179-94 RDA
RESOLUTION NUMBER
179-94
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY
AUTHORIZING THE CHAIRMAN AND ADMINISTRATION TO
PAY BEAR, STEARNS & CO. INC. FOR SERVICES
RENDERED IN CONNECTION WITH THE CONVENTION
CENTER HOTEL PROJECTS.
WHEREAS, Bear, Stearns & Co. Inc (Bear Stearns") rendered
financial services and analysis in connection with the Convention
Center Hotel projects; and
WHEREAS, Bear Stearns has requested that the Redevelopment
Agency pay $75,000 for those services.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY that the Chairman
and the City Administration hereby are authorized to pay Bear
Stearns the sum of $75,000 for services provided in connection with
the Convention Center Hotel Projects.
PASSED and ADOPTED THIS 2nd
DAY OF
, 1994.
ATTEST:
~cA..J L-~
SECRETARY
FORM APPROVED
REDEVELOPMENT AGENCY
GENERAL COUNSEL
By .J)nf
Date k/l /1.1(/
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673-7193
Fax: (305) 673-7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 94-42 Revised
Date: November 2, 1994
To: Chairman and Members of the Board
of the Redevelopment Agency
From: Roger M. Carlton J ~ ~----
Executive Directo~
SUBJECT: AUTHORIZATION TO PAY BEAR STEARNS AND TO CONTINUE
NEGOTIATIONS WITH ARTHUR ANDERSEN TO AGREE ON A PRICE FOR
ALREADY RECEIVED SERVICES RELATED TO THE HOTEL DEVELOPER
SELECTION PROCESS.
ADMINISTRATION RECOMMENDATION
It is recommended that the City Commission and the Redevelopment
Agency Board authorize payment to Bear Stearns for services
rendered during the hotel developer selection process and to direct
the Administration to continue to work with Arthur Andersen to
agree on a price for services already rendered, as required in the
existing contract for Arthur Andersen.
BACKGROUND
The City of Miami Beach engaged Arthur Andersen in the hotel
developer selection process. In their contract for services, there
was a provision for additional work. During the final deliberations
in the hotel developer selection process, the City Commission
requested additional work to assist them in evaluating the three
finalists for the City-owned hotel site and the African-American
proposal. The consultants performed an in-depth analysis of the
finalists and delivered their findings in the form of a detailed
report entitled Comparative Review of "Short Listed" Proposals
submitted to the City of Miami Beach on July 14, 1994. This report
was of substantial assistance in the final selection process. The
consultants have sent a bill for that work, a copy of which is
SVlJIli I)VI~
Dedevel()pment Vldrlct
1
CIfl" CI:~~
Dedevelwment Vlstrlct
AGENDA ITEM 3-A
NOVEMBER 2, 1994
attached as reference. The bill for these additional services
amounts to $90,548 which includes a $30,182 write-off based upon
actual hours worked.
In regard to Bear Stearns, services were provided to the City even
though a contract was never finalized. According to the attached
letter from Bear Stearns, dated October 3rd, 1994, a verbal
agreement was reached with the City, which called for payment of
$75,000.
/lliALYSIS
The City of Miami Beach has paid to Arthur Andersen, per their
contract, the following sums:
~ AMOUNT RECIPIENT PAID BY
10/93 $26,200.00 Arthur Andersen GMCVB
02/94 $40,862.50 Graffito (printing) GMCVB
05/94 $82,937.50 Arthur Andersen GMCVB
05/94 $30,491.50 Arthur Andersen MB Redev Agency*
08/94 $91,167.00 Arthur Andersen MB Redev Agency*
,
Total Paid to Arthur Andersen: $230,796.00
Graffito: 40.862.50
Total Fees to date: $271,658.50
Note: (*) To be reimbursed by GMCVB (Greater Miami Convention and
Visitors Bureau)
The additional services provided under this contract which are the
subject of this Commission Memorandum included:
. Preparation of financial evaluation of qualified proposers.
. Coordination and review of analysis with Bear Stearns and the
City Attorney's Office.
. Preparation of joint report on short-listed proposers, per
City's request.
. Attendance and participation at short-listed proposers
presentations, at City's request.
2
For a total amount of: $90,548.00 (Reflecting a 25% discount from
the actual invoice amount of $120,730.00).
Funding for Arthur Andersen is provided under a reimbursable
agreement for up to $150,000 per year over a two year period with
the Greater Miami Convention and Visitors Bureau. In addition to
the amounts already paid and the requested payment of services,
there is a remaining amount to be paid to Arthur Andersen - $50,000
for approval of the Loews' contract by the City Commission and
$25,000 for approval of the HCF/Sheraton Suites contract by the
City Commission.
Bear Stearns was extensively involved in the selection process,
providing the primary financial evaluation and analysis of each of
the respondents and coordinating with Arthur Andersen. Fees for
their services are $75,000.00. This amount includes a write-off
of approximately $14,000 in expenses related to the project.
CONCLUSION
The City Commission and Redevelopment Agency Board should authorize
payment to Bear Stearns in the amount of $75,000.00 and continue
to work with Arthur Andersen. The Administration wishes to thank
Commissioner Eisenberg for his effort to negotiate reduced fees
with Bear Stearns and Arthur Andersen.
RMC: lmw
Attachments
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