2015-29030 Reso RESOLUTION NO. 2015-29030
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. 7 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. IN AN
AMOUNT NOT TO. EXCEED $358,825.00, INCLUDING ALL
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, were 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
work with the Greater Miami Convention and Visitors Bureau to create a performance-based
contract that outlines specific goals, objectives and success measures for any future Convention
Center marketing agreement; and
WHEREAS, Amendment No. 5, for consulting services associated with the development
of a Convention Center Headquarter Hotel, was executed in an amount not to exceed $30,000;
and
WHEREAS, on December 18, 2014, the City Commission authorized the Mayor and City
Clerk to execute Amendment No. 6 for the additional services associated with the procurement
process of the hotel developer, in an amount not to exceed $166,375; and
WHEREAS, on February 11, 2015, the City Commission elected to re-bid the Project
under a Construction Manager-at-Risk (CMAR) project delivery method; and
WHEREAS, this Amendment provides for SAG's continuing services related to the pre-
construction phase services through December 31, 2015, for a not to exceed amount of
$198,825 ($28,404 per month on average), and for asset management services to guide,
monitor and oversee the transformation of the sales and marketing efforts, event and revenue
focus, branding and operating strategies of the new convention center, for a not to exceed
amount of$160,000 ($14,545 per month on average over eleven months); and
WHEREAS, SAG's fees are based on time worked on the project multiplied by the hourly
rates, which have been reduced from the rates approved in the original Agreement.
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. 7 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, in an amount not-to-exceed $358,825,
including reimbursable expenses.
PASSED and ADOPTED this dO day May,Ma 2015.
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Philip ' ,,./ ayor
ATTESTED BY:
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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. 7 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 in an Amount Not To Exceed
$358,825, including All 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. On February 6, 2013, and March 13, 2013
respectively, the Commission authorized Amendments No. 1 and 2, totaling $307,232, for additional services
relative to RFQ No. 22-11/12, issued for the selection of 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 January 15, 2014, the City Commission terminated negotiations with the developer and on February 12,
2014, the City Commission approved the issuance of the RFQ for a Design Criteria Professional to prepare a
Design Criteria Package for the Convention Center Renovation Project. Amendments No. 3 and 4, for related
services through May 31,2015,were executed for a total not to exceed amount of$548,900.
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. On December 18, 2014, the City Commission approved Amendment No. 6 for
consulting services relative to the procurement process of a hotel developer, in an amount not to exceed
$166,375.
On February 11, 2015, the City Commission elected to re-bid the Project under a Construction Manager-at-Risk
(CMAR) project delivery method. Under the CMAR approach, the City takes a more active roll in managing the
project. Since this approach was not originally anticipated, this Amendment provides for SAG's continuing
services related to the extended need for pre-construction services through December 31, 2015, for a not to
exceed amount of$198,825($28,404 per month on average).
On a parallel path, on September 10, 2014 the City Commission directed the Administration to work with the
Greater Miami Convention and Visitors Bureau to create a performance-based contract that outlines specific
goals, objectives and success measures for any future Convention Center marketing agreement. This
Amendment also provides for SAG's asset management services to guide, monitor and oversee the
transformation of the sales and marketing efforts, event and revenue focus, branding and operating strategies of
the new convention center, for a not to exceed amount of$160,000 ($14,545 per month on average over eleven
months).
The Administration recommends the City Commission adopt the Resolution.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: 1 $198,825 165-2816-061357 Miami Beach Redevelopment
w Agency Non-Trust Fund Special Revenue Account
Wingg 2 $160,000 160-4300-000312 Resort Tax Fund
OBP Total $358,825
Financial Impact Summary: N/A
City Clerk's Office Legislative Tracking:
Maria Hernandez, ext. 2584
Sign-Offs:
Departme Dir-ctor Assistant City Manager City nager
MH /f.11; JLM
T:\AGENDA\2015\May\MBCC\SAG Amendment No.7\SAG Amendment#7-SUMMARY.docx
MIAMI BEACH AGENDA ITEM
DATE S I�/
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMIS ION MEMORANDUM
TO: Mayor Philip Levine and Members of th City Commis ion
FROM: Jimmy L. Morales, City Manager "MUM
DATE: May 20, 2015
SUBJECT: A RESOLUTION OF THE MAYOR AN CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AN AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AMENDMENT NO. 7 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 IN AN AMOUNT NOT TO EXCEED $358,825, INCLUDING
ALL 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
• Convention Center Expansion and Renovation Services: $198,825 is available from Miami
Beach Redevelopment Agency Non-Trust Fund Special Revenue Account No. 165-2816-061357
and is included in the Convention Center Project Budget.
• Convention Center Asset Management Services: $160,000 is to be funded from the City's Resort
Tax Fund, Account Number 160-4300-000312. These funds are available as a result of the
contract extension for the Greater Miami Convention and Visitors Bureau (GMCVB), which was
approved by the City Commission in September 2014 via Resolution No. 2014-28745. This
resolution kept funding for the GMCVB at the then current level of $5,366,000 and recommended
the City hire an owner's representative in an amount not to exceed $161,000 at the City
Manager's discretion.
BACKGROUND
MBCC Expansion and Renovation Services:
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, 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, totaling $307,232.
Strategic Advisory Group Consulting Services for the MBCC Expansion and Renovation Project
May 20, 2015
Page 2 of 3
On January 15, 2014, the City Commission adopted Resolution No. 2014-28479 terminating negotiations
with the developer, 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 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.
Amendments No. 3 and 4, totaling $548,900 have been executed pursuant to this directive, for services
through May 31, 2015.
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.
On December 18, 2014, the City Commission authorized the Mayor and City Clerk to execute
Amendment No. 6 for consulting services relative to the procurement process of a hotel developer, for an
amount not-to-exceed of$166,375.
On February 11, 2015, the City Commission elected to re-bid the Project under a Construction Manager-
at-Risk (CMAR) 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, followed by bond issuance occurring on or about December 15, 2015.
Under the CMAR approach, the City takes a more active roll in managing the project. Since this
approach was not originally anticipated, this amendment provides for SAG's continuing services related
to the extended need for pre-construction services such as: i) design oversight, construction manager
oversight, construction manager guaranteed maximum price negotiations, cost estimating oversight,
early bid package planning and oversight, bond funding / financing assistance, presentations, and City
Commission approvals for the period beginning June 1, 2015 through December 31, 2015.
MBCC Asset Management Services:
In September, 2014, the City Commission withheld a portion of the funding to the Greater Miami
Convention and Visitors Bureau for fiscal year 2015 to provide resources to ensure the marketing efforts
and approach to convention services are best aligned to capitalize on the renovated and expanded
convention center. In addition, the City Commission directed the Administration to work with the GMCVB
to create a performance-based contract that outlines specific goals, objectives and success measures for
any future Convention Center marketing agreement.
SAG's Dan Fenton has been assisting the City with these efforts since the City Commission's direction.
Mr. Fenton is a seasoned marketing executive that has assisted several similar destinations with
improving their approach to convention center marketing. Recent clients include the State of Hawaii,
New Orleans, Atlantic City, and Houston.
The City desires to engage SAG's Fenton over a eleven-month period to guide, monitor and oversee the
transformation of the sales and marketing efforts, event and revenue focus, branding, and operating
strategies of the new MBCC. This will include:
Strategic Advisory Group Consulting Services for the MBCC Expansion and Renovation Project
May 20, 2015
Page 3 of 3
• Helping guide and oversee the implementation of the most effective sales and marketing
approach for the new MBCC.
• Helping guide and oversee the implementation of a service model that aligns MBCC/destination
services with the quality of the new MBCC and the types of groups that are combatable with
Miami Beach hotel pricing. This will include all aspects of the meeting planner and attendee
experience from the first sales contact through the move out process.
• Facilitating the development of a new brand for the new MBCC, which will come with a "brand
promise".
FEE AND SCHEDULE INFORMATION
A copy of the SAG Amendment #7 is attached. SAG's hourly billing rates will remain at the same,
reduced, level as approved in 2014. The fees and expenses in this Amendment shall not exceed
$358,825:
• Pre GMP Services (June 2015 — December 2015) - Fees and expenses are not to exceed
$198,825 ($28,404 per month on average over 7 months).
• Asset Management Services (May 2015 — March 2016) - Fees and expenses are not to exceed
$160,000 ($14,545 per month on average over 11 months). •
CONCLUSION/RECOMMENDATION
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 in an amount not to exceed $358,825, including all reimbursable expenses.
Attachments:
1. Amendment No. 7
JLM / KGB/ MH / MS
T:\AGENDA\2015\May\MBCC\SAG Amendment#7-Memo.docx