel Note: Contract specified that expenses (travel, telephone, per diems, etc.) were to be billed separately. Contract also specified that production, printing and distribution of RFP's to be done in-house by the City. Greater Miami Convention and Visitors Bur.au tGMCVB) Contract $150,000 $150.000 $300,000 Available FY 93/')4 Available FY <)-1/'):; Total assistance for paymenl or Arthur Andersen Contract Actual fees billed bv Arthur Andersen to date: Services $50,000.00 $50,000.00 Services $ 80,000.00 $ 6,700.00 $ 70,548.00* $ 20.000.00* $177,248.00 Exuenses $ 23,946.00 $ 65,683.00 $ 40.862.50 $130,491.50 Exnenses $ 4,467.00 $ 4,467.00 Services Note: (*) Outstanding amount EXDenses $ 75,000.00 $ 75,000.00 $302,248.00 $134,958.50 Total $ 73,946.00 $ 65,683.00 $ 40.862.50 $180,491.50 Total $ X4.467.00 $ 6,700.00 $ 70.:;48.00* $ 20.000.00* $181,715.00 Total $ 75.000.00 $ 75.000.00 $437,206.50 Exnlanation Step I services Additional scope of preparing RFP document plus retainer of (;ralitlo, Inc., for production and prin1ing of RFP, subcontracted by Arthur Andcrsen upon approval by City Manager. Not within original scope of contract. Production and printing of RFP, billed by directly by Grafitto, Inc. Sub-Total - Step 1 Services Exnlanation Step 2 services - 8 proposals @ $10,000 per proposal Rc-evaluation of proposals requested by the City Preparation of joint financial report with Bear Stearns, not within l lriginal scope of cnntracl. Additional aulhorizcd scrviccs as required Sub-Total. Step 2 Services Exnlanation Anticipated Step 3. Services, based on signed contracts for the Loews and the HCF projects Sub-Tutul . Anticipated Step 3. Services Total Anticipated Fees CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. ffiS- 9 V FROM: Mayor Seymour Gelber and Members of the City Commission Roger M. Carlt n,.. f). , ..... City Manager ~ DATE: November 16. 1994 TO: SUBJECT: AUTHORIZATION TO PAY ARTHUR ANDERSEN FOR ALREADY RECEIVED SERVICES RELATED TO THE HOTEL DEVELOPER SELECTION PROCESS IN THE AMOUNT OF $70,548 AND TO AUTHORIZE ADDITIONAL WORK UP TO $20,000 FOR SERVICES AS NECESSARY DURING THE CONVENTION HOTEL NEGOTIATIONS PROCESS. ADMINISTRATION RECOMMENDATION It is recommended that the City Commission and the Redevelopment Agency Board authorize payment to Arthur Andersen for services rendered during the hotel developer selection process as required in the existing contract for Arthur Andersen and authorize additional work up to $20,000 for services as necessary during the convention hotel negotiations process. BACKGROUND The City of Miami Beach engaged Arthur Andersen in the hotel developer selection process. In their contract for services, there was a provision for additional work. During the final deliberations in the hotel developer selection process, the City Commission requested additional work to assist them in evaluating the three finalists for the City-owned hotel site and the African-American proposal. The consultants performed an in-depth analysis of the finalists and delivered their findings in the form of a detailed report entitled Comnarative Review of "Short Listed" Pronosals submitted to the City of Miami Beach on July 14, 1994. This report was of substantial assistance in the final selection process. The consultants sent an initial invoice for the work, a copy of which is attached as reference. The bill for these additional services amounted to $120,730 which was reduced by 25% to $90,548 upon review by the City Manager. 62 1 AGENDA ITEM R ~ I ~ A DATE-1'-I!.t,-Qt/ Subsequently, commissioner Eisenberg met with Arthur Andersen and discussed the fees requested. As a result of this meeting, Arthur Andersen has agreed to lower the invoice amount by $20,000 for a total of $70,548. A copy of an agreement letter prepared by Arthur Andersen reflecting the change in fees will be submitted as an addendum to the Commission agenda packet. Additionally, it has been determined that additional services may be needed of Arthur Andersen for the negotiations phase. It is anticipated that these will not exceed $20,000. Retroactive authorization is requested for the $70,548 in services as well as authorization for the additional services. ANALYSIS A summary of Arthur Andersen's invoices and payments is attached. The additional services provided under this contract which are the subject of this Commission Memorandum included: . Preparation of financial evaluation of qualified proposers. . Coordination and review of analysis with Bear Stearns and the City Attorney's Office. . Preparation of joint report on short-listed proposers, per City'S request. . Attendance and participation at short-listed proposers presentations, at City'S request. Funding for Arthur Andersen is provided under a reimbursable agreement for up to $150,000 per year over a two year period with the Greater Miami Convention and Visitors Bureau. In addition to the amounts already paid and the requested payment of services, there is a remaining amount to be paid to Arthur Andersen - $50,000 for approval of the Loews' contract by the City Commission and $25,000 for approval of the HCF/Sheraton Suites contract by the City Commission. t':- 63 2 '. CONCLUSION The City Commission and Redevelopment Agency Board should authorize payment to Arthur Andersen in the amount of $70,548 and authorize additional work up to $20,000 for services as necessary during the convention hotel negotiatiosn process. The Administration wishes to thank Commissioner Eisenberg for his effort to negotiate reduced fees with Arthur Andersen and previously with Bear Stearns. RMC:jph Attachments .'- 64 3