180-94 RDA
RESOLUTION NO.
180-94
A RESOLUTION OF THE MIAMI BEACH REDEVELOPMENT
AGENCY (AGENCY) AUTHORIZING THE CHAIRMAN AND
SECRETARY TO PAY ARTHUR ANDERSON & CO., SC FOR
SERVICES RENDERED IN CONNECTION WITH THE
CONVENTION CENTER HOTEL PROJECTS.
WHEREAS, Arthur Andersen & Co., SC ( II Arthur Andersen II )
performed various services for the City of Miami Beach/Agency in
connection with the Convention Center Hotel projects, pursuant to
a contract between Arthur Andersen and the City; and
WHEREAS, the contract with
provision for the performance of
itemized services; and
Arthur Andersen
additional work
contains a
beyond the
WHEREAS, the Agency requested additional work from Arthur
Andersen in connection with the hotel projects; and
WHEREAS, such additional work consisted of, among other
things, preparing a financial evaluation of the qualified
proposers, preparing a joint report on the short-listed proposers
and attendance and participation at the short-listed proposers'
presentations; and
WHEREAS, Arthur Andersen has billed the City/Agency for such
additional work, plus expenses, in the amount of $90,548.00, which
amount includes a 25% discount; and
WHEREAS, as a result of the efforts of Commissioner Eisenberg
in negotiating with Arthur Andersen for a fee reduction, that
balance to the City/Agency has now been reduced to $70,548.00; and
WHEREAS, additional services in an amount not to exceed
$20,000.00 are expected to be requested from Arthur Andersen in the
future in connection with the hotel negotiations; and
WHEREAS, this $20,000.00 in expected future work added to the
balance due for prior work equals a total balance of $90,548.00.
WHEREAS, the Greater Miami Convention and Visitors Bureau
(IIGMCVBII), under a reimbursable agreement of up to $150,000 per
year, has a credit remaining of $28,341.50, which will pay for a
portion of the monies owed to Arthur Andersen, leaving a net
balance to the City/Agency in the amount of $62,206.00; and
WHEREAS, the City/Agency will receive that credit from GMCVB
after the City/Agency pays the monies to Arthur Andersen.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY that the Chairman
and Secretary hereby are authorized to pay Arthur Andersen the sum
of $90,548.00 as provided above.
PASSED and ADOPTED THIS
, 1994.
ATTEST:
~,~l~ r_~
SECRETARY
FORM APPROVED
REDEVELOPMENT AGENCY
GENERAL COUNSEL
By JC )
Date J\ -I ~ - '\ ~
SUMMARY OF ARTHUR ANDERSEN INVOICES AND PAYMENTS
Contract fee structure as approved by City Commission on 7/31/94:
Step 1. $50,000 Development and marketing of RFP
Step 2. $10,000 Per proposal received meeting RFP criteria
Step 3. $50,000 Signed contract for firsl hotel
$25,000 Signed contract for each additional hotel
Note: Contract specified that expenses (travel, telephone, per diems, etc.) were to be billed separately. Contract also
specified that production, printing and distribution of RFP's to be done in-house by the City.
Greater Miami Convention and Visitors Hun~au ((;MCVR) Contract
$150,000
$150.000
$300,000
A vailahle FY 9] jt)4
Available FY ()-I/l).'\
Total assistance for payment of Arthur Andersen Contract
Actual fees billed by Arthur Andersen to date:
Services
$50,000.00
$50,000.00
Services
$ 80,000.00
$ 6,700.00
$ 70,548.00*
$ 20.000.00*
$177,248.00
Expenses
$ 23,946.00
$ 65,683.00
$ 40.862.50
$130,491.50
Expenses
$ 4,467.00
$ 4,467.00
Total
$ 73,946.00
$ 65,683.00
$ 40,862.50
$180,491.50
Total
$ 84,467.00
$ 6,700.00
$ 70j-l8.00*
$ 20,llOll.llO*
$181,715.110
Note: (*) Outstanding amount
Total
Services
$ 75,000.00
$ 75,000.00
$302,248.00
Expenses
$134,958.50
$ 75,OOO.llO
$ 75,000.00
$437,206.50
Explanation
Step I services
Additional scope of preparing RFP document plus retainer of
(;ralillo, Inc., for production and printing of RFP, subcontracted by
Arthur Andersen upon approval hy City Manager. Not within original
scope of contract.
Production and printing of RFP, billed by directly by Grafitto, Inc.
Sub-Total - Step 1 Services
Explanation
Step 2 services - 8 proposals (ell $10,000 per proposal
Re-cvaluation of proposals requested hy the City
Preparation of joint linancial report with Bear Stearns, not within
miginal scope of contract.
Additional authorized services as required
Sub-Total. Step 2 Services
Explanation
Anticipated Step 3. Services, based on signed contracts for the Loews
and the HCF projects
Sub-Total - Anticipated Step 3. Services
Total Anticipated Fees
Total payments made on Arthur Andersen contract to date:
Date Billed
Amount
8/93
2/94
$ 26,200.00
$ 40,862.50
5/94
$ 82,937.50
$ 30.491.50
$113,429.00
8/94
$ 91,167.00
Total:
$271.658.50
Paid By Explanation
GMCVB Initial invoicl~ Step 1 services
GMCYB RFP produC'ion &. printing. Paid directly to Grafitto, Inc.
G MCYB
Redev Agency.
Total Balance Step I services
Redev Agency. Initial invoicc Stcp 2 services
Actual Amount Received by Arthur Andersen:
5230,796.00
Note: (.) To be reimbursed by GMCVB as of 10/1/94
Total fees currently and anticipated outstanding
Billed 9/13/94, pending Preparatioll of joint tinancial report with Bear Stearns, not within
llriginal sCCipe of contract.
Not billed yet Additional authorized services
Not billed yet Upon execLltion of Loews contract
Not billed yet Upon execLltion of HCF contract
Total Estimated Fees Outstanding
Amount
Status
$ 70,548.00
$ 20,000.00
$ 50,000.00
$ 25.000.00
$165,548.00
EXlllanatiol!
$271.658.50
$165.548.00
$437.206.50
Billed
Outstanding
Total Anticipated payments un Arthur Andersen Contract:
GMCVB Reimbursement Schedule
'5300,OOO.llll
Total Available (FY 93/94 + 94/95):
Less:
8/93 Invoice paid
2/94 Invoice paid
5/94 Invoice paid
5/94 Due Redev Agency
8/94 Due Redev Agency
Total:
$ 26,200.00
$ 40,862.50
$ ~2,937jO
$ 30,49 I jO
$ 91.167.00
$271,658.50
S 2X,J-B.50 (Remaining Credit as 01' 11/1/94)
Estimated Remaining Fees to Arthur Andersen:
Less Remaining Credit I'rom GMCVB
Total Estimated Out-ol'-Pocket Expenses to Cit~':
$ 165,548.00
28,341.00
~ 137,20ll.50
v
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f'\.L ~ uERSe'J 4
( .
AJmiUR ANDEJtSSII&C a SC
INVOICE
Septetnber 13, 1994
Mr. Roger Carlton
Oty of MLuni Beech
1100 Convention Center Drive
Miami Beach. FL 33129
'"
RefeftlliCe No. MIA03203
Additional billing for phase n - 5c?1ection of developmEnt proposall
Ac:11VITY
~Il of fIa'-w evaluatioll of quaUtied
pt'D~ coordt~oa and review of aoalr1il witIa
Bear, SteaDLI aad coolllblation with the Cil:!r ~
Ollke, at the ftCJ1led of the City of Miami 'filed .
Hma ~te per Hoar ~btotll
3-t $350 $11.,900
30 350 10,500
94 2SO 23,500
24 110 ~
53 150 7950
SO 90 4SOO
1.
M. SteJn
J(. Lawler
L. Marier
B. Hyre
It. Calleja
C. Rete
2.
prepuatlOll of a jolDt report Oil the Ihort-UJ'JtK
pl'OpOlled, per atyte zeq.eat
H21UI Rate per Hoar
M. Stein 16 ~
J(. Lawler 32 350
L.Marie1' 40 2SO
It. CaJleja 16 IS(]
Subtotal
$5,(JOO
11,200
10,000
2.400
AttesulaDre &ad putidpad01l at .hort-Uabd pdlpoHd
p~' at cay-. requHt.
lima Bate per How::
M. Stein 24 350
J(. Lawler 24 3541
3.
..
Out-of-pocket ~
Travel COtnputer time,
telephone (long distanee)
faxes. federal express. report
typing and reproduction, etc.
~htobll
$8,400
8,400
: Total:
Less 2SJ. rlwcoant:
J*\~
Ammtnl ORe:
Arthur Andeam u.P
Suite noo
OM Biscayne Tower
Miami n 33131-1801
305 314 3700
I$l
$62,430
29,200
16,800
12.300
$120,130
L)O.l821
l..sa
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673-7193
Fax: (305) 673-7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 94-47
November 16, 1994
To: Chairman and Members of the Board
of the Redevelopment Agency
From: Roger M. Carlton I ()
Executive Director ~
SUBJECT: AUTHORIZATION TO PAY ARTHUR ANDERSEN FOR ALREADY RECEIVED
SERVICES RELATED TO THE HOTEL DEVELOPER SELECTION PROCESS
IN THE AMOUNT OF $70,548 AND TO AUTHORIZE ADDITIONAL WORK
UP TO $20,000 FOR SERVICES AS NECESSARY DURING THE
CONVENTION HOTEL NEGOTIATIONS PROCESS.
ADMINISTRATION RECOMMENDATION
It is recommended that the City Commission and the Redevelopment
Agency Board authorize payment to Arthur Andersen for services
rendered during the hotel developer selection process as required
in the existing contract for Arthur Andersen and authorize
additional work up to $20,000 for services as necessary during the
convention hotel negotiations process.
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 sent an initial invoice for the work, a copy of which
S()UTti ()()I~
l?edevel()pment Ulstlict
1
CIn' Cr:/lllffl:l?
Vedevelwment UIstJ1ct
AGENDA ITEM 2-G
NOVEMBER 16, 1994
is attached as reference. The bill for these additional services
amounted to $120,730 which was reduced by 25% to $90,548 upon
review by the City Manager.
Subsequently, Commissioner Eisenberg met with Arthur Andersen and
discussed the fees requested. As a result of this meeting, Arthur
Andersen has agreed to lower the invoice amount by $20,000 for a
total of $70,548. A copy of an agreement letter prepared by Arthur
Andersen reflecting the change in fees will be submitted as an
addendum to the Commission agenda packet.
Additionally, it has been determined that additional services may
be needed of Arthur Andersen for the negotiations phase. It is
anticipated that these will not exceed $20,000. Retroactive
authorization is requested for the $70,548 in services as well as
authorization for the additional services.
ANALYSIS
A summary of Arthur Andersen's invoices and payments is attached.
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.
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.
2
CONCLUSION
The City Commission and Redevelopment Agency Board should authorize
payment to Arthur Andersen in the amount of $70,548 and authorize
additional work up to $20,000 for services as necessary during the
convention hotel negotiatiosn process. The Administration wishes
to thank Commissioner Eisenberg for his effort to negotiate reduced
fees with Arthur Andersen and previously with Bear Stearns.
RMC:jph
Attachments
3