Amendment No. 7 PSA with Strategic Advisory Group aolS- °way)
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Amendment #7
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
, 2015
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's scope of services shall be modified to include the following:
1. Pre-Construction Period Services (June 1, 2015 through December 31, 2015)
SAG shall assist City with preparing for a project construction start on December
12, 2015. Assistance shall include design oversight, construction manager
oversight, construction manager guaranteed maximum price negotiations, cost
estimating oversight, early bid package planning and oversight, funding/financing
assistance, presentations, and City Commission approvals.
2. Asset Management Services (May 2015 through March 31, 2016)
SAG will provide 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 MBCC. This will include:
• 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
3848 Saint Annes Court + Duluth, GA 30096 e (678) 584-0705
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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".
SAG's Dan Fenton will lead these efforts, with Managing Partner, Jeff Sachs in
an oversight role. Dan will dedicate 50 hours on average each month to the
transformation process for the eleven-month period. This will include:
1. Monthly face-to-face sales and marketing meetings with City, GMCVB, and
MBCC staff.
2. Review and participate in the goal setting process and development of annual
goals.
3. Determining the current level of sales activity and setting activity level targets
including active qualified accounts, prospects, tentative and definite bookings.
4. Determining the top vertical markets and overall universe of accounts that
have the highest propensity to bring their convention to Miami Beach.
5. Determine the most effective approach, staffing and deployment plan to
maximize overall sales efforts.
6. Review and development of a marketing plan that is aligned with the market
findings and maximizes available resources.
7. Implementation of a comprehensive reporting plan that will include an
effective pace report and monthly update on actual versus goal for key
performance indicators.
8. Finalize the spending levels of the marketing budget as it relates to MBCC
sales efforts.
9. Leading a branding effort that will encompass the research and
understanding of developing a competitive approach in the higher end vertical
markets. This will include facilitating discussions on re-branding the MBCC.
10.Develop a "destination services" plan in conjunction with Global Spectrum
11.Review and monitor the MBCC operational budget.
12.Develop updated "standard operation procedures" with recommendations for
improvements related to the new MBCC.
13.Monitor compliance with GMCVB and Global contracts.
14.City Commission updates as required.
15.Telephone/conference calls as required.
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16.Prepare a written monthly report summarizing meeting outcomes, goals,
performance, and next steps.
ADDITIONAL FEES
Pre-Construction Period Services
SAG's fees will be based on the time worked on the project multiplied by the hourly
rates. Exhibit 1 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 $198,825 ($28,404
per month on average over 7 months).
Asset Management Services
SAG's fees will be based on the time worked on the project multiplied by the hourly
rates in Exhibit 1, with Dan Fenton at $275 per hour. Fees and expenses are not to
exceed $160,000 ($13,545 per month on average over 11 months). This provides for
50 hours per month, on average, plus an allowance for travel expenses for the one trip
per month.
Fees and expenses for all services in this Amendment shall not exceed $358,825.
TERM
This Amendment shall begin on May 20, 2015 and end on March 31, 2018.
* * *
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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:
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By: ALI'I . q ,' i c voinviu, .
Ra'ael Gran:do, City le x B �i��;hili' - ' - ayor e-/ i
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FOR CONSULTANT: i .ANC '', TEGIC ADVISORY GROUP LLC
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By: L
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Thimas Reifert, Principal -• ey Sachs, Managing Partner
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APPROVED AS TO
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Exhibit 1
1 2 3 4 5 6 7
Jun Jul Aug Sep Oct Nov Dec Total
Hours
Sachs 40 100 80 80 100 60 50 510
Reifert/Other 0 20 20 10 10 0 0 60
40 120 100 90 110 60 50 570
Billing Rates
Sachs $325 $325 $325 $325 $325 $325 $325
Reifert/Other $250 $250 $250 $250 $250 $250 $250
Fees
Sachs $13,000 $32,500 $26,000 $26,000 $32,500 $19,500 $16,250 $165,750
Reifert/Other 0 5,000 5,000 2,500 2,500 0 0 15,000
13,000 37,500 31,000 28,500 35,000 19,500 16,250 180,750
Expense Allowance
(12%) 1,300 3,750 3,100 2,850 3,500 1,950 1,625 18,075
TOTAL $14,300 $41,250 $34,100 $31,350 $38,500 $21,450 $17,875 $198,825
Average/Month $28,404
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