2013-28164 Reso RESOLUTION NO. ton-2R1 h4
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 AMENDMENT TO THE PROFESSIONAL SERVICES
AGREEMENT BETWEEN THE CITY AND STRATEGIC ADVISORY GROUP, DATED
OCTOBER 19, 2011, FOR CONSULTING SERVICES RELATIVE TO THE
EXPANSION AND ENHANCEMENT OF THE MIAMI BEACH CONVENTION
CENTER CAMPUS/DISTRICT; SAID AMENDMENT, IN AN AMOUNT NOT TO
EXCEED $240,945, INCLUDING ALL REIMBURSABLE EXPENSES, WITH
PREVIOUSLY APPROPRIATED FUNDS FROM FY 2012/2013 OPERATING
BUDGET FUND 168 RDA CITY CENTER OPERATIONS.
WHEREAS, on October 19, 2011, via Resolution No. 2011-27778, the City Commission
authorized the Mayor and City Clerk to enter into an agreement with Strategic Advisory Group (SAG)
for services relative to the expansion and enhancement of the MBCC District, pursuant to Request for
Proposals (RFP) No 33-10/11, in an amount not to exceed $175,000, including all reimbursable
expenses (the Agreement); and
WHEREAS, SAG, as part of its scope of services, assisted the City in drafting the Request for
Qualifications (RFQ)for the master development of the MBCC District; and
WHEREAS, on January 11, 2012, the City Commission authorized the Administration to issue
Request for Qualifications No. 22-11/12 for Qualified Developers for a Public-Private Mixed-Use
Development in Miami Beach for the Enhancement of the MBCC District, Including the Expansion of the
Miami Beach Convention Center and Development of a Convention Center Hotel (the RFQ); the RFQ
was issued on February 7, 2012; and
WHEREAS, at the December 12, 2012 City Commission meeting, the City Commission
accepted the recommendation of the City Manager and short-listed first ranked Portman CMC and
second ranked South Beach ACE to move forward to Phase II of the RFQ; and
WHEREAS, as part of Phase II of the RFQ, Portman CMC and South Beach ACE are required
to prepare a detailed proposal for their proposed development of the MBCC District; and
WHEREAS, SAG will assist with the negotiation of Letters of Intent (LOI's) with the shortlisted
proposers, which will include the scope of the renovation and design for the MBCC, the phasing plan,
the financing plan, land lease terms and other economic impacts, hotel room blocks, and traffic impacts;
and
WHEREAS, the Administration will require SAG's continued professional industry consulting
services for Phase II work, including assistance with the extensive public master planning process with
the community, and the negotiations of the LOI's with Portman CMC and South Beach ACE; and
WHEREAS, the Administration negotiated a lump sum fee for SAG to complete all of the work
associated with Phase II of this project, from January 2013 through June 2014; and
WHEREAS, as a result of the City Commission action on February 6, 2013, the attached
Amendment to the Agreement includes additional scope of services and associated fees for SAG to
complete all Phase 11 work over 18 months, through June 2014.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and
authorize the Mayor and City Clerk to execute Amendment to the Professional Services Agreement
between the City and Strategic Advisory Group, dated October 19, 2011, for consulting services relative
to the expansion and enhancement of the Miami Beach Convention Center Campus/District, in an
amount not to exceed $240,945, including all reimbursable expenses, with previously appropriated
funds from FY 2012/2013 operating budget fund 168 RDA City Center operations.
PASSED AND ADOPTED THIS 13th DAY OF MARCH 2013.
ATTEST: \ BFI
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CITY CLERIC ::
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CH 25
TAAGENDA\2013\1Vlarch 13\SAG Consultant MBCC Reso Phase 2.docx
APPROVED AS TO
FORM&LANGUAGE
&FOR EXECUTION
City Alto Date
COMMISSION ITEM SUMMARY
Condensed Title:
FA resolution approving and authorizing the Mayor and City Clerk to execute an amendment to the Professional Services Agreement
between the City of Miami Beach and Strategic Advisory Group dated October 19, 2011 for consulting services relative to the
expansion and enhancement of the Miami Beach Convention Center campus/district in an amount not to exceed $240,945,
including all reimbursable expenses, from previously appropriated funds from FY 21012/2013 Fund 168 RDA City Center.
Key Intended Outcome Supported:
Improve the Convention Center Facility
Supporting Data (Surveys, Environmental Scan, etc.): The Strategic Plan 2011 Update indicates that occupancy at
Miami Beach Convention Center in FY 2010/11 was 54%.
Item Summary/Recommendation:
On October 19, 2011, via Resolution No. 2011-27778, the City Commission authorized the Mayor and City Clerk to enter into an
agreement between the City and Strategic Advisory Group (SAG) for services relative to the expansion and enhancement of the
MBCC District, pursuant to Request for Proposals (RFP) No 33-10/11 in an amount not to exceed $175,000, including all
reimbursable expenses.
On.'January 11, 2012, the City Commission authorized the Administration to issue Request for Qualifications No. 22-11/12 for
Qualified Developers for a Public-Private Mixed-Use Development in Miami Beach for the Enhancement of the MBCC District,
Including the Expansion of the Miami Beach Convention Center and Development of a Convention Center Hotel (the RFQ). The
RFQ was issued on February 7, 2012.
At the December 12, 2012 City Commission meeting, the Commission accepted the recommendation of the City Manager and
short-listed first ranked Portman CIVIC and second ranked South Beach ACE to move forward to Phase II of the RFQ.
The Administration will require SAG's continued professional industry consulting services for Phase II work, including assistance
with the extensive public master planning process with the community, and the negotiations of the LOls with Portman CIVIC and
South Beach ACE. SAG, will manage, in conjunction with the City Administration, the Master Planning and LOI Negotiations
process including the following: Project oversight, Managing and maintaining the schedule, Preparing agendas and facilitating
project meetings, Participating in public forums and commission meetings, Drafting and reviewing written correspondence related to
the project, Preparing presentation materials, Facilitating developer discussions, Participating in design review meetings,Answering
developer questions, Drafting the LOI template, Economic impact analysis, Negotiating the LOI, and Reviewing and commenting on
legal documents.
As a result of the aforementioned City Commission action on February 6, 2013, the contract amendment presented for
consideration includes additional scope of services and associated fees for SAG to complete all Phase 11 work over 18 months
through June 2014.
The Amendment to SAG's Professional Services Agreement (Attachment A) summarizes the Phase II Scope of Services and
schedule. SAG will bill professional fees based on the time spent on the project, multiplied by the hourly billing rates listed in the
Contract Amendment, up to an amount not to exceed $240,945, including all reimbursable expenses (e.g. travel, supplies, etc).
These fees already account for work performed in January and February 2013, which based on the monthly average for Phase II
work is$33,139 per month.
SAG currently anticipates being completed with the scope of services by June 2014.
Advisory Board Recommendation:
N/A
Financial Information:
e of Funds.- Amount Account Approved
1 $ 132,557 (FY 2012/13) 168-1985-000312
2 $ 108,388 TBD
OBPI Total $ 240,945
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
City Manager's Office
Sign-Offs:
Department Director Assistant City Manager C' Manager
JGG KGB
T:IAGENDA120131March 131SAG MBCC Phase 2 Consulting Services SUMMAR .doc
EACH AGENDA ITEM � I
AAAAAM DATE 3
® MIAMI BEACH
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 th City Commission
FROM: Kathie G. Brooks, City Manager
DATE: March 13, 2013
SUBJECT: 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 AN AMENDMENT TO THE PROFESSIONAL SERVICES
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND STRATEGIC
ADVISORY GROUP DATED OCTOBER 19, 2011 FOR CONSULTING SERVICES
RELATIVE TO THE EXPANSION AND ENHANCEMENT OF THE MIAMI BEACH
CONVENTION CENTER CAMPUS/DISTRICT IN AN AMOUNT NOT TO EXCEED
$240,945, INCLUDING ALL REIMBURSABLE EXPENSES, WITH PREVIOUSLY
APPROPRIATED FUNDS FROM FY 2012/2013 OPERATING BUDGET FUND 168
RDA CITY CENTER OPERATIONS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
$66,278 previously approved for services provided in January and February 2013, plus $132,557 is
available in Fund 168 RDA City Center Operations, Account Number 168-1985-000312. Funding for the
balance of $108,388 will be identified in June 2013. The City is pursuing reimbursement of SAG's fees
for both Phase I and Phase II as provided in the County General Obligation Bond Agreement for the
Convention Center and the City anticipates using these funds to pay for the balance of services.
BACKGROUND
On October 19, 2011, via Resolution No. 2011-27778, the City Commission authorized the Mayor and
City Clerk to enter into an agreement between the City and Strategic Advisory Group (SAG) for services
relative to the expansion and enhancement of the MBCC District, pursuant to Request for Proposals
(RFP) No 33-10/11 in an amount not to exceed $175,000, including all reimbursable expenses.
SAG, as part of its scope of services, assisted the City in drafting the Request for Qualifications (RFQ)
for the master development of the MBCC District.
On January 11, 2012, the City Commission authorized the Administration to issue Request for
Qualifications No. 22-11/12 for Qualified Developers for a Public-Private Mixed-Use Development in
Miami Beach for the Enhancement of the MBCC District, Including the Expansion of the Miami Beach
Convention Center and Development of a Convention Center Hotel (the RFQ). The RFQ was issued on
February 7, 2012.
The primary objectives of the RFQ are to:
1. Improve the Convention Center (hereinafter also referred to as the MBCC);
2. Facilitate the ability of the MBCC to attract high impact conventions, meetings, and tradeshows in
SAG MBCC Phase 2 Consulting Services
City Commission Meeting
March 13, 2013
Page 2 of 5
an increasingly competitive environment; and
3. Redevelop the surrounding area, including transforming the MBCC District into a new vibrant
neighborhood with year-round activities; increasing outdoor public space; creating a walkable
district providing connectivity between the MBCC and Lincoln Road and the City's historical and
cultural district; providing iconic architecture in keeping with the City's history of significant design;
incorporating sustainable (LEED) design principles; while being sensitive to the surrounding
residential neighborhoods (particularly with respect to traffic and scale); and offering optimal
economic and community benefits to the City.
RFQ PHASE
During Phase I of the RFQ, Proposers were evaluated based on their experience with undertaking
comparable urban mixed-use master development projects of the magnitude contemplated. Similarly,
the Proposers' "Lead Architects" were evaluated on their relevant experience in providing design
services for comparable urban mixed-use master developments.
On the RFQ deadline of April 23, 2012, the City received qualifications packages in response to the RFQ
(the proposals) from eight (8) Proposers, three (3) subsequently withdrew their proposals, leaving the
following five (5) Proposers to evaluate:
• CConnectMB
• Portman CMC
• Rida Development Corporation
• South Beach ACE
• Turnberry Lincoln Village, LLC
On November 20, 2012, the Evaluation Committee convened and heard presentations. The Committee
scored and ranked the Proposers, and recommended to the City Manager to shortlist first-ranked
Portman CMC and second-ranked South Beach ACE to move forward to Phase II of the RFQ. SAG also
recommended to the City Manager to shortlist only the two (2) top-ranked Proposers, Portman CMC and
South Beach ACE.
At the December 12, 2012 City Commission meeting, the Commission accepted the recommendation of
the City Manager and short-listed first ranked Portman CMC and second ranked South Beach ACE to
move forward to Phase II of the RFQ.
RFQ PHASE II
As part of Phase II of the RFQ, Portman CMC and South Beach ACE are required to prepare a detailed
proposal for their proposed development of the MBCC District. This Phase, as part of the preparation of
the detailed proposal, will include what the City Administration expects to be extensive community
involvement to gain input on local needs and concerns. Additional meetings will also be held with the
shortlisted Proposers to gather information on the improvement needs of the MBCC to develop the scope
of services for the MBCC enhancement and expansion. Several community meetings and City
Commission workshops will be held to review each Proposer's Master Plan, prior to final consideration
and selection of the final "Master Developer".
In addition to the Master Plan for the site (which will include respective project renderings, a breakdown
of proposed uses, and square footages of each use), the short-listed Proposers' "detailed proposal" will
also include proposals for enhancing public open spaces, a renovation and expansion plan for the
MBCC, a proposal for a convention center hotel, a phasing and absorption plan, financing plan
(including, at minimum, a 30-year financial pro forma), a preliminary traffic impact analysis, any request
SAG MBCC Phase 2 Consulting Services
City Commission Meeting
March 13, 2013
Page 3 of 5
for public assistance, and a summary of projected new City revenues to be generated by the proposed
development, including estimated impacts to the City's tourism economy against baseline criteria.
Concurrent therewith, the City Manager, with SAG's assistance, will negotiate Letters of Intent (LOIs)
with the shortlisted Proposers. Some of the items that will be negotiated in the LOI includes the scope of
the renovation and design for the MBCC, the phasing plan, the financing plan, land lease terms (if
required) and other economic impacts, hotel room blocks, and traffic impacts. The negotiated LOI's will
then be presented to the City Commission for consideration and further action.
The Administration will require SAG's continued professional industry consulting services for Phase II
work, including assistance with the extensive public master planning process with the community, and
the negotiations of the LOIs with Portman CIVIC and South Beach ACE.
The item was originally presented to the City Commission at the February 6, 2013 meeting.
Commissioner Tobin requested the Administration negotiate a lump sum fee for SAG to complete all of
the work associated with Phase II of this project. The item was initially tabled to allow staff to negotiate
an all inclusive fee with SAG. Subsequently, staff returned and distributed a cost analysis from SAG,
which included an all inclusive fee of$307,223 for eighteen (18) months of work through June 2014.
At the time, Commissioner Tobin expressed that he preferred to have more time to review the new
figures. A motion was approved authorizing payment of the monthly average for Phase II work
performed and to return to the March City Commission meeting to consider the balance of the proposed
agreement and associated fee.
ANALYSIS
Scope of Work
A copy of the Professional Services Agreement Amendment is attached for your review. Below is a
summary of the scope of services to be performed by SAG during Phase II.
SAG, will manage, in conjunction with the City Administration, the Master Planning and LOI Negotiations
process including the following:
• Project oversight — this includes assisting the City on how to best maximize the City's assets,
informing the City on how to potentially generate maximum private investment, updating the City
on the status of the project, and assisting the City with the resolution of any issues that may arise
as the project progresses.
• Managing and maintaining the schedule —this includes taking the lead role in creating, modifying,
communicating, and administering the attached schedule (Exhibit 1) with both the City team and
the short listed developers. The goal of this process will be to complete a master plan and LOI
from each short listed team by the targeted date.
• Preparing agendas and facilitating project meetings — The attached schedule includes numerous
meetings and work sessions. SAG will be responsible for preparing the agenda for each meeting,
ensuring participants are informed of expectations, and facilitating each meeting as appropriate.
• Participating in public forums and commission meetings. There are four public community
meetings and four City Commission meetings currently planned. It is our goal to create an
environment whereby the community speaks directly to the short-listed development teams, not
an intermediary consultant. Nevertheless, SAG will facilitate the meetings, meet in advance with
leaders to prepare, and ensure the proper presentation materials are prepared.
SAG MBCC Phase 2 Consulting Services
City Commission Meeting
March 13, 2013
Page 4 of 5
For the Commission meetings, SAG will assist with drafting briefing information, participate in
Commission member advance briefings, and prepare apple-to-apples comparisons to ensure the
Commission is presented with comparable data for their decision making process.
• Drafting and reviewing written correspondence related to the project — SAG will assist with the
drafting and/or reviewing project information. This will include project update memorandums,
proposal comparisons, and correspondence to the development teams.
• Preparing presentation materials — SAG will prepare presentation materials when required. In
addition, SAG will assist each development team with preparing their materials to ensure each
team presents like data in a similar fashion.
• Facilitating developer discussions — SAG will assist with the numerous meetings, conference
calls, and discussions with the short listed teams to communicate the City's objectives,
deliverable expectations, financing options, master plan issues, etc.
• Participating in design review meetings — SAG will participate and coordinate the planned design
review meetings. Our main role will be to monitor how each team is moving forward and ensure
the Commission, community, convention center, City and other stakeholder issues are being
addressed.
• Answering developer questions — SAG will be the clearinghouse to answer developer questions
as they arise, ensuring the proper team member from the City team is counseled, and that the
answer is communicated.
• Drafting the LOI template — SAG will draft, in conjunction with the City's legal team, a letter of
intent template outlining the broad terms for the proposal. The LOI will address: diagrams and
renderings communicating the vision for the site; square foot program for each component;
phasing plan and project absorption schedule; development cash flows (revenues, expense,
capital, etc.) for each component, with a summary of significant assumptions, demonstrating
financial viability; terms for leasing land for private development; plan for raising capital and
known funding commitments; scope of services and fee for management of the renovation and
expansion of the MBCC and any other public assets requested to be developed; scope of
services and fee for design of the renovation and expansion of the MBCC and any other public
assets requested to be developed; requested role of the City; hotel room-block commitment; and
the plan to involve the community in the refinement of the vision.
• Economic impact—one of the requirements of the RFQ is for each short listed team to provide an
analysis of the economic impact of the proposed master plan, with documentation supporting how
the estimated economic impact was derived. In addition each team must provide a summary of
City revenues generated by the private components of the project over time, including property
taxes, hotel taxes and sales taxes.
SAG will provide guidance to each team on how these analyses are to be completed to enable an
apples-to-apples comparison of the proposals. This will include providing each team with a
common methodology and assumptions for each calculation.
• Negotiating the LOI — SAG will work in concert with the City legal team to negotiate the LOls.
This will entail numerous conference calls and meetings to ensure each proposal addresses all
issues and that each is as favorable to the City as possible.
• Referendum — Assist with providing project, financial and market information for the referendum
initiative.
• Reviewing and commenting on legal documents — Once the LOI is accepted by the City
Commission, SAG will work with the City legal team to assist with reviewing the legal documents
SAG MBCC Phase 2 Consulting Services
City Commission Meeting
March 13, 2013
Page 5 of 5
to ensure LOI concepts are documented as intended. Attend negotiating sessions with the
selected developer and legal to negotiate the detailed contracts.
FEE AND SCHEDULE INFORMATION
As a result of the aforementioned City Commission action on February 6, 2013, the contract amendment
presented for consideration includes additional scope of services and associated fees for SAG to
complete all Phase II work over 18 months through June 2014.
The Amendment to SAG's Professional Services Agreement (Attachment A) summarizes the Phase II
Scope of Services and schedule. SAG will bill professional fees based on the time spent on the project,
multiplied by the hourly billing rates listed in the Contract Amendment, up to an amount not to exceed
$240,945, including all reimbursable expenses (e.g. travel, supplies, etc). These fees already account
for work performed in January and February 2013, which based on the monthly average for Phase II
work is $33,139 per month.
SAG currently anticipates being completed with the scope of services by June 2014. In addition, the
Administration will also pursue reimbursement for a portion of SAG's fee for both Phase I and Phase II as
provided in the County GO Bond Agreement for the Convention Center.
SAG's proposed fee is in line with their contracted fees for other projects, including Houston, Washington
DC, and Salt Lake City. SAG's proposed fee for the City of Miami Beach is higher than its contract fee
for Houston, because the Houston project was only for a hotel, and its developer selection and Council
approval was completed in only three (3) months. There were no community meetings in Houston. The
Phase I process for our Convention Center RFQ had a much longer duration for selection of the
shortlisted developers, and Phase II of the RFQ will require several months of community involvement,
and City Commission workshops and individual briefings, prior to selection of the final developer.
Conversely, SAG's fee for its work in Washington DC, while only for a hotel development, is significantly
higher because the process there took place over multiple years, as it was put on hold and then started
again, and the scope of services were also expanded to include land acquisition and assembly, a public
subsidy package that had to be approved by Congress, and construction management. The
Administration believes SAG's proposed fee for the Phase II services are reasonable.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the attached Resolution
approving and authorizing the Mayor and City Clerk to execute an amendment to the Professional
Services Agreement between the City of Miami Beach and Strategic Advisory Group dated October 19,
2011 for consulting services relative to the expansion and enhancement of the Miami Beach Convention
Center campus/district in an amount not to exceed $240,945, from previously appropriated funds from
FY 21012/2013 Operating Budget Fund 168 RDA City Center Operations.
T:WGENDA\2013\2-6-13\SAG MBCC Phase 2 Consulting Services MEMO.doc
StratepicAdvisoryGroup
Amendment #2
PROFESSIONAL SERVICES AGREEMENT DATED OCTOBER 19, 2011
BETWEEN THE CITY OF MIAMI BEACH
AND
STRATEGIC ADVISORY GROUP
FOR
CONSULTING SERVICES RELATIVE TO THE EXPANSION AND ENHANCEMENT OF
THE MIAMI BEACH CONVENTION CENTER CAMPUS/DISTRICT, PURSUANT TO
REQUEST FOR PROPOSALS (RFP)NO 33-10/11
March 1, 2013
The following amends Strategic Advisory Group's ("SAG") scope of services, professional fees,
and Term pursuant to our agreement dated October 19, 2011 to provide consulting services
relative to the expansion and enhancement of the Miami Beach Convention Center
Campus/District.
ADDITIONAL. SCOPE OF SERVICES
SAG, will manage, in conjunction with City staff, the Master plan/LOI process outlined in
Exhibit 1. This will include:
• Project oversight — this includes assisting the City on how to best maximize the City's
assets, informing the City on how to potentially generate maximum private investment,
updating the City on the status of the project, and assisting the City with the resolution of
any issues that may arise as the project progresses.
• Managing and maintaining the schedule — this includes taking the lead role in creating,
modifying, communicating, and administering the attached schedule (Exhibit 1) with
both the City team and the short listed developers. The goal of this process will be to
complete a master plan and LOI from each short listed team by the targeted date.
• Preparing agendas and facilitating project meetings — The attached schedule includes
numerous meetings and work sessions. SAG will be responsible for preparing the agenda
for each meeting, ensuring participants are informed of expectations, and facilitating each
meeting as appropriate.
• Participating in public forums and commission meetings. There are four public
community meetings and four City Commission meetings currently planned. It is our
goal to create an environment whereby the community speaks directly to the short-listed
development teams, not an intermediary consultant. Nevertheless, SAG will facilitate the
3848 Saint Annes Court • Duluth, GA 30096 • (678)584-0705
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meetings, meet in advance with leaders to prepare, and ensure the proper presentation
materials are prepared.
For the Commission meetings, SAG will assist with drafting briefing information,
participate in Commission member advance briefings, and prepare apple-to-apples
comparisons to ensure the Commission is presented with comparable data for their
decision making process.
• Drafting and reviewing written correspondence related to the project — SAG will assist
with the drafting and/or reviewing project information. This will include project update
memorandums, proposal comparisons, and correspondence to the development teams.
• Preparing presentation materials — SAG will prepare presentation materials when
required. In addition, SAG will assist each development team with preparing their
materials to ensure each team presents like data in a similar fashion.
• Facilitating developer discussions — SAG will assist with the numerous meetings,
conference calls, and discussions with the short listed teams to communicate the City's
objectives, deliverable expectations, financing options, master plan issues, etc.
• Participating in design review meetings — SAG will participate and coordinate the
planned design review meetings. Our main role will be to monitor how each team is
moving forward and ensure the Commission, community, convention center, City and
other stakeholder issues are being addressed.
• Answering developer questions — SAG will be the clearinghouse to answer developer
questions as they arise, ensuring the proper team member from the City team is
counseled, and that the answer is communicated.
• Drafting the LOI template — SAG will draft, in conjunction with the City's legal team, a
letter of intent template outlining the broad terms for the proposal. The LOI will address:
diagrams and renderings communicating the vision for the site; square foot program for
each component; phasing plan and project absorption schedule; development cash flows
(revenues, expense, capital, etc.) for each component, with a summary of significant
assumptions, demonstrating financial viability; terms for leasing land for private
development; plan for raising capital and known funding commitments; scope of services
and fee for management of the renovation and expansion of the MBCC and any other
public assets requested to be developed; scope of services and fee for design of the
renovation and expansion of the MBCC and any other public assets requested to be
developed; requested role of the City; hotel room-block commitment; and the plan to
involve the community in the refinement of the vision.
• Economic impact — one of the requirements of the RFQ is for each short listed team to
provide an analysis of the economic impact of the proposed master plan, with
documentation supporting how the estimated economic impact was derived. In addition
each team must provide a summary of City revenues generated by the private
components of the project over time, including property taxes, hotel taxes and sales taxes.
2
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SAG will provide guidance to each team on how these analyses are to be completed to
enable an apples-to-apples comparison of the proposals. This will include providing each
team with a common methodology and assumptions for each calculation.
• Negotiating the LOI— SAG will work in concert with the City legal team to negotiate the
LOIs. This will entail numerous conference calls and meetings to ensure each proposal
addresses all issues and that each is as favorable to the City as possible.
• Referendum — Assist with providing project, financial and market information for the
referendum initiative.
• Reviewing and commenting on legal documents — Once the LOI is accepted by the City
Commission, SAG will work with the City legal team to assist with reviewing the legal
documents to ensure LOI concepts are documented as intended. Attend negotiating
sessions with the selected developer and legal to negotiate the detailed contracts.
ADDTI'IONAL FEES
Exhibit 2 presents an estimate of the hours for each task, fees and expenses beginning January 1,
2013, assuming two firms are shortlisted. Fees and expenses are not to exceed $240,936 during
the Term in this amendment. Fees and expenses will increase if the City materially alters the
schedule in Exhibit 1.
SAG's fees will be based on the time worked on the project multiplied by the hourly rates in
Exhibit 2. Each invoice will include a summary of the tasks completed by day by person.
Travel expenses will be paid in addition to fees. Expenses for airfare, rental car, taxi, hotel and
any third party data will be invoiced based on the actual amount, without markup. Meals will be
invoiced based on the City of Miami Beach's per diem rate which are currently $22.64 for
breakfast, $20.14 for lunch and $36.38 for dinner.
Invoices shall be submitted monthly and the City shall pay invoices within 30 days of receipt.
TERM
This agreement shall begin on March 1, 2013 and end on June 30, 2014.
3
StrategicAdvisoryGroup
IN WITNESS WHEREOF, the parties by their duly authorized representatives have caused this
Subcontract Agreement to be executed as of the date first written above.
FOR CITY: CITY OF MIAMI BEACH, FLORIDA
ATTEST:
By:
City Clerk Mayor
FOR CONSULTANT: STRATEGIC ADVISORY GROUP LLC
ATTEST:
By:
Thomas Reifert, Partner Jeffrey Sachs, Managing Partner
4
StrategicAdvisoryGroup
Exhibit 1
Design/L,OI Process
Dec 17 Conference Call City/SAG - Project Schedule
Dec 18 Conference Call City/SAG - City Funding Available
Dec 20 Conference Call City/SAG/Portman - Project Schedule
Dec 21 Conference Call City/SAG/Tishman - Project Schedule
Jan 8 City/SAG/Tishman - Kick Off Meeting, MBCC Walk-Through
Jan 9 City/SAG/Portman - Kick Off Meeting, MBCC Walk-Through
Jan 29 Eve Public Community Meeting#I -Gather initial public input
Feb 26 City/SAG/Portman - Internal Preliminary Master Plan Review
Feb 27 City/SAG/Tishman - Internal Preliminary Master Plan Review
Feb 27 Eve Public Community Meeting#2
• Guiding Principles for Master Plan based on community input
• Master Plan Concept (bubble diagrams)
Feb 28 City Commission Workshop#1
• Guiding Principles for Master Plan based on community input
• Master Plan Concept (bubble diagrams)
Mar 26 City/SAG/Portman - Internal Master Plan Review
Mar 27 City/SAG/Tishman - Internal Master Plan Review
Mar 27 eve City Commission Workshop 42 & Public Community Meeting#3
• 3D Massing diagrams
April 5 Initial LOI terms due to the Administration
April LOI review and negotiations
April 26 Final Masterplan deliverables and LOI due
May 8 eve Public Community Meeting#4
• Complete Master Plans
May 15 City Commission Workshop 43 -(opportunity#5 for public participation)
• Complete Master Plans
• Proposed LOI Terms
Jun 5 City Commission Meeting
5
StrategecAdvisoryGroup
■ Selection of the Final Proposer based on LOIs and Master Plans
Jun/July Term Sheet negotiations with selected team
July 17 City Commission Meeting
■ Final negotiated Term Sheets presented to City Commission
6
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StrategicAdves®ryGr®up /3
Amendment
PROFESSIONAL SERVICES AGREEMENT DATED OCTOBER 19, 2011
BETWEEN THE CITY OF MIAMI BEACH
AND
STRATEGIC ADVISORY GROUP
FOR
CONSULTING SERVICES RELATIVE TO THE EXPANSION AND ENHANCEMENT OF
THE MIAMI BEACH CONVENTION CENTER CAMPUS/DISTRICT,PURSUANT TO
REQUEST FOR PROPOSALS (RFP)NO 33-10/11
March 1, 2013
The following amends Strategic Advisory Group's ("SAG") scope of services, professional fees,
and Term pursuant to our agreement dated October 19, 2011 to provide consulting services
relative to the expansion and enhancement of the Miami Beach Convention Center
Campus/District.
ADDI'T'IONAL SCOPE OF SERVICES
SAG, will manage, in conjunction with City staff, the Master plan/LOI process outlined in
Exhibit 1. This will include:
• Project oversight — this includes assisting the City
on how to best maximize the City's assets, informing the City on how to potentially
generate maximum private investment, updating the City on the status of the project, and
assisting the City with the resolution of any issues that may arise as the project
progresses.
• Managing and maintaining the schedule — this
includes taking the lead role in creating, modifying, communicating, and administering
the attached schedule (Exhibit 1) with both the City team and the short listed developers.
The goal of this process will be to complete a master plan and LOI from each short listed
team by the targeted date.
• Preparing agendas and facilitating project meetings
— The attached schedule includes numerous meetings and work sessions. SAG will be
responsible for preparing the agenda for each meeting, ensuring participants are informed
of expectations, and facilitating each meeting as appropriate.
• Participating in public forums and commission
meetings. There are four public community meetings and four City Commission
meetings currently planned. It is our goal to create an environment whereby the
3848 Saint Annes Court • Duluth,GA 30096 • (678)584-0705
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community speaks directly to the short-listed development teams, not an intermediary
consultant. Nevertheless, SAG will facilitate the meetings, meet in advance with leaders
to prepare, and ensure the proper presentation materials are prepared.
For the Commission meetings, SAG will assist with drafting briefing information,
participate in Commission member advance briefings, and prepare apple-to-apples
comparisons to ensure the Commission is presented with comparable data for their
decision making process.
• Drafting and reviewing written correspondence
related to the project — SAG will assist with the drafting and/or reviewing project
information. This will include project update memorandums, proposal comparisons, and
correspondence to the development teams.
• Preparing presentation materials—SAG will prepare
presentation materials when required. In addition, SAG will assist each development
team with preparing their materials to ensure each team presents like data in a similar
fashion.
• Facilitating developer discussions— SAG will assist
with the numerous meetings, conference calls, and discussions with the short listed teams
to communicate the City's objectives, deliverable expectations, financing options, master
plan issues, etc.
• Participating in design review meetings — SAG will
participate and coordinate the planned design review meetings. Our main role will be to
monitor how each team is moving forward and ensure the Commission, community,
convention center, City and other stakeholder issues are being addressed.
• Answering developer questions — SAG will be the
clearinghouse to answer developer questions as they arise, ensuring the proper team
member from the City team is counseled, and that the answer is communicated.
• Drafting the LOI template — SAG will draft, in
conjunction with the City's legal team, a letter of intent template outlining the broad
terms for the proposal. The LOI will address: diagrams and renderings communicating
the vision for the site; square foot program for each component; phasing plan and project
absorption schedule; development cash flows (revenues, expense, capital, etc.) for each
component, with a summary of significant assumptions,demonstrating financial viability;
terms for leasing land for private development; plan for raising capital and known
funding commitments; scope of services and fee for management of the renovation and
expansion of the MBCC and any other public assets requested to be developed; scope of
services and fee for design of the renovation and expansion of the MBCC and any other
public assets requested to be developed; requested role of the City; hotel room-block
commitment; and the plan to involve the community in the refinement of the vision.
• Economic impact — one of the requirements of the
RFQ is for each short listed team to provide an analysis of the economic impact of the
2
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proposed master plan, with documentation supporting how the estimated economic
impact was derived. In addition each team must provide a summary of City revenues
generated by the private components of the project over time, including property taxes,
hotel taxes and sales taxes.
SAG will provide guidance to each team on how these analyses are to be completed to
enable an apples-to-apples comparison of the proposals. This will include providing each
team with a common methodology and assumptions for each calculation.
• Negotiating the LOI — SAG will work in concert
with the City legal team to negotiate the LOIs. This will entail numerous conference
calls and meetings to ensure each proposal addresses all issues and that each is as
favorable to the City as possible.
• Referendum — Assist with providing project,
financial and market information for the referendum initiative.
• Reviewing and commenting on legal documents —
Once the LOI is accepted by the City Commission, SAG will work with the City legal
team to assist with reviewing the legal documents to ensure LOI concepts are
documented as intended. Attend negotiating sessions with the selected developer and
legal to negotiate the detailed contracts.
ADDITIONAL FEES
Exhibit 2 presents an estimate of the hours for each task, fees and expenses beginning January 1,
2013, assuming two firms are shortlisted. Fees and expenses are not to exceed $240,945 during
the Term in this amendment. Fees and expenses will increase if the City materially alters the
schedule in Exhibit 1.
SAG's fees will be based on the time worked on the project multiplied by the hourly rates in
Exhibit 2. Each invoice will include a summary of the tasks completed by day by person.
Travel expenses will be paid in addition to fees. Expenses for airfare, rental car, taxi, hotel and
any third party data will be invoiced based on the actual amount, without markup. Meals will be
invoiced based on the City of Miami Beach's per diem rate which are currently $22.64 for
breakfast, $20.14 for lunch and $36.38 for dinner.
Invoices shall be submitted monthly and the City shall pay invoices within 30 days of receipt.
TERM
This agreement shall begin on March 1, 2013 and end on June 30, 2014.
3
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IN WITNESS WHEREOF, the parties by their duly authorized representatives have caused this
Amendment to be executed as of the date first written above.
FOR CITY: CITY OF MIAMI BEACH, FLORIDA
ATTEST:
By. City Jerk ! ��... '.�q or
INCORP ORATED:
�R.. �C/
CH2 - shy
FOR CONSULTANT: STRATEGIC ADVISORY GROUP LLC
ATTEST-
By:Y:
Thoma Reifert, Partner J Sachs, Managing Partner
APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
City Attorn r n Date
4
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Exhibit 1
Design/L01 Process
Dec 17 Conference Call City/SAG - Project Schedule
Dec 18 Conference Call City/SAG -City Funding Available
Dec 20 Conference Call City/SAG/Portman - Project Schedule
Dec 21 Conference Call City/SAG/Tishman-Project Schedule
Jan 8 City/SAG/Tishman -Kick Off Meeting, MBCC Walk-Through
Jan 9 City/SAG/Portman-Kick Off Meeting,MBCC Walk-Through
Jan 29 Eve Public Community Meeting#l -Gather initial public input
Feb 26 City/SAG/Portman- Internal Preliminary Master Plan Review
Feb 27 City/SAG/Tishman - Internal Preliminary Master Plan Review
Feb 27 Eve Public Community Meeting#2
• Guiding Principles for Master Plan based on'community input
• Master Plan Concept(bubble diagrams)
Feb 28 City Commission Workshop#1
■ Guiding Principles for Master Plan based on community input
• Master Plan Concept(bubble diagrams)
Mar 26 City/SAG/Portman- Internal Master Plan Review
Mar 27 City/SAG/Tishman -Internal Master Plan Review
Mar 27 eve City Commission Workshop 42& Public Community Meeting#3
• 3D Massing diagrams
April 5 Initial LOI terms due to the Administration
April LOI review and negotiations
April 26 Final Masterplan deliverables and LOI due
May 8 eve Public Community Meeting 44
• Complete Master Plans
May 15 City Commission Workshop#3 -(opportunity#5 for public participation)
• Complete Master Plans
• Proposed LOI Terms
5
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�Tn �T�-
Jun 5 City Commission Meeting
■ Selection of the Final Proposer based on LOIs and Master Plans
Jun/July Term Sheet negotiations with selected team
July 17 City Commission Meeting
■ Final negotiated Term Sheets presented to City Commission
6
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