2015-28995 Reso RESOLUTION NO. 2015-28995
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE
MIAMI BEACH CONVENTION CENTER CONSTRUCTION
PERIOD BOOKING POLICY SET FORTH IN RESOLUTION NO.
2014-28610, TO FACILITATE THE TIMELY AND EFFICIENT
COMPLETION OF THE MIAMI BEACH CONVENTION CENTER
RENOVATION AND EXPANSION PROJECT ("PROJECT").
WHEREAS, on May 28, 2014, the City Commission adopted Resolution No. 2014-
28610, to provide for a Convention Center booking policy in connection with events
scheduled at the Convention Center during the construction of the Project (the "Construction
Period Booking Policy"); and
WHEREAS, the Construction Period Booking Policy stipulates that the Project must
be completed in a time period not-to-exceed thirty-six (36) months, and construction activity
must be phased in a manner that would permit the booking of Convention Center events
within two (2) of the four(4) main exhibition halls at any given time, and with no access to the
P-lot and compressed load-in/load outs; and
WHEREAS, pursuant to the Construction Period Booking Policy and within the
framework of the design-build project delivery method approved by the City Commission at the
time, Fentress Architects prepared a preliminary phasing plan to accomplish the foregoing
objectives, as well as the City's objective of fully accommodating the Art Basel events within
the four(4) main exhibition halls each year during construction; and
WHEREAS, on February 11, 2015, the City Commission elected to re-bid the Project
under a Construction Manager-at-Risk (CMR) project delivery method, an approach that allows
for the continued development of the design for the Project with the benefit of input from the
Construction Manager prior to establishment of the Guaranteed Maximum Price (GMP) for the
Project, currently anticipated to occur on or about October, 2015; and
WHEREAS, based on the consideration of a variety of factors, including the recent shift
to the CMR approach, the consideration of timing for bond financing and availability of funds
after establishment of the GMP, analysis of code and life safety requirements, and construction
schedule concerns based on continued phasing analysis, the Project team has developed an
improved phasing plan that would better accommodate and reconcile the Project's construction
and operational needs; and
WHEREAS, the implementation of the updated phasing plan would require the
modification of the existing Construction Period Booking Policy to (i) accommodate only those
events that have requested the booking of dates during the construction period as of April 13,
2015; and (ii) authorize the closure of the Convention Center during the following periods:
October 19, 2016 through November 16, 2016; December 10, 2016 through April 30, 2017;
and October 17, 2017 through November 22, 2017; and
WHEREAS, the Administration has consulted with Global Spectrum regarding the time
periods for the proposed closures, and recommends the foregoing time periods for closure, as
such dates minimize the overall impact on tourism and on Convention Center business
compared to other available time periods; and
WHEREAS, the Administration recommends the modified Construction Period Booking
Policy, as the updated phasing plan significantly reduces the construction schedule risk
associated with making all four (4) main exhibition halls available each year for Art Basel;
provides more time to plan an effective and efficient exhibition hall floor renovation; provides
greater flexibility to the Construction Manager in shutting down mechanical and life safety
systems to expedite the work; utilizes and sequences the work of the construction trades and
labor force in a more efficient and organized manner; better aligns the Project's cash flow
needs with bond funding; and facilitates efforts to potentially complete additional areas of the
Convention Center (such as certain ballroom areas and parking) earlier than currently
anticipated.
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 amend the Convention Center Construction Period Booking Policy set forth
in Resolution No. 2014-28610, to (i) accommodate only those events that have requested
bookings at the Convention Center as of April 13, 2015; and (ii) authorize the closure of the
Convention Center during the following periods: October 19, 2016 through November 16, 2016,
from December 10, 2016 through April 30, 2017, and from October 17, 2017 through November
22, 2017, so as to facilitate the timely and efficient completion of construction of the Project.
PASSED and ADOPTED this /S day of Apr%/ , 2015.
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ATTEST: V
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Philip Lev. - 1v frof
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MIAMI B
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members o I the City Co ission
FROM: Jimmy L. Morales, City Manager
DATE: April 15, 2015
SUBJECT: A RESOLUTION OF THE ,AYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE MIAMI
BEACH CONVENTION CENTER CONSTRUCTION PERIOD BOOKING
POLICY SET FORTH IN RESOLUTION NO. 2014-28610, TO
FACILITATE THE TIMELY AND EFFICIENT COMPLETION OF THE
MIAMI BEACH CONVENTION CENTER RENOVATION AND
EXPANSION PROJECT ("PROJECT").
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.
BACKGROUND
On May 28, 2014, the City Commission adopted Resolution No. 2014-28610, to provide for a
Convention Center booking policy in connection with events scheduled at the Convention Center
during the construction of the Project (the "Construction Period Booking Policy"). The Resolution
stipulates that the Project must be completed in a time period not-to-exceed thirty-six (36)
months, and construction activity must be phased in a manner that would permit the booking of
Convention Center events within two (2) of the four (4) main exhibition halls at any given time,
and with no access to the P-lot and compressed load-in/load outs.
Pursuant to the Construction Period Booking Policy and within the framework of the design-build
project delivery method approved by the City Commission at the time, Fentress Architects
prepared a preliminary phasing plan to accomplish the foregoing objectives, as well as the City's
objective of fully accommodating the Art Basel events within the four(4) main exhibition halls each
year during construction.
On February 11, 2015, the City Commission elected to re-bid the Project under a Construction
Manager-at-Risk (CMR) project delivery method, an approach that allows for the continued
development of the design for the Project with the benefit of input from the Construction Manager
prior to establishment of the Guaranteed Maximum Price (GMP) for the Project, currently
anticipated to occur on or about October, 2015.
Agenda Item t 7
Date IHc-I S
Modification to the Convention Center Booking Policy During Construction
April 15, 2015
Page 2 of 4
ANALYSIS
Based on the consideration of a variety of factors, including the recent shift to the CMR approach,
the consideration of timing for bond financing and availability of funds after establishment of the
GMP for the Project in October, 2015, analysis of code and life safety requirements, and
construction schedule concerns based on continued phasing analysis, Fentress has developed an
improved phasing plan that would better accommodate and reconcile the Project's construction
and operational needs, but would require certain modifications to the adopted Construction Period
Booking Policy.
With regard to bond financing and availability of funding for the Project, the City must have funds
on hand to enter into contracts related to any project, which, in the case of the MBCC Project,
approximate $600 million. The MBCC Project will be funded by a combination of Miami Beach
RDA bonds, a County General Obligation bond, parking revenue bonds, and resort tax bonds,
which cannot be issued until after the imposition of the additional 1% resort tax in accordance with
the requirements of the City Charter.
Section 5.03(b) of the City Charter provides, in pertinent part, that the additional 1% resort tax
"cannot be imposed until such time as the City of Miami Beach has entered into an agreement with
a developer for the expansion, enlargement, renovation, and/or improvement of the Miami Beach
Convention Center." Under the CMR approach, the agreement contractually obligating the City to
fund "the expansion, enlargement, renovation and/or improvement" of the Convention Center will
not effectively be in place until the City Commission, at its discretion, accepts and enters into a
GMP Amendment obligating the Construction Manager to deliver the Project. Until that time, there
is no agreement obligating the City to pay for the Project, such that, in accordance with the City
Charter, the additional resort tax could be imposed as the funding mechanism therefor.
If the GMP Amendment is approved as currently anticipated on October 21, 2015, the first reading
to increase the 1% tax will also take place on October 21, 2015 with the second reading scheduled
shortly thereafter at a Special Commission Meeting. With the approved GMP Amendment and 1%
tax increase in place, the City plans to price bonds in November and close in the first few days of
December. The schedule for GMP Amendment and financing impacts the existing phasing plan,
which would require the "early procurement" of bid packages such as $50-70 million in steel before
the City Commission has the opportunity to consider the overall GMP for the Project, a scenario
the Administration does not recommend.
The updated phasing plan currently being recommended better aligns the Project funding to the
sequencing of the work, as the focus of the initial work following the December 2015 Art Basel will
be the demolition of the western concourse along Convention Center Drive, and long lead
procurement of key materials such as steel would not need to be ordered until after the
Commission has approved a GMP Amendment, bonds are issued, and funding is in place.
In addition, in order to comply with the Florida Building Code, the existing floor slab must be raised
by approximately 4 to 6 inches. This requirement, as well as upgrades to mechanical and life
safety systems, should ideally be completed under a single phase, rather than two phases as
previously planned. This issue becomes most critical during Art Basel since the entire exhibit area
is used for the show.
The revised phasing plan includes the following key elements:
Year 1 — Mid December 2015 thru Mid November 2016:
1
Modification to the Convention Center Booking Policy During Construction
April 15, 2015
Page 3 of 4
• Keep the two east exhibition halls open for events, along with the east concourse, west
exhibition halls will have to be closed due to the lack of emergency exists to the west
• Demolish and rebuild the west concourse
• Begin ballroom construction
• Open for 2016 Art Basel with a new west concourse and existing exhibition halls
Year 2 — Mid December 2016 thru April 30, 2017:
• Close all exhibit halls and complete exhibition hall floor renovation
• Complete all west side exhibition hall renovation (floor, ceiling, mechanical)
• Complete west concourse levels 2 and 3
• Complete ballroom
• Complete parking
Year 2 — May 1, 2017 thru mid November 2017 half:
• Open the two west exhibition halls for events, along with the new west concourse
• Complete east side exhibition hall renovation (ceiling, mechanical)
• Complete east concourse renovation
• Complete majority of exterior renovation
• Year 3 (2018)
• Same as before, parks and roads, complete exterior and center punch list items
The main change of this phasing plan is that the original plan to offer two exhibition halls for events
throughout all of construction is not accommodated from the end of Art Basel in mid-December
2016 thru April 30, 2017. While the Convention Center does not have any contracts for events
during this period, events that have requested dates include: Motorcycle Show; Electric Hybrid
Marine; JIS ("Jewelry", one of two events held at the Convention Center in 2017); OMBAS
("Antique"); Graphics; VINEXPO; Home Show (one of two held at center in 2017); Juegos Miami,
and Barret Jackson (potential first event). By opening the Convention Center by May 1, 2015,
Maison & Objet, the World Out Games, Major League Baseball (MLB)All-star Game Fan Fest, and
other events throughout the rest of the year can be accommodated in two halls, as previously
prescribed.
In addition to the proposed closure of the facility following the completion of Art Basel in 2016
through April 30, 2017, the Project team is also concerned about the amount of construction
activity that will likely be required to prepare for the opening of the Convention Center for Art Basel
in both 2016 and 2017. To provide the construction team with unfettered access to the facility to
address the inevitable multitude of mechanical system issues that will need to be addressed prior
to opening for Art Basel, they are also requesting that the Convention Center be closed
approximately 30 days prior to the Art Basel move in. This request impacts one show, the Auto
Show. This event could be relocated to another facility, or rescheduled in the Convention Center
in other open periods.
Finally, the Convention Center Booking Policy currently includes language directing the
Administration "...to complete the Miami Beach Convention Center Project within 24 30 months;
but not to exceed 36 months..."and "...to accommodate as many events as possible." The Project
team believes that it is not possible to accomplish both. To complete the Project within the
schedule, the Convention Center needs to have as many closed dates as possible, allowing the
Construction Manager flexibility to shut down mechanical systems as needed to tie in the old
versus new. Therefore, we propose to accommodate only those events that have previously
Modification to the Convention Center Booking Policy During Construction
April 15, 2015
Page 4 of 4
requested dates, and not book any additional events during the construction period. Booking focus
should be on those events scheduled to occur after the center is complete.
The main advantages of the new approach are as follows:
• Aligns cash needs with bond funding. West concourse demolition does not require
advance materials purchase. Steel and other materials can be purchased after bond
funding occurs and processed while demolition occurs. Any materials that are needed to
be purchased for construction commencement can be funded with temporary financing
mechanisms after the GMP Amendment is approved and the tax is turned on.
• Provides more time to plan an effective and efficient exhibition hall floor renovation.
• Better use of labor force with components completed in one step versus two (exhibit hall
floor, west concourse, east concourse, etc.)
• Nearly eliminates risk associated with providing a full facility for Art Basel in both
construction years. Exhibition hall floors are not touched in the first year, and are
completed in first four months of second year. This should materially decrease the CMR
budget contingency that had to be carried under the previous phasing plan.
• Art Basel 2016 will occur with a new Convention Center front door (west concourse) and
two new 20,000 sf rooms available (west concourse).
• Creates the new front door by end of first year.
• Brings parking on earlier.
• Exhibit halls will never need to be at two floor levels (code requires exhibition halls to be
raised 4-6 inches).
• Proposed closed period has no contracts currently in place, and no events with high
economic impact.
• Proposed closed period is at a time when the hotels are booked with non-convention
center business.
• The plan is supported by Global Spectrum.
• By the time MLB All-star Game Fan Fest is scheduled to occur in 2017, the center can
offer 250,00 sf of exhibition space, two new 20,000 sf rooms on west side, parking
spaces over west side and potentially the new ballroom and the parking over the
ballroom.
CONCLUSION / RECOMMENDATION
The Administration recommends that the Mayor and City Commission amend the Convention
Center Construction Period Booking Policy set forth in Resolution No. 2014-28610, to (i)
accommodate only those events that have requested bookings at the Convention Center as of
April 13, 2015; and (ii) authorize the closure of the Convention Center during the following periods:
October 19, 2016 through November 16, 2016; December 10, 2016 through April 30, 2017; and
October 17, 2017 through November 22, 2017, so as to facilitate the timely and efficient completion
of construction of the Project.
JLM/KGB/MAS/MH
T:\AGENDA\2015\April\MBCC\MBCC Construction Booking Policy-MEMO.docx