2014-28886 ResoRESOLUTION NO, 2014-28886
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 NO. 6 TO THE
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI
BEACH AND STRATEGIC ADVISORY GROUP (SAG) DATED OCTOBER
19, 2011, FOR CONSULTING SERVICES RELATIVE TO THE CONVENTION
CENTER HEADQUARTER HOTEL REQUEST FOR PROPOSALS AND
LEASE AGREEMENT, IN AN AMOUNT NOT TO EXCEED $166,375,
INCLUDING REIMBURSABLE EXPENSES.
WHEREAS, on October 19, 2011, 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 Miami Beach Convention Center District, in an amount not
to exceed $175,000; and
WHEREAS, on January 11, 2012, the City Commission authorized the issuance of
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
"2012 RFQ"); and
WHEREAS, on February 6, 2013, and March 13, 2013, the Commission authorized
Amendments No. 1 and 2 to the SAG Agreement, respectively, for additional services relative to
the 2012 RFQ;
WHEREAS, on January 15, 2014, the City Commission adopted Resolution No. 2014-
28479, canceling the 2012 RFQ and directing the Administration to prepare a new RFP or RFQ
for design -build or design services for the renovation of the Convention Center, and further
directing the Administration to identify potential sites for a Convention Center Headquarter Hotel;
and
WHEREAS, on February 12, 2014, the City Commission approved the issuance of RFQ
2014-142ME, for a Design Criteria Professional to prepare a Design Criteria Package for the
Convention Center Renovation Project, and authorized the City Manager to negotiate and
execute any additional contracts, as required, in order to expedite this process, including but not
limited to additional amendments to the SAG Agreement; and
WHEREAS, Amendments No. 3 and 4, totaling $548,900, have been executed pursuant
to the Commission's February 12, 2014 directive, covering all of SAG's services from the
beginning of the current design -build RFQ process through the anticipated selection of a
Design -Builder in 2015 and execution of a Design -Build Agreement; and
WHEREAS, on September 10, 2014, the City Commission directed the Administration to
prepare a traffic study related to the development of a Convention Center Headquarter Hotel
and to prepare a schedule for the potential procurement of a hotel developer; and
WHEREAS, Amendment No. 5, for consulting services associated with these tasks, was
executed in an amount not to exceed $30,000; and
WHEREAS, Amendment No. 6 is for the additional services associated with the
procurement process of the hotel developer; and
WHEREAS, SAG's fees are based on the time worked on the project multiplied by the
hourly rates, which have been reduced from the rates approved in the original Agreement; and
WHEREAS, fees and expenses are not to exceed $166,375, averaging $18,486 per
month, and the term shall begin on December 21, 2014 and end on July 31, 2015.
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 approve and authorize the Mayor and City Clerk to execute Amendment
No. 6 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 Convention
Center Headquarter Hotel Request for Proposals and Lease Agreement, in an amount not -to -
exceed $166,375, including reimbursable expenses.
PASSED and ADOPTED this / g day of December, 2014
ATTESTED BY:
Phili •;Le ;'; , Mayor
Rafal E. Granado, City Cler
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION f Ary
scj (lCC5(
City Attorney R,pe Dote
COMMISSION ITEM SUMMARY
Condensed Title:
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 No. 6 To The Professional Services Agreement
Between The City Of Miami Beach And Strategic Advisory Group (SAG) Dated October 19, 2011, For Consulting
Services Relative To The Convention Center Headquarter Hotel Request For Proposals And Land Lease
greement, In An Amount Not To Exceed $166,375, Including Reimbursable Expenses.
Key Intended Outcome Supported:
Improve alliance with key business sectors, namely hospitality, arts & international business with a focus on
enhanced culture, entertainment & tourism.
Supporting Data (Surveys, Environmental Scan, etc N/A
Item Summary/Recommendation:
On October 19, 2011, 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 Miami Beach
Convention Center District, in an amount not to exceed $175,000. SAG's fees were exhausted upon completion
of Phase I of RFQ No. 22-11/12, issued for the selection of qualified developers for a public-private mixed-use
development including the expansion of the Miami Beach Convention Center and development of a Convention
Center Hotel (Hotel). On February 6, 2013, the City Commission authorized payment for services performed
beyond the original not -to -exceed contract amount. Amendment No. 1 was executed pursuant to this direction, in
the amount of $66,287. On March 13, 2013, the City Commission authorized an Amendment to SAG's Agreement
for additional consulting services relative to the Phase II of the RFQ process for an amount not to exceed
$240,945 (Amendment No. 2). On July 17, 2013, the City Commission selected South Beach ACE as the "Master
Developer" for the mixed-use project.
On January 15, 2014, the City Commission adopted Resolution No. 2014-28479 terminating negotiations with
South Beach ACE, and directing the Administration to prepare a new RFP or RFQ for design -build or design
services for the renovation of the Convention Center alone, and further directing the Administration to identify
potential sites for a Hotel. On February 12, 2014, the City Commission approved the issuance of RFQ 2014-
142ME for a Design Criteria Professional to prepare a Design Criteria Package for the Convention Center
Renovation Project, and further authorized the City Manager to negotiate and execute any additional contracts, as
required, in order to expedite this process, including but not limited to an Amendment to the Agreement with SAG.
Amendments No. 3 and 4, totaling $548,900 have been executed pursuant to this directive. These two
amendments take SAG's services from the beginning of the design RFQ process to full execution of the Design
Builder agreement. '
On September 10, 2014, the City Commission directed the Administration to prepare a traffic study related to the
development of a Convention Center Headquarter Hotel and to prepare a schedule for the potential procurement
of a hotel developer. Amendment No.5, for consulting services associated with these tasks, was executed in an
amount not to exceed $30,000.
The Amendment presented for your consideration is for the additional services associated with the procurement
process of the hotel developer. Fees and expenses are not to exceed $166,375, averaging $18,486 per month.
This Amendment shall begin on December 21, 2014 and end on July 31, 2015.
The Administration recommends the City Commission adopt the Resolution.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount
Funds: 1 $166,375
OBPI
2
3
Total
Financial Impact Summary: N/A
City Clerk's Office Legislative Tracking:
1 Maria Hernandez, ext. 2584
Sign -Offs:
Department Director Assistant City Manager City er
Account
165-2814-061357 Miami Beach Redevelopment Agency
Non -Trust Fund Special Revenue Account
MH JLM
T:\AGENDA\2014\December\Special Commission Meeting 12-18-14\Hotel Items\MBCC Headquarter Hotel - SAG Amendm
MIAMIBEACH
6 - SUMMARY.docx
AGENDA ITEM i ` 7 D
DATE 12-184(1
MN II
1915 • 2015
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of tr"jam City Com ission
FROM: Jimmy L. Morales, City Manager
DATE: December 18, 2014
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AMENDMENT NO. 6 TO THE PROFESSIONAL
SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND
STRATEGIC ADVISORY GROUP (SAG) DATED OCTOBER 19, 2011, FOR
CONSULTING SERVICES RELATIVE TO THE CONVENTION CENTER
HEADQUARTER HOTEL REQUEST FOR PROPOSALS AND LAND LEASE
AGREEMENT, IN AN AMOUNT NOT TO EXCEED $166,375, INCLUDING
REIMBURSABLE EXPENSES.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME
Improve alliance with key business sectors, namely hospitality, arts & international business
with a focus on enhanced culture, entertainment & tourism.
FUNDING
$166,375 from Miami Beach Redevelopment Agency Non -Trust Fund Special Revenue Account
No. 165-2814-061357
BACKGROUND
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 Miami Beach Convention Center
District, pursuant to Request for Proposals (RFP) No 33-10/11, in an amount not to exceed
$175,000.
On January 11, 2012, the City Commission authorized the issuance of 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).
Miami Beach Convention Center Headquarter Hotel
Strategic Advisory Group- Amendment No. 6
December 18, 2014
Page 2
As part of its scope of services, SAG assisted the City in drafting the RFQ and provided
assistance during Phase I of the procurement process. SAG's fees were exhausted upon
completion of this task, and on February 6, 2013, the City Commission authorized payment for
services performed beyond the original not -to -exceed contract amount for the month of January.
Amendment No. 1 was executed pursuant to this direction, in the amount of $66,287.
On March 13, 2013, the City Commission authorized an Amendment to SAG's Agreement for
additional consulting services relative to the Phase II of the RFQ Process for an amount not to
exceed $240,945.
On July 17, 2013, the City Commission adopted Resolution No. 2013-28286, selecting South
Beach ACE as the "Master Developer" for the mixed-use project pursuant to RFQ No. 22-11/12.
On January 15, 2014, the City Commission adopted Resolution No. 2014-28479 canceling RFQ
No. 22-11/12, terminating negotiations with South Beach ACE, and directing the Administration
to prepare a new RFP or RFQ for design -build or design services for the renovation of the
Convention Center alone, and further directing the Administration to identify potential sites for a
Convention Center Headquarter Hotel.
On February 12, 2014, the City Commission approved the issuance of RFQ 2014-142ME for a
Design Criteria Professional to prepare a Design Criteria Package for the Convention Center
Renovation Project, and further authorized the City Manager to negotiate and execute any
additional contracts, as required, in order to expedite this process, including but not limited to,an
Amendment to the Agreement with SAG. Amendments No. 3 and 4, totaling $548,900 have
been executed pursuant to this directive. These two amendments take SAG's services from the
beginning of the design RFQ process to full execution of the Design Builder agreement.
On September 10, 2014, the City Commission directed the Administration to prepare a traffic
study related to the development of a Convention Center Headquarter Hotel and to prepare a
schedule for the potential procurement of a hotel developer. Amendment No. 5, for consulting
services associated with these tasks was executed in an amount not to exceed $30,000.
ANALYSIS
The Amendment presented for your consideration (Attachment 1), is for the additional services
associated with the procurement process of the hotel developer. Below is summary of the scope
of work:
a) Approach — SAG will work with the City to create the best approach to maximize the
potential of identifying viable and financially capable hotel developers of the project.
b) Form Lease — SAG will work with the City's legal team to draft and review a prototypical
"Hotel Funding, Development and Site Lease Agreement" that will be provided in the
RFP. The agreement is to outline all material items such as key parties, program
requirements, timelines, capital commitments, role of the public, room block
commitments, windfall projection, cost overrun responsibility, public oversight,
termination provisions, and other unique project terms.
c) Hotel Developer RFP — SAG will lead the effort to identify the best private development
partner for the hotel. This includes working with the City to determine the best approach
to solicit a development team, writing the RFQ/P, marketing the project, and assessing
Miami Beach Convention Center Headquarter Hotel
Strategic Advisory Group- Amendment No. 6
December 18, 2014
Page 3
the submittals to determine which is best positioned to deliver the project consistent with
project goals.
d) Developer Negotiations — SAG will assist the City's legal team with negotiations related
to the final form of the "Hotel Funding, Development and Site Lease Agreement".
e) Referendum — SAG will assist the City as required related to referendum issues.
SAG's fees will be based on the time worked on the project multiplied by the hourly rates which
have been reduced from the rates approved in the original Agreement. Fees and expenses are
not to exceed $166,375, averaging $18,486 per month. This Amendment shall begin on
December 21, 2014 and end on July 31, 2015.
CONCLUSION
The Administration recommends the City Commission adopt the attached Resolution approving
and authorizing the Mayor and City Clerk to execute Amendment No. 6 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 Convention Center Headquarter Hotel
Request for Proposals and Land Lease Agreement, in an amount not -to -exceed $166,375,
including reimbursable expenses.
Attachments:
1. Addendum No. 6 — Timeline & Monthly Estimate.
JLM:MH
T:\AGENDA\2014\December\Special Commission Meeting 12-18-14\Hotel Items\MBCC Headquarter Hotel - SAG Amendment No 6 - MEMO.docx
(ATTACHMENT 1
StrategicAdvisoryGroup
Amendment #6
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
, 2014
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.
ADDITIONAL SCOPE OF SERVICES
SAG, will manage, in conjunction with City staff, the process for procuring a hotel
developer. This will include:
a) Approach — SAG will work with the CITY to create the best approach to maximize
the potential of identifying viable and financially capable hotel developers of the
project.
b) Form Lease — SAG will work with the CITY legal team to draft and review a
prototypical "Hotel Funding, Development and Site Lease Agreement" that will be
provided in the RFP. The agreement is to outline all material items such as key
parties, program requirements, timelines, capital commitments, role of the public,
room block commitments, windfall projection, cost overrun responsibility, public
oversight, termination provisions, and other unique project terms.
c) Hotel Developer RFP — SAG will lead the effort to identify the best private
development partner for the hotel. This includes working with the CITY to
determine the best approach to solicit a development team, writing the RFQ/P,
marketing the project, and assessing the submittals to determine which is best
positioned to deliver the project consistent with project goals.
3848 Saint Annes Court • Duluth, GA 30096 • (678) 584-0705
StrategicAdvisoryGro up
d) Developer Negotiations — SAG will assist the legal team with negotiations related
to the final form of the "Hotel Funding, Development and Site Lease Agreement".
e) Referendum — SAG will assist the CITY as required related to referendum issues.
ADDITIONAL FEES
The current proposed project schedule is in Exhibit 1. SAG's fees will be based on the
time worked on the project multiplied by the hourly rates. Exhibit 2 presents an estimate
of the hours by month and hourly billing rates for the Term of this amendment. Fees
and expenses are not to exceed $166,375, an average of $18,486 per month.
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 rates. Invoices
shall be submitted monthly and the City shall pay invoices within 30 days of receipt.
This Amendment can be terminated at any point if the City Commission decides not to
move forward with the hotel.
TERM
This Amendment shall begin on December 21, 2014 and end on July 31, 2015.
2
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:
ATTEST:
By:
City Clerk
FOR CONSULTANT:
ATTEST:
By:
Thomas Reifert, Principal
3
CITY OF MIAMI BEACH, FLORIDA
City Manager
STRATEGIC ADVISORY GROUP LLC
Jeffrey Sachs, Managing Partner
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
JJ1\—
City
Attorney 4e Do:
StrategicAdvisoryGroup
Exhibit 1
Preliminary Schedule
Week of Hotel
12/15/14 • Commission assessment of traffic study
• Commission establishment of hotel size
• Commission first reading of minimum parking requirement and maximum height
12/22/14 • Christmas Week
12/29/14 • Draft of RFP Continues
1/5/15 • Draft of RFP Continues
1/12/15 • Commissioner briefing of RFP and lease template
1/19/15 • Commission approval of RFP and lease template
• Commission second reading of minimum parking requirement and maximum height
1/26/15 • Hotel RFP issued
2/2/15 • RFP outstanding, respond to questions
2/9/15 • RFP outstanding, respond to questions
2/16/15 • RFP outstanding, respond to questions
2/23/15 • Pre -proposal meeting
3/2/15 • RFP outstanding, respond to questions
3/9/15 • RFP outstanding, respond to questions
3/16/15 • RFP outstanding, respond to questions
3/23/15 • RFP outstanding
3/30/15 • Hotel developer proposals due
4/6/15 • Proposal analysis
4/13/15 • Proposal analysis
4/20/15 • Proposal analysis
4/27/15 • Hotel developer interviews, ranking and City Manager recommendation
5/4/15
5/11/15 • Commission briefings on hotel developer selection
5/18/15 • Commission approval of hotel developer
5/25/15 • Finalize land lease
6/1/15 • Finalize land lease
6/8/15 • Finalize land lease
6/15/15 • Finalize land lease
6/22/15 • Finalize land lease
6/29/15 • Finalize land lease
7/6/15 • Finalize land lease
4
StrategicAdvisoryGroup
Week of 1 Hotel
7/13/15 • Commission briefings on referendum language and lease
7/20/15 j • Commission approve referendum, language and lease
7/27/15
8/3/15 j • Referendum, language and lease submitted to Miami Dade County
Hours
Sachs
Reifert/Other
Billing Rates
Sachs
Reifert/Other
Fees
Sachs
Reifert/Other
1
Dec
StrategicAdvisoryGroup
2
Jan
3
Feb
Exhibit 2
4 5 6 7 8 9
Mar Apr May Jun Jul Aug Total
50 70 20 10 80 80 40 40 40
30 40 0 0 40 40 0 0 0
80 110 20 10 120 120 40 40 40
$325 $325 $325 $325 $325 $325 $325 $325 $325
$250 $250 $250 $250 $250 $250 $250 $250 $250
$16,250 $22,750 $6,500
7,500 10,000 0
23,750 32,750 6,500
Expense Allowance (12%) 2,375 3,275
TOTAL
$3,250 $26,000 $26,000 $13,000 $13,000 $13,000
0 10,000 10,000 0 0 0
3,250 36,000 36,000 13,000 13,000 13,000
650 325 3,600 3,600 1,300 1,300 1,300
$26,125 $36,025 $7,150
$3,575 $39,600 $39,600 $14,300 $14,300 $14,300
6
$113,750
37,500
151,250
15,125
$166,375
Average per month $18,486