2009-27145 ResoRESOLUTION NO. 2009-27145
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING
THE CITY MANAGER TO EXECUTE AN INTERLOCAL
AGREEMENT WITH MIAMI-DADE COUNTY FOR BUILDING
BETTER COMMUNITIES GENERAL OBLIGATION BOND
PROGRAM FUNDS, IN THE AMOUNT OF $55,000,000, FOR
THE MIAMI BEACH CONVENTION CENTER; SAID
INTERLOCAL AGREEMENT INCORPORATING THE CITY'S
PROPOSED REVISION NOS. 1 AND 2 (AS SET FORTH IN
THIS RESOLUTION); FURTHER APPROPRIATING THE
FUNDS AND AUTHORIZING THE EXECUTION OF ALL
OTHER NECESSARY DOCUMENTS RELATED TO THIS
AGREEMENT
WHEREAS, on November 2, 2004, the voters of Miami Dade County overwhelmingly
supported and approved a referendum supporting the Building Better Communities
(BBC) General Obligation Bond Program (GOB) to provide $2.9 billion to fund more than
300 capital improvements throughout the County over the next 15 to 20 years; and
WHEREAS, as part of the BBC GOB, the Miami-Dade County Board of County
Commissioners reviewed and approved allocations to municipalities throughout the
County, including the City of Miami Beach and, more specifically, the Miami Beach
Convention Center; and
WHEREAS, two documents guide the BBC GOB: the Administrative Rules, which
govern the implementation by Miami-Dade County of the program; and the Interlocal
Agreements, which are the executed grant agreements between Miami-Dade County
and the City, setting forth mutual obligations for each project; and
WHEREAS, built in 1957, the Miami Beach Convention Center (MBCC) originally
encompassed 108,000 square feet; in 1968, an additional 130,500 square feet of exhibit
space was added, with additional support facilities subsequently constructed in 1974;
and
WHEREAS, in 1986, MBCC underwent a $92 million renovation and doubled in size
to its current footprint; the MBCC opened in 1989 and, since that time, the facility has
received over $50 million in continuing upgrades; and
WHEREAS, in 2005, a stakeholder group was formed by the City Manager in order
to reach consensus with the tourism industry regarding needed improvements to the
MBCC; and
WHEREAS, in June 2008, the GMCVB contracted with Convention, Sports and
Leisure, Inc. (CSL) to conduct a study focused on, among other things, identifying
current industry trends, competitive/comparable facility analysis, existing and projected
utilization at the MBCC, and a market demand analysis; and
WHEREAS, at its May 13, 2009 meeting, the City Commission approved and
authorized the execution of a professional services agreement with Arquitectonica for
the design of a Miami Beach Convention Center Campus Master Plan; and
WHEREAS, on May 1, 2009, the City and the County met to discuss the remaining
issues prior to finalizing the approval and execution of the BBC GOB Interlocal
Agreement for MBCC; and
WHEREAS, subsequently, the County Administration agreed to forward to the
County's BBC GOB Citizen's Advisory Committee (CAC), its favorable recommendation
to incorporate two of the City's three outstanding revisions to the MBCC Interlocal
Agreement; specifically, the City's revisions to the language regarding milestones and
naming rights; and
WHEREAS, on June 25, 2009, the City's proposed revisions to the MBCC Interlocal
Agreement were presented to the BBC GOB CAC; and
WHEREAS, the CAC, one member short of a quorum, agreed by consensus of the
nine members present that the item should be forwarded for consideration by the Board
of County Commissioners (with a favorable recommendation to amend two current
standard agreement provisions, as the City requested); and
WHEREAS, the City's proposed revisions to the MBCC Interlocal Agreement are as
follows:
1) Section 2. Funding Responsibilities:
Responsibilities of the County: The County agrees to provide solely from BBC
GOB Program proceeds for the Funding Cycle Allocation in an amount equal to
$ This amount represents a portion of the amount necessary to complete
the Project. This sum shall be provided in accordance with the reimbursement
procedures contained in the County's GOB Administrative Rules attached as
Attachment 1. In the event that the Project Milestones, as defined and set forth in
Exhibit 1 of this Agreement are not within ~&°~ 25% of completion, the dollars to be
funded for subsequent Milestones may be delayed for one calendar yeas uarter
in accordance with the Administrative Rules, see Section 18 of this Agreement.
The Administration requested this revision because it was not reasonable to
expend funds on the project, and not be reimbursed by the County for up to a year,
if certain milestones are not within 10% of completion, based on original estimates,
especially on such a complex project.
City Proposed Revision No. 1 has been recommended by the County
Administration and CAC, for consideration by the Board of County
Commissioners.
2) Section 11. Naming Rights and Advertisements:
0
The County's loco/tombstone and other wordage
acknowledging the Building Better Communities Bond Program funding as a
contributor to the funding of the project will be placed by the Municipality in a
prominent locations) next to each of the City's logo and/or tombstone(s), but not
less than once, following project completion. The associated costs will be paid from
project funds provided by Building Better Communities Bond Program.
The City requested this revision in order to not put an excessive amount of signage
on the building, so the Administration revised the language to state that the City will
place the County's logo/ tombstone acknowledging the BBC GOB funds used to
expand and enhance the facility.
City's Proposed Revision No. 2 has been recommended by the County
Administration and CAC, for consideration by the board of County
Commissioners.
3) Section 17. Representation of the Municipality:
The Municipality represents that this Agreement has been duly authorized,
executed and delivered by Mayor and Commissioners, as the governing body of
the City of ,Florida and it has granted the City Manager, or his
designee, the required power and authority to execute this Agreement. The
Municipality agrees to a) maintain the Project for a minimum of 25 years, b)
agrees to govern itself, in regards to the subject Project, in accordance with
Article 6 of the County Charter, c) keep the Project open safely and properly
maintained for all Miami-Dade County residents, and d)
not discriminate when
g renting the facility admission fees based on where aresident/renter
resides in the County. The Municipality also agrees to accept and comply with
the Administrative Rules as stated in Attachment 1 and as may hereafter be
amended.
The City does not currently set the fees for MBCC events; fees are set by the
event producer who rents the MBCC (or portion thereof) from the City. Therefore,
the Administration's recommendation was to incorporate language that would
require the City to rent the facility to event producers without regard to where the
renter resides in the County, and not to dictate pricing structures/fees to the
event producers, especially if it makes MBCC less competitive due to this
restriction.
The County Administration and CAC denied this request based on the opinion
(supported by their County Attorney's Office) that the BBC GOB was a
Countywide referendum (and will be supported by residents Countywide) and, as
such, all residents should be offered the same admission fee to the facility.
City's Proposed Revision No. 3 will not be recommended by the County
Administration for consideration by the Board of County Commissioners;
and
WHEREAS, in an effort to proceed with the project, it is necessary to approve and
execute the Interlocal Agreement with the amendments currently agreed to (i.e. with
proposed City Revision Nos. 1 and 2); and
WHEREAS, in addition, a request by the City Administration to change the project
description from, "Renovate the Miami Beach Convention Center," to "Expand and
Enhance the Miami Beach Convention Center," was also approved; this language now
mirrors the language in the 2004 Convention Development Tax (CDT) Amendment that
provided for the inclusion of the Convention Center in the BBC GOB project list; and
WHEREAS, the MBCC Interlocal Agreement (incorporating City's Proposed Revision
Nos. 1 and 2) will be considered by the full Board of County Commissioners at its
meeting on July 21, 2009; and
WHEREAS, matching funds are not required from the City to support this funding.
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 hereby authorize the City Manager to execute an Interlocal
Agreement with Miami-Dade County for Building Better Communities General Obligation
Bond Program funds, in the amount of $55,000,000, for the Miami Beach Convention
Center; said Interlocal Agreement incorporating the City's Proposed Revision Nos. 1 and
2 (as set forth in this Resolution); and further appropriating the funds and authorizing the
execution of all other necessary documents related to this agreement
PASSED and ADOPTED this 15th day of July 2009
ATTEST:
MAYO
Matti Herrera Bower
CITY CLERK
Robert Parcher
JMG/KGB/JMH APPROVED AS TO
T:\AGENDA\2009\July 15\Consent\Grants Conv Center GOB Interlocal Reso.doc FORM & LANGUAGE
8~ FOR EXECUTION
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving an interlocal agreement between the City and Miami-Dade County for Building
Better Communities General Obligation Bond Project Number 233 -Miami Beach Convention Center, and
authorizing the City Manager or his designee to execute said agreement for funding in the amount of
$55,000,000; further appropriating the funds and authorizing the execution of all other necessary
documents related to this agreement.
;ey Intended Outcome Supported:
Ensure well designed capital projects.
Supporting Data - 2009 Survey:
24% of residents rated the availability of cultural activities as `too few', 69% of resident believe that the
tourism industry contributes 'about the right amount' to their quality of life.
Issue:
Shall the City approve the executing of the Convention Center interlocal agreement with Miami-Dade
', County for funding in the amount of $55 million from the Building Better Communities General Obligation
j Bond program.
item summary~rtecommenaation:
On November 2, 2004, the voters of Miami-Dade County overwhelmingly supported and approved a
referendum supporting the Building Better Communities General Obligation Bond program (GOB) to provide
$2.9 billion to fund more than 300 capital improvements throughout the County. Included in the GOB was an
allocation of $55 million for "enhancement and expansion" of the Convention Center.
Two documents guide the GOB program: the Administrative Rules and the Interlocal Agreements. The City
has worked with the County on certain language contained in both documents, and, much of the language
has been amended. However, there were three issues in the Interlocal Agreement that the City identified as
problematic: 1) the City cannot discriminate when charging facility admission fees based on where a resident
resides in the County; 2) in the event that any naming rights or advertisement space is offered on a facility
constructed or improved with GOB program funds, then Miami-Dade County's name, logo and slogan must
appear on the facility; and 3) If project milestones are not within 10% of completion, the dollars to be funded
for subsequent milestones may be delayed for one calendar year. The Administration has worked with the
County on this language, and, as a result, County Administration and the Building Better Communities
General Obligation Bond Citizen's Advisory Committee are forwarding, with a favorable recommendation,
the City's revisions to the naming rights and milestones sections of the Convention Center Interlocal
Agreement to the Miami Dade County Board of County Commissioners on July 21, 2009 for approval. No
agreement could be reached on modifying or waiving the "differential fee" section. This agreement provides
funding in the amount of $55 million to expand and enhance the Miami Beach Convention Center.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Project Name BBC GOB Match AmountlSource
funds Amount
Miami Beach Convention Center $55,000,000 N/A - No matching funds required
Financial Im act Summa
cit clerK's vttice Le islative Trackin
Judy Hoanshelt, Grants Manager, Office of Budget and Performance Improvement
Department Director ~ ~si~ant City Manager ~ City Manager
T:\AGENDA\2009Wu1y 15\Consent\Grants Conv Center S
~~ f~ ~ J~ AGENDA ITEM ~~
'~ ~/ { ~ ~ EAR H DATE ''I S O
m MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the C' 'Commission
FROM: Jorge M. Gonzalez, City Manager ,
DATE: July 15, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY
MANAGER OR HIS DESIGNEE TO EXECUTE AN INTERLOCAL
AGREEMENT WITH MIAMI-DADE COUNTY FOR BUILDING BETTER
COMMUNITIES GENERAL OBLIGATION BOND PROGRAM FUNDS IN
THE AMOUNT OF $55,000,000 FOR THE MIAMI BEACH CONVENTION
CENTER; FURTHER APPROPRIATING THE FUNDS AND
AUTHORIZING THE EXECUTION OF ALL OTHER NECESSARY
DOCUMENTS RELATED TO THIS AGREEMENT
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On November 2, 2004, the voters of Miami Dade County overwhelmingly supported and
approved a referendum supporting the Building Better Communities General Obligation
Bond Program (GOB) to provide $2.9 billion to fund more than 300 capital improvements
throughout the County over the next 15 to 20 years. As part of the Building Better
Communities Bond Program, the Miami-Dade County Board of County Commissioners
reviewed and approved allocations to municipalities throughout the County, including the
City of Miami Beach and, more specifically, the Miami Beach Convention Center.
Two documents guide the BBC GOB program: the Administrative Rules, which govern the
implementation by Miami-Dade County of the Building Better Communities General
Obligation Bond Program; and the Interlocal Agreements, which are the executed grant
agreements between Miami-Dade County and the City setting forth mutual obligations for
each project. The Administrative Rules and Interlocal Agreements were developed after the
City's agreement with the County as to which projects to include, and after approval by the
voters.
Built in 1957, the Miami Beach Convention Center (MBCC) originally encompassed 108,000
square feet. In 1968, an additional 130,500 square feet of exhibit space was added, with
additional support facilities subsequently constructed in 1974. In 1986, as the demand for
exhibition space increased, the facility underwent a $92 million renovation and doubled in
size to its current footprint. The expanded Convention Center opened in 1989. Since that
time, the facility has also received over $50 million in continuing upgrades.
Commission Memorandum
Grants Conv. Center GOB Interlocal Agreement
Page 2
In 2005, a stakeholder group was formed by the City Manager In order to reach consensus
with the tourism industry regarding needed improvements to the Convention Center. The
group was comprised of representatives of the Greater Miami Convention and Visitors
Bureau, Greater Miami and Beach Hotel Association, Miami Beach Visitor and Convention
Authority, Convention Center Advisory Board, Miami-Dade County, convention center
building management, and the City Administration.
In June 2008 the GMCVB contracted with Convention, Sports and Leisure, Inc. (CSL) to
conduct a new study focused on, among other things, identifying current industry trends,
competitive/comparable facility analysis, existing and projected utilization at the convention
center, and a market demand analysis. CSL would work jointly with an architectural firm and
with the stakeholders, in developing a proposed master plan that would incorporate
research-driven improvements focused on making the convention center competitive and
marketable. On September 3, 2008, the stakeholders met to review preliminary results
from CSL and subsequently met again on April 30, 2009 to review the final CSL study.
At the May 13, 2009 City Commission meeting, the commission approved and authorized
the execution of a professional services agreement with Arquitectonica for the design of a
Miami Beach Convention Center Campus Master Plan, pending execution of an interlocal
agreement.
On May 1, 2009, the City and County met to discuss the remaining issues which were
preventing the execution of the GOB grant agreement. Subsequently, the County
Administration agreed to forward to the County's Building Better Communities GOB Citizen's
Advisory Committee (CAC), with a favorable recommendation, two of the three outstanding
revisions to the Interlocal agreement recommended by the City, specifically the City's
revisions to the language regarding milestones and naming rights.
On June 25, 2009, the City Administration presented the City's revisions to the Interlocal
Agreement to Miami Dade-County's Building Better Communities GOB Citizen's Advisory
Committee (CAC). The CAC, one member short of a quorum, agreed by consensus of the
nine members present that the item should be forwarded for consideration by the Board of
County commissioners with a favorable recommendation to amend two current standard
agreement provisions as we requested.
The City's revisions favorably recommended by Administration and the CAC are:
1. Section 2. Funding Responsibilities:
Responsibilities of the County: The County agrees to provide solely from BBC GOB
Program proceeds for the Funding Cycle Allocation in an amount equal to $
This amount represents a portion of the amount necessary to complete the Project.
This sum shall be provided in accordance with the reimbursement procedures
contained in the County's GOB Administrative Rules attached as Attachment 1. In the
event that the Project Milestones, as defined and set forth in Exhibit 1 of this
Agreement are not within -~$°1a 25% of completion, the dollars to be funded for
subsequent Milestones may be delayed for one calendar ~ uarter in accordance
with the Administrative Rules, see Section 18 of this Agreement.
The Administration requested this revision because it was not reasonable to expend funds
on the project, and not be reimbursed by the County for up to a year, if certain milestones
are not within 10% of completion, based on original estimates, especially on such a complex
project. The proposed amendment addresses our concerns.
Commission Memorandum
Grants Conv. Center GOB Interlocal Agreement
Page 3
2. Section 11. Naming Rights and Advertisements:
o
The Coun 's logo/tombstone and other wordage
acknowledging the Building Better Communities Bond Program funding as a
contributor to the funding of the proiect will be placed by the Municipality in a
prominent location(s) next to each of the City's logo and/or tombstone(s), but not
less than once, following proiect completion. The associated costs will be paid from
proiect funds provided by Building Better Communities Bond Program.
The Administration requested this revision in order not to put an excessive amount of
signage on the building. It was not unreasonable to give credit for the GOB funding, so the
Administration revised the language to state that the City will place the County's logo/
tombstone acknowledging the GOB funds used to expand and enhance the facility.
The City and County were unable to reach an agreement on the City's third request. The
city had requested the following revisions be made:
3. Section 17. Representation of the Municipality:
The Municipality represents that this Agreement has been duly authorized, executed
and delivered by Mayor and Commissioners, as the governing body of the City of
,Florida and it has granted the City Manager, or his designee, the
required power and authority to execute this Agreement. The Municipality agrees to
a) maintain the Project for a minimum of 25 years, b) agrees to govern itself, in
regards to the subject Project, in accordance with Article 6 of the County Charter, c)
keep the Project open safely and properly maintained for all Miami-Dade County
residents, and d)
P~ejest-ar-rt not discriminate when q renting the facility admission fees based
on where aresident/renter resides in the County. The Municipality also agrees to
accept and comply with the Administrative Rules as stated in Attachment 1 and as
may hereafter be amended.
The City does not currently set the fees for Convention Center events. Fees are set by the
event producer who rents the Convention Center from the City. The Administration's
recommendation was to incorporate language that would require us to rent the facility to
event producers without regard to where the renter resides in the County, but not to dictate
pricing structures/fees to the event producers, especially if it makes our facility less
competitive due to this restriction. The County Administration and CAC denied this request
based on the opinion (supported by their County Attorney's Office) that the Building Better
Communities General Obligation Bond was a countywide referendum and will be supported
by residents countywide and, as such, all residents should be offered the same admission
fee to the facility. It is important to note that we are not aware of any event at the MBCC that
currently provides "preferred pricing" for City residents. Notwithstanding our concerns
regarding whether this restriction will affect future rentals, the County Administration will not
recommend waiver of this provision. In an effort to proceed with the project, it is necessary
to approve the interlocal agreement with the amendments currently agreed to.
Commission Memorandum
Grants Conv. Center GOB Interlocal Agreement
Page 4
In addition, a request by the administration to change the project description from: "Renovate
the Miami Beach Convention Center" to "Expand and enhance the Miami Beach Convention
Center" was also approved. This language now mirrors the language in the 2004 Convention
Development Tax (CDT) Amendment that provided for the inclusion of the Convention
Center in the GOB project list.
The modification to the Convention Center Interlocal Agreement will also be presented to the
County's Recreation Committee on July 13, 2009, and subsequently will be considered by
the full Board of County Commissioners on July 21, 2009.
Matching funds are not required from the City to support this funding. This project supports
the key intended outcome: ensure well designed quality capital projects.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the Resolution
approving the interlocal agreement for Miami-Dade County For Building Better Communities
General Obligation Bond Project No.233 -Miami Beach Convention Center, and authorizing
the City Manager or his designee to execute an agreement with Miami-Dade County, for
funding for said Convention Center project in the amount of $55,000,000; further
appropriating funds and authorizing the execution of all other necessary documents related
to this agreement.
JMG/HMF/JMH
T:\AGENDA\2009\July 15\Consent\Grants Conv Center GOB Interlocal.doc