Amendment No. 8 to the PSA with Strategic Advisory Group ;101C- ( 9/ 9.0
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Amendment #8
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
October 21, 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. Construction Period Services (January 1, 2016 through July 31, 2018)
SAG shall assist the City with overseeing the construction of the project,
including participation in weekly owner meetings via conference call, participation
in owner meetings on-site once per month, assisting with overseeing owner
responsibilities (FF&E, payment processing, etc.), assisting with dispute
resolution, assisting with City Commission communication and reporting, and
other areas as requested by the City.
2. Asset Management Services (April 1, 2016 through March 31, 2017)
SAG shall extend the City-approved asset management services through March
31, 2017 under Amendment No. 7 to guide, monitor and oversee the
transformation of the Convention Center's sales and marketing efforts, event and
revenue focus, branding, and operating strategies.
3. Convention Hotel Consulting Services (March 16, 2016 -- March 31, 2019)
If the Hotel Development and Ground Lease Agreement ("Lease") is approved in
the special election, SAG shall continue to serve as the City's Project Consultant,
to assist the City in complying with its obligations under the Lease and in
3848 Saint Annes Court • Duluth, GA 30096 • (678)584-0705
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monitoring the progress of the hotel project Such services shall include, but not
be limited to, attending monthly project meetings in-person and weekly meetings
via telephone; assisting with design approvals required by City in its proprietary
capacity; reviewing and making recommendations related to compliance with the
conditions precedent for City's delivery of possession of the site to the developer;
assessing any lender requirements; reviewing the proposed hotel owners to
ensure compliance with City's acceptable owner requirements; monitoring "in-
balance" status (sources = uses) of the Project's development budget; reviewing
and recommending approval of hotel financing; monitoring compliance with
mandatory hotel project design elements; reviewing and assessing the proforma
to be utilized for establishment of the additional rent hurdles; monitoring the hotel
construction schedule; coordinating the hotel construction schedule with the
Convention Center construction schedule; coordinating with The Fillmore Theater
management company related to demolition and construction issues; monitoring
compliance with meeting LEED certification goals; facilitating room block
agreement requests/approvals and waivers; monitoring compliance with
insurance requirements;, monitoring developer's compliance with art in public
places funding requirements; drafting and presenting monthly reports to the City
Manager, Mayor and City Commission.
ADDITIONAL FEES
1. Construction Period Services (January 1, 2016 through July 31, 2018)
SAG's fees will be based on the time worked on the project multiplied by the
hourly rates of $325 for Jeff Sachs and $250 for Tom Reifert. Fees and
expenses are not to exceed $300,000 ($10,000 per month on average over 30
months). This provides for up to 28 hours of per month, on average, plus an
allowance for travel expenses for the one trip per month. Construction Period
Services shall not commence until the City has provided SAG with a written
Notice to Proceed, which is anticipated to occur on or about December 15, 2015.
2. Asset Management Services (April 1, 2016 through March 31, 2017)
SAG's fees will be billed at the same hourly rate as previously approved for Dan
Fenton of $275 per hour and $100 for Bethany Parker. Fees and expenses are
not to exceed $160,000 ($13,333 per month on average over 12 months). This
provides for up to 40 hours per month, on average, plus an allowance for travel
expenses for one trip per month.
3. Convention Hotel Consulting Services (March 16, 2016 -- March 31, 2019)
SAG's fees will be based on the time worked on the project multiplied by the
hourly rates of $325 for Jeff Sachs and $250 for Tom Reifert. Fees and
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expenses are not to exceed $300,000. Amendment 6 related to hotel services is
$60,000 under budget, therefore only an additional $240,000 will be added to the
contract total. Convention Hotel Consulting Services shall not commence unless
the Hotel Development and Ground Lease Agreement is approved in a special
election and the City has provided SAG with a written Notice to Proceed.
Avg. Monthly
Months Fee & Expense Total
Design/Finance Period 12 $15,000 $180,000
Construction Period 24 $5,000 120,000
Subtotal 300,000
Amount Remaining from Amendment 6 -60,000
Additional Fee $240,000
4. Fees and expenses for all services in this Amendment shall not exceed
$700,000.
TERM
This Amendment shall begin on January 1, 2016 and end on March 31, 2019.
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.
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'ilk. OF MIAMI = i4! ORIDA
ATTEST: ;
By: d '�. r/
Rafael E. Gdnado, i %le cORP DRAT( 1i ►,��° a.'or
ATTEST: ' f f
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26 " R �_ � GIC ADVISORY GROUP LLC
AL By:
Tho as Reifert, Principal ey Sachs, Managing Partner
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